Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 12, 2018 | Jun. 30, 2017 | |
Entity Registrant Name | EchoStar CORP | ||
Entity Central Index Key | 1,415,404 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,860,000,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 48,146,076 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 47,687,039 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 2,431,456 | $ 2,570,365 |
Marketable investment securities, at fair value | 814,161 | 522,516 |
Trade accounts receivable, net of allowance for doubtful accounts of $12,027 and $12,956, respectively | 196,840 | 182,527 |
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero | 43,295 | 19,417 |
Inventory | 83,595 | 62,620 |
Prepaids and deposits | 54,533 | 43,456 |
Other current assets | 91,574 | 10,862 |
Current assets of discontinued operations | 97 | 311,524 |
Total current assets | 3,715,551 | 3,723,287 |
Noncurrent Assets: | ||
Property and equipment, net of accumulated depreciation of $2,661,129 and $2,598,492, respectively | 3,465,471 | 3,398,195 |
Regulatory authorizations, net | 536,936 | 544,633 |
Goodwill | 504,173 | 504,173 |
Other intangible assets, net | 58,955 | 80,734 |
Investments in unconsolidated entities | 161,427 | 171,016 |
Other receivable - DISH Network | 92,687 | 90,586 |
Other noncurrent assets, net | 214,814 | 179,311 |
Noncurrent assets of discontinued operations | 0 | 316,924 |
Total noncurrent assets | 5,034,463 | 5,285,572 |
Total assets | 8,750,014 | 9,008,859 |
Current Liabilities: | ||
Trade accounts payable | 108,406 | 170,297 |
Trade accounts payable - DISH Network | 4,753 | 1,072 |
Current portion of long-term debt and capital lease obligations | 40,631 | 32,984 |
Deferred revenue and prepayments | 65,959 | 59,989 |
Accrued interest | 47,616 | 46,487 |
Accrued compensation | 47,756 | 53,454 |
Accrued expenses and other | 98,227 | 95,726 |
Current liabilities of discontinued operations | 542 | 71,429 |
Total current liabilities | 413,890 | 531,438 |
Noncurrent Liabilities: | ||
Long-term debt and capital lease obligations, net of unamortized debt issuance costs | 3,594,213 | 3,622,463 |
Deferred tax liabilities, net | 436,023 | 746,667 |
Other noncurrent liabilities | 128,503 | 90,785 |
Noncurrent liabilities of discontinued operations | 0 | 10,701 |
Total noncurrent liabilities | 4,158,739 | 4,470,616 |
Total liabilities | 4,572,629 | 5,002,054 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Additional paid-in capital | 3,669,461 | 3,828,677 |
Accumulated other comprehensive loss | (130,154) | (124,803) |
Accumulated earnings | 721,316 | 314,247 |
Treasury stock, at cost | (98,162) | (98,162) |
Total EchoStar stockholders’ equity | 4,162,563 | 3,920,065 |
Noncontrolling interest in HSS Tracking Stock | 0 | 73,910 |
Other noncontrolling interests | 14,822 | 12,830 |
Total stockholders’ equity | 4,177,385 | 4,006,805 |
Total liabilities and stockholders’ equity | 8,750,014 | 9,008,859 |
Class A common stock | ||
Stockholders’ Equity: | ||
Common stock | 54 | 52 |
Class B common stock | ||
Stockholders’ Equity: | ||
Common stock | 48 | 48 |
Class C common stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class D common stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | $ 0 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for doubtful accounts on trade accounts receivable (in dollars) | $ 12,027,000 | $ 12,956,000 |
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars) | 0 | 0 |
Property and equipment, accumulated depreciation (in dollars) | $ 2,661,129,000 | $ 2,598,492,000 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Class A common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 53,663,859 | 52,243,465 |
Common stock, shares outstanding (in shares) | 48,131,541 | 46,711,147 |
Class B common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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 | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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 | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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 |
Preferred Stock | ||
Preferred Stock: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Hughes Retail Preferred Tracking Stock | ||
Preferred Stock: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 0 | 13,000,000 |
Preferred stock, shares issued (in shares) | 0 | 6,290,499 |
Preferred stock, shares outstanding (in shares) | 0 | 6,290,499 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Services and other revenue - other | $ 1,200,321 | $ 1,100,828 | $ 1,093,674 |
Services and other revenue - DISH Network | 445,698 | 463,442 | 532,162 |
Equipment revenue - other | 239,199 | 237,356 | 212,269 |
Equipment revenue - DISH Network | 290 | 8,840 | 10,752 |
Total revenue | 1,885,508 | 1,810,466 | 1,848,857 |
Costs and Expenses: | |||
Cost of sales - services and other (exclusive of depreciation and amortization) | 546,327 | 521,220 | 574,400 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 212,170 | 203,965 | 195,360 |
Selling, general and administrative expenses | 366,007 | 325,044 | 318,136 |
Research and development expenses | 31,745 | 31,170 | 26,377 |
Depreciation and amortization | 522,190 | 432,904 | 460,819 |
Impairment of long-lived assets | 10,762 | 0 | 0 |
Total costs and expenses | 1,689,201 | 1,514,303 | 1,575,092 |
Operating income | 196,307 | 296,163 | 273,765 |
Other Income (Expense): | |||
Interest income | 44,619 | 21,244 | 10,388 |
Interest expense, net of amounts capitalized | (217,240) | (123,481) | (121,995) |
Gains (losses) on investments, net | 56,751 | 9,767 | (6,443) |
Other-than-temporary impairment loss on available-for-sale securities | (3,298) | 0 | (11,226) |
Equity in earnings (losses) of unconsolidated affiliates, net | 16,973 | 10,802 | (2,477) |
Other, net | 6,582 | 2,131 | (2,685) |
Total other expense, net | (95,613) | (79,537) | (134,438) |
Income from continuing operations before income taxes | 100,694 | 216,626 | 139,327 |
Income tax benefit (provision), net | 284,286 | (80,254) | (51,235) |
Net income from continuing operations | 384,980 | 136,372 | 88,092 |
Net income from discontinued operations | 8,509 | 44,320 | 61,279 |
Net income | 393,489 | 180,692 | 149,371 |
Less: Net loss attributable to noncontrolling interest in HSS Tracking Stock | (655) | (944) | (5,603) |
Less: Net income attributable to other noncontrolling interests | 1,583 | 1,706 | 1,617 |
Net income attributable to EchoStar | 392,561 | 179,930 | 153,357 |
Less: Net loss attributable to Hughes Retail Preferred Tracking Stock | (1,209) | (1,743) | (10,343) |
Net income attributable to EchoStar common stock | 393,770 | 181,673 | 163,700 |
Net income from continuing operations | 385,261 | 137,353 | 102,421 |
Net income from discontinued operations | $ 8,509 | $ 44,320 | $ 61,279 |
Weighted-average common shares outstanding - Class A and B common stock: | |||
Basic (in shares) | 95,425 | 93,795 | 92,397 |
Diluted (in shares) | 96,741 | 94,410 | 93,466 |
Earnings Per Share, Basic [Abstract] | |||
Income (Loss) from Continuing Operations, Per Basic Share (in dollars) | $ 4.04 | $ 1.46 | $ 1.11 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share (in dollars) | 0.09 | 0.48 | 0.66 |
Basic earnings per share (in dollars) | 4.13 | 1.94 | 1.77 |
Earnings Per Share, Diluted [Abstract] | |||
Income (Loss) from Continuing Operations, Per Diluted Share (in dollars) | 3.98 | 1.45 | 1.10 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share (in dollars) | 0.09 | 0.47 | 0.65 |
Diluted earnings per share (in dollars) | $ 4.07 | $ 1.92 | $ 1.75 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 393,489 | $ 180,692 | $ 149,371 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | 16,413 | (11,315) | (62,731) |
Recognition of foreign currency translation loss in net income | 0 | 0 | 1,889 |
Unrealized gains (losses) on available-for-sale securities and other | (21,895) | 9,149 | (12,046) |
Recognition of realized gains on available-for-sale securities in net income | (2,758) | (5,590) | (35) |
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income | 3,298 | 0 | 11,226 |
Total other comprehensive loss, net of tax | (4,942) | (7,756) | (61,697) |
Comprehensive income | 388,547 | 172,936 | 87,674 |
Less: Comprehensive loss attributable to noncontrolling interest in HSS Tracking Stock | (655) | (944) | (5,603) |
Less: Comprehensive income attributable to other noncontrolling interests | 1,992 | 1,520 | 1,297 |
Comprehensive income attributable to EchoStar | $ 387,210 | $ 172,360 | $ 91,980 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Hughes Retail Preferred Tracking Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Treasury Stock | Noncontrolling Interest in HSS Tracking Stock | Other Noncontrolling Interests |
Beginning balance at Dec. 31, 2014 | $ 3,623,638 | $ 98 | $ 6 | $ 3,706,122 | $ (55,856) | $ (19,040) | $ (98,162) | $ 80,457 | $ 10,013 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 24,841 | 1 | 24,840 | ||||||
Employee benefits | 10,711 | 10,711 | |||||||
Employee Stock Purchase Plan | 13,888 | 13,888 | |||||||
Stock-based compensation | 21,839 | 21,839 | |||||||
Excess tax benefit from stock option exercises | 3,929 | 3,929 | |||||||
R&D tax credits utilized by DISH Network | (3,048) | (3,048) | |||||||
Other, net | (1,754) | (1,830) | 76 | ||||||
Net income (loss) | 149,371 | 153,357 | (5,603) | 1,617 | |||||
Foreign currency translation adjustment | (60,842) | (60,522) | (320) | ||||||
Unrealized gains (losses) and impairment on available-for-sale securities, net | (931) | (931) | |||||||
Ending balance at Dec. 31, 2015 | 3,781,642 | 99 | 6 | 3,776,451 | (117,233) | 134,317 | (98,162) | 74,854 | 11,310 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 13,066 | 1 | 13,065 | ||||||
Employee benefits | 11,126 | 11,126 | |||||||
Employee Stock Purchase Plan | 14,367 | 14,367 | |||||||
Stock-based compensation | 15,234 | 15,234 | |||||||
Excess tax benefit from stock option exercises | 848 | 848 | |||||||
R&D tax credits utilized by DISH Network | (1,600) | (1,600) | |||||||
Other, net | (878) | (814) | (64) | ||||||
Net income (loss) | 180,692 | 179,930 | (944) | 1,706 | |||||
Foreign currency translation adjustment | (11,315) | (11,129) | (186) | ||||||
Unrealized gains (losses) and impairment on available-for-sale securities, net | 3,623 | 3,623 | |||||||
Ending balance at Dec. 31, 2016 | 4,006,805 | 100 | 6 | 3,828,677 | (124,803) | 314,247 | (98,162) | 73,910 | 12,830 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 36,505 | 2 | 36,503 | ||||||
Employee benefits | 11,200 | 11,200 | |||||||
Employee Stock Purchase Plan | 8,758 | 8,758 | |||||||
Stock-based compensation | 10,103 | 10,103 | |||||||
R&D tax credits utilized by DISH Network | 1,624 | 1,624 | |||||||
Cumulative effect of adoption of ASU 2016-09 as of January 1, 2017 | 14,508 | 14,508 | |||||||
Reacquisition and retirement of Tracking Stock pursuant to Share Exchange Agreement | (300,539) | (6) | (227,278) | (73,255) | |||||
Other, net | (34) | (126) | 92 | ||||||
Net income (loss) | 393,489 | 392,561 | (655) | 1,583 | |||||
Foreign currency translation adjustment | 16,413 | 16,004 | 409 | ||||||
Unrealized gains (losses) and impairment on available-for-sale securities, net | (21,447) | (21,447) | |||||||
Ending balance at Dec. 31, 2017 | $ 4,177,385 | $ 102 | $ 0 | $ 3,669,461 | $ (130,154) | $ 721,316 | $ (98,162) | $ 0 | $ 14,822 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 393,489 | $ 180,692 | $ 149,371 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 533,849 | 495,068 | 528,158 |
Impairment of long-lived assets | 10,762 | 0 | 2,400 |
Equity in earnings of unconsolidated affiliates, net | (15,814) | (13,310) | (1,895) |
Losses (gains) and impairment on marketable investment securities, net | (53,453) | (9,767) | 17,669 |
Loss from partial redemption of debt | 0 | 0 | 5,044 |
Stock-based compensation | 10,103 | 15,234 | 21,839 |
Deferred tax provision (benefit) | (288,577) | 98,148 | 56,132 |
Dividends received from unconsolidated entities | 19,000 | 15,000 | 5,000 |
Proceeds from sale of trading securities | 8,922 | 7,140 | 380 |
Changes in current assets and current liabilities, net: | |||
Trade accounts receivable, net | 421 | (26,942) | (38,452) |
Trade accounts receivable - DISH Network | 235,227 | (1,456) | (25,490) |
Inventory | (19,291) | (4,814) | (4,906) |
Other current assets | (15,352) | 2,263 | 6,499 |
Trade accounts payable | (78,419) | (24,571) | 37,228 |
Trade accounts payable - DISH Network | 731 | (19,650) | (7,792) |
Accrued expenses and other | 11,993 | 55,998 | 1,477 |
Changes in noncurrent assets and noncurrent liabilities, net | (36,975) | 9,459 | 1,616 |
Other, net | 10,276 | 24,851 | 22,173 |
Net cash flows from operating activities | 726,892 | 803,343 | 776,451 |
Cash Flows from Investing Activities: | |||
Purchases of marketable investment securities | (855,717) | (921,247) | (536,430) |
Sales and maturities of marketable investment securities | 578,051 | 1,001,166 | 1,057,034 |
Expenditures for property and equipment | (583,211) | (722,341) | (809,270) |
Refunds and other receipts related to capital expenditures | 4,311 | 24,087 | 105,750 |
Sale of investment in unconsolidated entity | 17,781 | 0 | 0 |
Investments in unconsolidated entities | 0 | (1,636) | (64,655) |
Expenditures for externally marketed software | (31,331) | (23,252) | (22,327) |
Other, net | 2,114 | 10,956 | (5,413) |
Net cash flows from investing activities | (868,002) | (632,267) | (275,311) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of long-term debt | 0 | 1,500,000 | 0 |
Payments of debt issuance costs | (414) | (7,097) | 0 |
Repayment of 6 1/2% Senior Secured Notes Due 2019 and related premium | 0 | 0 | (113,300) |
Repayment of debt and capital lease obligations | (37,670) | (40,364) | (44,804) |
Net proceeds from Class A common stock options exercised | 35,536 | 13,065 | 24,841 |
Net proceeds from Class A common stock issued under the Employee Stock Purchase Plan | 8,758 | 14,367 | 13,888 |
Cash exchanged for Tracking Stock | (651) | 0 | 0 |
Other, net | (5,487) | (4,282) | (882) |
Net cash flows from financing activities | 72 | 1,475,689 | (120,257) |
Effect of exchange rates on cash and cash equivalents | 1,351 | 138 | (5,696) |
Net increase (decrease) in cash and cash equivalents | (139,687) | 1,646,903 | 375,187 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | 2,571,143 | 924,240 | 549,053 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | 2,431,456 | 2,571,143 | 924,240 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for interest (including capitalized interest) | 259,632 | 172,707 | 179,114 |
Capitalized interest | 52,015 | 94,395 | 63,808 |
Cash paid for income taxes | 11,033 | 11,700 | 6,394 |
Employee benefits paid in Class A common stock | 11,200 | 11,126 | 10,711 |
Property and equipment financed under capital lease obligations | 8,484 | 7,652 | 8,604 |
Increase (decrease) in capital expenditures included in accounts payable, net | (3,831) | 3,054 | (7,123) |
Transfer of EchoStar 105/SES-11 payloads to SES in exchange for receivable | 77,524 | 0 | 0 |
Capitalized in-orbit incentive obligations | 43,890 | 0 | 0 |
Noncash net assets exchanged for Tracking Stock | $ 299,888 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - 6 1/2% Senior Secured Notes due 2019 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest rate | 6.50% | |
Senior Secured Notes: | ||
Interest rate | 6.50% |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Activities | Organization and Business Activities Principal Business EchoStar Corporation (which, 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 service operations, video delivery solutions, broadband satellite technologies and broadband internet services for home and small office customers. We also deliver innovative network technologies, managed services, and various communications solutions for aeronautical, enterprise and government customers. Our Class A common stock is publicly traded on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “SATS.” In February 2014, EchoStar Corporation entered into agreements with certain subsidiaries of DISH Network Corporation (“DISH”) pursuant to which, effective March 1, 2014, (i) EchoStar Corporation and our subsidiary Hughes Satellite Systems Corporation (“HSS”) issued the Tracking Stock (as defined below) to subsidiaries of DISH 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 approximately $11.4 million in cash, and (ii) DISH and certain of its subsidiaries began receiving certain satellite services on these five satellites from us (the “Satellite and Tracking Stock Transaction”). The Tracking Stock tracked the economic performance of 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”), and represented an aggregate 80.0% economic interest in HRG (the Hughes Retail Preferred Tracking Stock issued by EchoStar Corporation (the “EchoStar Tracking Stock”) represented a 51.89% economic interest in HRG and the Hughes Retail Preferred Tracking Stock issued by HSS (the “HSS Tracking Stock”, together with the EchoStar Tracking Stock, the “Tracking Stock”) represented a 28.11% economic interest in the Hughes Retail Group). In addition to the remaining 20.0% economic interest in HRG, EchoStar retained all economic interest in the wholesale satellite broadband business and other businesses of EchoStar. On January 31, 2017, EchoStar Corporation and certain of its subsidiaries entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar Corporation and certain of its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of our EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). Our former EchoStar Technologies businesses designed, developed and distributed secure end-to-end video technology solutions including digital set-top boxes and related products and technology, primarily for satellite TV service providers and telecommunication companies and provided digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services. Following consummation of the Share Exchange, we no longer operate the EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated and are of no further effect. As a result of the Share Exchange, the consolidated financial statements of the EchoStar Technologies businesses have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. See Note 3 for further discussion of our discontinued operations. We currently operate in the following two business segments: • Hughes — which provides broadband satellite technologies and broadband internet services to domestic and international home and small office customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to domestic and international consumers and aeronautical, enterprise and government customers. The Hughes segment also designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment provides satellite ground segment systems and terminals to mobile system operators. • EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite service operations and video delivery solutions on a full-time and occasional-use basis primarily to DISH Network Corporation and its subsidiaries (“DISH Network”), Dish Mexico, S. de R.L. de C.V., a joint venture we entered into in 2008 (“Dish Mexico”), United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, programmers, and private enterprise customers. ESS also manages satellite operations for certain satellites owned by DISH Network. Our operations also include various corporate departments (primarily Executive, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) as well as other activities that have not been assigned to our operating segments, including costs incurred in certain satellite development programs and other business development activities, our centralized treasury operations, and gains (losses) from certain of our investments. These activities, costs and income are accounted for in “Corporate and Other.” In 2008, DISH Network completed its distribution to us of its digital set-top box business, certain infrastructure, and other assets and related liabilities, including certain of its satellites, uplink and satellite transmission assets, and real estate (the “Spin-off”). Since the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies. Prior to February 28, 2017, DISH Network held the Tracking Stock discussed above. A substantial majority of the voting power of the shares of each of EchoStar Corporation and DISH Network Corporation is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. 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. As of December 31, 2016 , noncontrolling interests consist primarily of HSS Tracking Stock owned by DISH Network, as described in Note 4 below. As a result of the Share Exchange, the noncontrolling interest in the HSS Tracking Stock was extinguished as of February 28, 2017. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“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 our consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, 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 stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. 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 consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are reported in other comprehensive income (loss) as “Foreign currency translation adjustments” in our consolidated statements of operations . Except in certain uncommon circumstances, we have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from re-measurement of monetary assets and liabilities denominated in foreign currencies into the functional currency are recognized in “ Other, net ” in our consolidated statements of operations . We recognized net forei gn currency transaction gains of $1.2 million , losses of $0.5 million and losses of $4.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents as of December 31, 2017 and 2016 primarily consisted of commercial paper, government bonds, corporate notes, and money market funds. The amortized cost of these investments approximates their fair value. Marketable Investment Securities We classify our marketable investment securities as available for sale, except in instances where we have designated certain securities as trading securities. We report all marketable investment securities at fair value in our consolidated balance sheets. We recognize periodic changes in the fair value of trading securities and realized gains and losses on sale of available-for-sale securities in “Gains (losses) on marketable investment securities,” a component of net income, in our consolidated statements of operations. For available-for-sale securities, we recognize periodic changes in the difference between fair value and amortized cost in other comprehensive income (loss). Realized gains and losses upon sale of available-for-sale securities are reclassified from other comprehensive income (loss) and recognized in net income on the trade date. We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of marketable investment securities. Interest and dividend income from marketable investment securities is reported in “ Interest income ” and “ Other, net ,” respectively, in our consolidated statements of operations . Dividend income is recognized on the ex-dividend date. We evaluate our available-for-sale securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other than temporary. Our evaluation consists of reviewing, among other things: • the fair value of each security compared to its amortized cost; • the length of time and the extent to which the fair value of a security has been lower than amortized cost; • the historical volatility of the price of each security; • any market and company-specific factors related to each security; and • our intent and ability to hold the investment to recovery. Where the fair value of a debt security has declined below its amortized cost, we consider the decline to be other than temporary if any of the following factors apply: • we intend to sell the security, • it is more likely than not that we will be required to sell the security before maturity or recovery, or • we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. Declines in the fair value of available-for-sale securities that are determined to be other than temporary are reclassified from other comprehensive income (loss) and recognized in net income, thus establishing a new cost basis for the investment. Investments in Unconsolidated Entities — Cost and Equity Method We use the equity method to account for equity investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. Generally, our equity investments accounted for using either the equity method or cost method are not publicly traded and it is not practicable to regularly estimate the fair value of such investments. We evaluate these equity investments on a quarterly basis to determine whether an event or changes in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. As part of our evaluation, we review available information such as business plans and current financial statements of these companies for factors that may indicate an impairment of our investments. Such factors may include, but are not limited to, unprofitable operations, negative cash flow, material litigation, violations of debt covenants, bankruptcy and changes in business strategy. When we determine that an investment is impaired, and the impairment is other than temporary, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in net income. Generally, equity method investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “ Equity in earnings (losses) of unconsolidated affiliates, net ” in our consolidated statements of operations . The carrying amount of our investments may include a component of goodwill if the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the investee. Dividends received from equity method investees reduce the carrying amount of the investment. We defer, to the extent of our ownership interest in the investee, recognition of intra-entity profits on sales of equipment to the investee until the investee has charged the cost of the equipment to expense in a subsequent sale to a third party or through depreciation. In these circumstances, we report the gross amounts of revenue and cost of sales in the statement of operations and include the intra-entity profit eliminations within “ Equity in earnings (losses) of unconsolidated affiliates, net .” Accounts Receivable We make ongoing estimates relating to the collectibility of our accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Inventory Inventory is stated at the lower of cost, determined using the FIFO method, or net realizable value. Cost of inventory consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders, and alternative means of disposition of excess or obsolete items. We recognize losses within operating income when we determine that the cost of inventory and commitments to purchase inventory exceed net realizable value. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. The cost of our satellites includes construction costs, including the present value of in-orbit incentives payable to the satellite manufacturer, launch costs, capitalized interest, and related insurance premiums. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Costs of renewals and betterments are capitalized. Impairment of Long-lived Assets We review our long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets held and used in operations, the asset is not recoverable if the carrying amount of the asset exceeds its undiscounted estimated future net cash flows. When an asset is not recoverable, we adjust the carrying amount of such asset to its estimated fair value and recognize the impairment loss in net income. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell. Goodwill Goodwill represents the excess of the cost of acquired businesses over the estimated fair value assigned to the identifiable assets acquired and liabilities assumed. We do not amortize goodwill, but test goodwill for impairment annually, or more frequently if circumstances indicate impairment may exist. Our goodwill as of December 31, 2017 and 2016 is assigned to reporting units of our Hughes segment. We test such goodwill for impairment in the second fiscal quarter. The goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of reporting units using discounted cash flow techniques, which includes significant assumptions about prospective financial information, terminal value and discount rates (Level 3 inputs). If the reporting unit’s carrying amount exceeds its estimated fair value, we recognize an impairment loss equal to such excess, not to exceed the carrying amount of goodwill. We may bypass the quantitative goodwill impairment test if we determine, based on a qualitative assessment, that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount including goodwill. Regulatory Authorizations and Other Intangible Assets At acquisition and periodically thereafter, we evaluate our intangible assets to determine whether their useful lives are finite or indefinite. We consider our intangible assets to have indefinite lives when no significant legal, regulatory, contractual, competitive, economic, or other factors limit their useful lives. Intangible assets that have finite lives are amortized over their estimated useful lives, ranging from approximately one to 30 years. When we expect to incur significant costs to renew or extend finite-lived intangible assets, we amortize the total initial and estimated renewal costs over the combined initial and expected renewal terms. In such instances, actual renewal costs are capitalized when they are incurred. We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, as discussed above under “Impairment of Long-lived Assets.” We do not amortize our indefinite-lived intangible assets, but test those assets for impairment annually or more frequently if circumstances indicate that it is more likely than not that the asset may be impaired. Costs incurred to maintain or renew indefinite-lived intangible assets are expensed as incurred. Our indefinite-lived intangible assets include Federal Communications Commission (“FCC”) authorizations and certain other contractual or regulatory rights to use spectrum at specified orbital locations (collectively “Regulatory Authorizations”). We have determined that our FCC authorizations generally have indefinite useful lives due to the following: • FCC authorizations are non-depleting assets; • renewal satellite applications generally are authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative, and legal environment; • expenditures required to maintain the authorization are not significant; and • we intend to use these authorizations indefinitely. Our non-FCC Regulatory Authorizations consist primarily of authorizations in Europe and Brazil that we acquired in 2013 and 2012, respectively. We have determined that those Regulatory Authorizations have finite lives due to uncertainties about the ability to extend or renew their terms. Income Taxes We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods . Deferred tax assets and liabilities are recorded based on enacted tax laws for the estimated future tax effects of differences that exist between the financial reporting carrying amount and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a noncurrent asset or liability in our consolidated balance sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. 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 characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. 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 each of the years ended December 31, 2017 or 2016 . As of December 31, 2017 and 2016 , the carrying amounts 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 marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such 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 HSS’ 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”), 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes”) and 6.625% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”) (see Note 11) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other 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. As of December 31, 2017 and 2016 , the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $112.2 million and $74.1 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Revenue Recognition Revenue from the sale of equipment and services generally is recognized when persuasive evidence of an arrangement exists, prices are fixed or determinable, collectibility is reasonably assured, and the goods have been delivered or services have been rendered. If any of these criteria are not met, revenue recognition is deferred until such time as all of the criteria are met. Revenue from equipment sales generally is recognized upon shipment to customers. Revenue from recurring services generally is recognized ratably over the service term. Upfront fees collected in connection with services to consumer subscribers in our Hughes segment are deferred and recognized as revenue over the estimated subscriber life. We may offer rebates to qualifying new consumer subscribers in our Hughes segment. We reduce related revenue at inception of the subscriber contract based on an estimate of the number of rebates that will be redeemed. Our estimates are based on historical experience and actual sales during the promotion. Services and other revenue includes revenue from leases of satellite capacity and equipment. We typically determine based on applicable criteria that our leasing arrangements are operating leases and recognize related revenue on a straight-line basis over the lease term. In situations where customer offerings represent an arrangement for both services and equipment, revenue elements with standalone value to the customer are separated for revenue recognition purposes based on their selling prices if sold separately. We determine selling prices under a hierarchy that considers vendor-specific objective evidence (“VSOE”), third-party evidence and estimated selling prices. Typically, we derive VSOE from service renewal rates and optional equipment prices specified in customer contracts or we estimate prices based on the gross margin that we ordinarily realize in transactions with similarly situated customers. In addition to equipment and service offerings, our Hughes segment also enters into contracts to design, develop, and deliver complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Those contracts require significant effort to develop and construct the network over an extended time period. Revenue from such contracts is recognized using the percentage-of-completion method. Depending on the nature of the arrangement, we measure progress toward contract completion using the cost-to-cost method or the units-of-delivery method. Under the cost-to-cost method, revenue reflects the ratio of costs incurred to estimated total costs at completion multiplied by the total estimated contract revenue. Under the units-of-delivery method, revenue and related costs are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We report revenue net of sales taxes imposed on our goods and services in our consolidated statements of operations . Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method with amortization included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations . We report unamortized debt issuance costs as a reduction of the related long-term debt in our consolidated balance sheets. Cost of Sales - Services and Equipment Cost of sales - services primarily consists of costs of satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity, and direct labor costs associated with the services provided. Costs of sales - services generally are charged to expense as incurred. Cost of sales - equipment primarily consists of inventory costs, including freight and royalties. Cost of sales - equipment generally is recognized as products are delivered to customers and related revenue is recognized. Research and Development Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. Cost of sales includes research and development costs incurred in connection with customers’ orders of approximately $27.9 million , $23.7 million and $19.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, we incurred other research and development expenses of approximately $31.7 million , $31.2 million and $26.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Subscriber Acquisition Costs Subscriber Acquisition Costs (“SAC”) consists of costs paid to third-party dealers and customer service representative commissions on new service activations and hardware upgrades and, in certain cases, the cost of hardware and installation services provided to non-wholesale consumer customers at the inception of service or hardware upgrade. SAC is deferred when a customer enters into a service agreement and is subsequently amortized over the service agreement term in proportion to when the related service revenue is recognized. We monitor the recoverability of deferred SAC and are entitled to an early termination fee if the subscriber cancels service prior to the end of the service agreement term. The recoverability of deferred SAC is reasonably assured through the monthly service fee charged to customers, our ability to recover the equipment, and/or our ability to charge an early termination fee. Deferred SAC is included in “Other noncurrent assets, net” in our consolidated balance sheets. Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “ Other noncurrent assets, net ” in our consolidated balance sheets . Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of December 31, 2017 and 2016 , the net carrying amount of externally marketed software was $88.1 million and $76.3 million , respectively, of which $19.6 million and $50.1 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $31.3 million , $23.3 million and $22.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. We recorded amortization expense relating to the development of externally marketed software of $19.5 million , $9.7 million and $8.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The weighted average useful life of our externally marketed software was approximately four years as of December 31, 2017 . Stock-based Compensation Expense Stock-based compensation expense is recognized based on the fair value of stock awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense for awards with service conditions only is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for awards subject to performance conditions is recognized only when satisfaction of the performance condition is probable. We adopted ASU 2016-09 prospectively as of January 1, 2017. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. Upon adoption of this standard as of January 1, 2017, we recorded a $14.5 million deferred tax asset and a corresponding credit to accumulated earnings for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. We did not change our accounting policy to estimate forfeitures in determining compensation cost. Advertising Costs Advertising costs are expensed as incurred and are included in “ Selling, general and administrative expenses ” in our consolidated statements of operations . We incurred advertising expense of $64.2 million , $43.9 million and $44.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and has modified the standard thereafter. It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, 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.” Public entities are required to adopt the new revenue standard in fiscal years beginning after December 15, 2017 and in interim periods within those fiscal years. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. We adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method for contracts that were not substantially completed as of January 1, 2018. We expect the adoption of the new standard to impact certain up-front fees charged to our customers in our consumer markets, however we do not expect this change to have a material impact on the timing or amount of revenue recognition. We expect to record an adjustment as of January 1, 2018 to increase accumulated earnings by approximately $8.0 million, net of related income taxes as a result of this change. Our consolidated financial statements for the year ended December 31, 2018 and interim periods therein will include disclosures about the effect of the new standard. The prior period results will not be recast to reflect the new standard. We expect that the adoption of the new standard will impact our oper |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 3 . Discontinued Operations On January 31, 2017, EchoStar Corporation and certain of its subsidiaries entered into the Share Exchange Agreement. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar Corporation and certain of its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of our EchoStar Technologies businesses and certain other assets . Following consummation of the Share Exchange, we no longer operate the EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated and are of no further effect. As a result of the Share Exchange, the historical financial results of our EchoStar Technologies segment prior to the closing of the Share Exchange are reflected in our consolidated financial statements as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The noncontrolling interest in HSS Tracking Stock, as reflected in our stockholders equity, was extinguished as of February 28, 2017 as a result of the Share Exchange. The following table presents the operating results of our discontinued operations: For the Years Ended December 31, 2017 2016 2015 (In thousands) Revenue: Equipment, services and other revenue - DISH Network $ 143,118 $ 1,127,610 $ 1,138,571 Equipment, services and other revenue - other 10,344 118,654 156,286 Total revenue 153,462 1,246,264 1,294,857 Costs and Expenses: Cost of equipment, services and other 121,967 1,010,421 1,034,960 Selling, general and administrative expenses 5,439 60,590 55,980 Research and development expenses 4,635 44,854 51,910 Depreciation and amortization 11,659 62,164 67,339 Impairment of long-lived assets — — 2,400 Total costs and expenses 143,700 1,178,029 1,212,589 Operating income 9,762 68,235 82,268 Other Income (Expense): Interest expense (15 ) (144 ) (30 ) Equity in earnings (losses) of unconsolidated affiliates, net (1,159 ) 2,508 4,372 Other, net (57 ) (381 ) (4,365 ) Total income (expense), net (1,231 ) 1,983 (23 ) Income from discontinued operations before income taxes 8,531 70,218 82,245 Income tax provision (22 ) (25,898 ) (20,966 ) Net income from discontinued operations $ 8,509 $ 44,320 $ 61,279 Expenditures for property and equipment of our discontinued operations totaled $12.5 million , $69.7 million and $50.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations: As of December 31, 2017 2016 (In thousands) Assets: Cash and cash equivalents $ — $ 778 Trade accounts receivable, net 4 27,261 Trade accounts receivable - DISH Network 93 259,198 Inventory — 9,824 Prepaids and deposits — 14,463 Current assets of discontinued operations 97 311,524 Property and equipment, net — 271,108 Goodwill — 6,457 Other intangible assets, net — 7,720 Investments in unconsolidated entities — 26,203 Other noncurrent assets, net — 5,436 Noncurrent assets of discontinued operations — 316,924 Total assets of discontinued operations $ 97 $ 628,448 Liabilities: Trade accounts payable $ 278 $ 19,518 Trade accounts payable - DISH Network — 3,960 Current portion of capital lease obligations — 4,323 Deferred revenue and prepayments — 2,967 Accrued compensation — 4,652 Accrued royalties — 23,199 Accrued expenses and other 264 12,810 Current liabilities of discontinued operations 542 71,429 Capital lease obligations — 416 Deferred tax liabilities, net — 7,353 Other noncurrent liabilities — 2,932 Noncurrent liabilities of discontinued operations — 10,701 Total liabilities of discontinued operations $ 542 $ 82,130 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We present basic earnings per share (“EPS”) and diluted EPS for our Class A and Class B common stock. Basic EPS for our Class A and Class B common stock excludes potential dilution and is computed by dividing “ Net income attributable to EchoStar common stock ” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if shares of common stock were issued pursuant to our stock-based compensation awards. 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 options to purchase shares of our Class A common stock, whose effect would be anti-dilutive, of 1.0 million , 3.5 million and 2.3 million shares for the years ended December 31, 2017 , 2016 and 2015 , respectively. Prior to the Share Exchange, the EchoStar Tracking Stock was a participating security that shared in our consolidated earnings and therefore, we applied the two-class method to calculate EPS for periods prior to March 1, 2017. Under the two-class method, we allocated 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 represented by the EchoStar Tracking Stock, we allocated undistributed earnings to the EchoStar Tracking Stock based on 51.89% of the attributed net income or loss of the Hughes Retail Group. Moreover, because the reported amount of “Net income attributable to EchoStar” in our consolidated statements of operations excluded 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 excluded an aggregate 80.0% of the attributed net loss of the Hughes Retail Group. 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 Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Amounts attributable to EchoStar common stock: Net income from continuing operations $ 385,261 $ 137,353 $ 102,421 Net income from discontinued operations 8,509 44,320 61,279 Net income attributable to EchoStar common stock $ 393,770 $ 181,673 $ 163,700 Weighted-average common shares outstanding : Class A and B common stock: Basic 95,425 93,795 92,397 Dilutive impact of stock awards outstanding 1,316 615 1,069 Diluted 96,741 94,410 93,466 Earnings per share: Class A and B common stock: Basic: Continuing operations $ 4.04 $ 1.46 $ 1.11 Discontinued operations 0.09 0.48 0.66 Total basic earnings per share $ 4.13 $ 1.94 $ 1.77 Diluted: Continuing operations $ 3.98 $ 1.45 $ 1.10 Discontinued operations 0.09 0.47 0.65 Total diluted earnings per share $ 4.07 $ 1.92 $ 1.75 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 12 Months Ended |
Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) and Related Tax Effects | Other Comprehensive Income (Loss) and Related Tax Effects Except in unusual circumstances, we do not recognize 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 unrealized capital losses for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes net cumulative foreign currency translation losses of $119.4 million , $135.4 million and $124.3 million as of December 31, 2017 , 2016 and 2015 , respectively. Other comprehensive income includes deferred tax benefits for foreign currency translation losses related to assets that were transferred from a foreign subsidiary to a domestic subsidiary of $7.3 million for year ended December 31, 2017 . Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Consolidated Statements of Operations For the Years Ended December 31, 2017 2016 2015 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains (losses) on investments, net $ (2,758 ) $ (5,590 ) $ (35 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities 3,298 — 11,226 Recognition of foreign currency translation losses in net income (3) Other, net — — 1,889 Total reclassifications, net of tax and noncontrolling interests $ 540 $ (5,590 ) $ 13,080 (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains (losses) on investments, net” in our consolidated statements of operations. (2) We recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. (3) |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investment Securities | Investment Securities Our marketable investment securities and restricted cash equivalents consisted of the following: As of December 31, 2017 2016 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 542,573 $ 402,670 Strategic equity securities 133,736 94,816 Other 137,852 25,030 Total marketable investment securities—current 814,161 522,516 Restricted marketable investment securities (1) 10,019 12,203 Total $ 824,180 $ 534,719 (1) Restricted marketable investment securities are included in “Other noncurrent assets, net” in our consolidated balance sheets. Marketable Investment Securities Our marketable investment securities portfolio consists of various debt and equity instruments, which generally are classified as available-for-sale or trading securities depending on our investment strategy for those securities. The value of our investment portfolio depends on the value of such securities and other instruments comprising the portfolio. Corporate Bonds Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. 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. We received dividend income of $6.3 million , $0.1 million and de minimis for the years ended December 31, 2017 , 2016 and 2015 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , we recognized other-than-temporary impairment losses of $3.3 million , zero and $11.2 million , respectively on certain investments. These losses related to strategic equity investments that experienced significant declines in market value that we determined to be attributable to company-specific events and circumstances other than temporary market conditions. Prior to September 2017, we had an investment in the preferred stock of a privately-held company which had a carrying amount of $4.1 million and was accounted for using the cost method. In connection with the company’s initial public offering of its Class A common stock in September 2017, our shares of preferred stock were converted into the company’s Class B common stock. We have the right to convert such shares of Class B common stock to shares of Class A common stock and to sell such shares following the expiration of a lock-up period. For periods following the initial public offering, we account for this investment as a trading security at fair value in our strategic equity security portfolio. As of December 31, 2017 and 2016 , “ Gains (losses) on investments, net ” for the years ended December 31, 2017 , 2016 and 2015 included gains of $42.6 million , gains of $0.6 million and losses of $6.5 million , respectively, related to trading securities that we held as of December 31, 2017 , 2016 and 2015 , respectively. The fair values of our trading securities were $46.7 million and $7.2 million as of December 31, 2017 and 2016 , respectively. Other Our other current marketable investment securities portfolio includes investments in various debt instruments, including U.S. government bonds , commercial paper and mutual funds. Restricted Cash and Marketable Investment Securities As of December 31, 2017 and 2016 , our restricted marketable investment securities included amounts required as collateral for our letters of credit or surety bonds. Unrealized Gains (Losses) on Available-for-Sale Securities The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2017 Debt securities: Corporate bonds $ 542,861 $ — $ (288 ) $ 542,573 Other (including restricted) 142,082 — (46 ) 142,036 Equity securities - strategic 97,519 7,937 (18,404 ) 87,052 Total available-for-sale securities $ 782,462 $ 7,937 $ (18,738 ) $ 771,661 As of December 31, 2016 Debt securities: Corporate bonds $ 402,472 $ 285 $ (87 ) $ 402,670 Other (including restricted) 32,488 3 (23 ) 32,468 Equity securities - strategic 77,149 13,120 (2,652 ) 87,617 Total available-for-sale securities $ 512,109 $ 13,408 $ (2,762 ) $ 522,755 As of December 31, 2017 , restricted and non-restricted available-for-sale securities included debt securities of $684.2 million with contractual maturities of one year or less and $0.4 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. Available-for-Sale 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. Substantially all of the unrealized losses as of December 31, 2017 relate to three securities in our strategic equity securities portfolio, each of which has been in a continuous loss position for less than three months. 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. We believe that changes in the estimated fair values of these securities are primarily related to temporary market conditions . As of December 31, 2017 2016 Fair Unrealized Fair Unrealized (In thousands) Less than 12 months $ 733,635 $ (18,715 ) $ 154,826 $ (2,760 ) 12 months or more 6,715 (23 ) 1,571 (2 ) Total $ 740,350 $ (18,738 ) $ 156,397 $ (2,762 ) Sales of Available-for-Sale Securities We recognized gains from the sales of our available-for-sale securities of $2.8 million , $5.6 million and de minimis for the years ended December 31, 2017 , 2016 and 2015 , respectively. We recognized de minimis losses from the sales of our available-for-sale securities for each of the years ended December 31, 2017 , 2016 and 2015 . Proceeds from sales of our available-for-sale securities totaled $31.0 million , $80.4 million and $111.5 million for the years ended December 31, 2017 , 2016 and 2015 , 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 December 31, 2017 and 2016 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2017 2016 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents (including restricted) $ 2,354,998 $ 301 $ 2,354,697 $ 2,490,168 $ 62,332 $ 2,427,836 Debt securities: Corporate bonds $ 542,573 $ — $ 542,573 $ 402,670 $ — $ 402,670 Other (including restricted) 147,871 13,311 134,560 37,233 13,517 23,716 Equity securities - strategic 133,736 133,736 — 94,816 94,816 — Total marketable investment securities $ 824,180 $ 147,047 $ 677,133 $ 534,719 $ 108,333 $ 426,386 Investments in Unconsolidated Entities — Noncurrent We have strategic investments in certain non-publicly traded 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. Our investments in unconsolidated entities consisted of the following: As of December 31, 2017 2016 (In thousands) Investments in unconsolidated entities—noncurrent: Cost method $ 69,725 $ 80,052 Equity method 91,702 90,964 Total investments in unconsolidated entities—noncurrent $ 161,427 $ 171,016 We recorded cash distributions from our investments accounted for using the equity method of $19.0 million , $10.0 million and zero for the years ended December 31, 2017 , 2016 and 2015 , respectively. These cash distributions were determined to be a return on investment and reported in cash flows from operating activities in our consolidated statements of cash flows . As of December 31, 2017 , our aggregate investment in our equity method investees exceeded our proportionate share of the net assets of the investees by $33.4 million . This difference is attributable to goodwill recorded at acquisition and certain adjustments related to intra-entity transactions subsequent to acquisition. A summary of financial information for Dish Mexico and our equity method investees in the aggregate is as follows: As of December 31, 2017 2016 Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Balance sheet data: Current assets $ 146,851 172,234 $ 139,349 183,732 Noncurrent assets 185,345 187,067 178,369 181,638 Total assets $ 332,196 359,301 $ 317,718 365,370 Current liabilities $ 129,087 130,443 $ 129,563 128,982 Noncurrent liabilities 109,428 110,472 111,501 111,501 Total liabilities $ 238,515 240,915 $ 241,064 240,483 As of December 31, 2017 2016 2015 Dish Mexico Aggregate Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Income statement data: Revenue $ 497,096 $ 535,153 $ 498,069 $ 541,066 $ 471,712 $ 513,378 Operating income $ 15,094 $ 31,919 $ 32,280 $ 52,656 $ 638 $ 20,878 Income before income taxes $ 18,267 $ 32,739 $ 10,195 $ 29,083 $ (26,201 ) $ (9,197 ) Net income $ 15,658 $ 30,130 $ 6,374 $ 25,262 $ (8,512 ) $ 8,492 Net income attributable to EchoStar $ 9,946 $ 16,973 $ 1,358 $ 10,802 $ (10,979 ) $ (2,477 ) In January 2017, we sold our investment in Invidi Technologies Corporation to an entity owned in part by DISH Network for $19.4 million . Our investment was accounted for using the cost method and had a carrying amount of $10.5 million on the date of sale and as a result we recognized a gain of $8.9 million in connection with this transaction for the year ended December 31, 2017 . See Note 19 for additional information about this transaction. In connection with the Share Exchange, our equity interests in NagraStar L.L.C. and SmarDTV SA, which we accounted for using the equity method, and our equity interest in Sling TV Holding L.L.C., which we accounted for using the cost method, were transferred to DISH Network as of February 28, 2017. See Notes 1, 3 and 19 for additional information about the Share Exchange and related party transactions with these companies in which we held equity interests. |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Our trade accounts receivable consisted of the following: As of December 31, 2017 2016 (In thousands) Trade accounts receivable $ 197,294 $ 159,313 Contracts in process, net 11,573 36,170 Total trade accounts receivable 208,867 195,483 Allowance for doubtful accounts (12,027 ) (12,956 ) Trade accounts receivable - DISH Network 43,295 19,417 Total trade accounts receivable, net $ 240,135 $ 201,944 As of December 31, 2017 and 2016 , progress billings offset against contracts in process amounted to $22.8 million and $14.6 million |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, Net [Abstract] | |
Inventory | Inventory Our inventory consisted of the following: As of December 31, 2017 2016 (In thousands) Finished goods $ 70,669 $ 49,755 Raw materials 5,484 6,678 Work in process 7,442 6,187 Total inventory $ 83,595 $ 62,620 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: Depreciable Life (In Years) As of December 31, 2017 2016 (In thousands) Land — $ 33,713 $ 35,815 Buildings and improvements 1-40 185,148 175,593 Furniture, fixtures, equipment and other 1-12 736,533 514,056 Customer rental equipment 2-4 929,775 689,579 Satellites - owned 2-15 3,064,391 2,381,120 Satellites acquired under capital leases 10-15 916,820 781,761 Construction in progress — 260,220 1,418,763 Total property and equipment 6,126,600 5,996,687 Accumulated depreciation (2,661,129 ) (2,598,492 ) Property and equipment, net $ 3,465,471 $ 3,398,195 As of December 31, 2017 and 2016 , accumulated depreciation included amounts for satellites acquired under capital leases of $393.9 million and $328.2 million , respectively. Construction in progress consisted of the following: As of December 31, 2017 2016 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 211,765 $ 1,235,577 Satellite related equipment 28,358 152,737 Other 20,097 30,449 Construction in progress $ 260,220 $ 1,418,763 Construction in progress included the following owned and leased satellites under construction as of December 31, 2017 . Satellites Segment Expected Launch Date Telesat T19V (“63 West”) (1) Hughes Second quarter of 2018 EchoStar XXIV Corporate and Other 2021 (1) We entered into an agreement for certain capacity on this satellite once launched, but are not party to the construction contract. We recorded capitalized interest related to our satellites, satellite payloads and related ground facilities under construction of $52.0 million , $94.4 million and $63.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Depreciation expense associated with our property and equipment consisted of the following: For the Years Ended December 31, 2017 2016 2015 (In thousands) Satellites $ 239,072 $ 191,729 $ 197,469 Furniture, fixtures, equipment and other 82,668 65,350 77,946 Customer rental equipment 146,562 114,568 105,725 Buildings and improvements 7,004 6,922 7,845 Total depreciation expense $ 475,306 $ 378,569 $ 388,985 Satellites depreciation expense includes amortization of satellites under capital lease agreements of $66.1 million , $56.2 million and $56.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Satellites As of December 31, 2017 , our satellite fleet consisted of 19 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. As of December 31, 2017 , four of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over their respective lease terms. Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2017 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 EchoStar I (2)(3)(4)(7) ESS December 1995 77 W — EchoStar VI (4)(7) ESS July 2000 96.2 W 12 EchoStar VII (2)(3)(4) ESS February 2002 119 W 3 EchoStar IX (2)(4) ESS August 2003 121 W 12 EchoStar X (2)(3) ESS February 2006 110 W 7 EchoStar XI (2)(3) ESS July 2008 110 W 9 EchoStar XII (2)(4)(5) ESS July 2003 61.5 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5 W 15 EchoStar XXI Corporate and Other June 2017 10.25 E 15 EchoStar XXIII Corporate and Other March 2017 45 W 15 EUTELSAT 10A (“W2A”) (6) Corporate and Other April 2009 10 E — Capital Leases: Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 Eutelsat 65 West A Hughes March 2016 65 W 15 EchoStar 105/SES-11 ESS October 2017 105 W 15 (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries. (2) See Note 19 for discussion of related party transactions with DISH Network. (3) 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 19 ). (4) Fully depreciated assets as of December 31, 2017. (5) Depreciable life represents the remaining useful life as of June 30, 2013, the date the EchoStar XII satellite was impaired. (6) 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. (7) The EchoStar I satellite was retired in January 2018 and the EchoStar VI satellite is expected to be retired in the second quarter of 2018. Recent Developments EchoStar I . The EchoStar I satellite was removed from its orbital location and retired from commercial service in January 2018. This retirement is not expected to have a material impact on our results of operations or financial position. EchoStar VI . We expect to remove the EchoStar VI satellite from its orbital location and retire it from commercial service in the second quarter of 2018. This retirement is not expected to have a material impact on our results of operations or financial position. EchoStar 105/SES-11. The EchoStar 105/SES-11 satellite was launched in October 2017 and was placed into service in November 2017 at the 105 degree west longitude orbital location. Pursuant to agreements we entered into in August 2014, we funded substantially all construction, launch and other costs associated with the EchoStar 105/SES-11 satellite and transferred the C-, Ku- and Ka-band payloads to two affiliates of SES Americom, Inc. (“SES”) after the launch date, while retaining the right to use the entire Ku-band payload on the satellite for an initial ten-year term, with an option for us to renew the agreement on a year-to-year basis. In October 2017, we recorded a $77.5 million receivable from SES in “Other current assets,” representing capitalized costs allocable to certain satellite payloads controlled by SES, and we reduced our carrying amount of the satellite by such amount. In January 2018, we received payment from SES for the receivable plus accrued interest. Our leased Ku-band payload on the EchoStar 105/SES-11 satellite has replaced the capacity we had on the AMC-15 satellite. EchoStar XXI . The EchoStar XXI satellite was launched in June 2017 and was placed into service in November 2017 at the 10.25 degree east longitude orbital location. The EchoStar XXI satellite provides space segment capacity to EchoStar Mobile Limited in Europe. EchoStar III. In July 2017, the EchoStar III satellite experienced an anomaly that caused communications with the satellite to be interrupted resulting in a loss of control. We regained communications with and control of the EchoStar III satellite and retired the satellite from commercial service in August 2017. This retirement has not had, and is not expected to have, a material impact on our results of operations or financial position. EchoStar VIII. During the second quarter of 2017, the EchoStar VIII satellite was removed from its orbital location and retired from commercial service. This retirement has not had, and is not expected to have, a material impact on our results of operations or financial position. EchoStar XXIII. The EchoStar XXIII satellite, a Ku-band broadcast satellite services satellite, was launched in March 2017 and placed into service at the 45 degree west longitude orbital location in May 2017. EchoStar XIX . The EchoStar XIX satellite was launched in December 2016 and placed into service in March 2017 at the 97.1 degree west longitude orbital location. The EchoStar XIX satellite provides capacity for the Hughes broadband services to our customers in North America, capacity in certain Central and South American countries and capability for aeronautical, enterprise and international broadband services. EchoStar contributed the EchoStar XIX satellite to its Hughes segment in February 2017. AMC-15 and AMC-16. In August 2014, in connection with the execution of agreements related to the EchoStar 105/SES-11 satellite, we entered into amendments that extended the terms of our then existing agreements with a subsidiary of SES for satellite services on the AMC-15 and AMC-16 satellites. Our agreement for satellite services on certain transponders on the AMC-15 satellite terminated according to its terms in December 2017. The AMC-15 satellite was accounted for as an operating lease. Our agreement for the AMC-16 satellite services terminated according to its terms in February 2016. As a result of anomalies that affected the operation of the AMC-15 and AMC-16 satellites, our monthly recurring payments were reduced under the related capital lease agreements during the three months ending March 31, 2015. We have accounted for these lease modifications generally by reducing the carrying amounts of the satellite and related capital lease obligation by the present value of the payment reduction. In such instances where the carrying amount of the satellite had been reduced to zero as a result of accumulated depreciation or impairments, we have recognized the reductions in the capital lease obligations as gains in “ Other, net ” in our consolidated statements of operations . For the years ended December 31, 2017 , 2016 and 2015 , we recognized such gains of zero , zero and $4.5 million , respectively. Satellite Anomalies and Impairments Our satellites may experience anomalies from time to time, some of which may have a significant adverse effect on their remaining useful lives, the commercial operation of the satellites or our operating results or financial position. We are not aware of any anomalies with respect to our owned or leased satellites that have had any such significant adverse effect during the year ended December 31, 2017 . There can be no assurance, however, that anomalies will not have any such adverse impacts in the future. 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. EchoStar X experienced anomalies in the past which affected seven solar array circuits. In December 2017, EchoStar X experienced anomalies which affected one additional solar array circuit reducing the number of functional solar array circuits to 16. While these anomalies did not significantly impact commercial operation or remaining useful life of the satellite or our operating results or financial position for the year ended December 31, 2017, we do expect a loss of future revenue on this satellite as a result of such anomalies. We historically have not carried in-orbit insurance on our satellites because we assessed that the cost of insurance was uneconomical relative to the risk of failures. Therefore, we generally bear the risk of any 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 in-orbit insurance for our SPACEWAY 3, EchoStar XVI, and EchoStar XVII satellites. Based on economic analysis of the current insurance market we obtained launch plus one year in-orbit insurance, subject to certain limitations, for the EchoStar XIX, EchoStar XXI and EchoStar XXIII satellites. Additionally, we obtained certain launch and in-orbit insurance for our interest in the EchoStar 105/SES-11 satellite. Our other satellites, either in orbit or under construction, are not covered by launch or in-orbit insurance. We will continue to assess circumstances going forward and make insurance decisions on a case by case basis. 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 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. |
Goodwill, Regulatory Authorizat
Goodwill, Regulatory Authorizations and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Regulatory Authorizations and Other Intangible Assets | Goodwill, Regulatory Authorizations 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 the reporting units within our operating segments and is subject to impairment testing annually, 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 December 31, 2017 and 2016, all goodwill related to our continuing operations was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Based on our qualitative assessment of impairment in the second quarter of 2017 , we determined that 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 included amounts with finite and indefinite useful lives, as follows: As of Additions Impairment Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 87,959 $ — $ — $ 4,662 $ 92,621 Accumulated amortization (14,983 ) (5,097 ) — (1,262 ) (21,342 ) Net 72,976 (5,097 ) — 3,400 71,279 Indefinite lives 471,657 — (6,000 ) — 465,657 Total regulatory authorizations, net $ 544,633 $ (5,097 ) $ (6,000 ) $ 3,400 $ 536,936 Amortization expense for the regulatory authorizations with finite lives was $5.1 million , $4.7 million and $4.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Regulatory authorizations with finite lives include our Brazilian license, which had a carrying amount of $36.3 million and $38.6 million as of December 31, 2017 and 2016 , respectively. We satisfied our regulatory obligations to meet certain in-service milestones for our Brazilian license at the 45 degree west longitude orbital location for the Ku-band frequency. On October 5, 2017, ANATEL declined our request to extend our milestone deadlines for the S-band and Ka-band frequencies and, as a result, we do not have the right to use such frequencies in Brazil. We may be subject to penalties as a result of our failure to meet these milestones. The loss of our right to use the S-band and Ka-band frequencies in October 2017 was an event that could have affected the recoverability of the carrying amount of our Brazilian license and related ground infrastructure assets. In the absence of a current definitive business plan to serve as the basis for a test of recoverability of such assets, we tested such assets for impairment in the fourth quarter of 2017. Our impairment test involved estimation of fair value of the Brazilian license primarily using a model that quantified the present value of estimated cash outflows to lease satellite capacity in excess of estimated cash outflows to construct, launch and operate a satellite with equivalent capacity using the Brazilian license. Our fair value estimate included significant unobservable inputs related to transponder lease rates, satellite costs and discount rates, and is categorized within Level 3 of the fair value hierarchy. We determined that the estimated fair value of our Brazilian license and related assets exceeded their carrying amount and we did not recognize an impairment loss. Prior to the fourth quarter of 2017, our regulatory authorizations with indefinite lives included $6.0 million for contractual rights to utilize certain frequencies, in addition to those specified in the Brazilian license, at the 45 degree west longitude orbital location. We acquired such contractual rights in 2012 and have evaluated potential opportunities to utilize the frequencies in conjunction with our Brazilian license. We determined in the fourth quarter of 2017 that certain actions required to utilize the frequencies had become impractical with the passage of time. As a result of these circumstances, we determined that the fair value of such contractual rights was de minimis and we recognized a $6.0 million impairment loss in our ESS segment in the fourth quarter of 2017. Other Intangible Assets Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of December 31, 2017 2016 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (231,642 ) $ 38,658 $ 270,300 $ (214,544 ) $ 55,756 Technology-based 6 61,300 (60,927 ) 373 60,835 (57,266 ) 3,569 Trademark portfolio 20 29,700 (9,776 ) 19,924 29,700 (8,291 ) 21,409 Total other intangible assets $ 361,300 $ (302,345 ) $ 58,955 $ 360,835 $ (280,101 ) $ 80,734 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. Intangible asset amortization expense, including amortization of regulatory authorizations with finite lives and externally marketed capitalized software, was $46.9 million , $54.3 million and $71.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Future Amortization As of December 31, 2017 , our estimated future amortization of intangible assets, including regulatory authorizations with finite lives, was as follows: Amount (In thousands) For the Years Ending December 31, 2018 $ 20,106 2019 20,106 2020 16,470 2021 9,831 2022 6,867 Thereafter 60,799 Total $ 134,179 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations As of December 31, 2017 , our debt primarily consisted of the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes, the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes, each as defined below, and our capital lease obligations. The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,042,609 $ 990,000 $ 1,084,050 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 769,305 750,000 739,688 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 992,745 900,000 990,189 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 791,865 750,000 760,245 Less: Unamortized debt issuance costs (24,857 ) — (31,821 ) — Subtotal 3,365,143 $ 3,596,524 3,358,179 $ 3,574,172 Capital lease obligations 269,701 297,268 Total debt and capital lease obligations 3,634,844 3,655,447 Less: Current portion (40,631 ) (32,984 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,594,213 $ 3,622,463 The fair values of our debt are estimates categorized within Level 2 of the fair value hierarchy. 2019 Senior Secured Notes and 2021 Senior Unsecured Notes On June 1, 2011, HSS issued $1.10 billion aggregate principal amount of 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”) at an issue price of 100.0% , pursuant to a Secured Indenture dated June 1, 2011, (as amended the “2011 Secured Indenture”). The 2019 Senior Secured Notes mature on June 15, 2019. Interest accrues at an annual rate of 6 1/2% and is payable semi-annually in cash, in arrears on June 15 and December 15 of each year. As of December 31, 2017 and 2016 , the outstanding principal balance on the 2019 Senior Secured Notes was $990.0 million . On June 1, 2011, HSS also issued $900.0 million aggregate principal amount of 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes,”) at an issue price of 100.0% , pursuant to an Unsecured Indenture dated June 1, 2011 (together with the “2011 Secured Indenture”, the “2011 Indentures”). The 2021 Senior Unsecured Notes mature on June 15, 2021. Interest accrues at an annual rate of 7 5/8% and is payable semi-annually in cash, in arrears on June 15 and December 15 of each year. As of December 31, 2017 and 2016 , the outstanding principal balance on the 2021 Senior Unsecured Notes was $900.0 million . On June 12, 2015, we redeemed $110.0 million of the 2019 Senior Secured Notes at a redemption price equal to 103.0% of the principal amount plus accrued and unpaid interest. As a result, we recorded a $5.0 million loss consisting of the $3.3 million redemption premium and a $1.7 million write-off of related unamortized debt issuance costs . 2026 Senior Secured Notes and 2026 Senior Unsecured Notes On July 27, 2016, HSS issued $750 million aggregate principal amount of 5 1/4% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes” and, together with the 2019 Senior Secured Notes, the “Secured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (the “2016 Secured Indenture”) and $750 million aggregate principal amount of 6 5/8% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and, together with the 2021 Senior Unsecured Notes, the “Unsecured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (together with the 2011 Indentures and the 2016 Secured Indenture, the “Indentures”). The 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes, the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes are referred to collectively as the “Notes” and individually as a series of the Notes. The 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes (collectively, the “2026 Notes”) mature on August 1, 2026. Interest on the 2026 Senior Secured Notes accrues at an annual rate of 5 1/4% and interest on the 2026 Senior Unsecured Notes accrues at an annual rate of 6 5/8%. Interest on the 2026 Notes is payable semi-annually in cash, in arrears on February 1 and August 1 of each year commencing February 1, 2017. At each of December 31, 2017 and 2016 , the outstanding principal balance on each of the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes was $750.0 million , respectively. Additional Information Relating to the Notes Each series of the Notes is redeemable, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount thereof plus a “make-whole” premium, as defined in the applicable Indenture, together with accrued and unpaid interest, if any, to the date of redemption. HSS may also redeem up to 10% of the outstanding 2026 Senior Secured Notes per year prior to August 1, 2020 at a redemption price equal to 103% of the principal amount thereof plus accrued and unpaid interest to the date of redemption. In addition, HSS may, at any time prior to August 1, 2019, with the net cash proceeds from certain equity offerings or capital contributions, redeem up to 35% of the 2026 Senior Secured Notes, at 105.250% of the principal amount, and up to 35% of the 2026 Senior Unsecured Notes, at a redemption price equal to 106.625% of the principal amount plus, in each case, accrued and unpaid interest on the 2026 Notes being redeemed to the date of redemption. The Secured Notes are: • secured obligations of HSS; • secured by security interests in substantially all existing and future tangible and intangible assets of HSS and certain of its subsidiaries on a first priority basis, subject to certain exceptions; • ranked equally and ratably as between the 2019 Senior Secured Notes and the 2026 Senior Secured Notes; • effectively junior to HSS’ obligations that are secured by assets that are not part of the collateral that secures the respective Secured Notes, in each case, to the extent of the value of the collateral securing such obligations; • effectively senior to HSS’ existing and future unsecured obligations to the extent of the value of the collateral securing the respective Secured Notes, after giving effect to permitted liens as provided in the Indenture governing the respective Secured Notes; • senior in right of payment to all existing and future obligations of HSS that are expressly subordinated to the respective Secured Notes; • structurally junior to any existing and future obligations of any of HSS’ subsidiaries that do not guarantee the respective Secured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of our HSS’ subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness and effectively senior to such guarantors’ existing and future obligations to the extent of the value of the assets securing the respective Secured Notes. The Unsecured Notes are: • unsecured senior obligations of HSS; • ranked equally with all existing and future unsubordinated indebtedness (including as between the 2021 Senior Unsecured Notes and the 2026 Senior Unsecured Notes) and effectively junior to any secured indebtedness up to the value of the assets securing such indebtedness; • effectively junior to HSS’ obligations that are secured to the extent of the value of the collateral securing such obligations; • senior in right of payment to all existing and future obligations of HSS that are expressly subordinated to the respective Unsecured Notes; • structurally junior to any existing and future obligations of any of HSS’ subsidiaries that do not guarantee the respective Unsecured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of HSS’ subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness, and effectively junior to any secured indebtedness of the guarantors up to the value of the assets securing such indebtedness. Subject to certain exceptions, the Indentures contain restrictive covenants that, among other things, impose limitations on HSS’ ability and, in certain instances, the ability of certain of HSS’ subsidiaries to: • incur additional debt; • pay dividends or make distributions on HSS’ capital stock or repurchase HSS’ capital stock; • make certain investments; • create liens or enter into sale and leaseback transactions; • enter into transactions with affiliates; • merge or consolidate with another company; • transfer and sell assets; and • allow to exist certain restrictions on the ability of certain of HSS’ subsidiaries to pay dividends, make distributions, make other payments, or transfer assets to HSS or its subsidiaries. In the event of a Change of Control, as defined in the respective Indentures, HSS would be required to make an offer to repurchase all or any part of a holder’s Notes at a purchase price equal to 101.0% of the aggregate principal amount thereof, together with accrued and unpaid interest to the date of repurchase. The Indentures provide for customary events of default for each series of the Notes, including, among other things, nonpayment, breach of the covenants in the applicable Indentures, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If any event of default occurs and is continuing with respect to any series of the Notes, the trustee or the holders of at least 25% in principal amount of the then outstanding Notes of such series may declare all the Notes of such series to be due and payable immediately, together with any accrued and unpaid interest. Pursuant to the terms of a registration rights agreement, HSS registered notes having substantially identical terms as the 2026 Notes with the SEC as part of an offer to exchange registered notes for the 2026 Notes. This exchange offer expired May 11, 2017 with 99.98% of the 2026 Notes being tendered for exchange. Debt Issuance Costs In connection with the issuance of the 2026 Notes, we incurred $7.5 million of debt issuance costs. For the years ended December 31, 2017 , 2016 and 2015 , we amortized $7.4 million , $6.6 million and $6.0 million of debt issuance costs, respectively, which are included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations . Capital Lease Obligations Our capital lease obligations reflect the present value of future minimum lease payments under noncancelable lease agreements, primarily for certain of our satellites (see Note 9 ). These agreements require monthly recurring payments, which generally include principal, interest, an amount for use of the orbital location and estimated executory costs, such as insurance and maintenance. The monthly recurring payments generally are subject to reduction in the event of failures that reduce the satellite transponder capacity. Certain of these agreements provide for extension of the initial lease term at our option. The effective interest rates for our satellite capital lease obligations range from 6.0% to 11.2% , with a weighted average of 10.5% as of December 31, 2017 . Our capital lease obligations consist primarily of our payment obligations under agreements for the Nimiq 5 and QuetzSat-1 satellites, which have remaining noncancelable terms ending in September 2024 and November 2021, respectively. As discussed in Note 19 , we have subleased transponders on these satellites to DISH Network. Future minimum lease payments under our capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2017 , are as follows: Amount (In thousands) For the Years Ending December 31, 2018 $ 93,038 2019 88,739 2020 88,496 2021 84,371 2022 63,622 Thereafter 110,880 Total minimum lease payments 529,146 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (162,404 ) Net minimum lease payments 366,742 Less: Amount representing interest (97,041 ) Present value of net minimum lease payments 269,701 Less: Current portion (40,631 ) Long-term portion of capital lease obligations $ 229,070 We received rental income from the sublease of our capital lease satellites of approximately $132.4 million for each of the years ended December 31, 2017 , 2016 and 2015 . As of December 31, 2017 , our future minimum sublease rental income was $348.5 million relating to such satellites. The subleases have a remaining weighted average term of three years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income from continuing operations before income taxes are as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Domestic $ 146,383 $ 236,200 $ 140,738 Foreign (45,689 ) (19,574 ) (1,411 ) Income from continuing operations before income taxes $ 100,694 $ 216,626 $ 139,327 The components of the provision for income taxes are as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Current benefit (provision): Federal $ (8,652 ) $ (19,385 ) $ — State (1,237 ) 267 (8,926 ) Foreign (2,335 ) (2,481 ) (4,470 ) Total current benefit (provision) (12,224 ) (21,599 ) (13,396 ) Deferred benefit (provision): Federal 299,693 (58,250 ) (42,659 ) State 2,356 (6,232 ) 3,285 Foreign (5,539 ) 5,827 1,535 Total deferred benefit (provision) 296,510 (58,655 ) (37,839 ) Total income tax benefit (provision), net $ 284,286 $ (80,254 ) $ (51,235 ) The actual tax provisions for the years ended December 31, 2017 , 2016 and 2015 reconcile to the amounts computed by applying the statutory federal tax rate to income from continuing operations before income taxes as shown below: For the Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit (12.2 )% 5.0 % 3.8 % Permanent differences (0.3 )% 1.4 % 1.7 % Tax credits (8.1 )% (4.2 )% (8.4 )% Valuation allowance 4.6 % (0.3 )% 1.4 % Enactment of Tax Cuts and Job Act of 2017 (301.4 )% — % — % Other 0.1 % 0.1 % 3.3 % Total effective tax rate (282.3 )% 37.0 % 36.8 % The components of our deferred tax assets and liabilities are as follows: As of December 31, 2017 2016 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 278,540 $ 178,925 Unrealized losses on investments, net 22,260 47,737 Accrued expenses 23,583 39,596 Stock-based compensation 9,148 14,389 Other assets 11,890 15,008 Total deferred tax assets 345,421 295,655 Valuation allowance (66,886 ) (75,372 ) Deferred tax assets after valuation allowance 278,535 220,283 Deferred tax liabilities: Depreciation and amortization (708,599 ) (962,838 ) Other liabilities (1,509 ) (1,319 ) Total deferred tax liabilities (710,108 ) (964,157 ) Total net deferred tax liabilities $ (431,573 ) $ (743,874 ) Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We evaluate our deferred tax assets for realization and record a valuation allowance when we determine that it is more likely than not that the amounts will not be realized. Overall, our net deferred tax assets were offset by a valuation allowance of $66.9 million and $75.4 million as of December 31, 2017 and 2016 , respectively. The change in the valuation allowance primarily relates to an increase in the net operating loss carryforwards of certain foreign subsidiaries and a decrease associated with unrealized gains that are capital in nature. Tax benefits of net operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. As of December 31, 2017 , we had net operating loss carryforwards of $798.5 million , including $168.4 million of foreign net operating loss carryforwards. A substantial portion of these net operating loss carryforwards will begin to expire in 2029. As of December 31, 2017 , we have tax credit carryforwards of $126.2 million and $84.0 million for federal and state income tax purposes, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2026 and the state tax credit carryforwards will begin to expire in 2018. As of December 31, 2017 , we had undistributed earnings attributable to foreign subsidiaries for which no provision for U.S. income taxes or foreign withholding taxes has been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely. It is not practicable to determine the amount of the unrecognized deferred tax liability at this time. Accounting for the U.S. Tax Cuts and Jobs Act The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was enacted in December 2017 and has significantly impacted our effective tax rate and the tax benefit calculated for the year ended December 31, 2017 . We have provisionally recorded a benefit of $303.5 million to reflect the change in the value of our deferred tax assets and liabilities resulting from the change in the federal corporate tax rate from 35% to 21% . This amount includes a provisional estimate of zero related to valuation allowances on foreign tax credit carryovers. In order to complete this analysis, we must refine our forecast of qualifying foreign source income under the 2017 Tax Act including the effects of the new foreign-derived intangible income provisions. We will account for the effects, if any, of the global intangible low-taxed income provisions (“GILTI”) of the 2017 Tax Act as incurred. We also have recorded a provisional estimate of zero related to the tax on deemed mandatory repatriation of our unrepatriated foreign earnings. We are gathering more detailed historical financial information from our non-consolidated foreign affiliates in order to complete our analysis of the impacts of the 2017 Tax Act on our financial position and operating results. Due to the timing of the enactment and the complexity involved in applying the provisions of the 2017 Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements for the year ended December 31, 2017. As we collect and prepare necessary data, and interpret the 2017 Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS or other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustment may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. Accounting for Uncertainty in Income Taxes In addition to filing U.S. federal income tax returns , we file income tax returns in all states that impose an income tax. As of December 31, 2017 , we are not currently under a U.S. federal income tax examination, however, the IRS can perform tax examination as early as tax year 2008. We are also subject to frequent state income tax audits and have open state examinations in years as early as 2008. We also file income tax returns in the United Kingdom, Brazil, India and a number of other foreign jurisdictions. We generally are open to income tax examination in these foreign jurisdictions for taxable years beginning in 2003. As of December 31, 2017 , we are currently being audited by the Indian tax authorities for fiscal years 2003 through 2012. We have no other on-going significant income tax examinations in process in our foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the Years Ended December 31, Unrecognized tax benefit 2017 2016 2015 (In thousands) Balance as of beginning of period $ 63,502 $ 62,366 $ 44,839 Additions based on tax positions related to the current year 1,116 2,132 11,748 Additions based on tax positions related to prior years 258 3 5,779 Reductions based on tax positions related to prior years (852 ) (734 ) — Reductions based on tax settlements — (265 ) — Reductions based on expirations of statute of limitations (728 ) — — Balance as of end of period $ 63,296 $ 63,502 $ 62,366 As of December 31, 2017 , we had $63.3 million of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. As of December 31, 2016 , we had $63.5 million of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. We do not believe that the total amount of unrecognized income tax benefits will significantly increase or decrease within the next twelve months due to the lapse of statute of limitations or settlement with tax authorities. For the years ended December 31, 2017 , 2016 and 2015 , our income tax provision included an insignificant amount of interest and penalties. Estimates of our uncertain tax positions are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, we will record additional income tax provision or benefit in the period in which such resolution occurs. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Our board of directors is authorized to divide the preferred stock into series and, with respect to each series, to determine the preferences and rights and the qualifications, limitations or restrictions of the series, including the dividend rights, conversion rights, voting rights, redemption rights and terms, liquidation preferences, sinking fund provisions, the number of shares constituting the series, and the designation of such series. Our board of directors may, without stockholder approval, issue additional preferred stock of existing or new series with voting and other rights that could adversely affect the voting power of the holders of common stock and could have certain anti-takeover effects. In February 2014, our board of directors authorized 13,000,000 shares of Hughes Retail Preferred Tracking Stock with a par value of $0.001 per share, of which 6,290,499 shares were issued to DISH Network on March 1, 2014. Following consummation of the Share Exchange on February 28, 2017, the Hughes Retail Preferred Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to such tracking stock terminated and are of no further effect. See Note 19 for additional information about the Share Exchange. Common Stock Our Class A, Class B, and Class C common stock are equivalent except for voting rights. Holders of Class A and Class C common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per share. Upon a change in control of the Company, each holder of outstanding shares of Class C common stock is entitled to 10 votes for each share of Class C common stock held. Each share of Class B and Class C common stock is convertible, at the option of the holder, into one share of Class A common stock. Our principal stockholder and certain trusts established by him for the benefit of his family own all outstanding Class B common stock. There are no shares of Class C common stock outstanding. Any holder of Class D common stock is not entitled to a vote on any matter or to convert the shares of Class D common stock into any other class of common stock. There are no shares of Class D common stock outstanding. Each share of common stock is entitled to receive its pro rata share, based upon the number of shares of common stock held, of dividends and distributions upon liquidation. Common Stock Repurchase Program Pursuant to a stock repurchase program approved by our board of directors, we are authorized to repurchase up to $500.0 million of our outstanding shares of Class A common stock through and including December 31, 2018. For the years ended December 31, 2017 , 2016 and 2015 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Stock Purchase Plan We have an employee stock purchase plan (the “ESPP”), under which we are authorized to issue 5.0 million shares of Class A common stock. As of December 31, 2017 , we had 2.7 million shares of Class A common stock which remain available for issuance under the ESPP. Substantially all full-time employees are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, each employee’s deductions are limited so that the maximum they may purchase under the ESPP is $25,000 in fair value of Class A common stock per year. Stock purchases are made on the last business day of each calendar quarter at 85.0% of the closing price of the Class A common stock on that date. For the years ended December 31, 2017 , 2016 and 2015 , employee purchases of Class A common stock through the ESPP totaled approximately 176,000 shares, 227,000 shares and 228,000 shares, respectively. 401(k) Employee Savings Plans Under the EchoStar 401(k) Plan (“the Plan”), eligible employees are entitled to contribute up to 75.0% of their eligible compensation subject to the maximum contribution limit provided by the Internal Revenue Code of 1986, as amended (the “Code”). Eligible employees have the option to contribute up to 75% of their eligible compensation on a pre-tax and/or after-tax basis subject to the Code limits. All employee contributions to the Plan are immediately vested. The Company matches 50 cents on the dollar for the first 6.0% of each employee’s salary contributions to the Plan for a total of 3.0% match on a pre-tax basis up to a maximum of $7,500 annually. The Company match is calculated each pay period there is an employee contribution. In addition, the Company may make an annual discretionary contribution to the 401(k) plan to be made in cash or our stock. Company contributions under the Plan vest at 20.0% per year and are 100.0% vested after an eligible employee has completed five years of employment. Forfeitures of unvested participant balances may be used to fund matching and discretionary contributions. During the years ended December 31, 2017 , 2016 and 2015 , we recognized matching contributions, net of forfeitures, of $5.1 million , $5.9 million and $5.6 million , respectively, and made discretionary contributions of shares of our Class A common stock, net of forfeitures, with a fair value of $6.7 million , $8.0 million and $7.7 million , respectively (approximately 130,000 , 210,500 and 151,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Plans We maintain stock incentive plans to attract and retain officers, directors and employees. Stock awards under these plans may include both performance-based and non-performance based stock incentives. As of December 31, 2017 , we had outstanding under these plans, stock options to acquire approximately 5.0 million shares of our Class A common stock. Stock options granted prior to December 31, 2017 were granted with exercise prices equal to or greater than the market value of our Class A common stock at the date of grant and generally with a maximum term of ten years for our officers and employees and five years for our non-employee directors. While generally we issue stock awards subject to vesting, typically over three to five years , some stock awards have been granted with immediate or longer vesting and other stock awards vest also or only upon the achievement of certain performance objectives. Under these plans, we grant to certain of our employees awards of fully vested shares of Class A common stock under our Employee Innovator Recognition Program, which is available to all of our eligible employees. As of December 31, 2017 , we had 8.1 million shares of our Class A common stock available for future grant under our stock incentive plans. Exercise prices for stock options outstanding and exercisable as of December 31, 2017 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2017 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2017 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 57,359 3 $ 18.63 57,359 3 $ 18.63 $20.01 - $25.00 438,614 2 $ 20.18 438,614 2 $ 20.18 $25.01 - $30.00 10,210 2 $ 27.95 10,210 2 $ 27.95 $30.01 - $35.00 352,500 5 $ 34.22 352,500 5 $ 34.22 $35.01 - $40.00 2,019,000 5 $ 38.20 1,643,000 4 $ 38.03 $40.01 - $45.00 254,000 8 $ 43.93 33,200 8 $ 43.93 $45.01 - $50.00 807,173 7 $ 47.57 428,773 6 $ 47.68 $50.01 - $55.00 354,900 7 $ 51.98 150,000 7 $ 52.05 $55.01 - $60.00 595,000 9 $ 56.95 10,000 4 $ 56.95 $60.01 and over 62,500 8 $ 60.70 20,000 5 $ 60.70 4,951,256 6 $ 41.42 3,143,656 4 $ 36.98 Stock Award Activity Our stock option activity was as follows: For the Years Ended December 31, 2017 2016 2015 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 5,968,763 $ 39.30 5,893,241 $ 38.38 6,669,614 $ 34.02 Granted (1) 1,262,500 $ 57.12 732,000 $ 41.86 929,000 $ 51.59 Exercised (1,018,507 ) $ 35.84 (453,182 ) $ 28.83 (894,071 ) $ 27.78 Forfeited and canceled (1) (1,261,500 ) $ 51.63 (203,296 ) $ 45.15 (811,302 ) $ 29.45 Total options outstanding, end of period 4,951,256 $ 41.42 5,968,763 $ 39.30 5,893,241 $ 38.38 Exercisable at end of period 3,143,656 $ 36.98 3,551,063 $ 35.40 3,082,241 $ 32.61 (1) On April 1, 2017, we granted to Mr. Ergen, our Chairman, an option to purchase 1.1 million shares of Class A common stock. On April 24, 2017, Mr. Ergen voluntarily forfeited a portion of the option covering 600,000 shares and we canceled such forfeited portion of the option. We realized total tax benefits from stock options exercised of $3.1 million , $2.0 million and $6.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The aggregate intrinsic value of our stock options exercised was $19.6 million , $7.9 million and $14.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Our restricted stock unit activity was as follows: For the Years Ended December 31, 2017 2016 2015 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period 6,667 $ 34.22 57,328 $ 42.31 96,768 $ 29.29 Granted — $ — — $ — 100,000 $ 50.00 Vested (6,667 ) $ 34.22 (50,661 ) $ 43.38 (83,992 ) $ 45.72 Forfeited and canceled — $ — — $ — (55,448 ) $ 27.01 Total restricted stock units outstanding, end of period — $ — 6,667 $ 34.22 57,328 $ 42.31 Restricted Performance Units outstanding, end of period — $ — — $ — 33,334 $ 50.00 The total fair value of restricted stock units vested was $0.2 million , $2.2 million and $3.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In 2015, we granted 100,000 restricted stock units (“RSUs”). The RSUs vested based on the attainment of certain quarterly company performance criteria for the second, third and fourth quarters of 2015. In 2015, 66,666 of the RSUs vested and in February 2016 the remaining 33,334 RSUs vested. Stock-Based Compensation Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2017 , 2016 and 2015 and was assigned to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2017 2016 2015 (In thousands) Research and development expenses $ 1,010 $ 1,046 $ 1,420 Selling, general and administrative expenses 10,630 9,865 15,707 Total stock-based compensation $ 11,640 $ 10,911 $ 17,127 The income tax benefits related to stock-based compensation expense was $3.9 million , $3.7 million and $8.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our unvested stock awards was $20.2 million . This amount is based on an estimated future forfeiture rate of approximately 2.0% per year and will be recognized over a weighted-average period of approximately two years . Valuation of Stock Options The fair value of each stock option granted for the years ended December 31, 2017 , 2016 and 2015 was estimated at the date of the grant using a Black-Scholes option valuation model. The estimated grant-date fair values and related assumptions were as follows: For the Years Ended December 31, Assumptions: 2017 2016 2015 Risk-free interest rate 1.98% - 2.05% 1.10% - 1.87% 1.38% - 1.80% Volatility factor 24.20% - 26.69% 27.22% - 27.37% 27.16% - 27.85% Expected term of options in years 5.7 - 5.8 5.7 - 5.8 5.3 - 5.4 Weighted-average grant-date fair value $15.25 - $16.49 $11.15 - $12.49 $12.25 - $15.05 We do not currently intend to pay dividends on our common stock and accordingly, the dividend yield used in the Black-Scholes option valuation model was assumed to be zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from that determined using other valuation models. Further, the Black-Scholes option valuation model requires the input of subjective assumptions. Changes in the subjective input assumptions can materially affect the fair value estimate. Based on the closing market price of our Class A common stock on December 31, 2017 , the aggregate intrinsic value of our stock options was $91.5 million for options outstanding and $72.1 million for options exercisable as of December 31, 2017 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes our contractual obligations at December 31, 2017 : Payments Due in the Year Ending December 31, Total 2018 2019 2020 2021 2022 Thereafter (In thousands) Long-term debt $ 3,390,000 $ — $ 990,000 $ — $ 900,000 $ — $ 1,500,000 Capital lease obligations 269,701 40,631 40,740 45,096 46,450 31,985 64,799 Interest on long-term debt and capital lease obligations 1,235,317 248,840 212,466 175,899 136,730 98,282 363,100 Satellite-related obligations 923,910 342,065 139,312 111,662 57,691 124,411 148,769 Operating lease obligations 84,944 15,423 14,385 14,089 11,547 7,588 21,912 Total $ 5,903,872 $ 646,959 $ 1,396,903 $ 346,746 $ 1,152,418 $ 262,266 $ 2,098,580 “Satellite-related obligations” primarily include payments pursuant to agreements for the construction of the EchoStar XXIV satellite; payments pursuant to launch services contracts and regulatory authorizations; executory costs for our capital lease satellites; costs under satellite service agreements; and in-orbit incentives relating to certain satellites; as well as commitments for long-term satellite operating leases and satellite service arrangements. We incurred satellite-related expenses of $139.9 million , $144.2 million and $212.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The table above does not include amounts related to deferred tax liabilities, unrecognized tax positions and certain other amounts recorded in our noncurrent liabilities as the timing of any payments is uncertain. The table also excludes long-term deferred revenue and other long-term liabilities that do not require future cash payments. In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change. Rent Expense For the years ended December 31, 2017 , 2016 and 2015 , we recorded $29.8 million , $21.1 million and $17.9 million , respectively, of operating lease expense relating to the leases of office space, equipment, and other facilities. Contingencies Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that we offer. We may not be aware of all patents and other intellectual property rights that our products and services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to our products and services. We cannot be certain that these persons do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement; Share Exchange 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 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. Additionally, in connection with the Share Exchange, we entered into the Share Exchange Agreement and other agreements which provide, among other things, for the division of certain liabilities, including liabilities relating to taxes, intellectual property and employees and liabilities resulting from litigation and the assumption of certain liabilities that relate to the transferred businesses and assets. These agreements also contain additional indemnification provisions between us and DISH Network for certain pre-existing liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages and/or 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. 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. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases described below, management is unable to predict with any degree of certainty the outcome or 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 or specified; (iii) damages are unsupported, indeterminate and/or exaggerated in management’s opinion; (iv) there is uncertainty as to the outcome of pending trials, 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). Except as described below, for these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial condition, operating results or cash flows, though there is no assurance that the resolution and outcomes of these proceedings, individually or in the aggregate, will not be material to our financial condition, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We intend to vigorously defend the proceedings against us. In the event that a court or jury ultimately rules against us, we may be subject to adverse consequences, including, without limitation, substantial damages, which may include treble damages, fines, penalties, compensatory damages and/or other equitable or injunctive relief that could require us to materially modify our business operations or certain products or services that we offer to our consumers. Elbit On January 23, 2015, Elbit Systems Land and C4I LTD and Elbit Systems of America Ltd. (together referred to as “Elbit”) filed a complaint against our subsidiary Hughes Network Systems, L.L.C. (“HNS”), as well as against Black Elk Energy Offshore Operations, LLC, Bluetide Communications, Inc. and Helm Hotels Group, in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent Nos. 6,240,073 (the “073 patent”) and 7,245,874 (“874 patent”). The 073 patent is entitled “Reverse Link for a Satellite Communication Network” and the 874 patent is entitled “Infrastructure for Telephony Network.” Elbit alleges that the 073 patent is infringed by broadband satellite systems that practice the Internet Protocol Over Satellite standard. Elbit alleges that the 874 patent is infringed by the manufacture and sale of broadband satellite systems that provide cellular backhaul service via connections to E1 or T1 interfaces at cellular backhaul base stations. On April 2, 2015, Elbit filed an amended complaint removing Helm Hotels Group as a defendant, but making similar allegations against a new defendant, Country Home Investments, Inc. On November 3 and 4, 2015, and January 22, 2016, the defendants filed petitions before the United States Patent and Trademark Office challenging the validity of the patents in suit, which the Patent and Trademark Office subsequently declined to institute. On April 13, 2016, the defendants answered Elbit’s complaint. At Elbit’s request, on June 26, 2017, the court dismissed Elbit’s claims of infringement against all parties other than HNS. Trial commenced on July 31, 2017. On August 7, 2017, the jury returned a verdict that the 073 patent was valid and infringed, and awarded Elbit approximately $21.1 million . As a result of interest, costs and unit sales through the 073 patent’s expiration in November 2017, we estimate the jury verdict could result in a judgment of approximately $27 million if not overturned or modified by post-trial motions or appeals. The jury also found that such infringement of the 073 patent was not willful and that the 874 patent was not infringed. HNS intends to vigorously pursue its post-trial rights, including appeals. We cannot predict with certainty the outcome of any post-trial motions or appeals. For the twelve months ended December 31, 2017, we have recorded an accrual of $2.5 million with respect to this liability. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accruals and such differences could be significant. Michael Heskiaoff, Marc Langenohl, and Rafael Mann On July 10, 2015, Messrs. Michael Heskiaoff and Marc Langenohl, purportedly on behalf of themselves and all others similarly situated, filed suit against our now former subsidiary Sling Media, Inc. in the United States District Court for the Southern District of New York. The complaint alleges that Sling Media Inc.’s display of advertising to its customers violates a number of state statutes dealing with consumer deception. On September 25, 2015, the plaintiffs filed an amended complaint, and Mr. Rafael Mann, purportedly on behalf of himself and all others similarly situated, filed an additional complaint alleging similar causes of action. On November 16, 2015, the cases were consolidated. On August 12, 2016, the Court dismissed the consolidated case due to plaintiffs’ failure to state a claim. On September 12, 2016, the plaintiffs moved the Court for leave to file an amended complaint, which the Court denied on March 22, 2017. On April 17, 2017, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit. On November 22, 2017, the United States Court of Appeals for the Second Circuit affirmed the ruling of the United States District Court for the Southern District of New York, and the matter is now concluded. Realtime Data LLC On May 8, 2015, Realtime Data LLC (“Realtime”) filed suit against EchoStar Corporation and our subsidiary HNS in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent Nos. 7,378,992 (the “992 patent”), entitled “Content Independent Data Compression Method and System”; 7,415,530 (the “530 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval”; and 8,643,513 (the “513 patent”), entitled “Data Compression System and Methods.” On September 14, 2015, Realtime amended its complaint, additionally alleging infringement of United States Patent No. 9,116,908 (the “908 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Over April 29, 2016 and May 5, 2016, the defendants filed petitions before the United States Patent and Trademark Office (“USPTO”) challenging the validity of the asserted patents. The USPTO instituted proceedings on each of those petitions. The USPTO invalidated the asserted claims of the 513 patent, but Realtime is still asserting this patent against us and may appeal this ruling. Realtime is no longer asserting the 992 patent against us and additionally, the USPTO invalidated the claims of the 992 patent that had been asserted against us. The USPTO is still reviewing the 530 patent; however, two of the four claims from that patent asserted against us were invalidated in a separate litigation between Realtime and a third party, which Realtime may appeal. The USPTO did not invalidate the asserted claims of the 908 patent, but a third party has challenged these claims in a separate proceeding before the USPTO. On February 14, 2017, Realtime filed a second suit against EchoStar Corporation and our subsidiary HNS in the same District Court, alleging infringement of four additional United States Patents, Nos. 7,358,867 (the “867 patent”), entitled “Content Independent Data Compression Method and System;” 8,502,707 (the “707 patent”), entitled “Data Compression Systems and Methods;” 8,717,204 (the “204 patent”), entitled “Methods for Encoding and Decoding Data;” and 9,054,728 (the “728 patent”), entitled “Data Compression System and Methods.” On June 6, 2017, Realtime filed an amended complaint, adding claims of infringement against EchoStar Technologies, L.L.C., a wholly-owned subsidiary of DISH, DISH, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C., and Arris Group, Inc., as well as additionally alleging infringement of United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth Sensitive Data Compression and Decompression.” The cases were consolidated and no trial date has been set. On July 20, 2017, the claims against the newly added parties, with the exception of EchoStar Technologies, L.L.C., were severed into a separate case. On September 1, 2017, EchoStar Technologies, L.L.C. was dismissed from the case. On October 10, 2017, Realtime informed us that it is not pursuing the 759 patent against us. In response to petitions filed by third parties, the USPTO has instituted proceedings regarding the validity of all but one asserted claim of the 867 patent, all but one asserted claim of the 728 patent, and all asserted claims of the 204 patent. Additional third party petitions challenging the validity of all claims asserted in the 204 and 728 patents are awaiting institution decisions. On February 13, 2018 we filed petitions before the USPTO challenging the validity of all claims asserted against us from the 707 and 204 patents, as well as the one asserted claim of the 728 patent for which the USPTO has not yet instituted a proceeding. These petitions are also awaiting institution decisions. Trial is scheduled for January 21, 2019. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Shareholder Derivative Litigation On December 5, 2012, Greg Jacobi, purporting to sue 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. On March 30, 2015, the Court dismissed the Jacobi Litigation, with leave for Jacobi to amend his complaint. On April 20, 2015, Jacobi filed an amended complaint. On March 17, 2016, the Court dismissed the amended complaint. On July 31, 2017, a motion from the Chester County Employee’s Retirement Fund seeking attorneys’ fees and expenses was denied. Jacobi appealed the amended complaint’s dismissal to the United States Court of Appeals for the Ninth Circuit. On October 9, 2017, Jacobi agreed to dismiss its appeal, with each party bearing its own costs. Accordingly, on October 10, 2017 the Court of Appeals granted a stipulated motion to voluntarily dismiss Jacobi’s appeal, and on October 17, 2017, the District Court entered the Court of Appeal’s mandate. The Chester County and Jacobi matters are 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. As part of our ongoing operations, the Company is subject to various inspections, audits, inquiries, investigations and similar actions by third parties, as well as by governmental/regulatory authorities responsible for enforcing the laws and regulations to which the Company may be subject. Further, under the federal False Claims Act, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the federal government. Some states have adopted similar state whistleblower and false claims provisions. In addition, the Company from time to time receives inquiries from federal, state and foreign agencies regarding compliance with various laws and regulations. In our opinion, the amount of ultimate liability with respect to any of these other actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. The Company indemnifies its directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for the Company. Additionally, in the normal course of its business, the Company enters into contracts pursuant to which the Company may make a variety of representations and warranties and indemnify the counterparty for certain losses. The Company’s possible exposure under these arrangements cannot be reasonably estimated as this involves the resolution of claims made, or future claims that may be made, against the Company or its officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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. Prior to March 2017, we operated in three primary business segments, Hughes, EchoStar Technologies and ESS. Following consummation of the Share Exchange described in Notes 1, 3 and 19 of these consolidated financial statements, we no longer operate the EchoStar Technologies business segment. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA. Effective in March 2017, we also changed our overhead allocation methodology to reflect how the CODM evaluates our segments. Historically, the costs of all corporate functions were included on an allocated basis in each of the business segments’ EBITDA. Under the revised allocation methodology, these costs are now reported and analyzed as part of “Corporate and Other” (previously “All Other and Eliminations”). Our prior period segment EBITDA disclosures have been restated to reflect this change. As of March 2017, our two primary business segments are Hughes and ESS, as described in Note 1 of these consolidated financial statements. Our operations also include various corporate departments (primarily Executive, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) as well as other activities that have not been assigned to our operating segments, including costs incurred in certain satellite development programs and other business development activities, our centralized treasury operations, and gains (losses) from certain of our investments. Costs and income associated with these departments and activities are accounted for in the “Corporate and Other” column in the table below or in the reconciliation of EBITDA below. Transactions between segments were not significant for the years ended December 31, 2017 , 2016 and 2015 . Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Satellite Services Corporate and Other Consolidated Total (In thousands) For The Year Ended December 31, 2017 External revenue $ 1,476,131 $ 390,831 $ 18,546 $ 1,885,508 Intersegment revenue $ 1,787 $ 1,413 $ (3,200 ) $ — Total revenue $ 1,477,918 $ 392,244 $ 15,346 $ 1,885,508 EBITDA $ 475,222 $ 315,285 $ 4,070 $ 794,577 Capital expenditures (1) $ 376,502 $ 20,725 $ 169,157 $ 566,384 For The Year Ended December 31, 2016 External revenue $ 1,389,152 $ 406,970 $ 14,344 $ 1,810,466 Intersegment revenue $ 3,209 $ 690 $ (3,899 ) $ — Total revenue $ 1,392,361 $ 407,660 $ 10,445 $ 1,810,466 EBITDA $ 477,165 $ 341,516 $ (67,676 ) $ 751,005 Capital expenditures (1) $ 322,362 $ 58,925 $ 247,223 $ 628,510 For The Year Ended December 31, 2015 External revenue $ 1,344,945 $ 489,842 $ 14,070 $ 1,848,857 Intersegment revenue $ 2,395 $ 749 $ (3,144 ) $ — Total revenue $ 1,347,340 $ 490,591 $ 10,926 $ 1,848,857 EBITDA $ 444,342 $ 414,727 $ (143,330 ) $ 715,739 Capital expenditures (1) $ 285,499 $ 101,215 $ 266,213 $ 652,927 (1) Capital expenditures are net of refunds and other receipts related to capital expenditures and exclude capital expenditures from discontinued operations of $12.5 million , $69.7 million and $50.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table reconciles total consolidated EBITDA to reported “ Income from continuing operations before income taxes ” in our consolidated statements of operations : For the Years Ended December 31, 2017 2016 2015 (In thousands) EBITDA $ 794,577 $ 751,005 $ 715,739 Interest income and expense, net (172,621 ) (102,237 ) (111,607 ) Depreciation and amortization (522,190 ) (432,904 ) (460,819 ) Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests 928 762 (3,986 ) Income from continuing operations before income taxes $ 100,694 $ 216,626 $ 139,327 Geographic Information and Transactions with Major Customers Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. North America revenue includes transactions with North America customers. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America, and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North America and other foreign locations. As of December 31, Long-lived assets: 2017 2016 (In thousands) North America: United States $ 4,193,432 $ 4,214,575 Canada and Mexico 28,360 16,630 All other 343,743 296,530 Total long-lived assets $ 4,565,535 $ 4,527,735 For the Years Ended December 31, Revenue: 2017 2016 2015 (In thousands) North America: United States $ 1,522,421 $ 1,480,339 $ 1,528,352 Canada and Mexico 89,928 86,236 67,648 All other 273,159 243,891 252,857 Total revenue $ 1,885,508 $ 1,810,466 $ 1,848,857 Transactions with Major Customers. For the years ended December 31, 2017 , 2016 and 2015 , our revenue included sales to one major customer. The following table summarizes sales to this customer and its percentage of total revenue. For the Years Ended December 31, 2017 2016 2015 (In thousands) Total revenue: DISH Network: Hughes segment $ 82,625 $ 107,300 $ 105,181 EchoStar Satellite Services segment 344,841 349,549 423,465 Corporate and Other 18,522 15,433 14,268 Total DISH Network 445,988 472,282 542,914 All other 1,439,520 1,338,184 1,305,943 Total revenue $ 1,885,508 $ 1,810,466 $ 1,848,857 Percentage of total revenue: DISH Network 23.7 % 26.1 % 29.4 % All other 76.3 % 73.9 % 70.6 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (2) (In thousands, except per share amounts) Year Ended December 31, 2017 Total revenue (1) $ 433,151 $ 465,076 $ 481,233 $ 506,048 Operating income (1) $ 51,651 $ 45,890 $ 56,414 $ 42,352 Net income $ 37,352 $ 7,122 $ 35,201 $ 313,814 Net income attributable to EchoStar common stock $ 38,924 $ 6,940 $ 34,669 $ 313,237 Basic earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.29 Diluted earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.23 Year Ended December 31, 2016 Total revenue (1) $ 431,974 $ 442,658 $ 460,046 $ 475,788 Operating income (1) $ 65,730 $ 75,431 $ 76,602 $ 78,400 Net income $ 48,443 $ 55,909 $ 37,410 $ 38,930 Net income attributable to EchoStar common stock $ 50,674 $ 56,133 $ 36,644 $ 38,222 Basic earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.41 Diluted earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.40 (1) As a result of the Share Exchange, the consolidated financial statements of the EchoStar Technologies businesses have been presented as discontinued operations and, as such, have been excluded from the quarterly financial data presented above for all periods presented. See Note 3 in the notes to consolidated financial statements for further discussion of our discontinued operations. (2) Net income and related per share amounts for the three months ended December 31, 2017 include a discrete income tax benefit of $303.5 million related to the enactment of federal tax legislation in December 2017, a gain of $22.8 million on our trading securities, and an impairment loss of $10.8 million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | Related Party Transactions DISH Network Following the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies. However, prior to the consummation of the Share Exchange on February 28, 2017, DISH Network owned the Tracking Stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In addition, a substantial majority of the voting power of the shares of each of EchoStar Corporation and DISH 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 both the Spin-off and the Share Exchange, we and DISH Network 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 indemnify 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 we or DISH Network pay for products and services provided under the agreements are based on cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. Equipment revenue — DISH Network Equipment revenue - DISH Network consists primarily of sales of broadband equipment under the Hughes Broadband Distribution Agreement described below under Services and other revenue — DISH Network. Services and other revenue — DISH Network Satellite Services Provided to DISH Network. Since the Spin-off, we have entered into certain satellite service 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 service arrangements. The terms of each service arrangement is set forth below: EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction described below, in March 2014, we began providing certain satellite services to DISH Network on the 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 service 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. In December 2016, DISH Network renewed the satellite services agreement relative to the EchoStar VII satellite for one year to June 2018. DISH Network has not renewed the agreement relative to the EchoStar VII satellite past such date. EchoStar IX. Effective January 2008, DISH Network began receiving satellite services from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue to receive satellite services from us on the EchoStar IX satellite on a month-to-month basis. EchoStar XII. DISH Network received satellite services from us on the EchoStar XII satellite. The term of the satellite services agreement expired at the end of September 2017. EchoStar XVI. In December 2009, we entered into an initial ten -year transponder service agreement with DISH Network, pursuant to which DISH Network has received satellite services from us on the EchoStar XVI satellite since January 2013. Effective December 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. In July 2016, we and DISH Network further amended the transponder service agreement to, among other things, extend the initial term by one additional year through January 2018 and to reduce the term of the first renewal option by one year . In May 2017, DISH Network renewed the satellite services agreement relative to the EchoStar XVI satellite for five -years to January 2023. DISH Network has the option to renew for an additional five -year period prior to expiration of the term. There can be no assurance that such option to renew this agreement will be exercised. In the event that DISH Network does not exercise its five -year renewal option, DISH Network has the option to purchase the EchoStar XVI satellite for a certain price. If DISH Network does not elect to purchase the EchoStar XVI satellite at that time, we may sell the EchoStar XVI satellite to a third party and DISH Network is required to pay us a certain amount in the event we are not able to sell the EchoStar XVI satellite for more than a certain amount. Nimiq 5 Agreement. In September 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”). In September 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 in October 2019. 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. In November 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 the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In February 2013, 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. In January 2013, the QuetzSat-1 satellite 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. In 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”). In 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. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, in 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. In 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) June 2023. 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 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we provide TT&C services to DISH Network for a period ending in December 2016 (the “TT&C Agreement”). In November 2016, we and DISH Network amended the TT&C Agreement to extend the term for one year through December 2017. In December 2017, we and DISH Network amended the TT&C Agreement to extend the term for one month through January 2018. In January and February 2018, we and DISH Network amended the TT&C Agreement to extend the term through February 2018. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. DISH Network is able to terminate the TT&C Agreement for any reason upon 60 days ’ notice. In connection with the Satellite and Tracking Stock Transaction, in February 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 2014, we provide TT&C services for the D-1 and EchoStar XV satellites; however, for the period that we received satellite services on the EchoStar XV satellite from DISH Network, we waived the fees for the TT&C services on the EchoStar XV satellite. Effective August 2016, we provide TT&C services to DISH Network for the EchoStar XVIII satellite. Real Estate Leases to DISH Network. 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: 100 Inverness Lease Agreement . In connection with the Share Exchange, effective March 2017, DISH Network leases from us certain space at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days ’ prior notice. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, either party has the right to terminate this agreement upon 30 days ’ notice. 90 Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East, Englewood, Colorado was for a period ending in December 2016. In February 2016, DISH Network terminated this lease effective in August 2016. Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd., Englewood, Colorado was for a period ending in December 2016. Effective December 2016, we and DISH Network amended this lease to, among other things, extend the term for one year through December 2017. In December 2017, we and DISH Network further amended this lease to, among other things, extend the term for one year through December 2018. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, either party has the right to terminate this agreement upon 30 days ’ notice. Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr., Littleton, Colorado was for a period ending in December 2016. Effective December 2016, we and DISH Network amended this lease to, among other things, extend the term for one year through December 2017. In December 2017, we and DISH Network further amended this lease to, among other things, extend the term for one year through December 2018. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, either party has the right to terminate this agreement upon 30 days ’ notice. Atlanta Sublease Agreement. The sublease for certain space at 211 Perimeter Center, Atlanta, Georgia terminated in October 2016. Cheyenne Lease Agreement. Prior to the Share Exchange, we leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, we transferred ownership of a portion of this property to DISH Network and we and DISH Network amended this agreement to (i) terminate the lease for the transferred space and (ii) provide for a continued lease to DISH Network of the portion of the property we retained for a period ending in December 2031. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, either party has the right to terminate this agreement upon 30 days ’ notice. TerreStar Agreement. In March 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar Networks Inc. (“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, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. In December 2017, we and DISH Network amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DISH Network generally has the right to continue to receive warranty services from us for our products on a month-to-month basis unless terminated by DISH Network upon at least 21 days ’ written notice to us. DISH Network generally has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis unless operations and maintenance services are terminated by DISH Network upon at least 90 days ’ written notice to us. The provision of hosting services will continue until May 2022 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. In addition, DISH Network generally may terminate any and all services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement. Effective October 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 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 had an initial term of five years 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. In February 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 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. DBSD North America Agreement. In March 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 various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. In December 2017, we and DBSD amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DBSD North America generally has the right to continue to receive warranty services from us on a month-to-month basis until February 2019 unless terminated by DBSD upon at least 21 days’ written notice to us and the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis unless terminated by DBSD North America upon at least 120 days ’ written notice to us. The provision of hosting services will continue until February 2022 and will automatically renew for an additional five -year period until February 2027 unless terminated by DBSD North America upon at least 180 days ’ written notice to us. In addition, DBSD North America generally may terminate any and all such services for convenience, subject to providing us with prior notice and/or payment of termination charges. RUS Implementation Agreement. In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH’s indirect, 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 provided certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. While the RUS Agreement expired in June 2013 when the Grant Funds were exhausted, HNS is required to continue providing services to DISH Broadband’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. General and administrative expenses — DISH Network Amended and Restated 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 in January 2010 and were replaced by a Professional Services Agreement. In January 2010, 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. Mr. Vivek Khemka, who remained employed as DISH Network’s Executive Vice President and Chief Technology Officer, provided services to us during portions of 2016 and through February 2017 pursuant to the Professional Services Agreement as President -- EchoStar Technologies L.L.C. Additionally, we and DISH Network agreed that DISH Network would 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. In connection with the consummation of the Share Exchange, we and DISH amended and restated the Professional Services Agreement to provide that we and DISH Network shall have the right to receive additional services that either we or DISH Network may require as a result of the Share Exchange. The term of the Amended and Restated Professional Services Agreement is through January 2019 and renews automatically for successive one -year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days ’ notice. However, either party may generally terminate the Amended and Restated Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice. Real Estate Leases from DISH Network. 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 is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the leases, and for certain properties, we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. Cheyenne Lease Agreement . In connection with the Share Exchange, effective March 2017 we lease from DISH Network certain space at 530 EchoStar Drive in Cheyenne, Wyoming for a period ending in February 2019. EchoStar has the option to renew this lease for thirteen one -year periods. Gilbert Lease Agreement . In connection with the Share Exchange, effective March 2017 we lease from DISH Network certain space at 801 N. DISH Dr. in Gilbert, Arizona for a period ending in February 2019. EchoStar has the option to renew this lease for thirteen one -year periods. American Fork Occupancy License Agreement . In connection with the Share Exchange, effective March 2017, we sublease from DISH Network certain space at 796 East Utah Valley Drive in American Fork, Utah for a period ending in August 2017. We have exercised our option to renew this sublease for a five -year period ending in August 2022. Employee Matters Agreement . Effective March 2017 in connection with the Share Exchange, we and DISH Network entered into an Employee Matters Agreement that addresses the transfer of employees from EchoStar to DISH Network, including certain benefit and compensation matters and the allocation of responsibility for employee related liabilities relating to current and past employees of the transferred businesses. DISH Network assumed employee-related liabilities relating to the transferred businesses as part of the Share Exchange, except that we are responsible for certain existing employee related litigation as well as certain pre-Share Exchange compensation and benefits for employees transferring to DISH Network in connection with the Share Exchange. Collocation and Antenna Space Agreements . We and DISH Network have entered into an agreement pursuant to which DISH Network provides us with collocation space in El Paso, Texas. This agreement was for an initial period ending in August 2015, and provides us with renewal options for four consecutive years. Effective August 2015, we exercised our first renewal option for a period ending in August 2018. In connection with the Share Exchange, effective March 2017, we also entered into certain agreements pursuant to which DISH Network will provide collocation and antenna space to EchoStar through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Spokane, Washington; and Englewood, Colorado. In August 2017, we and DISH Network also entered into certain other agreements pursuant to which DISH Network will provide additional collocation and antenna space to EchoStar in Monee, Illinois and Spokane, Washington through August 2022. EchoStar may renew each of these agreements for four three -year periods by providing DISH Network with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. EchoStar may terminate certain of these agreements with 180 days ’ prior written notice. The fees for the services provided under these agreements depend on the number of racks leased at the location. Other agreements — DISH Network Satellite and Tracking Stock Transaction. In February 2014, we entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) in March 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 assumption of related in-orbit incentive obligations) and approximately $11.4 million in cash; and (ii) in March 2014, DISH Network began receiving certain satellite services as discussed above on these five satellites from us (collectively, the “Satellite and Tracking Stock Transaction.”) The Tracking Stock was retired in March 2017 and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. See Note 3 for further information. Share Exchange Agreement . On January 31, 2017, EchoStar Corporation and certain of its subsidiaries entered into the Share Exchange Agreement with DISH and certain of its subsidiaries pursuant to which, on February 28, 2017, EchoStar Corporation and its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of our EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange on February 28, 2017, EchoStar no longer operates the transferred EchoStar Technologies businesses and the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Pursuant to the Share Exchange Agreement, EchoStar transferred certain assets, investments in joint ventures, spectrum licenses and real estate properties and DISH Network assumed certain liabilities relating to the transferred assets and businesses. The Share Exchange Agreement contains customary representations and warranties by the parties, including representations by EchoStar related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. EchoStar and DISH Network have also agreed to customary indemnification provisions whereby each party indemnifies the other against certain losses with respect to breaches of representations, warranties or covenants and certain liabilities and if certain actions undertaken by it causes the transaction to be taxable to the other party after closing. See Note 3 for further information. Hughes Broadband Master Services Agreement . In March 2017, HNS and DISH Network L.L.C. (“DNLLC”), a wholly-owned subsidiary of DISH, entered into a master service agreement (the “MSA”) pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for the Hughes service and related equipment and other telecommunication services and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the MSA, HNS and DNLLC will make certain payments to each other relating to sales, upgrades, purchases and installation services. The MSA has an initial term of five years until March 2022 with automatic renewal for successive one -year terms. After the first anniversary, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 days ’ notice to the other party. Upon expiration or termination of the MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA. We incurred SAC and other costs under the MSA totaling $29.3 million for the year ended December 31, 2017. Intellectual Property and Technology License Agreement . Effective March 2017 in connection with the Share Exchange, we and DISH Network entered into an Intellectual Property and Technology License Agreement (“IPTLA”) pursuant to which we and DISH and our and their respective subsidiaries license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, we granted to DISH Network a license to our intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the businesses acquired pursuant to the Share Exchange, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to us, among other things, for the continued use of all intellectual property and technology that is used in our retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange. Tax Matters Agreement . Effective March 2017, in connection with the Share Exchange, we and DISH entered into a tax matters agreement. This agreement governs certain of our rights, responsibilities and obligations with respect to taxes of the transferred businesses pursuant to the Share Exchange. Generally, we are responsible for all tax returns and tax liabilities for the transferred businesses and assets for periods prior to the Share Exchange and DISH Network is responsible for all tax returns and tax liabilities for the transferred businesses and assets from and after the Share Exchange. Both we and DISH Network have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both we and D |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ECHOSTAR CORPORATION SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Our valuation and qualifying accounts as of December 31, 2017 , 2016 and 2015 were as follows: Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2017 $ 12,955 $ 9,551 $ (10,479 ) $ 12,027 December 31, 2016 $ 11,687 $ 14,393 $ (13,125 ) $ 12,955 December 31, 2015 $ 12,294 $ 6,731 $ (7,338 ) $ 11,687 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. 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. As of December 31, 2016 , noncontrolling interests consist primarily of HSS Tracking Stock owned by DISH Network, as described in Note 4 below. As a result of the Share Exchange, the noncontrolling interest in the HSS Tracking Stock was extinguished as of February 28, 2017. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“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 our consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, 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 stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. 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 consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. |
Foreign Currency | Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are reported in other comprehensive income (loss) as “Foreign currency translation adjustments” in our consolidated statements of operations . Except in certain uncommon circumstances, we have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from re-measurement of monetary assets and liabilities denominated in foreign currencies into the functional currency are recognized in “ Other, net ” in our consolidated statements of operations |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents as of December 31, 2017 and 2016 primarily consisted of commercial paper, government bonds, corporate notes, and money market funds. The amortized cost of these investments approximates their fair value. |
Marketable Investment Securities | Marketable Investment Securities We classify our marketable investment securities as available for sale, except in instances where we have designated certain securities as trading securities. We report all marketable investment securities at fair value in our consolidated balance sheets. We recognize periodic changes in the fair value of trading securities and realized gains and losses on sale of available-for-sale securities in “Gains (losses) on marketable investment securities,” a component of net income, in our consolidated statements of operations. For available-for-sale securities, we recognize periodic changes in the difference between fair value and amortized cost in other comprehensive income (loss). Realized gains and losses upon sale of available-for-sale securities are reclassified from other comprehensive income (loss) and recognized in net income on the trade date. We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of marketable investment securities. Interest and dividend income from marketable investment securities is reported in “ Interest income ” and “ Other, net ,” respectively, in our consolidated statements of operations . Dividend income is recognized on the ex-dividend date. We evaluate our available-for-sale securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other than temporary. Our evaluation consists of reviewing, among other things: • the fair value of each security compared to its amortized cost; • the length of time and the extent to which the fair value of a security has been lower than amortized cost; • the historical volatility of the price of each security; • any market and company-specific factors related to each security; and • our intent and ability to hold the investment to recovery. Where the fair value of a debt security has declined below its amortized cost, we consider the decline to be other than temporary if any of the following factors apply: • we intend to sell the security, • it is more likely than not that we will be required to sell the security before maturity or recovery, or • we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. Declines in the fair value of available-for-sale securities that are determined to be other than temporary are reclassified from other comprehensive income (loss) and recognized in net income, thus establishing a new cost basis for the investment. |
Investments in Unconsolidated Entities - Cost and Equity Method | Investments in Unconsolidated Entities — Cost and Equity Method We use the equity method to account for equity investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. Generally, our equity investments accounted for using either the equity method or cost method are not publicly traded and it is not practicable to regularly estimate the fair value of such investments. We evaluate these equity investments on a quarterly basis to determine whether an event or changes in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. As part of our evaluation, we review available information such as business plans and current financial statements of these companies for factors that may indicate an impairment of our investments. Such factors may include, but are not limited to, unprofitable operations, negative cash flow, material litigation, violations of debt covenants, bankruptcy and changes in business strategy. When we determine that an investment is impaired, and the impairment is other than temporary, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in net income. Generally, equity method investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “ Equity in earnings (losses) of unconsolidated affiliates, net ” in our consolidated statements of operations . The carrying amount of our investments may include a component of goodwill if the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the investee. Dividends received from equity method investees reduce the carrying amount of the investment. We defer, to the extent of our ownership interest in the investee, recognition of intra-entity profits on sales of equipment to the investee until the investee has charged the cost of the equipment to expense in a subsequent sale to a third party or through depreciation. In these circumstances, we report the gross amounts of revenue and cost of sales in the statement of operations and include the intra-entity profit eliminations within “ Equity in earnings (losses) of unconsolidated affiliates, net |
Accounts Receivable | Accounts Receivable We make ongoing estimates relating to the collectibility of our accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. |
Inventory | Inventory Inventory is stated at the lower of cost, determined using the FIFO method, or net realizable value. Cost of inventory consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders, and alternative means of disposition of excess or obsolete items. We recognize losses within operating income when we determine that the cost of inventory and commitments to purchase inventory exceed net realizable value. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. The cost of our satellites includes construction costs, including the present value of in-orbit incentives payable to the satellite manufacturer, launch costs, capitalized interest, and related insurance premiums. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Costs of renewals and betterments are capitalized. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets We review our long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets held and used in operations, the asset is not recoverable if the carrying amount of the asset exceeds its undiscounted estimated future net cash flows. When an asset is not recoverable, we adjust the carrying amount of such asset to its estimated fair value and recognize the impairment loss in net income. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell. |
Goodwill | Goodwill Goodwill represents the excess of the cost of acquired businesses over the estimated fair value assigned to the identifiable assets acquired and liabilities assumed. We do not amortize goodwill, but test goodwill for impairment annually, or more frequently if circumstances indicate impairment may exist. Our goodwill as of December 31, 2017 and 2016 is assigned to reporting units of our Hughes segment. We test such goodwill for impairment in the second fiscal quarter. The goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of reporting units using discounted cash flow techniques, which includes significant assumptions about prospective financial information, terminal value and discount rates (Level 3 inputs). If the reporting unit’s carrying amount exceeds its estimated fair value, we recognize an impairment loss equal to such excess, not to exceed the carrying amount of goodwill. We may bypass the quantitative goodwill impairment test if we determine, based on a qualitative assessment, that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount including goodwill. |
Regulatory Authorizations and Other Intangible Assets | Regulatory Authorizations and Other Intangible Assets At acquisition and periodically thereafter, we evaluate our intangible assets to determine whether their useful lives are finite or indefinite. We consider our intangible assets to have indefinite lives when no significant legal, regulatory, contractual, competitive, economic, or other factors limit their useful lives. Intangible assets that have finite lives are amortized over their estimated useful lives, ranging from approximately one to 30 years. When we expect to incur significant costs to renew or extend finite-lived intangible assets, we amortize the total initial and estimated renewal costs over the combined initial and expected renewal terms. In such instances, actual renewal costs are capitalized when they are incurred. We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, as discussed above under “Impairment of Long-lived Assets.” We do not amortize our indefinite-lived intangible assets, but test those assets for impairment annually or more frequently if circumstances indicate that it is more likely than not that the asset may be impaired. Costs incurred to maintain or renew indefinite-lived intangible assets are expensed as incurred. Our indefinite-lived intangible assets include Federal Communications Commission (“FCC”) authorizations and certain other contractual or regulatory rights to use spectrum at specified orbital locations (collectively “Regulatory Authorizations”). We have determined that our FCC authorizations generally have indefinite useful lives due to the following: • FCC authorizations are non-depleting assets; • renewal satellite applications generally are authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative, and legal environment; • expenditures required to maintain the authorization are not significant; and • we intend to use these authorizations indefinitely. |
Income Taxes | Income Taxes We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods . Deferred tax assets and liabilities are recorded based on enacted tax laws for the estimated future tax effects of differences that exist between the financial reporting carrying amount and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a noncurrent asset or liability in our consolidated balance sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. |
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 characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. 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 each of the years ended December 31, 2017 or 2016 . As of December 31, 2017 and 2016 , the carrying amounts 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 marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such 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 HSS’ 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”), 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes”) and 6.625% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”) (see Note 11) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other 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. As of December 31, 2017 and 2016 , the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $112.2 million and $74.1 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. |
Revenue Recognition | Revenue Recognition Revenue from the sale of equipment and services generally is recognized when persuasive evidence of an arrangement exists, prices are fixed or determinable, collectibility is reasonably assured, and the goods have been delivered or services have been rendered. If any of these criteria are not met, revenue recognition is deferred until such time as all of the criteria are met. Revenue from equipment sales generally is recognized upon shipment to customers. Revenue from recurring services generally is recognized ratably over the service term. Upfront fees collected in connection with services to consumer subscribers in our Hughes segment are deferred and recognized as revenue over the estimated subscriber life. We may offer rebates to qualifying new consumer subscribers in our Hughes segment. We reduce related revenue at inception of the subscriber contract based on an estimate of the number of rebates that will be redeemed. Our estimates are based on historical experience and actual sales during the promotion. Services and other revenue includes revenue from leases of satellite capacity and equipment. We typically determine based on applicable criteria that our leasing arrangements are operating leases and recognize related revenue on a straight-line basis over the lease term. In situations where customer offerings represent an arrangement for both services and equipment, revenue elements with standalone value to the customer are separated for revenue recognition purposes based on their selling prices if sold separately. We determine selling prices under a hierarchy that considers vendor-specific objective evidence (“VSOE”), third-party evidence and estimated selling prices. Typically, we derive VSOE from service renewal rates and optional equipment prices specified in customer contracts or we estimate prices based on the gross margin that we ordinarily realize in transactions with similarly situated customers. In addition to equipment and service offerings, our Hughes segment also enters into contracts to design, develop, and deliver complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Those contracts require significant effort to develop and construct the network over an extended time period. Revenue from such contracts is recognized using the percentage-of-completion method. Depending on the nature of the arrangement, we measure progress toward contract completion using the cost-to-cost method or the units-of-delivery method. Under the cost-to-cost method, revenue reflects the ratio of costs incurred to estimated total costs at completion multiplied by the total estimated contract revenue. Under the units-of-delivery method, revenue and related costs are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We report revenue net of sales taxes imposed on our goods and services in our consolidated statements of operations . Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. |
Debt Issuance Costs | Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method with amortization included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations . We report unamortized debt issuance costs as a reduction of the related long-term debt in our consolidated balance sheets. |
Cost of Sales - Services and Equipment | Cost of Sales - Services and Equipment Cost of sales - services primarily consists of costs of satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity, and direct labor costs associated with the services provided. Costs of sales - services generally are charged to expense as incurred. Cost of sales - equipment primarily consists of inventory costs, including freight and royalties. Cost of sales - equipment generally is recognized as products are delivered to customers and related revenue is recognized. |
Research and Development | Research and Development Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. |
Subscriber Acquisition Costs | Subscriber Acquisition Costs Subscriber Acquisition Costs (“SAC”) consists of costs paid to third-party dealers and customer service representative commissions on new service activations and hardware upgrades and, in certain cases, the cost of hardware and installation services provided to non-wholesale consumer customers at the inception of service or hardware upgrade. SAC is deferred when a customer enters into a service agreement and is subsequently amortized over the service agreement term in proportion to when the related service revenue is recognized. We monitor the recoverability of deferred SAC and are entitled to an early termination fee if the subscriber cancels service prior to the end of the service agreement term. The recoverability of deferred SAC is reasonably assured through the monthly service fee charged to customers, our ability to recover the equipment, and/or our ability to charge an early termination fee. Deferred SAC is included in “Other noncurrent assets, net” in our consolidated balance sheets. |
Capitalized Software Costs | Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “ Other noncurrent assets, net ” in our consolidated balance sheets . Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of December 31, 2017 and 2016 , the net carrying amount of externally marketed software was $88.1 million and $76.3 million , respectively, of which $19.6 million and $50.1 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $31.3 million , $23.3 million and $22.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. We recorded amortization expense relating to the development of externally marketed software of $19.5 million , $9.7 million and $8.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The weighted average useful life of our externally marketed software was approximately four years as of December 31, 2017 |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation expense is recognized based on the fair value of stock awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense for awards with service conditions only is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for awards subject to performance conditions is recognized only when satisfaction of the performance condition is probable. We adopted ASU 2016-09 prospectively as of January 1, 2017. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. Upon adoption of this standard as of January 1, 2017, we recorded a $14.5 million deferred tax asset and a corresponding credit to accumulated earnings for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. We did not change our accounting policy to estimate forfeitures in determining compensation cost. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in “ Selling, general and administrative expenses ” in our consolidated statements of operations |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and has modified the standard thereafter. It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, 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.” Public entities are required to adopt the new revenue standard in fiscal years beginning after December 15, 2017 and in interim periods within those fiscal years. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. We adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method for contracts that were not substantially completed as of January 1, 2018. We expect the adoption of the new standard to impact certain up-front fees charged to our customers in our consumer markets, however we do not expect this change to have a material impact on the timing or amount of revenue recognition. We expect to record an adjustment as of January 1, 2018 to increase accumulated earnings by approximately $8.0 million, net of related income taxes as a result of this change. Our consolidated financial statements for the year ended December 31, 2018 and interim periods therein will include disclosures about the effect of the new standard. The prior period results will not be recast to reflect the new standard. We expect that the adoption of the new standard will impact our operating results primarily due to how we account for commission costs. Historically, we have charged sales commissions to expense as incurred, except for commissions related to the consumer business in our Hughes segment, which are accounted for as SAC as described above. The requirement to defer incremental contract acquisition costs and recognize them over the contract period or expected customer life will result in the recognition of an additional deferred charge on our consolidated balance sheets and corresponding impact to the consolidated statements of operations in future periods. In addition, we historically amortized our sales acquisition costs related to our consumer business in our Hughes segment over the contract term. Under the new guidance, the amortization period for these contract acquisition costs will be over the estimated customer life, which is a longer period of time. We are finalizing our analysis of the effects of ASU 2014-09 on our consolidated financial statements. Subject to completion of our analysis, we expect to record an adjustment as of January 1, 2018 to increase accumulated earnings, and record previously expensed amounts on our balance sheet by approximately $15.0 million to $18.0 million, net of related income taxes, primarily to reflect the impact of longer amortization periods for contract acquisition costs. We expect ASU 2014-09 will have a similar revenue and contract acquisition costs impact on our unconsolidated subsidiaries accounted for as equity method investments, however we are not able to provide an estimate of that impact at this time. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through net income. The update permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for certain requirements. We adopted all applicable requirements of this update as of January 1, 2018. Upon adoption, we recorded a $10.5 million charge to accumulated earnings to include net unrealized losses on our marketable equity securities then designated as available for sale, which previously were recorded in accumulated other comprehensive loss. For our equity investments without a readily determinable fair value that we now account for using the cost method, we have elected to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in available-for-sale and cost method equity securities. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or financing leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies the accounting for share-based payment awards. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The update specifies requirements for retrospective, modified retrospective or prospective application for the various amendments contained in the update. Upon adoption of this standard as of January 1, 2017, we recorded a $14.5 million deferred tax asset and a corresponding credit to accumulated earnings for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. We did not change our accounting policy to estimate forfeitures in determining compensation cost. We prospectively adopted amendments requiring presentation of excess tax benefits in operating activities in the statement of cash flows and dealing with the treatment of excess tax benefits in the calculation of diluted earnings per share. The inclusion of excess tax benefits in our income tax provision for the year ended December 31, 2017 resulted in increases in net income from continuing operations of $2.1 million and in net income of $5.3 million . In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments rather than incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We early adopted ASU 2016-16 as of January 1, 2017. Our adoption of this update did not have a material impact on our consolidated financial statements and related disclosures. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This standard requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and the standard must be applied retrospectively to all periods presented. We have adopted ASU 2016-18 as of January 1, 2018. Following our adoption of this standard, the beginning and ending balances of cash and cash equivalents presented in our consolidated statements of cash flows will include amounts for restricted cash and cash equivalents, which historically were not included in such balances, and receipts and payments of restricted cash and cash equivalents, exclusive of transfers to and from unrestricted accounts, will be reported in our consolidated statements of cash flows. The adoption of this new accounting standard is not expected to have a material impact on our consolidated financial statements and related disclosures. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying amount, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and is to be applied on a prospective basis. We early adopted ASU 2017-04 as of January 1, 2017. Our adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures, but it may impact the recognition and measurement of a goodwill impairment loss in future periods if we determine that the carrying amount of any reporting units including goodwill exceeds fair value of the reporting unit. In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This update shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date, effectively reducing interest income on such securities prior to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations: As of December 31, 2017 2016 (In thousands) Assets: Cash and cash equivalents $ — $ 778 Trade accounts receivable, net 4 27,261 Trade accounts receivable - DISH Network 93 259,198 Inventory — 9,824 Prepaids and deposits — 14,463 Current assets of discontinued operations 97 311,524 Property and equipment, net — 271,108 Goodwill — 6,457 Other intangible assets, net — 7,720 Investments in unconsolidated entities — 26,203 Other noncurrent assets, net — 5,436 Noncurrent assets of discontinued operations — 316,924 Total assets of discontinued operations $ 97 $ 628,448 Liabilities: Trade accounts payable $ 278 $ 19,518 Trade accounts payable - DISH Network — 3,960 Current portion of capital lease obligations — 4,323 Deferred revenue and prepayments — 2,967 Accrued compensation — 4,652 Accrued royalties — 23,199 Accrued expenses and other 264 12,810 Current liabilities of discontinued operations 542 71,429 Capital lease obligations — 416 Deferred tax liabilities, net — 7,353 Other noncurrent liabilities — 2,932 Noncurrent liabilities of discontinued operations — 10,701 Total liabilities of discontinued operations $ 542 $ 82,130 For the Years Ended December 31, 2017 2016 2015 (In thousands) Revenue: Equipment, services and other revenue - DISH Network $ 143,118 $ 1,127,610 $ 1,138,571 Equipment, services and other revenue - other 10,344 118,654 156,286 Total revenue 153,462 1,246,264 1,294,857 Costs and Expenses: Cost of equipment, services and other 121,967 1,010,421 1,034,960 Selling, general and administrative expenses 5,439 60,590 55,980 Research and development expenses 4,635 44,854 51,910 Depreciation and amortization 11,659 62,164 67,339 Impairment of long-lived assets — — 2,400 Total costs and expenses 143,700 1,178,029 1,212,589 Operating income 9,762 68,235 82,268 Other Income (Expense): Interest expense (15 ) (144 ) (30 ) Equity in earnings (losses) of unconsolidated affiliates, net (1,159 ) 2,508 4,372 Other, net (57 ) (381 ) (4,365 ) Total income (expense), net (1,231 ) 1,983 (23 ) Income from discontinued operations before income taxes 8,531 70,218 82,245 Income tax provision (22 ) (25,898 ) (20,966 ) Net income from discontinued operations $ 8,509 $ 44,320 $ 61,279 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Tabular disclosure of the effect of income (loss) on the entity's basic and diluted earnings per share | 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 Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Amounts attributable to EchoStar common stock: Net income from continuing operations $ 385,261 $ 137,353 $ 102,421 Net income from discontinued operations 8,509 44,320 61,279 Net income attributable to EchoStar common stock $ 393,770 $ 181,673 $ 163,700 Weighted-average common shares outstanding : Class A and B common stock: Basic 95,425 93,795 92,397 Dilutive impact of stock awards outstanding 1,316 615 1,069 Diluted 96,741 94,410 93,466 Earnings per share: Class A and B common stock: Basic: Continuing operations $ 4.04 $ 1.46 $ 1.11 Discontinued operations 0.09 0.48 0.66 Total basic earnings per share $ 4.13 $ 1.94 $ 1.77 Diluted: Continuing operations $ 3.98 $ 1.45 $ 1.10 Discontinued operations 0.09 0.47 0.65 Total diluted earnings per share $ 4.07 $ 1.92 $ 1.75 |
Other Comprehensive Income (L32
Other Comprehensive Income (Loss) and Related Tax Effects (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Consolidated Statements of Operations For the Years Ended December 31, 2017 2016 2015 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains (losses) on investments, net $ (2,758 ) $ (5,590 ) $ (35 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities 3,298 — 11,226 Recognition of foreign currency translation losses in net income (3) Other, net — — 1,889 Total reclassifications, net of tax and noncontrolling interests $ 540 $ (5,590 ) $ 13,080 (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains (losses) on investments, net” in our consolidated statements of operations. (2) We recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. (3) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Schedule of marketable investment securities and restricted cash equivalents | Our marketable investment securities and restricted cash equivalents consisted of the following: As of December 31, 2017 2016 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 542,573 $ 402,670 Strategic equity securities 133,736 94,816 Other 137,852 25,030 Total marketable investment securities—current 814,161 522,516 Restricted marketable investment securities (1) 10,019 12,203 Total $ 824,180 $ 534,719 (1) |
Schedule of unrealized gains (losses) on available-for-sale securities | The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2017 Debt securities: Corporate bonds $ 542,861 $ — $ (288 ) $ 542,573 Other (including restricted) 142,082 — (46 ) 142,036 Equity securities - strategic 97,519 7,937 (18,404 ) 87,052 Total available-for-sale securities $ 782,462 $ 7,937 $ (18,738 ) $ 771,661 As of December 31, 2016 Debt securities: Corporate bonds $ 402,472 $ 285 $ (87 ) $ 402,670 Other (including restricted) 32,488 3 (23 ) 32,468 Equity securities - strategic 77,149 13,120 (2,652 ) 87,617 Total available-for-sale securities $ 512,109 $ 13,408 $ (2,762 ) $ 522,755 |
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value | The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. Substantially all of the unrealized losses as of December 31, 2017 relate to three securities in our strategic equity securities portfolio, each of which has been in a continuous loss position for less than three months. 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. We believe that changes in the estimated fair values of these securities are primarily related to temporary market conditions . As of December 31, 2017 2016 Fair Unrealized Fair Unrealized (In thousands) Less than 12 months $ 733,635 $ (18,715 ) $ 154,826 $ (2,760 ) 12 months or more 6,715 (23 ) 1,571 (2 ) Total $ 740,350 $ (18,738 ) $ 156,397 $ (2,762 ) |
Schedule of 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 December 31, 2017 and 2016 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2017 2016 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents (including restricted) $ 2,354,998 $ 301 $ 2,354,697 $ 2,490,168 $ 62,332 $ 2,427,836 Debt securities: Corporate bonds $ 542,573 $ — $ 542,573 $ 402,670 $ — $ 402,670 Other (including restricted) 147,871 13,311 134,560 37,233 13,517 23,716 Equity securities - strategic 133,736 133,736 — 94,816 94,816 — Total marketable investment securities $ 824,180 $ 147,047 $ 677,133 $ 534,719 $ 108,333 $ 426,386 |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | Our investments in unconsolidated entities consisted of the following: As of December 31, 2017 2016 (In thousands) Investments in unconsolidated entities—noncurrent: Cost method $ 69,725 $ 80,052 Equity method 91,702 90,964 Total investments in unconsolidated entities—noncurrent $ 161,427 $ 171,016 |
Equity Method Investments [Table Text Block] | A summary of financial information for Dish Mexico and our equity method investees in the aggregate is as follows: As of December 31, 2017 2016 Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Balance sheet data: Current assets $ 146,851 172,234 $ 139,349 183,732 Noncurrent assets 185,345 187,067 178,369 181,638 Total assets $ 332,196 359,301 $ 317,718 365,370 Current liabilities $ 129,087 130,443 $ 129,563 128,982 Noncurrent liabilities 109,428 110,472 111,501 111,501 Total liabilities $ 238,515 240,915 $ 241,064 240,483 As of December 31, 2017 2016 2015 Dish Mexico Aggregate Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Income statement data: Revenue $ 497,096 $ 535,153 $ 498,069 $ 541,066 $ 471,712 $ 513,378 Operating income $ 15,094 $ 31,919 $ 32,280 $ 52,656 $ 638 $ 20,878 Income before income taxes $ 18,267 $ 32,739 $ 10,195 $ 29,083 $ (26,201 ) $ (9,197 ) Net income $ 15,658 $ 30,130 $ 6,374 $ 25,262 $ (8,512 ) $ 8,492 Net income attributable to EchoStar $ 9,946 $ 16,973 $ 1,358 $ 10,802 $ (10,979 ) $ (2,477 ) |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of trade accounts receivable | Our trade accounts receivable consisted of the following: As of December 31, 2017 2016 (In thousands) Trade accounts receivable $ 197,294 $ 159,313 Contracts in process, net 11,573 36,170 Total trade accounts receivable 208,867 195,483 Allowance for doubtful accounts (12,027 ) (12,956 ) Trade accounts receivable - DISH Network 43,295 19,417 Total trade accounts receivable, net $ 240,135 $ 201,944 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, Net [Abstract] | |
Schedule of inventory | Our inventory consisted of the following: As of December 31, 2017 2016 (In thousands) Finished goods $ 70,669 $ 49,755 Raw materials 5,484 6,678 Work in process 7,442 6,187 Total inventory $ 83,595 $ 62,620 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: Depreciable Life (In Years) As of December 31, 2017 2016 (In thousands) Land — $ 33,713 $ 35,815 Buildings and improvements 1-40 185,148 175,593 Furniture, fixtures, equipment and other 1-12 736,533 514,056 Customer rental equipment 2-4 929,775 689,579 Satellites - owned 2-15 3,064,391 2,381,120 Satellites acquired under capital leases 10-15 916,820 781,761 Construction in progress — 260,220 1,418,763 Total property and equipment 6,126,600 5,996,687 Accumulated depreciation (2,661,129 ) (2,598,492 ) Property and equipment, net $ 3,465,471 $ 3,398,195 Depreciation expense associated with our property and equipment consisted of the following: For the Years Ended December 31, 2017 2016 2015 (In thousands) Satellites $ 239,072 $ 191,729 $ 197,469 Furniture, fixtures, equipment and other 82,668 65,350 77,946 Customer rental equipment 146,562 114,568 105,725 Buildings and improvements 7,004 6,922 7,845 Total depreciation expense $ 475,306 $ 378,569 $ 388,985 |
Schedule of construction in progress | Construction in progress consisted of the following: As of December 31, 2017 2016 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 211,765 $ 1,235,577 Satellite related equipment 28,358 152,737 Other 20,097 30,449 Construction in progress $ 260,220 $ 1,418,763 Construction in progress included the following owned and leased satellites under construction as of December 31, 2017 . Satellites Segment Expected Launch Date Telesat T19V (“63 West”) (1) Hughes Second quarter of 2018 EchoStar XXIV Corporate and Other 2021 (1) We entered into an agreement for certain capacity on this satellite once launched, but are not party to the construction contract. |
Schedule of satellites | Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2017 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 EchoStar I (2)(3)(4)(7) ESS December 1995 77 W — EchoStar VI (4)(7) ESS July 2000 96.2 W 12 EchoStar VII (2)(3)(4) ESS February 2002 119 W 3 EchoStar IX (2)(4) ESS August 2003 121 W 12 EchoStar X (2)(3) ESS February 2006 110 W 7 EchoStar XI (2)(3) ESS July 2008 110 W 9 EchoStar XII (2)(4)(5) ESS July 2003 61.5 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5 W 15 EchoStar XXI Corporate and Other June 2017 10.25 E 15 EchoStar XXIII Corporate and Other March 2017 45 W 15 EUTELSAT 10A (“W2A”) (6) Corporate and Other April 2009 10 E — Capital Leases: Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 Eutelsat 65 West A Hughes March 2016 65 W 15 EchoStar 105/SES-11 ESS October 2017 105 W 15 (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries. (2) See Note 19 for discussion of related party transactions with DISH Network. (3) 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 19 ). (4) Fully depreciated assets as of December 31, 2017. (5) Depreciable life represents the remaining useful life as of June 30, 2013, the date the EchoStar XII satellite was impaired. (6) 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, Regulatory Authoriz37
Goodwill, Regulatory Authorizations and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of regulatory authorizations with finite and indefinite useful lives | Regulatory authorizations included amounts with finite and indefinite useful lives, as follows: As of Additions Impairment Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 87,959 $ — $ — $ 4,662 $ 92,621 Accumulated amortization (14,983 ) (5,097 ) — (1,262 ) (21,342 ) Net 72,976 (5,097 ) — 3,400 71,279 Indefinite lives 471,657 — (6,000 ) — 465,657 Total regulatory authorizations, net $ 544,633 $ (5,097 ) $ (6,000 ) $ 3,400 $ 536,936 |
Schedule of other intangible assets subject to amortization | Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of December 31, 2017 2016 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (231,642 ) $ 38,658 $ 270,300 $ (214,544 ) $ 55,756 Technology-based 6 61,300 (60,927 ) 373 60,835 (57,266 ) 3,569 Trademark portfolio 20 29,700 (9,776 ) 19,924 29,700 (8,291 ) 21,409 Total other intangible assets $ 361,300 $ (302,345 ) $ 58,955 $ 360,835 $ (280,101 ) $ 80,734 |
Schedule of estimated future amortization of intangible assets | As of December 31, 2017 , our estimated future amortization of intangible assets, including regulatory authorizations with finite lives, was as follows: Amount (In thousands) For the Years Ending December 31, 2018 $ 20,106 2019 20,106 2020 16,470 2021 9,831 2022 6,867 Thereafter 60,799 Total $ 134,179 |
Debt and Capital Lease Obliga38
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of carrying amounts and fair values of the entity's debt | The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,042,609 $ 990,000 $ 1,084,050 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 769,305 750,000 739,688 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 992,745 900,000 990,189 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 791,865 750,000 760,245 Less: Unamortized debt issuance costs (24,857 ) — (31,821 ) — Subtotal 3,365,143 $ 3,596,524 3,358,179 $ 3,574,172 Capital lease obligations 269,701 297,268 Total debt and capital lease obligations 3,634,844 3,655,447 Less: Current portion (40,631 ) (32,984 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,594,213 $ 3,622,463 |
Schedule of future minimum lease payments under capital lease obligations | Future minimum lease payments under our capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2017 , are as follows: Amount (In thousands) For the Years Ending December 31, 2018 $ 93,038 2019 88,739 2020 88,496 2021 84,371 2022 63,622 Thereafter 110,880 Total minimum lease payments 529,146 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (162,404 ) Net minimum lease payments 366,742 Less: Amount representing interest (97,041 ) Present value of net minimum lease payments 269,701 Less: Current portion (40,631 ) Long-term portion of capital lease obligations $ 229,070 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | The components of income from continuing operations before income taxes are as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Domestic $ 146,383 $ 236,200 $ 140,738 Foreign (45,689 ) (19,574 ) (1,411 ) Income from continuing operations before income taxes $ 100,694 $ 216,626 $ 139,327 |
Schedule of components of the benefit (provision) for income taxes | The components of the provision for income taxes are as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Current benefit (provision): Federal $ (8,652 ) $ (19,385 ) $ — State (1,237 ) 267 (8,926 ) Foreign (2,335 ) (2,481 ) (4,470 ) Total current benefit (provision) (12,224 ) (21,599 ) (13,396 ) Deferred benefit (provision): Federal 299,693 (58,250 ) (42,659 ) State 2,356 (6,232 ) 3,285 Foreign (5,539 ) 5,827 1,535 Total deferred benefit (provision) 296,510 (58,655 ) (37,839 ) Total income tax benefit (provision), net $ 284,286 $ (80,254 ) $ (51,235 ) |
Schedule of income tax rate reconciliation | The actual tax provisions for the years ended December 31, 2017 , 2016 and 2015 reconcile to the amounts computed by applying the statutory federal tax rate to income from continuing operations before income taxes as shown below: For the Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit (12.2 )% 5.0 % 3.8 % Permanent differences (0.3 )% 1.4 % 1.7 % Tax credits (8.1 )% (4.2 )% (8.4 )% Valuation allowance 4.6 % (0.3 )% 1.4 % Enactment of Tax Cuts and Job Act of 2017 (301.4 )% — % — % Other 0.1 % 0.1 % 3.3 % Total effective tax rate (282.3 )% 37.0 % 36.8 % |
Schedule of deferred tax assets and liabilities | The components of our deferred tax assets and liabilities are as follows: As of December 31, 2017 2016 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 278,540 $ 178,925 Unrealized losses on investments, net 22,260 47,737 Accrued expenses 23,583 39,596 Stock-based compensation 9,148 14,389 Other assets 11,890 15,008 Total deferred tax assets 345,421 295,655 Valuation allowance (66,886 ) (75,372 ) Deferred tax assets after valuation allowance 278,535 220,283 Deferred tax liabilities: Depreciation and amortization (708,599 ) (962,838 ) Other liabilities (1,509 ) (1,319 ) Total deferred tax liabilities (710,108 ) (964,157 ) Total net deferred tax liabilities $ (431,573 ) $ (743,874 ) |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the Years Ended December 31, Unrecognized tax benefit 2017 2016 2015 (In thousands) Balance as of beginning of period $ 63,502 $ 62,366 $ 44,839 Additions based on tax positions related to the current year 1,116 2,132 11,748 Additions based on tax positions related to prior years 258 3 5,779 Reductions based on tax positions related to prior years (852 ) (734 ) — Reductions based on tax settlements — (265 ) — Reductions based on expirations of statute of limitations (728 ) — — Balance as of end of period $ 63,296 $ 63,502 $ 62,366 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of exercise prices for stock options outstanding and exercisable | Exercise prices for stock options outstanding and exercisable as of December 31, 2017 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2017 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2017 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 57,359 3 $ 18.63 57,359 3 $ 18.63 $20.01 - $25.00 438,614 2 $ 20.18 438,614 2 $ 20.18 $25.01 - $30.00 10,210 2 $ 27.95 10,210 2 $ 27.95 $30.01 - $35.00 352,500 5 $ 34.22 352,500 5 $ 34.22 $35.01 - $40.00 2,019,000 5 $ 38.20 1,643,000 4 $ 38.03 $40.01 - $45.00 254,000 8 $ 43.93 33,200 8 $ 43.93 $45.01 - $50.00 807,173 7 $ 47.57 428,773 6 $ 47.68 $50.01 - $55.00 354,900 7 $ 51.98 150,000 7 $ 52.05 $55.01 - $60.00 595,000 9 $ 56.95 10,000 4 $ 56.95 $60.01 and over 62,500 8 $ 60.70 20,000 5 $ 60.70 4,951,256 6 $ 41.42 3,143,656 4 $ 36.98 |
Schedule of stock option activity | Our stock option activity was as follows: For the Years Ended December 31, 2017 2016 2015 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 5,968,763 $ 39.30 5,893,241 $ 38.38 6,669,614 $ 34.02 Granted (1) 1,262,500 $ 57.12 732,000 $ 41.86 929,000 $ 51.59 Exercised (1,018,507 ) $ 35.84 (453,182 ) $ 28.83 (894,071 ) $ 27.78 Forfeited and canceled (1) (1,261,500 ) $ 51.63 (203,296 ) $ 45.15 (811,302 ) $ 29.45 Total options outstanding, end of period 4,951,256 $ 41.42 5,968,763 $ 39.30 5,893,241 $ 38.38 Exercisable at end of period 3,143,656 $ 36.98 3,551,063 $ 35.40 3,082,241 $ 32.61 |
Schedule of restricted stock unit activity | Our restricted stock unit activity was as follows: For the Years Ended December 31, 2017 2016 2015 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period 6,667 $ 34.22 57,328 $ 42.31 96,768 $ 29.29 Granted — $ — — $ — 100,000 $ 50.00 Vested (6,667 ) $ 34.22 (50,661 ) $ 43.38 (83,992 ) $ 45.72 Forfeited and canceled — $ — — $ — (55,448 ) $ 27.01 Total restricted stock units outstanding, end of period — $ — 6,667 $ 34.22 57,328 $ 42.31 Restricted Performance Units outstanding, end of period — $ — — $ — 33,334 $ 50.00 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2017 , 2016 and 2015 and was assigned to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2017 2016 2015 (In thousands) Research and development expenses $ 1,010 $ 1,046 $ 1,420 Selling, general and administrative expenses 10,630 9,865 15,707 Total stock-based compensation $ 11,640 $ 10,911 $ 17,127 |
Schedule of assumptions of Black-Scholes option valuation model | The fair value of each stock option granted for the years ended December 31, 2017 , 2016 and 2015 was estimated at the date of the grant using a Black-Scholes option valuation model. The estimated grant-date fair values and related assumptions were as follows: For the Years Ended December 31, Assumptions: 2017 2016 2015 Risk-free interest rate 1.98% - 2.05% 1.10% - 1.87% 1.38% - 1.80% Volatility factor 24.20% - 26.69% 27.22% - 27.37% 27.16% - 27.85% Expected term of options in years 5.7 - 5.8 5.7 - 5.8 5.3 - 5.4 Weighted-average grant-date fair value $15.25 - $16.49 $11.15 - $12.49 $12.25 - $15.05 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of contractual obligations | The following table summarizes our contractual obligations at December 31, 2017 : Payments Due in the Year Ending December 31, Total 2018 2019 2020 2021 2022 Thereafter (In thousands) Long-term debt $ 3,390,000 $ — $ 990,000 $ — $ 900,000 $ — $ 1,500,000 Capital lease obligations 269,701 40,631 40,740 45,096 46,450 31,985 64,799 Interest on long-term debt and capital lease obligations 1,235,317 248,840 212,466 175,899 136,730 98,282 363,100 Satellite-related obligations 923,910 342,065 139,312 111,662 57,691 124,411 148,769 Operating lease obligations 84,944 15,423 14,385 14,089 11,547 7,588 21,912 Total $ 5,903,872 $ 646,959 $ 1,396,903 $ 346,746 $ 1,152,418 $ 262,266 $ 2,098,580 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of revenue, EBITDA, and capital expenditures by operating segments | The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Satellite Services Corporate and Other Consolidated Total (In thousands) For The Year Ended December 31, 2017 External revenue $ 1,476,131 $ 390,831 $ 18,546 $ 1,885,508 Intersegment revenue $ 1,787 $ 1,413 $ (3,200 ) $ — Total revenue $ 1,477,918 $ 392,244 $ 15,346 $ 1,885,508 EBITDA $ 475,222 $ 315,285 $ 4,070 $ 794,577 Capital expenditures (1) $ 376,502 $ 20,725 $ 169,157 $ 566,384 For The Year Ended December 31, 2016 External revenue $ 1,389,152 $ 406,970 $ 14,344 $ 1,810,466 Intersegment revenue $ 3,209 $ 690 $ (3,899 ) $ — Total revenue $ 1,392,361 $ 407,660 $ 10,445 $ 1,810,466 EBITDA $ 477,165 $ 341,516 $ (67,676 ) $ 751,005 Capital expenditures (1) $ 322,362 $ 58,925 $ 247,223 $ 628,510 For The Year Ended December 31, 2015 External revenue $ 1,344,945 $ 489,842 $ 14,070 $ 1,848,857 Intersegment revenue $ 2,395 $ 749 $ (3,144 ) $ — Total revenue $ 1,347,340 $ 490,591 $ 10,926 $ 1,848,857 EBITDA $ 444,342 $ 414,727 $ (143,330 ) $ 715,739 Capital expenditures (1) $ 285,499 $ 101,215 $ 266,213 $ 652,927 |
Schedule of reconciliation of EBITDA to reported income (loss) before income taxes | The following table reconciles total consolidated EBITDA to reported “ Income from continuing operations before income taxes ” in our consolidated statements of operations : For the Years Ended December 31, 2017 2016 2015 (In thousands) EBITDA $ 794,577 $ 751,005 $ 715,739 Interest income and expense, net (172,621 ) (102,237 ) (111,607 ) Depreciation and amortization (522,190 ) (432,904 ) (460,819 ) Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests 928 762 (3,986 ) Income from continuing operations before income taxes $ 100,694 $ 216,626 $ 139,327 |
Summary of total long-lived assets and revenue attributed to the North American and other foreign locations | Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. North America revenue includes transactions with North America customers. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America, and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North America and other foreign locations. As of December 31, Long-lived assets: 2017 2016 (In thousands) North America: United States $ 4,193,432 $ 4,214,575 Canada and Mexico 28,360 16,630 All other 343,743 296,530 Total long-lived assets $ 4,565,535 $ 4,527,735 For the Years Ended December 31, Revenue: 2017 2016 2015 (In thousands) North America: United States $ 1,522,421 $ 1,480,339 $ 1,528,352 Canada and Mexico 89,928 86,236 67,648 All other 273,159 243,891 252,857 Total revenue $ 1,885,508 $ 1,810,466 $ 1,848,857 |
Summary of sales to major customer and its percentage of total revenue | The following table summarizes sales to this customer and its percentage of total revenue. For the Years Ended December 31, 2017 2016 2015 (In thousands) Total revenue: DISH Network: Hughes segment $ 82,625 $ 107,300 $ 105,181 EchoStar Satellite Services segment 344,841 349,549 423,465 Corporate and Other 18,522 15,433 14,268 Total DISH Network 445,988 472,282 542,914 All other 1,439,520 1,338,184 1,305,943 Total revenue $ 1,885,508 $ 1,810,466 $ 1,848,857 Percentage of total revenue: DISH Network 23.7 % 26.1 % 29.4 % All other 76.3 % 73.9 % 70.6 % |
Quarterly Financial Data (Una43
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (2) (In thousands, except per share amounts) Year Ended December 31, 2017 Total revenue (1) $ 433,151 $ 465,076 $ 481,233 $ 506,048 Operating income (1) $ 51,651 $ 45,890 $ 56,414 $ 42,352 Net income $ 37,352 $ 7,122 $ 35,201 $ 313,814 Net income attributable to EchoStar common stock $ 38,924 $ 6,940 $ 34,669 $ 313,237 Basic earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.29 Diluted earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.23 Year Ended December 31, 2016 Total revenue (1) $ 431,974 $ 442,658 $ 460,046 $ 475,788 Operating income (1) $ 65,730 $ 75,431 $ 76,602 $ 78,400 Net income $ 48,443 $ 55,909 $ 37,410 $ 38,930 Net income attributable to EchoStar common stock $ 50,674 $ 56,133 $ 36,644 $ 38,222 Basic earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.41 Diluted earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.40 |
Organization and Business Act44
Organization and Business Activities (Details) $ in Millions | Mar. 02, 2014USD ($)satellite | Dec. 31, 2017segment | Jan. 31, 2017 |
Principal Business | |||
Number of business segments | segment | 2 | ||
DISH Network | Satellite and Tracking Stock Transaction | |||
Principal Business | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 11.4 | ||
Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | |||
Principal Business | |||
Percentage of economic interest held | 80.00% | ||
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | |||
Principal Business | |||
Ownership interest acquired by related party (as a percent) | 100.00% | ||
EchoStar Corporation | Hughes Retail Group | Satellite and Tracking Stock Transaction | |||
Principal Business | |||
Percentage of economic interest held | 20.00% | ||
EchoStar Corporation | Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | |||
Principal Business | |||
Percentage of economic interest held | 51.89% | ||
Hughes Satellite Systems Corporation (HSSC) | Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | |||
Principal Business | |||
Percentage of economic interest held | 28.11% | ||
EchoStar and HSSC | DISH Network | Satellite and Tracking Stock Transaction | |||
Principal Business | |||
Related Party Transactions Number of Owned Satellites Transferred | satellite | 5 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Currency | |||
Foreign currency transaction gain (loss) | $ 1,200,000 | $ (500,000) | $ (4,300,000) |
Fair value measurements | |||
Amount of transfers between levels within the fair value hierarchy | 0 | 0 | |
Research and Development | |||
Research and development expenses | 31,745,000 | 31,170,000 | 26,377,000 |
Capitalized Software Costs | |||
Expenditures for externally marketed software | (31,331,000) | (23,252,000) | (22,327,000) |
Other noncurrent assets, net | |||
Capitalized Software Costs | |||
Net carrying amount of externally marketed software | 88,100,000 | 76,300,000 | |
Externally marketed software under development and not yet placed in service | 19,600,000 | 50,100,000 | |
Expenditures for externally marketed software | (31,300,000) | (23,300,000) | (22,300,000) |
Amortization expense relating to the development of externally marketed software | $ 19,500,000 | 9,700,000 | 8,400,000 |
Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 1 year | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Useful life | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 40 years | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Useful life | 30 years | ||
Capitalized Software Costs | |||
Software useful life | 5 years | ||
Weighted-average | |||
Capitalized Software Costs | |||
Software useful life | 4 years | ||
Cost of sales | |||
Research and Development | |||
Research and development expenses | $ 27,900,000 | 23,700,000 | 19,600,000 |
Research and development expenses | |||
Research and Development | |||
Research and development expenses | 31,700,000 | 31,200,000 | 26,400,000 |
Selling, general and administrative expenses | |||
Advertising Costs | |||
Advertising expenses | 64,200,000 | 43,900,000 | $ 44,300,000 |
Level 2 | |||
Fair value measurements | |||
In-orbit incentive obligations | $ 112,200,000 | $ 74,100,000 | |
6 1/2% Senior Secured Notes due 2019 | |||
Fair value measurements | |||
Interest rate | 6.50% | ||
6 1/2% Senior Secured Notes due 2019 | Senior Secured Notes: | |||
Fair value measurements | |||
Interest rate | 6.50% | ||
5 1/4% Senior Secured Notes due 2026 | |||
Fair value measurements | |||
Interest rate | 5.25% | ||
5 1/4% Senior Secured Notes due 2026 | Senior Secured Notes: | |||
Fair value measurements | |||
Interest rate | 5.25% | ||
7 5/8% Senior Unsecured Notes due 2021 | Senior Unsecured Notes: | |||
Fair value measurements | |||
Interest rate | 7.625% | ||
6 5/8% Senior Unsecured Notes due 2026 | |||
Fair value measurements | |||
Interest rate | 6.625% | ||
6 5/8% Senior Unsecured Notes due 2026 | Senior Unsecured Notes: | |||
Fair value measurements | |||
Interest rate | 6.625% |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | Jan. 01, 2017 | |
New accounting pronouncement disclosures | |||||||||||||
Accumulated earnings | $ 721,316 | $ 314,247 | $ 721,316 | $ 314,247 | |||||||||
Deferred Tax Assets, Net of Valuation Allowance | 278,535 | 220,283 | 278,535 | 220,283 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 384,980 | 136,372 | $ 88,092 | ||||||||||
Net income attributable to EchoStar common stock | 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ 38,222 | $ 36,644 | $ 56,133 | $ 50,674 | 393,770 | $ 181,673 | $ 163,700 | ||
Accounting Standards Update 2016-09 | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Deferred Tax Assets, Net of Valuation Allowance | $ 14,500 | ||||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 2,100 | ||||||||||||
Net income attributable to EchoStar common stock | 5,300 | ||||||||||||
Retained Earnings | Accounting Standards Update 2016-09 | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Cumulative effect of new accounting principle in period of adoption | $ 14,500 | ||||||||||||
Subsequent Event | Retained Earnings | Accounting Standards Update 2016-01 [Member] | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ (10,500) | ||||||||||||
Minimum | Pro Forma | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Accumulated earnings | 15,000 | 15,000 | |||||||||||
Maximum | Pro Forma | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Accumulated earnings | 18,000 | 18,000 | |||||||||||
Up-front Payment Arrangement | Pro Forma | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
New accounting pronouncement disclosures | |||||||||||||
Accumulated earnings | $ 8,000 | $ 8,000 |
Discontinued Operations Disco47
Discontinued Operations Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2017 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Net income from discontinued operations | $ 8,509 | $ 44,320 | $ 61,279 | |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||||
Current assets of discontinued operations | 97 | 311,524 | ||
Noncurrent assets of discontinued operations | 0 | 316,924 | ||
Current liabilities of discontinued operations | 542 | 71,429 | ||
Noncurrent liabilities of discontinued operations | 0 | 10,701 | ||
Discontinued Operations [Member] | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Equipment, services and other revenue - DISH Network | 143,118 | 1,127,610 | 1,138,571 | |
Equipment, services and other revenue - other | 10,344 | 118,654 | 156,286 | |
Total revenue | 153,462 | 1,246,264 | 1,294,857 | |
Cost of equipment, services and other | 121,967 | 1,010,421 | 1,034,960 | |
Selling, general and administrative expenses | 5,439 | 60,590 | 55,980 | |
Research and development expenses | 4,635 | 44,854 | 51,910 | |
Depreciation and amortization | 11,659 | 62,164 | 67,339 | |
Impairment of long-lived assets | 0 | 0 | 2,400 | |
Total costs and expenses | 143,700 | 1,178,029 | 1,212,589 | |
Operating income | 9,762 | 68,235 | 82,268 | |
Interest expense | (15) | (144) | (30) | |
Equity in earnings (losses) of unconsolidated affiliates, net | (1,159) | 2,508 | 4,372 | |
Other, net | (57) | (381) | (4,365) | |
Total income (expense), net | (1,231) | 1,983 | (23) | |
Income from discontinued operations before income taxes | 8,531 | 70,218 | 82,245 | |
Income tax provision | (22) | (25,898) | (20,966) | |
Net income from discontinued operations | 8,509 | 44,320 | 61,279 | |
Discontinued Operation, Alternative Cash Flow Information [Abstract] | ||||
Capital Expenditure, Discontinued Operations | 12,500 | 69,700 | $ 50,600 | |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||||
Cash and cash equivalents | 0 | 778 | ||
Trade accounts receivable, net | 4 | 27,261 | ||
Trade accounts receivable - DISH Network | 93 | 259,198 | ||
Inventory | 0 | 9,824 | ||
Prepaids and deposits | 0 | 14,463 | ||
Current assets of discontinued operations | 97 | 311,524 | ||
Property and equipment, net | 0 | 271,108 | ||
Goodwill | 0 | 6,457 | ||
Other intangible assets, net | 0 | 7,720 | ||
Investments in unconsolidated entities | 0 | 26,203 | ||
Other noncurrent assets, net | 0 | 5,436 | ||
Noncurrent assets of discontinued operations | 0 | 316,924 | ||
Total assets of discontinued operations | 97 | 628,448 | ||
Trade accounts payable | 278 | 19,518 | ||
Trade accounts payable - DISH Network | 0 | 3,960 | ||
Current portion of capital lease obligations | 0 | 4,323 | ||
Deferred revenue and prepayments | 0 | 2,967 | ||
Accrued compensation | 0 | 4,652 | ||
Accrued royalties | 0 | 23,199 | ||
Accrued expenses and other | 264 | 12,810 | ||
Current liabilities of discontinued operations | 542 | 71,429 | ||
Capital lease obligations | 0 | 416 | ||
Deferred tax liabilities, net | 0 | 7,353 | ||
Other noncurrent liabilities | 0 | 2,932 | ||
Noncurrent liabilities of discontinued operations | 0 | 10,701 | ||
Total liabilities of discontinued operations | $ 542 | $ 82,130 | ||
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest acquired by related party (as a percent) | 100.00% |
Earnings per Share - Antidiluti
Earnings per Share - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1 | 3.5 | 2.3 |
Earnings per Share - Related Pa
Earnings per Share - Related Party (Details) - Hughes Retail Group - Satellite and Tracking Stock Transaction | Mar. 02, 2014 |
DISH Network | Hughes Retail Preferred Tracking Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Percentage of economic interest held | 80.00% |
EchoStar Corporation | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Percentage of economic interest held | 20.00% |
EchoStar Corporation | DISH Network | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Percentage of economic interest held | 51.89% |
Hughes Satellite Systems Corporation (HSSC) | DISH Network | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Percentage of economic interest held | 28.11% |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts attributable to EchoStar common stock: | |||||||||||
Net income from continuing operations | $ 385,261 | $ 137,353 | $ 102,421 | ||||||||
Net income from discontinued operations | 8,509 | 44,320 | 61,279 | ||||||||
Net income attributable to EchoStar common stock | $ 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ 38,222 | $ 36,644 | $ 56,133 | $ 50,674 | $ 393,770 | $ 181,673 | $ 163,700 |
Weighted-average common shares outstanding - Class A and B common stock: | |||||||||||
Basic (in shares) | 95,425 | 93,795 | 92,397 | ||||||||
Dilutive impact of stock awards outstanding (in shares) | 1,316 | 615 | 1,069 | ||||||||
Diluted (in shares) | 96,741 | 94,410 | 93,466 | ||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share (in dollars) | $ 4.04 | $ 1.46 | $ 1.11 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share (in dollars) | 0.09 | 0.48 | 0.66 | ||||||||
Basic earnings per share (in dollars) | $ 3.29 | $ 0.36 | $ 0.07 | $ 0.41 | $ 0.41 | $ 0.39 | $ 0.60 | $ 0.54 | 4.13 | 1.94 | 1.77 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share (in dollars) | 3.98 | 1.45 | 1.10 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share (in dollars) | 0.09 | 0.47 | 0.65 | ||||||||
Diluted earnings per share (in dollars) | $ 3.23 | $ 0.36 | $ 0.07 | $ 0.41 | $ 0.40 | $ 0.39 | $ 0.60 | $ 0.54 | $ 4.07 | $ 1.92 | $ 1.75 |
Other Comprehensive Income (L51
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income, tax (expense) benefit | |||
Tax effects on unrealized gains or losses on available-for-sale securities | $ 0 | ||
Tax effects on foreign currency translation adjustments | 0 | ||
Cumulative foreign currency translation losses | (119,400,000) | $ (135,400,000) | $ (124,300,000) |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 7,300,000 | ||
Reclassifications out of accumulated other comprehensive loss | |||
Gains (losses) on investments, net | 56,751,000 | 9,767,000 | (6,443,000) |
Other-than-temporary impairment loss on available-for-sale securities | 3,298,000 | 0 | 11,226,000 |
Other, net | 6,582,000 | 2,131,000 | (2,685,000) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Total reclassifications, net of tax and noncontrolling interests | 540,000 | (5,590,000) | 13,080,000 |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of realized gains on marketable investment securities in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Gains (losses) on investments, net | (2,758,000) | (5,590,000) | (35,000) |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of other-than-temporary impairment loss on available-for-sale securities in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Other-than-temporary impairment loss on available-for-sale securities | 3,298,000 | 0 | 11,226,000 |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of foreign currency translation losses in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Other, net | $ 0 | $ 0 | $ 1,889,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2017 | |
Marketable investment securities and restricted cash equivalents | |||||
Marketable investment securities, at fair value | $ 814,161,000 | $ 814,161,000 | $ 522,516,000 | ||
Restricted marketable investment securities | 10,019,000 | 10,019,000 | 12,203,000 | ||
Total marketable investment securities | 824,180,000 | 824,180,000 | 534,719,000 | ||
Other-than-temporary impairment loss on available-for-sale securities | (3,298,000) | 0 | $ (11,226,000) | ||
Cost Method Investments | 69,725,000 | 69,725,000 | 80,052,000 | ||
Gains (losses) related to trading securities | 22,800,000 | ||||
Privately Held Company [Member] | |||||
Marketable investment securities and restricted cash equivalents | |||||
Cost Method Investments | $ 4,100,000 | ||||
Corporate bonds | |||||
Marketable investment securities and restricted cash equivalents | |||||
Marketable investment securities, at fair value | 542,573,000 | 542,573,000 | 402,670,000 | ||
Strategic equity securities | |||||
Marketable investment securities and restricted cash equivalents | |||||
Marketable investment securities, at fair value | 133,736,000 | 133,736,000 | 94,816,000 | ||
Trading Securities, Equity | 46,700,000 | 46,700,000 | 7,200,000 | ||
Strategic equity securities | Other, net | |||||
Marketable investment securities and restricted cash equivalents | |||||
Dividend income from strategic equity securities | 6,300,000 | 100,000 | |||
Other-than-temporary impairment loss on available-for-sale securities | (3,300,000) | 0 | (11,200,000) | ||
Strategic equity securities | Gain (loss) on marketable investment securities, net | |||||
Marketable investment securities and restricted cash equivalents | |||||
Gains (losses) related to trading securities | 42,600,000 | 600,000 | $ (6,500,000) | ||
Other | |||||
Marketable investment securities and restricted cash equivalents | |||||
Marketable investment securities, at fair value | $ 137,852,000 | $ 137,852,000 | $ 25,030,000 |
Investment Securities - Unreali
Investment Securities - Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | $ 782,462 | $ 512,109 |
Unrealized Gains | 7,937 | 13,408 |
Unrealized Losses | (18,738) | (2,762) |
Total available-for-sale securities | 771,661 | 522,755 |
Corporate bonds | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 542,861 | 402,472 |
Unrealized Gains | 0 | 285 |
Unrealized Losses | (288) | (87) |
Estimated Fair Value | 542,573 | 402,670 |
Other | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 142,082 | 32,488 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (46) | (23) |
Estimated Fair Value | 142,036 | 32,468 |
Strategic equity securities | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 97,519 | 77,149 |
Unrealized Gains | 7,937 | 13,120 |
Unrealized Losses | (18,404) | (2,652) |
Estimated Fair Value | $ 87,052 | $ 87,617 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Debt securities with contractual maturities of one year or less | $ 684.2 |
Debt securities with contractual maturities exceeding one year | $ 0.4 |
Investment Securities - Availab
Investment Securities - Available-for-Sale Securities in a Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of available-for-sale securities in a loss position | ||
Less than 12 months | $ 733,635 | $ 154,826 |
12 months or more | 6,715 | 1,571 |
Total | 740,350 | 156,397 |
Unrealized losses on available-for-sale securities in a loss position | ||
Less than 12 months | (18,715) | (2,760) |
12 months or more | (23) | (2) |
Total | $ (18,738) | $ (2,762) |
Investment Securities - Sales o
Investment Securities - Sales of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from Sale of Available-for-Sale Securities | |||
Realized gains from the sales of available-for-sale securities | $ 2.8 | $ 5.6 | |
Proceeds from sales of available-for-sale securities | $ 31 | $ 80.4 | $ 111.5 |
Investment Securities - Fair Va
Investment Securities - Fair Value Measurements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of marketable securities | ||
Total marketable investment securities | $ 824,180,000 | $ 534,719,000 |
Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 542,573,000 | 402,670,000 |
Other | ||
Fair value of marketable securities | ||
Debt securities | 142,036,000 | 32,468,000 |
Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 133,736,000 | 94,816,000 |
Level 3 | ||
Fair value of marketable securities | ||
Fair value of investments | 0 | 0 |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 2,354,998,000 | 2,490,168,000 |
Total marketable investment securities | 824,180,000 | 534,719,000 |
Fair value measurements on recurring basis | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 542,573,000 | 402,670,000 |
Fair value measurements on recurring basis | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 147,871,000 | 37,233,000 |
Fair value measurements on recurring basis | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 133,736,000 | 94,816,000 |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 301,000 | 62,332,000 |
Total marketable investment securities | 147,047,000 | 108,333,000 |
Fair value measurements on recurring basis | Level 1 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Fair value measurements on recurring basis | Level 1 | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 13,311,000 | 13,517,000 |
Fair value measurements on recurring basis | Level 1 | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 133,736,000 | 94,816,000 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 2,354,697,000 | 2,427,836,000 |
Total marketable investment securities | 677,133,000 | 426,386,000 |
Fair value measurements on recurring basis | Level 2 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 542,573,000 | 402,670,000 |
Fair value measurements on recurring basis | Level 2 | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 134,560,000 | 23,716,000 |
Fair value measurements on recurring basis | Level 2 | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | $ 0 | $ 0 |
Investment Securities - Investm
Investment Securities - Investment in Unconsolidated Entities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2017 | |
Investment disclosures | ||||
Cost Method Investments | $ 69,725,000 | $ 80,052,000 | ||
Equity method investment amount | 91,702,000 | 90,964,000 | ||
Total investments in unconsolidated entities—noncurrent | 161,427,000 | 171,016,000 | ||
Dividends received from unconsolidated entities | 19,000,000 | 10,000,000 | $ 0 | |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 33,400,000 | |||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Current Assets | 172,234,000 | 183,732,000 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 187,067,000 | 181,638,000 | ||
Equity Method Investment, Summarized Financial Information, Assets | 359,301,000 | 365,370,000 | ||
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 130,443,000 | 128,982,000 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 110,472,000 | 111,501,000 | ||
Equity Method Investment, Summarized Financial Information, Liabilities | 240,915,000 | 240,483,000 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Revenue | 535,153,000 | 541,066,000 | 513,378,000 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 31,919,000 | 52,656,000 | 20,878,000 | |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 32,739,000 | 29,083,000 | (9,197,000) | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 30,130,000 | 25,262,000 | 8,492,000 | |
Equity in earnings (losses) of unconsolidated affiliates, net | 16,973,000 | 10,802,000 | (2,477,000) | |
Dish Mexico | ||||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Current Assets | 146,851,000 | 139,349,000 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 185,345,000 | 178,369,000 | ||
Equity Method Investment, Summarized Financial Information, Assets | 332,196,000 | 317,718,000 | ||
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 129,087,000 | 129,563,000 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 109,428,000 | 111,501,000 | ||
Equity Method Investment, Summarized Financial Information, Liabilities | 238,515,000 | 241,064,000 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Equity Method Investment, Summarized Financial Information, Revenue | 497,096,000 | 498,069,000 | 471,712,000 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 15,094,000 | 32,280,000 | 638,000 | |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 18,267,000 | 10,195,000 | (26,201,000) | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 15,658,000 | 6,374,000 | (8,512,000) | |
Equity in earnings (losses) of unconsolidated affiliates, net | 9,946,000 | $ 1,358,000 | $ (10,979,000) | |
Invidi Technologies Corporation [Member] | ||||
Investment disclosures | ||||
Cost Method Investments | $ 10,500,000 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal [Abstract] | ||||
Cost Method Investment, Amount Sold | 19,400,000 | |||
Cost-method Investments, Realized Gains | $ 8,900,000 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade Accounts Receivable | ||
Trade accounts receivable | $ 208,867 | $ 195,483 |
Allowance for doubtful accounts | (12,027) | (12,956) |
Trade accounts receivable - DISH Network | 43,295 | 19,417 |
Total trade accounts receivable, net | 240,135 | 201,944 |
Progress billings offset against contracts in process | 22,800 | 14,600 |
Trade accounts receivable | ||
Trade Accounts Receivable | ||
Trade accounts receivable | 197,294 | 159,313 |
Contracts in process, net | ||
Trade Accounts Receivable | ||
Trade accounts receivable | $ 11,573 | $ 36,170 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Finished goods | $ 70,669 | $ 49,755 |
Raw materials | 5,484 | 6,678 |
Work in process | 7,442 | 6,187 |
Total inventory | $ 83,595 | $ 62,620 |
Property and Equipment - Schedu
Property and Equipment - Schedule of PP&E (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 6,126,600 | $ 5,996,687 |
Accumulated depreciation | (2,661,129) | (2,598,492) |
Property and equipment, net | 3,465,471 | 3,398,195 |
Accumulated depreciation on satellites acquired under capital leases | $ 393,900 | 328,200 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 40 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 33,713 | 35,815 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 185,148 | 175,593 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 1 year | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 40 years | |
Furniture, fixtures, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 736,533 | 514,056 |
Furniture, fixtures, equipment and other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 1 year | |
Furniture, fixtures, equipment and other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 12 years | |
Customer rental equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 929,775 | 689,579 |
Customer rental equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 2 years | |
Customer rental equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 4 years | |
Satellites - owned | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 3,064,391 | 2,381,120 |
Satellites - owned | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 2 years | |
Satellites - owned | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 15 years | |
Satellites acquired under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 916,820 | 781,761 |
Satellites acquired under capital leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 10 years | |
Satellites acquired under capital leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 260,220 | $ 1,418,763 |
Property and Equipment - Constr
Property and Equipment - Construction in Progress (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 260,220 | $ 1,418,763 | |
Capitalized interest related to satellites, satellite payloads and related ground facilities under construction | 52,015 | 94,395 | $ 63,808 |
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | 211,765 | 1,235,577 | |
Satellite related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | 28,358 | 152,737 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 20,097 | $ 30,449 |
Property and Equipment - Deprec
Property and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation expense | |||
Total depreciation expense | $ 475,306 | $ 378,569 | $ 388,985 |
Satellites | |||
Depreciation expense | |||
Total depreciation expense | 239,072 | 191,729 | 197,469 |
Amortization of satellites under capital lease agreements | 66,100 | 56,200 | 56,200 |
Furniture, fixtures, equipment and other | |||
Depreciation expense | |||
Total depreciation expense | 82,668 | 65,350 | 77,946 |
Customer rental equipment | |||
Depreciation expense | |||
Total depreciation expense | 146,562 | 114,568 | 105,725 |
Buildings and improvements | |||
Depreciation expense | |||
Total depreciation expense | $ 7,004 | $ 6,922 | $ 7,845 |
Property and Equipment - Satell
Property and Equipment - Satellites (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($)satellitesolar_array_circuit | Oct. 31, 2017USD ($) | Sep. 30, 2010solar_array_circuit | Dec. 31, 2017USD ($)satellitesolar_array_circuitmi | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Carrying amount | $ 3,465,471,000 | $ 3,465,471,000 | $ 3,398,195,000 | |||
Transfer of EchoStar 105/SES-11 payloads to SES in exchange for receivable | $ 77,524,000 | 0 | $ 0 | |||
Satellites | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | satellite | 19 | |||||
Length of satellites utilized in geosynchronous orbit above the equator (in miles) | mi | 22,300 | |||||
Number of satellites utilized under capital lease | satellite | 4 | 4 | ||||
SPACEWAY 3 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 12 years | |||||
EchoStar XVII | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
EchoStar XIX [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
EchoStar VI | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 12 years | |||||
EchoStar VII | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 3 years | |||||
EchoStar IX | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 12 years | |||||
EchoStar X | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 7 years | |||||
Number Of Solar Array Circuits Affected | solar_array_circuit | 1 | 7 | ||||
Number Of Functional Solar Array Circuits | solar_array_circuit | 16 | 16 | ||||
EchoStar XI | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 9 years | |||||
EchoStar XII | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 2 years | |||||
EchoStar XIV | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 11 years | |||||
EchoStar XVI | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
EchoStar XXI [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
EchoStar XXIII [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
Nimiq 5 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
QuetzSat1 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 10 years | |||||
Eutelsat 65 West A [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
EchoStar 105/SES-11 [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciable life | 15 years | |||||
Lessee, Finance Lease, Term of Contract | 10 years | |||||
Transfer of EchoStar 105/SES-11 payloads to SES in exchange for receivable | $ 77,500,000 | |||||
AMC-15 and AMC-16 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Carrying amount | $ 0 | $ 0 | ||||
AMC-15 and AMC-16 | Other Income | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Reduction of capital lease obligation recognized as gains | $ 0 | $ 0 | $ 4,500,000 |
Goodwill, Regulatory Authoriz65
Goodwill, Regulatory Authorizations and Other Intangible Assets - Regulatory Authorizations - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets Gross [RollForward] | ||||
Balance at the beginning of the period | $ 360,835 | |||
Balance at the end of the period | $ 361,300 | 361,300 | $ 360,835 | |
Accumulated amortization | ||||
Balance at the beginning of the period | (280,101) | |||
Balance at the end of the period | (302,345) | (302,345) | (280,101) | |
Net | ||||
Balance at the beginning of the period | 80,734 | |||
Balance at the end of the period | 58,955 | 58,955 | 80,734 | |
Total regulatory authorizations, net | ||||
Balance at the beginning of the period | 544,633 | |||
Additions | (5,097) | |||
Impairment of Intangible Assets (Excluding Goodwill) | (6,000) | |||
Currency Translation Adjustment | 3,400 | |||
Balance at the end of the period | 536,936 | 536,936 | 544,633 | |
Amortization of regulatory authorizations | 46,900 | 54,300 | $ 71,800 | |
Indefinite Lives | ||||
Indefinite lives | ||||
Balance at the beginning of the period | 471,657 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (6,000) | |||
Balance at the end of the period | 465,657 | 465,657 | 471,657 | |
Contractual Rights [Member] | ||||
Indefinite lives | ||||
Balance at the beginning of the period | 6,000 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (6,000) | |||
Finite lives | ||||
Finite-Lived Intangible Assets Gross [RollForward] | ||||
Balance at the beginning of the period | 87,959 | |||
Currency Translation Adjustment | 4,662 | |||
Balance at the end of the period | 92,621 | 92,621 | 87,959 | |
Accumulated amortization | ||||
Balance at the beginning of the period | (14,983) | |||
Additions | (5,097) | |||
Currency Translation Adjustment | (1,262) | |||
Balance at the end of the period | (21,342) | (21,342) | (14,983) | |
Net | ||||
Balance at the beginning of the period | 72,976 | |||
Additions | (5,097) | |||
Currency Translation Adjustment | 3,400 | |||
Balance at the end of the period | 71,279 | 71,279 | 72,976 | |
Total regulatory authorizations, net | ||||
Amortization of regulatory authorizations | 5,100 | 4,700 | $ 4,700 | |
Brazilian Regulatory Authorization [Member] | ||||
Net | ||||
Balance at the beginning of the period | 38,600 | |||
Balance at the end of the period | $ 36,300 | $ 36,300 | $ 38,600 |
Goodwill, Regulatory Authoriz66
Goodwill, Regulatory Authorizations and Other Intangible Assets- Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other intangible assets | |||
Cost | $ 361,300 | $ 360,835 | |
Accumulated Amortization | (302,345) | (280,101) | |
Carrying Amount | 58,955 | 80,734 | |
Amortization expense | 46,900 | 54,300 | $ 71,800 |
Customer relationships | |||
Other intangible assets | |||
Cost | 270,300 | 270,300 | |
Accumulated Amortization | (231,642) | (214,544) | |
Carrying Amount | $ 38,658 | 55,756 | |
Customer relationships | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 8 years | ||
Technology-based | |||
Other intangible assets | |||
Cost | $ 61,300 | 60,835 | |
Accumulated Amortization | (60,927) | (57,266) | |
Carrying Amount | $ 373 | 3,569 | |
Technology-based | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 6 years | ||
Trademark portfolio | |||
Other intangible assets | |||
Cost | $ 29,700 | 29,700 | |
Accumulated Amortization | (9,776) | (8,291) | |
Carrying Amount | $ 19,924 | $ 21,409 | |
Trademark portfolio | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 20 years |
Goodwill, Regulatory Authoriz67
Goodwill, Regulatory Authorizations and Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Estimated future amortization of intangible assets | |
2,018 | $ 20,106 |
2,019 | 20,106 |
2,020 | 16,470 |
2,021 | 9,831 |
2,022 | 6,867 |
Thereafter | 60,799 |
Total | $ 134,179 |
Debt and Capital Lease Obliga68
Debt and Capital Lease Obligations - Schedule of Debt and Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt and Capital Lease Obligations | ||
Fair Value | $ 3,596,524 | $ 3,574,172 |
Subtotal | 3,365,143 | 3,358,179 |
Capital lease obligations | 269,701 | 297,268 |
Total debt and capital lease obligations | 3,634,844 | 3,655,447 |
Less: Current portion | (40,631) | (32,984) |
Long-term debt and capital lease obligations, net of unamortized debt issuance costs | 3,594,213 | $ 3,622,463 |
6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | |
5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | |
7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | |
6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | |
Unamortized debt issuance costs | ||
Debt and Capital Lease Obligations | ||
Less: Unamortized debt issuance costs | $ (24,857) | $ (31,821) |
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | |
Effective Interest Rate | 6.959% | |
Carrying Amount | $ 990,000 | 990,000 |
Fair Value | $ 1,042,609 | 1,084,050 |
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | |
Effective Interest Rate | 5.32% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | $ 769,305 | 739,688 |
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | |
Effective Interest Rate | 8.062% | |
Carrying Amount | $ 900,000 | 900,000 |
Fair Value | $ 992,745 | 990,189 |
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | |
Effective Interest Rate | 6.688% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | $ 791,865 | $ 760,245 |
Debt and Capital Lease Obliga69
Debt and Capital Lease Obligations - Debt (Details) - USD ($) | May 11, 2017 | Jun. 12, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 27, 2016 | Jun. 01, 2011 |
Debt and Capital Lease Obligations | |||||||
Loss from partial redemption of debt | $ 0 | $ 0 | $ 5,044,000 | ||||
Payments of debt issuance costs | (414,000) | (7,097,000) | 0 | ||||
Interest on long-term debt and capital lease obligations | |||||||
Debt and Capital Lease Obligations | |||||||
Debt issuance costs amortized | 7,400,000 | $ 6,600,000 | $ 6,000,000 | ||||
6 1/2% Senior Secured Notes due 2019 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 6.50% | ||||||
6 1/2% Senior Secured Notes due 2019 | Hughes Satellite Systems Corporation (HSSC) | |||||||
Debt and Capital Lease Obligations | |||||||
Principal amount of debt issuance | $ 1,100,000,000 | ||||||
Issue price as percent of principal | 100.00% | ||||||
Outstanding principal balance | $ 990,000,000 | ||||||
Debt redemption price as a percentage of the principal amount | 103.00% | 100.00% | |||||
Debt redeemed | $ 110,000,000 | ||||||
Loss from partial redemption of debt | 5,000,000 | ||||||
Redemption premium | 3,300,000 | ||||||
Write off of related unamortized debt issuance costs | $ 1,700,000 | ||||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | ||||||
Percent of debt holders required to call debt | 25.00% | ||||||
7 5/8% Senior Unsecured Notes due 2021 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 7.625% | ||||||
7 5/8% Senior Unsecured Notes due 2021 | Hughes Satellite Systems Corporation (HSSC) | |||||||
Debt and Capital Lease Obligations | |||||||
Principal amount of debt issuance | $ 900,000,000 | ||||||
Issue price as percent of principal | 100.00% | ||||||
Outstanding principal balance | $ 900,000,000 | ||||||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | ||||||
Percent of debt holders required to call debt | 25.00% | ||||||
5 1/4% Senior Secured Notes due 2026 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 5.25% | ||||||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | ||||||
Percent of debt holders required to call debt | 25.00% | ||||||
5 1/4% Senior Secured Notes due 2026 | Prior to August 1, 2020 | |||||||
Debt and Capital Lease Obligations | |||||||
Debt redemption price as a percentage of the principal amount | 103.00% | ||||||
Potential annual redemption, as a percentage of amount outstanding | 10.00% | ||||||
5 1/4% Senior Secured Notes due 2026 | Prior to August 1, 2019 | |||||||
Debt and Capital Lease Obligations | |||||||
Debt redemption price as a percentage of the principal amount | 105.25% | ||||||
Potential redemption as a percentage of principal | 35.00% | ||||||
5 1/4% Senior Secured Notes due 2026 | Hughes Satellite Systems Corporation (HSSC) | |||||||
Debt and Capital Lease Obligations | |||||||
Principal amount of debt issuance | $ 750,000,000 | ||||||
Issue price as percent of principal | 100.00% | ||||||
6 5/8% Senior Unsecured Notes due 2026 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 6.625% | ||||||
6 5/8% Senior Unsecured Notes due 2026 | Prior to August 1, 2019 | |||||||
Debt and Capital Lease Obligations | |||||||
Debt redemption price as a percentage of the principal amount | 106.625% | ||||||
Potential redemption as a percentage of principal | 35.00% | ||||||
6 5/8% Senior Unsecured Notes due 2026 | Hughes Satellite Systems Corporation (HSSC) | |||||||
Debt and Capital Lease Obligations | |||||||
Principal amount of debt issuance | $ 750,000,000 | ||||||
Issue price as percent of principal | 100.00% | ||||||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | ||||||
Percent of debt holders required to call debt | 25.00% | ||||||
2026 Senior Secured and Unsecured Notes | |||||||
Debt and Capital Lease Obligations | |||||||
Debt Instrument, Unregistered Note, Percentage Exchanged For Registered Note | 99.98% | ||||||
Payments of debt issuance costs | $ (7,500,000) | ||||||
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 6.50% | ||||||
Outstanding principal balance | $ 990,000,000 | $ 990,000,000 | |||||
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 5.25% | ||||||
Outstanding principal balance | $ 750,000,000 | 750,000,000 | |||||
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | Hughes Satellite Systems Corporation (HSSC) | |||||||
Debt and Capital Lease Obligations | |||||||
Outstanding principal balance | $ 750,000,000 | ||||||
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | |||||||
Debt and Capital Lease Obligations | |||||||
Interest rate | 6.625% | ||||||
Outstanding principal balance | $ 750,000,000 | $ 750,000,000 |
Debt and Capital Lease Obliga70
Debt and Capital Lease Obligations - Capital Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum lease payments under capital lease obligations, together with the present value of the net minimum lease payments | |||
2,018 | $ 93,038 | ||
2,019 | 88,739 | ||
2,020 | 88,496 | ||
2,021 | 84,371 | ||
2,022 | 63,622 | ||
Thereafter | 110,880 | ||
Total minimum lease payments | 529,146 | ||
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | (162,404) | ||
Net minimum lease payments | 366,742 | ||
Less: Amount representing interest | (97,041) | ||
Present value of net minimum lease payments | 269,701 | ||
Less: Current portion | (40,631) | ||
Long-term portion of capital lease obligations | 229,070 | ||
Sublease rental income | 132,400 | $ 132,400 | $ 132,400 |
Future minimum sublease rental income | $ 348,500 | ||
Weighted-average | |||
Future minimum lease payments under capital lease obligations, together with the present value of the net minimum lease payments | |||
Sublease remaining term | 3 years | ||
Capital lease obligations | Minimum | |||
Capital lease obligation | |||
Effective interest rate | 6.00% | ||
Capital lease obligations | Maximum | |||
Capital lease obligation | |||
Effective interest rate | 11.20% | ||
Capital lease obligations | Weighted-average | |||
Capital lease obligation | |||
Weighted average interest rate | 10.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of income (loss) from continuing operations before income taxes | ||||
Domestic | $ 146,383,000 | $ 236,200,000 | $ 140,738,000 | |
Foreign | (45,689,000) | (19,574,000) | (1,411,000) | |
Income from continuing operations before income taxes | 100,694,000 | 216,626,000 | 139,327,000 | |
Current benefit (provision): | ||||
Federal | (8,652,000) | (19,385,000) | 0 | |
State | (1,237,000) | 267,000 | (8,926,000) | |
Foreign | (2,335,000) | (2,481,000) | (4,470,000) | |
Total current benefit (provision) | (12,224,000) | (21,599,000) | (13,396,000) | |
Deferred benefit (provision): | ||||
Federal | 299,693,000 | (58,250,000) | (42,659,000) | |
State | 2,356,000 | (6,232,000) | 3,285,000 | |
Foreign | (5,539,000) | 5,827,000 | 1,535,000 | |
Total deferred benefit (provision) | 296,510,000 | (58,655,000) | (37,839,000) | |
Total income tax benefit (provision), net | $ 284,286,000 | $ (80,254,000) | $ (51,235,000) | |
Actual tax provision reconciliation to the amounts computed by applying statutory federal tax rate to income (loss) from continuing operations before taxes | ||||
Statutory rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of Federal benefit | (12.20%) | 5.00% | 3.80% | |
Permanent differences | (0.30%) | 1.40% | 1.70% | |
Tax credits | (8.10%) | (4.20%) | (8.40%) | |
Valuation allowance | 4.60% | (0.30%) | 1.40% | |
Enactment of Tax Cuts and Job Act of 2017 | (301.40%) | 0.00% | 0.00% | |
Other | 0.10% | 0.10% | 3.30% | |
Total effective tax rate | (282.30%) | 37.00% | 36.80% | |
Deferred tax assets: | ||||
Net operating losses, credit and other carryforwards | $ 278,540,000 | $ 278,540,000 | $ 178,925,000 | |
Unrealized losses on investments, net | 22,260,000 | 22,260,000 | 47,737,000 | |
Accrued expenses | 23,583,000 | 23,583,000 | 39,596,000 | |
Stock-based compensation | 9,148,000 | 9,148,000 | 14,389,000 | |
Other assets | 11,890,000 | 11,890,000 | 15,008,000 | |
Total deferred tax assets | 345,421,000 | 345,421,000 | 295,655,000 | |
Valuation allowance | (66,886,000) | (66,886,000) | (75,372,000) | |
Deferred tax assets after valuation allowance | 278,535,000 | 278,535,000 | 220,283,000 | |
Deferred tax liabilities: | ||||
Depreciation and amortization | (708,599,000) | (708,599,000) | (962,838,000) | |
Other liabilities | (1,509,000) | (1,509,000) | (1,319,000) | |
Total deferred tax liabilities | (710,108,000) | (710,108,000) | (964,157,000) | |
Total net deferred tax liabilities | (431,573,000) | (431,573,000) | (743,874,000) | |
Net operating loss carryforwards | 798,500,000 | 798,500,000 | ||
Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 0 | 0 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 303,500,000 | 303,500,000 | ||
Change in allowance for foreign tax credit carryover as result of the Tax Cuts and Jobs Act | 0 | |||
Tax on deemed mandatory repatriation of unrepatriated foreign earnings as result of Tax Cuts and Jobs Act | 0 | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Balance as of beginning of period | 63,502,000 | 62,366,000 | $ 44,839,000 | |
Additions based on tax positions related to the current year | 1,116,000 | 2,132,000 | 11,748,000 | |
Additions based on tax positions related to prior years | 258,000 | 3,000 | 5,779,000 | |
Reductions based on tax positions related to prior years | (852,000) | (734,000) | 0 | |
Reductions based on tax settlements | 0 | (265,000) | 0 | |
Reductions based on expirations of statute of limitations | (728,000) | 0 | 0 | |
Balance as of end of period | 63,296,000 | 63,296,000 | 63,502,000 | $ 62,366,000 |
Unrecognized tax benefits if recognized, could affect our effective tax rate | 63,300,000 | 63,300,000 | $ 63,500,000 | |
Foreign | ||||
Deferred tax liabilities: | ||||
Net operating loss carryforwards | 168,400,000 | 168,400,000 | ||
Federal | ||||
Deferred tax liabilities: | ||||
Tax credit available to offset future tax liabilities | 126,200,000 | 126,200,000 | ||
State | ||||
Deferred tax liabilities: | ||||
Tax credit available to offset future tax liabilities | $ 84,000,000 | $ 84,000,000 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Common Stock (Details) | 12 Months Ended | |||
Dec. 31, 2017sharesvote$ / shares | Dec. 31, 2016$ / sharesshares | Mar. 01, 2014shares | Feb. 28, 2014$ / sharesshares | |
Class A common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 1 | |||
Common stock, shares outstanding (in shares) | 48,131,541 | 46,711,147 | ||
Class B common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 10 | |||
Number of shares of Class A common stock into which each share of common stock is convertible | 1 | |||
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 | ||
Class C common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 1 | |||
Votes per share in event of change of control | vote | 10 | |||
Number of shares of Class A common stock into which each share of common stock is convertible | 1 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | ||
Class D common stock | ||||
Stockholders Equity (Deficit) | ||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||
Hughes Retail Preferred Tracking Stock | ||||
Stockholders Equity (Deficit) | ||||
Preferred stock, shares authorized (in shares) | 0 | 13,000,000 | 13,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued (in shares) | 0 | 6,290,499 | ||
Hughes Retail Preferred Tracking Stock | DISH Network | ||||
Stockholders Equity (Deficit) | ||||
Preferred stock, shares issued (in shares) | 6,290,499 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchase Program (Details) - Class A common stock - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock Repurchase Program | |||
Amount of shares authorized for repurchase | $ 500,000,000 | ||
Number of common stock shares repurchased | 0 | 0 | 0 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 months | ||
Class A common stock | |||
Employee benefit plans | |||
Number of common stock available for future grant under stock incentive plans (in shares) | 8,100,000 | ||
Class A common stock | Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Number of shares authorized for issue | 5,000,000 | ||
Number of common stock available for future grant under stock incentive plans (in shares) | 2,700,000 | ||
Maximum allowed purchase under the ESPP | $ 25,000 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85.00% | ||
Number of shares of common stock purchased under ESPP | 176,000 | 227,000 | 228,000 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Employee Savings Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EchoStar 401(k) Plan | |||
Employee benefit plans | |||
Contribution limit per employee, as a percentage of eligible compensation | 75.00% | ||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 6.00% | ||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 7,500 | ||
Vesting percentage of matching contributions to eligible employees per year | 20.00% | ||
Vesting percentage of matching contributions to eligible employees after specified period of service | 100.00% | ||
Eligibility for employer matching contributions, period of service | 5 years | ||
EchoStar 401(k) Plan | Class A common stock | |||
Employee benefit plans | |||
Matching contributions made by the company during the year | $ 5,100,000 | $ 5,900,000 | $ 5,600,000 |
Discretionary contributions, net of forfeitures, fair value, under 401(k) plan | $ 6,700,000 | $ 8,000,000 | $ 7,700,000 |
Discretionary contributions, Shares, under 401(k) plan | 130,000 | 210,500 | 151,000 |
Roth 401(k) Plan | |||
Employee benefit plans | |||
Contribution limit per employee, as a percentage of eligible compensation | 75.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans (Details) - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class A common stock | ||||
Stock-Based Compensation | ||||
Number of common stock available for future grant under stock incentive plans (in shares) | 8,100,000 | |||
Employee And Non Employee Stock Option [Member] | ||||
Stock-Based Compensation | ||||
Shares outstanding under stock incentive plans (in shares) | 4,951,256 | 5,968,763 | 5,893,241 | 6,669,614 |
Non-Employee Stock Option [Member] | Maximum | ||||
Stock-Based Compensation | ||||
Expiration term | 5 years | |||
Employee Stock Options | Minimum | ||||
Stock-Based Compensation | ||||
Vesting period | 3 years | |||
Employee Stock Options | Maximum | ||||
Stock-Based Compensation | ||||
Expiration term | 10 years | |||
Vesting period | 5 years |
Stock-Based Compensation - Exer
Stock-Based Compensation - Exercise Prices for Stock Options (Details) - Employee And Non Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Exercise prices for stock options outstanding and exercisable: | |
Number of stock options outstanding (in shares) | shares | 4,951,256 |
Options outstanding, Weighted-average remaining contractual term | 6 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 41.42 |
Number of stock options exercisable (in shares) | shares | 3,143,656 |
Options exercisable, Weighted-average remaining contractual life | 4 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 36.98 |
Range of Exercise Prices $0.00 - $20.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 0 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 20 |
Number of stock options outstanding (in shares) | shares | 57,359 |
Options outstanding, Weighted-average remaining contractual term | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 18.63 |
Number of stock options exercisable (in shares) | shares | 57,359 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 18.63 |
Range of Exercise Prices $20.01 - $25.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 20.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 25 |
Number of stock options outstanding (in shares) | shares | 438,614 |
Options outstanding, Weighted-average remaining contractual term | 2 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 20.18 |
Number of stock options exercisable (in shares) | shares | 438,614 |
Options exercisable, Weighted-average remaining contractual life | 2 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 20.18 |
Range of Exercise Prices $25.01 - $30.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 25.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 30 |
Number of stock options outstanding (in shares) | shares | 10,210 |
Options outstanding, Weighted-average remaining contractual term | 2 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 27.95 |
Number of stock options exercisable (in shares) | shares | 10,210 |
Options exercisable, Weighted-average remaining contractual life | 2 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 27.95 |
Range of Exercise Prices $30.01 - $35.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 30.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 35 |
Number of stock options outstanding (in shares) | shares | 352,500 |
Options outstanding, Weighted-average remaining contractual term | 5 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 34.22 |
Number of stock options exercisable (in shares) | shares | 352,500 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 34.22 |
Range of Exercise Prices $35.01 - $40.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 35.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 40 |
Number of stock options outstanding (in shares) | shares | 2,019,000 |
Options outstanding, Weighted-average remaining contractual term | 5 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 38.20 |
Number of stock options exercisable (in shares) | shares | 1,643,000 |
Options exercisable, Weighted-average remaining contractual life | 4 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 38.03 |
Range of Exercise Prices $40.01 to $45.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 40.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 45 |
Number of stock options outstanding (in shares) | shares | 254,000 |
Options outstanding, Weighted-average remaining contractual term | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 43.93 |
Number of stock options exercisable (in shares) | shares | 33,200 |
Options exercisable, Weighted-average remaining contractual life | 8 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 43.93 |
Range of Exercise Prices $45.01 to $50.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 45.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 50 |
Number of stock options outstanding (in shares) | shares | 807,173 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 47.57 |
Number of stock options exercisable (in shares) | shares | 428,773 |
Options exercisable, Weighted-average remaining contractual life | 6 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 47.68 |
Range of Exercise Prices $50.01 and above | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 50.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 55 |
Number of stock options outstanding (in shares) | shares | 354,900 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 51.98 |
Number of stock options exercisable (in shares) | shares | 150,000 |
Options exercisable, Weighted-average remaining contractual life | 7 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 52.05 |
Range Of Exercise Prices From Dollars 55.01 To 60.00 [Member] | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 55.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 60 |
Number of stock options outstanding (in shares) | shares | 595,000 |
Options outstanding, Weighted-average remaining contractual term | 9 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 56.95 |
Number of stock options exercisable (in shares) | shares | 10,000 |
Options exercisable, Weighted-average remaining contractual life | 4 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 56.95 |
Range Of Exercise Prices From Dollars 60.01 And Above [Member] | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 60.01 |
Number of stock options outstanding (in shares) | shares | 62,500 |
Options outstanding, Weighted-average remaining contractual term | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 60.70 |
Number of stock options exercisable (in shares) | shares | 20,000 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 60.70 |
Stock-Based Compensation - St78
Stock-Based Compensation - Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 24, 2017 | Apr. 01, 2017 | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Stock Options | ||||||
Stock option activity | ||||||
Granted (in shares) | 1,100,000 | |||||
Share-based compensation additional disclosures | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 600,000 | |||||
Employee And Non Employee Stock Option [Member] | ||||||
Stock option activity | ||||||
Total options outstanding, beginning of period (in shares) | 5,968,763 | 5,893,241 | 6,669,614 | |||
Granted (in shares) | 1,262,500 | 732,000 | 929,000 | |||
Exercised (in shares) | (1,018,507) | (453,182) | (894,071) | |||
Forfeited and canceled (in shares) | (1,261,500) | (203,296) | (811,302) | |||
Total options outstanding, end of period (in shares) | 4,951,256 | 5,968,763 | 5,893,241 | |||
Exercisable at end of period (in shares) | 3,143,656 | 3,551,063 | 3,082,241 | |||
Weighted-Average Exercise Price | ||||||
Total options outstanding, beginning of period (in dollars per share) | $ 39.30 | $ 38.38 | $ 34.02 | |||
Granted (in dollars per share) | 57.12 | 41.86 | 51.59 | |||
Exercised (in dollars per share) | 35.84 | 28.83 | 27.78 | |||
Forfeited and canceled (in dollars per share) | 51.63 | 45.15 | 29.45 | |||
Total options outstanding, end of period (in dollars per share) | 41.42 | 39.30 | 38.38 | |||
Exercisable at end of period (in dollars per share) | $ 36.98 | $ 35.40 | $ 32.61 | |||
Share-based compensation additional disclosures | ||||||
Tax benefits from stock options exercised | $ 3.1 | $ 2 | $ 6.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 19.6 | $ 7.9 | $ 14.7 | |||
Restricted stock units | ||||||
Restricted stock unit activity | ||||||
Total restricted stock units outstanding, beginning of period (in shares) | 6,667 | 57,328 | 96,768 | |||
Granted (in shares) | 0 | 0 | 100,000 | |||
Vested (in shares) | (6,667) | (50,661) | (83,992) | |||
Forfeited and canceled (in shares) | 0 | 0 | (55,448) | |||
Total restricted stock units outstanding, end of period (in shares) | 0 | 6,667 | 57,328 | |||
Weighted - Average Grant Date Fair Value | ||||||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 34.22 | $ 42.31 | $ 29.29 | |||
Granted (in dollars per share) | 0 | 0 | 50 | |||
Vested (in dollars per share) | 34.22 | 43.38 | 45.72 | |||
Forfeited and canceled (in dollars per share) | 0 | 0 | 27.01 | |||
Total restricted stock units outstanding, end of period (in dollars per share) | $ 0 | $ 34.22 | $ 42.31 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0.2 | $ 2.2 | $ 3.8 | |||
Restricted stock units | Vesting Based On Performance Measurements | ||||||
Restricted stock unit activity | ||||||
Granted (in shares) | 100,000 | |||||
Vested (in shares) | (33,334) | (66,666) | ||||
Restricted Performance Units | ||||||
Restricted stock unit activity | ||||||
Total restricted stock units outstanding, beginning of period (in shares) | 0 | 33,334 | ||||
Total restricted stock units outstanding, end of period (in shares) | 0 | 0 | 33,334 | |||
Weighted - Average Grant Date Fair Value | ||||||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 0 | $ 50 | ||||
Total restricted stock units outstanding, end of period (in dollars per share) | $ 0 | $ 0 | $ 50 |
Stock-Based Compensation - St79
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation | |||
Total stock-based compensation | $ 11,640 | $ 10,911 | $ 17,127 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 3,900 | 3,700 | 8,300 |
Stock-Based Compensation | |||
Unrecognized compensation expense | $ 20,200 | ||
Future forfeiture rate (as a percent) | 2.00% | ||
Period for recognition of compensation cost | 2 years | ||
Research and development expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 1,010 | 1,046 | 1,420 |
Selling, general and administrative expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 10,630 | $ 9,865 | $ 15,707 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation of Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||
Aggregate intrinsic value of stock options outstanding | $ 91.5 | ||
Aggregate intrinsic value of stock options exercisable | $ 72.1 | ||
Employee And Non Employee Stock Option [Member] | |||
Black-Scholes option valuation model assumptions | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee And Non Employee Stock Option [Member] | Minimum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 1.98% | 1.10% | 1.38% |
Volatility factor | 24.20% | 27.22% | 27.16% |
Expected term of options | 5 years 8 months 24 days | 5 years 8 months 24 days | 5 years 3 months 18 days |
Weighted-average grant-date fair value (in dollars per share) | $ 15.25 | $ 11.15 | $ 12.25 |
Employee And Non Employee Stock Option [Member] | Maximum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 2.05% | 1.87% | 1.80% |
Volatility factor | 26.69% | 27.37% | 27.85% |
Expected term of options | 5 years 9 months 24 days | 5 years 9 months 24 days | 5 years 4 months 24 days |
Weighted-average grant-date fair value (in dollars per share) | $ 16.49 | $ 12.49 | $ 15.05 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Contractual Obligations [Line Items] | |
2,018 | $ 646,959 |
2,019 | 1,396,903 |
2,020 | 346,746 |
2,021 | 1,152,418 |
2,022 | 262,266 |
Thereafter | 2,098,580 |
Total | 5,903,872 |
Long-term debt | |
Contractual Obligations [Line Items] | |
2,018 | 0 |
2,019 | 990,000 |
2,020 | 0 |
2,021 | 900,000 |
2,022 | 0 |
Thereafter | 1,500,000 |
Total | 3,390,000 |
Capital lease obligations | |
Contractual Obligations [Line Items] | |
2,018 | 40,631 |
2,019 | 40,740 |
2,020 | 45,096 |
2,021 | 46,450 |
2,022 | 31,985 |
Thereafter | 64,799 |
Total | 269,701 |
Interest on long-term debt and capital lease obligations | |
Contractual Obligations [Line Items] | |
2,018 | 248,840 |
2,019 | 212,466 |
2,020 | 175,899 |
2,021 | 136,730 |
2,022 | 98,282 |
Thereafter | 363,100 |
Total | 1,235,317 |
Satellite-related obligations | |
Contractual Obligations [Line Items] | |
2,018 | 342,065 |
2,019 | 139,312 |
2,020 | 111,662 |
2,021 | 57,691 |
2,022 | 124,411 |
Thereafter | 148,769 |
Total | 923,910 |
Operating lease obligations | |
Contractual Obligations [Line Items] | |
2,018 | 15,423 |
2,019 | 14,385 |
2,020 | 14,089 |
2,021 | 11,547 |
2,022 | 7,588 |
Thereafter | 21,912 |
Total | $ 84,944 |
Commitments and Contingencies82
Commitments and Contingencies - Satellite Leases and Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Satellite-related expenses | $ 139.9 | $ 144.2 | $ 212.5 |
Total rent expense | $ 29.8 | $ 21.1 | $ 17.9 |
Commitments and Contingencies83
Commitments and Contingencies - Contingencies (Details) shares in Millions, $ in Millions | Aug. 07, 2017USD ($) | Feb. 14, 2017patent | Mar. 31, 2011shares | Dec. 31, 2017USD ($)claim |
Breach of fiduciary duties | ||||
Commitment and Contingencies | ||||
Stock option grants attempted (in shares) | shares | 1.5 | |||
Elbit [Member] | ||||
Commitment and Contingencies | ||||
Litigation Settlement, Expense | $ | $ 2.5 | |||
Elbit [Member] | Hughes Satellite Systems Corporation (HSSC) | Hughes Network Systems [Member] | ||||
Commitment and Contingencies | ||||
Loss Contingency, Damages Awarded, Value | $ | $ 21.1 | $ 27 | ||
Realtime Data LLC [Member] | ||||
Commitment and Contingencies | ||||
Loss Contingency, Invalidated Claims, Number | claim | 2 | |||
Number of pending claims | claim | 4 | |||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 4 |
Segment Reporting - Reporting S
Segment Reporting - Reporting Segments (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Reporting - Revenue, Ca
Segment Reporting - Revenue, Capital Expenditures, and EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting | |||||||||||
Total revenue | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 475,788 | $ 460,046 | $ 442,658 | $ 431,974 | $ 1,885,508 | $ 1,810,466 | $ 1,848,857 |
EBITDA | 794,577 | 751,005 | 715,739 | ||||||||
Capital expenditures (1) | 566,384 | 628,510 | 652,927 | ||||||||
Interest income and expense, net | (172,621) | (102,237) | (111,607) | ||||||||
Depreciation and amortization | (522,190) | (432,904) | (460,819) | ||||||||
Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests | 928 | 762 | (3,986) | ||||||||
Income from continuing operations before income taxes | 100,694 | 216,626 | 139,327 | ||||||||
Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Hughes segment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,476,131 | 1,389,152 | 1,344,945 | ||||||||
Hughes segment | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,787 | 3,209 | 2,395 | ||||||||
Hughes segment | Operating segments | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,477,918 | 1,392,361 | 1,347,340 | ||||||||
EBITDA | 475,222 | 477,165 | 444,342 | ||||||||
Capital expenditures (1) | 376,502 | 322,362 | 285,499 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 390,831 | 406,970 | 489,842 | ||||||||
EchoStar Satellite Services segment | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,413 | 690 | 749 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 392,244 | 407,660 | 490,591 | ||||||||
EBITDA | 315,285 | 341,516 | 414,727 | ||||||||
Capital expenditures (1) | 20,725 | 58,925 | 101,215 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 18,546 | 14,344 | 14,070 | ||||||||
Corporate and Other | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | (3,200) | (3,899) | (3,144) | ||||||||
Corporate and Other | Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 15,346 | 10,445 | 10,926 | ||||||||
EBITDA | 4,070 | (67,676) | (143,330) | ||||||||
Capital expenditures (1) | $ 169,157 | $ 247,223 | $ 266,213 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographic Information | |||||||||||
Long-lived assets | $ 4,565,535 | $ 4,527,735 | $ 4,565,535 | $ 4,527,735 | |||||||
Total revenue | 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | 475,788 | $ 460,046 | $ 442,658 | $ 431,974 | 1,885,508 | 1,810,466 | $ 1,848,857 |
United States | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 4,193,432 | 4,214,575 | 4,193,432 | 4,214,575 | |||||||
Total revenue | 1,522,421 | 1,480,339 | 1,528,352 | ||||||||
Canada and Mexico | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 28,360 | 16,630 | 28,360 | 16,630 | |||||||
Total revenue | 89,928 | 86,236 | 67,648 | ||||||||
All other | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | $ 343,743 | $ 296,530 | 343,743 | 296,530 | |||||||
Total revenue | $ 273,159 | $ 243,891 | $ 252,857 |
Segment Reporting - Transaction
Segment Reporting - Transactions with Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 475,788 | $ 460,046 | $ 442,658 | $ 431,974 | $ 1,885,508 | $ 1,810,466 | $ 1,848,857 |
Hughes segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,476,131 | 1,389,152 | 1,344,945 | ||||||||
Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,477,918 | 1,392,361 | 1,347,340 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 390,831 | 406,970 | 489,842 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 392,244 | 407,660 | 490,591 | ||||||||
DISH Network | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 445,988 | $ 472,282 | $ 542,914 | ||||||||
DISH Network | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 23.70% | 26.10% | 29.40% | ||||||||
DISH Network | Corporate and Other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 18,522 | $ 15,433 | $ 14,268 | ||||||||
DISH Network | Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 82,625 | 107,300 | 105,181 | ||||||||
DISH Network | EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 344,841 | 349,549 | 423,465 | ||||||||
All other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 1,439,520 | $ 1,338,184 | $ 1,305,943 | ||||||||
All other | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 76.30% | 73.90% | 70.60% |
Quarterly Financial Data (Una88
Quarterly Financial Data (Unaudited) - Summary of Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 475,788 | $ 460,046 | $ 442,658 | $ 431,974 | $ 1,885,508 | $ 1,810,466 | $ 1,848,857 |
Operating income (1) | 42,352 | 56,414 | 45,890 | 51,651 | 78,400 | 76,602 | 75,431 | 65,730 | 196,307 | 296,163 | 273,765 |
Net income (loss) | 313,814 | 35,201 | 7,122 | 37,352 | 38,930 | 37,410 | 55,909 | 48,443 | 393,489 | 180,692 | 149,371 |
Net income attributable to EchoStar common stock | $ 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ 38,222 | $ 36,644 | $ 56,133 | $ 50,674 | $ 393,770 | $ 181,673 | $ 163,700 |
Basic earnings per share (in dollars) | $ 3.29 | $ 0.36 | $ 0.07 | $ 0.41 | $ 0.41 | $ 0.39 | $ 0.60 | $ 0.54 | $ 4.13 | $ 1.94 | $ 1.77 |
Diluted earnings per share (in dollars) | $ 3.23 | $ 0.36 | $ 0.07 | $ 0.41 | $ 0.40 | $ 0.39 | $ 0.60 | $ 0.54 | $ 4.07 | $ 1.92 | $ 1.75 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 303,500 | $ 303,500 | |||||||||
Gains (losses) related to trading securities | 22,800 | ||||||||||
Impairment of long-lived assets | $ 10,800 | $ 10,762 | $ 0 | $ 0 |
Related Party Transactions - DI
Related Party Transactions - DISH Network (Details) $ in Millions | Mar. 02, 2014 | Feb. 28, 2022 | Dec. 31, 2017 | Aug. 31, 2017 | May 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Jul. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2012 | Oct. 31, 2012 | May 31, 2012 | Sep. 30, 2009transponder | Nov. 30, 2008transponder | Dec. 31, 2017term | Dec. 31, 2009 | Feb. 28, 2013transponder | Mar. 31, 2012 | Sep. 30, 2010USD ($) |
Hughes Broadband Distribution Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | ||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||
DISH Network | RUS Service Implementation Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Grants receivable by related parties | $ | $ 14.1 | ||||||||||||||||||
DISH Network | DISH Nimiq 5 Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||
DISH Network | TT&C Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||
Agreement term | 1 month | 1 year | |||||||||||||||||
DISH Network | TerreStar Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 21 days | ||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | ||||||||||||||||||
DISH Network | DBSD North America Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 120 days | ||||||||||||||||||
Required minimum notice for termination of agreement | 21 days | ||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | ||||||||||||||||||
DISH Network | Amended and Restated Professional Services Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Required minimum notice for termination of agreement | 60 days | ||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||
Required minimum notice for termination of individual service | 30 days | ||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Term of renewal option | 4 years | 3 years | |||||||||||||||||
Number of successive three year renewal options | term | 4 | ||||||||||||||||||
Related Party Transactions Agreement, Termination Notice Required by Reporting Entity | 180 days | ||||||||||||||||||
DISH Network | Subsequent Event | DBSD North America Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | ||||||||||||||||||
Automatic renewal period | 5 years | ||||||||||||||||||
Hughes Retail Group | Hughes Retail Preferred Tracking Stock | DISH Network | Satellite and Tracking Stock Transaction | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Percentage of economic interest held | 80.00% | ||||||||||||||||||
Telesat Canada [Member] | TeleSat Transponder Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 15 years | ||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||
Ciel Satellite Holdings Inc [Member] | DISH Network | 103 Spectrum Development Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||
Maximum | DISH Network | Collocation and Antenna Space Agreements [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity | 120 days | ||||||||||||||||||
Minimum | DISH Network | Collocation and Antenna Space Agreements [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity | 90 days | ||||||||||||||||||
QuetzSat-1 | DISH Network | Transponder Service Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Number of DBS transponders currently receiving services | 24 | ||||||||||||||||||
Number of DBS transponders receiving certain satellite services from related party | 5 | ||||||||||||||||||
QuetzSat-1 | S E S Latin America [Member] | Satellite Services Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||
Number of DBS transponders expected to receive services | 32 | ||||||||||||||||||
EchoStar VII | DISH Network | Satellite Services Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||
EchoStar XVI | DISH Network | Transponder Service Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 1 year | 10 years | |||||||||||||||||
Agreement term from commencement of service date | 4 years | ||||||||||||||||||
Renewal option reduction | 1 year | ||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Services Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||
Additional term of renewal option | 5 years | ||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] | DISH Network | 100 Inverness Lease Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | ||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] | DISH Network | Meridian Lease Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 1 year | 1 year | |||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] | DISH Network | Santa Fe Lease Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 1 year | 1 year | |||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] | DISH Network | Cheyenne Lease Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate [Member] | DISH Network | Gilbert Lease Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
Related Party Transactions Agreement, Maximum Number of One Year Renewal Options | term | 13 | ||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate [Member] | DISH Network | Cheyenne Lease Agreement | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
Related Party Transactions Agreement, Maximum Number of One Year Renewal Options | term | 13 | ||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate [Member] | DISH Network | American Fork Occupancy License Agreement [Member] | |||||||||||||||||||
Related party transactions | |||||||||||||||||||
Agreement term | 5 years |
Related Party Transactions - Ta
Related Party Transactions - Tax Sharing and Patent Cross-License Agreements (Details) - DISH Network $ in Millions | Mar. 02, 2014USD ($)satellite | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016USD ($) | Oct. 31, 2016parcel | Dec. 31, 2011USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2017 | Oct. 01, 2013subsidiary |
Caltech | |||||||||
Related party transactions | |||||||||
Number of subsidiaries against lawsuit was filed | subsidiary | 2 | ||||||||
Satellite and Tracking Stock Transaction | |||||||||
Related party transactions | |||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 11.4 | ||||||||
Hughes Broadband Master Services Agreement [Member] | |||||||||
Related party transactions | |||||||||
Automatic renewal period | 1 year | ||||||||
Agreement term | 5 years | ||||||||
Contract Revenue Cost | $ 29.3 | ||||||||
Patent Cross-License Agreements | |||||||||
Related party transactions | |||||||||
Maximum aggregate payments required under cross license agreements | $ 10 | ||||||||
Maximum additional aggregate payments required under cross license agreements if options are exercised | $ 3 | ||||||||
Orange New Jersey | |||||||||
Related party transactions | |||||||||
Number of parcels sold | parcel | 2 | ||||||||
Subsequent Event | Hughes Broadband Master Services Agreement [Member] | |||||||||
Related party transactions | |||||||||
Required minimum notice for termination of agreement | 90 days | ||||||||
EchoStar Technologies segment | Share Exchange Agreement | |||||||||
Related party transactions | |||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | ||||||||
EchoStar and HSSC | Satellite and Tracking Stock Transaction | |||||||||
Related party transactions | |||||||||
Related Party Transactions Number of Owned Satellites Transferred | satellite | 5 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2008 | |
Related party transactions | |||||
Amount payable to related party | $ 4,753 | $ 1,072 | |||
Amount receivable from related party | 43,295 | 19,417 | |||
Hughes Systique Corporation | |||||
Related party transactions | |||||
Remaining balance of loan | $ 0 | ||||
Ownership interest in related party (as a percent) | 43.70% | ||||
Ownership percentage by related party | 25.70% | ||||
Repayment of loan | 600 | $ 1,500 | |||
Hughes Systique Corporation | HNS | |||||
Related party transactions | |||||
Amount agreed to be funded under term loan facility | $ 1,500 | ||||
Interest rate (as a percent) | 8.00% | 6.00% | |||
Dish Mexico | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 49.00% | ||||
Receivables from related party | $ 7,600 | 10,700 | |||
Revenue from Related Parties | $ 23,300 | 23,300 | 23,300 | ||
Deluxe | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 50.00% | ||||
Receivables from related party | $ 1,100 | 700 | |||
Revenue from Related Parties | 4,900 | $ 3,000 | $ 2,700 | ||
AsiaSat | |||||
Related party transactions | |||||
Payable to related party | 100 | ||||
Global IP Revenue [Member] | |||||
Related party transactions | |||||
Revenue from Related Parties | $ 300 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions - Discontinued Operations (Details) - Discontinued Operations [Member] $ in Millions | 1 Months Ended | ||||
Apr. 30, 2011USD ($)installment | Jan. 31, 2010 | Feb. 28, 2017 | Aug. 31, 2014 | Jul. 31, 2012 | |
NagraStar | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 50.00% | ||||
SmarDTV SA [Member] | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 22.50% | ||||
TiVo vs Dish Network And Echostar Corporation [Member] | DISH Network | |||||
Related party transactions | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 500 | ||||
Initial settlement amount paid | 300 | ||||
Litigation Settlement, Total Amount to be Paid Through Six Annual Installments | $ 200 | ||||
Litigation settlement, number of annual installments | installment | 6 | ||||
Portion of the $300 million initial settlement agreement payment paid by EchoStar | $ 10 | ||||
Loss Contingency, Estimated Percentage of Annual Payments, Payable by Entity | 5.00% | ||||
Sling TV Holding [Member] | DISH Network | |||||
Related party transactions | |||||
Ownership interest acquired by related party (as a percent) | 90.00% | 67.00% | |||
Percentage of Voting Interests Acquired by Related Party | 100.00% | ||||
EchoStar Corporation | Sling TV Holding [Member] | |||||
Related party transactions | |||||
Equity Method Investment Nonvoting Ownership Percentage | 10.00% | ||||
Equity interest, percentage in joint venture | 33.00% | ||||
D I S H Online. Com Services Agreement [Member] | DISH Network | |||||
Related party transactions | |||||
Agreement term | 2 years |
SCHEDULE II - VALUATION AND Q93
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 12,955 | $ 11,687 | $ 12,294 |
Charged to Costs and Expenses | 9,551 | 14,393 | 6,731 |
Deductions | (10,479) | (13,125) | (7,338) |
Balance at End of Year | $ 12,027 | $ 12,955 | $ 11,687 |