View Filing Data

As of March 31, 2012

Number of
Awards

Weighted-
Average
Exercise
Price

Stock options

Restricted Performance Units

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2012	Apr. 30, 2012
Entity Registrant Name	EchoStar CORP
Entity Central Index Key	0001415404
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	Large Accelerated Filer
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Class A common stock
Entity Common Stock, Shares Outstanding		39,358,396
Class B common stock
Entity Common Stock, Shares Outstanding		47,687,039

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 629,094	$ 614,035
Marketable investment securities	1,053,650	1,082,407
Trade accounts receivable, net of allowance for doubtful accounts of $18,893 and $18,484, respectively	240,486	212,960
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero	284,407	229,852
Inventory	97,621	68,707
Deferred tax assets	38,340	23,492
Other current assets	67,673	76,284
Total current assets	2,411,271	2,307,737
Noncurrent Assets:
Restricted cash and marketable investment securities	23,987	24,286
Property and equipment, net of accumulated depreciation of $2,092,470 and $2,003,875, respectively	2,509,702	2,453,546
FCC authorizations	469,810	469,810
Intangible assets, net	443,146	466,452
Goodwill	526,680	533,018
Marketable and other investment securities	147,315	140,439
Other noncurrent assets, net	155,558	148,449
Total noncurrent assets	4,276,198	4,236,000
Total assets	6,687,469	6,543,737
Current Liabilities:
Trade accounts payable	305,172	250,366
Trade accounts payable - DISH Network	19,002	16,374
Deferred revenue and other	49,778	54,090
Accrued interest	41,522	6,353
Accrued royalties	17,490	23,590
Accrued expenses and other	155,625	167,710
Current portion of long-term debt and capital lease obligations	68,541	65,239
Total current liabilities	657,130	583,722
Long-Term Obligations, Net of Current Portion:
Long-term debt and capital lease obligations, net of current portion	2,477,143	2,469,023
Deferred tax liabilities	378,218	373,391
Long-term deferred revenue and other long-term liabilities	67,924	65,975
Total long-term obligations, net of current portion	2,923,285	2,908,389
Total liabilities	3,580,415	3,492,111
Commitments and Contingencies (Note 12)
Stockholders' Equity (Deficit):
Preferred Stock, $.001 par value, 20,000,000 shares authorized, none issued and outstanding
Additional paid-in capital	3,368,534	3,360,301
Accumulated other comprehensive income (loss)	86,039	165,771
Accumulated earnings (deficit)	(258,899)	(385,487)
Treasury stock, at cost	(98,162)	(98,162)
Total EchoStar stockholders' equity (deficit)	3,097,605	3,042,516
Noncontrolling interests	9,449	9,110
Total stockholders' equity (deficit)	3,107,054	3,051,626
Total liabilities and stockholders' equity (deficit)	6,687,469	6,543,737
Class A common stock
Stockholders' Equity (Deficit):
Common stock	45	45
Class B common stock
Stockholders' Equity (Deficit):
Common stock	48	48
Class C common stock
Stockholders' Equity (Deficit):
Common stock
Class D common stock
Stockholders' Equity (Deficit):
Common stock

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Current Assets:
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 18,893	$ 18,484
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars)	0	0
Property and equipment, accumulated depreciation (in dollars)	$ 2,092,470	$ 2,003,875
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Class A common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	44,561,296	44,500,440
Common stock, shares outstanding	39,028,978	38,968,122
Class B common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	47,687,039	47,687,039
Common stock, shares outstanding	47,687,039	47,687,039
Class C common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Class D common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenue:
Equipment revenue - DISH Network	$ 237,365	$ 272,126
Equipment revenue - other	157,347	65,909
Services and other revenue - DISH Network	126,658	121,207
Services and other revenue - other	243,410	20,584
Total revenue	764,780	479,826
Costs and Expenses: (exclusive of depreciation shown separately below - Note 7)
Cost of sales - equipment	337,166	293,384
Cost of sales - services and other	167,830	61,460
Research and development expenses	17,350	8,859
Selling, general and administrative expenses	96,979	44,772
General and administrative expenses - DISH Network	1,955	3,489
Depreciation and amortization (Notes 7 and 8)	114,090	57,014
Total costs and expenses	735,370	468,978
Operating income (loss)	29,410	10,848
Other Income (Expense):
Interest income	2,879	2,677
Interest expense, net of amounts capitalized	(38,621)	462
Unrealized and realized gains (losses) on marketable investment securities and other investments	127,995	665
Unrealized gains (losses) on investments accounted for at fair value, net		3,304
Other, net	4,533	6,991
Total other income (expense)	96,786	14,099
Income (loss) before income taxes	126,196	24,947
Income tax (provision) benefit, net	305	(7,788)
Net income (loss)	126,501	17,159
Less: Net income (loss) attributable to noncontrolling interests	(87)	(5)
Net income (loss) attributable to EchoStar	$ 126,588	$ 17,164
Weighted-average common shares outstanding - Class A and B common stock:
Basic (in shares)	86,684	85,466
Diluted (in shares)	87,326	92,331
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar (in dollars per share)	$ 1.46	$ 0.20
Diluted net income (loss) per share attributable to EchoStar (in dollars per share)	$ 1.45	$ 0.19
Comprehensive Income (Loss):
Net income (loss)	$ 126,501	$ 17,159
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	5,092	(192)
Unrealized holding gains (losses) on available-for-sale securities	43,429	6,771
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(127,995)	(665)
Total other comprehensive income (loss), net of tax	(79,474)	5,914
Comprehensive income (loss)	47,027	23,073
Less: Comprehensive income (loss) attributable to noncontrolling interests	171	(5)
Comprehensive income (loss) attributable to EchoStar	$ 46,856	$ 23,078

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)	$ 126,501	$ 17,159
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	114,090	57,014
Equity in losses (earnings) of affiliates	(4,185)	(5,008)
Unrealized and realized (gains) losses on marketable investment securities and other investments	(127,995)	(665)
Unrealized (gains) losses on investments accounted for at fair value, net		(3,304)
Non-cash, stock-based compensation	6,918	2,981
Deferred tax expense (benefit)	(4,766)	1,759
Other, net	6,511	353
Change in noncurrent assets	(3,681)	1,570
Changes in current assets and current liabilities, net	(34,183)	21,313
Changes in current assets and current liabilities:
Net cash flows from operating activities	79,210	93,172
Cash Flows From Investing Activities:
Purchases of marketable investment securities	(278,902)	(551,508)
Sales and maturities of marketable investment securities	348,754	488,781
Purchases of property and equipment	(114,007)	(39,140)
Change in restricted cash and marketable investment securities	299
Purchase of strategic investments included in marketable and other investment securities	(374)	(27,775)
Proceeds from sale of strategic investments		15,437
Other, net	(4,554)	51
Net cash flows from investing activities	(48,784)	(114,154)
Cash Flows From Financing Activities:
Repayment of long-term debt and capital lease obligations	(17,477)	(13,019)
Debt issuance costs	(229)
Net proceeds from Class A common stock options exercised and issued under the Employee Stock Purchase Plan	1,297	14,153
Other	288	694
Net cash flows from financing activities	(16,121)	1,828
Effect of exchange rates on cash and cash equivalents	754	(1,064)
Net increase (decrease) in cash and cash equivalents	15,059	(20,218)
Cash and cash equivalents, beginning of period	614,035	141,814
Cash and cash equivalents, end of period	629,094	121,596
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest (including capitalized interest)	13,737	11,716
Capitalized interest	11,598	9,050
Cash received for interest	4,993	4,693
Cash paid for income taxes	1,648	474
Satellites and other assets financed under capital lease obligations	28,455	9,343
Capital expenditures included in accounts payable	$ 7,652	$ 9,463

Organization and Business Activities

3 Months Ended

Mar. 31, 2012

Organization and Business Activities

Organization and Business Activities

1. Organization and Business Activities

Principal Business

We were organized in October 2007 as a corporation under the laws of the State of Nevada. EchoStar Corporation is a holding company (together with its subsidiaries, “EchoStar,” the “Company,” “we,” “us” and/or “our”). On June 8, 2011, we acquired all of the outstanding equity of Hughes Communications, Inc. (the “Hughes Acquisition”). Following the Hughes Acquisition, we operate three segments.

· EchoStar Technologies — which designs, develops and distributes digital set-top boxes and related products and technology, including our Slingbox “placeshifting” technology, primarily for satellite TV service providers, telecommunication and international cable companies and, with respect to Slingboxes, directly to consumers via retail outlets. Our EchoStar Technologies segment also provides digital broadcast operations including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services primarily to DISH Network.

· 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 results of operations of Hughes Communications, Inc. and its subsidiaries (“Hughes Communications”) are included in our results effective June 9, 2011. See Note 11 for further discussion of the Hughes Acquisition.

Effective January 1, 2008, DISH Network completed its distribution to us (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, we 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

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. 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.

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 our 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 9 for the fair value of our long-term debt.

Basic and Diluted Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2012

Basic and Diluted Net Income (Loss) Per Share

Basic and Diluted Net Income (Loss) Per Share

3. Basic and Diluted Net Income (Loss) Per Share

We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to EchoStar” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised.

The potential dilution from stock awards was computed using the treasury stock method based on the average market value of our Class A common stock. The following table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands except per share amounts)
Net income (loss) attributable to EchoStar	$	126,588	$	17,164

Weighted-average common shares outstanding - Class A and B common stock:
Basic	86,684		85,466
Dilutive impact of stock awards outstanding	642		6,865
Diluted	87,326		92,331

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar	$	1.46	$	0.20
Diluted net income (loss) per share attributable to EchoStar	$	1.45	$	0.19

As of March 31, 2012 and 2011, there were stock awards to purchase 4.4 million and 2.3 million shares, respectively, of our Class A common stock outstanding, not included in the weighted-average common shares outstanding above, as their effect is antidilutive.

Vesting of options and rights to acquire shares of our Class A common stock granted pursuant to a performance-based stock incentive plan (“Restricted Performance Units”) is contingent upon meeting a certain company goal which is not yet probable of being achieved. As a consequence, the following are also not included in the diluted EPS calculation.

	As of March 31,
	2012	2011
	(In thousands)
Performance-based options	659	689
Restricted Performance Units	74	92
Total	733	781

Other Comprehensive Income Related Tax Effects

3 Months Ended

Mar. 31, 2012

Other Comprehensive Income Related Tax Effects

Other Comprehensive Income Related Tax Effects

4. Other Comprehensive Income Related Tax Effects

The following table presents the tax effects allocated to each component of other comprehensive income. 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								2011
	Before			Tax		Net			Before			Tax		Net
	Tax			(Expense)		of Tax			Tax			(Expense)		of Tax
	Amount			Benefit		Amount			Amount			Benefit		Amount
	(In thousands)
Foreign currency translation adjustments	$	5,092		$	—	$	5,092		$	(192	)	$	—	$	(192	)
Unrealized holding gains (losses) on available-for-sale securities	43,429			—		43,429			6,771			—		6,771
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(127,995		)	—		(127,995		)	(665		)	—		(665		)
Other comprehensive income (loss)	$	(79,474	)	$	—	$	(79,474	)	$	5,914		$	—	$	5,914

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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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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-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e709-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6920433&loc=d3e998-108581

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e640-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e716-108580

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e689-108580

+ Details

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

3 Months Ended

Mar. 31, 2012

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

5. Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consist of the following:

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Marketable investment securities - current:
VRDNs	$	214,845	$	218,665
Strategic	120,170		216,090
Other	718,635		647,652
Total marketable investment securities - current	1,053,650		1,082,407
Restricted marketable investment securities (1)	3,181		3,939
Total	1,056,831		1,086,346

Restricted cash and cash equivalents (1)	20,806		20,347

Marketable and other investment securities - noncurrent:
Cost method	26,193		26,193
Equity method	121,122		114,246
Total marketable and other investment securities - noncurrent	147,315		140,439
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	1,224,952	$	1,247,132

(1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash and marketable investment securities” on our Condensed Consolidated Balance Sheets.

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 securities are highly speculative and have experienced and continue to experience volatility. As of March 31, 2012 and December 31, 2011, a significant portion of our strategic investment portfolio consisted of securities of several issuers and a significant portion of the value of that portfolio depends on the value of those issuers.

Other

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

Restricted Cash and Marketable Investment Securities

As of March 31, 2012 and December 31, 2011, our restricted marketable investment securities, together with our restricted cash, included amounts required as collateral for our letters of credit or surety bonds.

Marketable and Other Investment Securities - Noncurrent

We account for our unconsolidated debt and equity investments under the fair value, equity and/or cost method of accounting. We have several strategic investments in certain equity securities that are included in noncurrent “Marketable and 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.

Fair Value

We elect the fair value method for certain debt and equity investments in affiliates when we believe the fair value method of accounting provides more meaningful information to our investors. For our investments carried at fair value, interest and dividends are measured at fair value and are recorded in “Unrealized gains (losses) on investments accounted for at fair value, net” in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Unrealized Gains (Losses) on Marketable Investment Securities

As of March 31, 2012 and December 31, 2011, we had accumulated net unrealized gains, net of related tax effect, of $95 million and $180 million, respectively, as a part of “Accumulated other comprehensive income (loss)” within “Total stockholders’ 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										As of December 31, 2011
	Marketable										Marketable
	Investment		Unrealized								Investment		Unrealized
	Securities		Gains		Losses			Net			Securities		Gains		Losses			Net
	(In thousands)
Debt securities:
VRDNs	$	214,845	$	—	$	—		$	—		$	218,665	$	—	$	—		$	—
Other (including restricted)	721,816		635		(1,017		)	(382		)	651,591		253		(2,715		)	(2,462		)
Equity securities:
Other	120,170		95,568		—			95,568			216,090		182,214		—			182,214
Total marketable investment securities	$	1,056,831	$	96,203	$	(1,017	)	$	95,186		$	1,086,346	$	182,467	$	(2,715	)	$	179,752

As of March 31, 2012, restricted and non-restricted marketable investment securities included debt securities of $831 million with contractual maturities of one year or less and $106 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

The following table reflects the length of time that our available-for-sale debt securities have been in an unrealized loss position. 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.

	As of
	March 31, 2012					December 31, 2011
Debt Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
Less than 12 months	$	428,083	$	(1,017	)	$	507,925	$	(2,709	)
12 months or more	—		—			3,931		(6		)
Total	$	428,083	$	(1,017	)	$	511,856	$	(2,715	)

Fair Value Measurements

Our investments measured at fair value on a recurring basis were as follows:

	As of
	March 31, 2012								December 31, 2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)

Cash equivalents (including restricted)	$	534,686	$	15,735	$	518,951	$	—	$	543,243	$	16,197	$	527,046	$	—

Debt securities:
VRDNs	$	214,845	$	—	$	214,845	$	—	$	218,665	$	—	$	218,665	$	—
Other (including restricted)	721,816		—		721,816		—		651,591		—		651,591		—

Equity securities - strategic	120,170		120,170		—		—		216,090		216,090		—		—

Total assets at fair value	$	1,056,831	$	120,170	$	936,661	$	—	$	1,086,346	$	216,090	$	870,256	$	—

Unrealized and Realized Gains (Losses) on Marketable Investment Securities and Other Investments

During the three months ended March 31, 2012 and 2011, we recognized $128 million and $1 million, respectively, of realized gains on sales of our debt and equity marketable investment securities.

Investment in TerreStar

In February 2008, we completed several transactions under a Master Investment Agreement between us, TerreStar Corporation and TerreStar Networks Inc. (“TerreStar”). Under the Master Investment Agreement, we acquired, among other things, $50 million in aggregate principal amount of TerreStar Networks Inc.’s 6 1/2% Senior Exchangeable Paid-in-Kind Notes due June 15, 2014 (“Exchangeable Notes”). TerreStar Networks, Inc. and certain of its affiliates filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on October 19, 2010. The United States Bankruptcy Court for the Southern District of New York confirmed TerreStar Networks Inc.’s Chapter 11 plan of reorganization (the “TerreStar Networks Plan”) on February 15, 2012.

Pursuant to the TerreStar Networks Plan, which became effective March 29, 2012, our Exchangeable Notes were cancelled. In satisfaction of our claims against TerreStar under the Exchangeable Notes, we have a right to receive a distribution, along with other general unsecured creditors, in accordance with the terms of the TerreStar Networks Plan. The amount of any distribution we ultimately receive will vary depending upon and will be impacted by, among other things, the outcome of any claim objections, and will be substantially less than the amount we paid for the Exchangeable Notes. Any proceeds received on this investment will be recognized as a gain in “Unrealized and realized gains (losses) on marketable investment securities and other investments” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and will directly impact our profitability. As of March 31, 2012 and December 31, 2011, we had no investment in TerreStar.

Inventory

3 Months Ended

Mar. 31, 2012

Inventory

Inventory

6. Inventory

Inventory consists of the following:

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Finished goods	$	70,556	$	49,038
Raw materials	17,482		11,212
Work-in-process	9,583		8,457
Total inventory	$	97,621	$	68,707

Property and Equipment

3 Months Ended

Mar. 31, 2012

Property and Equipment

Property and Equipment

7. 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	$	23,125
Furniture, fixtures, equipment and other	50,573		25,377
Amortization of intangible assets and other	23,263		6,869
Buildings and improvements	3,195		1,643
Total depreciation and amortization	$	114,090	$	57,014

The increase in our depreciation and amortization expense from the three months ended March 31, 2011 compared to the same period in 2012 is 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 14 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

8. 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	$	295,327	$	(86,995	)	$	295,327	$	(77,560	)
Contract-based	255,366		(154,137		)	255,366		(145,406		)
Technology-based (1)	153,185		(53,656		)	153,185		(49,307		)
Trademark portfolio	32,191		(1,861		)	32,191		(1,364		)
Favorable leases	4,707		(981		)	4,707		(687		)
Total	$	740,776	$	(297,630	)	$	740,776	$	(274,324	)

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 $23 million and $7 million 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)	$	67,726
2013	69,495
2014	78,082
2015	63,360
2016	42,263
Thereafter (1)	122,220
Total	$	443,146

(1) On December 31, 2010, we acquired certain assets of Move Networks, Inc. which included in-process research and development (“R&D”). In-process R&D assets acquired in a business combination initially are considered indefinite-lived assets until either the completion or abandonment of the associated R&D efforts. Upon the successful completion of the development process, we will commence amortization of the balance over the estimated useful life of the project. For purposes of the future amortization table, we include, among other things, the entire in-process R&D balance of $26 million in the category labeled “Thereafter” until such time that the R&D efforts are finalized or abandoned.

Goodwill

During the three months ended March 31, 2012, we made adjustments to the allocation of our purchase price related to the Hughes Acquisition as summarized in the table below.

	Goodwill
	(In thousands)
Balance as of December 31, 2011	$	533,018
Adjustments to the Hughes Acquisition (non-deductible)	(6,338		)
Balance as of March 31, 2012	$	526,680

- 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

9. Debt

Fair Value of our Debt

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	$	1,155,000	$	1,100,000	$	1,138,500
7 5/8% Senior Notes due 2021	900,000		969,750		900,000		936,000
Mortgages and other notes payable	6,567		6,567		6,644		6,644
Subtotal	2,006,567		$	2,131,317	2,006,644		$	2,081,144
Capital lease obligations (1)	539,117		NA		527,618		NA
Total debt and capital lease obligations	$	2,545,684			$	2,534,262

(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).

Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation

Stock-Based Compensation

10. Stock-Based Compensation

Stock Incentive Plans

We maintain stock incentive plans to attract and retain officers, directors and key employees. Stock awards under these plans include both performance and non-performance based stock incentives. As of March 31, 2012, we had outstanding under these plans stock options to acquire 8.7 million shares of our Class A common stock and 0.1 million restricted stock units. Stock options granted prior to and on March 31, 2012 were granted with exercise prices equal to or greater than the market value of our Class A common stock at the date of grant and with a maximum term of ten years. While historically we have issued stock awards subject to vesting, typically at the rate of 20% to 33% per year, some stock awards have been granted with immediate vesting and other stock awards vest only upon the achievement of certain company-wide objectives. As of March 31, 2012, we had 4.8 million shares of our Class A common stock available for future grant under our stock incentive plans.

In connection with the Spin-off, as permitted by DISH Network’s existing stock incentive plans and consistent with the Spin-off exchange ratio, each DISH Network stock option was converted into two stock options as follows:

· an adjusted DISH Network stock option for the same number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.831219.

· a new EchoStar stock option for one-fifth of the number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.843907.

Similarly, each holder of DISH Network restricted stock units retained his or her DISH Network restricted stock units and received one EchoStar restricted stock unit for every five DISH Network restricted stock units that they held.

Consequently, the fair value of the DISH Network stock award and the new EchoStar stock award immediately following the Spin-off was equivalent to the fair value of such stock award immediately prior to the Spin-off.

The following stock awards were outstanding:

	As of March 31, 2012
	EchoStar Awards		DISH Network Awards
Stock Awards Outstanding	Stock Options	Restricted Stock Units	Stock Options	Restricted Stock Units
Held by EchoStar employees	7,916,296	89,940	2,580,701	94,999
Held by DISH Network employees	791,554	53,620	N/A	N/A
Total	8,707,850	143,560	2,580,701	94,999

We are responsible for fulfilling all stock awards related to EchoStar common stock and DISH Network is responsible for fulfilling all stock awards related to DISH Network common stock, regardless of whether such stock awards are held by our or DISH Network’s employees. Notwithstanding the foregoing, our stock-based compensation expense, resulting from stock awards outstanding at the Spin-off date, is based on the stock awards held by our employees regardless of whether such stock awards were issued by EchoStar or DISH Network. Accordingly, stock-based compensation that we expense with respect to DISH Network stock awards is included in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets.

Stock Award Activity

Our stock option activity was as follows:

	For the Three Months
	Ended March 31, 2012
	Options		Weighted- Average Exercise Price
Total options outstanding, beginning of period	8,778,413		$	27.22
Granted	15,000		$	28.14
Exercised	(24,803	)	$	17.80
Forfeited and cancelled	(60,760	)	$	29.99
Total options outstanding, end of period	8,707,850		$	27.23
Performance-based options outstanding, end of period (1)	658,700		$	25.30
Exercisable at end of period	3,742,230		$	26.03

(1) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP below.

We realized tax benefits from stock awards exercised as follows:

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Tax benefit from stock awards exercised	$	1,236	$	2,170

Based on the closing market price of our Class A common stock on March 31, 2012, the aggregate intrinsic value of our stock options was as follows:

	As of March 31, 2012
	Options Outstanding		Options Exercisable
	(In thousands)
Aggregate intrinsic value	$	33,740	$	13,972

Our restricted stock unit activity was as follows:

	For the Three Months
	Ended March 31, 2012
	Restricted Stock Units		Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period	144,226		$	29.22
Granted	—		$	—
Vested	—		$	—
Forfeited and cancelled	(666	)	$	25.46
Total restricted stock units outstanding, end of period	143,560		$	29.24
Restricted Performance Units outstanding, end of period (1)	73,610		$	26.62

(1) These Restricted Performance Units are included in the caption “Total restricted stock units outstanding, end of period.” See discussion of the 2005 LTIP below.

Long-Term Performance-Based Plans

2005 LTIP. During 2005, DISH Network adopted a long-term, performance-based stock incentive plan (the “2005 LTIP”). The 2005 LTIP provides stock options and restricted stock units, either alone or in combination, which vest over seven years at the rate of 10% per year during the first four years, and at the rate of 20% per year thereafter. Exercise of the stock awards is subject to the foregoing vesting schedule and a performance condition that a company-specific goal is achieved by March 31, 2015.

Contingent compensation related to the 2005 LTIP will not be recorded in our financial statements unless and until the achievement of the performance condition is probable. The competitive nature of our industry and certain other factors can significantly impact achievement of the goal. Consequently, while it was determined that achievement of the goal was not probable as of March 31, 2012, this assessment could change in the future.

If all of the stock awards under the 2005 LTIP were vested and the goal had been met, or if we had determined that achievement of the goal was probable during the three months ended March 31, 2012, we would have recorded total non-cash, stock-based compensation expense for our employees as indicated in the table below. If the goal is met and there are unvested stock awards at that time, the vested amounts would be expensed immediately on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), with the unvested portion recognized ratably over the remaining vesting period.

	2005 LTIP
			Vested
	Total		Portion (1)
	(In thousands)
DISH Network awards held by EchoStar employees	$	16,292	$	16,140
EchoStar awards held by EchoStar employees	3,008		2,977
Total	$	19,300	$	19,117

(1) Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon achievement of the performance condition.

Of the 8.7 million stock options and 0.1 million restricted stock units outstanding under our stock incentive plans the following awards were outstanding pursuant to the 2005 LTIP:

Stock-Based Compensation

During December 2011, DISH Network paid a dividend in cash of $2.00 per share on their outstanding Class A and Class B common stock to shareholders of record on November 17, 2011. In light of such dividend, during January 2012, the exercise price of 2.6 million DISH Network stock options held by 194 of our employees was reduced by $2.00 per share (“DISH Network’s 2012 Stock Option Adjustment”). During the three months ended March 31, 2012, we incurred $3 million of additional non-cash, stock-based compensation expense in connection with DISH Network’s 2012 Stock Option Adjustment. This amount is included in the table below. Total non-cash, stock-based compensation expense for all of our employees is shown in the following table and was allocated to the same expense categories as the base compensation for such employees:

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Research and development expenses	$	1,061	$	603
Selling, general and administrative expenses	5,857		2,378
Total non-cash, stock-based compensation	$	6,918	$	2,981

As of March 31, 2012, our total unrecognized compensation cost related to our non-performance based unvested stock awards was $42 million and includes compensation expense that we will recognize for DISH Network stock awards held by our employees as a result of the Spin-off. This cost is based on an estimated future forfeiture rate of approximately 1.8% per year and will be recognized over a weighted-average period of approximately three years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Changes in the estimated forfeiture rate can have a significant effect on share-based compensation expense since the effect of adjusting the rate is recognized in the period the forfeiture estimate is changed.

Valuation

The fair value of each stock option for the three months ended March 31, 2012 and 2011 was estimated at the date of the grant using a Black-Scholes option valuation model with the following assumptions:

	For the Three Months
	Ended March 31,
Stock Options	2012			2011
Risk-free interest rate	1.33		%	2.57		%
Volatility factor	40.36		%	34.68		%
Expected term of options in years	6.0			6.0
Weighted-average fair value of options granted	$	11.37		$	14.42

We do not currently intend to pay dividends on our common stock and accordingly, the dividend yield percentage used in the Black-Scholes option valuation model is set at zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from other valuation models. Further, the Black-Scholes option valuation model requires the input of subjective assumptions. Changes in the subjective input assumptions can materially affect the fair value estimate.

We will continue to evaluate the assumptions used to derive the estimated fair value of our stock options as new events or changes in circumstances become known.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-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.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
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+ Details

Acquisitions

3 Months Ended

Mar. 31, 2012

Acquisitions

Acquisitions

11. Acquisition

Hughes Communications

On June 8, 2011, we completed the Hughes Acquisition, pursuant to an agreement and plan of merger (the “Hughes Agreement”) by and between us, certain of our 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.

	Preliminary
	Purchase Price
	Allocation
	(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

The following unaudited pro forma condensed consolidated operating results for the three months ended March 31, 2011 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 this transaction 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.

	For the Three
	Months Ended
Supplemental pro forma financial information (Unaudited)	March 31, 2011
	(In thousands, except per share amounts)
Total revenue	$	743,109
Net income (loss) attributable to EchoStar	$	(6,246	)
Basic net income (loss) per share attributable to EchoStar	$	(0.07	)
Diluted net income (loss) per share attributable to EchoStar	$	(0.07	)

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 13 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-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.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies

Commitments and Contingencies

12. 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 must comply with certain post-auction regulatory and payment requirements before we will receive the orbital slot. Once we receive the orbital slot, which is expected to occur during 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, we 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, we have assumed certain liabilities that relate to 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, we will only be liable for our acts or omissions following the Spin-off and DISH Network will indemnify us 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.

Cyberfone Systems, LLC (f/k/a LVL Patent Group, LLC)

On September 15, 2011, LVL Patent Group, LLC filed a complaint against us and our wholly-owned subsidiary, EchoStar Technologies L.L.C., as well as DISH Network L.L.C. a wholly-owned subsidiary of DISH Network, and DirecTV, Inc. in the United States District Court for the District of Delaware alleging infringement of United States Patent No. 6,044,382, which is entitled “Data Transaction Assembly Server.” On November 18, 2011, Cyberfone Systems, LLC (f/k/a LVL Patent Group, LLC) filed an amended complaint making the same claim. DirecTV was dismissed from the case on January 4, 2012.

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

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.

Joao Control & Monitoring Systems

During December 2010, Joao Control & Monitoring Systems (“Joao”) filed suit against Sling Media Inc., our indirect wholly owned subsidiary, ACTI Corporation, ADT Security, Alarmclub.Com, American Honda Motor Company, BMW, Byremote, Drivecam, Honeywell, Iveda Corporation, Magtec Products, Mercedes-Benz, On-Net Surveillance, OnStar, SafeFreight Technology, Skyway Security, SmartVue Corporation, Toyota Motor Sales, Tyco, UTC Fire and Xanboo in the United States District Court for the Central District of California alleging infringement of United States Patent Nos. 6,549,130 and 6,587,046. The abstracts of the patents state that the claims are directed to the remote control of devices and appliances. Joao is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. During 2011, the case was transferred to the Northern District of California.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe any of the asserted patents, we may be subject to substantial damages, which may include 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.

Nazomi Communications, Inc.

On February 10, 2010, Nazomi Communications, Inc. (“Nazomi”) filed suit against Sling Media, Inc., our indirect wholly owned subsidiary, Nokia Corp, Nokia Inc., Microsoft Corp., Amazon.com Inc., Western Digital Corp., Western Digital Technologies, Inc., Garmin Ltd., Garmin Corp., Garmin International, Inc., Garmin USA, Inc., Vizio Inc. and iOmega Corp in the United States District Court for the Central District of California alleging infringement of United States Patent No. 7,080,362 (the “‘362 patent”) and United States Patent No. 7,225,436 (the “‘436 patent”). The ‘362 patent and the ‘436 patent relate to Java hardware acceleration. The suit alleges that the Slingbox-Pro-HD product infringes the ‘362 patent and the ‘436 patent because the Slingbox-PRO HD allegedly incorporates an ARM926EJ-S processor core capable of Java hardware acceleration. During 2010, the case was transferred to the Northern District of California.

NorthPoint Technology, Ltd.

On July 2, 2009, NorthPoint Technology, Ltd. (“NorthPoint”) filed suit against us, DISH Network, and DirecTV in the United States District Court for the Western District of Texas alleging infringement of United States Patent No. 6,208,636 (the “‘636 patent”). The ‘636 patent relates to the use of multiple low-noise block converter feedhorns, or LNBFs, which are antennas used for satellite reception. On April 21, 2011, the United States Patent and Trademark Office issued an order granting reexamination of the ‘636 patent. On June 21, 2011, the District Court entered summary judgment in our favor, finding that all asserted claims of the ‘636 patent are invalid. NorthPoint has appealed.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We are being indemnified by DISH Network for any potential liability or damages resulting from this suit relating to the period prior to the effective date of the Spin-off. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Personalized Media Communications, Inc.

During 2008, Personalized Media Communications, Inc. (“PMC”) filed suit against us, DISH Network and Motorola Inc. in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent Nos. 4,694,490, 5,109,414, 4,965,825, 5,233,654, 5,335,277, and 5,887,243, which relate to satellite signal processing. PMC is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Subsequently, Motorola Inc. settled with PMC, leaving DISH Network and us as defendants. Trial is currently set for August 2012.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe any of the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We are being indemnified by DISH Network for any potential liability or damages resulting from this suit relating to the period prior to the effective date of the Spin-off. 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.

Technology Development and Licensing L.L.C.

On January 22, 2009, Technology Development and Licensing L.L.C. (“TDL”) filed suit against us and DISH Network in the United States District Court for the Northern District of Illinois alleging infringement of United States Patent No. Re. 35,952, which relates to certain favorite channel features. TDL is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. In July 2009, the Court granted our motion to stay the case pending two reexamination petitions before the Patent and Trademark Office.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We are being indemnified by DISH Network for any potential liability or damages resulting from this suit relating to the period prior to the effective date of the Spin-off. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Vigilos, LLC

On February 23, 2011, Vigilos, LLC filed suit against us, two of our subsidiaries, Sling Media, Inc. and EchoStar Technologies L.L.C., and Monsoon Multimedia, Inc. in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent No. 6,839,731, which is entitled “System and Method for Providing Data Communication in a Device Network.” Subsequently in 2011, Vigilos added DISH Network L.L.C., a wholly owned subsidiary of DISH Network, as a defendant in its First Amended Complaint and the case was transferred to the Northern District of California. Later in 2011, Vigilos filed a Second Amended Complaint that added claims for infringement of a second patent, United States Patent No. 7,370,074, which is entitled “System and Method for Implementing Open-Protocol Remote Device Control.”

Other

In addition to the above actions, we are subject to various other legal proceedings and claims which arise in the ordinary course of business. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial position, results of operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-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.

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

13. 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 available to the chief operating decision-maker. Under this definition, we operate three 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 results of operations of Hughes Communications are included in our results effective June 9, 2011. See Note 11 for further discussion of the Hughes Acquisition.

The “All Other and Eliminations” category consists of revenue and net income (loss) attributable to EchoStar 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, 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 EchoStar” in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):

				EchoStar						All
	EchoStar			Satellite						Other and			Consolidated
For the Three Months Ended March 31, 2012	Technologies			Services			Hughes			Eliminations			Total
	(In thousands)
Total revenue	$	408,579		$	73,583		$	274,218		$	8,400		$	764,780
EBITDA (1)	24,487			52,200			69,202			130,226			276,115
Interest income	—			22			73			2,784			2,879
Interest expense, net of amounts capitalized	(20		)	(13,794		)	(88		)	(24,719		)	(38,621		)
Income tax benefit (provision), net	(277		)	(2,652		)	(5,218		)	8,452			305
Depreciation and amortization	(19,503		)	(31,439		)	(55,588		)	(7,560		)	(114,090		)
Net income (loss) attributable to EchoStar	$	4,687		$	4,337		$	8,381		$	109,183		$	126,588

For the Three Months Ended March 31, 2011
Total revenue	$	405,383		$	68,771		$	—	$	5,672		$	479,826
EBITDA (1)	24,263			44,246			—		10,318			78,827
Interest income	—			—			—		2,677			2,677
Interest expense, net	(2		)	(8,523		)	—		8,987			462
Income tax benefit (provision), net	1,334			(4,640		)	—		(4,482		)	(7,788		)
Depreciation and amortization	(26,651		)	(23,625		)	—		(6,738		)	(57,014		)
Net income (loss) attributable to EchoStar	$	(1,056	)	$	7,458		$	—	$	10,762		$	17,164

(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
	March 31,		December 31,
Long-lived assets, including FCC authorizations:	2012		2011
	(In thousands)
North America	$	3,914,949	$	3,888,286
All other	34,389		34,540
Total	$	3,949,338	$	3,922,826

	For the Three Months
	Ended March 31,
Revenue:	2012		2011
	(In thousands)
North America	$	688,584	$	472,309
All other	76,196		7,517
Total	$	764,780	$	479,826

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

	For the Three Months
	Ended March 31,
	2012			2011
	(In thousands)
Total revenue
DISH Network:
EchoStar Technologies Segment	$	300,198		$	336,032
EchoStar Satellite Services Segment	53,633			53,941
Hughes Segment	531			—
All Other and Eliminations	9,661			3,360
Total DISH Network	$	364,023		$	393,333
Bell TV (EchoStar Technologies Segment)	66,178			41,402
All other	334,579			45,091
Total revenue	$	764,780		$	479,826

Percentage of total revenue
DISH Network	47.6		%	82.0		%
Bell TV	8.7		%	8.6		%
All other	43.7		%	9.4		%

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-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.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions

Related Party Transactions

14. Related Party Transactions

DISH Network

Following the Spin-off, we and DISH Network have operated as separate public companies and DISH Network has no ownership interest in us. 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.

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

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

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

“Equipment revenue — DISH Network”

Receiver Agreement. In connection with the Spin-off, we and DISH Network entered into a receiver agreement pursuant to which DISH Network had the right, but not the obligation, to purchase digital set-top boxes and related accessories, and other equipment from us for a period ending on January 1, 2012 (the “Prior Receiver Agreement”). The Prior Receiver Agreement allowed DISH Network to purchase digital set-top boxes, related accessories and other equipment from us at our cost plus a fixed percentage margin, which varied depending on the nature of the equipment purchased. Additionally, we provided DISH Network with standard manufacturer warranties for the goods sold under the Prior Receiver Agreement. DISH Network was able to terminate the Prior Receiver Agreement for any reason upon at least 60 days notice to us. We were able to terminate the Prior Receiver Agreement if certain entities were to acquire DISH Network. The Prior Receiver Agreement also included an indemnification provision, whereby the parties indemnified each other for certain intellectual property matters.

Effective January 1, 2012, we and DISH Network entered into a new agreement (the “2012 Receiver Agreement”) pursuant to which DISH Network continues to have the right, but not the obligation, to purchase digital set-top boxes, related accessories, and other equipment from us for the period from January 1, 2012 to December 31, 2014. DISH Network has an option, but not the obligation, to extend the 2012 Receiver Agreement for one additional year upon 180 days notice prior to the end of the term. The material terms of the 2012 Receiver Agreement are substantially the same as the material terms of the Prior Receiver Agreement, except that the 2012 Receiver Agreement allows DISH Network to purchase digital set-top boxes, related accessories and other equipment from us either: (i) at a cost (decreasing as we reduce costs and increasing as costs increase) plus a dollar mark-up which will depend upon the cost of the product subject to a collar on our mark-up; or (ii) at cost plus a fixed margin, which will depend on the nature of the equipment purchased. Under the 2012 Receiver Agreement, our margins will be increased if we are able to reduce the costs of our digital set-top boxes and our margins will be reduced if these costs increase. There can be no assurance that, over the long term, aggregate pricing under the 2012 Receiver Agreement will be substantially the same as it was under the Prior Receiver Agreement.

“Services and other revenue — DISH Network”

Broadcast Agreement. In connection with the Spin-off, we and DISH Network entered into a broadcast agreement pursuant to which we provided certain broadcast services to DISH Network, including teleport services such as transmission and downlinking, channel origination services, and channel management services for a period ending on January 1, 2012 (the “Prior Broadcast Agreement”). DISH Network had the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days notice to us. If DISH Network terminated teleport services for a reason other than our breach, DISH Network was obligated to pay us the aggregate amount of the remainder of the expected cost of providing the teleport services. The fees for the services provided under the Prior Broadcast Agreement were calculated at cost plus a fixed margin, which varied depending on the nature of the products and services provided.

Effective January 1, 2012, we and DISH Network entered into a new broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which we will continue to provide broadcast services to DISH Network, for the period from January 1, 2012 to December 31, 2016. The material terms of the 2012 Broadcast Agreement are substantially the same as the material terms of the Prior Broadcast Agreement, except that: (i) the fees for services provided under the 2012 Broadcast Agreement are calculated at either: (a) our cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) our cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided; and (ii) if DISH Network terminates the teleport services provided under the 2012 Broadcast Agreement for a reason other than our breach, DISH Network is generally obligated to reimburse us for any direct costs we incur related to any such termination that we cannot reasonably mitigate. There can be no assurance that, over the long term, aggregate pricing under the 2012 Broadcast Agreement will be substantially the same as it was under the Prior Broadcast Agreement.

Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and DISH Network entered into a broadcast agreement pursuant to which we provide certain broadcast services to DISH Network in connection with its carriage of certain sports related programming. The term of this agreement is for ten years. If DISH Network terminates this agreement for a reason other than our breach, DISH Network is generally obligated to reimburse us for any direct costs we incur related to any such termination that we cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services.

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 services 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.

Real Estate Lease Agreements. We have entered into lease agreements pursuant to which DISH Network leases certain real estate from us. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and DISH Network is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each of the leases is set forth below:

Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party upon six months prior notice.

Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016.

Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016 with a renewal option for one additional year.

EchoStar Data Networks Sublease Agreement. The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia is for a period ending on October 31, 2016.

Gilbert Lease Agreement. The lease for certain space at 801 N. DISH Dr. in Gilbert, Arizona is a month to month lease and can be terminated by either party upon 30 days prior notice.

Cheyenne Lease Agreement. Effective January 1, 2012, we and DISH Network entered into a lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming for a period ending on December 31, 2031.

Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which DISH Network has the right, but not the obligation, to receive product support (including certain engineering and technical support services) for all set-top boxes and related components that our subsidiaries have previously sold and in the future may sell to DISH Network. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such receivers and related components, unless terminated earlier. DISH Network may terminate the product support agreement for any reason upon at least 60 days notice. In the event of an early termination of this agreement, DISH Network shall be entitled to a refund of any unearned fees paid to us for the services.

DISHOnline.com Services Agreement. Effective January 1, 2010, DISH Network entered into a two-year agreement with us pursuant to which DISH Network will receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. DISH Network has the option to renew this agreement for three successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to us. In November 2011, DISH Network exercised its right to renew this agreement for a one-year period ending on December 31, 2012.

DISH Remote Access Services Agreement. Effective February 23, 2010, DISH Network entered into an agreement with us pursuant to which DISH Network will receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement has a term of five years with automatic renewal for successive one year terms and may be terminated for any reason upon at least 120 days notice to us.

SlingService Services Agreement. Effective February 23, 2010, DISH Network entered into an agreement with us pursuant to which DISH Network will receive certain place-shifting services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement has a term of five years with automatic renewal for successive one year terms and may be terminated for any reason upon at least 120 days notice to us.

Move Networks Services Agreement. In the fourth quarter 2011, we granted DISH Network the right to use Move Network’s software and video publishing systems, which facilitate the streaming, downloading and distribution of audio and video content to set-top boxes via the Internet. The fees for the services provided under this agreement are based upon a fixed fee which varies based upon the number of set-top boxes in a given month that access Move Network’s software. This agreement has a term of five years with automatic renewal for successive one year terms and may be terminated by DISH Network for any reason upon at least 180 days notice to us.

Blockbuster. On April 26, 2011, DISH Network acquired substantially all of the assets of Blockbuster, Inc. (the “Blockbuster Acquisition”). On June 8, 2011, we completed the Hughes Acquisition. 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.

Additionally, on August 5, 2011, we entered into a letter agreement with DISH Network pursuant to which certain assets used to support Blockbuster’s website were transferred to us and we agreed to provide certain technical and infrastructure support for the Blockbuster website. The fees for the services provided under the letter agreement are calculated at cost plus a fixed margin, which varies depending upon the nature of the services provided. The letter agreement provides that it shall continue in effect until the completion of a definitive agreement between DISH Network and us setting forth the terms of our support of the Blockbuster website.

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”). On June 8, 2011, we completed the Hughes Acquisition. 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. We have 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. Specifically, Paul W. Orban remains employed by DISH Network, but also served as our Senior Vice President and Controller through April 2012. In addition, R. Stanton Dodge remains employed by DISH Network, but also served as our Executive Vice President, General Counsel and Secretary through November 2011. We make 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 under the Management Services Agreement. We also reimburse DISH Network for direct out-of-pocket costs incurred by DISH Network for management services provided to us. We and DISH Network evaluate all charges for reasonableness at least annually and make any adjustments to these charges as we and DISH Network mutually agree upon.

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.

Real Estate Lease Agreement. During 2008, we entered into a sublease for space at 185 Varick Street, New York, New York from DISH Network for a period of approximately seven years. The rent on a per square foot basis for this sublease was comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the sublease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises.

Professional Services Agreement. Prior to 2010, in connection with the Spin-off, we 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, we and DISH Network agreed that we 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, we 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 us (previously provided under the Services Agreement). 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.

Remanufactured Receiver Agreement. In connection with the Spin-off, we entered into a remanufactured receiver agreement with DISH Network pursuant to which we have the right, but not the obligation, to purchase remanufactured receivers and related components from DISH Network at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2011, we and DISH Network extended this agreement until December 31, 2012. We may terminate the remanufactured receiver agreement for any reason upon at least 60 days notice to DISH Network. DISH Network may also terminate this agreement if certain entities acquire it. During the each of the three months ended March 31, 2012 and 2011, we purchased remanufactured receivers and related components from DISH Network for an aggregate amount of less than $1 million.

Tax Sharing Agreement. In connection with the Spin-off, we entered into a tax sharing agreement with DISH Network which governs our 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 us for such taxes. However, DISH Network is not liable for and will not indemnify us 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 Code because of: (i) a direct or indirect acquisition of any of our stock, stock options or assets; (ii) any action that we take or fail to take; or (iii) any action that we take 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, we 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.

TiVo. On April 29, 2011, we and DISH Network entered into a settlement agreement with TiVo, Inc. (“TiVo”). The settlement resolved all pending litigation between us and DISH Network, on the one hand, and TiVo, on the other hand, including litigation relating to alleged patent infringement involving certain DISH digital video recorders, or DVRs, which litigation is described in our Annual Report on Form 10-K for the year ended December 31, 2011 under the caption “Item 3. Legal Proceedings — TiVo Inc.”

Under the settlement agreement, all pending litigation has been dismissed with prejudice and all injunctions that permanently restrain, enjoin or compel any action by us or DISH Network have been dissolved. We and DISH Network are jointly responsible for making payments to TiVo in the aggregate amount of $500 million, including an initial payment of $300 million and the remaining $200 million in six equal annual installments between 2012 and 2017. Pursuant to the terms and conditions of the agreements entered into in connection with the Spin-off, DISH Network made the initial payment to TiVo in May 2011, except for the contribution from us totaling approximately $10 million, representing an allocation of liability relating to our sales of DVR-enabled receivers to an international customer. Future payments will be allocated between us and DISH Network based on historical sales of certain licensed products, with EchoStar being responsible for 5% of each annual payment.

We and DISH Network, on the one hand, and TiVo, on the other hand, have also agreed on mutual releases of certain related claims and agreed not to challenge each other’s DVR technology-related patents that are licensed under the settlement agreement.

Because both we and DISH Network were defendants in the TiVo lawsuit, we and DISH Network were jointly and severally liable to TiVo for any final damages and sanctions that could have been awarded by the District Court. As previously disclosed, DISH Network determined that it was obligated under the agreements entered into in connection with the Spin-off to indemnify us for substantially all liability arising from this lawsuit. We contributed an amount equal to our $5 million intellectual property liability limit under the receiver agreement. We and DISH Network further agreed that EchoStar’s $5 million contribution would not exhaust our liability to DISH Network for other intellectual property claims that may arise under the receiver agreement. We and DISH Network also agreed that we would each be entitled to joint ownership of, and a cross-license to use, any intellectual property developed in connection with any potential new alternative technology. Any amounts that we are responsible for under the settlement agreement with TiVo are in addition to the $5 million contribution previously made by us.

Patent Cross-License Agreements. During December 2011, we and DISH Network entered into separate patent cross-license agreements with the same third party whereby: (i) we and such third party licensed our respective patents to each other subject to certain conditions; and (ii) DISH Network and such third party licensed their respective patents to each other subject to certain conditions (each, a “Cross-License Agreement”). Each Cross-License Agreement covers patents acquired by the respective party prior to January 1, 2017 and aggregate payments under both Cross-License Agreements total less than $10 million. Each Cross-License Agreement also contains an option to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. If both options are exercised, the aggregate additional payments to such third party would total less than $3 million. However, we and DISH Network may elect to extend our respective Cross-License Agreement independently of each other. Since the aggregate payments under both Cross-License Agreements were based on the combined annual revenues of us and DISH Network, we and DISH Network agreed to allocate our respective payments to such third party based on our respective percentage of combined total revenue.

Sprint Settlement Agreement. On November 3, 2011, DISH Network and Sprint Nextel Corporation (“Sprint”) entered into an agreement with Sprint (the “Sprint Settlement Agreement”) pursuant to which all disputed issues relating to DISH Network’s acquisition of DBSD North America, Inc. (“DBSD North America”) and TerreStar were resolved between DISH Network and Sprint, including, but not limited to, issues relating to costs allegedly incurred by Sprint to relocate users from the spectrum then licensed to DBSD North America and TerreStar (the “Sprint Clearing Costs”). We were a party to the Sprint Settlement Agreement solely for the purposes of executing a mutual release between us and Sprint relating to the Sprint Clearing Costs. We were a holder of certain TerreStar debt instruments. In March 2012, our remaining debt instruments were exchanged for a right to receive a distribution in accordance with the terms of the liquidating trust established pursuant to TerreStar’s chapter 11 plan of liquidation. Pursuant to the terms of the Sprint Settlement Agreement, DISH Network made a net payment of approximately $114 million to Sprint.

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.

Other Agreements

In November 2009, Mr. Roger Lynch became employed by both us and DISH Network as Executive Vice President. Mr. Lynch is responsible for the development and implementation of advanced technologies that are of potential utility and importance to both us and DISH Network. Mr. Lynch’s compensation consists of cash and equity compensation and is borne by both DISH Network and us.

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 our 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 results of operations in our operating results.

NagraStar L.L.C.

We own 50% of NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security technology used in our set-top boxes. Although we do not consolidate NagraStar, we have the ability to significantly influence its operating policies; therefore, we account for our investment in NagraStar under the equity method of accounting.

The table below summarizes our transactions with NagraStar.

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Purchases from NagraStar	$	2,942	$	1,795

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Amounts payable to NagraStar	$	3,899	$	2,965
Commitments to purchase from NagraStar	$	2,730	$	2,731

Dish Mexico

During 2008, we 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 certain broadcast services and satellite capacity and sell hardware such as digital set-top boxes and related equipment to Dish Mexico.

The following table summarizes our transactions with Dish Mexico.

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Sales not related to the original contribution commitment associated with our investment:
Digital set-top boxes and related accessories	$	14,296	$	9,347
Sales of satellite services	$	2,130	$	2,130
Uplink services	$	2,352	$	1,705
Engineering services	$	562	$	—

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Amounts receivable from Dish Mexico	$	7,150	$	8,594

Joint Venture in Taiwan

During December 2009, we entered into a joint venture to provide a DTH satellite service in Taiwan and certain other targeted regions in Asia. We own 50% and have joint control of the joint venture. Pursuant to our joint venture arrangements, we sell hardware such as digital set-top boxes and provide certain technical support services to the joint venture. We have provided $18 million of cash to the joint venture, and an $18 million line of credit that the joint venture may only use to purchase set-top boxes from us. This investment is subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans and current financial statements, if available, for factors that may indicate an impairment of our investment. During 2010, we recorded a $14 million charge to fully impair this investment. In December 2011, we entered into an agreement to sell all of our equity in the joint venture, other than an approximately 5% interest, to a third party for nominal consideration (the “JV Sale Transaction”). Upon the closing of the JV Sale Transaction, which is subject to receipt of customary regulatory approvals, our line of credit will be terminated. We expect to close the JV Sale Transaction during the first half of 2012. As of March 31, 2012, the remaining amount available under the line of credit was $10 million and if advanced would be subject to our evaluation for other-than-temporary impairment.

- 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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+ Details

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2012

Summary of Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

Use of estimates

Use of Estimates

Fair Value Measurements

Fair Value Measurements

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

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 46
-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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+ Details

Basic and Diluted Net Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2012

Basic and Diluted Net Income (Loss) Per Share

Tabular disclosure of the effect of income (loss) on the entity's basic and diluted earnings per share

For the Three Months
	Ended March 31,
	2012		2011
	(In thousands except per share amounts)
Net income (loss) attributable to EchoStar	$	126,588	$	17,164

Weighted-average common shares outstanding - Class A and B common stock:
Basic	86,684		85,466
Dilutive impact of stock awards outstanding	642		6,865
Diluted	87,326		92,331

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar	$	1.46	$	0.20
Diluted net income (loss) per share attributable to EchoStar	$	1.45	$	0.19

Schedule of antidilutive securities not included in the diluted EPS calculation

	As of March 31,
	2012	2011
	(In thousands)
Performance-based options	659	689
Restricted Performance Units	74	92
Total	733	781

Other Comprehensive Income Related Tax Effects (Tables)

3 Months Ended

Mar. 31, 2012

Other Comprehensive Income Related Tax Effects

Schedule of tax effect allocated to component of other comprehensive income

	For the Three Months
	Ended March 31,
	2012								2011
	Before			Tax		Net			Before			Tax		Net
	Tax			(Expense)		of Tax			Tax			(Expense)		of Tax
	Amount			Benefit		Amount			Amount			Benefit		Amount
	(In thousands)
Foreign currency translation adjustments	$	5,092		$	—	$	5,092		$	(192	)	$	—	$	(192	)
Unrealized holding gains (losses) on available-for-sale securities	43,429			—		43,429			6,771			—		6,771
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(127,995		)	—		(127,995		)	(665		)	—		(665		)
Other comprehensive income (loss)	$	(79,474	)	$	—	$	(79,474	)	$	5,914		$	—	$	5,914

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables)

3 Months Ended

Mar. 31, 2012

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Marketable investment securities, restricted cash, and other investment securities

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Marketable investment securities - current:
VRDNs	$	214,845	$	218,665
Strategic	120,170		216,090
Other	718,635		647,652
Total marketable investment securities - current	1,053,650		1,082,407
Restricted marketable investment securities (1)	3,181		3,939
Total	1,056,831		1,086,346

Restricted cash and cash equivalents (1)	20,806		20,347

Marketable and other investment securities - noncurrent:
Cost method	26,193		26,193
Equity method	121,122		114,246
Total marketable and other investment securities - noncurrent	147,315		140,439
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	1,224,952	$	1,247,132

Schedule of unrealized gain (loss) on marketable investment securities

	As of March 31, 2012										As of December 31, 2011
	Marketable										Marketable
	Investment		Unrealized								Investment		Unrealized
	Securities		Gains		Losses			Net			Securities		Gains		Losses			Net
	(In thousands)
Debt securities:
VRDNs	$	214,845	$	—	$	—		$	—		$	218,665	$	—	$	—		$	—
Other (including restricted)	721,816		635		(1,017		)	(382		)	651,591		253		(2,715		)	(2,462		)
Equity securities:
Other	120,170		95,568		—			95,568			216,090		182,214		—			182,214
Total marketable investment securities	$	1,056,831	$	96,203	$	(1,017	)	$	95,186		$	1,086,346	$	182,467	$	(2,715	)	$	179,752

Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value

	As of
	March 31, 2012					December 31, 2011
Debt Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
Less than 12 months	$	428,083	$	(1,017	)	$	507,925	$	(2,709	)
12 months or more	—		—			3,931		(6		)
Total	$	428,083	$	(1,017	)	$	511,856	$	(2,715	)

Schedule of fair value measurements

	As of
	March 31, 2012								December 31, 2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)

Cash equivalents (including restricted)	$	534,686	$	15,735	$	518,951	$	—	$	543,243	$	16,197	$	527,046	$	—

Debt securities:
VRDNs	$	214,845	$	—	$	214,845	$	—	$	218,665	$	—	$	218,665	$	—
Other (including restricted)	721,816		—		721,816		—		651,591		—		651,591		—

Equity securities - strategic	120,170		120,170		—		—		216,090		216,090		—		—

Total assets at fair value	$	1,056,831	$	120,170	$	936,661	$	—	$	1,086,346	$	216,090	$	870,256	$	—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Inventory (Tables)

3 Months Ended

Mar. 31, 2012

Inventory

Schedule of inventory

	As of
		March 31,		December 31,
		2012		2011
		(In thousands)
Finished goods		$	70,556	$	49,038
Raw materials		17,482		11,212
Work-in-process		9,583		8,457
Total inventory		$	97,621	$	68,707

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2012

Property and Equipment

Schedule of depreciation and amortization expense

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Satellites	$	37,059	$	23,125
Furniture, fixtures, equipment and other	50,573		25,377
Amortization of intangible assets and other	23,263		6,869
Buildings and improvements	3,195		1,643
Total depreciation and amortization	$	114,090	$	57,014

Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2012

Intangible Assets and Goodwill

Identifiable intangible assets subject to amortization

	As of
	March 31, 2012					December 31, 2011
	Intangible		Accumulated			Intangible		Accumulated
	Assets		Amortization			Assets		Amortization
	(In thousands)
Customer relationships	$	295,327	$	(86,995	)	$	295,327	$	(77,560	)
Contract-based	255,366		(154,137		)	255,366		(145,406		)
Technology-based (1)	153,185		(53,656		)	153,185		(49,307		)
Trademark portfolio	32,191		(1,861		)	32,191		(1,364		)
Favorable leases	4,707		(981		)	4,707		(687		)
Total	$	740,776	$	(297,630	)	$	740,776	$	(274,324	)

Estimated future amortization of identifiable intangible assets

	Amount
	(In thousands)
For the Years Ended December 31,
2012 (remaining nine months)	$	67,726
2013	69,495
2014	78,082
2015	63,360
2016	42,263
Thereafter (1)	122,220
Total	$	443,146

Schedule of Goodwill

	Goodwill
	(In thousands)
Balance as of December 31, 2011	$	533,018
Adjustments to the Hughes Acquisition (non-deductible)	(6,338		)
Balance as of March 31, 2012	$	526,680

- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References + Details

Debt (Tables)

3 Months Ended

Mar. 31, 2012

Debt

Schedule of carrying and fair values of entity's 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	$	1,155,000	$	1,100,000	$	1,138,500
7 5/8% Senior Notes due 2021	900,000		969,750		900,000		936,000
Mortgages and other notes payable	6,567		6,567		6,644		6,644
Subtotal	2,006,567		$	2,131,317	2,006,644		$	2,081,144
Capital lease obligations (1)	539,117		NA		527,618		NA
Total debt and capital lease obligations	$	2,545,684			$	2,534,262

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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 11: 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.(e),(f))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

+ Details

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation

Schedule of stock awards outstanding

	As of March 31, 2012
	EchoStar Awards		DISH Network Awards
Stock Awards Outstanding	Stock Options	Restricted Stock Units	Stock Options	Restricted Stock Units
Held by EchoStar employees	7,916,296	89,940	2,580,701	94,999
Held by DISH Network employees	791,554	53,620	N/A	N/A
Total	8,707,850	143,560	2,580,701	94,999

Schedule of stock option activity

For the Three Months
	Ended March 31, 2012
	Options		Weighted- Average Exercise Price
Total options outstanding, beginning of period	8,778,413		$	27.22
Granted	15,000		$	28.14
Exercised	(24,803	)	$	17.80
Forfeited and cancelled	(60,760	)	$	29.99
Total options outstanding, end of period	8,707,850		$	27.23
Performance-based options outstanding, end of period (1)	658,700		$	25.30
Exercisable at end of period	3,742,230		$	26.03

(1) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP below.

Schedule of realized tax benefits from stock awards exercised

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Tax benefit from stock awards exercised	$	1,236	$	2,170

Schedule of aggregate intrinsic value of stock options outstanding and exercisable

	As of March 31, 2012
	Options Outstanding		Options Exercisable
	(In thousands)
Aggregate intrinsic value	$	33,740	$	13,972

Schedule of restricted stock unit activity

	For the Three Months
	Ended March 31, 2012
	Restricted Stock Units		Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period	144,226		$	29.22
Granted	—		$	—
Vested	—		$	—
Forfeited and cancelled	(666	)	$	25.46
Total restricted stock units outstanding, end of period	143,560		$	29.24
Restricted Performance Units outstanding, end of period (1)	73,610		$	26.62

(1) These Restricted Performance Units are included in the caption “Total restricted stock units outstanding, end of period.” See discussion of the 2005 LTIP below.

Schedule of unrecognized non-cash, stock-based compensation expense under the 2005 LTIP

	2005 LTIP
			Vested
	Total		Portion (1)
	(In thousands)
DISH Network awards held by EchoStar employees	$	16,292	$	16,140
EchoStar awards held by EchoStar employees	3,008		2,977
Total	$	19,300	$	19,117

(1) Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon achievement of the performance condition.

Schedule of awards outstanding under 2005 LTIP

Schedule of allocated non-cash, stock-based compensation expense for all employees

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Research and development expenses	$	1,061	$	603
Selling, general and administrative expenses	5,857		2,378
Total non-cash, stock-based compensation	$	6,918	$	2,981

Schedule of assumptions of Black-Scholes option valuation model

	For the Three Months
	Ended March 31,
Stock Options	2012			2011
Risk-free interest rate	1.33		%	2.57		%
Volatility factor	40.36		%	34.68		%
Expected term of options in years	6.0			6.0
Weighted-average fair value of options granted	$	11.37		$	14.42

Acquisitions (Tables) - Hughes Acquisition

3 Months Ended

Mar. 31, 2012

Acquisition

Preliminary allocation of the purchase price

	Preliminary
	Purchase Price
	Allocation
	(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

Supplemental pro forma financial information (Unaudited)

	For the Three
	Months Ended
Supplemental pro forma financial information (Unaudited)	March 31, 2011
	(In thousands, except per share amounts)
Total revenue	$	743,109
Net income (loss) attributable to EchoStar	$	(6,246	)
Basic net income (loss) per share attributable to EchoStar	$	(0.07	)
Diluted net income (loss) per share attributable to EchoStar	$	(0.07	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2012

Segment Reporting

Operating segment data and reconciliation of earnings before interest, taxes, depreciation and amortization ("EBITDA") to reported net income

				EchoStar						All
	EchoStar			Satellite						Other and			Consolidated
For the Three Months Ended March 31, 2012	Technologies			Services			Hughes			Eliminations			Total
	(In thousands)
Total revenue	$	408,579		$	73,583		$	274,218		$	8,400		$	764,780
EBITDA (1)	24,487			52,200			69,202			130,226			276,115
Interest income	—			22			73			2,784			2,879
Interest expense, net of amounts capitalized	(20		)	(13,794		)	(88		)	(24,719		)	(38,621		)
Income tax benefit (provision), net	(277		)	(2,652		)	(5,218		)	8,452			305
Depreciation and amortization	(19,503		)	(31,439		)	(55,588		)	(7,560		)	(114,090		)
Net income (loss) attributable to EchoStar	$	4,687		$	4,337		$	8,381		$	109,183		$	126,588

For the Three Months Ended March 31, 2011
Total revenue	$	405,383		$	68,771		$	—	$	5,672		$	479,826
EBITDA (1)	24,263			44,246			—		10,318			78,827
Interest income	—			—			—		2,677			2,677
Interest expense, net	(2		)	(8,523		)	—		8,987			462
Income tax benefit (provision), net	1,334			(4,640		)	—		(4,482		)	(7,788		)
Depreciation and amortization	(26,651		)	(23,625		)	—		(6,738		)	(57,014		)
Net income (loss) attributable to EchoStar	$	(1,056	)	$	7,458		$	—	$	10,762		$	17,164

Summary of total long-lived assets and revenue attributed to the North American and other foreign locations

	As of
	March 31,		December 31,
Long-lived assets, including FCC authorizations:	2012		2011
	(In thousands)
North America	$	3,914,949	$	3,888,286
All other	34,389		34,540
Total	$	3,949,338	$	3,922,826

	For the Three Months
	Ended March 31,
Revenue:	2012		2011
	(In thousands)
North America	$	688,584	$	472,309
All other	76,196		7,517
Total	$	764,780	$	479,826

Summary of sales to each customer and its percentage of total revenue

	For the Three Months
	Ended March 31,
	2012			2011
	(In thousands)
Total revenue
DISH Network:
EchoStar Technologies Segment	$	300,198		$	336,032
EchoStar Satellite Services Segment	53,633			53,941
Hughes Segment	531			—
All Other and Eliminations	9,661			3,360
Total DISH Network	$	364,023		$	393,333
Bell TV (EchoStar Technologies Segment)	66,178			41,402
All other	334,579			45,091
Total revenue	$	764,780		$	479,826

Percentage of total revenue
DISH Network	47.6		%	82.0		%
Bell TV	8.7		%	8.6		%
All other	43.7		%	9.4		%

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2012

NagraStar

Related party transactions

Schedule of related party transactions

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Purchases from NagraStar	$	2,942	$	1,795

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Amounts payable to NagraStar	$	3,899	$	2,965
Commitments to purchase from NagraStar	$	2,730	$	2,731

Dish Mexico

Related party transactions

Schedule of related party transactions

	For the Three Months
	Ended March 31,
	2012		2011
	(In thousands)
Sales not related to the original contribution commitment associated with our investment:
Digital set-top boxes and related accessories	$	14,296	$	9,347
Sales of satellite services	$	2,130	$	2,130
Uplink services	$	2,352	$	1,705
Engineering services	$	562	$	—

	As of
	March 31,		December 31,
	2012		2011
	(In thousands)
Amounts receivable from Dish Mexico	$	7,150	$	8,594

Organization and Business Activities (Details)	3 Months Ended
Organization and Business Activities (Details)	Mar. 31, 2012 satellite segment
Organization and Business Activities
Number of business units \| segment	3
Principal Business
Number of owned and leased in-orbit satellites	11
EchoStar Satellite Services Business
Principal Business
Number of owned and leased in-orbit satellites	10

Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Basic and Diluted Net Income (Loss) Per Share
Net income (loss) attributable to EchoStar	$ 126,588	$ 17,164
Weighted-average common shares outstanding - Class A and B common stock:
Basic (in shares)	86,684	85,466
Dilutive impact of stock awards outstanding (in shares)	642	6,865
Diluted (in shares)	87,326	92,331
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar (in dollars per share)	$ 1.46	$ 0.20
Diluted net income (loss) per share attributable to EchoStar (in dollars per share)	$ 1.45	$ 0.19
Stock awards \| Class A common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share	4,400	2,300
Performance based options \| Class A common stock
Dilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share	659	689
Restricted stock units \| Class A common stock
Dilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share	74	92
Long-term performance based plans \| Class A common stock
Dilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share	733	781

Other Comprehensive Income Related Tax Effects - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Other comprehensive income, before-tax amount
Foreign currency translation adjustments, before-tax amount	$ 5,092	$ (192)
Unrealized holding gains (losses) on available-for-sale securities, before tax amount	43,429	6,771
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss), before tax amount	(127,995)	(665)
Other comprehensive income (loss), before-tax amount	(79,474)	5,914
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	5,092	(192)
Unrealized holding gains (losses) on available-for-sale securities, net of tax	43,429	6,771
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(127,995)	(665)
Total other comprehensive income (loss), net of tax	$ (79,474)	$ 5,914

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Marketable investment securities, restricted cash and other investment securities
Total marketable investment securities - current	$ 1,053,650	$ 1,082,407
Restricted marketable investment securities	3,181	3,939
Total	1,056,831	1,086,346
Restricted cash and cash equivalents	20,806	20,347
Marketable and other investment securities - noncurrent:
Cost Method	26,193	26,193
Equity Method	121,122	114,246
Total marketable and other investment securities - noncurrent	147,315	140,439
Total marketable investment securities, restricted cash and cash equivalents and other investment securities	1,224,952	1,247,132
VRDNs
Marketable investment securities, restricted cash and other investment securities
Total marketable investment securities - current	214,845	218,665
Strategic
Marketable investment securities, restricted cash and other investment securities
Total marketable investment securities - current	120,170	216,090
Other
Marketable investment securities, restricted cash and other investment securities
Total marketable investment securities - current	$ 718,635	$ 647,652

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details 2) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Components of our available-for-sale investments
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss)	$ 95,000	$ 180,000
Debt security	1,053,650	1,082,407
Total marketable investment securities	1,056,831	1,086,346
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	96,203	182,467
Unrealized Losses	(1,017)	(2,715)
Unrealized Gains Losses, Net	95,186	179,752
Contractual maturities of restricted and non-restricted marketable investment securities
Debt security with contractual maturities of one year or less	831,000
Debt securities with contractual maturities greater than one year	106,000
VRDNs
Components of our available-for-sale investments
Debt security	214,845	218,665
Other (including restricted)
Components of our available-for-sale investments
Debt Security	721,816	651,591
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	635	253
Unrealized Losses	(1,017)	(2,715)
Unrealized Gains Losses, Net	(382)	(2,462)
Equity securities
Components of our available-for-sale investments
Equity security	120,170	216,090
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	95,568	182,214
Unrealized Gains Losses, Net	$ 95,568	$ 182,214

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details 3) - Debt securities - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Fair value of marketable investment securities in a loss position
Less than 12 months	$ 428,083	$ 507,925
12 or more		3,931
Total	428,083	511,856
Unrealized loss on marketable investment securities in a loss position
Less than 12 months	(1,017)	(2,709)
12 or more		(6)
Total	$ (1,017)	$ (2,715)

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details 4) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Fair value of marketable securities
Debt security	$ 1,053,650	$ 1,082,407
VRDNs
Fair value of marketable securities
Debt security	214,845	218,665
Other (including restricted)
Fair value of marketable securities
Debt Security	721,816	651,591
Equity securities
Fair value of marketable securities
Equity security	120,170	216,090
Fair value measurements on recurring basis \| Total
Fair value of marketable securities
Cash equivalents (including restricted)	534,686	543,243
Marketable debt and equity securities	1,056,831	1,086,346
Fair value measurements on recurring basis \| Total \| VRDNs
Fair value of marketable securities
Debt security	214,845	218,665
Fair value measurements on recurring basis \| Total \| Other (including restricted)
Fair value of marketable securities
Debt Security	721,816	651,591
Fair value measurements on recurring basis \| Total \| Equity securities
Fair value of marketable securities
Equity security	120,170	216,090
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Cash equivalents (including restricted)	15,735	16,197
Marketable debt and equity securities	120,170	216,090
Fair value measurements on recurring basis \| Level 1 \| Equity securities
Fair value of marketable securities
Equity security	120,170	216,090
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Cash equivalents (including restricted)	518,951	527,046
Marketable debt and equity securities	936,661	870,256
Fair value measurements on recurring basis \| Level 2 \| VRDNs
Fair value of marketable securities
Debt security	214,845	218,665
Fair value measurements on recurring basis \| Level 2 \| Other (including restricted)
Fair value of marketable securities
Debt Security	$ 721,816	$ 651,591

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details 5) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 29, 2008	Mar. 31, 2012	Mar. 31, 2011
Unrealized and realized gains (losses) on marketable investment securities and other investments
Realized gains on sales of our debt and equity marketable investment securities		$ 127,995	$ 665
Terre Star Network Inc. \| 6 1/2 % Senior Exchangeable Paid-In-Kind Notes Due June 15, 2014
Marketable investment securities:
Aggregate principal amount of investment acquired	$ 50,000
Interest rate (as a percent)	6.50%

- Definition

This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-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.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13, 22
-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.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 7

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.7(c),9(a))
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (c)-(e)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

+ Details

- Definition

The cash outflow to acquire an agreement for an unconditional promise by the maker to pay the entity (holder) a definite sum of money at a future date. Such amount may include accrued interest receivable in accordance with the terms of the note. The note also may contain provisions including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among myriad other features and characteristics.

+ References + Details

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Inventory
Finished goods	$ 70,556	$ 49,038
Raw materials	17,482	11,212
Work-in-process	9,583	8,457
Total inventory	$ 97,621	$ 68,707

Property and Equipment (Details) $ in Thousands	3 Months Ended
Property and Equipment (Details) $ in Thousands	Mar. 31, 2012 USD ($) Y satellite	Mar. 31, 2011 USD ($)
Depreciation and amortization expenses
Depreciation and amortization expense	$ 114,090	$ 57,014
Satellites
Depreciation and amortization expenses
Depreciation and amortization expense	$ 37,059	23,125
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator \| satellite	11
Number of satellites utilized under lease \| satellite	5
Number of satellites utilized under capital lease \| satellite	4
Number of satellites utilized under operating lease \| satellite	1
Furniture, fixtures, equipment and other
Depreciation and amortization expenses
Depreciation and amortization expense	$ 50,573	25,377
Amortization of intangible assets and other
Depreciation and amortization expenses
Depreciation and amortization expense	23,263	6,869
Buildings and improvements
Depreciation and amortization expenses
Depreciation and amortization expense	$ 3,195	$ 1,643
EchoStar VI
Depreciation and amortization expenses
Property plant and equipment useful life, minimum (in years) \| Y	12

Intangible Assets and Goodwill (Details) $ in Thousands	3 Months Ended
Intangible Assets and Goodwill (Details) $ in Thousands	Mar. 31, 2012 USD ($) Y	Mar. 31, 2011 USD ($)	Dec. 31, 2011 USD ($)
Intangible Assets
Intangible Assets	$ 740,776		$ 740,776
Accumulated Amortization	$ (297,630)		(274,324)
Useful life, low end of the range (in years) \| Y	1
Useful life, high end of the range (in years) \| Y	20
Amortization expense	$ 23,000	$ 7,000
Estimated future amortization of identifiable intangible assets
2012 (remaining nine months)	67,726
2013	69,495
2014	78,082
2015	63,360
2016	42,263
Thereafter	122,220
Total	443,146
In-process R&D assets	26,000
Customer relationships
Intangible Assets
Intangible Assets	295,327		295,327
Accumulated Amortization	(86,995)		(77,560)
Contract-based
Intangible Assets
Intangible Assets	255,366		255,366
Accumulated Amortization	(154,137)		(145,406)
Technology-based
Intangible Assets
Intangible Assets	153,185		153,185
Accumulated Amortization	(53,656)		(49,307)
Trademark portfolio
Intangible Assets
Intangible Assets	32,191		32,191
Accumulated Amortization	(1,861)		(1,364)
Favorable leases
Intangible Assets
Intangible Assets	4,707		4,707
Accumulated Amortization	$ (981)		$ (687)

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Goodwill associated with various acquisitions
Acquired during the period	$ 526,680	$ 533,018
Hughes Acquisition
Goodwill associated with various acquisitions
Acquired during the period	$ (6,338)

Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011
Long-Term Debt and Capital Lease Obligations
Carrying Value	$ 2,006,567	$ 2,006,644
Fair Value	2,131,317	2,081,144
Capital lease obligations	539,117	527,618
Total debt and capital lease obligations	2,545,684	2,534,262
Senior Secured Notes \| EH Holding Corporation ("EHHC")
Long-Term Debt and Capital Lease Obligations
Carrying Value	1,100,000	1,100,000
Fair Value	1,155,000	1,138,500
Senior Notes \| EH Holding Corporation ("EHHC")
Long-Term Debt and Capital Lease Obligations
Carrying Value	900,000	900,000
Fair Value	969,750	936,000
Mortgages and other notes payable
Long-Term Debt and Capital Lease Obligations
Carrying Value	6,567	6,644
Fair Value	$ 6,567	$ 6,644

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2012 USD ($) employee $ / shares shares	Mar. 31, 2012 USD ($) Y shares option $ / shares	Mar. 31, 2011 USD ($) Y $ / shares	Dec. 31, 2011 $ / shares shares
Minimum
Stock-Based Compensation
Percentage of stock awards vesting per year		20.00%
Maximum
Stock-Based Compensation
Percentage of stock awards vesting per year		33.00%
Class A common stock
Stock-Based Compensation
Number of common stock available for future grant under stock incentive plans (in shares)		4,800,000
Black-Scholes option valuation model, assumptions
Dividend paid (in dollars per share) \| $ / shares				$ 2.00
Class B common stock
Black-Scholes option valuation model, assumptions
Dividend paid (in dollars per share) \| $ / shares				$ 2.00
EchoStar Awards
Stock option activity
Total options outstanding, end of period (in shares)		8,707,850
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		143,560
EchoStar Awards \| Held by EchoStar employees
Stock option activity
Total options outstanding, end of period (in shares)		7,916,296
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		89,940
EchoStar Awards \| Held by DISH Network employees
Stock option activity
Total options outstanding, end of period (in shares)		791,554
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		53,620
DISH Network Awards
Stock option activity
Total options outstanding, end of period (in shares)		2,580,701
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		94,999
Black-Scholes option valuation model, assumptions
Number of employees holding stock options \| employee	194
Reduction in exercise price (in dollars per share) \| $ / shares	$ 2
DISH Network Awards \| Held by EchoStar employees
Stock option activity
Total options outstanding, end of period (in shares)		2,580,701
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		94,999
Non-Performance Based Stock Awards
Stock-Based Compensation
Unrecognized compensation expense \| $		$ 42,000
Future forfeiture rate (as a percent)		1.80%
Period for recognition of compensation cost (in years) \| Y		3
Restricted stock units
Stock-Based Compensation
Restricted stock unit converted into new restricted stock units		5
Restricted stock unit activity
Total restricted stock units outstanding, beginning of period (in shares)	144,226	144,226
Forfeited and cancelled (in shares)		(666)
Total restricted stock units outstanding, end of period (in shares)		143,560		144,226
Weighted - Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period (in dollars per share) \| $ / shares	$ 29.22	$ 29.22
Granted (in dollars per share) \| $ / shares		00.00
Vested (in dollars per share) \| $ / shares		00.00
Forfeited and cancelled (in dollars per share) \| $ / shares		25.46
Total restricted stock units outstanding, end of period (in dollars per share) \| $ / shares		$ 29.24		$ 29.22
Restricted stock units \| Class A common stock
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		100,000
Restricted Performance Units
Restricted stock unit activity
Total restricted stock units outstanding, end of period (in shares)		73,610
Stock options
Stock-Based Compensation
Stock option converted into new stock options \| option		2
Multiplication factor for conversion of original stock option to adjusted stock option		0.831219
Multiplication factor for conversion of original stock option to new stock option		0.843907
Stock option activity
Total options outstanding, beginning of period (in shares)	8,778,413	8,778,413
Granted (in shares)		15,000
Exercised (in shares)		(24,803)
Forfeited and cancelled (in shares)		(60,760)
Total options outstanding, end of period (in shares)		8,707,850		8,778,413
Exercisable at end of period (in shares)		3,742,230
Weighted-Average Exercise Price
Total options outstanding, beginning of period (in dollars per share) \| $ / shares	$ 27.22	$ 27.22
Granted (in dollars per share) \| $ / shares		28.14
Exercised (in dollars per share) \| $ / shares		17.80
Forfeited and cancelled (in dollars per share) \| $ / shares		29.99
Total options outstanding, end of period (in dollars per share) \| $ / shares		27.23		$ 27.22
Exercisable at end of period, Weighted-Average Exercise Price (in dollars per share) \| $ / shares		$ 26.03
Share-based compensation additional disclosures
Tax benefit from stock awards exercised \| $		$ 1,236	$ 2,170
Aggregate intrinsic value
Aggregate intrinsic value of stock options outstanding \| $		33,740
Aggregate intrinsic value of stock options exercisable \| $		$ 13,972
Black-Scholes option valuation model, assumptions
Risk-free interest rate (as a percent)		1.33%	2.57%
Volatility factor (as a percent)		40.36%	34.68%
Expected term of options (in years) \| Y		6.0	6.0
Weighted-average fair value of options granted (in dollars per share) \| $ / shares		$ 11.37	$ 14.42
Stock options \| Maximum
Stock-Based Compensation
Expiration term (in years)		P10Y
Stock options \| Class A common stock
Stock option activity
Total options outstanding, end of period (in shares)		8,700,000
Stock options \| DISH Network Awards
Stock option activity
Total options outstanding, end of period (in shares)	2,600,000
Black-Scholes option valuation model, assumptions
Additional stock based compensation expense \| $	$ 3,000
Long-term performance based plans
Stock option activity
Total options outstanding, end of period (in shares)		658,700
Weighted-Average Exercise Price
Total options outstanding, end of period (in dollars per share) \| $ / shares		$ 25.30
Weighted - Average Grant Date Fair Value
Total restricted stock units outstanding, end of period (in dollars per share) \| $ / shares		$ 26.62
LTIP 2005
Restricted stock unit activity
Number of stock awards outstanding		732,310
LTIP Terms
Awards vesting period (in years)		7 years
Percentage of awards vesting per annum during first four years		10.00%
Percentage of awards vesting per annum after first four years		20.00%
Share-based expenses
Unrecognized compensation expense relating to long-term performance based incentive awards \| $		$ 19,300
Unrecognized non-cash stock-based compensation expense on vested portion \| $		19,117
LTIP 2005 \| EchoStar Awards \| Held by EchoStar employees
Share-based expenses
Unrecognized compensation expense relating to long-term performance based incentive awards \| $		3,008
Unrecognized non-cash stock-based compensation expense on vested portion \| $		2,977
LTIP 2005 \| DISH Network Awards \| Held by DISH Network employees
Share-based expenses
Unrecognized compensation expense relating to long-term performance based incentive awards \| $		16,292
Unrecognized non-cash stock-based compensation expense on vested portion \| $		$ 16,140

Stock-Based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Stock-Based Compensation
Allocated share-based compensation expense	$ 6,918	$ 2,981
Research and development expenses
Stock-Based Compensation
Allocated share-based compensation expense	1,061	603
Selling, general and administrative expenses
Stock-Based Compensation
Allocated share-based compensation expense	$ 5,857	$ 2,378

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Acquisitions (Details) - Hughes Acquisition - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2011	Jun. 08, 2011
Acquisition
Percentage of issued and outstanding shares acquired		100.00%
Cash to be paid for each issued and outstanding share of common stock and vested stock option of Hughes pursuant to the Hughes Agreement (in dollars per share)		$ 60.70
Purchase Price Allocation
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
Supplemental pro forma financial information (Unaudited)
Total revenue	$ 743,109
Net income (loss) attributable to EchoStar common shareholders	$ (6,246)
Basic net income (loss) per share attributable to EchoStar common shareholders	$ (0.07)
Diluted net income (loss) per share attributable to EchoStar common shareholders	$ (0.07)

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	3 Months Ended
Commitments and Contingencies (Details) $ in Millions	Aug. 30, 2011 USD ($)	Mar. 31, 2012 BRL (R$) Y	Mar. 31, 2012 USD ($)
Satellite Under Construction - EchoStar XVI
Commitment and Contingencies
Remaining contract obligation			$ 68
Satellite Under Construction - EchoStar XVII/Jupiter
Commitment and Contingencies
Remaining contract obligation			$ 120
Brazilian Orbital Slot
Commitment and Contingencies
Bid exchange rate (per USD) \| R$		R$ 1.8221
Brazilian Orbital Slot \| 45 degree west orbital location
Commitment and Contingencies
Value of bid	$ 80
EchoStar XVI
Commitment and Contingencies
Period of in-orbit insurance (in years) \| Y		1
EchoStar XVII/Jupiter
Commitment and Contingencies
Period of in-orbit insurance (in years) \| Y		1

Commitments and Contingencies (Details 2)	Feb. 23, 2011 subsidiary
Vigilos, LLC
Commitment and Contingencies
Number of subsidiaries against which lawsuit was filed	2

Segment Reporting (Details) $ in Thousands	3 Months Ended
Segment Reporting (Details) $ in Thousands	Mar. 31, 2012 USD ($) satellite segment	Mar. 31, 2011 USD ($)
Segment Reporting
Number of business units \| segment	3
Segment Reporting
Number of owned and leased in-orbit satellites \| satellite	11
Total revenue	$ 764,780	$ 479,826
EBITDA	276,115	78,827
Interest income	2,879	2,677
Interest expense, net	(38,621)	462
Income tax (provision) benefit, net	305	(7,788)
Depreciation and amortization	(114,090)	(57,014)
Net income (loss) attributable to EchoStar	126,588	17,164
EchoStar Technologies Business
Segment Reporting
Total revenue	408,579	405,383
EBITDA	24,487	24,263
Interest expense, net	(20)	(2)
Income tax (provision) benefit, net	(277)	1,334
Depreciation and amortization	(19,503)	(26,651)
Net income (loss) attributable to EchoStar	$ 4,687	(1,056)
EchoStar Satellite Services Business
Segment Reporting
Number of owned and leased in-orbit satellites \| satellite	10
Total revenue	$ 73,583	68,771
EBITDA	52,200	44,246
Interest income	22
Interest expense, net	(13,794)	(8,523)
Income tax (provision) benefit, net	(2,652)	(4,640)
Depreciation and amortization	(31,439)	(23,625)
Net income (loss) attributable to EchoStar	4,337	7,458
Hughes Business
Segment Reporting
Total revenue	274,218
EBITDA	69,202
Interest income	73
Interest expense, net	(88)
Income tax (provision) benefit, net	(5,218)
Depreciation and amortization	(55,588)
Net income (loss) attributable to EchoStar	8,381
All Other
Segment Reporting
Total revenue	8,400	5,672
EBITDA	130,226	10,318
Interest income	2,784	2,677
Interest expense, net	(24,719)	8,987
Income tax (provision) benefit, net	8,452	(4,482)
Depreciation and amortization	(7,560)	(6,738)
Net income (loss) attributable to EchoStar	$ 109,183	$ 10,762

Segment Reporting (Details 2) - USD ($) $ in Thousands	3 Months Ended
Segment Reporting (Details 2) - USD ($) $ in Thousands	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Geographic Information
Long-lived assets, including FCC authorizations	$ 3,949,338		$ 3,922,826
Revenue	764,780	$ 479,826
North America
Geographic Information
Long-lived assets, including FCC authorizations	3,914,949		3,888,286
Revenue	688,584	472,309
All Other.
Geographic Information
Long-lived assets, including FCC authorizations	34,389		$ 34,540
Revenue	$ 76,196	$ 7,517

Segment Reporting (Details 3) $ in Thousands	3 Months Ended
Segment Reporting (Details 3) $ in Thousands	Mar. 31, 2012 USD ($) customer	Mar. 31, 2011 USD ($)
Segment Reporting
Number of major customers \| customer	2
Sales to each customer and its percentage of total revenue
Revenue	$ 764,780	$ 479,826
DISH Network
Sales to each customer and its percentage of total revenue
Revenue	$ 364,023	$ 393,333
Percentage of total revenue	47.60%	82.00%
EchoStar Technologies Business
Sales to each customer and its percentage of total revenue
Revenue	$ 300,198	$ 336,032
EchoStar Satellite Services Business
Sales to each customer and its percentage of total revenue
Revenue	53,633	53,941
Hughes Business
Sales to each customer and its percentage of total revenue
Revenue	531
All Other and Elimination
Sales to each customer and its percentage of total revenue
Revenue	9,661	3,360
Bell TV
Sales to each customer and its percentage of total revenue
Revenue	$ 66,178	$ 41,402
Percentage of total revenue	8.70%	8.60%
All other
Sales to each customer and its percentage of total revenue
Revenue	$ 334,579	$ 45,091
Percentage of total revenue	43.70%	9.40%

Related Party Transactions (Details) $ in Thousands	1 Months Ended										3 Months Ended		12 Months Ended
Related Party Transactions (Details) $ in Thousands	Mar. 31, 2012 USD ($) Y D option	Nov. 30, 2011 Y	Apr. 30, 2011 USD ($) Y installment	Jan. 31, 2011 Y	May 31, 2010 Y	Feb. 28, 2010 Y D	Jan. 31, 2010 Y	Dec. 31, 2009 USD ($)	Oct. 31, 2009 Y	Sep. 30, 2009 Y DBS	Mar. 31, 2012 USD ($) Y D M	Mar. 31, 2011 USD ($)	Dec. 31, 2011 USD ($) Y D DBS option	Dec. 31, 2010 USD ($)	Dec. 31, 2008 Y DBS	Mar. 09, 2012	Apr. 29, 2011 USD ($)	Oct. 31, 2010	Sep. 30, 2010 USD ($)
Related party transactions
Number of DBS transponders available to receive services \| DBS													32
Amounts payable to NagraStar	$ 19,002										$ 19,002		$ 16,374
DBSD North America Agreement
Related party transactions
Required minimum notice for termination of agreement (in days) \| D	30
Term of renewal option (in years) \| Y	1
Number of successive one year renewal options \| option	4
Dues from related party	$ 1,000										1,000
DISHOnline.com Services Agreement
Related party transactions
Term of renewal option (in years) \| Y		1
Patent Cross-License Agreements
Related party transactions
Maximum aggregate payments required under cross license agreements													10,000
Maximum additional aggregate payments required under cross license agreements if options are exercised													$ 3,000
Sprint Settlement Agreement
Related party transactions
Net payment for resolving all disputed issues											114,000
TerreStar Agreement
Related party transactions
Dues from related party	$ 1,000										$ 1,000
DISH Network \| TiVo vs. Dish Network and Echostar Corporation
Related party transactions
Intellectual property liability contribution																	$ 5,000
Settlement amount			$ 500,000
Portion of the $300 million initial settlement agreement payment allocated to EchoStar			10,000
Initial settlement amount paid			$ 300,000
Aggregate of six annual installment amounts between 2012 and 2017																	$ 200,000
Litigation settlement, number of annual installments \| installment			6
Percentage of litigation settlement amount to be made by EchoStar			5.00%
Estimated percentage of annual future payments payable by EchoStar			5.00%
DISH Network \| DBSD North America Agreement
Related party transactions
Ownership interest in related party (as a percent)																100.00%
DISH Network \| Receiver Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											60
DISH Network \| 2012 Receiver Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											180
Automatic renewal period (in years) \| Y											1
DISH Network \| Broadcast Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											60
DISH Network \| Broadcast Agreement for Certain Sports Related Programming
Related party transactions
Agreement term (in years) \| Y					10
DISH Network \| EchoStar XVI
Related party transactions
Agreement term (in years) from commencement of service date \| Y											10
DISH Network \| DISH Telesat Agreement
Related party transactions
Agreement term (in years) \| Y									10
Number of DBS transponders available to receive services \| DBS										32
Number of DBS transponders currently receiving services \| DBS										32
DISH Network \| QuetzSat-1 Lease Agreement
Related party transactions
Number of DBS transponders expected to receive services \| DBS															24
DISH Network \| TT&C Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											60
DISH Network \| Real Estate Lease Agreement
Related party transactions
Agreement term (in years) \| Y															7
DISH Network \| Inverness Lease Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| M											6
DISH Network \| Santa Fe Lease Agreement
Related party transactions
Term of renewal option (in years) \| Y											1
DISH Network \| Gilbert Lease Agreement
Related party transactions
Required minimum notice for termination of agreement (in days) \| D											30
DISH Network \| Product Support Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											60
DISH Network \| DISHOnline.com Services Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											120
Agreement term (in years) \| Y							2
Automatic renewal period (in years) \| Y		1
Term of renewal option (in years) \| Y											1
Number of successive one year renewal options \| option													3
DISH Network \| DISH Remote Access Services Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D						120
Agreement term (in years) \| Y						5
Automatic renewal period (in years) \| Y						1
DISH Network \| SlingService Services Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D						120
Agreement term (in years) \| Y						5
Automatic renewal period (in years) \| Y						1
DISH Network \| Move Networks Services Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D													180
Agreement term (in years) \| Y													5
Automatic renewal period (in years) \| Y													1
DISH Network \| Management Services Agreement
Related party transactions
Minimum required notice period for termination of agreement by related party (in days or months) \| D											180
Automatic renewal period (in years) \| Y				1							1
Required minimum notice for termination of agreement (in days) \| D											30
DISH Network \| Professional Services Agreement
Related party transactions
Automatic renewal period (in years) \| Y											1
Required minimum notice for termination of agreement (in days) \| D											60
Required minimum notice for termination of individual service (in days) \| D											30
DISH Network \| Satellite capacity leased from Dish Network
Related party transactions
Fees included in Cost of sales-services and other											$ 4,000	$ 6,000
DISH Network \| Remanufactured Receiver Agreement
Related party transactions
Required notice period for termination by the reporting entity (in days) \| D											60
Amount of remanufactured receivers and accessories purchased from related party											$ 1,000	1,000
DISH Network \| Acquisition of Alta Wireless, Inc.
Related party transactions
Ownership interest in related party (as a percent)																		95.00%
DISH Network \| RUS Service Implementation Agreement
Related party transactions
Agreement term (in years) \| M											60
Required notice period for termination by the reporting entity (in days) \| D											45
Telesat Canada \| Nimiq 5 Agreement
Related party transactions
Agreement term (in years) \| Y										15
Number of DBS transponders available to receive services \| DBS										32
Number of DBS transponders currently receiving services \| DBS										32
Blockbuster
Related party transactions
Term of renewal option (in years) \| Y			1
Hughes Systique Corporation
Related party transactions
Ownership interest in related party (as a percent)													45.00%
Ownership percentage by related party	26.00%										26.00%
NagraStar
Related party transactions
Ownership interest in related party (as a percent)	50.00%										50.00%
Purchases from NagraStar											$ 2,942	1,795
Amounts payable to NagraStar	$ 3,899										3,899		$ 2,965
Commitments to purchase from NagraStar											2,730		2,731
Dish Mexico
Sales not related to the original contribution commitment associated with our investment:
Digital set-top boxes and related accessories											14,296	9,347
Sales of satellite services											2,130	2,130
Uplink services											2,352	$ 1,705
Engineering Services											562
Amount receivable from Dish Mexico	$ 7,150										$ 7,150		$ 8,594
Joint Venture in Taiwan
Related party transactions
Ownership interest in related party (as a percent)	50.00%										50.00%
Related party joint venture
Related Party Transaction, Cash Provided								$ 18,000
Line of credit provided to joint venture								$ 18,000
Impairment of joint venture investment														$ 14,000
Line of credit provided to joint venture, balance outstanding	$ 10,000										$ 10,000
Ownership percentage in joint venture not to be sold													5.00%
DISH Broadband \| TiVo vs. Dish Network and Echostar Corporation
Related party transactions
Grant receivable																			$ 14,000