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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2012	May 04, 2012
Document and Entity Information
Entity Registrant Name	Hughes Satellite Systems Corp
Entity Central Index Key	0001533758
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 121,899	$ 125,003
Marketable investment securities	214,221	261,082
Trade accounts receivable, net of allowance for doubtful accounts of $17,201 and $16,769, respectively	169,352	171,917
Trade accounts receivable - DISH Network, net of allowance for doubtful account of zero	64,224	33,128
Advances to affiliates, net		4,217
Inventory	56,591	47,558
Deferred tax assets	21,508	21,222
Other current assets	43,379	52,917
Total current assets	691,174	717,044
Noncurrent Assets:
Restricted cash and cash equivalents	23,241	23,540
Property and equipment, net of accumulated depreciation of $1,352,325 and $1,281,930, respectively	2,081,749	2,021,905
Goodwill	509,860	516,198
FCC authorizations	465,658	465,658
Intangible assets, net	324,111	341,207
Other investment securities	24,515	22,466
Other noncurrent assets, net	146,502	140,819
Total noncurrent assets	3,575,636	3,531,793
Total assets	4,266,810	4,248,837
Current Liabilities:
Trade accounts payable	146,040	141,933
Trade accounts payable - DISH Network	9,117	10,100
Advances from affiliates, net	2,024
Deferred revenue and other	46,702	50,568
Accrued interest	41,508	6,348
Accrued expenses and other	96,901	117,879
Current portion of long-term debt and capital lease obligations	65,757	64,175
Total current liabilities	408,049	391,003
Noncurrent Liabilities:
Long-term debt and capital lease obligations, net of current portion	2,475,931	2,468,887
Deferred tax liabilities	280,471	290,287
Long-term deferred revenue and other long-term liabilities	24,172	21,930
Total noncurrent liabilities	2,780,574	2,781,104
Total liabilities	3,188,623	3,172,107
Commitments and Contingencies (Note 10)
Shareholder's Equity (Deficit):
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,000 shares issued and outstanding
Additional paid-in capital	1,099,736	1,099,506
Accumulated other comprehensive income (loss)	(5,979)	(7,914)
Accumulated earnings (deficit)	(25,019)	(23,972)
Total HSS shareholder's equity (deficit)	1,068,738	1,067,620
Noncontrolling interests	9,449	9,110
Total shareholder's equity (deficit)	1,078,187	1,076,730
Total liabilities and shareholder's equity (deficit)	$ 4,266,810	$ 4,248,837

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 17,201	$ 16,769
Allowance for doubtful account on trade accounts receivable - DISH Network (in dollars)	0	0
Property and equipment, accumulated depreciation (in dollars)	$ 1,352,325	$ 1,281,930
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenue:
Services and other revenue	$ 239,547	$ 14,858
Services and other revenue - DISH Network	54,164	53,046
Equipment revenue	53,626
Total revenue	347,337	67,904
Costs and Expenses: (exclusive of depreciation shown separately below - Note 6)
Cost of sales - services and other	118,691	17,070
Cost of sales - equipment	46,308
Selling, general and administrative expenses	55,776	6,191
Research and development expenses	4,957
Depreciation and amortization (Notes 6 and 7)	87,027	23,468
Total costs and expenses	312,759	46,729
Operating income (loss)	34,578	21,175
Other Income (Expense):
Interest income	877	30
Interest expense, net of amounts capitalized	(38,655)	(3,433)
Other, net	1,401	399
Total other income (expense)	(36,377)	(3,004)
Income (loss) before income taxes	(1,799)	18,171
Income tax (provision) benefit, net	665	(6,688)
Net income (loss)	(1,134)	11,483
Less: Net income (loss) attributable to noncontrolling interests	(87)
Net income (loss) attributable to HSS	(1,047)	11,483
Comprehensive Income (Loss):
Net income (loss)	(1,134)	11,483
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	2,488
Unrealized holding gains (losses) on available-for-sale securities	(295)
Total other comprehensive income (loss), net of tax	2,193
Comprehensive income (loss)	1,059	11,483
Less: Comprehensive income (loss) attributable to noncontrolling interests	171
Comprehensive income (loss) attributable to HSS	$ 888	$ 11,483

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash Flows From Operating Activities:
Net income (loss)	$ (1,134)	$ 11,483
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	87,027	23,468
Equity in losses (earnings) of affiliates	(1,675)	(383)
Amortization of debt issuance costs	1,213
Non-cash, stock-based compensation	229	50
Deferred tax expense (benefit)	(3,658)	6,705
Other, net	1,105
Change in noncurrent assets	(3,718)	87
Changes in current assets and current liabilities, net	(6,374)	9,761
Net cash flows from operating activities	73,015	51,171
Cash Flows From Investing Activities:
Purchases of marketable investment securities	(52,904)
Sales and maturities of marketable investment securities	98,062
Purchases of property and equipment	(102,916)	(14,899)
Change in restricted cash and cash equivalents	299
Other, net	(3,002)	(1,610)
Net cash flows from investing activities	(60,461)	(16,509)
Cash Flows From Financing Activities:
Repayment of long-term debt and capital lease obligations	(15,947)	(12,514)
Debt issuance costs	(229)
Contributions from (distributions to) parent		(21,763)
Other	89	28
Net cash flows from financing activities	(16,087)	(34,249)
Effect of exchange rates on cash and cash equivalents	429
Net increase (decrease) in cash and cash equivalents	(3,104)	413
Cash and cash equivalents, beginning of period	125,003	106
Cash and cash equivalents, end of the period	121,899	519
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest (including capitalized interest)	13,724	9,848
Capitalized interest	11,542	6,546
Cash received for interest	2,261	30
Cash paid to EchoStar for income taxes	657	15
Cash paid for income taxes	2,245
Satellites and other assets financed under capital lease obligations	24,355	8,755
Capital expenditures included in accounts payable	$ 1,738	$ 7,600

Organization and Business Activities

3 Months Ended

Mar. 31, 2012

Organization and Business Activities

Organization and Business Activities

Note 1. Organization and Business Activities

Principal Business

Hughes Satellite Systems Corporation, (together with its subsidiaries, “HSS”, the “Company,” “we,” “us” and/or “our”) is a holding company and a direct, wholly-owned subsidiary of EchoStar Corporation (“EchoStar”). We were formed as a Colorado corporation in March 2011 to facilitate the acquisition (the “Hughes Acquisition”) of Hughes Communications, Inc. and its subsidiaries (“Hughes Communications”) and related financing transactions. In connection with our formation, EchoStar contributed the assets and liabilities of its satellite services business, including its principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C., to us. See Note 9 for further discussion on the Hughes Acquisition. As a result, our historical financial statements, prior to June 9, 2011, reflect the historical consolidated financial position and operating results of EchoStar’s satellite services business.

Following the Hughes Acquisition, we operate two primary segments:

· EchoStar Satellite Services — which uses 10 of our 11 owned and leased in-orbit satellites and related FCC licenses to lease capacity on a full-time and occasional-use basis primarily to DISH Network, and secondarily to Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”), United States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers and private enterprise customers.

· Hughes — which provides satellite broadband Internet access to North American consumers and broadband network services and systems to the domestic and international enterprise markets. Hughes also provides managed services to large enterprises and networking systems solutions to customers for mobile satellite and wireless backhaul systems. Hughes became a new segment as a result of the Hughes Acquisition and the operating results of Hughes Communications are included in our results effective June 9, 2011.

Effective January 1, 2008, DISH Network completed its distribution to EchoStar (the “Spin-off”) of 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. Since the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies, and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, or by certain trusts established by Mr. Ergen for the benefit of his family.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies

Note 2. Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011 (“2011 10-K”). Certain prior period amounts have been reclassified to conform to the current period presentation.

Our results of operations for the period presented prior to March 2011 are presented on a combined basis and reflect the historical results of operations and cash flows of certain entities included in the consolidated financial statements and accounting records of EchoStar that principally represented its satellite services business. The financial statements for all periods are labeled as condensed consolidated financial statements. Our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2012 includes the operating results of Hughes Communications.

Principles of Consolidation

We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we are the primary beneficiary. Non-majority owned investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, deferred revenue and deferred subscriber acquisition costs amortization periods, percentage-of-completion related to revenue recognition, allowances for doubtful accounts, allowance for sales returns/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 options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, capital leases, asset impairments, useful lives of property, equipment and intangible assets, and royalty obligations. Weakened economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We base our estimates and assumptions on historical experience and on various other factors that we believe to be reasonable 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. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur.

Fair Value Measurements

We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value:

· Level 1, defined as observable inputs being quoted prices in active markets for identical assets;

· Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

· Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available.

As of March 31, 2012 and December 31, 2011, the carrying value of our cash and cash equivalents, current marketable investment securities, trade accounts receivable, net of allowance for doubtful accounts, and current liabilities were equal to or approximates fair value due to their short-term nature or proximity to current market rates.

Fair values for our publicly traded debt securities are based on quoted market prices. The fair values of our private debt is estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the notes. See Note 8 for the fair value of our long-term debt.

Other Comprehensive Income (Loss) Related Tax Effects

3 Months Ended

Mar. 31, 2012

Other Comprehensive Income (Loss) Related Tax Effects

Other Comprehensive Income (Loss) Related Tax Effects

Note 3. Other Comprehensive Income (Loss) Related Tax Effects

There was no other comprehensive income (loss) for the three months ended March 31, 2011. The following table presents the tax effects allocated to each component of other comprehensive income (loss). A full valuation allowance has been established against any deferred tax assets that are capital in nature.

	For the Three Months
	Ended March 31, 2012
	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In thousands)
Foreign currency translation adjustments	$	2,488		$	—	$	2,488
Unrealized holding gains (losses) on available-for-sale securities	(295		)	—		(295		)
Total other comprehensive income (loss)	$	2,193		$	—	$	2,193

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

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+ Details

Marketable Investment Securities and Other Investment Securities

3 Months Ended

Mar. 31, 2012

Marketable Investment Securities and Other Investment Securities

Marketable Investment Securities and Other Investment Securities

Note 4. Marketable Investment Securities and Other Investment Securities

Our marketable investment securities and other investment securities consist of the following:

	As of
	March 31, 2012		December 31, 2011
	(In thousands)
Marketable investment securities —current:
VRDNs	$	30,435	$	61,795
Strategic	5,400		6,426
Other	178,386		192,861
Total marketable investment securities—current	214,221		261,082
Other investment securities— noncurrent:
Cost method	15,557		15,557
Equity method	8,958		6,909
Total other investment securities — noncurrent	24,515		22,466
Total marketable and other investment securities	$	238,736	$	283,548

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale.

Variable rate demand notes (“VRDNs”)

VRDNs are long-term floating rate municipal bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. Our VRDN portfolio is comprised of investments in many municipalities, which are backed by financial institutions or other highly rated companies that serve as the pledged liquidity source. While they are classified as marketable investment securities, the put option allows VRDNs to be liquidated generally on a same day or on a five business day settlement basis.

Strategic

Our current strategic marketable investment security portfolio consists of an equity security, which is speculative and whose value depends on the value of the issuer.

Other

Our other current marketable investment securities portfolio includes investments in various debt instruments including corporate and government bonds.

Other Investment Securities - Noncurrent

We account for our unconsolidated debt and equity investments under the equity or cost method of accounting. We have two strategic investments in certain equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets.

Cost and Equity

Non-majority owned investments in equity securities are generally accounted for using the equity method when we have the ability to significantly influence the operating decisions of an investee. However, when we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used.

Our ability to realize value from our strategic investments in companies that are not publicly traded depends on the success of those companies’ businesses and their ability to obtain sufficient capital to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them.

Unrealized Gains (Losses) on Marketable Investment Securities

As of each of March 31, 2012 and December 31, 2011, we had accumulated net unrealized gains, net of related tax effect, of approximately $2 million as a part of “Accumulated other comprehensive income (loss)” within “Total shareholder’s equity (deficit).” A full valuation allowance has been established against any net deferred tax assets that are capital in nature.

The components of our available-for-sale investments are summarized in the table below.

	As of
	March 31, 2012										December 31, 2011
	Marketable										Marketable
	Investment		Unrealized								Investment		Unrealized
	Securities		Gains		Losses			Net			Securities		Gains		Losses			Net
	(In thousands)
Debt securities:
VRDNs	$	30,435	$	—				$	—		$	61,795	$	—	$	—		$	—
Other	178,386		101		(402		)	(301		)	192,861		68		(1,100		)	(1,032		)
Equity securities:
Strategic	5,400		2,228		—			$	2,228		6,426		3,254		—			$	3,254
Total marketable investment securities	$	214,221	$	2,329	$	(402	)	$	1,927		$	261,082	$	3,322	$	(1,100	)	$	2,222

As of March 31, 2012, we had debt securities of $182 million with contractual maturities of one year or less and $27 million with contractual maturities greater than one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity.

Marketable Investment Securities in a Loss Position

As of March 31, 2012, and December 31, 2011, the aggregate fair value of our debt securities that were in a loss position, all of which had been in an unrealized loss position for one year or less, totaled $114 million and $155 million, respectively. We do not intend to sell our investments in debt securities before they recover or mature, and it is more likely than not that we will hold these debt investments until that time. In addition, we are not aware of any specific factors indicating that the underlying issuers of these debt securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these marketable investment securities are primarily related to temporary market fluctuations.

Fair Value Measurements

As of March 31, 2012 and December 31, 2011, we classified our current debt securities as Level 2 of the fair value hierarchy, as they were based on quoted market prices that can be derived from assumptions observable in the marketplace, and our current strategic equity security as Level 1 of the fair value hierarchy, as its market price was quoted in active markets (See Note 2). This asset was measured at fair value on a recurring basis.

Inventory

3 Months Ended

Mar. 31, 2012

Inventory

Inventory

Note 5. Inventory

Our inventory, related to the Hughes segment, consisted of the following:

	As of
	March 31, 2012		December 31, 2011
	(In thousands)
Finished goods	$	40,678	$	33,574
Work-in process	8,775		7,315
Raw materials	7,138		6,669
Total inventory	$	56,591	$	47,558

Property and Equipment

3 Months Ended

Mar. 31, 2012

Property and Equipment

Property and Equipment

Note 6. Property and Equipment

Depreciation and amortization expense consists of the following:

	For the Three Months Ended March 31,
	2012		2011
	(In thousands)
Satellites	$	37,059	$	22,968
Furniture, fixtures, equipment and other	31,697		500
Amortization of intangible assets and other	17,126		—
Buildings and improvements	1,145		—
Total depreciation and amortization	$	87,027	$	23,468

The increase in our depreciation and amortization expense from the three months ended March 31, 2011 compared to the same period in 2012 was primarily related to the Hughes Acquisition.

Cost of sales and other expense categories included in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense.

Satellites

We currently utilize 11 satellites in geostationary orbit approximately 22,300 miles above the equator, including the SPACEWAYTM 3 satellite, which was added to our satellite fleet as a result of the Hughes Acquisition in 2011. Five of these satellites are leased. Four of our leased satellites are accounted for as capital leases and are depreciated over the terms of the satellite service agreements, and the one satellite we lease from DISH Network is accounted for as an operating lease. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. See Note 12 for further discussion of our satellite leases with DISH Network.

Satellite Anomalies

Prior to 2012, certain of our satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not further impact the remaining useful life and commercial operation of any of the satellites in our fleet. See “Long-Lived Satellite Assets” below for further discussion of evaluation of impairment. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail. We generally do not carry in-orbit insurance on any of our satellites, other than SPACEWAY 3, EchoStar XVII/Jupiter and EchoStar XVI as discussed below, and therefore, we will bear the risk of any uninsured in-orbit failures. However, pursuant to the terms of the agreements governing certain portions of our indebtedness, we are required, subject to certain limitations on coverage, to maintain launch insurance for EchoStar XVII/Jupiter and EchoStar XVI and to maintain in-orbit insurance for EchoStar XVII/Jupiter, EchoStar XVI and SPACEWAY 3. Satellite anomalies with respect to certain of our satellites are discussed below.

Owned Satellites

EchoStar III. EchoStar III, which is currently an in-orbit spare, was designed to meet a minimum 12-year useful life. During first quarter 2012, we determined that EchoStar III experienced a solar array anomaly which did not impact commercial operation of the satellite; however, there can be no assurance that future anomalies will not impact its commercial operation. EchoStar III was fully depreciated during 2009.

EchoStar VI. EchoStar VI was designed to meet a minimum 12-year useful life. Prior to 2012, this satellite experienced solar array anomalies and the loss of traveling wave tube amplifiers (“TWTAs”) that did not reduce its useful life; however, the solar array anomalies impacted the commercial operation of the satellite. During first quarter 2012, we determined that EchoStar VI experienced the loss of two additional TWTAs increasing the total number of TWTAs lost on the satellite to five. The recent loss of TWTAs did not reduce the estimated useful life of the satellite and had no impact on the commercial operation of the satellite; however, there can be no assurance that future anomalies will not reduce its useful life or impact its commercial operation. EchoStar VI will be fully depreciated in August 2012.

Leased Satellites

EchoStar I. During first quarter 2012, it was determined that EchoStar I experienced a communications receiver anomaly. While this anomaly did not impact the commercial operation of the satellite, there can be no assurance that future anomalies will not impact its future commercial operation.

AMC-16. During 2012, AMC-16 experienced two additional solar-power anomalies, causing a partial power loss that further reduced its capacity. Testing is being performed to determine the extent to which these anomalies impacted its commercial operations, the extent to which our monthly recurring payment under the applicable satellite services agreement may be further reduced and the extent to which our capital lease obligation may be further decreased. There can be no assurance that these anomalies or any future anomalies will not reduce its useful life or further impact its commercial operations.

Long-Lived Satellite Assets

We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. This evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Certain of the anomalies discussed above, and previously disclosed, may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, these anomalies are not considered to be significant events that would require evaluation for impairment recognition because the projected cash flows have not been significantly affected by these anomalies.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2012

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Note 7. Intangible Assets and Goodwill

Intangible Assets

Our identifiable intangible assets subject to amortization consisted of the following:

	As of
	March 31, 2012					December 31, 2011
	Intangible		Accumulated			Intangible		Accumulated
	Assets		Amortization			Assets		Amortization
	(In thousands)
Customer relationships	$	270,300	$	(61,987	)	$	270,300	$	(52,556	)
Contract-based	64,800		(25,459		)	64,800		(20,602		)
Technology-based	51,417		(7,148		)	51,417		(5,007		)
Trademark portfolio	29,700		(1,238		)	29,700		(866		)
Favorable leases	4,707		(981		)	4,707		(686		)
Total	$	420,924	$	(96,813	)	$	420,924	$	(79,717	)

Amortization expense on these intangible assets is recorded on a straight-line basis over a useful life primarily ranging from approximately one to twenty years or in relation to the estimated discounted cash flows over the life of the intangible. Amortization expense was $17 million and minimal for the three months ended March 31, 2012 and 2011, respectively.

Estimated future amortization of our identifiable intangible assets as of March 31, 2012 is as follows:

	Amount
	(In thousands)
For the Years Ended December 31,
2012 (remaining nine months)	$	49,194
2013	44,722
2014	54,517
2015	44,460
2016	35,674
Thereafter	95,544
Total	$	324,111

Goodwill

During the three months ended March 31, 2012, we made adjustments to deferred tax liabilities in the allocation of our purchase price related to the Hughes Acquisition with a corresponding adjustment to goodwill as summarized in the table below.

	Amount
	(In thousands)
Balance as of December 31, 2011	$	516,198
Adjustments to the Hughes Acquisition (non-deductible)	(6,338		)
Balance as of March 31, 2012	$	509,860

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Debt

3 Months Ended

Mar. 31, 2012

Debt

Debt

Note 8. Debt

Fair Value

The following table summarizes the carrying and fair values of our debt facilities:

	As of
	March 31, 2012				December 31, 2011
	Carrying				Carrying
	Value		Fair Value		Value		Fair Value
	(In thousands)
6 1/2% Senior Secured Notes due 2019	$	1,100,000	$	1,138,500	$	1,100,000	$	1,138,500
7 5/8% Senior Notes due 2021	900,000		936,000		900,000		936,000
Mortgages and other notes payable	6,398		6,398		6,465		6,465
Subtotal	2,006,398		$	2,080,898	2,006,465		$	2,080,965
Capital lease obligations (1)	535,290		NA		526,597		NA
Total debt and capital lease obligations	$	2,541,688			$	2,533,062

(1) Disclosure regarding fair value of capital leases is not required.

We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2).

Acquisition

3 Months Ended

Mar. 31, 2012

Acquisition

Acquisition

Note 9. Acquisition

Hughes Communications

On June 8, 2011, EchoStar completed the Hughes Acquisition, pursuant to an agreement and plan of merger (the “Hughes Agreement”) by and between EchoStar, certain of its subsidiaries, including EchoStar Satellite Services L.L.C., and Hughes Communications, Inc. Pursuant to the Hughes Agreement, 100% of the issued and outstanding shares of common stock and vested stock options of Hughes Communications, Inc. were converted into the right to receive $60.70 (minus any applicable exercise price) in cash and substantially all of the outstanding debt of Hughes Communications, Inc. was repaid. In addition, each share of unvested restricted stock and unvested stock option of Hughes Communications, Inc. was converted into the right to receive $60.70 (minus any applicable exercise price) in cash on the vesting date of the stock award.

A summary of the purchase price and opening balance sheet for the Hughes Acquisition at the June 8, 2011 acquisition date is presented in the following table. The opening balance sheet presented below reflects our preliminary purchase price allocation.

	Amount
	(In thousands)
Cash	$	98,900
Marketable investment securities	22,148
Other current assets	282,471
Property and equipment	930,426
Intangibles	420,907
Goodwill (non-deductible)	509,860
FCC Authorizations	400,000
Other noncurrent assets	55,776
Current liabilities	(293,029		)
Deferred tax liabilities	(220,928		)
Long-term liabilities	(22,239		)
Non-controlling interests	(9,679		)
Total purchase price	$	2,174,613

For the three months ended March 31, 2011, our unaudited pro forma revenue and net loss was $331 million and $12 million, respectively. Our pro forma information gives effect to the Hughes Acquisition as if it occurred on January 1, 2010. These pro forma amounts are not necessarily indicative of the operating results that would have occurred if the Hughes Acquisition had occurred on such date and should not be used as a predictive measure of our future financial position, results of operations or liquidity. The pro forma adjustments are based on currently available information and certain assumptions that we believe are reasonable.

Effective June 9, 2011, revenue and expenses associated with the Hughes Acquisition are included within the Hughes segment in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 11 for further discussion.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies

Commitments and Contingencies

Note 10. Commitments and Contingencies

Commitments

Acquisition of Brazilian Orbital Slot. On August 30, 2011, we were declared the winner of the right to select an orbital slot in an auction conducted by ANATEL, the Brazilian communications regulatory authority. We selected the 45 degree west longitude orbital location for a bid of approximately $80 million using an exchange rate of $1 to 1.8221 Brazilian Real as of March 31, 2012. We received the license for orbital slot from ANATEL in May 2012.

The slot will be used to expand our video and data capabilities in South America. Pursuant to our obligations under the license for the orbital slot, we will be required to make significant additional investments, which may affect our future financial condition or results of operations.

EchoStar XVI. During November 2009, we entered into a contract for the construction of EchoStar XVI, a direct broadcast satellite (“DBS”), which is expected to be launched during the second half of 2012 and will operate at the 61.5 degree west longitude orbital location. DISH Network has agreed to lease all of the capacity on this satellite from us for a portion of its useful life. As of March 31, 2012, the remaining obligation related to EchoStar XVI is $68 million, which includes the launch contract, launch insurance and one-year of in-orbit insurance.

EchoStar XVII/Jupiter. During June 2009, Hughes Communications entered into a contract for the construction of EchoStar XVII/Jupiter, which is expected to launch in the summer of 2012. Barrett Xplore Inc. has agreed to lease the user beams designed to operate in Canada, which represents a portion of the capacity available on EchoStar XVII/Jupiter. As of March 31, 2012, the remaining obligation related to EchoStar XVII/Jupiter is $120 million, which includes the launch contract, launch insurance and one year of in-orbit insurance.

Contingencies

Separation Agreement

In connection with the Spin-off, EchoStar entered into a separation agreement with DISH Network that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off as well as DISH Network’s acts or omissions following the Spin-off.

Litigation

We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made.

For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

E-Contact Technologies, LLC

On February 22, 2012, E-Contact Technologies, LLC (“E-Contact”) filed suit against two of our subsidiaries, Hughes Communications, Inc. and Hughes Network Systems, LLC, in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent No. 5,347,579, which is entitled “Personal Computer Diary.” E-Contact appears to assert that some portion of HughesNet email services infringe that patent. HughesNet email services are provided by a third party service provider, who has assumed indemnification obligations for the case.

We, along with the third party service provider, intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us or our service provider to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Semiconductor Ideas to the Market BV

On March 16, 2012, Semiconductor Ideas to the Market BV (“ITOM”) filed suit against our subsidiary Hughes Network Systems, LLC, as well as Texas Instruments, Inc., Qualcomm, Inc., Broadcom Corp., Samsung Electronics America, Inc., Samsung Telecommunications America, LLC, Dell Inc., Apple Inc., Ford Motor Company, Buffalo Technology (USA) Inc., Amazon.com, Inc., Hughes Telematics, Inc., Motorola Mobility, Inc., Motorola Solutions, Inc., Honeywell International Inc., Koninklijke Philips Electronics N.V., and Philips Consumer Lifestyle International B.V. The suit was brought in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent No. 7,299,018 which is entitled “Receiver comprising a digitally controlled capacitor bank” and United States Patent No. 7,072,614 which is entitled “Communication device”. ITOM alleges infringement through use of various third party chipsets in unspecified products and/or systems.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting

Segment Reporting

Note 11. Segment Reporting

Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision-maker(s) of an enterprise. Total assets by segment have not been specified because the information is not provided to the chief operating decision-maker on a regular basis. Under this definition, we operate two primary segments.

· EchoStar Satellite Services — which uses 10 of our 11 owned and leased in-orbit satellites and related FCC licenses to lease capacity on a full-time and occasional-use basis primarily to DISH Network, and secondarily to Dish Mexico, United States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers and private enterprise customers.

· Hughes — which provides satellite broadband Internet access to North American consumers and broadband network services and systems to the domestic and international enterprise markets. Hughes also provides managed services to large enterprises and networking systems solutions to customers for mobile satellite and wireless backhaul systems. Hughes became a new segment as a result of the Hughes Acquisition and the operating results of Hughes Communications are included in our results effective June 9, 2011. See Note 9 for further discussion of the Hughes Acquisition.

The “All Other and Eliminations” category consists of revenue and net income (loss) attributable to HSS from other operations including our corporate investment portfolio for which segment disclosure requirements do not apply. In addition, this category includes interest expense related to our 6 1/2% Senior Secured Notes due 2019 and our 7 5/8% Senior Notes due 2021 (collectively, the “Notes”), net of capitalized interest. Transactions between segments were not significant.

The following table reports our operating segment data and reconciles earnings before interest, taxes, depreciation and amortization (“EBITDA”) to reported “Net income (loss) attributable to HSS” in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):

For the Three Months Ended March 31, 2012	EchoStar Satellite Services			Hughes			All Other and Eliminations			Consolidated Total
	(In thousands)
Total revenue	$	73,583		$	274,218		$	(464	)	$	347,337
EBITDA (1)	52,200			69,202			1,691			123,093
Interest income	22			73			782			877
Interest expense, net of amounts capitalized	(13,794		)	(88		)	(24,773		)	(38,655		)
Income tax benefit (provision), net	(2,652		)	(5,218		)	8,535			665
Depreciation and amortization	(31,439		)	(55,588		)	—			(87,027		)
Net income (loss) attributable to HSS	$	4,337		$	8,381		$	(13,765	)	$	(1,047	)

For the Three Months Ended March 31, 2011
Total revenue	$	67,904		$	—	$	—		$	67,904
EBITDA (1)	44,659			—		383			45,042
Interest income	28			—		2			30
Interest expense, net of amounts capitalized	(9,979		)	—		6,546			(3,433		)
Income tax benefit (provision), net	(4,137		)	—		(2,551		)	(6,688		)
Depreciation and amortization	(23,468		)	—		—			(23,468		)
Net income (loss) attributable to HSS	$	7,103		$	—	$	4,380		$	11,483

(1) EBITDA is not a measure determined in accordance with GAAP and should not be considered a substitute for operating income, net income or any other measure determined in accordance with GAAP. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. EBITDA is used by our management as a measure of operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes EBITDA provides meaningful supplemental information regarding liquidity and the underlying operating performance of our business. Management also believes that EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in our industries.

Geographic Information and Transactions with Major Customers

Geographic Information. Revenues are attributed to geographic regions based upon the location where the goods and services are provided. North American revenue includes transactions with North American customers. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North American and other foreign locations.

	As of
Long-lived assets, including FCC authorizations:	March 31, 2012		December 31, 2011
	(In thousands)
North America	$	3,357,922	$	3,321,620
Other	23,456		23,348
Total long-lived assets	$	3,381,378	$	3,344,968

	For the Three Months Ended March 31,
Revenue:	2012		2011
	(In thousands)
North America	$	293,021	$	67,904
Other	54,316		—
Total revenue	$	347,337	$	67,904

Transactions with Major Customers. During the three months ended March 31, 2012 and 2011, our revenue included sales to DISH Network, our major customer. The following table summarizes sales to our customer and its percentage of total revenue.

	For the Three Months Ended March 31,
	2012			2011
	(In thousands)
Total revenue
DISH Network:
EchoStar Satellite Services Segment	$	53,633		$	53,046
Hughes Segment	531			—
Total DISH Network	54,164			53,046
All other	293,173			14,858
Total revenue	$	347,337		$	67,904
Percentage of total revenue
DISH Network	15.6		%	78.1		%
All other	84.4		%	21.9		%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions

Related Party Transactions

Note 12. Related Party Transactions

EchoStar

We and EchoStar have agreed that we shall have the right, but not the obligation, to receive from EchoStar certain corporate services, including among other things: treasury, tax, accounting and reporting, risk management, legal, internal audit, human resources, and information technology. In addition, we occupy certain office space in buildings owned by EchoStar and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy. These services are provided at cost. We may terminate a particular service we receive from EchoStar for any reason upon at least 30 days notice. We recorded expense for these services of $3 million and $2 million for the three months ended March 31, 2012 and 2011, respectively.

DISH Network

Following the Spin-off, EchoStar and DISH Network have operated as separate public companies and DISH Network has no ownership interest in EchoStar or us. However, a substantial majority of the voting power of the shares of EchoStar and DISH network is owned beneficially by Charles W. Ergen, our Chairman, or by certain trusts established by Mr. Ergen for the benefit of his family.

EchoStar and DISH Network have entered into certain agreements pursuant to which EchoStar and we obtain certain products, services and rights from DISH Network, DISH Network obtains certain products, services and rights from us and EchoStar, and we and DISH Network have indemnified each other against certain liabilities arising from our respective businesses. EchoStar also may enter into additional agreements with DISH Network in the future.

Generally, the amounts DISH Network pays for products and services provided under the agreements entered into in connection with the Spin-off are based on our cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided.

The following is a summary of the terms of the principal agreements that EchoStar or we have entered into with DISH Network that may have an impact on our financial position and results of operations.

“Services and other revenue — DISH Network”

Satellite Capacity Agreements. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which DISH Network leases satellite capacity on certain satellites owned or leased by us. The fees for the leases provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite and the length of the lease. The term of each lease is set forth below:

EchoStar VI, VIII and XII. DISH Network leases certain satellite capacity from us on EchoStar VI, VIII and XII. The leases generally terminate upon the earlier of: (i) the end of life or replacement of the satellite (unless DISH Network determines to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service, and the exercise of certain renewal options. DISH Network generally has the option to renew each lease 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.

EchoStar IX. DISH Network leases certain satellite capacity from us on EchoStar IX. Subject to availability, DISH Network generally has the right to continue to lease satellite capacity from us on EchoStar IX on a month-to-month basis.

EchoStar XVI. DISH Network will lease certain satellite capacity from us on EchoStar XVI after its service commencement date, and this lease generally terminates 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) ten years following the actual service commencement date. Upon expiration of the initial term, DISH Network has the option to renew on a year-to-year basis through the end of life of the satellite. There can be no assurance that any options to renew this agreement will be exercised. EchoStar XVI is expected to be launched during the second half of 2012.

EchoStar XV. EchoStar XV is owned by DISH Network and is operated at the 61.5 degree west longitude orbital location. The FCC has granted us an authorization to operate the satellite at the 61.5 degree west longitude orbital location. For so long as EchoStar XV remains in service at the 61.5 degree west longitude orbital location, DISH Network is obligated to pay us a fee for the use of the orbital slot which varies depending on the number of frequencies being used by EchoStar XV.

Nimiq 5 Agreement. During 2009, we entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). During 2009, DISH Network also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which they receive service 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 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date it was placed into service. Upon expiration of the initial term, DISH Network has the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end of life of the Nimiq 5 satellite. Upon in-orbit failure or end of life of the Nimiq 5 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite.

QuetzSat-1 Agreement. During 2008, we entered into a ten-year satellite service agreement with SES, which provides, among other things, for the provision by SES to us of service on 32 DBS transponders on the QuetzSat-1 satellite. This satellite was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree west longitude orbital location while we and DISH Network explore alternative uses for the QuetzSat-1 satellite. In the interim, we are providing DISH Network with alternate capacity at the 77 degree west longitude orbital location. We commenced payments under our agreement with SES upon the placement of the QuetzSat-1 satellite at the 67.1 degree west longitude orbital location. During 2008, we also entered into a transponder service agreement with DISH Network pursuant to which DISH Network will receive service from us on 24 of the DBS transponders on QuetzSat-1, which will replace certain other transponders leased from us.

Under the terms of our contractual arrangements with DISH Network, we will recognize revenue for the QuetzSat-1 satellite when it is placed into service at the 77 degree west longitude orbital location and continuing 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.

TT&C Agreement. In connection with the Spin-off, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we provided TT&C services to DISH Network for a period ending on January 1, 2012 (the “Prior TT&C Agreement”). The fees for services provided under the Prior TT&C Agreement were calculated at cost plus a fixed margin. DISH Network was able to terminate the Prior TT&C Agreement for any reason upon 60 days notice.

On January 1, 2012, we entered into a TT&C agreement pursuant to which we will continue to provide TT&C services to DISH Network and its subsidiaries for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The material terms of the 2012 TT&C Agreement are substantially the same as the material terms of the Prior TT&C Agreement, except that 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.

Blockbuster. On April 26, 2011, DISH Network acquired substantially all of the assets of Blockbuster, Inc. (the “Blockbuster Acquisition”). On June 8, 2011, EchoStar completed the Hughes Acquisition. Hughes provided certain broadband products and services to Blockbuster pursuant to an agreement that was entered into prior to the Blockbuster Acquisition and the Hughes Acquisition. Subsequent to both the Blockbuster Acquisition and the Hughes Acquisition, Blockbuster entered into a new agreement with Hughes which extends for a period through October 31, 2014, pursuant to which Blockbuster may continue to purchase broadband products and services from Hughes. Blockbuster has the option to renew the agreement for an additional one year period.

RUS Implementation Agreement. In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH Network’s wholly owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the United States Department of Agriculture to receive up to approximately $14 million in broadband stimulus grant funds (the “Grant Funds”). Effective November 2011, Hughes Communications and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which Hughes Communications provides certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. The initial term of the RUS Agreement shall continue until the earlier of: (i) September 24, 2013; or (ii) the date that the Grant Funds have been exhausted. In addition, DISH Broadband may terminate the RUS Agreement for convenience upon 45 days’ prior written notice to Hughes Communications.

“General and administrative expenses — DISH Network”

Management Services Agreement. EchoStar entered into a Management Services Agreement with DISH Network pursuant to which DISH Network makes certain of its officers available to provide services (which are primarily legal and accounting services) to us and EchoStar. Specifically, Paul W. Orban remains employed by DISH Network, but also served as EchoStar’s Senior Vice President and Controller through April 2012. In addition, R. Stanton Dodge remains employed by DISH Network, but also served as EchoStar’s and our Executive Vice President, General Counsel and Secretary through November 2011. EchoStar makes payments to DISH Network based upon an allocable portion of the personnel costs and expenses incurred by DISH Network with respect to such DISH Network officers (taking into account wages and fringe benefits). These allocations are based upon the estimated percentages of time to be spent by the DISH Network executive officers performing services for us and EchoStar under the Management Services Agreement. EchoStar also reimburses DISH Network for direct out-of-pocket costs incurred by DISH Network for management services provided to us and EchoStar. EchoStar and DISH Network evaluate all charges for reasonableness at least annually and make any adjustments to these charges as EchoStar and DISH Network mutually agree upon. A portion of these costs and expenses has been allocated to us in the manner described above under the caption “EchoStar.”

The Management Services Agreement automatically renewed on January 1, 2012 for an additional one-year period until January 1, 2013 and renews automatically for successive one-year periods thereafter, unless terminated earlier: (i) by us at any time upon at least 30 days notice; (ii) by DISH Network at the end of any renewal term, upon at least 180 days notice; or (iii) by DISH Network upon notice to us, following certain changes in control.

Professional Services Agreement. Prior to 2010, in connection with the Spin-off, EchoStar entered into various agreements with DISH Network including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, EchoStar and DISH Network agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, EchoStar and DISH Network agreed that DISH Network shall 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) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement). A portion of these costs and expenses has been allocated to us in the manner described above under the caption “EchoStar.” The Professional Services Agreement automatically renewed on January 1, 2012 for an additional one-year period until January 1, 2013 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days notice.

Other Agreements — DISH Network

Satellite Capacity Leased from DISH Network. During 2009, we entered into a satellite capacity agreement pursuant to which we lease certain satellite capacity from DISH Network on EchoStar I. The fee for the services provided under this satellite capacity agreement depends, among other things, upon the orbital location of the satellite and the length of the lease. During the three months ended March 31, 2012 and 2011, the amount of those fees included in “Cost of sales — services and other” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) was approximately $4 million and $6 million, respectively. The lease generally terminates upon the earlier of: (i) the end of life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponder on which service is being provided fails; or (iv) a certain date, which depends, among other things, upon the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service, and the exercise of certain renewal options. We generally have the option to renew this lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised.

Tax Sharing Agreement. As a subsidiary of EchoStar, we are an indirect party to EchoStar’s tax sharing agreement with DISH Network that was entered into in connection with the Spin-off. This agreement governs EchoStar and DISH Network’s respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network, and DISH Network will indemnify EchoStar for such taxes. However, DISH Network is not liable for and will not indemnify EchoStar for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”) because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar takes or fails to take; or (iii) any action that EchoStar takes that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar will be solely liable for, and will indemnify DISH Network for, any resulting taxes, as well as any losses, claims and expenses. The tax sharing agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed.

DBSD North America Agreement. On March 9, 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America. Prior to DISH Network’s acquisition of DBSD North America and our completion of the Hughes Acquisition, DBSD North America and Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of Hughes, entered into an agreement pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services of DBSD North America’s satellite gateway and associated ground infrastructure. This agreement was renewed for a one year period ending on February 15, 2013, and renews for four successive one-year periods unless terminated by DBSD North America upon at least 30 days notice prior to the expiration of any renewal term. During the three months ended March 31, 2012, our Hughes segment provided services to DBSD North America for an aggregate amount of less than $1 million.

TerreStar Agreement. On March 9, 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar. Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and our completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by DISH Network at any time for convenience. During the three months ended March 31, 2012, our Hughes segment provided services to TerreStar for an aggregate amount of less than $1 million.

Hughes Systique Corporation (“Hughes Systique”)

We contract with Hughes Systique for software development services. In addition to our 45% ownership in Hughes Systique, Pradman Kaul, the President of Hughes Communications, Inc. and a member of EchoStar’s Board of Directors and his brother, who is the CEO and President of Hughes Systique, in the aggregate, owned approximately 26%, on an undiluted basis, of Hughes Systique’s outstanding shares as of March 31, 2012. Furthermore, Mr. Pradman Kaul serves on the board of directors of Hughes Systique. We are considered the “primary beneficiary” of Hughes Systique and as a result, we are required to consolidate Hughes Systique’s financial statements.

Dish Mexico

During 2008, EchoStar entered into a joint venture for a direct-to-home (“DTH”) satellite service in Mexico known as Dish Mexico. Pursuant to these arrangements, we provide satellite capacity to Dish Mexico. For each of the three months ended March 31, 2012 and 2011, we recognized $2 million of satellite services revenue from Dish Mexico. As of each of March 31, 2012 and December 31, 2011, we had our account receivable balance due from Dish Mexico of less than $1 million.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Supplemental Guarantor and Non-Guarantor Financial Information

3 Months Ended

Mar. 31, 2012

Supplemental Guarantor and Non-Guarantor Financial Information

Supplemental Guarantor and Non-Guarantor Financial Information

Note 13. Supplemental Guarantor and Non-Guarantor Financial Information

Certain of the Company’s wholly-owned subsidiaries (together, the “Guarantor Subsidiaries”) have fully and unconditionally guaranteed, on a joint and several basis, the obligations of the Company under the Notes, which were issued on June 1, 2011.

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 the Company, the Guarantor Subsidiaries on a combined basis and the non-guarantor subsidiaries of the Company on a combined basis and the eliminations necessary to arrive at the corresponding information of the Company on a consolidated basis.

No condensed consolidating financial information is presented for the three months ended March 31, 2011, as any subsidiaries of the Company other than the Guarantor Subsidiaries then existing were minor during that period. The indentures of the Notes contain restrictive covenants that, among other things, impose limitations on the ability of the Company and certain of its restricted subsidiaries to pay dividends or make distributions, incur additional debt, make certain investments, create liens or enter into sale and leaseback transactions, merge or consolidate with another company, transfer and sell assets, or enter into transactions with affiliates.

The condensed consolidating financial information should be read in conjunction with the Company’s consolidated financial statements and notes thereto included herein.

Condensed Consolidating Balance Sheet as of March 31, 2012

(In thousands)

			Guarantor			Non-Guarantor
	HSS		Subsidiaries			Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	36,951	$	74,485		$	10,463	$	—		$	121,899
Marketable investment securities	208,821		5,400			—		—			214,221
Trade accounts receivable, net	—		111,108			58,244		—			169,352
Trade accounts receivable - DISH Network, net	—		64,224			—		—			64,224
Advances to affiliates, net	499,774		—			—		(499,774		)	—
Inventory	—		46,529			10,062		—			56,591
Other current assets	4,297		39,591			21,783		(784		)	64,887
Total current assets	749,843		341,337			100,552		(500,558		)	691,174
Restricted cash and cash equivalents	4,454		17,576			1,211		—			23,241
Property and equipment, net	—		2,054,741			27,008		—			2,081,749
Goodwill	—		509,860			—		—			509,860
FCC authorizations	—		465,658			—		—			465,658
Intangible assets, net	—		324,111			—		—			324,111
Investment in subsidiaries	—		62,209			—		(62,209		)	—
Intercompany note and interest receivables	2,316,332		—			—		(2,316,332		)	—
Other noncurrent assets, net	54,422		113,278			5,382		(2,065		)	171,017
Total assets	$	3,125,051	$	3,888,770		$	134,153	$	(2,881,164	)	$	4,266,810
Liabilities and Shareholder’s Equity (Deficit)
Trade accounts payable	$	—	$	127,402		$	18,638	$	—		$	146,040
Trade accounts payable - DISH Network	5		9,112			—		—			9,117
Advances from affiliates, net	—		523,132			17,622		(538,730		)	2,024
Accrued expenses and other	52,975		108,786			24,030		(680		)	185,111
Current portion of long-term debt and capital lease obligations	—		64,234			1,523		—			65,757
Total current liabilities	52,980		832,666			61,813		(539,410		)	408,049
Long-term debt and capital lease obligations, net of current portion	2,000,000		474,751			1,180		—			2,475,931
Intercompany note and interest payables	—		2,316,332			—		(2,316,332		)	—
Other long-term liabilities	3,333		302,504			975		(2,169		)	304,643
Total HSS shareholder’s equity (deficit)	1,068,738		(37,483		)	60,736		(23,253		)	1,068,738
Noncontrolling interests	—		—			9,449		—			9,449
Total liabilities and shareholder’s equity (deficit)	$	3,125,051	$	3,888,770		$	134,153	$	(2,881,164	)	$	4,266,810

Condensed Consolidating Balance Sheet as of December 31, 2011

(In thousands)

			Guarantor			Non-Guarantor
	HSS		Subsidiaries			Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	70,603	$	40,854		$	13,546	$	—		$	125,003
Marketable investment securities	254,656		6,426			—		—			261,082
Trade account receivables, net	—		112,507			59,410		—			171,917
Trade account receivables - DISH Network, net	—		33,128			—		—			33,128
Advances to affiliates, net	424,597		—			—		(420,380		)	4,217
Inventory	—		39,735			7,823		—			47,558
Other current assets	4,288		49,968			19,883		—			74,139
Total current assets	754,144		282,618			100,662		(420,380		)	717,044
Restricted cash and cash equivalents	4,410		17,865			1,265		—			23,540
Property and equipment, net	—		1,995,043			26,862		—			2,021,905
Goodwill	—		516,198			—		—			516,198
FCC authorizations	—		465,658			—		—			465,658
Intangible assets, net	—		341,207			—		—			341,207
Investment in subsidiaries	—		58,861			—		(58,861		)	—
Intercompany note and interest receivables	2,271,522		—			—		(2,271,522		)	—
Other noncurrent assets, net	55,405		102,956			7,046		(2,122		)	163,285
Total assets	$	3,085,481	$	3,780,406		$	135,835	$	(2,752,885	)	$	4,248,837
Liabilities and Shareholder’s Equity (Deficit)
Trade accounts payable	$	39	$	123,787		$	18,107	$	—		$	141,933
Trade accounts payable - DISH Network	5		10,095			—		—			10,100
Advances from affiliates, net	—		432,838			21,594		(454,432		)	—
Accrued expenses and other	17,817		133,051			23,927		—			174,795
Current portion of long-term debt and capital lease obligations	—		62,708			1,467		—			64,175
Total current liabilities	17,861		762,479			65,095		(454,432		)	391,003
Long-term debt and capital lease obligations, net of current portion	2,000,000		467,408			1,479		—			2,468,887
Intercompany note and interest payables	—		2,271,522			—		(2,271,522		)	—
Other long-term liabilities	—		311,742			2,597		(2,122		)	312,217
Total HSS shareholder’s equity (deficit)	1,067,620		(32,745		)	57,554		(24,809		)	1,067,620
Noncontrolling interests	—		—			9,110		—			9,110
Total liabilities and shareholder’s equity (deficit)	$	3,085,481	$	3,780,406		$	135,835	$	(2,752,885	)	$	4,248,837

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2012

(In thousands)

	HSS			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue	$	—		$	205,746		$	36,715		$	(2,914	)	$	239,547
Equipment revenue	—			52,183			6,823			(5,380		)	53,626
Services and other revenue - DISH Network	—			54,164			—			—			54,164
Total revenue	—			312,093			43,538			(8,294		)	347,337
Costs and Expenses: (exclusive of depreciation shown separately below)
Costs of sales - services and other	—			97,317			24,146			(2,772		)	118,691
Cost of sales - equipment	—			45,984			5,020			(4,696		)	46,308
Selling, general and administrative expenses	551			47,095			8,956			(826		)	55,776
Research and development expenses	—			4,957			—			—			4,957
Depreciation and amortization	—			84,885			2,142			—			87,027
Total costs and expenses	551			280,238			40,264			(8,294		)	312,759
Operating income (loss)	(551		)	31,855			3,274			—			34,578
Other Income (expense):
Interest income	45,400			201			592			(45,316		)	877
Interest expense, net of amounts capitalized	(36,244		)	(47,074		)	(653		)	45,316			(38,655		)
Equity in earnings of subsidiaries	(6,424		)	1,019			—			5,405			—
Other, net	18			1,850			(467		)	—			1,401
Total other income (expense)	2,750			(44,004		)	(528		)	5,405			(36,377		)
Income (loss) before income taxes	2,199			(12,149		)	2,746			5,405			(1,799		)
Income tax (provision) benefit, net	(3,333		)	5,892			(1,894		)	—			665
Net income (loss)	(1,134		)	(6,257		)	852			5,405			(1,134		)
Less: Net income (loss) attributable to noncontrolling interests	—			—			(87		)	—			(87		)
Net income (loss) attributable to HSS	$	(1,134	)	$	(6,257	)	$	939		$	5,405		$	(1,047	)
Comprehensive Income (Loss):
Net income (loss)	$	(1,134	)	$	(6,257	)	$	852		$	5,405		$	(1,134	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			2,488			—			2,488
Unrealized holding gains (losses) on available-for-sale securities	731			(1,026		)	—			—			(295		)
Equity in other comprehensive income (loss) of subsidiaries	1,204			2,230			—			(3,434		)	—
Total other comprehensive income (loss), net of tax:	1,935			1,204			2,488			(3,434		)	2,193
Comprehensive income (loss)	801			(5,053		)	3,340			1,971			1,059
Less: Comprehensive income (loss) attributable to noncontrolling interests	—			—			171			—			171
Comprehensive income (loss) attributable to HSS	$	801		$	(5,053	)	$	3,169		$	1,971		$	888

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2012

(In thousands)

				Guarantor			Non-Guarantor
	HSS			Subsidiaries			Subsidiaries			Eliminations			Total
Cash Flows From Operating Activities:
Net income (loss)	$	(1,134	)	$	(6,257	)	$	852		$	5,405		$	(1,134	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(77,403		)	159,455			(2,498		)	(5,405		)	74,149
Net cash flows from operating activities	(78,537		)	153,198			(1,646		)	—			73,015
Cash Flows From Investing Activities:
Purchases of marketable investment securities	(52,904		)	—			—			—			(52,904		)
Sales and maturities of marketable investment securities	98,062			—			—			—			98,062
Purchases of property and equipment	—			(101,368		)	(1,548		)	—			(102,916		)
Change in restricted cash and cash equivalents	(44		)	289			54			—			299
Other, net	—			(3,002		)	—			—			(3,002		)
Net cash flows from investing activities	45,114			(104,081		)	(1,494		)	—			(60,461		)
Cash Flows From Financing Activities:
Repayment of long-term debt and capital lease obligations	—			(15,491		)	(456		)	—			(15,947		)
Debt issuance costs	(229		)	—			—			—			(229		)
Other	—			5			84			—			89
Net cash flows from financing activities	(229		)	(15,486		)	(372		)	—			(16,087		)
Effect of exchange rates on cash and cash equivalents	—			—			429			—			429
Net increase (decrease) in cash and cash equivalents	(33,652		)	33,631			(3,083		)	—			(3,104		)
Cash and cash equivalents, at beginning of period	70,603			40,854			13,546			—			125,003
Cash and cash equivalents, at end of period	$	36,951		$	74,485		$	10,463		$	—		$	121,899