Hughes Satellite Systems 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information
Entity Registrant Name	Hughes Satellite Systems Corp
Entity Central Index Key	1,533,758
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
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		1,078
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,075,908	$ 2,070,964
Marketable investment securities, at fair value	195,906	187,923
Trade accounts receivable, net of allowance for doubtful accounts of $13,211 and $12,752, respectively	192,387	182,512
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero	45,968	19,323
Inventory	91,232	62,638
Prepaids and deposits	36,156	34,505
Advances to affiliates, net	102,574	110,452
Other current assets	12,730	11,809
Total current assets	2,752,861	2,680,126
Noncurrent Assets:
Restricted cash and cash equivalents	13,154	11,820
Property and equipment, net of accumulated depreciation of $2,433,297 and $2,503,187, respectively	2,853,791	2,294,726
Regulatory authorizations, net	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	62,240	80,734
Investments in unconsolidated entities	32,858	42,560
Other noncurrent assets, net	204,687	295,737
Total noncurrent assets	4,142,561	3,701,408
Total assets	6,895,422	6,381,534
Current Liabilities:
Trade accounts payable	117,615	106,410
Trade accounts payable - DISH Network	5,470	6
Current portion of long-term debt and capital lease obligations	38,407	32,984
Advances from affiliates, net	327	598
Deferred revenue and prepayments	56,285	59,989
Accrued interest	57,246	46,255
Accrued compensation	28,298	33,457
Accrued expenses and other	99,624	80,612
Total current liabilities	403,272	360,311
Noncurrent Liabilities:
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	3,605,715	3,622,463
Deferred tax liabilities, net	693,055	528,462
Advances from affiliates	33,475	31,968
Other noncurrent liabilities	110,873	83,307
Total noncurrent liabilities	4,443,118	4,266,200
Total liabilities	4,846,390	4,626,511
Commitments and Contingencies
Shareholders’ Equity:
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,078 shares issued and outstanding at September 30, 2017 and 1,000 shares issued and outstanding December 31, 2016	0	0
Additional paid-in capital	1,773,319	1,516,199
Accumulated other comprehensive loss	(45,042)	(60,719)
Accumulated earnings	306,919	286,713
Total HSS shareholders’ equity	2,035,196	1,742,193
Noncontrolling interests	13,836	12,830
Total shareholders’ equity	2,049,032	1,755,023
Total liabilities and shareholders’ equity	6,895,422	6,381,534
Hughes Retail Preferred Tracking Stock
Shareholders’ Equity:
Hughes Retail Preferred Tracking Stock, $.001 par value, zero authorized, issued and outstanding at September 30, 2017 and 300 shares authorized, 81.128 issued and outstanding at December 31, 2016	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 13,211,000	$ 12,752,000
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars)	0	0
Property and equipment, accumulated depreciation (in dollars)	$ 2,433,297,000	$ 2,503,187,000
Common stock
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)	1,078	1,000
Common stock, shares outstanding (in shares)	1,078	1,000
Preferred stock
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
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	0	300
Preferred stock, shares issued (in shares)	0	81.128
Preferred stock, shares outstanding (in shares)	0	81.128

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Services and other revenue - DISH Network	$ 108,264	$ 111,750	$ 330,675	$ 337,353
Services and other revenue - other	310,973	276,877	866,251	821,863
Equipment revenue - DISH Network	126	2,138	175	7,008
Equipment revenue - other	58,999	66,501	173,644	160,886
Total revenue	478,362	457,266	1,370,745	1,327,110
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	137,663	130,587	401,633	381,964
Cost of sales - equipment (exclusive of depreciation and amortization)	52,051	53,601	154,142	144,029
Selling, general and administrative expenses	83,512	67,874	244,005	207,974
Research and development expenses	8,302	9,030	23,444	23,524
Depreciation and amortization	127,915	104,774	364,878	309,448
Total costs and expenses	409,443	365,866	1,188,102	1,066,939
Operating income	68,919	91,400	182,643	260,171
Other Income (Expense):
Interest income	8,321	4,006	21,248	7,427
Interest expense, net of amounts capitalized	(60,783)	(53,536)	(181,996)	(127,626)
Gains on marketable investment securities, net	0	5	1,723	5,300
Other-than-temporary impairment loss on available-for-sale securities	0	0	(3,298)	0
Equity in earnings of unconsolidated affiliate	1,948	2,654	5,298	6,758
Other, net	1,804	(24)	229	5,365
Total other expense, net	(48,710)	(46,895)	(156,796)	(102,776)
Income before income taxes	20,209	44,505	25,847	157,395
Income tax provision	(8,726)	(16,416)	(4,635)	(57,277)
Net income	11,483	28,089	21,212	100,118
Less: Net income attributable to noncontrolling interests	532	524	1,006	946
Net income attributable to HSS	10,951	27,565	20,206	99,172
Comprehensive Income (Loss):
Net income	11,483	28,089	21,212	100,118
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	8,571	1,255	13,956	10,607
Unrealized gains (losses) on available-for-sale securities and other	(66)	750	(1,577)	2,543
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income	0	0	3,298	0
Recognition of realized gains on available-for-sale securities in net income	0	(4)	0	(2,989)
Total other comprehensive income (loss), net of tax	8,505	2,001	15,677	10,161
Comprehensive income (loss)	19,988	30,090	36,889	110,279
Less: Comprehensive income attributable to noncontrolling interests	532	524	1,006	760
Comprehensive income (loss) attributable to HSS	$ 19,456	$ 29,566	$ 35,883	$ 109,519

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHARESHOLDERS' EQUITY Statement - USD ($) $ in Thousands	Total	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Earnings	Noncontrolling Interests
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,541,640	$ 1,417,748	$ (54,116)	$ 166,698	$ 11,310
Stock-based compensation	3,696	3,696	0	0	0
Transfer of launch service contract from (to) EchoStar	70,300	70,300	0	0	0
Contribution to fund launch service contract payment	11,875	11,875	0	0	0
Other	(396)	(396)	0	0	0
Net income	100,118	0	0	99,172	946
Foreign currency translation adjustments	10,607	(1)	10,794	0	(186)
Unrealized gains (losses) and other-than-temporary impairment loss on marketable investment securities, net and other	(446)	0	(446)	0	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,737,394	1,503,222	(43,768)	265,870	12,070
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,755,023	1,516,199	(60,719)	286,713	12,830
Stock-based compensation	3,839	3,839	0	0	0
Transfer of launch service contract from (to) EchoStar	(145,114)	(145,114)	0	0	0
Contribution of EchoStar XIX satellite, net of deferred tax	369,263	369,263	0	0	0
Contribution of net assets pursuant to Share Exchange Agreement	219,662	219,662	0	0	0
Exchange of uplinking business net assets for HSS Tracking Stock	(190,221)	(190,221)	0	0	0
Other	(309)	(309)	0	0	0
Net income	21,212	0	0	20,206	1,006
Foreign currency translation adjustments	13,956	0	13,956	0	0
Unrealized gains (losses) and other-than-temporary impairment loss on marketable investment securities, net and other	1,721	0	1,721	0	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 2,049,032	$ 1,773,319	$ (45,042)	$ 306,919	$ 13,836

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net income	$ 21,212,000	$ 100,118,000
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	364,878,000	309,448,000
Equity in earnings of unconsolidated affiliate	(5,298,000)	(6,758,000)
Amortization of debt issuance costs	5,479,000	4,793,000
Losses (gains) and impairment on marketable investment securities, net	1,575,000	(5,300,000)
Stock-based compensation	3,839,000	3,696,000
Deferred tax provision	2,202,000	54,731,000
Dividends received from unconsolidated entity	15,000,000	10,000,000
Proceeds from sale of trading securities	8,922,000	7,140,000
Changes in current assets and current liabilities, net	(30,168,000)	(43,377,000)
Changes in noncurrent assets and noncurrent liabilities, net	(18,747,000)	7,600,000
Other, net	952,000	4,725,000
Net cash flows from operating activities	369,846,000	446,816,000
Cash Flows from Investing Activities:
Purchases of marketable investment securities	(170,158,000)	(396,730,000)
Sales and maturities of marketable investment securities	152,423,000	265,680,000
Expenditures for property and equipment	(291,975,000)	(312,003,000)
Expenditures for externally marketed software	(25,447,000)	(17,991,000)
Changes in restricted cash and cash equivalents	(1,334,000)	7,614,000
Investment in unconsolidated entity	0	(1,636,000)
Payment for EchoStar XXI launch services	0	(11,875,000)
Net cash flows from investing activities	(336,491,000)	(466,941,000)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	0	1,500,000,000
Payments of debt issuance costs	(414,000)	(6,275,000)
Repayment of debt and capital lease obligations	(25,787,000)	(24,052,000)
Advances from (to) affiliates, net	(36,000)	5,481,000
Capital contribution from EchoStar	0	11,875,000
Other, net	(3,097,000)	(2,967,000)
Net cash flows from financing activities	(29,334,000)	1,484,062,000
Effect of exchange rates on cash and cash equivalents	923,000	660,000
Net increase in cash and cash equivalents	4,944,000	1,464,597,000
Cash and cash equivalents, beginning of period	2,070,964,000	382,990,000
Cash and cash equivalents, end of period	2,075,908,000	1,847,587,000
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest (including capitalized interest)	183,073,000	96,418,000
Capitalized interest	19,412,000	22,811,000
Cash paid for income taxes	2,814,000	3,856,000
Property and equipment financed under capital lease obligations	8,423,000	650,000
Decrease in capital expenditures included in accounts payable, net	(2,257,000)	(8,587,000)
Transfer of launch service contracts from (to) EchoStar	(145,114,000)	70,300,000
Contribution of net assets pursuant to Share Exchange Agreement	219,662,000	0
Exchange of uplinking business net assets for HSS Tracking Stock	(190,221,000)	0
Capitalized in-orbit incentive obligations	31,000,000	0
Contribution of EchoStar XIX satellite	$ 514,448,000	$ 0

Organization and Business Activ

Organization and Business Activities	9 Months Ended
	Sep. 30, 2017
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 subsidiary of EchoStar Corporation (“EchoStar”). We are a global provider of satellite service operations, video delivery solutions, broadband satellite technologies and broadband services for home and small office customers. We deliver innovative network technologies, managed services, and various communications solutions for enterprise and government customers. In February 2014, HSS and EchoStar entered into agreements with certain subsidiaries of DISH Network Corporation (“DISH”) pursuant to which, effective March 1, 2014, (i) EchoStar and HSS issued Tracking Stock (as defined below) to subsidiaries of DISH 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 and certain of its subsidiaries began receiving certain satellite services on these five satellites from us (the “Satellite and Tracking Stock Transaction”). The Tracking Stock tracked 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”), and represented an aggregate 80.0% economic interest in HRG (the Hughes Retail Tracking Stock issued by us (the “HSS Tracking Stock”) represented a 28.11% economic interest in HRG and the Hughes Retail Tracking Stock issued by EchoStar (the “EchoStar Tracking Stock”, together with the HSS Tracking Stock, the “Tracking Stock) represented a 51.89% economic interest in HRG). In addition to the remaining 20.0% economic interest in HRG, HSS retained all economic interest in the wholesale satellite broadband business and other businesses of HSS. On January 31, 2017, EchoStar and certain of its and our subsidiaries entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar and certain of its and our subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). Following consummation of the Share Exchange, EchoStar no longer operates the EchoStar Technologies business segment and the EchoStar Tracking Stock and HSS Tracking Stock were retired and are no longer outstanding and all agreements, arrangements and policy statements with respect to such tracking stock terminated and are of no further effect. We currently operate in the following two business segments: • Hughes — which provides broadband satellite technologies and broadband services to home and small office customers and network technologies, managed services, equipment, hardware, satellite services and communication solutions to domestic and international consumers and aeronautical, enterprise and government customers. The Hughes segment also designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment provides satellite ground segment systems and terminals to mobile system operators. • EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite service operations and video delivery solutions 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., a joint venture that EchoStar entered into in 2008 (“Dish Mexico”), United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, programmers, and private enterprise customers. We also manage satellite operations for certain satellites owned by DISH Network. Our operations also include various corporate departments (primarily Executive, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) as well as other activities that have not been assigned to our operating segments, including costs incurred in certain satellite development programs and other business development activities, our centralized treasury operations, and gains (losses) from certain of our investments. These activities, costs and income are accounted for in “Corporate and Other.” We were formed as a Colorado corporation in March 2011 to facilitate the acquisition by EchoStar (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 to us, including the principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C. A substantial majority of the voting power of the shares of each of EchoStar and DISH is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
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 conformity 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 conformity 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, 2016 . 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 nine months ended September 30, 2017 or 2016 . As of September 30, 2017 and December 31, 2016 , 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 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 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”), 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes”) and 6.625% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”) (see Note 9 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of September 30, 2017 and December 31, 2016 , 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 $100.6 million and $74.1 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. 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 incurred in connection with customers’ orders of approximately $7.0 million and $11.1 million for the three months ended September 30, 2017 and 2016 , respectively, and $20.7 million and $17.2 million for the nine months ended September 30, 2017 and 2016 , respectively. In addition, we incurred other research and development expenses of approximately $8.3 million and $9.0 million for the three months ended September 30, 2017 and 2016 , respectively, and $23.4 million and $23.5 million for the nine months ended September 30, 2017 and 2016 , respectively. 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 generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of September 30, 2017 and December 31, 2016 , the net carrying amount of externally marketed software was $87.7 million and $76.3 million , respectively, of which $16.7 million and $50.1 million , respectively, was under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $8.3 million and $6.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $25.4 million and $18.5 million for the nine months ended September 30, 2017 and 2016, respectively. We recorded amortization expense relating to the development of externally marketed software of $5.5 million and $2.5 million for the three months ended September 30, 2017 and 2016 , respectively, and $14.1 million and $7.2 million for the nine months ended September 30, 2017 and 2016 , respectively. The weighted average useful life of our externally marketed software was approximately four years as of September 30, 2017 . New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and has modified the standard thereafter. It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, 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.” Public entities are required to adopt the new revenue standard in fiscal years beginning after December 15, 2017 and in interim periods within those fiscal years. 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 fiscal years beginning after December 15, 2016. We plan to adopt the new revenue standard as of January 1, 2018 using the “modified retrospective method.” Under this method, we will apply the rules only to contracts that are not substantially completed as of January 1, 2018, recognizing in retained earnings an adjustment for the cumulative effect of the change and providing additional disclosures comparing results to previous accounting standards. Upon initial evaluation, we do not expect the adoption of ASU 2014-09 to have a material impact on the timing or amount of revenue recognition. However, we do believe the new standard will impact our financial statements as it relates to the deferral of sales commissions. We generally expense sales commissions as incurred under the current standard with the exception of the consumer business in our Hughes segment. The requirement to defer incremental contract acquisition costs and recognize them over the contract period or expected customer life will result in the recognition of a deferred charge on our consolidated balance sheets and corresponding impact to the consolidated statement of operations and comprehensive income (loss). In addition, we currently amortize our sales acquisition costs related to our consumer business in our Hughes segment over the contract term. We believe, under the new guidance, the amortization period for these contract acquisition costs will be over the estimated customer life which is a longer period of time. We continue to evaluate the impact of the new standard on our consolidated financial statements and related disclosures. We are not able to reasonably estimate the impact of the new standard on our consolidated financial statements at this time. 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, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through net income. The update permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for certain requirements. We plan to adopt all applicable requirements of this update as of January 1, 2018. Upon adoption, we will adjust accumulated earnings to include unrealized gains or losses on any marketable equity securities then designated as available for sale, which historically have been recorded in accumulated other comprehensive loss except when an other-than-temporary impairment has occurred. Following adoption, all periodic changes in fair value of such securities will be recognized in net income or loss. As of September 30, 2017, we had recognized $0.1 million in net unrealized gains on such securities in accumulated other comprehensive loss. For our equity investments without a readily determinable fair value that we now account for using the cost method, we expect to elect to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in available-for-sale and cost method equity securities. We continue to assess the impact on our consolidated financial statements of certain requirements of ASU 2016-01 related to measurement of fair value of financial instruments, deferred tax assets related to available-for-sale debt securities, and financial statement presentation and disclosure. 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 fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments rather than incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We early adopted ASU 2016-16 as of January 1, 2017. Our adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This standard requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and the standard must be applied retrospectively to all periods presented. We expect to adopt ASU 2016-18 as of January 1, 2018. Following our adoption of this standard, the beginning and ending balances of cash and cash equivalents presented in our consolidated statements of cash flows will include amounts for restricted cash and cash equivalents, which currently are not included in such balances. Changes in restricted cash and cash equivalents, which we have historically reported in cash flows from investing activities, will not be reported in our consolidated statements of cash flows. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying amount, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and is to be applied on a prospective basis. We early adopted ASU 2017-04 as of January 1, 2017. Our adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures, but it may impact the recognition and measurement of a goodwill impairment loss in future periods if we determine that the carrying amount of any reporting units including goodwill exceeds fair value of the reporting unit. In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This update shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date, effectively reducing interest income on such securities prior to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss) and Related Tax Effects	9 Months Ended
	Sep. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Other Comprehensive Income (Loss) and Related Tax Effects	Other Comprehensive Income (Loss) and Related Tax Effects Except in unusual circumstances, we do not recognize 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 unrealized capital losses for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes net cumulative foreign currency translation losses of $45.1 million and $59.0 million as of September 30, 2017 and December 31, 2016 , respectively. Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Condensed Consolidated Statements of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains on marketable investment securities $ — $ (4 ) $ — $ (2,989 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities — — 3,298 — Total reclassifications, net of tax and noncontrolling interests $ — $ (4 ) $ 3,298 $ (2,989 ) (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains on marketable investment securities, net” in our condensed consolidated statements of operations and comprehensive income (loss). (2)

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Investment Securities	Investment Securities Marketable Investment Securities Our marketable investment securities consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 132,986 $ 164,619 Strategic equity securities 1,646 10,309 Other 61,274 12,995 Total marketable investment securities—current $ 195,906 $ 187,923 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 and nine months ended September 30, 2017 or 2016 . We recognized a $3.3 million other-than-temporary impairment for the nine months ended September 30, 2017 on one of our investments. This investment had been in a continuous loss position for more than 12 months and experienced a decline in market value as a result of adverse developments during the three months ended March 31, 2017. For each of the three months ended September 30, 2017 and 2016 , we did not recognize any gain and loss related to trading securities that we held as of September 30, 2017 and 2016 . For the nine months ended September 30, 2017 and 2016 , “ Gains on marketable investment securities, net ” included gains of zero and losses of $1.0 million , respectively, related to trading securities that we held as of September 30, 2017 and 2016 , respectively. The fair values of our trading securities were zero and $7.2 million as of September 30, 2017 and December 31, 2016 , respectively. Other Our other current marketable investment securities portfolio includes investments in various debt instruments, including U.S. government bonds and commercial paper. Unrealized Gains (Losses) on Available-for-Sale Securities The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of September 30, 2017 Debt securities: Corporate bonds $ 132,994 $ 19 $ (27 ) $ 132,986 Other 61,276 — (2 ) 61,274 Equity securities - strategic 1,536 110 — 1,646 Total available-for-sale securities $ 195,806 $ 129 $ (29 ) $ 195,906 As of December 31, 2016 Debt securities: Corporate bonds $ 164,563 $ 94 $ (38 ) $ 164,619 Other 12,994 1 — 12,995 Equity securities - strategic 4,834 — (1,724 ) 3,110 Total available-for-sale securities $ 182,391 $ 95 $ (1,762 ) $ 180,724 As of September 30, 2017 , restricted and non-restricted available-for-sale securities included debt securities of $194.3 million with contractual maturities of one year or less and zero 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 September 30, 2017 December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Less than 12 months $ 112,110 $ (27 ) $ 62,473 $ (1,760 ) 12 months or more 9,399 (2 ) 1,571 (2 ) Total $ 121,509 $ (29 ) $ 64,044 $ (1,762 ) Sales of Available-for-Sale Securities We recognized zero gains and losses from the sales of our available-for-sale securities for each of the three and nine months ended September 30, 2017 . We recognized gains from the sales of our available-for-sale securities of de minimis and $3.0 million for the three and nine months ended September 30, 2016 , respectively. We recognized de minimis losses from the sales of our available-for-sale securities for each of the three and nine months ended September 30, 2016 . Proceeds from sales of our available-for-sale securities totaled zero for each of the three months ended September 30, 2017 and 2016 , respectively, and $8.9 million and $17.6 million for the nine months ended September 30, 2017 and 2016 , respectively. Fair Value Measurements Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of September 30, 2017 and December 31, 2016 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of September 30, 2017 December 31, 2016 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ 2,016,027 $ 12,821 $ 2,003,206 $ 1,991,949 $ 14,011 $ 1,977,938 Debt securities: Corporate bonds $ 132,986 $ — $ 132,986 $ 164,619 $ — $ 164,619 Other 61,274 — 61,274 12,995 — 12,995 Equity securities - strategic 1,646 1,646 — 10,309 10,309 — Total marketable investment securities $ 195,906 $ 1,646 $ 194,260 $ 187,923 $ 10,309 $ 177,614 Investments in Unconsolidated Entities — Noncurrent We have 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. Our investments in unconsolidated entities consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Investments in unconsolidated entities—noncurrent: Cost method $ 15,438 $ 15,438 Equity method 17,420 27,122 Total investments in unconsolidated entities—noncurrent $ 32,858 $ 42,560 We recorded cash distributions from our investments accounted for using the equity method of $7.5 million and zero for the three months ended September 30, 2017 and 2016 , respectively. For the nine months ended September 30, 2017 and 2016 , we recorded cash distributions from one of these investments accounted for using the equity method of $15.0 million and $10.0 million

Trade Accounts Receivable

Trade Accounts Receivable	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Trade Accounts Receivable	Trade Accounts Receivable Our trade accounts receivable consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Trade accounts receivable $ 181,555 $ 159,094 Contracts in process, net 24,043 36,170 Total trade accounts receivable 205,598 195,264 Allowance for doubtful accounts (13,211 ) (12,752 ) Trade accounts receivable - DISH Network 45,968 19,323 Total trade accounts receivable, net $ 238,355 $ 201,835 As of September 30, 2017 and December 31, 2016 , progress billings offset against contracts in process amounted to $17.4 million and $14.6 million

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory, Net [Abstract]
Inventory	Inventory Our inventory consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Finished goods $ 74,693 $ 49,773 Raw materials 6,901 6,678 Work-in-process 9,638 6,187 Total inventory $ 91,232 $ 62,638

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: Depreciable Life (In Years) As of September 30, 2017 December 31, 2016 (In thousands) Land — $ 13,443 $ 13,273 Buildings and improvements 1 - 30 127,652 79,765 Furniture, fixtures, equipment and other 1 - 12 576,423 430,078 Customer rental equipment 2 - 4 859,596 689,579 Satellites - owned 2 - 15 2,516,684 2,381,120 Satellites acquired under capital leases 10 - 15 794,705 781,761 Construction in progress — 398,585 422,337 Total property and equipment 5,287,088 4,797,913 Accumulated depreciation (2,433,297 ) (2,503,187 ) Property and equipment, net $ 2,853,791 $ 2,294,726 Construction in progress consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 296,358 $ 244,234 Satellite related equipment 83,907 152,683 Other 18,320 25,420 Construction in progress $ 398,585 $ 422,337 Construction in progress included the following owned and leased satellites under construction or undergoing in-orbit testing as of September 30, 2017 . Satellites Segment Expected Launch Date EchoStar 105/SES-11 ESS October 2017 (1) Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in October 2017 and is expected to be placed in service during the fourth quarter of 2017. (2) We entered into a satellite services agreement for certain capacity on this satellite once launched, but are not party to the construction contract. Depreciation expense associated with our property and equipment consisted of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) Satellites $ 56,953 $ 46,965 $ 166,419 $ 140,895 Furniture, fixtures, equipment and other 21,428 16,739 58,078 44,883 Customer rental equipment 39,104 28,652 103,781 86,789 Buildings and improvements 1,306 1,042 3,972 3,151 Total depreciation expense $ 118,791 $ 93,398 $ 332,250 $ 275,718 Satellites As of September 30, 2017 , our satellite fleet consisted of 16 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We have not included the EchoStar 105/SES-11 satellite in our satellite fleet as of September 30, 2017 since it had not been placed into service as of this date. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. As of September 30, 2017 , three of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over their respective lease terms. We accounted for one satellite as an operating lease that is not included in property and equipment as of September 30, 2017 . Recent Developments EchoStar III. In July 2017, the EchoStar III satellite experienced an anomaly that caused communications with the satellite to be interrupted resulting in a loss of control. We regained communications with and control of the EchoStar III satellite and retired it in August 2017. The EchoStar III satellite was a fully depreciated, non-revenue generating asset. EchoStar VIII. During the second quarter of 2017, the EchoStar VIII satellite was removed from its orbital location and retired from commercial service. This retirement has not had, and is not expected to have, a material impact on our results of operations or financial position. EchoStar XIX . The EchoStar XIX satellite was launched in December 2016 and was placed into service in March 2017 at the 97.1 degree west longitude orbital location. The EchoStar XIX satellite provides additional capacity for the Hughes broadband services to our customers in North America and added capacity in certain Central and South American countries and has added capability for aeronautical, enterprise and international broadband services. EchoStar contributed the EchoStar XIX satellite to us in February 2017. EchoStar 105/SES-11. The EchoStar 105/SES-11 satellite was launched in October 2017 and is anticipated to be placed into service in the fourth quarter of 2017 at the 105 degree west longitude orbital location. Our Ku-band payload on the EchoStar 105/SES-11 satellite will replace our current capacity on the AMC-15 satellite. 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 or financial position. 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 nine months ended September 30, 2017 . 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	9 Months Ended
	Sep. 30, 2017
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 the reporting units within our operating segments and is subject to impairment testing annually, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. As of September 30, 2017 and December 31, 2016 , all of our goodwill was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Based on our qualitative assessment of impairment in the second quarter of 2017, we determined that it was not more likely than not that the fair values of the Hughes segment reporting units were less than the corresponding carrying amounts. Other Intangible Assets Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of September 30, 2017 December 31, 2016 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (228,355 ) $ 41,945 $ 270,300 $ (214,544 ) $ 55,756 Technology-based 6 51,417 (51,417 ) — 51,417 (47,848 ) 3,569 Trademark portfolio 20 29,700 (9,405 ) 20,295 29,700 (8,291 ) 21,409 Total other intangible assets $ 351,417 $ (289,177 ) $ 62,240 $ 351,417 $ (270,683 ) $ 80,734 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 externally marketed capitalized software, was $9.1 million and $11.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $32.6 million and $33.7 million for the nine months ended September 30, 2017

Debt and Capital Lease Obligati

Debt and Capital Lease Obligations	9 Months Ended
	Sep. 30, 2017
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: Effective Interest Rate As of September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,056,825 $ 990,000 $ 1,084,050 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 783,038 750,000 739,688 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 1,023,408 900,000 990,189 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 806,910 750,000 760,245 Less: Unamortized debt issuance costs (26,756 ) — (31,821 ) — Subtotal 3,363,244 $ 3,670,181 3,358,179 $ 3,574,172 Capital lease obligations 280,878 297,268 Total debt and capital lease obligations 3,644,122 3,655,447 Less: Current portion (38,407 ) (32,984 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,605,715 $ 3,622,463 The fair values of our debt are estimates categorized within Level 2 of the fair value hierarchy.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
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 $8.7 million for the three months ended September 30, 2017 compared to an income tax expense of approximately $16.4 million for the three months ended September 30, 2016 . Our estimated effective income tax rate was 43.2% and 36.9% for the three months ended September 30, 2017 and 2016 , respectively. The variations in our current year effective tax rate from the U.S. federal statutory rate for the three months ended September 30, 2017 was primarily due to various permanent tax differences. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended September 30, 2016 was primarily due to research and experimentation credits, partially offset by state and local taxes. Income tax expense was approximately $4.6 million for the nine months ended September 30, 2017 compared to an income tax expense of approximately $57.3 million for the nine months ended September 30, 2016 . Our estimated effective income tax rate was 17.9% and 36.4% for the nine months ended September 30, 2017 and 2016 , respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the nine months ended September 30, 2017 was primarily due to the recognition of a one-time tax benefit for the revaluation of our deferred tax assets and liabilities due to a change in our state effective tax rate as a result of the Share Exchange . For the nine months ended September 30, 2016 , the variation in our effective tax rate from the U.S. federal statutory rate was primarily due to the impact of state and local taxes

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments As of September 30, 2017 , our satellite-related obligations were approximately $581.3 million . Our satellite-related obligations primarily include 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 our 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; Share Exchange In 2008, DISH Network 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 assumed certain liabilities that relate to its and our business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, 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. Additionally, in connection with the Share Exchange, EchoStar entered into the Share Exchange Agreement and other agreements which provide, among other things, for the division of certain liabilities, including liabilities relating to taxes, intellectual property and employees and liabilities resulting from litigation and the assumption of certain liabilities that relate to the transferred businesses and assets. These agreements also contain additional indemnification provisions between EchoStar and us and DISH Network for certain pre-existing liabilities and legal proceedings. 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 trials, 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). Except as described below, for these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial condition, operating results or cash flows, though there is no assurance that the resolution and outcomes of these proceedings, individually or in the aggregate, will not be material to our financial condition, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We intend to vigorously defend the proceedings against us. In the event that a court or jury 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. 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 Hughes Network Systems, L.L.C. (“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. On 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, which the Patent and Trademark Office subsequently declined to institute. On April 13, 2016, the defendants answered Elbit’s complaint. At Elbit’s request, on June 26, 2017, the court dismissed Elbit’s claims of infringement against all parties other than HNS. Trial commenced on July 31, 2017. On August 7, 2017, the jury returned a verdict that the 073 patent was valid and infringed, and awarded Elbit approximately $21.1 million. As a result of interest, costs and unit sales through the 073 patent’s expiration in November 2017, we estimate the jury verdict could result in a judgment of approximately $27 million if not overturned or modified by post-trial motions or appeals. The jury also found that such infringement of the 073 patent was not willful and that the 874 patent was not infringed. HNS intends to vigorously pursue its post-trial rights, including appeals. We cannot predict with certainty the outcome of any post-trial motions or appeals. For the nine months ended September 30, 2017, we have recorded a charge of $2.5 million with respect to this matter. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accruals and such differences could be significant. 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 (the “992 patent”), entitled “Content Independent Data Compression Method and System”; 7,415,530 (the “530 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval”; and 8,643,513 (the “513 patent”), 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 (the “908 patent”), 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 (“USPTO”) challenging the validity of the asserted patents. The USPTO instituted proceedings on each of those petitions. The USPTO invalidated the asserted claims of the 513 patent, but Realtime is still asserting this patent against us and may appeal this ruling. Realtime is no longer asserting the 992 patent against us and additionally the USPTO invalidated the claims of the 992 patent that had been asserted against us. The USPTO is still reviewing the 530 patent; however, two of the four claims asserted against us were invalidated in a separate litigation between Realtime and a third party, which Realtime may appeal. The USPTO did not invalidate the asserted claims of the 908 patent, but a third party has challenged these claims in a separate proceeding before the USPTO. On February 14, 2017, Realtime filed a second suit against EchoStar Corporation and our subsidiary HNS in the same District Court, alleging infringement of four additional United States Patents, Nos. 7,358,867, entitled “Content Independent Data Compression Method and System;” 8,502,707, entitled “Data Compression Systems and Methods;” 8,717,204, entitled “Methods for Encoding and Decoding Data;” and 9,054,728, entitled “Data Compression System and Methods.” On June 6, 2017, Realtime filed an amended complaint, adding claims of infringement against EchoStar Technologies, L.L.C., a wholly-owned subsidiary of DISH, DISH, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C., and Arris Group, Inc., as well as additionally alleging infringement of United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth Sensitive Data Compression and Decompression.” The cases were consolidated and no trial date has been set. On July 20, 2017, the claims against the newly added parties, with the exception of EchoStar Technologies, L.L.C., were severed into a separate case. On September 1, 2017, EchoStar Technologies, L.L.C. was dismissed from the case. On October 10, 2017, Realtime informed us that it is not pursuing the 759 patent against us. Trial is scheduled for January 21, 2019. Realtime is an entity that seeks to license an acquired 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 other actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. 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	9 Months Ended
	Sep. 30, 2017
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. We operate in two primary business segments, Hughes and ESS 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. Effective in March 2017, we also changed our overhead allocation methodology to reflect how the CODM evaluates our segments. Historically, the costs of all corporate functions were included on an allocated basis in each of the business segments’ EBITDA. Under the revised allocation methodology, these costs are now reported and analyzed as part of “Corporate and Other” (previously “All Other and Eliminations”). Our prior period segment EBITDA disclosures have been restated to reflect this change. Our operations also include various corporate departments (primarily Executive, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) as well as other activities that have not been assigned to our operating segments, including costs incurred in certain satellite development programs and other business development activities, our centralized treasury operations, and gains (losses) from certain of our investments. Costs and income associated with these departments and activities are accounted for in the “ Corporate and Other ” column in the table below or in the reconciliation of EBITDA below. Transactions between segments were not significant for the three and nine months ended September 30, 2017 or 2016 , respectively. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Satellite Services Corporate and Other Consolidated Total (In thousands) For the Three Months Ended September 30, 2017 External revenue $ 379,702 $ 96,743 $ 1,917 $ 478,362 Intersegment revenue $ 359 $ 350 $ (709 ) $ — Total revenue $ 380,061 $ 97,093 $ 1,208 $ 478,362 EBITDA $ 131,817 $ 78,345 $ (10,108 ) $ 200,054 Capital expenditures $ 108,428 $ 8,203 $ — $ 116,631 For the Three Months Ended September 30, 2016 External revenue $ 355,090 $ 101,308 $ 868 $ 457,266 Intersegment revenue $ 786 $ 172 $ (958 ) $ — Total revenue $ 355,876 $ 101,480 $ (90 ) $ 457,266 EBITDA $ 125,522 $ 84,257 $ (11,494 ) $ 198,285 Capital expenditures $ 75,682 $ 15,730 $ — $ 91,412 For the Nine Months Ended September 30, 2017 External revenue $ 1,070,715 $ 294,839 $ 5,191 $ 1,370,745 Intersegment revenue $ 1,428 $ 946 $ (2,374 ) $ — Total revenue $ 1,072,143 $ 295,785 $ 2,817 $ 1,370,745 EBITDA $ 342,693 $ 241,873 $ (34,099 ) $ 550,467 Capital expenditures $ 270,624 $ 21,351 $ — $ 291,975 For the Nine Months Ended September 30, 2016 External revenue $ 1,019,203 $ 305,401 $ 2,506 $ 1,327,110 Intersegment revenue $ 2,248 $ 518 $ (2,766 ) $ — Total revenue $ 1,021,451 $ 305,919 $ (260 ) $ 1,327,110 EBITDA $ 353,505 $ 257,181 $ (24,590 ) $ 586,096 Capital expenditures $ 261,241 $ 50,762 $ — $ 312,003 The following table reconciles total consolidated EBITDA to reported “ Income before income taxes ” in our condensed consolidated statements of operations and comprehensive income (loss): For the Three Months For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) EBITDA $ 200,054 $ 198,285 $ 550,467 $ 586,096 Interest income and expense, net (52,462 ) (49,530 ) (160,748 ) (120,199 ) Depreciation and amortization (127,915 ) (104,774 ) (364,878 ) (309,448 ) Net income attributable to noncontrolling interests 532 524 1,006 946 Income before income taxes $ 20,209 $ 44,505 $ 25,847 $ 157,395

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
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 intended to be provided at cost. Effective March 2017, and as a result of the Share Exchange Agreement, we implemented a new methodology for determining the cost of these services. 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 $5.7 million and $5.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $17.2 million and $10.8 million for the nine months ended September 30, 2017 and 2016 , 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 condensed 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 2021 and 2022. 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 condensed consolidated balance sheets. Contribution of EchoStar XIX Satellite. On February 1, 2017, EchoStar contributed the EchoStar XIX satellite and assigned the related construction contract with the satellite manufacturer to us. We recorded a $369.3 million increase in “Additional paid-in capital,” reflecting EchoStar’s $514.4 million carrying amount of the satellite, including capitalized interest that was previously charged to expense in our consolidated financial statements, less related deferred taxes of $145.1 million . See Note 7 for additional information about the EchoStar XIX satellite. EchoStar XXI and EchoStar XXIII Launch Facilitation and Operational Control Agreements. As part of applying for launch licenses for the EchoStar XXI and XXIII satellites 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 contracts 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 and agreed to make additional payments to HNS Ltd. for amounts that HNS Ltd. is required to pay under both launch service contracts. In 2015 and 2016, we recorded additions to “Other noncurrent assets, net” and corresponding increases in “Additional paid-in capital” in our condensed consolidated balance sheet to reflect EOC’s cumulative payments under the launch service contracts prior to the transfer dates and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII and the EchoStar XXI satellites were successfully launched in March 2017 and June 2017, respectively. We recorded decreases in “Other noncurrent assets, net” and “Additional paid-in capital” of $61.8 million and $83.3 million , respectively, representing the carrying amounts of the launch service contracts at the time of launch to reflect the consumption of the contracts’ economic benefits by EOC, the owner of the satellites. HNS Ltd.’s future payment obligations under the launch service contracts are included in our disclosure of satellite-related obligations in Note 11 . Share Exchange Agreement. Prior to consummation of the Share Exchange, EchoStar was required to complete steps necessary for the transferring of certain assets and liabilities to DISH and certain of its subsidiaries. As part of these steps, subsidiaries of EchoStar that, prior to the consummation of the Share Exchange, owned EchoStar’s business of providing online video delivery and satellite video delivery for broadcasters and pay-TV operators, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services and related assets and liabilities were contributed to one of our subsidiaries in consideration for additional shares of HSS’ common stock that were then issued to a subsidiary of EchoStar. Certain data center assets that were included in the contribution of certain assets and liabilities to one of our subsidiaries were not included in the Share Exchange and continue to be owned by one of our subsidiaries and have been pledged as collateral to support our obligations under the indentures relating to the 2019 Senior Secured Notes and the 2026 Senior Secured Notes. DISH Network Following the Spin-off, EchoStar and DISH have operated as separate publicly-traded companies. However, prior to the consummation of the Share Exchange on February 28, 2017, DISH Network owned the Tracking Stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In addition, a substantial majority of the voting power of the shares of each of EchoStar and DISH 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 both the Spin-off and the Share Exchange, EchoStar and certain of its subsidiaries and DISH and certain of its subsidiaries 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 indemnify 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 we or DISH Network pay for products and services provided under the agreements are based on cost plus a fixed margin (unless noted differently below or in our most recent Annual Report on Form 10-K), 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 VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction, described below, in March 2014, we began providing certain satellite services to DISH Network on the 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. In December 2016, DISH Network renewed the satellite services agreement relative to the EchoStar VII satellite for one year to June 2018. 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 received satellite services from us on the EchoStar XII satellite. The term of the satellite services agreement terminated at the end of September 2017. 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. In July 2016, we and DISH Network further amended the transponder service agreement to, among other things, extend the initial term by one additional year through January 2018 and to reduce the term of the first renewal option by one year . In May 2017, DISH Network renewed the satellite services agreement relative to the EchoStar XVI satellite for five -years to January 2023. DISH Network has the option to renew for an additional five -year period prior to expiration of the term. There can be no assurance that such option to renew this agreement will be exercised. In the event that DISH Network does not exercise its 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 in October 2019. 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. 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”). In November 2016, we and DISH Network amended the 2012 TT&C Agreement to extend the term for one year through December 2017. 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 the D-1 and EchoStar XV satellites; however, for the period that we received satellite services on the EchoStar XV satellite from DISH Network, we waived the fees for the TT&C services on the EchoStar XV satellite. Effective August 2016, we provide TT&C services to DISH Network for the EchoStar XVIII satellite. Real Estate Lease . Prior to the Share Exchange, EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we amended the agreement to (i) terminate the lease for the transferred space and (ii) provide for a continued lease to DISH Network of the portion of the property contributed to us for a period ending in December 2031. The rent on a per square foot basis for the lease is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and DISH Network is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, either party has the right to terminate this agreement upon 30 days ’ notice. TerreStar Agreement one - year period, unless terminated by TerreStar upon at least 60 days ’ written notice to us prior to the end of the term. The provision of operations and maintenance services will continue until April 2018 and will automatically renew in April 2018 for an additional one -year period, unless terminated by TerreStar or us upon at least 90 days ’ written notice prior to the end of the term. The provision of hosting services will continue until May 2022 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. In addition, TerreStar generally may terminate such services for convenience subject to providing us with prior notice and/or payment of termination charges. . 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, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. TerreStar generally has the right to continue to receive warranty services from us for one of our products on a month-to-month basis. The provision of warranty services for our other product will continue until March 2018 and will automatically renew in March 2018 for an additional one - year period, unless terminated by TerreStar upon at least 60 days ’ written notice to us prior to the end of the term. The provision of operations and maintenance services will continue until April 2018 and will automatically renew in April 2018 for an additional one -year period, unless terminated by TerreStar or us upon at least 90 da ys ’ written notice prior to the end of the term. The provision of hosting services will continue until May 2022 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. In addition, TerreStar generally may terminate such services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement . Effective October 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH, 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 completion of the Hughes Acquisition, DBSD North America and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. DBSD North America generally has the right to continue to receive warranty services from us on a month-to-month basis until February 2019. The provision of operations and maintenance services will continue until April 2018 and will automatically renew in April 2018 for an additional one -year period, unless terminated by DBSD North America upon at least 120 days ’ written notice to us prior to the end of the term. The provision of hosting services will continue until February 2022 and will automatically renew for an additional five -year period until February 2027 unless terminated by DBSD North America upon at least 180 days ’ written notice to us prior to the end of the term. In addition, DBSD North America generally may terminate such services for convenience, subject to providing us with prior notice and/or payment of termination charges. RUS Implementation Agreement . In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH’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 Amended and Restated Professional Services Agreement. In connection with the Spin-off, EchoStar entered into various agreements with DISH 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 agreed that EchoStar and its subsidiaries 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 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 and its subsidiaries (previously provided under the Services Agreement) and other support services. In connection with the consummation of the Share Exchange, EchoStar and DISH amended and restated the Professional Services Agreement to provide that EchoStar and its subsidiaries and DISH Network shall have the right to receive additional services that either EchoStar and its subsidiaries or DISH Network may require as a result of the Share Exchange. A portion of these costs and expenses have been allocated to us in the manner described above under the caption “EchoStar.” The term of the Amended and Restated Professional Services Agreement is through January 2019 and renews automatically for successive one -year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days ’ notice. However, either party may generally terminate the Amended and Restated Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice. Real Estate Lease from DISH Network . In connection with the Share Exchange, effective March 2017, we sublease from DISH Network certain space at 796 East Utah Valley Drive in American Fork, Utah for a period ending in August 2017. We have exercised our option to renew this sublease for a five -year period ending in August 2022. The rent on a per square foot basis for the lease is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. Collocation and Antenna Space Agreements . In connection with the Share Exchange, effective March 2017, we entered into certain agreements pursuant to which DISH Network will provide collocation and antenna space to EchoStar through March 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Spokane, Washington; and Englewood, Colorado. In August 2017, we and DISH Network entered into certain other agreements pursuant to which DISH Network will provide additional collocation and antenna space to EchoStar in Monee, Illinois and Spokane, Washington through August 2022. EchoStar may renew each of these agreements for four three -year periods by providing DISH Network with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. We may terminate certain of these agreements with 180 days ’ prior written notice. The fees for the services provided under these agreements depend on the number of racks leased at the location. Other agreements — DISH Network Satellite and Tracking Stock Transaction . In February 2014, we and EchoStar 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 as discussed above on these five satellites from us (collectively, the “Satellite and Tracking Stock Transaction.”) The Tracking Stock was retired in March 2017 and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. See Note 3 for further information. Share Exchange Agreement . On January 31, 2017, EchoStar and certain of its subsidiaries entered into the Share Exchange Agreement with DISH and certain of its subsidiaries, pursuant to which on February 28, 2017, EchoStar and its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange on February 28, 2017, EchoStar no longer operates the transferred EchoStar Technologies businesses and the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Pursuant to the Share Exchange Agreement, EchoStar transferred certain assets, investments in joint ventures, spectrum licenses and real estate properties and DISH Network assumed certain liabilities relating to the transferred assets and businesses. The Share Exchange Agreement contains customary representations and warranties by the parties, including representations by EchoStar related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. EchoStar and DISH Network have also agreed to customary indemnification provisions whereby each party indemnifies the other against certain losses with respect to breaches of representations, warranties or covenants and certain liabilities and if certain actions undertaken by it causes the transaction to be taxable to the other party after closing. Hughes Broadband Master Services Agreement five years until March 2022 with automatic renewal for successive one -year terms. After the first anniversary, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 days ’ notice to the other party. Upon expiration or termination of the MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA. . In March 2017, HNS and DISH Network L.L.C. (“DNLLC”), a wholly-owned subsidiary of DISH, entered into a master service agreement (the “MSA”) pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for the Hughes service and related equipment and other telecommunication services and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the MSA, HNS and DNLLC will make certain payments to each other relating to sales, upgrades, purchases and installation services. The MSA has an initial term of five years until March 2022 with automatic renewal for successive one -year terms. After the first anniversary, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 day

Supplemental Guarantor and Non-

Supplemental Guarantor and Non-Guarantor Financial Information	9 Months Ended
	Sep. 30, 2017
Supplemental Guarantor and Non-Guarantor Financial Information
Condensed Income Statement	Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 107,765 $ 499 $ — $ 108,264 Services and other revenue - other — 273,821 47,333 (10,181 ) 310,973 Equipment revenue - DISH Network — 126 — — 126 Equipment revenue - other — 59,519 6,242 (6,762 ) 58,999 Total revenue — 441,231 54,074 (16,943 ) 478,362 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,662 35,625 (9,624 ) 137,663 Cost of sales - equipment (exclusive of depreciation and amortization) — 54,137 4,623 (6,709 ) 52,051 Selling, general and administrative expenses — 72,492 11,630 (610 ) 83,512 Research and development expenses — 8,302 — — 8,302 Depreciation and amortization — 117,702 10,213 — 127,915 Total costs and expenses — 364,295 62,091 (16,943 ) 409,443 Operating income — 76,936 (8,017 ) — 68,919 Other Income (Expense): Interest income 7,667 200 653 (199 ) 8,321 Interest expense, net of amounts capitalized (57,372 ) (4,282 ) 672 199 (60,783 ) Equity in earnings of unconsolidated affiliate — 1,948 — — 1,948 Equity in earnings (losses) of subsidiaries, net 42,830 (2,705 ) — (40,125 ) — Other, net — (85 ) 1,889 — 1,804 Total other income (expense), net (6,875 ) (4,924 ) 3,214 (40,125 ) (48,710 ) Income (loss) before income taxes (6,875 ) 72,012 (4,803 ) (40,125 ) 20,209 Income tax benefit (provision) 17,826 (29,092 ) 2,540 — (8,726 ) Net income (loss) 10,951 42,920 (2,263 ) (40,125 ) 11,483 Less: Net income attributable to noncontrolling interests — — 532 — 532 Net income (loss) attributable to HSS $ 10,951 $ 42,920 $ (2,795 ) $ (40,125 ) $ 10,951 Comprehensive Income (Loss): Net income (loss) $ 10,951 $ 42,920 $ (2,263 ) $ (40,125 ) $ 11,483 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 8,571 — 8,571 Unrealized gains (losses) on available-for-sale securities and other (20 ) 24 (70 ) — (66 ) Equity in other comprehensive income (loss) of subsidiaries, net 8,525 8,501 — (17,026 ) — Total other comprehensive income (loss), net of tax 8,505 8,525 8,501 (17,026 ) 8,505 Comprehensive income (loss) 19,456 51,445 6,238 (57,151 ) 19,988 Less: Comprehensive income attributable to noncontrolling interests — — 532 — 532 Comprehensive income (loss) attributable to HSS $ 19,456 $ 51,445 $ 5,706 $ (57,151 ) $ 19,456 For the Three Months Ended September 30, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 111,750 $ — $ — $ 111,750 Services and other revenue - other — 249,571 32,945 (5,639 ) 276,877 Equipment revenue - DISH Network — 2,138 — — 2,138 Equipment revenue - other — 83,843 5,471 (22,813 ) 66,501 Total revenue — 447,302 38,416 (28,452 ) 457,266 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,241 24,832 (5,486 ) 130,587 Cost of sales - equipment (exclusive of depreciation and amortization) — 71,728 4,039 (22,166 ) 53,601 Selling, general and administrative expenses — 59,574 9,100 (800 ) 67,874 Research and development expenses — 9,030 — — 9,030 Depreciation and amortization — 100,375 4,399 — 104,774 Total costs and expenses — 351,948 42,370 (28,452 ) 365,866 Operating income — 95,354 (3,954 ) — 91,400 Other Income (Expense): Interest income 3,502 9 495 — 4,006 Interest expense, net of amounts capitalized (50,766 ) (3,491 ) 721 — (53,536 ) Gains on marketable investment securities, net 5 — — — 5 Equity in earnings of unconsolidated affiliate — 2,654 — — 2,654 Equity in earnings (losses) of subsidiaries, net 57,324 (1,801 ) — (55,523 ) — Other, net (1 ) (40 ) 17 — (24 ) Total other income (expense), net 10,064 (2,669 ) 1,233 (55,523 ) (46,895 ) Income (loss) before income taxes 10,064 92,685 (2,721 ) (55,523 ) 44,505 Income tax benefit (provision) 17,501 (35,257 ) 1,340 — (16,416 ) Net income (loss) 27,565 57,428 (1,381 ) (55,523 ) 28,089 Less: Net income attributable to noncontrolling interests — — 524 — 524 Net income (loss) attributable to HSS $ 27,565 $ 57,428 $ (1,905 ) $ (55,523 ) $ 27,565 Comprehensive Income (Loss): Net income (loss) $ 27,565 $ 57,428 $ (1,381 ) $ (55,523 ) $ 28,089 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 1,255 — 1,255 Unrealized gains (losses) on available-for-sale securities and other (38 ) 804 (16 ) — 750 Recognition of realized gains on available-for-sale securities in net income (loss) (4 ) — — — (4 ) Equity in other comprehensive income (loss) of subsidiaries, net 2,043 1,239 — (3,282 ) — Total other comprehensive income (loss), net of tax 2,001 2,043 1,239 (3,282 ) 2,001 Comprehensive income (loss) 29,566 59,471 (142 ) (58,805 ) 30,090 Less: Comprehensive income attributable to noncontrolling interests — — 524 — 524 Comprehensive income (loss) attributable to HSS $ 29,566 $ 59,471 $ (666 ) $ (58,805 ) $ 29,566
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 2019 Senior Secured Notes and 2021 Senior Unsecured Notes, which were issued on June 1, 2011, and our 2026 Notes, which were issued on July 27, 2016. See Note 9 for further information on the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 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 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 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, enter into transactions with affiliates or allow to exist certain restrictions on the ability of certain of our subsidiaries to pay dividends, make distributions, make other payments, or transfer assets to us. September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 2,016,026 $ 32,178 $ 27,704 $ — $ 2,075,908 Marketable investment securities, at fair value 194,260 1,646 — — 195,906 Trade accounts receivable, net — 138,268 54,119 — 192,387 Trade accounts receivable - DISH Network, net — 45,626 342 — 45,968 Inventory — 66,569 24,663 — 91,232 Advances to affiliates, net 102,149 45,927 4,907 (50,409 ) 102,574 Other current assets 103 17,652 31,177 (46 ) 48,886 Total current assets 2,312,538 347,866 142,912 (50,455 ) 2,752,861 Restricted cash and cash equivalents 12,379 — 775 — 13,154 Property and equipment, net — 2,559,974 293,817 — 2,853,791 Regulatory authorizations, net — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 62,240 — — 62,240 Investments in unconsolidated entities — 32,858 — — 32,858 Investment in subsidiaries 2,980,162 217,543 — (3,197,705 ) — Advances to affiliates 700 74,701 — (75,401 ) — Deferred tax asset 147,283 — 18,716 (147,283 ) 18,716 Other noncurrent assets, net — 173,262 12,709 — 185,971 Total assets $ 5,453,062 $ 4,444,275 $ 468,929 $ (3,470,844 ) $ 6,895,422 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 95,446 $ 22,169 $ — $ 117,615 Trade accounts payable - DISH Network — 5,470 — — 5,470 Current portion of long-term debt and capital lease obligations — 34,923 3,484 — 38,407 Advances from affiliates, net — 4,532 46,204 (50,409 ) 327 Accrued expenses and other 54,622 140,345 46,532 (46 ) 241,453 Total current liabilities 54,622 280,716 118,389 (50,455 ) 403,272 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 3,363,244 236,337 6,134 — 3,605,715 Deferred tax liabilities, net — 840,194 144 (147,283 ) 693,055 Advances from affiliates — — 108,876 (75,401 ) 33,475 Other non-current liabilities — 107,608 3,265 — 110,873 Total HSS shareholders’ equity (deficit) 2,035,196 2,979,420 218,285 (3,197,705 ) 2,035,196 Noncontrolling interests — — 13,836 — 13,836 Total liabilities and shareholders’ equity (deficit) $ 5,453,062 $ 4,444,275 $ 468,929 $ (3,470,844 ) $ 6,895,422 December 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,991,949 $ 53,905 $ 25,110 $ — $ 2,070,964 Marketable investment securities, at fair value 177,614 10,309 — — 187,923 Trade accounts receivable, net — 138,861 43,651 — 182,512 Trade accounts receivable - DISH Network, net — 19,323 — — 19,323 Inventory — 45,623 17,015 — 62,638 Advances to affiliates, net 10 999,340 4,968 (893,866 ) 110,452 Other current assets 48 19,183 27,083 — 46,314 Total current assets 2,169,621 1,286,544 117,827 (893,866 ) 2,680,126 Restricted cash and cash equivalents 11,097 — 723 — 11,820 Property and equipment, net — 2,061,831 232,895 — 2,294,726 Regulatory authorizations, net — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 80,734 — — 80,734 Investments in unconsolidated entities — 42,560 — — 42,560 Investment in subsidiaries 3,721,688 314,643 — (4,036,331 ) — Advances to affiliates 700 60,761 — (61,461 ) — Deferred tax asset 92,727 — 9,150 (92,727 ) 9,150 Other noncurrent assets, net — 142,091 144,496 — 286,587 Total assets $ 5,995,833 $ 4,964,995 $ 505,091 $ (5,084,385 ) $ 6,381,534 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 94,089 $ 12,321 $ — $ 106,410 Trade accounts payable - DISH Network — 6 — — 6 Current portion of long-term debt and capital lease obligations — 32,177 807 — 32,984 Advances from affiliates, net 850,807 12,228 31,429 (893,866 ) 598 Accrued expenses and other 44,654 136,921 38,738 — 220,313 Total current liabilities 895,461 275,421 83,295 (893,866 ) 360,311 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 3,358,179 262,883 1,401 — 3,622,463 Deferred tax liabilities, net — 621,061 128 (92,727 ) 528,462 Advances from affiliates — — 93,429 (61,461 ) 31,968 Other non-current liabilities — 80,532 2,775 — 83,307 Total HSS shareholders’ equity (deficit) 1,742,193 3,725,098 311,233 (4,036,331 ) 1,742,193 Noncontrolling interests — — 12,830 — 12,830 Total liabilities and shareholders’ equity (deficit) $ 5,995,833 $ 4,964,995 $ 505,091 $ (5,084,385 ) $ 6,381,534 For the Three Months Ended September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 107,765 $ 499 $ — $ 108,264 Services and other revenue - other — 273,821 47,333 (10,181 ) 310,973 Equipment revenue - DISH Network — 126 — — 126 Equipment revenue - other — 59,519 6,242 (6,762 ) 58,999 Total revenue — 441,231 54,074 (16,943 ) 478,362 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,662 35,625 (9,624 ) 137,663 Cost of sales - equipment (exclusive of depreciation and amortization) — 54,137 4,623 (6,709 ) 52,051 Selling, general and administrative expenses — 72,492 11,630 (610 ) 83,512 Research and development expenses — 8,302 — — 8,302 Depreciation and amortization — 117,702 10,213 — 127,915 Total costs and expenses — 364,295 62,091 (16,943 ) 409,443 Operating income — 76,936 (8,017 ) — 68,919 Other Income (Expense): Interest income 7,667 200 653 (199 ) 8,321 Interest expense, net of amounts capitalized (57,372 ) (4,282 ) 672 199 (60,783 ) Equity in earnings of unconsolidated affiliate — 1,948 — — 1,948 Equity in earnings (losses) of subsidiaries, net 42,830 (2,705 ) — (40,125 ) — Other, net — (85 ) 1,889 — 1,804 Total other income (expense), net (6,875 ) (4,924 ) 3,214 (40,125 ) (48,710 ) Income (loss) before income taxes (6,875 ) 72,012 (4,803 ) (40,125 ) 20,209 Income tax benefit (provision) 17,826 (29,092 ) 2,540 — (8,726 ) Net income (loss) 10,951 42,920 (2,263 ) (40,125 ) 11,483 Less: Net income attributable to noncontrolling interests — — 532 — 532 Net income (loss) attributable to HSS $ 10,951 $ 42,920 $ (2,795 ) $ (40,125 ) $ 10,951 Comprehensive Income (Loss): Net income (loss) $ 10,951 $ 42,920 $ (2,263 ) $ (40,125 ) $ 11,483 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 8,571 — 8,571 Unrealized gains (losses) on available-for-sale securities and other (20 ) 24 (70 ) — (66 ) Equity in other comprehensive income (loss) of subsidiaries, net 8,525 8,501 — (17,026 ) — Total other comprehensive income (loss), net of tax 8,505 8,525 8,501 (17,026 ) 8,505 Comprehensive income (loss) 19,456 51,445 6,238 (57,151 ) 19,988 Less: Comprehensive income attributable to noncontrolling interests — — 532 — 532 Comprehensive income (loss) attributable to HSS $ 19,456 $ 51,445 $ 5,706 $ (57,151 ) $ 19,456 For the Three Months Ended September 30, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 111,750 $ — $ — $ 111,750 Services and other revenue - other — 249,571 32,945 (5,639 ) 276,877 Equipment revenue - DISH Network — 2,138 — — 2,138 Equipment revenue - other — 83,843 5,471 (22,813 ) 66,501 Total revenue — 447,302 38,416 (28,452 ) 457,266 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,241 24,832 (5,486 ) 130,587 Cost of sales - equipment (exclusive of depreciation and amortization) — 71,728 4,039 (22,166 ) 53,601 Selling, general and administrative expenses — 59,574 9,100 (800 ) 67,874 Research and development expenses — 9,030 — — 9,030 Depreciation and amortization — 100,375 4,399 — 104,774 Total costs and expenses — 351,948 42,370 (28,452 ) 365,866 Operating income — 95,354 (3,954 ) — 91,400 Other Income (Expense): Interest income 3,502 9 495 — 4,006 Interest expense, net of amounts capitalized (50,766 ) (3,491 ) 721 — (53,536 ) Gains on marketable investment securities, net 5 — — — 5 Equity in earnings of unconsolidated affiliate — 2,654 — — 2,654 Equity in earnings (losses) of subsidiaries, net 57,324 (1,801 ) — (55,523 ) — Other, net (1 ) (40 ) 17 — (24 ) Total other income (expense), net 10,064 (2,669 ) 1,233 (55,523 ) (46,895 ) Income (loss) before income taxes 10,064 92,685 (2,721 ) (55,523 ) 44,505 Income tax benefit (provision) 17,501 (35,257 ) 1,340 — (16,416 ) Net income (loss) 27,565 57,428 (1,381 ) (55,523 ) 28,089 Less: Net income attributable to noncontrolling interests — — 524 — 524 Net income (loss) attributable to HSS $ 27,565 $ 57,428 $ (1,905 ) $ (55,523 ) $ 27,565 Comprehensive Income (Loss): Net income (loss) $ 27,565 $ 57,428 $ (1,381 ) $ (55,523 ) $ 28,089 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 1,255 — 1,255 Unrealized gains (losses) on available-for-sale securities and other (38 ) 804 (16 ) — 750 Recognition of realized gains on available-for-sale securities in net income (loss) (4 ) — — — (4 ) Equity in other comprehensive income (loss) of subsidiaries, net 2,043 1,239 — (3,282 ) — Total other comprehensive income (loss), net of tax 2,001 2,043 1,239 (3,282 ) 2,001 Comprehensive income (loss) 29,566 59,471 (142 ) (58,805 ) 30,090 Less: Comprehensive income attributable to noncontrolling interests — — 524 — 524 Comprehensive income (loss) attributable to HSS $ 29,566 $ 59,471 $ (666 ) $ (58,805 ) $ 29,566 For the Nine Months Ended September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 20,206 $ 118,095 $ (12,666 ) $ (104,423 ) $ 21,212 Adjustments to reconcile net income (loss) to net cash flows from operating activities 66,702 160,917 16,592 104,423 348,634 Net cash flows from operating activities 86,908 279,012 3,926 — 369,846 Cash Flows from Investing Activities: Purchases of marketable investment securities (170,158 ) — — — (170,158 ) Sales and maturities of marketable investment securities 152,423 — — — 152,423 Expenditures for property and equipment — (243,409 ) (48,566 ) — (291,975 ) Changes in restricted cash and cash equivalents (1,282 ) — (52 ) — (1,334 ) Investment in subsidiary (44,000 ) (47,500 ) — 91,500 — Expenditures for externally marketed software — (25,447 ) — — (25,447 ) Net cash flows from investing activities (63,017 ) (316,356 ) (48,618 ) 91,500 (336,491 ) Cash Flows from Financing Activities: Payments of debt issuance costs (414 ) — — — (414 ) Proceeds from capital contribution from parent — 44,000 47,500 (91,500 ) — Repayment of debt and capital lease obligations — (23,800 ) (1,987 ) — (25,787 ) Advances from affiliates — — (36 ) — (36 ) Other, net 600 (4,583 ) 886 — (3,097 ) Net cash flows from financing activities 186 15,617 46,363 (91,500 ) (29,334 ) Effect of exchange rates on cash and cash equivalents — — 923 — 923 Net increase (decrease) in cash and cash equivalents 24,077 (21,727 ) 2,594 — 4,944 Cash and cash equivalents, at beginning of period 1,991,949 53,905 25,110 — 2,070,964 Cash and cash equivalents, at end of period $ 2,016,026 $ 32,178 $ 27,704 $ — $ 2,075,908 For the Nine Months Ended September 30, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 99,172 $ 164,874 $ (963 ) $ (162,965 ) $ 100,118 Adjustments to reconcile net income (loss) to net cash flows from operating activities 63,754 96,870 23,109 162,965 346,698 Net cash flows from operating activities 162,926 261,744 22,146 — 446,816 Cash Flows from Investing Activities: Purchases of marketable investment securities (396,730 ) — — — (396,730 ) Sales and maturities of marketable investment securities 265,680 — — — 265,680 Expenditures for property and equipment — (235,462 ) (76,541 ) — (312,003 ) Expenditures for externally marketed software — (17,991 ) — — (17,991 ) Changes in restricted cash and cash equivalents 203 7,500 (89 ) — 7,614 Investment in unconsolidated entity — (1,636 ) — — (1,636 ) Investment in subsidiary (58,647 ) (58,672 ) — 117,319 — Payment for EchoStar XXI launch services — — (11,875 ) — (11,875 ) Other, net — 340 — (340 ) — Net cash flows from investing activities (189,494 ) (305,921 ) (88,505 ) 116,979 (466,941 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt 1,500,000 — — — 1,500,000 Payments of debt issuance costs (6,275 ) — — — (6,275 ) Proceeds from capital contributions from parent — 58,647 58,672 (117,319 ) — Capital contribution from EchoStar 11,875 — — — 11,875 Repayment of debt and capital lease obligations — (21,321 ) (2,731 ) — (24,052 ) Advances from affiliates — — 5,481 — 5,481 Other, net 9 (4,304 ) 988 340 (2,967 ) Net cash flows from financing activities 1,505,609 33,022 62,410 (116,979 ) 1,484,062 Effect of exchange rates on cash and cash equivalents — — 660 — 660 Net increase (decrease) in cash and cash equivalents 1,479,041 (11,155 ) (3,289 ) — 1,464,597 Cash and cash equivalents, at beginning of period 300,634 55,767 26,589 — 382,990 Cash and cash equivalents, at end of period $ 1,779,675 $ 44,612 $ 23,300 $ — $ 1,847,587

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity 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 conformity 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, 2016
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 nine months ended September 30, 2017 or 2016 . As of September 30, 2017 and December 31, 2016 , 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 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 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”), 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes”) and 6.625% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”) (see Note 9 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of September 30, 2017 and December 31, 2016 , 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 $100.6 million and $74.1 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy.
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 generally is 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 (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and has modified the standard thereafter. It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, 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.” Public entities are required to adopt the new revenue standard in fiscal years beginning after December 15, 2017 and in interim periods within those fiscal years. 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 fiscal years beginning after December 15, 2016. We plan to adopt the new revenue standard as of January 1, 2018 using the “modified retrospective method.” Under this method, we will apply the rules only to contracts that are not substantially completed as of January 1, 2018, recognizing in retained earnings an adjustment for the cumulative effect of the change and providing additional disclosures comparing results to previous accounting standards. Upon initial evaluation, we do not expect the adoption of ASU 2014-09 to have a material impact on the timing or amount of revenue recognition. However, we do believe the new standard will impact our financial statements as it relates to the deferral of sales commissions. We generally expense sales commissions as incurred under the current standard with the exception of the consumer business in our Hughes segment. The requirement to defer incremental contract acquisition costs and recognize them over the contract period or expected customer life will result in the recognition of a deferred charge on our consolidated balance sheets and corresponding impact to the consolidated statement of operations and comprehensive income (loss). In addition, we currently amortize our sales acquisition costs related to our consumer business in our Hughes segment over the contract term. We believe, under the new guidance, the amortization period for these contract acquisition costs will be over the estimated customer life which is a longer period of time. We continue to evaluate the impact of the new standard on our consolidated financial statements and related disclosures. We are not able to reasonably estimate the impact of the new standard on our consolidated financial statements at this time. 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, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through net income. The update permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for certain requirements. We plan to adopt all applicable requirements of this update as of January 1, 2018. Upon adoption, we will adjust accumulated earnings to include unrealized gains or losses on any marketable equity securities then designated as available for sale, which historically have been recorded in accumulated other comprehensive loss except when an other-than-temporary impairment has occurred. Following adoption, all periodic changes in fair value of such securities will be recognized in net income or loss. As of September 30, 2017, we had recognized $0.1 million in net unrealized gains on such securities in accumulated other comprehensive loss. For our equity investments without a readily determinable fair value that we now account for using the cost method, we expect to elect to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in available-for-sale and cost method equity securities. We continue to assess the impact on our consolidated financial statements of certain requirements of ASU 2016-01 related to measurement of fair value of financial instruments, deferred tax assets related to available-for-sale debt securities, and financial statement presentation and disclosure. 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 fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments rather than incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We early adopted ASU 2016-16 as of January 1, 2017. Our adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This standard requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and the standard must be applied retrospectively to all periods presented. We expect to adopt ASU 2016-18 as of January 1, 2018. Following our adoption of this standard, the beginning and ending balances of cash and cash equivalents presented in our consolidated statements of cash flows will include amounts for restricted cash and cash equivalents, which currently are not included in such balances. Changes in restricted cash and cash equivalents, which we have historically reported in cash flows from investing activities, will not be reported in our consolidated statements of cash flows. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying amount, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and is to be applied on a prospective basis. We early adopted ASU 2017-04 as of January 1, 2017. Our adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures, but it may impact the recognition and measurement of a goodwill impairment loss in future periods if we determine that the carrying amount of any reporting units including goodwill exceeds fair value of the reporting unit. In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This update shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date, effectively reducing interest income on such securities prior to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

Other Comprehensive Income (L22

Other Comprehensive Income (Loss) and Related Tax Effects Other Comprehensive Income (Loss) and Related Tax Effects (Tables)	9 Months Ended
	Sep. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Reclassification out of Accumulated Other Comprehensive Income	Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Condensed Consolidated Statements of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains on marketable investment securities $ — $ (4 ) $ — $ (2,989 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities — — 3,298 — Total reclassifications, net of tax and noncontrolling interests $ — $ (4 ) $ 3,298 $ (2,989 ) (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains on marketable investment securities, net” in our condensed consolidated statements of operations and comprehensive income (loss). (2) We recorded an other-than-temporary impairment loss on shares of certain common stock included in our strategic equity securities.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Schedule of marketable investment securities and investments in unconsolidated entities	Our marketable investment securities consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 132,986 $ 164,619 Strategic equity securities 1,646 10,309 Other 61,274 12,995 Total marketable investment securities—current $ 195,906 $ 187,923
Schedule of unrealized gains (losses) on marketable investment securities	The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of September 30, 2017 Debt securities: Corporate bonds $ 132,994 $ 19 $ (27 ) $ 132,986 Other 61,276 — (2 ) 61,274 Equity securities - strategic 1,536 110 — 1,646 Total available-for-sale securities $ 195,806 $ 129 $ (29 ) $ 195,906 As of December 31, 2016 Debt securities: Corporate bonds $ 164,563 $ 94 $ (38 ) $ 164,619 Other 12,994 1 — 12,995 Equity securities - strategic 4,834 — (1,724 ) 3,110 Total available-for-sale securities $ 182,391 $ 95 $ (1,762 ) $ 180,724
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 September 30, 2017 December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Less than 12 months $ 112,110 $ (27 ) $ 62,473 $ (1,760 ) 12 months or more 9,399 (2 ) 1,571 (2 ) Total $ 121,509 $ (29 ) $ 64,044 $ (1,762 )
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 September 30, 2017 and December 31, 2016 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of September 30, 2017 December 31, 2016 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents $ 2,016,027 $ 12,821 $ 2,003,206 $ 1,991,949 $ 14,011 $ 1,977,938 Debt securities: Corporate bonds $ 132,986 $ — $ 132,986 $ 164,619 $ — $ 164,619 Other 61,274 — 61,274 12,995 — 12,995 Equity securities - strategic 1,646 1,646 — 10,309 10,309 — Total marketable investment securities $ 195,906 $ 1,646 $ 194,260 $ 187,923 $ 10,309 $ 177,614
Schedule of investments in unconsolidated entities	Our investments in unconsolidated entities consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Investments in unconsolidated entities—noncurrent: Cost method $ 15,438 $ 15,438 Equity method 17,420 27,122 Total investments in unconsolidated entities—noncurrent $ 32,858 $ 42,560

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of trade accounts receivable	Our trade accounts receivable consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Trade accounts receivable $ 181,555 $ 159,094 Contracts in process, net 24,043 36,170 Total trade accounts receivable 205,598 195,264 Allowance for doubtful accounts (13,211 ) (12,752 ) Trade accounts receivable - DISH Network 45,968 19,323 Total trade accounts receivable, net $ 238,355 $ 201,835

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory, Net [Abstract]
Schedule of inventory	Our inventory consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Finished goods $ 74,693 $ 49,773 Raw materials 6,901 6,678 Work-in-process 9,638 6,187 Total inventory $ 91,232 $ 62,638

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) Satellites $ 56,953 $ 46,965 $ 166,419 $ 140,895 Furniture, fixtures, equipment and other 21,428 16,739 58,078 44,883 Customer rental equipment 39,104 28,652 103,781 86,789 Buildings and improvements 1,306 1,042 3,972 3,151 Total depreciation expense $ 118,791 $ 93,398 $ 332,250 $ 275,718 Depreciable Life (In Years) As of September 30, 2017 December 31, 2016 (In thousands) Land — $ 13,443 $ 13,273 Buildings and improvements 1 - 30 127,652 79,765 Furniture, fixtures, equipment and other 1 - 12 576,423 430,078 Customer rental equipment 2 - 4 859,596 689,579 Satellites - owned 2 - 15 2,516,684 2,381,120 Satellites acquired under capital leases 10 - 15 794,705 781,761 Construction in progress — 398,585 422,337 Total property and equipment 5,287,088 4,797,913 Accumulated depreciation (2,433,297 ) (2,503,187 ) Property and equipment, net $ 2,853,791 $ 2,294,726
Schedule of construction in progress	Construction in progress consisted of the following: As of September 30, 2017 December 31, 2016 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 296,358 $ 244,234 Satellite related equipment 83,907 152,683 Other 18,320 25,420 Construction in progress $ 398,585 $ 422,337 Construction in progress included the following owned and leased satellites under construction or undergoing in-orbit testing as of September 30, 2017 . Satellites Segment Expected Launch Date EchoStar 105/SES-11 ESS October 2017 (1) Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in October 2017 and is expected to be placed in service during the fourth quarter of 2017. (2) We entered into a satellite services agreement for certain capacity on this satellite once launched, but are not party to the construction contract.

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 December 31, 2016 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (228,355 ) $ 41,945 $ 270,300 $ (214,544 ) $ 55,756 Technology-based 6 51,417 (51,417 ) — 51,417 (47,848 ) 3,569 Trademark portfolio 20 29,700 (9,405 ) 20,295 29,700 (8,291 ) 21,409 Total other intangible assets $ 351,417 $ (289,177 ) $ 62,240 $ 351,417 $ (270,683 ) $ 80,734

Debt and Capital Lease Obliga28

Debt and Capital Lease Obligations (Tables)	9 Months Ended
	Sep. 30, 2017
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: Effective Interest Rate As of September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,056,825 $ 990,000 $ 1,084,050 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 783,038 750,000 739,688 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 1,023,408 900,000 990,189 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 806,910 750,000 760,245 Less: Unamortized debt issuance costs (26,756 ) — (31,821 ) — Subtotal 3,363,244 $ 3,670,181 3,358,179 $ 3,574,172 Capital lease obligations 280,878 297,268 Total debt and capital lease obligations 3,644,122 3,655,447 Less: Current portion (38,407 ) (32,984 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,605,715 $ 3,622,463

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of revenue, EBITDA, and capital expenditures by operating segments	The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Satellite Services Corporate and Other Consolidated Total (In thousands) For the Three Months Ended September 30, 2017 External revenue $ 379,702 $ 96,743 $ 1,917 $ 478,362 Intersegment revenue $ 359 $ 350 $ (709 ) $ — Total revenue $ 380,061 $ 97,093 $ 1,208 $ 478,362 EBITDA $ 131,817 $ 78,345 $ (10,108 ) $ 200,054 Capital expenditures $ 108,428 $ 8,203 $ — $ 116,631 For the Three Months Ended September 30, 2016 External revenue $ 355,090 $ 101,308 $ 868 $ 457,266 Intersegment revenue $ 786 $ 172 $ (958 ) $ — Total revenue $ 355,876 $ 101,480 $ (90 ) $ 457,266 EBITDA $ 125,522 $ 84,257 $ (11,494 ) $ 198,285 Capital expenditures $ 75,682 $ 15,730 $ — $ 91,412 For the Nine Months Ended September 30, 2017 External revenue $ 1,070,715 $ 294,839 $ 5,191 $ 1,370,745 Intersegment revenue $ 1,428 $ 946 $ (2,374 ) $ — Total revenue $ 1,072,143 $ 295,785 $ 2,817 $ 1,370,745 EBITDA $ 342,693 $ 241,873 $ (34,099 ) $ 550,467 Capital expenditures $ 270,624 $ 21,351 $ — $ 291,975 For the Nine Months Ended September 30, 2016 External revenue $ 1,019,203 $ 305,401 $ 2,506 $ 1,327,110 Intersegment revenue $ 2,248 $ 518 $ (2,766 ) $ — Total revenue $ 1,021,451 $ 305,919 $ (260 ) $ 1,327,110 EBITDA $ 353,505 $ 257,181 $ (24,590 ) $ 586,096 Capital expenditures $ 261,241 $ 50,762 $ — $ 312,003
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 For the Nine Months Ended September 30, 2017 2016 2017 2016 (In thousands) EBITDA $ 200,054 $ 198,285 $ 550,467 $ 586,096 Interest income and expense, net (52,462 ) (49,530 ) (160,748 ) (120,199 ) Depreciation and amortization (127,915 ) (104,774 ) (364,878 ) (309,448 ) Net income attributable to noncontrolling interests 532 524 1,006 946 Income before income taxes $ 20,209 $ 44,505 $ 25,847 $ 157,395

Supplemental Guarantor and No30

Supplemental Guarantor and Non-Guarantor Financial Information (Tables)	9 Months Ended
	Sep. 30, 2017
Supplemental Guarantor and Non-Guarantor Financial Information
Schedule of consolidating balance sheet	Condensed Consolidating Balance Sheet as of September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 2,016,026 $ 32,178 $ 27,704 $ — $ 2,075,908 Marketable investment securities, at fair value 194,260 1,646 — — 195,906 Trade accounts receivable, net — 138,268 54,119 — 192,387 Trade accounts receivable - DISH Network, net — 45,626 342 — 45,968 Inventory — 66,569 24,663 — 91,232 Advances to affiliates, net 102,149 45,927 4,907 (50,409 ) 102,574 Other current assets 103 17,652 31,177 (46 ) 48,886 Total current assets 2,312,538 347,866 142,912 (50,455 ) 2,752,861 Restricted cash and cash equivalents 12,379 — 775 — 13,154 Property and equipment, net — 2,559,974 293,817 — 2,853,791 Regulatory authorizations, net — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 62,240 — — 62,240 Investments in unconsolidated entities — 32,858 — — 32,858 Investment in subsidiaries 2,980,162 217,543 — (3,197,705 ) — Advances to affiliates 700 74,701 — (75,401 ) — Deferred tax asset 147,283 — 18,716 (147,283 ) 18,716 Other noncurrent assets, net — 173,262 12,709 — 185,971 Total assets $ 5,453,062 $ 4,444,275 $ 468,929 $ (3,470,844 ) $ 6,895,422 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 95,446 $ 22,169 $ — $ 117,615 Trade accounts payable - DISH Network — 5,470 — — 5,470 Current portion of long-term debt and capital lease obligations — 34,923 3,484 — 38,407 Advances from affiliates, net — 4,532 46,204 (50,409 ) 327 Accrued expenses and other 54,622 140,345 46,532 (46 ) 241,453 Total current liabilities 54,622 280,716 118,389 (50,455 ) 403,272 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 3,363,244 236,337 6,134 — 3,605,715 Deferred tax liabilities, net — 840,194 144 (147,283 ) 693,055 Advances from affiliates — — 108,876 (75,401 ) 33,475 Other non-current liabilities — 107,608 3,265 — 110,873 Total HSS shareholders’ equity (deficit) 2,035,196 2,979,420 218,285 (3,197,705 ) 2,035,196 Noncontrolling interests — — 13,836 — 13,836 Total liabilities and shareholders’ equity (deficit) $ 5,453,062 $ 4,444,275 $ 468,929 $ (3,470,844 ) $ 6,895,422 December 31, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,991,949 $ 53,905 $ 25,110 $ — $ 2,070,964 Marketable investment securities, at fair value 177,614 10,309 — — 187,923 Trade accounts receivable, net — 138,861 43,651 — 182,512 Trade accounts receivable - DISH Network, net — 19,323 — — 19,323 Inventory — 45,623 17,015 — 62,638 Advances to affiliates, net 10 999,340 4,968 (893,866 ) 110,452 Other current assets 48 19,183 27,083 — 46,314 Total current assets 2,169,621 1,286,544 117,827 (893,866 ) 2,680,126 Restricted cash and cash equivalents 11,097 — 723 — 11,820 Property and equipment, net — 2,061,831 232,895 — 2,294,726 Regulatory authorizations, net — 471,658 — — 471,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 80,734 — — 80,734 Investments in unconsolidated entities — 42,560 — — 42,560 Investment in subsidiaries 3,721,688 314,643 — (4,036,331 ) — Advances to affiliates 700 60,761 — (61,461 ) — Deferred tax asset 92,727 — 9,150 (92,727 ) 9,150 Other noncurrent assets, net — 142,091 144,496 — 286,587 Total assets $ 5,995,833 $ 4,964,995 $ 505,091 $ (5,084,385 ) $ 6,381,534 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 94,089 $ 12,321 $ — $ 106,410 Trade accounts payable - DISH Network — 6 — — 6 Current portion of long-term debt and capital lease obligations — 32,177 807 — 32,984 Advances from affiliates, net 850,807 12,228 31,429 (893,866 ) 598 Accrued expenses and other 44,654 136,921 38,738 — 220,313 Total current liabilities 895,461 275,421 83,295 (893,866 ) 360,311 Long-term debt and capital lease obligations, net of unamortized debt issuance costs 3,358,179 262,883 1,401 — 3,622,463 Deferred tax liabilities, net — 621,061 128 (92,727 ) 528,462 Advances from affiliates — — 93,429 (61,461 ) 31,968 Other non-current liabilities — 80,532 2,775 — 83,307 Total HSS shareholders’ equity (deficit) 1,742,193 3,725,098 311,233 (4,036,331 ) 1,742,193 Noncontrolling interests — — 12,830 — 12,830 Total liabilities and shareholders’ equity (deficit) $ 5,995,833 $ 4,964,995 $ 505,091 $ (5,084,385 ) $ 6,381,534
Schedule of consolidating statement of operations and comprehensive income (loss)	Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 107,765 $ 499 $ — $ 108,264 Services and other revenue - other — 273,821 47,333 (10,181 ) 310,973 Equipment revenue - DISH Network — 126 — — 126 Equipment revenue - other — 59,519 6,242 (6,762 ) 58,999 Total revenue — 441,231 54,074 (16,943 ) 478,362 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,662 35,625 (9,624 ) 137,663 Cost of sales - equipment (exclusive of depreciation and amortization) — 54,137 4,623 (6,709 ) 52,051 Selling, general and administrative expenses — 72,492 11,630 (610 ) 83,512 Research and development expenses — 8,302 — — 8,302 Depreciation and amortization — 117,702 10,213 — 127,915 Total costs and expenses — 364,295 62,091 (16,943 ) 409,443 Operating income — 76,936 (8,017 ) — 68,919 Other Income (Expense): Interest income 7,667 200 653 (199 ) 8,321 Interest expense, net of amounts capitalized (57,372 ) (4,282 ) 672 199 (60,783 ) Equity in earnings of unconsolidated affiliate — 1,948 — — 1,948 Equity in earnings (losses) of subsidiaries, net 42,830 (2,705 ) — (40,125 ) — Other, net — (85 ) 1,889 — 1,804 Total other income (expense), net (6,875 ) (4,924 ) 3,214 (40,125 ) (48,710 ) Income (loss) before income taxes (6,875 ) 72,012 (4,803 ) (40,125 ) 20,209 Income tax benefit (provision) 17,826 (29,092 ) 2,540 — (8,726 ) Net income (loss) 10,951 42,920 (2,263 ) (40,125 ) 11,483 Less: Net income attributable to noncontrolling interests — — 532 — 532 Net income (loss) attributable to HSS $ 10,951 $ 42,920 $ (2,795 ) $ (40,125 ) $ 10,951 Comprehensive Income (Loss): Net income (loss) $ 10,951 $ 42,920 $ (2,263 ) $ (40,125 ) $ 11,483 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 8,571 — 8,571 Unrealized gains (losses) on available-for-sale securities and other (20 ) 24 (70 ) — (66 ) Equity in other comprehensive income (loss) of subsidiaries, net 8,525 8,501 — (17,026 ) — Total other comprehensive income (loss), net of tax 8,505 8,525 8,501 (17,026 ) 8,505 Comprehensive income (loss) 19,456 51,445 6,238 (57,151 ) 19,988 Less: Comprehensive income attributable to noncontrolling interests — — 532 — 532 Comprehensive income (loss) attributable to HSS $ 19,456 $ 51,445 $ 5,706 $ (57,151 ) $ 19,456 For the Three Months Ended September 30, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 111,750 $ — $ — $ 111,750 Services and other revenue - other — 249,571 32,945 (5,639 ) 276,877 Equipment revenue - DISH Network — 2,138 — — 2,138 Equipment revenue - other — 83,843 5,471 (22,813 ) 66,501 Total revenue — 447,302 38,416 (28,452 ) 457,266 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 111,241 24,832 (5,486 ) 130,587 Cost of sales - equipment (exclusive of depreciation and amortization) — 71,728 4,039 (22,166 ) 53,601 Selling, general and administrative expenses — 59,574 9,100 (800 ) 67,874 Research and development expenses — 9,030 — — 9,030 Depreciation and amortization — 100,375 4,399 — 104,774 Total costs and expenses — 351,948 42,370 (28,452 ) 365,866 Operating income — 95,354 (3,954 ) — 91,400 Other Income (Expense): Interest income 3,502 9 495 — 4,006 Interest expense, net of amounts capitalized (50,766 ) (3,491 ) 721 — (53,536 ) Gains on marketable investment securities, net 5 — — — 5 Equity in earnings of unconsolidated affiliate — 2,654 — — 2,654 Equity in earnings (losses) of subsidiaries, net 57,324 (1,801 ) — (55,523 ) — Other, net (1 ) (40 ) 17 — (24 ) Total other income (expense), net 10,064 (2,669 ) 1,233 (55,523 ) (46,895 ) Income (loss) before income taxes 10,064 92,685 (2,721 ) (55,523 ) 44,505 Income tax benefit (provision) 17,501 (35,257 ) 1,340 — (16,416 ) Net income (loss) 27,565 57,428 (1,381 ) (55,523 ) 28,089 Less: Net income attributable to noncontrolling interests — — 524 — 524 Net income (loss) attributable to HSS $ 27,565 $ 57,428 $ (1,905 ) $ (55,523 ) $ 27,565 Comprehensive Income (Loss): Net income (loss) $ 27,565 $ 57,428 $ (1,381 ) $ (55,523 ) $ 28,089 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 1,255 — 1,255 Unrealized gains (losses) on available-for-sale securities and other (38 ) 804 (16 ) — 750 Recognition of realized gains on available-for-sale securities in net income (loss) (4 ) — — — (4 ) Equity in other comprehensive income (loss) of subsidiaries, net 2,043 1,239 — (3,282 ) — Total other comprehensive income (loss), net of tax 2,001 2,043 1,239 (3,282 ) 2,001 Comprehensive income (loss) 29,566 59,471 (142 ) (58,805 ) 30,090 Less: Comprehensive income attributable to noncontrolling interests — — 524 — 524 Comprehensive income (loss) attributable to HSS $ 29,566 $ 59,471 $ (666 ) $ (58,805 ) $ 29,566
Schedule of consolidating statement of cash flows	Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 20,206 $ 118,095 $ (12,666 ) $ (104,423 ) $ 21,212 Adjustments to reconcile net income (loss) to net cash flows from operating activities 66,702 160,917 16,592 104,423 348,634 Net cash flows from operating activities 86,908 279,012 3,926 — 369,846 Cash Flows from Investing Activities: Purchases of marketable investment securities (170,158 ) — — — (170,158 ) Sales and maturities of marketable investment securities 152,423 — — — 152,423 Expenditures for property and equipment — (243,409 ) (48,566 ) — (291,975 ) Changes in restricted cash and cash equivalents (1,282 ) — (52 ) — (1,334 ) Investment in subsidiary (44,000 ) (47,500 ) — 91,500 — Expenditures for externally marketed software — (25,447 ) — — (25,447 ) Net cash flows from investing activities (63,017 ) (316,356 ) (48,618 ) 91,500 (336,491 ) Cash Flows from Financing Activities: Payments of debt issuance costs (414 ) — — — (414 ) Proceeds from capital contribution from parent — 44,000 47,500 (91,500 ) — Repayment of debt and capital lease obligations — (23,800 ) (1,987 ) — (25,787 ) Advances from affiliates — — (36 ) — (36 ) Other, net 600 (4,583 ) 886 — (3,097 ) Net cash flows from financing activities 186 15,617 46,363 (91,500 ) (29,334 ) Effect of exchange rates on cash and cash equivalents — — 923 — 923 Net increase (decrease) in cash and cash equivalents 24,077 (21,727 ) 2,594 — 4,944 Cash and cash equivalents, at beginning of period 1,991,949 53,905 25,110 — 2,070,964 Cash and cash equivalents, at end of period $ 2,016,026 $ 32,178 $ 27,704 $ — $ 2,075,908 For the Nine Months Ended September 30, 2016 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities: Net income (loss) $ 99,172 $ 164,874 $ (963 ) $ (162,965 ) $ 100,118 Adjustments to reconcile net income (loss) to net cash flows from operating activities 63,754 96,870 23,109 162,965 346,698 Net cash flows from operating activities 162,926 261,744 22,146 — 446,816 Cash Flows from Investing Activities: Purchases of marketable investment securities (396,730 ) — — — (396,730 ) Sales and maturities of marketable investment securities 265,680 — — — 265,680 Expenditures for property and equipment — (235,462 ) (76,541 ) — (312,003 ) Expenditures for externally marketed software — (17,991 ) — — (17,991 ) Changes in restricted cash and cash equivalents 203 7,500 (89 ) — 7,614 Investment in unconsolidated entity — (1,636 ) — — (1,636 ) Investment in subsidiary (58,647 ) (58,672 ) — 117,319 — Payment for EchoStar XXI launch services — — (11,875 ) — (11,875 ) Other, net — 340 — (340 ) — Net cash flows from investing activities (189,494 ) (305,921 ) (88,505 ) 116,979 (466,941 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt 1,500,000 — — — 1,500,000 Payments of debt issuance costs (6,275 ) — — — (6,275 ) Proceeds from capital contributions from parent — 58,647 58,672 (117,319 ) — Capital contribution from EchoStar 11,875 — — — 11,875 Repayment of debt and capital lease obligations — (21,321 ) (2,731 ) — (24,052 ) Advances from affiliates — — 5,481 — 5,481 Other, net 9 (4,304 ) 988 340 (2,967 ) Net cash flows from financing activities 1,505,609 33,022 62,410 (116,979 ) 1,484,062 Effect of exchange rates on cash and cash equivalents — — 660 — 660 Net increase (decrease) in cash and cash equivalents 1,479,041 (11,155 ) (3,289 ) — 1,464,597 Cash and cash equivalents, at beginning of period 300,634 55,767 26,589 — 382,990 Cash and cash equivalents, at end of period $ 1,779,675 $ 44,612 $ 23,300 $ — $ 1,847,587

Organization and Business Act31

Organization and Business Activities (Details) $ in Millions	Mar. 02, 2014USD ($)satellite	Mar. 31, 2014satellite	Sep. 30, 2017segment	Jan. 31, 2017
Related party transactions
Number of business segments | segment			2
Hughes Retail Group | DISH Network | Satellite And Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock
Related party transactions
Percentage of economic interest in the Hughes Retail Group	80.00%
EchoStar Technologies Business | DISH Network | Share Exchange Agreement
Related party transactions
Ownership interest acquired by related party				100.00%
HSS | Hughes Retail Group | Satellite And Tracking Stock Transaction
Related party transactions
Percentage of economic interest in the Hughes Retail Group	20.00%
HSS | Hughes Retail Group | DISH Network | Satellite And Tracking Stock Transaction
Related party transactions
Percentage of economic interest in the Hughes Retail Group	28.11%
EchoStar and HSSC | DISH Network | Satellite And Tracking Stock Transaction
Related party transactions
Number of owned satellites transferred | satellite	5	5
Proceeds from issuance of Tracking Stock | $	$ 11.4
EchoStar Corporation | Hughes Retail Group | DISH Network | Satellite And Tracking Stock Transaction
Related party transactions
Percentage of economic interest in the Hughes Retail Group	51.89%

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value Measurements
Amount of transfers between levels within the fair value hierarchy			$ 0	$ 0
Research and Development
Research and development expenses	$ 8,302,000	$ 9,030,000	23,444,000	23,524,000
Capitalized Software Costs
Expenditures for externally marketed software			(25,447,000)	(17,991,000)
New Accounting Pronouncements
Accumulated net unrealized gains on available-for-sale equity securities	100,000		100,000
Other noncurrent assets, net
Capitalized Software Costs
Net carrying amount of externally marketed software	87,700,000		87,700,000		$ 76,300,000
Externally marketed software under development and not yet placed in service	16,700,000		16,700,000		50,100,000
Expenditures for externally marketed software	(8,300,000)	(6,200,000)	(25,400,000)	(18,500,000)
Amortization expense relating to the development of externally marketed software	5,500,000	2,500,000	$ 14,100,000	7,200,000
Maximum
Capitalized Software Costs
Software useful life			5 years
Weighted Average
Capitalized Software Costs
Software useful life			4 years
Cost of Sales
Research and Development
Research and development expenses	7,000,000	11,100,000	$ 20,700,000	17,200,000
Research and Development Expense
Research and Development
Research and development expenses	8,300,000	$ 9,000,000	23,400,000	$ 23,500,000
Level 2
Fair Value Measurements
Orbital incentive obligations	$ 100,600,000		$ 100,600,000		$ 74,100,000
6 1/2% Senior Secured Notes due 2019
Fair Value Measurements
Interest rate	6.50%		6.50%		6.50%
7 5/8% Senior Unsecured Notes due 2021
Fair Value Measurements
Interest rate	7.625%		7.625%		7.625%
5 1/4% Senior Secured Notes due 2026
Fair Value Measurements
Interest rate	5.25%		5.25%		5.25%
6 5/8% Senior Unsecured Notes due 2026
Fair Value Measurements
Interest rate	6.625%		6.625%		6.625%

Other Comprehensive Income (L33

Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Tax effects on unrealized gains or losses on available-for-sale securities			$ 0	$ 0
Tax effects on foreign currency translation adjustments			0	0
Cumulative foreign currency translation losses	$ (45,100,000)		(45,100,000)		$ (59,000,000)
Reclassification out of accumulated other comprehensive loss
Gains on marketable investment securities, net	0	$ 5,000	1,723,000	5,300,000
Other-than-temporary impairment loss on available-for-sale securities	0	0	3,298,000	0
Total reclassifications, net of tax and noncontrolling interests	0	(4,000)	3,298,000	(2,989,000)
Reclassification out of Accumulated Other Comprehensive Income | Recognition of realized gains on available-for-sale securities in net income (1)
Reclassification out of accumulated other comprehensive loss
Gains on marketable investment securities, net	0	(4,000)	0	(2,989,000)
Reclassification out of Accumulated Other Comprehensive Income | Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2)
Reclassification out of accumulated other comprehensive loss
Other-than-temporary impairment loss on available-for-sale securities	$ 0	$ 0	$ 3,298,000	$ 0

Investment Securities (Details)

Investment Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Marketable investment securities - current, at fair value:
Total marketable investment securities—current	$ 195,906,000		$ 195,906,000		$ 187,923,000
Other-than-temporary impairment loss on available-for-sale securities	0	$ 0	(3,298,000)	$ 0
Investments in unconsolidated entities - noncurrent:
Cost Method Investments	15,438,000		15,438,000		15,438,000
Equity Method Investments	17,420,000		17,420,000		27,122,000
Total investments in unconsolidated entities - noncurrent	32,858,000		32,858,000		42,560,000
Dividends received from unconsolidated entity	7,500,000	0	15,000,000	10,000,000
Corporate bonds
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	132,986,000		132,986,000		164,619,000
Strategic equity securities
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	1,646,000		1,646,000		10,309,000
Dividend income from strategic equity securities	0	$ 0	0	0
Other-than-temporary impairment loss on available-for-sale securities			(3,300,000)
Fair values of trading securities	0		0		7,200,000
Strategic equity securities | Gains on marketable investment securities, net
Marketable investment securities - current, at fair value:
Gains (losses) related to trading securities			0	$ (1,000,000)
Other
Marketable investment securities - current, at fair value:
Marketable investment securities, at fair value	$ 61,274,000		$ 61,274,000		$ 12,995,000

Investment Securities (Details

Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	$ 195,806	$ 182,391
Unrealized Gains	129	95
Unrealized Losses	(29)	(1,762)
Estimated Fair Value	195,906	180,724
Corporate bonds
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	132,994	164,563
Unrealized Gains	19	94
Unrealized Losses	(27)	(38)
Estimated Fair Value	132,986	164,619
Other
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	61,276	12,994
Unrealized Gains	0	1
Unrealized Losses	(2)	0
Estimated Fair Value	61,274	12,995
Strategic equity securities
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	1,536	4,834
Unrealized Gains	110	0
Unrealized Losses	0	(1,724)
Estimated Fair Value	$ 1,646	$ 3,110

Investment Securities (Detail36

Investment Securities (Details 3)	Sep. 30, 2017USD ($)
Contractual maturities of debt securities
Debt securities with contractual maturities of one year or less	$ 194,300,000
Debt securities with contractual maturities exceeding one year	$ 0

Investment Securities (Detail37

Investment Securities (Details 4) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value
Less than 12 months	$ 112,110,000		$ 112,110,000		$ 62,473,000
12 months or more	9,399,000		9,399,000		1,571,000
Total	121,509,000		121,509,000		64,044,000
Unrealized Losses
Less than 12 months	(27,000)		(27,000)		(1,760,000)
12 months or more	(2,000)		(2,000)		(2,000)
Total	(29,000)		(29,000)		$ (1,762,000)
Sales of Available-For-Sale Securities
Gains from sales of available-for-sale securities	0	$ 0		$ 3,000,000
Proceeds from sales of available-for-sale securities	$ 0	$ 0	$ 8,900,000	$ 17,600,000

Investment Securities (Detail38

Investment Securities (Details 5) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Corporate bonds
Fair value of marketable securities
Debt securities	$ 132,986,000	$ 164,619,000
Other
Fair value of marketable securities
Debt securities	61,274,000	12,995,000
Strategic equity securities
Fair value of marketable securities
Equity securities	1,646,000	10,309,000
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	2,016,027,000	1,991,949,000
Total marketable investment securities	195,906,000	187,923,000
Fair value measurements on recurring basis | Corporate bonds
Fair value of marketable securities
Debt securities	132,986,000	164,619,000
Fair value measurements on recurring basis | Other
Fair value of marketable securities
Debt securities	61,274,000	12,995,000
Fair value measurements on recurring basis | Strategic equity securities
Fair value of marketable securities
Equity securities	1,646,000	10,309,000
Fair value measurements on recurring basis | Level 1
Fair value of marketable securities
Cash equivalents	12,821,000	14,011,000
Total marketable investment securities	1,646,000	10,309,000
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	1,646,000	10,309,000
Fair value measurements on recurring basis | Level 2
Fair value of marketable securities
Cash equivalents	2,003,206,000	1,977,938,000
Total marketable investment securities	194,260,000	177,614,000
Fair value measurements on recurring basis | Level 2 | Corporate bonds
Fair value of marketable securities
Debt securities	132,986,000	164,619,000
Fair value measurements on recurring basis | Level 2 | Other
Fair value of marketable securities
Debt securities	61,274,000	12,995,000
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	Sep. 30, 2017	Dec. 31, 2016
Trade accounts receivable
Total trade accounts receivable	$ 205,598	$ 195,264
Allowance for doubtful accounts	(13,211)	(12,752)
Trade accounts receivable - DISH Network	45,968	19,323
Total trade accounts receivable, net	238,355	201,835
Progress billings offset against contracts in process	17,400	14,600
Trade accounts receivable
Trade accounts receivable
Total trade accounts receivable	181,555	159,094
Contracts in process, net
Trade accounts receivable
Total trade accounts receivable	$ 24,043	$ 36,170

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Finished goods	$ 74,693	$ 49,773
Raw materials	6,901	6,678
Work-in-process	9,638	6,187
Total inventory	$ 91,232	$ 62,638

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Property and equipment
Total property and equipment	$ 5,287,088	$ 4,797,913
Accumulated depreciation	(2,433,297)	(2,503,187)
Property and equipment, net	2,853,791	2,294,726
Land
Property and equipment
Total property and equipment	13,443	13,273
Buildings and improvements
Property and equipment
Total property and equipment	$ 127,652	79,765
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	$ 576,423	430,078
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	$ 859,596	689,579
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	$ 2,516,684	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	$ 794,705	781,761
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	$ 398,585	$ 422,337

Property and Equipment (Detai42

Property and Equipment (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property and equipment
Construction in progress	$ 398,585	$ 422,337
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs
Property and equipment
Construction in progress	296,358	244,234
Satellite related equipment
Property and equipment
Construction in progress	83,907	152,683
Other
Property and equipment
Construction in progress	$ 18,320	$ 25,420

Property and Equipment (Detai43

Property and Equipment (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Depreciation expense
Total depreciation expense	$ 118,791	$ 93,398	$ 332,250	$ 275,718
Satellites
Depreciation expense
Total depreciation expense	56,953	46,965	166,419	140,895
Furniture, fixtures, equipment and other
Depreciation expense
Total depreciation expense	21,428	16,739	58,078	44,883
Customer rental equipment
Depreciation expense
Total depreciation expense	39,104	28,652	103,781	86,789
Buildings and improvements
Depreciation expense
Total depreciation expense	$ 1,306	$ 1,042	$ 3,972	$ 3,151

Property and Equipment (Detai44

Property and Equipment (Details 4) - Satellites	9 Months Ended
	Sep. 30, 2017satellite
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	3
Number of satellites utilized under operating lease	1

Goodwill and Other Intangible45

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Goodwill and Other Intangible Assets
Cost	$ 351,417		$ 351,417		$ 351,417
Accumulated Amortization	(289,177)		(289,177)		(270,683)
Carrying Amount	62,240		62,240		80,734
Amortization expense	9,100	$ 11,400	32,600	$ 33,700
Customer relationships
Goodwill and Other Intangible Assets
Cost	270,300		270,300		270,300
Accumulated Amortization	(228,355)		(228,355)		(214,544)
Carrying Amount	41,945		$ 41,945		55,756
Customer relationships | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life			8 years
Technology-based
Goodwill and Other Intangible Assets
Cost	51,417		$ 51,417		51,417
Accumulated Amortization	(51,417)		(51,417)		(47,848)
Carrying Amount	0		$ 0		3,569
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		29,700
Accumulated Amortization	(9,405)		(9,405)		(8,291)
Carrying Amount	$ 20,295		$ 20,295		$ 21,409
Trademark portfolio | Weighted Average
Goodwill and Other Intangible Assets
Weighted Average Useful Life			20 years

Debt and Capital Lease Obliga46

Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	May 11, 2017	Sep. 30, 2017	Dec. 31, 2016
Debt and Capital Lease Obligations
Fair Value		$ 3,670,181	$ 3,574,172
Carrying amount		3,363,244	3,358,179
Capital lease obligations		280,878	297,268
Total debt and capital lease obligations		3,644,122	3,655,447
Less: Current portion		(38,407)	(32,984)
Long-term debt and capital lease obligations, net of unamortized debt issuance costs		$ 3,605,715	$ 3,622,463
6 1/2% Senior Secured Notes due 2019
Debt and Capital Lease Obligations
Interest rate		6.50%	6.50%
Effective Interest Rate		6.959%
Carrying Amount		$ 990,000	$ 990,000
Fair Value		$ 1,056,825	$ 1,084,050
5 1/4% Senior Secured Notes due 2026
Debt and Capital Lease Obligations
Interest rate		5.25%	5.25%
Effective Interest Rate		5.32%
Carrying Amount		$ 750,000	$ 750,000
Fair Value		$ 783,038	$ 739,688
7 5/8% Senior Unsecured Notes due 2021
Debt and Capital Lease Obligations
Interest rate		7.625%	7.625%
Effective Interest Rate		8.062%
Carrying Amount		$ 900,000	$ 900,000
Fair Value		$ 1,023,408	$ 990,189
6 5/8% Senior Unsecured Notes due 2026
Debt and Capital Lease Obligations
Interest rate		6.625%	6.625%
Effective Interest Rate		6.688%
Carrying Amount		$ 750,000	$ 750,000
Fair Value		806,910	760,245
Debt Instrument, Unregistered Note, Percentage Exchanged For Registered Note	99.98%
Unamortized debt issuance costs
Debt and Capital Lease Obligations
Less: Unamortized debt issuance costs		$ (26,756)	$ (31,821)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ (8,726)	$ (16,416)	$ (4,635)	$ (57,277)
Effective income tax rate	43.20%	36.90%	17.90%	36.40%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Aug. 07, 2017USD ($)	Feb. 14, 2017patent	Sep. 30, 2017USD ($)claim
Elbit
Other Commitments [Line Items]
Litigation Settlement, Expense			$ 2.5
Realtime Data LLC [Member]
Other Commitments [Line Items]
Loss Contingency, Invalidated Claims, Number | claim			2
Loss Contingency, Pending Claims, Number | claim			4
Loss Contingency, Patents Allegedly Infringed, Number | patent		4
Subsidiaries | Hughes Network Systems | Elbit
Other Commitments [Line Items]
Loss Contingency, Damages Awarded, Value	$ 21.1		$ 27
Satellite-related obligations
Other Commitments [Line Items]
Satellite-related obligations			$ 581.3

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of business segments | segment			2
Segment Reporting
Total revenue	$ 478,362	$ 457,266	$ 1,370,745	$ 1,327,110
EBITDA	200,054	198,285	550,467	586,096
Capital expenditures	116,631	91,412	291,975	312,003
Interest income and expense, net	(52,462)	(49,530)	(160,748)	(120,199)
Depreciation and amortization	(127,915)	(104,774)	(364,878)	(309,448)
Net income attributable to noncontrolling interests	532	524	1,006	946
Income before income taxes	20,209	44,505	25,847	157,395
Hughes Business
Segment Reporting
Total revenue	379,702	355,090	1,070,715	1,019,203
Hughes Business | Intersegment Elimination
Segment Reporting
Total revenue	359	786	1,428	2,248
Hughes Business | Operating segments
Segment Reporting
Total revenue	380,061	355,876	1,072,143	1,021,451
EBITDA	131,817	125,522	342,693	353,505
Capital expenditures	108,428	75,682	270,624	261,241
EchoStar Satellite Services Business
Segment Reporting
Total revenue	96,743	101,308	294,839	305,401
EchoStar Satellite Services Business | Intersegment Elimination
Segment Reporting
Total revenue	350	172	946	518
EchoStar Satellite Services Business | Operating segments
Segment Reporting
Total revenue	97,093	101,480	295,785	305,919
EBITDA	78,345	84,257	241,873	257,181
Capital expenditures	8,203	15,730	21,351	50,762
Corporate and Other
Segment Reporting
Total revenue	1,917	868	5,191	2,506
Corporate and Other | Intersegment Elimination
Segment Reporting
Total revenue	(709)	(958)	(2,374)	(2,766)
Corporate and Other | Corporate and Other
Segment Reporting
Total revenue	1,208	(90)	2,817	(260)
EBITDA	(10,108)	(11,494)	(34,099)	(24,590)
Capital expenditures	$ 0	$ 0	$ 0	$ 0

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands

Feb. 01, 2017USD ($)

Mar. 02, 2014

Feb. 28, 2022

Apr. 30, 2018

Mar. 31, 2018

Aug. 31, 2017

Jun. 30, 2017USD ($)

May 31, 2017

Mar. 31, 2017USD ($)

Nov. 30, 2016

Jul. 31, 2016

Dec. 31, 2012

Oct. 31, 2012

May 31, 2012

Sep. 30, 2009transponder

Nov. 30, 2008transponder

Sep. 30, 2017USD ($)

Sep. 30, 2016USD ($)

Sep. 30, 2017USD ($)term

Sep. 30, 2016USD ($)

Dec. 31, 2016

Dec. 31, 2009

Feb. 28, 2013transponder

Mar. 31, 2012

Sep. 30, 2010USD ($)

Related party transactions

Contribution of EchoStar XIX satellite

$ 369,263

Contribution of Property

219,662

$ 0

Transfer of launch service contracts to EchoStar

145,114

(70,300)

Capital contribution from EchoStar

0

11,875

Transfer of launch service contract from (to) EchoStar

$ (145,114)

70,300

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

Additional Paid-In Capital

Related party transactions

Contribution of EchoStar XIX satellite

$ 369,263

Transfer of launch service contract from (to) EchoStar

$ (145,114)

70,300

One-year LIBOR | Related-Party Advances | Minimum

Related party transactions

Variable interest rates

1.00%

One-year LIBOR | Related-Party Advances | Maximum

Related party transactions

Variable interest rates

3.00%

EchoStar

Related party transactions

Related Party Transaction, Expenses from Transactions with Related Party

$ 5,700

$ 5,200

$ 17,200

$ 10,800

Minimum required notice period for termination of agreement by related party

30 days

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 | DISH Nimiq 5 Agreement

Related party transactions

Number of DBS transponders available | transponder

32

DISH Network | QuetzSat-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

Agreement term

1 year

Minimum required notice period for termination of agreement by related party

60 days

DISH Network | TerreStar Agreement | Subsequent Event

Related party transactions

Agreement term

1 year

1 year

Minimum required notice period for termination of agreement by related party

90 days

60 days

DISH Network | DBSD North America Agreement

Related party transactions

Ownership interest acquired by related party

100.00%

DISH Network | DBSD North America Agreement | Subsequent Event

Related party transactions

Agreement term

5 years

1 year

Minimum required notice period for termination of agreement by related party

180 days

120 days

DISH Network | RUS Implementation Agreement

Related party transactions

Grants receivable by related party

$ 14,100

DISH Network | EchoStar Amended and Restated Professional Services Agreement

Related party transactions

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 | Cheyenne Lease Agreement

Related party transactions

Required Minimum Notice Period for Termination of Agreement After Lease Extension

30 days

DISH Network | Collocation and Antenna Space Agreements

Related party transactions

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

180 days

Term of renewal option

3 years

Related Party Transactions Agreement Maximum Number of Three Year Renewal Options | term

4

DISH Network | Ciel | DISH 103 Service Agreement

Related party transactions

Agreement term

10 years

DISH Network | Minimum | Collocation and Antenna Space Agreements

Related party transactions

Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity

90 days

DISH Network | Maximum | Collocation and Antenna Space Agreements

Related party transactions

Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity

120 days

Telesat | TeleSat Transponder Agreement

Related party transactions

Agreement term from commencement of service date

15 years

Number of DBS transponders available | transponder

32

SES Latin America | QuetzSat-1 Agreement

Related party transactions

Agreement term

10 years

Number of DBS transponders available | transponder

32

EchoStar XXIII [Member] | EchoStar Operating | Other noncurrent assets, net

Related party transactions

Transfer of launch service contracts to EchoStar

$ (61,800)

EchoStar XXIII [Member] | EchoStar Operating | Additional Paid-In Capital

Related party transactions

Transfer of launch service contracts to EchoStar

$ (61,800)

EchoStar XVI | DISH Network | Satellite Services Agreement [Member]

Related party transactions

Agreement term

5 years

Additional term of renewal option

5 years

EchoStar XVI | DISH Network | Transponder Service Agreement [Member]

Related party transactions

Agreement term

1 year

10 years

Agreement term from commencement of service date

4 years

Renewal option reduction in years

1 year

EchoStar XIX | EchoStar

Related party transactions

Contribution of Property

$ 514,400

Deferred Tax Liabilities, Deferred Expense

145,100

EchoStar XIX | EchoStar | Additional Paid-In Capital

Related party transactions

Contribution of EchoStar XIX satellite

$ 369,300

Echo Star V I I | DISH Network | Satellite Services Agreement [Member]

Related party transactions

Agreement term

1 year

EchoStar XXI [Member] | EchoStar Operating | Other noncurrent assets, net

Related party transactions

Transfer of launch service contracts to EchoStar

$ (83,300)

EchoStar XXI [Member] | EchoStar Operating | Additional Paid-In Capital

Related party transactions

Transfer of launch service contracts to EchoStar

$ (83,300)

Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | American Fork Occupancy License Agreement [Member]

Related party transactions

Agreement term

5 years

Related Party Transactions (D51

Related Party Transactions (Details 2) $ in Thousands	Mar. 02, 2014USD ($)satellite	Apr. 30, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2014satellite	Sep. 30, 2017USD ($)	Jan. 31, 2017	Dec. 31, 2016USD ($)	Oct. 01, 2013subsidiary	Sep. 30, 2013USD ($)
Related party transactions
Net amount of the allocated tax attributes receivable						$ 0		$ 0
California Institute Of Technology
Related party transactions
Number of Subsidiaries Against which Lawsuit Filed | subsidiary									2
Hughes Broadband Master Services Agreement | DISH Network
Related party transactions
Agreement term				5 years
Automatic renewal period						1 year
Tax Sharing Agreement | DISH Network
Related party transactions
Net amount of the allocated tax attributes receivable										$ 93,100
EchoStar and HSSC | Satellite And Tracking Stock Transaction | DISH Network
Related party transactions
Related Party Transactions Number of Owned Satellites Transferred | satellite	5				5
Proceeds from issuance of Tracking Stock	$ 11,400
EchoStar Technologies Business | Share Exchange Agreement | DISH Network
Related party transactions
Ownership interest acquired by related party							100.00%
Subsequent Event | TerreStar Agreement | DISH Network
Related party transactions
Agreement term		1 year	1 year
Subsequent Event | Hughes Broadband Master Services Agreement | DISH Network
Related party transactions
Required minimum notice for termination of agreement			90 days

Related Party Transactions (D52

Related Party Transactions (Details 3) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2008
Related party transactions
Income before income taxes		$ 20,209,000	$ 44,505,000	$ 25,847,000	$ 157,395,000
Net income attributable to EchoStar		10,951,000	27,565,000	20,206,000	99,172,000
Hughes Systique
Related party transactions
Loan repayment						$ 600,000	$ 1,500,000
Remaining balance of loan		$ 0		$ 0
Ownership interest in related party				43.70%
Ownership interest percentage by related party				25.70%
Hughes Systique | HCI
Related party transactions
Amount agreed to be funded under term loan facility								$ 1,500,000
Interest rate	8.00%							6.00%
Dish Mexico
Related party transactions
Equity interest in joint ventures		49.00%		49.00%
Revenue from Related Parties		$ 5,800,000	5,800,000	$ 17,500,000	11,700,000
Receivables from related parties		$ 7,600,000		$ 7,600,000		10,700,000
Deluxe/EchoStar LLC
Related party transactions
Equity interest in joint ventures		50.00%		50.00%
Revenue from Related Parties		$ 1,300,000	700,000	$ 3,600,000	2,100,000
Receivables from related parties		1,300,000		1,300,000		$ 700,000
Revenue				28,752,000	32,018,000
Gross profit				12,920,000	15,872,000
Income before income taxes				10,596,000	13,516,000
Net income attributable to EchoStar				5,298,000	6,758,000
AsiaSat
Related party transactions
Related Party Transaction, Expenses from Transactions with Related Party		$ 0	$ 400,000	$ 100,000	$ 1,100,000

Supplemental Guarantor and No53

Supplemental Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 2,075,908	$ 2,070,964	$ 1,847,587	$ 1,847,587	$ 382,990
Marketable investment securities, at fair value	195,906	187,923
Trade accounts receivable, net	192,387	182,512
Trade accounts receivable - DISH Network	45,968	19,323
Inventory	91,232	62,638
Advances to affiliates, net	102,574	110,452
Other current assets	48,886	46,314
Total current assets	2,752,861	2,680,126
Restricted cash and cash equivalents	13,154	11,820
Property and equipment, net	2,853,791	2,294,726
Regulatory authorizations, net	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	62,240	80,734
Investments in unconsolidated entities	32,858	42,560
Investment in subsidiaries	0	0
Advances to affiliates	0	0
Deferred tax asset	18,716	9,150
Other noncurrent assets, net	185,971	286,587
Total assets	6,895,422	6,381,534
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	117,615	106,410
Trade accounts payable - DISH Network	5,470	6
Current portion of long-term debt and capital lease obligations	38,407	32,984
Advances from affiliates, net	327	598
Accrued expenses and other	241,453	220,313
Total current liabilities	403,272	360,311
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	3,605,715	3,622,463
Deferred tax liabilities, net	693,055	528,462
Advances from affiliates	33,475	31,968
Other non-current liabilities	110,873	83,307
Total HSS shareholders’ equity (deficit)	2,035,196	1,742,193
Noncontrolling interests	13,836	12,830
Total liabilities and shareholders’ equity	6,895,422	6,381,534
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	(50,409)	(893,866)
Other current assets	(46)	0
Total current assets	(50,455)	(893,866)
Restricted cash and cash equivalents	0	0
Property and equipment, net	0	0
Regulatory authorizations, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments in unconsolidated entities	0	0
Investment in subsidiaries	(3,197,705)	(4,036,331)
Advances to affiliates	(75,401)	(61,461)
Deferred tax asset	(147,283)	(92,727)
Other noncurrent assets, net	0	0
Total assets	(3,470,844)	(5,084,385)
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	0	0
Advances from affiliates, net	(50,409)	(893,866)
Accrued expenses and other	(46)	0
Total current liabilities	(50,455)	(893,866)
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	0	0
Deferred tax liabilities, net	(147,283)	(92,727)
Advances from affiliates	(75,401)	(61,461)
Other non-current liabilities	0	0
Total HSS shareholders’ equity (deficit)	(3,197,705)	(4,036,331)
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	(3,470,844)	(5,084,385)
HSS
Assets
Cash and cash equivalents	2,016,026	1,991,949	1,779,675		300,634
Marketable investment securities, at fair value	194,260	177,614
Trade accounts receivable, net	0	0
Trade accounts receivable - DISH Network	0	0
Inventory	0	0
Advances to affiliates, net	102,149	10
Other current assets	103	48
Total current assets	2,312,538	2,169,621
Restricted cash and cash equivalents	12,379	11,097
Property and equipment, net	0	0
Regulatory authorizations, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments in unconsolidated entities	0	0
Investment in subsidiaries	2,980,162	3,721,688
Advances to affiliates	700	700
Deferred tax asset	147,283	92,727
Other noncurrent assets, net	0	0
Total assets	5,453,062	5,995,833
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	0	0
Advances from affiliates, net	0	850,807
Accrued expenses and other	54,622	44,654
Total current liabilities	54,622	895,461
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	3,363,244	3,358,179
Deferred tax liabilities, net	0	0
Advances from affiliates	0	0
Other non-current liabilities	0	0
Total HSS shareholders’ equity (deficit)	2,035,196	1,742,193
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	5,453,062	5,995,833
Guarantor Subsidiaries
Assets
Cash and cash equivalents	32,178	53,905	44,612		55,767
Marketable investment securities, at fair value	1,646	10,309
Trade accounts receivable, net	138,268	138,861
Trade accounts receivable - DISH Network	45,626	19,323
Inventory	66,569	45,623
Advances to affiliates, net	45,927	999,340
Other current assets	17,652	19,183
Total current assets	347,866	1,286,544
Restricted cash and cash equivalents	0	0
Property and equipment, net	2,559,974	2,061,831
Regulatory authorizations, net	471,658	471,658
Goodwill	504,173	504,173
Other intangible assets, net	62,240	80,734
Investments in unconsolidated entities	32,858	42,560
Investment in subsidiaries	217,543	314,643
Advances to affiliates	74,701	60,761
Deferred tax asset	0	0
Other noncurrent assets, net	173,262	142,091
Total assets	4,444,275	4,964,995
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	95,446	94,089
Trade accounts payable - DISH Network	5,470	6
Current portion of long-term debt and capital lease obligations	34,923	32,177
Advances from affiliates, net	4,532	12,228
Accrued expenses and other	140,345	136,921
Total current liabilities	280,716	275,421
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	236,337	262,883
Deferred tax liabilities, net	840,194	621,061
Advances from affiliates	0	0
Other non-current liabilities	107,608	80,532
Total HSS shareholders’ equity (deficit)	2,979,420	3,725,098
Noncontrolling interests	0	0
Total liabilities and shareholders’ equity	4,444,275	4,964,995
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	27,704	25,110	$ 23,300		$ 26,589
Marketable investment securities, at fair value	0	0
Trade accounts receivable, net	54,119	43,651
Trade accounts receivable - DISH Network	342	0
Inventory	24,663	17,015
Advances to affiliates, net	4,907	4,968
Other current assets	31,177	27,083
Total current assets	142,912	117,827
Restricted cash and cash equivalents	775	723
Property and equipment, net	293,817	232,895
Regulatory authorizations, net	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
Deferred tax asset	18,716	9,150
Other noncurrent assets, net	12,709	144,496
Total assets	468,929	505,091
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	22,169	12,321
Trade accounts payable - DISH Network	0	0
Current portion of long-term debt and capital lease obligations	3,484	807
Advances from affiliates, net	46,204	31,429
Accrued expenses and other	46,532	38,738
Total current liabilities	118,389	83,295
Long-term debt and capital lease obligations, net of unamortized debt issuance costs	6,134	1,401
Deferred tax liabilities, net	144	128
Advances from affiliates	108,876	93,429
Other non-current liabilities	3,265	2,775
Total HSS shareholders’ equity (deficit)	218,285	311,233
Noncontrolling interests	13,836	12,830
Total liabilities and shareholders’ equity	$ 468,929	$ 505,091

Supplemental Guarantor and No54

Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Services and other revenue - DISH Network	$ 108,264	$ 111,750	$ 330,675	$ 337,353
Services and other revenue - other	310,973	276,877	866,251	821,863
Equipment revenue - DISH Network	126	2,138	175	7,008
Equipment revenue - other	58,999	66,501	173,644	160,886
Total revenue	478,362	457,266	1,370,745	1,327,110
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	137,663	130,587	401,633	381,964
Cost of sales - equipment (exclusive of depreciation and amortization)	52,051	53,601	154,142	144,029
Selling, general and administrative expenses	83,512	67,874	244,005	207,974
Research and development expenses	8,302	9,030	23,444	23,524
Depreciation and amortization	127,915	104,774	364,878	309,448
Total costs and expenses	409,443	365,866	1,188,102	1,066,939
Operating income	68,919	91,400	182,643	260,171
Other Income (Expense):
Interest income	8,321	4,006	21,248	7,427
Interest expense, net of amounts capitalized	(60,783)	(53,536)	(181,996)	(127,626)
Gains on marketable investment securities, net	0	5	1,723	5,300
Other-than-temporary impairment loss on available-for-sale securities	0	0	(3,298)	0
Equity in earnings of unconsolidated affiliate	1,948	2,654	5,298	6,758
Equity in earnings (losses) of subsidiaries, net	0	0	0	0
Other, net	1,804	(24)	229	5,365
Total other expense, net	(48,710)	(46,895)	(156,796)	(102,776)
Income before income taxes	20,209	44,505	25,847	157,395
Income tax benefit (provision)	(8,726)	(16,416)	(4,635)	(57,277)
Net income (loss)	11,483	28,089	21,212	100,118
Less: Net income attributable to noncontrolling interests	532	524	1,006	946
Net income attributable to HSS	10,951	27,565	20,206	99,172
Comprehensive Income (Loss):
Net income (loss)	11,483	28,089	21,212	100,118
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	8,571	1,255	13,956	10,607
Unrealized gains (losses) on available-for-sale securities and other	(66)	750	(1,577)	2,543
Recognition of realized gains on available-for-sale securities in net income	0	(4)	0	(2,989)
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income	0	0	3,298	0
Equity in other comprehensive income (loss) of subsidiaries, net	0	0	0	0
Total other comprehensive income (loss), net of tax	8,505	2,001	15,677	10,161
Comprehensive income (loss)	19,988	30,090	36,889	110,279
Less: Comprehensive income attributable to noncontrolling interests	532	524	1,006	760
Comprehensive income (loss) attributable to HSS	19,456	29,566	35,883	109,519
Eliminations
Revenue:
Services and other revenue - DISH Network	0	0	0	0
Services and other revenue - other	(10,181)	(5,639)	(22,610)	(16,753)
Equipment revenue - DISH Network	0	0	0	0
Equipment revenue - other	(6,762)	(22,813)	(34,844)	(29,786)
Total revenue	(16,943)	(28,452)	(57,454)	(46,539)
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	(9,624)	(5,486)	(20,635)	(16,213)
Cost of sales - equipment (exclusive of depreciation and amortization)	(6,709)	(22,166)	(34,736)	(28,264)
Selling, general and administrative expenses	(610)	(800)	(2,083)	(2,062)
Research and development expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
Total costs and expenses	(16,943)	(28,452)	(57,454)	(46,539)
Operating income	0	0	0	0
Other Income (Expense):
Interest income	(199)	0	(597)	(10)
Interest expense, net of amounts capitalized	199	0	597	10
Gains on marketable investment securities, net		0	0	0
Other-than-temporary impairment loss on available-for-sale securities			0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	(40,125)	(55,523)	(104,423)	(162,965)
Other, net	0	0	0	0
Total other expense, net	(40,125)	(55,523)	(104,423)	(162,965)
Income before income taxes	(40,125)	(55,523)	(104,423)	(162,965)
Income tax benefit (provision)	0	0	0	0
Net income (loss)	(40,125)	(55,523)	(104,423)	(162,965)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	(40,125)	(55,523)	(104,423)	(162,965)
Comprehensive Income (Loss):
Net income (loss)	(40,125)	(55,523)	(104,423)	(162,965)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	0	0	0	0
Recognition of realized gains on available-for-sale securities in net income		0		0
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income			0
Equity in other comprehensive income (loss) of subsidiaries, net	(17,026)	(3,282)	(29,656)	(20,779)
Total other comprehensive income (loss), net of tax	(17,026)	(3,282)	(29,656)	(20,779)
Comprehensive income (loss)	(57,151)	(58,805)	(134,079)	(183,744)
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	(57,151)	(58,805)	(134,079)	(183,744)
HSS
Revenue:
Services and other revenue - DISH Network	0	0	0	0
Services and other revenue - other	0	0	0	0
Equipment revenue - DISH Network	0	0	0	0
Equipment revenue - other	0	0	0	0
Total revenue	0	0	0	0
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	0	0	0	0
Cost of sales - equipment (exclusive of depreciation and amortization)	0	0	0	0
Selling, general and administrative expenses	0	0	0	0
Research and development expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
Total costs and expenses	0	0	0	0
Operating income	0	0	0	0
Other Income (Expense):
Interest income	7,667	3,502	19,890	6,135
Interest expense, net of amounts capitalized	(57,372)	(50,766)	(172,007)	(120,357)
Gains on marketable investment securities, net		5	0	2,989
Other-than-temporary impairment loss on available-for-sale securities			0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	42,830	57,324	117,767	164,592
Other, net	0	(1)	0	6,750
Total other expense, net	(6,875)	10,064	(34,350)	60,109
Income before income taxes	(6,875)	10,064	(34,350)	60,109
Income tax benefit (provision)	17,826	17,501	54,556	39,063
Net income (loss)	10,951	27,565	20,206	99,172
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	10,951	27,565	20,206	99,172
Comprehensive Income (Loss):
Net income (loss)	10,951	27,565	20,206	99,172
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	(20)	(38)	(68)	3,322
Recognition of realized gains on available-for-sale securities in net income		(4)		(2,989)
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income			0
Equity in other comprehensive income (loss) of subsidiaries, net	8,525	2,043	15,745	10,014
Total other comprehensive income (loss), net of tax	8,505	2,001	15,677	10,347
Comprehensive income (loss)	19,456	29,566	35,883	109,519
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	19,456	29,566	35,883	109,519
Guarantor Subsidiaries
Revenue:
Services and other revenue - DISH Network	107,765	111,750	329,457	337,353
Services and other revenue - other	273,821	249,571	763,554	743,654
Equipment revenue - DISH Network	126	2,138	175	7,008
Equipment revenue - other	59,519	83,843	192,536	178,376
Total revenue	441,231	447,302	1,285,722	1,266,391
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	111,662	111,241	326,992	328,113
Cost of sales - equipment (exclusive of depreciation and amortization)	54,137	71,728	176,449	162,644
Selling, general and administrative expenses	72,492	59,574	213,212	182,110
Research and development expenses	8,302	9,030	23,444	23,524
Depreciation and amortization	117,702	100,375	339,342	301,896
Total costs and expenses	364,295	351,948	1,079,439	998,287
Operating income	76,936	95,354	206,283	268,104
Other Income (Expense):
Interest income	200	9	633	88
Interest expense, net of amounts capitalized	(4,282)	(3,491)	(12,301)	(11,589)
Gains on marketable investment securities, net		0	1,723	2,311
Other-than-temporary impairment loss on available-for-sale securities			(3,298)
Equity in earnings of unconsolidated affiliate	1,948	2,654	5,298	6,758
Equity in earnings (losses) of subsidiaries, net	(2,705)	(1,801)	(13,344)	(1,627)
Other, net	(85)	(40)	(925)	(2,317)
Total other expense, net	(4,924)	(2,669)	(22,214)	(6,376)
Income before income taxes	72,012	92,685	184,069	261,728
Income tax benefit (provision)	(29,092)	(35,257)	(65,974)	(96,854)
Net income (loss)	42,920	57,428	118,095	164,874
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	42,920	57,428	118,095	164,874
Comprehensive Income (Loss):
Net income (loss)	42,920	57,428	118,095	164,874
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	24	804	(1,464)	(751)
Recognition of realized gains on available-for-sale securities in net income		0		0
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income			3,298
Equity in other comprehensive income (loss) of subsidiaries, net	8,501	1,239	13,911	10,765
Total other comprehensive income (loss), net of tax	8,525	2,043	15,745	10,014
Comprehensive income (loss)	51,445	59,471	133,840	174,888
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	51,445	59,471	133,840	174,888
Non-Guarantor Subsidiaries
Revenue:
Services and other revenue - DISH Network	499	0	1,218	0
Services and other revenue - other	47,333	32,945	125,307	94,962
Equipment revenue - DISH Network	0	0	0	0
Equipment revenue - other	6,242	5,471	15,952	12,296
Total revenue	54,074	38,416	142,477	107,258
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	35,625	24,832	95,276	70,064
Cost of sales - equipment (exclusive of depreciation and amortization)	4,623	4,039	12,429	9,649
Selling, general and administrative expenses	11,630	9,100	32,876	27,926
Research and development expenses	0	0	0	0
Depreciation and amortization	10,213	4,399	25,536	7,552
Total costs and expenses	62,091	42,370	166,117	115,191
Operating income	(8,017)	(3,954)	(23,640)	(7,933)
Other Income (Expense):
Interest income	653	495	1,322	1,214
Interest expense, net of amounts capitalized	672	721	1,715	4,310
Gains on marketable investment securities, net		0	0	0
Other-than-temporary impairment loss on available-for-sale securities			0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	0	0	0	0
Other, net	1,889	17	1,154	932
Total other expense, net	3,214	1,233	4,191	6,456
Income before income taxes	(4,803)	(2,721)	(19,449)	(1,477)
Income tax benefit (provision)	2,540	1,340	6,783	514
Net income (loss)	(2,263)	(1,381)	(12,666)	(963)
Less: Net income attributable to noncontrolling interests	532	524	1,006	946
Net income attributable to HSS	(2,795)	(1,905)	(13,672)	(1,909)
Comprehensive Income (Loss):
Net income (loss)	(2,263)	(1,381)	(12,666)	(963)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	8,571	1,255	13,956	10,607
Unrealized gains (losses) on available-for-sale securities and other	(70)	(16)	(45)	(28)
Recognition of realized gains on available-for-sale securities in net income		0		0
Recognition of other-than-temporary impairment loss on available-for-sale securities in net income			0
Equity in other comprehensive income (loss) of subsidiaries, net	0	0	0	0
Total other comprehensive income (loss), net of tax	8,501	1,239	13,911	10,579
Comprehensive income (loss)	6,238	(142)	1,245	9,616
Less: Comprehensive income attributable to noncontrolling interests	532	524	1,006	760
Comprehensive income (loss) attributable to HSS	$ 5,706	$ (666)	$ 239	$ 8,856

Supplemental Guarantor and No55

Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net income (loss)	$ 11,483	$ 28,089	$ 21,212	$ 100,118
Adjustments to reconcile net income (loss) to net cash flows from operating activities			348,634	346,698
Net cash flows from operating activities			369,846	446,816
Cash Flows from Investing Activities:
Purchases of marketable investment securities			(170,158)	(396,730)
Sales and maturities of marketable investment securities			152,423	265,680
Expenditures for property and equipment	(116,631)	(91,412)	(291,975)	(312,003)
Changes in restricted cash and cash equivalents			(1,334)	7,614
Investment in unconsolidated entity			0	(1,636)
Investment in subsidiary			0	0
Payment for EchoStar XXI launch services			0	(11,875)
Expenditures for externally marketed software			(25,447)	(17,991)
Other, net				0
Net cash flows from investing activities			(336,491)	(466,941)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt			0	1,500,000
Payments of debt issuance costs			(414)	(6,275)
Proceeds from capital contribution from parent			0	0
Capital contribution from EchoStar			0	11,875
Repayment of debt and capital lease obligations			(25,787)	(24,052)
Advances from (to) affiliates, net			(36)	5,481
Other, net			(3,097)	(2,967)
Net cash flows from financing activities			(29,334)	1,484,062
Effect of exchange rates on cash and cash equivalents			923	660
Net increase in cash and cash equivalents			4,944	1,464,597
Cash and cash equivalents, beginning of period			2,070,964	382,990
Cash and cash equivalents, end of period	2,075,908	1,847,587	2,075,908	1,847,587
Eliminations
Cash Flows from Operating Activities:
Net income (loss)	(40,125)	(55,523)	(104,423)	(162,965)
Adjustments to reconcile net income (loss) to net cash flows from operating activities			104,423	162,965
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
Expenditures for property and equipment			0	0
Changes in restricted cash and cash equivalents			0	0
Investment in unconsolidated entity				0
Investment in subsidiary			91,500	117,319
Payment for EchoStar XXI launch services				0
Expenditures for externally marketed software			0	0
Other, net				(340)
Net cash flows from investing activities			91,500	116,979
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt				0
Payments of debt issuance costs			0	0
Proceeds from capital contribution from parent			(91,500)	(117,319)
Capital contribution from EchoStar				0
Repayment of debt and capital lease obligations			0	0
Advances from (to) affiliates, net			0	0
Other, net			0	340
Net cash flows from financing activities			(91,500)	(116,979)
Effect of exchange rates on cash and cash equivalents			0	0
Net increase 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	0	0
HSS
Cash Flows from Operating Activities:
Net income (loss)	10,951	27,565	20,206	99,172
Adjustments to reconcile net income (loss) to net cash flows from operating activities			66,702	63,754
Net cash flows from operating activities			86,908	162,926
Cash Flows from Investing Activities:
Purchases of marketable investment securities			(170,158)	(396,730)
Sales and maturities of marketable investment securities			152,423	265,680
Expenditures for property and equipment			0	0
Changes in restricted cash and cash equivalents			(1,282)	203
Investment in unconsolidated entity				0
Investment in subsidiary			(44,000)	(58,647)
Payment for EchoStar XXI launch services				0
Expenditures for externally marketed software			0	0
Other, net				0
Net cash flows from investing activities			(63,017)	(189,494)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt				1,500,000
Payments of debt issuance costs			(414)	(6,275)
Proceeds from capital contribution from parent			0	0
Capital contribution from EchoStar				11,875
Repayment of debt and capital lease obligations			0	0
Advances from (to) affiliates, net			0	0
Other, net			600	9
Net cash flows from financing activities			186	1,505,609
Effect of exchange rates on cash and cash equivalents			0	0
Net increase in cash and cash equivalents			24,077	1,479,041
Cash and cash equivalents, beginning of period			1,991,949	300,634
Cash and cash equivalents, end of period	2,016,026	1,779,675	2,016,026	1,779,675
Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	42,920	57,428	118,095	164,874
Adjustments to reconcile net income (loss) to net cash flows from operating activities			160,917	96,870
Net cash flows from operating activities			279,012	261,744
Cash Flows from Investing Activities:
Purchases of marketable investment securities			0	0
Sales and maturities of marketable investment securities			0	0
Expenditures for property and equipment			(243,409)	(235,462)
Changes in restricted cash and cash equivalents			0	7,500
Investment in unconsolidated entity				(1,636)
Investment in subsidiary			(47,500)	(58,672)
Payment for EchoStar XXI launch services				0
Expenditures for externally marketed software			(25,447)	(17,991)
Other, net				340
Net cash flows from investing activities			(316,356)	(305,921)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt				0
Payments of debt issuance costs			0	0
Proceeds from capital contribution from parent			44,000	58,647
Capital contribution from EchoStar				0
Repayment of debt and capital lease obligations			(23,800)	(21,321)
Advances from (to) affiliates, net			0	0
Other, net			(4,583)	(4,304)
Net cash flows from financing activities			15,617	33,022
Effect of exchange rates on cash and cash equivalents			0	0
Net increase in cash and cash equivalents			(21,727)	(11,155)
Cash and cash equivalents, beginning of period			53,905	55,767
Cash and cash equivalents, end of period	32,178	44,612	32,178	44,612
Non-Guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	(2,263)	(1,381)	(12,666)	(963)
Adjustments to reconcile net income (loss) to net cash flows from operating activities			16,592	23,109
Net cash flows from operating activities			3,926	22,146
Cash Flows from Investing Activities:
Purchases of marketable investment securities			0	0
Sales and maturities of marketable investment securities			0	0
Expenditures for property and equipment			(48,566)	(76,541)
Changes in restricted cash and cash equivalents			(52)	(89)
Investment in unconsolidated entity				0
Investment in subsidiary			0	0
Payment for EchoStar XXI launch services				(11,875)
Expenditures for externally marketed software			0	0
Other, net				0
Net cash flows from investing activities			(48,618)	(88,505)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt				0
Payments of debt issuance costs			0	0
Proceeds from capital contribution from parent			47,500	58,672
Capital contribution from EchoStar				0
Repayment of debt and capital lease obligations			(1,987)	(2,731)
Advances from (to) affiliates, net			(36)	5,481
Other, net			886	988
Net cash flows from financing activities			46,363	62,410
Effect of exchange rates on cash and cash equivalents			923	660
Net increase in cash and cash equivalents			2,594	(3,289)
Cash and cash equivalents, beginning of period			25,110	26,589
Cash and cash equivalents, end of period	$ 27,704	$ 23,300	$ 27,704	$ 23,300