Hughes Satellite Systems 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
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	Mar. 31, 2016
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	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 420,928	$ 382,990
Marketable investment securities, at fair value	235,661	253,343
Trade accounts receivable, net of allowance for doubtful accounts of $12,974 and $11,447, respectively	128,954	139,510
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero	19,706	21,258
Inventory	53,358	48,797
Prepaids and deposits	34,367	38,222
Advances to affiliates, net	62,416	47,387
Other current assets	12,336	13,273
Total current assets	967,726	944,780
Noncurrent Assets:
Restricted cash and cash equivalents	20,802	20,140
Property and equipment, net of accumulated depreciation of $2,229,836 and $2,138,642, respectively	2,310,837	2,265,402
Regulatory authorizations	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	106,748	115,420
Investments in unconsolidated entities	43,340	41,481
Other noncurrent assets, net	293,788	208,225
Total noncurrent assets	3,751,346	3,626,499
Total assets	4,719,072	4,571,279
Current Liabilities:
Trade accounts payable	97,854	97,648
Trade accounts payable - DISH Network	6	19
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	1,891,286	30,284
Advances from affiliates, net	3,629	3,773
Deferred revenue and prepayments	58,819	57,493
Accrued interest	41,349	8,310
Accrued compensation	16,507	18,932
Accrued expenses and other	71,533	96,501
Total current liabilities	2,180,983	312,960
Noncurrent Liabilities:
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	288,465	2,154,988
Deferred tax liabilities, net	471,696	452,350
Advances from affiliates	28,098	25,283
Other noncurrent liabilities	83,621	84,058
Total noncurrent liabilities	871,880	2,716,679
Total liabilities	3,052,863	3,029,639
Shareholders’ Equity:
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,000 shares issued and outstanding at each of March 31, 2016 and December 31, 2015	0	0
Additional paid-in capital	1,500,952	1,417,748
Accumulated other comprehensive loss	(46,781)	(54,116)
Accumulated earnings	200,617	166,698
Total HSS shareholders’ equity	1,654,788	1,530,330
Noncontrolling interests	11,421	11,310
Total shareholders’ equity	1,666,209	1,541,640
Total liabilities and shareholders’ equity	4,719,072	4,571,279
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 March 31, 2016 and December 31, 2015	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 12,974,000	$ 11,447,000
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars)	0	0
Property and equipment, accumulated depreciation (in dollars)	$ 2,229,836,000	$ 2,138,642,000
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
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Services and other revenue - other	$ 270,423	$ 269,679
Services and other revenue - DISH Network	113,075	131,441
Equipment revenue - other	42,859	48,051
Equipment revenue - DISH Network	2,769	1,063
Total revenue	429,126	450,234
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	124,577	129,918
Cost of sales - equipment (exclusive of depreciation and amortization)	43,108	45,211
Selling, general and administrative expenses	70,915	70,545
Research and development expenses	6,932	5,554
Depreciation and amortization	102,369	108,014
Total costs and expenses	347,901	359,242
Operating income	81,225	90,992
Other Income (Expense):
Interest income	1,914	1,099
Interest expense, net of amounts capitalized	(38,031)	(45,086)
Gains on marketable investment securities	215	0
Equity in earnings of unconsolidated affiliate	1,859	1,397
Other, net	6,889	(1,053)
Total other expense, net	(27,154)	(43,643)
Income before income taxes	54,071	47,349
Income tax provision, net	(20,041)	(17,973)
Net income	34,030	29,376
Less: Net income attributable to noncontrolling interests	111	369
Net income attributable to HSS	33,919	29,007
Comprehensive Income:
Net income	34,030	29,376
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	7,709	(10,234)
Unrealized gains (losses) on available-for-sale securities and other	(374)	1,557
Total other comprehensive income (loss), net of tax	7,335	(8,677)
Comprehensive income	41,365	20,699
Less: Comprehensive income attributable to noncontrolling interests	111	369
Comprehensive income attributable to HSS	$ 41,254	$ 20,330

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 34,030	$ 29,376
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	102,369	108,014
Equity in earnings of unconsolidated affiliate	(1,859)	(1,397)
Amortization of debt issuance costs	1,538	1,521
Gains on marketable investment securities	(215)	0
Stock-based compensation	1,208	1,220
Deferred tax provision	19,231	17,035
Changes in current assets and current liabilities, net	6,956	(9,568)
Changes in noncurrent assets and noncurrent liabilities, net	4,078	2,504
Other, net	(608)	(1,824)
Net cash flows from operating activities	166,728	146,881
Cash Flows from Investing Activities:
Purchases of marketable investment securities	(134,572)	(90,594)
Sales and maturities of marketable investment securities	146,814	52,683
Purchases of property and equipment	(128,957)	(92,310)
Expenditures for externally marketed software	(5,959)	(4,944)
Changes in restricted cash and cash equivalents	(662)	(1,046)
Payment for EchoStar XXI launch services	(11,875)	0
Other, net	0	(9)
Net cash flows from investing activities	(135,211)	(136,220)
Cash Flows from Financing Activities:
Repayment of other debt and capital lease obligations	(8,214)	(15,038)
Advances from affiliates	2,504	0
Capital contribution from EchoStar	11,875	0
Other, net	213	779
Net cash flows from financing activities	6,378	(14,259)
Effect of exchange rates on cash and cash equivalents	43	(2,566)
Net increase (decrease) in cash and cash equivalents	37,938	(6,164)
Cash and cash equivalents, beginning of period	382,990	225,557
Cash and cash equivalents, end of period	420,928	219,393
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest (including capitalized interest)	10,182	10,820
Capitalized interest	7,033	2,355
Cash paid for income taxes	1,561	975
Satellites and other assets financed under capital lease obligations	77	160
Reduction of capital lease obligation for AMC-15 and AMC-16 satellites	0	4,500
Increase (decrease) in capital expenditures included in accounts payable, net	(874)	4,414
Transfer of EchoStar XXIII launch contract from EchoStar to HNS	$ 70,300	$ 0

Organization and Business Activ

Organization and Business Activities	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Activities	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 Corporation and its subsidiaries (“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 3 below and in our most recent Annual Report on Form 10-K, 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 including certain operations, assets and liabilities attributed to such business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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, 2015 . Principles of Consolidation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. For entities we control but do not wholly own, we record a noncontrolling interest within shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. 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 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 EchoStar’s stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. 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 three months ended March 31, 2016 or 2015 . As of March 31, 2016 and December 31, 2015 , 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 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 March 31, 2016 and December 31, 2015 , 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 $78.5 million and $79.3 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 Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. Cost of sales includes research and development costs of approximately $2.8 million and $5.7 million for the three months ended March 31, 2016 and 2015 , respectively. In addition, we incurred $6.9 million and $5.6 million for the three months ended March 31, 2016 and 2015 , respectively, for other research and development expenses. Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “Other noncurrent assets, net” in our 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 March 31, 2016 and December 31, 2015 , the net carrying amount of externally marketed software was $66.4 million and $62.8 million , respectively. We capitalized costs related to the development of externally marketed software of $5.9 million and $5.0 million for the three months ended March 31, 2016 and 2015 , respectively. We recorded amortization expense relating to the development of externally marketed software of $2.3 million and $1.9 million for the three months ended March 31, 2016 and 2015 , respectively. The weighted average useful life of our externally marketed software was approximately three years as of March 31, 2016 . 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. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing, which amends guidance on identifying performance obligations and accounting for licenses of intellectual property. 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 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. We adopted ASU 2015-02 in the first quarter of 2016. The adoption of the standard did not impact our consolidated financial statements. 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. We adopted ASU 2015-03 in the first quarter of 2016. Upon adoption, we presented unamortized debt issuance cost previously reported in “ Other noncurrent assets, net ” with a carrying amount of $31.3 million as of December 31, 2015, as a reduction of our “Long-term debt and capital lease obligations, net of unamortized debt issuance costs” (see Note 10 for further discussion). In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments to be measured at fair value with changes in the fair value recognized through net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted for certain requirements. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or financing leases. ASU 2016-02 is effective for annual periods beginning after December 15, 2018 and interim periods within those periods. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies the accounting for share-based payment awards. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those periods. The update specifies requirements for retrospective, modified retrospective or prospective application for the various amendments contained in the update. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

Hughes Retail Preferred Trackin

Hughes Retail Preferred Tracking Stock	3 Months Ended
	Mar. 31, 2016
Hughes Retail Preferred Tracking Stock
Hughes Retail Preferred Tracking Stock	Hughes Retail Preferred Tracking Stock Satellite and Tracking Stock Transaction In February 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 economic performance of the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group” or “HRG”). 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 Satellite and Tracking Stock Transaction was 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 increased 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. For a description of the Tracking Stock and the initial recording of the Satellite and Tracking Stock Transaction in our consolidated financial statements, as well as the purpose and effect of the transaction on the Company and holders of shares of HSS common stock, see Note 3 to the consolidated financial statements in our most recent Annual Report on Form 10-K.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss) and Related Tax Effects	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Other Comprehensive Income (Loss) and Related Tax Effects	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 $46.1 million and $53.8 million as of March 31, 2016 and December 31, 2015 , respectively.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2016
Investments [Abstract]
Investment Securities	Investment Securities Our marketable investment securities and investments in unconsolidated entities consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 205,960 $ 228,770 Strategic equity securities 17,929 18,297 Other 11,772 6,276 Total marketable investment securities—current 235,661 253,343 Investments in unconsolidated entities—noncurrent: Cost method 15,438 15,438 Equity method 27,902 26,043 Total investments in unconsolidated entities—noncurrent 43,340 41,481 Total marketable investment securities and investments in unconsolidated entities $ 279,001 $ 294,824 Marketable Investment Securities Our marketable investment securities portfolio consists of various debt and equity instruments, which generally are classified as available-for-sale or trading securities depending on our investment strategy for those securities. The value of our investment portfolio depends on the value of such securities and other instruments comprising the portfolio. Corporate Bonds Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Strategic Equity Securities Our strategic investment portfolio consists of investments in shares of common stock of public companies, which are highly speculative and have experienced and continue to experience volatility. We did not receive any dividend income for the three months ended March 31, 2016 or 2015 . As of March 31, 2016 and December 31, 2015 , 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 months ended March 31, 2016 and 2015 , “Gains on marketable investment securities” includes $0.2 million and zero on such common stock in our trading securities portfolio, respectively, which had a fair value of $10.6 million as of March 31, 2016 . Other Our other current marketable investment securities portfolio includes investments in various debt instruments, including U.S. government bonds. 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 March 31, 2016 Debt securities: Corporate bonds $ 206,028 $ 140 $ (208 ) $ 205,960 Other 11,764 8 — 11,772 Equity securities - strategic 8,037 67 (732 ) 7,372 Total marketable investment securities $ 225,829 $ 215 $ (940 ) $ 225,104 As of December 31, 2015 Debt securities: Corporate bonds $ 229,004 $ 2 $ (236 ) $ 228,770 Other 6,279 — (3 ) 6,276 Equity securities - strategic 8,037 — (82 ) 7,955 Total marketable investment securities $ 243,320 $ 2 $ (321 ) $ 243,001 As of March 31, 2016 , restricted and non-restricted marketable investment securities included debt securities of $185.9 million with contractual maturities of one year or less and $31.8 million with contractual maturities greater than one year. We may realize proceeds from certain investments prior to their contractual maturity as a result of our ability to sell these securities prior to their contractual maturity. Available-for-Sale Securities in a Loss Position The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. 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 March 31, 2016 . As of March 31, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Less than 12 months $ 82,950 $ (940 ) $ 148,629 $ (268 ) 12 months or more 2,500 — 67,751 (53 ) Total $ 85,450 $ (940 ) $ 216,380 $ (321 ) Sales of Marketable Investment Securities We recognized de minimis gains and losses from the sales of our available-for-sale securities for each of the three months ended March 31, 2016 and 2015 . Proceeds from sales of our available-for-sale securities totaled $2.3 million and $7.5 million for the three months ended March 31, 2016 and 2015 , respectively. Fair Value Measurements Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of March 31, 2016 and December 31, 2015 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of March 31, 2016 December 31, 2015 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ 357,376 $ 190 $ 357,186 $ 303,152 $ 213 $ 302,939 Debt securities: Corporate bonds $ 205,960 $ — $ 205,960 $ 228,770 $ — $ 228,770 Other 11,772 — 11,772 6,276 — 6,276 Equity securities - strategic 17,929 17,929 — 18,297 18,297 — Total marketable investment securities $ 235,661 $ 17,929 $ 217,732 $ 253,343 $ 18,297 $ 235,046 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.

Trade Accounts Receivable

Trade Accounts Receivable	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Trade Accounts Receivable	Trade Accounts Receivable Our trade accounts receivable consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Trade accounts receivable $ 124,152 $ 127,946 Contracts in process, net 17,776 23,011 Total trade accounts receivable 141,928 150,957 Allowance for doubtful accounts (12,974 ) (11,447 ) Trade accounts receivable - DISH Network 19,706 21,258 Total trade accounts receivable, net $ 148,660 $ 160,768 As of March 31, 2016 and December 31, 2015 , progress billings offset against contracts in process amounted to $4.9 million and $2.9 million , respectively.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2016
Inventory, Net [Abstract]
Inventory	Inventory Our inventory consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Finished goods $ 39,056 $ 39,642 Raw materials 6,866 5,280 Work-in process 7,436 3,875 Total inventory $ 53,358 $ 48,797

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: As of Depreciable Life (In Years) March 31, 2016 December 31, 2015 (In thousands) Land — $ 13,377 $ 12,055 Buildings and improvements 1 - 30 79,152 73,949 Furniture, fixtures, equipment and other 1 - 12 379,123 371,889 Customer rental equipment 2 - 4 611,939 588,430 Satellites - owned 2 - 15 2,381,120 2,381,120 Satellites acquired under capital leases 10 - 15 665,518 665,518 Construction in progress — 410,444 311,083 Total property and equipment 4,540,673 4,404,044 Accumulated depreciation (2,229,836 ) (2,138,642 ) Property and equipment, net $ 2,310,837 $ 2,265,402 Construction in progress consisted of the following: As of March 31, December 31, (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 265,265 $ 187,253 Satellite related equipment 121,164 104,566 Other 24,015 19,264 Construction in progress $ 410,444 $ 311,083 Construction in progress includes the following owned and leased satellites under construction or undergoing in orbit testing as of March 31, 2016. Satellites Segment Expected Launch Date Eutelsat 65 West A (2) Hughes March 2016 (1) EchoStar 105/SES-11 ESS Fourth quarter of 2016 Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in March 2016 and is expected to be placed into service during the second quarter of 2016. (2) We entered into a satellite services agreement and made prepayments for certain capacity on this satellite once launched, but are not a party to the construction contract. Depreciation expense associated with our property and equipment consisted of the following: For the Three Months Ended March 31, 2016 2015 (In thousands) Satellites $ 46,965 $ 49,087 Furniture, fixtures, equipment and other 14,042 12,217 Customer rental equipment 29,137 30,187 Buildings and improvements 1,061 1,292 Total depreciation expense $ 91,205 $ 92,783 Satellites As of March 31, 2016 , we utilized in support of our operations, 16 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 their respective lease terms. We utilized one satellite that is accounted for as an operating lease and not included in property and equipment as of March 31, 2016 . Satellite Anomalies Our satellites may experience anomalies from time to time, some of which may have a significant adverse impact on their remaining useful lives, the commercial operation of the satellites or our operating results. We are not aware of any anomalies with respect to our owned or leased satellites that have had any such material adverse effect during the three months ended March 31, 2016. There can be no assurance, however, that anomalies will not have any such adverse impacts in the future. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	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 March 31, 2016 and December 31, 2015 , all of our goodwill was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Other Intangible Assets Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of March 31, 2016 December 31, 2015 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (196,068 ) $ 74,232 $ 270,300 $ (189,910 ) $ 80,390 Contract-based 4 64,800 (64,800 ) — 64,800 (64,800 ) — Technology-based 6 51,417 (41,423 ) 9,994 51,417 (39,281 ) 12,136 Trademark portfolio 20 29,700 (7,178 ) 22,522 29,700 (6,806 ) 22,894 Favorable leases 4 4,707 (4,707 ) — 4,707 (4,707 ) — Total other intangible assets $ 420,924 $ (314,176 ) $ 106,748 $ 420,924 $ (305,504 ) $ 115,420 Customer relationships are amortized predominantly in relation to the expected contribution of cash flow to the business over the life of the intangible asset. Other intangible assets are amortized on a straight-line basis over the periods the assets are expected to contribute to our cash flows. Intangible asset amortization expense, including amortization of regulatory authorizations with finite lives and externally marketed capitalized software, was $11.2 million and $15.2 million for the three months ended March 31, 2016 and 2015 , respectively.

Debt and Capital Lease Obligati

Debt and Capital Lease Obligations	3 Months Ended
	Mar. 31, 2016
Debt and Capital Lease Obligations [Abstract]
Debt and Capital Lease Obligations	Debt and Capital Lease Obligations The following table summarizes the carrying amounts and fair values of our debt: As of March 31, 2016 December 31, 2015 Effective Interest Rates Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,093,950 $ 990,000 $ 1,071,675 7 5/8% Senior Notes due 2021 8.062% 900,000 1,001,250 900,000 954,000 Other 12.1% - 14.3% 778 778 803 803 Less: Unamortized debt issuance costs (29,738 ) — (31,276 ) — Subtotal 1,861,040 $ 2,095,978 1,859,527 $ 2,026,478 Capital lease obligations 318,711 325,745 Total debt and capital lease obligations 2,179,751 2,185,272 Less: Current portion (1,891,286 ) (30,284 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 288,465 $ 2,154,988 The fair values of our debt are estimates categorized within Level 2 of the fair value hierarchy. Prior to our adoption of ASU 2015-03 in the first quarter of 2016 (see Note 2), we presented unamortized debt issuance costs in “Other noncurrent assets, net.” On May 6, 2016, we announced that we are offering to repurchase for cash all or any part of our outstanding 6 1/2% Senior Secured Notes due 2019 (the “Senior Secured Notes”) and our outstanding 7 5/8% Senior Notes due 2021 (the “Unsecured Notes” and, together with the “Senior Secured Notes,” the “Notes”) at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon to the date of repurchase. As previously disclosed and as discussed in Note 3 herein and in our most recently filed Annual Report on Form 10-K, we and EchoStar, entered into the Satellite and Tracking Stock Transaction and issued the HSS Tracking Stock to DISH Network. We recently became aware of a possible interpretation under which the Satellite and Tracking Stock Transaction may be considered to have constituted a Change of Control as defined under the respective indentures governing the Notes (the “Indentures”). Under the Indentures, a Change of Control occurs when EchoStar shall cease to beneficially own 100% of the Equity Interests (as defined in the respective Indentures) of HSS. The Indentures provide that, upon the occurrence of a Change of Control, we are required, within 30 days, to make an offer to each Holder (as defined in the respective Indentures) of the respective Notes to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon to the date of repurchase. The Notes have traded at prices well above 101% of their respective principal amounts at all times since the issuance of the HSS Tracking Stock. In addition, both prior to and following the Satellite and Tracking Stock Transaction, Mr. Charles W. Ergen held and exercised, and continues to hold and exercise, voting control over both DISH Network and EchoStar and therefore, the ultimate voting control as to all matters regarding the Equity Interests of HSS was not affected by the Satellite and Tracking Stock Transaction. Although we believe that a Change of Control or related default may not have occurred, we have nevertheless determined that it was prudent for us to make a Change of Control Offer as defined under each of the Indentures. Upon commencement of the Change of Control Offers on May 6, 2016, we do not believe there was any such continuing default under the Indentures. Under the Change of Control Offers, we will repurchase any Notes surrendered by the Holders thereof at a purchase price of 101% of the principal amount of the Notes plus accrued and unpaid interest, notwithstanding that the Notes have traded at a significantly higher price during the entire period since the issuance of the HSS Tracking Stock as part of the Satellite and Tracking Stock Transaction. Following the launch of the Change of Control Offers, in accordance with GAAP, the Notes are reported in “Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs” on our consolidated balance sheets as of March 31, 2016 as the Holders may require us to repurchase the Notes under the Change of Control Offers. Following the completion of the Change of Control Offers, which is currently expected to occur on or about June 8, 2016, but which we may extend to a date no later than July 5, 2016, any outstanding Notes are expected to again be reported in “Long-term debt and capital lease obligations, net of unamortized debt issuance costs” on our consolidated balance sheets. We expect that the Senior Secured Notes and the Unsecured Notes will remain outstanding until their maturity in 2019 and 2021, respectively. If any Notes are tendered for purchase in the Change of Control Offers, we expect to fund such purchases with available cash and external sources of financing that we believe are available to us. Any such financing is subject to prevailing market conditions.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	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 income and losses from investments for which we have a full valuation allowance, changes in tax laws and relative changes in unrecognized tax benefits. 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 $20.0 million and $18.0 million for the three months ended March 31, 2016 and 2015 , respectively. Our estimated effective income tax rate was 37.1% and 38.0% for the three months ended March 31, 2016 and 2015 , respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended March 31, 2016 and 2015 was primarily due to state taxes.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments As of March 31, 2016 , our satellite-related obligations were approximately $922.8 million . Our satellite-related obligations primarily include payments pursuant to agreements for the construction of the EchoStar XIX, EchoStar XXI, EchoStar XXIII, EchoStar 105/SES-11, and 63 West satellites, payments pursuant to launch services contracts and regulatory authorizations, executory costs for our capital lease satellites, costs under satellite service agreements and in-orbit incentives relating to certain satellites, as well as commitments for long-term satellite operating leases and satellite service arrangements. Contingencies Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that we offer. We may not be aware of all patents and other intellectual property rights that our products and services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components within our direct broadcast satellite (“DBS”) products and services. We cannot be certain that these persons do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement 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/or seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases described below, management is unable to predict with any degree of certainty the outcome or provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought or specified; (iii) damages are unsupported, indeterminate and/or exaggerated in management’s opinion; (iv) there is uncertainty as to the outcome of pending 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, operating results or cash flows, though there is no assurance that the resolution and outcomes of these proceedings, individually or in the aggregate, will not be material to our financial condition, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We intend to vigorously defend the proceedings against us. In the event that a court ultimately rules against us, we may be subject to adverse consequences, including, without limitation, substantial damages, which may include treble damages, fines, penalties, compensatory damages and/or other equitable or injunctive relief that could require us to materially modify our business operations or certain products or services that we offer to our consumers. In addition, adverse decisions against DISH Network in the proceedings described below could decrease the number of products and components we sell to DISH Network, which could have a material adverse effect on our business operations and our financial condition, results of operation and cash flows. 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. 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 April 2, 2015, Elbit filed an amended complaint removing Helm Hotels Group as a defendant, but making similar allegations against a new defendant, Country Home Investments, Inc. Over November 3 and 4, 2015, and January 22, 2016, the defendants filed petitions before the United States Patent and Trademark Office challenging the validity of the patents in suit and on April 13, 2016, the defendants answered Elbit’s complaint. By April 29, 2016, three of the four petitions were denied, with a decision regarding one petition still pending. 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.” On September 14, 2015, Realtime amended its complaint, additionally alleging infringement of United States Patent No. 9,116,908, entitled “System and Methods for Accelerated Data Storage and Retrieval.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Over April 29, 2016 and May 5, 2016, the defendants filed petitions before the United States Patent and Trademark Office challenging the validity of the asserted patents. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. 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, and in February 2016, the United States Patent and Trademark Office agreed to institute proceedings on our petitions. On February 25, 2016, the case was stayed pending resolution of these proceedings before the United States Patent and Trademark Office, and the Court vacated all pending court dates and deadlines. Two-Way Media Ltd On February 17, 2016, Two-Way Media Ltd (“TWM”) filed a complaint against EchoStar Corporation and its subsidiaries, EchoStar Technologies L.L.C., EchoStar Satellite Services L.L.C., and Sling Media, Inc., as well as against DISH Network Corporation, DISH DBS Corporation, DISH Network L.L.C., DISH Network Service L.L.C., Sling TV Holding L.L.C., Sling TV L.L.C., and Sling TV Purchasing L.L.C. TWM brought the suit in the United States District Court for the District of Colorado, alleging infringement of United States Patent Nos. 5,778,187; 5,983,005; 6,434,622; and 7,266,686, each entitled “Multicasting Method and Apparatus”; and 9,124,607, entitled “Methods and Systems for Playing Media.” TWM alleges that the SlingTV, Sling International, DISH Anywhere, and DISHWorld services, as well as the Slingbox units and DISH DVRs incorporating Slingbox technology, infringe the asserted patents. TWM is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Other In addition to the above actions, we are subject to various other legal proceedings and claims, which arise in the ordinary course of our business. As part of our ongoing operations, the Company is subject to various inspections, audits, inquiries, investigations and similar actions by third parties, as well as by governmental/regulatory authorities responsible for enforcing the laws and regulations to which the Company may be subject. Further, under the federal False Claims Act, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the federal government. Some states have adopted similar state whistleblower and false claims provisions. In addition, the Company from time to time receives inquiries from federal, state and foreign agencies regarding compliance with various laws and regulations. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. The Company indemnifies its directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for the Company. Additionally, in the normal course of its business, the Company enters into contracts pursuant to which the Company may make a variety of representations and warranties and indemnify the counterparty for certain losses. The Company’s possible exposure under these arrangements cannot be reasonably estimated as this involves the resolution of claims made, or future claims that may be made, against the Company or its officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker (“CODM”), who for HSS, is the Company’s Chief Executive Officer. Under this definition, we operate in two primary business segments, Hughes and EchoStar Satellite Services as described in Note 1 of these condensed consolidated financial statements. 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 months ended March 31, 2016 or 2015 . The following table presents revenue, capital expenditures, and EBITDA for each of our operating segments: Hughes EchoStar Satellite Services All Other and Eliminations Consolidated Total (In thousands) For the Three Months Ended March 31, 2016 External revenue $ 325,539 $ 102,815 $ 772 $ 429,126 Intersegment revenue $ 699 $ 174 $ (873 ) $ — Total revenue $ 326,238 $ 102,989 $ (101 ) $ 429,126 Capital expenditures $ 104,237 $ 24,720 $ — $ 128,957 EBITDA $ 99,468 $ 88,186 $ 4,792 $ 192,446 For the Three Months Ended March 31, 2015 External revenue $ 324,950 $ 125,198 $ 86 $ 450,234 Intersegment revenue $ 330 $ 200 $ (530 ) $ — Total revenue $ 325,280 $ 125,398 $ (444 ) $ 450,234 Capital expenditures $ 64,527 $ 27,783 $ — $ 92,310 EBITDA $ 91,273 $ 106,419 $ 1,289 $ 198,981 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 Ended March 31, 2016 2015 (In thousands) EBITDA $ 192,446 $ 198,981 Interest income and expense, net (36,117 ) (43,987 ) Depreciation and amortization (102,369 ) (108,014 ) Net income attributable to noncontrolling interests 111 369 Income before income taxes $ 54,071 $ 47,349

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	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. 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 $2.5 million and $3.4 million for the three months ended March 31, 2016 and 2015 , respectively. In addition, we occupy certain office space in buildings owned or leased 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. We participate in certain of EchoStar’s shared services arrangements for its subsidiaries in the ordinary course of business, including arrangements for payroll, accounts payable and cash management. From time to time in connection with the processing of transactions under these arrangements, we may pay or receive amounts attributable to other domestic subsidiaries of EchoStar. We report net payments on behalf of other subsidiaries in “Advances to affiliates, net” within current assets and we report net receipts on behalf of other subsidiaries in “Advances from affiliates, net” within current liabilities in our consolidated balance sheets. No repayment schedule for these net advances has been determined. EchoStar and certain of its subsidiaries have provided cash advances to certain of our foreign subsidiaries to fund certain expenditures pursuant to loan agreements that mature in 2017 and 2018. Advances under these agreements bear interest at annual rates ranging from one to three percent, subject to periodic adjustment based on the one-year U.S. LIBOR rate. We report amounts payable under these agreements in “Advances from affiliates” within noncurrent liabilities in our consolidated balance sheets. EchoStar XXI and EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for our launch license for EchoStar XXI and XXIII through the UK Space Agency, our subsidiary, Hughes Network Systems, Ltd. (“HNS Ltd.”) and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into agreements in June 2015 and March 2016 to transfer to HNS Ltd., EOC’s launch service contract for the EchoStar XXI and EchoStar XXIII satellites, respectively and to grant HNS Ltd. certain rights to control the in-orbit operations of these satellites. EOC retained ownership of the satellites, which are currently under construction and scheduled to be launched later in 2016. In March 2016, we recorded a $70.3 million addition to “Other noncurrent assets, net” and a corresponding increase in “Additional paid-in capital” in our consolidated balance sheet to reflect EOC’s cumulative payments under the EchoStar XXIII launch service contract prior to the transfer date. EOC also contracted to make future payments to HNS Ltd. for amounts that HNS Ltd. is required to pay under both launch service contracts. In March 2016, HNS Ltd. received $11.9 million in cash from EOC to fund a required payment under the EchoStar XXI launch service contract. We recorded the cash receipt as an increase in “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 3 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 3, in March 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 elected not to renew the satellite services agreement relative to the EchoStar I satellite. The agreement for the EchoStar I satellite expired pursuant to its terms effective November 2015. In December 2015, DISH Network renewed the satellite services agreement relative to the EchoStar VII satellite for one year to June 2017. 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 2014, this satellite services arrangement converted to a month-to-month service agreement with both parties having the right to terminate upon 30 days ’ notice. The agreement terminated in accordance with its terms effective 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) September 2017. 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. In December 2009, we entered into an initial ten -year transponder service agreement with DISH Network, pursuant to which DISH Network has received satellite services from us on the EchoStar XVI satellite since January 2013. Effective December 2012, we and DISH Network amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. 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. In the event that we or DISH Network does not exercise the six -year renewal option or DISH Network does not exercise the five -year renewal option, DISH Network has the option to purchase the EchoStar XVI satellite for a certain price. If DISH Network does not elect to purchase the EchoStar XVI satellite at that time, we may sell the EchoStar XVI satellite to a third party and DISH Network is required to pay us a certain amount in the event we are not able to sell the EchoStar XVI satellite for more than a certain amount. Nimiq 5 Agreement. In September 2009, we entered into a fifteen -year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). In September 2009, we also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with DISH Network, pursuant to which DISH Network receives satellite services from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, DISH Network makes certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service, and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire 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. In November 2008, we entered into a ten -year satellite service agreement with SES Latin America, which provides, among other things, for the provision by SES Latin America to us of service on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into a transponder service agreement with DISH Network, pursuant to which DISH Network receives satellite services on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we receive certain satellite services from DISH Network on five DBS transponders on the QuetzSat-1 satellite. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. Under the terms of our contractual arrangements with DISH Network, we began to provide service to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue to provide service through the remainder of the service term. Unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite, the initial service term will expire in November 2021. Upon expiration of the initial service term, DISH Network has the option to renew the agreement for the QuetzSat-1 satellite on a year-to-year basis through the end of life of the QuetzSat-1 satellite. Upon an in-orbit failure or end of life of the QuetzSat-1 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew this agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. In May 2012, we entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree west longitude orbital location (the “103 Spectrum Rights”). In June 2013, we and DISH Network entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which DISH Network may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, in May 2012, we also entered into a ten -year service agreement with Ciel pursuant to which we receive certain satellite services from Ciel on the SES-3 satellite at the 103 degree orbital location. In June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network receives certain satellite services from us on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, DISH Network makes certain monthly payments to us through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) June 2023. Upon in-orbit failure or end of life of the SES-3 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that DISH Network will exercise its option to receive service on a replacement satellite. Satellite and Tracking Stock Transaction. In February 2014, we entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) in March 2014, EchoStar and HSS issued shares of the Tracking Stock to DISH Network in exchange for five satellites owned by DISH Network (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) (including assumption of related in-orbit incentive obligations) and approximately $11.4 million in cash; and (ii) in March 2014, DISH Network began receiving certain satellite services on these five satellites from us. See Note 3 herein and in our most recent Form 10-K for further information. TT&C Agreement. Effective January 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we provide TT&C services to DISH Network for a period ending in December 2016 (the “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, in February 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 2014, we provide TT&C services for DISH Network’s D-1 satellite. TerreStar Agreement . In March 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar Networks Inc. (“TerreStar”). Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and our completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, 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 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. In February 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America, Inc. (“DBSD North America”). Prior to DISH Network’s acquisition of DBSD North America and our completion of the Hughes Acquisition, DBSD North America and HNS entered into 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 will expire in February 2017. RUS Implementation Agreement . In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH Network’s indirect, wholly-owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the United States Department of Agriculture to receive up to approximately $14.1 million in broadband stimulus grant funds (the “Grant Funds”). Effective November 2011, HNS and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which HNS provided certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. While the RUS Agreement expired in June 2013 when the Grant Funds were exhausted, HNS is required to continue providing services to DISH Broadband’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. “General and administrative expenses — DISH Network” 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 in January 2010 and were replaced by a Professional Services Agreement. In January 2010, 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 in January 2016 for an additional one -year period until January 2017 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. “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, in September 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 2008, Hughes Communications agreed to make available to Hughes Systique a term loan facility of up to $1.5 million and it funded an initial $0.5 million to Hughes Systique pursuant to the term loan facility. In 2009, Hughes Communications funded the remaining $1.0 million of its $1.5 million commitment under the term loan facility. The initial interest rate on the outstanding loans was 6% , payable annually, and the accrued and unpaid interest is added to the principal amount outstanding under the loan facility in certain circumstances. The loans are convertible into shares of Hughes Systique upon non-payment or an event of default. In May 2014, we amended the term loan facility to increase the interest rate from 6% to 8% , payable annually, to reflect then-current market conditions and extend the maturity date of the loans to May 1, 2015, and in April 2015, we extended the maturity date of the loans to May 1, 2016 on the same terms. In 2015, Hughes Systique repaid $1.5 million of the outstanding principal of the loan facility. In February 2016, Hughes Systique repaid $0.3 million of the outstanding principal of the loan facility. As of March 31, 2016, the principal outstanding amount of the loan facility was $0.3 million . In April 2016, Hughes Systique repaid in full the outstanding principal of the loan facility. In addition to our 44.0% ownership in Hughes Systique, Mr. Pradman Kaul, the President of Hughes Communications and a member of EchoStar’s board of directors, and his brother, who is the CEO and President of Hughes Systique, in the aggregate, own approximately 25.8% , on an undiluted basis, of Hughes Systique’s outstanding shares as of March 31, 2016. 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 March 31, 2016 and 2015 . As of March 31, 2016 and December 31, 2015 , we had trade accounts receivable from Dish Mexico of approximately $10.7 million and $10.6 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 for each of the three months ended March 31, 2016 and 2015 . As of March 31, 2016 and December 31, 2015 , we had trade accounts receivable from Deluxe of approximately $0.3 million and $0.1 million , respectively.

Supplemental Guarantor and Non-

Supplemental Guarantor and Non-Guarantor Financial Information	3 Months Ended
	Mar. 31, 2016
Supplemental Guarantor and Non-Guarantor Financial Information
Supplemental Guarantor an Non-Guarantor Financial Information	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 Unsecured Notes due 2021 (collectively, the “Notes”), which were issued on June 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 certain of our 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 March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 354,565 $ 50,577 $ 15,786 $ — $ 420,928 Marketable investment securities, at fair value 221,002 14,659 — — 235,661 Trade accounts receivable, net — 97,420 31,534 — 128,954 Trade accounts receivable - DISH Network, net — 19,706 — — 19,706 Inventory — 42,330 11,028 — 53,358 Advances to affiliates, net 10 879,821 6,244 (823,659 ) 62,416 Other current assets 11 24,818 21,874 — 46,703 Total current assets 575,588 1,129,331 86,466 (823,659 ) 967,726 Restricted cash and cash equivalents 12,603 7,500 699 — 20,802 Property and equipment, net — 2,180,818 130,019 — 2,310,837 Regulatory authorizations — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 106,748 — — 106,748 Investments in unconsolidated entities — 43,340 — — 43,340 Investment in subsidiaries 3,508,611 272,544 — (3,781,155 ) — Advances to affiliates 700 344 — (1,044 ) — Other noncurrent assets, net 264,129 136,238 157,550 (264,129 ) 293,788 Total assets $ 4,361,631 $ 4,852,694 $ 374,734 $ (4,869,987 ) $ 4,719,072 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 85,323 $ 12,531 $ — $ 97,854 Trade accounts payable - DISH Network — 6 — — 6 Current portion of long-term debt and capital lease obligations, net of debt issuance costs 1,860,262 29,634 1,390 — 1,891,286 Advances from affiliates, net 795,625 5,108 26,555 (823,659 ) 3,629 Accrued expenses and other 50,956 114,158 23,094 — 188,208 Total current liabilities 2,706,843 234,229 63,570 (823,659 ) 2,180,983 Long-term debt and capital lease obligations, net of unamortized debt issuance costs — 287,343 1,122 — 288,465 Advances from affiliates — — 29,142 (1,044 ) 28,098 Other non-current liabilities — 819,393 53 (264,129 ) 555,317 Total HSS shareholders’ equity (deficit) 1,654,788 3,511,729 269,426 (3,781,155 ) 1,654,788 Noncontrolling interests — — 11,421 — 11,421 Total liabilities and shareholders’ equity (deficit) $ 4,361,631 $ 4,852,694 $ 374,734 $ (4,869,987 ) $ 4,719,072 Condensed Consolidating Balance Sheet as of December 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 300,634 $ 55,767 $ 26,589 $ — $ 382,990 Marketable investment securities, at fair value 238,249 15,094 — — 253,343 Trade accounts receivable, net — 101,923 37,587 — 139,510 Trade accounts receivable - DISH Network, net — 21,258 — — 21,258 Advances to affiliates, net 10 807,341 6,244 (766,208 ) 47,387 Inventory — 39,948 8,849 — 48,797 Other current assets 40 24,565 26,890 — 51,495 Total current assets 538,933 1,065,896 106,159 (766,208 ) 944,780 Restricted cash and cash equivalents 11,985 7,500 655 — 20,140 Property and equipment, net — 2,181,495 83,907 — 2,265,402 Regulatory authorizations — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 115,420 — — 115,420 Investments in unconsolidated entities — 41,481 — — 41,481 Investment in subsidiaries 3,350,914 166,739 — (3,517,653 ) — Advances to affiliates 700 678 — (1,378 ) — Other noncurrent assets, net 254,486 135,970 72,255 (254,486 ) 208,225 Total assets $ 4,157,018 $ 4,691,010 $ 262,976 $ (4,539,725 ) $ 4,571,279 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 86,477 $ 11,171 $ — $ 97,648 Trade accounts payable - DISH Network — 19 — — 19 Current portion of long-term debt and capital lease obligations — 28,829 1,455 — 30,284 Advances from affiliates, net 739,810 5,307 24,863 (766,207 ) 3,773 Accrued expenses and other 28,154 130,532 22,550 — 181,236 Total current liabilities 767,964 251,164 60,039 (766,207 ) 312,960 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 1,858,724 295,060 1,204 — 2,154,988 Advances from affiliates — — 26,661 (1,378 ) 25,283 Other non-current liabilities — 790,843 52 (254,487 ) 536,408 Total HSS shareholders’ equity (deficit) 1,530,330 3,353,943 163,710 (3,517,653 ) 1,530,330 Noncontrolling interests — — 11,310 — 11,310 Total liabilities and shareholders’ equity (deficit) $ 4,157,018 $ 4,691,010 $ 262,976 $ (4,539,725 ) $ 4,571,279 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ 246,078 $ 29,778 $ (5,433 ) $ 270,423 Services and other revenue - DISH Network — 113,075 — — 113,075 Equipment revenue - other — 43,897 2,937 (3,975 ) 42,859 Equipment revenue - DISH Network — 2,769 — — 2,769 Total revenue — 405,819 32,715 (9,408 ) 429,126 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 108,448 21,274 (5,145 ) 124,577 Cost of sales - equipment (exclusive of depreciation and amortization) — 44,013 2,607 (3,512 ) 43,108 Selling, general and administrative expenses — 62,339 9,327 (751 ) 70,915 Research and development expenses — 6,932 — — 6,932 Depreciation and amortization — 100,842 1,527 — 102,369 Total costs and expenses — 322,574 34,735 (9,408 ) 347,901 Operating income — 83,245 (2,020 ) — 81,225 Other Income (Expense): Interest income 1,229 45 649 (9 ) 1,914 Interest expense, net of amounts capitalized (34,781 ) (4,469 ) 1,210 9 (38,031 ) Gains on marketable investment securities — 215 — — 215 Equity in earnings of unconsolidated affiliate — 1,859 — — 1,859 Equity in earnings (losses) of subsidiaries, net 51,079 (446 ) — (50,633 ) — Other, net 6,750 (207 ) 346 — 6,889 Total other income (expense), net 24,277 (3,003 ) 2,205 (50,633 ) (27,154 ) Income (loss) before income taxes 24,277 80,242 185 (50,633 ) 54,071 Income tax benefit (provision), net 9,642 (29,074 ) (609 ) — (20,041 ) Net income (loss) 33,919 51,168 (424 ) (50,633 ) 34,030 Less: Net income attributable to noncontrolling interests — — 111 — 111 Net income (loss) attributable to HSS $ 33,919 $ 51,168 $ (535 ) $ (50,633 ) $ 33,919 Comprehensive Income (Loss): Net income (loss) $ 33,919 $ 51,168 $ (424 ) $ (50,633 ) $ 34,030 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 7,709 — 7,709 Unrealized gains (losses) on available-for-sale securities and other 244 (650 ) 32 — (374 ) Equity in other comprehensive income (loss) of subsidiaries, net 7,091 7,741 — (14,832 ) — Total other comprehensive income (loss), net of tax 7,335 7,091 7,741 (14,832 ) 7,335 Comprehensive income (loss) 41,254 58,259 7,317 (65,465 ) 41,365 Less: Comprehensive income attributable to noncontrolling interests — — 111 — 111 Comprehensive income (loss) attributable to HSS $ 41,254 $ 58,259 $ 7,206 $ (65,465 ) $ 41,254 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended March 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 246,411 $ 36,531 $ (13,263 ) $ 269,679 Services and other revenue - DISH Network — 131,262 179 — 131,441 Equipment revenue — 44,854 5,981 (2,784 ) 48,051 Equipment revenue - DISH Network — 1,063 — — 1,063 Total revenue — 423,590 42,691 (16,047 ) 450,234 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 118,087 25,094 (13,263 ) 129,918 Cost of sales - equipment (exclusive of depreciation and amortization) — 43,056 4,590 (2,435 ) 45,211 Selling, general and administrative expenses — 62,894 8,000 (349 ) 70,545 Research and development expenses — 5,554 — — 5,554 Depreciation and amortization — 106,392 1,622 — 108,014 Total costs and expenses — 335,983 39,306 (16,047 ) 359,242 Operating income — 87,607 3,385 — 90,992 Other Income (Expense): Interest income 833 58 251 (43 ) 1,099 Interest expense, net of amounts capitalized (36,553 ) (8,935 ) 359 43 (45,086 ) Equity in earnings of unconsolidated affiliate — 1,397 — — 1,397 Equity in earnings (losses) of subsidiaries, net 54,188 1,033 — (55,221 ) — Other, net (3,750 ) 4,560 (1,863 ) — (1,053 ) Total other income (expense), net 14,718 (1,887 ) (1,253 ) (55,221 ) (43,643 ) Income (loss) before income taxes 14,718 85,720 2,132 (55,221 ) 47,349 Income tax benefit (provision), net 14,289 (31,444 ) (818 ) — (17,973 ) Net income (loss) 29,007 54,276 1,314 (55,221 ) 29,376 Less: Net income (loss) attributable to noncontrolling interests — — 369 — 369 Net income (loss) attributable to HSS $ 29,007 $ 54,276 $ 945 $ (55,221 ) $ 29,007 Comprehensive Income (Loss): Net income (loss) $ 29,007 $ 54,276 $ 1,314 $ (55,221 ) $ 29,376 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (10,234 ) — (10,234 ) Unrealized gains on available-for-sale securities and other 1,557 — — — 1,557 Equity in other comprehensive income (loss) of subsidiaries, net (10,234 ) (10,234 ) — 20,468 — Total other comprehensive income (loss), net of tax (8,677 ) (10,234 ) (10,234 ) 20,468 (8,677 ) Comprehensive income (loss) 20,330 44,042 (8,920 ) (34,753 ) 20,699 Less: Comprehensive income attributable to noncontrolling interests — — 369 — 369 Comprehensive income (loss) attributable to HSS $ 20,330 $ 44,042 $ (9,289 ) $ (34,753 ) $ 20,330 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 33,919 $ 51,168 $ (424 ) $ (50,633 ) $ 34,030 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — 100,842 1,527 — 102,369 Deferred tax provision (benefit) (9,642 ) 28,987 (114 ) — 19,231 Changes in operating assets and liabilities 34,354 (83,829 ) 9,940 50,633 11,098 Net cash flows from operating activities 58,631 97,168 10,929 — 166,728 Cash Flows from Investing Activities: Purchases of marketable investment securities (134,572 ) — — — (134,572 ) Sales and maturities of marketable investment securities 146,814 — — — 146,814 Purchases of property and equipment — (88,958 ) (39,999 ) — (128,957 ) Changes in restricted cash and cash equivalents (618 ) — (44 ) — (662 ) Investment in subsidiary (28,199 ) (28,199 ) — 56,398 — Payment for EchoStar XXI launch services — — (11,875 ) — (11,875 ) Expenditures for externally marketed software — (5,959 ) — — (5,959 ) Other, net — 340 — (340 ) — Net cash flows from investing activities (16,575 ) (122,776 ) (51,918 ) 56,058 (135,211 ) Cash Flows from Financing Activities: Proceeds from capital contribution from parent — 28,199 28,199 (56,398 ) — Capital contribution from EchoStar 11,875 — — — 11,875 Repayment of other debt and capital lease obligations — (6,912 ) (1,302 ) — (8,214 ) Advances from affiliates — — 2,504 — 2,504 Other, net — (869 ) 742 340 213 Net cash flows from financing activities 11,875 20,418 30,143 (56,058 ) 6,378 Effect of exchange rates on cash and cash equivalents — — 43 — 43 Net increase (decrease) in cash and cash equivalents 53,931 (5,190 ) (10,803 ) — 37,938 Cash and cash equivalents, at beginning of period 300,634 55,767 26,589 — 382,990 Cash and cash equivalents, at end of period $ 354,565 $ 50,577 $ 15,786 $ — $ 420,928 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 29,007 $ 54,276 $ 1,314 $ (55,221 ) $ 29,376 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — 106,392 1,622 — 108,014 Deferred tax provision (benefit) (14,289 ) 31,433 (109 ) — 17,035 Changes in operating assets and liabilities 49,902 (113,995 ) 1,328 55,221 (7,544 ) Net cash flows from operating activities 64,620 78,106 4,155 — 146,881 Cash Flows from Investing Activities: Purchases of marketable investment securities (90,594 ) — — — (90,594 ) Sales and maturities of marketable investment securities 52,683 — — — 52,683 Purchases of property and equipment — (79,881 ) (12,429 ) — (92,310 ) Expenditures for externally marketed software — (4,944 ) — — (4,944 ) Changes in restricted cash and cash equivalents (1,006 ) — (40 ) — (1,046 ) Investment in subsidiary (11,000 ) — — 11,000 — Other, net — (9 ) — — (9 ) Net cash flows from investing activities (49,917 ) (84,834 ) (12,469 ) 11,000 (136,220 ) Cash Flows from Financing Activities: Proceeds from capital contributions from parent — — 11,000 (11,000 ) — Repayment of long-term debt and capital lease obligations — (13,857 ) (1,181 ) — (15,038 ) Other, net (1 ) (819 ) 1,599 — 779 Net cash flows from financing activities (1 ) (14,676 ) 11,418 (11,000 ) (14,259 ) Effect of exchange rates on cash and cash equivalents — — (2,566 ) — (2,566 ) Net increase (decrease) in cash and cash equivalents 14,702 (21,404 ) 538 — (6,164 ) Cash and cash equivalents, at beginning of period 142,762 51,592 31,203 — 225,557 Cash and cash equivalents, at end of period $ 157,464 $ 30,188 $ 31,741 $ — $ 219,393

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
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, 2015 .
Principles of Consolidation	Principles of Consolidation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. For entities we control but do not wholly own, we record a noncontrolling interest within shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. 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 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 EchoStar’s stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods.
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 three months ended March 31, 2016 or 2015 . As of March 31, 2016 and December 31, 2015 , 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 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 March 31, 2016 and December 31, 2015 , 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 $78.5 million and $79.3 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 Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales.
Capitalized Software Costs	Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “Other noncurrent assets, net” in our 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.
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. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing, which amends guidance on identifying performance obligations and accounting for licenses of intellectual property. 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 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. We adopted ASU 2015-02 in the first quarter of 2016. The adoption of the standard did not impact our consolidated financial statements. 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. We adopted ASU 2015-03 in the first quarter of 2016. Upon adoption, we presented unamortized debt issuance cost previously reported in “ Other noncurrent assets, net ” with a carrying amount of $31.3 million as of December 31, 2015, as a reduction of our “Long-term debt and capital lease obligations, net of unamortized debt issuance costs” (see Note 10 for further discussion). In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments to be measured at fair value with changes in the fair value recognized through net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted for certain requirements. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or financing leases. ASU 2016-02 is effective for annual periods beginning after December 15, 2018 and interim periods within those periods. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies the accounting for share-based payment awards. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those periods. The update specifies requirements for retrospective, modified retrospective or prospective application for the various amendments contained in the update. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investments [Abstract]
Schedule of marketable investment securities and investments in unconsolidated entities	Our marketable investment securities and investments in unconsolidated entities consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 205,960 $ 228,770 Strategic equity securities 17,929 18,297 Other 11,772 6,276 Total marketable investment securities—current 235,661 253,343 Investments in unconsolidated entities—noncurrent: Cost method 15,438 15,438 Equity method 27,902 26,043 Total investments in unconsolidated entities—noncurrent 43,340 41,481 Total marketable investment securities and investments in unconsolidated entities $ 279,001 $ 294,824
Schedule of 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 March 31, 2016 Debt securities: Corporate bonds $ 206,028 $ 140 $ (208 ) $ 205,960 Other 11,764 8 — 11,772 Equity securities - strategic 8,037 67 (732 ) 7,372 Total marketable investment securities $ 225,829 $ 215 $ (940 ) $ 225,104 As of December 31, 2015 Debt securities: Corporate bonds $ 229,004 $ 2 $ (236 ) $ 228,770 Other 6,279 — (3 ) 6,276 Equity securities - strategic 8,037 — (82 ) 7,955 Total marketable investment securities $ 243,320 $ 2 $ (321 ) $ 243,001
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value	The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. 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 March 31, 2016 . As of March 31, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Less than 12 months $ 82,950 $ (940 ) $ 148,629 $ (268 ) 12 months or more 2,500 — 67,751 (53 ) Total $ 85,450 $ (940 ) $ 216,380 $ (321 )
Schedule of fair value measurements	Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of March 31, 2016 and December 31, 2015 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of March 31, 2016 December 31, 2015 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ 357,376 $ 190 $ 357,186 $ 303,152 $ 213 $ 302,939 Debt securities: Corporate bonds $ 205,960 $ — $ 205,960 $ 228,770 $ — $ 228,770 Other 11,772 — 11,772 6,276 — 6,276 Equity securities - strategic 17,929 17,929 — 18,297 18,297 — Total marketable investment securities $ 235,661 $ 17,929 $ 217,732 $ 253,343 $ 18,297 $ 235,046

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Schedule of trade accounts receivable	Our trade accounts receivable consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Trade accounts receivable $ 124,152 $ 127,946 Contracts in process, net 17,776 23,011 Total trade accounts receivable 141,928 150,957 Allowance for doubtful accounts (12,974 ) (11,447 ) Trade accounts receivable - DISH Network 19,706 21,258 Total trade accounts receivable, net $ 148,660 $ 160,768

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory, Net [Abstract]
Schedule of inventory	Our inventory consisted of the following: As of March 31, 2016 December 31, 2015 (In thousands) Finished goods $ 39,056 $ 39,642 Raw materials 6,866 5,280 Work-in process 7,436 3,875 Total inventory $ 53,358 $ 48,797

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Depreciation expense associated with our property and equipment consisted of the following: For the Three Months Ended March 31, 2016 2015 (In thousands) Satellites $ 46,965 $ 49,087 Furniture, fixtures, equipment and other 14,042 12,217 Customer rental equipment 29,137 30,187 Buildings and improvements 1,061 1,292 Total depreciation expense $ 91,205 $ 92,783 Property and equipment consisted of the following: As of Depreciable Life (In Years) March 31, 2016 December 31, 2015 (In thousands) Land — $ 13,377 $ 12,055 Buildings and improvements 1 - 30 79,152 73,949 Furniture, fixtures, equipment and other 1 - 12 379,123 371,889 Customer rental equipment 2 - 4 611,939 588,430 Satellites - owned 2 - 15 2,381,120 2,381,120 Satellites acquired under capital leases 10 - 15 665,518 665,518 Construction in progress — 410,444 311,083 Total property and equipment 4,540,673 4,404,044 Accumulated depreciation (2,229,836 ) (2,138,642 ) Property and equipment, net $ 2,310,837 $ 2,265,402
Schedule of construction in progress	Construction in progress consisted of the following: As of March 31, December 31, (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 265,265 $ 187,253 Satellite related equipment 121,164 104,566 Other 24,015 19,264 Construction in progress $ 410,444 $ 311,083 Construction in progress includes the following owned and leased satellites under construction or undergoing in orbit testing as of March 31, 2016. Satellites Segment Expected Launch Date Eutelsat 65 West A (2) Hughes March 2016 (1) EchoStar 105/SES-11 ESS Fourth quarter of 2016 Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in March 2016 and is expected to be placed into service during the second quarter of 2016. (2) We entered into a satellite services agreement and made prepayments for certain capacity on this satellite once launched, but are not a party to the construction contract.

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of other intangible assets subject to amortization	Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of March 31, 2016 December 31, 2015 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (196,068 ) $ 74,232 $ 270,300 $ (189,910 ) $ 80,390 Contract-based 4 64,800 (64,800 ) — 64,800 (64,800 ) — Technology-based 6 51,417 (41,423 ) 9,994 51,417 (39,281 ) 12,136 Trademark portfolio 20 29,700 (7,178 ) 22,522 29,700 (6,806 ) 22,894 Favorable leases 4 4,707 (4,707 ) — 4,707 (4,707 ) — Total other intangible assets $ 420,924 $ (314,176 ) $ 106,748 $ 420,924 $ (305,504 ) $ 115,420

Debt and Capital Lease Obliga27

Debt and Capital Lease Obligations (Tables)	3 Months Ended
	Mar. 31, 2016
Debt and Capital Lease Obligations [Abstract]
Schedule of carrying amounts and fair values of the entity's debt	The following table summarizes the carrying amounts and fair values of our debt: As of March 31, 2016 December 31, 2015 Effective Interest Rates Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,093,950 $ 990,000 $ 1,071,675 7 5/8% Senior Notes due 2021 8.062% 900,000 1,001,250 900,000 954,000 Other 12.1% - 14.3% 778 778 803 803 Less: Unamortized debt issuance costs (29,738 ) — (31,276 ) — Subtotal 1,861,040 $ 2,095,978 1,859,527 $ 2,026,478 Capital lease obligations 318,711 325,745 Total debt and capital lease obligations 2,179,751 2,185,272 Less: Current portion (1,891,286 ) (30,284 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 288,465 $ 2,154,988

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of revenue, EBITDA, and capital expenditures by operating segments	The following table presents revenue, capital expenditures, and EBITDA for each of our operating segments: Hughes EchoStar Satellite Services All Other and Eliminations Consolidated Total (In thousands) For the Three Months Ended March 31, 2016 External revenue $ 325,539 $ 102,815 $ 772 $ 429,126 Intersegment revenue $ 699 $ 174 $ (873 ) $ — Total revenue $ 326,238 $ 102,989 $ (101 ) $ 429,126 Capital expenditures $ 104,237 $ 24,720 $ — $ 128,957 EBITDA $ 99,468 $ 88,186 $ 4,792 $ 192,446 For the Three Months Ended March 31, 2015 External revenue $ 324,950 $ 125,198 $ 86 $ 450,234 Intersegment revenue $ 330 $ 200 $ (530 ) $ — Total revenue $ 325,280 $ 125,398 $ (444 ) $ 450,234 Capital expenditures $ 64,527 $ 27,783 $ — $ 92,310 EBITDA $ 91,273 $ 106,419 $ 1,289 $ 198,981
Schedule of reconciliation of EBITDA to reported income before income taxes	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 Ended March 31, 2016 2015 (In thousands) EBITDA $ 192,446 $ 198,981 Interest income and expense, net (36,117 ) (43,987 ) Depreciation and amortization (102,369 ) (108,014 ) Net income attributable to noncontrolling interests 111 369 Income before income taxes $ 54,071 $ 47,349

Supplemental Guarantor and No29

Supplemental Guarantor and Non-Guarantor Financial Information (Tables)	3 Months Ended
	Mar. 31, 2016
Supplemental Guarantor and Non-Guarantor Financial Information
Schedule of consolidating balance sheet	Condensed Consolidating Balance Sheet as of March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 354,565 $ 50,577 $ 15,786 $ — $ 420,928 Marketable investment securities, at fair value 221,002 14,659 — — 235,661 Trade accounts receivable, net — 97,420 31,534 — 128,954 Trade accounts receivable - DISH Network, net — 19,706 — — 19,706 Inventory — 42,330 11,028 — 53,358 Advances to affiliates, net 10 879,821 6,244 (823,659 ) 62,416 Other current assets 11 24,818 21,874 — 46,703 Total current assets 575,588 1,129,331 86,466 (823,659 ) 967,726 Restricted cash and cash equivalents 12,603 7,500 699 — 20,802 Property and equipment, net — 2,180,818 130,019 — 2,310,837 Regulatory authorizations — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 106,748 — — 106,748 Investments in unconsolidated entities — 43,340 — — 43,340 Investment in subsidiaries 3,508,611 272,544 — (3,781,155 ) — Advances to affiliates 700 344 — (1,044 ) — Other noncurrent assets, net 264,129 136,238 157,550 (264,129 ) 293,788 Total assets $ 4,361,631 $ 4,852,694 $ 374,734 $ (4,869,987 ) $ 4,719,072 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 85,323 $ 12,531 $ — $ 97,854 Trade accounts payable - DISH Network — 6 — — 6 Current portion of long-term debt and capital lease obligations, net of debt issuance costs 1,860,262 29,634 1,390 — 1,891,286 Advances from affiliates, net 795,625 5,108 26,555 (823,659 ) 3,629 Accrued expenses and other 50,956 114,158 23,094 — 188,208 Total current liabilities 2,706,843 234,229 63,570 (823,659 ) 2,180,983 Long-term debt and capital lease obligations, net of unamortized debt issuance costs — 287,343 1,122 — 288,465 Advances from affiliates — — 29,142 (1,044 ) 28,098 Other non-current liabilities — 819,393 53 (264,129 ) 555,317 Total HSS shareholders’ equity (deficit) 1,654,788 3,511,729 269,426 (3,781,155 ) 1,654,788 Noncontrolling interests — — 11,421 — 11,421 Total liabilities and shareholders’ equity (deficit) $ 4,361,631 $ 4,852,694 $ 374,734 $ (4,869,987 ) $ 4,719,072 Condensed Consolidating Balance Sheet as of December 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 300,634 $ 55,767 $ 26,589 $ — $ 382,990 Marketable investment securities, at fair value 238,249 15,094 — — 253,343 Trade accounts receivable, net — 101,923 37,587 — 139,510 Trade accounts receivable - DISH Network, net — 21,258 — — 21,258 Advances to affiliates, net 10 807,341 6,244 (766,208 ) 47,387 Inventory — 39,948 8,849 — 48,797 Other current assets 40 24,565 26,890 — 51,495 Total current assets 538,933 1,065,896 106,159 (766,208 ) 944,780 Restricted cash and cash equivalents 11,985 7,500 655 — 20,140 Property and equipment, net — 2,181,495 83,907 — 2,265,402 Regulatory authorizations — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 115,420 — — 115,420 Investments in unconsolidated entities — 41,481 — — 41,481 Investment in subsidiaries 3,350,914 166,739 — (3,517,653 ) — Advances to affiliates 700 678 — (1,378 ) — Other noncurrent assets, net 254,486 135,970 72,255 (254,486 ) 208,225 Total assets $ 4,157,018 $ 4,691,010 $ 262,976 $ (4,539,725 ) $ 4,571,279 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 86,477 $ 11,171 $ — $ 97,648 Trade accounts payable - DISH Network — 19 — — 19 Current portion of long-term debt and capital lease obligations — 28,829 1,455 — 30,284 Advances from affiliates, net 739,810 5,307 24,863 (766,207 ) 3,773 Accrued expenses and other 28,154 130,532 22,550 — 181,236 Total current liabilities 767,964 251,164 60,039 (766,207 ) 312,960 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 1,858,724 295,060 1,204 — 2,154,988 Advances from affiliates — — 26,661 (1,378 ) 25,283 Other non-current liabilities — 790,843 52 (254,487 ) 536,408 Total HSS shareholders’ equity (deficit) 1,530,330 3,353,943 163,710 (3,517,653 ) 1,530,330 Noncontrolling interests — — 11,310 — 11,310 Total liabilities and shareholders’ equity (deficit) $ 4,157,018 $ 4,691,010 $ 262,976 $ (4,539,725 ) $ 4,571,279
Schedule of consolidating statement of operations and comprehensive income (loss)	Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - other $ — $ 246,078 $ 29,778 $ (5,433 ) $ 270,423 Services and other revenue - DISH Network — 113,075 — — 113,075 Equipment revenue - other — 43,897 2,937 (3,975 ) 42,859 Equipment revenue - DISH Network — 2,769 — — 2,769 Total revenue — 405,819 32,715 (9,408 ) 429,126 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 108,448 21,274 (5,145 ) 124,577 Cost of sales - equipment (exclusive of depreciation and amortization) — 44,013 2,607 (3,512 ) 43,108 Selling, general and administrative expenses — 62,339 9,327 (751 ) 70,915 Research and development expenses — 6,932 — — 6,932 Depreciation and amortization — 100,842 1,527 — 102,369 Total costs and expenses — 322,574 34,735 (9,408 ) 347,901 Operating income — 83,245 (2,020 ) — 81,225 Other Income (Expense): Interest income 1,229 45 649 (9 ) 1,914 Interest expense, net of amounts capitalized (34,781 ) (4,469 ) 1,210 9 (38,031 ) Gains on marketable investment securities — 215 — — 215 Equity in earnings of unconsolidated affiliate — 1,859 — — 1,859 Equity in earnings (losses) of subsidiaries, net 51,079 (446 ) — (50,633 ) — Other, net 6,750 (207 ) 346 — 6,889 Total other income (expense), net 24,277 (3,003 ) 2,205 (50,633 ) (27,154 ) Income (loss) before income taxes 24,277 80,242 185 (50,633 ) 54,071 Income tax benefit (provision), net 9,642 (29,074 ) (609 ) — (20,041 ) Net income (loss) 33,919 51,168 (424 ) (50,633 ) 34,030 Less: Net income attributable to noncontrolling interests — — 111 — 111 Net income (loss) attributable to HSS $ 33,919 $ 51,168 $ (535 ) $ (50,633 ) $ 33,919 Comprehensive Income (Loss): Net income (loss) $ 33,919 $ 51,168 $ (424 ) $ (50,633 ) $ 34,030 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 7,709 — 7,709 Unrealized gains (losses) on available-for-sale securities and other 244 (650 ) 32 — (374 ) Equity in other comprehensive income (loss) of subsidiaries, net 7,091 7,741 — (14,832 ) — Total other comprehensive income (loss), net of tax 7,335 7,091 7,741 (14,832 ) 7,335 Comprehensive income (loss) 41,254 58,259 7,317 (65,465 ) 41,365 Less: Comprehensive income attributable to noncontrolling interests — — 111 — 111 Comprehensive income (loss) attributable to HSS $ 41,254 $ 58,259 $ 7,206 $ (65,465 ) $ 41,254 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended March 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 246,411 $ 36,531 $ (13,263 ) $ 269,679 Services and other revenue - DISH Network — 131,262 179 — 131,441 Equipment revenue — 44,854 5,981 (2,784 ) 48,051 Equipment revenue - DISH Network — 1,063 — — 1,063 Total revenue — 423,590 42,691 (16,047 ) 450,234 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 118,087 25,094 (13,263 ) 129,918 Cost of sales - equipment (exclusive of depreciation and amortization) — 43,056 4,590 (2,435 ) 45,211 Selling, general and administrative expenses — 62,894 8,000 (349 ) 70,545 Research and development expenses — 5,554 — — 5,554 Depreciation and amortization — 106,392 1,622 — 108,014 Total costs and expenses — 335,983 39,306 (16,047 ) 359,242 Operating income — 87,607 3,385 — 90,992 Other Income (Expense): Interest income 833 58 251 (43 ) 1,099 Interest expense, net of amounts capitalized (36,553 ) (8,935 ) 359 43 (45,086 ) Equity in earnings of unconsolidated affiliate — 1,397 — — 1,397 Equity in earnings (losses) of subsidiaries, net 54,188 1,033 — (55,221 ) — Other, net (3,750 ) 4,560 (1,863 ) — (1,053 ) Total other income (expense), net 14,718 (1,887 ) (1,253 ) (55,221 ) (43,643 ) Income (loss) before income taxes 14,718 85,720 2,132 (55,221 ) 47,349 Income tax benefit (provision), net 14,289 (31,444 ) (818 ) — (17,973 ) Net income (loss) 29,007 54,276 1,314 (55,221 ) 29,376 Less: Net income (loss) attributable to noncontrolling interests — — 369 — 369 Net income (loss) attributable to HSS $ 29,007 $ 54,276 $ 945 $ (55,221 ) $ 29,007 Comprehensive Income (Loss): Net income (loss) $ 29,007 $ 54,276 $ 1,314 $ (55,221 ) $ 29,376 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (10,234 ) — (10,234 ) Unrealized gains on available-for-sale securities and other 1,557 — — — 1,557 Equity in other comprehensive income (loss) of subsidiaries, net (10,234 ) (10,234 ) — 20,468 — Total other comprehensive income (loss), net of tax (8,677 ) (10,234 ) (10,234 ) 20,468 (8,677 ) Comprehensive income (loss) 20,330 44,042 (8,920 ) (34,753 ) 20,699 Less: Comprehensive income attributable to noncontrolling interests — — 369 — 369 Comprehensive income (loss) attributable to HSS $ 20,330 $ 44,042 $ (9,289 ) $ (34,753 ) $ 20,330
Schedule of consolidating statement of cash flows	Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 33,919 $ 51,168 $ (424 ) $ (50,633 ) $ 34,030 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — 100,842 1,527 — 102,369 Deferred tax provision (benefit) (9,642 ) 28,987 (114 ) — 19,231 Changes in operating assets and liabilities 34,354 (83,829 ) 9,940 50,633 11,098 Net cash flows from operating activities 58,631 97,168 10,929 — 166,728 Cash Flows from Investing Activities: Purchases of marketable investment securities (134,572 ) — — — (134,572 ) Sales and maturities of marketable investment securities 146,814 — — — 146,814 Purchases of property and equipment — (88,958 ) (39,999 ) — (128,957 ) Changes in restricted cash and cash equivalents (618 ) — (44 ) — (662 ) Investment in subsidiary (28,199 ) (28,199 ) — 56,398 — Payment for EchoStar XXI launch services — — (11,875 ) — (11,875 ) Expenditures for externally marketed software — (5,959 ) — — (5,959 ) Other, net — 340 — (340 ) — Net cash flows from investing activities (16,575 ) (122,776 ) (51,918 ) 56,058 (135,211 ) Cash Flows from Financing Activities: Proceeds from capital contribution from parent — 28,199 28,199 (56,398 ) — Capital contribution from EchoStar 11,875 — — — 11,875 Repayment of other debt and capital lease obligations — (6,912 ) (1,302 ) — (8,214 ) Advances from affiliates — — 2,504 — 2,504 Other, net — (869 ) 742 340 213 Net cash flows from financing activities 11,875 20,418 30,143 (56,058 ) 6,378 Effect of exchange rates on cash and cash equivalents — — 43 — 43 Net increase (decrease) in cash and cash equivalents 53,931 (5,190 ) (10,803 ) — 37,938 Cash and cash equivalents, at beginning of period 300,634 55,767 26,589 — 382,990 Cash and cash equivalents, at end of period $ 354,565 $ 50,577 $ 15,786 $ — $ 420,928 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2015 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 29,007 $ 54,276 $ 1,314 $ (55,221 ) $ 29,376 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — 106,392 1,622 — 108,014 Deferred tax provision (benefit) (14,289 ) 31,433 (109 ) — 17,035 Changes in operating assets and liabilities 49,902 (113,995 ) 1,328 55,221 (7,544 ) Net cash flows from operating activities 64,620 78,106 4,155 — 146,881 Cash Flows from Investing Activities: Purchases of marketable investment securities (90,594 ) — — — (90,594 ) Sales and maturities of marketable investment securities 52,683 — — — 52,683 Purchases of property and equipment — (79,881 ) (12,429 ) — (92,310 ) Expenditures for externally marketed software — (4,944 ) — — (4,944 ) Changes in restricted cash and cash equivalents (1,006 ) — (40 ) — (1,046 ) Investment in subsidiary (11,000 ) — — 11,000 — Other, net — (9 ) — — (9 ) Net cash flows from investing activities (49,917 ) (84,834 ) (12,469 ) 11,000 (136,220 ) Cash Flows from Financing Activities: Proceeds from capital contributions from parent — — 11,000 (11,000 ) — Repayment of long-term debt and capital lease obligations — (13,857 ) (1,181 ) — (15,038 ) Other, net (1 ) (819 ) 1,599 — 779 Net cash flows from financing activities (1 ) (14,676 ) 11,418 (11,000 ) (14,259 ) Effect of exchange rates on cash and cash equivalents — — (2,566 ) — (2,566 ) Net increase (decrease) in cash and cash equivalents 14,702 (21,404 ) 538 — (6,164 ) Cash and cash equivalents, at beginning of period 142,762 51,592 31,203 — 225,557 Cash and cash equivalents, at end of period $ 157,464 $ 30,188 $ 31,741 $ — $ 219,393

Organization and Business Act30

Organization and Business Activities (Details) - segment	Mar. 02, 2014	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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%

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value Measurements
Amount of transfers between levels within the fair value hierarchy	$ 0	$ 0
Research and Development
Research and development expenses	6,932,000	5,554,000
Capitalized Software Costs
Net carrying amount of externally marketed software	66,400,000		$ 62,800,000
Capitalized costs related to development of externally marketed software	5,900,000	5,000,000
Amortization expense relating to externally marketed software	$ 2,300,000	1,900,000
ASU 2015-03 | Other noncurrent assets, net
New Accounting Pronouncements
Unamortized debt issuance costs			(31,300,000)
ASU 2015-03 | Long-term debt and capital lease obligations, net of unamortized debt issuance costs
New Accounting Pronouncements
Unamortized debt issuance costs			31,300,000
Maximum
Capitalized Software Costs
Useful life of the software	5 years
Weighted Average
Capitalized Software Costs
Useful life of the software	3 years
Cost of Sales
Research and Development
Research and development expenses	$ 2,800,000	5,700,000
Research and Development Expense
Research and Development
Research and development expenses	6,900,000	$ 5,600,000
Level 2
Fair Value Measurements
Orbital incentive obligations	$ 78,500,000		$ 79,300,000

Hughes Retail Preferred Track32

Hughes Retail Preferred Tracking Stock (Details) - Satellite and Tracking Stock Transaction $ in Millions	Mar. 02, 2014USD ($)satellite	Mar. 02, 2014satellite	Mar. 31, 2016satellite
HSS | Hughes Retail Group
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	20.00%
DISH Network | Hughes Retail Group | Hughes Retail Preferred Tracking Stock
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	80.00%
DISH Network | EchoStar and HSSC
Hughes Retail Preferred Tracking Stock
Number of satellites transferred	5	5	5
Proceeds from issuance of Hughes Retail Preferred Tracking Stock | $	$ 11.4
DISH Network | HSS
Hughes Retail Preferred Tracking Stock
Number of satellites received	2
DISH Network | HSS | Hughes Retail Group
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	28.11%
DISH Network | EchoStar | Hughes Retail Group
Hughes Retail Preferred Tracking Stock
Percentage of economic interest held	51.89%

Other Comprehensive Income (L33

Other Comprehensive Income (Loss) and Related Tax Effect s (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract]
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	$ 46,100,000		$ 53,800,000

Investment Securities (Details)

Investment Securities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Marketable investment securities - current, at fair value:
Marketable investment securities	$ 235,661,000		$ 253,343,000
Investments in unconsolidated entities - noncurrent:
Cost method	15,438,000		15,438,000
Equity method	27,902,000		26,043,000
Total investments in unconsolidated entities - noncurrent	43,340,000		41,481,000
Total marketable investment securities and investments in unconsolidated entities	279,001,000		294,824,000
Corporate bonds
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	205,960,000		228,770,000
Strategic equity securities
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	17,929,000		18,297,000
Dividend income from strategic equity securities	0	$ 0
Fair value of trading securities	10,600,000
Strategic equity securities | Gains on marketable investment securities
Marketable investment securities - current, at fair value:
Unrealized holding gain on common stock in trading securities portfolio	200,000	$ 0
Other
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	$ 11,772,000		$ 6,276,000

Investment Securities (Details

Investment Securities (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	$ 225,829	$ 243,320
Unrealized Gains	215	2
Unrealized Losses	(940)	(321)
Estimated Fair Value	225,104	243,001
Corporate bonds
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	206,028	229,004
Unrealized Gains	140	2
Unrealized Losses	(208)	(236)
Estimated Fair Value	205,960	228,770
Other
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	11,764	6,279
Unrealized Gains	8	0
Unrealized Losses	0	(3)
Estimated Fair Value	11,772	6,276
Strategic equity securities
Unrealized Gains (Losses) on Marketable Investment Securities
Amortized Cost	8,037	8,037
Unrealized Gains	67	0
Unrealized Losses	(732)	(82)
Estimated Fair Value	$ 7,372	$ 7,955

Investment Securities (Detail36

Investment Securities (Details 3) $ in Millions	Mar. 31, 2016USD ($)
Contractual maturities of debt securities
Debt securities with contractual maturities of one year or less	$ 185.9
Debt securities with contractual maturities exceeding one year	$ 31.8

Investment Securities (Detail37

Investment Securities (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value
Less than 12 months	$ 82,950		$ 148,629
12 months or more	2,500		67,751
Total	85,450		216,380
Unrealized Losses
Less than 12 months	(940)		(268)
12 months or more	0		(53)
Total	(940)		$ (321)
Proceeds from sales of available-for-sale securities	$ 2,300	$ 7,500

Investment Securities (Detail38

Investment Securities (Details 5) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Corporate bonds
Fair value of marketable securities
Debt securities	$ 205,960,000	$ 228,770,000
Other
Fair value of marketable securities
Debt securities	11,772,000	6,276,000
Strategic equity securities
Fair value of marketable securities
Equity securities	17,929,000	18,297,000
Level 3
Fair value of marketable securities
Fair value of investments	0	0
Fair value measurements on recurring basis
Fair value of marketable securities
Cash equivalents	357,376,000	303,152,000
Total marketable investment securities	235,661,000	253,343,000
Fair value measurements on recurring basis | Corporate bonds
Fair value of marketable securities
Debt securities	205,960,000	228,770,000
Fair value measurements on recurring basis | Other
Fair value of marketable securities
Debt securities	11,772,000	6,276,000
Fair value measurements on recurring basis | Strategic equity securities
Fair value of marketable securities
Equity securities	17,929,000	18,297,000
Fair value measurements on recurring basis | Level 1
Fair value of marketable securities
Cash equivalents	190,000	213,000
Total marketable investment securities	17,929,000	18,297,000
Fair value measurements on recurring basis | Level 1 | Corporate bonds
Fair value of marketable securities
Debt securities	0	0
Fair value measurements on recurring basis | Level 1 | Other
Fair value of marketable securities
Debt securities	0	0
Fair value measurements on recurring basis | Level 1 | Strategic equity securities
Fair value of marketable securities
Equity securities	17,929,000	18,297,000
Fair value measurements on recurring basis | Level 2
Fair value of marketable securities
Cash equivalents	357,186,000	302,939,000
Total marketable investment securities	217,732,000	235,046,000
Fair value measurements on recurring basis | Level 2 | Corporate bonds
Fair value of marketable securities
Debt securities	205,960,000	228,770,000
Fair value measurements on recurring basis | Level 2 | Other
Fair value of marketable securities
Debt securities	11,772,000	6,276,000
Fair value measurements on recurring basis | Level 2 | Strategic equity securities
Fair value of marketable securities
Equity securities	$ 0	$ 0

Trade Accounts Receivable (Deta

Trade Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Trade accounts receivable
Total trade accounts receivable	$ 141,928	$ 150,957
Allowance for doubtful accounts	(12,974)	(11,447)
Trade accounts receivable - DISH Network	19,706	21,258
Total trade accounts receivable, net	148,660	160,768
Progress billings offset against contracts in process	4,900	2,900
Trade accounts receivable
Trade accounts receivable
Total trade accounts receivable	124,152	127,946
Contracts in process, net
Trade accounts receivable
Total trade accounts receivable	$ 17,776	$ 23,011

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Finished goods	$ 39,056	$ 39,642
Raw materials	6,866	5,280
Work-in process	7,436	3,875
Total inventory	$ 53,358	$ 48,797

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Property and equipment
Total property and equipment	$ 4,540,673	$ 4,404,044
Accumulated depreciation	(2,229,836)	(2,138,642)
Property and equipment, net	2,310,837	2,265,402
Land
Property and equipment
Total property and equipment	13,377	12,055
Buildings and improvements
Property and equipment
Total property and equipment	$ 79,152	73,949
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	$ 379,123	371,889
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	$ 611,939	588,430
Customer rental equipment | Minimum
Property and equipment
Depreciable Life	2 years
Customer rental equipment | Maximum
Property and equipment
Depreciable Life	4 years
Satellites - owned
Property and equipment
Total property and equipment	$ 2,381,120	2,381,120
Satellites - owned | Minimum
Property and equipment
Depreciable Life	2 years
Satellites - owned | Maximum
Property and equipment
Depreciable Life	15 years
Satellites acquired under capital leases
Property and equipment
Total property and equipment	$ 665,518	665,518
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	$ 410,444	$ 311,083

Property and Equipment (Detai42

Property and Equipment (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property and equipment
Construction in progress	$ 410,444	$ 311,083
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs
Property and equipment
Construction in progress	265,265	187,253
Satellite related equipment
Property and equipment
Construction in progress	121,164	104,566
Other
Property and equipment
Construction in progress	$ 24,015	$ 19,264

Property and Equipment (Detai43

Property and Equipment (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Depreciation expense
Total depreciation expense	$ 91,205	$ 92,783
Satellites
Depreciation expense
Total depreciation expense	46,965	49,087
Furniture, fixtures, equipment and other
Depreciation expense
Total depreciation expense	14,042	12,217
Customer rental equipment
Depreciation expense
Total depreciation expense	29,137	30,187
Buildings and improvements
Depreciation expense
Total depreciation expense	$ 1,061	$ 1,292

Property and Equipment (Detai44

Property and Equipment (Details 4) - Satellites	3 Months Ended
	Mar. 31, 2016satellite
Property and equipment
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator	16
Number of satellites utilized under capital lease	2
Number of satellites utilized under operating lease	1

Goodwill and Other Intangible45

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Goodwill and Other Intangible Assets
Cost	$ 420,924		$ 420,924
Accumulated Amortization	(314,176)		(305,504)
Carrying Amount	106,748		115,420
Amortization expense	11,200	$ 15,200
Customer relationships
Goodwill and Other Intangible Assets
Cost	270,300		270,300
Accumulated Amortization	(196,068)		(189,910)
Carrying Amount	$ 74,232		80,390
Customer relationships | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life	8 years
Contract-based
Goodwill and Other Intangible Assets
Cost	$ 64,800		64,800
Accumulated Amortization	(64,800)		(64,800)
Carrying Amount	$ 0		0
Contract-based | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life	4 years
Technology-based
Goodwill and Other Intangible Assets
Cost	$ 51,417		51,417
Accumulated Amortization	(41,423)		(39,281)
Carrying Amount	$ 9,994		12,136
Technology-based | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life	6 years
Trademark portfolio
Goodwill and Other Intangible Assets
Cost	$ 29,700		29,700
Accumulated Amortization	(7,178)		(6,806)
Carrying Amount	$ 22,522		22,894
Trademark portfolio | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life	20 years
Favorable leases
Goodwill and Other Intangible Assets
Cost	$ 4,707		4,707
Accumulated Amortization	(4,707)		(4,707)
Carrying Amount	$ 0		$ 0
Favorable leases | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life	4 years

Debt and Capital Lease Obliga46

Debt and Capital Lease Obligations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt
Carrying Amount	$ 1,861,040,000	$ 1,859,527,000
Fair Value	2,095,978,000	2,026,478,000
Capital lease obligations	318,711,000	325,745,000
Total debt and capital lease obligations	2,179,751,000	2,185,272,000
Less: Current portion	(1,891,286,000)	(30,284,000)
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	$ 288,465,000	$ 2,154,988,000
6 1/2% Senior Secured Notes due 2019
Debt
Interest Rates	6.50%	6.50%
Effective Interest Rates	6.959%
Carrying Amount	$ 990,000,000	$ 990,000,000
Fair Value	$ 1,093,950,000	$ 1,071,675,000
Purchase price as a percent of the aggregate principal	101.00%
Beneficial ownership percentage required to avoid Change of Control	100.00%
Offering period after Change of Control	30 days
Minimum offering amount per holder in Change of Control	$ 2,000
Integral multiple to add to excess of the minimum offering per holder in Change of Control	$ 1,000
7 5/8% Senior Notes due 2021
Debt
Interest Rates	7.625%	7.625%
Effective Interest Rates	8.062%
Carrying Amount	$ 900,000,000	$ 900,000,000
Fair Value	$ 1,001,250,000	954,000,000
Purchase price as a percent of the aggregate principal	101.00%
Other
Debt
Carrying Amount	$ 778,000	803,000
Fair Value	778,000	803,000
Unamortized debt issuance costs
Debt
Less: Unamortized debt issuance costs	$ (29,738,000)	$ (31,276,000)
Minimum | Other
Debt
Effective Interest Rates	12.10%
Maximum | Other
Debt
Effective Interest Rates	14.30%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision, net	$ (20,041)	$ (17,973)
Effective income tax rate	37.10%	38.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2016USD ($)
Satellite-related obligations
Other Commitments [Line Items]
Satellite-related obligations	$ 922.8

Commitments and Contingencies49

Commitments and Contingencies (Details 2)	3 Months Ended
	Jan. 22, 2016petition	Apr. 29, 2016petition	Oct. 01, 2013subsidiary
Caltech
Loss Contingencies [Line Items]
Number of subsidiaries against which lawsuit was filed | subsidiary			2
Elbit
Loss Contingencies [Line Items]
Number of petitions challenging the validity of a patent	4
Elbit | Subsequent Event
Loss Contingencies [Line Items]
Number of petitions denied		3
Number of petitions pending		1

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)
Segment Reporting [Abstract]
Number of business segments | segment	2
Segment Reporting
Total revenue	$ 429,126	$ 450,234
Capital expenditures	128,957	92,310
EBITDA	192,446	198,981
Interest income and expense, net	(36,117)	(43,987)
Depreciation and amortization	(102,369)	(108,014)
Net income attributable to noncontrolling interests	111	369
Income before income taxes	54,071	47,349
Hughes Business
Segment Reporting
Total revenue	325,539	324,950
Hughes Business | Intersegment
Segment Reporting
Total revenue	699	330
Hughes Business | Operating segments
Segment Reporting
Total revenue	326,238	325,280
Capital expenditures	104,237	64,527
EBITDA	99,468	91,273
EchoStar Satellite Services Business
Segment Reporting
Total revenue	102,815	125,198
EchoStar Satellite Services Business | Intersegment
Segment Reporting
Total revenue	174	200
EchoStar Satellite Services Business | Operating segments
Segment Reporting
Total revenue	102,989	125,398
Capital expenditures	24,720	27,783
EBITDA	88,186	106,419
All other and eliminations
Segment Reporting
Total revenue	772	86
All other and eliminations | Intersegment
Segment Reporting
Total revenue	(873)	(530)
All other and eliminations | All Other and Eliminations
Segment Reporting
Total revenue	(101)	(444)
Capital expenditures	0	0
EBITDA	$ 4,792	$ 1,289

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands

Mar. 02, 2014satellite

Mar. 02, 2014USD ($)satellite

Oct. 02, 2012

Mar. 31, 2016USD ($)

Jan. 31, 2016

Dec. 31, 2015

Dec. 31, 2012

May. 31, 2012

Sep. 30, 2009transponder

Nov. 30, 2008transponder

Mar. 31, 2016USD ($)satellite

Mar. 31, 2015USD ($)

Dec. 31, 2009

Feb. 28, 2013transponder

Mar. 31, 2012

Sep. 30, 2010USD ($)

Related party transactions

Transfer of EchoStar XXIII launch contract from EchoStar to HNS

$ 70,300

$ 0

Capital contribution from EchoStar

$ 11,875

0

Hughes Broadband Distribution Agreement

Related party transactions

Agreement term

5 years

Required minimum notice for termination of agreement

180 days

Automatic renewal period

1 year

EchoStar

Related party transactions

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

30 days

Expense recorded for services provided

$ 2,500

$ 3,400

EchoStar Operating | Other noncurrent assets, net

Related party transactions

Transfer of EchoStar XXIII launch contract from EchoStar to HNS

$ 70,300

EchoStar Operating | Additional paid-in-capital

Related party transactions

Capital contribution from EchoStar

$ 11,900

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%

DISH Network | Echo Star V I I

Related party transactions

Agreement term

1 year

DISH Network | Echo Star V I I I Satellite Capacity Leased To DISH Network

Related party transactions

Required minimum notice for termination of agreement

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 | transponder

32

DISH Network | Quetz Sat-1 Agreement

Related party transactions

Number of DBS transponders currently receiving services | transponder

24

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

5

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

100.00%

DISH Network | RUS Implementation Agreement

Related party transactions

Grants receivable by related party

$ 14,100

DISH Network | EchoStar Professional Services Agreement

Related party transactions

Agreement term

1 year

Required minimum notice for termination of agreement

60 days

Automatic renewal period

1 year

Required minimum notice for termination of individual service

30 days

DISH Network | Ciel | Satellite Leasing Service Agreement

Related party transactions

Agreement term

10 years

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

Related party transactions

Number of satellites transferred | satellite

5

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 | transponder

32

SES Latin America | QuetzSat-1 Transponder

Related party transactions

Agreement term

10 years

Number of DBS transponders available to receive services | transponder

32

Related Party Transactions (D52

Related Party Transactions (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Related party transactions
Net amount of the allocated tax attributes receivable	$ 0	$ 0
DISH Network
Related party transactions
Net amount of the allocated tax attributes receivable		$ 93,100

Related Party Transactions (D53

Related Party Transactions (Details 3) - USD ($)	1 Months Ended			3 Months Ended		12 Months Ended
	Feb. 29, 2016	May. 31, 2014	Feb. 29, 2008	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2009
Related party transactions
Account receivable balance due				$ 62,416,000		$ 47,387,000
Hughes Systique
Related party transactions
Loan repayment	$ 300,000					1,500,000
Remaining balance of loan				$ 300,000
Ownership interest in related party				44.00%
Ownership interest percentage by related party				25.80%
Hughes Systique | HCI
Related party transactions
Amount agreed to be funded under term loan facility			$ 1,500,000
Amount funded			$ 500,000				$ 1,000,000
Interest rate		8.00%	6.00%
Dish Mexico
Related party transactions
Ownership percentage				49.00%
Receivables from related parties				$ 10,700,000		10,600,000
Revenue from related parties				$ 5,800,000	$ 5,800,000
Deluxe
Related party transactions
Ownership percentage				50.00%
Receivables from related parties				$ 300,000		$ 100,000
Revenue from related parties				$ 700,000	$ 700,000

Supplemental Guarantor and No54

Supplemental Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 420,928	$ 382,990	$ 219,393	$ 225,557
Marketable investment securities, at fair value	235,661	253,343
Trade accounts receivable, net	128,954	139,510
Trade accounts receivable - DISH Network	19,706	21,258
Inventory	53,358	48,797
Advances to affiliates, net	62,416	47,387
Other current assets	46,703	51,495
Total current assets	967,726	944,780
Restricted cash and cash equivalents	20,802	20,140
Property and equipment, net	2,310,837	2,265,402
Regulatory authorizations	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	106,748	115,420
Investments in unconsolidated entities	43,340	41,481
Investment in subsidiaries	0	0
Advances to affiliates	0	0
Other noncurrent assets, net	293,788	208,225
Total assets	4,719,072	4,571,279
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	97,854	97,648
Trade accounts payable - DISH Network	6	19
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	1,891,286	30,284
Advances from affiliates, net	3,629	3,773
Accrued expenses and other	188,208	181,236
Total current liabilities	2,180,983	312,960
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	288,465	2,154,988
Advances from affiliates	28,098	25,283
Other non-current liabilities	555,317	536,408
Total HSS shareholders’ equity (deficit)	1,654,788	1,530,330
Noncontrolling interests	11,421	11,310
Total liabilities and shareholders’ equity	4,719,072	4,571,279
Eliminations
Assets
Cash and cash equivalents	0	0	0	0
Marketable investment securities, at fair value	0	0
Trade accounts receivable, net	0	0
Trade accounts receivable - DISH Network	0	0
Inventory	0	0
Advances to affiliates, net	(823,659)	(766,208)
Other current assets	0	0
Total current assets	(823,659)	(766,208)
Restricted cash and cash equivalents	0	0
Property and equipment, net	0	0
Regulatory authorizations	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments in unconsolidated entities	0	0
Investment in subsidiaries	(3,781,155)	(3,517,653)
Advances to affiliates	(1,044)	(1,378)
Other noncurrent assets, net	(264,129)	(254,486)
Total assets	(4,869,987)	(4,539,725)
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	0	0
Trade accounts payable - DISH Network	0	0
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	0	0
Advances from affiliates, net	(823,659)	(766,207)
Accrued expenses and other	0	0
Total current liabilities	(823,659)	(766,207)
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	0	0
Advances from affiliates	(1,044)	(1,378)
Other non-current liabilities	(264,129)	(254,487)
Total HSS shareholders’ equity (deficit)	(3,781,155)	(3,517,653)
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	(4,869,987)	(4,539,725)
HSS
Assets
Cash and cash equivalents	354,565	300,634	157,464	142,762
Marketable investment securities, at fair value	221,002	238,249
Trade accounts receivable, net	0	0
Trade accounts receivable - DISH Network	0	0
Inventory	0	0
Advances to affiliates, net	10	10
Other current assets	11	40
Total current assets	575,588	538,933
Restricted cash and cash equivalents	12,603	11,985
Property and equipment, net	0	0
Regulatory authorizations	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments in unconsolidated entities	0	0
Investment in subsidiaries	3,508,611	3,350,914
Advances to affiliates	700	700
Other noncurrent assets, net	264,129	254,486
Total assets	4,361,631	4,157,018
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	0	0
Trade accounts payable - DISH Network	0	0
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	1,860,262	0
Advances from affiliates, net	795,625	739,810
Accrued expenses and other	50,956	28,154
Total current liabilities	2,706,843	767,964
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	0	1,858,724
Advances from affiliates	0	0
Other non-current liabilities	0	0
Total HSS shareholders’ equity (deficit)	1,654,788	1,530,330
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	4,361,631	4,157,018
Guarantor Subsidiaries
Assets
Cash and cash equivalents	50,577	55,767	30,188	51,592
Marketable investment securities, at fair value	14,659	15,094
Trade accounts receivable, net	97,420	101,923
Trade accounts receivable - DISH Network	19,706	21,258
Inventory	42,330	39,948
Advances to affiliates, net	879,821	807,341
Other current assets	24,818	24,565
Total current assets	1,129,331	1,065,896
Restricted cash and cash equivalents	7,500	7,500
Property and equipment, net	2,180,818	2,181,495
Regulatory authorizations	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	106,748	115,420
Investments in unconsolidated entities	43,340	41,481
Investment in subsidiaries	272,544	166,739
Advances to affiliates	344	678
Other noncurrent assets, net	136,238	135,970
Total assets	4,852,694	4,691,010
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	85,323	86,477
Trade accounts payable - DISH Network	6	19
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	29,634	28,829
Advances from affiliates, net	5,108	5,307
Accrued expenses and other	114,158	130,532
Total current liabilities	234,229	251,164
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	287,343	295,060
Advances from affiliates	0	0
Other non-current liabilities	819,393	790,843
Total HSS shareholders’ equity (deficit)	3,511,729	3,353,943
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	4,852,694	4,691,010
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	15,786	26,589	$ 31,741	$ 31,203
Marketable investment securities, at fair value	0	0
Trade accounts receivable, net	31,534	37,587
Trade accounts receivable - DISH Network	0	0
Inventory	11,028	8,849
Advances to affiliates, net	6,244	6,244
Other current assets	21,874	26,890
Total current assets	86,466	106,159
Restricted cash and cash equivalents	699	655
Property and equipment, net	130,019	83,907
Regulatory authorizations	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments in unconsolidated entities	0	0
Investment in subsidiaries	0	0
Advances to affiliates	0	0
Other noncurrent assets, net	157,550	72,255
Total assets	374,734	262,976
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	12,531	11,171
Trade accounts payable - DISH Network	0	0
Current portion of long-term debt and capital lease obligations, net of unamortized debt issuance costs	1,390	1,455
Advances from affiliates, net	26,555	24,863
Accrued expenses and other	23,094	22,550
Total current liabilities	63,570	60,039
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	1,122	1,204
Advances from affiliates	29,142	26,661
Other non-current liabilities	53	52
Total HSS shareholders’ equity (deficit)	269,426	163,710
Noncontrolling interests	11,421	11,310
Total liabilities and shareholders’ equity	$ 374,734	$ 262,976
6 1/2% Senior Secured Notes due 2019
Condensed Consolidating Balance Sheet
Interest Rates	6.50%	6.50%
7 5/8% Senior Notes due 2021
Condensed Consolidating Balance Sheet
Interest Rates	7.625%	7.625%

Supplemental Guarantor and No55

Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Services and other revenue - other	$ 270,423	$ 269,679
Services and other revenue - DISH Network	113,075	131,441
Equipment revenue - other	42,859	48,051
Equipment revenue - DISH Network	2,769	1,063
Total revenue	429,126	450,234
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	124,577	129,918
Cost of sales - equipment (exclusive of depreciation and amortization)	43,108	45,211
Selling, general and administrative expenses	70,915	70,545
Research and development expenses	6,932	5,554
Depreciation and amortization	102,369	108,014
Total costs and expenses	347,901	359,242
Operating income	81,225	90,992
Other Income (Expense):
Interest income	1,914	1,099
Interest expense, net of amounts capitalized	(38,031)	(45,086)
Gains on marketable investment securities	215	0
Equity in earnings of unconsolidated affiliate	1,859	1,397
Equity in earnings (losses) of subsidiaries, net	0	0
Other, net	6,889	(1,053)
Total other expense, net	(27,154)	(43,643)
Income before income taxes	54,071	47,349
Income tax benefit (provision), net	(20,041)	(17,973)
Net income (loss)	34,030	29,376
Less: Net income attributable to noncontrolling interests	111	369
Net income attributable to HSS	33,919	29,007
Comprehensive Income (Loss):
Net income (loss)	34,030	29,376
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	7,709	(10,234)
Unrealized gains (losses) on available-for-sale securities and other	(374)	1,557
Equity in other comprehensive income (loss) of subsidiaries, net	0	0
Total other comprehensive income (loss), net of tax	7,335	(8,677)
Comprehensive income	41,365	20,699
Less: Comprehensive income attributable to noncontrolling interests	111	369
Comprehensive income attributable to HSS	41,254	20,330
Eliminations
Revenue:
Services and other revenue - other	(5,433)	(13,263)
Services and other revenue - DISH Network	0	0
Equipment revenue - other	(3,975)	(2,784)
Equipment revenue - DISH Network	0	0
Total revenue	(9,408)	(16,047)
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	(5,145)	(13,263)
Cost of sales - equipment (exclusive of depreciation and amortization)	(3,512)	(2,435)
Selling, general and administrative expenses	(751)	(349)
Research and development expenses	0	0
Depreciation and amortization	0	0
Total costs and expenses	(9,408)	(16,047)
Operating income	0	0
Other Income (Expense):
Interest income	(9)	(43)
Interest expense, net of amounts capitalized	9	43
Gains on marketable investment securities	0
Equity in earnings of unconsolidated affiliate	0	0
Equity in earnings (losses) of subsidiaries, net	(50,633)	(55,221)
Other, net	0	0
Total other expense, net	(50,633)	(55,221)
Income before income taxes	(50,633)	(55,221)
Income tax benefit (provision), net	0	0
Net income (loss)	(50,633)	(55,221)
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to HSS	(50,633)	(55,221)
Comprehensive Income (Loss):
Net income (loss)	(50,633)	(55,221)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0
Unrealized gains (losses) on available-for-sale securities and other	0	0
Equity in other comprehensive income (loss) of subsidiaries, net	(14,832)	20,468
Total other comprehensive income (loss), net of tax	(14,832)	20,468
Comprehensive income	(65,465)	(34,753)
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to HSS	(65,465)	(34,753)
HSS
Revenue:
Services and other revenue - other	0	0
Services and other revenue - DISH Network	0	0
Equipment revenue - other	0	0
Equipment revenue - DISH Network	0	0
Total revenue	0	0
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	0	0
Cost of sales - equipment (exclusive of depreciation and amortization)	0	0
Selling, general and administrative expenses	0	0
Research and development expenses	0	0
Depreciation and amortization	0	0
Total costs and expenses	0	0
Operating income	0	0
Other Income (Expense):
Interest income	1,229	833
Interest expense, net of amounts capitalized	(34,781)	(36,553)
Gains on marketable investment securities	0
Equity in earnings of unconsolidated affiliate	0	0
Equity in earnings (losses) of subsidiaries, net	51,079	54,188
Other, net	6,750	(3,750)
Total other expense, net	24,277	14,718
Income before income taxes	24,277	14,718
Income tax benefit (provision), net	9,642	14,289
Net income (loss)	33,919	29,007
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to HSS	33,919	29,007
Comprehensive Income (Loss):
Net income (loss)	33,919	29,007
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0
Unrealized gains (losses) on available-for-sale securities and other	244	1,557
Equity in other comprehensive income (loss) of subsidiaries, net	7,091	(10,234)
Total other comprehensive income (loss), net of tax	7,335	(8,677)
Comprehensive income	41,254	20,330
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to HSS	41,254	20,330
Guarantor Subsidiaries
Revenue:
Services and other revenue - other	246,078	246,411
Services and other revenue - DISH Network	113,075	131,262
Equipment revenue - other	43,897	44,854
Equipment revenue - DISH Network	2,769	1,063
Total revenue	405,819	423,590
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	108,448	118,087
Cost of sales - equipment (exclusive of depreciation and amortization)	44,013	43,056
Selling, general and administrative expenses	62,339	62,894
Research and development expenses	6,932	5,554
Depreciation and amortization	100,842	106,392
Total costs and expenses	322,574	335,983
Operating income	83,245	87,607
Other Income (Expense):
Interest income	45	58
Interest expense, net of amounts capitalized	(4,469)	(8,935)
Gains on marketable investment securities	215
Equity in earnings of unconsolidated affiliate	1,859	1,397
Equity in earnings (losses) of subsidiaries, net	(446)	1,033
Other, net	(207)	4,560
Total other expense, net	(3,003)	(1,887)
Income before income taxes	80,242	85,720
Income tax benefit (provision), net	(29,074)	(31,444)
Net income (loss)	51,168	54,276
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to HSS	51,168	54,276
Comprehensive Income (Loss):
Net income (loss)	51,168	54,276
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0
Unrealized gains (losses) on available-for-sale securities and other	(650)	0
Equity in other comprehensive income (loss) of subsidiaries, net	7,741	(10,234)
Total other comprehensive income (loss), net of tax	7,091	(10,234)
Comprehensive income	58,259	44,042
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to HSS	58,259	44,042
Non-Guarantor Subsidiaries
Revenue:
Services and other revenue - other	29,778	36,531
Services and other revenue - DISH Network	0	179
Equipment revenue - other	2,937	5,981
Equipment revenue - DISH Network	0	0
Total revenue	32,715	42,691
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	21,274	25,094
Cost of sales - equipment (exclusive of depreciation and amortization)	2,607	4,590
Selling, general and administrative expenses	9,327	8,000
Research and development expenses	0	0
Depreciation and amortization	1,527	1,622
Total costs and expenses	34,735	39,306
Operating income	(2,020)	3,385
Other Income (Expense):
Interest income	649	251
Interest expense, net of amounts capitalized	1,210	359
Gains on marketable investment securities	0
Equity in earnings of unconsolidated affiliate	0	0
Equity in earnings (losses) of subsidiaries, net	0	0
Other, net	346	(1,863)
Total other expense, net	2,205	(1,253)
Income before income taxes	185	2,132
Income tax benefit (provision), net	(609)	(818)
Net income (loss)	(424)	1,314
Less: Net income attributable to noncontrolling interests	111	369
Net income attributable to HSS	(535)	945
Comprehensive Income (Loss):
Net income (loss)	(424)	1,314
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	7,709	(10,234)
Unrealized gains (losses) on available-for-sale securities and other	32	0
Equity in other comprehensive income (loss) of subsidiaries, net	0	0
Total other comprehensive income (loss), net of tax	7,741	(10,234)
Comprehensive income	7,317	(8,920)
Less: Comprehensive income attributable to noncontrolling interests	111	369
Comprehensive income attributable to HSS	$ 7,206	$ (9,289)

Supplemental Guarantor and No56

Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities:
Net income (loss)	$ 34,030	$ 29,376
Depreciation and amortization	102,369	108,014
Deferred tax provision	19,231	17,035
Changes in operating assets and liabilities	11,098	(7,544)
Net cash flows from operating activities	166,728	146,881
Cash Flows from Investing Activities:
Purchases of marketable investment securities	(134,572)	(90,594)
Sales and maturities of marketable investment securities	146,814	52,683
Purchases of property and equipment	(128,957)	(92,310)
Changes in restricted cash and cash equivalents	(662)	(1,046)
Investment in subsidiary	0	0
Payment for EchoStar XXI launch services	(11,875)	0
Expenditures for externally marketed software	(5,959)	(4,944)
Other, net	0	(9)
Net cash flows from investing activities	(135,211)	(136,220)
Cash Flows from Financing Activities:
Proceeds from capital contribution from parent	0	0
Capital contribution from EchoStar	11,875	0
Repayment of other debt and capital lease obligations	(8,214)	(15,038)
Advances from affiliates	2,504	0
Other, net	213	779
Net cash flows from financing activities	6,378	(14,259)
Effect of exchange rates on cash and cash equivalents	43	(2,566)
Net increase (decrease) in cash and cash equivalents	37,938	(6,164)
Cash and cash equivalents, beginning of period	382,990	225,557
Cash and cash equivalents, end of period	420,928	219,393
Eliminations
Cash Flows from Operating Activities:
Net income (loss)	(50,633)	(55,221)
Depreciation and amortization	0	0
Deferred tax provision	0	0
Changes in operating assets and liabilities	50,633	55,221
Net cash flows from operating activities	0	0
Cash Flows from Investing Activities:
Purchases of marketable investment securities	0	0
Sales and maturities of marketable investment securities	0	0
Purchases of property and equipment	0	0
Changes in restricted cash and cash equivalents	0	0
Investment in subsidiary	56,398	11,000
Payment for EchoStar XXI launch services	0
Expenditures for externally marketed software	0	0
Other, net	(340)	0
Net cash flows from investing activities	56,058	11,000
Cash Flows from Financing Activities:
Proceeds from capital contribution from parent	(56,398)	(11,000)
Capital contribution from EchoStar	0
Repayment of other debt and capital lease obligations	0	0
Advances from affiliates	0
Other, net	340	0
Net cash flows from financing activities	(56,058)	(11,000)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
HSS
Cash Flows from Operating Activities:
Net income (loss)	33,919	29,007
Depreciation and amortization	0	0
Deferred tax provision	(9,642)	(14,289)
Changes in operating assets and liabilities	34,354	49,902
Net cash flows from operating activities	58,631	64,620
Cash Flows from Investing Activities:
Purchases of marketable investment securities	(134,572)	(90,594)
Sales and maturities of marketable investment securities	146,814	52,683
Purchases of property and equipment	0	0
Changes in restricted cash and cash equivalents	(618)	(1,006)
Investment in subsidiary	(28,199)	(11,000)
Payment for EchoStar XXI launch services	0
Expenditures for externally marketed software	0	0
Other, net	0	0
Net cash flows from investing activities	(16,575)	(49,917)
Cash Flows from Financing Activities:
Proceeds from capital contribution from parent	0	0
Capital contribution from EchoStar	11,875
Repayment of other debt and capital lease obligations	0	0
Advances from affiliates	0
Other, net	0	(1)
Net cash flows from financing activities	11,875	(1)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	53,931	14,702
Cash and cash equivalents, beginning of period	300,634	142,762
Cash and cash equivalents, end of period	354,565	157,464
Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	51,168	54,276
Depreciation and amortization	100,842	106,392
Deferred tax provision	28,987	31,433
Changes in operating assets and liabilities	(83,829)	(113,995)
Net cash flows from operating activities	97,168	78,106
Cash Flows from Investing Activities:
Purchases of marketable investment securities	0	0
Sales and maturities of marketable investment securities	0	0
Purchases of property and equipment	(88,958)	(79,881)
Changes in restricted cash and cash equivalents	0	0
Investment in subsidiary	(28,199)	0
Payment for EchoStar XXI launch services	0
Expenditures for externally marketed software	(5,959)	(4,944)
Other, net	340	(9)
Net cash flows from investing activities	(122,776)	(84,834)
Cash Flows from Financing Activities:
Proceeds from capital contribution from parent	28,199	0
Capital contribution from EchoStar	0
Repayment of other debt and capital lease obligations	(6,912)	(13,857)
Advances from affiliates	0
Other, net	(869)	(819)
Net cash flows from financing activities	20,418	(14,676)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	(5,190)	(21,404)
Cash and cash equivalents, beginning of period	55,767	51,592
Cash and cash equivalents, end of period	50,577	30,188
Non-Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	(424)	1,314
Depreciation and amortization	1,527	1,622
Deferred tax provision	(114)	(109)
Changes in operating assets and liabilities	9,940	1,328
Net cash flows from operating activities	10,929	4,155
Cash Flows from Investing Activities:
Purchases of marketable investment securities	0	0
Sales and maturities of marketable investment securities	0	0
Purchases of property and equipment	(39,999)	(12,429)
Changes in restricted cash and cash equivalents	(44)	(40)
Investment in subsidiary	0	0
Payment for EchoStar XXI launch services	(11,875)
Expenditures for externally marketed software	0	0
Other, net	0	0
Net cash flows from investing activities	(51,918)	(12,469)
Cash Flows from Financing Activities:
Proceeds from capital contribution from parent	28,199	11,000
Capital contribution from EchoStar	0
Repayment of other debt and capital lease obligations	(1,302)	(1,181)
Advances from affiliates	2,504
Other, net	742	1,599
Net cash flows from financing activities	30,143	11,418
Effect of exchange rates on cash and cash equivalents	43	(2,566)
Net increase (decrease) in cash and cash equivalents	(10,803)	538
Cash and cash equivalents, beginning of period	26,589	31,203
Cash and cash equivalents, end of period	$ 15,786	$ 31,741