Supplemental Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2014 |
Supplemental Guarantor and Non-Guarantor Financial Information | ' |
Supplemental Guarantor and Non-Guarantor Financial Information | ' |
Note 15. Supplemental Guarantor and Non-Guarantor Financial Information |
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Certain of our wholly-owned subsidiaries (together, the “Guarantor Subsidiaries”) have fully and unconditionally guaranteed, on a joint and several basis, the obligations of our 6 1/2% senior secured notes due 2019 and 7 5/8 % senior notes due 2021 (collectively, the “Notes”), which were issued on June 1, 2011. See Note 10 for further information on the Notes. |
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In lieu of separate financial statements of the Guarantor Subsidiaries, condensed consolidating financial information prepared in accordance with Rule 3-10(f) of Regulation S-X is presented below, including the condensed balance sheet information, the condensed statement of operations and comprehensive income (loss) information and the condensed statement of cash flows information of HSS, the Guarantor Subsidiaries on a combined basis and the non-guarantor subsidiaries of HSS on a combined basis and the eliminations necessary to arrive at the corresponding information of HSS on a consolidated basis. |
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The indentures governing the Notes contain restrictive covenants that, among other things, impose limitations on our ability and the ability of our restricted subsidiaries to pay dividends or make distributions, incur additional debt, make certain investments, create liens or enter into sale and leaseback transactions, merge or consolidate with another company, transfer and sell assets, or enter into transactions with affiliates. |
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The condensed consolidating financial information presented below should be read in conjunction with our condensed consolidated financial statements and notes thereto included herein. |
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Condensed Consolidating Balance Sheet as of September 30, 2014 |
(In thousands) |
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| | | | Guarantor | | Non- | | | | | |
Guarantor |
| | HSS | | Subsidiaries | | Subsidiaries | | Eliminations | | Total | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 263,270 | | $ | 41,069 | | $ | 23,965 | | $ | — | | $ | 328,304 | |
Marketable investment securities | | 253,894 | | 13,542 | | — | | — | | 267,436 | |
Trade accounts receivable, net | | — | | 108,593 | | 45,050 | | — | | 153,643 | |
Trade accounts receivable - DISH Network, net | | — | | 21,466 | | 66 | | — | | 21,532 | |
Advances to affiliates, net | | 131,007 | | 76,576 | | — | | (206,501 | ) | 1,082 | |
Inventory | | — | | 45,994 | | 9,748 | | — | | 55,742 | |
Other current assets | | 67 | | 82,081 | | 26,245 | | (4,480 | ) | 103,913 | |
Total current assets | | 648,238 | | 389,321 | | 105,074 | | (210,981 | ) | 931,652 | |
Restricted cash and cash equivalents | | 9,665 | | 7,500 | | 637 | | — | | 17,802 | |
Property and equipment, net | | — | | 2,248,122 | | 43,259 | | — | | 2,291,381 | |
Regulatory authorizations | | — | | 471,658 | | — | | — | | 471,658 | |
Goodwill | | — | | 504,173 | | — | | — | | 504,173 | |
Other intangible assets, net | | — | | 169,886 | | — | | — | | 169,886 | |
Investment in subsidiaries | | — | | 81,001 | | — | | (81,001 | ) | — | |
Advances to affiliates | | 2,750,046 | | 1,716 | | — | | (2,751,762 | ) | — | |
Other noncurrent assets, net | | 40,555 | | 157,339 | | 9,580 | | — | | 207,474 | |
Total assets | | $ | 3,448,504 | | $ | 4,030,716 | | $ | 158,550 | | $ | (3,043,744 | ) | $ | 4,594,026 | |
Liabilities and Shareholders’ Equity (Deficit) | | | | | | | | | | | |
Trade accounts payable | | $ | — | | $ | 85,526 | | $ | 13,418 | | $ | — | | $ | 98,944 | |
Trade accounts payable - DISH Network | | — | | 20 | | — | | — | | 20 | |
Current portion of long-term debt and capital lease obligations | | — | | 40,514 | | 1,771 | | — | | 42,285 | |
Advances from affiliates, net | | — | | 63,506 | | 17,972 | | (49,515 | ) | 31,963 | |
Accrued expenses and other | | 89,814 | | 104,385 | | 21,733 | | (4,480 | ) | 211,452 | |
Total current liabilities | | 89,814 | | 293,951 | | 54,894 | | (53,995 | ) | 384,664 | |
Long-term debt and capital lease obligations, net of current portion | | 2,000,000 | | 330,611 | | 1,828 | | — | | 2,332,439 | |
Advances from affiliates | | — | | 2,749,346 | | 10,737 | | (2,751,763 | ) | 8,320 | |
Other noncurrent liabilities | | 18,378 | | 499,822 | | 83 | | — | | 518,283 | |
Total HSS shareholders’ equity (deficit) | | 1,340,312 | | 156,986 | | 81,001 | | (237,986 | ) | 1,340,313 | |
Noncontrolling interests | | — | | — | | 10,007 | | — | | 10,007 | |
Total liabilities and shareholders’ equity | | $ | 3,448,504 | | $ | 4,030,716 | | $ | 158,550 | | $ | (3,043,744 | ) | $ | 4,594,026 | |
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Condensed Consolidating Balance Sheet as of December 31, 2013 |
(In thousands) |
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| | | | Guarantor | | Non- | | | | | |
Guarantor |
| | HSS | | Subsidiaries | | Subsidiaries | | Eliminations | | Total | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 97,674 | | $ | 34,340 | | $ | 31,695 | | $ | — | | $ | 163,709 | |
Marketable investment securities | | 109,702 | | 7,158 | | — | | — | | 116,860 | |
Trade accounts receivable, net | | — | | 86,726 | | 46,229 | | — | | 132,955 | |
Trade accounts receivable - DISH Network, net | | — | | 68,037 | | 54 | | — | | 68,091 | |
Advances to affiliates, net | | 158,763 | | — | | — | | (158,023 | ) | 740 | |
Inventory | | — | | 47,021 | | 9,972 | | — | | 56,993 | |
Other current assets | | 38 | | 99,888 | | 22,856 | | (4,480 | ) | 118,302 | |
Total current assets | | 366,177 | | 343,170 | | 110,806 | | (162,503 | ) | 657,650 | |
Restricted cash and cash equivalents | | 7,004 | | 7,500 | | 610 | | — | | 15,114 | |
Property and equipment, net | | — | | 1,961,103 | | 22,178 | | — | | 1,983,281 | |
Regulatory authorizations | | — | | 471,658 | | — | | — | | 471,658 | |
Goodwill | | — | | 504,173 | | — | | — | | 504,173 | |
Other intangible assets, net | | — | | 213,747 | | — | | — | | 213,747 | |
Investment in subsidiaries | | — | | 65,453 | | — | | (65,453 | ) | — | |
Advances to affiliates | | 2,645,266 | | 1,716 | | — | | (2,646,982 | ) | — | |
Other noncurrent assets, net | | 44,875 | | 140,107 | | 11,206 | | — | | 196,188 | |
Total assets | | $ | 3,063,322 | | $ | 3,708,627 | | $ | 144,800 | | $ | (2,874,938 | ) | $ | 4,041,811 | |
Liabilities and Shareholders’ Equity (Deficit) | | | | | | | | | | | |
Trade accounts payable | | $ | — | | $ | 78,093 | | $ | 12,907 | | $ | — | | $ | 91,000 | |
Trade accounts payable - DISH Network | | 5 | | — | | — | | — | | 5 | |
Current portion of long-term debt and capital lease obligations | | — | | 65,430 | | 1,870 | | — | | 67,300 | |
Advances from affiliates, net | | — | | 295,562 | | 18,509 | | (303,360 | ) | 10,711 | |
Accrued expenses and other | | 47,359 | | 91,254 | | 25,255 | | (4,480 | ) | 159,388 | |
Total current liabilities | | 47,364 | | 530,339 | | 58,541 | | (307,840 | ) | 328,404 | |
Long-term debt and capital lease obligations, net of current portion | | 2,000,000 | | 350,597 | | 975 | | — | | 2,351,572 | |
Advances from affiliates | | — | | 2,644,566 | | 10,637 | | (2,646,982 | ) | 8,221 | |
Other noncurrent liabilities | | — | | 328,463 | | 333 | | — | | 328,796 | |
Total HSS shareholders’ equity (deficit) | | 1,015,958 | | (145,338 | ) | 65,453 | | 79,884 | | 1,015,957 | |
Noncontrolling interests | | — | | — | | 8,861 | | — | | 8,861 | |
Total liabilities and shareholders’ equity | | $ | 3,063,322 | | $ | 3,708,627 | | $ | 144,800 | | $ | (2,874,938 | ) | $ | 4,041,811 | |
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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Three Months Ended September 30, 2014 |
(In thousands) |
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| | HSS | | Guarantor | | Non- | | Eliminations | | Total | |
Subsidiaries | Guarantor |
| Subsidiaries |
Revenue: | | | | | | | | | | | |
Services and other revenue | | $ | — | | $ | 239,490 | | $ | 39,880 | | $ | (6,009 | ) | $ | 273,361 | |
Services and other revenue - DISH Network | | — | | 129,211 | | 178 | | — | | 129,389 | |
Equipment revenue | | — | | 53,803 | | 7,304 | | (4,527 | ) | 56,580 | |
Equipment revenue - DISH Network | | — | | 6,350 | | — | | — | | 6,350 | |
Total revenue | | — | | 428,854 | | 47,362 | | (10,536 | ) | 465,680 | |
Costs and Expenses: | | | | | | | | | | | |
Costs of sales - services and other | | — | | 112,280 | | 28,612 | | (6,008 | ) | 134,884 | |
Cost of sales - equipment | | — | | 54,004 | | 4,761 | | (4,072 | ) | 54,693 | |
Selling, general and administrative expenses | | — | | 56,024 | | 8,222 | | (456 | ) | 63,790 | |
Research and development expenses | | — | | 5,168 | | — | | — | | 5,168 | |
Depreciation and amortization | | — | | 113,899 | | 1,929 | | — | | 115,828 | |
Total costs and expenses | | — | | 341,375 | | 43,524 | | (10,536 | ) | 374,363 | |
Operating income | | — | | 87,479 | | 3,838 | | — | | 91,317 | |
Other Income (Expense): | | | | | | | | | | | |
Interest income | | 54,937 | | 111 | | 306 | | (54,518 | ) | 836 | |
Interest expense, net of amounts capitalized | | (36,497 | ) | (65,463 | ) | (27 | ) | 54,519 | | (47,468 | ) |
Equity in earnings (losses) of subsidiaries, net | | 24,583 | | 1,843 | | — | | (26,426 | ) | — | |
Other, net | | 6 | | 2,325 | | (853 | ) | — | | 1,478 | |
Total other income (expense), net | | 43,029 | | (61,184 | ) | (574 | ) | (26,425 | ) | (45,154 | ) |
Income (loss) before income taxes | | 43,029 | | 26,295 | | 3,264 | | (26,425 | ) | 46,163 | |
Income tax provision, net | | (6,679 | ) | (1,610 | ) | (1,147 | ) | — | | (9,436 | ) |
Net income (loss) | | 36,350 | | 24,685 | | 2,117 | | (26,425 | ) | 36,727 | |
Less: Net income attributable to noncontrolling interests | | — | | — | | 376 | | — | | 376 | |
Net income (loss) attributable to HSS | | $ | 36,350 | | $ | 24,685 | | $ | 1,741 | | $ | (26,425 | ) | $ | 36,351 | |
Comprehensive Income (Loss): | | | | | | | | | | | |
Net income (loss) | | $ | 36,350 | | $ | 24,685 | | $ | 2,117 | | $ | (26,425 | ) | $ | 36,727 | |
Other comprehensive loss, net of tax: | | | | | | | | | | | |
Foreign currency translation adjustments | | — | | — | | (5,644 | ) | — | | (5,644 | ) |
Unrealized losses on AFS securities and other | | (1,924 | ) | — | | (52 | ) | — | | (1,976 | ) |
Recognition of previously unrealized losses on AFS securities included in net income (loss) | | 52 | | — | | — | | — | | 52 | |
Equity in other comprehensive loss of subsidiaries, net | | (5,489 | ) | (5,490 | ) | — | | 10,979 | | — | |
Total other comprehensive loss, net of tax | | (7,361 | ) | (5,490 | ) | (5,696 | ) | 10,979 | | (7,568 | ) |
Comprehensive income (loss) | | 28,989 | | 19,195 | | (3,579 | ) | (15,446 | ) | 29,159 | |
Less: Comprehensive income attributable to noncontrolling interests | | — | | — | | 170 | | — | | 170 | |
Comprehensive income (loss) attributable to HSS | | $ | 28,989 | | $ | 19,195 | | $ | (3,749 | ) | $ | (15,446 | ) | $ | 28,989 | |
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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Three Months Ended September 30, 2013 |
(In thousands) |
|
| | HSS | | Guarantor | | Non- | | Eliminations | | Total | |
Subsidiaries | Guarantor |
| Subsidiaries |
Revenue: | | | | | | | | | | | |
Services and other revenue | | $ | — | | $ | 212,257 | | $ | 37,642 | | $ | (5,811 | ) | $ | 244,088 | |
Services and other revenue - DISH Network | | — | | 79,090 | | 156 | | — | | 79,246 | |
Equipment revenue | | — | | 43,633 | | 6,467 | | (6,057 | ) | 44,043 | |
Equipment revenue - DISH Network | | — | | 19,590 | | — | | — | | 19,590 | |
Total revenue | | — | | 354,570 | | 44,265 | | (11,868 | ) | 386,967 | |
Costs and Expenses: | | | | | | | | | | | |
Costs of sales - services and other | | — | | 108,465 | | 26,276 | | (5,674 | ) | 129,067 | |
Cost of sales - equipment | | — | | 59,932 | | 4,406 | | (5,776 | ) | 58,562 | |
Selling, general and administrative expenses | | — | | 50,941 | | 7,396 | | (418 | ) | 57,919 | |
Research and development expenses | | — | | 5,807 | | — | | — | | 5,807 | |
Depreciation and amortization | | — | | 97,825 | | 1,840 | | — | | 99,665 | |
Total costs and expenses | | — | | 322,970 | | 39,918 | | (11,868 | ) | 351,020 | |
Operating income | | — | | 31,600 | | 4,347 | | — | | 35,947 | |
Other Income (expense): | | | | | | | | | | | |
Interest income | | 50,547 | | 463 | | 366 | | (50,414 | ) | 962 | |
Interest expense, net of amounts capitalized | | (36,394 | ) | (62,621 | ) | (193 | ) | 50,414 | | (48,794 | ) |
Equity in earnings (loss) of subsidiaries, net | | (12,773 | ) | 2,152 | | — | | 10,621 | | — | |
Other, net | | 10 | | 1,929 | | (920 | ) | — | | 1,019 | |
Total other income (expense) | | 1,390 | | (58,077 | ) | (747 | ) | 10,621 | | (46,813 | ) |
Income (loss) before income taxes | | 1,390 | | (26,477 | ) | 3,600 | | 10,621 | | (10,866 | ) |
Income tax benefit (provision), net | | (5,156 | ) | 13,784 | | (1,211 | ) | — | | 7,417 | |
Net income (loss) | | (3,766 | ) | (12,693 | ) | 2,389 | | 10,621 | | (3,449 | ) |
Less: Net income attributable to noncontrolling interests | | — | | — | | 317 | | — | | 317 | |
Net income (loss) attributable to HSS | | $ | (3,766 | ) | $ | (12,693 | ) | $ | 2,072 | | $ | 10,621 | | $ | (3,766 | ) |
Comprehensive Income (Loss): | | | | | | | | | | | |
Net income (loss) | | $ | (3,766 | ) | $ | (12,693 | ) | $ | 2,389 | | $ | 10,621 | | $ | (3,449 | ) |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | |
Foreign currency translation adjustments | | — | | — | | (1,093 | ) | — | | (1,093 | ) |
Unrealized gains (losses) on AFS securities and other | | (374 | ) | — | | 9 | | — | | (365 | ) |
Recognition of previously unrealized gains on AFS securities included in net income (loss) | | (9 | ) | — | | — | | — | | (9 | ) |
Equity in other comprehensive income (loss) of subsidiaries | | (731 | ) | (731 | ) | — | | 1,462 | | — | |
Total other comprehensive income (loss), net of tax | | (1,114 | ) | (731 | ) | (1,084 | ) | 1,462 | | (1,467 | ) |
Comprehensive income (loss) | | (4,880 | ) | (13,424 | ) | 1,305 | | 12,083 | | (4,916 | ) |
Less: Comprehensive loss attributable to noncontrolling interests | | — | | — | | (36 | ) | — | | (36 | ) |
Comprehensive income (loss) attributable to HSS | | $ | (4,880 | ) | $ | (13,424 | ) | $ | 1,341 | | $ | 12,083 | | $ | (4,880 | ) |
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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Nine Months Ended September 30, 2014 |
(In thousands) |
|
| | HSS | | Guarantor | | Non- | | Eliminations | | Total | |
Subsidiaries | Guarantor |
| Subsidiaries |
Revenue: | | | | | | | | | | | |
Services and other revenue | | $ | — | | $ | 698,344 | | $ | 123,781 | | $ | (18,282 | ) | $ | 803,843 | |
Services and other revenue - DISH Network | | — | | 356,991 | | 503 | | — | | 357,494 | |
Equipment revenue | | — | | 141,998 | | 23,262 | | (13,182 | ) | 152,078 | |
Equipment revenue - DISH Network | | — | | 24,249 | | — | | — | | 24,249 | |
Total revenue | | — | | 1,221,582 | | 147,546 | | (31,464 | ) | 1,337,664 | |
Costs and Expenses: | | | | | | | | | | | |
Costs of sales - services and other | | — | | 331,032 | | 87,448 | | (18,281 | ) | 400,199 | |
Cost of sales - equipment | | — | | 150,014 | | 16,803 | | (11,927 | ) | 154,890 | |
Selling, general and administrative expenses | | — | | 168,245 | | 24,600 | | (1,256 | ) | 191,589 | |
Research and development expenses | | — | | 14,314 | | — | | — | | 14,314 | |
Depreciation and amortization | | — | | 333,492 | | 6,339 | | — | | 339,831 | |
Total costs and expenses | | — | | 997,097 | | 135,190 | | (31,464 | ) | 1,100,823 | |
Operating income | | — | | 224,485 | | 12,356 | | — | | 236,841 | |
Other Income (Expense): | | | | | | | | | | | |
Interest income | | 160,682 | | 279 | | 1,264 | | (159,814 | ) | 2,411 | |
Interest expense, net of amounts capitalized | | (109,413 | ) | (194,202 | ) | (1,009 | ) | 159,814 | | (144,810 | ) |
Equity in earnings (losses) of subsidiaries, net | | 42,533 | | 6,908 | | — | | (49,441 | ) | — | |
Other, net | | 15 | | 4,453 | | (500 | ) | — | | 3,968 | |
Total other income (expense), net | | 93,817 | | (182,562 | ) | (245 | ) | (49,441 | ) | (138,431 | ) |
Income (loss) before income taxes | | 93,817 | | 41,923 | | 12,111 | | (49,441 | ) | 98,410 | |
Income tax benefit (provision), net | | (18,571 | ) | 891 | | (4,380 | ) | — | | (22,060 | ) |
Net income (loss) | | 75,246 | | 42,814 | | 7,731 | | (49,441 | ) | 76,350 | |
Less: Net income attributable to noncontrolling interests | | — | | — | | 1,103 | | — | | 1,103 | |
Net income (loss) attributable to HSS | | $ | 75,246 | | $ | 42,814 | | $ | 6,628 | | $ | (49,441 | ) | $ | 75,247 | |
Comprehensive Income (Loss): | | | | | | | | | | | |
Net income (loss) | | $ | 75,246 | | $ | 42,814 | | $ | 7,731 | | $ | (49,441 | ) | $ | 76,350 | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | |
Foreign currency translation adjustments | | — | | — | | (2,293 | ) | — | | (2,293 | ) |
Unrealized losses on AFS securities and other | | (2,761 | ) | — | | (42 | ) | — | | (2,803 | ) |
Recognition of previously unrealized losses on AFS securities included in net income (loss) | | 42 | | — | | — | | — | | 42 | |
Equity in other comprehensive income (loss) of subsidiaries, net | | (2,377 | ) | (2,378 | ) | — | | 4,755 | | — | |
Total other comprehensive income (loss), net of tax | | (5,096 | ) | (2,378 | ) | (2,335 | ) | 4,755 | | (5,054 | ) |
Comprehensive income (loss) | | 70,150 | | 40,436 | | 5,396 | | (44,686 | ) | 71,296 | |
Less: Comprehensive income attributable to noncontrolling interests | | — | | — | | 1,146 | | — | | 1,146 | |
Comprehensive income (loss) attributable to HSS | | $ | 70,150 | | $ | 40,436 | | $ | 4,250 | | $ | (44,686 | ) | $ | 70,150 | |
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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Nine Months Ended September 30, 2013 |
(In thousands) |
|
| | HSS | | Guarantor | | Non- | | Eliminations | | Total | |
Subsidiaries | Guarantor |
| Subsidiaries |
Revenue: | | | | | | | | | | | |
Services and other revenue | | $ | — | | $ | 635,379 | | $ | 113,388 | | $ | (15,962 | ) | $ | 732,805 | |
Services and other revenue - DISH Network | | — | | 209,368 | | 515 | | — | | 209,883 | |
Equipment revenue | | — | | 140,596 | | 36,336 | | (29,050 | ) | 147,882 | |
Equipment revenue - DISH Network | | — | | 56,823 | | — | | — | | 56,823 | |
Total revenue | | — | | 1,042,166 | | 150,239 | | (45,012 | ) | 1,147,393 | |
Costs and Expenses: | | | | | | | | | | | |
Costs of sales - services and other | | — | | 311,235 | | 77,736 | | (15,491 | ) | 373,480 | |
Cost of sales - equipment | | — | | 177,951 | | 32,335 | | (28,143 | ) | 182,143 | |
Selling, general and administrative expenses | | — | | 155,531 | | 23,302 | | (1,378 | ) | 177,455 | |
Research and development expenses | | — | | 16,423 | | — | | — | | 16,423 | |
Depreciation and amortization | | — | | 296,915 | | 5,437 | | — | | 302,352 | |
Impairment of long-lived asset | | — | | 34,664 | | — | | — | | 34,664 | |
Total costs and expenses | | — | | 992,719 | | 138,810 | | (45,012 | ) | 1,086,517 | |
Operating income | | — | | 49,447 | | 11,429 | | — | | 60,876 | |
Other Income (Expense): | | | | | | | | | | | |
Interest income | | 148,036 | | 523 | | 566 | | (147,705 | ) | 1,420 | |
Interest expense, net of amounts capitalized | | (109,107 | ) | (185,146 | ) | (1,276 | ) | 147,705 | | (147,824 | ) |
Equity in earnings (losses) of subsidiaries, net | | (65,063 | ) | 4,468 | | — | | 60,595 | | — | |
Other, net | | 31 | | 12,143 | | (2,081 | ) | — | | 10,093 | |
Total other expense, net | | (26,103 | ) | (168,012 | ) | (2,791 | ) | 60,595 | | (136,311 | ) |
Income (loss) before income taxes | | (26,103 | ) | (118,565 | ) | 8,638 | | 60,595 | | (75,435 | ) |
Income tax benefit (provision), net | | (14,237 | ) | 53,775 | | (3,910 | ) | — | | 35,628 | |
Net income (loss) | | (40,340 | ) | (64,790 | ) | 4,728 | | 60,595 | | (39,807 | ) |
Less: Net income attributable to noncontrolling interests | | — | | — | | 533 | | — | | 533 | |
Net income (loss) attributable to HSS | | $ | (40,340 | ) | $ | (64,790 | ) | $ | 4,195 | | $ | 60,595 | | $ | (40,340 | ) |
Comprehensive Income (Loss): | | | | | | | | | | | |
Net income (loss) | | $ | (40,340 | ) | $ | (64,790 | ) | $ | 4,728 | | $ | 60,595 | | $ | (39,807 | ) |
Other comprehensive loss, net of tax: | | | | | | | | | | | |
Foreign currency translation adjustments | | — | | — | | (6,693 | ) | — | | (6,693 | ) |
Unrealized gains (loss) on AFS securities and other | | (713 | ) | — | | 31 | | — | | (682 | ) |
Recognition of previously unrealized gains on AFS securities included in net income (loss) | | (31 | ) | — | | — | | — | | (31 | ) |
Equity in other comprehensive income (loss) of subsidiaries, net | | (5,685 | ) | (5,685 | ) | — | | 11,370 | | — | |
Total other comprehensive loss, net of tax | | (6,429 | ) | (5,685 | ) | (6,662 | ) | 11,370 | | (7,406 | ) |
Comprehensive loss | | (46,769 | ) | (70,475 | ) | (1,934 | ) | 71,965 | | (47,213 | ) |
Less: Comprehensive loss attributable to noncontrolling interests | | — | | — | | (444 | ) | — | | (444 | ) |
Comprehensive loss attributable to HSS | | $ | (46,769 | ) | $ | (70,475 | ) | $ | (1,490 | ) | $ | 71,965 | | $ | (46,769 | ) |
|
Condensed Consolidating Statement of Cash Flows |
For the Nine Months Ended September 30, 2014 |
(In thousands) |
|
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
| | HSS | | Subsidiaries | | Subsidiaries | | Eliminations | | Total | |
Cash Flows from Operating Activities: | | | | | | | | | | | |
Net income (loss) | | $ | 75,246 | | $ | 42,814 | | $ | 7,731 | | $ | (49,441 | ) | $ | 76,350 | |
Adjustments to reconcile net income to net cash flows from operating activities | | 231,330 | | 160,259 | | 12,421 | | 49,441 | | 453,451 | |
Net cash flows from operating activities | | 306,576 | | 203,073 | | 20,152 | | — | | 529,801 | |
Cash Flows from Investing Activities: | | | | | | | | | | | |
Purchases of marketable investment securities | | (269,215 | ) | — | | — | | — | | (269,215 | ) |
Sales and maturities of marketable investment securities | | 130,997 | | — | | — | | — | | 130,997 | |
Purchases of property and equipment | | — | | (139,317 | ) | (26,685 | ) | — | | (166,002 | ) |
Changes in restricted cash and cash equivalents | | (2,661 | ) | — | | (27 | ) | — | | (2,688 | ) |
Investment in subsidiary | | (10,601 | ) | — | | — | | 10,601 | | — | |
Other, net | | (101 | ) | (17,430 | ) | — | | — | | (17,531 | ) |
Net cash flows from investing activities | | (151,581 | ) | (156,747 | ) | (26,712 | ) | 10,601 | | (324,439 | ) |
Cash Flows from Financing Activities: | | | | | | | | | | | |
Proceeds from issuance of Hughes Retail Preferred Tracking Stock, net of offering cost | | 10,601 | | 10,601 | | — | | (10,601 | ) | 10,601 | |
Repayment of long-term debt and capital lease obligations | | — | | (44,903 | ) | (5,001 | ) | — | | (49,904 | ) |
Other | | — | | (5,295 | ) | 4,179 | | — | | (1,116 | ) |
Net cash flows from financing activities | | 10,601 | | (39,597 | ) | (822 | ) | (10,601 | ) | (40,419 | ) |
Effect of exchange rates on cash and cash equivalents | | — | | — | | (348 | ) | — | | (348 | ) |
Net increase (decrease) in cash and cash equivalents | | 165,596 | | 6,729 | | (7,730 | ) | — | | 164,595 | |
Cash and cash equivalents, at beginning of period | | 97,674 | | 34,340 | | 31,695 | | — | | 163,709 | |
Cash and cash equivalents, at end of period | | $ | 263,270 | | $ | 41,069 | | $ | 23,965 | | $ | — | | $ | 328,304 | |
|
Condensed Consolidating Statement of Cash Flows |
For the Nine Months Ended September 30, 2013 |
(In thousands) |
|
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
| | HSS | | Subsidiaries | | Subsidiaries | | Eliminations | | Total | |
Cash Flows from Operating Activities: | | | | | | | | | | | |
Net income (loss) | | $ | (40,340 | ) | $ | (64,790 | ) | $ | 4,728 | | $ | 60,595 | | $ | (39,807 | ) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | | 132,934 | | 224,646 | | (3,211 | ) | (60,595 | ) | 293,774 | |
Net cash flows from operating activities | | 92,594 | | 159,856 | | 1,517 | | — | | 253,967 | |
Cash Flows from Investing Activities: | | | | | | | | | | | |
Purchases of marketable investment securities | | (77,604 | ) | — | | — | | — | | (77,604 | ) |
Sales and maturities of marketable investment securities | | 47,714 | | — | | — | | — | | 47,714 | |
Purchases of property and equipment | | — | | (143,411 | ) | (8,268 | ) | — | | (151,679 | ) |
Transfer of regulatory authorization to DISH Network | | — | | 23,148 | | — | | — | | 23,148 | |
Changes in restricted cash and cash equivalents | | 6,290 | | 7,536 | | 312 | | — | | 14,138 | |
Other, net | | — | | (10,112 | ) | 91 | | — | | (10,021 | ) |
Net cash flows from investing activities | | (23,600 | ) | (122,839 | ) | (7,865 | ) | — | | (154,304 | ) |
Cash Flows from Financing Activities: | | | | | | | | | | | |
Repayment of long-term debt and capital lease obligations | | — | | (48,682 | ) | (3,240 | ) | — | | (51,922 | ) |
Other | | — | | (826 | ) | 12,384 | | — | | 11,558 | |
Net cash flows from financing activities | | — | | (49,508 | ) | 9,144 | | — | | (40,364 | ) |
Effect of exchange rates on cash and cash equivalents | | — | | — | | 3,074 | | — | | 3,074 | |
Net increase (decrease) in cash and cash equivalents | | 68,994 | | (12,491 | ) | 5,870 | | — | | 62,373 | |
Cash and cash equivalents, at beginning of period | | 24,098 | | 88,623 | | 23,498 | | — | | 136,219 | |
Cash and cash equivalents, at end of period | | $ | 93,092 | | $ | 76,132 | | $ | 29,368 | | $ | — | | $ | 198,592 | |