0001533758-18-000018 | 10-Q | XBRL Viewer | Hughes Satellite Systems Corp

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 31, 2018
Document and Entity Information
Entity Registrant Name	Hughes Satellite Systems Corp
Entity Central Index Key	0001533758
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,078
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,509,238	$ 1,822,561
Marketable investment securities, at fair value	993,126	455,602
Trade accounts receivable and contract assets, net (Note 3)	186,956	196,840
Trade accounts receivable - DISH Network, net	25,703	38,641
Inventory	81,388	83,595
Prepaids and deposits	44,038	38,797
Advances to affiliates, net	103,631	114,858
Other current assets	15,887	91,544
Total current assets	2,959,967	2,842,438
Noncurrent assets:
Property and equipment, net	2,642,664	2,753,098
Regulatory authorizations	465,658	465,658
Goodwill	504,173	504,173
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	51,267	58,582
Investments in unconsolidated entities	28,317	30,587
Other noncurrent assets, net	247,902	202,814
Total noncurrent assets	3,939,981	4,014,912
Total assets	6,899,948	6,857,350
Current liabilities:
Trade accounts payable	97,116	102,816
Trade accounts payable - DISH Network	445	3,769
Current portion of long-term debt and capital lease obligations	1,028,119	40,631
Advances from affiliates, net	771	477
Contract liabilities	72,776	65,959
Accrued interest	45,602	46,834
Accrued compensation	32,680	36,924
Accrued taxes	9,142	8,198
Accrued expenses and other	60,990	77,312
Total current liabilities	1,347,641	382,920
Noncurrent liabilities:
Long-term debt and capital lease obligations, net	2,592,174	3,594,213
Deferred tax liabilities, net	464,722	439,631
Advances from affiliates	33,525	33,715
Other noncurrent liabilities	104,289	107,627
Total noncurrent liabilities	3,194,710	4,175,186
Total liabilities	4,542,351	4,558,106
Commitments and Contingencies
Shareholders’ equity:
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding at each of June 30, 2018 and December 31, 2017	0	0
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,078 shares issued and outstanding at June 30, 2018 and 1,000 shares issued and outstanding at December 31, 2017	0	0
Additional paid-in capital	1,764,131	1,754,561
Accumulated other comprehensive loss	(82,089)	(52,822)
Accumulated earnings	660,690	582,683
Total HSS shareholders’ equity	2,342,732	2,284,422
Noncontrolling interests	14,865	14,822
Total shareholders’ equity	2,357,597	2,299,244
Total liabilities and shareholders’ equity	$ 6,899,948	$ 6,857,350

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Noncurrent assets:
Finite-Lived Intangible Assets, Accumulated Amortization	$ 300,133	$ 292,835
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	1,078	1,078
Common stock, shares outstanding (in shares)	1,078	1,078

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Services and other revenue - DISH Network	$ 97,140	$ 110,921	$ 197,754	$ 222,411
Services and other revenue - other	380,115	285,055	739,449	555,278
Equipment revenue	50,341	66,289	93,288	114,694
Total revenue	527,596	462,265	1,030,491	892,383
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	150,223	137,274	297,878	271,578
Cost of sales - equipment (exclusive of depreciation and amortization)	41,865	53,662	80,936	94,483
Selling, general and administrative expenses	93,375	86,115	188,025	160,493
Research and development expenses	6,647	7,437	13,784	15,142
Depreciation and amortization	136,708	124,743	270,426	236,963
Total costs and expenses	428,818	409,231	851,049	778,659
Operating income	98,778	53,034	179,442	113,724
Other income (expense):
Interest income	14,286	7,086	25,665	12,927
Interest expense, net of amounts capitalized	(64,122)	(61,376)	(128,535)	(121,213)
Gain (Loss) on Investments	509	1,632	117	(1,575)
Equity in earnings of unconsolidated affiliate	1,238	1,639	2,730	3,350
Other, net	467	(2,222)	(146)	(1,575)
Total other expense, net	(47,622)	(53,241)	(100,169)	(108,086)
Income (loss) before income taxes	51,156	(207)	79,273	5,638
Income tax benefit (provision)	(10,463)	509	(18,199)	4,091
Net income	40,693	302	61,074	9,729
Less: Net income attributable to noncontrolling interests	462	182	842	474
Net income attributable to HSS	40,231	120	60,232	9,255
Comprehensive income:
Net income	40,693	302	61,074	9,729
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(32,314)	(6,736)	(30,414)	5,385
Unrealized gains (losses) on available-for-sale securities and other	329	(11)	(82)	(1,511)
Realized gains on available-for-sale securities in net income	(3)	0	(3)	0
Other-than-temporary impairment loss on available-for-sale securities in net income	0	0	0	3,298
Total other comprehensive income (loss), net of tax	(31,988)	(6,747)	(30,499)	7,172
Comprehensive income (loss)	8,705	(6,445)	30,575	16,901
Less: Comprehensive income (loss) attributable to noncontrolling interests	(123)	182	43	474
Comprehensive income (loss) attributable to HSS	$ 8,828	$ (6,627)	$ 30,532	$ 16,427

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHARESHOLDERS' EQUITY Statement - USD ($) $ in Thousands	Total	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Earnings	Noncontrolling Interests
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016	$ 1,755,023	$ 1,516,199	$ (60,719)	$ 286,713	$ 12,830
Stock-based compensation	2,480	2,480	0	0	0
Transfer of launch service contracts to EchoStar	(145,114)	(145,114)	0	0	0
Contribution of EchoStar XIX satellite, net of deferred tax	369,263	369,263	0	0	0
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1)	219,662	219,662	0	0	0
Exchange of noncash net assets for HSS Tracking Stock (Note 1)	(190,221)	(190,221)	0	0	0
Net income	9,729	0	0	9,255	474
Foreign currency translation adjustments	5,385	0	5,385	0	0
Unrealized gains (losses) on available-for-sale securities, net	1,762	0	1,762	0	0
Other	(102)	(127)	25	0	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2017	2,027,867	1,772,142	(53,547)	295,968	13,304
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017	2,299,244	1,754,561	(52,822)	582,683	14,822
Cumulative Effect on Retained Earnings, Net of Tax	18,208		433	17,775
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 01, 2018	2,317,452	1,754,561	(52,389)	600,458	14,822
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017	2,299,244	1,754,561	(52,822)	582,683	14,822
Stock-based compensation	2,683	2,683	0	0	0
Capital contribution from EchoStar Corporation	7,125	7,125	0	0	0
Net income	61,074	0	0	60,232	842
Foreign currency translation adjustments	(30,414)	0	(29,615)	0	(799)
Unrealized gains (losses) on available-for-sale securities, net	156	0	156	0	0
Other	(479)	(238)	(241)	0	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2018	$ 2,357,597	$ 1,764,131	$ (82,089)	$ 660,690	$ 14,865

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 61,074	$ 9,729
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	270,426	236,963
Equity in earnings of unconsolidated affiliate	(2,730)	(3,350)
Amortization of debt issuance costs	3,905	3,617
Losses (gains) on investments, net	(114)	1,575
Stock-based compensation	2,683	2,480
Deferred tax (benefit) provision	16,742	(6,683)
Dividends received from unconsolidated entity	5,000	7,500
Proceeds from sale of trading securities	0	8,922
Trade accounts receivable, net	(3,061)	(8,286)
Advances to and from affiliates, net	8,842	(3,242)
Trade accounts receivable - DISH Network	12,938	(29,306)
Inventory	238	(28,411)
Other current assets	(5,829)	(1,710)
Trade accounts payable	3,348	2,441
Trade accounts payable - DISH Network	(3,324)	0
Accrued expenses and other	4,542	2,161
Changes in noncurrent assets and noncurrent liabilities, net	(16,698)	(7,456)
Other, net	3,143	2,300
Net cash flows from operating activities	361,125	189,244
Cash flows from investing activities:
Purchases of marketable investment securities	(1,098,527)	(992)
Sales and maturities of marketable investment securities	560,194	118,648
Expenditures for property and equipment	(175,644)	(175,344)
Refunds and other receipts related to property and equipment	77,524	0
Expenditures for externally marketed software	(15,000)	(17,119)
Payment for satellite launch services	(7,125)	0
Net cash flows from investing activities	(658,578)	(74,807)
Cash flows from financing activities:
Repayment of debt and capital lease obligations	(18,417)	(17,111)
Advances from (to) affiliates, net		(36)
Capital contribution from EchoStar Corporation	7,125	0
Payment of in-orbit incentive obligations	(2,718)	(3,194)
Other, net	0	1,312
Net cash flows from financing activities	(14,010)	(19,029)
Effect of exchange rates on cash and cash equivalents	(1,865)	925
Net increase (decrease) in cash and cash equivalents, including restricted amounts	(313,328)	96,333
Cash and cash equivalents, including restricted amounts, beginning of period	1,823,354	2,071,687
Cash and cash equivalents, including restricted amounts, end of period	1,510,026	2,168,020
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	125,098	116,902
Cash paid for income taxes	$ 2,204	$ 2,141

Organization and Business Activities

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business Activities

ORGANIZATION AND BUSINESS ACTIVITIES

Principal Business

Hughes Satellite Systems Corporation (which, together with its subsidiaries, is referred to as “HSS,” the “Company,” “we,” “us” and/or “our”) is a holding company and a subsidiary of EchoStar Corporation (“EchoStar”). We are a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband internet services for home and small office customers. We also deliver innovative network technologies, managed services and various communications solutions for aeronautical, enterprise and government customers.

We primarily operate in the following two business segments:

•

Hughes — which provides broadband satellite technologies and broadband internet services to domestic and international home and small office customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to domestic and international consumers and aeronautical, enterprise and government customers. The Hughes segment also designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment designs, develops, constructs and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and our enterprise customers.

•

EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite service operations and video delivery services on a full-time and occasional-use basis primarily to DISH Network, U.S. government service providers, internet service providers, broadcast news organizations, programmers and private enterprise customers. ESS also manages satellite operations for certain satellites owned by DISH Network.

Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in our segment reporting.

We were formed as a Colorado corporation in March 2011 to facilitate the acquisition by EchoStar of Hughes Communications, Inc. and its subsidiaries and related financing transactions. In connection with our formation, EchoStar contributed the assets and liabilities of its satellite services business to us, including the principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C. A substantial majority of the voting power of the shares of each of EchoStar and DISH Network Corporation (“DISH”) is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family.

On January 31, 2017, EchoStar and certain of its and our subsidiaries entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar and certain of its and our subsidiaries received all of the shares of the Hughes Retail Preferred Tracking Stock issued by EchoStar (the “EchoStar Tracking Stock”) and the Hughes Retail Preferred Tracking Stock issued by us (the “HSS Tracking Stock”, together with the EchoStar Tracking Stock, the “Tracking Stock”) in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s former EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). The EchoStar Technologies businesses designed, developed and distributed secure end-to-end video technology solutions including digital set-top boxes and related products and technology, primarily for satellite TV service providers and telecommunication companies, and provided digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services. The Tracking Stock tracked the economic performance of the residential retail satellite broadband business of our

Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group”), and represented an aggregate 80.0% economic interest in the Hughes Retail Group. Following the consummation of the Share Exchange, EchoStar no longer operates the EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding, and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2017.

Principles of Consolidation

We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50% of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. For entities we control but do not wholly own, we record a noncontrolling interest within shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassification

Certain prior period amounts have been reclassified to conform with the current period presentation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period and certain information disclosed in the notes to our financial statements. Estimates are used in accounting for, among other things, (i) amortization periods for deferred contract acquisition costs, (ii) inputs used to recognize revenue over time, (iii) allowances for doubtful accounts, (iv) warranty obligations, (v) self-insurance obligations, (vi) deferred taxes and related valuation allowances, (vii) uncertain tax positions, (viii) loss contingencies, (ix) fair value of financial instruments, (x) fair value of EchoStar’s stock-based compensation awards, (xi) fair value of assets and liabilities acquired in business combinations, (xii) lease classifications, (xiii) asset impairment testing and (xiv) useful lives and methods for depreciation and amortization of long-lived assets. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods.

Fair Value Measurements

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


•	Level 1 - Defined as observable inputs being quoted prices in active markets for identical assets;


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


•	Level 3 - Defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability.

Fair values of our marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements, as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Fair values for our outstanding debt (see Note 10) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy.

Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for each of the six months ended June 30, 2018 and 2017.

As of June 30, 2018 and December 31, 2017, the carrying amounts of our cash and cash equivalents, trade and other receivables, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated their fair value due to their short-term nature or proximity to current market rates.

Revenue Recognition

Overview

We account for our sales and services revenue in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”), which we adopted on January 1, 2018, using the modified retrospective approach to contracts not completed as of the adoption date. Topic 606 provides a five-step revenue recognition model that we apply to our customer contracts. Under this model we (i) identify the contract with the customer, (ii) identify our performance obligations in the contract, (iii) determine the transaction price for the contract, (iv) allocate the transaction price to our performance obligations and (v) recognize revenue when or as we satisfy our performance obligations.

Revenue is recognized upon transfer of control of the promised goods or our performance of the services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts that may include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations.

Additionally, a significant portion of our revenue is derived from leases of property and equipment that is reported in Services and other revenue - other and Services and other revenue - DISH Network in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Certain of our customer contracts contain embedded equipment leases, which we separate from non-lease components of the contract based on the relative standalone selling prices of the lease and non-lease components.

Hughes

Our Hughes segment provides various communication and networking services to consumer and enterprise customers in domestic and international markets. Our service contracts typically obligate us to provide substantially the same services on a recurring basis in exchange for fixed recurring fees over the term of the contract. We satisfy such performance obligations over time and generally recognize revenue ratably as services are rendered over the service period. Certain of our contracts with service obligations provide for fees based on usage, capacity or volume. We satisfy these performance obligations and generally recognize the related revenue at the point in time or over the period when the services are rendered. Our Hughes segment also sells and leases communications equipment to its customers. Revenue from equipment sales generally is recognized upon shipment of the equipment. Our equipment sales contracts typically include standard product warranties, but generally do not provide for returns or refunds. Revenue for extended warranties is generally recognized ratably over the extended warranty period. For contracts with multiple performance obligations, we typically allocate the contract’s transaction price to each performance obligation based on their relative standalone selling prices. When the standalone selling price is not observable, our primary method used to estimate standalone selling price is the expected cost plus a margin. Our contracts generally require customer payments to be made at or shortly after the time we transfer control of goods or perform the services.

In addition to equipment and service offerings, our Hughes segment also enters into long-term contracts to design, develop, construct and install complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Revenue from such contracts is generally recognized over time at a measure of progress that depicts the transfer of control of the goods or services to the customer. Depending on the nature of the arrangement, we measure progress toward contract completion using an appropriate input method or output method. Under our input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under our output method, revenue and cost of sales are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts generally are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We generally receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment.

ESS

Our ESS segment provides satellite service operations through leasing arrangements and video delivery services on a full-time and occasional-use basis to DISH Network, government service providers, internet service providers, broadcast news organizations, programmers and private enterprise customers. Our ESS segment also provides telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and technical consulting services that are billed by the hour. Generally, our service contracts with customers contain a single performance obligation and therefore there is no need to allocate the transaction price. We transfer control and recognize revenue for satellite services at the point in time or over the period when the services are rendered.

Other

Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales at the time of shipment.

Contract Balances

Trade Accounts Receivable

Trade accounts receivable includes amounts billed and currently due from customers and represents our unconditional rights to consideration arising from our performance under our customer contracts. Trade accounts receivable also includes amounts due from customers under our leasing arrangements. We make ongoing estimates relating to the collectibility of our accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of our customers based on ongoing credit evaluations. Past-due trade accounts receivable balances are written off when our internal collection efforts have been unsuccessful. Bad debt expense related to our trade accounts receivable and contract assets is included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Contract Assets and Contract Liabilities

Contract assets represent revenue that we have recognized in advance of billing the customer and are included in Trade accounts receivable and contract assets, net or Other noncurrent assets, net in our Condensed Consolidated Balance Sheets based on the expected timing of customer payment. Our contract assets include amounts that we referred to as Contracts in Process in prior periods. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer.

Contract liabilities consist of advance payments and billings in excess of revenue recognized under customer contracts and is included in Contract liabilities or Other noncurrent liabilities in our Condensed Consolidated Balance Sheets based on the timing of when we expect to recognize revenue. Contract liabilities include amounts that we referred to as deferred revenue in prior periods. We recognize contract liabilities as revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria have been met.

Contract Acquisition and Fulfillment Costs

Contract Acquisition Costs

Our contract acquisition costs represent incremental direct costs of obtaining a contract and consist primarily of sales incentives paid to employees and third-party representatives. When we determine that our contract acquisition costs are recoverable, we defer and amortize the costs over the contract term, or over the estimated life of the customer relationship if anticipated renewals are expected and the incentives payable upon renewal are not commensurate with the initial incentive. We amortize contract acquisition costs in proportion to the revenue to which the costs relate. We expense sales incentives as incurred if the expected amortization period is one year or less. Unamortized contract acquisition costs are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Contract Fulfillment Costs

We recognize costs to fulfill a contract as an asset when the costs relate directly to a contract, the costs generate or enhance our resources that will be used in satisfying future performance obligations, and the costs are expected to be recovered. We may incur such costs on certain contracts that require initial setup activities in advance of the transfer of goods or services to the customer. We amortize these costs in proportion to the revenue to which the costs relate. Unamortized contract fulfillment costs are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets and related amortization expense is included in Cost of sales - services and other in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Research and Development

Costs incurred in research and development activities are generally expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales.

Capitalized Software Costs

Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years. Capitalized costs of internal-use software are included in Property and equipment, net and capitalized costs of externally marketed software are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets. Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed.

Marketable Investment Securities

Our marketable investment securities portfolio consists of investments in debt and equity instruments with readily determinable fair values.

Debt Securities

We classify all of our debt securities as available for sale based on our investment strategy for the securities. Generally, we recognize periodic changes in the difference between fair value and amortized cost in Unrealized gains (losses) on available-for-sale securities and other in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Realized gains and losses upon sales of debt securities are reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We use the first-in, first out method to determine the cost basis on sales of debt securities. Interest income from debt securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We could realize proceeds from certain investments prior to their contractual maturity if we actually sell these securities before such maturity.

We evaluate our available-for-sale debt securities portfolio periodically to determine whether declines in the fair value of these securities are other than temporary. Our evaluation considers, among other things, the length of time and the extent to which the fair value of such security has been lower than amortized cost, market and company-specific factors related to the security and our intent and ability to hold the investment to maturity or when it recovers its value. We generally consider a decline to be other than temporary when: (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before maturity or when it recovers its value, or (iii) we do not expect to recover the amortized cost of the security at maturity. Declines in the fair value of available-for-sale debt securities that are determined to be other than temporary are reclassified from other comprehensive income (loss) and recognized in net income, thus establishing a new cost basis for the investment.

Additionally, from time to time we make strategic investments in corporate debt securities. We may elect to account for these investments using the fair value option when it reduces accounting complexity. When we have made this election, we recognize periodic changes in fair value of these investments in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from these securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Equity Securities

Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. For available-for-sale securities, we recognized periodic

changes in the difference between fair value and cost in Unrealized gains (losses) on available-for-sale securities and other in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Realized gains and losses upon sale of available-for-sale securities were reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We used the first in, first out method to determine the cost basis on sales of available-for-sale securities. For trading securities, we recognized periodic changes in the fair value of the securities in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments (the “New Investment Standard”), which established new requirements for investments in equity securities in ASC Topic 321, Investments - Equity Securities. Accordingly, beginning in 2018, we recognize periodic changes in the fair value of all of our equity securities with a readily determinable fair value that are not accounted for using the equity method in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Investments in Unconsolidated Entities

Our investments in unconsolidated entities consist of investments in equity securities that are not publicly traded and do not have readily determinable fair values. We use the equity method to account for such investments when we have the ability to significantly influence the operating decisions of the investee. Prior to January 1, 2018, we accounted for other investments without a readily determinable fair value using the cost method. In connection with our adoption of the New Investment Standard as of January 1, 2018, we have elected to measure such investments at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. We consider information in periodic financial statements and other documentation provided by our investees and we may make inquiries of investee management to determine whether observable price changes have occurred.

Our investments in unconsolidated entities that are accounted for using the equity method are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in Equity in earnings of unconsolidated affiliate in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The carrying amount of such investments may include a component of goodwill if the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the investee. Dividends received from equity method investees reduce the carrying amount of the investment. We defer, to the extent of our ownership interest in the investee, recognition of intra-entity profits on sales of equipment to the investee until the investee has charged the cost of the equipment to expense in a subsequent sale to a third party or through depreciation. In these circumstances, we report the gross amounts of revenue and cost of sales in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and include the intra-entity profit eliminations within Equity in earnings of unconsolidated affiliate.

We evaluate all of our investments in unconsolidated entities periodically to determine whether events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment. As part of our evaluation, we review available information such as business plans and current financial statements of these companies for factors that may indicate an impairment of our investments. Such factors may include, but are not limited to, unprofitable operations, negative cash flow, material litigation, violations of debt covenants, bankruptcy and changes in business strategy. When we determine that an investment is impaired, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in earnings.

Other Significant Accounting Policies

See Note 2, Summary of Significant Accounting Policies to our consolidated financial statements included in our Form 10-K for the year ended December 31, 2017 for a summary of our other significant accounting policies.

Recently Adopted Accounting Pronouncements

Revenue Recognition and Financial Instruments

On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers and related amendments (collectively, the “New Revenue Standard”). The New Revenue Standard established a comprehensive new model for revenue recognition, which is codified in Topic 606 (see Revenue Recognition above), and provided guidance for certain costs associated with customer contracts. We adopted the New Revenue Standard using the modified retrospective method for contracts that were not completed as of January 1, 2018. Accordingly, comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Upon adoption of the New Revenue Standard, we recognized the cumulative effect of its initial application as a net increase to accumulated earnings of $18.2 million, net of related income taxes. The adoption of the New Revenue Standard also impacted the timing of recognition of certain fees charged to our customers in our consumer markets; however, the adoption has not had, and we do not expect it to have, a material impact on the overall timing or amount of revenue recognition.

The primary impacts of the New Revenue Standard on our operating results relate to how we account for sales incentive costs (See Contract Acquisition and Fulfillment Costs above). Historically, we charged sales incentives to expense as incurred, except for incentives related to the consumer business in our Hughes segment, which were initially deferred and subsequently amortized over the related service agreement term. Under the New Revenue Standard, we continue to defer incentives for our consumer business; however, we now amortize those incentives over the estimated customer life, which includes expected contract renewal periods. In addition, we now defer certain sales incentives related to other businesses in our Hughes segment and amortize those incentives over the related service agreement term. As a result of these changes, we have recognized additional contract assets on our Condensed Consolidated Balance Sheet and the costs generally are recognized as expenses over a longer period of time in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The adoption of the New Revenue Standard by one of our unconsolidated entities had a similar impact on our investment in the unconsolidated entity, which we account for using the equity method.

Additionally, on January 1, 2018, we prospectively adopted the applicable requirements of the New Investment Standard. The New Investment Standard substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through earnings. The New Investment Standard permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. Upon adoption of the New Investment Standard on January 1, 2018, we recorded a $0.4 million charge to accumulated earnings to include net unrealized losses on our marketable equity securities then designated as available for sale, which previously were recorded in Accumulated Other Comprehensive Loss in our Condensed Consolidated Balance Sheets. For our equity investments without a readily determinable fair value that were previously accounted for using the cost method, we have elected to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in equity securities that were previously accounted for as available for sale or using the cost method.

The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of these standards were as follows:



	Balance at December 31, 2017			Adjustments Due to the						Balance at January 1, 2018
	Balance at December 31, 2017			New Revenue Standard			New Investment Standard			Balance at January 1, 2018
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	196,840		$	(7,103	)	$	—		$	189,737
Other current assets	$	91,544		$	533		$	—		$	92,077
Other noncurrent assets, net	$	202,814		$	22,545		$	—		$	225,359
Total assets	$	6,857,350		$	15,975		$	—		$	6,873,325
Liabilities:
Contract liabilities	$	65,959		$	(1,542	)	$	—		$	64,417
Accrued expenses and other	$	77,312		$	255		$	—		$	77,567
Deferred tax liabilities, net	$	439,631		$	3,122		$	—		$	442,753
Other noncurrent liabilities	$	107,627		$	(4,068	)	$	—		$	103,559
Total liabilities	$	4,558,106		$	(2,233	)	$	—		$	4,555,873
Shareholders’ Equity:
Accumulated other comprehensive income (loss)	$	(52,822	)	$	—		$	433		$	(52,389	)
Accumulated earnings (losses)	$	582,683		$	18,208		$	(433	)	$	600,458
Total shareholders’ equity	$	2,299,244		$	18,208		$	—		$	2,317,452
Total liabilities and shareholders’ equity	$	6,857,350		$	15,975		$	—		$	6,873,325

Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows:



	As of June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Balance Sheet	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	186,956		$	7,129		$	—		$	194,085
Other current assets	$	15,887		$	(533	)	$	—		$	15,354
Other noncurrent assets, net	$	247,902		$	(29,878	)	$	—		$	218,024
Total assets	$	6,899,948		$	(23,282	)	$	—		$	6,876,666
Liabilities:
Contract liabilities	$	72,776		$	978		$	—		$	73,754
Accrued expenses and other	$	60,990		$	(255	)	$	—		$	60,735
Deferred tax liabilities, net	$	464,722		$	(4,297	)	$	—		$	460,425
Other noncurrent liabilities	$	104,289		$	2,414		$	—		$	106,703
Total liabilities	$	4,542,351		$	(1,160	)	$	—		$	4,541,191
Shareholders’ Equity:
Accumulated other comprehensive loss	$	(82,089	)	$	—		$	505		$	(81,584	)
Accumulated earnings	$	660,690		$	(22,122	)	$	(505	)	$	638,063
Total shareholders’ equity	$	2,357,597		$	(22,122	)	$	—		$	2,335,475
Total liabilities and shareholders’ equity	$	6,899,948		$	(23,282	)	$	—		$	6,876,666



	For the three months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	380,115		$	808		$	—		$	380,923
Total revenue	$	527,596		$	808		$	—		$	528,404
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	150,223		$	1,548		$	—		$	151,771
Selling, general and administrative expenses	$	93,375		$	2,434		$	—		$	95,809
Total costs and expenses	$	428,818		$	3,982		$	—		$	432,800
Operating income	$	98,778		$	(3,174	)	$	—		$	95,604
Other income (expense):
Interest expense, net of amounts capitalized	$	(64,122	)	$	126		$	—		$	(63,996	)
Gains (losses) on investments, net	$	509		$	—		$	(505	)	$	4
Total other expense, net	$	(47,622	)	$	126		$	(505	)	$	(48,001	)
Income before income taxes	$	51,156		$	(3,048	)	$	(505	)	$	47,603
Income tax provision	$	(10,463	)	$	794		$	—		$	(9,669	)
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Net income attributable to HSS	$	40,231		$	(2,254	)	$	(505	)	$	37,472
Comprehensive income
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Other comprehensive income (loss), net of tax:
Unrealized gains on available-for-sale securities and other	$	329		$	—		$	505		$	834
Total other comprehensive income, net of tax	$	(31,988	)	$	—		$	505		$	(31,483	)
Comprehensive income	$	8,705		$	(2,254	)	$	—		$	6,451
Comprehensive income attributable to HSS	$	8,828		$	(2,254	)	$	—		$	6,574



	For the six months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	739,449		$	2,026		$	—		$	741,475
Total revenue	$	1,030,491		$	2,026		$	—		$	1,032,517
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	297,878		$	2,477		$	—		$	300,355
Selling, general and administrative expenses	$	188,025		$	4,855		$	—		$	192,880
Total costs and expenses	$	851,049		$	7,332		$	—		$	858,381
Operating income	$	179,442		$	(5,306	)	$	—		$	174,136
Other income (expense):
Interest expense, net of amounts capitalized	$	(128,535	)	$	218		$	—		$	(128,317	)
Gains (losses) on investments, net	$	117		$	—		$	(938	)	$	(821	)
Total other expense, net	$	(100,169	)	$	218		$	(938	)	$	(100,889	)
Income before income taxes	$	79,273		$	(5,088	)	$	(938	)	$	73,247
Income tax provision	$	(18,199	)	$	1,175		$	—		$	(17,024	)
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Net income attributable to HSS	$	60,232		$	(3,913	)	$	(938	)	$	55,381
Comprehensive income
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Other comprehensive income (loss), net of tax:
Unrealized losses on available-for-sale securities and other	$	(82	)	$	—		$	110		$	28
Other-than-temporary impairment loss on available-for-sale securities in net income	$	—		$	—		$	828		$	828
Total other comprehensive income, net of tax	$	(30,499	)	$	—		$	938		$	(29,561	)
Comprehensive income	$	30,575		$	(3,913	)	$	—		$	26,662
Comprehensive income attributable to HSS	$	30,532		$	(3,913	)	$	—		$	26,619

Restricted Cash and Cash Equivalents

ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statement of cash flows. We adopted ASU No. 2016-18 as of January 1, 2018. As a result, the beginning and ending balances of cash and cash equivalents presented in our Condensed Consolidated Statements of Cash Flows include amounts for restricted cash and cash equivalents, which historically were not included in such balances, and receipts and payments of restricted cash and cash equivalents, exclusive of transfers to and from unrestricted accounts, are reported in our Condensed Consolidated Statements of Cash Flows. The adoption of this accounting standard did not have a material impact on our Statements of Cash Flows and related disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or finance leases. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We plan to adopt the new standard as of January 1, 2019. As amended in July 2018, the new standard may be applied either on a modified retrospective basis to the earliest period presented in our consolidated financial statements or as of the adoption date without restating prior periods. The new standard provides certain practical expedients that we may elect to apply on the adoption date. We continue to evaluate the impact of the new standard and available ad

option methods on our consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments rather than incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This update shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date, effectively reducing interest income on such securities prior to the earliest call date. ASU No. 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures.

Revenue Recognition Revenue from Contract with Customer (Notes)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITION

Information About Contract Balances

The following table provides information about our contract balances with customers, including amounts for certain embedded leases.



	As of
	June 30, 2018			January 1, 2018
	(In thousands)
Trade accounts receivable:
Sales and services	$	145,475		$	156,794
Leasing	8,215			10,355
Total	153,690			167,149
Contract assets	42,553			34,615
Allowance for doubtful accounts	(9,287		)	(12,027		)
Total trade accounts receivable and contract assets, net	$	186,956		$	189,737

Trade accounts receivable - DISH Network:
Sales and services	$	25,449		$	16,118
Leasing	254			22,523
Total trade accounts receivable - DISH Network, net	$	25,703		$	38,641

Contract liabilities:
Current	$	72,776		$	64,417
Noncurrent	10,187			13,036
Total contract liabilities	$	82,963		$	77,453

For the six months ended June 30, 2018, revenue recognized that was previously included in the contract liability balance at January 1, 2018 was $52.5 million.

Our bad debt expense was $2.3 million and $3.2 million for the three months ended June 30, 2018 and 2017, respectively, and $6.8 million and $5.7 million for the six months ended June 30, 2018 and 2017, respectively.

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2018, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $1.26 billion. We expect to recognize approximately 18.8% of our remaining performance obligations of these contracts as revenue by December 31, 2018. This amount excludes agreements with consumer customers in our Hughes segment that have expected durations of one year or less and our leasing arrangements.

Other Comprehensive Income (Loss) and Related Tax Effects	6 Months Ended
	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Other Comprehensive Income (Loss) and Related Tax Effects	OTHER COMPREHENSIVE INCOME (LOSS) AND RELATED TAX EFFECTS Except in unusual circumstances, we do not recognize tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. We have not recognized any tax effects on unrealized gains or losses on available-for-sale securities because such gains or losses would affect the amount of unrealized capital losses for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes net cumulative foreign currency translation losses of $81.9 million and $52.3 million as of June 30, 2018 and December 31, 2017, respectively. For the six months ended June 30, 2017, we recorded an other-than-temporary impairment loss on shares of certain common stock included in our strategic equity securities of $3.3 million in Gains (losses) on investments, net on our Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss).

Marketable Investment Securities

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Marketable Investment Securities

MARKETABLE INVESTMENT SECURITIES

Overview

Our marketable investment securities portfolio consists of various debt and equity instruments as follows:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Marketable investment securities:
Debt securities:
Corporate bonds	$	757,647	$	368,083
Other debt securities	234,266		86,417
Total debt securities	991,913		454,500
Equity securities	1,213		1,102
Total marketable investment securities	$	993,126	$	455,602

Debt Securities

Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Our other debt securities portfolio includes investments in various debt instruments, including U.S. government bonds and commercial paper.

A summary of our available-for-sale debt securities, exclusive of securities where we have elected the fair value option, is presented in the table below.



	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
As of June 30, 2018
Corporate bonds	$	757,703	$	171	$	(227	)	$	757,647
Other debt securities	234,269		—		(3		)	234,266
Total available-for-sale debt securities	$	991,972	$	171	$	(230	)	$	991,913
As of December 31, 2017
Corporate bonds	$	368,291	$	—	$	(208	)	$	368,083
Other debt securities	86,425		—		(8		)	86,417
Total available-for-sale debt securities	$	454,716	$	—	$	(216	)	$	454,500

As of June 30, 2018, we have $783.8 million of available-for-sale debt securities with contractual maturities of one year or less and $208.1 million with contractual maturities greater than one year.

Equity Securities

Our marketable equity securities consist primarily of shares of common stock of public companies. Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. As of December 31, 2017, our marketable equity securities consisted of available-for-sale securities with a fair value of $1.1 million, reflecting an adjusted cost basis of $1.5 million and unrealized losses of $0.4 million. Substantially all unrealized losses on our available-for-sale securities related to securities that were in a continuous loss position for less than 12 months. We recognized a $3.3 million other-than-temporary impairment for the six months ended June 30, 2017 on one of our available-for-sale securities which had experienced a decline in market value as a result of adverse developments during the six months ended June 30, 2017.

Upon adoption of the New Investment Standard as of January 1, 2018 (see Note 2), we account for investments in equity securities at their fair value and we recognize unrealized gains and losses in Gains (losses) on investments, net in our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). For the three and six months ended June 30, 2018, Gains (losses) on investments, net included net gains of $0.5 million and $0.1 million, respectively, related to equity securities that we held as of June 30, 2018.

Sales of Available-for-Sale Securities

We did not sell any securities in our available-for-sale portfolio during the three or six months ended June 30, 2018. Proceeds from sales of our available-for-sale securities for each of the three and six months ended June 30, 2017 were $8.9 million. We recognized zero gains and losses from the sales of our available-for-sale securities for each of the three and six months ended June 30, 2017.

Fair Value Measurements

Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of June 30, 2018 and December 31, 2017, we did not have investments that were categorized within Level 3 of the fair value hierarchy.



	As of
	June 30, 2018						December 31, 2017
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Debt securities:
Corporate bonds	$	—	$	757,647	$	757,647	$	—	$	368,083	$	368,083
Other	—		234,266		234,266		—		86,417		86,417
Total debt securities	—		991,913		991,913		—		454,500		454,500
Equity securities	1,213		—		1,213		1,102		—		1,102
Total marketable investment securities	$	1,213	$	991,913	$	993,126	$	1,102	$	454,500	$	455,602

Inventory

6 Months Ended

Jun. 30, 2018

Inventory, Net [Abstract]

Inventory

INVENTORY

Our inventory consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Raw materials	$	6,291	$	5,484
Work-in-process	8,691		7,442
Finished goods	66,406		70,669
Total inventory	$	81,388	$	83,595

Property and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:



	Depreciable Life In Years	As of
	Depreciable Life In Years	June 30, 2018			December 31, 2017
		(In thousands)
Land	—	$	13,402		$	13,475
Buildings and improvements	1 to 40	128,043			128,292
Furniture, fixtures, equipment and other	1 to 12	672,596			650,385
Customer rental equipment	2 to 4	1,032,591			929,775
Satellites - owned	2 to 15	2,268,862			2,516,685
Satellites - acquired under capital leases	10 to 15	899,310			916,820
Construction in progress	—	174,046			149,570
Total property and equipment		5,188,850			5,305,002
Accumulated depreciation		(2,546,186		)	(2,551,904		)
Property and equipment, net		$	2,642,664		$	2,753,098

Construction in progress consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs	$	113,658	$	101,733
Satellite related equipment	25,738		28,358
Other	34,650		19,479
Construction in progress	$	174,046	$	149,570

Construction in progress as of June 30, 2018 included payments related to our payload on Telesat T19V satellite, which launched in July 2018 and is expected to be placed in service during the fourth quarter of 2018. We were not party to the construction contract for this satellite.

Depreciation expense associated with our property and equipment consisted of the following:



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Satellites	$	61,910	$	57,322	$	120,943	$	109,466
Furniture, fixtures, equipment and other	18,633		15,875		39,407		32,557
Customer rental equipment	42,875		34,081		86,323		64,677
Buildings and improvements	3,967		5,502		5,265		6,759
Total depreciation expense	$	127,385	$	112,780	$	251,938	$	213,459

Satellites

As of June 30, 2018, our satellite fleet consisted of 14 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. As of June 30, 2018, four of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over their respective lease terms.

Recent Developments

EchoStar I and EchoStar VI. The EchoStar I and EchoStar VI satellites were removed from their orbital locations and retired from commercial service in January 2018 and May 2018, respectively. The retirement of these satellites has not had, and is not expected to have, a material impact on our results of operations or financial position.

EchoStar 105/SES-11. The EchoStar 105/SES-11 satellite was launched in October 2017 and was placed into service in November 2017 at the 105 degree west longitude orbital location. Pursuant to agreements that we entered into in August 2014, we funded substantially all construction, launch and other costs associated with the EchoStar 105/SES-11 satellite and transferred the C-, Ku- and Ka-band payloads to two affiliates of SES Americom, Inc. (“SES”) after the launch date, while retaining the right to use the entire Ku-band payload on the satellite for an initial ten-year term, with an option for us to renew the agreement on a year-to-year basis. In October 2017, we recorded a $77.5 million receivable from SES in Other current assets, representing capitalized costs allocable to certain satellite payloads controlled by SES, and we reduced our carrying amount of the satellite by such amount. In January 2018, we received payment from SES for the receivable plus accrued interest. Our leased Ku-band payload on the EchoStar 105/SES-11 satellite has replaced the capacity we had on the AMC-15 satellite.

Telesat T19V. In September 2015, we entered into agreements pursuant to which affiliates of Telesat Canada will provide to us the Ka-band capacity on the Telesat T19V satellite at the 63 degree west longitude orbital location for a 15-year term.

We were not party to the construction contract. The Telesat T19V satellite was launched in July 2018. We expect this satellite to be placed into service during the fourth quarter of 2018 and to augment the capacity being provided by the EUTELSAT 65 West A and EchoStar XIX satellites in Central and South America.

Satellite Anomalies and Impairments

Our satellites may experience anomalies from time to time, some of which may have a significant adverse effect on their remaining useful lives, the commercial operation of the satellites or our operating results or financial position. We are not aware of any anomalies with respect to our owned or leased satellites that have had any such significant adverse effect during the six months ended June 30, 2018. There can be no assurance, however, that anomalies will not have any such adverse effects in the future. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail.

The EchoStar X satellite experienced anomalies in the past which affected seven solar array circuits. In December 2017, the satellite experienced anomalies which affected one additional solar array circuit reducing the number of functional solar array circuits to 16. As a result of these anomalies, we had a reduction in revenue of $1.1 million and $2.3 million for the three and six months ended June 30, 2018 as compared to the same period in 2017, respectively.

We historically have not carried in-orbit insurance on our satellites because we have assessed that the cost of insurance is not economical relative to the risk of failures. Therefore, we generally bear the risk of any in-orbit failures. Pursuant to the terms of the agreements governing certain portions of our indebtedness, we are required, subject to certain limitations on coverage, to maintain in-orbit insurance for our SPACEWAY 3, EchoStar XVI, and EchoStar XVII satellites. Our other satellites, either in orbit or under construction, are not covered by launch or in-orbit insurance. We will continue to assess circumstances going forward and make insurance decisions on a case-by-case basis.

We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Certain of the anomalies previously disclosed may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, certain of these anomalies are not necessarily considered to be significant events that would require a test of recoverability.

Goodwill	6 Months Ended
Goodwill	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	GOODWILL Goodwill The excess of the cost of an acquired business over the fair values of net tangible and identifiable intangible assets at the time of the acquisition is recorded as goodwill. Goodwill is assigned to the reporting units within our operating segments and is subject to impairment testing annually, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. As of June 30, 2018 and December 31, 2017, all of our goodwill was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Based on our impairment testing in the second quarter of 2018, our goodwill is considered to be not impaired.

- 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

Investment in Unconsolidated Entities Investment in Unconsolidated Entities

6 Months Ended

Jun. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entities

INVESTMENTS IN UNCONSOLIDATED ENTITIES

We have strategic investments in certain non-publicly traded equity securities that do not have a readily determinable fair value. We account for certain of these investments using the equity method. We accounted for other investments in such equity securities using the cost method of accounting prior to January 1, 2018. In connection with our adoption of the New Investment Standard effective January 1, 2018 (see Note 2), we elected to measure our equity securities without a readily determinable fair value, other than those accounted for using the equity method, at cost adjusted for changes resulting from impairments, if any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer. For the six months ended June 30, 2018, we did not identify any observable price changes requiring an adjustment to our investments.

Our investments in unconsolidated entities consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Investments in unconsolidated entities:
Equity method	$	12,879	$	15,149
Other equity investments without a readily determinable fair value	15,438		15,438
Total investments in unconsolidated entities	$	28,317	$	30,587

Debt and Capital Lease Obligations

6 Months Ended

Jun. 30, 2018

Debt and Capital Lease Obligations [Abstract]

Debt and Capital Lease Obligations

DEBT AND CAPITAL LEASE OBLIGATIONS

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



	Effective Interest Rate	As of
		June 30, 2018					December 31, 2017
		Carrying Amount			Fair Value		Carrying Amount			Fair Value
		(In thousands)
Senior Secured Notes:
6 1/2% Senior Secured Notes due 2019	6.959%	$	990,000		$	1,014,651	$	990,000		$	1,042,609
5 1/4% Senior Secured Notes due 2026	5.320%	750,000			707,828		750,000			769,305
Senior Unsecured Notes:
7 5/8% Senior Unsecured Notes due 2021	8.062%	900,000			962,586		900,000			992,745
6 5/8% Senior Unsecured Notes due 2026	6.688%	750,000			698,693		750,000			791,865
Less: Unamortized debt issuance costs		(20,952		)	—		(24,857		)	—
Subtotal		3,369,048			$	3,383,758	3,365,143			$	3,596,524
Capital lease obligations		251,245					269,701
Total debt and capital lease obligations		3,620,293					3,634,844
Less: Current portion		(1,028,119		)			(40,631		)
Long-term debt and capital lease obligations, net		$	2,592,174				$	3,594,213

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our interim income tax provision and our interim estimate of our annual effective tax rate are influenced by several factors, including foreign losses and capital gains and losses for which related deferred tax assets are offset by a valuation allowance, changes in tax laws and relative changes in unrecognized tax benefits. Additionally, our effective tax rate can be affected by the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income or loss is lower. Our income tax provision was approximately $10.5 million for the three months ended June 30, 2018 compared to an income tax benefit of $0.5 million for the three months ended June 30, 2017. Our estimated effective income tax rate was 20.5% and 245.9% for the three months ended June 30, 2018 and 2017, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended June 30, 2018 were primarily due to the change in our valuation allowance associated with net unrealized losses that are capital in nature. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended June 30, 2017 were primarily due to various permanent tax differences. Income tax provision was approximately $18.2 million for the six months ended June 30, 2018 compared to an income tax benefit of $4.1 million for the six months ended June 30, 2017. Our estimated effective income tax rate was 23.0% and (72.6)% for the six months ended June 30, 2018 and 2017, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the six months ended June 30, 2018 were primarily due to various permanent tax differences, the impact of state and local taxes, increase in our valuation allowance associated with certain foreign losses, and the change in our valuation allowance associated with net unrealized losses that are capital in nature. For the six months ended June 30, 2017, the variations in our effective tax rate from the U.S. federal statutory rate were primarily due to the recognition of a one-time tax benefit for the revaluation of our deferred tax assets and liabilities due to a change in our state effective tax rate as a result of the Share Exchange. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), we made reasonable estimates of the effects and recorded provisional amounts in our accompanying condensed consolidated financial statements. See Note 10, Income Taxes to our consolidated financial statements included in our Form 10-K for the year ended December 31, 2017 for a summary of the benefit that we have provisionally recorded to reflect the change in the value of our deferred tax assets and liabilities resulting from the 2017 Tax Act. The tax effects of the 2017 Tax Act that we recorded in our financial statements for the year ended December 31, 2017 remain provisional and we have not made any adjustments to such provisional amounts in the six months ended June 30, 2018. As we collect and prepare necessary data, and interpret the 2017 Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”) or other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustment may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Commitments As of June 30, 2018, our satellite-related obligations were approximately $562.0 million. Our satellite-related obligations primarily include payments pursuant to regulatory authorizations; executory costs for our capital lease satellites; costs under agreements to lease satellite capacity; and in-orbit incentives relating to certain satellites; as well as commitments for long-term satellite operating leases and satellite service arrangements. Contingencies Patents and Intellectual Property Many entities, including some of our competitors, have or may have in the future patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that we offer. We may not be aware of all patents and other intellectual property rights that our products and services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to our products and services. We cannot be certain that these persons do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement and Share Exchange In connection with DISH Network’s distribution to EchoStar in 2008 of its digital set-top box business, certain infrastructure, and other assets and related liabilities, including certain satellites, uplink and satellite transmission assets and real estate (the “Spin-off”), EchoStar entered into a separation agreement with DISH Network that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar assumed certain liabilities that relate to its and our business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar and its subsidiaries will only be liable for their acts or omissions following the Spin-off and DISH Network will indemnify EchoStar and its subsidiaries for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. Additionally, in connection with the Share Exchange, EchoStar and certain of its subsidiaries entered into the Share Exchange Agreement and other agreements which provide, among other things, for the division of certain liabilities, including liabilities relating to taxes, intellectual property and employees and liabilities resulting from litigation and the assumption of certain liabilities that relate to the transferred businesses and assets. These agreements also contain additional indemnification provisions between EchoStar and us and DISH Network for certain pre-existing liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages and/or seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases, management is unable to predict with any degree of certainty the outcome or provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought or specified; (iii) damages are unsupported, indeterminate and/or exaggerated in management’s opinion; (iv) there is uncertainty as to the outcome of pending trials, appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties are involved (as with many patent-related cases). Except as described below, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial condition, operating results or cash flows, though there is no assurance that the resolution and outcomes of these proceedings, individually or in the aggregate, will not be material to our financial condition, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We intend to vigorously defend the proceedings against us. In the event that a court or jury ultimately rules against us, we may be subject to adverse consequences, including, without limitation, substantial damages, which may include treble damages, fines, penalties, compensatory damages and/or other equitable or injunctive relief that could require us to materially modify our business operations or certain products or services that we offer to our consumers. Elbit On January 23, 2015, Elbit Systems Land and C4I LTD and Elbit Systems of America Ltd. (together referred to as “Elbit”) filed a complaint against our subsidiary Hughes Network Systems, L.L.C. (“HNS”), as well as against Black Elk Energy Offshore Operations, LLC, Bluetide Communications, Inc. and Helm Hotels Group, in the U.S. District Court for the Eastern District of Texas, alleging infringement of U.S. Patent Nos. 6,240,073 (the “073 patent”) and 7,245,874 (“874 patent”). The 073 patent is entitled “Reverse Link for a Satellite Communication Network” and the 874 patent is entitled “Infrastructure for Telephony Network.” Elbit alleges that the 073 patent is infringed by broadband satellite systems that practice the Internet Protocol Over Satellite standard. Elbit alleges that the 874 patent is infringed by the manufacture and sale of broadband satellite systems that provide cellular backhaul service via connections to E1 or T1 interfaces at cellular backhaul base stations. On April 2, 2015, Elbit filed an amended complaint removing Helm Hotels Group as a defendant, but making similar allegations against a new defendant, Country Home Investments, Inc. On November 3 and 4, 2015 and January 22, 2016, the defendants filed petitions before the United States Patent and Trademark Office (“USPTO”) challenging the validity of the patents in suit, which the USPTO subsequently declined to institute. On April 13, 2016, the defendants answered Elbit’s complaint. At Elbit’s request, on June 26, 2017, the court dismissed Elbit’s claims of infringement against all parties other than HNS. Trial commenced on July 31, 2017. On August 7, 2017, the jury returned a verdict that the 073 patent was valid and infringed, and awarded Elbit approximately $21.1 million. The jury also found that such infringement of the 073 patent was not willful and that the 874 patent was not infringed. On March 30, 2018, the court ruled on post-trial motions, upholding the jury’s findings and awarding Elbit attorneys’ fees in an amount that has not yet been specified. As a result of pre-judgment interest, costs and unit sales through the 073 patent’s expiration in November 2017, the jury verdict would result in a payment of approximately $28.5 million plus post-judgment interest if not overturned or modified on appeal. Elbit has requested an award of $13.9 million of attorneys’ fees. HNS is contesting Elbit’s claims as inappropriate and unreasonable in light of the court’s decision and prevailing law. On April 27, 2018, HNS filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit and HNS filed its appeal brief to the U.S. Court of Appeals for the Federal Circuit on August 1, 2018. We cannot predict with certainty the outcome of the appeal. As of June 30, 2018, we have recorded an accrual of approximately $2.8 million with respect to this liability. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accruals and such differences could be significant. Realtime Data LLC On May 8, 2015, Realtime Data LLC (“Realtime”) filed suit against EchoStar Corporation and our subsidiary HNS in the U.S. District Court for the Eastern District of Texas alleging infringement of U.S. Patent Nos. 7,378,992 (the “992 patent”), entitled “Content Independent Data Compression Method and System;” 7,415,530 (the “530 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval,” and 8,643,513 (the “513 patent”), entitled “Data Compression System and Methods.” On September 14, 2015, Realtime amended its complaint, additionally alleging infringement of U.S. Patent No. 9,116,908 (the “908 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Realtime is no longer asserting the 992 patent against us. Over April 29, 2016 and May 5, 2016, the defendants filed petitions before the USPTO challenging the validity of the asserted patents. The USPTO instituted proceedings on each of those petitions. The USPTO invalidated the asserted claims of the 513 patent, but Realtime is still asserting this patent against us and may appeal this ruling. The USPTO is still reviewing the 530 patent; however, two of the four claims from that patent asserted against us were invalidated in a separate litigation between Realtime and a third party, which Realtime may appeal. The USPTO did not invalidate the asserted claims of the 908 patent. On February 14, 2017, Realtime filed a second suit against EchoStar Corporation and our subsidiary HNS in the same District Court, alleging infringement of four additional U.S. Patents, Nos. 7,358,867 (the “867 patent”), entitled “Content Independent Data Compression Method and System;” 8,502,707 (the “707 patent”), entitled “Data Compression Systems and Methods;” 8,717,204 (the “204 patent”), entitled “Methods for Encoding and Decoding Data;” and 9,054,728 (the “728 patent”), entitled “Data Compression System and Methods.” In response to petitions filed by third parties, the USPTO has found all remaining asserted claims of the 867 patent to be invalid and certain asserted claims of the 728 patent to not be invalid. The USPTO has instituted proceedings regarding the validity of all asserted claims of the 204 patent. Additional third party petitions challenging the validity of all claims asserted in the 204 and 728 patents are awaiting institution decisions. On February 13, 2018 we filed petitions before the USPTO challenging the validity of all claims asserted against us from the 707 and 204 patents, as well as the one asserted claim of the 728 patent for which the USPTO has not yet instituted a proceeding. These petitions are also awaiting institution decisions at the USPTO. Trial is scheduled for January 21, 2019. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Other In addition to the above actions, we are subject to various other legal proceedings and claims, which arise in the ordinary course of business. As part of our ongoing operations, the Company is subject to various inspections, audits, inquiries, investigations and similar actions by third parties, as well as by governmental/regulatory authorities responsible for enforcing the laws and regulations to which the Company may be subject. Further, under the federal False Claims Act, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the federal government. Some states have adopted similar state whistleblower and false claims provisions. In addition, the Company from time to time receives inquiries from federal, state and foreign agencies regarding compliance with various laws and regulations. In our opinion, the amount of ultimate liability with respect to any of these other actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. The Company also indemnifies its directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for the Company. Additionally, in the normal course of its business, the Company enters into contracts pursuant to which the Company may make a variety of representations and warranties and indemnify the counterparty for certain losses. The Company’s possible exposure under these arrangements cannot be reasonably estimated as this involves the resolution of claims made, or future claims that may be made, against the Company or its officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable.

Segment Reporting

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by our chief operating decision maker (“CODM”), who is our Chief Executive Officer. We primarily operate in two business segments, Hughes and ESS, as described in Note 1.

The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA.

Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. Costs and income associated with these departments and activities are accounted for in the Corporate and Other column in the tables below or in the reconciliation of EBITDA below.

Eliminations of intersegment transactions are included in the Corporate and Other column in the tables below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis.

The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments. Capital expenditures are net of refunds and other receipts related to property and equipment.



	Hughes		ESS			Corporate and Other			Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
External revenue	$	426,306	$	94,904		$	6,386		$	527,596
Intersegment revenue	$	—	$	521		$	(521	)	$	—
Total revenue	$	426,306	$	95,425		$	5,865		$	527,596
EBITDA	$	152,134	$	82,483		$	2,621		$	237,238
Capital expenditures	$	87,511	$	356		$	—		$	87,867
For the three months ended June 30, 2017
External revenue	$	362,403	$	97,945		$	1,917		$	462,265
Intersegment revenue	$	359	$	421		$	(780	)	$	—
Total revenue	$	362,762	$	98,366		$	1,137		$	462,265
EBITDA	$	110,024	$	80,465		$	(11,845	)	$	178,644
Capital expenditures	$	96,529	$	4,640		$	—		$	101,169
For the six months ended June 30, 2018
External revenue	$	826,765	$	191,127		$	12,599		$	1,030,491
Intersegment revenue	$	359	$	1,051		$	(1,410	)	$	—
Total revenue	$	827,124	$	192,178		$	11,189		$	1,030,491
EBITDA	$	288,847	$	166,633		$	(3,753	)	$	451,727
Capital expenditures	$	174,802	$	(76,682	)	$	—		$	98,120
For the six months ended June 30, 2017
External revenue	$	691,013	$	198,096		$	3,274		$	892,383
Intersegment revenue	$	1,069	$	596		$	(1,665	)	$	—
Total revenue	$	692,082	$	198,692		$	1,609		$	892,383
EBITDA	$	210,876	$	163,528		$	(23,991	)	$	350,413
Capital expenditures	$	162,196	$	13,148		$	—		$	175,344

The following table reconciles total consolidated EBITDA to reported Income before income taxes in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):



	For the three months ended June 30,						For the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
EBITDA	$	237,238		$	178,644		$	451,727		$	350,413
Interest income and expense, net	(49,836		)	(54,290		)	(102,870		)	(108,286		)
Depreciation and amortization	(136,708		)	(124,743		)	(270,426		)	(236,963		)
Net income attributable to noncontrolling interests	462			182			842			474
Income before income taxes	$	51,156		$	(207	)	$	79,273		$	5,638

Disaggregation of Revenue

In the following tables, revenue is disaggregated by segment, primary geographic market and nature of the products and services.

Geographic Information

The following table disaggregates revenue from customer contracts attributed to North America and other foreign locations as well as by segment, based on the location where the goods or services are provided. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America and the Middle East.



	Hughes		ESS		Corporate and Other		Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
North America:
U.S.	$	347,575	$	89,412	$	1,199	$	438,186
Canada and Mexico	15,132		5,837		—		20,969
All other	63,599		176		4,666		68,441
Total revenue	$	426,306	$	95,425	$	5,865	$	527,596

For the six months ended June 30, 2018
North America:
U.S.	$	668,013	$	180,153	$	2,405	$	850,571
Canada and Mexico	30,714		11,674		—		42,388
All other	128,397		351		8,784		137,532
Total revenue	$	827,124	$	192,178	$	11,189	$	1,030,491

Nature of Products and Services

The following table disaggregates revenue based on the nature of products and services and by segment.



	Hughes		ESS		Corporate and Other		Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
Equipment	$	50,341	$	—	$	—	$	50,341
Services	310,225		6,890		329		317,444
Design, development and construction services	13,876		—		—		13,876
Revenue from sales and services	374,442		6,890		329		381,661
Leasing income	51,864		88,535		5,536		145,935
Total revenue	$	426,306	$	95,425	$	5,865	$	527,596

For the six months ended June 30, 2018
Equipment	$	93,288	$	—	$	—	$	93,288
Services	608,010		14,293		704		623,007
Design, development and construction services	30,052		—		—		30,052
Revenue from sales and services	731,350		14,293		704		746,347
Leasing income	95,774		177,885		10,485		284,144
Total revenue	$	827,124	$	192,178	$	11,189	$	1,030,491

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	EchoStar We and EchoStar have agreed that we shall have the right, but not the obligation, to receive from EchoStar certain corporate services, including among other things: treasury, tax, accounting and reporting, risk management, cybersecurity, legal, internal audit, human resources, and information technology. These services are generally provided at cost. Effective March 2017, and as a result of the Share Exchange Agreement, we implemented a new methodology for determining the cost of these services. We may terminate a particular service we receive from EchoStar for any reason upon at least 30 days’ notice. We recorded expenses for services received from EchoStar of $5.2 million and $6.5 million for the three months ended June 30, 2018 and 2017, respectively, and $9.6 million and $11.5 million for the six months ended June 30, 2018 and 2017, respectively. In addition, we occupy certain office space in buildings owned or leased by EchoStar and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy. We participate in certain of EchoStar’s shared services arrangements for its subsidiaries in the ordinary course of business, including arrangements for payroll, accounts payable and cash management. From time to time in connection with the processing of transactions under these arrangements, we may pay or receive amounts attributable to other domestic subsidiaries of EchoStar. We report net payments on behalf of other subsidiaries in Advances to affiliates, net within current assets and we report net receipts on behalf of other subsidiaries in Advances from affiliates, net within current liabilities in our Condensed Consolidated Balance Sheets. No repayment schedule for these net advances has been determined. EchoStar and certain of its subsidiaries have provided cash advances to certain of our foreign subsidiaries to fund certain expenditures pursuant to loan agreements that mature in 2021 and 2022. Advances under these agreements bear interest at annual rates ranging from one to three percent, subject to periodic adjustment based on the one-year U.S. LIBOR rate. We report amounts payable under these agreements in Advances from affiliates within noncurrent liabilities in our Condensed Consolidated Balance Sheets. Contribution of EchoStar XIX Satellite. On February 1, 2017, EchoStar contributed the EchoStar XIX satellite and assigned the related construction contract with the satellite manufacturer to us. We recorded a $349.3 million increase in Additional paid-in capital, reflecting EchoStar’s $514.4 million carrying amount of the satellite, including capitalized interest that was previously charged to expense in our consolidated financial statements, less related deferred taxes of $165.1 million. EchoStar XXI and EchoStar XXIII Launch Facilitation and Operational Control Agreements. As part of applying for launch licenses for the EchoStar XXI and XXIII satellites through the UK Space Agency, our subsidiary, Hughes Network Systems, Ltd. (“HNS Ltd.”) and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into agreements in June 2015 and March 2016 to transfer to HNS Ltd. EOC’s launch service contracts for the EchoStar XXI and EchoStar XXIII satellites, respectively, and to grant HNS Ltd. certain rights to control the in-orbit operations of these satellites. EOC retained ownership of the satellites and agreed to make additional payments to HNS Ltd. for amounts that HNS Ltd. is required to pay under both launch service contracts. In 2016, we recorded additions to Other noncurrent assets, net and corresponding increases in Additional paid-in capital in our Condensed Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contracts prior to the transfer dates and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII and the EchoStar XXI satellites were successfully launched in March 2017 and June 2017, respectively. We recorded decreases in Other noncurrent assets, net and Additional paid-in capital of $61.8 million and $83.3 million, respectively, representing the carrying amounts of the launch service contracts at the time of launch to reflect the consumption of the contracts’ economic benefits by EOC, the owner of the satellites. Share Exchange Agreement. Prior to consummation of the Share Exchange, EchoStar was required to complete steps necessary for the transferring of certain assets and liabilities to DISH and certain of its subsidiaries. As part of these steps, subsidiaries of EchoStar that, prior to the consummation of the Share Exchange, owned EchoStar’s business of providing online video delivery and satellite video delivery for broadcasters and pay-TV operators, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services and related assets and liabilities were contributed to one of our subsidiaries in consideration for additional shares of HSS’ common stock that were then issued to a subsidiary of EchoStar. Certain data center assets that were included in the contribution of certain assets and liabilities to one of our subsidiaries were not included in the Share Exchange and continue to be owned by one of our subsidiaries and are pledged as collateral to support our obligations under the indentures relating to our 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Note”) and our 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes). EchoStar Mobile Limited Service Agreements. Certain of our subsidiaries provide services and lease equipment to subsidiaries of EchoStar to support the business of EchoStar Mobile Limited, a subsidiary of EchoStar that is licensed by the European Union and its member states (“EU”) to provide mobile satellite services and complementary ground component services covering the entire EU using S-band spectrum. Generally, the amounts EchoStar’s subsidiaries pay for these services are based on cost plus a fixed margin. We recorded revenue in Services and other revenue - other of $4.7 million and zero for the three months ended June 30, 2018 and 2017, respectively, and $8.8 million and zero for the six months ended June 30, 2018 and 2017, respectively, related to these services. DBS Transponder Lease. EchoStar leases satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021. At such time, EchoStar has certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. We recognized revenue in connection with this agreement of approximately $5.8 million for each of the three months ended June 30, 2018 and 2017, and $11.7 million for each of the six months ended June 30, 2018 and 2017. As of June 30, 2018 and December 31, 2017, we had related trade accounts receivable of approximately $5.9 million and $7.6 million, respectively. DISH Network Following the Spin-off, EchoStar and DISH have operated as separate publicly-traded companies. However, prior to the consummation of the Share Exchange on February 28, 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In addition, a substantial majority of the voting power of the shares of each of EchoStar and DISH is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. In connection with and following both the Spin-off and the Share Exchange, EchoStar, we and certain other of EchoStar’s subsidiaries and DISH and certain of its subsidiaries entered into certain agreements pursuant to which we and EchoStar obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us and EchoStar; and we and DISH Network indemnify each other against certain liabilities arising from our respective businesses. We and/or EchoStar also may enter into additional agreements with DISH Network in the future. Generally, the amounts we or DISH Network pay for products and services provided under the agreements are based on cost plus a fixed margin (unless noted differently below or in our most recent Form 10-K), which varies depending on the nature of the products and services provided. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. Services and Other Revenue — DISH Network Satellite Capacity Leased to DISH Network. Since the Spin-off, we have entered into certain agreements to lease satellite capacity pursuant to which we provide satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite and the length of the service arrangements. The terms of each service arrangement is set forth below: EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction, described below in Other agreements - DISH Network, in March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. These agreements to lease satellite capacity generally terminate upon the earlier of: (i) the end of life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. DISH Network generally has the option to renew each agreement to lease satellite capacity 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. The agreement to lease satellite capacity on the EchoStar VII satellite expired at the end of June 2018. EchoStar IX. Effective January 2008, DISH Network began leasing satellite capacity from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue leasing satellite capacity from us on the EchoStar IX satellite on a month-to-month basis. EchoStar XII. DISH Network leased satellite capacity from us on the EchoStar XII satellite. The agreement to lease satellite capacity expired at the end of September 2017. EchoStar XVI. In December 2009, we entered into an initial ten-year agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network has leased satellite capacity from us on the EchoStar XVI satellite since January 2013. Effective December 2012, we and DISH Network amended the agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and DISH Network further amended the agreement to, among other things, extend the initial term by one additional year through January 2018 and to reduce the term of the first renewal option by one year. In May 2017, DISH Network renewed the agreement for five-years to January 2023. DISH Network has the option to renew for an additional five-year period prior to expiration of the current term. There can be no assurance that such option to renew this agreement will be exercised. In the event that DISH Network does not exercise its five-year renewal option, DISH Network has the option to purchase the EchoStar XVI satellite for a certain price. If DISH Network does not elect to purchase the EchoStar XVI satellite at that time, we may sell the EchoStar XVI satellite to a third party and DISH Network is required to pay us a certain amount in the event we are not able to sell the EchoStar XVI satellite for more than a certain amount. In May 2018, we and DISH Network further amended the agreement to allow DISH Network to place and use certain satellites at the 61.5 west longitude orbital location for backup satellite capacity on an interim basis in the event of certain failures of the EchoStar XVI satellite. Nimiq 5 Agreement. In September 2009, we entered into a fifteen-year agreement with Telesat Canada to lease satellite capacity from Telesat Canada on all 32 direct broadcast satellite (“DBS”) transponders on the Nimiq 5 satellite at the 72.7 degree west longitude orbital location (the “Telesat Transponder Agreement”). In September 2009, we also entered into an agreement with DISH Network, pursuant to which DISH Network leases satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network makes certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service, and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire in October 2019. Upon expiration of the initial term, DISH Network has the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end of life of the Nimiq 5 satellite. Upon in-orbit failure or end of life of the Nimiq 5 satellite, and in certain other circumstances, DISH Network has certain rights to lease satellite capacity 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 lease satellite capacity on a replacement satellite. QuetzSat-1 Agreement. In November 2008, we entered into a ten-year agreement to lease satellite capacity from SES Latin America, which provides, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leases from us satellite capacity on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In February 2013, EchoStar and DISH Network entered into an agreement pursuant to which EchoStar leases certain satellite capacity from DISH Network on five DBS transponders on the QuetzSat-1 satellite. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. Under the terms of our contractual arrangements with DISH Network, we began leasing satellite capacity to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue leasing such capacity 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 lease satellite capacity 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 lease satellite capacity on a replacement satellite. 103 Degree Orbital Location/SES-3. In May 2012, we entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree west longitude orbital location (the “103 Spectrum Rights”). In June 2013, we and DISH Network entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which DISH Network may use and develop the 103 Spectrum Rights. Effective in March 2018, DISH Network exercised its right to terminate the DISH 103 Spectrum Development Agreement and we exercised our right to terminate the 103 Spectrum Development Agreement. In connection with the 103 Spectrum Development Agreement, in May 2012, we also entered into a ten-year agreement with Ciel pursuant to which we leased certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree west longitude orbital location (the “Ciel 103 Agreement”). In June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network leased certain satellite capacity from us on the SES-3 satellite (the “DISH 103 Agreement”). Under the terms of the DISH 103 Agreement, DISH Network made certain monthly payments to us through the service term. Effective in March 2018, DISH Network exercised its right to terminate the DISH 103 Agreement and we exercised our right to terminate the Ciel 103 Agreement. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network for a period ending in December 2016 (the “TT&C Agreement”). In November 2016, we and DISH Network amended the TT&C Agreement to extend the term for one year through December 2017. In December 2017, we and DISH Network amended the TT&C Agreement to extend the term for one month through January 2018. In February 2018, we and DISH Network amended the TT&C Agreement to, among other things, extend the term through February 2023. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. DISH Network is able to terminate the TT&C Agreement for any reason upon 12 months’ notice. In connection with the Satellite and Tracking Stock Transaction, described below in Other agreements - DISH Network, in February 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 2014, we provide TT&C services for the D-1 and EchoStar XV satellites; however, for the period that we received satellite services on the EchoStar XV satellite from DISH Network, we waived the fees for the TT&C services on the EchoStar XV satellite. Effective August 2016, we provide TT&C services to DISH Network for the EchoStar XVIII satellite. Real Estate Lease. Prior to the Share Exchange, EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we amended the agreement to (i) terminate the lease for the transferred space and (ii) provide for a continued lease to DISH Network of the portion of the property contributed to us for a period ending in December 2031. The rent on a per square foot basis for the lease is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and DISH Network is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. After December 2031, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate upon 30 days’ notice. TerreStar Agreement. In March 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar Networks Inc. (“TerreStar”). Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and the completion of the acquisition of all of the outstanding equity of Hughes Communications, Inc. on June 8, 2011, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. In December 2017, we and DISH Network amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DISH Network generally has the right to continue to receive warranty services from us for our products on a month-to-month basis unless terminated by DISH Network upon at least 21 days’ written notice to us. DISH Network generally has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis unless operations and maintenance services are terminated by DISH Network upon at least 90 days’ written notice to us. The provision of hosting services will continue until May 2022 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. In addition, DISH Network generally may terminate any and all services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement. Effective October 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. In February 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America, Inc. (“DBSD North America”). Prior to DISH Network’s acquisition of DBSD North America and EchoStar’s completion of the acquisition of all of the outstanding equity of Hughes Communications, Inc. on June 8, 2011, DBSD North America and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. In December 2017, we and DBSD North America amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DBSD North America generally has the right to continue to receive warranty services from us on a month-to-month basis until February 2019, unless terminated by DBSD North America upon at least 21 days’ written notice to us, and the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis, unless terminated by DBSD North America upon at least 120 days’ written notice to us. The provision of hosting services will continue until February 2022 and will automatically renew for an additional five-year period until February 2027 unless terminated by DBSD North America upon at least 180 days’ written notice to us. In addition, DBSD North America generally may terminate any and all such services for convenience, subject to providing us with prior notice and/or payment of termination charges. RUS Implementation Agreement. In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH’s indirect, wholly-owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the U.S. Department of Agriculture to receive up to approximately $14.1 million in broadband stimulus grant funds. Effective November 2011, HNS and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which HNS provided certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. While the RUS Agreement expired in June 2013 when the broadband stimulus grant funds were exhausted, HNS is required to continue providing services to DISH Broadband’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. General and Administrative Expenses — DISH Network Amended and Restated Professional Services Agreement. In connection with the Spin-off, EchoStar entered into various agreements with DISH Network including a transition services agreement, satellite procurement agreement and services agreement, which all expired in January 2010 and were replaced by a professional services agreement (the “Professional Services Agreement”). In January 2010, EchoStar and DISH Network agreed that EchoStar and its subsidiaries shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under a transition services agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, EchoStar and DISH Network agreed that DISH Network would continue to have the right, but not the obligation, to engage EchoStar and its subsidiaries to manage the process of procuring new satellite capacity for DISH Network (previously provided under a satellite procurement agreement), receive logistics, procurement and quality assurance services from EchoStar and its subsidiaries (previously provided under a services agreement) and other support services. In connection with the consummation of the Share Exchange, EchoStar and DISH amended and restated the Professional Services Agreement (the “Amended and Restated Professional Services Agreement”) to provide that EchoStar and its subsidiaries and DISH Network shall have the right to receive additional services that either EchoStar and its subsidiaries or DISH Network may require as a result of the Share Exchange, including access to antennas owned by DISH Network for our use in performing TT&C services and maintenance and support services for our antennas. A portion of these costs and expenses have been allocated to us in the manner described above under the caption “EchoStar.” The term of the Amended and Restated Professional Services Agreement is through January 2019 and renews automatically for successive one-year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days’ notice. However, either party may generally terminate the Amended and Restated Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days’ notice, unless the statement of work for particular services states otherwise. Certain services being provided for under the Amended and Restated Professional Services Agreement may survive the termination of the agreement. Real Estate Lease from DISH Network. In connection with the Share Exchange, effective March 2017, we sublease from DISH Network certain space at 796 East Utah Valley Drive in American Fork, Utah for a period ending in August 2017. We exercised our option to renew this sublease for a five-year period ending in August 2022. The rent on a per square foot basis for the lease is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. Collocation and Antenna Space Agreements. We and DISH Network have entered into an agreement pursuant to which DISH Network provides us with collocation space in El Paso, Texas. This agreement was for an initial period ending in August 2015, and provides us with renewal options for four consecutive years. Effective August 2015, we exercised our first renewal option for a period ending in August 2018 and in April 2018 we exercised our second renewal option for a period ending in August 2021. In connection with the Share Exchange, effective March 2017, we also entered into certain agreements pursuant to which DISH Network provides collocation and antenna space to EchoStar through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Spokane, Washington; and Englewood, Colorado. In August 2017, we and DISH Network also entered into certain other agreements pursuant to which DISH Network provides additional collocation and antenna space to EchoStar in Monee, Illinois and Spokane, Washington through August 2022. We generally may renew our collocation and antenna space agreements for three-year periods by providing DISH Network with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. We may terminate certain of these agreements with 180 days’ prior written notice. The fees for the services provided under these agreements depend on the number of racks leased at the location. Other Agreements — DISH Network Satellite and Tracking Stock Transaction. In February 2014, we and EchoStar entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) in March 2014, EchoStar and HSS issued the Tracking Stock to DISH Network in exchange for five satellites owned by DISH Network (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) (including assumption of related in-orbit incentive obligations) and approximately $11.4 million in cash; and (ii) in March 2014, DISH Network began receiving certain satellite services from us as discussed above on these five satellites (collectively, the “Satellite and Tracking Stock Transaction.”) The Tracking Stock was retired in March 2017 and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Share Exchange Agreement. On January 31, 2017, EchoStar and certain of its subsidiaries entered into the Share Exchange Agreement with DISH and certain of its subsidiaries, pursuant to which, on February 28, 2017, EchoStar and its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange on February 28, 2017, EchoStar no longer operates the transferred EchoStar Technologies businesses and the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Pursuant to the Share Exchange Agreement, EchoStar transferred certain assets, investments in joint ventures, spectrum licenses and real estate properties and DISH Network assumed certain liabilities relating to the transferred assets and businesses. The Share Exchange Agreement contains customary representations and warranties by the parties, including representations by EchoStar related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. EchoStar and DISH Network have also agreed to customary indemnification provisions whereby each party indemnifies the other against certain losses with respect to breaches of representations, warranties or covenants and certain liabilities and if certain actions undertaken by EchoStar or DISH causes the transaction to be taxable to the other party after closing. See Note 1 for further information. Hughes Broadband Master Services Agreement. In March 2017, HNS and DISH Network L.L.C. (“DNLLC”), a wholly-owned subsidiary of DISH, entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for the Hughes service and related equipment and other telecommunication services and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the Hughes Broadband MSA, HNS and DNLLC make certain payments to each other relating to sales, upgrades, purchases and installation services. The Hughes Broadband MSA has an initial term of five years until March 2022 with automatic renewal for successive one- year terms. After the first anniversary, either party has the ability to terminate the Hughes Broadband MSA, in whole or in part, for any reason upon at least 90 days’ notice to the other party. Upon expiration or termination of the Hughes Broadband MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $6.2 million and $4.8 million for the three months ended June 30, 2018 and 2017, respectively, and $19.9 million and $4.8 million for the six months ended June 30, 2018 and 2017, respectively. Intellectual Property and Technology License Agreement. Effective March 2017 in connection with the Share Exchange, EchoStar and DISH Network entered into an Intellectual Property and Technology License Agreement (“IPTLA”) pursuant to which EchoStar and DISH and their respective subsidiaries license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, EchoStar granted to DISH Network a license to EchoStar and its subsidiaries’ intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the businesses acquired pursuant to the Share Exchange, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to EchoStar and its subsidiaries, among other things, for the continued use of all intellectual property and technology that is used in EchoStar and its subsidiaries’ retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange. Tax Matters Agreement. Effective March 2017, in connection with the Share Exchange, EchoStar and DISH entered into a tax matters agreement. This agreement governs certain rights, responsibilities and obligations of EchoStar and its subsidiaries with respect to taxes of the transferred businesses pursuant to the Share Exchange. Generally, EchoStar is responsible for all tax returns and tax liabilities for the transferred businesses and assets for periods prior to the Share Exchange and DISH Network is responsible for all tax returns and tax liabilities for the transferred businesses and assets from and after the Share Exchange. Both EchoStar and DISH Network have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both EchoStar and DISH Network have agreed to indemnify each other if there is a breach of any such tax representation or violation of any such tax covenant and that breach or violation results in the Share Exchange not qualifying for tax free treatment for the other party. In addition, DISH Network has agreed to indemnify EchoStar if the transferred businesses are acquired, either directly or indirectly (e.g., via an acquisition of DISH Network), by one or more persons and such acquisition results in the Share Exchange not qualifying for tax free treatment. The tax matters agreement supplements the Tax Sharing Agreement outlined below, which continues in full force and effect. Tax Sharing Agreement. Effective December 2007, EchoStar and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs EchoStar and DISH and their respective subsidiaries’ 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 indemnifies EchoStar and its subsidiaries for such taxes. However, DISH Network is not liable for and does not indemnify EchoStar or its subsidiaries for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended, because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar or its subsidiaries take or fail to take; or (iii) any action that EchoStar or its subsidiaries 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, EchoStar and its subsidiaries 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 terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with EchoStar’s consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, EchoStar and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of EchoStar’s consolidated tax returns. As a result, DISH Network agreed to pay EchoStar an amount that includes the federal tax benefit DISH received as a result of our operations. In August 2018, EchoStar and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Amendment”). Under the Amendment, DISH Network is required to compensate EchoStar for certain past and future excess California research and development tax credits generated by EchoStar and its subsidiaries and used by DISH Network. Caltech. On October 1, 2013, Caltech Institute of Technology (“Caltech”) filed complaints against two of our subsidiaries, Hughes Communications, Inc. and HNS, as well as against DISH and certain of its subsidiaries, in the U.S. District Court for the Central District of California alleging infringement of U.S. Patent Nos. 7,116,710; 7,421,032; 7,916,781; and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech asserted that encoding data as specified by the DVB-S2 standard infringed each of the asserted patents. Caltech claimed that certain of our Hughes segment’s satellite broadband products and services, infringed the asserted patents by implementing the DVB-S2 standard. Pursuant to a settlement agreement among us, DISH and Caltech, in May 2016, Caltech dismissed with prejudice all of its claims in these actions. Other Agreements Hughes Systique Corporation (“Hughes Systique”) We contract with Hughes Systique for software development services. In addition to our 43.7% ownership in Hughes Systique, Mr. Pradman Kaul, the President of Hughes Communications, Inc. and a member of EchoStar’s board of directors, and his brother, who is the Chief Executive Officer and President of Hughes Systique, in the aggregate, own approximately 25.6%, on an undiluted basis, of Hughes Systique’s outstanding shares as of June 30, 2018. Furthermore, Mr. Pradman Kaul serves on the board of directors of Hughes Systique. Hughes Systique is a variable interest entity and we are considered the primary beneficiary of Hughes Systique due to, among other factors, our ability to direct the activities that most significantly impact the economic performance of Hughes Systique. As a result, we consolidate Hughes Systique’s financial statements in our accompanying condensed consolidated financial statements. Deluxe/EchoStar LLC We own 50.0% of Deluxe/EchoStar LLC (“Deluxe”), a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada. We account for our investment in Deluxe using the equity method. We recognized revenue from Deluxe for transponder services and the sale of broadband equipment of approximately $1.1 million for each of the three months ended June 30, 2018 and 2017, and $2.2 million and $2.4 million for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018 and December 31, 2017, we had trade accounts receivable from Deluxe of approximately $1.0 million and $1.1 million, respectively. AsiaSat We contract with AsiaSat Telecommunications Inc. (“AsiaSat”) for the use of transponder capacity on one of AsiaSat's satellites. Mr. William David Wade, who joined EchoStar’s board of directors in February 2017, served as the Chief Executive Officer of AsiaSat in 2016 and as a senior advisor to the Chief Executive Officer of AsiaSat through March 2017. We incurred expenses payable to AsiaSat under this agreement of approximately zero for the three and six months ended June 30, 2017. Global IP In May 2017, one of our subsidiaries entered into an agreement with Global-IP Cayman (“Global IP”) providing for the sale of certain equipment and services to Global IP. Mr. William David Wade, a member of EchoStar’s board of directors, serves as a member of the board of directors of Global IP and as an executive advisor to the Chief Executive Officer of Global IP. In August 2018, we and Global IP amended the agreement to (i) change certain of the equipment and services to be provided to Global IP; (ii) modify certain payment terms; (iii) provide Global IP an option to use one of our test lab facilities; and (iv) effectuate the assignment of the agreement from Global IP to one of its wholly-owned subsidiaries. We recognized revenue of approximately $0.5 million and zero for the three months ended June 30, 2018 and 2017, respectively, and $0.6 million and zero from Global IP under this agreement for the six months ended June 30, 2018 and 2017, respectively. TerreStar Solutions DISH Network owns approximately 33% of TerreStar Solutions, Inc. (“TSI”). In May 2018, TSI and one of our subsidiaries entered into an equipment and services agreement pursuant to which we design, manufacture and install upgraded ground communications network equipment for TSI’s network and provides, among other things, warranty and support services. We recognized revenue of approximately $0.3 million for each of the three and six months ended June 30, 2018. As of June 30, 2018, we had trade accounts receivable from TSI of approximately $1.1 million.

Supplemental Guarantor and Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 2018

Supplemental Guarantor and Non-Guarantor Financial Information

Supplemental Guarantor and Non-Guarantor Financial Information

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

Certain of our wholly-owned subsidiaries (together, the “Guarantor Subsidiaries”) have fully and unconditionally guaranteed, on a joint and several basis, the obligations of our 2019 Senior Secured Notes and 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), which were issued on June 1, 2011, and our 2026 Senior Secured Notes and 6.625% Senior Unsecured Notes due 2016, which were issued on July 27, 2016 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”). See Note 10 for further information on the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 Notes.

In lieu of separate financial statements of the Guarantor Subsidiaries, accompanying condensed consolidating financial information prepared in accordance with Rule 3-10(f) of Regulation S-X is presented below, including the accompanying condensed balance sheet information, the accompanying condensed statement of operations and comprehensive income (loss) information and the accompanying condensed statement of cash flows information of HSS, the Guarantor Subsidiaries on a combined basis and the non-guarantor subsidiaries of HSS on a combined basis and the eliminations necessary to arrive at the corresponding information of HSS on a consolidated basis.

The indentures governing the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 Notes contain restrictive covenants that, among other things, impose limitations on our ability and the ability of certain of our subsidiaries to pay dividends or make distributions, incur additional debt, make certain investments, create liens or enter into sale and leaseback transactions, merge or consolidate with another company, transfer and sell assets, enter into transactions with affiliates or allow to exist certain restrictions on the ability of certain of our subsidiaries to pay dividends, make distributions, make other payments, or transfer assets to us.

The accompanying condensed consolidating financial information presented below should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto included herein.Condensed Consolidating Balance Sheet as of June 30, 2018

(In thousands)



	HSS		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	1,439,619	$	42,385	$	27,234	$	—		$	1,509,238
Marketable investment securities, at fair value	991,913		1,213		—		—			993,126
Trade accounts receivable and contract assets, net	—		122,726		64,230		—			186,956
Trade accounts receivable - DISH Network, net	—		25,217		486		—			25,703
Inventory	—		54,030		27,358		—			81,388
Advances to affiliates, net	7,829		399,924		17,431		(321,553		)	103,631
Other current assets	109		25,111		34,792		(87		)	59,925
Total current assets	2,439,470		670,606		171,531		(321,640		)	2,959,967
Property and equipment, net	—		2,371,631		271,033		—			2,642,664
Regulatory authorizations	—		465,658		—		—			465,658
Goodwill	—		504,173		—		—			504,173
Other intangible assets, net	—		51,267		—		—			51,267
Investments in unconsolidated entities	—		28,317		—		—			28,317
Investment in subsidiaries	3,249,869		187,349		—		(3,437,218		)	—
Advances to affiliates	700		86,661		—		(87,361		)	—
Deferred tax asset	130,728		—		8,229		(130,728		)	8,229
Other noncurrent assets, net	—		228,965		10,708		—			239,673
Total assets	$	5,820,767	$	4,594,627	$	461,501	$	(3,976,947	)	$	6,899,948
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	$	—	$	85,524	$	11,592	$	—		$	97,116
Trade accounts payable - DISH Network	—		445		—		—			445
Current portion of long-term debt and capital lease obligations	985,773		37,888		4,458		—			1,028,119
Advances from affiliates, net	63,264		185,102		73,958		(321,553		)	771
Accrued expenses and other	45,723		132,295		43,259		(87		)	221,190
Total current liabilities	1,094,760		441,254		133,267		(321,640		)	1,347,641
Long-term debt and capital lease obligations, net	2,383,275		207,540		1,359		—			2,592,174
Deferred tax liabilities, net	—		594,493		957		(130,728		)	464,722
Advances from affiliates	—		—		120,886		(87,361		)	33,525
Other non-current liabilities	—		101,884		2,405		—			104,289
Total HSS shareholders’ equity (deficit)	2,342,732		3,249,456		187,762		(3,437,218		)	2,342,732
Noncontrolling interests	—		—		14,865		—			14,865
Total liabilities and shareholders’ equity (deficit)	$	5,820,767	$	4,594,627	$	461,501	$	(3,976,947	)	$	6,899,948

Condensed Consolidating Balance Sheet as of December 31, 2017

(In thousands)



	HSS		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	1,746,878	$	42,373	$	33,310	$	—		$	1,822,561
Marketable investment securities, at fair value	454,500		1,102		—		—			455,602
Trade accounts receivable and contract assets, net	—		133,735		63,105		—			196,840
Trade accounts receivable - DISH Network, net	—		38,286		355		—			38,641
Inventory	—		59,711		23,884		—			83,595
Advances to affiliates, net	119,605		229,488		7,313		(241,548		)	114,858
Other current assets	64		98,890		31,788		(401		)	130,341
Total current assets	2,321,047		603,585		159,755		(241,949		)	2,842,438
Property and equipment, net	—		2,459,703		293,395		—			2,753,098
Regulatory authorizations	—		465,658		—		—			465,658
Goodwill	—		504,173		—		—			504,173
Other intangible assets, net	—		58,582		—		—			58,582
Investments in unconsolidated entities	—		30,587		—		—			30,587
Investment in subsidiaries	3,260,790		204,208		—		(3,464,998		)	—
Advances to affiliates	700		80,744		—		(81,444		)	—
Deferred tax asset	110,546		—		3,700		(110,546		)	3,700
Other noncurrent assets, net	—		185,839		13,275		—			199,114
Total assets	$	5,693,083	$	4,593,079	$	470,125	$	(3,898,937	)	$	6,857,350
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	$	—	$	82,300	$	20,516	$	—		$	102,816
Trade accounts payable - DISH Network	—		3,769		—		—			3,769
Current portion of long-term debt and capital lease obligations	—		35,886		4,745		—			40,631
Advances from affiliates, net	—		185,161		56,864		(241,548		)	477
Accrued expenses and other	43,518		145,362		46,748		(401		)	235,227
Total current liabilities	43,518		452,478		128,873		(241,949		)	382,920
Long-term debt and capital lease obligations, net	3,365,143		226,997		2,073		—			3,594,213
Deferred tax liabilities, net	—		549,217		960		(110,546		)	439,631
Advances from affiliates	—		—		115,159		(81,444		)	33,715
Other non-current liabilities	—		104,249		3,378		—			107,627
Total HSS shareholders’ equity (deficit)	2,284,422		3,260,138		204,860		(3,464,998		)	2,284,422
Noncontrolling interests	—		—		14,822		—			14,822
Total liabilities and shareholders’ equity (deficit)	$	5,693,083	$	4,593,079	$	470,125	$	(3,898,937	)	$	6,857,350

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	96,653		$	487		$	—		$	97,140
Services and other revenue - other	—			331,875			57,379			(9,139		)	380,115
Equipment revenue	—			53,643			4,557			(7,859		)	50,341
Total revenue	—			482,171			62,423			(16,998		)	527,596
Costs and Expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			122,259			36,509			(8,545		)	150,223
Cost of sales - equipment (exclusive of depreciation and amortization)	—			46,217			3,539			(7,891		)	41,865
Selling, general and administrative expenses	—			82,477			11,460			(562		)	93,375
Research and development expenses	—			6,647			—			—			6,647
Depreciation and amortization	—			124,249			12,459			—			136,708
Total costs and expenses	—			381,849			63,967			(16,998		)	428,818
Operating income	—			100,322			(1,544		)	—			98,778
Other Income (Expense):
Interest income	13,768			1,609			508			(1,599		)	14,286
Interest expense, net of amounts capitalized	(57,479		)	(6,574		)	(1,668		)	1,599			(64,122		)
Gains (losses) on investments, net	—			509			—			—			509
Equity in earnings of unconsolidated affiliate	—			1,238			—			—			1,238
Equity in earnings (losses) of subsidiaries, net	74,180			(8,161		)	—			(66,019		)	—
Other, net	3			9,489			(9,025		)	—			467
Total other income (expense), net	30,472			(1,890		)	(10,185		)	(66,019		)	(47,622		)
Income (loss) before income taxes	30,472			98,432			(11,729		)	(66,019		)	51,156
Income tax benefit (provision)	9,759			(24,103		)	3,881			—			(10,463		)
Net income (loss)	40,231			74,329			(7,848		)	(66,019		)	40,693
Less: Net income attributable to noncontrolling interests	—			—			462			—			462
Net income (loss) attributable to HSS	$	40,231		$	74,329		$	(8,310	)	$	(66,019	)	$	40,231
Comprehensive Income (Loss):
Net income (loss)	$	40,231		$	74,329		$	(7,848	)	$	(66,019	)	$	40,693
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(32,314		)	—			(32,314		)
Unrealized gains (losses) on available-for-sale securities and other	470			—			(141		)	—			329
Realized gains on available-for-sale securities in net income	(3		)	—			—			—			(3		)
Equity in other comprehensive income (loss) of subsidiaries, net	(31,870		)	(31,870		)	—			63,740			—
Total other comprehensive income (loss), net of tax	(31,403		)	(31,870		)	(32,455		)	63,740			(31,988		)
Comprehensive income (loss)	8,828			42,459			(40,303		)	(2,279		)	8,705
Less: Comprehensive loss attributable to noncontrolling interests	—			—			(123		)	—			(123		)
Comprehensive income (loss) attributable to HSS	$	8,828		$	42,459		$	(40,180	)	$	(2,279	)	$	8,828

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	110,388		$	533		$	—		$	110,921
Services and other revenue - other	—			248,361			43,611			(6,917		)	285,055
Equipment revenue	—			81,831			5,033			(20,575		)	66,289
Total revenue	—			440,580			49,177			(27,492		)	462,265
Costs and Expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			112,989			29,941			(5,656		)	137,274
Cost of sales - equipment (exclusive of depreciation and amortization)	—			70,297			4,532			(21,167		)	53,662
Selling, general and administrative expenses	—			75,035			11,749			(669		)	86,115
Research and development expenses	—			7,437			—			—			7,437
Depreciation and amortization	—			116,193			8,550			—			124,743
Total costs and expenses	—			381,951			54,772			(27,492		)	409,231
Operating income	—			58,629			(5,595		)	—			53,034
Other Income (Expense):
Interest income	6,733			231			321			(199		)	7,086
Interest expense, net of amounts capitalized	(57,336		)	(4,797		)	558			199			(61,376		)
Gains (losses) on investments, net	—			1,632			—			—			1,632
Equity in earnings of unconsolidated affiliate	—			1,639			—			—			1,639
Equity in earnings (losses) of subsidiaries, net	33,078			(4,438		)	—			(28,640		)	—
Other, net	—			(702		)	(1,520		)	—			(2,222		)
Total other income (expense), net	(17,525		)	(6,435		)	(641		)	(28,640		)	(53,241		)
Income (loss) before income taxes	(17,525		)	52,194			(6,236		)	(28,640		)	(207		)
Income tax benefit (provision)	17,645			(19,026		)	1,890			—			509
Net income (loss)	120			33,168			(4,346		)	(28,640		)	302
Less: Net income attributable to noncontrolling interests	—			—			182			—			182
Net income (loss) attributable to HSS	$	120		$	33,168		$	(4,528	)	$	(28,640	)	$	120
Comprehensive Income (Loss):
Net income (loss)	$	120		$	33,168		$	(4,346	)	$	(28,640	)	$	302
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(6,736		)	—			(6,736		)
Unrealized gains (losses) on available-for-sale securities and other	(21		)	86			(76		)	—			(11		)
Equity in other comprehensive income (loss) of subsidiaries, net	(6,726		)	(6,812		)	—			13,538			—
Total other comprehensive income (loss), net of tax	(6,747		)	(6,726		)	(6,812		)	13,538			(6,747		)
Comprehensive income (loss)	(6,627		)	26,442			(11,158		)	(15,102		)	(6,445		)
Less: Comprehensive income attributable to noncontrolling interests	—			—			182			—			182
Comprehensive income (loss) attributable to HSS	$	(6,627	)	$	26,442		$	(11,340	)	$	(15,102	)	$	(6,627	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Six Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	196,740		$	1,014		$	—		$	197,754
Services and other revenue - other	—			643,983			114,455			(18,989		)	739,449
Equipment revenue	—			100,052			9,164			(15,928		)	93,288
Total revenue	—			940,775			124,633			(34,917		)	1,030,491
Costs and expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			241,585			74,235			(17,942		)	297,878
Cost of sales - equipment (exclusive of depreciation and amortization)	—			89,860			7,004			(15,928		)	80,936
Selling, general and administrative expenses	—			165,869			23,203			(1,047		)	188,025
Research and development expenses	—			13,784			—			—			13,784
Depreciation and amortization	—			245,588			24,838			—			270,426
Total costs and expenses	—			756,686			129,280			(34,917		)	851,049
Operating income	—			184,089			(4,647		)	—			179,442
Other income (expense):
Interest income	24,529			1,925			1,009			(1,798		)	25,665
Interest expense, net of amounts capitalized	(114,924		)	(13,530		)	(1,879		)	1,798			(128,535		)
Gains (losses) on investments, net	—			117			—			—			117
Equity in earnings of unconsolidated affiliate	—			2,730			—			—			2,730
Equity in earnings (losses) of subsidiaries, net	130,439			(11,858		)	—			(118,581		)	—
Other, net	6			9,392			(9,544		)	—			(146		)
Total other income (expense), net	40,050			(11,224		)	(10,414		)	(118,581		)	(100,169		)
Income (loss) before income taxes	40,050			172,865			(15,061		)	(118,581		)	79,273
Income tax benefit (provision)	20,182			(42,187		)	3,806			—			(18,199		)
Net income (loss)	60,232			130,678			(11,255		)	(118,581		)	61,074
Less: Net income attributable to noncontrolling interests	—			—			842			—			842
Net income (loss) attributable to HSS	$	60,232		$	130,678		$	(12,097	)	$	(118,581	)	$	60,232
Comprehensive income (loss):
Net income (loss)	$	60,232		$	130,678		$	(11,255	)	$	(118,581	)	$	61,074
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(30,414		)	—			(30,414		)
Unrealized gains (losses) on available-for-sale securities and other	159			—			(241		)	—			(82		)
Recognition of realized gains (losses) on available-for-sale securities in net income	(3		)	—			—			—			(3		)
Equity in other comprehensive income (loss) of subsidiaries, net	(29,856		)	(29,856		)	—			59,712			—
Total other comprehensive income (loss), net of tax	(29,700		)	(29,856		)	(30,655		)	59,712			(30,499		)
Comprehensive income (loss)	30,532			100,822			(41,910		)	(58,869		)	30,575
Less: Comprehensive income attributable to noncontrolling interests	—			—			43			—			43
Comprehensive income (loss) attributable to HSS	$	30,532		$	100,822		$	(41,953	)	$	(58,869	)	$	30,532

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Six Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	221,692		$	719		$	—		$	222,411
Services and other revenue - other	—			489,733			77,974			(12,429		)	555,278
Equipment revenue	—			133,066			9,710			(28,082		)	114,694
Total revenue	—			844,491			88,403			(40,511		)	892,383
Costs and expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			222,938			59,651			(11,011		)	271,578
Cost of sales - equipment (exclusive of depreciation and amortization)	—			114,704			7,806			(28,027		)	94,483
Selling, general and administrative expenses	—			140,720			21,246			(1,473		)	160,493
Research and development expenses	—			15,142			—			—			15,142
Depreciation and amortization	—			221,640			15,323			—			236,963
Total costs and expenses	—			715,144			104,026			(40,511		)	778,659
Operating income	—			129,347			(15,623		)	—			113,724
Other income (expense):
Interest income	12,223			433			669			(398		)	12,927
Interest expense, net of amounts capitalized	(114,635		)	(8,019		)	1,043			398			(121,213		)
Gains (losses) on investments, net	—			(1,575		)	—			—			(1,575		)
Equity in earnings of unconsolidated affiliate	—			3,350			—			—			3,350
Equity in earnings (losses) of subsidiaries, net	74,937			(10,639		)	—			(64,298		)	—
Other, net	—			(840		)	(735		)	—			(1,575		)
Total other income (expense), net	(27,475		)	(17,290		)	977			(64,298		)	(108,086		)
Income (loss) before income taxes	(27,475		)	112,057			(14,646		)	(64,298		)	5,638
Income tax benefit (provision)	36,730			(36,882		)	4,243			—			4,091
Net income (loss)	9,255			75,175			(10,403		)	(64,298		)	9,729
Less: Net income attributable to noncontrolling interests	—			—			474			—			474
Net income (loss) attributable to HSS	$	9,255		$	75,175		$	(10,877	)	$	(64,298	)	$	9,255
Comprehensive income (loss):
Net income (loss)	$	9,255		$	75,175		$	(10,403	)	$	(64,298	)	$	9,729
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			5,385			—			5,385
Unrealized gains (losses) on available-for-sale securities and other	(48		)	(1,488		)	25			—			(1,511		)
Recognition of other-than-temporary loss on available-for-sale securities in net income (loss)	—			3,298			—			—			3,298
Equity in other comprehensive income (loss) of subsidiaries, net	7,220			5,410			—			(12,630		)	—
Total other comprehensive income (loss), net of tax	7,172			7,220			5,410			(12,630		)	7,172
Comprehensive income (loss)	16,427			82,395			(4,993		)	(76,928		)	16,901
Less: Comprehensive income attributable to noncontrolling interests	—			—			474			—			474
Comprehensive income (loss) attributable to HSS	$	16,427		$	82,395		$	(5,467	)	$	(76,928	)	$	16,427

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	60,232		$	130,678		$	(11,255	)	$	(118,581	)	$	61,074
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(143,241		)	305,364			19,347			118,581			300,051
Net cash flows from operating activities	(83,009		)	436,042			8,092			—			361,125
Cash flows from investing activities:
Purchases of marketable investment securities	(1,098,527		)	—			—			—			(1,098,527		)
Sales and maturities of marketable investment securities	560,194			—			—			—			560,194
Expenditures for property and equipment	—			(148,208		)	(27,436		)	—			(175,644		)
Refunds and other receipts related to property and equipment	—			77,524			—			—			77,524
Expenditures for externally marketed software	—			(15,000		)	—			—			(15,000		)
Payment for satellite launch services	—			—			(7,125		)	—			(7,125		)
Distributions (contributions) and advances from (to) subsidiaries, net	306,958			(23,215		)	—			(283,743		)	—
Net cash flows from investing activities	(231,375		)	(108,899		)	(34,561		)	(283,743		)	(658,578		)
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net	—			(306,958		)	23,215			283,743			—
Repayment of debt and capital lease obligations	—			(17,455		)	(962		)	—			(18,417		)
Capital contribution from EchoStar	7,125			—			—			—			7,125
Payment of in-orbit incentive obligations	—			(2,718		)	—			—			(2,718		)
Net cash flows from financing activities	7,125			(327,131		)	22,253			283,743			(14,010		)
Effect of exchange rates on cash and cash equivalents	—			—			(1,865		)	—			(1,865		)
Net increase (decrease) in cash and cash equivalents, including restricted amounts	(307,259		)	12			(6,081		)	—			(313,328		)
Cash and cash equivalents, including restricted amounts, beginning of period	1,746,878			42,373			34,103			—			1,823,354
Cash and cash equivalents, including restricted amounts, end of period	$	1,439,619		$	42,385		$	28,022		$	—		$	1,510,026

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	9,255		$	75,175		$	(10,403	)	$	(64,298	)	$	9,729
Adjustments to reconcile net income (loss) to net cash flows from operating activities	22,394			80,566			12,257			64,298			179,515
Net cash flows from operating activities	31,649			155,741			1,854			—			189,244
Cash flows from investing activities:
Purchases of marketable investment securities	(992		)	—			—			—			(992		)
Sales and maturities of marketable investment securities	118,648			—			—			—			118,648
Expenditures for property and equipment	—			(141,385		)	(33,959		)	—			(175,344		)
Expenditures for externally marketed software	—			(17,119		)	—			—			(17,119		)
Investment in subsidiary	(36,000		)	(39,025		)	—			75,025			—
Net cash flows from investing activities	81,656			(197,529		)	(33,959		)	75,025			(74,807		)
Cash flows from financing activities:
Proceeds from capital contributions from parent	—			36,000			39,025			(75,025		)	—
Repayment of debt and capital lease obligations	—			(15,648		)	(1,463		)	—			(17,111		)
Advances from affiliates	—			—			(36		)	—			(36		)
Payment of in-orbit incentive obligations	—			(3,194		)	—			—			(3,194		)
Other, net	426			—			886			—			1,312
Net cash flows from financing activities	426			17,158			38,412			(75,025		)	(19,029		)
Effect of exchange rates on cash and cash equivalents	—			—			925			—			925
Net increase (decrease) in cash and cash equivalents, including restricted amounts	113,731			(24,630		)	7,232			—			96,333
Cash and cash equivalents, including restricted amounts, beginning of period	1,991,949			53,905			25,833			—			2,071,687
Cash and cash equivalents, including restricted amounts, end of period	$	2,105,680		$	29,275		$	33,065		$	—		$	2,168,020

Supplemental Financial Information

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

Noncash Investing and Financing Activities



	For The Six Months Ended June 30,
	2018			2017
Property and equipment financed under capital lease obligations	$	123		$	8,189
Decrease in capital expenditures included in accounts payable, net	$	(1,158	)	$	(2,120	)
Transfer of launch service contracts from (to) EchoStar	$	—		$	(145,114	)
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1)	$	—		$	219,662
Noncash net assets exchanged for HSS Tracking Stock (Note 1)	$	—		$	(190,221	)
Capitalized in-orbit incentive obligations	$	—		$	31,000
Contribution of EchoStar XIX satellite	$	—		$	514,448

Restricted Cash and Cash Equivalents

The beginning and ending balances of cash and cash equivalents presented in our Condensed Consolidated Statements of Cash Flows included restricted cash and cash equivalents of $0.8 million and $0.8 million, respectively, for the six months ended June 30, 2018 and $0.7 million and $0.8 million, respectively, for the six months ended June 30, 2017. These amounts are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets.

Fair Value of In-Orbit Incentives

As of June 30, 2018 and December 31, 2017, the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $96.6 million and $99.3 million, respectively.

Contract Acquisition and Fulfillment Costs

Unamortized contract acquisition costs totaled $103.6 million as of June 30, 2018 and related amortization expense totaled $20.7 million and $40.7 million for the three and six months ended June 30, 2018, respectively.

Unamortized contract fulfillment costs totaled $3.3 million as of June 30, 2018 and related amortization expense was de minimis for the three and six months ended June 30, 2018.

Research and Development

The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses we incurred for research and development.



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Cost of sales	$	6,290	$	6,785	$	12,888	$	13,686
Research and development	$	6,647	$	7,437	$	13,784	$	15,142

Capitalized Software Costs

As of June 30, 2018 and December 31, 2017, the net carrying amount of externally marketed software was $91.9 million and $88.1 million, respectively, of which $28.3 million and $19.6 million, respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $7.9 million and $6.3 million for the three months ended June 30, 2018 and 2017, respectively, and $15.0 million and $17.1 million for the six months ended June 30, 2018 and 2017, respectively. We recorded amortization expense relating to the development of externally marketed software of $5.6 million and $5.3 million for the three months ended June 30, 2018 and 2017, respectively, and $11.1 million and $8.6 million for the six months ended June 30, 2018 and 2017, respectively. The weighted average useful life of our externally marketed software was approximately four years as of June 30, 2018.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

Reclassification, Policy [Policy Text Block]

Reclassification

Certain prior period amounts have been reclassified to conform with the current period presentation.

Use of Estimates

Fair Value Measurements


•	Level 1 - Defined as observable inputs being quoted prices in active markets for identical assets;


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


•	Level 3 - Defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Overview

Hughes

ESS

Other

Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue.

Shipping and Handling Cost, Policy [Policy Text Block]

Receivables, Policy [Policy Text Block]

Trade Accounts Receivable

Contract Asset

Contract Liabilities

Revenue Recognition, Customer Acquisitions [Policy Text Block]

Contract Acquisition Costs

Contract Fulfillment Costs

Research and Development Expense

Capitalized Software Costs

Marketable Securities, Policy

Marketable Investment Securities

Our marketable investment securities portfolio consists of investments in debt and equity instruments with readily determinable fair values.

Debt Securities

Equity Securities

Investment in Unconsolidated Entities

Investments in Unconsolidated Entities

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Revenue Recognition and Financial Instruments

The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of these standards were as follows:



	Balance at December 31, 2017			Adjustments Due to the						Balance at January 1, 2018
	Balance at December 31, 2017			New Revenue Standard			New Investment Standard			Balance at January 1, 2018
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	196,840		$	(7,103	)	$	—		$	189,737
Other current assets	$	91,544		$	533		$	—		$	92,077
Other noncurrent assets, net	$	202,814		$	22,545		$	—		$	225,359
Total assets	$	6,857,350		$	15,975		$	—		$	6,873,325
Liabilities:
Contract liabilities	$	65,959		$	(1,542	)	$	—		$	64,417
Accrued expenses and other	$	77,312		$	255		$	—		$	77,567
Deferred tax liabilities, net	$	439,631		$	3,122		$	—		$	442,753
Other noncurrent liabilities	$	107,627		$	(4,068	)	$	—		$	103,559
Total liabilities	$	4,558,106		$	(2,233	)	$	—		$	4,555,873
Shareholders’ Equity:
Accumulated other comprehensive income (loss)	$	(52,822	)	$	—		$	433		$	(52,389	)
Accumulated earnings (losses)	$	582,683		$	18,208		$	(433	)	$	600,458
Total shareholders’ equity	$	2,299,244		$	18,208		$	—		$	2,317,452
Total liabilities and shareholders’ equity	$	6,857,350		$	15,975		$	—		$	6,873,325

Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows:



	As of June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Balance Sheet	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	186,956		$	7,129		$	—		$	194,085
Other current assets	$	15,887		$	(533	)	$	—		$	15,354
Other noncurrent assets, net	$	247,902		$	(29,878	)	$	—		$	218,024
Total assets	$	6,899,948		$	(23,282	)	$	—		$	6,876,666
Liabilities:
Contract liabilities	$	72,776		$	978		$	—		$	73,754
Accrued expenses and other	$	60,990		$	(255	)	$	—		$	60,735
Deferred tax liabilities, net	$	464,722		$	(4,297	)	$	—		$	460,425
Other noncurrent liabilities	$	104,289		$	2,414		$	—		$	106,703
Total liabilities	$	4,542,351		$	(1,160	)	$	—		$	4,541,191
Shareholders’ Equity:
Accumulated other comprehensive loss	$	(82,089	)	$	—		$	505		$	(81,584	)
Accumulated earnings	$	660,690		$	(22,122	)	$	(505	)	$	638,063
Total shareholders’ equity	$	2,357,597		$	(22,122	)	$	—		$	2,335,475
Total liabilities and shareholders’ equity	$	6,899,948		$	(23,282	)	$	—		$	6,876,666



	For the three months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	380,115		$	808		$	—		$	380,923
Total revenue	$	527,596		$	808		$	—		$	528,404
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	150,223		$	1,548		$	—		$	151,771
Selling, general and administrative expenses	$	93,375		$	2,434		$	—		$	95,809
Total costs and expenses	$	428,818		$	3,982		$	—		$	432,800
Operating income	$	98,778		$	(3,174	)	$	—		$	95,604
Other income (expense):
Interest expense, net of amounts capitalized	$	(64,122	)	$	126		$	—		$	(63,996	)
Gains (losses) on investments, net	$	509		$	—		$	(505	)	$	4
Total other expense, net	$	(47,622	)	$	126		$	(505	)	$	(48,001	)
Income before income taxes	$	51,156		$	(3,048	)	$	(505	)	$	47,603
Income tax provision	$	(10,463	)	$	794		$	—		$	(9,669	)
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Net income attributable to HSS	$	40,231		$	(2,254	)	$	(505	)	$	37,472
Comprehensive income
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Other comprehensive income (loss), net of tax:
Unrealized gains on available-for-sale securities and other	$	329		$	—		$	505		$	834
Total other comprehensive income, net of tax	$	(31,988	)	$	—		$	505		$	(31,483	)
Comprehensive income	$	8,705		$	(2,254	)	$	—		$	6,451
Comprehensive income attributable to HSS	$	8,828		$	(2,254	)	$	—		$	6,574



	For the six months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	739,449		$	2,026		$	—		$	741,475
Total revenue	$	1,030,491		$	2,026		$	—		$	1,032,517
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	297,878		$	2,477		$	—		$	300,355
Selling, general and administrative expenses	$	188,025		$	4,855		$	—		$	192,880
Total costs and expenses	$	851,049		$	7,332		$	—		$	858,381
Operating income	$	179,442		$	(5,306	)	$	—		$	174,136
Other income (expense):
Interest expense, net of amounts capitalized	$	(128,535	)	$	218		$	—		$	(128,317	)
Gains (losses) on investments, net	$	117		$	—		$	(938	)	$	(821	)
Total other expense, net	$	(100,169	)	$	218		$	(938	)	$	(100,889	)
Income before income taxes	$	79,273		$	(5,088	)	$	(938	)	$	73,247
Income tax provision	$	(18,199	)	$	1,175		$	—		$	(17,024	)
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Net income attributable to HSS	$	60,232		$	(3,913	)	$	(938	)	$	55,381
Comprehensive income
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Other comprehensive income (loss), net of tax:
Unrealized losses on available-for-sale securities and other	$	(82	)	$	—		$	110		$	28
Other-than-temporary impairment loss on available-for-sale securities in net income	$	—		$	—		$	828		$	828
Total other comprehensive income, net of tax	$	(30,499	)	$	—		$	938		$	(29,561	)
Comprehensive income	$	30,575		$	(3,913	)	$	—		$	26,662
Comprehensive income attributable to HSS	$	30,532		$	(3,913	)	$	—		$	26,619

Restricted Cash and Cash Equivalents

Recently Issued Accounting Pronouncements Not Yet Adopted

option methods on our consolidated financial statements and related disclosures.

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]



	For the three months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	380,115		$	808		$	—		$	380,923
Total revenue	$	527,596		$	808		$	—		$	528,404
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	150,223		$	1,548		$	—		$	151,771
Selling, general and administrative expenses	$	93,375		$	2,434		$	—		$	95,809
Total costs and expenses	$	428,818		$	3,982		$	—		$	432,800
Operating income	$	98,778		$	(3,174	)	$	—		$	95,604
Other income (expense):
Interest expense, net of amounts capitalized	$	(64,122	)	$	126		$	—		$	(63,996	)
Gains (losses) on investments, net	$	509		$	—		$	(505	)	$	4
Total other expense, net	$	(47,622	)	$	126		$	(505	)	$	(48,001	)
Income before income taxes	$	51,156		$	(3,048	)	$	(505	)	$	47,603
Income tax provision	$	(10,463	)	$	794		$	—		$	(9,669	)
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Net income attributable to HSS	$	40,231		$	(2,254	)	$	(505	)	$	37,472
Comprehensive income
Net income	$	40,693		$	(2,254	)	$	(505	)	$	37,934
Other comprehensive income (loss), net of tax:
Unrealized gains on available-for-sale securities and other	$	329		$	—		$	505		$	834
Total other comprehensive income, net of tax	$	(31,988	)	$	—		$	505		$	(31,483	)
Comprehensive income	$	8,705		$	(2,254	)	$	—		$	6,451
Comprehensive income attributable to HSS	$	8,828		$	(2,254	)	$	—		$	6,574



	For the six months ended June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Statement of Operations and Comprehensive Income	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Revenue:
Services and other revenue - other	$	739,449		$	2,026		$	—		$	741,475
Total revenue	$	1,030,491		$	2,026		$	—		$	1,032,517
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$	297,878		$	2,477		$	—		$	300,355
Selling, general and administrative expenses	$	188,025		$	4,855		$	—		$	192,880
Total costs and expenses	$	851,049		$	7,332		$	—		$	858,381
Operating income	$	179,442		$	(5,306	)	$	—		$	174,136
Other income (expense):
Interest expense, net of amounts capitalized	$	(128,535	)	$	218		$	—		$	(128,317	)
Gains (losses) on investments, net	$	117		$	—		$	(938	)	$	(821	)
Total other expense, net	$	(100,169	)	$	218		$	(938	)	$	(100,889	)
Income before income taxes	$	79,273		$	(5,088	)	$	(938	)	$	73,247
Income tax provision	$	(18,199	)	$	1,175		$	—		$	(17,024	)
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Net income attributable to HSS	$	60,232		$	(3,913	)	$	(938	)	$	55,381
Comprehensive income
Net income	$	61,074		$	(3,913	)	$	(938	)	$	56,223
Other comprehensive income (loss), net of tax:
Unrealized losses on available-for-sale securities and other	$	(82	)	$	—		$	110		$	28
Other-than-temporary impairment loss on available-for-sale securities in net income	$	—		$	—		$	828		$	828
Total other comprehensive income, net of tax	$	(30,499	)	$	—		$	938		$	(29,561	)
Comprehensive income	$	30,575		$	(3,913	)	$	—		$	26,662
Comprehensive income attributable to HSS	$	30,532		$	(3,913	)	$	—		$	26,619

The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of these standards were as follows:



	Balance at December 31, 2017			Adjustments Due to the						Balance at January 1, 2018
	Balance at December 31, 2017			New Revenue Standard			New Investment Standard			Balance at January 1, 2018
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	196,840		$	(7,103	)	$	—		$	189,737
Other current assets	$	91,544		$	533		$	—		$	92,077
Other noncurrent assets, net	$	202,814		$	22,545		$	—		$	225,359
Total assets	$	6,857,350		$	15,975		$	—		$	6,873,325
Liabilities:
Contract liabilities	$	65,959		$	(1,542	)	$	—		$	64,417
Accrued expenses and other	$	77,312		$	255		$	—		$	77,567
Deferred tax liabilities, net	$	439,631		$	3,122		$	—		$	442,753
Other noncurrent liabilities	$	107,627		$	(4,068	)	$	—		$	103,559
Total liabilities	$	4,558,106		$	(2,233	)	$	—		$	4,555,873
Shareholders’ Equity:
Accumulated other comprehensive income (loss)	$	(52,822	)	$	—		$	433		$	(52,389	)
Accumulated earnings (losses)	$	582,683		$	18,208		$	(433	)	$	600,458
Total shareholders’ equity	$	2,299,244		$	18,208		$	—		$	2,317,452
Total liabilities and shareholders’ equity	$	6,857,350		$	15,975		$	—		$	6,873,325

Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows:



	As of June 30, 2018
	As Reported			Adjustments Due to the						Balances If We Had Not Adopted the New Standards
Balance Sheet	As Reported			New Revenue Standard			New Investment Standard			Balances If We Had Not Adopted the New Standards
	(In thousands)
Assets:
Trade accounts receivable and contract assets, net	$	186,956		$	7,129		$	—		$	194,085
Other current assets	$	15,887		$	(533	)	$	—		$	15,354
Other noncurrent assets, net	$	247,902		$	(29,878	)	$	—		$	218,024
Total assets	$	6,899,948		$	(23,282	)	$	—		$	6,876,666
Liabilities:
Contract liabilities	$	72,776		$	978		$	—		$	73,754
Accrued expenses and other	$	60,990		$	(255	)	$	—		$	60,735
Deferred tax liabilities, net	$	464,722		$	(4,297	)	$	—		$	460,425
Other noncurrent liabilities	$	104,289		$	2,414		$	—		$	106,703
Total liabilities	$	4,542,351		$	(1,160	)	$	—		$	4,541,191
Shareholders’ Equity:
Accumulated other comprehensive loss	$	(82,089	)	$	—		$	505		$	(81,584	)
Accumulated earnings	$	660,690		$	(22,122	)	$	(505	)	$	638,063
Total shareholders’ equity	$	2,357,597		$	(22,122	)	$	—		$	2,335,475
Total liabilities and shareholders’ equity	$	6,899,948		$	(23,282	)	$	—		$	6,876,666

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability [Table Text Block]



	As of
	June 30, 2018			January 1, 2018
	(In thousands)
Trade accounts receivable:
Sales and services	$	145,475		$	156,794
Leasing	8,215			10,355
Total	153,690			167,149
Contract assets	42,553			34,615
Allowance for doubtful accounts	(9,287		)	(12,027		)
Total trade accounts receivable and contract assets, net	$	186,956		$	189,737

Trade accounts receivable - DISH Network:
Sales and services	$	25,449		$	16,118
Leasing	254			22,523
Total trade accounts receivable - DISH Network, net	$	25,703		$	38,641

Contract liabilities:
Current	$	72,776		$	64,417
Noncurrent	10,187			13,036
Total contract liabilities	$	82,963		$	77,453

Marketable Investment Securities (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable investment securities

Our marketable investment securities portfolio consists of various debt and equity instruments as follows:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Marketable investment securities:
Debt securities:
Corporate bonds	$	757,647	$	368,083
Other debt securities	234,266		86,417
Total debt securities	991,913		454,500
Equity securities	1,213		1,102
Total marketable investment securities	$	993,126	$	455,602

Schedule of unrealized gains (losses) on marketable investment securities

A summary of our available-for-sale debt securities, exclusive of securities where we have elected the fair value option, is presented in the table below.



	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
As of June 30, 2018
Corporate bonds	$	757,703	$	171	$	(227	)	$	757,647
Other debt securities	234,269		—		(3		)	234,266
Total available-for-sale debt securities	$	991,972	$	171	$	(230	)	$	991,913
As of December 31, 2017
Corporate bonds	$	368,291	$	—	$	(208	)	$	368,083
Other debt securities	86,425		—		(8		)	86,417
Total available-for-sale debt securities	$	454,716	$	—	$	(216	)	$	454,500

Schedule of fair value measurements



	As of
	June 30, 2018						December 31, 2017
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Debt securities:
Corporate bonds	$	—	$	757,647	$	757,647	$	—	$	368,083	$	368,083
Other	—		234,266		234,266		—		86,417		86,417
Total debt securities	—		991,913		991,913		—		454,500		454,500
Equity securities	1,213		—		1,213		1,102		—		1,102
Total marketable investment securities	$	1,213	$	991,913	$	993,126	$	1,102	$	454,500	$	455,602

Inventory (Tables)

6 Months Ended

Jun. 30, 2018

Inventory, Net [Abstract]

Schedule of inventory

Our inventory consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Raw materials	$	6,291	$	5,484
Work-in-process	8,691		7,442
Finished goods	66,406		70,669
Total inventory	$	81,388	$	83,595

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Depreciation expense associated with our property and equipment consisted of the following:



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Satellites	$	61,910	$	57,322	$	120,943	$	109,466
Furniture, fixtures, equipment and other	18,633		15,875		39,407		32,557
Customer rental equipment	42,875		34,081		86,323		64,677
Buildings and improvements	3,967		5,502		5,265		6,759
Total depreciation expense	$	127,385	$	112,780	$	251,938	$	213,459

Property and equipment consisted of the following:



	Depreciable Life In Years	As of
	Depreciable Life In Years	June 30, 2018			December 31, 2017
		(In thousands)
Land	—	$	13,402		$	13,475
Buildings and improvements	1 to 40	128,043			128,292
Furniture, fixtures, equipment and other	1 to 12	672,596			650,385
Customer rental equipment	2 to 4	1,032,591			929,775
Satellites - owned	2 to 15	2,268,862			2,516,685
Satellites - acquired under capital leases	10 to 15	899,310			916,820
Construction in progress	—	174,046			149,570
Total property and equipment		5,188,850			5,305,002
Accumulated depreciation		(2,546,186		)	(2,551,904		)
Property and equipment, net		$	2,642,664		$	2,753,098

Schedule of construction in progress

Construction in progress consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs	$	113,658	$	101,733
Satellite related equipment	25,738		28,358
Other	34,650		19,479
Construction in progress	$	174,046	$	149,570

Investment in Unconsolidated Entities (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment in Unconsolidated Entities

Our investments in unconsolidated entities consisted of the following:



	As of
	June 30, 2018		December 31, 2017
	(In thousands)
Investments in unconsolidated entities:
Equity method	$	12,879	$	15,149
Other equity investments without a readily determinable fair value	15,438		15,438
Total investments in unconsolidated entities	$	28,317	$	30,587

Debt and Capital Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2018

Debt and Capital Lease Obligations [Abstract]

Schedule of carrying amounts and fair values of the entity's debt

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



	Effective Interest Rate	As of
		June 30, 2018					December 31, 2017
		Carrying Amount			Fair Value		Carrying Amount			Fair Value
		(In thousands)
Senior Secured Notes:
6 1/2% Senior Secured Notes due 2019	6.959%	$	990,000		$	1,014,651	$	990,000		$	1,042,609
5 1/4% Senior Secured Notes due 2026	5.320%	750,000			707,828		750,000			769,305
Senior Unsecured Notes:
7 5/8% Senior Unsecured Notes due 2021	8.062%	900,000			962,586		900,000			992,745
6 5/8% Senior Unsecured Notes due 2026	6.688%	750,000			698,693		750,000			791,865
Less: Unamortized debt issuance costs		(20,952		)	—		(24,857		)	—
Subtotal		3,369,048			$	3,383,758	3,365,143			$	3,596,524
Capital lease obligations		251,245					269,701
Total debt and capital lease obligations		3,620,293					3,634,844
Less: Current portion		(1,028,119		)			(40,631		)
Long-term debt and capital lease obligations, net		$	2,592,174				$	3,594,213

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of revenue, EBITDA, and capital expenditures by operating segments



	Hughes		ESS			Corporate and Other			Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
External revenue	$	426,306	$	94,904		$	6,386		$	527,596
Intersegment revenue	$	—	$	521		$	(521	)	$	—
Total revenue	$	426,306	$	95,425		$	5,865		$	527,596
EBITDA	$	152,134	$	82,483		$	2,621		$	237,238
Capital expenditures	$	87,511	$	356		$	—		$	87,867
For the three months ended June 30, 2017
External revenue	$	362,403	$	97,945		$	1,917		$	462,265
Intersegment revenue	$	359	$	421		$	(780	)	$	—
Total revenue	$	362,762	$	98,366		$	1,137		$	462,265
EBITDA	$	110,024	$	80,465		$	(11,845	)	$	178,644
Capital expenditures	$	96,529	$	4,640		$	—		$	101,169
For the six months ended June 30, 2018
External revenue	$	826,765	$	191,127		$	12,599		$	1,030,491
Intersegment revenue	$	359	$	1,051		$	(1,410	)	$	—
Total revenue	$	827,124	$	192,178		$	11,189		$	1,030,491
EBITDA	$	288,847	$	166,633		$	(3,753	)	$	451,727
Capital expenditures	$	174,802	$	(76,682	)	$	—		$	98,120
For the six months ended June 30, 2017
External revenue	$	691,013	$	198,096		$	3,274		$	892,383
Intersegment revenue	$	1,069	$	596		$	(1,665	)	$	—
Total revenue	$	692,082	$	198,692		$	1,609		$	892,383
EBITDA	$	210,876	$	163,528		$	(23,991	)	$	350,413
Capital expenditures	$	162,196	$	13,148		$	—		$	175,344

Schedule of reconciliation of EBITDA to reported income before income taxes

The following table reconciles total consolidated EBITDA to reported Income before income taxes in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):



	For the three months ended June 30,						For the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
EBITDA	$	237,238		$	178,644		$	451,727		$	350,413
Interest income and expense, net	(49,836		)	(54,290		)	(102,870		)	(108,286		)
Depreciation and amortization	(136,708		)	(124,743		)	(270,426		)	(236,963		)
Net income attributable to noncontrolling interests	462			182			842			474
Income before income taxes	$	51,156		$	(207	)	$	79,273		$	5,638

Disaggregation of Revenue [Table Text Block]

The following table disaggregates revenue based on the nature of products and services and by segment.



	Hughes		ESS		Corporate and Other		Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
Equipment	$	50,341	$	—	$	—	$	50,341
Services	310,225		6,890		329		317,444
Design, development and construction services	13,876		—		—		13,876
Revenue from sales and services	374,442		6,890		329		381,661
Leasing income	51,864		88,535		5,536		145,935
Total revenue	$	426,306	$	95,425	$	5,865	$	527,596

For the six months ended June 30, 2018
Equipment	$	93,288	$	—	$	—	$	93,288
Services	608,010		14,293		704		623,007
Design, development and construction services	30,052		—		—		30,052
Revenue from sales and services	731,350		14,293		704		746,347
Leasing income	95,774		177,885		10,485		284,144
Total revenue	$	827,124	$	192,178	$	11,189	$	1,030,491



	Hughes		ESS		Corporate and Other		Consolidated Total
	(In thousands)
For the three months ended June 30, 2018
North America:
U.S.	$	347,575	$	89,412	$	1,199	$	438,186
Canada and Mexico	15,132		5,837		—		20,969
All other	63,599		176		4,666		68,441
Total revenue	$	426,306	$	95,425	$	5,865	$	527,596

For the six months ended June 30, 2018
North America:
U.S.	$	668,013	$	180,153	$	2,405	$	850,571
Canada and Mexico	30,714		11,674		—		42,388
All other	128,397		351		8,784		137,532
Total revenue	$	827,124	$	192,178	$	11,189	$	1,030,491

Supplemental Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Supplemental Guarantor and Non-Guarantor Financial Information

Schedule of consolidating balance sheet

Condensed Consolidating Balance Sheet as of June 30, 2018

(In thousands)



	HSS		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	1,439,619	$	42,385	$	27,234	$	—		$	1,509,238
Marketable investment securities, at fair value	991,913		1,213		—		—			993,126
Trade accounts receivable and contract assets, net	—		122,726		64,230		—			186,956
Trade accounts receivable - DISH Network, net	—		25,217		486		—			25,703
Inventory	—		54,030		27,358		—			81,388
Advances to affiliates, net	7,829		399,924		17,431		(321,553		)	103,631
Other current assets	109		25,111		34,792		(87		)	59,925
Total current assets	2,439,470		670,606		171,531		(321,640		)	2,959,967
Property and equipment, net	—		2,371,631		271,033		—			2,642,664
Regulatory authorizations	—		465,658		—		—			465,658
Goodwill	—		504,173		—		—			504,173
Other intangible assets, net	—		51,267		—		—			51,267
Investments in unconsolidated entities	—		28,317		—		—			28,317
Investment in subsidiaries	3,249,869		187,349		—		(3,437,218		)	—
Advances to affiliates	700		86,661		—		(87,361		)	—
Deferred tax asset	130,728		—		8,229		(130,728		)	8,229
Other noncurrent assets, net	—		228,965		10,708		—			239,673
Total assets	$	5,820,767	$	4,594,627	$	461,501	$	(3,976,947	)	$	6,899,948
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	$	—	$	85,524	$	11,592	$	—		$	97,116
Trade accounts payable - DISH Network	—		445		—		—			445
Current portion of long-term debt and capital lease obligations	985,773		37,888		4,458		—			1,028,119
Advances from affiliates, net	63,264		185,102		73,958		(321,553		)	771
Accrued expenses and other	45,723		132,295		43,259		(87		)	221,190
Total current liabilities	1,094,760		441,254		133,267		(321,640		)	1,347,641
Long-term debt and capital lease obligations, net	2,383,275		207,540		1,359		—			2,592,174
Deferred tax liabilities, net	—		594,493		957		(130,728		)	464,722
Advances from affiliates	—		—		120,886		(87,361		)	33,525
Other non-current liabilities	—		101,884		2,405		—			104,289
Total HSS shareholders’ equity (deficit)	2,342,732		3,249,456		187,762		(3,437,218		)	2,342,732
Noncontrolling interests	—		—		14,865		—			14,865
Total liabilities and shareholders’ equity (deficit)	$	5,820,767	$	4,594,627	$	461,501	$	(3,976,947	)	$	6,899,948

Condensed Consolidating Balance Sheet as of December 31, 2017

(In thousands)



	HSS		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Cash and cash equivalents	$	1,746,878	$	42,373	$	33,310	$	—		$	1,822,561
Marketable investment securities, at fair value	454,500		1,102		—		—			455,602
Trade accounts receivable and contract assets, net	—		133,735		63,105		—			196,840
Trade accounts receivable - DISH Network, net	—		38,286		355		—			38,641
Inventory	—		59,711		23,884		—			83,595
Advances to affiliates, net	119,605		229,488		7,313		(241,548		)	114,858
Other current assets	64		98,890		31,788		(401		)	130,341
Total current assets	2,321,047		603,585		159,755		(241,949		)	2,842,438
Property and equipment, net	—		2,459,703		293,395		—			2,753,098
Regulatory authorizations	—		465,658		—		—			465,658
Goodwill	—		504,173		—		—			504,173
Other intangible assets, net	—		58,582		—		—			58,582
Investments in unconsolidated entities	—		30,587		—		—			30,587
Investment in subsidiaries	3,260,790		204,208		—		(3,464,998		)	—
Advances to affiliates	700		80,744		—		(81,444		)	—
Deferred tax asset	110,546		—		3,700		(110,546		)	3,700
Other noncurrent assets, net	—		185,839		13,275		—			199,114
Total assets	$	5,693,083	$	4,593,079	$	470,125	$	(3,898,937	)	$	6,857,350
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	$	—	$	82,300	$	20,516	$	—		$	102,816
Trade accounts payable - DISH Network	—		3,769		—		—			3,769
Current portion of long-term debt and capital lease obligations	—		35,886		4,745		—			40,631
Advances from affiliates, net	—		185,161		56,864		(241,548		)	477
Accrued expenses and other	43,518		145,362		46,748		(401		)	235,227
Total current liabilities	43,518		452,478		128,873		(241,949		)	382,920
Long-term debt and capital lease obligations, net	3,365,143		226,997		2,073		—			3,594,213
Deferred tax liabilities, net	—		549,217		960		(110,546		)	439,631
Advances from affiliates	—		—		115,159		(81,444		)	33,715
Other non-current liabilities	—		104,249		3,378		—			107,627
Total HSS shareholders’ equity (deficit)	2,284,422		3,260,138		204,860		(3,464,998		)	2,284,422
Noncontrolling interests	—		—		14,822		—			14,822
Total liabilities and shareholders’ equity (deficit)	$	5,693,083	$	4,593,079	$	470,125	$	(3,898,937	)	$	6,857,350

Schedule of consolidating statement of operations and comprehensive income (loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	96,653		$	487		$	—		$	97,140
Services and other revenue - other	—			331,875			57,379			(9,139		)	380,115
Equipment revenue	—			53,643			4,557			(7,859		)	50,341
Total revenue	—			482,171			62,423			(16,998		)	527,596
Costs and Expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			122,259			36,509			(8,545		)	150,223
Cost of sales - equipment (exclusive of depreciation and amortization)	—			46,217			3,539			(7,891		)	41,865
Selling, general and administrative expenses	—			82,477			11,460			(562		)	93,375
Research and development expenses	—			6,647			—			—			6,647
Depreciation and amortization	—			124,249			12,459			—			136,708
Total costs and expenses	—			381,849			63,967			(16,998		)	428,818
Operating income	—			100,322			(1,544		)	—			98,778
Other Income (Expense):
Interest income	13,768			1,609			508			(1,599		)	14,286
Interest expense, net of amounts capitalized	(57,479		)	(6,574		)	(1,668		)	1,599			(64,122		)
Gains (losses) on investments, net	—			509			—			—			509
Equity in earnings of unconsolidated affiliate	—			1,238			—			—			1,238
Equity in earnings (losses) of subsidiaries, net	74,180			(8,161		)	—			(66,019		)	—
Other, net	3			9,489			(9,025		)	—			467
Total other income (expense), net	30,472			(1,890		)	(10,185		)	(66,019		)	(47,622		)
Income (loss) before income taxes	30,472			98,432			(11,729		)	(66,019		)	51,156
Income tax benefit (provision)	9,759			(24,103		)	3,881			—			(10,463		)
Net income (loss)	40,231			74,329			(7,848		)	(66,019		)	40,693
Less: Net income attributable to noncontrolling interests	—			—			462			—			462
Net income (loss) attributable to HSS	$	40,231		$	74,329		$	(8,310	)	$	(66,019	)	$	40,231
Comprehensive Income (Loss):
Net income (loss)	$	40,231		$	74,329		$	(7,848	)	$	(66,019	)	$	40,693
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(32,314		)	—			(32,314		)
Unrealized gains (losses) on available-for-sale securities and other	470			—			(141		)	—			329
Realized gains on available-for-sale securities in net income	(3		)	—			—			—			(3		)
Equity in other comprehensive income (loss) of subsidiaries, net	(31,870		)	(31,870		)	—			63,740			—
Total other comprehensive income (loss), net of tax	(31,403		)	(31,870		)	(32,455		)	63,740			(31,988		)
Comprehensive income (loss)	8,828			42,459			(40,303		)	(2,279		)	8,705
Less: Comprehensive loss attributable to noncontrolling interests	—			—			(123		)	—			(123		)
Comprehensive income (loss) attributable to HSS	$	8,828		$	42,459		$	(40,180	)	$	(2,279	)	$	8,828

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	110,388		$	533		$	—		$	110,921
Services and other revenue - other	—			248,361			43,611			(6,917		)	285,055
Equipment revenue	—			81,831			5,033			(20,575		)	66,289
Total revenue	—			440,580			49,177			(27,492		)	462,265
Costs and Expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			112,989			29,941			(5,656		)	137,274
Cost of sales - equipment (exclusive of depreciation and amortization)	—			70,297			4,532			(21,167		)	53,662
Selling, general and administrative expenses	—			75,035			11,749			(669		)	86,115
Research and development expenses	—			7,437			—			—			7,437
Depreciation and amortization	—			116,193			8,550			—			124,743
Total costs and expenses	—			381,951			54,772			(27,492		)	409,231
Operating income	—			58,629			(5,595		)	—			53,034
Other Income (Expense):
Interest income	6,733			231			321			(199		)	7,086
Interest expense, net of amounts capitalized	(57,336		)	(4,797		)	558			199			(61,376		)
Gains (losses) on investments, net	—			1,632			—			—			1,632
Equity in earnings of unconsolidated affiliate	—			1,639			—			—			1,639
Equity in earnings (losses) of subsidiaries, net	33,078			(4,438		)	—			(28,640		)	—
Other, net	—			(702		)	(1,520		)	—			(2,222		)
Total other income (expense), net	(17,525		)	(6,435		)	(641		)	(28,640		)	(53,241		)
Income (loss) before income taxes	(17,525		)	52,194			(6,236		)	(28,640		)	(207		)
Income tax benefit (provision)	17,645			(19,026		)	1,890			—			509
Net income (loss)	120			33,168			(4,346		)	(28,640		)	302
Less: Net income attributable to noncontrolling interests	—			—			182			—			182
Net income (loss) attributable to HSS	$	120		$	33,168		$	(4,528	)	$	(28,640	)	$	120
Comprehensive Income (Loss):
Net income (loss)	$	120		$	33,168		$	(4,346	)	$	(28,640	)	$	302
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(6,736		)	—			(6,736		)
Unrealized gains (losses) on available-for-sale securities and other	(21		)	86			(76		)	—			(11		)
Equity in other comprehensive income (loss) of subsidiaries, net	(6,726		)	(6,812		)	—			13,538			—
Total other comprehensive income (loss), net of tax	(6,747		)	(6,726		)	(6,812		)	13,538			(6,747		)
Comprehensive income (loss)	(6,627		)	26,442			(11,158		)	(15,102		)	(6,445		)
Less: Comprehensive income attributable to noncontrolling interests	—			—			182			—			182
Comprehensive income (loss) attributable to HSS	$	(6,627	)	$	26,442		$	(11,340	)	$	(15,102	)	$	(6,627	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Six Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	196,740		$	1,014		$	—		$	197,754
Services and other revenue - other	—			643,983			114,455			(18,989		)	739,449
Equipment revenue	—			100,052			9,164			(15,928		)	93,288
Total revenue	—			940,775			124,633			(34,917		)	1,030,491
Costs and expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			241,585			74,235			(17,942		)	297,878
Cost of sales - equipment (exclusive of depreciation and amortization)	—			89,860			7,004			(15,928		)	80,936
Selling, general and administrative expenses	—			165,869			23,203			(1,047		)	188,025
Research and development expenses	—			13,784			—			—			13,784
Depreciation and amortization	—			245,588			24,838			—			270,426
Total costs and expenses	—			756,686			129,280			(34,917		)	851,049
Operating income	—			184,089			(4,647		)	—			179,442
Other income (expense):
Interest income	24,529			1,925			1,009			(1,798		)	25,665
Interest expense, net of amounts capitalized	(114,924		)	(13,530		)	(1,879		)	1,798			(128,535		)
Gains (losses) on investments, net	—			117			—			—			117
Equity in earnings of unconsolidated affiliate	—			2,730			—			—			2,730
Equity in earnings (losses) of subsidiaries, net	130,439			(11,858		)	—			(118,581		)	—
Other, net	6			9,392			(9,544		)	—			(146		)
Total other income (expense), net	40,050			(11,224		)	(10,414		)	(118,581		)	(100,169		)
Income (loss) before income taxes	40,050			172,865			(15,061		)	(118,581		)	79,273
Income tax benefit (provision)	20,182			(42,187		)	3,806			—			(18,199		)
Net income (loss)	60,232			130,678			(11,255		)	(118,581		)	61,074
Less: Net income attributable to noncontrolling interests	—			—			842			—			842
Net income (loss) attributable to HSS	$	60,232		$	130,678		$	(12,097	)	$	(118,581	)	$	60,232
Comprehensive income (loss):
Net income (loss)	$	60,232		$	130,678		$	(11,255	)	$	(118,581	)	$	61,074
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(30,414		)	—			(30,414		)
Unrealized gains (losses) on available-for-sale securities and other	159			—			(241		)	—			(82		)
Recognition of realized gains (losses) on available-for-sale securities in net income	(3		)	—			—			—			(3		)
Equity in other comprehensive income (loss) of subsidiaries, net	(29,856		)	(29,856		)	—			59,712			—
Total other comprehensive income (loss), net of tax	(29,700		)	(29,856		)	(30,655		)	59,712			(30,499		)
Comprehensive income (loss)	30,532			100,822			(41,910		)	(58,869		)	30,575
Less: Comprehensive income attributable to noncontrolling interests	—			—			43			—			43
Comprehensive income (loss) attributable to HSS	$	30,532		$	100,822		$	(41,953	)	$	(58,869	)	$	30,532

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Six Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue - DISH Network	$	—		$	221,692		$	719		$	—		$	222,411
Services and other revenue - other	—			489,733			77,974			(12,429		)	555,278
Equipment revenue	—			133,066			9,710			(28,082		)	114,694
Total revenue	—			844,491			88,403			(40,511		)	892,383
Costs and expenses:
Costs of sales - services and other (exclusive of depreciation and amortization)	—			222,938			59,651			(11,011		)	271,578
Cost of sales - equipment (exclusive of depreciation and amortization)	—			114,704			7,806			(28,027		)	94,483
Selling, general and administrative expenses	—			140,720			21,246			(1,473		)	160,493
Research and development expenses	—			15,142			—			—			15,142
Depreciation and amortization	—			221,640			15,323			—			236,963
Total costs and expenses	—			715,144			104,026			(40,511		)	778,659
Operating income	—			129,347			(15,623		)	—			113,724
Other income (expense):
Interest income	12,223			433			669			(398		)	12,927
Interest expense, net of amounts capitalized	(114,635		)	(8,019		)	1,043			398			(121,213		)
Gains (losses) on investments, net	—			(1,575		)	—			—			(1,575		)
Equity in earnings of unconsolidated affiliate	—			3,350			—			—			3,350
Equity in earnings (losses) of subsidiaries, net	74,937			(10,639		)	—			(64,298		)	—
Other, net	—			(840		)	(735		)	—			(1,575		)
Total other income (expense), net	(27,475		)	(17,290		)	977			(64,298		)	(108,086		)
Income (loss) before income taxes	(27,475		)	112,057			(14,646		)	(64,298		)	5,638
Income tax benefit (provision)	36,730			(36,882		)	4,243			—			4,091
Net income (loss)	9,255			75,175			(10,403		)	(64,298		)	9,729
Less: Net income attributable to noncontrolling interests	—			—			474			—			474
Net income (loss) attributable to HSS	$	9,255		$	75,175		$	(10,877	)	$	(64,298	)	$	9,255
Comprehensive income (loss):
Net income (loss)	$	9,255		$	75,175		$	(10,403	)	$	(64,298	)	$	9,729
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			5,385			—			5,385
Unrealized gains (losses) on available-for-sale securities and other	(48		)	(1,488		)	25			—			(1,511		)
Recognition of other-than-temporary loss on available-for-sale securities in net income (loss)	—			3,298			—			—			3,298
Equity in other comprehensive income (loss) of subsidiaries, net	7,220			5,410			—			(12,630		)	—
Total other comprehensive income (loss), net of tax	7,172			7,220			5,410			(12,630		)	7,172
Comprehensive income (loss)	16,427			82,395			(4,993		)	(76,928		)	16,901
Less: Comprehensive income attributable to noncontrolling interests	—			—			474			—			474
Comprehensive income (loss) attributable to HSS	$	16,427		$	82,395		$	(5,467	)	$	(76,928	)	$	16,427

Schedule of consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2018

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	60,232		$	130,678		$	(11,255	)	$	(118,581	)	$	61,074
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(143,241		)	305,364			19,347			118,581			300,051
Net cash flows from operating activities	(83,009		)	436,042			8,092			—			361,125
Cash flows from investing activities:
Purchases of marketable investment securities	(1,098,527		)	—			—			—			(1,098,527		)
Sales and maturities of marketable investment securities	560,194			—			—			—			560,194
Expenditures for property and equipment	—			(148,208		)	(27,436		)	—			(175,644		)
Refunds and other receipts related to property and equipment	—			77,524			—			—			77,524
Expenditures for externally marketed software	—			(15,000		)	—			—			(15,000		)
Payment for satellite launch services	—			—			(7,125		)	—			(7,125		)
Distributions (contributions) and advances from (to) subsidiaries, net	306,958			(23,215		)	—			(283,743		)	—
Net cash flows from investing activities	(231,375		)	(108,899		)	(34,561		)	(283,743		)	(658,578		)
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net	—			(306,958		)	23,215			283,743			—
Repayment of debt and capital lease obligations	—			(17,455		)	(962		)	—			(18,417		)
Capital contribution from EchoStar	7,125			—			—			—			7,125
Payment of in-orbit incentive obligations	—			(2,718		)	—			—			(2,718		)
Net cash flows from financing activities	7,125			(327,131		)	22,253			283,743			(14,010		)
Effect of exchange rates on cash and cash equivalents	—			—			(1,865		)	—			(1,865		)
Net increase (decrease) in cash and cash equivalents, including restricted amounts	(307,259		)	12			(6,081		)	—			(313,328		)
Cash and cash equivalents, including restricted amounts, beginning of period	1,746,878			42,373			34,103			—			1,823,354
Cash and cash equivalents, including restricted amounts, end of period	$	1,439,619		$	42,385		$	28,022		$	—		$	1,510,026

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2017

(In thousands)



	HSS			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	9,255		$	75,175		$	(10,403	)	$	(64,298	)	$	9,729
Adjustments to reconcile net income (loss) to net cash flows from operating activities	22,394			80,566			12,257			64,298			179,515
Net cash flows from operating activities	31,649			155,741			1,854			—			189,244
Cash flows from investing activities:
Purchases of marketable investment securities	(992		)	—			—			—			(992		)
Sales and maturities of marketable investment securities	118,648			—			—			—			118,648
Expenditures for property and equipment	—			(141,385		)	(33,959		)	—			(175,344		)
Expenditures for externally marketed software	—			(17,119		)	—			—			(17,119		)
Investment in subsidiary	(36,000		)	(39,025		)	—			75,025			—
Net cash flows from investing activities	81,656			(197,529		)	(33,959		)	75,025			(74,807		)
Cash flows from financing activities:
Proceeds from capital contributions from parent	—			36,000			39,025			(75,025		)	—
Repayment of debt and capital lease obligations	—			(15,648		)	(1,463		)	—			(17,111		)
Advances from affiliates	—			—			(36		)	—			(36		)
Payment of in-orbit incentive obligations	—			(3,194		)	—			—			(3,194		)
Other, net	426			—			886			—			1,312
Net cash flows from financing activities	426			17,158			38,412			(75,025		)	(19,029		)
Effect of exchange rates on cash and cash equivalents	—			—			925			—			925
Net increase (decrease) in cash and cash equivalents, including restricted amounts	113,731			(24,630		)	7,232			—			96,333
Cash and cash equivalents, including restricted amounts, beginning of period	1,991,949			53,905			25,833			—			2,071,687
Cash and cash equivalents, including restricted amounts, end of period	$	2,105,680		$	29,275		$	33,065		$	—		$	2,168,020

Supplemental Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Schedule of Other Significant Noncash Transactions [Table Text Block]



	For The Six Months Ended June 30,
	2018			2017
Property and equipment financed under capital lease obligations	$	123		$	8,189
Decrease in capital expenditures included in accounts payable, net	$	(1,158	)	$	(2,120	)
Transfer of launch service contracts from (to) EchoStar	$	—		$	(145,114	)
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1)	$	—		$	219,662
Noncash net assets exchanged for HSS Tracking Stock (Note 1)	$	—		$	(190,221	)
Capitalized in-orbit incentive obligations	$	—		$	31,000
Contribution of EchoStar XIX satellite	$	—		$	514,448

Schedule of Cost of Sales and Research and Development Costs [Table Text Block]



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Cost of sales	$	6,290	$	6,785	$	12,888	$	13,686
Research and development	$	6,647	$	7,437	$	13,784	$	15,142

Organization and Business Activities (Details) - segment		6 Months Ended
	Feb. 28, 2017	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments		2
Hughes Retail Group \| DISH Network \| Satellite And Tracking Stock Transaction \| Hughes Retail Preferred Tracking Stock
Related party transactions
Percentage of economic interest in the Hughes Retail Group	80.00%
EchoStar Technologies Business \| DISH Network \| Share Exchange Agreement
Related party transactions
Ownership interest acquired by related party	100.00%

Summary of Significant Accounting Policies (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Fair Value Measurements
Amount of transfers between levels within the fair value hierarchy	$ 0	$ 0
Maximum
Capitalized Software Costs
Software Useful Life	5 years
Weighted Average
Capitalized Software Costs
Software Useful Life	4 years

Summary of Significant Accounting Policies - Schedule Of Cumulative Effects Change (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Assets
Trade accounts receivable and contract assets, net	$ 186,956	$ 189,737	$ 196,840
Other current assets	15,887	92,077	91,544
Other noncurrent assets, net	247,902	225,359	202,814
Assets	6,899,948	6,873,325	6,857,350
Liabilities
Contract liabilities	72,776	64,417	65,959
Accrued expenses and other	60,990	77,567	77,312
Deferred Income Tax Liabilities, Net		442,753
Other noncurrent liabilities	104,289	103,559	107,627
Liabilities	4,542,351	4,555,873	4,558,106
Equity [Abstract]
Accumulated other comprehensive loss	(82,089)	(52,389)	(52,822)
Accumulated earnings	660,690	600,458	582,683
Total shareholders’ equity	2,357,597	2,317,452	2,299,244	$ 2,027,867	$ 1,755,023
Liabilities and Equity	6,899,948	6,873,325	6,857,350
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net			196,840
Other current assets			91,544
Other noncurrent assets, net			202,814
Assets			6,857,350
Liabilities
Contract liabilities			65,959
Accrued expenses and other			77,312
Deferred Income Tax Liabilities, Net			439,631
Other noncurrent liabilities			107,627
Liabilities			4,558,106
Equity [Abstract]
Total shareholders’ equity			2,299,244
Liabilities and Equity			6,857,350
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member]
Equity [Abstract]
Accumulated other comprehensive loss			(52,822)
Accumulated earnings			$ 582,683
Accounting Standards Update 2014-09 [Member] \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net	194,085
Other current assets	15,354
Other noncurrent assets, net	218,024
Assets	6,876,666
Liabilities
Contract liabilities	73,754
Accrued expenses and other	60,735
Other noncurrent liabilities	106,703
Liabilities	4,541,191
Equity [Abstract]
Total shareholders’ equity	2,335,475
Liabilities and Equity	6,876,666
Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net	7,129	(7,103)
Other current assets	(533)	533
Other noncurrent assets, net	(29,878)	22,545
Assets	(23,282)	15,975
Liabilities
Contract liabilities	978	(1,542)
Accrued expenses and other	(255)	255
Deferred Income Tax Liabilities, Net		3,122
Other noncurrent liabilities	2,414	(4,068)
Liabilities	(1,160)	(2,233)
Equity [Abstract]
Accumulated other comprehensive loss		0
Accumulated earnings	(22,122)	18,208
Total shareholders’ equity	(22,122)	18,208
Liabilities and Equity	(23,282)	15,975
Accounting Standards Update 2016-01 [Member]
Equity [Abstract]
Accumulated other comprehensive loss	505	433
Accumulated earnings	$ (505)	(433)
Accumulated Earnings \| Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		$ 18,200

Summary of Significant Accounting Policies - Schedule of ASU Adoption Impact (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Trade accounts receivable and contract assets, net	$ 186,956		$ 186,956		$ 189,737	$ 196,840
Other current assets	15,887		15,887		92,077	91,544
Other noncurrent assets, net	247,902		247,902		225,359	202,814
Assets	6,899,948		6,899,948		6,873,325	6,857,350
Liabilities
Contract liabilities	72,776		72,776		64,417	65,959
Accrued expenses and other	60,990		60,990		77,567	77,312
Deferred tax liabilities, net	464,722		464,722			439,631
Other noncurrent liabilities	104,289		104,289		103,559	107,627
Liabilities	4,542,351		4,542,351		4,555,873	4,558,106
Equity [Abstract]
Accumulated other comprehensive loss	(82,089)		(82,089)		(52,389)	(52,822)
Accumulated earnings	660,690		660,690		600,458	582,683
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,357,597	$ 2,027,867	2,357,597	$ 2,027,867	2,317,452	2,299,244	$ 1,755,023
Liabilities and Equity	6,899,948		6,899,948		6,873,325	6,857,350
Revenue:
Services and other revenue - other	380,115	285,055	739,449	555,278
Total revenue	527,596	462,265	1,030,491	892,383
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	150,223	137,274	297,878	271,578
Selling, general and administrative expenses	93,375	86,115	188,025	160,493
Total costs and expenses	428,818	409,231	851,049	778,659
Operating Income (Loss)	98,778	53,034	179,442	113,724
Other income (expense):
Interest expense, net of amounts capitalized	(64,122)	(61,376)	(128,535)	(121,213)
Gain (Loss) on Investments	509	1,632	117	(1,575)
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments	(47,622)	(53,241)	(100,169)	(108,086)
Income (loss) before income taxes	51,156	(207)	79,273	5,638
Income tax benefit (provision)	(10,463)	509	(18,199)	4,091
Net income	40,693	302	61,074	9,729
Net income attributable to HSS	40,231	120	60,232	9,255
Comprehensive income
Net income	40,693	302	61,074	9,729
Unrealized gains (losses) on available-for-sale securities and other	329	(11)	(82)	(1,511)
Other-than-temporary impairment loss on available-for-sale securities in net income	0	0	0	3,298
Other Comprehensive Income (Loss), Net of Tax	(31,988)	(6,747)	(30,499)	7,172
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	8,705	(6,445)	30,575	16,901
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	8,828	$ (6,627)	30,532	$ 16,427
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member]
Equity [Abstract]
Accumulated other comprehensive loss						(52,822)
Accumulated earnings						582,683
Comprehensive income
Unrealized gains (losses) on available-for-sale securities and other	834		28
Other-than-temporary impairment loss on available-for-sale securities in net income			828
Other Comprehensive Income (Loss), Net of Tax	(31,483)		(29,561)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net						196,840
Other current assets						91,544
Other noncurrent assets, net						202,814
Assets						6,857,350
Liabilities
Contract liabilities						65,959
Accrued expenses and other						77,312
Other noncurrent liabilities						107,627
Liabilities						4,558,106
Equity [Abstract]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest						2,299,244
Liabilities and Equity						$ 6,857,350
Comprehensive income
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	6,451		26,662
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	6,574		26,619
Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net	7,129		7,129		(7,103)
Other current assets	(533)		(533)		533
Other noncurrent assets, net	(29,878)		(29,878)		22,545
Assets	(23,282)		(23,282)		15,975
Liabilities
Contract liabilities	978		978		(1,542)
Accrued expenses and other	(255)		(255)		255
Deferred tax liabilities, net	(4,297)		(4,297)
Other noncurrent liabilities	2,414		2,414		(4,068)
Liabilities	(1,160)		(1,160)		(2,233)
Equity [Abstract]
Accumulated other comprehensive loss					0
Accumulated earnings	(22,122)		(22,122)		18,208
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(22,122)		(22,122)		18,208
Liabilities and Equity	(23,282)		(23,282)		15,975
Revenue:
Services and other revenue - other	808		2,026
Total revenue	808		2,026
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	1,548		2,477
Selling, general and administrative expenses	2,434		4,855
Total costs and expenses	3,982		7,332
Operating Income (Loss)	(3,174)		(5,306)
Other income (expense):
Interest expense, net of amounts capitalized	126		218
Gain (Loss) on Investments	0		0
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments	126		218
Income (loss) before income taxes	(3,048)		(5,088)
Income tax benefit (provision)	794		1,175
Net income	(2,254)		(3,913)
Net income attributable to HSS	(2,254)		(3,913)
Comprehensive income
Net income	(2,254)		(3,913)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(2,254)		(3,913)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(2,254)		(3,913)
Accounting Standards Update 2014-09 [Member] \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Assets
Trade accounts receivable and contract assets, net	194,085		194,085
Other current assets	15,354		15,354
Other noncurrent assets, net	218,024		218,024
Assets	6,876,666		6,876,666
Liabilities
Contract liabilities	73,754		73,754
Accrued expenses and other	60,735		60,735
Deferred tax liabilities, net	460,425		460,425
Other noncurrent liabilities	106,703		106,703
Liabilities	4,541,191		4,541,191
Equity [Abstract]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,335,475		2,335,475
Liabilities and Equity	6,876,666		6,876,666
Revenue:
Services and other revenue - other	380,923		741,475
Total revenue	528,404		1,032,517
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	151,771		300,355
Selling, general and administrative expenses	95,809		192,880
Total costs and expenses	432,800		858,381
Operating Income (Loss)	95,604		174,136
Other income (expense):
Interest expense, net of amounts capitalized	(63,996)		(128,317)
Income tax benefit (provision)	(9,669)		(17,024)
Accounting Standards Update 2016-01 [Member]
Equity [Abstract]
Accumulated other comprehensive loss	505		505		433
Accumulated earnings	(505)		(505)		$ (433)
Other income (expense):
Gain (Loss) on Investments	(505)		(938)
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments	(505)		(938)
Income (loss) before income taxes	(505)		(938)
Net income	(505)		(938)
Net income attributable to HSS	(505)		(938)
Comprehensive income
Net income	(505)		(938)
Unrealized gains (losses) on available-for-sale securities and other	505		110
Other-than-temporary impairment loss on available-for-sale securities in net income			828
Other Comprehensive Income (Loss), Net of Tax	505		938
Accounting Standards Update 2014-09 And 2016-01 [Member] \| Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member]
Equity [Abstract]
Accumulated other comprehensive loss	(81,584)		(81,584)
Accumulated earnings	638,063		638,063
Other income (expense):
Gain (Loss) on Investments	4		(821)
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments	(48,001)		(100,889)
Income (loss) before income taxes	47,603		73,247
Net income	37,934		56,223
Net income attributable to HSS	37,472		55,381
Comprehensive income
Net income	$ 37,934		$ 56,223

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Receivables [Abstract]
Total trade accounts receivable	$ 153,690		$ 153,690			$ 167,149
Contract Asset	42,553		42,553			34,615
Allowance for doubtful accounts	(9,287)		(9,287)			(12,027)
Total trade accounts receivable and contract assets, net	186,956		186,956			189,737	$ 196,840
Trade accounts receivable - DISH Network	25,703		25,703			38,641	38,641
Contract with Customer, Asset and Liability [Abstract]
Contract liabilities	72,776		72,776			64,417	$ 65,959
Contract with Customer, Liability, Noncurrent	10,187		10,187			13,036
Contract with Customer, Liability	82,963		82,963			77,453
Change in Contract with Customer, Asset and Liability [Abstract]
Contract with Customer, Liability, Revenue Recognized			52,500
Revenue, Performance Obligation [Abstract]
Allowance for Loan and Lease Loss, Recovery of Bad Debts	2,300	$ 3,200	6,800	$ 5,700
Revenue, Remaining Performance Obligation	1,260,000		1,260,000
Trade accounts receivable
Receivables [Abstract]
Total trade accounts receivable	145,475		145,475			156,794
Trade accounts receivable - DISH Network	25,449		25,449			16,118
Lease Receivable [Member]
Receivables [Abstract]
Total trade accounts receivable	8,215		8,215			10,355
Trade accounts receivable - DISH Network	$ 254		$ 254			$ 22,523
Scenario, Forecast [Member]
Revenue, Performance Obligation [Abstract]
Revenue, Remaining Performance Obligation, Recognition In Period, Percentage					18.80%

Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Tax effects on unrealized gains or losses on available-for-sale securities			$ 0	$ 0
Tax effects on foreign currency translation adjustments			0	0
Cumulative foreign currency translation losses	$ (81,900,000)		(81,900,000)		$ (52,300,000)
Other-than-temporary impairment loss on available-for-sale securities	$ 509,000	$ 1,632,000	$ 117,000	(1,575,000)
Reclassification out of Accumulated Other Comprehensive Income \| Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (1)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other-than-temporary impairment loss on available-for-sale securities				$ 3,300,000

- 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 + Details

Marketable Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Marketable investment securities - current, at fair value:
Debt securities	$ 991,913	$ 454,500
Equity securities	1,213	1,102
Total marketable investment securities	993,126	455,602
Corporate bonds
Marketable investment securities - current, at fair value:
Debt securities	757,647	368,083
Other debt securities
Marketable investment securities - current, at fair value:
Debt securities	$ 234,266	$ 86,417

Marketable Investment Securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	$ 991,972	$ 454,716
Unrealized Gains	171	0
Unrealized Losses	(230)	(216)
Available-for-sale Securities, Debt Securities	991,913	454,500
Available-for-sale Securities, Debt Maturities [Abstract]
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	783,800
Available For Sale Securities Debt Maturities After Next Rolling Twelve Months Fair Value	208,100
Corporate bonds
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	757,703	368,291
Unrealized Gains	171	0
Unrealized Losses	(227)	(208)
Available-for-sale Securities, Debt Securities	757,647	368,083
Other debt securities
Unrealized Gains (Losses) on Available-For-Sale Securities
Amortized Cost	234,269	86,425
Unrealized Gains	0	0
Unrealized Losses	(3)	(8)
Available-for-sale Securities, Debt Securities	$ 234,266	$ 86,417

Marketable Investment Securities (Details 3) - USD ($)	3 Months Ended		6 Months Ended
Marketable Investment Securities (Details 3) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Gain (Loss) on Investments [Line Items]
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 8,900,000	$ 0	$ 8,900,000
Available-for-sale Securities, Gross Realized Gains		$ 0		0
Equity securities
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Equity Securities, Current					$ 1,100,000
Available-for-sale Equity Securities, Amortized Cost Basis					1,500,000
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax					$ 400,000
Other Nonoperating Income (Expense) [Member] \| Equity securities
Gain (Loss) on Investments [Line Items]
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net				$ 3,300,000
Gain (Loss) on Investments [Member] \| Equity securities
Gain (Loss) on Investments [Line Items]
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments	$ 500,000		$ 100,000

Marketable Investment Securities (Details 4) - USD ($)	3 Months Ended		6 Months Ended
Marketable Investment Securities (Details 4) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair value of marketable securities
Debt securities	$ 991,913,000		$ 991,913,000		$ 454,500,000
Equity securities	1,213,000		1,213,000		1,102,000
Proceeds from Sale of Available-for-sale Securities	0	$ 8,900,000	0	$ 8,900,000
Corporate bonds
Fair value of marketable securities
Debt securities	757,647,000		757,647,000		368,083,000
Other debt securities
Fair value of marketable securities
Debt securities	234,266,000		234,266,000		86,417,000
Level 3
Fair value of marketable securities
Fair value of investments	0		0		0
Fair value measurements on recurring basis
Fair value of marketable securities
Debt securities	991,913,000		991,913,000		454,500,000
Equity securities	1,213,000		1,213,000		1,102,000
Total marketable investment securities	993,126,000		993,126,000		455,602,000
Fair value measurements on recurring basis \| Corporate bonds
Fair value of marketable securities
Debt securities	757,647,000		757,647,000		368,083,000
Fair value measurements on recurring basis \| Other debt securities
Fair value of marketable securities
Debt securities	234,266,000		234,266,000		86,417,000
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Debt securities	0		0		0
Equity securities	1,213,000		1,213,000		1,102,000
Total marketable investment securities	1,213,000		1,213,000		1,102,000
Fair value measurements on recurring basis \| Level 1 \| Corporate bonds
Fair value of marketable securities
Debt securities	0		0		0
Fair value measurements on recurring basis \| Level 1 \| Other debt securities
Fair value of marketable securities
Debt securities	0		0		0
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Debt securities	991,913,000		991,913,000		454,500,000
Equity securities	0		0		0
Total marketable investment securities	991,913,000		991,913,000		454,500,000
Fair value measurements on recurring basis \| Level 2 \| Corporate bonds
Fair value of marketable securities
Debt securities	757,647,000		757,647,000		368,083,000
Fair value measurements on recurring basis \| Level 2 \| Other debt securities
Fair value of marketable securities
Debt securities	$ 234,266,000		$ 234,266,000		$ 86,417,000

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory, Net [Abstract]
Raw materials	$ 6,291	$ 5,484
Work-in-process	8,691	7,442
Finished goods	66,406	70,669
Total inventory	$ 81,388	$ 83,595

Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property and equipment
Total property and equipment	$ 5,188,850	$ 5,305,002
Accumulated depreciation	(2,546,186)	(2,551,904)
Property and equipment, net	2,642,664	2,753,098
Land
Property and equipment
Total property and equipment	13,402	13,475
Buildings and improvements
Property and equipment
Total property and equipment	$ 128,043	128,292
Buildings and improvements \| Minimum
Property and equipment
Depreciable Life	1 year
Buildings and improvements \| Maximum
Property and equipment
Depreciable Life	40 years
Furniture, fixtures, equipment and other
Property and equipment
Total property and equipment	$ 672,596	650,385
Furniture, fixtures, equipment and other \| Minimum
Property and equipment
Depreciable Life	1 year
Furniture, fixtures, equipment and other \| Maximum
Property and equipment
Depreciable Life	12 years
Customer rental equipment
Property and equipment
Total property and equipment	$ 1,032,591	929,775
Customer rental equipment \| Minimum
Property and equipment
Depreciable Life	2 years
Customer rental equipment \| Maximum
Property and equipment
Depreciable Life	4 years
Satellites - owned
Property and equipment
Total property and equipment	$ 2,268,862	2,516,685
Satellites - owned \| Minimum
Property and equipment
Depreciable Life	2 years
Satellites - owned \| Maximum
Property and equipment
Depreciable Life	15 years
Satellites - acquired under capital leases
Property and equipment
Total property and equipment	$ 899,310	916,820
Satellites - acquired under capital leases \| Minimum
Property and equipment
Depreciable Life	10 years
Satellites - acquired under capital leases \| Maximum
Property and equipment
Depreciable Life	15 years
Construction in progress
Property and equipment
Total property and equipment	$ 174,046	$ 149,570

Property and Equipment (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property and equipment
Construction in progress	$ 174,046	$ 149,570
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs
Property and equipment
Construction in progress	113,658	101,733
Satellite related equipment
Property and equipment
Construction in progress	25,738	28,358
Other
Property and equipment
Construction in progress	$ 34,650	$ 19,479

Property and Equipment (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Property and Equipment (Details 3) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Depreciation expense
Total depreciation expense	$ 127,385	$ 112,780	$ 251,938	$ 213,459
Satellites
Depreciation expense
Total depreciation expense	61,910	57,322	120,943	109,466
Furniture, fixtures, equipment and other
Depreciation expense
Total depreciation expense	18,633	15,875	39,407	32,557
Customer rental equipment
Depreciation expense
Total depreciation expense	42,875	34,081	86,323	64,677
Buildings and improvements
Depreciation expense
Total depreciation expense	$ 3,967	$ 5,502	$ 5,265	$ 6,759

Property and Equipment (Details 4) $ in Millions	1 Months Ended		3 Months Ended	6 Months Ended	11 Months Ended	12 Months Ended
Property and Equipment (Details 4) $ in Millions	Dec. 31, 2017 solar_array_circuit	Oct. 31, 2017 USD ($)	Jun. 30, 2018 USD ($) satellite	Jun. 30, 2018 USD ($) satellite mi	Nov. 30, 2017 solar_array_circuit	Dec. 31, 2017 solar_array_circuit
Satellites
Property and equipment
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator \| satellite				14
Satellites in Geosynchronous Orbit Length Above Equator \| mi				22,300
Number of satellites utilized under capital lease \| satellite			4	4
EchoStar 105/SES-11 [Member]
Property and equipment
Lessee, Finance Lease, Term of Contract						10 years
Echo Star X [Member]
Property and equipment
Revenue, Net, Reduction In Period \| $			$ (1.1)	$ (2.3)
Number Of Solar Array Circuits Affected \| solar_array_circuit	1				7
Number Of Functional Solar Array Circuits \| solar_array_circuit	16					16
Telesat 19V satellite [Member]
Property and equipment
Lessee, Finance Lease, Term of Contract						15 years
Other Current Assets [Member] \| EchoStar 105/SES-11 [Member]
Property and equipment
Other Significant Noncash Transaction, Value of Consideration Received \| $		$ 77.5

Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Equity method	$ 12,879	$ 15,149
Other equity investments without a readily determinable fair value	15,438	15,438
Total investments in unconsolidated entities	$ 28,317	$ 30,587

Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt and Capital Lease Obligations
Fair Value	$ 3,383,758	$ 3,596,524
Carrying amount	3,369,048	3,365,143
Capital lease obligations	251,245	269,701
Total debt and capital lease obligations	3,620,293	3,634,844
Less: Current portion	(1,028,119)	(40,631)
Long-term debt and capital lease obligations, net	$ 2,592,174	$ 3,594,213
6 1/2% Senior Secured Notes due 2019
Debt and Capital Lease Obligations
Interest rate	6.50%	6.50%
Effective Interest Rate	6.959%
Carrying Amount	$ 990,000	$ 990,000
Fair Value	$ 1,014,651	$ 1,042,609
5 1/4% Senior Secured Notes due 2026
Debt and Capital Lease Obligations
Interest rate	5.25%	5.25%
Effective Interest Rate	5.32%
Carrying Amount	$ 750,000	$ 750,000
Fair Value	$ 707,828	$ 769,305
7 5/8% Senior Unsecured Notes due 2021
Debt and Capital Lease Obligations
Interest rate	7.625%	7.625%
Effective Interest Rate	8.062%
Carrying Amount	$ 900,000	$ 900,000
Fair Value	$ 962,586	$ 992,745
6 5/8% Senior Unsecured Notes due 2026
Debt and Capital Lease Obligations
Interest rate	6.625%	6.625%
Effective Interest Rate	6.688%
Carrying Amount	$ 750,000	$ 750,000
Fair Value	698,693	791,865
Unamortized debt issuance costs
Debt and Capital Lease Obligations
Less: Unamortized debt issuance costs	$ (20,952)	$ (24,857)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ (10,463)	$ 509	$ (18,199)	$ 4,091
Effective income tax rate	20.50%	245.90%	23.00%	(72.60%)

Commitments and Contingencies (Details) $ in Millions			1 Months Ended	6 Months Ended
Commitments and Contingencies (Details) $ in Millions	Aug. 07, 2017 USD ($)	Feb. 14, 2017 claim patent	Nov. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) claim
Realtime Data LLC [Member]
Loss Contingency [Abstract]
Loss Contingency, Invalidated Claims, Number \| claim				2
Loss Contingency, Pending Claims, Number \| claim				4
Loss Contingency, Patents Allegedly Infringed, Number \| patent		4
Subsidiaries \| Hughes Network Systems \| Elbit
Loss Contingency [Abstract]
Loss Contingency, Damages Awarded, Value	$ 21.1		$ 28.5
Loss Contingency, Attorney's Fees Sought, Value				$ 13.9
Loss Contingency Accrual				2.8
Satellite-related obligations
Other Commitments [Line Items]
Satellite-related obligations				$ 562.0
Patent 728 [Member] \| Realtime Data LLC [Member]
Loss Contingency [Abstract]
Loss Contingency, Pending Claims, Validity Not Challenged \| claim		1

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Reporting (Details) $ in Thousands	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)
Segment Reporting [Abstract]
Number of business segments \| segment			2
Segment Reporting
Total revenue	$ 527,596	$ 462,265	$ 1,030,491	$ 892,383
EBITDA	237,238	178,644	451,727	350,413
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures	87,867	101,169	98,120	175,344
Interest income and expense, net	(49,836)	(54,290)	(102,870)	(108,286)
Depreciation and amortization	(136,708)	(124,743)	(270,426)	(236,963)
Net income attributable to noncontrolling interests	462	182	842	474
Income (loss) before income taxes	51,156	(207)	79,273	5,638
Hughes Business
Segment Reporting
Total revenue	426,306	362,403	826,765	691,013
Hughes Business \| Intersegment Elimination
Segment Reporting
Total revenue	0	359	359	1,069
Hughes Business \| Operating segments
Segment Reporting
Total revenue	426,306	362,762	827,124	692,082
EBITDA	152,134	110,024	288,847	210,876
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures	87,511	96,529	174,802	162,196
EchoStar Satellite Services Business [Member]
Segment Reporting
Total revenue	94,904	97,945	191,127	198,096
EchoStar Satellite Services Business [Member] \| Intersegment Elimination
Segment Reporting
Total revenue	521	421	1,051	596
EchoStar Satellite Services Business [Member] \| Operating segments
Segment Reporting
Total revenue	95,425	98,366	192,178	198,692
EBITDA	82,483	80,465	166,633	163,528
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures	356	4,640	(76,682)	13,148
Corporate and Other
Segment Reporting
Total revenue	6,386	1,917	12,599	3,274
Corporate and Other \| Intersegment Elimination
Segment Reporting
Total revenue	(521)	(780)	(1,410)	(1,665)
Corporate and Other \| Corporate and Other
Segment Reporting
Total revenue	5,865	1,137	11,189	1,609
EBITDA	2,621	(11,845)	(3,753)	(23,991)
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures	$ 0	$ 0	$ 0	$ 0

Segment Reporting Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 381,661		$ 746,347
Lease Income	145,935		284,144
Revenue, Net	527,596	$ 462,265	1,030,491	$ 892,383
Equipment
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	50,341		93,288
Services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	317,444		623,007
Design, development and construction services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	13,876		30,052
U.S.
Disaggregation of Revenue [Line Items]
Revenue, Net	438,186		850,571
Canada and Mexico
Disaggregation of Revenue [Line Items]
Revenue, Net	20,969		42,388
All Other Geographic Regions [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	68,441		137,532
Hughes Business
Disaggregation of Revenue [Line Items]
Revenue, Net	426,306	362,403	826,765	691,013
EchoStar Satellite Services Business [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	94,904	97,945	191,127	198,096
Corporate and Other
Disaggregation of Revenue [Line Items]
Revenue, Net	6,386	1,917	12,599	3,274
Operating segments \| Hughes Business
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	374,442		731,350
Lease Income	51,864		95,774
Revenue, Net	426,306	362,762	827,124	692,082
Operating segments \| Hughes Business \| Equipment
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	50,341		93,288
Operating segments \| Hughes Business \| Services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	310,225		608,010
Operating segments \| Hughes Business \| Design, development and construction services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	13,876		30,052
Operating segments \| Hughes Business \| U.S.
Disaggregation of Revenue [Line Items]
Revenue, Net	347,575		668,013
Operating segments \| Hughes Business \| Canada and Mexico
Disaggregation of Revenue [Line Items]
Revenue, Net	15,132		30,714
Operating segments \| Hughes Business \| All Other Geographic Regions [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	63,599		128,397
Operating segments \| EchoStar Satellite Services Business [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	6,890		14,293
Lease Income	88,535		177,885
Revenue, Net	95,425	98,366	192,178	198,692
Operating segments \| EchoStar Satellite Services Business [Member] \| Equipment
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	0		0
Operating segments \| EchoStar Satellite Services Business [Member] \| Services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	6,890		14,293
Operating segments \| EchoStar Satellite Services Business [Member] \| Design, development and construction services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	0		0
Operating segments \| EchoStar Satellite Services Business [Member] \| U.S.
Disaggregation of Revenue [Line Items]
Revenue, Net	89,412		180,153
Operating segments \| EchoStar Satellite Services Business [Member] \| Canada and Mexico
Disaggregation of Revenue [Line Items]
Revenue, Net	5,837		11,674
Operating segments \| EchoStar Satellite Services Business [Member] \| All Other Geographic Regions [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	176		351
Corporate and Other \| Corporate and Other
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	329		704
Lease Income	5,536		10,485
Revenue, Net	5,865	$ 1,137	11,189	$ 1,609
Corporate and Other \| Corporate and Other \| Equipment
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	0		0
Corporate and Other \| Corporate and Other \| Services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	329		704
Corporate and Other \| Corporate and Other \| Design, development and construction services
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	0		0
Corporate and Other \| Corporate and Other \| U.S.
Disaggregation of Revenue [Line Items]
Revenue, Net	1,199		2,405
Corporate and Other \| Corporate and Other \| Canada and Mexico
Disaggregation of Revenue [Line Items]
Revenue, Net	0		0
Corporate and Other \| Corporate and Other \| All Other Geographic Regions [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	$ 4,666		$ 8,784

Related Party Transactions (Details)			1 Months Ended															3 Months Ended		6 Months Ended
Related Party Transactions (Details)	Feb. 28, 2017	Feb. 01, 2017 USD ($)	Feb. 28, 2022	Dec. 31, 2017 USD ($)	Aug. 31, 2017	Jun. 30, 2017 USD ($)	May 31, 2017	Mar. 31, 2017 USD ($)	Nov. 30, 2016	Jul. 31, 2016	Aug. 31, 2015	Dec. 31, 2012	Oct. 31, 2012	May 31, 2012	Dec. 31, 2009	Sep. 30, 2009 transponder	Nov. 30, 2008 transponder	Jun. 30, 2018 USD ($) transponder	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) transponder	Jun. 30, 2017 USD ($)	Feb. 28, 2013 transponder	Mar. 31, 2012	Sep. 30, 2010 USD ($)
Related party transactions
Contribution of EchoStar XIX satellite																					$ 369,263,000
Contribution of Property																					219,662,000
Transfer of launch service contracts to EchoStar																					145,114,000
Hughes Broadband Distribution Agreement
Related party transactions
Agreement term													5 years
Required minimum notice for termination of agreement																				180 days
Automatic renewal period																				1 year
Ciel \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Lessee, Operating Lease, Term of Contract														10 years
Additional Paid-In Capital
Related party transactions
Contribution of EchoStar XIX satellite																					369,263,000
One-year LIBOR \| Related-Party Advances \| Minimum
Related party transactions
Variable interest rates																				1.00%
One-year LIBOR \| Related-Party Advances \| Maximum
Related party transactions
Variable interest rates																				3.00%
EchoStar
Related party transactions
Related Party Transaction, Expenses from Transactions with Related Party																		$ 5,200,000	$ 6,500,000	$ 9,600,000	11,500,000
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum																				30 days
EchoStar Operating \| DBS Transponder Lease [Member]
Related party transactions
Revenue from Related Parties																		5,800,000	5,800,000	$ 11,700,000	11,700,000
Receivables from related parties				$ 7,600,000														5,900,000		5,900,000
EchoStar Mobile Limited
Related party transactions
Revenue from Related Parties																		$ 4,700,000	$ 0	$ 8,800,000	$ 0
DISH Network \| Satellite And Tracking Stock Transaction \| Hughes Retail Preferred Tracking Stock \| Hughes Retail Group
Related party transactions
Percentage of economic interest in the Hughes Retail Group	80.00%
DISH Network \| TT&C Agreement
Related party transactions
Agreement term				1 month					1 year
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum																				12 months
DISH Network \| TerreStar Agreement
Related party transactions
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum																				21 days
Required minimum notice for termination of agreement																				90 days
DISH Network \| DBSD North America Agreement
Related party transactions
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum																				120 days
Required minimum notice for termination of agreement																				21 days
Ownership interest acquired by related party																							100.00%
DISH Network \| DBSD North America Agreement \| Subsequent Event
Related party transactions
Agreement term			5 years
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum			180 days
DISH Network \| RUS Implementation Agreement
Related party transactions
Grants receivable by related party																								$ 14,100,000
DISH Network \| Amended and Restated Professional Services Agreement [Member]
Related party transactions
Required minimum notice for termination of agreement																				60 days
Automatic renewal period																				1 year
Required minimum notice for termination of individual service																				30 days
DISH Network \| Collocation and Antenna Space Agreements
Related party transactions
Required minimum notice period for termination of agreement by the reporting entity																				180 days
Related Party Transactions Agreement, Renewal Option, Term											4 years									3 years
DISH Network \| Minimum \| Collocation and Antenna Space Agreements
Related party transactions
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity																				90 days
DISH Network \| Maximum \| Collocation and Antenna Space Agreements
Related party transactions
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity																				120 days
EchoStar XIX \| EchoStar
Related party transactions
Contribution of Property		$ 514,400,000
Deferred Tax Liabilities, Deferred Expense		165,100,000
EchoStar XIX \| EchoStar \| Additional Paid-In Capital
Related party transactions
Contribution of EchoStar XIX satellite		$ 349,300,000
EchoStar XXI [Member] \| EchoStar Operating \| Other Noncurrent Assets
Related party transactions
Transfer of launch service contracts to EchoStar						$ (83,300,000)
EchoStar XXI [Member] \| EchoStar Operating \| Additional Paid-In Capital
Related party transactions
Transfer of launch service contracts to EchoStar						$ (83,300,000)
EchoStar XXIII [Member] \| EchoStar Operating \| Other Noncurrent Assets
Related party transactions
Transfer of launch service contracts to EchoStar								$ (61,800,000)
EchoStar XXIII [Member] \| EchoStar Operating \| Additional Paid-In Capital
Related party transactions
Transfer of launch service contracts to EchoStar								$ (61,800,000)
EchoStar XVI \| DISH Network \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Lessor, Operating Lease, Term of Contract															10 years
Lessor, Operating Lease, Renewal Term							5 years			1 year
Related Party Transactions Agreement Term from Commencement of Service Date												4 years
Renewal option reduction in years										1 year
Additional term of renewal option																				5 years
Nimiq5 [Member] \| Telesat \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Lessee, Operating Lease, Term of Contract																15 years
Number of DBS transponders available \| transponder																32
Nimiq5 [Member] \| DISH Network \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Number of DBS transponders available \| transponder																32
QuetzSat-1 [Member] \| SES Latin America \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Lessee, Operating Lease, Term of Contract																	10 years
Related Party Transactions Number of DBS Transponders Expected to Receive Services Per Agreement \| transponder																	32
QuetzSat-1 [Member] \| EchoStar Operating \| DBS Transponder Lease [Member]
Related party transactions
Number of DBS transponders currently receiving services \| transponder																		8		8
QuetzSat-1 [Member] \| DISH Network \| Satellite Capacity Lease Agreement [Member]
Related party transactions
Number of DBS transponders currently receiving services \| transponder																	24
Number of DBS transponders currently receiving services subleased back from related party \| transponder																						5
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] \| DISH Network \| Cheyenne Lease Agreement [Member]
Related party transactions
Related Party Transactions, Required Minimum Notice Period for Termination of Agreement After Lease Extension																				30 days
Related Party Transactions, Lessee, Operating Lease, Real Estate \| DISH Network \| American Fork Occupancy License Agreement [Member]
Related party transactions
Lessee, Operating Lease, Term of Contract					5 years
6 1/2% Senior Secured Notes due 2019
Related party transactions
Interest rate				6.50%														6.50%		6.50%
5 1/4% Senior Secured Notes due 2026
Related party transactions
Interest rate				5.25%														5.25%		5.25%

Related Party Transactions (Details 2) $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
Related Party Transactions (Details 2) $ in Millions	Mar. 02, 2014 USD ($) satellite	Mar. 31, 2017	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Feb. 28, 2017	Oct. 01, 2013 subsidiary
California Institute Of Technology
Related party transactions
Number of Subsidiaries Against which Lawsuit Filed \| subsidiary								2
Satellite And Tracking Stock Transaction \| DISH Network
Related party transactions
Proceeds from issuance of Tracking Stock	$ 11.4
Hughes Broadband Master Services Agreement [Member] \| DISH Network
Related party transactions
Agreement term		5 years
Automatic renewal period					1 year
Required minimum notice for termination of agreement					90 days
Contract Revenue Cost			$ 6.2	$ 4.8	$ 19.9	$ 4.8
EchoStar and HSSC \| Satellite And Tracking Stock Transaction \| DISH Network
Related party transactions
Related Party Transactions Number of Owned Satellites Transferred \| satellite	5
EchoStar Technologies Business \| Share Exchange Agreement \| DISH Network
Related party transactions
Ownership interest acquired by related party							100.00%

Related Party Transactions (Details 3) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details 3) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Hughes Systique
Related party transactions
Ownership interest in related party			43.70%
Ownership interest percentage by related party			25.60%
Deluxe/EchoStar LLC
Related party transactions
Equity interest in joint ventures	50.00%		50.00%
Revenue from Related Parties	$ 1,100,000	$ 1,100,000	$ 2,200,000	$ 2,400,000
Receivables from related parties	1,000,000.0		1,000,000.0		$ 1,100,000
AsiaSat
Related party transactions
Related Party Transaction, Expenses from Transactions with Related Party		0		0
Global IP Revenue [Member]
Related party transactions
Revenue from Related Parties	500,000	$ 0	600,000	$ 0
TerreStar Solutions, Inc. [Member]
Related party transactions
Revenue from Related Parties	$ 300,000		$ 300,000
Cost Method Investment Nonvoting Interest Ownership Percentage	33.00%		33.00%
Receivables from related parties	$ 1,100,000		$ 1,100,000

Supplemental Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 1,509,238		$ 1,822,561
Marketable investment securities, at fair value	993,126		455,602
Trade accounts receivable and contract assets, net	186,956	$ 189,737	196,840
Trade accounts receivable - DISH Network	25,703	38,641	38,641
Inventory	81,388		83,595
Advances to affiliates, net	103,631		114,858
Other current assets	59,925		130,341
Total current assets	2,959,967		2,842,438
Property and equipment, net	2,642,664		2,753,098
Regulatory authorizations	465,658		465,658
Goodwill	504,173		504,173
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	51,267		58,582
Investments in unconsolidated entities	28,317		30,587
Investment in subsidiaries	0		0
Advances to affiliates	0		0
Deferred tax asset	8,229		3,700
Other noncurrent assets, net	239,673		199,114
Total assets	6,899,948	6,873,325	6,857,350
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	97,116		102,816
Trade accounts payable - DISH Network	445		3,769
Current portion of long-term debt and capital lease obligations	1,028,119		40,631
Advances from affiliates, net	771		477
Accrued expenses and other	221,190		235,227
Total current liabilities	1,347,641		382,920
Long-term debt and capital lease obligations, net	2,592,174		3,594,213
Deferred tax liabilities, net	464,722		439,631
Advances from affiliates	33,525		33,715
Other non-current liabilities	104,289		107,627
Total HSS shareholders’ equity (deficit)	2,342,732		2,284,422
Noncontrolling interests	14,865		14,822
Total liabilities and shareholders’ equity	6,899,948	$ 6,873,325	6,857,350
Eliminations
Assets
Cash and cash equivalents	0		0
Marketable investment securities, at fair value	0		0
Trade accounts receivable and contract assets, net	0		0
Trade accounts receivable - DISH Network	0		0
Inventory	0		0
Advances to affiliates, net	(321,553)		(241,548)
Other current assets	(87)		(401)
Total current assets	(321,640)		(241,949)
Property and equipment, net	0		0
Regulatory authorizations	0		0
Goodwill	0		0
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	0		0
Investments in unconsolidated entities	0		0
Investment in subsidiaries	(3,437,218)		(3,464,998)
Advances to affiliates	(87,361)		(81,444)
Deferred tax asset	(130,728)		(110,546)
Other noncurrent assets, net	0		0
Total assets	(3,976,947)		(3,898,937)
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	0		0
Trade accounts payable - DISH Network	0		0
Current portion of long-term debt and capital lease obligations	0		0
Advances from affiliates, net	(321,553)		(241,548)
Accrued expenses and other	(87)		(401)
Total current liabilities	(321,640)		(241,949)
Long-term debt and capital lease obligations, net	0		0
Deferred tax liabilities, net	(130,728)		(110,546)
Advances from affiliates	(87,361)		(81,444)
Other non-current liabilities	0		0
Total HSS shareholders’ equity (deficit)	(3,437,218)		(3,464,998)
Noncontrolling interests	0		0
Total liabilities and shareholders’ equity	(3,976,947)		(3,898,937)
HSS
Assets
Cash and cash equivalents	1,439,619		1,746,878
Marketable investment securities, at fair value	991,913		454,500
Trade accounts receivable and contract assets, net	0		0
Trade accounts receivable - DISH Network	0		0
Inventory	0		0
Advances to affiliates, net	7,829		119,605
Other current assets	109		64
Total current assets	2,439,470		2,321,047
Property and equipment, net	0		0
Regulatory authorizations	0		0
Goodwill	0		0
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	0		0
Investments in unconsolidated entities	0		0
Investment in subsidiaries	3,249,869		3,260,790
Advances to affiliates	700		700
Deferred tax asset	130,728		110,546
Other noncurrent assets, net	0		0
Total assets	5,820,767		5,693,083
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	0		0
Trade accounts payable - DISH Network	0		0
Current portion of long-term debt and capital lease obligations	985,773		0
Advances from affiliates, net	63,264		0
Accrued expenses and other	45,723		43,518
Total current liabilities	1,094,760		43,518
Long-term debt and capital lease obligations, net	2,383,275		3,365,143
Deferred tax liabilities, net	0		0
Advances from affiliates	0		0
Other non-current liabilities	0		0
Total HSS shareholders’ equity (deficit)	2,342,732		2,284,422
Noncontrolling interests	0		0
Total liabilities and shareholders’ equity	5,820,767		5,693,083
Guarantor Subsidiaries
Assets
Cash and cash equivalents	42,385		42,373
Marketable investment securities, at fair value	1,213		1,102
Trade accounts receivable and contract assets, net	122,726		133,735
Trade accounts receivable - DISH Network	25,217		38,286
Inventory	54,030		59,711
Advances to affiliates, net	399,924		229,488
Other current assets	25,111		98,890
Total current assets	670,606		603,585
Property and equipment, net	2,371,631		2,459,703
Regulatory authorizations	465,658		465,658
Goodwill	504,173		504,173
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	51,267		58,582
Investments in unconsolidated entities	28,317		30,587
Investment in subsidiaries	187,349		204,208
Advances to affiliates	86,661		80,744
Deferred tax asset	0		0
Other noncurrent assets, net	228,965		185,839
Total assets	4,594,627		4,593,079
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	85,524		82,300
Trade accounts payable - DISH Network	445		3,769
Current portion of long-term debt and capital lease obligations	37,888		35,886
Advances from affiliates, net	185,102		185,161
Accrued expenses and other	132,295		145,362
Total current liabilities	441,254		452,478
Long-term debt and capital lease obligations, net	207,540		226,997
Deferred tax liabilities, net	594,493		549,217
Advances from affiliates	0		0
Other non-current liabilities	101,884		104,249
Total HSS shareholders’ equity (deficit)	3,249,456		3,260,138
Noncontrolling interests	0		0
Total liabilities and shareholders’ equity	4,594,627		4,593,079
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	27,234		33,310
Marketable investment securities, at fair value	0		0
Trade accounts receivable and contract assets, net	64,230		63,105
Trade accounts receivable - DISH Network	486		355
Inventory	27,358		23,884
Advances to affiliates, net	17,431		7,313
Other current assets	34,792		31,788
Total current assets	171,531		159,755
Property and equipment, net	271,033		293,395
Regulatory authorizations	0		0
Goodwill	0		0
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively	0		0
Investments in unconsolidated entities	0		0
Investment in subsidiaries	0		0
Advances to affiliates	0		0
Deferred tax asset	8,229		3,700
Other noncurrent assets, net	10,708		13,275
Total assets	461,501		470,125
Liabilities and Shareholders’ Equity (Deficit)
Trade accounts payable	11,592		20,516
Trade accounts payable - DISH Network	0		0
Current portion of long-term debt and capital lease obligations	4,458		4,745
Advances from affiliates, net	73,958		56,864
Accrued expenses and other	43,259		46,748
Total current liabilities	133,267		128,873
Long-term debt and capital lease obligations, net	1,359		2,073
Deferred tax liabilities, net	957		960
Advances from affiliates	120,886		115,159
Other non-current liabilities	2,405		3,378
Total HSS shareholders’ equity (deficit)	187,762		204,860
Noncontrolling interests	14,865		14,822
Total liabilities and shareholders’ equity	$ 461,501		$ 470,125

Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Services and other revenue - DISH Network	$ 97,140	$ 110,921	$ 197,754	$ 222,411
Services and other revenue - other	380,115	285,055	739,449	555,278
Equipment revenue	50,341	66,289	93,288	114,694
Total revenue	527,596	462,265	1,030,491	892,383
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	150,223	137,274	297,878	271,578
Cost of sales - equipment (exclusive of depreciation and amortization)	41,865	53,662	80,936	94,483
Selling, general and administrative expenses	93,375	86,115	188,025	160,493
Research and development expenses	6,647	7,437	13,784	15,142
Depreciation and amortization	136,708	124,743	270,426	236,963
Total costs and expenses	428,818	409,231	851,049	778,659
Operating income	98,778	53,034	179,442	113,724
Other income (expense):
Interest income	14,286	7,086	25,665	12,927
Interest expense, net of amounts capitalized	(64,122)	(61,376)	(128,535)	(121,213)
Gain (Loss) on Investments	509	1,632	117	(1,575)
Equity in earnings of unconsolidated affiliate	1,238	1,639	2,730	3,350
Equity in earnings (losses) of subsidiaries, net	0	0	0	0
Other, net	467	(2,222)	(146)	(1,575)
Total other expense, net	(47,622)	(53,241)	(100,169)	(108,086)
Income (loss) before income taxes	51,156	(207)	79,273	5,638
Income tax benefit (provision)	(10,463)	509	(18,199)	4,091
Net income (loss)	40,693	302	61,074	9,729
Less: Net income attributable to noncontrolling interests	462	182	842	474
Net income attributable to HSS	40,231	120	60,232	9,255
Comprehensive Income (Loss):
Net income (loss)	40,693	302	61,074	9,729
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(32,314)	(6,736)	(30,414)	5,385
Unrealized gains (losses) on available-for-sale securities and other	329	(11)	(82)	(1,511)
Other-than-temporary impairment loss on available-for-sale securities in net income	0	0	0	3,298
Realized gains on available-for-sale securities in net income	(3)	0	(3)	0
Equity in other comprehensive income (loss) of subsidiaries, net	0	0	0	0
Total other comprehensive income (loss), net of tax	(31,988)	(6,747)	(30,499)	7,172
Comprehensive income (loss)	8,705	(6,445)	30,575	16,901
Less: Comprehensive income attributable to noncontrolling interests	(123)	182	43	474
Comprehensive income (loss) attributable to HSS	8,828	(6,627)	30,532	16,427
Eliminations
Revenue:
Services and other revenue - DISH Network	0	0	0	0
Services and other revenue - other	(9,139)	(6,917)	(18,989)	(12,429)
Equipment revenue	(7,859)	(20,575)	(15,928)	(28,082)
Total revenue	(16,998)	(27,492)	(34,917)	(40,511)
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	(8,545)	(5,656)	(17,942)	(11,011)
Cost of sales - equipment (exclusive of depreciation and amortization)	(7,891)	(21,167)	(15,928)	(28,027)
Selling, general and administrative expenses	(562)	(669)	(1,047)	(1,473)
Research and development expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
Total costs and expenses	(16,998)	(27,492)	(34,917)	(40,511)
Operating income	0	0	0	0
Other income (expense):
Interest income	(1,599)	(199)	(1,798)	(398)
Interest expense, net of amounts capitalized	1,599	199	1,798	398
Gain (Loss) on Investments	0	0	0	0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	(66,019)	(28,640)	(118,581)	(64,298)
Other, net	0	0	0	0
Total other expense, net	(66,019)	(28,640)	(118,581)	(64,298)
Income (loss) before income taxes	(66,019)	(28,640)	(118,581)	(64,298)
Income tax benefit (provision)	0	0	0	0
Net income (loss)	(66,019)	(28,640)	(118,581)	(64,298)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	(66,019)	(28,640)	(118,581)	(64,298)
Comprehensive Income (Loss):
Net income (loss)	(66,019)	(28,640)	(118,581)	(64,298)
Other comprehensive income, net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	0	0	0	0
Other-than-temporary impairment loss on available-for-sale securities in net income				0
Realized gains on available-for-sale securities in net income	0		0
Equity in other comprehensive income (loss) of subsidiaries, net	63,740	13,538	59,712	(12,630)
Total other comprehensive income (loss), net of tax	63,740	13,538	59,712	(12,630)
Comprehensive income (loss)	(2,279)	(15,102)	(58,869)	(76,928)
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	(2,279)	(15,102)	(58,869)	(76,928)
HSS
Revenue:
Services and other revenue - DISH Network	0	0	0	0
Services and other revenue - other	0	0	0	0
Equipment revenue	0	0	0	0
Total revenue	0	0	0	0
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	0	0	0	0
Cost of sales - equipment (exclusive of depreciation and amortization)	0	0	0	0
Selling, general and administrative expenses	0	0	0	0
Research and development expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
Total costs and expenses	0	0	0	0
Operating income	0	0	0	0
Other income (expense):
Interest income	13,768	6,733	24,529	12,223
Interest expense, net of amounts capitalized	(57,479)	(57,336)	(114,924)	(114,635)
Gain (Loss) on Investments	0	0	0	0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	74,180	33,078	130,439	74,937
Other, net	3	0	6	0
Total other expense, net	30,472	(17,525)	40,050	(27,475)
Income (loss) before income taxes	30,472	(17,525)	40,050	(27,475)
Income tax benefit (provision)	9,759	17,645	20,182	36,730
Net income (loss)	40,231	120	60,232	9,255
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	40,231	120	60,232	9,255
Comprehensive Income (Loss):
Net income (loss)	40,231	120	60,232	9,255
Other comprehensive income, net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	470	(21)	159	(48)
Other-than-temporary impairment loss on available-for-sale securities in net income				0
Realized gains on available-for-sale securities in net income	(3)		(3)
Equity in other comprehensive income (loss) of subsidiaries, net	(31,870)	(6,726)	(29,856)	7,220
Total other comprehensive income (loss), net of tax	(31,403)	(6,747)	(29,700)	7,172
Comprehensive income (loss)	8,828	(6,627)	30,532	16,427
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	8,828	(6,627)	30,532	16,427
Guarantor Subsidiaries
Revenue:
Services and other revenue - DISH Network	96,653	110,388	196,740	221,692
Services and other revenue - other	331,875	248,361	643,983	489,733
Equipment revenue	53,643	81,831	100,052	133,066
Total revenue	482,171	440,580	940,775	844,491
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	122,259	112,989	241,585	222,938
Cost of sales - equipment (exclusive of depreciation and amortization)	46,217	70,297	89,860	114,704
Selling, general and administrative expenses	82,477	75,035	165,869	140,720
Research and development expenses	6,647	7,437	13,784	15,142
Depreciation and amortization	124,249	116,193	245,588	221,640
Total costs and expenses	381,849	381,951	756,686	715,144
Operating income	100,322	58,629	184,089	129,347
Other income (expense):
Interest income	1,609	231	1,925	433
Interest expense, net of amounts capitalized	(6,574)	(4,797)	(13,530)	(8,019)
Gain (Loss) on Investments	509	1,632	117	(1,575)
Equity in earnings of unconsolidated affiliate	1,238	1,639	2,730	3,350
Equity in earnings (losses) of subsidiaries, net	(8,161)	(4,438)	(11,858)	(10,639)
Other, net	9,489	(702)	9,392	(840)
Total other expense, net	(1,890)	(6,435)	(11,224)	(17,290)
Income (loss) before income taxes	98,432	52,194	172,865	112,057
Income tax benefit (provision)	(24,103)	(19,026)	(42,187)	(36,882)
Net income (loss)	74,329	33,168	130,678	75,175
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to HSS	74,329	33,168	130,678	75,175
Comprehensive Income (Loss):
Net income (loss)	74,329	33,168	130,678	75,175
Other comprehensive income, net of tax:
Foreign currency translation adjustments	0	0	0	0
Unrealized gains (losses) on available-for-sale securities and other	0	86	0	(1,488)
Other-than-temporary impairment loss on available-for-sale securities in net income				3,298
Realized gains on available-for-sale securities in net income	0		0
Equity in other comprehensive income (loss) of subsidiaries, net	(31,870)	(6,812)	(29,856)	5,410
Total other comprehensive income (loss), net of tax	(31,870)	(6,726)	(29,856)	7,220
Comprehensive income (loss)	42,459	26,442	100,822	82,395
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to HSS	42,459	26,442	100,822	82,395
Non-Guarantor Subsidiaries
Revenue:
Services and other revenue - DISH Network	487	533	1,014	719
Services and other revenue - other	57,379	43,611	114,455	77,974
Equipment revenue	4,557	5,033	9,164	9,710
Total revenue	62,423	49,177	124,633	88,403
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	36,509	29,941	74,235	59,651
Cost of sales - equipment (exclusive of depreciation and amortization)	3,539	4,532	7,004	7,806
Selling, general and administrative expenses	11,460	11,749	23,203	21,246
Research and development expenses	0	0	0	0
Depreciation and amortization	12,459	8,550	24,838	15,323
Total costs and expenses	63,967	54,772	129,280	104,026
Operating income	(1,544)	(5,595)	(4,647)	(15,623)
Other income (expense):
Interest income	508	321	1,009	669
Interest expense, net of amounts capitalized	(1,668)	558	(1,879)	1,043
Gain (Loss) on Investments	0	0	0	0
Equity in earnings of unconsolidated affiliate	0	0	0	0
Equity in earnings (losses) of subsidiaries, net	0	0	0	0
Other, net	(9,025)	(1,520)	(9,544)	(735)
Total other expense, net	(10,185)	(641)	(10,414)	977
Income (loss) before income taxes	(11,729)	(6,236)	(15,061)	(14,646)
Income tax benefit (provision)	3,881	1,890	3,806	4,243
Net income (loss)	(7,848)	(4,346)	(11,255)	(10,403)
Less: Net income attributable to noncontrolling interests	462	182	842	474
Net income attributable to HSS	(8,310)	(4,528)	(12,097)	(10,877)
Comprehensive Income (Loss):
Net income (loss)	(7,848)	(4,346)	(11,255)	(10,403)
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(32,314)	(6,736)	(30,414)	5,385
Unrealized gains (losses) on available-for-sale securities and other	(141)	(76)	(241)	25
Other-than-temporary impairment loss on available-for-sale securities in net income				0
Realized gains on available-for-sale securities in net income	0		0
Equity in other comprehensive income (loss) of subsidiaries, net	0	0	0	0
Total other comprehensive income (loss), net of tax	(32,455)	(6,812)	(30,655)	5,410
Comprehensive income (loss)	(40,303)	(11,158)	(41,910)	(4,993)
Less: Comprehensive income attributable to noncontrolling interests	(123)	182	43	474
Comprehensive income (loss) attributable to HSS	$ (40,180)	$ (11,340)	$ (41,953)	$ (5,467)

Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 40,693	$ 302	$ 61,074	$ 9,729
Adjustments to reconcile net income (loss) to net cash flows from operating activities			300,051	179,515
Net cash flows from operating activities			361,125	189,244
Cash flows from investing activities:
Purchases of marketable investment securities			(1,098,527)	(992)
Sales and maturities of marketable investment securities			560,194	118,648
Expenditures for property and equipment			(175,644)	(175,344)
Refunds and other receipts related to property and equipment			77,524	0
Expenditures for externally marketed software			(15,000)	(17,119)
Payment for satellite launch services			(7,125)	0
Distributions (contributions) and advances from (to) subsidiaries, net			0	0
Net cash flows from investing activities			(658,578)	(74,807)
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net			0	0
Repayment of debt and capital lease obligations			(18,417)	(17,111)
Advances from (to) affiliates, net				(36)
Capital contribution from EchoStar Corporation			(7,125)	0
Payment of in-orbit incentive obligations			(2,718)	(3,194)
Other, net			0	1,312
Net cash flows from financing activities			(14,010)	(19,029)
Effect of exchange rates on cash and cash equivalents			(1,865)	925
Net increase (decrease) in cash and cash equivalents, including restricted amounts			(313,328)	96,333
Cash and cash equivalents, including restricted amounts, beginning of period			1,823,354	2,071,687
Cash and cash equivalents, including restricted amounts, end of period	1,510,026	2,168,020	1,510,026	2,168,020
Eliminations
Cash flows from operating activities:
Net income (loss)	(66,019)	(28,640)	(118,581)	(64,298)
Adjustments to reconcile net income (loss) to net cash flows from operating activities			118,581	64,298
Net cash flows from operating activities			0	0
Cash flows from investing activities:
Purchases of marketable investment securities			0	0
Sales and maturities of marketable investment securities			0	0
Expenditures for property and equipment			0	0
Refunds and other receipts related to property and equipment			0
Expenditures for externally marketed software			0	0
Distributions (contributions) and advances from (to) subsidiaries, net			(283,743)	75,025
Net cash flows from investing activities			(283,743)	75,025
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net			283,743	(75,025)
Repayment of debt and capital lease obligations			0	0
Advances from (to) affiliates, net				0
Payment of in-orbit incentive obligations			0	0
Other, net				0
Net cash flows from financing activities			283,743	(75,025)
Effect of exchange rates on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents, including restricted amounts			0	0
Cash and cash equivalents, including restricted amounts, beginning of period			0	0
Cash and cash equivalents, including restricted amounts, end of period	0	0	0	0
HSS
Cash flows from operating activities:
Net income (loss)	40,231	120	60,232	9,255
Adjustments to reconcile net income (loss) to net cash flows from operating activities			(143,241)	22,394
Net cash flows from operating activities			(83,009)	31,649
Cash flows from investing activities:
Purchases of marketable investment securities			(1,098,527)	(992)
Sales and maturities of marketable investment securities			560,194	118,648
Expenditures for property and equipment			0	0
Refunds and other receipts related to property and equipment			0
Expenditures for externally marketed software			0	0
Distributions (contributions) and advances from (to) subsidiaries, net			306,958	(36,000)
Net cash flows from investing activities			(231,375)	81,656
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net			0	0
Repayment of debt and capital lease obligations			0	0
Advances from (to) affiliates, net				0
Capital contribution from EchoStar Corporation			(7,125)
Payment of in-orbit incentive obligations			0	0
Other, net				426
Net cash flows from financing activities			7,125	426
Effect of exchange rates on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents, including restricted amounts			(307,259)	113,731
Cash and cash equivalents, including restricted amounts, beginning of period			1,746,878	1,991,949
Cash and cash equivalents, including restricted amounts, end of period	1,439,619	2,105,680	1,439,619	2,105,680
Guarantor Subsidiaries
Cash flows from operating activities:
Net income (loss)	74,329	33,168	130,678	75,175
Adjustments to reconcile net income (loss) to net cash flows from operating activities			305,364	80,566
Net cash flows from operating activities			436,042	155,741
Cash flows from investing activities:
Purchases of marketable investment securities			0	0
Sales and maturities of marketable investment securities			0	0
Expenditures for property and equipment			(148,208)	(141,385)
Refunds and other receipts related to property and equipment			77,524
Expenditures for externally marketed software			(15,000)	(17,119)
Distributions (contributions) and advances from (to) subsidiaries, net			(23,215)	(39,025)
Net cash flows from investing activities			(108,899)	(197,529)
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net			(306,958)	36,000
Repayment of debt and capital lease obligations			(17,455)	(15,648)
Advances from (to) affiliates, net				0
Capital contribution from EchoStar Corporation			0
Payment of in-orbit incentive obligations			(2,718)	(3,194)
Other, net				0
Net cash flows from financing activities			(327,131)	17,158
Effect of exchange rates on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents, including restricted amounts			12	(24,630)
Cash and cash equivalents, including restricted amounts, beginning of period			42,373	53,905
Cash and cash equivalents, including restricted amounts, end of period	42,385	29,275	42,385	29,275
Non-Guarantor Subsidiaries
Cash flows from operating activities:
Net income (loss)	(7,848)	(4,346)	(11,255)	(10,403)
Adjustments to reconcile net income (loss) to net cash flows from operating activities			19,347	12,257
Net cash flows from operating activities			8,092	1,854
Cash flows from investing activities:
Purchases of marketable investment securities			0	0
Sales and maturities of marketable investment securities			0	0
Expenditures for property and equipment			(27,436)	(33,959)
Refunds and other receipts related to property and equipment			0
Expenditures for externally marketed software			0	0
Payment for satellite launch services			(7,125)
Distributions (contributions) and advances from (to) subsidiaries, net			0	0
Net cash flows from investing activities			(34,561)	(33,959)
Cash flows from financing activities:
Contributions (distributions) and advances (to) from parent, net			23,215	39,025
Repayment of debt and capital lease obligations			(962)	(1,463)
Advances from (to) affiliates, net				(36)
Payment of in-orbit incentive obligations			0	0
Other, net				886
Net cash flows from financing activities			22,253	38,412
Effect of exchange rates on cash and cash equivalents			(1,865)	925
Net increase (decrease) in cash and cash equivalents, including restricted amounts			(6,081)	7,232
Cash and cash equivalents, including restricted amounts, beginning of period			34,103	25,833
Cash and cash equivalents, including restricted amounts, end of period	$ 28,022	$ 33,065	$ 28,022	$ 33,065

Supplemental Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Property and equipment financed under capital lease obligations			$ 123	$ 8,189
Decrease in capital expenditures included in accounts payable, net			(1,158)	(2,120)
Transfer of launch service contracts from (to) EchoStar				(145,114)
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1)				219,662
Noncash net assets exchanged for HSS Tracking Stock (Note 1)				(190,221)
Capitalized in-orbit incentive obligations				31,000
Contribution of EchoStar XIX satellite				514,448
Research and Development Expense [Abstract]
Research and development expenses	$ 6,647	$ 7,437	13,784	15,142
Capitalized Software Costs
Payments to Develop Software			15,000	17,119
Cost of Sales
Research and Development Expense [Abstract]
Research and development expenses	6,290	6,785	12,888	13,686
Research and Development Expense
Research and Development Expense [Abstract]
Research and development expenses	6,647	7,437	13,784	15,142
Contract Acquisition Costs
Capitalized Contract Cost [Abstract]
Capitalized Contract Cost, Net	103,600		103,600
Capitalized Contract Cost, Amortization	20,700		40,700
Contract Fulfillment Costs
Capitalized Contract Cost [Abstract]
Capitalized Contract Cost, Net	3,300		3,300
Other Noncurrent Assets
Capitalized Software Costs
Capitalized Computer Software, Net	91,900		91,900		$ 88,100
Capitalized Software Development Costs for Software Sold to Customers	28,300		28,300		19,600
Payments to Develop Software	7,900	6,300	15,000	17,100
Capitalized Computer Software, Amortization	5,600	5,300	11,100	8,600
Level 2
Fair Value Measurements
Obligations, Fair Value Disclosure	96,600		96,600		99,300
Accounting Standards Update 2016-18
Restricted Cash and Cash Equivalents [Abstract]
Restricted Cash	$ 800	$ 800	$ 800	$ 800	$ 800	$ 700
Weighted Average
Capitalized Software Costs
Software Useful Life			4 years