Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-33807 | |
Entity Registrant Name | EchoStar Corporation | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 26-1232727 | |
Entity Address, Address Line One | 100 Inverness Terrace East, | |
Entity Address, City or Town | Englewood, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112-5308 | |
City Area Code | (303) | |
Local Phone Number | 706-4000 | |
Title of 12(b) Security | Class A common stock | |
Security Exchange Name | NASDAQ | |
Trading Symbol | SATS | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001415404 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 37,228,906 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,687,039 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 889,199 | $ 535,894 |
Marketable investment securities | 634,593 | 1,010,496 |
Trade accounts receivable and contract assets, net | 199,306 | 182,063 |
Other current assets, net | 209,905 | 198,444 |
Total current assets | 1,933,003 | 1,926,897 |
Non-current assets: | ||
Property and equipment, net | 2,376,143 | 2,338,285 |
Operating lease right-of-use assets | 150,980 | 149,198 |
Goodwill | 535,394 | 511,086 |
Regulatory authorizations, net | 470,329 | 469,766 |
Other intangible assets, net | 17,792 | 13,984 |
Other investments, net | 350,318 | 297,747 |
Other non-current assets, net | 335,794 | 338,241 |
Total non-current assets | 4,236,750 | 4,118,307 |
Total assets | 6,169,753 | 6,045,204 |
Current liabilities: | ||
Trade accounts payable | 109,390 | 109,338 |
Contract liabilities | 138,201 | 141,343 |
Accrued expenses and other current liabilities | 176,083 | 209,442 |
Total current liabilities | 423,674 | 460,123 |
Non-current liabilities: | ||
Long-term debt, net | 1,496,185 | 1,495,994 |
Deferred tax liabilities, net | 430,808 | 403,684 |
Operating lease liabilities | 136,723 | 134,897 |
Other non-current liabilities | 124,450 | 136,426 |
Total non-current liabilities | 2,188,166 | 2,171,001 |
Total liabilities | 2,611,840 | 2,631,124 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 3,343,056 | 3,345,878 |
Accumulated other comprehensive income (loss) | (173,280) | (212,102) |
Accumulated earnings (losses) | 747,899 | 656,466 |
Treasury shares, at cost | (471,582) | (436,521) |
Total EchoStar Corporation stockholders' equity | 3,446,199 | 3,353,827 |
Non-controlling interests | 111,714 | 60,253 |
Total stockholders' equity | 3,557,913 | 3,414,080 |
Total liabilities and stockholders' equity | 6,169,753 | 6,045,204 |
Common Class A | ||
Stockholders' equity: | ||
Common stock | 58 | 58 |
Common Class B | ||
Stockholders' equity: | ||
Common stock | 48 | 48 |
Common Class C | ||
Stockholders' equity: | ||
Common stock | 0 | 0 |
Common Class D | ||
Stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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 |
Common Class A | ||
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) | 58,441,449 | 58,059,622 |
Common stock, shares outstanding (in shares) | 37,646,656 | 38,726,923 |
Common Class B | ||
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 |
Common Class C | ||
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 |
Common Class D | ||
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, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Total revenue | $ 501,534 | $ 482,582 |
Costs and expenses: | ||
Selling, general and administrative expenses | 118,170 | 114,119 |
Research and development expenses | 7,617 | 7,545 |
Depreciation and amortization | 120,436 | 129,286 |
Impairment of long-lived assets | 0 | 230 |
Total costs and expenses | 456,466 | 429,120 |
Operating income (loss) | 45,068 | 53,462 |
Other income (expense): | ||
Interest income, net | 6,422 | 5,949 |
Interest expense, net of amounts capitalized | (14,973) | (34,667) |
Gains (losses) on investments, net | 80,686 | 78,600 |
Equity in earnings (losses) of unconsolidated affiliates, net | (1,714) | 1,374 |
Foreign currency transaction gains (losses), net | 6,394 | (4,069) |
Other, net | (156) | (930) |
Total other income (expense), net | 76,659 | 46,257 |
Income (loss) before income taxes | 121,727 | 99,719 |
Income tax benefit (provision), net | (32,782) | (22,147) |
Net income (loss) | 88,945 | 77,572 |
Less: Net loss (income) attributable to non-controlling interests | 2,488 | 947 |
Net income (loss) attributable to EchoStar Corporation common stock | $ 91,433 | $ 78,519 |
Earnings (losses) per share - Class A and B common stock: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.07 | $ 0.84 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.06 | $ 0.84 |
Services and other revenue | ||
Total revenue | $ 418,811 | $ 430,337 |
Costs and expenses: | ||
Cost of sales | 141,129 | 132,789 |
Equipment revenue | ||
Total revenue | 82,723 | 52,245 |
Costs and expenses: | ||
Cost of sales | $ 69,114 | $ 45,151 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 88,945 | $ 77,572 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 48,945 | (26,197) |
Unrealized gains (losses) on available-for-sale securities | (567) | (86) |
Other | 0 | (6,920) |
Amounts reclassified to net income (loss): | ||
Realized losses (gains) on available-for-sale debt securities | 0 | (7) |
Total other comprehensive income (loss), net of tax | 48,378 | (33,210) |
Comprehensive income (loss) | 137,323 | 44,362 |
Less: Comprehensive loss (income) attributable to non-controlling interests | (7,068) | 6,557 |
Comprehensive income (loss) attributable to EchoStar Corporation | $ 130,255 | $ 50,919 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Losses) | Treasury Shares, at cost | Non-controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 3,607,250 | $ 105 | $ 3,321,426 | $ (187,876) | $ 583,591 | $ (174,912) | $ 64,916 |
Issuances of Class A common stock: | |||||||
Employee benefits | 7,125 | 1 | 7,124 | ||||
Employee Stock Purchase Plan | 2,486 | 2,486 | |||||
Stock-based compensation | 2,011 | 2,011 | |||||
Contribution by non-controlling interest holder | 5,400 | 5,400 | |||||
Other comprehensive income (loss) | (33,210) | (27,600) | (5,610) | ||||
Net income (loss) | 77,572 | 78,519 | (947) | ||||
Treasury share repurchase | (110,769) | (110,769) | |||||
Ending balance at Mar. 31, 2021 | 3,557,865 | 106 | 3,333,047 | (215,476) | 662,110 | (285,681) | 63,759 |
Beginning balance at Dec. 31, 2021 | 3,414,080 | 106 | 3,345,878 | (212,102) | 656,466 | (436,521) | 60,253 |
Issuances of Class A common stock: | |||||||
Employee benefits | 7,041 | 7,041 | |||||
Employee Stock Purchase Plan | 2,367 | 2,367 | |||||
Stock-based compensation | 1,860 | 1,860 | |||||
Issuance of equity and contribution of assets pursuant to the India JV formation | 30,303 | (14,090) | 44,393 | ||||
Other comprehensive income (loss) | 48,378 | 38,822 | 9,556 | ||||
Net income (loss) | 88,945 | 91,433 | (2,488) | ||||
Treasury share repurchase | (35,061) | (35,061) | |||||
Ending balance at Mar. 31, 2022 | $ 3,557,913 | $ 106 | $ 3,343,056 | $ (173,280) | $ 747,899 | $ (471,582) | $ 111,714 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 88,945 | $ 77,572 |
Adjustments to reconcile net income (loss) to cash flows provided by (used for) operating activities: | ||
Depreciation and amortization | 120,436 | 129,286 |
Impairment of long-lived assets | 0 | 230 |
Losses (gains) on investments, net | (80,686) | (78,600) |
Equity in losses (earnings) of unconsolidated affiliates, net | 1,714 | (1,374) |
Foreign currency transaction losses (gains), net | (6,394) | 4,069 |
Deferred tax provision (benefit), net | 25,538 | 18,370 |
Stock-based compensation | 1,860 | 2,011 |
Amortization of debt issuance costs | 191 | 1,118 |
Other, net | (2,528) | 11,551 |
Changes in assets and liabilities, net: | ||
Trade accounts receivable and contract assets, net | (8,480) | (6,090) |
Other current assets, net | (3,340) | (1,736) |
Trade accounts payable | 7,046 | (18,375) |
Contract liabilities | (3,142) | 7,938 |
Accrued expenses and other current liabilities | (27,033) | (27,447) |
Non-current assets and non-current liabilities, net | (9,774) | (1,636) |
Net cash provided by (used for) operating activities | 104,353 | 116,887 |
Cash flows from investing activities: | ||
Purchases of marketable investment securities | (88,578) | (389,071) |
Sales and maturities of marketable investment securities | 492,812 | 1,361,632 |
Expenditures for property and equipment | (112,138) | (179,235) |
Expenditures for externally marketed software | (5,093) | (7,846) |
India JV formation | (7,892) | 0 |
Purchase of other investments | 0 | (50,000) |
Sales of other investments | 0 | 1,500 |
Net cash provided by (used for) investing activities | 279,111 | 736,980 |
Cash flows from financing activities: | ||
Repurchase and maturity of the 2021 Senior Unsecured Notes | 0 | (62,588) |
Payment of finance lease obligations | (85) | (329) |
Payment of in-orbit incentive obligations | (1,444) | (1,104) |
Proceeds from Class A common stock issued under the Employee Stock Purchase Plan | 2,367 | 2,486 |
Treasury share repurchase | (33,307) | (107,862) |
Contribution by non-controlling interest holder | 0 | 5,400 |
Other, net | 0 | (292) |
Net cash provided by (used for) financing activities | (32,469) | (164,289) |
Effect of exchange rates on cash and cash equivalents | 3,480 | (1,808) |
Net increase (decrease) in cash and cash equivalents | 354,475 | 687,770 |
Cash and cash equivalents, including restricted amounts, beginning of period | 536,874 | 896,812 |
Cash and cash equivalents, including restricted amounts, end of period | $ 891,349 | $ 1,584,582 |
Organization and Business Activ
Organization and Business Activities | 3 Months Ended |
Mar. 31, 2022 | |
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 “our”) is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada and has operated as a separately traded public company from DISH Network Corporation (“DISH”) since 2008. Our Class A common stock is publicly traded on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SATS.” We are an industry leader in both networking technologies and services, innovating to deliver the global solutions that power a connected future for people, enterprises and things everywhere. We provide broadband satellite technologies, broadband internet services for consumer customers, which include home and small to medium-sized businesses, and satellite services. We also deliver innovative network technologies, managed services and communications solutions for enterprise customers, which include aeronautical and government enterprises. We operate in the following two business segments: • Hughes segment — which provides broadband satellite technologies and broadband internet services to domestic and international consumer customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers and enterprise customers. The Hughes segment also designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment designs, develops, constructs and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and our enterprise customers. • Echostar Satellite Services segment (“ESS segment”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and/or occasional-use basis to U.S. government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, Information Technology, Finance, Accounting, Real Estate and Legal) and other activities, such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments, that have not been assigned to our business segments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other segment in our segment reporting. We also divide our operations by primary geographic market as follows: (i) North America (the U.S. and its territories, Mexico, and Canada); (ii) South and Central America and (iii) Other (Asia, Africa, Australia, Europe, India, and the Middle East). Refer to Note 15. Segment Reporting for further detail. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited Consolidated Financial Statements and the accompanying notes (collectively, the “Consolidated Financial Statements”) are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. However, our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. Refer to Note 2. Summary of Significant Accounting Policies to the Consolidated Financial Statements in our Form 10-K for a summary and discussion of our significant accounting policies, except as updated below. Use of Estimates We are required to make certain estimates and assumptions that affect the amounts reported in these Consolidated Financial Statements. The most significant estimates and assumptions are used in determining: (i) inputs used to recognize revenue over time, including amortization periods for deferred contract acquisition costs; (ii) allowances for doubtful accounts; (iii) deferred taxes and related valuation allowances, including uncertain tax positions; (iv) loss contingencies; (v) fair value of financial instruments; (vi) fair value of assets and liabilities acquired in business combinations; and (vii) asset impairment testing. 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 financial statements. Additionally, 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 thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods. Principles of Consolidation 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 in which we are the primary beneficiary and in other entities in which we own more than 50% 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 non-controlling interest within stockholders’ equity for the portion of the entity’s equity attributed to the non-controlling ownership interests. All significant intercompany balances and transactions have been eliminated in consolidation. Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted Accounting Standard Update (“ASU”) No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is part of the Financial Accounting Standards Board (“FASB”) overall simplification initiative and seeks to simplify the accounting for income taxes by updating certain guidance and removing certain exceptions. Our adoption of this ASU did not have a material impact on our Consolidated Financial Statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) : Disclosures by Business Entities about Government Assistance, which requires business entities (except for not-for-profit entities and employee benefit plans) to disclose information about certain government assistance they receive. The Topic 832 disclosure requirements include: (i) the nature of the transactions and the related accounting policy used; (ii) the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item; and (iii) significant terms and conditions of the transactions. Our adoption of this ASU did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04 - Reference Rate Reform (Topic 848), codified as ASC 848 (“ASC 848”). The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, and other transactions that reference a reference rate expected to be discontinued because of reference rate reform. The guidance may be applied upon issuance of ASC 848 through December 31, 2022. We expect to utilize the optional expedients provided by the guidance for contracts amended solely to use an alternative reference rate. We have evaluated the impact of adopting this new guidance and do not expect it to have a material impact on our Consolidated Financial Statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which provides an exception to fair value measurement for contract assets and contract liabilities related to revenue contracts acquired in a business combination. The ASU requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU is effective for the Company for annual and interim periods in fiscal years beginning after December 15, 2023. Early adoption is permitted. The ASU is applied to business combinations occurring on or after the effective date. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require disclosure of current-period gross write-offs by year of origination for financing receivables. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact of adopting this new guidance on our Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Contract Balances The following table presents the components of our contract balances: As of March 31, 2022 December 31, 2021 Trade accounts receivable and contract assets, net: Sales and services $ 160,325 $ 154,676 Leasing 5,722 5,668 Total trade accounts receivable 166,047 160,344 Contract assets 49,783 36,307 Allowance for doubtful accounts (16,524) (14,588) Total trade accounts receivable and contract assets, net $ 199,306 $ 182,063 Contract liabilities: Current $ 138,201 $ 141,343 Non-current 10,292 10,669 Total contract liabilities $ 148,493 $ 152,012 The following table presents the revenue recognized in the Consolidated Statements of Operations that was previously included within contract liabilities: For the three months ended March 31, 2022 2021 Revenue $ 88,947 $ 63,081 Contract Acquisition Costs The following table presents the activity in our contract acquisition costs, net: For the three months ended March 31, 2022 2021 Balance at beginning of period $ 82,986 $ 99,837 Additions 15,788 18,400 Amortization expense (20,197) (22,769) Foreign currency translation 1,995 (875) Balance at end of period $ 80,572 $ 94,593 Performance Obligations As of March 31, 2022, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $890.4 million. Performance obligations expected to be satisfied within one year and greater than one year are 48.0% and 52.0%, respectively. This amount and percentages exclude agreements with consumer customers in our Hughes segment, our leasing arrangements and agreements with certain customers under which collectability of all amounts due through the term of contracts is uncertain. Disaggregation of Revenue Geographic Information The following tables present our revenue from customer contracts disaggregated by primary geographic market and by segment: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 North America $ 399,422 $ 4,474 $ 2,947 $ 406,843 South and Central America 42,872 — — 42,872 Other 51,812 — 7 51,819 Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 For the three months ended March 31, 2021 North America $ 398,759 $ 4,089 $ 2,612 $ 405,460 South and Central America 43,030 — — 43,030 Other 34,070 — 22 34,092 Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 Nature of Products and Services The following tables present our revenue disaggregated by the nature of products and services and by segment: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 Services and other revenue: Services $ 400,402 $ 2,935 $ 1,519 $ 404,856 Lease revenue 10,987 1,539 1,429 13,955 Total services and other revenue 411,389 4,474 2,948 418,811 Equipment revenue: Equipment 25,885 — 6 25,891 Design, development and construction services 55,905 — — 55,905 Lease revenue 927 — — 927 Total equipment revenue 82,717 — 6 82,723 Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 For the three months ended March 31, 2021 Services and other revenue: Services $ 413,519 $ 2,690 $ 1,091 $ 417,300 Lease revenue 10,101 1,399 1,537 13,037 Total services and other revenue 423,620 4,089 2,628 430,337 Equipment revenue: Equipment 28,521 — 6 28,527 Design, development and construction services 21,636 — — 21,636 Lease revenue 2,082 — — 2,082 Total equipment revenue 52,239 — 6 52,245 Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 Lease Revenue The following table presents our lease revenue by type of lease: For the three months ended March 31, 2022 2021 Sales-type lease revenue: Revenue at lease commencement $ 638 $ 2,082 Interest income 289 73 Total sales-type lease revenue 927 2,155 Operating lease revenue 13,955 12,964 Total lease revenue $ 14,882 $ 15,119 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS In May 2019, we entered into an agreement with Bharti Airtel Limited (“BAL”) and its subsidiary, Bharti Airtel Services Limited (together with BAL, “Bharti”), pursuant to which Bharti agreed to contribute its very small aperture terminal (“VSAT”) telecommunications services and hardware business in India to Hughes Communications India Private Limited (“HCIPL”) and its subsidiaries, our less than wholly owned Indian subsidiaries, that conduct our VSAT services and hardware business in India. On January 4, 2022, this joint venture was formed (the “India JV”) and subsequent to the formation of the India JV, we hold a 67% ownership interest and Bharti holds a 33% ownership interest in HCIPL. The India JV combines the VSAT businesses of both companies to offer flexible and scalable enterprise networking solutions using satellite connectivity for primary transport, back-up and hybrid implementation in India. The results of operations related to the India JV have been included in these Consolidated Financial Statements from the date of formation. The costs associated with the closing of the India JV were not material and were expensed as incurred. The fair value of the consideration transferred was $38.2 million. Net cash paid was $7.9 million, inclusive of amounts paid for the acquisition of, or of HCIPL shares from, entities that were shareholders of HCIPL prior to closing the India JV. All assets and liabilities acquired in the India JV formation have been recorded at fair value. The following table presents our preliminary allocation of the purchase price: Amounts Assets: Trade accounts receivable and contract assets, net $ 6,160 Other current assets 2,085 Property and equipment 4,669 Goodwill 23,086 Other intangible assets 4,428 Total assets $ 40,428 Liabilities: Trade accounts payable $ 133 Accrued expenses and other current liabilities 986 Deferred tax liabilities 1,114 Total liabilities $ 2,233 Total purchase price $ 38,195 The preliminary valuation of assets acquired and liabilities assumed in the India JV were derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation, and resulted in a customer relationship intangible of $4.4 million with an estimated life of 5 years and is reported in Other intangible assets, net. Goodwill associated with the India JV is attributable to expected synergies, the projected long-term business growth in current and new markets and an assembled workforce. Goodwill has been allocated entirely to our Hughes segment. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the calculation of basic and diluted EPS for our Class A and B common stock: For the three months ended March 31, 2022 2021 Net income (loss) attributable to EchoStar Corporation common stock $ 91,433 $ 78,519 Weighted-average common shares outstanding: Basic 85,846 93,871 Dilutive impact of stock awards outstanding 33 25 Diluted 85,879 93,896 Earnings (losses) per share: Basic $ 1.07 $ 0.84 Diluted $ 1.06 $ 0.84 The following table presents the number of anti-dilutive options to purchase shares of our Class A common stock which have been excluded from the calculation of our weighted-average common shares outstanding: For the three months ended March 31, 2022 2021 Number of shares 4,650 4,750 |
Marketable Investment Securitie
Marketable Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE INVESTMENT SECURITIES | MARKETABLE INVESTMENT SECURITIES The following table presents our Marketable investment securities : As of March 31, 2022 December 31, 2021 Marketable investment securities: Available-for-sale debt securities: Corporate bonds $ 194,074 $ 289,784 Commercial paper 221,670 498,358 Other debt securities 45,950 92,673 Total available-for-sale debt securities 461,694 880,815 Equity securities 186,226 142,943 Total marketable investment securities, including restricted amounts 647,920 1,023,758 Less: Restricted marketable investment securities (13,327) (13,262) Total marketable investment securities $ 634,593 $ 1,010,496 Debt Securities Available-for-Sale The following table presents the components of our available-for-sale debt securities: Amortized Unrealized Estimated Cost Gains Losses Fair Value As of March 31, 2022 Corporate bonds $ 194,877 $ — $ (803) $ 194,074 Commercial paper 221,670 — — 221,670 Other debt securities 46,169 — (219) 45,950 Total available-for-sale debt securities $ 462,716 $ — $ (1,022) $ 461,694 As of December 31, 2021 Corporate bonds $ 290,169 $ — $ (385) $ 289,784 Commercial paper 498,358 — — 498,358 Other debt securities 92,742 — (69) 92,673 Total available-for-sale debt securities $ 881,269 $ — $ (454) $ 880,815 The following table presents the activity on our available-for-sale debt securities: For the three months ended March 31, 2022 2021 Proceeds from sales $ 29,018 $ 181,995 Equity Securities The following table presents the activity of our equity securities: For the three months ended March 31, 2022 2021 Gains (losses) on investments, net $ 31,015 $ 65,568 Fair Value Measurements The following table presents our marketable investment securities categorized by the fair value hierarchy, certain of which have historically experienced volatility: Level 1 Level 2 Total As of March 31, 2022 Cash equivalents (including restricted) $ 20,995 $ 766,867 $ 787,862 Available-for-sale debt securities: Corporate bonds $ — $ 194,074 $ 194,074 Commercial paper — 221,670 221,670 Other debt securities 14,148 31,802 45,950 Total available-for-sale debt securities 14,148 447,546 461,694 Equity securities 175,404 10,822 186,226 Total marketable investment securities, including restricted amounts 189,552 458,368 647,920 Less: Restricted marketable investment securities (13,327) — (13,327) Total marketable investment securities $ 176,225 $ 458,368 $ 634,593 As of December 31, 2021 Cash equivalents (including restricted) $ 7,872 $ 423,123 $ 430,995 Available-for-sale debt securities: Corporate bonds $ — $ 289,784 $ 289,784 Commercial paper — 498,358 498,358 Other debt securities 14,274 78,399 92,673 Total available-for-sale debt securities 14,274 866,541 880,815 Equity securities 131,413 11,530 142,943 Total marketable investment securities, including restricted amounts 145,687 878,071 1,023,758 Less: Restricted marketable investment securities (13,262) — (13,262) Total marketable investment securities $ 132,425 $ 878,071 $ 1,010,496 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table presents the components of Property and equipment, net : As of March 31, 2022 December 31, 2021 Property and equipment, net: Satellites, net $ 1,643,431 $ 1,610,623 Other property and equipment, net 732,712 727,662 Total property and equipment, net $ 2,376,143 $ 2,338,285 Satellites As of March 31, 2022, our satellite fleet consisted of ten geosynchronous (“GEO”) satellites, seven of which are owned and three of which are leased. They are all in geosynchronous orbit, approximately 22,300 miles above the equator. Our owned S-band low-earth orbit (“LEO”) nano-satellites are not included in the table below. The following table presents our GEO satellite fleet as of March 31, 2022: GEO Satellite Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 10 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 Al Yah 3 (2) Hughes January 2018 20 W 7 EchoStar IX (3) (4) ESS August 2003 121 W 12 EUTELSAT 10A (“W2A”) (5) Corporate and Other April 2009 10 E - EchoStar XXI Corporate and Other June 2017 10.25 E 15 Finance leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 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 the acquisition of Hughes Communications, Inc. (“Hughes Communications”) and its subsidiaries (the “Hughes Acquisition”). (2) Upon consummation of our joint venture with Al Yah Satellite Communications Company PrJSC (“Yahsat”) in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019. (3) We own the Ka-band and Ku-band payloads on this satellite. (4) EchoStar IX is approaching its end of station-kept life. The Company expects to place the satellite in an inclined-orbit in the fourth quarter of 2022 or first quarter of 2023, but this ability is dependent upon events beyond our control and may not occur on schedule if at all. Inclined-orbit will extend its life but impact revenue generating capabilities. The following table presents the components of our satellites, net: Depreciable Life (In Years) As of March 31, 2022 December 31, 2021 Satellites, net: Satellites - owned 7 to 15 $ 1,813,485 $ 1,806,664 Satellites - acquired under finance leases 15 370,728 354,170 Construction in progress — 588,930 541,422 Total satellites 2,773,143 2,702,256 Accumulated depreciation: Satellites - owned (1,022,318) (995,962) Satellites - acquired under finance leases (107,394) (95,671) Total accumulated depreciation (1,129,712) (1,091,633) Total satellites, net $ 1,643,431 $ 1,610,623 The following table presents the depreciation expense associated with our satellites, net: For the three months ended March 31, 2022 2021 Depreciation expense: Satellites - owned $ 24,196 $ 32,161 Satellites - acquired under finance leases 5,987 7,201 Total depreciation expense $ 30,183 $ 39,362 The following table presents capitalized interest associated with our satellites and satellite-related ground infrastructure: For the three months ended March 31, 2022 2021 Capitalized interest $ 10,382 $ 8,563 Construction in Progress In August 2017, we entered into a contract for the design and construction of the EchoStar XXIV satellite, a new, next-generation, high throughput geostationary satellite. The EchoStar XXIV satellite is primarily intended to provide additional capacity for our HughesNet satellite internet service (the “HughesNet service”) in North, Central and South America as well as enterprise broadband services. Capital expenditures associated with the construction and launch of the EchoStar XXIV satellite are included in Corporate and Other segment in our segment reporting. Satellite-Related Commitments As of March 31, 2022 and December 31, 2021 our satellite-related commitments were $299.8 million and $342.2 million, respectively. These include payments pursuant to: i) agreements for the construction of the EchoStar XXIV satellite, ii) the EchoStar XXIV launch contract, iii) regulatory authorizations and non-lease costs associated with our finance lease satellites, in-orbit incentives relating to certain satellites and commitments for satellite service arrangements. In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change. Satellite Anomalies and Impairments We are not aware of any anomalies with respect to our owned or leased satellites or payloads that have had any significant adverse effect on their remaining useful lives, the commercial operation of the satellites or payloads or our operating results or financial position as of and for the three months ended March 31, 2022. Fair Value of In-Orbit Incentives As of March 31, 2022 and December 31, 2021, the fair values of our in-orbit incentive obligations approximated their carrying amounts of $51.7 million and $53.2 million, respectively. |
Regulatory Authorizations
Regulatory Authorizations | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
REGULATORY AUTHORIZATIONS | REGULATORY AUTHORIZATIONS The following table presents our Regulatory authorizations, net: Finite lived Cost Accumulated Amortization Total Indefinite lived Total Balance, December 31, 2020 $ 61,381 $ (26,639) $ 34,742 $ 444,020 $ 478,762 Amortization expense — (1,134) (1,134) — (1,134) Currency translation adjustments (2,345) 1,124 (1,221) (315) (1,536) Balance, March 31, 2021 $ 59,036 $ (26,649) $ 32,387 $ 443,705 $ 476,092 Balance, December 31, 2021 $ 57,137 $ (29,088) $ 28,049 $ 441,717 $ 469,766 Amortization expense — (1,071) (1,071) — (1,071) Currency translation adjustments (40) 358 318 1,316 1,634 Balance, March 31, 2022 $ 57,097 $ (29,801) $ 27,296 $ 443,033 $ 470,329 Weighted-average useful life (in years) 13 |
Other Investments
Other Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
OTHER INVESTMENTS | OTHER INVESTMENTS The following table presents our Other investments, net : As of March 31, 2022 December 31, 2021 Other investments, net: Equity method investments $ 89,511 $ 91,226 Other equity investments 141,307 91,636 Other debt investments, net 119,500 114,885 Total other investments, net $ 350,318 $ 297,747 Equity Method Investments Dish Mexico We own 49% of DISH Mexico, S. de R.L. de C.V. and its subsidiaries (“Dish Mexico”), a joint venture that we entered into in 2008 to provide direct-to-home satellite services in Mexico. During the fourth quarter of 2021, we concluded that our investment in Dish Mexico was not recoverable. Deluxe/EchoStar LLC We own 50% of Deluxe/EchoStar LLC (“Deluxe”), a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada. Broadband Connectivity Solutions (Restricted) Limited We own 20% of Broadband Connectivity Solutions (Restricted) Limited (together with its subsidiaries, “BCS”), a joint venture that we entered into in 2018 to provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia operating over Yahsat's Al Yah 2 and Al Yah 3 Ka-band satellites. Financial Information for Our Equity Method Investments The following table presents revenue recognized: For the three months ended March 31, 2022 2021 Deluxe $ 1,323 $ 1,631 BCS $ 1,771 $ 1,348 The following table presents trade accounts receivable: As of March 31, 2022 December 31, 2021 Deluxe $ 1,040 $ 934 BCS $ 6,575 $ 5,544 Other Equity Investments The following table presents the activity on our investments: For the three months ended March 31, 2022 2021 Gain (loss) on investments, net $ 49,671 $ 14,156 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table presents the carrying amount and fair values of our Long-term debt, net: Effective Interest Rate As of March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes: 5 1/4% Senior Secured Notes due 2026 5.320% $ 750,000 $ 765,668 $ 750,000 $ 825,555 Senior Unsecured Notes: 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 777,023 750,000 838,740 Less: Unamortized debt issuance costs (3,815) — (4,006) — Total long-term debt, net $ 1,496,185 $ 1,542,691 $ 1,495,994 $ 1,664,295 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our interim income tax provision and our interim estimate of our annual effective tax rate are influenced by several factors, including foreign losses and capital gains and losses for which related deferred tax assets are partially offset by a valuation allowance, changes in tax laws and relative changes in unrecognized tax benefits. Additionally, our effective tax rate can be affected by the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income or loss is lower. Our income tax provision was $32.8 million for the three months ended March 31, 2022 compared to our income tax provision of $22.1 million for the three months ended March 31, 2021. Our estimated effective income tax rate was 26.9% and 22.2% for the three months ended March 31, 2022 and 2021, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended March 31, 2022 were primarily due to excluded foreign losses where the Company carries a full valuation allowance and the impact of state and local taxes. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended March 31, 2021 were primarily due to excluded foreign losses where the Company carries a full valuation allowance and by the change in net unrealized gains that are capital in nature. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS - DISH NETWORK | RELATED PARTY TRANSACTIONS - DISH NETWORK Overview EchoStar Corporation and DISH have operated as separate publicly-traded companies since 2008 (the “Spin-off”). 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 entities established for the benefit of his family. In January 2017, we and certain of our subsidiaries entered into a share exchange agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries pursuant to which, in February 2017, we received all of the shares of preferred tracking stock previously issued by us and one of our subsidiaries (the “Tracking Stock”), representing an 80% economic interest in the residential retail satellite broadband business of our Hughes segment, 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”). The Tracking Stock was retired in March 2017. In September 2019, pursuant to a master transaction agreement (the “Master Transaction Agreement”) with DISH and a wholly-owned subsidiary of DISH (“Merger Sub”), (i) we transferred certain real property and the various businesses, products, licenses, technology, revenues, billings, operating activities, assets and liabilities primarily related to the former portion of our ESS segment that managed, marketed and provided (1) broadcast satellite services primarily to DISH and its subsidiaries (“DISH Network”) and our joint venture Dish Mexico, and (2) telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and a portion of our other businesses (collectively, the “BSS Business”) to one of our former subsidiaries, EchoStar BSS Corporation (“BSS Corp.”), (ii) we distributed to each holder of shares of our Class A or Class B common stock entitled to receive consideration in the transaction an amount of shares of common stock of BSS Corp., par value $0.001 per share (“BSS Common Stock”), equal to one share of BSS Common Stock for each share of our Class A or Class B common stock owned by such stockholder (the “Distribution”); and (iii) immediately after the Distribution, (1) Merger Sub merged with and into BSS Corp. (the “Merger”), such that BSS Corp. became a wholly-owned subsidiary of DISH and with DISH then owning and operating the BSS Business, and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Class A common stock, par value $0.001 per share (“DISH Common Stock”) ((i) - (iii) collectively, the “BSS Transaction”). Services and Other Revenue — DISH Network The following table presents our Services and other revenue - DISH Network : For the three months ended March 31, 2022 2021 Services and other revenue - DISH Network $ 7,957 $ 8,421 The following table presents the related trade accounts receivable: As of March 31, 2022 December 31, 2021 Trade accounts receivable - DISH Network $ 5,590 $ 4,244 Satellite Capacity Leased to DISH Network. Effective January 2008, DISH Network began leasing satellite capacity from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue leasing satellite capacity from us on the EchoStar IX satellite on a month-to-month basis. Telesat Obligation Agreement. In September 2009, we entered into an agreement with Telesat Canada to lease satellite capacity from Telesat Canada on all 32 direct broadcast satellite (“DBS”) transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. We transferred the Telesat Transponder Agreement to DISH Network in September 2019 as part of the BSS Transaction; however, we retained certain obligations related to DISH Network’s performance under that agreement and we entered into an agreement with DISH Network whereby DISH Network compensates us for retaining such obligations. 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 leases or subsequent amendments. Additionally, DISH Network compensates us for its portion of the taxes, insurance, utilities and/or maintenance of the premises. The terms of each of the leases are set forth below: • 100 Inverness Occupancy License Agreement — In March 2017, we and DISH Network entered into a license agreement for DISH Network to use certain of our space at 100 Inverness Terrace East, Englewood, Colorado for an initial period ending in December 2020. Effective December 2020, we amended this agreement to extend the license until December 2021. Effective December 2021, we amended this agreement to extend the license until December 2022. This agreement may be terminated by either party upon 180 days’ prior notice. Subsequent to December 2022, this agreement will be converted to a month-to-month lease agreement unless extended by mutual consent or terminated by one of the parties upon 30 days’ notice. In connection with the BSS Transaction, we transferred to DISH Network the Englewood Satellite Operations Center located at 100 Inverness Terrace East, including any and all equipment, hardware licenses, software, processes, software licenses, furniture and technical documentation associated with the satellites transferred in the BSS Transaction. • Meridian Lease Agreement — The lease for all of 9601 S. Meridian Blvd., Englewood, Colorado was originally for a period ending in December 2016. We and DISH Network have amended this lease over time to, among other things, extend the term through December 2022. After December 2022, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate 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 we provide, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment (the “TerreStar Agreements”). 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 these 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. 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. In March 2020, we entered into an agreement with DISH Network pursuant to which we perform certain work and provide certain credits to amounts owed to us under the TerreStar Agreements in exchange for DISH Network’s granting us rights to use certain satellite capacity under the Amended and Restated Professional Services Agreement (as defined below). As a result, we and DISH Network amended the TerreStar Agreements to suspend our provision of warranty services to DISH Network from April 2020 through December 2020. Following the expiration of this suspension, we have recommenced providing warranty services to DISH Network. Hughes Broadband Distribution Agreement. Effective October 2012, we and DISH Network entered into a distribution agreement (the “Distribution Agreement”) pursuant to which DISH Network has the right, but not the obligation, to market, sell and distribute our Gen 4 HughesNet service. DISH Network pays us a monthly per subscriber wholesale service fee for our Gen 4 HughesNet service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that DISH Network has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Gen 4 HughesNet 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, we and DISH Network 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, we and DISH Network will continue to provide our Gen 4 HughesNet service to the then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of all of the equity of 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 we provide, 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 North America 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 has 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. In February 2019, we further amended these agreements to provide DBSD North America with the right to continue to receive warranty services from us on a month-to-month basis until December 2023, unless terminated by DBSD North America upon at least 21 days’ written notice to us. The provision of hosting services will continue 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. Operating Expenses — DISH Network The following table presents our operating expenses related to DISH Network: For the three months ended March 31, 2022 2021 Operating expenses - DISH Network $ 1,332 $ 1,307 The following table presents the related trade accounts payable: As of March 31, 2022 December 31, 2021 Trade accounts payable - DISH Network $ 638 $ 503 Real Estate Leases from DISH Network. Effective March 2017, we entered into a lease with DISH Network for certain space at 530 EchoStar Drive in Cheyenne, Wyoming for an initial period ending in February 2019. In August 2018, we exercised our option to renew this lease for a one-year period ending in February 2020. In connection with the BSS Transaction, we transferred the Cheyenne Satellite Operations Center, including any equipment, software licenses, and furniture located within, to DISH Network and amended this lease to reduce the space provided to us for the Cheyenne Satellite Access Center for a period ending in September 2021. In March 2021, we exercised our option to renew this lease for a one-year period ending September 2022 and amended the lease to provide us the option to renew this lease for up to three Collocation and Antenna Space Agreements . We and DISH Network entered into an agreement pursuant to which DISH Network provided us with collocation space in El Paso, Texas. This agreement was for an initial period ending in July 2015, and provided us with renewal options for four consecutive three-year terms. We exercised our first renewal option for a period commencing in August 2015 and ending in July 2018, in April 2018 we exercised our second renewal option for a period ending in July 2021, and in May 2021 we exercised our third renewal option for a period ending in July 2024. In connection with the Share Exchange, effective March 2017, we also entered into certain agreements pursuant to which DISH Network provides 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 October 2019, we provided a termination notice for our New Braunfels, Texas agreement to be effective May 2020. In November 2020, we provided a termination notice for one of our Englewood, Colorado agreements to be effective May 2021. In August 2017, we and DISH Network also entered into certain other agreements pursuant to which DISH Network provides additional collocation and antenna space to us in Monee, Illinois and Spokane, Washington through August 2022. In November 2021, we exercised our right to renew the collocation agreements at Gilbert, Arizona, Cheyenne, Wyoming, Spokane, Washington, Englewood, Colorado and Monee, Illinois for a period ending in February 2025. Generally, we may renew our collocation and antenna space agreements for 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. We may terminate certain of these agreements with 180 days’ prior written notice. In September 2019, in connection with the BSS Transaction, we entered into an agreement pursuant to which DISH Network provided us with certain additional collocation space in Cheyenne, Wyoming for a period that ended in September 2020. The fees for the services provided under these agreements depend on the number of racks located at the location. Also in connection with the BSS Transaction, in September 2019, we entered into an agreement pursuant to which DISH Network provides us with antenna space and power in Cheyenne, Wyoming for a period of five years commencing in August 2020, with four three-year renewal terms, with prior written notice of renewal required no more than 120 days but no less than 90 days prior to the end of the then-current term. In March 2021, we entered into additional agreements pursuant to which DISH Network provides us with antenna space and power in Cheyenne, Wyoming, and the right to use an antenna and certain space in Gilbert, Arizona. Both agreements are for a period of five years with four three-year renewal terms, with prior written notice of renewal required no more than 120 days but no less than 90 days prior to the end of the then-current term. Hughes Broadband Master Services Agreement . In conjunction with the launch of our EchoStar XIX satellite, in March 2017, we and DISH Network entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DISH Network, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for our Gen 5 HughesNet service and related equipment and other telecommunication services and (ii) installs Gen 5 HughesNet service equipment with respect to activations generated by DISH Network. Under the Hughes Broadband MSA, we and DISH Network make certain payments to each other relating to sales, upgrades, purchases and installation services. The current term of the Hughes Broadband MSA is through March 2023 with automatic renewal for successive one-year terms. Either party has the ability to terminate the Hughes Broadband 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 Hughes Broadband MSA, we will continue to provide our Gen 5 HughesNet service to subscribers and make certain payments to DISH Network pursuant to the terms and conditions of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $1.7 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively. 2019 TT&C Agreement . In September 2019, in connection with the BSS Transaction, we entered into an agreement pursuant to which DISH Network provides TT&C services to us for a period ending in September 2021, with the option for us to renew for a one-year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). In June 2021, we amended the 2019 TT&C Agreement to extend the term until September 2022 and added the option for us to renew the 2019 TT&C Agreement up to an additional three years. The fees for services provided under the 2019 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. Any party is able to terminate the 2019 TT&C Agreement for any reason upon 12 months’ notice. Referral Marketing Agreement . In June 2021, we and DISH Network entered into an agreement pursuant to which we will pre-qualify prospects contacting Hughes call centers and transfer those prospects to DISH Network for introduction to DISH Network’s video services, for prospects that convert Hughes will receive a commission. This agreement has an indefinite term and, after June 2022, may be terminated by either party upon 90 days’ prior written notice. Other Receivables - DISH Network The following table presents our other receivables owed from DISH Network: As of March 31, 2022 December 31, 2021 Other receivables - DISH Network, current $ 12,705 $ 12,705 Other receivables - DISH Network, noncurrent $ 76,536 $ 77,920 Tax Sharing Agreement. Effective December 2007, we and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs our and DISH Network’s respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network and DISH Network indemnifies us for such taxes. However, DISH Network is not liable for and does not indemnify us for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”), because of: (i) a direct or indirect acquisition of any of our stock, stock options or assets; (ii) any action that we take or fail to take or (iii) any action that we take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, we will be solely liable for, and will indemnify DISH Network for any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, we and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of our consolidated tax returns. Prior to the agreement with DISH Network in 2013, the federal tax benefits were reflected as a deferred tax asset for depreciation and amortization, which was netted in our non-current deferred tax liabilities. Under the agreement with DISH Network from 2013, DISH Network is paying us the federal tax benefit it receives at such time as we would have otherwise been able to realize such tax benefit. We recorded a current receivable from DISH Network in Other receivables - DISH Network, current and a non-current receivable from DISH Network in Other receivables - DISH Network, noncurrent and a corresponding increase in our Deferred tax liabilities, net to reflect the effects of this agreement. In addition, in September 2013, we and DISH Network agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and DISH Network for such combined returns, through the taxable period ending on December 31, 2017 (the “State Tax Arrangement”). In August 2018, we and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Tax Sharing Amendment”). Under the Tax Sharing Amendment, to the extent permitted by applicable tax law, DISH Network is entitled to apply the benefit of our 2009 net operating losses (the “SATS 2009 NOLs”) to DISH Network’s federal tax return for the year ended December 31, 2008, in exchange for DISH Network paying us over time the value of the net annual federal income taxes paid by us that would have been otherwise offset by the SATS 2009 NOLs. The Tax Sharing Amendment also requires us and DISH Network to pay the other for the benefits of certain past and future federal research and development tax credits that we or DISH Network receive or received as a result of being part of a controlled group under the Code, and requires DISH Network to compensate us for certain past tax losses utilized by DISH Network and for certain past and future excess California research and development tax credits generated by us and used by DISH Network. In addition, the Tax Sharing Amendment extends the term of the State Tax Arrangement to the earlier of termination of the Tax Sharing Agreement, a change in control of either us or DISH Network or, for any particular state, if we and DISH Network no longer file a combined tax return for such state. We and DISH Network filed combined income tax returns in certain states from 2008 through 2019. We have earned and recognized tax benefits for certain state income tax credits that we would be unable to fully utilize currently if we had filed separately from DISH Network. We have charged Additional paid-in capital in prior periods when DISH Network has utilized such tax benefits. We expect to increase Additional paid-in capital upon receipt of any consideration that DISH Network pays to us in exchange for these tax credits. Master Transaction Agreement. In May 2019, we and BSS Corp. entered into the Master Transaction Agreement with DISH and Merger Sub with respect to the BSS Transaction. Pursuant to the terms of the Master Transaction Agreement, on September 10, 2019: (i) we transferred the BSS Business to BSS Corp.; (ii) we completed the Distribution; and (iii) immediately after the Distribution, (1) BSS Corp. became a wholly-owned subsidiary of DISH such that DISH owns and operates the BSS Business and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Common Stock. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. The Master Transaction Agreement contained customary representations and warranties by us and DISH Network, including our representations relating to the assets, liabilities and financial condition of the BSS Business, and representations by DISH Network relating to its financial condition and liabilities. We and DISH Network have agreed to indemnify each other against certain losses with respect to breaches of certain representations and covenants and certain retained and assumed liabilities, respectively. BSS Transaction Intellectual Property and Technology License Agreement. Effective September 2019, in connection with the BSS Transaction, we and DISH Network entered into an intellectual property and technology license agreement (the “BSS IPTLA”) pursuant to which we and DISH Network license to each other certain intellectual property and technology. The BSS IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the BSS 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 BSS Business acquired pursuant to the BSS Transaction, including a limited license to use the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks during a transition period. EchoStar retains full ownership of the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks. 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 BSS Transaction. BSS Transaction Employee Matters Agreement. Effective September 2019, in connection with the BSS Transaction, we and DISH Network entered into an employee matters agreement that addressed the transfer of employees from us 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 BSS Business. DISH Network assumed employee-related liabilities relating to the BSS Business as part of the BSS Transaction, except that we are responsible for certain pre-BSS Transaction compensation and benefits for employees who transferred to DISH Network in connection with the BSS Transaction. Share Exchange Agreement . In February 2017 we consummated the Share Exchange, following which we no longer operate 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, we 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 contained customary representations and warranties by the parties, including representations by us related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. We and DISH Network 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 us or DISH causes the transaction to be taxable to the other party after closing. Share Exchange Employee Matters Agreement . Effective March 2017, in connection with the Share Exchange, we and DISH Network entered into an employee matters agreement that addressed the transfer of employees from us 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 pre-Share Exchange employee related litigation, and compensation and benefits for employees who transferred to DISH Network in connection with the Share Exchange. |
Related Party Transactions - Ot
Related Party Transactions - Other | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS - OTHER | RELATED PARTY TRANSACTIONS - DISH NETWORK Overview EchoStar Corporation and DISH have operated as separate publicly-traded companies since 2008 (the “Spin-off”). 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 entities established for the benefit of his family. In January 2017, we and certain of our subsidiaries entered into a share exchange agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries pursuant to which, in February 2017, we received all of the shares of preferred tracking stock previously issued by us and one of our subsidiaries (the “Tracking Stock”), representing an 80% economic interest in the residential retail satellite broadband business of our Hughes segment, 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”). The Tracking Stock was retired in March 2017. In September 2019, pursuant to a master transaction agreement (the “Master Transaction Agreement”) with DISH and a wholly-owned subsidiary of DISH (“Merger Sub”), (i) we transferred certain real property and the various businesses, products, licenses, technology, revenues, billings, operating activities, assets and liabilities primarily related to the former portion of our ESS segment that managed, marketed and provided (1) broadcast satellite services primarily to DISH and its subsidiaries (“DISH Network”) and our joint venture Dish Mexico, and (2) telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and a portion of our other businesses (collectively, the “BSS Business”) to one of our former subsidiaries, EchoStar BSS Corporation (“BSS Corp.”), (ii) we distributed to each holder of shares of our Class A or Class B common stock entitled to receive consideration in the transaction an amount of shares of common stock of BSS Corp., par value $0.001 per share (“BSS Common Stock”), equal to one share of BSS Common Stock for each share of our Class A or Class B common stock owned by such stockholder (the “Distribution”); and (iii) immediately after the Distribution, (1) Merger Sub merged with and into BSS Corp. (the “Merger”), such that BSS Corp. became a wholly-owned subsidiary of DISH and with DISH then owning and operating the BSS Business, and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Class A common stock, par value $0.001 per share (“DISH Common Stock”) ((i) - (iii) collectively, the “BSS Transaction”). Services and Other Revenue — DISH Network The following table presents our Services and other revenue - DISH Network : For the three months ended March 31, 2022 2021 Services and other revenue - DISH Network $ 7,957 $ 8,421 The following table presents the related trade accounts receivable: As of March 31, 2022 December 31, 2021 Trade accounts receivable - DISH Network $ 5,590 $ 4,244 Satellite Capacity Leased to DISH Network. Effective January 2008, DISH Network began leasing satellite capacity from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue leasing satellite capacity from us on the EchoStar IX satellite on a month-to-month basis. Telesat Obligation Agreement. In September 2009, we entered into an agreement with Telesat Canada to lease satellite capacity from Telesat Canada on all 32 direct broadcast satellite (“DBS”) transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. We transferred the Telesat Transponder Agreement to DISH Network in September 2019 as part of the BSS Transaction; however, we retained certain obligations related to DISH Network’s performance under that agreement and we entered into an agreement with DISH Network whereby DISH Network compensates us for retaining such obligations. 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 leases or subsequent amendments. Additionally, DISH Network compensates us for its portion of the taxes, insurance, utilities and/or maintenance of the premises. The terms of each of the leases are set forth below: • 100 Inverness Occupancy License Agreement — In March 2017, we and DISH Network entered into a license agreement for DISH Network to use certain of our space at 100 Inverness Terrace East, Englewood, Colorado for an initial period ending in December 2020. Effective December 2020, we amended this agreement to extend the license until December 2021. Effective December 2021, we amended this agreement to extend the license until December 2022. This agreement may be terminated by either party upon 180 days’ prior notice. Subsequent to December 2022, this agreement will be converted to a month-to-month lease agreement unless extended by mutual consent or terminated by one of the parties upon 30 days’ notice. In connection with the BSS Transaction, we transferred to DISH Network the Englewood Satellite Operations Center located at 100 Inverness Terrace East, including any and all equipment, hardware licenses, software, processes, software licenses, furniture and technical documentation associated with the satellites transferred in the BSS Transaction. • Meridian Lease Agreement — The lease for all of 9601 S. Meridian Blvd., Englewood, Colorado was originally for a period ending in December 2016. We and DISH Network have amended this lease over time to, among other things, extend the term through December 2022. After December 2022, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate 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 we provide, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment (the “TerreStar Agreements”). 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 these 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. 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. In March 2020, we entered into an agreement with DISH Network pursuant to which we perform certain work and provide certain credits to amounts owed to us under the TerreStar Agreements in exchange for DISH Network’s granting us rights to use certain satellite capacity under the Amended and Restated Professional Services Agreement (as defined below). As a result, we and DISH Network amended the TerreStar Agreements to suspend our provision of warranty services to DISH Network from April 2020 through December 2020. Following the expiration of this suspension, we have recommenced providing warranty services to DISH Network. Hughes Broadband Distribution Agreement. Effective October 2012, we and DISH Network entered into a distribution agreement (the “Distribution Agreement”) pursuant to which DISH Network has the right, but not the obligation, to market, sell and distribute our Gen 4 HughesNet service. DISH Network pays us a monthly per subscriber wholesale service fee for our Gen 4 HughesNet service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that DISH Network has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Gen 4 HughesNet 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, we and DISH Network 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, we and DISH Network will continue to provide our Gen 4 HughesNet service to the then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of all of the equity of 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 we provide, 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 North America 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 has 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. In February 2019, we further amended these agreements to provide DBSD North America with the right to continue to receive warranty services from us on a month-to-month basis until December 2023, unless terminated by DBSD North America upon at least 21 days’ written notice to us. The provision of hosting services will continue 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. Operating Expenses — DISH Network The following table presents our operating expenses related to DISH Network: For the three months ended March 31, 2022 2021 Operating expenses - DISH Network $ 1,332 $ 1,307 The following table presents the related trade accounts payable: As of March 31, 2022 December 31, 2021 Trade accounts payable - DISH Network $ 638 $ 503 Real Estate Leases from DISH Network. Effective March 2017, we entered into a lease with DISH Network for certain space at 530 EchoStar Drive in Cheyenne, Wyoming for an initial period ending in February 2019. In August 2018, we exercised our option to renew this lease for a one-year period ending in February 2020. In connection with the BSS Transaction, we transferred the Cheyenne Satellite Operations Center, including any equipment, software licenses, and furniture located within, to DISH Network and amended this lease to reduce the space provided to us for the Cheyenne Satellite Access Center for a period ending in September 2021. In March 2021, we exercised our option to renew this lease for a one-year period ending September 2022 and amended the lease to provide us the option to renew this lease for up to three Collocation and Antenna Space Agreements . We and DISH Network entered into an agreement pursuant to which DISH Network provided us with collocation space in El Paso, Texas. This agreement was for an initial period ending in July 2015, and provided us with renewal options for four consecutive three-year terms. We exercised our first renewal option for a period commencing in August 2015 and ending in July 2018, in April 2018 we exercised our second renewal option for a period ending in July 2021, and in May 2021 we exercised our third renewal option for a period ending in July 2024. In connection with the Share Exchange, effective March 2017, we also entered into certain agreements pursuant to which DISH Network provides 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 October 2019, we provided a termination notice for our New Braunfels, Texas agreement to be effective May 2020. In November 2020, we provided a termination notice for one of our Englewood, Colorado agreements to be effective May 2021. In August 2017, we and DISH Network also entered into certain other agreements pursuant to which DISH Network provides additional collocation and antenna space to us in Monee, Illinois and Spokane, Washington through August 2022. In November 2021, we exercised our right to renew the collocation agreements at Gilbert, Arizona, Cheyenne, Wyoming, Spokane, Washington, Englewood, Colorado and Monee, Illinois for a period ending in February 2025. Generally, we may renew our collocation and antenna space agreements for 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. We may terminate certain of these agreements with 180 days’ prior written notice. In September 2019, in connection with the BSS Transaction, we entered into an agreement pursuant to which DISH Network provided us with certain additional collocation space in Cheyenne, Wyoming for a period that ended in September 2020. The fees for the services provided under these agreements depend on the number of racks located at the location. Also in connection with the BSS Transaction, in September 2019, we entered into an agreement pursuant to which DISH Network provides us with antenna space and power in Cheyenne, Wyoming for a period of five years commencing in August 2020, with four three-year renewal terms, with prior written notice of renewal required no more than 120 days but no less than 90 days prior to the end of the then-current term. In March 2021, we entered into additional agreements pursuant to which DISH Network provides us with antenna space and power in Cheyenne, Wyoming, and the right to use an antenna and certain space in Gilbert, Arizona. Both agreements are for a period of five years with four three-year renewal terms, with prior written notice of renewal required no more than 120 days but no less than 90 days prior to the end of the then-current term. Hughes Broadband Master Services Agreement . In conjunction with the launch of our EchoStar XIX satellite, in March 2017, we and DISH Network entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DISH Network, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for our Gen 5 HughesNet service and related equipment and other telecommunication services and (ii) installs Gen 5 HughesNet service equipment with respect to activations generated by DISH Network. Under the Hughes Broadband MSA, we and DISH Network make certain payments to each other relating to sales, upgrades, purchases and installation services. The current term of the Hughes Broadband MSA is through March 2023 with automatic renewal for successive one-year terms. Either party has the ability to terminate the Hughes Broadband 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 Hughes Broadband MSA, we will continue to provide our Gen 5 HughesNet service to subscribers and make certain payments to DISH Network pursuant to the terms and conditions of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $1.7 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively. 2019 TT&C Agreement . In September 2019, in connection with the BSS Transaction, we entered into an agreement pursuant to which DISH Network provides TT&C services to us for a period ending in September 2021, with the option for us to renew for a one-year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). In June 2021, we amended the 2019 TT&C Agreement to extend the term until September 2022 and added the option for us to renew the 2019 TT&C Agreement up to an additional three years. The fees for services provided under the 2019 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. Any party is able to terminate the 2019 TT&C Agreement for any reason upon 12 months’ notice. Referral Marketing Agreement . In June 2021, we and DISH Network entered into an agreement pursuant to which we will pre-qualify prospects contacting Hughes call centers and transfer those prospects to DISH Network for introduction to DISH Network’s video services, for prospects that convert Hughes will receive a commission. This agreement has an indefinite term and, after June 2022, may be terminated by either party upon 90 days’ prior written notice. Other Receivables - DISH Network The following table presents our other receivables owed from DISH Network: As of March 31, 2022 December 31, 2021 Other receivables - DISH Network, current $ 12,705 $ 12,705 Other receivables - DISH Network, noncurrent $ 76,536 $ 77,920 Tax Sharing Agreement. Effective December 2007, we and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs our and DISH Network’s respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network and DISH Network indemnifies us for such taxes. However, DISH Network is not liable for and does not indemnify us for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”), because of: (i) a direct or indirect acquisition of any of our stock, stock options or assets; (ii) any action that we take or fail to take or (iii) any action that we take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, we will be solely liable for, and will indemnify DISH Network for any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, we and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of our consolidated tax returns. Prior to the agreement with DISH Network in 2013, the federal tax benefits were reflected as a deferred tax asset for depreciation and amortization, which was netted in our non-current deferred tax liabilities. Under the agreement with DISH Network from 2013, DISH Network is paying us the federal tax benefit it receives at such time as we would have otherwise been able to realize such tax benefit. We recorded a current receivable from DISH Network in Other receivables - DISH Network, current and a non-current receivable from DISH Network in Other receivables - DISH Network, noncurrent and a corresponding increase in our Deferred tax liabilities, net to reflect the effects of this agreement. In addition, in September 2013, we and DISH Network agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and DISH Network for such combined returns, through the taxable period ending on December 31, 2017 (the “State Tax Arrangement”). In August 2018, we and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Tax Sharing Amendment”). Under the Tax Sharing Amendment, to the extent permitted by applicable tax law, DISH Network is entitled to apply the benefit of our 2009 net operating losses (the “SATS 2009 NOLs”) to DISH Network’s federal tax return for the year ended December 31, 2008, in exchange for DISH Network paying us over time the value of the net annual federal income taxes paid by us that would have been otherwise offset by the SATS 2009 NOLs. The Tax Sharing Amendment also requires us and DISH Network to pay the other for the benefits of certain past and future federal research and development tax credits that we or DISH Network receive or received as a result of being part of a controlled group under the Code, and requires DISH Network to compensate us for certain past tax losses utilized by DISH Network and for certain past and future excess California research and development tax credits generated by us and used by DISH Network. In addition, the Tax Sharing Amendment extends the term of the State Tax Arrangement to the earlier of termination of the Tax Sharing Agreement, a change in control of either us or DISH Network or, for any particular state, if we and DISH Network no longer file a combined tax return for such state. We and DISH Network filed combined income tax returns in certain states from 2008 through 2019. We have earned and recognized tax benefits for certain state income tax credits that we would be unable to fully utilize currently if we had filed separately from DISH Network. We have charged Additional paid-in capital in prior periods when DISH Network has utilized such tax benefits. We expect to increase Additional paid-in capital upon receipt of any consideration that DISH Network pays to us in exchange for these tax credits. Master Transaction Agreement. In May 2019, we and BSS Corp. entered into the Master Transaction Agreement with DISH and Merger Sub with respect to the BSS Transaction. Pursuant to the terms of the Master Transaction Agreement, on September 10, 2019: (i) we transferred the BSS Business to BSS Corp.; (ii) we completed the Distribution; and (iii) immediately after the Distribution, (1) BSS Corp. became a wholly-owned subsidiary of DISH such that DISH owns and operates the BSS Business and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Common Stock. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. The Master Transaction Agreement contained customary representations and warranties by us and DISH Network, including our representations relating to the assets, liabilities and financial condition of the BSS Business, and representations by DISH Network relating to its financial condition and liabilities. We and DISH Network have agreed to indemnify each other against certain losses with respect to breaches of certain representations and covenants and certain retained and assumed liabilities, respectively. BSS Transaction Intellectual Property and Technology License Agreement. Effective September 2019, in connection with the BSS Transaction, we and DISH Network entered into an intellectual property and technology license agreement (the “BSS IPTLA”) pursuant to which we and DISH Network license to each other certain intellectual property and technology. The BSS IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the BSS 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 BSS Business acquired pursuant to the BSS Transaction, including a limited license to use the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks during a transition period. EchoStar retains full ownership of the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks. 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 BSS Transaction. BSS Transaction Employee Matters Agreement. Effective September 2019, in connection with the BSS Transaction, we and DISH Network entered into an employee matters agreement that addressed the transfer of employees from us 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 BSS Business. DISH Network assumed employee-related liabilities relating to the BSS Business as part of the BSS Transaction, except that we are responsible for certain pre-BSS Transaction compensation and benefits for employees who transferred to DISH Network in connection with the BSS Transaction. Share Exchange Agreement . In February 2017 we consummated the Share Exchange, following which we no longer operate 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, we 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 contained customary representations and warranties by the parties, including representations by us related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. We and DISH Network 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 us or DISH causes the transaction to be taxable to the other party after closing. Share Exchange Employee Matters Agreement . Effective March 2017, in connection with the Share Exchange, we and DISH Network entered into an employee matters agreement that addressed the transfer of employees from us 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 pre-Share Exchange employee related litigation, and compensation and benefits for employees who transferred to DISH Network in connection with the Share Exchange. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIESPatents and Intellectual PropertyMany entities, including some of our competitors, have, or may have in the future, 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 tripled. 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 parties 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 parties 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. Certain Arrangements with DISH Network In connection with our spin-off from DISH in 2008, 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 we will generally 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. In connection with the Share Exchange and BSS Transaction, we entered into the Share Exchange Agreement and the Master Transaction Agreement, respectively, 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, in the case of the Share Exchange, certain pre-existing liabilities and legal proceedings and, in the case of the BSS Transaction, certain losses with respect to breaches of certain representations and covenants and certain liabilities. Litigation We are involved in a number of legal proceedings 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 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 legal proceedings are charged to expense as incurred. For certain proceedings, 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, motions or other proceedings; (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, 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. License Fee Dispute with Government of India, Department of Telecommunications In 1994, the Government of India promulgated a “National Telecommunications Policy” under which the government liberalized the telecommunications sector and required telecommunications service providers to pay fixed license fees. Pursuant to this policy, our subsidiary Hughes Communications India Private Limited (“HCIPL”), formerly known as Hughes Escorts Communications Limited, obtained a license to operate a data network over satellite using VSAT systems. In 2002, HCIPL’s license was amended pursuant to a new government policy that was first established in 1999. The new policy eliminated the fixed license fees and instead required each telecommunications service provider to pay license fees based on its adjusted gross revenue (“AGR”). In March 2005, the Indian Department of Telecommunications (“DOT”) notified HCIPL that, based on its review of HCIPL’s audited accounts and AGR statements, HCIPL must pay additional license fees and penalties and interest on such fees and penalties. HCIPL responded that the DOT had improperly calculated its AGR by including revenue from licensed and unlicensed activities. The DOT rejected this explanation and in 2006, HCIPL filed a petition with an administrative tribunal (the “Tribunal”), challenging the DOT’s calculation of its AGR. The DOT also issued license fee assessments to other telecommunications service providers and a number of similar petitions were filed by several other such providers with the Tribunal. These petitions were amended, consolidated, remanded and re-appealed several times. On April 23, 2015, the Tribunal issued a judgment affirming the DOT’s calculation of AGR for the telecommunications service providers but reversing the DOT’s imposition of interest, penalties and interest on such penalties as excessive. Over subsequent years, the DOT and HCIPL and other telecommunications service providers, respectively, filed several appeals of the Tribunal’s ruling. On October 24, 2019, the Supreme Court of India (“Supreme Court”) issued an order (the “October 2019 Order”) affirming the license fee assessments imposed by the DOT, including its imposition of interest, penalties and interest on the penalties, but without indicating the amount HCIPL is required to pay the DOT, and ordering payment by January 23, 2020. On November 23, 2019, HCIPL and other telecommunication service providers filed a petition asking the Supreme Court to reconsider the October 2019 Order. The petition was denied on January 20, 2020. On January 22, 2020, HCIPL and other telecommunication service providers filed an application requesting that the Supreme Court modify the October 2019 Order to permit the DOT to calculate the final amount due and extend HCIPL’s and the other telecommunication service providers’ payment deadline. On February 14, 2020, the Supreme Court directed HCIPL and the other telecommunication service providers to explain why the Supreme Court should not initiate contempt proceedings for failure to pay the amounts due. During a hearing on March 18, 2020, the Supreme Court ordered that all amounts that were due before the October 2019 Order must be paid, including interest, penalties and interest on the penalties. The Supreme Court also ordered that the parties appear for a further hearing addressing, potentially among other things, a proposal by the DOT to allow for extended or deferred payments of amounts due. On June 11, 2020, the Supreme Court ordered HCIPL and the other telecommunication service providers to submit affidavits addressing the proposal made by the DOT to extend the time frame for payment of the amounts owed and for HCIPL and the other telecommunication providers to provide security for such payments. On September 1, 2020, the Supreme Court issued a judgment permitting a 10-year payment schedule. Under this payment schedule, HCIPL is required to make an annual payment every March 31, through 2031. Following the Supreme Court of India’s October 2019 judgment, HCIPL made payments during the first quarter of 2020, and additional payments on March 31, 2021 and March 31, 2022. The following table presents the components of the accrual: As of March 31, 2022 December 31, 2021 Additional license fees $ 3,750 $ 3,812 Penalties 3,849 3,912 Interest and interest on penalties 81,569 81,389 Less: Payments (19,471) (8,451) Total accrual $ 69,697 $ 80,662 Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accrual and such differences could be significant. Other In addition to the above actions, we are subject to various other legal proceedings and claims, which arise in the ordinary course of business. As part of our ongoing operations, we are 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 we 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, we from time to time receive 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Business segments are components of an enterprise for which separate financial information is available and regularly evaluated by our chief operating decision maker (“CODM”), who is our Chief Executive Officer. We operate in two business segments, Hughes segment and ESS segment. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, and net income (loss) attributable to non-controlling interests (“EBITDA”). 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 total revenue, capital expenditures and EBITDA for each of our business segments: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 External revenue $ 494,106 $ 4,276 $ 3,152 $ 501,534 Intersegment revenue — 198 (198) — Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 Capital expenditures $ 61,021 $ — $ 51,117 $ 112,138 EBITDA $ 191,170 $ 2,691 $ 59,341 $ 253,202 For the three months ended March 31, 2021 External revenue $ 475,859 $ 4,001 $ 2,722 $ 482,582 Intersegment revenue — 88 (88) — Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 Capital expenditures $ 82,196 $ — $ 97,039 $ 179,235 EBITDA $ 198,578 $ 1,919 $ 58,173 $ 258,670 The following table reconciles Income (loss) before income taxes in the Consolidated Statements of Operations to EBITDA: For the three months ended March 31, 2022 2021 Income (loss) before income taxes $ 121,727 $ 99,719 Interest income, net (6,422) (5,949) Interest expense, net of amounts capitalized 14,973 34,667 Depreciation and amortization 120,436 129,286 Net loss (income) attributable to non-controlling interests 2,488 947 EBITDA $ 253,202 $ 258,670 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Other Current Assets, Net and Other Non-current Assets, Net The following table presents the components of Other current assets, net and Other non-current assets, net : As of March 31, 2022 December 31, 2021 Other current assets, net: Inventory 110,001 103,084 Prepaids and deposits 59,957 57,287 Trade accounts receivable - DISH Network $ 5,590 $ 4,244 Other receivables - DISH Network 12,705 12,705 Other, net 21,652 21,124 Total other current assets $ 209,905 $ 198,444 Other non-current assets, net: Capitalized software, net $ 120,965 $ 124,701 Contract acquisition costs, net 80,572 82,986 Other receivables - DISH Network 76,536 77,920 Restricted marketable investment securities 13,327 13,262 Deferred tax assets, net 5,684 5,417 Restricted cash 2,150 980 Contract fulfillment costs, net 1,655 1,721 Other, net 34,905 31,254 Total other non-current assets, net $ 335,794 $ 338,241 Accrued Expenses and Other Current Liabilities and Other Non-Current Liabilities The following table presents the components of Accrued expenses and other current liabilities and Other non-current liabilities: As of March 31, 2022 December 31, 2021 Accrued expenses and other current liabilities: Accrued compensation $ 54,520 $ 63,935 Operating lease obligation 17,032 16,781 Accrued interest 15,741 39,395 Accrued taxes 14,191 11,738 Accrual for license fee dispute 11,157 11,178 Trade accounts payable - DISH Network 638 503 Other 62,804 65,912 Total accrued expenses and other current liabilities $ 176,083 $ 209,442 Other non-current liabilities: Accrual for license fee dispute $ 58,540 $ 69,484 Other 65,910 66,942 Total other non-current liabilities $ 124,450 $ 136,426 Inventory The following table presents the components of inventory: As of March 31, 2022 December 31, 2021 Raw materials $ 18,720 $ 13,778 Work-in-process 10,365 11,705 Finished goods 80,916 77,601 Total inventory $ 110,001 $ 103,084 Supplemental and Non-cash Investing and Financing Activities The following table presents the supplemental and non-cash investing and financing activities: For the three months ended March 31, 2022 2021 Supplemental disclosure of cash flow information: Cash paid for interest, net of amounts capitalized $ 34,918 $ 38,018 Cash paid for income taxes $ 806 $ 407 Non-cash investing and financing activities: Employee benefits paid in Class A common stock $ 7,041 $ 7,124 Increase (decrease) in capital expenditures included in accounts payable, net $ (6,961) $ (1,395) Non-cash net assets received as part of the India JV formation $ 36,701 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited Consolidated Financial Statements and the accompanying notes (collectively, the “Consolidated Financial Statements”) are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. However, our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. |
Use of Estimates | Use of Estimates We are required to make certain estimates and assumptions that affect the amounts reported in these Consolidated Financial Statements. The most significant estimates and assumptions are used in determining: (i) inputs used to recognize revenue over time, including amortization periods for deferred contract acquisition costs; (ii) allowances for doubtful accounts; (iii) deferred taxes and related valuation allowances, including uncertain tax positions; (iv) loss contingencies; (v) fair value of financial instruments; (vi) fair value of assets and liabilities acquired in business combinations; and (vii) asset impairment testing. |
Principles of Consolidation | Principles of Consolidation 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 in which we are the primary beneficiary and in other entities in which we own more than 50% 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 non-controlling interest within stockholders’ equity for the portion of the entity’s equity attributed to the non-controlling ownership interests. All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted Accounting Standard Update (“ASU”) No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is part of the Financial Accounting Standards Board (“FASB”) overall simplification initiative and seeks to simplify the accounting for income taxes by updating certain guidance and removing certain exceptions. Our adoption of this ASU did not have a material impact on our Consolidated Financial Statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) : Disclosures by Business Entities about Government Assistance, which requires business entities (except for not-for-profit entities and employee benefit plans) to disclose information about certain government assistance they receive. The Topic 832 disclosure requirements include: (i) the nature of the transactions and the related accounting policy used; (ii) the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item; and (iii) significant terms and conditions of the transactions. Our adoption of this ASU did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04 - Reference Rate Reform (Topic 848), codified as ASC 848 (“ASC 848”). The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, and other transactions that reference a reference rate expected to be discontinued because of reference rate reform. The guidance may be applied upon issuance of ASC 848 through December 31, 2022. We expect to utilize the optional expedients provided by the guidance for contracts amended solely to use an alternative reference rate. We have evaluated the impact of adopting this new guidance and do not expect it to have a material impact on our Consolidated Financial Statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which provides an exception to fair value measurement for contract assets and contract liabilities related to revenue contracts acquired in a business combination. The ASU requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU is effective for the Company for annual and interim periods in fiscal years beginning after December 15, 2023. Early adoption is permitted. The ASU is applied to business combinations occurring on or after the effective date. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require disclosure of current-period gross write-offs by year of origination for financing receivables. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact of adopting this new guidance on our Consolidated Financial Statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table presents the components of our contract balances: As of March 31, 2022 December 31, 2021 Trade accounts receivable and contract assets, net: Sales and services $ 160,325 $ 154,676 Leasing 5,722 5,668 Total trade accounts receivable 166,047 160,344 Contract assets 49,783 36,307 Allowance for doubtful accounts (16,524) (14,588) Total trade accounts receivable and contract assets, net $ 199,306 $ 182,063 Contract liabilities: Current $ 138,201 $ 141,343 Non-current 10,292 10,669 Total contract liabilities $ 148,493 $ 152,012 The following table presents the revenue recognized in the Consolidated Statements of Operations that was previously included within contract liabilities: For the three months ended March 31, 2022 2021 Revenue $ 88,947 $ 63,081 |
Schedule of Activity in Contract Acquisition Costs | The following table presents the activity in our contract acquisition costs, net: For the three months ended March 31, 2022 2021 Balance at beginning of period $ 82,986 $ 99,837 Additions 15,788 18,400 Amortization expense (20,197) (22,769) Foreign currency translation 1,995 (875) Balance at end of period $ 80,572 $ 94,593 |
Schedule of Disaggregation of Revenue | The following tables present our revenue from customer contracts disaggregated by primary geographic market and by segment: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 North America $ 399,422 $ 4,474 $ 2,947 $ 406,843 South and Central America 42,872 — — 42,872 Other 51,812 — 7 51,819 Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 For the three months ended March 31, 2021 North America $ 398,759 $ 4,089 $ 2,612 $ 405,460 South and Central America 43,030 — — 43,030 Other 34,070 — 22 34,092 Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 The following tables present our revenue disaggregated by the nature of products and services and by segment: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 Services and other revenue: Services $ 400,402 $ 2,935 $ 1,519 $ 404,856 Lease revenue 10,987 1,539 1,429 13,955 Total services and other revenue 411,389 4,474 2,948 418,811 Equipment revenue: Equipment 25,885 — 6 25,891 Design, development and construction services 55,905 — — 55,905 Lease revenue 927 — — 927 Total equipment revenue 82,717 — 6 82,723 Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 For the three months ended March 31, 2021 Services and other revenue: Services $ 413,519 $ 2,690 $ 1,091 $ 417,300 Lease revenue 10,101 1,399 1,537 13,037 Total services and other revenue 423,620 4,089 2,628 430,337 Equipment revenue: Equipment 28,521 — 6 28,527 Design, development and construction services 21,636 — — 21,636 Lease revenue 2,082 — — 2,082 Total equipment revenue 52,239 — 6 52,245 Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 |
Schedule of Operating Lease Revenue | The following table presents our lease revenue by type of lease: For the three months ended March 31, 2022 2021 Sales-type lease revenue: Revenue at lease commencement $ 638 $ 2,082 Interest income 289 73 Total sales-type lease revenue 927 2,155 Operating lease revenue 13,955 12,964 Total lease revenue $ 14,882 $ 15,119 |
Schedule of Sales-type Lease Revenue | The following table presents our lease revenue by type of lease: For the three months ended March 31, 2022 2021 Sales-type lease revenue: Revenue at lease commencement $ 638 $ 2,082 Interest income 289 73 Total sales-type lease revenue 927 2,155 Operating lease revenue 13,955 12,964 Total lease revenue $ 14,882 $ 15,119 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | All assets and liabilities acquired in the India JV formation have been recorded at fair value. The following table presents our preliminary allocation of the purchase price: Amounts Assets: Trade accounts receivable and contract assets, net $ 6,160 Other current assets 2,085 Property and equipment 4,669 Goodwill 23,086 Other intangible assets 4,428 Total assets $ 40,428 Liabilities: Trade accounts payable $ 133 Accrued expenses and other current liabilities 986 Deferred tax liabilities 1,114 Total liabilities $ 2,233 Total purchase price $ 38,195 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted EPS for our Class A and B common stock: For the three months ended March 31, 2022 2021 Net income (loss) attributable to EchoStar Corporation common stock $ 91,433 $ 78,519 Weighted-average common shares outstanding: Basic 85,846 93,871 Dilutive impact of stock awards outstanding 33 25 Diluted 85,879 93,896 Earnings (losses) per share: Basic $ 1.07 $ 0.84 Diluted $ 1.06 $ 0.84 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the number of anti-dilutive options to purchase shares of our Class A common stock which have been excluded from the calculation of our weighted-average common shares outstanding: For the three months ended March 31, 2022 2021 Number of shares 4,650 4,750 |
Marketable Investment Securit_2
Marketable Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Investment Securities | The following table presents our Marketable investment securities : As of March 31, 2022 December 31, 2021 Marketable investment securities: Available-for-sale debt securities: Corporate bonds $ 194,074 $ 289,784 Commercial paper 221,670 498,358 Other debt securities 45,950 92,673 Total available-for-sale debt securities 461,694 880,815 Equity securities 186,226 142,943 Total marketable investment securities, including restricted amounts 647,920 1,023,758 Less: Restricted marketable investment securities (13,327) (13,262) Total marketable investment securities $ 634,593 $ 1,010,496 |
Schedule of Available-for-sale Securities Reconciliation | The following table presents the components of our available-for-sale debt securities: Amortized Unrealized Estimated Cost Gains Losses Fair Value As of March 31, 2022 Corporate bonds $ 194,877 $ — $ (803) $ 194,074 Commercial paper 221,670 — — 221,670 Other debt securities 46,169 — (219) 45,950 Total available-for-sale debt securities $ 462,716 $ — $ (1,022) $ 461,694 As of December 31, 2021 Corporate bonds $ 290,169 $ — $ (385) $ 289,784 Commercial paper 498,358 — — 498,358 Other debt securities 92,742 — (69) 92,673 Total available-for-sale debt securities $ 881,269 $ — $ (454) $ 880,815 |
Schedule of Activity on Available-for-sale Debt Securities | The following table presents the activity on our available-for-sale debt securities: For the three months ended March 31, 2022 2021 Proceeds from sales $ 29,018 $ 181,995 |
Schedule of Activity of Equity Securities | The following table presents the activity of our equity securities: For the three months ended March 31, 2022 2021 Gains (losses) on investments, net $ 31,015 $ 65,568 |
Schedule of Fair Value Measurements | The following table presents our marketable investment securities categorized by the fair value hierarchy, certain of which have historically experienced volatility: Level 1 Level 2 Total As of March 31, 2022 Cash equivalents (including restricted) $ 20,995 $ 766,867 $ 787,862 Available-for-sale debt securities: Corporate bonds $ — $ 194,074 $ 194,074 Commercial paper — 221,670 221,670 Other debt securities 14,148 31,802 45,950 Total available-for-sale debt securities 14,148 447,546 461,694 Equity securities 175,404 10,822 186,226 Total marketable investment securities, including restricted amounts 189,552 458,368 647,920 Less: Restricted marketable investment securities (13,327) — (13,327) Total marketable investment securities $ 176,225 $ 458,368 $ 634,593 As of December 31, 2021 Cash equivalents (including restricted) $ 7,872 $ 423,123 $ 430,995 Available-for-sale debt securities: Corporate bonds $ — $ 289,784 $ 289,784 Commercial paper — 498,358 498,358 Other debt securities 14,274 78,399 92,673 Total available-for-sale debt securities 14,274 866,541 880,815 Equity securities 131,413 11,530 142,943 Total marketable investment securities, including restricted amounts 145,687 878,071 1,023,758 Less: Restricted marketable investment securities (13,262) — (13,262) Total marketable investment securities $ 132,425 $ 878,071 $ 1,010,496 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following table presents the components of Property and equipment, net : As of March 31, 2022 December 31, 2021 Property and equipment, net: Satellites, net $ 1,643,431 $ 1,610,623 Other property and equipment, net 732,712 727,662 Total property and equipment, net $ 2,376,143 $ 2,338,285 The following table presents the components of our satellites, net: Depreciable Life (In Years) As of March 31, 2022 December 31, 2021 Satellites, net: Satellites - owned 7 to 15 $ 1,813,485 $ 1,806,664 Satellites - acquired under finance leases 15 370,728 354,170 Construction in progress — 588,930 541,422 Total satellites 2,773,143 2,702,256 Accumulated depreciation: Satellites - owned (1,022,318) (995,962) Satellites - acquired under finance leases (107,394) (95,671) Total accumulated depreciation (1,129,712) (1,091,633) Total satellites, net $ 1,643,431 $ 1,610,623 The following table presents the depreciation expense associated with our satellites, net: For the three months ended March 31, 2022 2021 Depreciation expense: Satellites - owned $ 24,196 $ 32,161 Satellites - acquired under finance leases 5,987 7,201 Total depreciation expense $ 30,183 $ 39,362 The following table presents capitalized interest associated with our satellites and satellite-related ground infrastructure: For the three months ended March 31, 2022 2021 Capitalized interest $ 10,382 $ 8,563 |
Schedule of Satellites | The following table presents our GEO satellite fleet as of March 31, 2022: GEO Satellite Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 10 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 Al Yah 3 (2) Hughes January 2018 20 W 7 EchoStar IX (3) (4) ESS August 2003 121 W 12 EUTELSAT 10A (“W2A”) (5) Corporate and Other April 2009 10 E - EchoStar XXI Corporate and Other June 2017 10.25 E 15 Finance leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 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 the acquisition of Hughes Communications, Inc. (“Hughes Communications”) and its subsidiaries (the “Hughes Acquisition”). (2) Upon consummation of our joint venture with Al Yah Satellite Communications Company PrJSC (“Yahsat”) in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019. (3) We own the Ka-band and Ku-band payloads on this satellite. (4) EchoStar IX is approaching its end of station-kept life. The Company expects to place the satellite in an inclined-orbit in the fourth quarter of 2022 or first quarter of 2023, but this ability is dependent upon events beyond our control and may not occur on schedule if at all. Inclined-orbit will extend its life but impact revenue generating capabilities. |
Regulatory Authorizations (Tabl
Regulatory Authorizations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Regulatory Authorizations With Finite and Indefinite Useful Lives | The following table presents our Regulatory authorizations, net: Finite lived Cost Accumulated Amortization Total Indefinite lived Total Balance, December 31, 2020 $ 61,381 $ (26,639) $ 34,742 $ 444,020 $ 478,762 Amortization expense — (1,134) (1,134) — (1,134) Currency translation adjustments (2,345) 1,124 (1,221) (315) (1,536) Balance, March 31, 2021 $ 59,036 $ (26,649) $ 32,387 $ 443,705 $ 476,092 Balance, December 31, 2021 $ 57,137 $ (29,088) $ 28,049 $ 441,717 $ 469,766 Amortization expense — (1,071) (1,071) — (1,071) Currency translation adjustments (40) 358 318 1,316 1,634 Balance, March 31, 2022 $ 57,097 $ (29,801) $ 27,296 $ 443,033 $ 470,329 Weighted-average useful life (in years) 13 |
Other Investments (Tables)
Other Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Other Investments and Equity Method Investments | The following table presents our Other investments, net : As of March 31, 2022 December 31, 2021 Other investments, net: Equity method investments $ 89,511 $ 91,226 Other equity investments 141,307 91,636 Other debt investments, net 119,500 114,885 Total other investments, net $ 350,318 $ 297,747 The following table presents revenue recognized: For the three months ended March 31, 2022 2021 Deluxe $ 1,323 $ 1,631 BCS $ 1,771 $ 1,348 The following table presents trade accounts receivable: As of March 31, 2022 December 31, 2021 Deluxe $ 1,040 $ 934 BCS $ 6,575 $ 5,544 The following table presents the activity on our investments: For the three months ended March 31, 2022 2021 Gain (loss) on investments, net $ 49,671 $ 14,156 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amount and Fair Values of Long-term Debt | The following table presents the carrying amount and fair values of our Long-term debt, net: Effective Interest Rate As of March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes: 5 1/4% Senior Secured Notes due 2026 5.320% $ 750,000 $ 765,668 $ 750,000 $ 825,555 Senior Unsecured Notes: 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 777,023 750,000 838,740 Less: Unamortized debt issuance costs (3,815) — (4,006) — Total long-term debt, net $ 1,496,185 $ 1,542,691 $ 1,495,994 $ 1,664,295 |
Related Party Transactions - Di
Related Party Transactions - Dish Network (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents our Services and other revenue - DISH Network : For the three months ended March 31, 2022 2021 Services and other revenue - DISH Network $ 7,957 $ 8,421 The following table presents the related trade accounts receivable: As of March 31, 2022 December 31, 2021 Trade accounts receivable - DISH Network $ 5,590 $ 4,244 The following table presents our operating expenses related to DISH Network: For the three months ended March 31, 2022 2021 Operating expenses - DISH Network $ 1,332 $ 1,307 The following table presents the related trade accounts payable: As of March 31, 2022 December 31, 2021 Trade accounts payable - DISH Network $ 638 $ 503 The following table presents our other receivables owed from DISH Network: As of March 31, 2022 December 31, 2021 Other receivables - DISH Network, current $ 12,705 $ 12,705 Other receivables - DISH Network, noncurrent $ 76,536 $ 77,920 |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrual For License Fee Dispute | The following table presents the components of the accrual: As of March 31, 2022 December 31, 2021 Additional license fees $ 3,750 $ 3,812 Penalties 3,849 3,912 Interest and interest on penalties 81,569 81,389 Less: Payments (19,471) (8,451) Total accrual $ 69,697 $ 80,662 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue, EBITDA, and Capital Expenditures by Operating Segments | The following table presents total revenue, capital expenditures and EBITDA for each of our business segments: Hughes ESS Corporate and Other Consolidated For the three months ended March 31, 2022 External revenue $ 494,106 $ 4,276 $ 3,152 $ 501,534 Intersegment revenue — 198 (198) — Total revenue $ 494,106 $ 4,474 $ 2,954 $ 501,534 Capital expenditures $ 61,021 $ — $ 51,117 $ 112,138 EBITDA $ 191,170 $ 2,691 $ 59,341 $ 253,202 For the three months ended March 31, 2021 External revenue $ 475,859 $ 4,001 $ 2,722 $ 482,582 Intersegment revenue — 88 (88) — Total revenue $ 475,859 $ 4,089 $ 2,634 $ 482,582 Capital expenditures $ 82,196 $ — $ 97,039 $ 179,235 EBITDA $ 198,578 $ 1,919 $ 58,173 $ 258,670 |
Schedule of Reconciliation of EBITDA to Reported Income (Loss) Before Income Taxes | The following table reconciles Income (loss) before income taxes in the Consolidated Statements of Operations to EBITDA: For the three months ended March 31, 2022 2021 Income (loss) before income taxes $ 121,727 $ 99,719 Interest income, net (6,422) (5,949) Interest expense, net of amounts capitalized 14,973 34,667 Depreciation and amortization 120,436 129,286 Net loss (income) attributable to non-controlling interests 2,488 947 EBITDA $ 253,202 $ 258,670 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Assets and Other Liabilities | The following table presents the components of Other current assets, net and Other non-current assets, net : As of March 31, 2022 December 31, 2021 Other current assets, net: Inventory 110,001 103,084 Prepaids and deposits 59,957 57,287 Trade accounts receivable - DISH Network $ 5,590 $ 4,244 Other receivables - DISH Network 12,705 12,705 Other, net 21,652 21,124 Total other current assets $ 209,905 $ 198,444 Other non-current assets, net: Capitalized software, net $ 120,965 $ 124,701 Contract acquisition costs, net 80,572 82,986 Other receivables - DISH Network 76,536 77,920 Restricted marketable investment securities 13,327 13,262 Deferred tax assets, net 5,684 5,417 Restricted cash 2,150 980 Contract fulfillment costs, net 1,655 1,721 Other, net 34,905 31,254 Total other non-current assets, net $ 335,794 $ 338,241 The following table presents the components of Accrued expenses and other current liabilities and Other non-current liabilities: As of March 31, 2022 December 31, 2021 Accrued expenses and other current liabilities: Accrued compensation $ 54,520 $ 63,935 Operating lease obligation 17,032 16,781 Accrued interest 15,741 39,395 Accrued taxes 14,191 11,738 Accrual for license fee dispute 11,157 11,178 Trade accounts payable - DISH Network 638 503 Other 62,804 65,912 Total accrued expenses and other current liabilities $ 176,083 $ 209,442 Other non-current liabilities: Accrual for license fee dispute $ 58,540 $ 69,484 Other 65,910 66,942 Total other non-current liabilities $ 124,450 $ 136,426 |
Schedule of Inventory | The following table presents the components of inventory: As of March 31, 2022 December 31, 2021 Raw materials $ 18,720 $ 13,778 Work-in-process 10,365 11,705 Finished goods 80,916 77,601 Total inventory $ 110,001 $ 103,084 |
Schedule of Noncash Investing and Financing Activities | The following table presents the supplemental and non-cash investing and financing activities: For the three months ended March 31, 2022 2021 Supplemental disclosure of cash flow information: Cash paid for interest, net of amounts capitalized $ 34,918 $ 38,018 Cash paid for income taxes $ 806 $ 407 Non-cash investing and financing activities: Employee benefits paid in Class A common stock $ 7,041 $ 7,124 Increase (decrease) in capital expenditures included in accounts payable, net $ (6,961) $ (1,395) Non-cash net assets received as part of the India JV formation $ 36,701 $ — |
Organization and Business Act_2
Organization and Business Activities (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Components of Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Trade accounts receivable and contract assets, net: | |||
Total trade accounts receivable | $ 166,047 | $ 160,344 | |
Contract assets | 49,783 | 36,307 | |
Allowance for doubtful accounts | (16,524) | (14,588) | |
Total trade accounts receivable and contract assets, net | 199,306 | 182,063 | |
Contract liabilities: | |||
Current | 138,201 | 141,343 | |
Non-current | 10,292 | 10,669 | |
Total contract liabilities | 148,493 | 152,012 | |
Revenue recognized | 88,947 | $ 63,081 | |
Sales and services | |||
Trade accounts receivable and contract assets, net: | |||
Total trade accounts receivable | 160,325 | 154,676 | |
Leasing | |||
Trade accounts receivable and contract assets, net: | |||
Total trade accounts receivable | $ 5,722 | $ 5,668 |
Revenue Recognition - Activity
Revenue Recognition - Activity in Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) In Capitalized Contract Cost [Roll Forward] | ||
Balance at beginning of period | $ 82,986 | $ 99,837 |
Additions | 15,788 | 18,400 |
Amortization expense | (20,197) | (22,769) |
Foreign currency translation | 1,995 | (875) |
Balance at end of period | $ 80,572 | $ 94,593 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 890.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 890.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | |
Remaining performance obligation, percentage | 48.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | |
Remaining performance obligation, percentage | 52.00% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 501,534 | $ 482,582 |
Services and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 418,811 | 430,337 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 404,856 | 417,300 |
Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13,955 | 13,037 |
Total equipment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 82,723 | 52,245 |
Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 25,891 | 28,527 |
Design, development and construction services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 55,905 | 21,636 |
Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 927 | 2,082 |
Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,954 | 2,634 |
Corporate and Other | Services and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,948 | 2,628 |
Corporate and Other | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,519 | 1,091 |
Corporate and Other | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,429 | 1,537 |
Corporate and Other | Total equipment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 6 | 6 |
Corporate and Other | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 6 | 6 |
Corporate and Other | Design, development and construction services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Corporate and Other | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Hughes | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 494,106 | 475,859 |
Hughes | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 494,106 | 475,859 |
Hughes | Operating segments | Services and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 411,389 | 423,620 |
Hughes | Operating segments | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 400,402 | 413,519 |
Hughes | Operating segments | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10,987 | 10,101 |
Hughes | Operating segments | Total equipment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 82,717 | 52,239 |
Hughes | Operating segments | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 25,885 | 28,521 |
Hughes | Operating segments | Design, development and construction services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 55,905 | 21,636 |
Hughes | Operating segments | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 927 | 2,082 |
ESS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,276 | 4,001 |
ESS | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,474 | 4,089 |
ESS | Operating segments | Services and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,474 | 4,089 |
ESS | Operating segments | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,935 | 2,690 |
ESS | Operating segments | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,539 | 1,399 |
ESS | Operating segments | Total equipment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
ESS | Operating segments | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
ESS | Operating segments | Design, development and construction services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
ESS | Operating segments | Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 406,843 | 405,460 |
North America | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,947 | 2,612 |
North America | Hughes | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 399,422 | 398,759 |
North America | ESS | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,474 | 4,089 |
South and Central America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 42,872 | 43,030 |
South and Central America | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
South and Central America | Hughes | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 42,872 | 43,030 |
South and Central America | ESS | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 51,819 | 34,092 |
Other | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 7 | 22 |
Other | Hughes | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 51,812 | 34,070 |
Other | ESS | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 | $ 0 |
Revenue Recognition - Lease Inc
Revenue Recognition - Lease Income By Lease Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Sales-type lease revenue: | ||
Revenue at lease commencement | $ 638 | $ 2,082 |
Interest income | 289 | 73 |
Total sales-type lease revenue | 927 | 2,155 |
Operating lease revenue | 13,955 | 12,964 |
Total lease revenue | $ 14,882 | $ 15,119 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Jan. 04, 2022 | Mar. 31, 2022 |
India JV | ||
Business Acquisition [Line Items] | ||
Equity interest, percentage in joint venture | 67.00% | |
India JV | Bharti | ||
Business Acquisition [Line Items] | ||
Ownership interest | 33.00% | |
India Joint Venture | ||
Business Acquisition [Line Items] | ||
Total consideration | $ 38,195 | |
Payments to acquire business, net | (7,900) | |
Other intangible assets | $ 4,428 | |
India Joint Venture | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Other intangible assets | $ 4,400 | |
Amortization period | 5 years |
Business Combinations - Schedul
Business Combinations - Schedule of Recognized Identified Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jan. 04, 2022 | Dec. 31, 2021 |
Assets: | |||
Goodwill | $ 535,394 | $ 511,086 | |
India Joint Venture | |||
Assets: | |||
Trade accounts receivable and contract assets, net | $ 6,160 | ||
Other current assets | 2,085 | ||
Property and equipment | 4,669 | ||
Goodwill | 23,086 | ||
Other intangible assets | 4,428 | ||
Total assets | 40,428 | ||
Liabilities: | |||
Trade accounts payable | 133 | ||
Accrued expenses and other current liabilities | 986 | ||
Deferred tax liabilities | 1,114 | ||
Total liabilities | 2,233 | ||
Total purchase price | $ 38,195 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to EchoStar Corporation common stock | $ 91,433 | $ 78,519 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 85,846 | 93,871 |
Dilutive impact of stock awards outstanding (in shares) | 33 | 25 |
Diluted (in shares) | 85,879 | 93,896 |
Earnings (losses) per share: | ||
Basic earnings (loss) per share (in dollars per share) | $ 1.07 | $ 0.84 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.06 | $ 0.84 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Number of shares | 4,650 | 4,750 |
Marketable Investment Securit_3
Marketable Investment Securities - Schedule of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | $ 461,694 | $ 880,815 |
Equity securities | 186,226 | 142,943 |
Total marketable investment securities, including restricted amounts | 647,920 | 1,023,758 |
Less: Restricted marketable investment securities | (13,327) | (13,262) |
Marketable investment securities | 634,593 | 1,010,496 |
Corporate bonds | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 194,074 | 289,784 |
Commercial paper | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 221,670 | 498,358 |
Other debt securities | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | $ 45,950 | $ 92,673 |
Marketable Investment Securit_4
Marketable Investment Securities - Schedule of Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | $ 462,716 | $ 881,269 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1,022) | (454) |
Estimated fair value | 461,694 | 880,815 |
Corporate bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 194,877 | 290,169 |
Unrealized gains | 0 | 0 |
Unrealized losses | (803) | (385) |
Estimated fair value | 194,074 | 289,784 |
Commercial paper | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 221,670 | 498,358 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Estimated fair value | 221,670 | 498,358 |
Other debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 46,169 | 92,742 |
Unrealized gains | 0 | 0 |
Unrealized losses | (219) | (69) |
Estimated fair value | $ 45,950 | $ 92,673 |
Marketable Investment Securit_5
Marketable Investment Securities - Activity on Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 29,018 | $ 181,995 |
Marketable Investment Securit_6
Marketable Investment Securities - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Debt securities with contractual maturities of one year or less | $ 448 |
Debt securities with contractual maturities exceeding one year | $ 13.7 |
Marketable Investment Securit_7
Marketable Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gains (losses) on investments, net | $ 31,015 | $ 65,568 |
Marketable Investment Securit_8
Marketable Investment Securities - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair value of marketable securities | ||
Cash equivalents (including restricted) | $ 787,862 | $ 430,995 |
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 461,694 | 880,815 |
Equity securities | 186,226 | 142,943 |
Total marketable investment securities, including restricted amounts | 647,920 | 1,023,758 |
Less: Restricted marketable investment securities | (13,327) | (13,262) |
Marketable investment securities | 634,593 | 1,010,496 |
Corporate bonds | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 194,074 | 289,784 |
Commercial paper | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 221,670 | 498,358 |
Other debt securities | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 45,950 | 92,673 |
Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 20,995 | 7,872 |
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 14,148 | 14,274 |
Equity securities | 175,404 | 131,413 |
Total marketable investment securities, including restricted amounts | 189,552 | 145,687 |
Less: Restricted marketable investment securities | (13,327) | (13,262) |
Marketable investment securities | 176,225 | 132,425 |
Level 1 | Corporate bonds | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 0 | 0 |
Level 1 | Commercial paper | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 0 | 0 |
Level 1 | Other debt securities | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 14,148 | 14,274 |
Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 766,867 | 423,123 |
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 447,546 | 866,541 |
Equity securities | 10,822 | 11,530 |
Total marketable investment securities, including restricted amounts | 458,368 | 878,071 |
Less: Restricted marketable investment securities | 0 | 0 |
Marketable investment securities | 458,368 | 878,071 |
Level 2 | Corporate bonds | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 194,074 | 289,784 |
Level 2 | Commercial paper | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | 221,670 | 498,358 |
Level 2 | Other debt securities | ||
Available-for-sale debt securities: | ||
Total available-for-sale debt securities | $ 31,802 | $ 78,399 |
Property and Equipment - Major
Property and Equipment - Major Asset Class (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property and equipment, net: | ||
Property and equipment, net | $ 2,376,143 | $ 2,338,285 |
Satellites, net | ||
Property and equipment, net: | ||
Property and equipment, net | 1,643,431 | 1,610,623 |
Other property and equipment, net | ||
Property and equipment, net: | ||
Property and equipment, net | $ 732,712 | $ 727,662 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)satellitemi | Dec. 31, 2021USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 10 | |
Level 2 | ||
Property, Plant and Equipment [Line Items] | ||
Fair values of in-orbit incentive obligations | $ | $ 51.7 | $ 53.2 |
Satellite-related obligations | ||
Property, Plant and Equipment [Line Items] | ||
Satellite-related obligations | $ | $ 299.8 | $ 342.2 |
Satellites, net | ||
Property, Plant and Equipment [Line Items] | ||
Length of satellites utilized in geosynchronous orbit above the equator (in miles) | mi | 22,300 | |
Satellites - owned | ||
Property, Plant and Equipment [Line Items] | ||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 7 | |
Satellites, Leased | ||
Property, Plant and Equipment [Line Items] | ||
Number of satellites utilized under finance lease | 3 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Satellites (Details) | 3 Months Ended |
Mar. 31, 2022 | |
SPACEWAY 3 | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 10 years |
EchoStar XVII | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
EchoStar XIX | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
Al Yah 3 | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 7 years |
EchoStar IX | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 12 years |
EchoStar XXI | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
Eutelsat 65 West A | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
Telesat T19V | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
EchoStar 105/SES-11 | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (In Years) | 15 years |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Satellites, net: | ||
Satellites - acquired under finance leases | $ 370,728 | $ 354,170 |
Accumulated depreciation: | ||
Total satellites, net | 2,376,143 | 2,338,285 |
Satellites - owned | ||
Satellites, net: | ||
Property and equipment, gross | 1,813,485 | 1,806,664 |
Accumulated depreciation: | ||
Accumulated depreciation | $ (1,022,318) | (995,962) |
Satellites - owned | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life (In Years) | 7 years | |
Satellites - owned | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life (In Years) | 15 years | |
Satellites - acquired under finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life (In Years) | 15 years | |
Accumulated depreciation: | ||
Accumulated depreciation | $ (107,394) | (95,671) |
Construction in progress | ||
Satellites, net: | ||
Property and equipment, gross | 588,930 | 541,422 |
Total Satellites | ||
Satellites, net: | ||
Total satellites | 2,773,143 | 2,702,256 |
Accumulated depreciation: | ||
Accumulated depreciation | (1,129,712) | (1,091,633) |
Total satellites, net | $ 1,643,431 | $ 1,610,623 |
Property and Equipment - Sche_3
Property and Equipment - Schedule of Depreciation and Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Depreciation expense: | ||
Total depreciation expense | $ 120,436 | $ 129,286 |
Capitalized interest | 10,382 | 8,563 |
Total Satellites | ||
Depreciation expense: | ||
Total depreciation expense | 30,183 | 39,362 |
Satellites - owned | ||
Depreciation expense: | ||
Depreciation | 24,196 | 32,161 |
Satellites - acquired under finance leases | ||
Depreciation expense: | ||
Amortization of right-of-use assets | $ 5,987 | $ 7,201 |
Regulatory Authorizations - Sch
Regulatory Authorizations - Schedule of Regulatory Authorizations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Amortization | ||
Amortization expense | $ (1,071) | $ (1,134) |
Indefinite lived | ||
Balance at the beginning of the period | 441,717 | 444,020 |
Currency translation adjustment | 1,316 | (315) |
Balance at the end of the period | 443,033 | 443,705 |
Total | ||
Balance at the beginning of the period | 469,766 | 478,762 |
Currency translation adjustment | 1,634 | (1,536) |
Balance at the end of the period | $ 470,329 | 476,092 |
Weighted-average useful life (in years) | 13 years | |
Regulatory authorization | ||
Cost | ||
Balance at the beginning of the period | $ 57,137 | 61,381 |
Currency translation adjustments | (40) | (2,345) |
Balance at the end of the period | 57,097 | 59,036 |
Accumulated Amortization | ||
Balance at the beginning of the period | (29,088) | (26,639) |
Amortization expense | (1,071) | (1,134) |
Currency translation adjustment | 358 | 1,124 |
Balance at the end of the period | (29,801) | (26,649) |
Total | ||
Balance at the beginning of the period | 28,049 | 34,742 |
Currency translation adjustment | 318 | (1,221) |
Balance at the end of the period | $ 27,296 | $ 32,387 |
Other Investments - Schedule of
Other Investments - Schedule of Other Investments, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other investments, net: | ||
Equity method investments | $ 89,511 | $ 91,226 |
Other equity investments | 141,307 | 91,636 |
Other debt investments, net | 119,500 | 114,885 |
Total other investments, net | $ 350,318 | $ 297,747 |
Other Investments - Narrative (
Other Investments - Narrative (Details) | Mar. 31, 2022 | Dec. 31, 2018 |
Dish Mexico | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest, percentage in joint venture | 49.00% | |
Deluxe | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest, percentage in joint venture | 50.00% | |
BCS | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest, percentage in joint venture | 20.00% |
Other Investments - Schedule _2
Other Investments - Schedule of Revenue Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Deluxe | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue from related parties | $ 1,323 | $ 1,631 |
BCS | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue from related parties | $ 1,771 | $ 1,348 |
Other Investments - Schedule _3
Other Investments - Schedule of Trade Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deluxe | ||
Schedule of Equity Method Investments [Line Items] | ||
Receivables from related party | $ 1,040 | $ 934 |
BCS | ||
Schedule of Equity Method Investments [Line Items] | ||
Receivables from related party | $ 6,575 | $ 5,544 |
Other Investments - Other Equit
Other Investments - Other Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Gain (loss) on investments, net | $ 49,671 | $ 14,156 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt and Capital Lease Obligations | ||
Less: Unamortized debt issuance costs | $ (3,815) | $ (4,006) |
Carrying amount, total long-term debt | 1,496,185 | 1,495,994 |
Fair value, total long-term debt | $ 1,542,691 | 1,664,295 |
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, gross | $ 750,000 | 750,000 |
Fair value, total long-term debt | $ 765,668 | 825,555 |
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, gross | $ 750,000 | 750,000 |
Fair value, total long-term debt | $ 777,023 | $ 838,740 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) | $ 32,782 | $ 22,147 |
Effective income tax rate | 26.90% | 22.20% |
Related Party Transactions - _2
Related Party Transactions - DISH Network - Overview (Details) | 1 Months Ended | |||||
Sep. 30, 2019$ / sharesshares | May 31, 2019shares | Feb. 28, 2017 | Mar. 31, 2022$ / shares | Dec. 31, 2021$ / shares | Sep. 30, 2009transponder | |
Related party transactions | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
TeleSat Transponder Agreement | Telesat Canada | ||||||
Related party transactions | ||||||
Number of DBS transponders available to receive services | transponder | 32 | |||||
Common Stock | BSS Corp. | ||||||
Related party transactions | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||
Share of BSS common stock issued for each share of Echostar Class A or Class B common stock (in shares) | shares | 1 | |||||
Common Class A | ||||||
Related party transactions | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Common Class A | DISH Network | ||||||
Related party transactions | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||
Entity shares issued per acquiree share (in shares) | shares | 0.23523769 | 0.23523769 | ||||
DISH Network | Share Exchange Agreement | EchoStar Technologies segment | ||||||
Related party transactions | ||||||
Ownership interest acquired by related party (as a percent) | 100.00% | |||||
DISH Network | DISH Nimiq 5 Agreement | ||||||
Related party transactions | ||||||
Number of DBS transponders available to receive services | transponder | 32 | |||||
DISH Network | Preferred Tracking Stock | Hughes Retail Group | Satellite and Tracking Stock Transaction | ||||||
Related party transactions | ||||||
Percentage of economic interest held | 80.00% |
Related Party Transactions - _3
Related Party Transactions - Dish Network - DISH Network - Services and Other Revenue - DISH Network (Details) - DISH Network - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Principal Business | |||
Services and other revenue - DISH Network | $ 7,957 | $ 8,421 | |
Trade accounts receivable - DISH Network | $ 5,590 | $ 4,244 |
Related Party Transactions - _4
Related Party Transactions - Dish Network - Real Estate Leases to DISH Network (Details) - Related Party Transactions, Lessor, Operating Lease, Real Estate - DISH Network | 1 Months Ended | 3 Months Ended |
Mar. 31, 2017 | Mar. 31, 2022 | |
100 Inverness Lease Agreement | ||
Related party transactions | ||
Required minimum notice for termination of agreement (days) | 180 days | |
Period for termination of agreement after lease extension | 30 days | |
Meridian Lease Agreement | ||
Related party transactions | ||
Period for termination of agreement after lease extension | 30 days |
Related Party Transactions - _5
Related Party Transactions - Dish Network - TerreStar Agreement (Details) - DISH Network - TerreStar Agreement | 1 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Minimum termination notice period (days) | 21 days |
Required minimum notice for termination of agreement (days) | 90 days |
Related Party Transactions - _6
Related Party Transactions - Dish Network - Hughes Broadband Distribution Agreement (Details) - Hughes Broadband Distribution Agreement | 1 Months Ended |
Oct. 31, 2012 | |
Related party transactions | |
Agreement term (in years) | 5 years |
Automatic renewal period (in years) | 1 year |
Required minimum notice for termination of agreement (days) | 180 days |
Related Party Transactions - _7
Related Party Transactions - Dish Network - DBSD North America Agreement (Details) - DISH Network - DBSD North America Agreement | 1 Months Ended | ||
Feb. 28, 2027 | Feb. 28, 2019 | Dec. 31, 2017 | |
Related party transactions | |||
Required minimum notice for termination of agreement (days) | 120 days | ||
Minimum termination notice period (days) | 21 days | ||
Forecast | |||
Related party transactions | |||
Minimum termination notice period (days) | 180 days |
Related Party Transactions - _8
Related Party Transactions - Dish Network - Hughes Equipment and Services Agreement (Details) - DISH Network - Hughes Equipment And Service Agreement | 1 Months Ended |
Feb. 28, 2019 | |
Related party transactions | |
Agreement term (in years) | 5 years |
Automatic renewal period (in years) | 1 year |
Required minimum notice for termination of agreement (days) | 180 days |
Minimum termination notice period (days) | 365 days |
Related Party Transactions - _9
Related Party Transactions - Dish Network - Operating Expenses - DISH Network (Details) - DISH Network - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related party transactions | |||
Operating expenses - DISH Network | $ 1,332 | $ 1,307 | |
Trade accounts payable - DISH Network | $ 638 | $ 503 |
Related Party Transactions -_10
Related Party Transactions - Dish Network - Amended and Restated Professional Services Agreement (Details) - DISH Network - Amended and Restated Professional Services Agreement | 1 Months Ended |
Jan. 31, 2010 | |
Related party transactions | |
Automatic renewal period (in years) | 1 year |
Required minimum notice for termination of agreement (days) | 60 days |
Required minimum notice for termination of individual service (days) | 30 days |
Related Party Transactions -_11
Related Party Transactions - Dish Network - Real Estate Leases From DISH Network (Details) - Related Party Transactions, Lessee, Operating Lease, Real Estate - DISH Network - Cheyenne Lease Agreement | 1 Months Ended | ||
Mar. 31, 2021 | Nov. 30, 2021 | Aug. 31, 2018 | |
Related party transactions | |||
Term of contract (in years) | 1 year | ||
Renewal term | 1 year | 1 year | |
Renewal term, additional years | 3 years |
Related Party Transactions -_12
Related Party Transactions - Dish Network - Collocation and Antenna Space Agreements (Details) - DISH Network - Collocation and Antenna Space Agreements - renewal | 1 Months Ended | |||
Mar. 31, 2021 | Sep. 30, 2019 | Aug. 31, 2017 | Aug. 31, 2015 | |
Related party transactions | ||||
Number of renewal terms | 4 | |||
Term of renewal option (in years) | 3 years | 3 years | ||
Termination notice required (days) | 180 days | |||
Cheyenne, Wyoming | ||||
Related party transactions | ||||
Number of renewal terms | 4 | |||
Term of renewal option (in years) | 3 years | |||
Agreement term (in years) | 5 years | |||
Cheyenne, Wyoming And Gilbert, Arizona | ||||
Related party transactions | ||||
Number of renewal terms | 4 | |||
Term of renewal option (in years) | 3 years | |||
Agreement term (in years) | 5 years | |||
Maximum | ||||
Related party transactions | ||||
Required renewal notice (days) | 120 days | |||
Maximum | Cheyenne, Wyoming | ||||
Related party transactions | ||||
Required renewal notice (days) | 120 days | |||
Maximum | Cheyenne, Wyoming And Gilbert, Arizona | ||||
Related party transactions | ||||
Required renewal notice (days) | 120 days | |||
Minimum | ||||
Related party transactions | ||||
Required renewal notice (days) | 90 days | |||
Minimum | Cheyenne, Wyoming | ||||
Related party transactions | ||||
Required renewal notice (days) | 90 days | |||
Minimum | Cheyenne, Wyoming And Gilbert, Arizona | ||||
Related party transactions | ||||
Required renewal notice (days) | 90 days |
Related Party Transactions -_13
Related Party Transactions - Dish Network - Hughes Broadband Master Services Agreement (Details) - DISH Network - Hughes Broadband Master Services Agreement - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related party transactions | |||
Automatic renewal period (in years) | 1 year | ||
Required minimum notice for termination of agreement (days) | 90 days | ||
Sales commissions and fees | $ 1.7 | $ 1.9 |
Related Party Transactions -_14
Related Party Transactions - Dish Network - 2019 TT&C Agreement (Details) - DISH Network - TT&C Agreement | 1 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2019 | |
Related party transactions | ||
Term of renewal option (in years) | 3 years | 1 year |
Required renewal notice (days) | 90 days | |
Termination notice required (months) | 12 months |
Related Party Disclosures - DIS
Related Party Disclosures - DISH Network - Referral Marketing Agreement (Details) | 1 Months Ended |
Jun. 30, 2021 | |
DISH Network | Referral Marketing Agreement | |
Related party transactions | |
Termination notice | 90 days |
Related Party Transactions -_15
Related Party Transactions - Dish Network - Other Receivables - DISH Network (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Related party transactions | ||
Other receivables - DISH Network | $ 12,705 | $ 12,705 |
Other receivables - DISH Network, noncurrent | 76,536 | 77,920 |
DISH Network | ||
Related party transactions | ||
Other receivables - DISH Network | 12,705 | 12,705 |
Other receivables - DISH Network, noncurrent | $ 76,536 | $ 77,920 |
Related Party Transactions -_16
Related Party Transactions - Dish Network - Other Agreements (Details) - shares | 1 Months Ended | |
Sep. 30, 2019 | May 31, 2019 | |
Common Class A | DISH Network | ||
Related party transactions | ||
Entity shares issued per acquiree share (in shares) | 0.23523769 | 0.23523769 |
Related Party Transactions -_17
Related Party Transactions - Other (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Hughes Systique | ||
Related party transactions | ||
Ownership interest in related party (as a percent) | 42.00% | |
Ownership interest percentage by related party | 25.00% | |
TerreStar Solutions, Inc. | ||
Related party transactions | ||
Investment nonvoting interest ownership percentage(at least) | 15.00% | |
Revenue from related parties | $ 0.5 | $ 0.4 |
Trade accounts receivable - DISH Network | $ 0.2 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) | Sep. 01, 2020 |
License Fee Dispute | |
Loss Contingencies [Line Items] | |
Payment schedule term (in years) | 10 years |
Contingencies - Accrual For Lic
Contingencies - Accrual For License Fee Dispute (Details) - License Fee Dispute - Hughes Network Systems - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Total accrual | $ 69,697 | $ 80,662 |
Less: Payments | (19,471) | (8,451) |
Additional license fees | ||
Loss Contingencies [Line Items] | ||
Total accrual | 3,750 | 3,812 |
Penalties | ||
Loss Contingencies [Line Items] | ||
Total accrual | 3,849 | 3,912 |
Interest and interest on penalties | ||
Loss Contingencies [Line Items] | ||
Total accrual | $ 81,569 | $ 81,389 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 501,534 | $ 482,582 |
Capital expenditures | 112,138 | 179,235 |
EBITDA | 253,202 | 258,670 |
Income (loss) before income taxes | 121,727 | 99,719 |
Interest income, net | (6,422) | (5,949) |
Interest expense, net of amounts capitalized | 14,973 | 34,667 |
Depreciation and amortization | 120,436 | 129,286 |
Net loss (income) attributable to non-controlling interests | 2,488 | 947 |
All Other Segments and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,152 | 2,722 |
Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (198) | (88) |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,954 | 2,634 |
Capital expenditures | 51,117 | 97,039 |
EBITDA | 59,341 | 58,173 |
Hughes segment | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 494,106 | 475,859 |
Hughes segment | Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Hughes segment | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 494,106 | 475,859 |
Capital expenditures | 61,021 | 82,196 |
EBITDA | 191,170 | 198,578 |
EchoStar Satellite Services segment | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,276 | 4,001 |
EchoStar Satellite Services segment | Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 198 | 88 |
EchoStar Satellite Services segment | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,474 | 4,089 |
Capital expenditures | 0 | 0 |
EBITDA | $ 2,691 | $ 1,919 |
Supplemental Financial Inform_3
Supplemental Financial Information - Other Current Assets, Net and Other Non-current Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Other current assets, net: | ||||
Inventory | $ 110,001 | $ 103,084 | ||
Prepaids and deposits | 59,957 | 57,287 | ||
Trade accounts receivable - DISH Network | 5,590 | 4,244 | ||
Other receivables - DISH Network | 12,705 | 12,705 | ||
Other, net | 21,652 | 21,124 | ||
Total other current assets | 209,905 | 198,444 | ||
Other non-current assets, net: | ||||
Capitalized software, net | 120,965 | 124,701 | ||
Contract acquisition costs, net | 80,572 | 82,986 | $ 94,593 | $ 99,837 |
Other receivables - DISH Network, noncurrent | 76,536 | 77,920 | ||
Restricted marketable investment securities | 13,327 | 13,262 | ||
Deferred tax assets, net | 5,684 | 5,417 | ||
Restricted cash | 2,150 | 980 | ||
Contract fulfillment costs, net | 1,655 | 1,721 | ||
Other, net | 34,905 | 31,254 | ||
Total other non-current assets, net | $ 335,794 | $ 338,241 |
Supplemental Financial Inform_4
Supplemental Financial Information - Accrued Expenses and Other Current Liabilities and Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued expenses and other current liabilities: | ||
Accrued compensation | $ 54,520 | $ 63,935 |
Operating lease obligation | 17,032 | 16,781 |
Accrued interest | 15,741 | 39,395 |
Accrued taxes | 14,191 | 11,738 |
Accrual for license fee dispute | 11,157 | 11,178 |
Trade accounts payable - DISH Network | 638 | 503 |
Other | 62,804 | 65,912 |
Total accrued expenses and other current liabilities | 176,083 | 209,442 |
Other non-current liabilities: | ||
Accrual for license fee dispute | 58,540 | 69,484 |
Other | 65,910 | 66,942 |
Total other non-current liabilities | $ 124,450 | $ 136,426 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total accrued expenses and other current liabilities | Total accrued expenses and other current liabilities |
Supplemental Financial Inform_5
Supplemental Financial Information - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 18,720 | $ 13,778 |
Work-in-process | 10,365 | 11,705 |
Finished goods | 80,916 | 77,601 |
Total inventory | $ 110,001 | $ 103,084 |
Supplemental Financial Inform_6
Supplemental Financial Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | $ 34,918 | $ 38,018 |
Cash paid for income taxes | 806 | 407 |
Non-cash investing and financing activities: | ||
Employee benefits paid in Class A common stock | 7,041 | 7,125 |
Increase (decrease) in capital expenditures included in accounts payable, net | (6,961) | (1,395) |
Non-cash net assets received as part of the India JV formation | 36,701 | 0 |
Common Class A | ||
Non-cash investing and financing activities: | ||
Employee benefits paid in Class A common stock | $ 7,041 | $ 7,124 |