Hughes Satellite Systems 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 28, 2015
Document and Entity Information
Entity Registrant Name	Hughes Satellite Systems Corp
Entity Central Index Key	1,533,758
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 278,102	$ 225,557
Marketable investment securities, at fair value	333,957	394,992
Trade accounts receivable, net of allowance for doubtful accounts of $12,355 and $11,950, respectively	146,411	140,193
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero	19,466	19,249
Deferred tax assets	176,535	157,949
Inventory	61,657	51,597
Prepaids and deposits	32,262	30,938
Advances to affiliates, net	30,436	736
Other current assets	12,015	7,625
Total current assets	1,090,841	1,028,836
Noncurrent Assets:
Restricted cash and cash equivalents	17,965	17,652
Property and equipment, net of accumulated depreciation of $2,060,214 and $2,053,636, respectively	2,264,539	2,274,568
Regulatory authorizations, net	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	124,970	157,100
Investments in unconsolidated entities	37,921	32,969
Other noncurrent assets, net	225,544	177,628
Total noncurrent assets	3,646,770	3,635,748
Total assets	4,737,611	4,664,584
Current Liabilities:
Trade accounts payable	94,969	93,783
Trade accounts payable - DISH Network	20	18
Current portion of long-term debt and capital lease obligations	29,426	39,746
Advances from affiliates, net	3,805	23,792
Deferred revenue and prepayments	63,812	61,063
Accrued interest	41,166	8,890
Accrued compensation	19,889	20,128
Accrued expenses and other	85,312	82,533
Total current liabilities	338,399	329,953
Noncurrent Liabilities:
Long-term debt and capital lease obligations, net of current portion	2,193,997	2,325,417
Deferred tax liabilities	613,976	539,560
Advances from affiliates	12,153	8,352
Other noncurrent liabilities	84,531	91,705
Total noncurrent liabilities	2,904,657	2,965,034
Total liabilities	$ 3,243,056	$ 3,294,987
Commitments and Contingencies (Note 12)
Shareholders' Equity:
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,000 shares issued and outstanding at each of September 30, 2015 and December 31, 2014
Additional paid-in capital	$ 1,416,766	$ 1,361,599
Accumulated other comprehensive loss	(55,316)	(31,346)
Accumulated earnings	122,406	29,331
Total HSS shareholders' equity	1,483,856	1,359,584
Noncontrolling interests	10,699	10,013
Total shareholders' equity	1,494,555	1,369,597
Total liabilities and shareholders' equity	$ 4,737,611	$ 4,664,584
Preferred Stock
Shareholders' Equity:
Preferred Stock, $0.001 par value; 1,000,000 shares authorized: Hughes Retail Preferred Tracking Stock, $0.001 par value; 300 shares authorized, 81.128 shares issued and outstanding at each of September 30, 2015 and December 31, 2014
Hughes Retail Preferred Tracking Stock
Shareholders' Equity:
Preferred Stock, $0.001 par value; 1,000,000 shares authorized: Hughes Retail Preferred Tracking Stock, $0.001 par value; 300 shares authorized, 81.128 shares issued and outstanding at each of September 30, 2015 and December 31, 2014

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 12,355	$ 11,950
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars)	0	0
Property and equipment, accumulated depreciation (in dollars)	$ 2,060,214	$ 2,053,636
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	1,000	1,000
Common stock, shares outstanding (in shares)	1,000	1,000
Preferred Stock
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized (in shares)	1,000,000	1,000,000
Hughes Retail Preferred Tracking Stock
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized (in shares)	300	300
Preferred Stock, shares issued (in shares)	81.128	81.128
Preferred Stock, shares outstanding (in shares)	81.128	81.128

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Services and other revenue - other	$ 276,307	$ 273,361	$ 817,307	$ 803,843
Services and other revenue - DISH Network	132,013	129,389	394,937	357,494
Equipment revenue - other	52,605	56,580	154,505	152,078
Equipment revenue - DISH Network	3,106	6,350	6,992	24,249
Total revenue	464,031	465,680	1,373,741	1,337,664
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	131,861	134,884	394,327	400,199
Cost of sales - equipment (exclusive of depreciation and amortization)	48,543	54,693	142,537	154,890
Selling, general and administrative expenses	68,303	63,790	203,871	191,589
Research and development expenses	6,809	5,168	18,876	14,314
Depreciation and amortization	109,158	115,828	324,797	339,831
Total costs and expenses	364,674	374,363	1,084,408	1,100,823
Operating income	99,357	91,317	289,333	236,841
Other Income (Expense):
Interest income	1,135	836	3,391	2,411
Interest expense, net of amounts capitalized	(40,907)	(47,468)	(129,559)	(144,810)
Loss from partial redemption of debt			(5,044)
Other-than-temporary impairment loss on available-for-sale securities	(1,201)		(5,850)
Equity in earnings of unconsolidated affiliate	2,305	1,725	4,943	3,739
Other, net	(1,290)	(247)	(4,613)	229
Total other expense, net	(39,958)	(45,154)	(136,732)	(138,431)
Income before income taxes	59,399	46,163	152,601	98,410
Income tax provision, net	(22,167)	(9,436)	(58,520)	(22,060)
Net income	37,232	36,727	94,081	76,350
Less: Net income attributable to noncontrolling interests	209	376	1,006	1,103
Net income attributable to HSS	37,023	36,351	93,075	75,247
Comprehensive Income:
Net income	37,232	36,727	94,081	76,350
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(17,688)	(5,644)	(26,935)	(2,293)
Unrealized gains on available-for-sale securities and other	(6,507)	(1,976)	(3,194)	(2,803)
Recognition of other-than-temporary loss on available-for-sale securities in net income	1,201		5,850
Recognition of realized gains (losses) on available-for-sale securities included in net income		52	(11)	42
Total other comprehensive loss, net of tax	(22,994)	(7,568)	(24,290)	(5,054)
Comprehensive income	14,238	29,159	69,791	71,296
Less: Comprehensive income (loss) attributable to noncontrolling interests	(111)	170	686	1,146
Comprehensive income attributable to HSS	$ 14,349	$ 28,989	$ 69,105	$ 70,150

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Cash Flows from Operating Activities:
Net income	$ 94,081	$ 76,350
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	324,797	339,831
Equity in earnings of unconsolidated affiliate	(4,943)	(3,739)
Amortization of debt issuance costs	4,533	4,319
Loss from partial redemption of debt	5,044
Losses (gains) and other-than-temporary impairment on marketable investment securities, net	11,384	42
Stock-based compensation	3,893	1,944
Deferred tax provision	55,597	13,331
Changes in current assets and current liabilities, net	(49,051)	100,924
Changes in noncurrent assets and noncurrent liabilities, net	4,623	(7,041)
Other, net	(3,150)	3,840
Net cash flows from operating activities	446,808	529,801
Cash Flows from Investing Activities:
Purchases of marketable investment securities	(132,741)	(269,215)
Sales and maturities of marketable investment securities	197,899	130,997
Purchases of property and equipment	(292,347)	(166,002)
Expenditures for externally marketed software	(16,905)	(17,401)
Changes in restricted cash and cash equivalents	(313)	(2,688)
Other, net	(9)	(130)
Net cash flows from investing activities	(244,416)	(324,439)
Cash Flows from Financing Activities:
Repayment of 6 1/2% Senior Notes Due 2019 and related premium	(113,300)
Repayment of other long-term debt and capital lease obligations	(31,578)	(49,904)
Net proceeds from issuance of Hughes Retail Preferred Tracking Stock (Note 2)		10,601
Advances from affiliates	3,699
Other, net	(1,688)	(1,116)
Net cash flows from financing activities	(142,867)	(40,419)
Effect of exchange rates on cash and cash equivalents	(6,980)	(348)
Net increase in cash and cash equivalents	52,545	164,595
Cash and cash equivalents, beginning of period	225,557	163,709
Cash and cash equivalents, end of period	278,102	328,304
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest (including capitalized interest)	102,132	106,100
Capitalized interest	10,047	903
Cash paid for income taxes	3,964	7,608
Satellites and other assets financed under capital lease obligations	401	1,527
Reduction of capital lease obligation for AMC-15 and AMC-16 satellites	4,500
Increase in capital expenditures included in accounts payable, net	3,704	696
Net noncash assets transferred from DISH Network in exchange for HSS Tracking stock (Note 2)		71,048
Net assets transferred from EchoStar related to Tracking Stock Transaction (Note 2)		$ 315,643
Transfer from EchoStar XXI launch contract from EchoStar to HNS	$ 52,250

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Sep. 30, 2015	Jun. 12, 2015	Dec. 31, 2014
6 1/2% Senior Secured Notes due 2019
Interest rate (as a percent)	6.50%	6.50%	6.50%

Organization and Business Activ

Organization and Business Activities	9 Months Ended
	Sep. 30, 2015
Organization and Business Activities
Organization and Business Activities	Note 1. Organization and Business Activities Principal Business Hughes Satellite Systems Corporation (which, together with its subsidiaries, is referred to as “HSS,” the “Company,” “we,” “us” and/or “our”) is a holding company and a direct subsidiary of EchoStar Corporation (“EchoStar”). We are a global provider of satellite operations, video delivery solutions, and broadband satellite technologies and services for home and office, delivering innovative network technologies, managed services, and solutions for enterprises and governments. We currently operate in the following two business segments: · Hughes — which provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and solutions to customers for mobile satellite systems. · EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and occasional-use basis primarily to DISH Network, Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”), a joint venture that EchoStar entered into in 2008, United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, programmers, and private enterprise customers. We were formed as a Colorado corporation in March 2011 to facilitate the acquisition (the “Hughes Acquisition”) of Hughes Communications, Inc. and its subsidiaries (“Hughes Communications”) and related financing transactions. In connection with our formation, EchoStar contributed the assets and liabilities of its satellite services business, including its principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C., to us. In addition, as a result of the Satellite and Tracking Stock Transaction described in Note 2 below, DISH Network owns shares of our preferred tracking stock representing a 28.11% economic interest in the residential retail satellite broadband business of our Hughes segment.

Hughes Retail Preferred Trackin

Hughes Retail Preferred Tracking Stock	9 Months Ended
	Sep. 30, 2015
Hughes Retail Preferred Tracking Stock
Hughes Retail Preferred Tracking Stock	Note 2. Hughes Retail Preferred Tracking Stock Satellite and Tracking Stock Transaction On February 20, 2014, HSS and EchoStar entered into agreements with certain subsidiaries of DISH Network pursuant to which, effective March 1, 2014, (i) EchoStar issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “EchoStar Tracking Stock”) and HSS issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “HSS Tracking Stock” and together with the EchoStar Tracking Stock, the “Tracking Stock”) to DISH Network in exchange for five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI, and EchoStar XIV), including the assumption of related in-orbit incentive obligations, and $11.4 million in cash and (ii) DISH Network began receiving certain satellite services on these five satellites from us (the “Satellite and Tracking Stock Transaction”). Immediately upon receipt of net assets (consisting of two of the five satellites and related in-orbit incentive obligations) from DISH Network in exchange for EchoStar Tracking Stock, EchoStar transferred such net assets to us. The Tracking Stock tracks the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group” or “HRG”). The Satellite and Tracking Stock Transaction is consistent with the long-term strategy of the Company to increase the scale of its satellite services business, which provides high-margin revenues, while continuing to benefit from the growth of the satellite broadband business. As a result of the additional satellites received in the Satellite and Tracking Stock Transaction, HSS has been able to increase short-term cash flow that it believes will better position it to achieve its strategic objectives. HSS has adopted a policy statement (the “Policy Statement”) setting forth management and allocation policies for purposes of attributing all of the business and operations of HSS to either the Hughes Retail Group or the “HSSC Group,” which is defined as all other operations of HSS, including all existing and future businesses, other than the Hughes Retail Group. Among other things, the Policy Statement governs how assets, liabilities, revenue and expenses are attributed or allocated between HRG and the HSSC Group. Such attributions and allocations generally do not affect the amounts reported in our consolidated financial statements, except for the attribution of shareholders’ equity and net income or loss between the holders of Tracking Stock and common stock. The Policy Statement also does not significantly affect the way that management assesses operating performance and allocates resources within our Hughes segment. We provide unaudited attributed financial information for HRG and the HSSC Group in an exhibit to our periodic reports on Form 10-Q and Form 10-K. Set forth below is information about certain terms of the Tracking Stock and the initial recording of the Satellite and Tracking Stock Transaction in our consolidated financial statements. Description of the Tracking Stock Tracking stock is a type of capital stock that the issuing company intends to reflect or “track” the economic performance of a particular business component within the company, rather than reflect the economic performance of the company as a whole. The Tracking Stock is intended to track the economic performance of the Hughes Retail Group. The shares of the Tracking Stock issued to DISH Network represent an aggregate 80.0% economic interest in the Hughes Retail Group (the shares issued as HSS Tracking Stock represent a 28.11% economic interest in the Hughes Retail Group and the shares issued as EchoStar Tracking Stock represent a 51.89% economic interest in the Hughes Retail Group). In addition to the remaining 20.0% economic interest in the Hughes Retail Group, HSS retains all economic interest in the wholesale satellite broadband business and other businesses of HSS. The 80.0% economic interest was determined at the time of issuance based on the estimated fair value of the consideration received from DISH Network in exchange for the Tracking Stock, consisting of the five satellites and $11.4 million in cash, relative to the estimated fair value of the Hughes Retail Group. The allocation of economic interest represented by the Tracking Stock of 51.89% issued as EchoStar Tracking Stock and 28.11% issued as HSS Tracking Stock reflected the relative assignment to HSS Tracking Stock and EchoStar Tracking Stock of the aggregate increase in equity resulting from DISH Network’s contribution of the satellites and cash. The tracking stock structure and the allocation of the tracking stock economic interest between EchoStar and HSS was advantageous to EchoStar from an economic and tax perspective by allowing the Company to increase cash flow by using the value of the Hughes Retail Group to purchase the satellites from DISH Network. While DISH Network, as the holder of the Tracking Stock, holds an aggregate 80.0% economic interest in the Hughes Retail Group, the Hughes Retail Group is not a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of the Tracking Stock have no direct claim to the assets of the Hughes Retail Group; rather, holders of the Tracking Stock are stockholders of its respective issuer (EchoStar or HSS) and are subject to all risks and liabilities of the issuer. The HSS Tracking Stock is a series of HSS preferred stock consisting of 300 authorized shares with a par value of $0.001 per share, of which 81.128 shares were issued to DISH Network on March 1, 2014. The EchoStar Tracking Stock is a series of EchoStar preferred stock consisting of 13,000,000 authorized shares with a par value of $0.001 per share, of which 6,290,499 shares were issued to DISH Network on March 1, 2014. Following the issuance of the shares of the EchoStar Tracking Stock and the HSS Tracking Stock, DISH Network held 6.5% and 7.5% of the aggregate number of outstanding shares of EchoStar and HSS capital stock, respectively. Holders of shares of the Tracking Stock vote with holders of the outstanding shares of common stock of its respective issuer, as a single class, with respect to any and all matters presented to stockholders for their action or consideration. Each share of the Tracking Stock is entitled to one-tenth (1/10th) of one vote. In the event of a liquidation of HSS, holders of shares of HSS common stock and HSS Tracking Stock are entitled to receive their respective proportionate interests in the net assets of HSS, if any, remaining for distribution upon liquidation, pro rata based upon the aggregate market value of outstanding shares of HSS Tracking Stock as compared to the aggregate market value of outstanding shares of HSS common stock. Market values of HSS Tracking Stock and HSS common stock are to be determined by an independent appraisal to the extent such shares are not then listed or quoted on any U.S. national or regional securities exchange or quotation system. Similarly, in the event of a liquidation of EchoStar, holders of shares of EchoStar Class A common stock, EchoStar Class B common stock and the EchoStar Tracking Stock are entitled to receive their respective proportionate interests in the net assets of EchoStar, if any, remaining for distribution upon liquidation, pro rata based upon the aggregate market value of outstanding shares of the EchoStar Tracking Stock (determined by an independent appraisal to the extent such shares are not then listed or quoted on any U.S. national or regional securities exchange or quotation system) as compared to the aggregate market value of outstanding shares of EchoStar Class A common stock and EchoStar Class B common stock. Should our board of directors, or the board of directors of EchoStar, make a future determination to pay a dividend on any shares of capital stock, the respective board of directors may, in its sole discretion, declare dividends only on shares of common stock, only on shares of the Tracking Stock or on shares of both the common stock and the Tracking Stock of the respective company. No dividend or other distribution may be paid on any shares of EchoStar Tracking Stock unless a dividend or distribution in an equivalent amount is paid on shares of HSS Tracking Stock and no dividend or other distribution may be paid on any shares of HSS Tracking Stock unless a dividend or distribution in an equivalent amount is paid on shares of EchoStar Tracking Stock. EchoStar and HSS may each, at its option, redeem all of the outstanding shares of its Tracking Stock in exchange for shares of common stock in an HRG Holding Company (as defined below), which EchoStar is required to establish pursuant to the Investor Rights Agreement discussed below. Investor Rights Agreement In connection with the Satellite and Tracking Stock Transaction, EchoStar, HSS and DISH Network entered into an agreement (the “Investor Rights Agreement”) setting forth certain rights and obligations of the parties with respect to the Tracking Stock. Among other provisions, the Investor Rights Agreement provides: (i) certain information and consultation rights for DISH Network; (ii) certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfer of the Tracking Stock until March 1, 2015), with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to us in connection with a change of control of DISH Network and a right to require us to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions; (iii) certain protective covenants afforded to holders of the Tracking Stock; and (iv) a requirement for EchoStar to establish a holding company subsidiary (an “HRG Holding Company”) that is directly or indirectly wholly-owned by EchoStar and that will hold the Hughes Retail Group. In addition, the Investor Rights Agreement provides that DISH Network may, on or after September 1, 2016, require EchoStar to use its commercially reasonable efforts to register some or all of the outstanding shares of the Tracking Stock under the Securities Act of 1933, as amended, subject to certain terms and conditions (including our right, upon the receipt of a demand for registration, to offer to repurchase all of the Tracking Stock). In connection with any demand for registration, DISH Network may require any outstanding shares of the HSS Tracking Stock to be exchanged for shares of the EchoStar Tracking Stock with an equivalent economic interest in the Hughes Retail Group. In the event that a registration of shares of Tracking Stock is effected, EchoStar is required to use its reasonable best efforts to amend the terms of the Tracking Stock so that the Tracking Stock will be convertible or exchangeable for shares of EchoStar Class A common stock with equivalent market value.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in accordance with GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014. Principles of Consolidation We consolidate all majority owned susidiaries, investments in entities in which we have controlling interest and variable interest entities where we are the primary beneficiary . For entities we control but do not wholly own, we record a noncontrolling interest within shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. We use the equity method to account for investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. All significant intercompany balances and transactions have been eliminated in consolidation. 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 at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to our condensed consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred revenue and deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of awards granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairments, useful lives and methods for depreciation and amortization of long-lived assets, goodwill impairment testing, royalty obligations, and allocations that affect the net income or loss attributable to the Tracking Stock. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Weakened economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We utilize the highest level of inputs available according to the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for each of the nine months ended September 30, 2015 or 2014. As of September 30, 2015 and December 31, 2014, the carrying amounts of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our current marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. Fair values for our publicly traded long-term debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our privately held debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of September 30, 2015 and December 31, 2014, the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $80.3 million and $85.8 million, respectively. We use fair value measurements from time-to-time in connection with impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Research and Development In addition to research and development expenses reported in our condensed consolidated statements of operations and comprehensive income (loss), our cost of sales includes research and development costs funded by customers of approximately $4.8 million and $6.8 million for the three months ended September 30, 2015 and 2014, respectively, and $15.7 million and $19.0 million for the nine months ended September 30, 2015 and 2014, respectively. Capitalized Software Costs Development costs related to software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years. Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “Other noncurrent assets, net” in our condensed consolidated balance sheets. Externally marketed software is generally installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of September 30 , 2015 and December 31, 2014, the net carrying amount of externally marketed software was $ 59.7 million and $ 48.9 million, respectively. We capitalized costs of $5.3 million and $ 5.1 million for the three months ended September 30, 2015 and 2014, respectively, and costs of $17.0 million and $ 17.6 million for the nine months ended September 30, 2015 and 2014, respectively, related to the development of externally marketed software. We recorded amortization expense relating to the development of externally marketed software of $2.2 million and $1.9 million for the three months ended September 30, 2015 and 2014, respectively, and $6.1 million and $3.6 million for the nine months ended September 30, 2015 and 2014, respectively. The weighted average useful life of our externally marketed software was approximately four years as of September 30, 2015. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued Accounting Standards Update No. 2015-14, which deferred by one year the mandatory effective date of ASU 2014-09. As a result, public entities are required to adopt the new revenue standard in annual periods beginning after December 15, 2017 and in interim periods within those annual periods. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. We have not determined when we will adopt the new revenue standard or selected the transition method that we will apply upon adoption. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends the consolidation guidance for variable interest entities (“VIEs”) and general partners’ investments in limited partnerships and similar entities. ASU 2015-02 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and requires either a retrospective or a modified retrospective approach as of the beginning of the fiscal year of adoption. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements or related disclosures. We do not expect to adopt this standard prior to the effective date. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”). This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. ASU 2015-03 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and requires a retrospective approach to adoption. Early adoption is permitted. Based on our preliminary assessment, upon adoption of this standard, we expect to present unamortized deferred costs in other noncurrent assets with a carrying amount of $32.8 million and $39.1 million as of September 30, 2015 and December 31, 2014, respectively, as a reduction of our long-term debt balances. We do not expect to adopt this standard prior to the effective date.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss) and Related Tax Effects	9 Months Ended
	Sep. 30, 2015
Other Comprehensive Income (Loss) and Related Tax Effects
Other Comprehensive Income (Loss) and Related Tax Effects	Note 4. Other Comprehensive Income (Loss) and Related Tax Effects We have not recognized any tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. We have not recognized any tax effects on unrealized gains or losses on available-for-sale securities because such gains or losses would affect the amount of existing capital loss carryforwards for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes cumulative foreign currency translation losses of $55.8 million and $29.2 million as of September 30, 2015 and December 31, 2014, respectively. Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 were as follows: Affected Line Item in our For the Three Months For the Nine Months Condensed Consolidated Ended September 30, Ended September 30, Accumulated Other Comprehensive Loss Components Statement of Operations 2015 2014 2015 2014 (In thousands) Recognition of realized gains (losses) on available-for-sale securities in net income (1) Other, net $ — $ $ ) $ Recognition of other-than-temporary impairment on available-for-sale securities in net income (2) Other-than-temporary impairment on available-for-sale securities — — Total reclassifications, net of tax and noncontrolling interests $ $ $ $ (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as Other, net on the condensed consolidated statement of operations and comprehensive income (loss). (2) In June 2015 and September 2015, we recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. See Note 5 for further discussion.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2015
Investment Securities
Investment Securities	Note 5. Investment Securities Our marketable investment securities and investments in unconsolidated entities consisted of the following: As of September 30, December 31, 2015 2014 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ $ Strategic equity securities Other Total marketable investment securities—current Investments in unconsolidated entities—noncurrent: Cost method Equity method Total investments in unconsolidated entities—noncurrent Total marketable investment securities and investments in unconsolidated entities $ $ Marketable Investment Securities O ur marketable investment securities portfolio consists of various debt and equity instruments, which generally are classified as available-for-sale. As of September 30, 2015, certain of our equity securities were classified as trading securities in order to reflect our investment strategy for those securities. The value of our investment portfolio depends on the value of such securities and other instruments comprising the portfolio. Corporate Bonds Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Strategic Equity Securities Our strategic investment portfolio consists of investments in shares of common stock of public companies, which are highly speculative and have experienced and continue to experience volatility. As of September 30, 2015 and December 31, 2014, our strategic equity securities included shares of common stock of one of our customers that we received in satisfaction of certain milestone payments that were required to be paid to us under an existing long-term contract. For the three and nine months ended September 30, 2015, “Other-than-temporary impairment loss on available-for-sale securities” included a $1.2 million and $5.9 million other-than-temporary impairment of such common stock in our available-for-sale portfolio, respectively. For the three and nine months ended September 30, 2015, “Other, net” includes $3.9 million and $5.5 million in losses on such common stock in our trading securities portfolio, respectively, which had a fair value of $11.3 million as of September 30, 2015. Other O ur other current marketable investment securities portfolio includes investments in various debt instruments, including U.S. government bonds and variable rate demand notes. Investments in unconsolidated entities- Noncurrent We have several strategic investments in certain non-publicly traded equity securities that are accounted for using either the equity or the cost method of accounting. Our ability to realize value from our strategic investments in companies that are not publicly traded depends on the success of those companies’ businesses and their ability to obtain sufficient capital to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Unrealized Gains (Losses) on Marketable Investment Securities The components of our available-for-sale investments are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of September 30, 2015 Debt securities: Corporate bonds $ $ $ ) $ Other — ) Equity securities - strategic — Total marketable investment securities $ $ $ ) $ As of December 31, 2014 Debt securities: Corporate bonds $ $ $ ) $ Other — Equity security - strategic ) Total marketable investment securities $ $ $ ) $ As of September 30, 2015, restricted and non-restricted marketable investment securities included debt securities of $305.0 million with contractual maturities of one year or less and $8.7 million with contractual maturities greater than one year. We may realize proceeds from certain investments prior to their contractual maturity as a result of our ability to sell these securities prior to their contractual maturity. Marketable Investment Securities in a Loss Position The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. We do not intend to sell these securities before they recover or mature, and it is more likely than not that we will hold these securities until they recover or mature. We believe that changes in the estimated fair values of these securities are primarily related to temporary market conditions as of September 30, 2015. As of September 30, 2015 December 31, 2014 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Less than 12 months $ $ ) $ $ ) 12 months or more ) — — Total $ $ ) $ $ ) Sales of Marketable Investment Securities We recognized minimal gains from the sales of our available-for-sale marketable investment securities for each of the three and nine months ended September 30, 2015 and 2014. We recognized minimal losses from the sales of our available-for-sale marketable investment securities for each of the three and nine months ended September 30, 2015 and $0.1 million for each of the three and nine months ended September 30, 2014, respectively. Proceeds from sales of our available-for-sale marketable investment securities totaled $4.0 million and zero for the three months ended September 30, 2015 and 2014, respectively, and $14.6 million and $0.1 million for the nine months ended September 30, 2015 and 2014, respectively. Fair Value Measurements Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of September 30, 2015 and December 31, 2014, we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of September 30, 2015 December 31, 2014 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ $ $ $ $ $ Debt securities: Corporate bonds $ $ — $ $ $ — $ Other — — Equity securities - strategic — — Total marketable investment securities $ $ $ $ $ $

Trade Accounts Receivable

Trade Accounts Receivable	9 Months Ended
	Sep. 30, 2015
Trade Accounts Receivable
Trade Accounts Receivable	Note 6. Trade Accounts Receivable Our trade accounts receivable consisted of the following: As of September 30, December 31, 2015 2014 (In thousands) Trade accounts receivable $ $ Contracts in process, net Total trade accounts receivable Allowance for doubtful accounts ) ) Trade accounts receivable - DISH Network Total trade accounts receivable, net $ $ As of September 30, 2015 and December 31, 2014, progress billings offset against contracts in process amounted to $0.8 million and $2.5 million, respectively.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2015
Inventory
Inventory	Note 7. Inventory Our inventory consisted of the following: As of September 30, December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in process Total inventory $ $

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property and Equipment
Property and Equipment	Note 8. Property and Equipment Property and equipment consisted of the following: Depreciable As of Life September 30, December 31, (In Years) 2015 2014 (In thousands) Land — $ $ Buildings and improvements 1 - 30 Furniture, fixtures, equipment and other 1 - 12 Customer rental equipment 2 - 4 Satellites - owned 2 - 15 Satellites acquired under capital leases 10 - 15 Construction in progress — Total property and equipment Accumulated depreciation ) ) Property and equipment, net $ $ Construction in progress consisted of the following: As of September 30, December 31, 2015 2014 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ $ Uplinking equipment Other Construction in progress $ $ Depreciation expense associated with our property and equipment consisted of the following: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) Satellites $ $ $ $ Furniture, fixtures, equipment and other Customer rental equipment Buildings and improvements Total depreciation expense $ $ $ $ Satellites As of September 30, 2015, we utilized 17 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. Two of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over the terms of the satellite service agreements. Two of our satellites are accounted for as operating leases and are not included in property and equipment. Recent Developments AMC-15 and AMC-16. In August 2014, in connection with the execution of agreements related to the EchoStar 105/SES-11 satellite, we entered into amendments that extend the terms of our existing agreements with SES Americom Colorado, Inc. for satellite services on the AMC-15 and AMC-16 satellites. As amended, the term of our agreement for satellite services on certain transponders on the AMC-15 satellite was extended from December 2014 through the in-service date of the EchoStar 105/SES-11 satellite. The amended agreement for the AMC-16 satellite services extends the term for the satellite’s entire communications capacity, subject to available power, for one year following expiration of the initial term in February 2015. The extended terms of these agreements are being accounted for as operating leases. Satellite Anomalies Certain of our satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful lives and/or the commercial operation of the satellites. There can be no assurance that existing and future anomalies will not further impact the remaining useful life and/or the commercial operation of any of the satellites in our fleet. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail. We generally do not carry in-orbit insurance on our satellites; therefore, we generally bear the risk of any uninsured in-orbit failures. Pursuant to the terms of the agreements governing certain portions of our indebtedness, we are required, subject to certain limitations on coverage, to maintain launch and in-orbit insurance for our SPACEWAY 3, EchoStar XVI, and EchoStar XVII satellites. We have previously disclosed in our financial statements as of and for the year ended December 31, 2014 anomalies in prior years that affect our in-service owned and leased satellites, including the EchoStar III, EchoStar VI, EchoStar VIII, EchoStar XII, and AMC-16 satellites. In August 2015, SPACEWAY 3 experienced an anomaly causing one of the two on-board computers used to control the satellite payload to temporarily go offline, causing an interruption of service. The issue has since been resolved and the satellite is functioning normally. This anomaly did not affect the long-term commercial operations of the satellite or its estimated useful life. We are not aware of any additional anomalies that have occurred with respect to any of our owned or leased satellites in 2015 as of the date of this report that have materially affected the commercial operation of these satellites or their useful life. The EchoStar III and EchoStar VI satellites are fully depreciated and the EchoStar III satellite is being used as an in-orbit spare; accordingly, the prior anomalies affecting these satellites have not had a significant effect on our operating results and cash flows. The EchoStar XII satellite, as previously disclosed in our Form 10-K, has experienced several anomalies, which have resulted in a loss of electrical power. Those anomalies have not had a significant adverse impact on service under the related satellite services agreement with DISH Network for the EchoStar XII satellite; however, the anomalies have increased the risk of future transponder failures that could result in reductions in our revenue. Satellite Impairments We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Certain of the anomalies previously disclosed, may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, certain of these anomalies are not necessarily considered to be significant events that would require a test of recoverability.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	Note 9. Goodwill and Other Intangible Assets Goodwill The excess of the cost of an acquired business over the fair values of net tangible and identifiable intangible assets at the time of the acquisition is recorded as goodwill. Goodwill is assigned to our reporting units of our operating segments and is subject to impairment testing annually, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. As of September 30, 2015 and December 31, 2014, all of our goodwill was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Based on our qualitative assessment of impairment of such goodwill in the second quarter of 2015, we determined that it was not more likely than not that the fair values of the Hughes segment reporting units were less than the corresponding carrying amounts. Other Intangible Assets Our other intangible assets, which are subject to amortization, consisted of the following: Weighted As of Average September 30, 2015 December 31, 2014 Useful life Accumulated Carrying Accumulated Carrying (in Years) Cost Amortization Amount Cost Amortization Amount (In thousands) Customer relationships 8 $ $ ) $ $ $ ) $ Contract-based 4 ) — ) Technology-based 6 ) ) Trademark portfolio 20 ) ) Favorable leases 4 ) — ) Total other intangible assets $ $ ) $ $ $ ) $ Customer relationships are amortized predominantly in relation to the expected contribution of cash flow to the business over the life of the intangible asset. Other intangible assets are amortized on a straight-line basis over the periods the assets are expected to contribute to our cash flows. Amortization expense, including amortization of externally marketed capitalized software, was $11.9 million and $13.0 million for the three months ended September 30, 2015 and 2014, respectively, and $38.8 million and $44.4 million for the nine months ended September 30, 2015 and 2014, respectively.

Debt and Capital Lease Obligati

Debt and Capital Lease Obligations	9 Months Ended
	Sep. 30, 2015
Debt and Capital Lease Obligations
Debt and Capital Lease Obligations	Note 10. Debt and Capital Lease Obligations The following table summarizes the carrying amounts and fair values of our debt: As of September 30, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value (In thousands) 6 1/2% Senior Secured Notes due 2019 $ $ $ $ 7 5/8% Senior Notes due 2021 Other Subtotal $ $ Capital lease obligations Total debt and capital lease obligations Less: Current portion ) ) Long-term portion of debt and capital lease obligations $ $ On June 12, 2015, we redeemed $110.0 million of our 6 1/2% Senior Secured Notes due 2019 (the “Senior Secured Notes”) at a redemption price equal to 103.0% of the principal amount plus related accrued interest. As a result, we recorded a $5.0 million loss consisting of the $3.3 million redemption premium and $1.7 million representing the write-off of related deferred financing costs.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income Taxes	Note 11. Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant volatility due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, income and losses from investments, changes in tax laws and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Income tax expense was approximately $58.5 million and $22.1 million for the nine months ended September 30, 2015 and 2014, respectively. Our effective income tax rate was 38.3% and 22.4% for the nine months ended September 30, 2015 and 2014, respectively. The variation in our effective tax rate from the U.S. federal statutory rate for the nine months ended September 30, 2014 was primarily due to research and experimentation tax credits and lower state effective tax rate.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	Note 12. Commitments and Contingencies Commitments As of September 30, 2015, our satellite-related obligations were approximately $993.4 million. Our satellite-related obligations primarily include payments pursuant to agreements for the construction of the EchoStar 105/SES-11 and EchoStar XXI satellites, payments pursuant to launch services contracts, executory costs for our capital lease satellites, costs under satellite service agreements and in-orbit incentives relating to certain satellites, as well as commitments for long-term satellite operating leases and satellite service arrangements. Contingencies Separation Agreement In 2008, DISH Network Corporation contributed its digital set-top box business and certain infrastructure and other assets, including certain of its satellites, uplink and satellite transmission assets, real estate, and other assets and related liabilities to EchoStar (the “Spin-off”). In connection with the Spin-off, EchoStar entered into a separation agreement with DISH Network that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated in management’s opinion; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties are involved (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed suit against two of our subsidiaries, Hughes Communications, Inc. and Hughes Network Systems, LLC (“HNS”), as well as against DISH Network, DISH Network L.L.C., and dishNET Satellite Broadband L.L.C., in the United States District Court for the Central District of California alleging infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781; and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech asserted that encoding data as specified by the DVB-S2 standard infringes each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claims that the Hopper TM set-top box that we design and sell to DISH Network, as well as certain of our Hughes segment’s satellite broadband products and services, infringe the asserted patents by implementing the DVB-S2 standard. On September 26, 2014, Caltech requested leave to amend its Amended Complaint to add EchoStar Corporation and EchoStar Technologies L.L.C. as defendants, as well as to allege that a number of additional set-top boxes infringe the asserted patents. On November 7, 2014, the Court rejected that request. Additionally, on November 4, 2014, the Court ruled that the patent claims at issue in the suit are directed to patentable subject matter. On February 17, 2015, Caltech filed a second complaint in the same district against the same defendants alleging that HNS’ Gen4 HT1000 and HT1100 products infringe the same patents asserted in the first case. We answered that second complaint on March 24, 2015. The trial for the first case which was scheduled to commence on April 20, 2015, was vacated by the Court on March 16, 2015 and a new trial date has yet to be set. On May 5, 2015, the Court granted summary judgment for us on a number of issues, finding that Caltech’s damages theory improperly apportioned alleged damages, that allegations of infringement against DISH Network, DISH Network L.L.C., and dishNET Satellite Broadband L.L.C. should be dismissed from the case, and affirming that Caltech could not assert infringement under the doctrine of equivalents. The Court also granted motions by Caltech seeking findings that certain of its patents were not indefinite or subject to equitable estoppel. The Court otherwise denied motions for summary judgment, including a motion by Caltech seeking summary judgment of infringement. On May 14, 2015, the judge assigned to the case passed away. A new judge has not yet been formally assigned. The parties are discussing resolving these cases without further litigation. There can be no assurance that a settlement agreement will be reached. If a settlement agreement is not reached, we cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages and we intend to vigorously defend these cases. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to our consumers. Elbit On January 23, 2015, Elbit Systems Land and C4I LTD and Elbit Systems of America Ltd. (together referred to as “Elbit”) filed a complaint against our subsidiary HNS, as well as against Black Elk Energy Offshore Operations, LLC, Bluetide Communications, Inc. and Helm Hotels Group, in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent Nos. 6,240,073 (the “073 patent”) and 7,245,874 (“874 patent”). The 073 patent is entitled “Reverse Link for a Satellite Communication Network” and the 874 patent is entitled “Infrastructure for Telephony Network.” Elbit alleges that the 073 patent is infringed by broadband satellite systems that practice the Internet Protocol Over Satellite standard. Elbit alleges that the 874 patent is infringed by the manufacture and sale of broadband satellite systems that provide cellular backhaul service via connections to E1 or T1 interfaces at cellular backhaul base stations. On March 16, 2015, the defendants filed motions to dismiss portions of Elbit’s complaint. On April 2, 2015, Elbit responded to those motions to dismiss and further filed an amended complaint removing Helm Hotels Group as a defendant, but making similar allegations against a new defendant, Country Home Investments, Inc. On April 20, 2015, the defendants filed motions to dismiss portions of Elbit’s amended complaint. 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. Kappa Digital, LLC On June 1, 2015, Kappa Digital LLC (“Kappa”) filed suit against our subsidiary HNS in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent No. 6,349,135, entitled “Method and System for a Wireless Digital Message Service.” Kappa generally alleges that HNS’ “HughesNet Gen 4 residential internet service/systems” and “HughesNet Business Broadband service/systems” infringe its asserted patent. Kappa is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could cause us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. Phoenix Licensing, L.L.C./LPL Licensing, L.L.C. On July 30, 2015, Phoenix Licensing, L.L.C. and LPL Licensing, L.L.C. (together referred to as “Phoenix”) filed a complaint against our subsidiary HNS in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent Nos. 5,987,434, entitled “Apparatus and Method for Transacting Marketing and Sales of Financial Products”; 7,890,366, entitled “Personalized Communication Documents, System and Method for Preparing Same”; 8,352,317, entitled “System for Facilitating Production of Variable Offer Communications”; 8,234,184, entitled “Automated Reply Generation Direct Marketing System”; 6,999,938, entitled “Automated Reply Generation Direct Marketing System”; 8,738,435, entitled “Method and Apparatus for Presenting Personalized Content Relating to Offered Products and Services”; and 7,860,744, entitled “System and Method for Automatically Providing Personalized Notices Concerning Financial Products and/or Services.” Phoenix alleged that HNS infringes the asserted patents by making and using products and services that generate customized marketing materials. Phoenix is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein against us. On October 16, 2015, Phoenix moved to dismiss the litigation against us without prejudice pursuant to a settlement agreement, and on November 3, 2015, the action was dismissed accordingly. Realtime Data LLC On May 8, 2015, Realtime Data LLC (“Realtime”) filed suit against EchoStar Corporation and our subsidiary HNS in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent Nos. 7,378,992, entitled “Content Independent Data Compression Method and System”; 7,415,530, entitled “System and Methods for Accelerated Data Storage and Retrieval”; and 8,643,513, entitled “Data Compression System and Methods.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe any of the asserted patents, we may be subject to substantial damages, which may include supplemental damages, and/or an injunction that could cause 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. TQ Beta LLC On June 30, 2014, TQ Beta LLC (“TQ Beta”) filed suit against DISH Network, DISH DBS Corporation, DISH Network L.L.C., as well as HSS, EchoStar Corporation, EchoStar Technologies, L.L.C, and Sling Media, Inc., a subsidiary of EchoStar, in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,203,456 (the “456 patent”), which is entitled “Method and Apparatus for Time and Space Domain Shifting of Broadcast Signals.” TQ Beta alleges that the Hopper, Hopper with Sling, ViP 722 and ViP 722k DVR devices, as well as the DISH Anywhere service and DISH Anywhere mobile application, infringe the 456 patent , but has not specified the amount of damages that it seeks . TQ Beta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. During August 2015, EchoStar Corporation and DISH Network L.L.C. filed petitions before the United States Patent and Trademark Office challenging the validity of the 456 patent. Trial is scheduled to commence on December 12, 2016. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Other In addition to the above actions, we are subject to various other legal proceedings and claims which arise in the ordinary course of our business. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial position, results of operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2015
Segment Reporting
Segment Reporting	Note 13. Segment Reporting Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker (“CODM”), who for HSS, is the Company’s Chief Executive Officer. Under this definition, we operate the following two primary business segments: · Hughes — which provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and solutions to customers for mobile satellite systems. · EchoStar Satellite Services — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and occasional-use basis primarily to DISH Network, Dish Mexico, U.S. government service providers, internet service providers, broadcast news organizations, programmers, and private enterprise customers. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA. Our segment operating results do not include real estate and other activities, costs incurred in certain satellite development programs and other business development activities, expenses of various corporate departments, and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt. These activities are accounted for in the “All Other and Eliminations” column in the table below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The Hughes Retail Group is included in our Hughes segment and our CODM reviews separate HRG financial information only to the extent such information is included in our periodic filings with the SEC. Therefore, we do not consider HRG to be a separate operating segment. Transactions between segments were not significant for the three and nine months ended September 30, 2015 and 2014. The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments. EchoStar All Satellite Other and Consolidated Hughes Services Eliminations Total (In thousands) For the Three Months Ended September 30, 2015 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $ For the Three Months Ended September 30, 2014 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $ For the Nine Months Ended September 30, 2015 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ ) $ For the Nine Months Ended September 30, 2014 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $ The following table reconciles total consolidated EBITDA to reported “Income before income taxes” in our condensed consolidated statements of operations and comprehensive income (loss): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) EBITDA $ $ $ $ Interest income and expense, net ) ) ) ) Depreciation and amortization ) ) ) ) Net income attributable to noncontrolling interests Income before income taxes $ $ $ $

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions
Related Party Transactions	Note 14. Related Party Transactions EchoStar We and EchoStar have agreed that we shall have the right, but not the obligation, to receive from EchoStar certain corporate services, including among other things: treasury, tax, accounting and reporting, risk management, legal, internal audit, human resources, and information technology. In addition, we occupy certain office space in buildings owned by EchoStar and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy. These services are provided at cost. We may terminate a particular service we receive from EchoStar for any reason upon at least 30 days’ notice. We recorded expenses for services received from EchoStar of $4.5 million and $3.1 million for the three months ended September 30, 2015 and 2014, respectively, and $12.7 million and $9.3 million for the nine months ended September 30, 2015 and 2014, respectively. EchoStar XXI Launch Facilitation and Operational Control Agreement. To facilitate compliance with certain requirements of the UK Space Agency with respect to the development of EchoStar’s mobile satellite services business in Europe, our subsidiary, Hughes Network Systems, Ltd. (“HNS Ltd.”) and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in June 2015 to transfer to HNS Ltd., EOC’s launch service contract for the EchoStar XXI satellite and to grant HNS Ltd. certain rights to control the in-orbit operations of the satellite. EOC retained ownership of the EchoStar XXI satellite, which is currently under construction and scheduled to be launched in 2016. We recorded a $52.3 million addition to “Other noncurrent assets, net” and a corresponding increase in “Additional paid-in capital” in our condensed consolidated balance sheet to reflect EOC’s cumulative payments under the launch service contract as of June 30, 2015. EOC also agreed to make future payments to HNS Ltd. totaling $1.9 million plus the remaining amounts that HNS Ltd. is required to pay under the launch service contract. Those payments will be recorded as increases in our “Additional paid-in capital.” HNS Ltd.’s future payments under the launch service contract are included in our disclosure of satellite-related obligations in Note 12. DISH Network Following the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies. However, pursuant to the Satellite and Tracking Stock Transaction, described in Note 2 and below, DISH Network owns Hughes Retail Preferred Tracking Stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business. In addition, a substantial majority of the voting power of the shares of EchoStar and DISH Network is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. In connection with and following the Spin-off, EchoStar and DISH Network have entered into certain agreements pursuant to which we and EchoStar obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us and EchoStar; and we and DISH Network have indemnified each other against certain liabilities arising from our respective businesses. We and/or EchoStar also may enter into additional agreements with DISH Network in the future. Generally, the amounts DISH Network pays for products and services provided under the agreements are based on our cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. “Services and other revenue — DISH Network” Satellite Services Provided to DISH Network. Since the Spin-off, we have entered into certain satellite service agreements pursuant to which DISH Network receives satellite services on certain satellites owned or leased by us. The fees for the services provided under these satellite service agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite, and the length of the service arrangements. The terms of each service arrangement is set forth below: EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction discussed in Note 2, on March 1, 2014, we began providing certain satellite services to DISH Network on the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. The term of each satellite services agreement generally terminates upon the earlier of: (i) the end of life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. DISH Network generally has the option to renew each satellite service agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. DISH Network has elected not to renew the satellite services agreement relative to the EchoStar I satellite . The agreement for the EchoStar I satellite will expire pursuant to its terms effective November 30, 2015. EchoStar VIII. In May 2013, DISH Network began receiving satellite services from us on the EchoStar VIII satellite as an in-orbit spare. Effective March 1, 2014, this satellite services arrangement converted to a month-to-month service agreement. Both parties have the right to terminate this agreement upon 30 days’ notice. The agreement will terminate in accordance with its terms effective in November 2015. EchoStar IX . Effective January 2008, DISH Network began receiving satellite services from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue to receive satellite services from us on the EchoStar IX satellite on a month-to-month basis. EchoStar XII . DISH Network receives satellite services from us on the EchoStar XII satellite. The term of the satellite services agreement terminates upon the earlier of: (i) the end of life of the satellite; (ii) the date the satellite fails or the date the transponder(s) on which the service was being provided under the agreement fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. DISH Network generally has the option to renew the agreement on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. EchoStar XVI. During December 2009, we entered into an initial ten-year transponder service agreement with DISH Network, pursuant to which DISH Network has received satellite services from us on the EchoStar XVI satellite since January 2013. Effective December 21, 2012, we and DISH Network amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. Prior to expiration of the initial term, we, upon certain conditions, and DISH Network have the option to renew for an additional six-year period. If either we or DISH Network exercise our respective six-year renewal options, DISH Network has the option to renew for an additional five-year period prior to expiration of the then-current term. There can be no assurance that any option to renew this agreement will be exercised. Nimiq 5 Agreement. During 2009, we entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). During 2009, we also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with DISH Network, pursuant to which DISH Network receives satellite services from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, DISH Network makes certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service, and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, DISH Network has the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end of life of the Nimiq 5 satellite. Upon in-orbit failure or end of life of the Nimiq 5 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. QuetzSat-1 Agreement. During 2008, we entered into a ten-year satellite service agreement with SES Latin America, which provides, among other things, for the provision by SES Latin America to us of service on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into a transponder service agreement with DISH Network, pursuant to which DISH Network receives satellite services on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched on September 29, 2011 and was placed into service during the fourth quarter of 2011 at the 67.1 degree west longitude orbital location. In the interim, we provided DISH Network with alternate capacity at the 77 degree west longitude orbital location. During the third quarter of 2012, we and DISH Network entered into an agreement pursuant to which we receive certain satellite services from DISH Network on five DBS transponders on the QuetzSat-1 satellite. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. Under the terms of our contractual arrangements with DISH Network, we began to provide service to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue to provide service through the remainder of the service term. Unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite, the initial service term will expire in November 2021. Upon expiration of the initial service term, DISH Network has the option to renew the agreement for the QuetzSat-1 satellite on a year-to-year basis through the end of life of the QuetzSat-1 satellite. Upon an in-orbit failure or end of life of the QuetzSat-1 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew this agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. During May 2012, we entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree west longitude orbital location (the “103 Spectrum Rights”). During June 2013, we and DISH Network entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which DISH Network may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, during May 2012, we also entered into a ten-year service agreement with Ciel pursuant to which we receive certain satellite services from Ciel on the SES-3 satellite at the 103 degree orbital location. During June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network receives certain satellite services from us on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, DISH Network makes certain monthly payments to us through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end of life of the SES-3 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that DISH Network will exercise its option to receive service on a replacement satellite. Satellite and Tracking Stock Transaction. On February 20, 2014, we entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, EchoStar and HSS issued shares of the Tracking Stock to DISH Network in exchange for five satellites owned by DISH Network (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) (including related in-orbit incentive obligations and interest payments of approximately $58.9 million) and approximately $11.4 million in cash; and (ii) on March 1, 2014, DISH Network began receiving certain satellite services on these five satellites from us. See Note 2 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we provide TT&C services to DISH Network and its subsidiaries for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The 2012 TT&C Agreement replaced the TT&C agreement we entered into with DISH Network in connection with the Spin-off. The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. DISH Network is able to terminate the 2012 TT&C Agreement for any reason upon 60 days’ notice. In connection with the Satellite and Tracking Stock Transaction, on February 20, 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 1, 2014, we provide TT&C services for DISH Network’s D-1 satellite. Blockbuster Agreements. On April 26, 2011, DISH Network acquired substantially all of the assets of Blockbuster, Inc. (the “Blockbuster Acquisition”). On June 8, 2011, we completed the Hughes Acquisition. HNS provided certain broadband products and services to Blockbuster, Inc. (with its subsidiaries, “Blockbuster”) pursuant to an agreement that was entered into prior to the Blockbuster Acquisition and the Hughes Acquisition. Subsequent to both the Blockbuster Acquisition and the Hughes Acquisition, Blockbuster entered into a new agreement with HNS pursuant to which Blockbuster could continue to purchase broadband products and services from our Hughes segment. Effective February 1, 2014, all services to all Blockbuster locations, including Blockbuster franchisee locations, terminated in connection with the closing of all of the Blockbuster retail locations. Radio Access Network Agreement. On November 29, 2012, HNS entered into an agreement with DISH Network L.L.C. pursuant to which HNS constructed for DISH Network a ground-based satellite radio access network for a fixed fee. The parties mutually agreed to terminate this agreement in the fourth quarter of 2014. TerreStar Agreement . On March 9, 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar Networks Inc. (“TerreStar”). Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and our completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by DISH Network at any time for convenience. Hughes Broadband Distribution Agreement. Effective October 1, 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level, and, beginning January 1, 2014, based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. On February 20, 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement through March 1, 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement. On March 9, 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America, Inc. (“DBSD North America”). Prior to DISH Network’s acquisition of DBSD North America and our completion of the Hughes Acquisition, DBSD North America and HNS entered into an agreement pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services of DBSD North America’s satellite gateway and associated ground infrastructure. This agreement automatically renewed for a one-year period ending on February 15, 2016, and will renew for one additional one-year period unless terminated by DBSD North America upon at least 30 days’ notice prior to the expiration of any renewal term. “Cost of sales — services and other — DISH Network” Satellite Services Received from DISH Network. Since the Spin-off, EchoStar entered into certain satellite services agreements pursuant to which, it receives certain satellite services from DISH Network on certain satellites owned or leased by DISH Network. The fees for the services provided under these satellite services agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite and the length of the service term. In November 2012, HNS entered into a satellite service agreement pursuant to which HNS received satellite services from DISH Network on the D-1 satellite for research and development. This agreement terminated on June 30, 2014. “General and administrative expenses — DISH Network” Professional Services Agreement. In connection with the Spin-off, EchoStar entered into various agreements with DISH Network including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, EchoStar and DISH Network agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, EchoStar and DISH Network agreed that DISH Network would continue to have the right, but not the obligation, to engage us to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement), receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. A portion of these costs and expenses have been allocated to us in the manner described above under the caption “EchoStar.” The Professional Services Agreement automatically renewed on January 1, 2015 for an additional one-year period and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days’ notice. Real Estate Lease Agreements . We have entered into lease agreements pursuant to which we lease certain real estate from DISH Network. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The license for certain space at 796 East Utah Valley Drive in American Fork, Utah is for a period ending on July 31, 2017, subject to the terms of the underlying lease agreement. This license was terminated during the fourth quarter of 2014. “Other agreements — DISH Network” Tax Sharing Agreement. As a subsidiary of EchoStar, we are an indirect party to EchoStar’s tax sharing agreement with DISH Network that was entered into in connection with the Spin-off. This agreement governs EchoStar and DISH Network’s respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network, and DISH Network will indemnify EchoStar for such taxes. However, DISH Network is not liable for and will not indemnify EchoStar for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar takes or fails to take; or (iii) any action that EchoStar takes that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar will be solely liable for, and will indemnify DISH Network for, any resulting taxes, as well as any losses, claims and expenses. The tax sharing agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the tax sharing agreement, among other things, and in connection with EchoStar’s consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, during the third quarter of 2013, EchoStar and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of EchoStar’s consolidated tax returns. As a result, DISH Network agreed to pay EchoStar an amount that includes $93.1 million of the federal tax benefit they received as a result of our operations. Other Agreements Hughes Systique Corporation (“Hughes Systique”) We contract with Hughes Systique for software development services. In February 2008, HNS agreed to make available to Hughes Systique a term loan facility of up to $1.5 million. Also in 2008, HNS funded an initial $0.5 million to Hughes Systique pursuant to the term loan facility. In 2009, HNS funded the remaining $1.0 million of its $1.5 million commitment under the term loan facility. The loans bear interest at 6%, payable annually, and are convertible into shares of Hughes Systique upon non-payment or an event of default. In May 2014, Hughes and Hughes Systique amended the term loan facility to increase the interest rate from 6% to 8%, payable annually, to reflect current market conditions. The loans, as amended, matured on May 1, 2015. In April 2015, Hughes Systique repaid $0.7 million of the outstanding principal of the loan and the maturity date of the loan was extended to May 1, 2016 on the same terms. In July and September 2015, Hughes Systique repaid $0.6 million of the outstanding principal of the loan. As of September 30, 2015, the principal outstanding amount of the loan was $0.9 million. In addition to our 44.0% ownership in Hughes Systique, Mr. Pradman Kaul, the President of Hughes Communications, Inc. and a member of EchoStar’s board of directors and his brother, who is the CEO and President of Hughes Systique, in the aggregate, owned approximately 25.8%, on an undiluted basis, of Hughes Systique’s outstanding shares as of September 30, 2015. Furthermore, Mr. Pradman Kaul serves on the board of directors of Hughes Systique. Hughes Systique is a variable interest entity and we are considered the primary beneficiary of Hughes Systique due to, among other factors, our ability to direct the activities that most significantly impact the economic performance of Hughes Systique. As a result, we consolidate Hughes Systique’s financial statements in our condensed consolidated financial statements. Dish Mexico EchoStar owns 49.0% of an entity that provides direct-to-home satellite services in Mexico known as Dish Mexico, and we provide certain satellite services to Dish Mexico. We recognized satellite services revenue from Dish Mexico of approximately $5.8 million for each of the three months ended September 30, 2015 and 2014 and $17.5 million for each of the nine months ended September 30, 2015 and 2014. As of September 30, 2015 and December 31, 2014, we had trade accounts receivable from Dish Mexico of approximately $8.4 million and $ 3.9 million, respectively. Deluxe/EchoStar LLC We own 50.0% of Deluxe/EchoStar LLC (“Deluxe”), a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada. We account for our investment in Deluxe using the equity method. We recognized revenue from Deluxe for transponder services and the sale of broadband equipment of approximately $0.7 million and $0.8 million for the three months ended September 30, 2015 and 2014, respectively, and $2.1 million and $2.5 million for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and December 31, 2014, we had trade accounts receivable from Deluxe of approximately $0.1 million and $0.2 million, respectively.

Supplemental Guarantor and Non-

Supplemental Guarantor and Non-Guarantor Financial Information	9 Months Ended
	Sep. 30, 2015
Supplemental Guarantor and Non-Guarantor Financial Information
Supplemental Guarantor and Non-Guarantor Financial Information	Note 15. Supplemental Guarantor and Non-Guarantor Financial Information 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 September 1, 2011. See Note 10 for further information on the Notes. 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. 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. The condensed consolidating financial information presented below should be read in conjunction with our condensed consolidated financial statements and notes thereto included herein. Condensed Consolidating Balance Sheet as of September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Assets Cash and cash equivalents $ $ $ $ — $ Marketable investment securities — — Trade accounts receivable, net — — Trade accounts receivable - DISH Network, net — — Inventory — — Advances to affiliates, net ) Other current assets ) Total current assets ) Restricted cash and cash equivalents — Property and equipment, net — — Regulatory authorizations — — — Goodwill — — — Other intangible assets, net — — — Investment in subsidiaries — ) — Advances to affiliates — ) — Other noncurrent assets, net ) Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ $ $ — $ Trade accounts payable - DISH Network — — — Current portion of long-term debt and capital lease obligations — — Advances from affiliates, net ) Accrued expenses and other ) Total current liabilities ) Long-term debt and capital lease obligations, net of current portion — Advances from affiliates — — ) Other non-current liabilities — ) Total HSS shareholders’ equity (deficit) ) Noncontrolling interests — — — Total liabilities and shareholders’ equity (deficit) $ $ $ $ ) $ Condensed Consolidating Balance Sheet as of December 31, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Assets Cash and cash equivalents $ $ $ $ — $ Marketable investment securities — — Trade accounts receivable, net — — Trade accounts receivable - DISH Network, net — — Advances to affiliates, net — ) Inventory — — Other current assets ) Total current assets ) Restricted cash and cash equivalents — Property and equipment, net — — Regulatory authorizations — — — Goodwill — — — Other intangible assets, net — — — Investment in subsidiaries — ) — Advances to affiliates — ) — Other noncurrent assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ $ $ $ — $ Trade accounts payable - DISH Network — — — Current portion of long-term debt and capital lease obligations — — Advances from affiliates, net ) Accrued expenses and other ) Total current liabilities ) Long-term debt and capital lease obligations, net of current portion — Advances from affiliates — — ) Other non-current liabilities — — Total HSS shareholders’ equity (deficit) ) Noncontrolling interests — — — Total liabilities and shareholders’ equity (deficit) $ $ $ $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue - other — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — ) Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized (gains) losses on available-for-sale securities and other ) ) — ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — ) — ) Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax provision, net ) ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized losses on AFS securities and other ) — ) — ) Recognition of previously unrealized losses on AFS securities included in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue - other — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) ) — ) Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized (gains) losses on available-for-sale securities and other ) ) — ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — — — Recognition of previously unrealized gains on available-for-sale securities included in net income (loss) ) — — — ) Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized losses on AFS securities and other ) — ) — ) Recognition of previously unrealized losses on AFS securities included in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ $ ) $ Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ $ $ $ ) $ Adjustments to reconcile net income (loss) to net cash flows from operating activities Net cash flows from operating activities — Cash Flows from Investing Activities: Purchases of marketable investment securities ) — — — ) Sales and maturities of marketable investment securities — — — Purchases of property and equipment — ) ) — ) Expenditures for externally marketed software — ) — — ) Changes in restricted cash and cash equivalents ) — ) — ) Investment in subsidiary ) ) — — Other, net — — ) ) Net cash flows from investing activities ) ) ) Cash Flows from Financing Activities: Proceeds from capital contribution from parent — ) — Repayment of Senior Secured Notes and related premium ) — — — ) Repayment of other long-term debt and capital lease obligations — ) ) — ) Advances from affiliates — — — Other, net ) ) Net cash flows from financing activities ) ) ) ) Effect of exchange rates on cash and cash equivalents — — ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, at beginning of period — Cash and cash equivalents, at end of period $ $ $ $ — $ Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ $ $ $ ) $ Adjustments to reconcile net income (loss) to net cash flows from operating activities Net cash flows from operating activities — Cash Flows from Investing Activities: Purchases of marketable investment securities ) — — — ) Sales and maturities of marketable investment securities — — — Purchases of property and equipment — ) ) — ) Expenditures for externally marketed software — ) — — ) Changes in restricted cash and cash equivalents ) — ) — ) Investment in subsidiary ) — — — Other, net ) ) — — ) Net cash flows from investing activities ) ) ) ) Cash Flows from Financing Activities: Proceeds from issuance of Hughes Retail Preferred Tracking Stock, net of offering cost — ) Repayment of long-term debt and capital lease obligations — ) ) — ) Other, net — ) — ) Net cash flows from financing activities ) ) ) ) Effect of exchange rates on cash and cash equivalents — — ) — ) Net increase (decrease) in cash and cash equivalents ) — Cash and cash equivalents, at beginning of period — Cash and cash equivalents, at end of period $ $ $ $ — $

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in accordance with GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2014.
Principles of Consolidation	Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling interest and variable interest entities where we are the primary beneficiary . For entities we control but do not wholly own, we record a noncontrolling interest within shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. We use the equity method to account for investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to our condensed consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred revenue and deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of awards granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairments, useful lives and methods for depreciation and amortization of long-lived assets, goodwill impairment testing, royalty obligations, and allocations that affect the net income or loss attributable to the Tracking Stock. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Weakened economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods.
Fair Value Measurements	Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We utilize the highest level of inputs available according to the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for each of the nine months ended September 30, 2015 or 2014. As of September 30, 2015 and December 31, 2014, the carrying amounts of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our current marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. Fair values for our publicly traded long-term debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our privately held debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of September 30, 2015 and December 31, 2014, the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $80.3 million and $85.8 million, respectively. We use fair value measurements from time-to-time in connection with impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy.
Research and Development	Research and Development In addition to research and development expenses reported in our condensed consolidated statements of operations and comprehensive income (loss), our cost of sales includes research and development costs funded by customers of approximately $4.8 million and $6.8 million for the three months ended September 30, 2015 and 2014, respectively, and $15.7 million and $19.0 million for the nine months ended September 30, 2015 and 2014, respectively.
Capitalized Software Costs	Capitalized Software Costs Development costs related to software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years. Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “Other noncurrent assets, net” in our condensed consolidated balance sheets. Externally marketed software is generally installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of September 30 , 2015 and December 31, 2014, the net carrying amount of externally marketed software was $ 59.7 million and $ 48.9 million, respectively. We capitalized costs of $5.3 million and $ 5.1 million for the three months ended September 30, 2015 and 2014, respectively, and costs of $17.0 million and $ 17.6 million for the nine months ended September 30, 2015 and 2014, respectively, related to the development of externally marketed software. We recorded amortization expense relating to the development of externally marketed software of $2.2 million and $1.9 million for the three months ended September 30, 2015 and 2014, respectively, and $6.1 million and $3.6 million for the nine months ended September 30, 2015 and 2014, respectively. The weighted average useful life of our externally marketed software was approximately four years as of September 30, 2015.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued Accounting Standards Update No. 2015-14, which deferred by one year the mandatory effective date of ASU 2014-09. As a result, public entities are required to adopt the new revenue standard in annual periods beginning after December 15, 2017 and in interim periods within those annual periods. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. We have not determined when we will adopt the new revenue standard or selected the transition method that we will apply upon adoption. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends the consolidation guidance for variable interest entities (“VIEs”) and general partners’ investments in limited partnerships and similar entities. ASU 2015-02 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and requires either a retrospective or a modified retrospective approach as of the beginning of the fiscal year of adoption. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements or related disclosures. We do not expect to adopt this standard prior to the effective date. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”). This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. ASU 2015-03 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and requires a retrospective approach to adoption. Early adoption is permitted. Based on our preliminary assessment, upon adoption of this standard, we expect to present unamortized deferred costs in other noncurrent assets with a carrying amount of $32.8 million and $39.1 million as of September 30, 2015 and December 31, 2014, respectively, as a reduction of our long-term debt balances. We do not expect to adopt this standard prior to the effective date.

Other Comprehensive Income (L23

Other Comprehensive Income (Loss) and Related Tax Effects (Tables)	9 Months Ended
	Sep. 30, 2015
Other Comprehensive Income (Loss) and Related Tax Effects
Schedule of reclassifications out of accumulated other comprehensive loss	Affected Line Item in our For the Three Months For the Nine Months Condensed Consolidated Ended September 30, Ended September 30, Accumulated Other Comprehensive Loss Components Statement of Operations 2015 2014 2015 2014 (In thousands) Recognition of realized gains (losses) on available-for-sale securities in net income (1) Other, net $ — $ $ ) $ Recognition of other-than-temporary impairment on available-for-sale securities in net income (2) Other-than-temporary impairment on available-for-sale securities — — Total reclassifications, net of tax and noncontrolling interests $ $ $ $ (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as Other, net on the condensed consolidated statement of operations and comprehensive income (loss). (2) In June 2015 and September 2015, we recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. See Note 5 for further discussion.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2015
Investment Securities
Schedule of marketable investment securities and investments in unconsolidated entities	As of September 30, December 31, 2015 2014 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ $ Strategic equity securities Other Total marketable investment securities—current Investments in unconsolidated entities—noncurrent: Cost method Equity method Total investments in unconsolidated entities—noncurrent Total marketable investment securities and investments in unconsolidated entities $ $
Schedule of unrealized gains (losses) on marketable investment securities	Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of September 30, 2015 Debt securities: Corporate bonds $ $ $ ) $ Other — ) Equity securities - strategic — Total marketable investment securities $ $ $ ) $ As of December 31, 2014 Debt securities: Corporate bonds $ $ $ ) $ Other — Equity security - strategic ) Total marketable investment securities $ $ $ ) $
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value	As of September 30, 2015 December 31, 2014 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Less than 12 months $ $ ) $ $ ) 12 months or more ) — — Total $ $ ) $ $ )
Schedule of fair value measurements	As of September 30, 2015 December 31, 2014 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ $ $ $ $ $ Debt securities: Corporate bonds $ $ — $ $ $ — $ Other — — Equity securities - strategic — — Total marketable investment securities $ $ $ $ $ $

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2015
Trade Accounts Receivable
Schedule of trade accounts receivable	As of September 30, December 31, 2015 2014 (In thousands) Trade accounts receivable $ $ Contracts in process, net Total trade accounts receivable Allowance for doubtful accounts ) ) Trade accounts receivable - DISH Network Total trade accounts receivable, net $ $

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory
Schedule of inventory	As of September 30, December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in process Total inventory $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property and Equipment
Schedule of property and equipment	Depreciable As of Life September 30, December 31, (In Years) 2015 2014 (In thousands) Land — $ $ Buildings and improvements 1 - 30 Furniture, fixtures, equipment and other 1 - 12 Customer rental equipment 2 - 4 Satellites - owned 2 - 15 Satellites acquired under capital leases 10 - 15 Construction in progress — Total property and equipment Accumulated depreciation ) ) Property and equipment, net $ $
Schedule of construction in progress	As of September 30, December 31, 2015 2014 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ $ Uplinking equipment Other Construction in progress $ $
Schedule of depreciation expense	For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) Satellites $ $ $ $ Furniture, fixtures, equipment and other Customer rental equipment Buildings and improvements Total depreciation expense $ $ $ $

Goodwill and Other Intangible28

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Other Intangible Assets
Schedule of other intangible assets subject to amortization	Weighted As of Average September 30, 2015 December 31, 2014 Useful life Accumulated Carrying Accumulated Carrying (in Years) Cost Amortization Amount Cost Amortization Amount (In thousands) Customer relationships 8 $ $ ) $ $ $ ) $ Contract-based 4 ) — ) Technology-based 6 ) ) Trademark portfolio 20 ) ) Favorable leases 4 ) — ) Total other intangible assets $ $ ) $ $ $ ) $

Debt and Capital Lease Obliga29

Debt and Capital Lease Obligations (Tables)	9 Months Ended
	Sep. 30, 2015
Debt and Capital Lease Obligations
Schedule of carrying amounts and fair values of the entity's debt	As of September 30, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value (In thousands) 6 1/2% Senior Secured Notes due 2019 $ $ $ $ 7 5/8% Senior Notes due 2021 Other Subtotal $ $ Capital lease obligations Total debt and capital lease obligations Less: Current portion ) ) Long-term portion of debt and capital lease obligations $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting
Schedule of revenue, EBITDA, and capital expenditures by operating segments	EchoStar All Satellite Other and Consolidated Hughes Services Eliminations Total (In thousands) For the Three Months Ended September 30, 2015 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $ For the Three Months Ended September 30, 2014 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $ For the Nine Months Ended September 30, 2015 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ ) $ For the Nine Months Ended September 30, 2014 External revenue $ $ $ $ Intersegment revenue $ $ $ ) $ — Total revenue $ $ $ ) $ Capital expenditures $ $ $ — $ EBITDA $ $ $ $
Schedule of reconciliation of EBITDA to reported income before income taxes	For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) EBITDA $ $ $ $ Interest income and expense, net ) ) ) ) Depreciation and amortization ) ) ) ) Net income attributable to noncontrolling interests Income before income taxes $ $ $ $

Supplemental Guarantor and No31

Supplemental Guarantor and Non-Guarantor Financial Information (Tables)	9 Months Ended
	Sep. 30, 2015
Supplemental Guarantor and Non-Guarantor Financial Information
Schedule of consolidating balance sheet	Condensed Consolidating Balance Sheet as of September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Assets Cash and cash equivalents $ $ $ $ — $ Marketable investment securities — — Trade accounts receivable, net — — Trade accounts receivable - DISH Network, net — — Inventory — — Advances to affiliates, net ) Other current assets ) Total current assets ) Restricted cash and cash equivalents — Property and equipment, net — — Regulatory authorizations — — — Goodwill — — — Other intangible assets, net — — — Investment in subsidiaries — ) — Advances to affiliates — ) — Other noncurrent assets, net ) Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ $ $ — $ Trade accounts payable - DISH Network — — — Current portion of long-term debt and capital lease obligations — — Advances from affiliates, net ) Accrued expenses and other ) Total current liabilities ) Long-term debt and capital lease obligations, net of current portion — Advances from affiliates — — ) Other non-current liabilities — ) Total HSS shareholders’ equity (deficit) ) Noncontrolling interests — — — Total liabilities and shareholders’ equity (deficit) $ $ $ $ ) $ Condensed Consolidating Balance Sheet as of December 31, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Assets Cash and cash equivalents $ $ $ $ — $ Marketable investment securities — — Trade accounts receivable, net — — Trade accounts receivable - DISH Network, net — — Advances to affiliates, net — ) Inventory — — Other current assets ) Total current assets ) Restricted cash and cash equivalents — Property and equipment, net — — Regulatory authorizations — — — Goodwill — — — Other intangible assets, net — — — Investment in subsidiaries — ) — Advances to affiliates — ) — Other noncurrent assets, net — Total assets $ $ $ $ ) $ Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ $ $ $ — $ Trade accounts payable - DISH Network — — — Current portion of long-term debt and capital lease obligations — — Advances from affiliates, net ) Accrued expenses and other ) Total current liabilities ) Long-term debt and capital lease obligations, net of current portion — Advances from affiliates — — ) Other non-current liabilities — — Total HSS shareholders’ equity (deficit) ) Noncontrolling interests — — — Total liabilities and shareholders’ equity (deficit) $ $ $ $ ) $
Schedule of consolidating statement of operations and comprehensive income (loss)	Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue - other — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — ) Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized (gains) losses on available-for-sale securities and other ) ) — ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — ) — ) Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax provision, net ) ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized losses on AFS securities and other ) — ) — ) Recognition of previously unrealized losses on AFS securities included in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue - other — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) ) — ) Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized (gains) losses on available-for-sale securities and other ) ) — ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — — — Recognition of previously unrealized gains on available-for-sale securities included in net income (loss) ) — — — ) Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ ) $ ) $ Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ $ $ ) $ Services and other revenue - DISH Network — — Equipment revenue — ) Equipment revenue - DISH Network — — — Total revenue — ) Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — ) Cost of sales - equipment (exclusive of depreciation and amortization) — ) Selling, general and administrative expenses — ) Research and development expenses — — — Depreciation and amortization — — Total costs and expenses — ) Operating income — — Other Income (Expense): Interest income ) Interest expense, net of amounts capitalized ) ) ) ) Equity in earnings (losses) of subsidiaries, net — ) — Other, net ) — Total other income (expense), net ) ) ) ) Income (loss) before income taxes ) Income tax benefit (provision), net ) ) — ) Net income (loss) ) Less: Net income attributable to noncontrolling interests — — — Net income (loss) attributable to HSS $ $ $ $ ) $ Comprehensive Income (Loss): Net income (loss) $ $ $ $ ) $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — ) — ) Unrealized losses on AFS securities and other ) — ) — ) Recognition of previously unrealized losses on AFS securities included in net income (loss) — — — Equity in other comprehensive income (loss) of subsidiaries, net ) ) — — Total other comprehensive income (loss), net of tax ) ) ) ) Comprehensive income (loss) ) Less: Comprehensive income attributable to noncontrolling interests — — — Comprehensive income (loss) attributable to HSS $ $ $ $ ) $
Schedule of consolidating statement of cash flows	Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2015 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ $ $ $ ) $ Adjustments to reconcile net income (loss) to net cash flows from operating activities Net cash flows from operating activities — Cash Flows from Investing Activities: Purchases of marketable investment securities ) — — — ) Sales and maturities of marketable investment securities — — — Purchases of property and equipment — ) ) — ) Expenditures for externally marketed software — ) — — ) Changes in restricted cash and cash equivalents ) — ) — ) Investment in subsidiary ) ) — — Other, net — — ) ) Net cash flows from investing activities ) ) ) Cash Flows from Financing Activities: Proceeds from capital contribution from parent — ) — Repayment of Senior Secured Notes and related premium ) — — — ) Repayment of other long-term debt and capital lease obligations — ) ) — ) Advances from affiliates — — — Other, net ) ) Net cash flows from financing activities ) ) ) ) Effect of exchange rates on cash and cash equivalents — — ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, at beginning of period — Cash and cash equivalents, at end of period $ $ $ $ — $ Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2014 (In thousands) Guarantor Non-Guarantor HSS Subsidiaries Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ $ $ $ ) $ Adjustments to reconcile net income (loss) to net cash flows from operating activities Net cash flows from operating activities — Cash Flows from Investing Activities: Purchases of marketable investment securities ) — — — ) Sales and maturities of marketable investment securities — — — Purchases of property and equipment — ) ) — ) Expenditures for externally marketed software — ) — — ) Changes in restricted cash and cash equivalents ) — ) — ) Investment in subsidiary ) — — — Other, net ) ) — — ) Net cash flows from investing activities ) ) ) ) Cash Flows from Financing Activities: Proceeds from issuance of Hughes Retail Preferred Tracking Stock, net of offering cost — ) Repayment of long-term debt and capital lease obligations — ) ) — ) Other, net — ) — ) Net cash flows from financing activities ) ) ) ) Effect of exchange rates on cash and cash equivalents — — ) — ) Net increase (decrease) in cash and cash equivalents ) — Cash and cash equivalents, at beginning of period — Cash and cash equivalents, at end of period $ $ $ $ — $

Organization and Business Act32

Organization and Business Activities (Details) - segment	Mar. 02, 2014	Sep. 30, 2015
Organization and Business Activities
Number of business segments		2
HSS | Satellite and Tracking Stock Transaction | Hughes Retail Group
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	20.00%
HSS | Satellite and Tracking Stock Transaction | DISH Network | Hughes Retail Group
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	28.11%

Hughes Retail Preferred Track33

Hughes Retail Preferred Tracking Stock (Details) $ / shares in Units, $ in Thousands	Mar. 02, 2014USD ($)itemshares	Mar. 01, 2014	Sep. 30, 2015USD ($)item$ / sharesshares	Sep. 30, 2014USD ($)	Dec. 31, 2014$ / sharesshares
Hughes Retail Preferred Tracking Stock
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				$ 10,601
HSS
Hughes Retail Preferred Tracking Stock
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				$ 10,601
Hughes Retail Preferred Tracking Stock
Hughes Retail Preferred Tracking Stock
Portion of one vote entitled to each share			0.10
Preferred stock, shares authorized (in shares) | shares			300		300
Preferred Stock, par value (in dollars per share) | $ / shares			$ 0.001		$ 0.001
Preferred stock, shares outstanding (in shares) | shares			81.128		81.128
Hughes Retail Preferred Tracking Stock | HSS
Hughes Retail Preferred Tracking Stock
Dividend or other distributions paid on preferred stock			$ 0
Hughes Retail Preferred Tracking Stock | EchoStar
Hughes Retail Preferred Tracking Stock
Portion of one vote entitled to each share			0.10
Preferred stock, shares authorized (in shares) | shares			13,000,000
Preferred Stock, par value (in dollars per share) | $ / shares			$ 0.001
Dividend or other distributions paid on preferred stock			$ 0
DISH Network | HSS
Hughes Retail Preferred Tracking Stock
Percentage of capital stock held		7.50%
DISH Network | EchoStar
Hughes Retail Preferred Tracking Stock
Percentage of capital stock held		6.50%
DISH Network | Satellite and Tracking Stock Transaction | EchoStar and HSSC
Hughes Retail Preferred Tracking Stock
Related Party Transactions Number of Owned Satellites Transferred | item	5		5
Proceeds from issuance of Hughes Retail Preferred Tracking Stock	$ 11,400
DISH Network | Satellite and Tracking Stock Transaction | HSS
Hughes Retail Preferred Tracking Stock
Number of satellites received | item	2
DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | HSS
Hughes Retail Preferred Tracking Stock
Number of shares issued during the period | shares	81.128
DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | EchoStar
Hughes Retail Preferred Tracking Stock
Number of shares issued during the period | shares	6,290,499
Hughes Retail Group | Satellite and Tracking Stock Transaction | HSS
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	20.00%
Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | HSS
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	28.11%
Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | EchoStar
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	51.89%
Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	80.00%		80.00%

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value Measurements
Amount of transfers between levels within the fair value hierarchy			$ 0	$ 0
Research and Development
Costs of sales - services and other	$ 131,861	$ 134,884	394,327	400,199
Capitalized Software Costs
Net carrying amount of externally marketed software	59,700		59,700		$ 48,900
Capitalized costs related to development of externally marketed software	5,300	5,100	17,000	17,600
Amortization expense relating to externally marketed software	2,200	1,900	6,100	3,600
New Accounting Pronouncements
Unamortized deferred costs	32,800		32,800		39,100
Research and development expense funded by customers
Research and Development
Costs of sales - services and other	4,800	$ 6,800	15,700	$ 19,000
Level 2
Fair Value Measurements
Orbital incentive obligations	$ 80,300		$ 80,300		$ 85,800
Maximum
Capitalized Software Costs
Useful life of the software			5 years
Weighted Average
Capitalized Software Costs
Useful life			4 years

Other Comprehensive Income (L35

Other Comprehensive Income (Loss) and Related Tax Effect s (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Other comprehensive income or loss, tax (expense) benefit
Tax effects on foreign currency translation adjustments			$ 0	$ 0
Tax effects on unrealized gains or losses on available-for-sale securities			0	0
Cumulative foreign currency translation losses	$ 55,800,000		55,800,000		$ 29,200,000
Reclassification out of accumulated other comprehensive income (loss)
Recognition of realized gains (losses) on available-for-sale securities in net income		$ 52,000	(11,000)	42,000
Recognition of other-than-temporary loss on available-for-sale securities in net income	1,201,000		5,850,000
Total reclassifications, net of tax and noncontrolling interests	1,201,000	52,000	5,839,000	42,000
HSS
Reclassification out of accumulated other comprehensive income (loss)
Recognition of realized gains (losses) on available-for-sale securities in net income		52,000	(11,000)	42,000
Recognition of other-than-temporary loss on available-for-sale securities in net income	1,201,000		5,850,000
Other, net
Reclassification out of accumulated other comprehensive income (loss)
Recognition of realized gains (losses) on available-for-sale securities in net income		$ 52,000	(11,000)	$ 42,000
Other-than-temporary impairment on available-for-sale securities
Reclassification out of accumulated other comprehensive income (loss)
Recognition of other-than-temporary loss on available-for-sale securities in net income	$ 1,201,000		$ 5,850,000

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Marketable investment securities - current, at fair value:
Marketable investment securities	$ 333,957	$ 333,957	$ 394,992
Investments in unconsolidated entities - noncurrent:
Cost method	15,438	15,438	15,438
Equity method	22,483	22,483	17,531
Total investments in unconsolidated entities - noncurrent	37,921	37,921	32,969
Total marketable investment securities and investments in unconsolidated entities	371,878	371,878	427,961
Corporate Bonds
Investments in unconsolidated entities - noncurrent:
Marketable investment securities	300,715	300,715	367,291
Strategic equity securities
Investments in unconsolidated entities - noncurrent:
Marketable investment securities	20,295	20,295	12,669
Fair value of trading securities	11,300	11,300
Strategic equity securities | Other-than-temporary impairment on available-for-sale securities
Investments in unconsolidated entities - noncurrent:
Other-than-temporary impairment of available-for-sale shares	1,200	5,900
Strategic equity securities | Other, net
Investments in unconsolidated entities - noncurrent:
Unrealized holding loss on trading securities	3,900	5,500
Other.
Investments in unconsolidated entities - noncurrent:
Marketable investment securities	$ 12,947	$ 12,947	$ 15,032

Investment Securities (Details

Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	$ 322,229	$ 397,156
Unrealized Gains	707	1,727
Unrealized Losses	(255)	(3,891)
Total marketable investment securities	322,681	394,992
Corporate Bonds
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	300,955	367,949
Unrealized Gains	14	8
Unrealized Losses	(254)	(666)
Estimated Fair Value	300,715	367,291
Other.
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	12,948	15,031
Unrealized Gains		1
Unrealized Losses	(1)
Estimated Fair Value	12,947	15,032
Strategic equity securities
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	8,326	14,176
Unrealized Gains	693	1,718
Unrealized Losses		(3,225)
Estimated Fair Value	$ 9,019	$ 12,669

Investment Securities (Detail38

Investment Securities (Details 3) $ in Millions	Sep. 30, 2015USD ($)
Contractual maturities of debt securities
Debt securities with contractual maturities of one year or less	$ 305
Debt securities with contractual maturities exceeding one year	$ 8.7

Investment Securities (Detail39

Investment Securities (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair value of marketable investment securities in a loss position
Less than 12 months	$ 207,763		$ 207,763		$ 357,887
12 months or more	49,089		49,089
Total	256,852		256,852		357,887
Unrealized losses on marketable investment securities in a loss position
Less than 12 months	(225)		(225)		(3,891)
12 months or more	(30)		(30)
Total	(255)		(255)		$ (3,891)
Realized losses on the sales of available-for-sale marketable investment securities		$ 100		$ 100
Proceeds from sales of available-for-sale marketable investment securities	$ 4,000	$ 0	$ 14,600	$ 100

Investment Securities (Detail40

Investment Securities (Details 5) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Corporate Bonds
Fair value of marketable securities
Debt security	$ 300,715	$ 367,291
Other.
Fair value of marketable securities
Debt security	12,947	15,032
Strategic equity securities
Fair value of marketable securities
Equity security	20,295	12,669
Level 3
Fair value of marketable securities
Investments	0	0
Fair value measurements on recurring basis
Fair value of marketable securities
Cash equivalents	221,056	148,645
Total marketable investment securities	333,957	394,992
Fair value measurements on recurring basis | Corporate Bonds
Fair value of marketable securities
Debt security	300,715	367,291
Fair value measurements on recurring basis | Other.
Fair value of marketable securities
Debt security	12,947	15,032
Fair value measurements on recurring basis | Strategic equity securities
Fair value of marketable securities
Equity security	20,295	12,669
Fair value measurements on recurring basis | Level 1
Fair value of marketable securities
Cash equivalents	2,175	18,926
Total marketable investment securities	20,295	12,669
Fair value measurements on recurring basis | Level 1 | Strategic equity securities
Fair value of marketable securities
Equity security	20,295	12,669
Fair value measurements on recurring basis | Level 2
Fair value of marketable securities
Cash equivalents	218,881	129,719
Total marketable investment securities	313,662	382,323
Fair value measurements on recurring basis | Level 2 | Corporate Bonds
Fair value of marketable securities
Debt security	300,715	367,291
Fair value measurements on recurring basis | Level 2 | Other.
Fair value of marketable securities
Debt security	$ 12,947	$ 15,032

Trade Accounts Receivable (Deta

Trade Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Trade accounts receivable
Total trade accounts receivables	$ 158,766	$ 152,143
Allowance for doubtful accounts	(12,355)	(11,950)
Trade accounts receivable - DISH Network, net	19,466	19,249
Total trade accounts receivable, net	165,877	159,442
Progress billings offset against contracts in process	800	2,500
Trade accounts receivables
Trade accounts receivable
Total trade accounts receivables	124,315	135,609
Contracts in process, net
Trade accounts receivable
Total trade accounts receivables	$ 34,451	$ 16,534

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory
Finished goods	$ 47,714	$ 39,495
Raw materials	5,650	5,170
Work-in process	8,293	6,932
Total inventory	$ 61,657	$ 51,597

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Property and equipment
Total property and equipment	$ 4,324,753	$ 4,328,204
Accumulated depreciation	(2,060,214)	(2,053,636)
Property and equipment, net	2,264,539	2,274,568
Land
Property and equipment
Total property and equipment	12,055	12,075
Buildings and improvements
Property and equipment
Total property and equipment	$ 73,572	73,191
Buildings and improvements | Minimum
Property and equipment
Depreciable Life	1 year
Buildings and improvements | Maximum
Property and equipment
Depreciable Life	30 years
Furniture, fixtures, equipment and other
Property and equipment
Total property and equipment	$ 358,677	339,330
Furniture, fixtures, equipment and other | Minimum
Property and equipment
Depreciable Life	1 year
Furniture, fixtures, equipment and other | Maximum
Property and equipment
Depreciable Life	12 years
Customer rental equipment
Property and equipment
Total property and equipment	$ 581,394	498,181
Customer rental equipment | Minimum
Property and equipment
Depreciable Life	2 years
Customer rental equipment | Maximum
Property and equipment
Depreciable Life	4 years
Satellites
Property and equipment
Total property and equipment	$ 2,381,120	2,381,120
Satellites | Minimum
Property and equipment
Depreciable Life	2 years
Satellites | Maximum
Property and equipment
Depreciable Life	15 years
Satellites acquired under capital leases
Property and equipment
Total property and equipment	$ 665,518	935,104
Satellites acquired under capital leases | Minimum
Property and equipment
Depreciable Life	10 years
Satellites acquired under capital leases | Maximum
Property and equipment
Depreciable Life	15 years
Construction in progress
Property and equipment
Total property and equipment	$ 252,417	$ 89,203

Property and Equipment (Detai44

Property and Equipment (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property and equipment
Construction in progress	$ 252,417	$ 89,203
Progress amounts for satellite construction including prepayments under capital leases and launch services costs
Property and equipment
Construction in progress	156,085	54,620
Uplinking equipment
Property and equipment
Construction in progress	77,292	21,124
Construction in progress: Other
Property and equipment
Construction in progress	$ 19,040	$ 13,459

Property and Equipment (Detai45

Property and Equipment (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Depreciation expense
Total depreciation expense	$ 97,219	$ 100,925	$ 286,013	$ 291,817
Satellites
Depreciation expense
Total depreciation expense	51,436	55,643	149,677	158,782
Furniture, fixtures, equipment and other
Depreciation expense
Total depreciation expense	13,674	14,091	40,949	42,157
Customer rental equipment
Depreciation expense
Total depreciation expense	30,839	29,892	91,550	86,800
Buildings and improvements
Depreciation expense
Total depreciation expense	$ 1,270	$ 1,299	$ 3,837	$ 4,078

Property and Equipment (Detai46

Property and Equipment (Details 4)	9 Months Ended
	Sep. 30, 2015item
Satellites
Property and equipment
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator	17
Number of satellites utilized under capital lease	2
Number of satellites utilized under operating lease	2
AMC16
Property and equipment
Operating lease, amended agreement term	1 year

Goodwill and Other Intangible47

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Goodwill and Other Intangible Assets
Cost	$ 420,924		$ 420,924		$ 420,924
Accumulated Amortization	(295,954)		(295,954)		(263,824)
Carrying Amount	124,970		124,970		157,100
Amortization expense	11,900	$ 13,000	$ 38,800	$ 44,400
Customer relationships
Goodwill and Other Intangible Assets
Finite lived intangible assets useful life			8 years
Cost	270,300		$ 270,300		270,300
Accumulated Amortization	(182,873)		(182,873)		(161,762)
Carrying Amount	87,427		$ 87,427		108,538
Contract-based
Goodwill and Other Intangible Assets
Finite lived intangible assets useful life			4 years
Cost	64,800		$ 64,800		64,800
Accumulated Amortization	(64,800)		$ (64,800)		(61,810)
Carrying Amount					2,990
Technology-based
Goodwill and Other Intangible Assets
Finite lived intangible assets useful life			6 years
Cost	51,417		$ 51,417		51,417
Accumulated Amortization	(37,139)		(37,139)		(30,714)
Carrying Amount	14,278		$ 14,278		20,703
Trademark portfolio
Goodwill and Other Intangible Assets
Finite lived intangible assets useful life			20 years
Cost	29,700		$ 29,700		29,700
Accumulated Amortization	(6,435)		(6,435)		(5,321)
Carrying Amount	23,265		$ 23,265		24,379
Favorable leases
Goodwill and Other Intangible Assets
Finite lived intangible assets useful life			4 years
Cost	4,707		$ 4,707		4,707
Accumulated Amortization	$ (4,707)		$ (4,707)		(4,217)
Carrying Amount					$ 490

Debt and Capital Lease Obliga48

Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 12, 2015	Sep. 30, 2015	Dec. 31, 2014
Debt
Carrying Amount		$ 1,890,881	$ 2,001,197
Capital lease obligations		332,542	363,966
Total debt and capital lease obligations		2,223,423	2,365,163
Less: Current portion		(29,426)	(39,746)
Long-term debt and capital lease obligations, net of current portion		2,193,997	2,325,417
Fair Value		2,039,273	$ 2,172,697
Loss from partial redemption of debt		$ 5,044
6 1/2% Senior Secured Notes due 2019
Debt
Interest Rates (as a percent)	6.50%	6.50%	6.50%
Carrying Amount		$ 990,000	$ 1,100,000
Fair Value		$ 1,069,200	$ 1,177,000
Debt redeemed	$ 110,000
Redemption price (as a percent)	103.00%
Loss from partial redemption of debt	$ 5,000
Redemption premium	3,300
Write off of deferred financing fees	$ 1,700
7 5/8% Senior Notes due 2021
Debt
Interest Rates (as a percent)		7.625%	7.625%
Carrying Amount		$ 900,000	$ 900,000
Fair Value		969,192	994,500
Other
Debt
Carrying Amount		881	1,197
Fair Value		$ 881	$ 1,197

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes
Income tax expense	$ 22,167	$ 9,436	$ 58,520	$ 22,060
Effective income tax rate			38.30%	22.40%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2015USD ($)	Oct. 02, 2013item
Caltech
Commitments and Contingencies
Number of indirect wholly-owned subsidiaries against which lawsuit was filed		2
Satellite-related obligations
Commitments and Contingencies
Satellite-related obligations | $	$ 993.4

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
Segment Reporting
Number of business segments | segment			2
Segment Reporting
Total revenue	$ 464,031	$ 465,680	$ 1,373,741	$ 1,337,664
Capital expenditures	105,042	68,496	292,347	166,002
EBITDA	208,120	208,247	602,560	579,537
Interest income and expense, net	(39,772)	(46,632)	(126,168)	(142,399)
Depreciation and amortization	(109,158)	(115,828)	(324,797)	(339,831)
Net income attributable to noncontrolling interests	209	376	1,006	1,103
Income before income taxes	59,399	46,163	152,601	98,410
Hughes Business
Segment Reporting
Total revenue	339,729	339,068	1,000,194	984,097
EchoStar Satellite Services Business
Segment Reporting
Total revenue	124,300	127,604	374,287	356,964
Operating segments
Segment Reporting
Total revenue	464,031	465,680	1,373,741	1,337,664
Operating segments | Hughes Business
Segment Reporting
Total revenue	339,060	338,617	998,564	982,783
Capital expenditures	72,626	56,724	207,680	154,201
EBITDA	101,582	94,955	296,269	267,210
Operating segments | EchoStar Satellite Services Business
Segment Reporting
Total revenue	124,126	126,944	373,726	354,558
Capital expenditures	32,416	11,772	84,667	11,801
EBITDA	104,200	111,563	314,177	308,573
Operating segments | All other and eliminations
Segment Reporting
Total revenue	845	119	1,451	323
All Other and Eliminations | All other and eliminations
Segment Reporting
Total revenue	2	(992)	(740)	(3,397)
EBITDA	2,338	1,729	(7,886)	3,754
Intersegment | Hughes Business
Segment Reporting
Total revenue	669	451	1,630	1,314
Intersegment | EchoStar Satellite Services Business
Segment Reporting
Total revenue	174	660	561	2,406
Intersegment | All other and eliminations
Segment Reporting
Total revenue	$ (843)	$ (1,111)	$ (2,191)	$ (3,720)

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands

Mar. 02, 2014USD ($)item

Dec. 21, 2012

Oct. 02, 2012

Jun. 30, 2015USD ($)

May. 31, 2012

Dec. 31, 2009item

Sep. 30, 2009

Sep. 30, 2015USD ($)

Sep. 30, 2014USD ($)

Sep. 30, 2015USD ($)item

Sep. 30, 2014USD ($)

Dec. 31, 2009item

Dec. 31, 2008item

Sep. 30, 2012item

Mar. 09, 2012

Related party transactions

Transfer from EchoStar XXI launch contract from EchoStar to HNS | $

$ 52,250

Proceeds from issuance of Hughes Retail Preferred Tracking Stock | $

$ 10,601

Hughes Broadband Distribution Agreement

Related party transactions

Agreement term

5 years

Automatic renewal period

1 year

Required minimum notice for termination of agreement

180 days

DBSD North America Agreement

Related party transactions

Agreement term

1 year

Additional term of renewal option

1 year

Minimum required notice period for termination of agreement by related party

30 days

Number of additional one-year renewal options

1

Ciel

Related party transactions

Agreement term

10 years

DISH Network | EchoStar VI I I capacity leased to Dish Network

Related party transactions

Required minimum notice period for termination of agreement by the reporting entity

30 days

Minimum required notice period for termination of agreement by related party

30 days

DISH Network | EchoStar XVI

Related party transactions

Agreement term

10 years

Agreement term from commencement of service date

4 years

Term of renewal option

6 years

Additional term of renewal option

5 years

DISH Network | DISH Nimiq 5 Agreement

Related party transactions

Agreement term from commencement of service date

10 years

Number of DBS transponders available to receive services

32

32

DISH Network | Quetz Sat-1 Agreement

Related party transactions

Number of DBS transponders currently receiving services

24

Number of DBS transponders currently receiving services subleased back from related party

5

DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | Hughes Retail Group

Related party transactions

Percentage of economic interest in the Hughes Retail Group

80.00%

80.00%

DISH Network | TT&C Agreement

Related party transactions

Minimum required notice period for termination of agreement by related party

60 days

DISH Network | DBSD North America Agreement

Related party transactions

Ownership interest acquired by related party (as a percent)

100.00%

DISH Network | EchoStar Professional Services Agreement

Related party transactions

Required minimum notice for termination of individual service

30 days

Agreement term

1 year

Automatic renewal period

1 year

Required minimum notice for termination of agreement

60 days

DISH Network | EchoStar | Satellite and Tracking Stock Transaction

Related party transactions

Liabilities Assumed | $

$ 58,900

DISH Network | EchoStar | Satellite and Tracking Stock Transaction | Hughes Retail Group

Related party transactions

Percentage of economic interest in the Hughes Retail Group

51.89%

DISH Network | EchoStar and HSSC | Satellite and Tracking Stock Transaction

Related party transactions

Related Party Transactions Number of Owned Satellites Transferred

5

5

Proceeds from issuance of Hughes Retail Preferred Tracking Stock | $

$ 11,400

Telesat | Nimiq 5 Agreement

Related party transactions

Agreement term

15 years

Number of DBS transponders available to receive services

32

32

SES Latin America | QuetzSat-1 Transponder

Related party transactions

Agreement term

10 years

Number of DBS transponders available to receive services

32

EchoStar.

Related party transactions

Required minimum notice period for termination of agreement by the reporting entity

30 days

Expense recorded for services provided | $

$ 4,500

$ 3,100

$ 12,700

$ 9,300

EchoStar. | HNS | EchoStar XXI Launch Facilitation and Operational Control Agreement

Related party transactions

Transfer from EchoStar XXI launch contract from EchoStar to HNS | $

$ 52,300

Future payments to HNS | $

$ 1,900

Related Party Transactions (D53

Related Party Transactions (Details 2) $ in Millions	Sep. 30, 2015USD ($)
DISH Network | Tax Sharing Agreement
Related party transactions
Net amount of the allocated tax attributes receivable	$ 93.1

Related Party Transactions (D54

Related Party Transactions (Details 3) - USD ($) $ in Thousands	Apr. 30, 2014	Sep. 30, 2015	Apr. 30, 2015	May. 31, 2014	Feb. 29, 2008	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2009	Dec. 31, 2014
Related party transactions
Account receivable balance due		$ 30,436				$ 30,436		$ 30,436			$ 736
Hughes Systique
Related party transactions
Ownership interest in related party (as a percent)								44.00%
Ownership interest percentage by related party								25.80%
Hughes Systique | HNS
Related party transactions
Amount agreed to be funded under term loan facility					$ 1,500
Amount funded					$ 500					$ 1,000
Interest rate (as a percent)	6.00%			8.00%	6.00%
Loan repayment		600	$ 700
Remaining balance of loan		900				900		$ 900
Dish Mexico
Related party transactions
Ownership interest in related party (as a percent)								49.00%
Revenue from related parties						5,800	$ 5,800	$ 17,500	$ 17,500
Account receivable balance due		8,400				8,400		$ 8,400			3,900
Deluxe
Related party transactions
Ownership interest in related party (as a percent)								50.00%
Revenue from related parties						700	$ 800	$ 2,100	$ 2,500
Receivables from related parties		$ 100				$ 100		$ 100			$ 200

Supplemental Guarantor and No55

Supplemental Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 12, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 278,102		$ 225,557	$ 328,304	$ 163,709
Marketable investment securities, at fair value	333,957		394,992
Trade accounts receivable, net	146,411		140,193
Trade accounts receivable - DISH Network, net	19,466		19,249
Advances to affiliates, net	30,436		736
Inventory	61,657		51,597
Other current assets	220,812		196,512
Total current assets	1,090,841		1,028,836
Restricted cash and cash equivalents	17,965		17,652
Property and equipment, net	2,264,539		2,274,568
Regulatory authorizations	471,658		471,658
Goodwill	504,173		504,173
Other intangible assets, net	124,970		157,100
Other noncurrent assets, net	263,465		210,597
Total assets	4,737,611		4,664,584
Liabilities and Shareholders' Equity (Deficit)
Trade accounts payable	94,969		93,783
Trade accounts payable - DISH Network	20		18
Current portion of long-term debt and capital lease obligations	29,426		39,746
Advances from affiliates, net	3,805		23,792
Accrued expenses and other	210,179		172,614
Total current liabilities	338,399		329,953
Long-term debt and capital lease obligations, net of current portion	2,193,997		2,325,417
Advances from affiliates	12,153		8,352
Other non-current liabilities	698,507		631,265
Total HSS shareholders' equity	1,483,856		1,359,584
Noncontrolling interests	10,699		10,013
Total liabilities and shareholders' equity	4,737,611		4,664,584
Eliminations
Assets
Advances to affiliates, net	(434,628)		(190,658)
Other current assets	(4,480)		(4,480)
Total current assets	(439,108)		(195,138)
Investment in subsidiaries	(3,409,037)		(3,122,628)
Advances to affiliates	(1,578)		(2,416)
Other noncurrent assets, net	(42,362)
Total assets	(3,892,085)		(3,320,182)
Liabilities and Shareholders' Equity (Deficit)
Advances from affiliates, net	(434,628)		(190,658)
Accrued expenses and other	(4,480)		(4,480)
Total current liabilities	(439,108)		(195,138)
Advances from affiliates	(1,578)		(2,416)
Other non-current liabilities	(42,362)
Total HSS shareholders' equity	(3,409,037)		(3,122,628)
Total liabilities and shareholders' equity	$ (3,892,085)		$ (3,320,182)
6 1/2% Senior Secured Notes due 2019
Condensed Consolidating Balance Sheet
Interest Rates (as a percent)	6.50%	6.50%	6.50%
7 5/8% Senior Notes due 2021
Condensed Consolidating Balance Sheet
Interest Rates (as a percent)	7.625%		7.625%
HSS
Assets
Cash and cash equivalents	$ 217,425		$ 142,762	263,270	97,674
Marketable investment securities, at fair value	317,154		388,440
Trade accounts receivable - DISH Network, net	1,492
Advances to affiliates, net	10		10
Other current assets	68		39
Total current assets	536,149		531,251
Restricted cash and cash equivalents	9,805		9,553
Investment in subsidiaries	3,267,619		3,038,984
Advances to affiliates	700		700
Other noncurrent assets, net	75,147		39,062
Total assets	3,889,420		3,619,550
Liabilities and Shareholders' Equity (Deficit)
Trade accounts payable			295
Advances from affiliates, net	409,444		193,671
Accrued expenses and other	106,120		66,000
Total current liabilities	515,564		259,966
Long-term debt and capital lease obligations, net of current portion	1,890,000		2,000,000
Total HSS shareholders' equity	1,483,856		1,359,584
Total liabilities and shareholders' equity	3,889,420		3,619,550
Guarantor Subsidiaries
Assets
Cash and cash equivalents	38,168		51,592	41,069	34,340
Marketable investment securities, at fair value	16,803		6,552
Trade accounts receivable, net	109,090		96,881
Trade accounts receivable - DISH Network, net	17,974		19,118
Advances to affiliates, net	464,892		191,384
Inventory	49,857		42,996
Other current assets	200,279		176,657
Total current assets	897,063		585,180
Restricted cash and cash equivalents	7,500		7,500
Property and equipment, net	2,199,494		2,225,085
Regulatory authorizations	471,658		471,658
Goodwill	504,173		504,173
Other intangible assets, net	124,970		157,100
Investment in subsidiaries	141,418		83,644
Advances to affiliates	878		1,716
Other noncurrent assets, net	171,899		161,763
Total assets	4,519,053		4,197,819
Liabilities and Shareholders' Equity (Deficit)
Trade accounts payable	83,209		82,928
Trade accounts payable - DISH Network	20		18
Current portion of long-term debt and capital lease obligations	28,044		37,979
Advances from affiliates, net	8,693		1,494
Accrued expenses and other	88,083		81,337
Total current liabilities	208,049		203,756
Long-term debt and capital lease obligations, net of current portion	302,567		323,889
Other non-current liabilities	740,818		631,190
Total HSS shareholders' equity	3,267,619		3,038,984
Total liabilities and shareholders' equity	4,519,053		4,197,819
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	22,509		31,203	$ 23,965	$ 31,695
Trade accounts receivable, net	37,321		43,312
Trade accounts receivable - DISH Network, net			131
Advances to affiliates, net	162
Inventory	11,800		8,601
Other current assets	24,945		24,296
Total current assets	96,737		107,543
Restricted cash and cash equivalents	660		599
Property and equipment, net	65,045		49,483
Other noncurrent assets, net	58,781		9,772
Total assets	221,223		167,397
Liabilities and Shareholders' Equity (Deficit)
Trade accounts payable	11,760		10,560
Current portion of long-term debt and capital lease obligations	1,382		1,767
Advances from affiliates, net	20,296		19,285
Accrued expenses and other	20,456		29,757
Total current liabilities	53,894		61,369
Long-term debt and capital lease obligations, net of current portion	1,430		1,528
Advances from affiliates	13,731		10,768
Other non-current liabilities	51		75
Total HSS shareholders' equity	141,418		83,644
Noncontrolling interests	10,699		10,013
Total liabilities and shareholders' equity	$ 221,223		$ 167,397

Supplemental Guarantor and No56

Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Services and other revenue - other	$ 276,307	$ 273,361	$ 817,307	$ 803,843
Services and other revenue - DISH Network	132,013	129,389	394,937	357,494
Equipment revenue - other	52,605	56,580	154,505	152,078
Equipment revenue - DISH Network	3,106	6,350	6,992	24,249
Total revenue	464,031	465,680	1,373,741	1,337,664
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	131,861	134,884	394,327	400,199
Cost of sales - equipment (exclusive of depreciation and amortization)	48,543	54,693	142,537	154,890
Selling, general and administrative expenses	68,303	63,790	203,871	191,589
Research and development expenses	6,809	5,168	18,876	14,314
Depreciation and amortization	109,158	115,828	324,797	339,831
Total costs and expenses	364,674	374,363	1,084,408	1,100,823
Operating income	99,357	91,317	289,333	236,841
Other Income (Expense):
Interest income	1,135	836	3,391	2,411
Interest expense, net of amounts capitalized	(40,907)	(47,468)	(129,559)	(144,810)
Other, net	(186)	1,478	(10,564)	3,968
Total other expense, net	(39,958)	(45,154)	(136,732)	(138,431)
Income before income taxes	59,399	46,163	152,601	98,410
Income tax benefit (provision), net	(22,167)	(9,436)	(58,520)	(22,060)
Net income (loss)	37,232	36,727	94,081	76,350
Less: Net income attributable to noncontrolling interests	209	376	1,006	1,103
Net income (loss) attributable to HSS	37,023	36,351	93,075	75,247
Comprehensive Income (loss) :
Net income (loss)	37,232	36,727	94,081	76,350
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(17,688)	(5,644)	(26,935)	(2,293)
Unrealized (gains) losses on available-for-sale securities and other	(6,507)	(1,976)	(3,194)	(2,803)
Recognition of other-than-temporary loss on available-for-sale securities in net income	1,201		5,850
Recognition of realized gains (losses) on available-for-sale securities in net income		52	(11)	42
Total other comprehensive loss, net of tax	(22,994)	(7,568)	(24,290)	(5,054)
Comprehensive income	14,238	29,159	69,791	71,296
Less: Comprehensive income (loss) attributable to noncontrolling interests	(111)	170	686	1,146
Comprehensive income attributable to HSS	14,349	28,989	69,105	70,150
HSS
Other Income (Expense):
Interest income	785	54,937	2,486	160,682
Interest expense, net of amounts capitalized	(34,726)	(36,497)	(107,462)	(109,413)
Equity in earnings (losses) of subsidiaries, net	60,213	24,583	172,082	42,533
Other, net	94	6	(16,337)	15
Total other expense, net	26,366	43,029	50,769	93,817
Income before income taxes	26,366	43,029	50,769	93,817
Income tax benefit (provision), net	10,657	(6,679)	42,306	(18,571)
Net income (loss)	37,023	36,350	93,075	75,246
Net income (loss) attributable to HSS	37,023	36,350	93,075	75,246
Comprehensive Income (loss) :
Net income (loss)	37,023	36,350	93,075	75,246
Other comprehensive income (loss), net of tax:
Unrealized (gains) losses on available-for-sale securities and other	(5,510)	(1,924)	(2,208)	(2,761)
Recognition of other-than-temporary loss on available-for-sale securities in net income	1,201		5,850
Recognition of realized gains (losses) on available-for-sale securities in net income		52	(11)	42
Equity in other comprehensive income (loss) of subsidiaries, net	(18,365)	(5,489)	(27,601)	(2,377)
Total other comprehensive loss, net of tax	(22,674)	(7,361)	(23,970)	(5,096)
Comprehensive income	14,349	28,989	69,105	70,150
Comprehensive income attributable to HSS	14,349	28,989	69,105	70,150
Guarantor Subsidiaries
Revenue:
Services and other revenue - other	254,696	239,490	749,436	698,344
Services and other revenue - DISH Network	132,012	129,211	394,818	356,991
Equipment revenue - other	48,708	53,803	147,850	141,998
Equipment revenue - DISH Network	3,106	6,350	6,992	24,249
Total revenue	438,522	428,854	1,299,096	1,221,582
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	119,635	112,280	357,429	331,032
Cost of sales - equipment (exclusive of depreciation and amortization)	46,419	54,004	140,306	150,014
Selling, general and administrative expenses	60,660	56,024	180,640	168,245
Research and development expenses	6,809	5,168	18,876	14,314
Depreciation and amortization	107,720	113,899	320,194	333,492
Total costs and expenses	341,243	341,375	1,017,445	997,097
Operating income	97,279	87,479	281,651	224,485
Other Income (Expense):
Interest income	29	111	148	279
Interest expense, net of amounts capitalized	(6,747)	(65,463)	(23,643)	(194,202)
Equity in earnings (losses) of subsidiaries, net	322	1,843	3,369	6,908
Other, net	2,222	2,325	9,522	4,453
Total other expense, net	(4,174)	(61,184)	(10,604)	(182,562)
Income before income taxes	93,105	26,295	271,047	41,923
Income tax benefit (provision), net	(32,798)	(1,610)	(98,688)	891
Net income (loss)	60,307	24,685	172,359	42,814
Net income (loss) attributable to HSS	60,307	24,685	172,359	42,814
Comprehensive Income (loss) :
Net income (loss)	60,307	24,685	172,359	42,814
Other comprehensive income (loss), net of tax:
Unrealized (gains) losses on available-for-sale securities and other	(1,025)		(1,025)
Equity in other comprehensive income (loss) of subsidiaries, net	(17,340)	(5,490)	(26,576)	(2,378)
Total other comprehensive loss, net of tax	(18,365)	(5,490)	(27,601)	(2,378)
Comprehensive income	41,942	19,195	144,758	40,436
Comprehensive income attributable to HSS	41,942	19,195	144,758	40,436
Non-Guarantor Subsidiaries
Revenue:
Services and other revenue - other	34,287	39,880	106,251	123,781
Services and other revenue - DISH Network	1	178	119	503
Equipment revenue - other	8,490	7,304	21,954	23,262
Total revenue	42,778	47,362	128,324	147,546
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	24,737	28,612	74,629	87,448
Cost of sales - equipment (exclusive of depreciation and amortization)	6,150	4,761	16,210	16,803
Selling, general and administrative expenses	8,375	8,222	25,200	24,600
Depreciation and amortization	1,438	1,929	4,603	6,339
Total costs and expenses	40,700	43,524	120,642	135,190
Operating income	2,078	3,838	7,682	12,356
Other Income (Expense):
Interest income	340	306	850	1,264
Interest expense, net of amounts capitalized	547	(27)	1,453	(1,009)
Other, net	(2,502)	(853)	(3,749)	(500)
Total other expense, net	(1,615)	(574)	(1,446)	(245)
Income before income taxes	463	3,264	6,236	12,111
Income tax benefit (provision), net	(26)	(1,147)	(2,138)	(4,380)
Net income (loss)	437	2,117	4,098	7,731
Less: Net income attributable to noncontrolling interests	209	376	1,006	1,103
Net income (loss) attributable to HSS	228	1,741	3,092	6,628
Comprehensive Income (loss) :
Net income (loss)	437	2,117	4,098	7,731
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(17,688)	(5,644)	(26,935)	(2,293)
Unrealized (gains) losses on available-for-sale securities and other	28	(52)	39	(42)
Total other comprehensive loss, net of tax	(17,660)	(5,696)	(26,896)	(2,335)
Comprehensive income	(17,223)	(3,579)	(22,798)	5,396
Less: Comprehensive income (loss) attributable to noncontrolling interests	(111)	170	686	1,146
Comprehensive income attributable to HSS	(17,112)	(3,749)	(23,484)	4,250
Eliminations
Revenue:
Services and other revenue - other	(12,676)	(6,009)	(38,380)	(18,282)
Equipment revenue - other	(4,593)	(4,527)	(15,299)	(13,182)
Total revenue	(17,269)	(10,536)	(53,679)	(31,464)
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	(12,511)	(6,008)	(37,731)	(18,281)
Cost of sales - equipment (exclusive of depreciation and amortization)	(4,026)	(4,072)	(13,979)	(11,927)
Selling, general and administrative expenses	(732)	(456)	(1,969)	(1,256)
Total costs and expenses	(17,269)	(10,536)	(53,679)	(31,464)
Other Income (Expense):
Interest income	(19)	(54,518)	(93)	(159,814)
Interest expense, net of amounts capitalized	19	54,519	93	159,814
Equity in earnings (losses) of subsidiaries, net	(60,535)	(26,426)	(175,451)	(49,441)
Total other expense, net	(60,535)	(26,425)	(175,451)	(49,441)
Income before income taxes	(60,535)	(26,425)	(175,451)	(49,441)
Net income (loss)	(60,535)	(26,425)	(175,451)	(49,441)
Net income (loss) attributable to HSS	(60,535)	(26,425)	(175,451)	(49,441)
Comprehensive Income (loss) :
Net income (loss)	(60,535)	(26,425)	(175,451)	(49,441)
Other comprehensive income (loss), net of tax:
Equity in other comprehensive income (loss) of subsidiaries, net	35,705	10,979	54,177	4,755
Total other comprehensive loss, net of tax	35,705	10,979	54,177	4,755
Comprehensive income	(24,830)	(15,446)	(121,274)	(44,686)
Comprehensive income attributable to HSS	$ (24,830)	$ (15,446)	$ (121,274)	$ (44,686)

Supplemental Guarantor and No57

Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net income (loss)	$ 37,232	$ 36,727	$ 94,081	$ 76,350
Adjustments to reconcile net income (loss) to net cash flows from operating activities			352,727	453,451
Net cash flows from operating activities			446,808	529,801
Cash Flows from Investing Activities:
Purchases of marketable investment securities			(132,741)	(269,215)
Sales and maturities of marketable investment securities			197,899	130,997
Purchases of property and equipment	(105,042)	(68,496)	(292,347)	(166,002)
Expenditures for externally marketed software			(16,905)	(17,401)
Changes in restricted cash and cash equivalents			(313)	(2,688)
Other, net			(9)	(130)
Net cash flows from investing activities			(244,416)	(324,439)
Cash Flows from Financing Activities:
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				10,601
Repayment of 6 1/2% Senior Notes Due 2019 and related premium			(113,300)
Repayment of other long-term debt and capital lease obligations			(31,578)	(49,904)
Advances from affiliates			3,699
Other, net			(1,688)	(1,116)
Net cash flows from financing activities			(142,867)	(40,419)
Effect of exchange rates on cash and cash equivalents			(6,980)	(348)
Net increase in cash and cash equivalents			52,545	164,595
Cash and cash equivalents, beginning of period			225,557	163,709
Cash and cash equivalents, end of period	278,102	328,304	278,102	328,304
HSS
Cash Flows from Operating Activities:
Net income (loss)	37,023	36,350	93,075	75,246
Adjustments to reconcile net income (loss) to net cash flows from operating activities			58,942	231,330
Net cash flows from operating activities			152,017	306,576
Cash Flows from Investing Activities:
Purchases of marketable investment securities			(132,741)	(269,215)
Sales and maturities of marketable investment securities			197,899	130,997
Changes in restricted cash and cash equivalents			(252)	(2,661)
Investment in subsidiary			(29,000)	(10,601)
Other, net				(101)
Net cash flows from investing activities			35,906	(151,581)
Cash Flows from Financing Activities:
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				10,601
Repayment of 6 1/2% Senior Notes Due 2019 and related premium			(113,300)
Other, net			40
Net cash flows from financing activities			(113,260)	10,601
Net increase in cash and cash equivalents			74,663	165,596
Cash and cash equivalents, beginning of period			142,762	97,674
Cash and cash equivalents, end of period	217,425	263,270	217,425	263,270
Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	60,307	24,685	172,359	42,814
Adjustments to reconcile net income (loss) to net cash flows from operating activities			112,751	160,259
Net cash flows from operating activities			285,110	203,073
Cash Flows from Investing Activities:
Purchases of property and equipment			(250,365)	(139,317)
Expenditures for externally marketed software			(16,905)	(17,401)
Investment in subsidiary			(29,000)
Other, net			1,291	(29)
Net cash flows from investing activities			(294,979)	(156,747)
Cash Flows from Financing Activities:
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				10,601
Proceeds from capital contributions from parent			29,000
Repayment of other long-term debt and capital lease obligations			(26,755)	(44,903)
Other, net			(5,800)	(5,295)
Net cash flows from financing activities			(3,555)	(39,597)
Net increase in cash and cash equivalents			(13,424)	6,729
Cash and cash equivalents, beginning of period			51,592	34,340
Cash and cash equivalents, end of period	38,168	41,069	38,168	41,069
Non-Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	437	2,117	4,098	7,731
Adjustments to reconcile net income (loss) to net cash flows from operating activities			5,583	12,421
Net cash flows from operating activities			9,681	20,152
Cash Flows from Investing Activities:
Purchases of property and equipment			(41,982)	(26,685)
Changes in restricted cash and cash equivalents			(61)	(27)
Net cash flows from investing activities			(42,043)	(26,712)
Cash Flows from Financing Activities:
Proceeds from capital contributions from parent			29,000
Repayment of other long-term debt and capital lease obligations			(4,823)	(5,001)
Advances from affiliates			3,699
Other, net			2,772	4,179
Net cash flows from financing activities			30,648	(822)
Effect of exchange rates on cash and cash equivalents			(6,980)	(348)
Net increase in cash and cash equivalents			(8,694)	(7,730)
Cash and cash equivalents, beginning of period			31,203	31,695
Cash and cash equivalents, end of period	22,509	23,965	22,509	23,965
Eliminations
Cash Flows from Operating Activities:
Net income (loss)	$ (60,535)	$ (26,425)	(175,451)	(49,441)
Adjustments to reconcile net income (loss) to net cash flows from operating activities			175,451	49,441
Cash Flows from Investing Activities:
Investment in subsidiary			58,000	10,601
Other, net			(1,300)
Net cash flows from investing activities			56,700	10,601
Cash Flows from Financing Activities:
Proceeds from issuance of Hughes Retail Preferred Tracking Stock				(10,601)
Proceeds from capital contributions from parent			(58,000)
Other, net			1,300
Net cash flows from financing activities			$ (56,700)	$ (10,601)