Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Current Fiscal Year End Date | --12-31 | |
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 | 9601 South Meridian Boulevard | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | (303) | |
Local Phone Number | 723-1000 | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | SATS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001415404 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 140,173,977 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 131,348,468 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 613,702 | $ 1,821,376 |
Marketable investment securities | 152,649 | 623,044 |
Trade accounts receivable, net of allowance for credit losses of $84,906 and $74,390, respectively | 1,023,089 | 1,122,139 |
Inventory | 632,952 | 665,169 |
Prepaids and other assets | 677,982 | 644,005 |
Other current assets | 16,165 | 16,081 |
Total current assets | 3,116,539 | 4,891,814 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 120,979 | 118,065 |
Property and equipment, net | 9,589,433 | 9,561,834 |
Regulatory authorizations, net | 38,809,600 | 38,572,980 |
Other investments, net | 309,189 | 314,370 |
Operating lease assets | 3,092,070 | 3,065,448 |
Intangible assets, net | 127,670 | 172,892 |
Other noncurrent assets, net | 390,937 | 411,491 |
Total noncurrent assets | 52,439,878 | 52,217,080 |
Total assets | 55,556,417 | 57,108,894 |
Current Liabilities: | ||
Trade accounts payable | 573,299 | 774,011 |
Deferred revenue and other | 712,783 | 754,658 |
Accrued programming | 1,485,798 | 1,427,762 |
Accrued interest | 408,134 | 297,678 |
Other accrued expenses and liabilities | 1,734,288 | 1,717,826 |
Current portion of long-term debt and finance lease obligations (Note 9) | 2,090,661 | 3,046,654 |
Total current liabilities | 7,004,963 | 8,018,589 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion (Note 9) | 19,696,803 | 19,717,266 |
Deferred tax liabilities, net | 4,998,855 | 5,014,309 |
Operating lease liabilities | 3,157,720 | 3,121,307 |
Long-term deferred revenue and other long-term liabilities | 856,926 | 849,131 |
Total long-term obligations, net of current portion | 28,710,304 | 28,702,013 |
Total liabilities | 35,715,267 | 36,720,602 |
Commitments and Contingencies (Note 10) | ||
Redeemable noncontrolling interests (Note 2) | 438,382 | |
Stockholders' Equity (Deficit): | ||
Additional paid-in capital | 8,310,877 | 8,301,979 |
Accumulated other comprehensive income (loss) | (164,604) | (160,056) |
Accumulated earnings (deficit) | 11,630,607 | 11,737,983 |
Total EchoStar stockholders' equity (deficit) | 19,777,151 | 19,880,177 |
Noncontrolling interests | 63,999 | 69,733 |
Total stockholders' equity (deficit) | 19,841,150 | 19,949,910 |
Total liabilities and stockholders' equity (deficit) | 55,556,417 | 57,108,894 |
Class A common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | 140 | 140 |
Class B common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | $ 131 | $ 131 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Allowance for credit losses on trade accounts receivable | $ 84,906 | $ 74,390 |
Class A common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued | 140,170,052 | 140,153,020 |
Common stock, shares outstanding | 140,170,052 | 140,153,020 |
Class B common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 131,348,468 | 131,348,468 |
Common stock, shares outstanding | 131,348,468 | 131,348,468 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Total revenue | $ 4,014,843 | $ 4,387,666 |
Costs and Expenses (exclusive of depreciation and amortization): | ||
Cost of services | 2,557,182 | 2,462,600 |
Cost of sales - equipment and other | 363,083 | 520,060 |
Selling, general and administrative expenses | 624,422 | 700,772 |
Depreciation and amortization | 485,400 | 347,754 |
Impairment of long-lived assets and goodwill | 3,142 | |
Total costs and expenses | 4,030,087 | 4,034,328 |
Operating income (loss) | (15,244) | 353,338 |
Other Income (Expense): | ||
Interest income, net | 30,462 | 68,186 |
Interest expense, net of amounts capitalized (Note 2) | (99,408) | (20,033) |
Other, net (Note 5) | (26,110) | (34,761) |
Total other income (expense) | (95,056) | 13,392 |
Income (loss) before income taxes | (110,300) | 366,730 |
Income tax (provision) benefit, net | 1,925 | (93,885) |
Net income (loss) | (108,375) | 272,845 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (999) | 19,311 |
Net income (loss) attributable to EchoStar | $ (107,376) | $ 253,534 |
Weighted-average common shares outstanding - Class A and B common stock: | ||
Basic (in shares) | 271,519 | 269,833 |
Diluted (in shares) | 271,519 | 307,410 |
Earnings per share - Class A and B common stock: | ||
Basic net income (loss) per share attributable to EchoStar (In dollar per share) | $ (0.40) | $ 0.94 |
Diluted net income (loss) per share attributable to EchoStar (In dollar per share) | $ (0.40) | $ 0.82 |
Comprehensive Income (Loss): | ||
Net income (loss) | $ (108,375) | $ 272,845 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (5,591) | 8,124 |
Unrealized holding gains (losses) on available-for-sale debt securities | 1,452 | (240) |
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) | (1,528) | (1) |
Deferred income tax (expense) benefit, net | (126) | |
Total other comprehensive income (loss), net of tax | (5,667) | 7,757 |
Comprehensive income (loss) | (114,042) | 280,602 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (2,118) | 21,280 |
Comprehensive income (loss) attributable to EchoStar | (111,924) | 259,322 |
Service and other revenue | ||
Revenue: | ||
Total revenue | 3,819,673 | 4,180,721 |
Equipment sales and other revenue | ||
Revenue: | ||
Total revenue | $ 195,170 | $ 206,945 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Class A and B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interests | Redeemable Noncontrolling Interests | Total |
Balance at Dec. 31, 2022 | $ 269 | $ 8,222,599 | $ (175,267) | $ 13,440,040 | $ 98,192 | $ 464,359 | $ 21,585,833 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | (385) | (385) | |||||
Employee benefits | 1 | 5,420 | 5,421 | ||||
Employee Stock Purchase Plan | 4,352 | 4,352 | |||||
Non-cash, stock-based compensation | 14,628 | 14,628 | |||||
Other comprehensive income (loss): | 5,788 | 1,969 | 7,757 | ||||
Net income (loss) attributable to noncontrolling interests | (1,094) | 20,405 | (1,094) | ||||
Net income (loss) attributable to EchoStar | 253,534 | 253,534 | |||||
Balance at Mar. 31, 2023 | 270 | 8,246,614 | (169,479) | 13,693,574 | 99,067 | 484,764 | 21,870,046 |
Balance at Dec. 31, 2023 | 271 | 8,301,979 | (160,056) | 11,737,983 | 69,733 | 438,382 | 19,949,910 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | (160) | (160) | |||||
Non-cash, stock-based compensation | 9,058 | 9,058 | |||||
Other comprehensive income (loss): | (4,548) | (1,119) | (5,667) | ||||
Purchase of SNR Management's ownership interest in SNR HoldCo | (441,998) | ||||||
Net income (loss) attributable to noncontrolling interests | (4,615) | $ 3,616 | (4,615) | ||||
Net income (loss) attributable to EchoStar | (107,376) | (107,376) | |||||
Balance at Mar. 31, 2024 | $ 271 | $ 8,310,877 | $ (164,604) | $ 11,630,607 | $ 63,999 | $ 19,841,150 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (108,375) | $ 272,845 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 485,400 | 347,754 |
Impairment of long-lived assets and goodwill | 3,142 | |
Realized and unrealized losses (gains) on investments, impairments and other | 23,893 | 7,368 |
Realized and unrealized losses (gains) on derivatives | 28,961 | |
Non-cash, stock-based compensation | 9,058 | 14,628 |
Deferred tax expense (benefit) | (11,688) | 77,265 |
Changes in allowance for credit losses | 10,516 | 1,004 |
Change in long-term deferred revenue and other long-term liabilities | (3,871) | (8,027) |
Other, net | 64,914 | 34,380 |
Changes in current assets and current liabilities, net | (18,588) | 10,627 |
Net cash flows from operating activities | 451,259 | 789,947 |
Cash Flows From Investing Activities: | ||
Purchases of marketable investment securities | (19,135) | (606,676) |
Sales and maturities of marketable investment securities | 458,792 | 1,372,198 |
Purchases of property and equipment | (519,612) | (766,281) |
Refunds and other receipts of purchases of property and equipment | 15,000 | |
Capitalized interest related to regulatory authorizations (Note 2) | (158,084) | (199,395) |
Purchases of regulatory authorizations, including deposits | (1,104) | (1,771) |
Other, net | 998 | (17,933) |
Net cash flows from investing activities | (238,145) | (204,858) |
Cash Flows From Financing Activities: | ||
Repayment of long-term debt and finance lease obligations | (27,125) | (27,255) |
Redemption and repurchases of convertible and senior notes | (951,168) | (1,443,179) |
Proceeds from issuance of senior notes | 1,500,000 | |
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | (160) | 3,967 |
Purchase of SNR Management's ownership interest in SNR HoldCo | (441,998) | |
Proceeds from accrued interest in conjunction with the issuance of senior notes | 34,760 | |
Debt issuance costs and debt (discount) premium | 21,635 | |
Other, net | (5,073) | |
Net cash flows from financing activities | (1,420,451) | 84,855 |
Effect of exchange rates on cash and cash equivalents | (849) | 1,677 |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (1,208,186) | 671,621 |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 5) | 1,911,601 | 2,561,803 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 5) | $ 703,415 | $ 3,233,424 |
Organization and Business Activ
Organization and Business Activities | 3 Months Ended |
Mar. 31, 2024 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activities Principal Business EchoStar Corporation is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada. Its subsidiaries (which together with EchoStar Corporation are referred to as “EchoStar,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) operate four primary business segments. Recent Developments Merger with DISH Network On December 31, 2023, we completed the acquisition of DISH Network pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of October 2, 2023 (the “Amended Merger Agreement”), by and among us, EAV Corp., a Nevada corporation and our wholly owned subsidiary (“Merger Sub”), and DISH Network, pursuant to which we acquired DISH Network by means of the merger of Merger Sub with and into DISH Network (the “Merger”), with DISH Network surviving the Merger as our wholly owned subsidiary. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. With the Merger complete, we are currently focused on the process of integrating our and DISH Network’s business in a manner that facilitates synergies, cost savings, growth opportunities and achieves other anticipated benefits (the “Integration”). Future Capital Requirements The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our cash and cash equivalents and marketable investment securities totaled $766 million as of March 31, 2024 (“Cash on Hand”). As reflected in the condensed consolidated financial statements as of March 31, 2024, we have $1.983 billion of debt maturing in November 2024, and we are forecasting negative cash flows for the remainder of the calendar year 2024. Because we do not currently have committed financing to fund our operations for at least twelve months from the issuance of these condensed consolidated financial statements, substantial doubt exists about our ability to continue as a going concern. We do not currently have the necessary Cash on Hand and/or projected future cash flows to fund fourth quarter operations or the November 2024 debt maturity. To address our capital needs, we are in active discussions with funding sources to raise additional capital. We cannot provide assurances that we will be successful in obtaining such new financing necessary for us to have sufficient liquidity. Further, if we are not successful in these endeavors, then capital expenditures to meet future FCC build-out requirements and wireless customer growth initiatives will be adversely affected. The condensed consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we not continue as a going concern. Segments We currently operate four primary business segments: (1) Pay-TV; (2) Retail Wireless; (3) 5G Network Deployment; and (4) Broadband and Satellite Services. Pay-TV We offer pay-TV services under the DISH® brand and the SLING® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). As of March 31, 2024, we had 8.178 million Pay-TV subscribers in the United States, including 6.258 million DISH TV subscribers and 1.920 million SLING TV subscribers. Retail Wireless We offer nationwide prepaid and postpaid retail wireless services to subscribers primarily under our Boost Mobile® and Gen Mobile® brands (“Retail Wireless” services), as well as a competitive portfolio of wireless devices. Prepaid wireless subscribers generally pay in advance for monthly access to wireless talk, text and data services. Postpaid wireless subscribers are qualified to pay after receiving wireless talk, text and data services, and may also qualify for device financing arrangements. We are currently operating our Retail Wireless segment primarily as a mobile virtual network operator (“MVNO”) as we continue our 5G Network Deployment and commercialize and grow customer traffic on our 5G Network, as defined below. We are transitioning our Retail Wireless segment to a mobile network operator (“MNO”) as our 5G Network has become commercially available and we grow customer traffic on our 5G Network. We are currently activating Boost Mobile subscribers with compatible devices onto our 5G Network in markets where we have reached voice over new radio (“VoNR”) 5G VoNR reaching approximately 200 million Americans. 5G Network Deployment We have invested a total of over $30 billion in Wireless spectrum licenses. The $30 billion of investments related to Wireless spectrum licenses does not include $9 billion of capitalized interest related to the carrying value of such licenses. See Note 2 and Note 10 for further information. We will need to raise additional capital in the future, which may not be available on favorable terms, to fund the efforts described below, as well as, among other things, make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. There can be no assurance that we will be able to profitably deploy our Wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. See Note 10 for further information. Our Wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. We plan to commercialize our Wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (our “5G Network Deployment”). We have committed to deploy a facilities-based 5G broadband network (our “5G Network”) capable of serving increasingly larger portions of the U.S. population at different deadlines. On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor. We now have the largest commercial deployment of 5G VoNR in the world reaching approximately 200 million Americans and reaching approximately 250 million Americans. We may need to make significant additional investments or partner with others to, among other things, continue our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as we continue our 5G Network Deployment, we have and may continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third-party integration. As a result of these investments, among other factors, we plan to raise additional capital, which may not be available on favorable terms. We may also determine that additional wireless spectrum licenses may be required for our 5G Network Deployment and to compete effectively with other wireless service providers. See Note 10 for further information. Other Developments On March 10, 2024, CONX Corp. (an entity partially owned by Charles W. Ergen, our Chairman) (“CONX”), a special purpose acquisition company, and EchoStar Real Estate Holding L.L.C. (“Seller”), our subsidiary, entered into a definitive purchase and sale agreement (the “Purchase Agreement”), which provides for CONX’s purchase from the Seller of the commercial real estate property in Littleton, Colorado, comprising the corporate headquarters of DISH Wireless, for a purchase price of $26.75 million. The transaction closed May 1, 2024, at which time we entered into an agreement to lease back the property from CONX for an initial 10 year term. Broadband and Satellite Services We offer broadband satellite technologies and broadband internet products and services to consumer customers. We provide broadband network technologies, managed services, equipment, hardware, satellite services and communications solutions to government and enterprise customers. We also design, provide and install gateway and terminal equipment to customers for other satellite systems. In addition, we design, develop, construct and provide telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and our enterprise customers. We also offer a robust suite of integrated, multi-transport solutions to enable airline and airline service providers to deliver reliable in-flight network connectivity serving both commercial and business aviation. As of March 31, 2024, we had 978,000 Broadband subscribers. Our EchoStar XXIV satellite began service in December 2023, bringing additional broadband capacity across North and South America and is expected to be an integral part of our satellite service business. Revenue in our satellite services business depends largely on our ability to make continuous use of our available satellite capacity on behalf of existing customers and our ability to enter into commercial relationships with new customers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain prior period amounts have been reclassified to conform to the current period presentation. Merger with DISH Network. Business Combinations Related Issues Upon the completion of the Merger, the net assets of DISH Network have been combined with those of EchoStar at their historical carrying amounts and DISH Network and EchoStar are presented on a combined basis for all historical periods that the companies were under common control. As defined and detailed in our Annual Report on Form 10-K for the year ended December 31, 2023, shares of EchoStar Common Stock issued to holders of DISH Network Common Stock in exchange for the outstanding shares of DISH Network Common Stock were recorded at par value and historical weighted average basic and diluted shares of DISH Network have been adjusted by the Exchange Ratio and included in the weighted average shares outstanding on our condensed consolidated statements of operations. Intercompany transactions between EchoStar and DISH Network have been eliminated from all historical periods. “Cost of services.” Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and VIEs where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Redeemable Noncontrolling Interests Northstar Wireless. SNR Wireless For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, inputs used to recognize revenue over time, including the relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Capitalized Interest We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our Wireless spectrum licenses, build-out costs associated with our 5G Network Deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended. We are currently commercializing our 5G Network Deployment. As a result, the interest expense related to the carrying amount of the 5G Network Deployment qualifying assets is being capitalized. Historically, the qualifying assets exceeded the carrying value of our long-term debt and finance lease obligations, therefore substantially all of our interest expense was being capitalized. As the qualifying assets, including certain bands of wireless spectrum licenses, have been placed into service with the deployment of our 5G Network, we no longer capitalize substantially all interest on those assets and as a result, during the three months ended March 31, 2024, we incurred $88 million of “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), which would have previously been capitalized. We expect this trend to continue. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of March 31, 2024 and December 31, 2023, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels during the three months ended March 31, 2024 and 2023. See Note 5 for the fair value of our marketable investment securities and derivative instruments. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 9 for the fair value of our long-term debt. Assets Recognized Related to the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs in our Pay-TV, Broadband and Satellite Services, and Retail Wireless segments, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled $164 million and $173 million for the three months ended March 31, 2024 and 2023, respectively. Research and Development Research and development costs, not incurred in connection with customer requirements, are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, customer-related research and development costs are incurred in connection with the specific requirements of a customer’s order; in such instances, the amounts for these customer funded development efforts are also included in “Cost of sales–equipment and other” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled $25 million and $28 million for the three months ended March 31 , 2024 New Accounting Pronouncements Joint Ventures. Business Combinations — Joint Venture Formations (Subtopic 805-60) Segment Reporting. Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures Income Taxes. On December 14, 2023, the FASB issued ASU 2023-9, Improvements to Income Tax Disclosures |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Basic and Diluted Net Income (Loss) Per Share | |
Basic and Diluted Net Income (Loss) Per Share | 3. Basic and Diluted Net Income (Loss) Per Share We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to EchoStar” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of our Class A common stock for the reporting period. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of our Class A common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later). The following table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation. For the Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Net income (loss) $ (108,375) $ 272,845 Less: Net income (loss) attributable to noncontrolling interests, net of tax (999) 19,311 Net income (loss) attributable to EchoStar - Basic (107,376) 253,534 Interest on dilutive Convertible Notes, net of tax (1) — — Net income (loss) attributable to EchoStar - Diluted $ (107,376) $ 253,534 Weighted-average common shares outstanding - Class A and B common stock: Basic 271,519 269,833 Dilutive impact of Convertible Notes (2)(3) — 37,550 Dilutive impact of stock awards outstanding (3) — 27 Diluted 271,519 307,410 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to EchoStar $ (0.40) $ 0.94 Diluted net income (loss) per share attributable to EchoStar $ (0.40) $ 0.82 (1) For the three months ended March 31, 2023, substantially all of our interest expense was capitalized. See Note 2 for further information. (2) We repurchased or redeemed the principal balance of our 2 3/8% Convertible Notes due 2024 as of March 15, 2024, the instrument’s maturity date . (3) For the three months ended March 31, 2024, the dilutive impact of 33 million weighted-average shares of Class A common stock were excluded from the computation of “ Diluted net income (loss) per share attributable to EchoStar ” because the effect would have been anti-dilutive as a result of the net loss attributable to EchoStar in the period. Certain stock awards to acquire our Class A common stock are not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive. In addition, vesting of performance/market based options and rights to acquire shares of our Class A common stock granted pursuant to our performance based stock incentive plans (“Restricted Performance Units”) are both contingent upon meeting certain goals, some of which are not yet probable of being achieved. Furthermore, the warrants that we issued to certain option counterparties in connection with the Convertible Notes due 2026 are only exercisable at their expiration if the market price per share of our Class A common stock is greater than the strike price of the warrants, which is at price ranges of approximately $185.75 to $245.33 per share, subject to certain adjustments. As a consequence, the following are not included in the diluted EPS calculation. As of March 31, 2024 2023 (In thousands) Anti-dilutive stock awards 11,417 10,849 Performance/market based options 4,556 5,020 Restricted Performance Units/Awards — 243 Common stock warrants 16,151 16,151 Total 32,124 32,263 Exchange Offer On March 4, 2024, we commenced a tender offer to eligible employees (which excludes our co-founders and the non-executive/non-employee members of our Board of Directors) to exchange eligible stock options (which excludes the Ergen 2020 Performance Award) for new options as detailed in our Schedule TO filed March 4, 2024 with the Securities and Exchange Commission (the “Exchange Offer”), to, among other things, further align employee incentives with the current market. The Exchange Offer expired on April 1, 2024 and we accepted for exchange approximately 7 million stock options. As a result of the Exchange Offer, subsequent to March 31, 2024, the exercise price of approximately 6 million new stock options, affecting approximately 1,000 eligible employees, was adjusted to $14.04. The total incremental non-cash stock-based compensation expense resulting from the Exchange Offer is $15 million, which will be recognized over the remaining vesting period of the applicable options. |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 4. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 8 for supplemental cash flow and non-cash data related to leases. For the Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for interest (including capitalized interest) $ 230,581 $ 270,460 Cash received for interest 31,732 21,872 Cash paid for income taxes, net of (refunds) (41,115) 502 Capitalized interest (1) 258,367 337,094 Employee benefits paid in Class A common stock — 5,421 Vendor financing — 54,774 Accrued capital expenditures 164,693 511,453 Asset retirement obligation 4,308 31,554 (1) See Note 2 for further information. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments | 5. Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments Our marketable investment securities, restricted cash and cash equivalents, and other investments consisted of the following: As of March 31, December 31, 2024 2023 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 149 $ 144 Strategic - trading/equity 144,419 176,205 Other 8,081 446,695 Total current marketable investment securities 152,649 623,044 Restricted marketable investment securities (1) 31,266 27,840 Total marketable investment securities 183,915 650,884 Restricted cash and cash equivalents (1) 89,713 90,225 Other investments, net: Equity method investments 161,657 169,038 Cost method investments 108,333 106,134 Fair value method and other debt investments 39,199 39,198 Total other investment securities, net 309,189 314,370 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities, net $ 582,817 $ 1,055,479 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholders’ Equity (Deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities – Strategic Our current strategic marketable investment securities portfolio includes and may include strategic and financial debt and/or equity investments in private and public companies that are highly speculative and have experienced and continue to experience volatility. As of March 31, 2024, this portfolio consisted of securities of a small number of issuers, and as a result the value of that portfolio depends, among other things, on the performance of those issuers. The fair value of certain of the debt and equity securities in this portfolio can be adversely impacted by, among other things, the issuers’ respective performance and ability to obtain any necessary additional financing on acceptable terms, or at all. Current Marketable Investment Securities – Other Our current other marketable investment securities portfolio includes investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days. Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months. U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of March 31, 2024 and December 31, 2023, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investments, net We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investments, net” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and are recorded at fair value. Generally, our debt investments in non-publicly traded debt instruments without a readily determinable fair value are recorded at amortized cost. Our equity investments where we have the ability to exercise significant influence over the investee are accounted for using the equity method of accounting. Certain of our equity method investments are detailed below. NagraStar L.L.C. Invidi Technologies Corporation TerreStar Solutions, Inc. Deluxe/EchoStar LLC. Broadband Connectivity Solutions (Restricted) Limited We also hold investments that are not accounted for using the equity method of accounting, which are measured at fair value. Investments in equity securities without readily determinable fair values are accounted for at cost, less impairment and adjusted for observable price changes for identical or similar investments of the same issuer. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on, among other things, the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of March 31, 2024 December 31, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 356,899 $ 125,445 $ 231,454 $ — $ 1,692,849 $ 573,504 $ 1,119,345 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 17,910 $ 17,910 $ — $ — $ 65,172 $ 65,172 $ — $ — Commercial paper 6,100 — 6,100 — 290,398 — 290,398 — Corporate securities 15,032 — 15,032 — 114,265 — 114,265 — Other 454 — 305 149 4,844 — 4,700 144 Equity securities 144,419 134,689 9,730 — 176,205 166,481 9,724 — Total $ 183,915 $ 152,599 $ 31,167 $ 149 $ 650,884 $ 231,653 $ 419,087 $ 144 As of March 31, 2024, restricted and non-restricted marketable investment securities included debt securities of $39 million with contractual maturities within one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Derivative Instruments We had the option to purchase certain of T-Mobile’s 800 MHz spectrum licenses from T-Mobile at a fixed price pursuant to the License Purchase Agreement, as defined and detailed in our Annual Report on Form 10-K for the year ended December 31, 2023. This instrument met the definition of a derivative and was valued based upon, among other things, our estimate of the underlying asset price, the expected term, volatility, the risk free rate of return and the probability of us exercising the option. As of March 31, 2024 and December 31, 2023, the derivative’s fair value was zero on our Condensed Consolidated Balance Sheets. All changes in the derivative’s fair value were recorded in “Other, net” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See the table below. We did not exercise the option to purchase the 800 MHz spectrum licenses pursuant to the License Purchase Agreement, which expired on its own terms on April 1, 2024. As a result, the Amended Final Judgment, requires T-Mobile to auction the spectrum licenses. We expected to take part in this auction, but T-Mobile has unilaterally barred our participation. We accounted for our option to purchase certain T-Mobile’s 800 MHz spectrum licenses under the License Purchase Agreement as a Level 3 instrument within the fair value hierarchy. Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other “Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Three Months Ended March 31, Other, net: 2024 2023 (In thousands) Marketable and non-marketable investment securities - realized and unrealized gains (losses) $ (23,893) $ (7,417) Derivative instruments - net realized and/or unrealized gains (losses) — (28,961) Gains (losses) related to early redemption of debt — 49 Foreign currency transaction gains (losses) (627) 3,172 Equity in earnings (losses) of affiliates (2,786) (2,002) Other 1,196 398 Total $ (26,110) $ (34,761) |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory | |
Inventory | 6. Inventory Inventory consisted of the following: As of March 31, December 31, 2024 2023 (In thousands) Finished goods $ 473,444 $ 512,894 Work-in-process and service repairs 63,309 68,463 Consignment 44,746 56,360 Raw materials 51,453 27,452 Total inventory $ 632,952 $ 665,169 |
Property and Equipment and Inta
Property and Equipment and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Property and Equipment and Intangible Assets | |
Property and Equipment and Intangible Assets | 7. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable As of Life March 31, December 31, (In Years) 2024 2023 (In thousands) Equipment leased to customers 2 - 5 $ 1,909,842 $ 1,977,450 Satellites (1) 5 - 15 3,880,725 4,168,766 Satellites acquired under finance lease agreements 15 709,504 712,832 Furniture, fixtures, equipment and other 1 - 20 1,693,151 1,691,389 5G Network Deployment equipment (2) 3 - 15 4,475,376 4,263,327 Software and computer equipment 2 - 6 2,632,917 2,503,597 Buildings and improvements 1 - 40 543,860 538,815 Land - 46,149 46,675 Construction in progress - 1,859,790 1,844,338 Total property and equipment 17,751,314 17,747,189 Accumulated depreciation (8,161,881) (8,185,355) Property and equipment, net $ 9,589,433 $ 9,561,834 (1) The Spaceway 3 satellite was deorbited in January 2024. (2) Includes 5G Network Deployment assets acquired under finance lease agreements. Depreciation and amortization expense consisted of the following: For the Three Months Ended March 31, 2024 2023 (In thousands) Equipment leased to customers $ 71,767 $ 88,890 Satellites 75,577 66,204 Buildings, furniture, fixtures, equipment and other 27,713 24,247 5G Network Deployment equipment 166,822 61,151 Software and computer equipment 88,687 52,758 Intangible assets and other amortization expense 54,834 54,504 Total depreciation and amortization $ 485,400 $ 347,754 Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network Deployment equipment and software, and amortization of development costs of externally marketed software. Activity relating to our asset retirement obligations was as follows: For the Three Months Ended March 31, 2024 2023 (In thousands) Balance at beginning of period $ 278,287 $ 183,135 Liabilities incurred 4,308 31,554 Accretion expense 6,464 4,106 Revision to estimated cash flows — — Balance at end of period $ 289,059 $ 218,795 Total included in Other long-term liabilities $ 289,059 $ 218,795 The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $216 million and $217 million as of March 31, 2024 and December 31, 2023, respectively. Satellites Pay-TV Segment Our Pay-TV segment currently utilizes nine satellites in geostationary orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease two satellites from third parties: Anik F3, which is accounted for as an operating lease, and Nimiq 5, which is accounted for as a finance lease and is depreciated over its economic life. As of March 31, 2024, our Pay-TV segment satellite fleet in service consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Under Construction: EchoStar XXV 2026 110 N/A Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 Nimiq 5 September 2009 72.7 September 2024 Satellite Under Construction EchoStar XXV. Satellites - Broadband and Satellite Services Segment Our Broadband and Satellite Services segment currently utilizes nine satellites in geostationary orbit approximately 22,300 miles above the equator, six of which we own and depreciate over their estimated useful life. We also lease three satellites from third parties, which are accounted for as finance leases and are depreciated over their economic life. As of March 31, 2024, our Broadband and Satellite Services segment satellite fleet in service consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar IX August 2003 121 N/A EchoStar XVII July 2012 107 N/A EchoStar XIX December 2016 97.1 N/A EchoStar XXI June 2017 10.25 N/A Al Yah 3 January 2018 20 N/A EchoStar XXIV July 2023 95.2 N/A Leased from Other Third-Party: Eutelsat 65 West A March 2016 65 July 2031 Telesat T19V July 2018 63 August 2033 EchoStar 105/SES-11 October 2017 105 November 2028 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | 8. Leases Lessee Accounting We enter into non-cancelable operating and finance leases for, among other things, communication towers, satellites, satellite-related ground infrastructure, data centers, office space, dark fiber and transport equipment, warehouses and distribution centers, vehicles and other equipment. Substantially all of our leases have remaining lease terms from one Our Eutelsat 65 West A, Telesat T19V and EchoStar 105/SES-11 satellites are accounted for as finance leases within our Broadband and Satellite Services segment. Our Nimiq 5 satellite is accounted for as finance lease within our Pay-TV segment. Substantially all of our remaining leases are accounted for as operating leases, including our Anik F3 satellite lease. The components of lease expense were as follows: For the Three Months Ended March 31, 2024 2023 (In thousands) Operating lease cost (1) $ 167,006 $ 117,556 Short-term lease cost (2) 1,023 1,279 Finance lease cost: Amortization of right-of-use assets 18,468 34,197 Interest on lease liabilities 2,792 3,570 Total finance lease cost 21,260 37,767 Total lease costs $ 189,289 $ 156,602 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. Supplemental cash flow information related to leases was as follows: For the Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 118,408 $ 73,613 Operating cash flows from finance leases $ 2,824 $ 2,397 Financing cash flows from finance leases $ 15,134 $ 8,713 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 199,300 $ 231,868 Finance leases $ — $ 51,110 Supplemental balance sheet information related to leases was as follows: As of March 31, December 31, 2024 2023 (In thousands) Operating Leases: Operating lease assets $ 3,092,070 $ 3,065,448 Other current liabilities $ 341,257 $ 317,395 Operating lease liabilities 3,157,720 3,121,307 Total operating lease liabilities $ 3,498,977 $ 3,438,702 Finance Leases: Property and equipment, gross $ 830,606 $ 833,933 Accumulated depreciation (538,300) (520,344) Property and equipment, net $ 292,306 $ 313,589 Other current liabilities $ 48,391 $ 56,459 Other long-term liabilities 60,133 67,199 Total finance lease liabilities $ 108,524 $ 123,658 Weighted Average Remaining Lease Term: Operating leases 10.0 years 10.6 years Finance leases 2.1 years 2.2 years Weighted Average Discount Rate: Operating leases 9.9% 9.5% Finance leases 9.6% 9.7% Maturities of lease liabilities as of March 31, 2024 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 (remaining nine months) $ 350,672 $ 48,115 $ 398,787 2025 499,361 35,392 534,753 2026 531,049 36,588 567,637 2027 531,138 2,574 533,712 2028 487,494 — 487,494 Thereafter 3,269,111 — 3,269,111 Total lease payments 5,668,825 122,669 5,791,494 Less: Imputed interest (2,169,848) (14,145) (2,183,993) Total 3,498,977 108,524 3,607,501 Less: Current portion (341,257) (48,391) (389,648) Long-term portion of lease obligations $ 3,157,720 $ 60,133 $ 3,217,853 Lessor Accounting The following table presents our lease revenue by type of lease: For the Three Months Ended March 31, 2024 2023 (In thousands) Lease revenue: Sales-type lease revenue $ 1,084 $ 4,201 Operating lease revenue 5,654 11,187 Total lease revenue $ 6,738 $ 15,388 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $28 million and $30 million as of March 31, 2024 and December 31, 2023, respectively. The following table presents future operating lease payments to be received as of March 31, 2024: For the Years Ending December 31, Total (In thousands) 2024 (remaining nine months) $ 6,415 2025 4,953 2026 3,567 2027 3,488 2028 672 Thereafter 177 Total lease payments to be received $ 19,272 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 9. Long-Term Debt and Finance Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying amount and fair value of our debt facilities as of March 31, 2024 and December 31, 2023: As of March 31, 2024 December 31, 2023 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 2 3/8% Convertible Notes due 2024 (1) DISH $ — $ — $ 951,168 $ 944,034 5 7/8% Senior Notes due 2024 DDBS 1,982,544 1,905,621 1,982,544 1,872,275 0% Convertible Notes due 2025 DISH 1,957,197 1,418,968 1,957,197 1,228,141 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,390,000 2,000,000 1,388,060 5 1/4% Senior Secured Notes due 2026 HSSC 750,000 625,200 750,000 665,678 6 5/8% Senior Notes due 2026 HSSC 750,000 445,875 750,000 591,525 3 3/8% Convertible Notes due 2026 DISH 2,908,801 1,830,799 2,908,801 1,570,753 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,158,750 2,750,000 2,366,073 11 3/4% Senior Secured Notes due 2027 DISH 3,500,000 3,578,750 3,500,000 3,668,980 7 3/8% Senior Notes due 2028 DDBS 1,000,000 489,200 1,000,000 600,160 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 1,718,750 2,500,000 2,013,125 5 1/8% Senior Notes due 2029 DDBS 1,500,000 629,250 1,500,000 774,600 Other notes payable 146,513 146,513 160,158 160,158 Subtotal 21,745,055 $ 16,337,676 22,709,868 $ 17,843,562 Unamortized deferred financing costs and other debt discounts, net (66,115) (69,606) Finance lease obligations (2) 108,524 123,658 Total long-term debt and finance lease obligations (including current portion) $ 21,787,464 $ 22,763,920 (1) We repurchased or redeemed the principal balance of our 2 3/8% Convertible Notes due 2024 as of March 15, 2024, the instrument’s maturity date. (2) Disclosure regarding fair value of finance leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). Convertible Notes 0% Convertible Notes due 2025 On December 21, 2020, we issued $2.0 billion aggregate principal amount of the Convertible Notes due December 15, 2025 in a private placement. These notes will not bear interest, and the principal amount of the Notes will not accrete. The Convertible Notes due 2025 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2025; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2025 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2025, holders may require us to repurchase for cash all or part of their Convertible Notes due 2025 at a repurchase price equal to 100% of the principal amount of such Convertible Notes due 2025, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The indenture related to the Convertible Notes due 2025 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2025 may be converted at an initial conversion rate of 8.566 shares of our Class A common stock per $1,000 principal amount of the Convertible Notes due 2025 (equivalent to an initial conversion price of approximately $116.74 per share of our Class A common stock) (the “Initial Conversion Rate”), at any time on or after July 15, 2025 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes due 2025 will also have the right to convert the Convertible Notes due 2025 at the Initial Conversion Rate prior to July 15, 2025, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, we will settle our conversion obligation in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. 3 3/8% Convertible Notes due 2026 On August 8, 2016, we issued $3.0 billion aggregate principal amount of the Convertible Notes due August 15, 2026 in a private offering. Interest accrues at an annual rate of 3 3/8% and is payable semi-annually in cash, in arrears on February 15 and August 15 of each year. The Convertible Notes due 2026 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2026; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2026 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2026, holders may require us to repurchase for cash all or part of their Convertible Notes due 2026 at a specified make-whole price equal to 100% of the principal amount of such Convertible Notes due 2026, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The indenture related to the Convertible Notes due 2026 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2026 may be converted at an initial conversion rate of 5.383 shares of our Class A common stock per $1,000 principal amount of Convertible Notes due 2026 (equivalent to an initial conversion price of approximately $185.76 per share of our Class A common stock) (the “Initial Conversion Rate”), at any time on or after March 15, 2026 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes due 2026 will also have the right to convert the Convertible Notes due 2026 at the Initial Conversion Rate prior to March 15, 2026, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, we will settle our conversion obligation in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. Convertible Note Hedge and Warrant Transactions Merger with DISH Network In addition, in connection with the completion of the Merger, on December 31, 2023, we and DISH Network entered into a warrant amendment letter agreement and warrant guarantee with each option counterparty, pursuant to which, at the Effective Time, each counterparty’s right to purchase shares of DISH Network Class A Common Stock pursuant to the applicable warrant transactions was changed into a right to purchase shares of EchoStar Class A Common Stock, and we guaranteed all of DISH Network’s obligations under the applicable warrant transactions. In connection with the offering of the Convertible Notes due 2026, we entered into convertible note hedge transactions with certain option counterparties. The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes due 2026, the number of shares of DISH Network Class A Common Stock underlying the Convertible Notes due 2026, which initially gives us the option to purchase approximately 46 million shares of DISH Network Class A Common Stock at a price of approximately $65.18 per share, which in connection with the completion of the Merger converted into approximately 16 million shares of EchoStar Class A Common Stock at a price of approximately $185.76 per share. The total cost of the original convertible note hedge transactions was $635 million. Concurrently with entering into the convertible note hedge transactions, we also entered into warrant transactions with each option counterparty whereby we sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, up to the same number of shares of DISH Network Class A common stock, which initially gives the option counterparties the option to purchase approximately 46 million shares of DISH Network Class A common stock at a price of approximately $86.08 per share, which in connection with the completion of the Merger converted into approximately 16 million shares of EchoStar Class A Common Stock at price ranges of approximately $185.75 to $245.33 per share. We received $376 million in cash proceeds from the original sale of these warrants. In accordance with accounting guidance on hedge and warrant transactions, the net cost incurred in connection with the convertible note hedge and warrant transactions are recorded as a reduction in “Additional paid-in capital” within “Stockholders’ Equity (Deficit)” on our Consolidated Balance Sheets as of December 31, 2016. We will not be required to make any cash payments to each option counterparty or its affiliates upon the exercise of the options that are a part of the convertible note hedge transactions, but will be entitled to receive from them a number of shares of Class A common stock, an amount of cash or a combination thereof. This consideration is generally based on the amount by which the market price per share of Class A common stock, as measured under the terms of the convertible note hedge transactions, is greater than the strike price of the convertible note hedge transactions during the relevant valuation period under the convertible note hedge transactions. Additionally, if the market price per share of Class A common stock, as measured under the terms of the warrant transactions, exceeds the strike price of the warrants during the measurement period at the maturity of the warrants, we will owe each option counterparty a number of shares of Class A common stock in an amount based on the excess of such market price per share of Class A common stock over the strike price of the warrants. However, as specified under the terms of the warrant transactions, we may elect to settle the warrants in cash. Intercompany Loan The net proceeds from the offering of our 5 1/4% Senior Secured Notes due 2026 and our 5 3/4% Senior Secured Notes due 2028 (the “Senior Notes”) issued on November 26, 2021 were used by DISH DBS to make an intercompany loan to DISH Network pursuant to a Loan and Security Agreement dated November 26, 2021 (together with potential future advances to DISH Network, the “Intercompany Loan”) between DISH DBS and DISH Network in order to finance the purchase of wireless spectrum licenses and for general corporate purposes, including our 5G Network Deployment. The Intercompany Loan will mature in two tranches, with the first tranche maturing on December 1, 2026 (the “2026 Tranche”) and the second tranche maturing on December 1, 2028 (the “2028 Tranche”). DISH DBS may make additional advances to DISH Network under the Intercompany Loan, and on February 11, 2022, DISH DBS advanced an additional $1.5 billion to DISH Network under the Intercompany Loan 2026 Tranche. In January 2024, we completed a series of assignments resulting in the transfer of the receivable in respect to the 2026 Tranche from DISH DBS to EchoStar Intercompany Receivable Company L.L.C., our direct wholly-owned subsidiary, such that amounts owed in respect of the 2026 Tranche will now be paid by DISH Network to EchoStar Intercompany Receivable Company L.L.C. Interest accrues and is payable semiannually, and interest payments with respect to the Intercompany Loan are, at our option, payable in kind for the first two years from the issuance date of November 2021. After two years post issuance date, a minimum of 50% of each interest payment due with respect to each tranche of the Intercompany Loan must be paid in cash. Thereafter, interest payments must be paid in cash. Interest will accrue: (a) when paid in cash, at a fixed rate of 0.25% per annum in excess of the interest rate applicable to, in the case of the 2026 Tranche, the 5 1/4% Senior Secured Notes due 2026, and in the case of the 2028 Tranche, the 5 3/4% Senior Secured Notes due 2028 (each, the “Cash Accrual Rate” with respect to the applicable tranche); and (b) when paid in kind, at a rate of 0.75% per annum in excess of the Cash Accrual Rate for the applicable tranche. As of March 31, 2024, the total Intercompany Loan amount outstanding plus interest paid in kind was $7.496 billion. For the three months ended March 31, 2024, there were no interest payments for the Intercompany Loan paid in cash. The Intercompany Loan is secured by Weminuche’s interest in the wireless spectrum licenses for the 3.45-3.55 GHz Licenses with such cash proceeds up to the total loan amount outstanding including interest paid in kind. Under certain circumstances, DISH Network wireless spectrum licenses (valued based upon a third-party valuation) may be substituted for the collateral. The Intercompany Loan is not included as collateral for the Senior Secured Notes, and the Senior Secured Notes are subordinated to DISH DBS’s existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security for the Intercompany Loan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments 5G Network Deployment We have invested a total of over $30 billion in Wireless spectrum licenses. The $30 billion of investments related to Wireless spectrum licenses does not include $9 billion of capitalized interest related to the carrying value of such licenses. See Note 2 for further information on capitalized interest. We will need to raise additional capital in the future, which may not be available on favorable terms, to fund the efforts described below, as well as, among other things, make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. There can be no assurance that we will be able to profitably deploy our Wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. Wireless Spectrum Licenses Our Wireless spectrum licenses are subject to certain build-out requirements, as well as certain renewal requirements that are summarized in the table below: Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2025 (3) June 2033 AWS-4 Licenses (2) 1,940,000 June 14, 2025 (3) June 2033 H Block Licenses (2) 1,671,506 June 14, 2025 (4) June 2033 600 MHz Licenses 6,213,335 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 July 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,969 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,329,093 May 4, 2026 (6) May 4, 2030 (6) May 2037 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz (2) 972 March 2026 AWS-3 9,890,389 October 2025 (7) October 2025 (7) Subtotal 29,591,671 Capitalized Interest (8) 8,760,710 Total as of March 31, 2024 $ 38,352,381 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses are in the past. (3) For these licenses, we must offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor . (4) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor . (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) For these licenses, we must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. (8) See Note 2 for further information. Commercialization of Our Wireless Spectrum Licenses and Related Assets. was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor We now have the largest commercial deployment of 5G VoNR in the world reaching approximately 200 million Americans and reaching approximately 250 million Americans. We may need to make significant additional investments or partner with others to, among other things, continue our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as we continue our 5G Network Deployment, we have and may continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third-party integration. As a result of these investments, among other factors, we plan to raise additional capital, which may not be available on favorable terms. We may also determine that additional wireless spectrum licenses may be required for our 5G Network Deployment and to compete effectively with other wireless service providers. AWS-3 Auction Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by us and, prior to October 12, 2023, by us and Northstar Manager. SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by us and, prior to February 16, 2024, by us and SNR Management. See Note 2 for further information. Northstar Wireless and SNR Wireless each filed applications with the FCC to participate in Auction 97 (the “AWS-3 Auction”) for the purpose of acquiring certain AWS-3 Licenses. Each of Northstar Wireless and SNR Wireless applied to receive bidding credits of 25% as designated entities under applicable FCC rules. FCC Order and October 2015 Arrangements. On August 18, 2015, the FCC released a Memorandum Opinion and Order, FCC 15-104 (the “Order”) in which the FCC determined, among other things, that DISH Network has a controlling interest in, and is an affiliate of, Northstar Wireless and SNR Wireless, and therefore DISH Network’s revenues should be attributed to them, which in turn makes Northstar Wireless and SNR Wireless ineligible to receive the 25% bidding credits (approximately $1.961 billion for Northstar Wireless and $1.370 billion for SNR Wireless). On November 23, 2020, the FCC released a Memorandum Opinion and Order on Remand, FCC 20-160, that found that Northstar Wireless and SNR Wireless are not eligible for bidding credits based on the FCC’s determination that they remain under DISH Network’s de facto control. Northstar Wireless and SNR Wireless have appealed the FCC’s order to the D.C. Circuit Court of Appeals. On June 21, 2022, the United States Court of Appeals for the District of Columbia issued an Opinion rejecting this challenge. On January 17, 2023, Northstar Wireless filed a petition for a writ of certiorari asking the United States Supreme Court to hear a further appeal, but that petition was denied on June 30, 2023. Letters Exchanged between Northstar Wireless and the FCC Wireless Bureau. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of Northstar Wireless, no additional amounts will be owed to the FCC by Northstar Wireless. However, if those winning bids are less than the winning bids of Northstar Wireless, then we will be responsible for the difference less any overpayment of the Northstar interim payment, detailed below, (which will be recalculated as 15% of the winning bids from re-auction or other award) (the “Northstar Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the Northstar Re-Auction Payment would be approximately $1.892 billion, which is calculated as the difference between $2.226 billion (the Northstar winning bid amounts) and $1 (the winning bids from re-auction) less the resulting $334 million overpayment of the Northstar interim payment. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any Northstar Re-Auction Payment. Letters Exchanged between SNR Wireless and the FCC Wireless Bureau. D.C. Circuit Court Opinion SNR Wireless LicenseCo, LLC, et al. v. Federal Communications Commission Order on Remand. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Contingencies Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against us and our wholly-owned subsidiaries DISH Network and DISH Network L.L.C., and our then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop™ feature of our Hopper® set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted, and in May 2017, ClearPlay agreed to dismiss us and DISH Network as defendants, leaving DISH Network L.L.C. and DISH Technologies L.L.C. as the sole defendants. On October 16, October 21, November 2, 2020 and November 9, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of the asserted claims of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 2, November 20, December 14 and December 15, 2020, the United States Patent and Trademark Office granted each request for reexamination. On May 7, 2021, May 25, 2021, June 25, 2021 and July 7, 2021, the United States Patent and Trademark Office issued Ex Parte Reexamination Certificates confirming the patentability of the challenged claims of, respectively, the 799 patent, the 784 patent, the 318 patent and the 970 patent. In October and November 2021, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of certain asserted claims of the 784 patent, the 799 patent and the 970 patent. In November and December, 2021, the United States Patent and Trademark Office granted review of the challenged claims of the 799 patent and the 970 patent, but denied review of the challenged claims of the 784 patent. On January 24, 2022, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 799 patent, and on January 19, 2023, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 970 patent. In an order dated January 31, 2023, the Court granted in part and denied in part DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for summary judgment. Thereafter, ClearPlay narrowed its case to three asserted claims: one under the 799 patent and two under the 970 patent. Following a two-week trial, on March 10, 2023, the jury returned a verdict that DISH Network L.L.C. and DISH Technologies L.L.C. infringed each of the asserted patent claims (though not willfully), and awarded damages of $469 million. That verdict became moot on March 21, 2023, when the trial court indicated that it would grant DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for judgment as a matter of law, thus effectively vacating the jury award. On June 2, 2023, the Court entered its formal order granting judgment as a matter of law. On December 12, 2023, the Court denied ClearPlay’s motion to alter or amend the judgment. ClearPlay has filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Data Breach Class Actions On May 9, 2023, Susan Owen-Brooks, an alleged customer, filed a putative class action complaint against our wholly-owned subsidiary DISH Network in the United States District Court for the District of Colorado. She purports to represent a nationwide class of all individuals in the United States who allegedly had private information stolen as a result of the February 23, 2023 Cyber-security Incident (and a North Carolina statewide subclass of the same individuals). On behalf of the nationwide class, she alleges claims for contractual breaches, negligence and unjust enrichment (and, on behalf of the North Carolina subclass only, violation of the North Carolina Deceptive Trade Practices Act), and seeks monetary damages, injunctive relief and a declaratory judgment. Since that filing, ten additional putative class action complaints have been filed in the United States District Court for the District of Colorado, purporting to represent the same nationwide class of people, and Owen-Brooks has filed an amended complaint. On August 2, 2023, the Court issued an order consolidating the first ten cases (the eleventh was dismissed) and, on November 16, 2023, the plaintiffs filed a consolidated amended class action complaint. We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Digital Broadcasting Solutions, LLC On August 29, 2022, Digital Broadcasting Solutions, LLC filed a complaint against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,929,710 (the “710 patent”) and U.S. Patent No. 9,538,122 (the “122 patent”), each entitled “System and method for time shifting at least a portion of a video program.” Generally, the plaintiff contends that the AutoHop feature of our Hopper® set-top boxes infringes the asserted patents. On June 21, 2023, the Court granted the motion of DISH Network L.L.C. and DISH Technologies L.L.C. to have the case transferred to the United States District Court for the District of Colorado. In May 2023, DISH Network L.L.C. and DISH Technologies L.L.C. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Entropic Communications, LLC (first action) On March 9, 2022, Entropic Communications, LLC (“Entropic”) filed a complaint against our wholly-owned subsidiaries DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 7,130,576 (the “576 patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; U.S. Patent No. 7,542,715 (the “715 Patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; and U.S. Patent No. 8,792,008 (the “008 Patent”), entitled “Method and Apparatus for Spectrum Monitoring.” On March 30, 2022, Entropic filed an amended complaint alleging infringement of the same patents. Generally, the plaintiff accuses satellite antennas, low-noise block converters, signal selector and combiners, and set-top boxes and the manner in which they process signals for satellite television customers of infringing the asserted patents. On October 24, 2022, this case was ordered to be transferred to the United States District Court for the Central District of California. A companion case against DirecTV was also ordered transferred to the United States District Court for the Central District of California. In January and February of 2023, DISH Network L.L.C. and Dish Network Service L.L.C. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Entropic Communications, LLC (second action) On February 10, 2023, Entropic filed a second lawsuit against our wholly-owned subsidiaries DISH Network, DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent No. 7,295,518 (the “518 patent”), entitled “Broadband network for coaxial cable using multi-carrier modulation”; U.S. Patent No. 7,594,249 (the “249 patent”), entitled “Network interface device and broadband local area network using coaxial cable”; U.S. Patent Nos. 7,889,759 (the “759 patent”), entitled “Broadband cable network utilizing common bit-loading”; U.S. Patent No. 8,085,802 (the “802 Patent”), entitled “Multimedia over coaxial cable access protocol”; U.S. Patent No. 9,838,213 (the “213 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 10,432,422 (the “422 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 8,631,450 (the “450 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,621,539 (the “539 patent”), entitled “Physical layer transmitter for use in a broadband local area network”; U.S. Patent No. 8,320,566 (the “0,566 patent”), entitled “Method and apparatus for performing constellation scrambling in a multimedia home network”; U.S. Patent No. 10,257,566 (the “7,566 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,228,910 (the “910 Patent”), entitled “Aggregating network packets for transmission to a destination mode”; and U.S. Patent No. 8,363,681 (the “681 patent”), entitled “Method and apparatus for using ranging measurements in a multimedia home network.” Generally, the patents relate to Multimedia over Coax Alliance standards and the manner in which we provide a whole-home DVR network over an on-premises coaxial cable network. Entropic has asserted the same patents in the same court against Comcast, Cox and DirecTV. On September 7, 2023, the Court granted the motion of DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation to dismiss the claims arising from the 7,566 patent and the 910 patent on the grounds that they claimed in eligible subject matter. In January and February 2024, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the 249 patent, the 518 patent, the 759 patent, the 450 patent, the 539 patent, the ‘0,566 patent, and the ‘681 patent. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Freedom Patents On April 7, 2023, Freedom Patents LLC filed a complaint against our wholly-owned subsidiaries DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,284,686 (the “686 Patent”), entitled “Antenna/Beam Selection Training in MIMO Wireless LANS with Different Sounding Frames”; U.S. Patent No. 8,374,096 (the “096 Patent”), entitled “Method for Selecting Antennas and Beams in MIMO Wireless LANs”; and U.S. Patent No. 8,514,815 (the “815 Patent”), entitled “Training Signals for Selecting Antennas and Beams in MIMO Wireless LANs.” Similar complaints were also filed against Acer, Altice, Charter, Comcast and Verizon. In general, the asserted patents relate to the 802.11 wireless standard, and the products accused of infringement are the Wireless Joey, its access point, and certain Ring, Nest and Linksys products that we sell. On March 15, 2024, the Court denied the defendants’ motion to transfer the case to the United States District Court for the District of Colorado. The parties have reached a settlement under which DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. will pay a non-material sum in exchange for dismissal of the litigation and a license to the asserted patents. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Hughes Telecommunicaoes do Brasil v. State of São Paulo Treasury Department On December 12, 2019, Hughes Telecommunicaoes do Brasil (“HTB”) filed a tax annulment claim in the Judicial Court of São Paulo, claiming that a tax assessment from the State Treasury of São Paulo, for the period from January 2013 to December 2014, was based on an erroneous interpretation of an exemption to the ICMS (a state tax on, among other things, communications). In June 2022, a judicial expert determined that HTB’s interpretation of the exemption was correct. Nonetheless, in July 2023, the Court entered judgment against HTB, and in October 2023, rejected HTB’s request for clarification. In November 2023, HTB filed an appeal to the Court of Justice. We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit. Jones 401(k) Litigation On December 20, 2021, four former employees filed a class action complaint in the United States District Court for the District of Colorado against our wholly-owned subsidiary DISH Network, its Board of Directors, and its Retirement Plan Committee alleging fiduciary breaches arising from the management of our 401(k) Plan. The putative class, comprised of all participants in the Plan on or after January 20, 2016, alleges that the Plan had excessive recordkeeping and administrative expenses and that it maintained underperforming funds. On February 1, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the complaint be granted, and on March 27, 2023, the district court judge granted the motion. As permitted by the Court’s order, the plaintiffs filed an amended complaint on April 10, 2023, which is limited to allegations regarding the alleged underperformance of the Fidelity Freedom Funds. On November 7, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the amended complaint be denied as to the duty to prudently monitor fund performance, but be granted as to the duty of loyalty and, on November 27, 2023, the district court judge entered an order adopting the recommendation. On April 30, 2024, the parties filed a stipulation to certification of the proposed plaintiff class. We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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 1999 government policy that eliminated fixed license fees and replaced them with license fees based on service providers’ 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 both 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 those other providers filed similar petitions 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 was 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, 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 each March 31 thereafter. As of March 31, 2024, the gross amount of fees, penalties and interest owed was approximately $90 million with $52 million remaining outstanding as a result of historical payments Pursuant to the Contribution and Membership Interest Purchase Agreement (the “Purchase Agreement”) dated December 3, 2004 between The DirecTV Group, Inc. (“DirecTV”) and certain other entities relating to DirecTV’s spinoff of certain of its subsidiaries, including HCIPL, DirecTV undertook to indemnify HCIPL for certain pre-closing tax liabilities. On March 27, 2020, HCIPL filed an indemnification complaint against DirecTV in the United States District Court for the Southern District of New York, |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting | |
Segment Reporting | 11. Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise. Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance. We currently operate four primary business segments: (1) Pay-TV; (2) Retail Wireless; (3) 5G Network Deployment; and (4) Broadband and Satellite Services. See Note 1 for further information. All other and eliminations primarily include intersegment eliminations related to intercompany debt and the related interest income and interest expense, which are eliminated in consolidation. The total assets, revenue and operating income, and purchases of property and equipment, net of refunds, (including capitalized interest related to Regulatory authorizations) by segment were as follows: As of March 31, December 31, 2024 2023 (In thousands) Total assets: Pay-TV $ 49,306,211 $ 49,437,958 Retail Wireless 750,328 777,957 5G Network Deployment (1) 47,276,901 46,793,378 Broadband and Satellite Services 4,224,153 5,811,553 Eliminations (1) (46,001,176) (45,711,952) Total assets $ 55,556,417 $ 57,108,894 (1) The increase primarily resulted from intercompany advances for capital expenditures related to our 5G Network Deployment. For the Three Months Ended March 31, 2024 2023 (In thousands) Revenue: Pay-TV $ 2,726,578 $ 2,972,131 Retail Wireless 905,850 974,866 5G Network Deployment 29,504 18,907 Broadband and Satellite Services 382,586 439,596 Eliminations (29,675) (17,834) Total revenue $ 4,014,843 $ 4,387,666 Operating income (loss): Pay-TV $ 670,108 $ 675,233 Retail Wireless (74,417) (18,207) 5G Network Deployment (570,751) (333,603) Broadband and Satellite Services (39,554) 27,705 Eliminations (630) 2,210 Total operating income (loss) $ (15,244) $ 353,338 Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) Pay-TV $ 57,912 $ 35,563 Retail Wireless — — 5G Network Deployment 549,173 871,042 Broadband and Satellite Services 70,611 44,071 Eliminations — — Total purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) $ 677,696 $ 950,676 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended March 31, Category: 2024 2023 (In thousands) Pay-TV subscriber and related revenue $ 2,701,179 $ 2,944,482 Retail wireless services and related revenue 804,265 867,111 5G network deployment services and related revenue 4 — Broadband and satellite services and other revenue 317,120 374,522 Pay-TV equipment sales and other revenue 25,399 27,649 Retail wireless equipment sales and other revenue 101,585 107,755 5G network deployment equipment sales and other revenue 29,500 18,907 Broadband equipment and other revenue 65,466 65,074 Eliminations (29,675) (17,834) Total $ 4,014,843 $ 4,387,666 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition | |
Revenue Recognition | 12. Contract Balances Our valuation and qualifying accounts as of March 31, 2024 were as follows: For the Three Months Ended March 31, 2024 (In thousands) Balance at beginning of period $ 74,390 Current period provision for expected credit losses 26,521 Write-offs charged against allowance (15,979) Acquisitions — Foreign currency translation (26) Balance at end of period $ 84,906 Contract assets arise when we recognize revenue for providing a service in advance of billing our customers. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Our contract assets also include receivables related to sales-type leases recognized over the lease term as the customer is billed. Contract assets are amortized as the customer is billed for services. Contract assets are recorded in “Trade accounts receivable, net” on our Condensed Consolidated Balance Sheets. The following table summarizes our contract asset balances: As of March 31, December 31, 2024 2023 (In thousands) Contract assets $ 72,300 $ 66,103 Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. The following table summarizes our contract liability balances: As of March 31, December 31, 2024 2023 (In thousands) Contract liabilities $ 664,212 $ 710,456 Our beginning of period contract liability recorded as customer contract revenue during 2024 was $615 million. Performance Obligations Pay-TV and Retail Wireless Segments We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. Broadband and Satellite Services Segment As of March 31, 2024, the remaining performance obligations for our customer contracts was approximately $1.412 billion, compared to $1.740 billion as of December 31, 2023, a decrease of $328 million. This decrease resulted from the evaluation of the credit worthiness of the portfolio. Performance obligations expected to be satisfied within one year and greater than one year are 29% and 71%, respectively. This amount and percentages exclude leasing arrangements and agreements with consumer customers. Contract Acquisition Costs The following table presents the activity in our contract acquisition costs, net: For the Three Months Ended March 31, 2024 2023 (In thousands) Balance at beginning of period $ 352,114 $ 460,876 Additions 65,104 95,659 Amortization expense (94,266) (112,883) Foreign currency translation (139) 452 Balance at end of period $ 322,813 $ 444,104 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions | |
Related Party Transactions | 13. Hughes Systique Corporation (“Hughes Systique”) We own 42% of Hughes Systique via preferred shares and contract with Hughes Systique for software development services. Prior to December 31, 2023, we consolidated Hughes Systique’s financial statements into our Condensed Consolidated Financial Statements. As of December 31, 2023, we have deconsolidated the Hughes Systique results from our Condensed Consolidated Financial Statements and recorded the investment as a cost method investment in “Other investments, net” on our Condensed Consolidated Balance Sheets. The table below summarizes our transactions with Hughes Systique: For the Three Months Ended March 31, 2024 (In thousands) Purchases: Purchases from Hughes Systique $ 4,596 As of March 31, 2024 December 31, 2023 (In thousands) Amounts Payable: Amounts payable to Hughes Systique $ 1,483 $ 1,704 NagraStar L.L.C. We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Condensed Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Condensed Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method. The table below summarizes our transactions with NagraStar: For the Three Months Ended March 31, 2024 2023 (In thousands) Purchases (including fees): Purchases from NagraStar $ 8,602 $ 9,545 As of March 31, December 31, 2024 2023 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 6,452 $ 9,821 Commitments to NagraStar $ 1,177 $ 1,727 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain prior period amounts have been reclassified to conform to the current period presentation. Merger with DISH Network. Business Combinations Related Issues Upon the completion of the Merger, the net assets of DISH Network have been combined with those of EchoStar at their historical carrying amounts and DISH Network and EchoStar are presented on a combined basis for all historical periods that the companies were under common control. As defined and detailed in our Annual Report on Form 10-K for the year ended December 31, 2023, shares of EchoStar Common Stock issued to holders of DISH Network Common Stock in exchange for the outstanding shares of DISH Network Common Stock were recorded at par value and historical weighted average basic and diluted shares of DISH Network have been adjusted by the Exchange Ratio and included in the weighted average shares outstanding on our condensed consolidated statements of operations. Intercompany transactions between EchoStar and DISH Network have been eliminated from all historical periods. “Cost of services.” |
Principles of Consolidation | Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and VIEs where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Northstar Wireless. SNR Wireless For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, inputs used to recognize revenue over time, including the relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Capitalized Interest | Capitalized Interest We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our Wireless spectrum licenses, build-out costs associated with our 5G Network Deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended. We are currently commercializing our 5G Network Deployment. As a result, the interest expense related to the carrying amount of the 5G Network Deployment qualifying assets is being capitalized. Historically, the qualifying assets exceeded the carrying value of our long-term debt and finance lease obligations, therefore substantially all of our interest expense was being capitalized. As the qualifying assets, including certain bands of wireless spectrum licenses, have been placed into service with the deployment of our 5G Network, we no longer capitalize substantially all interest on those assets and as a result, during the three months ended March 31, 2024, we incurred $88 million of “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), which would have previously been capitalized. We expect this trend to continue. |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of March 31, 2024 and December 31, 2023, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels during the three months ended March 31, 2024 and 2023. See Note 5 for the fair value of our marketable investment securities and derivative instruments. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 9 for the fair value of our long-term debt. |
Assets Recognized Related to the Costs to Obtain a Contract with a Customer | Assets Recognized Related to the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs in our Pay-TV, Broadband and Satellite Services, and Retail Wireless segments, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled $164 million and $173 million for the three months ended March 31, 2024 and 2023, respectively. |
Research and Development | Research and Development Research and development costs, not incurred in connection with customer requirements, are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, customer-related research and development costs are incurred in connection with the specific requirements of a customer’s order; in such instances, the amounts for these customer funded development efforts are also included in “Cost of sales–equipment and other” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled $25 million and $28 million for the three months ended March 31 , 2024 |
New Accounting Pronouncements | New Accounting Pronouncements Joint Ventures. Business Combinations — Joint Venture Formations (Subtopic 805-60) Segment Reporting. Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures Income Taxes. On December 14, 2023, the FASB issued ASU 2023-9, Improvements to Income Tax Disclosures |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Basic and Diluted Net Income (Loss) Per Share | |
Schedule of EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation | For the Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Net income (loss) $ (108,375) $ 272,845 Less: Net income (loss) attributable to noncontrolling interests, net of tax (999) 19,311 Net income (loss) attributable to EchoStar - Basic (107,376) 253,534 Interest on dilutive Convertible Notes, net of tax (1) — — Net income (loss) attributable to EchoStar - Diluted $ (107,376) $ 253,534 Weighted-average common shares outstanding - Class A and B common stock: Basic 271,519 269,833 Dilutive impact of Convertible Notes (2)(3) — 37,550 Dilutive impact of stock awards outstanding (3) — 27 Diluted 271,519 307,410 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to EchoStar $ (0.40) $ 0.94 Diluted net income (loss) per share attributable to EchoStar $ (0.40) $ 0.82 (1) For the three months ended March 31, 2023, substantially all of our interest expense was capitalized. See Note 2 for further information. (2) We repurchased or redeemed the principal balance of our 2 3/8% Convertible Notes due 2024 as of March 15, 2024, the instrument’s maturity date . (3) For the three months ended March 31, 2024, the dilutive impact of 33 million weighted-average shares of Class A common stock were excluded from the computation of “ Diluted net income (loss) per share attributable to EchoStar ” because the effect would have been anti-dilutive as a result of the net loss attributable to EchoStar in the period. |
Schedule of anti-dilutive securities not included in the diluted EPS calculation | As of March 31, 2024 2023 (In thousands) Anti-dilutive stock awards 11,417 10,849 Performance/market based options 4,556 5,020 Restricted Performance Units/Awards — 243 Common stock warrants 16,151 16,151 Total 32,124 32,263 |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for interest (including capitalized interest) $ 230,581 $ 270,460 Cash received for interest 31,732 21,872 Cash paid for income taxes, net of (refunds) (41,115) 502 Capitalized interest (1) 258,367 337,094 Employee benefits paid in Class A common stock — 5,421 Vendor financing — 54,774 Accrued capital expenditures 164,693 511,453 Asset retirement obligation 4,308 31,554 (1) See Note 2 for further information. |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investments | As of March 31, December 31, 2024 2023 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 149 $ 144 Strategic - trading/equity 144,419 176,205 Other 8,081 446,695 Total current marketable investment securities 152,649 623,044 Restricted marketable investment securities (1) 31,266 27,840 Total marketable investment securities 183,915 650,884 Restricted cash and cash equivalents (1) 89,713 90,225 Other investments, net: Equity method investments 161,657 169,038 Cost method investments 108,333 106,134 Fair value method and other debt investments 39,199 39,198 Total other investment securities, net 309,189 314,370 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities, net $ 582,817 $ 1,055,479 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. |
Schedule of fair value measurements | As of March 31, 2024 December 31, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 356,899 $ 125,445 $ 231,454 $ — $ 1,692,849 $ 573,504 $ 1,119,345 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 17,910 $ 17,910 $ — $ — $ 65,172 $ 65,172 $ — $ — Commercial paper 6,100 — 6,100 — 290,398 — 290,398 — Corporate securities 15,032 — 15,032 — 114,265 — 114,265 — Other 454 — 305 149 4,844 — 4,700 144 Equity securities 144,419 134,689 9,730 — 176,205 166,481 9,724 — Total $ 183,915 $ 152,599 $ 31,167 $ 149 $ 650,884 $ 231,653 $ 419,087 $ 144 |
Schedule of gains and losses on sales and changes in carrying amounts of investments and other | For the Three Months Ended March 31, Other, net: 2024 2023 (In thousands) Marketable and non-marketable investment securities - realized and unrealized gains (losses) $ (23,893) $ (7,417) Derivative instruments - net realized and/or unrealized gains (losses) — (28,961) Gains (losses) related to early redemption of debt — 49 Foreign currency transaction gains (losses) (627) 3,172 Equity in earnings (losses) of affiliates (2,786) (2,002) Other 1,196 398 Total $ (26,110) $ (34,761) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory | |
Schedule of inventory | As of March 31, December 31, 2024 2023 (In thousands) Finished goods $ 473,444 $ 512,894 Work-in-process and service repairs 63,309 68,463 Consignment 44,746 56,360 Raw materials 51,453 27,452 Total inventory $ 632,952 $ 665,169 |
Property and Equipment and In_2
Property and Equipment and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Schedule of property and equipment | Depreciable As of Life March 31, December 31, (In Years) 2024 2023 (In thousands) Equipment leased to customers 2 - 5 $ 1,909,842 $ 1,977,450 Satellites (1) 5 - 15 3,880,725 4,168,766 Satellites acquired under finance lease agreements 15 709,504 712,832 Furniture, fixtures, equipment and other 1 - 20 1,693,151 1,691,389 5G Network Deployment equipment (2) 3 - 15 4,475,376 4,263,327 Software and computer equipment 2 - 6 2,632,917 2,503,597 Buildings and improvements 1 - 40 543,860 538,815 Land - 46,149 46,675 Construction in progress - 1,859,790 1,844,338 Total property and equipment 17,751,314 17,747,189 Accumulated depreciation (8,161,881) (8,185,355) Property and equipment, net $ 9,589,433 $ 9,561,834 (1) The Spaceway 3 satellite was deorbited in January 2024. (2) Includes 5G Network Deployment assets acquired under finance lease agreements. |
Schedule of depreciation and amortization expense | For the Three Months Ended March 31, 2024 2023 (In thousands) Equipment leased to customers $ 71,767 $ 88,890 Satellites 75,577 66,204 Buildings, furniture, fixtures, equipment and other 27,713 24,247 5G Network Deployment equipment 166,822 61,151 Software and computer equipment 88,687 52,758 Intangible assets and other amortization expense 54,834 54,504 Total depreciation and amortization $ 485,400 $ 347,754 |
Schedule of asset retirement obligations | For the Three Months Ended March 31, 2024 2023 (In thousands) Balance at beginning of period $ 278,287 $ 183,135 Liabilities incurred 4,308 31,554 Accretion expense 6,464 4,106 Revision to estimated cash flows — — Balance at end of period $ 289,059 $ 218,795 Total included in Other long-term liabilities $ 289,059 $ 218,795 |
Pay-TV | |
Schedule Of satellites | Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Under Construction: EchoStar XXV 2026 110 N/A Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 Nimiq 5 September 2009 72.7 September 2024 |
Broadband and Satellite Services | |
Schedule Of satellites | Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar IX August 2003 121 N/A EchoStar XVII July 2012 107 N/A EchoStar XIX December 2016 97.1 N/A EchoStar XXI June 2017 10.25 N/A Al Yah 3 January 2018 20 N/A EchoStar XXIV July 2023 95.2 N/A Leased from Other Third-Party: Eutelsat 65 West A March 2016 65 July 2031 Telesat T19V July 2018 63 August 2033 EchoStar 105/SES-11 October 2017 105 November 2028 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Components of Lease Expense | For the Three Months Ended March 31, 2024 2023 (In thousands) Operating lease cost (1) $ 167,006 $ 117,556 Short-term lease cost (2) 1,023 1,279 Finance lease cost: Amortization of right-of-use assets 18,468 34,197 Interest on lease liabilities 2,792 3,570 Total finance lease cost 21,260 37,767 Total lease costs $ 189,289 $ 156,602 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. |
Summary of Supplemental cash flow information related to leases | For the Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 118,408 $ 73,613 Operating cash flows from finance leases $ 2,824 $ 2,397 Financing cash flows from finance leases $ 15,134 $ 8,713 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 199,300 $ 231,868 Finance leases $ — $ 51,110 |
Summary of supplemental balance sheet information related to leases | As of March 31, December 31, 2024 2023 (In thousands) Operating Leases: Operating lease assets $ 3,092,070 $ 3,065,448 Other current liabilities $ 341,257 $ 317,395 Operating lease liabilities 3,157,720 3,121,307 Total operating lease liabilities $ 3,498,977 $ 3,438,702 Finance Leases: Property and equipment, gross $ 830,606 $ 833,933 Accumulated depreciation (538,300) (520,344) Property and equipment, net $ 292,306 $ 313,589 Other current liabilities $ 48,391 $ 56,459 Other long-term liabilities 60,133 67,199 Total finance lease liabilities $ 108,524 $ 123,658 Weighted Average Remaining Lease Term: Operating leases 10.0 years 10.6 years Finance leases 2.1 years 2.2 years Weighted Average Discount Rate: Operating leases 9.9% 9.5% Finance leases 9.6% 9.7% |
Summary of Maturities of lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 (remaining nine months) $ 350,672 $ 48,115 $ 398,787 2025 499,361 35,392 534,753 2026 531,049 36,588 567,637 2027 531,138 2,574 533,712 2028 487,494 — 487,494 Thereafter 3,269,111 — 3,269,111 Total lease payments 5,668,825 122,669 5,791,494 Less: Imputed interest (2,169,848) (14,145) (2,183,993) Total 3,498,977 108,524 3,607,501 Less: Current portion (341,257) (48,391) (389,648) Long-term portion of lease obligations $ 3,157,720 $ 60,133 $ 3,217,853 |
Schedule of Lease Revenue | For the Three Months Ended March 31, 2024 2023 (In thousands) Lease revenue: Sales-type lease revenue $ 1,084 $ 4,201 Operating lease revenue 5,654 11,187 Total lease revenue $ 6,738 $ 15,388 |
Schedule of Operating Lease Payments to be Received | For the Years Ending December 31, Total (In thousands) 2024 (remaining nine months) $ 6,415 2025 4,953 2026 3,567 2027 3,488 2028 672 Thereafter 177 Total lease payments to be received $ 19,272 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying amount and fair value of our debt facilities | As of March 31, 2024 December 31, 2023 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 2 3/8% Convertible Notes due 2024 (1) DISH $ — $ — $ 951,168 $ 944,034 5 7/8% Senior Notes due 2024 DDBS 1,982,544 1,905,621 1,982,544 1,872,275 0% Convertible Notes due 2025 DISH 1,957,197 1,418,968 1,957,197 1,228,141 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,390,000 2,000,000 1,388,060 5 1/4% Senior Secured Notes due 2026 HSSC 750,000 625,200 750,000 665,678 6 5/8% Senior Notes due 2026 HSSC 750,000 445,875 750,000 591,525 3 3/8% Convertible Notes due 2026 DISH 2,908,801 1,830,799 2,908,801 1,570,753 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,158,750 2,750,000 2,366,073 11 3/4% Senior Secured Notes due 2027 DISH 3,500,000 3,578,750 3,500,000 3,668,980 7 3/8% Senior Notes due 2028 DDBS 1,000,000 489,200 1,000,000 600,160 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 1,718,750 2,500,000 2,013,125 5 1/8% Senior Notes due 2029 DDBS 1,500,000 629,250 1,500,000 774,600 Other notes payable 146,513 146,513 160,158 160,158 Subtotal 21,745,055 $ 16,337,676 22,709,868 $ 17,843,562 Unamortized deferred financing costs and other debt discounts, net (66,115) (69,606) Finance lease obligations (2) 108,524 123,658 Total long-term debt and finance lease obligations (including current portion) $ 21,787,464 $ 22,763,920 (1) We repurchased or redeemed the principal balance of our 2 3/8% Convertible Notes due 2024 as of March 15, 2024, the instrument’s maturity date. (2) Disclosure regarding fair value of finance leases is not required. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Summary of wireless spectrum licenses | Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2025 (3) June 2033 AWS-4 Licenses (2) 1,940,000 June 14, 2025 (3) June 2033 H Block Licenses (2) 1,671,506 June 14, 2025 (4) June 2033 600 MHz Licenses 6,213,335 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 July 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,969 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,329,093 May 4, 2026 (6) May 4, 2030 (6) May 2037 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz (2) 972 March 2026 AWS-3 9,890,389 October 2025 (7) October 2025 (7) Subtotal 29,591,671 Capitalized Interest (8) 8,760,710 Total as of March 31, 2024 $ 38,352,381 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses are in the past. (3) For these licenses, we must offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor . (4) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was achieved in March 2024 using the drive test methodology previously agreed upon by us and the FCC and overseen by an independent monitor . (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) For these licenses, we must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. (8) See Note 2 for further information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting | |
Schedule of total assets, revenue and operating income, and purchases of property and equipment, net of refunds by segment | As of March 31, December 31, 2024 2023 (In thousands) Total assets: Pay-TV $ 49,306,211 $ 49,437,958 Retail Wireless 750,328 777,957 5G Network Deployment (1) 47,276,901 46,793,378 Broadband and Satellite Services 4,224,153 5,811,553 Eliminations (1) (46,001,176) (45,711,952) Total assets $ 55,556,417 $ 57,108,894 (1) The increase primarily resulted from intercompany advances for capital expenditures related to our 5G Network Deployment. For the Three Months Ended March 31, 2024 2023 (In thousands) Revenue: Pay-TV $ 2,726,578 $ 2,972,131 Retail Wireless 905,850 974,866 5G Network Deployment 29,504 18,907 Broadband and Satellite Services 382,586 439,596 Eliminations (29,675) (17,834) Total revenue $ 4,014,843 $ 4,387,666 Operating income (loss): Pay-TV $ 670,108 $ 675,233 Retail Wireless (74,417) (18,207) 5G Network Deployment (570,751) (333,603) Broadband and Satellite Services (39,554) 27,705 Eliminations (630) 2,210 Total operating income (loss) $ (15,244) $ 353,338 Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) Pay-TV $ 57,912 $ 35,563 Retail Wireless — — 5G Network Deployment 549,173 871,042 Broadband and Satellite Services 70,611 44,071 Eliminations — — Total purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) $ 677,696 $ 950,676 |
Schedule of long-lived assets by geographic region and revenue from external customers disaggregated by major revenue source | For the Three Months Ended March 31, Category: 2024 2023 (In thousands) Pay-TV subscriber and related revenue $ 2,701,179 $ 2,944,482 Retail wireless services and related revenue 804,265 867,111 5G network deployment services and related revenue 4 — Broadband and satellite services and other revenue 317,120 374,522 Pay-TV equipment sales and other revenue 25,399 27,649 Retail wireless equipment sales and other revenue 101,585 107,755 5G network deployment equipment sales and other revenue 29,500 18,907 Broadband equipment and other revenue 65,466 65,074 Eliminations (29,675) (17,834) Total $ 4,014,843 $ 4,387,666 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition | |
Summary of valuation and qualifying accounts | For the Three Months Ended March 31, 2024 (In thousands) Balance at beginning of period $ 74,390 Current period provision for expected credit losses 26,521 Write-offs charged against allowance (15,979) Acquisitions — Foreign currency translation (26) Balance at end of period $ 84,906 |
Summary of contract asset and contract liability balances | As of March 31, December 31, 2024 2023 (In thousands) Contract assets $ 72,300 $ 66,103 As of March 31, December 31, 2024 2023 (In thousands) Contract liabilities $ 664,212 $ 710,456 |
Summary of activity in contract acquisition costs, net | For the Three Months Ended March 31, 2024 2023 (In thousands) Balance at beginning of period $ 352,114 $ 460,876 Additions 65,104 95,659 Amortization expense (94,266) (112,883) Foreign currency translation (139) 452 Balance at end of period $ 322,813 $ 444,104 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Hughes Systique | |
Schedule of transactions with related party | For the Three Months Ended March 31, 2024 (In thousands) Purchases: Purchases from Hughes Systique $ 4,596 As of March 31, 2024 December 31, 2023 (In thousands) Amounts Payable: Amounts payable to Hughes Systique $ 1,483 $ 1,704 |
NagraStar L.L.C. | |
Schedule of transactions with related party | For the Three Months Ended March 31, 2024 2023 (In thousands) Purchases (including fees): Purchases from NagraStar $ 8,602 $ 9,545 As of March 31, December 31, 2024 2023 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 6,452 $ 9,821 Commitments to NagraStar $ 1,177 $ 1,727 |
Organization and Business Act_2
Organization and Business Activities (Details) $ in Thousands, person in Millions | 3 Months Ended | ||||||
Mar. 10, 2024 USD ($) | Sep. 29, 2023 item | Sep. 29, 2023 item person | Sep. 29, 2023 item | Jun. 14, 2023 | Mar. 31, 2024 USD ($) item | Nov. 30, 2024 USD ($) | |
Spectrum Investments | |||||||
Number of Pay-TV subscribers | 8,178,000 | ||||||
Number Of wireless subscribers | 7,297,000 | ||||||
Payment to customer | $ | $ 30,000,000 | ||||||
Regulatory Authorizations | $ | $ 38,352,381 | ||||||
Number of subscribers for broadband services | 978,000 | ||||||
Number of nationwide 5G commitments that are met | 2 | 2 | 2 | ||||
Number of nationwide 5G commitments | 3 | 3 | 3 | ||||
Number of Americans nationwide for deployment of 5G services | 200,000,000 | 200 | |||||
cash and cash equivalents and marketable investment securities | $ | $ 766,000 | ||||||
Outstanding debt | $ | $ 1,983,000 | ||||||
Capitalized interest on FCC authorizations | |||||||
Spectrum Investments | |||||||
Regulatory Authorizations | $ | $ 9,000,000 | ||||||
Minimum | MHz 700 Licenses and AWS-4 Licenses | |||||||
Spectrum Investments | |||||||
Minimum percentage of population having access to average download speed | 70% | 70% | 70% | ||||
Sling TV Holding L.L.C. | |||||||
Spectrum Investments | |||||||
Number of Pay-TV subscribers | 1,920,000 | ||||||
EchoStar Real Estate Holding L.L.C. | CONX | Real estate property in Littleton, Colorado, | |||||||
Spectrum Investments | |||||||
Purchase price of property | $ | $ 26,750 | ||||||
Sale leaseback transaction | 10 years | ||||||
DISH Network L.L.C. | |||||||
Spectrum Investments | |||||||
Number of Americans nationwide for deployment of 5G services | person | 250 | ||||||
Dish TV | |||||||
Spectrum Investments | |||||||
Number of Pay-TV subscribers | 6,258,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 16, 2024 | Oct. 12, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting policy disclosures | ||||
Cost of sales - equipment and other | $ 363,083 | $ 520,060 | ||
Interest expense, net of amounts capitalized | 99,408 | 20,033 | ||
Advertising expenses | 164,000 | 173,000 | ||
Research and Development | ||||
Research and development cost | 25,000 | 28,000 | ||
SNR HoldCo | ||||
Accounting policy disclosures | ||||
Purchase of ownership interests | $ 442,000 | |||
5G Network Development | ||||
Accounting policy disclosures | ||||
Cost of sales - equipment and other | $ 183,000 | |||
Interest expense, net of amounts capitalized | $ 88,000 | |||
Northstar | ||||
Accounting policy disclosures | ||||
Purchase of ownership interests | $ 109,000 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share (EPS Amounts for Basic and Diluted Weighted-Average Shares Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 15, 2024 | Dec. 31, 2023 | |
Net income (loss) | $ (108,375) | $ 272,845 | ||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (999) | 19,311 | ||
Net income (loss) attributable to EchoStar | (107,376) | 253,534 | ||
Net income (loss) attributable to EchoStar - Diluted | $ (107,376) | $ 253,534 | ||
Weighted-average common shares outstanding - Class A and B common stock: | ||||
Basic (in shares) | 271,519 | 269,833 | ||
Dilutive impact of Convertible Notes (in shares) | 37,550 | |||
Dilutive impact of stock awards outstanding (in shares) | 27 | |||
Diluted (in shares) | 271,519 | 307,410 | ||
Earnings per share - Class A and B common stock: | ||||
Basic net income (loss) per share attributable to EchoStar (In dollar per share) | $ (0.40) | $ 0.94 | ||
Diluted net income (loss) per share attributable to EchoStar (in dollars per share) | $ (0.40) | $ 0.82 | ||
Interest rate (as a percent) | 0.25% | |||
Anti-dilutive securities excluded from computation of earnings per share | 32,124,000 | 32,263,000 | ||
Class A common stock | ||||
Earnings per share - Class A and B common stock: | ||||
Anti-dilutive securities excluded from computation of earnings per share | 33,000,000 | |||
DISH Network | 2 3/8% Convertible Notes due 2024 | ||||
Earnings per share - Class A and B common stock: | ||||
Interest rate (as a percent) | 2.375% | 2.375% | 2.375% |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Share - Performance based stock (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 32,124 | 32,263 |
Anti-dilutive stock awards | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 11,417 | 10,849 |
Performance/market based options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 4,556 | 5,020 |
Restricted Performance Units/Awards | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 243 | |
Common stock warrants | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 16,151 | 16,151 |
Basic and Diluted Net Income _5
Basic and Diluted Net Income (Loss) Per Share - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | Apr. 01, 2024 USD ($) employee $ / shares shares | Mar. 31, 2024 $ / shares |
Antidilutive securities excluded from computation of earnings per share | ||
Exchange in Period | shares | 7 | |
Number of Eligible Employees Eligible For Exhange Offer | employee | 1,000 | |
Exercise price | shares | 6 | |
Share-based payment arrangement | $ 14.04 | |
Total incremental non-cash stock-based compensation expense | $ | $ 15 | |
Maximum | Class A common stock | ||
Antidilutive securities excluded from computation of earnings per share | ||
Exercise price of warrants | $ 245.33 | |
Minimum | Class A common stock | ||
Antidilutive securities excluded from computation of earnings per share | ||
Exercise price of warrants | $ 185.75 |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Data - Statements of Cash Flows | ||
Cash paid for interest (including capitalized interest) | $ 230,581 | $ 270,460 |
Cash received for interest | 31,732 | 21,872 |
Cash paid for income taxes, net of (refunds) | (41,115) | 502 |
Capitalized interest | 258,367 | 337,094 |
Employee benefits paid in Class A common stock | 5,421 | |
Vendor financing | 54,774 | |
Accrued capital expenditures | 164,693 | 511,453 |
Asset retirement obligation | $ 4,308 | $ 31,554 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Marketable investment securities, restricted cash and other investments | ||
Total current marketable investment securities | $ 152,649 | $ 623,044 |
Total marketable investment securities | 183,915 | 650,884 |
Restricted cash and cash equivalents | 89,713 | 90,225 |
Equity method investments | 161,657 | 169,038 |
Cost method investments | 108,333 | 106,134 |
Fair value method and other debt investments | 39,199 | 39,198 |
Total other investment securities, net | 309,189 | 314,370 |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities, net | 582,817 | 1,055,479 |
Current marketable investment securities - strategic - available-for-sale | ||
Marketable investment securities, restricted cash and other investments | ||
Total current marketable investment securities | 149 | 144 |
Current marketable investment securities - strategic - trading/equity | ||
Marketable investment securities, restricted cash and other investments | ||
Total current marketable investment securities | 144,419 | 176,205 |
Other investment securities | ||
Marketable investment securities, restricted cash and other investments | ||
Total current marketable investment securities | 8,081 | 446,695 |
Restricted marketable investment securities | ||
Marketable investment securities, restricted cash and other investments | ||
Total marketable investment securities | $ 31,266 | $ 27,840 |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
NagraStar | |
Other investments, net: | |
Ownership interest (as a percent) | 50% |
Invidi Technologies Corporation | |
Other investments, net: | |
Ownership interest (as a percent) | 35% |
TerreStar Solutions, Inc | |
Other investments, net: | |
Ownership interest (as a percent) | 40% |
Deluxe/EchoStar LLC | |
Other investments, net: | |
Ownership interest (as a percent) | 50% |
Broadband connectivity solutions | |
Other investments, net: | |
Ownership interest (as a percent) | 20% |
Commercial paper | Maximum | |
Other investments, net: | |
Debt term of Maturity | 365 days |
Corporate securities | Maximum | |
Other investments, net: | |
Debt term of Maturity | 18 months |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments - Investments Measured at Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value of marketable securities | ||
Debt securities | $ 39,000 | |
Derivative's fair value | $ 0 | |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Cash Equivalents (including restricted) | 356,899 | 1,692,849 |
Total | 183,915 | 650,884 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Total | 17,910 | 65,172 |
Fair value measurements on recurring basis | Commercial paper | ||
Fair value of marketable securities | ||
Total | 6,100 | 290,398 |
Fair value measurements on recurring basis | Corporate securities | ||
Fair value of marketable securities | ||
Total | 15,032 | 114,265 |
Fair value measurements on recurring basis | Other (including restricted) | ||
Fair value of marketable securities | ||
Total | 454 | 4,844 |
Fair value measurements on recurring basis | Equity securities | ||
Fair value of marketable securities | ||
Equity securities | 144,419 | 176,205 |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Cash Equivalents (including restricted) | 125,445 | 573,504 |
Total | 152,599 | 231,653 |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Total | 17,910 | 65,172 |
Fair value measurements on recurring basis | Level 1 | Equity securities | ||
Fair value of marketable securities | ||
Equity securities | 134,689 | 166,481 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Cash Equivalents (including restricted) | 231,454 | 1,119,345 |
Total | 31,167 | 419,087 |
Fair value measurements on recurring basis | Level 2 | Commercial paper | ||
Fair value of marketable securities | ||
Total | 6,100 | 290,398 |
Fair value measurements on recurring basis | Level 2 | Corporate securities | ||
Fair value of marketable securities | ||
Total | 15,032 | 114,265 |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | ||
Fair value of marketable securities | ||
Total | 305 | 4,700 |
Fair value measurements on recurring basis | Level 2 | Equity securities | ||
Fair value of marketable securities | ||
Equity securities | 9,730 | 9,724 |
Fair value measurements on recurring basis | Level 3 | ||
Fair value of marketable securities | ||
Total | 149 | 144 |
Fair value measurements on recurring basis | Level 3 | Other (including restricted) | ||
Fair value of marketable securities | ||
Total | $ 149 | $ 144 |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments - Other Income Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income (Expense) | ||
Marketable and non-marketable investment securities - realized and unrealized gains (losses) | $ (23,893) | $ (7,417) |
Derivative instruments - net realized and/or unrealized gains (losses) | (28,961) | |
Gains (losses) related to early redemption of debt | 49 | |
Foreign currency transaction gains (losses) | (627) | 3,172 |
Equity in earnings (losses) of affiliates | (2,786) | (2,002) |
Other | 1,196 | 398 |
Total | $ (26,110) | $ (34,761) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory | ||
Finished goods | $ 473,444 | $ 512,894 |
Work-in-process and service repairs | 63,309 | 68,463 |
Consignment | 44,746 | 56,360 |
Raw materials | 51,453 | 27,452 |
Total inventory | $ 632,952 | $ 665,169 |
Property and Equipment and In_3
Property and Equipment and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Property and equipment | |||
Total property and equipment | $ 17,751,314 | $ 17,747,189 | |
Accumulated depreciation | (8,161,881) | (8,185,355) | |
Property and equipment, net | 9,589,433 | 9,561,834 | |
Non-cash impairment charge | $ 3,142 | ||
Equipment leased to customers | |||
Property and equipment | |||
Total property and equipment | $ 1,909,842 | $ 1,977,450 | |
Equipment leased to customers | Minimum | |||
Property and equipment | |||
Depreciable Life | 2 years | 2 years | |
Equipment leased to customers | Maximum | |||
Property and equipment | |||
Depreciable Life | 5 years | 5 years | |
Satellites | |||
Property and equipment | |||
Total property and equipment | $ 3,880,725 | $ 4,168,766 | |
Satellites | Minimum | |||
Property and equipment | |||
Depreciable Life | 5 years | 5 years | |
Satellites | Maximum | |||
Property and equipment | |||
Depreciable Life | 15 years | 15 years | |
Satellites acquired under finance lease agreements | |||
Property and equipment | |||
Depreciable Life | 15 years | 15 years | |
Total property and equipment | $ 709,504 | $ 712,832 | |
Furniture, fixtures, equipment and other | |||
Property and equipment | |||
Total property and equipment | $ 1,693,151 | $ 1,691,389 | |
Furniture, fixtures, equipment and other | Minimum | |||
Property and equipment | |||
Depreciable Life | 1 year | 1 year | |
Furniture, fixtures, equipment and other | Maximum | |||
Property and equipment | |||
Depreciable Life | 20 years | 20 years | |
5G Network Deployment equipment | |||
Property and equipment | |||
Total property and equipment | $ 4,475,376 | $ 4,263,327 | |
5G Network Deployment equipment | Minimum | |||
Property and equipment | |||
Depreciable Life | 3 years | 3 years | |
5G Network Deployment equipment | Maximum | |||
Property and equipment | |||
Depreciable Life | 15 years | 15 years | |
Software and computer equipment | |||
Property and equipment | |||
Total property and equipment | $ 2,632,917 | $ 2,503,597 | |
Software and computer equipment | Minimum | |||
Property and equipment | |||
Depreciable Life | 2 years | 2 years | |
Software and computer equipment | Maximum | |||
Property and equipment | |||
Depreciable Life | 6 years | 6 years | |
Buildings and improvements | |||
Property and equipment | |||
Total property and equipment | $ 543,860 | $ 538,815 | |
Buildings and improvements | Minimum | |||
Property and equipment | |||
Depreciable Life | 1 year | 1 year | |
Buildings and improvements | Maximum | |||
Property and equipment | |||
Depreciable Life | 40 years | 40 years | |
Land | |||
Property and equipment | |||
Total property and equipment | $ 46,149 | $ 46,675 | |
Construction in progress | |||
Property and equipment | |||
Total property and equipment | $ 1,859,790 | $ 1,844,338 |
Property and Equipment and In_4
Property and Equipment and Intangible Assets - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Depreciation and amortization expense | ||
Depreciation and amortization | $ 485,400 | $ 347,754 |
Equipment leased to customers | ||
Depreciation and amortization expense | ||
Depreciation and amortization | 71,767 | 88,890 |
Satellites | ||
Depreciation and amortization expense | ||
Depreciation and amortization | 75,577 | 66,204 |
Buildings, furniture, fixtures, equipment and other | ||
Depreciation and amortization expense | ||
Depreciation and amortization | 27,713 | 24,247 |
5G Network Deployment equipment | ||
Depreciation and amortization expense | ||
Depreciation and amortization | 166,822 | 61,151 |
Software and computer equipment | ||
Depreciation and amortization expense | ||
Depreciation and amortization | 88,687 | 52,758 |
Intangible assets and other amortization expense | ||
Depreciation and amortization expense | ||
Depreciation and amortization | $ 54,834 | $ 54,504 |
Property and Equipment and In_5
Property and Equipment and Intangible Assets - Asset retirement obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Activity relating to our asset retirement obligations | |||
Balance at beginning of period | $ 278,287 | $ 183,135 | |
Liabilities incurred | 4,308 | 31,554 | |
Accretion expense | 6,464 | 4,106 | |
Balance at end of period | 289,059 | 218,795 | |
Total | 289,059 | 218,795 | $ 278,287 |
Corresponding assets, net of accumulated depreciation, related to asset retirement obligations | 216,000 | $ 217,000 | |
Other long-term liabilities | |||
Activity relating to our asset retirement obligations | |||
Balance at end of period | 289,059 | 218,795 | |
Total | $ 289,059 | $ 218,795 |
Property and Equipment and In_6
Property and Equipment and Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 item | Mar. 31, 2023 USD ($) | Mar. 10, 2024 USD ($) | |
Property and equipment | |||
Impairment of long-lived assets | $ | $ 3,142 | ||
Real estate property in Littleton, Colorado, | CONX | EchoStar Real Estate Holding L.L.C. | |||
Property and equipment | |||
Purchase price of property | $ | $ 26,750 | ||
Pay-TV | |||
Property and equipment | |||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 9 | ||
Owned satellites | 7 | ||
Number of satellites leased | 2 | ||
Broadband and Satellite Services | |||
Property and equipment | |||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 9 | ||
Owned satellites | 6 | ||
Number of satellites leased | 3 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Option to extend - Operating | true |
Option to extend - Finance | true |
Option to terminate - Operating | true |
Option to terminate - Finance | true |
Minimum | |
Option to extend period - Operating | 1 year |
Maximum | |
Option to extend period - Operating | 13 years |
Option to extend period - Finance | 13 years |
Option to terminate period - Operating | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | ||
Operating lease cost | $ 167,006 | $ 117,556 |
Short-term lease cost | 1,023 | 1,279 |
Finance lease cost: Amortization of right-of-use assets | 18,468 | 34,197 |
Finance lease cost: Interest on lease liabilities | 2,792 | 3,570 |
Total finance lease cost | 21,260 | 37,767 |
Total lease costs | $ 189,289 | $ 156,602 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | ||
Operating cash flows from operating leases | $ 118,408 | $ 73,613 |
Operating cash flows from finance leases | 2,824 | 2,397 |
Financing cash flows from finance leases | 15,134 | 8,713 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 199,300 | 231,868 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 51,110 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases | ||
Operating lease assets | $ 3,092,070 | $ 3,065,448 |
Other current liabilities | $ 341,257 | $ 317,395 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating lease liabilities | $ 3,157,720 | $ 3,121,307 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities |
Total | $ 3,498,977 | $ 3,438,702 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable, Current, Operating lease liabilities | Accounts Payable, Current, Operating lease liabilities |
Property and equipment, gross | $ 17,751,314 | $ 17,747,189 |
Accumulated depreciation | (8,161,881) | (8,185,355) |
Property and equipment, net | 9,589,433 | 9,561,834 |
Other current liabilities | $ 48,391 | $ 56,459 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | Long-term Debt and Capital Lease Obligations, Current |
Other long-term liabilities | $ 60,133 | $ 67,199 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Total | $ 108,524 | $ 123,658 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Operating lease, weighted average remaining lease term | 10 years | 10 years 7 months 6 days |
Finance lease, weighted average remaining lease term | 2 years 1 month 6 days | 2 years 2 months 12 days |
Operating lease, weighted average discount rate, percent | 9.90% | 9.50% |
Finance lease, weighted average discount rate, percent | 9.60% | 9.70% |
Property and equipment | ||
Leases | ||
Property and equipment, gross | $ 830,606 | $ 833,933 |
Accumulated depreciation | (538,300) | (520,344) |
Property and equipment, net | $ 292,306 | $ 313,589 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Maturities of lease liabilities: Operating lease | ||
2024 (remaining nine months) | $ 350,672 | |
2025 | 499,361 | |
2026 | 531,049 | |
2027 | 531,138 | |
2028 | 487,494 | |
Thereafter | 3,269,111 | |
Total lease payments | 5,668,825 | |
Less: Imputed interest | (2,169,848) | |
Total | 3,498,977 | $ 3,438,702 |
Less: Current portion | (341,257) | (317,395) |
Long-term portion of lease obligations | 3,157,720 | 3,121,307 |
Maturities of lease liabilities: Finance lease | ||
2024 (remaining nine months) | 48,115 | |
2025 | 35,392 | |
2026 | 36,588 | |
2027 | 2,574 | |
Total lease payments | 122,669 | |
Less: Imputed interest | (14,145) | |
Total | 108,524 | 123,658 |
Less: Current portion | (48,391) | (56,459) |
Long-term portion of lease obligations | 60,133 | $ 67,199 |
Future minimum payments for total lease liabilities | ||
2024 (remaining nine months) | 398,787 | |
2025 | 534,753 | |
2026 | 567,637 | |
2027 | 533,712 | |
2028 | 487,494 | |
Thereafter | 3,269,111 | |
Total lease payments | 5,791,494 | |
Less: Imputed interest | (2,183,993) | |
Total | 3,607,501 | |
Less: Current portion | (389,648) | |
Long-term portion of lease obligations | $ 3,217,853 |
Leases - Lease Income By Lease
Leases - Lease Income By Lease Type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Sales-type lease revenue | $ 1,084 | $ 4,201 | |
Operating lease revenue | 5,654 | 11,187 | |
Total lease revenue | 6,738 | $ 15,388 | |
Sales-type lease receivable | $ 28,000 | $ 30,000 | |
Equipment sales and other revenue | |||
Sales-Type Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | |
Service and other revenue | |||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Leases - Lease Income Maturity
Leases - Lease Income Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Amounts | |
2024 (remaining nine months) | $ 6,415 |
2025 | 4,953 |
2026 | 3,567 |
2027 | 3,488 |
2028 | 672 |
Thereafter | 177 |
Total lease payments to be received | $ 19,272 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Nov. 30, 2024 | Mar. 31, 2024 | Mar. 15, 2024 | Dec. 31, 2023 | Dec. 21, 2020 | Aug. 08, 2016 |
Debt Instrument | ||||||
Carrying Value | $ 21,745,055 | $ 22,709,868 | ||||
Fair Value | 16,337,676 | 17,843,562 | ||||
Unamortized deferred financing costs and other debt discounts, net | (66,115) | (69,606) | ||||
Finance lease obligations (2) | 108,524 | 123,658 | ||||
Total long-term debt and finance lease obligations (including current portion) | $ 21,787,464 | 22,763,920 | ||||
Interest rate (as a percent) | 0.25% | |||||
Outstanding debt | $ 1,983,000 | |||||
2 3/8% Convertible Notes due 2024 | DISH Network L.L.C. | ||||||
Debt Instrument | ||||||
Carrying Value | 951,168 | |||||
Fair Value | $ 944,034 | |||||
Interest rate (as a percent) | 2.375% | 2.375% | 2.375% | |||
5 7/8% Senior Notes due 2024 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 1,982,544 | $ 1,982,544 | ||||
Fair Value | $ 1,905,621 | $ 1,872,275 | ||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||
0% Convertible Notes due 2025 | DISH Network L.L.C. | ||||||
Debt Instrument | ||||||
Carrying Value | $ 1,957,197 | $ 1,957,197 | ||||
Fair Value | $ 1,418,968 | 1,228,141 | ||||
Interest rate (as a percent) | 0% | |||||
Aggregate principal amount | $ 2,000,000 | |||||
7 3/4% Senior Notes due 2026 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 2,000,000 | 2,000,000 | ||||
Fair Value | $ 1,390,000 | $ 1,388,060 | ||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||
5 1/4% Senior Secured Notes due 2026 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 2,750,000 | $ 2,750,000 | ||||
Fair Value | $ 2,158,750 | $ 2,366,073 | ||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||
5 1/4% Senior Secured Notes due 2026 | HSSC | ||||||
Debt Instrument | ||||||
Carrying Value | $ 750,000 | $ 750,000 | ||||
Fair Value | $ 625,200 | $ 665,678 | ||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||
6 5/8% Senior Notes due 2026 | HSSC | ||||||
Debt Instrument | ||||||
Carrying Value | $ 750,000 | $ 750,000 | ||||
Fair Value | $ 445,875 | $ 591,525 | ||||
Interest rate (as a percent) | 6.625% | 6.625% | ||||
3 3/8% Convertible Notes due 2026 | DISH Network L.L.C. | ||||||
Debt Instrument | ||||||
Carrying Value | $ 2,908,801 | $ 2,908,801 | ||||
Fair Value | $ 1,830,799 | $ 1,570,753 | ||||
Interest rate (as a percent) | 3.375% | 3.375% | ||||
Aggregate principal amount | $ 3,000,000 | |||||
11 3/4% Senior Secured Notes due 2027 | DISH Network L.L.C. | ||||||
Debt Instrument | ||||||
Carrying Value | $ 3,500,000 | $ 3,500,000 | ||||
Fair Value | $ 3,578,750 | $ 3,668,980 | ||||
Interest rate (as a percent) | 11.75% | 11.75% | ||||
7 3/8% Senior Notes due 2028 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 1,000,000 | $ 1,000,000 | ||||
Fair Value | $ 489,200 | $ 600,160 | ||||
Interest rate (as a percent) | 7.375% | 7.375% | ||||
5 3/4% Senior Secured Notes due 2028 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 2,500,000 | $ 2,500,000 | ||||
Fair Value | $ 1,718,750 | $ 2,013,125 | ||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||
5 1/8 % Senior Notes due 2029 | DDBS | ||||||
Debt Instrument | ||||||
Carrying Value | $ 1,500,000 | $ 1,500,000 | ||||
Fair Value | $ 629,250 | 774,600 | ||||
Interest rate (as a percent) | 5.125% | |||||
Other notes payable | ||||||
Debt Instrument | ||||||
Carrying Value | $ 146,513 | 160,158 | ||||
Fair Value | $ 146,513 | $ 160,158 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Narratives (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 15, 2024 | Dec. 31, 2023 | Dec. 21, 2020 | Aug. 08, 2016 | |
Debt Instrument | |||||
Interest rate (as a percent) | 0.25% | ||||
Class A common stock | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
0% Convertible Notes due 2025 | Class A common stock | |||||
Debt Instrument | |||||
Convertible notes converted rate, shares | 8.566 | ||||
Aggregate principal amount | $ 1,000 | ||||
Common stock par value (in dollars per share) | $ 116.74 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | |||||
Debt Instrument | |||||
Convertible notes converted rate, shares | 5.383 | ||||
Aggregate principal amount | $ 1,000 | ||||
Common stock par value (in dollars per share) | $ 185.76 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Convertible note hedges | |||||
Debt Instrument | |||||
Convertible notes converted into shares | 46,000,000 | ||||
Common stock par value (in dollars per share) | $ 65.18 | ||||
Total cost of convertible notes | $ 635,000,000 | ||||
Conversion of shares | 16,000,000 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Convertible note hedges | DISH Network | |||||
Debt Instrument | |||||
Share price (in dollars per share) | $ 185.76 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | |||||
Debt Instrument | |||||
Convertible notes converted into warrants | 46,000,000 | ||||
Common stock par value (in dollars per share) | $ 86.08 | ||||
Cash proceeds from the sale of warrants | $ 376,000,000 | ||||
DDBS | 7 3/4% Senior Notes due 2026 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.75% | 7.75% | |||
DDBS | 7 3/8% Senior Notes due 2028 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.375% | 7.375% | |||
DDBS | 5 1/8 % Senior Notes due 2029 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.125% | ||||
DDBS | 5 1/4% Senior Secured Notes due 2026 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.25% | 5.25% | |||
DDBS | 5 3/4% Senior Secured Notes due 2028 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.75% | 5.75% | |||
DDBS | 5 7/8% Senior Notes due 2024 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | 5.875% | |||
HSSC | 6 5/8% Unsecured Senior Notes due 2026 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 6.625% | 6.625% | |||
HSSC | 5 1/4% Senior Secured Notes due 2026 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.25% | 5.25% | |||
DISH Network | 2 3/8% Convertible Notes due 2024 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 2.375% | 2.375% | 2.375% | ||
DISH Network | 0% Convertible Notes due 2025 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 0% | ||||
Aggregate principal amount | $ 2,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100% | ||||
DISH Network | 3 3/8% Convertible Notes due 2026 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 3.375% | 3.375% | |||
Aggregate principal amount | $ 3,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100% | ||||
DISH Network | 11 3/4% Senior Secured Notes due 2027 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 11.75% | 11.75% | |||
EchoStar | 3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | |||||
Debt Instrument | |||||
Conversion of convertible securities | 16,000,000 | ||||
EchoStar | 3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Maximum | DISH Network | |||||
Debt Instrument | |||||
Share price (in dollars per share) | $ 245.33 | ||||
EchoStar | 3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Minimum | DISH Network | |||||
Debt Instrument | |||||
Share price (in dollars per share) | $ 185.75 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Intercompany Loan (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) tranche | |
Debt Instrument | |
Interest rate (as a percent) | 0.25% |
Payment to customer | $ 30,000,000 |
DISH DBS Corporation ("DBS") | |
Debt Instrument | |
Interest payment in kind (in percent) | 0.75% |
Intercompany Loan | DISH DBS Corporation ("DBS") | |
Debt Instrument | |
Additional debt | $ 1,500,000 |
Minimum interest payment due (in percent) | 50% |
Period After Issuance First Payment In Kind Due | 2 years |
After Period After Issuance First Interest Payment Due | 2 years |
Outstanding amount | $ 7,496,000 |
Number of tranche | tranche | 2 |
Loan paid | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 12, 2023 USD ($) | Sep. 29, 2023 | Jun. 14, 2023 | Dec. 31, 2027 | Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 14, 2025 | Jul. 14, 2023 | Sep. 20, 2022 USD ($) | |
Spectrum Investments | ||||||||||||
Litigation accrual | $ 3,900 | |||||||||||
Redeemable noncontrolling interests | $ 438,382 | |||||||||||
Percentage of population five G services offered | 75% | 75% | ||||||||||
Percentage of Population Northstar Wireless and SNR Wireless offered | 75% | |||||||||||
Impairment of long-lived assets | $ 3,142 | |||||||||||
Regulatory Authorizations | $ 38,352,381 | |||||||||||
Interest rate (as a percent) | 0.25% | |||||||||||
Wireless | ||||||||||||
Spectrum Investments | ||||||||||||
Network development current and future expenditures | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||||
Regulatory Authorizations | 29,591,671 | |||||||||||
DBS Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 677,409 | |||||||||||
700 MHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 711,871 | |||||||||||
AWS-4 Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 1,940,000 | |||||||||||
H Block Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 1,671,506 | |||||||||||
600 MHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 6,213,335 | |||||||||||
MVDDS | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 24,000 | |||||||||||
28 GHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 2,883 | |||||||||||
24 GHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 11,772 | |||||||||||
37 Ghz, 39 Ghz and 47 Ghz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 202,533 | |||||||||||
3550-3650 MHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 912,939 | |||||||||||
3.7-3.98 GHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 2,969 | |||||||||||
3.45-3.55 GHz Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 7,329,093 | |||||||||||
1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 972 | |||||||||||
AWS-3 Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | 9,890,389 | |||||||||||
Capitalized Interest | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | $ 9,000,000 | |||||||||||
Minimum | MHz 700 Licenses and AWS-4 Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Minimum percentage of population having access to average download speed | 70% | 70% | 70% | |||||||||
Minimum | H Block Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Minimum percentage of population having access to average download speed | 70% | |||||||||||
Capitalized Interest. | ||||||||||||
Spectrum Investments | ||||||||||||
Regulatory Authorizations | $ 8,760,710 | |||||||||||
Northstar | ||||||||||||
Spectrum Investments | ||||||||||||
Purchase of ownership interests | $ 109,000 | |||||||||||
Northstar Wireless or Northstar Spectrum | ||||||||||||
Spectrum Investments | ||||||||||||
Re-Auction payment | 1,892,000 | |||||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | ||||||||||||
Spectrum Investments | ||||||||||||
Non-payment gross winning bids | $ 2,226,000 | |||||||||||
Interim payment percentage | 15% | |||||||||||
Overpayment of interim payment | $ 334,000 | |||||||||||
Northstar Wireless or Northstar Spectrum | Northstar | ||||||||||||
Spectrum Investments | ||||||||||||
Number of wireless spectrum licenses | item | 261 | |||||||||||
SNR | ||||||||||||
Spectrum Investments | ||||||||||||
Non-payment gross winning bids | $ 1,211,000 | |||||||||||
Interim payment percentage | 15% | |||||||||||
Re-Auction payment | $ 1,029,000 | |||||||||||
Overpayment of interim payment | $ 182,000 | |||||||||||
SNR | American III | ||||||||||||
Spectrum Investments | ||||||||||||
Number of wireless spectrum licenses | item | 244 |
Commitments and Contingencies -
Commitments and Contingencies - Part 2 (Details) $ in Millions | 3 Months Ended | 75 Months Ended | |
Aug. 18, 2015 USD ($) | Mar. 31, 2024 USD ($) item | Mar. 31, 2024 USD ($) | |
Spectrum Investments | |||
Payment to customer | $ 30,000 | ||
5G Network Development | |||
Spectrum Investments | |||
Payment to customer | $ 30,000 | ||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | |||
Commitments relating to AWS-3 Auction | |||
Percentage of bidding credit | 25% | ||
Northstar Wireless or Northstar Spectrum | SNR Licenses | |||
Commitments relating to AWS-3 Auction | |||
Percentage of bidding credit | 25% | ||
Bidding credit value | $ 1,961 | ||
SNR | SNR Licenses | |||
Commitments relating to AWS-3 Auction | |||
Bidding credit value | $ 1,370 | ||
Prior Arrangement | Northstar Wireless or Northstar Spectrum | |||
Commitments relating to AWS-3 Auction | |||
Number of licenses returned | item | 84 | ||
Prior Arrangement | SNR | SNR Licenses | |||
Commitments relating to AWS-3 Auction | |||
Number of licenses returned | item | 113 |
Commitments and Contingencies_3
Commitments and Contingencies - Part 3 (Details) person in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 29, 2023 person | Sep. 29, 2023 item | Sep. 01, 2020 | Sep. 23, 2016 USD ($) | Aug. 18, 2015 USD ($) | Jul. 17, 2015 USD ($) | Mar. 14, 2014 USD ($) | Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | |
Loss contingencies | ||||||||||
Number of Americans Nationwide For Deploy FiveG Services | 200 | 200,000,000 | ||||||||
Impairment of long-lived assets | $ 3,142,000 | |||||||||
Loss contingency terms | ||||||||||
Loss Contingency, Damages Awarded, Value | $ 90,000,000 | |||||||||
Loss Contingency, Damages Paid, Value | $ 52,000,000 | |||||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | ||||||||||
Loss contingency terms | ||||||||||
Percentage of bidding credit | 25% | |||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Vermont National Telephone Company | ||||||||||
Loss contingency terms | ||||||||||
Percentage of bidding credit | 25% | |||||||||
Recovery amount | $ 10,000,000,000 | |||||||||
Bidding credit value | 3,300,000,000 | |||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Minimum | Vermont National Telephone Company | ||||||||||
Loss contingency terms | ||||||||||
Claim amount | 5,500 | |||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Maximum | Vermont National Telephone Company | ||||||||||
Loss contingency terms | ||||||||||
Claim amount | $ 11,000 | |||||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | ||||||||||
Loss contingency terms | ||||||||||
Percentage of bidding credit | 25% | |||||||||
Bidding credit value | $ 1,961,000,000 | |||||||||
SNR | SNR Licenses | ||||||||||
Loss contingency terms | ||||||||||
Bidding credit value | $ 1,370,000,000 | |||||||||
DISH Network L.L.C. | ||||||||||
Loss contingencies | ||||||||||
Number of Americans Nationwide For Deploy FiveG Services | person | 250 | |||||||||
Pending Litigation | ClearPlay | ||||||||||
Loss contingency terms | ||||||||||
Claim amount | $ 469,000,000 | |||||||||
Pending Litigation | TQ Delta | ||||||||||
Loss contingency terms | ||||||||||
Claim amount | $ 251,000,000 | |||||||||
Cyber-Security Class Actions | ||||||||||
Loss contingency terms | ||||||||||
Ten additional putative class action complaints | item | 10 | |||||||||
License Fee Dispute | ||||||||||
Loss contingencies | ||||||||||
Payment schedule term (in years) | 10 years |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting | |
Number of primary operating business segments | 4 |
Segment Reporting - Total asset
Segment Reporting - Total assets by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting | ||
Total assets | $ 55,556,417 | $ 57,108,894 |
Operating segment | Pay-TV | ||
Segment Reporting | ||
Total assets | 49,306,211 | 49,437,958 |
Operating segment | Retail Wireless | ||
Segment Reporting | ||
Total assets | 750,328 | 777,957 |
Operating segment | 5G Network Deployment | ||
Segment Reporting | ||
Total assets | 47,276,901 | 46,793,378 |
Operating segment | Broadband and Satellite Services | ||
Segment Reporting | ||
Total assets | 4,224,153 | 5,811,553 |
Operating segment | Eliminations | ||
Segment Reporting | ||
Total assets | $ (46,001,176) | $ (45,711,952) |
Segment Reporting - Revenue, Op
Segment Reporting - Revenue, Operating Income and Purchases of Property and Equipment by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting | ||
Total revenue | $ 4,014,843 | $ 4,387,666 |
Operating income (loss) | (15,244) | 353,338 |
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | 677,696 | 950,676 |
Operating segment | Pay-TV | ||
Segment Reporting | ||
Total revenue | 2,726,578 | 2,972,131 |
Operating income (loss) | 670,108 | 675,233 |
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | 57,912 | 35,563 |
Operating segment | Retail Wireless | ||
Segment Reporting | ||
Total revenue | 905,850 | 974,866 |
Operating income (loss) | (74,417) | (18,207) |
Operating segment | 5G Network Deployment | ||
Segment Reporting | ||
Total revenue | 29,504 | 18,907 |
Operating income (loss) | (570,751) | (333,603) |
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | 549,173 | 871,042 |
Operating segment | Broadband and Satellite Services | ||
Segment Reporting | ||
Total revenue | 382,586 | 439,596 |
Operating income (loss) | (39,554) | 27,705 |
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) | 70,611 | 44,071 |
Operating segment | All Other & Eliminations | ||
Segment Reporting | ||
Total revenue | (29,675) | (17,834) |
Operating income (loss) | $ (630) | $ 2,210 |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting | ||
Revenues | $ 4,014,843 | $ 4,387,666 |
All other | Equipment sales and other revenue | ||
Segment Reporting | ||
Eliminations | (29,675) | (17,834) |
Pay-TV | Pay-TV subscriber and related revenue | ||
Segment Reporting | ||
Revenues | 2,701,179 | 2,944,482 |
Pay-TV | Equipment sales and other revenue | ||
Segment Reporting | ||
Revenues | 25,399 | 27,649 |
Retail Wireless | Wireless services and related revenue | ||
Segment Reporting | ||
Revenues | 804,265 | 867,111 |
Retail Wireless | Equipment sales and other revenue | ||
Segment Reporting | ||
Revenues | 101,585 | 107,755 |
5G Network Deployment | network deployment services and related revenue | ||
Segment Reporting | ||
Revenues | 4 | |
5G Network Deployment | Equipment sales and other revenue | ||
Segment Reporting | ||
Revenues | 29,500 | 18,907 |
Broadband and satellite services | Broadband and satellite services and other revenue | ||
Segment Reporting | ||
Revenues | 317,120 | 374,522 |
Broadband and satellite services | Equipment sales and other revenue | ||
Segment Reporting | ||
Revenues | $ 65,466 | $ 65,074 |
Revenue Recognition - Valuation
Revenue Recognition - Valuation and Qualifying Accounts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Revenue Recognition | |
Balance at beginning of period | $ 74,390 |
Current period provision for expected credit losses | 26,521 |
Write-offs charged against allowance | (15,979) |
Acquisitions | 0 |
Foreign currency translation | (26) |
Balance at end of period | $ 84,906 |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Contract Liability Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Contract Asset and Contract Liability Balances | ||
Contract assets | $ 72,300 | $ 66,103 |
Contract liabilities | 664,212 | $ 710,456 |
Customer Contract | ||
Contract Asset and Contract Liability Balances | ||
Contract liabilities | $ 615,000 |
Revenue Recognition - Activity
Revenue Recognition - Activity in Contract Acquisition Costs, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition | ||
Balance at beginning of period | $ 352,114 | $ 460,876 |
Additions | 65,104 | 95,659 |
Amortization expense | (94,266) | (112,883) |
Foreign currency translation | (139) | 452 |
Balance at end of period | $ 322,813 | $ 444,104 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue Recognition | ||
Remaining performance obligation | $ 1,412 | $ 1,740 |
Decrease of customer liability | $ 328 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Recognition | ||
Remaining performance obligation period | 1 year | |
Remaining performance obligation, percentage | 29% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue Recognition | ||
Remaining performance obligation period | 1 year | |
Remaining performance obligation, percentage | 71% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transactions | |||
Amounts receivable related party | $ 1,023,089 | $ 1,122,139 | |
Amounts payable to related party | $ 573,299 | 774,011 | |
TerreStar Solutions, Inc | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 40% | ||
Deluxe/EchoStar LLC | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50% | ||
Hughes Systique | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 42% | ||
Purchases from related party | $ 4,596 | ||
Amounts payable to related party | $ 1,483 | 1,704 | |
NagraStar L.L.C. | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50% | ||
Purchases from related party | $ 8,602 | $ 9,545 | |
Amounts payable to related party | 6,452 | 9,821 | |
Commitments to related party | $ 1,177 | $ 1,727 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |