0001533758-20-000011 | 10-Q | XBRL Viewer | Hughes Satellite Systems Corp

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Carrying Amounts and Fair Values of the Entity's Debt

The following table presents the carrying amounts and fair values of our Long-term debt:



	Effective interest rates	As of
		March 31, 2020					December 31, 2019
		Carrying Amount			Fair Value		Carrying Amount			Fair Value
Senior Secured Notes:
5 1/4% Senior Secured Notes due 2026	5.320%	$	750,000		$	748,133	$	750,000		$	825,308
Senior Unsecured Notes:
7 5/8% Senior Unsecured Notes due 2021	8.062%	900,000			922,527		900,000			963,783
6 5/8% Senior Unsecured Notes due 2026	6.688%	750,000			770,715		750,000			833,903
Less: Unamortized debt issuance costs		(9,782		)			(10,832		)
Total long-term debt		$	2,390,218		$	2,441,375	$	2,389,168		$	2,622,994

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 1,228,361	$ 1,139,435	$ 847,823
Marketable investment securities	524,941	652,835
Trade accounts receivable and contract assets, net	187,812	196,520
Other current assets, net	315,371	301,652
Total current assets	2,256,485	2,290,442
Non-current assets:
Property and equipment, net	1,750,561	1,857,581
Operating lease right-of-use assets	119,711	113,399
Goodwill	509,315	506,953
Regulatory authorizations, net	411,243	412,363	400,043
Other intangible assets, net	25,663	29,321
Other investments, net	108,952	110,040
Other non-current assets, net	256,775	251,936
Total non-current assets	3,182,220	3,281,593
Total assets	5,438,705	5,572,035
Current liabilities:
Trade accounts payable	106,339	121,552
Contract liabilities	99,266	101,060
Accrued expenses and other current liabilities	231,890	258,417
Total current liabilities	437,495	481,029
Non-current liabilities:
Long-term debt	2,390,218	2,389,168
Deferred tax liabilities, net	381,221	380,316
Operating lease liabilities	105,457	96,879
Other non-current liabilities	88,596	90,480
Total non-current liabilities	2,965,492	2,956,843
Total liabilities	3,402,987	3,437,872
Commitments and contingencies
Shareholder's equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding at both March 31, 2020 and December 31, 2019	0	0
Common stock, $0.01 par value, 1,000,000 shares authorized, 1,078 shares issued and outstanding at both March 31, 2020 and December 31, 2019	0	0
Additional paid-in capital	1,483,747	1,478,636
Accumulated other comprehensive income (loss)	(154,033)	(84,636)
Accumulated earnings (losses)	647,775	664,415
Total Hughes Satellite Systems Corporation shareholder's equity	1,977,489	2,058,415
Non-controlling interests	58,229	75,748
Total shareholder's equity	2,035,718	2,134,163	$ 2,392,495
Total liabilities and shareholder's equity	$ 5,438,705	$ 5,572,035

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (17,913)	$ 23,032
Other comprehensive income (loss), net of tax:
Foreign currency translation	(82,836)	(838)
Unrealized gains (losses) on available-for-sale debt securities	(2,479)	2,353
Other	(405)	33
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities	0	(385)
Total other comprehensive income (loss)	(85,720)	1,163
Comprehensive income (loss)	(103,633)	24,195
Less: Comprehensive loss (income) attributable to non-controlling interests	19,765	(806)
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	$ (83,868)	$ 23,389

Revenue Recognition - Depreciation Expense for Assets Subject to Operating Leases (Details) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation	$ 51,248	$ 51,666
Customer premises equipment
Property, Plant and Equipment [Line Items]
Depreciation	49,504	49,712
Satellites
Property, Plant and Equipment [Line Items]
Depreciation	1,744	1,737
Real estate
Property, Plant and Equipment [Line Items]
Depreciation	$ 0	$ 217

Long-Term Debt - Schedule of Debt and Finance Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt and Capital Lease Obligations
Less: Unamortized debt issuance costs	$ (9,782)	$ (10,832)
Total long-term debt	2,390,218	2,389,168
Fair Value	$ 2,441,375	2,622,994
5 1/4% Senior Secured Notes due 2026
Debt and Capital Lease Obligations
Effective Interest Rate	5.32%
Carrying Amount	$ 750,000	750,000
Fair Value	$ 748,133	825,308
Interest rate	5.25%
7 5/8% Senior Unsecured Notes due 2021
Debt and Capital Lease Obligations
Effective Interest Rate	8.062%
Carrying Amount	$ 900,000	900,000
Fair Value	$ 922,527	963,783
Interest rate	7.625%
6 5/8% Senior Unsecured Notes due 2026
Debt and Capital Lease Obligations
Effective Interest Rate	6.688%
Carrying Amount	$ 750,000	750,000
Fair Value	$ 770,715	$ 833,903
Interest rate	6.625%

Organization and Business Activities

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS ACTIVITIES

Principal Business

Hughes Satellite Systems Corporation (which, together with its subsidiaries, is referred to as “HSSC,” the “Company,” “we,” “us” and “our”) is a holding company and a subsidiary of EchoStar Corporation (“EchoStar”). We are a global provider of broadband satellite technologies, broadband internet services for consumer customers, which include home and small to medium-sized businesses, and satellite services. We also deliver innovative network technologies, managed services and communications solutions for enterprise customers, which include aeronautical and government enterprises. We operate in the following two business segments:

•

Hughes — which provides broadband satellite technologies and broadband internet services to domestic and international consumer customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers and enterprise 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.


•	ESS — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and/or occasional-use basis to U.S. government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers.

Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Accounting, Real Estate and Legal) and other activities that have not been assigned to our business 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. We also divide our operations by primary geographic market as follows: (i) North America (the U.S. and its territories, Mexico, and Canada); (ii) South and Central America and; (iii) All other (Asia, Africa, Australia, Europe, India, and the Middle East). Refer to Note 13. Segment Reporting for further detail.

In September 2019, pursuant to a master transaction agreement (the “Master Transaction Agreement”) with DISH Network Corporation (“DISH”) and a wholly-owned subsidiary of DISH (“Merger Sub”), (i) EchoStar and its subsidiaries and we and our subsidiaries transferred certain real property and the various businesses, products, licenses, technology, revenues, billings, operating activities, assets and liabilities primarily related to the former portion of our ESS segment that managed, marketed and provided (1) broadcast satellite services primarily to DISH and its subsidiaries (together with DISH, “DISH Network”) and EchoStar’s joint venture Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”) and its subsidiaries, and (2) telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and a portion of EchoStar’s and our other businesses (collectively, the “BSS Business”) to one of our former subsidiaries, EchoStar BSS Corporation (“BSS Corp.”), (ii) EchoStar distributed to each holder of shares of EchoStar’s Class A or Class B common stock entitled to receive consideration in the transaction an amount of shares of common stock of BSS Corp., par value $0.001 per share (“BSS Common Stock”), equal to one share of BSS Common Stock for each share of EchoStar’s Class A or Class B common stock owned by such EchoStar stockholder (the “Distribution”); and (iii) immediately after the Distribution, (1) Merger Sub merged with and into BSS Corp. (the “Merger”), such that BSS Corp. became a wholly-owned subsidiary of DISH and with DISH then owning and operating the BSS Business, and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Class A common stock, par value $0.001 per share (“DISH Common Stock”) ((i) - (iii) collectively, the “BSS Transaction”).

Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. As a result of the BSS Transaction, the financial results of the BSS Business, except for certain real estate that transferred in the transaction, are presented as discontinued operations and, as such, excluded from continuing operations and segment results for the three months ended March 31, 2019, as presented in these

unaudited Condensed Consolidated Financial Statements and the accompanying notes (collectively, the “Condensed Consolidated Financial Statements”).

All amounts in the following footnotes reference results from continuing operations unless otherwise noted. Refer to Note 4. Discontinued Operations for further detail.

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 1,750,561	$ 1,857,581
Satellites - owned
Property, Plant and Equipment [Line Items]
Total property and equipment	1,503,580	1,516,006
Accumulated depreciation	$ (739,859)	(713,259)
Satellites - owned \| Minimum
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	7 years
Satellites - owned \| Maximum
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
Satellites - acquired under finance leases
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
Finance leases	$ 352,206	381,162
Accumulated depreciation	(56,385)	(56,388)
Satellites
Property, Plant and Equipment [Line Items]
Property, plant and equipment and finance leases, before accumulated depreciation	1,855,786	1,897,168
Accumulated depreciation	(796,244)	(769,647)
Property and equipment, net	$ 1,059,542	$ 1,127,521

Related Party Transactions - EchoStar - Operating Expenses (Details) - EchoStar - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Operating expenses	$ 12,642	$ 13,306
Related party payables - current	13,793		$ 11,132
Related party payables - EchoStar	23,748		23,980
Related party payables	$ 37,541		$ 35,112

Revenue Recognition - Lease Income by Lease Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue at lease commencement	$ 913	$ 688
Interest income	69	252
Total sales-type lease revenue	982	940
Operating lease revenue	17,404	19,311
Total lease revenue	18,386	$ 20,251
Lease receivables	$ 6,600		$ 6,500

Regulatory Authorizations

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

REGULATORY AUTHORIZATIONS

The following table presents the components of our Regulatory authorizations, net:



	Finite lived
	Cost			Accumulated Amortization			Total			Indefinite lived		Total
Balance, December 31, 2018	$	—		$	—		$	—		$	400,043	$	400,043
Balance, March 31, 2019	$	—		$	—		$	—		$	400,043	$	400,043

Balance, December 31, 2019	$	12,524		$	(161	)	$	12,363		$	400,000	$	412,363
Amortization expense	—			(100		)	(100		)	—		(100		)
Foreign currency translation	(1,020		)	—			(1,020		)	—		(1,020		)
Balance, March 31, 2020	$	11,504		$	(261	)	$	11,243		$	400,000	$	411,243

Weighted average useful life				14 years

Finite Lived Assets

In November 2019, we were granted an S-Band spectrum license for terrestrial rights in Mexico for $7.9 million. The acquired asset is subject to amortization over a period of 15 years.

In November 2019, we also acquired Ka-band spectrum rights for $4.5 million, upon consummation of the Yahsat Brazil JV Transaction, which are subject to amortization over a period of 11 years.

Property and Equipment - Narrative (Details) $ in Millions	3 Months Ended
Property and Equipment - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($) satellite mi	Dec. 31, 2019 USD ($)
Satellites
Property, Plant and Equipment [Line Items]
Number of satellites in geostationary orbit, utilized by reporting entity	8
Number of satellites utilized under capital lease	3
Miles above the equator \| mi	22,300
Owned
Property, Plant and Equipment [Line Items]
Number of satellites in geostationary orbit, utilized by reporting entity	5
Satellite Related Obligation
Property, Plant and Equipment [Line Items]
Satellite-related obligations \| $	$ 245.5	$ 256.9
Level 2
Property, Plant and Equipment [Line Items]
Fair value of in-orbit incentive obligations \| $	$ 56.2	$ 57.0

Related Party - Other (Details) - USD ($)	3 Months Ended
Related Party - Other (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Hughes Systique
Related Party Transaction [Line Items]
Ownership interest in related party (as a percent)	43.00%
Ownership interest percentage by related party	25.00%
TerreStar Solutions, Inc.
Related Party Transaction [Line Items]
Investment nonvoting interest ownership percentage(at least)	15.00%
Revenue from related parties	$ 2,200,000	$ 5,100,000
Trade accounts receivable - DISH Network	2,300,000		$ 2,700,000
Global IP Revenue
Related Party Transaction [Line Items]
Revenue from related parties	0	0
Trade accounts receivable - DISH Network	7,500,000		7,500,000
Maxar Technologies Inc.
Related Party Transaction [Line Items]
Aggregate costs payable to related parties	3,500,000	$ 4,900,000
Trade accounts payable - DISH Network	$ 0		$ 0

Supplemental Financial Information - Accrued Expenses and Other Current Liabilities and Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued Liabilities [Abstract]
Accrued interest	$ 35,905	$ 32,184
Accrued compensation	31,707	42,846
Accrued taxes	7,534	18,493
Operating	13,393	14,112
Other	128,948	139,148
Total accrued expenses and other current liabilities	231,890	258,417
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract]
Other	64,848	66,500
Total other non-current liabilities	88,596	90,480
DISH Network
Accrued Liabilities [Abstract]
Trade accounts payable - DISH Network	610	502
EchoStar
Accrued Liabilities [Abstract]
Trade accounts payable - DISH Network	37,541	35,112
Related party payables - EchoStar	13,793	11,132
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract]
Related party payables - EchoStar	$ 23,748	$ 23,980

Related Party Transactions - DISH Network - Revenue (Details) - DISH Network - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Revenue from related parties	$ 7,587	$ 11,545
Trade accounts receivable - DISH Network	$ 9,955		$ 8,876

Discontinued Operations - Operating Results and Carrying Amounts of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 467,547	$ 455,199
Other Income (Expense):
Net income (loss) from discontinued operations	0	22,724
Operating activities:
Net income (loss) from discontinued operations	0	22,724
Financing activities:
Financing cash flows from finance leases	215	9,882
Payment of in-orbit incentive obligations	203	1,573
Services and other revenue
Revenue:
Total revenue	410,238	$ 403,485
BSS Business \| Discontinued Operations
Revenue:
Total revenue	77,226
Costs and Expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	10,217
Selling, general and administrative expenses	20
Depreciation and amortization	31,119
Total costs and expenses	41,356
Operating income (loss)	35,870
Other Income (Expense):
Interest expense	(6,498)
Total other income (expense), net	(6,498)
Income (loss) from discontinued operations before income taxes	29,372
Income tax benefit (provision), net	(6,648)
Net income (loss) from discontinued operations	22,724
Operating activities:
Net income (loss) from discontinued operations	22,724
Depreciation and amortization	31,119
Investing activities:
Expenditures for property and equipment	108
Financing activities:
Financing cash flows from finance leases	9,597
Payment of in-orbit incentive obligations	1,035
BSS Business \| Discontinued Operations \| Services and other revenue
Revenue:
Total revenue	6,400
BSS Business \| Discontinued Operations \| DISH Network \| Services and other revenue
Revenue:
Total revenue	$ 70,826

Regulatory Authorizations - Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Accumulated Amortization
Amortization expense	$ (100)
Weighted average useful life	14 years
Total
Balance at the beginning of the period	$ 29,321
Balance at the end of the period	25,663
Indefinite-lived Intangible Assets [Roll Forward]
Balance at the beginning of the period	400,000
Balance at the end of the period	400,000
Other Intangible Assets Net [RollForward]
Balance at the beginning of the period	412,363
Foreign currency translation	(1,020)
Balance at the end of the period	411,243
Use Rights
Cost [Roll Forward]
Balance at the beginning of the period	12,524
Foreign currency translation	(1,020)
Balance at the end of the period	11,504
Accumulated Amortization
Balance at the beginning of the period	(161)
Amortization expense	(100)
Balance at the end of the period	(261)
Total
Balance at the beginning of the period	12,363
Foreign currency translation	(1,020)
Balance at the end of the period	$ 11,243

Supplemental Financial Information

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

Research and Development

The following table presents the research and development costs incurred in connection with customers’ orders:



	For the three months ended March 31,
	2020		2019
Cost of sales - equipment (exclusive of depreciation and amortization)	$	6,692	$	5,395
Research and development expenses	$	6,254	$	6,888

Cash and Cash Equivalents and Restricted Cash

The following table reconciles Cash and cash equivalents and restricted cash, as presented in the Condensed Consolidated Balance Sheets, to the total of the same as presented in the Condensed Consolidated Statements of Cash Flows:



	For the three months ended March 31,
	2020		2019
Cash and cash equivalents, including restricted amounts, beginning of period:
Cash and cash equivalents	$	1,139,435	$	847,823
Restricted cash	887		796
Total cash and cash equivalents, included restricted amounts, beginning of period	$	1,140,322	$	848,619

Cash and cash equivalents, including restricted amounts, end of period:
Cash and cash equivalents	$	1,228,361	$	1,138,711
Restricted cash	1,116		971
Total cash and cash equivalents, included restricted amounts, end of period	$	1,229,477	$	1,139,682

Other Current Assets, Net and Other Non-Current Assets, Net

The following table presents the components of Other current assets, net, and Other non-current assets, net:



	As of
	March 31, 2020		December 31, 2019
Other current assets, net:
Trade accounts receivable - DISH Network	$	9,955	$	8,876
Inventory	88,302		79,474
Prepaids and deposits	47,055		42,324
Contract acquisition costs, net	14,290		16,869
Related party receivables - EchoStar	131,948		131,892
Other, net	23,821		22,217
Total other current assets, net	$	315,371	$	301,652

Other non-current assets, net:
Restricted cash	$	1,116	$	887
Deferred tax assets, net	7,098		7,215
Capitalized software, net	104,401		101,786
Contract acquisition costs, net	96,107		96,723
Contract fulfillment costs, net	2,782		3,010
Related party receivables - EchoStar	19,412		19,759
Other, net	25,859		22,556
Total other non-current assets, net	$	256,775	$	251,936

The following table presents the activity in our allowance for doubtful accounts, which is included within Other, net in each of Other current assets, net and Other non-current assets, net in the table above:



	Balance at Beginning of Period		Credit Losses ⁽¹⁾		Deductions		Foreign Currency Translation			Balance at End of Period
For the three months ended March 31, 2020
Other current assets, net	$	—	$	1,595	$	—	$	—		$	1,595
Other non-current assets, net	$	—	$	13,379	$	—	$	(358	)	$	13,021

⁽¹⁾ The impact of adopting ASC 326 on January 1, 2020 was a net increase to our allowance for doubtful accounts largely driven by a $13.4 million reclassification from Trade accounts receivables and contracts assets, net.

Accrued Expenses and Other Current Liabilities and Other Non-Current Liabilities

The following table presents the components of Accrued expenses and other current liabilities and Other non-current liabilities:



	As of
	March 31, 2020		December 31, 2019
Accrued expenses and other current liabilities:
Trade accounts payable - DISH Network	$	610	$	502
Accrued interest	35,905		32,184
Accrued compensation	31,707		42,846
Accrued taxes	7,534		18,493
Operating lease obligation	13,393		14,112
Related party payables - EchoStar	13,793		11,132
Other	128,948		139,148
Total accrued expenses and other current liabilities	$	231,890	$	258,417

Other non-current liabilities:
Related party payables - EchoStar	$	23,748	$	23,980
Other	64,848		66,500
Total other non-current liabilities	$	88,596	$	90,480

Inventory

The following table presents the components of inventory:



	As of
	March 31, 2020		December 31, 2019
Raw materials	$	8,399	$	4,240
Work-in-process	9,421		6,979
Finished goods	70,482		68,255
Total inventory	$	88,302	$	79,474

Supplemental and Non-cash Investing and Financing Activities

The following table presents the supplemental and non-cash investing and financing activities:



	For the three months ended March 31,
	2020			2019
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	49,563		$	54,277
Cash paid for income taxes	$	716		$	652

Non-cash investing and financing activities:
Increase (decrease) in capital expenditures included in accounts payable, net	$	(5,359	)	$	(2,163	)

Revenue Recognition - Schedule of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Jan. 01, 2020	Dec. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 23,777	$ 16,604
Credit Losses	(5,754)	4,177
Deductions	(6,325)	(6,738)
Foreign Currency Translation	(1,090)	(15)
Balance at End of Period	10,608	$ 14,028
Accumulated earnings (losses)	$ 647,775			$ 664,415
Accounting Standards Update 2016-13
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Other assets			$ 13,400
Accumulated earnings (losses)			$ 2,900

Property and Equipment - Operating Satellite Fleet (Details)	3 Months Ended
	Mar. 31, 2020
SPACEWAY
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	10 years
EchoStar XVII
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
EchoStar XIX
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
Al Yah 3
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	7 years
EchoStar IX
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	12 years
Eutelsat 65 West A
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
Telesat T19V
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years
EchoStar 105/SES-11
Property, Plant and Equipment [Line Items]
Depreciable Life In Years	15 years

Related Party - Other (Notes)

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS - ECHOSTAR

The following is a summary of the transactions and the terms of the underlying principal agreements that have had or may have an impact on our consolidated financial condition and results of operations.

Services and Other Revenue - EchoStar

The following table presents our Services and other revenue from EchoStar:



	For the three months ended March 31,
	2020		2019
Services and other revenue - EchoStar	$	4,699	$	4,474

The following table presents the corresponding related party receivables:



	As of
	March 31, 2020		December 31, 2019
Related party receivables - EchoStar - current	$	131,948	$	131,892
Related party receivables - EchoStar - non-current	19,412		19,759
Total related party receivables - EchoStar	$	151,360	$	151,651

Receivables. EchoStar and its other subsidiaries reimburse us from time to time for amounts paid by us for costs and expenses attributable to EchoStar and its other subsidiaries. We report receivables under these arrangements within Related party receivables - EchoStar - current. No repayment schedule for these receivables has been determined.

EchoStar Mobile Limited Service Agreements. We provide services and lease equipment 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 other subsidiaries pay for these services are based on cost plus a fixed margin. We recorded the revenue related to these services within Services and other revenue - EchoStar of $4.7 million and $5.0 million for the three months ended March 31, 2020 and 2019, respectively. Additionally, we have converted the receivables for certain of these services into loans, bearing an annual interest rate of 5%, that mature in 2023. We report these loans within Related party receivables - EchoStar - non-current.

Operating Expenses - EchoStar

The following table presents our operating expenses related to EchoStar:



	For the three months ended March 31,
	2020		2019
Operating expenses - EchoStar	$	12,642	$	13,306

The following table presents the corresponding related party payables:



	As of
	March 31, 2020		December 31, 2019
Related party payables - EchoStar - current	$	13,793	$	11,132
Related party payables - EchoStar - non-current	23,748		23,980
Total related party payables - EchoStar	$	37,541	$	35,112

Payables. We reimburse EchoStar and its other subsidiaries from time to time for amounts paid by EchoStar and its other subsidiaries for costs and expenses attributable to us. We report payables under these arrangements within Related party payables - EchoStar - current. No repayment schedule for these payables has been determined.

Shared Corporate Services. We and EchoStar, including EchoStar’s other subsidiaries, have agreed that we shall each have the right, but not the obligation, to receive from the other certain shared corporate services, including among other things: treasury, tax, accounting and reporting, risk management, cybersecurity, legal, internal audit, human resources, and information technology. These shared corporate services are generally provided at cost. Effective March 2017, and as a result of the Share Exchange, we implemented a new methodology for determining the cost of these shared corporate services. We and EchoStar, including EchoStar’s other subsidiaries, may each terminate a particular shared corporate service for any reason upon at least 30 days’ notice. We recorded these expenses within Operating expenses - EchoStar for shared corporate services received from EchoStar and its other subsidiaries of $4.4 million and $2.8 million for the three months ended March 31, 2020 and 2019, respectively.

Real Estate. We occupy certain office space in buildings owned or leased by EchoStar and its other subsidiaries and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy.

Cash Advances. EchoStar and certain of its other subsidiaries have also 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 within Related party payables - EchoStar - non-current.

Construction Management Services for EchoStar XXIV Satellite. In August 2017, a subsidiary of EchoStar entered into a contract with Space Systems Loral, LLC for the design and construction of the EchoStar XXIV satellite, a new, next-generation, high throughput geostationary satellite. We provide construction management services to EchoStar’s subsidiary for the construction of the EchoStar XXIV satellite. We charged EchoStar’s subsidiary and reduced our operating expenses by the costs of such services of $0.3 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively.

Other Agreements

BSS Transaction. Pursuant to the pre-closing restructuring contemplated by the Master Transaction Agreement, and as part of the BSS Transaction, we and our subsidiaries transferred certain of the BSS Business to BSS Corp., and we distributed all of the shares of BSS Corp. to EchoStar as a dividend. See Note 1. Organization and Business Activities for further information.

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 HSSC’s common stock that were then issued to a subsidiary of EchoStar.

RELATED PARTY TRANSACTIONS - DISH NETWORK

Overview

EchoStar and DISH have operated as separate publicly-traded companies since 2008. 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 for the benefit of his family. In addition, prior to March 2017, DISH Network owned the Tracking Stock, which in the aggregate represented an 80% economic interest in the residential retail satellite broadband business of our Hughes segment. The Tracking Stock was retired in March 2017.

In connection with and following the Spin-off, the Share Exchange and the BSS Transaction, EchoStar, we and certain other of EchoStar’s subsidiaries and DISH Network entered into certain agreements pursuant to which we, EchoStar and certain of its other subsidiaries, on the one hand, obtain certain products, services and rights from DISH Network, on the other hand; DISH Network, on the one hand, obtains certain products, services and rights from us, EchoStar and certain of its other subsidiaries, on the other hand; and such entities indemnify each other against certain liabilities arising from their respective businesses. Generally, the amounts we and/or EchoStar and its other subsidiaries or DISH Network pay for products and services provided under the agreements are based on cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. We and/or EchoStar and its other subsidiaries may also enter into additional agreements with DISH Network in the future.

Services and Other Revenue — DISH Network

The following table presents our Services and other revenue from DISH Network:



	For the three months ended March 31,
	2020		2019
Services and other revenue - DISH Network	$	7,587	$	11,545

The following table presents the related trade accounts receivable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts receivable - DISH Network	$	9,955	$	8,876

Satellite Capacity Leased to DISH Network. We have entered into an agreement and have previously entered into a now terminated agreement to lease satellite capacity pursuant to which we have provided satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend upon, among other things, 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 these agreements are set forth below:


•	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.

•

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. 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 EchoStar’s completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which we provide, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment (the “TerreStar Agreements”). 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. 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. In March 2020, we entered into an agreement with DISH Network pursuant to which we perform certain work and provide certain credits to amounts owed to us under the TerreStar Agreements in exchange for DISH Network’s granting us rights to use certain satellite capacity under the Amended and Restated Professional Services Agreement (as defined below).

Hughes Broadband Distribution Agreement. Effective October 2012, we and DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which DISH Network has the right, but not the obligation, to market, sell and distribute our HughesNet service. DISH Network pays us a monthly per subscriber wholesale service fee for the HughesNet service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that DISH Network has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the HughesNet 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, we and DISH Network 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, we and DISH Network will continue to provide our HughesNet service to the then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement.

DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of all 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 Hughes Acquisition, DBSD North America and HNS entered into various agreements pursuant to which we provide, 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 has 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. In February 2019, we further amended these agreements to provide DBSD North America with the right to continue to receive warranty services from us on a month-to-month basis until December 2023, unless terminated by DBSD North America upon at least 21 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. Hughes Equipment and Services Agreement. In February 2019, we and DISH Network entered into an agreement pursuant to which we will sell to DISH Network our HughesNet Service and HughesNet equipment that has been modified to meet DISH Network’s internet-of-things specifications for the transfer of data to DISH Network’s network operations centers. This agreement has an initial term of five years expiring February 2024 with automatic renewal for successive one-year terms unless terminated by DISH Network with at least 180 days‘ written notice to us or by us with at least 365 days’ written notice to DISH Network.

Operating Expenses — DISH Network

The following table presents our operating expenses related to DISH Network:



	For the three months ended March 31,
	2020		2019
Operating expenses - DISH Network	$	1,137	$	714

The following table presents the related trade accounts payable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts payable - DISH Network	$	610	$	502

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, all of which 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 provide other support services. In connection with the consummation of the Share Exchange, EchoStar and DISH amended and restated the Professional Services Agreement (as amended to date, 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 (collectively, the “TT&C Antennas”). In September 2019, in connection with the BSS Transaction, EchoStar and DISH further amended 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 BSS Transaction and to remove our access to and the maintenance and support services for the TT&C Antennas. A portion of these costs and expenses have been allocated to us in the manner described in Note 14. Related Party Transactions - EchoStar. The term of the Amended and Restated Professional Services Agreement is through January 2021 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. Effective March 2017, we entered into an agreement with DISH Network for 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 agreement for a five-year period ending in August 2022. We and DISH Network amended this agreement to, among other things, terminate this agreement in March 2019. The rent on a per square foot basis for the lease was comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we were 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 October 2019, we provided a termination notice for our New Braunfels, Texas agreement to be effective May 2020. 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 us in Monee, Illinois and Spokane, Washington through August 2022. Generally, we 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 located at the location.

In connection with the BSS Transaction, in September 2019, we entered into an agreement pursuant to which DISH Network will provide us with antenna space and power in Cheyenne, Wyoming for a period of five years commencing no later than October 2020, with four three-year renewal terms, with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term.

Hughes Broadband Master Services Agreement. In March 2017, we and DISH Network entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DISH Network, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for our HughesNet service and related equipment and other telecommunication services and (ii) installs HughesNet service equipment with respect to activations generated by DISH Network. Under the Hughes Broadband MSA, we and DISH Network 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 through March 2022 with automatic renewal for successive one-year terms. 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, we will continue to provide our HughesNet service to subscribers and make certain payments to DISH Network pursuant to the terms and conditions

of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $4.6 million and $4.8 million for the three months ended March 31, 2020 and 2019, respectively.

2019 TT&C Agreement. In September 2019, in connection with the BSS Transaction, we and a subsidiary of EchoStar entered into an agreement pursuant to which DISH Network provides TT&C services to us and EchoStar and its other subsidiaries for a period ending in September 2021, with the option for a subsidiary of EchoStar to renew for a one-year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). The fees for services provided under the 2019 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. Any party is able to terminate the 2019 TT&C Agreement for any reason upon 12 months’ notice.

Other Receivables - DISH Network

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 Code, 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 of 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 “Tax Sharing Amendment”). Under the Tax Sharing 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.

Other Agreements

Master Transaction Agreement. In May 2019, EchoStar and BSS Corp. entered into the Master Transaction Agreement with DISH and Merger Sub with respect to the BSS Transaction. Pursuant to the terms of the Master Transaction Agreement, on September 10, 2019: (i) EchoStar and its subsidiaries and we and our subsidiaries transferred the BSS Business to BSS Corp.; (ii) we completed the Distribution; and (iii) immediately after the Distribution, (1) BSS Corp. became a wholly-owned subsidiary of DISH such that DISH owns and operates the BSS Business and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Common Stock. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. The Master Transaction Agreement contained customary representations and warranties by the parties, including EchoStar’s representations relating to the assets, liabilities and financial condition of the BSS Business, and representations by DISH Network relating to its financial condition and liabilities. EchoStar and DISH Network have agreed to indemnify each other against certain losses with respect to breaches of certain representations and covenants and certain retained and assumed liabilities, respectively.

BSS Transaction Intellectual Property and Technology License Agreement. Effective September 2019, in connection with the BSS Transaction, we, EchoStar and DISH Network entered into an intellectual property and technology license agreement (the “BSS IPTLA”) pursuant to which we, EchoStar and its other subsidiaries and DISH Network license to each other certain intellectual property and technology. The BSS IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the BSS IPTLA, we, EchoStar and its other subsidiaries granted to DISH Network a license to our and their intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the BSS Business acquired pursuant to the BSS Transaction, including a limited license to use the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks during a transition period. EchoStar retains full ownership of the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks. In addition, DISH Network granted a license back to us, EchoStar and its other subsidiaries, among other things, for the continued use of all intellectual property and technology that is used in our, EchoStar and its other subsidiaries’ retained businesses but the ownership of which was transferred to DISH Network pursuant to the BSS Transaction.

BSS Transaction Tax Matters Agreement. Effective September 2019, in connection with the BSS Transaction, EchoStar, BSS Corp. 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 BSS Business transferred pursuant to the BSS Transaction. Generally, EchoStar is responsible for all tax returns and tax liabilities for the BSS Business for periods prior to the BSS Transaction and DISH is responsible for all tax returns and tax liabilities for the BSS Business from and after the BSS Transaction. Both EchoStar and DISH made certain tax-related representations and are subject to various tax-related covenants after the consummation of the BSS Transaction. Both EchoStar and DISH Network have agreed to indemnify each other for certain losses if there is a breach of any the tax representations or violation of any of the tax covenants in the tax matters agreement and that breach or violation results in the failure of the BSS Transaction being treated as a transaction that is tax-free for EchoStar or its stockholders for U.S. federal income tax purposes. In addition, DISH Network has agreed to indemnify EchoStar if the BSS Business is acquired, either directly or indirectly (e.g., via an acquisition of DISH Network), by one or more persons, where either it took an action, or knowingly facilitated, consented to or assisted with an action by its stockholders, that resulted in the failure of the BSS Transaction being treated as a transaction that is tax-free for EchoStar and its stockholders for U.S. federal income tax purposes. This tax matters agreement supplements the Tax Sharing Agreement outlined above and the Share Exchange Tax Matters Agreement outlined below, both of which continue in full force and effect.

BSS Transaction Employee Matters Agreement . Effective September 2019, in connection with the BSS Transaction, EchoStar and DISH Network entered into an employee matters agreement that addressed the transfer of employees from us to DISH Network, including certain benefit and compensation matters and the allocation of responsibility for employee related liabilities relating to current and past employees of the BSS Business. DISH Network assumed employee-related liabilities relating to the BSS Business as part of the BSS Transaction, except that EchoStar is responsible for certain pre-BSS Transaction compensation and benefits for employees who transferred to DISH Network in connection with the BSS Transaction.

Share Exchange Agreement. In January 2017, EchoStar and certain of its and our subsidiaries entered into the Share Exchange Agreement with DISH and certain of its subsidiaries pursuant to which, in February 2017, EchoStar and certain of its and our subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange, 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 contained 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 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.

Share Exchange Intellectual Property and Technology License Agreement. Effective March 2017, in connection with the Share Exchange, EchoStar and one of its other subsidiaries and DISH Network entered into an intellectual property and technology license agreement (“IPTLA”) pursuant to which we, EchoStar and one of its other subsidiaries and DISH Network 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, we, EchoStar and one of its other subsidiaries granted to DISH Network a license to our and their 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 us, EchoStar and one of its other subsidiaries, among other things, for the continued use of all intellectual property and technology that is used in our, EchoStar and one of its other subsidiaries’ retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange.

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 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 above, which continues in full force and effect.

NOTE 16. RELATED PARTY TRANSACTIONS - OTHER

Hughes Systique Corporation

We contract with Hughes Systique Corporation (“Hughes Systique”) for software development services. In addition to our approximately 43% ownership in Hughes Systique, Mr. Pradman Kaul, the President of our subsidiary 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%, on an undiluted basis, of Hughes Systique’s outstanding shares as of March 31, 2020. 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 these Condensed Consolidated Financial Statements.

TerreStar Solutions, Inc.

DISH Network owns more than 15% of TerreStar Solutions, Inc. (“TSI”). In May 2018, we and TSI 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 provide, among other things, warranty and support services. We recognized revenue of $2.2 million and $5.1 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, we had trade accounts receivable from TSI of $2.3 million and $2.7 million, respectively.

Global-IP Cayman

In May 2017, we 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, served as a member of the board of directors of Global IP and as an executive advisor to the Chief Executive Officer of Global IP from September 2017 until April 2019 and from September 2017 until December 2019, respectively. 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. In February 2019, we terminated the agreement as a result of Global IP’s defaults resulting from its failure to make payments to us as required under the terms of the agreement and we reserved our rights and remedies against Global IP under the agreement. We recognized revenue under this agreement of zero for each of the three months ended March 31, 2020 and 2019. As of both March 31, 2020 and December 31, 2019, we were owed $7.5 million from Global IP.

Maxar Technologies Inc.

Mr. Jeffrey Tarr, who joined EchoStar’s board of directors in March 2019, served as a consultant and advisor to Maxar Technologies Inc. and its subsidiaries (“Maxar Tech”) through May 2019. We previously entered into agreements with Maxar Tech for the manufacture and certain other services of the EchoStar IX satellite, the EchoStar XVII satellite, the EchoStar XIX satellite and the EchoStar XXI satellite and our former EchoStar XI satellite, EchoStar XIV satellite, EchoStar XVI satellite and EchoStar XXIII satellite. Maxar Tech provides us with anomaly support for these satellites once launched pursuant to the terms of the agreements. Maxar Tech also provides a warranty on one of these satellites and may be required to pay us certain amounts should the satellite not operate according to certain performance specifications. Our obligations to pay Maxar Tech under these agreements during the design life of the applicable satellites may be reduced if the applicable satellites do not operate according to certain performance specifications. We incurred aggregate costs payable to Maxar Tech under these agreements of $3.5 million and $4.9 million for the three months ended March 31, 2020 and 2019, respectively. At both March 31, 2020 and December 31, 2019, we had no trade accounts payable to Maxar Tech.

Revenue Recognition - Lease Income Maturity (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
2020 (remainder)	$ 27,691
2021	34,910
2022	32,052
2023	30,285
2024	28,219
2025 and beyond	123,520
Total lease payments	$ 276,677

Business Combinations - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended
	Nov. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Useful life	11 years
Goodwill		$ 509,315	$ 506,953
Yahsat
Business Acquisition [Line Items]
Equity ownership	20.00%
Transaction costs		$ 1,600
Useful life	11 years
Goodwill	$ 6,328
Goodwill, foreign currency translation gain (loss)	$ 1,200
Satellite Payload
Business Acquisition [Line Items]
Useful life	7 years

Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 467,547	$ 455,199
Costs and expenses:
Selling, general and administrative expenses	115,860	102,337
Research and development expenses	6,254	6,888
Depreciation and amortization	125,965	112,411
Total costs and expenses	437,872	408,729
Operating income (loss)	29,675	46,470
Other income (expense):
Interest income, net	8,892	17,997
Interest expense, net of amounts capitalized	(42,192)	(57,915)
Gains (losses) on investments, net	(164)	(346)
Equity in earnings (losses) of unconsolidated affiliates, net	(1,087)	(1,072)
Equity in earnings (losses) of subsidiaries, net	0	0
Foreign currency transaction gains (losses), net	(7,528)	211
Other, net	(278)	(165)
Total other income (expense), net	(42,357)	(41,290)
Income (loss) from continuing operations before income taxes	(12,682)	5,180
Income tax benefit (provision), net	(5,231)	(4,872)
Net income (loss) from continuing operations	(17,913)	308
Net income (loss) from discontinued operations	0	22,724
Net income (loss)	(17,913)	23,032
Less: Net loss (income) attributable to non-controlling interests	3,442	(806)
Net income (loss) attributable to Hughes Satellite Systems Corporation	(14,471)	22,226
Comprehensive income (loss):
Net income (loss)	(17,913)	23,032
Other comprehensive income (loss), net of tax:
Foreign currency translation	(82,836)	(838)
Unrealized gains (losses) on available-for-sale debt securities	(2,479)	2,353
Other	(405)	33
Equity in other comprehensive income (loss) of subsidiaries, net	0	0
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities	0	(385)
Total other comprehensive income (loss)	(85,720)	1,163
Comprehensive income (loss)	(103,633)	24,195
Less: Comprehensive loss (income) attributable to non-controlling interests	19,765	(806)
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	(83,868)	23,389
Services and other revenue
Revenue:
Total revenue	410,238	403,485
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	143,885	142,086
Equipment revenue
Revenue:
Total revenue	57,309	51,714
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	45,908	45,007
Reportable Legal Entities \| HSSC
Revenue:
Total revenue	0	0
Costs and expenses:
Selling, general and administrative expenses	0	0
Research and development expenses	0	0
Depreciation and amortization	0	0
Total costs and expenses	0	0
Operating income (loss)	0	0
Other income (expense):
Interest income, net	7,953	17,409
Interest expense, net of amounts capitalized	(40,472)	(56,361)
Gains (losses) on investments, net	0	0
Equity in earnings (losses) of unconsolidated affiliates, net	0	0
Equity in earnings (losses) of subsidiaries, net	10,630	52,199
Foreign currency transaction gains (losses), net	0	0
Other, net	0	309
Total other income (expense), net	(21,889)	13,556
Income (loss) from continuing operations before income taxes	(21,889)	13,556
Income tax benefit (provision), net	7,418	8,670
Net income (loss) from continuing operations	(14,471)	22,226
Net income (loss) from discontinued operations		0
Net income (loss)	(14,471)	22,226
Less: Net loss (income) attributable to non-controlling interests	0	0
Net income (loss) attributable to Hughes Satellite Systems Corporation	(14,471)	22,226
Comprehensive income (loss):
Net income (loss)	(14,471)	22,226
Other comprehensive income (loss), net of tax:
Foreign currency translation	0	0
Unrealized gains (losses) on available-for-sale debt securities	(2,479)	2,353
Other	0	0
Equity in other comprehensive income (loss) of subsidiaries, net	(66,918)	(805)
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities		(385)
Total other comprehensive income (loss)	(69,397)	1,163
Comprehensive income (loss)	(83,868)	23,389
Less: Comprehensive loss (income) attributable to non-controlling interests	0	0
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	(83,868)	23,389
Reportable Legal Entities \| HSSC \| Services and other revenue
Revenue:
Total revenue	0	0
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	0	0
Reportable Legal Entities \| HSSC \| Equipment revenue
Revenue:
Total revenue	0	0
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	0	0
Reportable Legal Entities \| Guarantor Subsidiaries
Revenue:
Total revenue	419,985	405,240
Costs and expenses:
Selling, general and administrative expenses	95,818	86,465
Research and development expenses	6,109	6,743
Depreciation and amortization	99,359	96,704
Total costs and expenses	367,131	349,273
Operating income (loss)	52,854	55,967
Other income (expense):
Interest income, net	971	926
Interest expense, net of amounts capitalized	(613)	(1,134)
Gains (losses) on investments, net	(164)	(346)
Equity in earnings (losses) of unconsolidated affiliates, net	(1,087)	(1,072)
Equity in earnings (losses) of subsidiaries, net	(29,167)	(8,788)
Foreign currency transaction gains (losses), net	(2)	(19)
Other, net	(275)	(398)
Total other income (expense), net	(30,337)	(10,831)
Income (loss) from continuing operations before income taxes	22,517	45,136
Income tax benefit (provision), net	(11,804)	(15,568)
Net income (loss) from continuing operations	10,713	29,568
Net income (loss) from discontinued operations		22,724
Net income (loss)	10,713	52,292
Less: Net loss (income) attributable to non-controlling interests	0	0
Net income (loss) attributable to Hughes Satellite Systems Corporation	10,713	52,292
Comprehensive income (loss):
Net income (loss)	10,713	52,292
Other comprehensive income (loss), net of tax:
Foreign currency translation	0	0
Unrealized gains (losses) on available-for-sale debt securities	0	0
Other	0	0
Equity in other comprehensive income (loss) of subsidiaries, net	(66,918)	(805)
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities		0
Total other comprehensive income (loss)	(66,918)	(805)
Comprehensive income (loss)	(56,205)	51,487
Less: Comprehensive loss (income) attributable to non-controlling interests	0	0
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	(56,205)	51,487
Reportable Legal Entities \| Guarantor Subsidiaries \| Services and other revenue
Revenue:
Total revenue	354,399	352,591
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	110,471	110,862
Reportable Legal Entities \| Guarantor Subsidiaries \| Equipment revenue
Revenue:
Total revenue	65,586	52,649
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	55,374	48,499
Reportable Legal Entities \| Non-Guarantor Subsidiaries
Revenue:
Total revenue	70,338	69,111
Costs and expenses:
Selling, general and administrative expenses	20,482	16,565
Research and development expenses	145	145
Depreciation and amortization	26,606	15,707
Total costs and expenses	93,517	78,608
Operating income (loss)	(23,179)	(9,497)
Other income (expense):
Interest income, net	891	559
Interest expense, net of amounts capitalized	(2,030)	(1,317)
Gains (losses) on investments, net	0	0
Equity in earnings (losses) of unconsolidated affiliates, net	0	0
Equity in earnings (losses) of subsidiaries, net	0	0
Foreign currency transaction gains (losses), net	(7,526)	230
Other, net	(3)	(76)
Total other income (expense), net	(8,668)	(604)
Income (loss) from continuing operations before income taxes	(31,847)	(10,101)
Income tax benefit (provision), net	(845)	2,026
Net income (loss) from continuing operations	(32,692)	(8,075)
Net income (loss) from discontinued operations		0
Net income (loss)	(32,692)	(8,075)
Less: Net loss (income) attributable to non-controlling interests	3,442	(806)
Net income (loss) attributable to Hughes Satellite Systems Corporation	(29,250)	(8,881)
Comprehensive income (loss):
Net income (loss)	(32,692)	(8,075)
Other comprehensive income (loss), net of tax:
Foreign currency translation	(82,836)	(838)
Unrealized gains (losses) on available-for-sale debt securities	0	0
Other	(405)	33
Equity in other comprehensive income (loss) of subsidiaries, net	0	0
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities		0
Total other comprehensive income (loss)	(83,241)	(805)
Comprehensive income (loss)	(115,933)	(8,880)
Less: Comprehensive loss (income) attributable to non-controlling interests	19,765	(806)
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	(96,168)	(9,686)
Reportable Legal Entities \| Non-Guarantor Subsidiaries \| Services and other revenue
Revenue:
Total revenue	64,928	59,696
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	42,063	39,333
Reportable Legal Entities \| Non-Guarantor Subsidiaries \| Equipment revenue
Revenue:
Total revenue	5,410	9,415
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	4,221	6,858
Eliminations
Revenue:
Total revenue	(22,776)	(19,152)
Costs and expenses:
Selling, general and administrative expenses	(440)	(693)
Research and development expenses	0	0
Depreciation and amortization	0	0
Total costs and expenses	(22,776)	(19,152)
Operating income (loss)	0	0
Other income (expense):
Interest income, net	(923)	(897)
Interest expense, net of amounts capitalized	923	897
Gains (losses) on investments, net	0	0
Equity in earnings (losses) of unconsolidated affiliates, net	0	0
Equity in earnings (losses) of subsidiaries, net	18,537	(43,411)
Foreign currency transaction gains (losses), net	0	0
Other, net	0	0
Total other income (expense), net	18,537	(43,411)
Income (loss) from continuing operations before income taxes	18,537	(43,411)
Income tax benefit (provision), net	0	0
Net income (loss) from continuing operations	18,537	(43,411)
Net income (loss) from discontinued operations		0
Net income (loss)	18,537	(43,411)
Less: Net loss (income) attributable to non-controlling interests	0	0
Net income (loss) attributable to Hughes Satellite Systems Corporation	18,537	(43,411)
Comprehensive income (loss):
Net income (loss)	18,537	(43,411)
Other comprehensive income (loss), net of tax:
Foreign currency translation	0	0
Unrealized gains (losses) on available-for-sale debt securities	0	0
Other	0	0
Equity in other comprehensive income (loss) of subsidiaries, net	133,836	1,610
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities		0
Total other comprehensive income (loss)	133,836	1,610
Comprehensive income (loss)	152,373	(41,801)
Less: Comprehensive loss (income) attributable to non-controlling interests	0	0
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	152,373	(41,801)
Eliminations \| Services and other revenue
Revenue:
Total revenue	(9,089)	(8,802)
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	(8,649)	(8,109)
Eliminations \| Equipment revenue
Revenue:
Total revenue	(13,687)	(10,350)
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	$ (13,687)	$ (10,350)

Business Combinations - Schedule of Recognized Identified Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Nov. 30, 2019
Assets:
Goodwill	$ 509,315	$ 506,953
Yahsat
Assets:
Cash and cash equivalents			$ 7,858
Other current assets, net			7,106
Property and equipment			86,983
Regulatory authorization			53,861
Goodwill			6,328
Other non-current assets, net			1,502
Total assets			114,275
Liabilities:
Trade accounts payable			3,879
Accrued expenses and other current liabilities			4,796
Total liabilities			8,675
Total purchase price			105,600
Regulatory authorization \| Yahsat
Assets:
Regulatory authorization			$ 4,498

Revenue Recognition - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 736.6
Expected percent recognized in next twelve months	39.60%

Marketable Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gains (losses) on investments, net	$ (164)	$ (732)

Other Investments (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Other Investments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Deluxe
Related Party Transaction [Line Items]
Ownership percentage		50.00%
Revenue from related parties		$ 1.3	$ 0.9
Trade accounts receivable - DISH Network		1.0		$ 0.6
Broadband Connectivity Solutions
Related Party Transaction [Line Items]
Ownership percentage	20.00%
Revenue from related parties		1.7	$ 2.3
Trade accounts receivable - DISH Network		$ 4.5		$ 5.2
Payments to acquire equity method investments	$ 100.0

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2020
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 partially 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 $5.2 million for the three months ended March 31, 2020 compared to $4.9 million for the three months ended March 31, 2019. Our estimated effective income tax rate was (41.2)% and 94.1% for the three months ended March 31, 2020 and 2019, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended March 31, 2020 were primarily due to the increase in our valuation allowance associated with certain foreign losses and the impact of state and local taxes, partially offset by the change in net unrealized losses that are capital in nature, permanent book tax differences and research and experimentation credits. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended March 31, 2019 were primarily due to the increase in our valuation allowance associated with certain foreign losses and the impact of state and local taxes, partially offset by the change in net unrealized losses that are capital in nature and research and experimentation credits. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in March 2020. The CARES Act features significant tax provisions and other measures to assist individuals and businesses impacted by the economic effects of the COVID-19 pandemic, including a five-year carryback of net operating losses, relaxation of Section 163(j) interest deduction limitations, acceleration of Alternative Minimum Tax refunds, relief for payroll tax and tax credits for employers who retain employees. These provisions did not affect our income tax provision for the three months ended March 31, 2020.

Related Party Transactions - DISH Network - Operating Expenses (Details) - DISH Network - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Operating expenses	$ 1,137	$ 714
Trade accounts payable - DISH Network	$ 610		$ 502

Label	Element	Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 2,131,754,000
Indefinite-lived Intangible Assets (Excluding Goodwill)	us-gaap_IndefiniteLivedIntangibleAssetsExcludingGoodwill	400,043,000
Indefinite-lived Intangible Assets (Excluding Goodwill)	us-gaap_IndefiniteLivedIntangibleAssetsExcludingGoodwill	400,043,000
Use Rights [Member]
Finite-Lived Intangible Assets, Accumulated Amortization	us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization	0
Finite-Lived Intangible Assets, Accumulated Amortization	us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization	0
Finite-Lived Intangible Assets, Net	us-gaap_FiniteLivedIntangibleAssetsNet	0
Finite-Lived Intangible Assets, Net	us-gaap_FiniteLivedIntangibleAssetsNet	0
Finite-Lived Intangible Assets, Gross	us-gaap_FiniteLivedIntangibleAssetsGross	0
Finite-Lived Intangible Assets, Gross	us-gaap_FiniteLivedIntangibleAssetsGross	0
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	662,246,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(84,636,000)
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	75,508,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(240,000)
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 1,478,636,000

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 467,547	$ 455,199
North America
Disaggregation of Revenue [Line Items]
Total revenue	387,082	372,867
South and Central America
Disaggregation of Revenue [Line Items]
Total revenue	33,956	26,863
Other
Disaggregation of Revenue [Line Items]
Total revenue	46,509	55,469
Hughes
Disaggregation of Revenue [Line Items]
Total revenue	458,482	445,337
ESS
Disaggregation of Revenue [Line Items]
Total revenue	4,367	3,852
Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	458,482	445,337
Operating segments \| Hughes \| North America
Disaggregation of Revenue [Line Items]
Total revenue	382,715	367,829
Operating segments \| Hughes \| South and Central America
Disaggregation of Revenue [Line Items]
Total revenue	33,956	26,863
Operating segments \| Hughes \| Other
Disaggregation of Revenue [Line Items]
Total revenue	41,811	50,645
Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	4,652	4,033
Operating segments \| ESS \| North America
Disaggregation of Revenue [Line Items]
Total revenue	4,652	4,033
Operating segments \| ESS \| South and Central America
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Operating segments \| ESS \| Other
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	4,413	5,829
Corporate and Other \| North America
Disaggregation of Revenue [Line Items]
Total revenue	(285)	1,005
Corporate and Other \| South and Central America
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Corporate and Other \| Other
Disaggregation of Revenue [Line Items]
Total revenue	4,698	4,824
Services
Disaggregation of Revenue [Line Items]
Total revenue	392,765	383,922
Services \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	390,000	380,783
Services \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	2,765	2,817
Services \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	0	322
Lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	17,473	19,563
Lease revenue \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	11,173	12,840
Lease revenue \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	1,887	1,216
Lease revenue \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	4,413	5,507
Services and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	410,238	403,485
Services and other revenue \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	401,173	393,623
Services and other revenue \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	4,652	4,033
Services and other revenue \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	4,413	5,829
Equipment
Disaggregation of Revenue [Line Items]
Total revenue	24,839	25,960
Equipment \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	24,839	25,960
Equipment \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Equipment \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Design, development and construction services
Disaggregation of Revenue [Line Items]
Total revenue	31,557	25,066
Design, development and construction services \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	31,557	25,066
Design, development and construction services \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Design, development and construction services \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	913	688
Lease revenue \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	913	688
Lease revenue \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Lease revenue \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Total equipment revenue
Disaggregation of Revenue [Line Items]
Total revenue	57,309	51,714
Total equipment revenue \| Operating segments \| Hughes
Disaggregation of Revenue [Line Items]
Total revenue	57,309	51,714
Total equipment revenue \| Operating segments \| ESS
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Total equipment revenue \| Corporate and Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 0	$ 0

Supplemental Financial Information - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 1,228,361	$ 1,139,435	$ 1,138,711	$ 847,823
Restricted cash	1,116	887	971	796
Total cash and cash equivalents, included restricted amounts	$ 1,229,477	$ 1,140,322	$ 1,139,682	$ 848,619

Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 1,228,361	$ 1,139,435	$ 1,138,711	$ 847,823
Marketable investment securities	524,941	652,835
Trade accounts receivable and contract assets, net	187,812	196,520
Other current assets, net	315,371	301,652
Total current assets	2,256,485	2,290,442
Non-current assets:
Property and equipment, net	1,750,561	1,857,581
Operating lease right-of-use assets	119,711	113,399
Goodwill	509,315	506,953
Regulatory authorizations, net	411,243	412,363	400,043	400,043
Other intangible assets, net	25,663	29,321
Other investments, net	108,952	110,040
Investment in subsidiaries	0	0
Other non-current assets, net	256,775	251,936
Total non-current assets	3,182,220	3,281,593
Total assets	5,438,705	5,572,035
Liabilities and Shareholder's Equity
Trade accounts payable	106,339	121,552
Contract liabilities	99,266	101,060
Accrued expenses and other current liabilities	231,890	258,417
Total current liabilities	437,495	481,029
Long-term debt	2,390,218	2,389,168
Deferred tax liabilities, net	381,221	380,316
Operating lease liabilities	105,457	96,879
Other non-current liabilities	88,596	90,480
Total non-current liabilities	2,965,492	2,956,843
Total liabilities	3,402,987	3,437,872
Total Hughes Satellite Systems Corporation shareholder's equity	1,977,489	2,058,415
Non-controlling interests	58,229	75,748
Total shareholder's equity	2,035,718	2,134,163	$ 2,410,487	$ 2,392,495
Total liabilities and shareholder's equity	5,438,705	5,572,035
Reportable Legal Entities \| HSSC
Current assets:
Cash and cash equivalents	1,174,650	1,057,903
Marketable investment securities	524,864	652,594
Trade accounts receivable and contract assets, net	0	0
Other current assets, net	93,526	93,536
Total current assets	1,793,040	1,804,033
Non-current assets:
Property and equipment, net	0	0
Operating lease right-of-use assets	0	0
Goodwill	0	0
Regulatory authorizations, net	0	0
Other intangible assets, net	0	0
Other investments, net	0	0
Investment in subsidiaries	2,823,219	2,876,572
Other non-current assets, net	18,179	10,672
Total non-current assets	2,841,398	2,887,244
Total assets	4,634,438	4,691,277
Liabilities and Shareholder's Equity
Trade accounts payable	0	0
Contract liabilities	0	0
Accrued expenses and other current liabilities	266,731	243,694
Total current liabilities	266,731	243,694
Long-term debt	2,390,218	2,389,168
Deferred tax liabilities, net	0	0
Operating lease liabilities	0	0
Other non-current liabilities	0	0
Total non-current liabilities	2,390,218	2,389,168
Total liabilities	2,656,949	2,632,862
Total Hughes Satellite Systems Corporation shareholder's equity	1,977,489	2,058,415
Non-controlling interests	0	0
Total shareholder's equity	1,977,489	2,058,415
Total liabilities and shareholder's equity	4,634,438	4,691,277
Reportable Legal Entities \| Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	19,878	32,338
Marketable investment securities	77	241
Trade accounts receivable and contract assets, net	131,579	129,722
Other current assets, net	655,191	602,337
Total current assets	806,725	764,638
Non-current assets:
Property and equipment, net	1,425,670	1,459,151
Operating lease right-of-use assets	96,944	89,106
Goodwill	504,173	504,173
Regulatory authorizations, net	400,000	400,000
Other intangible assets, net	25,663	29,321
Other investments, net	108,952	110,040
Investment in subsidiaries	207,664	282,163
Other non-current assets, net	288,132	772,193
Total non-current assets	3,057,198	3,646,147
Total assets	3,863,923	4,410,785
Liabilities and Shareholder's Equity
Trade accounts payable	87,132	102,744
Contract liabilities	93,741	96,485
Accrued expenses and other current liabilities	311,723	314,583
Total current liabilities	492,596	513,812
Long-term debt	0	0
Deferred tax liabilities, net	398,786	390,288
Operating lease liabilities	86,603	77,366
Other non-current liabilities	63,401	553,518
Total non-current liabilities	548,790	1,021,172
Total liabilities	1,041,386	1,534,984
Total Hughes Satellite Systems Corporation shareholder's equity	2,822,537	2,875,801
Non-controlling interests	0	0
Total shareholder's equity	2,822,537	2,875,801
Total liabilities and shareholder's equity	3,863,923	4,410,785
Reportable Legal Entities \| Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	33,833	49,194
Marketable investment securities	0	0
Trade accounts receivable and contract assets, net	56,233	66,798
Other current assets, net	109,288	107,959
Total current assets	199,354	223,951
Non-current assets:
Property and equipment, net	324,891	398,430
Operating lease right-of-use assets	22,767	24,293
Goodwill	5,142	2,780
Regulatory authorizations, net	11,243	12,363
Other intangible assets, net	0	0
Other investments, net	0	0
Investment in subsidiaries	0	0
Other non-current assets, net	43,055	42,557
Total non-current assets	407,098	480,423
Total assets	606,452	704,374
Liabilities and Shareholder's Equity
Trade accounts payable	19,207	18,808
Contract liabilities	5,525	4,575
Accrued expenses and other current liabilities	196,070	202,320
Total current liabilities	220,802	225,703
Long-term debt	0	0
Deferred tax liabilities, net	0	0
Operating lease liabilities	18,854	19,513
Other non-current liabilities	100,221	100,476
Total non-current liabilities	119,075	119,989
Total liabilities	339,877	345,692
Total Hughes Satellite Systems Corporation shareholder's equity	208,346	282,934
Non-controlling interests	58,229	75,748
Total shareholder's equity	266,575	358,682
Total liabilities and shareholder's equity	606,452	704,374
Eliminations
Current assets:
Cash and cash equivalents	0	0
Marketable investment securities	0	0
Trade accounts receivable and contract assets, net	0	0
Other current assets, net	(542,634)	(502,180)
Total current assets	(542,634)	(502,180)
Non-current assets:
Property and equipment, net	0	0
Operating lease right-of-use assets	0	0
Goodwill	0	0
Regulatory authorizations, net	0	0
Other intangible assets, net	0	0
Other investments, net	0	0
Investment in subsidiaries	(3,030,883)	(3,158,735)
Other non-current assets, net	(92,591)	(573,486)
Total non-current assets	(3,123,474)	(3,732,221)
Total assets	(3,666,108)	(4,234,401)
Liabilities and Shareholder's Equity
Trade accounts payable	0	0
Contract liabilities	0	0
Accrued expenses and other current liabilities	(542,634)	(502,180)
Total current liabilities	(542,634)	(502,180)
Long-term debt	0	0
Deferred tax liabilities, net	(17,565)	(9,972)
Operating lease liabilities	0	0
Other non-current liabilities	(75,026)	(563,514)
Total non-current liabilities	(92,591)	(573,486)
Total liabilities	(635,225)	(1,075,666)
Total Hughes Satellite Systems Corporation shareholder's equity	(3,030,883)	(3,158,735)
Non-controlling interests	0	0
Total shareholder's equity	(3,030,883)	(3,158,735)
Total liabilities and shareholder's equity	$ (3,666,108)	$ (4,234,401)

Marketable Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

MARKETABLE INVESTMENT SECURITIES

The following table presents our Marketable investment securities:



	As of
	March 31, 2020		December 31, 2019
Marketable investment securities:
Debt securities:
Available-for-sale:
Corporate bonds	$	319,295	$	411,706
Other debt securities	205,569		240,888
Total available-for-sale debt securities	524,864		652,594
Equity securities	77		241
Total marketable investment securities	$	524,941	$	652,835

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.

Available-for-Sale

The following table presents the components of our available-for-sale debt securities:



	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
As of March 31, 2020
Corporate bonds	$	321,466	$	—	$	(2,171	)	$	319,295
Other debt securities	205,569		—		—			205,569
Total available-for-sale debt securities	$	527,035	$	—	$	(2,171	)	$	524,864

As of December 31, 2019
Corporate bonds	$	411,312	$	395	$	(1	)	$	411,706
Other debt securities	240,887		1		—			240,888
Total available-for-sale debt securities	$	652,199	$	396	$	(1	)	$	652,594

The following table presents the activity on our available-for-sale debt securities:



	For the three months ended March 31,
	2020		2019
Proceeds from sales	$	10,000	$	311,823
Gains (losses) on sales, net	$	—	$	385

As of March 31, 2020, we have $491.9 million of available-for-sale debt securities with contractual maturities of one year or less and $33.0 million with contractual maturities greater than one year.

Equity Securities

The following table presents the activity of our equity securities:



	For the three months ended March 31,
	2020			2019
Gains (losses) on investments, net	$	(164	)	$	(732	)

For the three months ended March 31, 2020 and 2019, we did not have any sales of equity securities.

Fair Value Measurements

The following table presents our marketable investment securities categorized by the fair value hierarchy, certain of which have historically experienced volatility:



	As of
	March 31, 2020						December 31, 2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Available-for-sale debt securities:
Corporate bonds	$	—	$	319,295	$	319,295	$	—	$	411,706	$	411,706
Other debt securities	—		205,569		205,569		—		240,888		240,888
Total available-for-sale debt securities	—		524,864		524,864		—		652,594		652,594
Equity securities	77		—		77		241		—		241
Total marketable investment securities	$	77	$	524,864	$	524,941	$	241	$	652,594	$	652,835

As of March 31, 2020 and December 31, 2019, we did not have any investments that were categorized within Level 3 of the fair value hierarchy.

Supplemental Financial Information - Schedule of Other Current Assets and Other Non-Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other current assets, net:
Inventory	$ 88,302	$ 79,474
Prepaids and deposits	47,055	42,324
Contract acquisition costs, net	14,290	16,869
Other, net	23,821	22,217
Total other current assets, net	315,371	301,652
Non-current assets:
Restricted cash	1,116	887
Deferred Income Tax Assets, Net	7,098	7,215
Deferred tax assets, net	104,401	101,786
Other Assets, Miscellaneous, Noncurrent	25,859	22,556
Other Assets, Noncurrent	256,775	251,936
DISH Network
Other current assets, net:
Trade accounts receivable - DISH Network	9,955	8,876
EchoStar
Other current assets, net:
Trade accounts receivable - DISH Network	151,360	151,651
Related party receivables - EchoStar	131,948	131,892
Non-current assets:
Related party receivables - EchoStar	19,412	19,759
Contract Acquisition Costs
Non-current assets:
Contract costs, net	96,107	96,723
Contract Fulfillment Costs
Non-current assets:
Contract costs, net	$ 2,782	$ 3,010

Related Party Transactions - DISH Network (Details) - USD ($) $ in Millions		1 Months Ended								3 Months Ended
	Feb. 27, 2017	Feb. 28, 2022	Sep. 30, 2019	Feb. 28, 2019	Dec. 31, 2017	Aug. 31, 2017	Mar. 31, 2017	Aug. 31, 2015	Oct. 31, 2012	Mar. 31, 2020	Mar. 31, 2019	May 31, 2012
Satellite and Tracking Stock Transaction \| Hughes Retail Group \| Hughes Retail Preferred Tracking Stock \| DISH Network
Related Party Transaction [Line Items]
Percentage of economic interest in the Hughes Retail Group	80.00%
TerreStar Agreement \| DISH Network
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party					21 days
Related party transactions, required minimum notice period for termination of agreement					90 days
Hughes Broadband Distribution Agreement
Related Party Transaction [Line Items]
Automatic renewal period									1 year
Hughes Broadband Distribution Agreement \| DISH Network
Related Party Transaction [Line Items]
Agreement term									5 years
Related party transactions, required minimum notice period for termination of agreement										180 days
DBSD North America Agreement \| DISH Network
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party				21 days
Related party transactions, required minimum notice period for termination of agreement					120 days
Hughes Equipment And Service Agreement \| DISH Network
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party				365 days
Automatic renewal period				1 year
Related party transactions, required minimum notice period for termination of agreement				180 days
Amended and Restated Professional Services Agreement [Member] \| DISH Network
Related Party Transaction [Line Items]
Automatic renewal period										1 year
EchoStar Amended and Restated Professional Services Agreement \| DISH Network
Related Party Transaction [Line Items]
Related party transactions, required minimum notice period for termination of agreement			60 days
Required minimum notice for termination of individual service			30 days
Collocation and Antenna Space Agreements \| DISH Network
Related Party Transaction [Line Items]
Term of renewal option						3 years		4 years
Required minimum notice period for termination of agreement by the reporting entity						180 days
Antenna Space And Power Agreements \| DISH Network
Related Party Transaction [Line Items]
Term of renewal option			3 years
Hughes Broadband Master Services Agreement \| DISH Network
Related Party Transaction [Line Items]
Agreement term							5 years
Automatic renewal period							1 year
Related party transactions, required minimum notice period for termination of agreement							90 days
Sales incentives and other costs										$ 4.6	$ 4.8
TT&C Agreement \| DISH Network
Related Party Transaction [Line Items]
Term of renewal option			1 year
Required minimum notice period for termination of agreement by the reporting entity			12 months
Renewal notice required by reporting entity			90 days
Subsequent event \| DBSD North America Agreement \| DISH Network
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party		180 days
Maximum \| Collocation and Antenna Space Agreements \| DISH Network
Related Party Transaction [Line Items]
Renewal notice required by reporting entity						120 days
Maximum \| Antenna Space And Power Agreements \| DISH Network
Related Party Transaction [Line Items]
Renewal notice required by reporting entity			120 days
Minimum \| Collocation and Antenna Space Agreements \| DISH Network
Related Party Transaction [Line Items]
Renewal notice required by reporting entity						90 days
Minimum \| Antenna Space And Power Agreements \| DISH Network
Related Party Transaction [Line Items]
Renewal notice required by reporting entity			90 days
Ciel Satellite Holdings Inc \| Satellite Capacity Lease Agreement
Related Party Transaction [Line Items]
Term of contract												10 years
Forecast \| DBSD North America Agreement \| DISH Network
Related Party Transaction [Line Items]
Automatic renewal period		5 years
Related Party Transactions, Lessee, Operating Lease, Real Estate \| American Fork Occupancy License Agreement \| DISH Network
Related Party Transaction [Line Items]
Term of contract						5 years

Related Party Transactions - EchoStar

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS - ECHOSTAR

Services and Other Revenue - EchoStar

The following table presents our Services and other revenue from EchoStar:



	For the three months ended March 31,
	2020		2019
Services and other revenue - EchoStar	$	4,699	$	4,474

The following table presents the corresponding related party receivables:



	As of
	March 31, 2020		December 31, 2019
Related party receivables - EchoStar - current	$	131,948	$	131,892
Related party receivables - EchoStar - non-current	19,412		19,759
Total related party receivables - EchoStar	$	151,360	$	151,651

Operating Expenses - EchoStar

The following table presents our operating expenses related to EchoStar:



	For the three months ended March 31,
	2020		2019
Operating expenses - EchoStar	$	12,642	$	13,306

The following table presents the corresponding related party payables:



	As of
	March 31, 2020		December 31, 2019
Related party payables - EchoStar - current	$	13,793	$	11,132
Related party payables - EchoStar - non-current	23,748		23,980
Total related party payables - EchoStar	$	37,541	$	35,112

Other Agreements

RELATED PARTY TRANSACTIONS - DISH NETWORK

Overview

Services and Other Revenue — DISH Network

The following table presents our Services and other revenue from DISH Network:



	For the three months ended March 31,
	2020		2019
Services and other revenue - DISH Network	$	7,587	$	11,545

The following table presents the related trade accounts receivable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts receivable - DISH Network	$	9,955	$	8,876


•	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.

•

Operating Expenses — DISH Network

The following table presents our operating expenses related to DISH Network:



	For the three months ended March 31,
	2020		2019
Operating expenses - DISH Network	$	1,137	$	714

The following table presents the related trade accounts payable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts payable - DISH Network	$	610	$	502

Other Receivables - DISH Network

Other Agreements

NOTE 16. RELATED PARTY TRANSACTIONS - OTHER

Hughes Systique Corporation

TerreStar Solutions, Inc.

Global-IP Cayman

Maxar Technologies Inc.

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 8,399	$ 4,240
Work-in-process	9,421	6,979
Finished goods	70,482	68,255
Total inventory	$ 88,302	$ 79,474

Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The following tables presents the components of Property and equipment, net:



	As of
	March 31, 2020		December 31, 2019
Property and equipment, net:
Satellites, net	$	1,059,542	$	1,127,521
Other property and equipment, net	691,019		730,060
Total property and equipment, net	$	1,750,561	$	1,857,581

Satellites

As of March 31, 2020, our operating satellite fleet consisted of eight satellites, five of which are owned and three of which are leased. They are all in geosynchronous orbit, approximately 22,300 miles above the equator.

The following table presents our owned and leased satellites:



Satellite	Segment	Launch Date	Nominal Degree Orbital Location (Longitude)	Depreciable Life (In Years)
Owned:
SPACEWAY 3 ⁽¹⁾	Hughes	August 2007	95 W	10
EchoStar XVII	Hughes	July 2012	107 W	15
EchoStar XIX	Hughes	December 2016	97.1 W	15
Al Yah 3 ⁽²⁾	Hughes	January 2018	20 W	7
EchoStar IX ⁽³⁾	ESS	August 2003	121 W	12

Finance leases:
Eutelsat 65 West A	Hughes	March 2016	65 W	15
Telesat T19V	Hughes	July 2018	63 W	15
EchoStar 105/SES-11	ESS	October 2017	105 W	15

(1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”).

(2) Upon consummation of our joint venture with Yahsat in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019.

(3) We own the Ka-band and Ku-band payloads on this satellite.

The following table presents the components of our satellites, net:



	Depreciable Life (In Years)	As of
	Depreciable Life (In Years)	March 31, 2020			December 31, 2019
Satellites, net:
Satellites - owned	7 to 15	$	1,503,580		$	1,516,006
Satellites - acquired under finance leases	15	352,206			381,162
Total satellites		1,855,786			1,897,168
Accumulated depreciation:
Satellites - owned		(739,859		)	(713,259		)
Satellites - acquired under finance leases		(56,385		)	(56,388		)
Total accumulated depreciation		(796,244		)	(769,647		)
Total satellites, net		$	1,059,542		$	1,127,521

The following table presents the depreciation expense and capitalized interest associated with our satellites:



	For the three months ended March 31,
	2020		2019
Depreciation expense:
Satellites - owned	$	27,068	$	27,010
Satellites acquired under finance leases	6,013		6,490
Total depreciation expense	$	33,081	$	33,500

Capitalized interest	$	637	$	147

Satellite Commitments

As of March 31, 2020 and December 31, 2019, our satellite-related obligations were $245.5 million and $256.9 million, respectively. These primarily include payments pursuant to regulatory authorizations, non-lease costs associated with our finance lease satellites, in-orbit incentives relating to certain satellites and commitments for satellite service arrangements.

In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change.

Satellite Anomalies and Impairments

We are not aware of any anomalies with respect to our owned or leased satellites or payloads that have had any significant adverse effect on their remaining useful lives, the commercial operation of the satellites or payloads or our operating results or financial position as of and for the three months ended March 31, 2020.

Satellite Insurance

We generally do not carry in-orbit insurance on our satellites or payloads 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 long-term debt and our joint venture agreements with Yahsat, we are required, subject to certain limitations on coverage, to maintain only for the SPACEWAY 3 satellite, the EchoStar XVII satellite and the Al Yah 3 Brazilian payload, insurance or other contractual arrangements during the commercial in-orbit service of such satellite or payload. Our other satellites and payloads, either in orbit or under construction, are not covered by launch or in-orbit insurance or other contractual arrangements. We will continue to assess circumstances going forward and make insurance-related decisions on a case-by-case basis.

Fair Value of In-Orbit Incentives

As of March 31, 2020 and December 31, 2019, the fair values of our in-orbit incentive obligations from our continuing operations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $56.2 million and $57.0 million, respectively.

Segment Reporting (Details) $ in Thousands	3 Months Ended
Segment Reporting (Details) $ in Thousands	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)
Segment Reporting [Abstract]
Number of business segments \| segment	2
Segment Reporting Information [Line Items]
Total revenue	$ 467,547	$ 455,199
Capital expenditures	91,517	73,821
Income (loss) from continuing operations before income taxes	(12,682)	5,180
Interest income, net	(8,892)	(17,997)
Interest expense, net of amounts capitalized	42,192	57,915
Depreciation and amortization	(125,965)	(112,411)
Net loss (income) attributable to non-controlling interests	3,442	(806)
EBITDA	150,025	156,703
Corporate and Other
Segment Reporting Information [Line Items]
Total revenue	4,698	6,010
Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	(285)	(181)
Corporate and Other
Segment Reporting Information [Line Items]
Total revenue	4,413	5,829
Capital expenditures	0	0
EBITDA	(6,646)	(6,158)
Hughes
Segment Reporting Information [Line Items]
Total revenue	458,482	445,337
Hughes \| Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	0	0
Hughes \| Operating segments
Segment Reporting Information [Line Items]
Total revenue	458,482	445,337
Capital expenditures	91,517	73,821
EBITDA	154,641	161,132
ESS
Segment Reporting Information [Line Items]
Total revenue	4,367	3,852
ESS \| Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	285	181
ESS \| Operating segments
Segment Reporting Information [Line Items]
Total revenue	4,652	4,033
Capital expenditures	0	0
EBITDA	$ 2,030	$ 1,729

Discontinued Operations - Narrative (Details) $ in Millions	1 Months Ended
Discontinued Operations - Narrative (Details) $ in Millions	Mar. 31, 2017 USD ($)	Dec. 31, 2017	Feb. 28, 2017	Feb. 28, 2013 transponder	Sep. 30, 2009 transponder	Nov. 30, 2008 transponder
EOC \| EchoStar XXIII \| Other noncurrent assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transfer of launch service contracts \| $	$ 62.0
Telesat Canada \| TeleSat Transponder Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of DBS transponders available					32
S E S Latin America \| Satellite Services Agreement \| QuetzSat-1
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of DBS transponders receiving services / transponder						32
DISH Network \| DISH Nimiq 5 Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of DBS transponders available					32
DISH Network \| Satellite Capacity Lease Agreement \| QuetzSat-1
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of DBS transponders currently receiving services						24
Number of DBS transponders receiving services sublease/transponder				5
EchoStar Technologies Business \| DISH Network \| Share Exchange Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest acquired by related party		100.00%	100.00%

Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of cost of sales and research and development costs

The following table presents the research and development costs incurred in connection with customers’ orders:



	For the three months ended March 31,
	2020		2019
Cost of sales - equipment (exclusive of depreciation and amortization)	$	6,692	$	5,395
Research and development expenses	$	6,254	$	6,888

Schedule of cash and cash equivalents and restricted cash



	For the three months ended March 31,
	2020		2019
Cash and cash equivalents, including restricted amounts, beginning of period:
Cash and cash equivalents	$	1,139,435	$	847,823
Restricted cash	887		796
Total cash and cash equivalents, included restricted amounts, beginning of period	$	1,140,322	$	848,619

Cash and cash equivalents, including restricted amounts, end of period:
Cash and cash equivalents	$	1,228,361	$	1,138,711
Restricted cash	1,116		971
Total cash and cash equivalents, included restricted amounts, end of period	$	1,229,477	$	1,139,682

Schedule of cash and cash equivalents and restricted cash



	For the three months ended March 31,
	2020		2019
Cash and cash equivalents, including restricted amounts, beginning of period:
Cash and cash equivalents	$	1,139,435	$	847,823
Restricted cash	887		796
Total cash and cash equivalents, included restricted amounts, beginning of period	$	1,140,322	$	848,619

Cash and cash equivalents, including restricted amounts, end of period:
Cash and cash equivalents	$	1,228,361	$	1,138,711
Restricted cash	1,116		971
Total cash and cash equivalents, included restricted amounts, end of period	$	1,229,477	$	1,139,682

Schedule of other assets and liabilities

The following table presents the components of Other current assets, net, and Other non-current assets, net:



	As of
	March 31, 2020		December 31, 2019
Other current assets, net:
Trade accounts receivable - DISH Network	$	9,955	$	8,876
Inventory	88,302		79,474
Prepaids and deposits	47,055		42,324
Contract acquisition costs, net	14,290		16,869
Related party receivables - EchoStar	131,948		131,892
Other, net	23,821		22,217
Total other current assets, net	$	315,371	$	301,652

Other non-current assets, net:
Restricted cash	$	1,116	$	887
Deferred tax assets, net	7,098		7,215
Capitalized software, net	104,401		101,786
Contract acquisition costs, net	96,107		96,723
Contract fulfillment costs, net	2,782		3,010
Related party receivables - EchoStar	19,412		19,759
Other, net	25,859		22,556
Total other non-current assets, net	$	256,775	$	251,936

The following table presents the components of Accrued expenses and other current liabilities and Other non-current liabilities:



	As of
	March 31, 2020		December 31, 2019
Accrued expenses and other current liabilities:
Trade accounts payable - DISH Network	$	610	$	502
Accrued interest	35,905		32,184
Accrued compensation	31,707		42,846
Accrued taxes	7,534		18,493
Operating lease obligation	13,393		14,112
Related party payables - EchoStar	13,793		11,132
Other	128,948		139,148
Total accrued expenses and other current liabilities	$	231,890	$	258,417

Other non-current liabilities:
Related party payables - EchoStar	$	23,748	$	23,980
Other	64,848		66,500
Total other non-current liabilities	$	88,596	$	90,480

Activity in allowance for credit loss

The following table presents the activity in our allowance for doubtful accounts:



	Balance at Beginning of Period		Credit Losses ⁽¹⁾			Deductions			Foreign Currency Translation			Balance at End of Period
For the three months ended:
March 31, 2020	$	23,777	$	(5,754	)	$	(6,325	)	$	(1,090	)	$	10,608
March 31, 2019	$	16,604	$	4,177		$	(6,738	)	$	(15	)	$	14,028

⁽¹⁾ The impact of adopting ASC 326 on January 1, 2020 was a net decrease to our allowance for doubtful accounts largely driven by a $13.4 million reclassification to Other current assets, net and Other non-current assets, net, offset by a $2.9 million adjustment to Accumulated earnings (losses).



	Balance at Beginning of Period		Credit Losses ⁽¹⁾		Deductions		Foreign Currency Translation			Balance at End of Period
For the three months ended March 31, 2020
Other current assets, net	$	—	$	1,595	$	—	$	—		$	1,595
Other non-current assets, net	$	—	$	13,379	$	—	$	(358	)	$	13,021

Schedule of inventory

The following table presents the components of inventory:



	As of
	March 31, 2020		December 31, 2019
Raw materials	$	8,399	$	4,240
Work-in-process	9,421		6,979
Finished goods	70,482		68,255
Total inventory	$	88,302	$	79,474

Schedule of other significant noncash transactions

The following table presents the supplemental and non-cash investing and financing activities:



	For the three months ended March 31,
	2020			2019
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	49,563		$	54,277
Cash paid for income taxes	$	716		$	652

Non-cash investing and financing activities:
Increase (decrease) in capital expenditures included in accounts payable, net	$	(5,359	)	$	(2,163	)

Other Investments (Tables)

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Schedule of investment in unconsolidated Entities

The following table presents the components of Other investments, net:



	As of
	March 31, 2020		December 31, 2019
Other investments, net:
Equity method investments	$	101,601	$	102,689
Other equity investments	7,351		7,351
Total other investments, net	$	108,952	$	110,040

Related Party Transactions - DISH Network - Other Agreements (Details) - shares	1 Months Ended
	Sep. 30, 2019	May 31, 2019	Dec. 31, 2017	Feb. 28, 2017
DISH Network \| Common Class A
Related Party Transaction [Line Items]
Stock conversion, numerator (in shares)	0.23523769	0.23523769
DISH Network \| EchoStar Technologies Business \| Share Exchange Agreement
Related Party Transaction [Line Items]
Ownership interest acquired by related party			100.00%	100.00%

Organization and Business Activities (Details)	1 Months Ended		3 Months Ended
Organization and Business Activities (Details)	Sep. 30, 2019 $ / shares shares	May 31, 2019 shares	Mar. 31, 2020 segment $ / shares	Dec. 31, 2019 $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments \| segment			2
Related Party Transaction [Line Items]
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01
BSS Corp. \| Common Stock
Related Party Transaction [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
DISH Network \| Common Class A
Related Party Transaction [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
Stock conversion, numerator (in shares) \| shares	0.23523769	0.23523769

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	333-179121
Entity Registrant Name	Hughes Satellite Systems Corporation
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	45-0897865
Entity Address, Address Line One	100 Inverness Terrace East,
Entity Address, City or Town	Englewood,
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112-5308
City Area Code	(303)
Local Phone Number	706-4000
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,078
Entity Central Index Key	0001533758
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Marketable Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of activity in available-for-sale debt securities

The following table presents our Marketable investment securities:



	As of
	March 31, 2020		December 31, 2019
Marketable investment securities:
Debt securities:
Available-for-sale:
Corporate bonds	$	319,295	$	411,706
Other debt securities	205,569		240,888
Total available-for-sale debt securities	524,864		652,594
Equity securities	77		241
Total marketable investment securities	$	524,941	$	652,835

The following table presents the activity on our available-for-sale debt securities:



	For the three months ended March 31,
	2020		2019
Proceeds from sales	$	10,000	$	311,823
Gains (losses) on sales, net	$	—	$	385

Schedule of unrealized gains (losses) on marketable investment securities

The following table presents the components of our available-for-sale debt securities:



	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
As of March 31, 2020
Corporate bonds	$	321,466	$	—	$	(2,171	)	$	319,295
Other debt securities	205,569		—		—			205,569
Total available-for-sale debt securities	$	527,035	$	—	$	(2,171	)	$	524,864

As of December 31, 2019
Corporate bonds	$	411,312	$	395	$	(1	)	$	411,706
Other debt securities	240,887		1		—			240,888
Total available-for-sale debt securities	$	652,199	$	396	$	(1	)	$	652,594

Schedule of activity in equity securities

The following table presents the activity of our equity securities:



	For the three months ended March 31,
	2020			2019
Gains (losses) on investments, net	$	(164	)	$	(732	)

Schedule of fair value measurements

The following table presents our marketable investment securities categorized by the fair value hierarchy, certain of which have historically experienced volatility:



	As of
	March 31, 2020						December 31, 2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Available-for-sale debt securities:
Corporate bonds	$	—	$	319,295	$	319,295	$	—	$	411,706	$	411,706
Other debt securities	—		205,569		205,569		—		240,888		240,888
Total available-for-sale debt securities	—		524,864		524,864		—		652,594		652,594
Equity securities	77		—		77		241		—		241
Total marketable investment securities	$	77	$	524,864	$	524,941	$	241	$	652,594	$	652,835

Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Business segments are 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 operate in two business segments, Hughes and ESS, as described in Note 1. Organization and Business Activities.

The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, net income (loss) from discontinued operations and net income (loss) attributable to non-controlling interests (“EBITDA”).

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 business segments. Capital expenditures are net of refunds and other receipts related to our property and equipment.



	Hughes		ESS		Corporate and Other			Consolidated Total
For the three months ended March 31, 2020
External revenue	$	458,482	$	4,367	$	4,698		$	467,547
Intersegment revenue	—		285		(285		)	—
Total revenue	$	458,482	$	4,652	$	4,413		$	467,547

EBITDA	$	154,641	$	2,030	$	(6,646	)	$	150,025
Capital expenditures	$	91,517	$	—	$	—		$	91,517

For the three months ended March 31, 2019
External revenue	$	445,337	$	3,852	$	6,010		$	455,199
Intersegment revenue	—		181		(181		)	—
Total revenue	$	445,337	$	4,033	$	5,829		$	455,199

EBITDA	$	161,132	$	1,729	$	(6,158	)	$	156,703
Capital expenditures	$	73,821	$	—	$	—		$	73,821

The following table reconciles Income (loss) from continuing operations before income taxes in the Condensed Consolidated Statements of Operations to EBITDA:



	For the three months ended March 31,
	2020			2019
Income (loss) from continuing operations before income taxes	$	(12,682	)	$	5,180
Interest income, net	(8,892		)	(17,997		)
Interest expense, net of amounts capitalized	42,192			57,915
Depreciation and amortization	125,965			112,411
Net loss (income) attributable to non-controlling interests	3,442			(806		)
EBITDA	$	150,025		$	156,703

Related Party Transactions - EchoStar - Revenue (Details) - EchoStar - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Revenue from related parties	$ 4,699	$ 4,474
Related party receivables - current	131,948		$ 131,892
Related party receivables - EchoStar	19,412		19,759
Total related party receivables	$ 151,360		$ 151,651

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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 CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (17,913)	$ 23,032
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	125,965	143,530
Losses (gains) on investments, net	164	346
Equity in losses (earnings) of unconsolidated affiliates, net	1,087	1,072
Foreign currency transaction losses (gains), net	7,528	(211)
Deferred tax provision (benefit), net	1,526	9,936
Stock-based compensation	1,457	1,433
Amortization of debt issuance costs	1,050	2,010
Other, net	(810)	1,370
Changes in assets and liabilities, net:
Trade accounts receivable and contract assets, net	(8,162)	(19,228)
Other current assets, net	(21,268)	(11,098)
Trade accounts payable	(10,984)	8,122
Contract liabilities	(3,213)	17,931
Accrued expenses and other current liabilities	(5,007)	(13,450)
Non-current assets and non-current liabilities, net	(6,196)	6,170
Net cash flows from operating activities	65,224	170,965
Cash flows from investing activities:
Purchases of marketable investment securities	(365,877)	(240,188)
Sales and maturities of marketable investment securities	490,020	468,745
Expenditures for property and equipment	(91,517)	(73,929)
Expenditures for externally marketed software	(8,638)	(7,600)
Net cash flows from investing activities	23,988	147,028
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes	0	(8,046)
Payment of finance lease obligations	(215)	(9,882)
Payment of in-orbit incentive obligations	(203)	(1,573)
Contribution by non-controlling interest holder	4,000	0
Purchase of non-controlling interest	0	(7,312)
Other, net	979	0
Net cash flows from financing activities	4,561	(26,813)
Effect of exchange rates on cash and cash equivalents	(4,618)	(117)
Net increase (decrease) in cash and cash equivalents	89,155	291,063
Cash and cash equivalents, including restricted amounts, beginning of period	1,140,322	848,619
Cash and cash equivalents, including restricted amounts, end of period	$ 1,229,477	$ 1,139,682

Related Party Transactions - DISH Network (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of related party transactions

The following table presents our Services and other revenue from EchoStar:



	For the three months ended March 31,
	2020		2019
Services and other revenue - EchoStar	$	4,699	$	4,474

The following table presents the corresponding related party receivables:



	As of
	March 31, 2020		December 31, 2019
Related party receivables - EchoStar - current	$	131,948	$	131,892
Related party receivables - EchoStar - non-current	19,412		19,759
Total related party receivables - EchoStar	$	151,360	$	151,651

The following table presents our operating expenses related to EchoStar:



	For the three months ended March 31,
	2020		2019
Operating expenses - EchoStar	$	12,642	$	13,306

The following table presents the corresponding related party payables:



	As of
	March 31, 2020		December 31, 2019
Related party payables - EchoStar - current	$	13,793	$	11,132
Related party payables - EchoStar - non-current	23,748		23,980
Total related party payables - EchoStar	$	37,541	$	35,112

The following table presents our Services and other revenue from DISH Network:



	For the three months ended March 31,
	2020		2019
Services and other revenue - DISH Network	$	7,587	$	11,545

The following table presents the related trade accounts receivable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts receivable - DISH Network	$	9,955	$	8,876

The following table presents our operating expenses related to DISH Network:



	For the three months ended March 31,
	2020		2019
Operating expenses - DISH Network	$	1,137	$	714

The following table presents the related trade accounts payable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts payable - DISH Network	$	610	$	502

Supplemental Guarantor and Non-Guarantor Financial Information

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

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 5 1/4% Senior Secured Notes due August 1, 2026, 7 5/8% Senior Unsecured Notes due 2021 and 6 5/8% Senior Unsecured Notes due August 1, 2026 (collectively, the “Notes”).

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

In lieu of separate financial statements of the Guarantor Subsidiaries, we have prepared the accompanying condensed consolidating financial information in accordance with Rule 3-10(f) of Regulation S-X. This includes:


•	the accompanying condensed balance sheet;


•	the accompanying condensed statement of operations and comprehensive income (loss); and


•	the accompanying condensed statement of cash flows.

This also includes consolidating financial information as follows:


•	the Guarantor Subsidiaries on a combined basis;


•	the non-guarantor subsidiaries of HSSC on a combined basis; and


•	the eliminations necessary to arrive at the corresponding information of HSSC on a consolidated basis.

This accompanying condensed consolidating financial information should be read in conjunction with these Condensed Consolidated Financial Statements.

Condensed Consolidating Balance Sheet as of March 31, 2020



	HSSC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	1,174,650	$	19,878	$	33,833	$	—		$	1,228,361
Marketable investment securities	524,864		77		—		—			524,941
Trade accounts receivable and contract assets, net	—		131,579		56,233		—			187,812
Other current assets	93,526		655,191		109,288		(542,634		)	315,371
Total current assets	1,793,040		806,725		199,354		(542,634		)	2,256,485
Non-current assets:
Property and equipment, net	—		1,425,670		324,891		—			1,750,561
Operating lease right-of-use assets	—		96,944		22,767		—			119,711
Goodwill	—		504,173		5,142		—			509,315
Regulatory authorizations, net	—		400,000		11,243		—			411,243
Other intangible assets, net	—		25,663		—		—			25,663
Other investments, net	—		108,952		—		—			108,952
Investment in subsidiaries	2,823,219		207,664		—		(3,030,883		)	—
Other non-current assets, net	18,179		288,132		43,055		(92,591		)	256,775
Total non-current assets	2,841,398		3,057,198		407,098		(3,123,474		)	3,182,220
Total assets	$	4,634,438	$	3,863,923	$	606,452	$	(3,666,108	)	$	5,438,705
Liabilities and Shareholder's Equity
Current liabilities:
Trade accounts payable	$	—	$	87,132	$	19,207	$	—		$	106,339
Contract liabilities	—		93,741		5,525		—			99,266
Accrued expenses and other current liabilities	266,731		311,723		196,070		(542,634		)	231,890
Total current liabilities	266,731		492,596		220,802		(542,634		)	437,495
Non-current liabilities:
Long-term debt	2,390,218		—		—		—			2,390,218
Deferred tax liabilities, net	—		398,786		—		(17,565		)	381,221
Operating lease liabilities	—		86,603		18,854		—			105,457
Other non-current liabilities	—		63,401		100,221		(75,026		)	88,596
Total non-current liabilities	2,390,218		548,790		119,075		(92,591		)	2,965,492
Total liabilities	2,656,949		1,041,386		339,877		(635,225		)	3,402,987
Shareholder's equity:
Total Hughes Satellite Systems Corporation shareholder's equity	1,977,489		2,822,537		208,346		(3,030,883		)	1,977,489
Non-controlling interests	—		—		58,229		—			58,229
Total shareholder's equity	1,977,489		2,822,537		266,575		(3,030,883		)	2,035,718
Total liabilities and shareholder's equity	$	4,634,438	$	3,863,923	$	606,452	$	(3,666,108	)	$	5,438,705

Condensed Consolidating Balance Sheet as of December 31, 2019



	HSSC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	1,057,903	$	32,338	$	49,194	$	—		$	1,139,435
Marketable investment securities	652,594		241		—		—			652,835
Trade accounts receivable and contract assets, net	—		129,722		66,798		—			196,520
Other current assets	93,536		602,337		107,959		(502,180		)	301,652
Total current assets	1,804,033		764,638		223,951		(502,180		)	2,290,442
Non-current assets:
Property and equipment, net	—		1,459,151		398,430		—			1,857,581
Operating lease right-of-use assets	—		89,106		24,293		—			113,399
Goodwill	—		504,173		2,780		—			506,953
Regulatory authorizations, net	—		400,000		12,363		—			412,363
Other intangible assets, net	—		29,321		—		—			29,321
Other investments, net	—		110,040		—		—			110,040
Investment in subsidiaries	2,876,572		282,163		—		(3,158,735		)	—
Other non-current assets, net	10,672		772,193		42,557		(573,486		)	251,936
Total non-current assets	2,887,244		3,646,147		480,423		(3,732,221		)	3,281,593
Total assets	$	4,691,277	$	4,410,785	$	704,374	$	(4,234,401	)	$	5,572,035
Liabilities and Shareholder's Equity
Current liabilities:
Trade accounts payable	$	—	$	102,744	$	18,808	$	—		$	121,552
Contract liabilities	—		96,485		4,575		—			101,060
Accrued expenses and other current liabilities	243,694		314,583		202,320		(502,180		)	258,417
Total current liabilities	243,694		513,812		225,703		(502,180		)	481,029
Non-current liabilities:
Long-term debt	2,389,168		—		—		—			2,389,168
Deferred tax liabilities, net	—		390,288		—		(9,972		)	380,316
Operating lease liabilities	—		77,366		19,513		—			96,879
Other non-current liabilities	—		553,518		100,476		(563,514		)	90,480
Total non-current liabilities	2,389,168		1,021,172		119,989		(573,486		)	2,956,843
Total liabilities	2,632,862		1,534,984		345,692		(1,075,666		)	3,437,872
Shareholder's equity:
Total Hughes Satellite Systems Corporation shareholder's equity	2,058,415		2,875,801		282,934		(3,158,735		)	2,058,415
Non-controlling interests	—		—		75,748		—			75,748
Total shareholder's equity	2,058,415		2,875,801		358,682		(3,158,735		)	2,134,163
Total liabilities and shareholder's equity	$	4,691,277	$	4,410,785	$	704,374	$	(4,234,401	)	$	5,572,035

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2020



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue	$	—		$	354,399		$	64,928		$	(9,089	)	$	410,238
Equipment revenue	—			65,586			5,410			(13,687		)	57,309
Total revenue	—			419,985			70,338			(22,776		)	467,547
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	—			110,471			42,063			(8,649		)	143,885
Cost of sales - equipment (exclusive of depreciation and amortization)	—			55,374			4,221			(13,687		)	45,908
Selling, general and administrative expenses	—			95,818			20,482			(440		)	115,860
Research and development expenses	—			6,109			145			—			6,254
Depreciation and amortization	—			99,359			26,606			—			125,965
Total costs and expenses	—			367,131			93,517			(22,776		)	437,872
Operating income (loss)	—			52,854			(23,179		)	—			29,675
Other income (expense):
Interest income	7,953			971			891			(923		)	8,892
Interest expense, net of amounts capitalized	(40,472		)	(613		)	(2,030		)	923			(42,192		)
Gains (losses) on investments, net	—			(164		)	—			—			(164		)
Equity in earnings (losses) of unconsolidated affiliates, net	—			(1,087		)	—			—			(1,087		)
Equity in earnings (losses) of subsidiaries, net	10,630			(29,167		)	—			18,537			—
Foreign currency transaction gains (losses), net	—			(2		)	(7,526		)	—			(7,528		)
Other, net	—			(275		)	(3		)	—			(278		)
Total other income (expense), net	(21,889		)	(30,337		)	(8,668		)	18,537			(42,357		)
Income (loss) from continuing operations before income taxes	(21,889		)	22,517			(31,847		)	18,537			(12,682		)
Income tax benefit (provision), net	7,418			(11,804		)	(845		)	—			(5,231		)
Net income (loss)	(14,471		)	10,713			(32,692		)	18,537			(17,913		)
Less: Net loss (income) attributable to non-controlling interests	—			—			3,442			—			3,442
Net income (loss) attributable to Hughes Satellite Systems Corporation	$	(14,471	)	$	10,713		$	(29,250	)	$	18,537		$	(14,471	)
Comprehensive income (loss):
Net income (loss)	$	(14,471	)	$	10,713		$	(32,692	)	$	18,537		$	(17,913	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(82,836		)	—			(82,836		)
Unrealized gains (losses) on available-for-sale securities	(2,479		)	—			—			—			(2,479		)
Other	—			—			(405		)	—			(405		)
Equity in other comprehensive income (loss) of subsidiaries, net	(66,918		)	(66,918		)	—			133,836			—
Total other comprehensive income (loss), net of tax	(69,397		)	(66,918		)	(83,241		)	133,836			(85,720		)
Comprehensive income (loss)	(83,868		)	(56,205		)	(115,933		)	152,373			(103,633		)
Less: Comprehensive loss (income) attributable to non-controlling interests	—			—			19,765			—			19,765
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	$	(83,868	)	$	(56,205	)	$	(96,168	)	$	152,373		$	(83,868	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2019



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue	$	—		$	352,591		$	59,696		$	(8,802	)	$	403,485
Equipment revenue	—			52,649			9,415			(10,350		)	51,714
Total revenue	—			405,240			69,111			(19,152		)	455,199
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	—			110,862			39,333			(8,109		)	142,086
Cost of sales - equipment (exclusive of depreciation and amortization)	—			48,499			6,858			(10,350		)	45,007
Selling, general and administrative expenses	—			86,465			16,565			(693		)	102,337
Research and development expenses	—			6,743			145			—			6,888
Depreciation and amortization	—			96,704			15,707			—			112,411
Total costs and expenses	—			349,273			78,608			(19,152		)	408,729
Operating income (loss)	—			55,967			(9,497		)	—			46,470
Other income (expense):
Interest income	17,409			926			559			(897		)	17,997
Interest expense, net of amounts capitalized	(56,361		)	(1,134		)	(1,317		)	897			(57,915		)
Gains (losses) on investments, net	—			(346		)	—			—			(346		)
Equity in earnings (losses) of unconsolidated affiliates, net	—			(1,072		)	—			—			(1,072		)
Equity in earnings (losses) of subsidiaries, net	52,199			(8,788		)	—			(43,411		)	—
Foreign currency transaction gains (losses), net	—			(19		)	230			—			211
Other, net	309			(398		)	(76		)	—			(165		)
Total other income (expense), net	13,556			(10,831		)	(604		)	(43,411		)	(41,290		)
Income (loss) from continuing operations before income taxes	13,556			45,136			(10,101		)	(43,411		)	5,180
Income tax benefit (provision), net	8,670			(15,568		)	2,026			—			(4,872		)
Net income (loss) from continuing operations	22,226			29,568			(8,075		)	(43,411		)	308
Net income (loss) from discontinued operations	—			22,724			—			—			22,724
Net income (loss)	22,226			52,292			(8,075		)	(43,411		)	23,032
Less: Net loss (income) attributable to non-controlling interests	—			—			(806		)	—			(806		)
Net income (loss) attributable to Hughes Satellite Systems Corporation	$	22,226		$	52,292		$	(8,881	)	$	(43,411	)	$	22,226
Comprehensive income (loss):
Net income (loss)	$	22,226		$	52,292		$	(8,075	)	$	(43,411	)	$	23,032
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(838		)	—			(838		)
Unrealized gains (losses) on available-for-sale securities	2,353			—			—			—			2,353
Other	—			—			33			—			33
Equity in other comprehensive income (loss) of subsidiaries, net	(805		)	(805		)	—			1,610			—
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale securities	(385		)	—			—			—			(385		)
Total other comprehensive income (loss), net of tax	1,163			(805		)	(805		)	1,610			1,163
Comprehensive income (loss)	23,389			51,487			(8,880		)	(41,801		)	24,195
Less: Comprehensive loss (income) attributable to non-controlling interests	—			—			(806		)	—			(806		)
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	$	23,389		$	51,487		$	(9,686	)	$	(41,801	)	$	23,389

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2020



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	(14,471	)	$	10,713		$	(32,692	)	$	18,537		$	(17,913	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(22,215		)	95,031			28,858			(18,537		)	83,137
Net cash flows from operating activities	(36,686		)	105,744			(3,834		)	—			65,224

Cash flows from investing activities:
Purchases of marketable investment securities	(365,877		)	—			—			—			(365,877		)
Sales and maturities of marketable investment securities	490,020			—			—			—			490,020
Expenditures for property and equipment	—			(61,134		)	(30,383		)	—			(91,517		)
Expenditures for externally marketed software	—			(8,638		)	—			—			(8,638		)
Distributions (contributions) and advances from (to) subsidiaries, net	29,290			(18,939		)	—			(10,351		)	—
Net cash flows from investing activities	153,433			(88,711		)	(30,383		)	(10,351		)	23,988

Cash flows from financing activities:
Payment of finance lease obligations	—			—			(215		)	—			(215		)
Payment of in-orbit incentive obligations	—			(203		)	—			—			(203		)
Contribution by non-controlling interest holder	—			—			4,000			—			4,000
Other, net	—			—			979			—			979
Contributions (distributions) and advances (to) from parent, net	—			(29,290		)	18,939			10,351			—
Net cash flows from financing activities	—			(29,493		)	23,703			10,351			4,561

Effect of exchange rates on cash and cash equivalents	—			—			(4,618		)	—			(4,618		)
Net increase (decrease) in cash and cash equivalents	116,747			(12,460		)	(15,132		)	—			89,155
Cash and cash equivalents, including restricted amounts, beginning of period	1,057,903			32,338			50,081			—			1,140,322
Cash and cash equivalents, including restricted amounts, end of period	$	1,174,650		$	19,878		$	34,949		$	—		$	1,229,477

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2019



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	22,226		$	52,292		$	(8,075	)	$	(43,411	)	$	23,032
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(48,467		)	163,032			(10,043		)	43,411			147,933
Net cash flows from operating activities	(26,241		)	215,324			(18,118		)	—			170,965

Cash flows from investing activities:
Purchases of marketable investment securities	(240,188		)	—			—			—			(240,188		)
Sales and maturities of marketable investment securities	468,748			(3		)	—			—			468,745
Expenditures for property and equipment	—			(54,207		)	(19,722		)	—			(73,929		)
Expenditures for externally marketed software	—			(7,600		)	—			—			(7,600		)
Distributions (contributions) and advances from (to) subsidiaries, net	111,020			(32,949		)	—			(78,071		)	—
Net cash flows from investing activities	339,580			(94,759		)	(19,722		)	(78,071		)	147,028

Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes	(8,046		)	—			—			—			(8,046		)
Payment of finance lease obligations	—			(9,597		)	(285		)	—			(9,882		)
Payment of in-orbit incentive obligations	—			(1,573		)	—			—			(1,573		)
Purchase of non-controlling interest	(7,312		)	—			—			—			(7,312		)
Contributions (distributions) and advances (to) from parent, net	—			(111,020		)	32,949			78,071			—
Net cash flows from financing activities	(15,358		)	(122,190		)	32,664			78,071			(26,813		)

Effect of exchange rates on cash and cash equivalents	—			—			(117		)	—			(117		)
Net increase (decrease) in cash and cash equivalents	297,981			(1,625		)	(5,293		)	—			291,063
Cash and cash equivalents, including restricted amounts, beginning of period	771,718			46,353			30,548			—			848,619
Cash and cash equivalents, including restricted amounts, end of period	$	1,069,699		$	44,728		$	25,255		$	—		$	1,139,682

Regulatory Authorizations (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite lived and indefinite lived intangible assets by major class

The following table presents the components of our Regulatory authorizations, net:



	Finite lived
	Cost			Accumulated Amortization			Total			Indefinite lived		Total
Balance, December 31, 2018	$	—		$	—		$	—		$	400,043	$	400,043
Balance, March 31, 2019	$	—		$	—		$	—		$	400,043	$	400,043

Balance, December 31, 2019	$	12,524		$	(161	)	$	12,363		$	400,000	$	412,363
Amortization expense	—			(100		)	(100		)	—		(100		)
Foreign currency translation	(1,020		)	—			(1,020		)	—		(1,020		)
Balance, March 31, 2020	$	11,504		$	(261	)	$	11,243		$	400,000	$	411,243

Weighted average useful life				14 years

Long-Term Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

LONG-TERM DEBT

The following table presents the carrying amounts and fair values of our Long-term debt:



	Effective interest rates	As of
		March 31, 2020					December 31, 2019
		Carrying Amount			Fair Value		Carrying Amount			Fair Value
Senior Secured Notes:
5 1/4% Senior Secured Notes due 2026	5.320%	$	750,000		$	748,133	$	750,000		$	825,308
Senior Unsecured Notes:
7 5/8% Senior Unsecured Notes due 2021	8.062%	900,000			922,527		900,000			963,783
6 5/8% Senior Unsecured Notes due 2026	6.688%	750,000			770,715		750,000			833,903
Less: Unamortized debt issuance costs		(9,782		)			(10,832		)
Total long-term debt		$	2,390,218		$	2,441,375	$	2,389,168		$	2,622,994

No amounts on our long-term debt are due during the next twelve months.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

These Condensed Consolidated Financial Statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they 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. However, our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

All amounts presented in these Condensed Consolidated Financial Statements are expressed in thousands of U.S. dollars, except share and per share amounts and unless otherwise noted.

Use of Estimates

We are required to make certain estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements. The most significant estimates and assumptions are used in determining: (i) inputs used to recognize revenue over time, including amortization periods for deferred contract acquisition costs; (ii) allowances for doubtful accounts; (iii) deferred taxes and related valuation allowances, including uncertain tax positions; (iv) loss contingencies; (v) fair value of financial instruments; (vi) fair value of assets and liabilities acquired in business combinations; and (vii) asset impairment testing.

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 consolidated financial statements. Additionally, changing economic and other 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 estimates or assumptions affect future periods.

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 in which we are the primary beneficiary and in other entities in which 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 non-controlling interest within shareholder’s equity for the portion of the entity’s equity attributed to the non-controlling 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.

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

Credit Losses

On January 1, 2020, we adopted Accounting Standards Update (“ASU”) No. 2016-13 - Financial Instruments - Credit Losses (Topic 326), as amended, and codified in Accounting Standards Codification Topic 326 (“ASC 326”). ASC 326 introduces a new approach to the periodic estimation of credit losses for certain financial assets based on expected losses instead of incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets that have experienced credit deterioration since their original purchase. We have elected to apply the requirements of the new standard prospectively and we recognized a cumulative effect of adoption of $2.2 million to Accumulated earnings (losses) as of January 1, 2020. Based on this election, we did not restate our comparative Condensed Consolidated Financial Statements and they continue to be reported under the accounting standards in effect for the periods before January 1, 2020.

The following describes the accounting impacts, by major balance sheet line item, of our adoption of this new standard based on the relevant types of losses that we and our equity method investees may be subject to:

•

Trade Accounts Receivable and Contract Assets, Net — Our trade accounts receivables and contract assets consist of amounts due from both our consumer and enterprise customers. Our receivables and related credit losses for our consumer customers are limited due to policies that require advance payment for services, predominant use of credit card and ACH payment processes, and our ability to promptly terminate service when timely payments are not received. However, for our enterprise customers, we estimate expected credit losses on a collective basis based on our historical loss experience, as adjusted to reflect changes in relevant factors, such as macroeconomic conditions and customer mix, that can significantly impact collectability.

We apply our collective estimation processes separately to several pools of receivables that share common risk characteristics, generally based on the customers’ geographical location. Customers with significant past-due balances or other atypical characteristics are excluded from our collective analysis and evaluated on a case-by-case basis. Our estimates of expected credit losses for such receivables reflect significant judgments that consider customer-specific matters such as the customer’s financial condition, payment history, and recent developments in the customer’s business and industry. Due to the short-term nature of our trade receivables and contract assets, forecasts about the future have limited relevance to our expected credit loss estimates.

We record our customer related estimated credit losses as a component of our bad debt expense as reported in Selling, general and administrative expenses.

•

Other Current Assets, Net, and Other Non-current Assets, Net — We estimate expected credit losses for receivables with payment terms longer than one year separately by borrower, due to the unique risk characteristics of such receivables. We generally use discounted cash flow techniques to estimate such credit losses. In applying such techniques, we may estimate principal and interest cash flows under probability-weighted scenarios that consider entity-specific matters and forecasted economic conditions. The majority of our other non-current receivables are from entities in the telecommunications industry. The collection of contractual principal and interest on these receivables is highly dependent on the future business operations of those entities. Our estimation of expected credit losses for such receivables requires significant judgment about matters specific to the borrower and their industry. Accordingly, our actual collection experience may differ from the assumptions reflected in our expected credit loss estimates.

We record our estimated credit losses as a component of our bad debt expense as reported in Selling, general and administrative expenses.

Financial Impact of Adoption. Our adoption of this new standard resulted in the following adjustments to our Condensed Consolidated Balance Sheet:



	Balance at December 31, 2019		Adoption of ASC 326 Increase (Decrease)			Balance at January 1, 2020
Trade accounts receivable and contract assets, net	$	196,520	$	(13,672	)	$	182,848
Other current assets, net	$	301,652	$	6,723		$	308,375
Other non-current assets, net	$	251,936	$	4,050		$	255,986
Total assets	$	5,572,035	$	(2,899	)	$	5,569,136
Deferred tax liabilities, net	$	380,316	$	(490	)	$	379,826
Accumulated earnings (losses)	$	664,415	$	(2,169	)	$	662,246
Non-controlling interests	$	75,748	$	(240	)	$	75,508
Total shareholder's equity	$	2,134,163	$	(2,409	)	$	2,131,754
Total liabilities and shareholder's equity	$	5,572,035	$	(2,899	)	$	5,569,136

The application of ASC 326 requirements did not materially affect our Condensed Consolidated Statements of Operations for the three months ended March 31, 2020.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is part of the FASB’s overall simplification initiative and seeks to simplify the accounting for income taxes by updating certain guidance and removing certain exceptions. The updated guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact of adopting this new guidance.

In March 2020, the FASB issued ASU No. 2020-04 - Reference Rate Reform (Topic 848), codified as ASC 848 (“ASC 848”). The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates (“IBORs”) to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, and other transactions that reference a reference rate expected to be discontinued because of reference rate reform. The guidance may be applied upon issuance of ASC 848 through December 31, 2022. We are currently assessing the impact of adopting this new guidance, but do not expect it to have a material impact on our consolidated financial statements.

Other Investments

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

OTHER INVESTMENTS

The following table presents the components of Other investments, net:



	As of
	March 31, 2020		December 31, 2019
Other investments, net:
Equity method investments	$	101,601	$	102,689
Other equity investments	7,351		7,351
Total other investments, net	$	108,952	$	110,040

Equity Method Investments

Deluxe/EchoStar LLC

We own 50% 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 recognized revenue from Deluxe for transponder services and the sale of broadband equipment of $1.3 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, we had trade accounts receivable from Deluxe of $1.0 million and $0.6 million, respectively.

Broadband Connectivity Solutions (Restricted) Limited

In August 2018, we entered into an agreement with Yahsat to establish a new entity, Broadband Connectivity Solutions (Restricted) Limited (together with its subsidiaries, “BCS”), to provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia operating over Yahsat’s Al Yah 2 and Al Yah 3 Ka-band satellites. The transaction was consummated in December 2018 when we invested $100.0 million in cash in exchange for a 20%

interest in BCS. Under the terms of the agreement, we may also acquire, for further cash investments, additional ownership interests in BCS in the future provided certain conditions are met. We supply network operations and management services and equipment to BCS. We recognized revenue from BCS for such services and equipment of $1.7 million and $2.3 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, we had trade accounts receivable from BCS of $4.5 million and $5.2 million, respectively.

Other Equity Investments

During the three months ended March 31, 2020 and 2019, we did not identify any observable price changes requiring an adjustment to our investments.

Related Party Transactions - DISH Network (Notes)

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS - ECHOSTAR

Services and Other Revenue - EchoStar

The following table presents our Services and other revenue from EchoStar:



	For the three months ended March 31,
	2020		2019
Services and other revenue - EchoStar	$	4,699	$	4,474

The following table presents the corresponding related party receivables:



	As of
	March 31, 2020		December 31, 2019
Related party receivables - EchoStar - current	$	131,948	$	131,892
Related party receivables - EchoStar - non-current	19,412		19,759
Total related party receivables - EchoStar	$	151,360	$	151,651

Operating Expenses - EchoStar

The following table presents our operating expenses related to EchoStar:



	For the three months ended March 31,
	2020		2019
Operating expenses - EchoStar	$	12,642	$	13,306

The following table presents the corresponding related party payables:



	As of
	March 31, 2020		December 31, 2019
Related party payables - EchoStar - current	$	13,793	$	11,132
Related party payables - EchoStar - non-current	23,748		23,980
Total related party payables - EchoStar	$	37,541	$	35,112

Other Agreements

RELATED PARTY TRANSACTIONS - DISH NETWORK

Overview

Services and Other Revenue — DISH Network

The following table presents our Services and other revenue from DISH Network:



	For the three months ended March 31,
	2020		2019
Services and other revenue - DISH Network	$	7,587	$	11,545

The following table presents the related trade accounts receivable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts receivable - DISH Network	$	9,955	$	8,876


•	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.

•

Operating Expenses — DISH Network

The following table presents our operating expenses related to DISH Network:



	For the three months ended March 31,
	2020		2019
Operating expenses - DISH Network	$	1,137	$	714

The following table presents the related trade accounts payable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts payable - DISH Network	$	610	$	502

Other Receivables - DISH Network

Other Agreements

NOTE 16. RELATED PARTY TRANSACTIONS - OTHER

Hughes Systique Corporation

TerreStar Solutions, Inc.

Global-IP Cayman

Maxar Technologies Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 467,547	$ 455,199
Costs and expenses:
Selling, general and administrative expenses	115,860	102,337
Research and development expenses	6,254	6,888
Depreciation and amortization	125,965	112,411
Total costs and expenses	437,872	408,729
Operating income (loss)	29,675	46,470
Other income (expense):
Interest income, net	8,892	17,997
Interest expense, net of amounts capitalized	(42,192)	(57,915)
Gains (losses) on investments, net	(164)	(346)
Equity in earnings (losses) of unconsolidated affiliates, net	(1,087)	(1,072)
Foreign currency transaction gains (losses), net	(7,528)	211
Other, net	(278)	(165)
Total other income (expense), net	(42,357)	(41,290)
Income (loss) from continuing operations before income taxes	(12,682)	5,180
Income tax benefit (provision), net	(5,231)	(4,872)
Net income (loss) from continuing operations	(17,913)	308
Net income (loss) from discontinued operations	0	22,724
Net income (loss)	(17,913)	23,032
Less: Net loss (income) attributable to non-controlling interests	3,442	(806)
Net income (loss) attributable to Hughes Satellite Systems Corporation	(14,471)	22,226
Services and other revenue
Revenue:
Total revenue	410,238	403,485
Costs and expenses:
Cost of sales - (exclusive of depreciation and amortization)	143,885	142,086
Equipment revenue
Revenue:
Total revenue	57,309	51,714
Costs and expenses:
Cost of sales - (exclusive of depreciation and amortization)	$ 45,908	$ 45,007

Marketable Investment Securities - Schedule of Marketable Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale:
Total debt securities	$ 524,864	$ 652,594
Equity securities	77	241
Total marketable investment securities	524,941	652,835
Corporate bonds
Available-for-sale:
Total debt securities	319,295	411,706
Other debt securities
Available-for-sale:
Total debt securities	$ 205,569	$ 240,888

Contingencies (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Contingencies (Details) - USD ($) $ in Millions	Dec. 31, 2019	Mar. 31, 2020
License Fee Dispute
Other Commitments [Line Items]
Written assessments		$ 28.4
Loss contingency payments		2.9
License Fee Dispute \| Additional license fee
Other Commitments [Line Items]
Written assessments		4.0
License Fee Dispute \| Penalties
Other Commitments [Line Items]
Written assessments		4.1
License Fee Dispute \| Interest and interest on penalties
Other Commitments [Line Items]
Written assessments		20.3
Hughes Network Systems \| Elbit
Other Commitments [Line Items]
Awarded to other party	$ 33.0
Hughes Network Systems \| License Fee Dispute
Other Commitments [Line Items]
Loss contingency accrual	$ 80.2	77.1
Hughes Network Systems \| License Fee Dispute \| Additional license fee
Other Commitments [Line Items]
Loss contingency accrual		3.8
Hughes Network Systems \| License Fee Dispute \| Penalties
Other Commitments [Line Items]
Loss contingency accrual		3.9
Hughes Network Systems \| License Fee Dispute \| Interest and interest on penalties
Other Commitments [Line Items]
Loss contingency accrual		$ 69.4

Regulatory Authorizations (Details) $ in Millions	1 Months Ended
Regulatory Authorizations (Details) $ in Millions	Nov. 30, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets gross, additions	$ 7.9
Useful life	11 years
Finite-lived intangible assets acquired	$ 4.5
Licensing agreements
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	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 tripled. 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 parties 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 parties 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. Certain Arrangements with DISH Network In connection with EchoStar’s spin-off from DISH in 2008 (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 EchoStar will generally only be liable for its and its subsidiaries’ acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off as well as DISH Network’s acts or omissions following the Spin-off. In connection with the Share Exchange and the BSS Transaction, EchoStar and certain of its and our subsidiaries entered into the Share Exchange Agreement and the Master Transaction Agreement, respectively, 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, in the case of the Share Exchange, certain pre-existing liabilities and legal proceedings and, in the case of the BSS Transaction, certain losses with respect to breaches of certain representations and covenants and certain liabilities. Litigation We are involved in a number of legal proceedings against us 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 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 legal proceedings are charged to expense as incurred. For certain proceedings, 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, motions or other proceedings; (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, tribunal, other body 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”). In December 2019, we entered into a comprehensive settlement agreement with Elbit pursuant to which we paid a total of $33.0 million in satisfaction of all amounts relating to these matters and all open proceedings, including appeals, were dismissed with prejudice. Shareholder Litigation On July 2, 2019, the City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust, purporting to sue on behalf of a class of EchoStar’s stockholders, filed a complaint in the District Court of Clark County, Nevada against EchoStar’s directors, Charles W. Ergen, R. Stanton Dodge, Anthony M. Federico, Pradman P. Kaul, C. Michael Schroeder, Jeffrey R. Tarr, William D. Wade, and Michael T. Dugan; our and EchoStar’s officer, David J. Rayner; EchoStar; Hughes Satellite Systems Corporation; our former subsidiary BSS Corp.; and DISH and its subsidiary Merger Sub. On September 5, 2019, the defendants filed motions to dismiss. On October 11, 2019, the plaintiffs filed an amended complaint removing Messrs. Dodge, Federico, Kaul, Schroeder, Tarr and Wade as defendants. The amended complaint alleges that Mr. Ergen, as EchoStar’s controlling stockholder, breached fiduciary duties to EchoStar’s minority stockholders by structuring the BSS Transaction with inadequate consideration and improperly influencing EchoStar’s and Hughes Satellite Systems Corporation’s boards of directors to approve the BSS Transaction. The amended complaint also alleges that the other defendants aided and abetted such alleged breaches. The plaintiffs seek equitable and monetary relief, including the issuance of additional DISH Common Stock, and other costs and disbursements, including attorneys’ fees on behalf of the purported class. On November 11, 2019, we and the other defendants filed separate motions to dismiss plaintiff’s amended complaint and during a hearing on January 13, 2020 the court denied these motions. On February 10, 2020, we and the other defendants filed answers to the amended complaint. We intend to vigorously defend this case. We cannot predict its outcome with any degree of certainty. License Fee Dispute with Government of India, Department of Telecommunications In 1994, the Government of India promulgated a “National Telecommunications Policy” under which the government liberalized the telecommunications sector and required telecommunications service providers to pay fixed license fees. Pursuant to this policy, our subsidiary Hughes Communications India Private Limited (“HCIPL”), formerly known as Hughes Escorts Communications Limited, obtained a license to operate a data network over satellite using VSAT systems. In 1999, HCIPL’s license was amended pursuant to a new government policy that eliminated the fixed license fees and instead required each telecommunications service provider to pay license fees based on its adjusted gross revenue (“AGR”). In March 2005, the Indian Department of Telecommunications (“DOT”) notified HCIPL that, based on its review of HCIPL’s audited accounts and AGR statements, HCIPL must pay additional license fees, interest on such fees and penalties and interest on the penalties. HCIPL responded that the DOT had improperly calculated its AGR by including revenue from licensed and unlicensed activities. The DOT rejected this explanation and in 2006, HCIPL filed a petition with an administrative tribunal (the “Tribunal”), challenging the DOT’s calculation of its AGR. The DOT also issued license fee assessments to other telecommunications service providers and a number of similar petitions were filed by several other such providers with the Tribunal. These petitions were amended, consolidated, remanded and re-appealed several times. On April 23, 2015, the Tribunal issued a judgment affirming the DOT’s calculation of AGR for the telecommunications service providers but reversing the DOT’s imposition of interest, penalties and interest on such penalties as excessive. Over subsequent years, the DOT and HCIPL and other telecommunications service providers, respectively, filed several appeals of the Tribunal’s ruling. On October 24, 2019, the Supreme Court of India (“Supreme Court”) issued an order (the “Order”) affirming the license fee assessments imposed by the DOT, including its imposition of interest, penalties and interest on the penalties, but without indicating the amount HCPIL is required to pay the DOT, and ordering payment by January 23, 2020. On November 23, 2019, HCIPL and other telecommunication service providers filed a petition asking the Supreme Court to reconsider its decision. The petition was denied on January 20, 2020. On January 22, 2020, HCIPL and other telecommunication service providers filed an application requesting that the Supreme Court modify the Order to permit the DOT to calculate the final amount due and extend HCPIL’s and the other telecommunication service providers’ payment deadline. On February 14, 2020, the Supreme Court denied this application and directed us and the other telecommunication service providers to explain why the Supreme Court should not initiate contempt proceedings for failure to pay the amounts due. During a hearing on March 18, 2020, the Supreme Court ordered that all amounts that were due before the Supreme Court in October 2019 must be paid, including interest, penalties and interest on the penalties. The Supreme Court also ordered that the parties appear for a further hearing addressing, potentially among other things, a proposal by the DOT to allow for extended or deferred payments of amounts due. This hearing was postponed due to the COVID-19 pandemic and not yet rescheduled. To date, the DOT has issued HCIPL written assessments totaling $28.4 million, comprised of $4.0 million for additional license fees, $4.1 million for penalties and $20.3 million for interest and interest on penalties. In the first quarter of 2020, HCIPL paid the DOT $2.9 million with respect to this matter. As a result of the Supreme Court’s orders in this matter, HCIPL’s payments to date and the impact of foreign exchange rates, and using the DOT’s methodology as reflected in the assessments HCIPL has received as of the date of the Order, we have recorded an accrual of $77.1 million as of March 31, 2020, comprised of $3.8 million for additional license fees, $3.9 million for penalties and $69.4 million for interest and interest on penalties. We had recorded an accrual of $80.2 million as of December 31, 2019. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accrual and such differences could be significant. 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, we are 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 we 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, we from time to time receive 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. We also indemnify our directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for us. Additionally, in the normal course of its business, we enter into contracts pursuant to which we may make a variety of representations and warranties and indemnify the counterparty for certain losses. Our 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 us or our officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable.

Marketable Investment Securities - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities with contractual maturities of one year of less	$ 491.9
Available-for-sale securities with contractual maturity of greater than one year	$ 33.0

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Contract with Customer, Asset and Liability

The following table presents the components of our contract balances:



	As of
	March 31, 2020			December 31, 2019
Trade accounts receivable and contract assets, net:
Sales and services	$	147,288		$	152,632
Leasing	4,194			4,016
Total trade accounts receivable	151,482			156,648
Contract assets	46,938			63,649
Allowance for doubtful accounts	(10,608		)	(23,777		)
Total trade accounts receivable and contract assets, net	$	187,812		$	196,520

Contract liabilities:
Current	$	99,266		$	101,060
Non-current	9,426			10,572
Total contract liabilities	$	108,692		$	111,632

Contract Acquisition Costs

The following table presents our unamortized contract acquisition costs:



	As of
	March 31, 2020		December 31, 2019
Unamortized contract acquisition costs	$	110,397	$	113,592

The following table presents the amortization of our contract acquisition costs:



	For the three months ended March 31,
	2020		2019
Amortization expense	$	25,431	$	21,115

Schedule of Allowance for Doubtful Accounts Activity

The following table presents the activity in our allowance for doubtful accounts:



	Balance at Beginning of Period		Credit Losses ⁽¹⁾			Deductions			Foreign Currency Translation			Balance at End of Period
For the three months ended:
March 31, 2020	$	23,777	$	(5,754	)	$	(6,325	)	$	(1,090	)	$	10,608
March 31, 2019	$	16,604	$	4,177		$	(6,738	)	$	(15	)	$	14,028



	Balance at Beginning of Period		Credit Losses ⁽¹⁾		Deductions		Foreign Currency Translation			Balance at End of Period
For the three months ended March 31, 2020
Other current assets, net	$	—	$	1,595	$	—	$	—		$	1,595
Other non-current assets, net	$	—	$	13,379	$	—	$	(358	)	$	13,021

Schedule of Disaggregation of Revenue

The following table presents our revenue from customer contracts disaggregated by primary geographic market and by segment:



	Hughes		ESS		Corporate and Other			Consolidated Total
For the three months ended March 31, 2020
North America	$	382,715	$	4,652	$	(285	)	$	387,082
South and Central America	33,956		—		—			33,956
Other	41,811		—		4,698			46,509
Total revenue	$	458,482	$	4,652	$	4,413		$	467,547

For the three months ended March 31, 2019
North America	$	367,829	$	4,033	$	1,005		$	372,867
South and Central America	26,863		—		—			26,863
Other	50,645		—		4,824			55,469
Total revenue	$	445,337	$	4,033	$	5,829		$	455,199

The following table presents our revenue disaggregated by the nature of products and services and by segment:



	Hughes		ESS		Corporate and Other		Consolidated Total
For the three months ended March 31, 2020
Services and other revenue:
Services	$	390,000	$	2,765	$	—	$	392,765
Lease revenue	11,173		1,887		4,413		17,473
Total services and other revenue	401,173		4,652		4,413		410,238
Equipment revenue:
Equipment	24,839		—		—		24,839
Design, development and construction services	31,557		—		—		31,557
Lease revenue	913		—		—		913
Total equipment revenue	57,309		—		—		57,309
Total revenue	$	458,482	$	4,652	$	4,413	$	467,547

For the three months ended March 31, 2019
Services and other revenue:
Services	$	380,783	$	2,817	$	322	$	383,922
Lease revenue	12,840		1,216		5,507		19,563
Total services and other revenue	393,623		4,033		5,829		403,485
Equipment revenue:
Equipment	25,960		—		—		25,960
Design, development and construction services	25,066		—		—		25,066
Lease revenue	688		—		—		688
Total equipment revenue	51,714		—		—		51,714
Total revenue	$	445,337	$	4,033	$	5,829	$	455,199

Schedule of Operating Lease Revenue

The following table presents our lease revenue by type of lease:



	For the three months ended March 31,
	2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	913	$	688
Interest income	69		252
Total sales-type lease revenue	982		940
Operating lease revenue	17,404		19,311
Total lease revenue	$	18,386	$	20,251

Schedule of Sales-type Lease Revenue

The following table presents our lease revenue by type of lease:



	For the three months ended March 31,
	2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	913	$	688
Interest income	69		252
Total sales-type lease revenue	982		940
Operating lease revenue	17,404		19,311
Total lease revenue	$	18,386	$	20,251

Schedule of Operating Lease Payments to be Received

The following table presents future operating lease payments to be received as of March 31, 2020:



	Amounts
Year ending December 31,
2020 (remainder)	$	27,691
2021	34,910
2022	32,052
2023	30,285
2024	28,219
2025 and beyond	123,520
Total lease payments	$	276,677

Schedule of Property and Equipment Subject To Operating Leases

The following table presents amounts for assets subject to operating leases, which are included in Property and equipment, net:



	As of
	March 31, 2020							December 31, 2019
	Cost		Accumulated Depreciation			Net		Cost		Accumulated Depreciation			Net
Customer premises equipment	$	1,488,031	$	(1,123,861	)	$	364,170	$	1,458,298	$	(1,074,968	)	$	383,330
Satellites	104,620		(33,104		)	71,516		104,620		(31,360		)	73,260
Total	$	1,592,651	$	(1,156,965	)	$	435,686	$	1,562,918	$	(1,106,328	)	$	456,590

The following table presents depreciation expense for assets subject to operating leases, which is included in Depreciation and amortization:



	For the three months ended March 31,
	2020		2019
Customer premises equipment	$	49,504	$	49,712
Satellites	1,744		1,737
Real estate	—		217
Total	$	51,248	$	51,666

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

All amounts presented in these Condensed Consolidated Financial Statements are expressed in thousands of U.S. dollars, except share and per share amounts and unless otherwise noted.

Refer to Note 2. Summary of Significant Accounting Policies to the consolidated financial statements in our Form 10-K for a summary and discussion of our significant accounting policies, except as updated below.

Use of Estimates

Principles of Consolidation

Reclassification

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

Recently Adopted Accounting Pronouncements

Credit Losses

•

We record our customer related estimated credit losses as a component of our bad debt expense as reported in Selling, general and administrative expenses.

•

We record our estimated credit losses as a component of our bad debt expense as reported in Selling, general and administrative expenses.

Financial Impact of Adoption. Our adoption of this new standard resulted in the following adjustments to our Condensed Consolidated Balance Sheet:



	Balance at December 31, 2019		Adoption of ASC 326 Increase (Decrease)			Balance at January 1, 2020
Trade accounts receivable and contract assets, net	$	196,520	$	(13,672	)	$	182,848
Other current assets, net	$	301,652	$	6,723		$	308,375
Other non-current assets, net	$	251,936	$	4,050		$	255,986
Total assets	$	5,572,035	$	(2,899	)	$	5,569,136
Deferred tax liabilities, net	$	380,316	$	(490	)	$	379,826
Accumulated earnings (losses)	$	664,415	$	(2,169	)	$	662,246
Non-controlling interests	$	75,748	$	(240	)	$	75,508
Total shareholder's equity	$	2,134,163	$	(2,409	)	$	2,131,754
Total liabilities and shareholder's equity	$	5,572,035	$	(2,899	)	$	5,569,136

The application of ASC 326 requirements did not materially affect our Condensed Consolidated Statements of Operations for the three months ended March 31, 2020.

Recently Issued Accounting Pronouncements Not Yet Adopted

Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATION

DISCONTINUED OPERATIONS

BSS Business

The following table presents the financial results of our discontinued operations for the BSS Business for the three months ended March 31, 2019:



	Amounts
Revenue:
Services and other revenue - DISH Network	$	70,826
Services and other revenue - other	6,400
Total revenue	77,226
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	10,217
Selling, general and administrative expenses	20
Depreciation and amortization	31,119
Total costs and expenses	41,356
Operating income (loss)	35,870
Other income (expense):
Interest expense	(6,498		)
Total other income (expense), net	(6,498		)
Income (loss) from discontinued operations before income taxes	29,372
Income tax benefit (provision), net	(6,648		)
Net income (loss) from discontinued operations	$	22,724

No assets or liabilities attributable to our discontinued operations of the BSS Business were held by us as of March 31, 2020 or December 31, 2019.

The following table presents the significant supplemental cash flow information and adjustments to reconcile net income to net cash flow from operating activities for discontinued operations of the BSS Business for the three months ended March 31, 2019:



	Amounts
Operating activities:
Net income (loss) from discontinued operations	$	22,724
Depreciation and amortization	$	31,119

Investing activities:
Expenditures for property and equipment	$	108

Financing activities:
Payment of finance lease obligations	$	9,597
Payment of in-orbit incentive obligations	$	1,035

Terminated or Transferred Related Party Agreements

Effective September 10, 2019, the following agreements were terminated or transferred to DISH Network as part of the BSS Transaction. Unless noted differently below, we have no further obligations and have neither earned additional revenue nor incurred additional expense, as applicable, under or in connection with these agreements after the consummation of the BSS Transaction.

DBS Transponder Lease. EchoStar leased satellite capacity from us on eight direct broadcast satellite (“DBS”) transponders on the QuetzSat-1 satellite through November 2021, after which EchoStar had certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite.

EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXIII satellite through the UK Space Agency, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXIII satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we were required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in the Condensed Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII satellite was successfully launched in March 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $62.0 million, representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC.

Satellite Capacity Leased to DISH Network. We entered into certain agreements to lease satellite capacity pursuant to which we provided satellite services to DISH Network on certain satellites, as listed below, owned or leased by us. The fees for the services provided under these agreements depended, among other things, upon the orbital location of the applicable satellite, the number of transponders that provided services on the applicable satellite and the length of the service arrangements. The terms of each of the agreements are set forth below:


•	EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV — In March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII satellite, the EchoStar X satellite, the EchoStar XI satellite and the EchoStar XIV satellite.

•EchoStar XII — DISH Network leased satellite capacity from us on the EchoStar XII satellite.


•	EchoStar XVI — In December 2009, we entered into an agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network leased satellite capacity from us on the EchoStar XVI satellite beginning in January 2013.

•

Nimiq 5 Agreement — In September 2009, we entered into an 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 entered into an agreement with DISH Network, pursuant to which DISH Network leased 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 made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. Following the consummation of the BSS Transaction, we retained certain obligations related to DISH Network’s performance under the Telesat Transponder Agreement.

•

QuetzSat-1 Agreement — In November 2008, we entered into an agreement to lease satellite capacity from SES Latin America, which provided, 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 leased 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 January 2013, the QuetzSat-1

satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we leased back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite.

TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network, which we subsequently amended (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement were calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which varied depending on the nature of the services provided.

Real Estate Lease. During 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 whereby EchoStar and certain of its and our subsidiaries received all the shares of preferred tracking stock previously issued by EchoStar and Hughes Satellite Systems Corporation (the “Tracking Stock”) in exchange for 100% of the equity interests of certain of EchoStar’s subsidiaries that held substantially all of the former EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). Prior to the Share Exchange, a subsidiary of 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 and DISH Network amended this agreement to, among other things, provide for a continued lease to DISH Network of the portion of the property we retained (the “Cheyenne Data Center”). The rent on a per square foot basis for the lease was comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease or subsequent amendments, and DISH Network was responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. In connection with the BSS Transaction, we transferred the Cheyenne Data Center to DISH Network. This lease does not qualify for discontinued operations treatment, and therefore the revenue from it has not been treated as discontinued operations.

Marketable Investment Securities - Schedule of Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 524,864	$ 652,594
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	321,466	411,312
Unrealized Gains	0	395
Unrealized Losses	(2,171)	(1)
Estimated Fair Value	319,295	411,706
Other debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	205,569	240,887
Unrealized Gains	0	1
Unrealized Losses	0	0
Estimated Fair Value	205,569	240,888
Total available-for-sale debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	527,035	652,199
Unrealized Gains	0	396
Unrealized Losses	(2,171)	(1)
Estimated Fair Value	$ 524,864	$ 652,594

Supplemental Guarantor and Non-Guarantor Financial Information - Narrative (Details)	Mar. 31, 2020
5 1/4% Senior Secured Notes due 2026
Guarantor Obligations [Line Items]
Interest rate	5.25%
7 5/8% Senior Unsecured Notes due 2021
Guarantor Obligations [Line Items]
Interest rate	7.625%
6 5/8% Senior Unsecured Notes due 2026
Guarantor Obligations [Line Items]
Interest rate	6.625%

Revenue Recognition - Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Capitalized Contract Cost [Line Items]
Unamortized contract acquisition costs	$ 110,397		$ 113,592
Contract Acquisition Costs
Capitalized Contract Cost [Line Items]
Amortization expense	$ 25,431	$ 21,115

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following table presents the financial results of our discontinued operations for the BSS Business for the three months ended March 31, 2019:



	Amounts
Revenue:
Services and other revenue - DISH Network	$	70,826
Services and other revenue - other	6,400
Total revenue	77,226
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	10,217
Selling, general and administrative expenses	20
Depreciation and amortization	31,119
Total costs and expenses	41,356
Operating income (loss)	35,870
Other income (expense):
Interest expense	(6,498		)
Total other income (expense), net	(6,498		)
Income (loss) from discontinued operations before income taxes	29,372
Income tax benefit (provision), net	(6,648		)
Net income (loss) from discontinued operations	$	22,724



	Amounts
Operating activities:
Net income (loss) from discontinued operations	$	22,724
Depreciation and amortization	$	31,119

Investing activities:
Expenditures for property and equipment	$	108

Financing activities:
Payment of finance lease obligations	$	9,597
Payment of in-orbit incentive obligations	$	1,035

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Business Combinations - Preliminary Valuation (Details) - Yahsat $ in Thousands	Nov. 30, 2019 USD ($)
Business Acquisition [Line Items]
Acquired assets	$ 53,861
Satellite payload
Business Acquisition [Line Items]
Acquired assets	49,363
Regulatory authorization
Business Acquisition [Line Items]
Acquired assets	$ 4,498

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Financial Impact of Adoption. Our adoption of this new standard resulted in the following adjustments to our Condensed Consolidated Balance Sheet:



	Balance at December 31, 2019		Adoption of ASC 326 Increase (Decrease)			Balance at January 1, 2020
Trade accounts receivable and contract assets, net	$	196,520	$	(13,672	)	$	182,848
Other current assets, net	$	301,652	$	6,723		$	308,375
Other non-current assets, net	$	251,936	$	4,050		$	255,986
Total assets	$	5,572,035	$	(2,899	)	$	5,569,136
Deferred tax liabilities, net	$	380,316	$	(490	)	$	379,826
Accumulated earnings (losses)	$	664,415	$	(2,169	)	$	662,246
Non-controlling interests	$	75,748	$	(240	)	$	75,508
Total shareholder's equity	$	2,134,163	$	(2,409	)	$	2,131,754
Total liabilities and shareholder's equity	$	5,572,035	$	(2,899	)	$	5,569,136

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHARESHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Earnings (Losses)	Non-controlling Interests
Beginning balance at Dec. 31, 2018	$ 2,392,495	$ 1,767,037	$ (83,774)	$ 693,957	$ 15,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,433	1,433
Purchase of non-controlling interest	(7,313)	(2,666)			(4,647)
Other comprehensive income (loss)	1,163		1,163		0
Net income (loss)	23,032			22,226	806
Other, net	(323)	(323)
Ending balance at Mar. 31, 2019	2,410,487	1,765,481	(82,611)	716,183	11,434
Beginning balance at Dec. 31, 2019	2,134,163	1,478,636	(84,636)	664,415	75,748
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,457	1,457
Issuance of equity and contribution of assets pursuant to the Yahsat JV formation	2,824	4,338			(1,514)
Contribution by non-controlling interest holder	4,000				4,000
Other comprehensive income (loss)	(85,720)		(69,397)		(16,323)
Net income (loss)	(17,913)			(14,471)	(3,442)
Other, net	(684)	(684)
Ending balance at Mar. 31, 2020	$ 2,035,718	$ 1,483,747	$ (154,033)	$ 647,775	$ 58,229

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Supplemental Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet as of March 31, 2020



	HSSC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	1,174,650	$	19,878	$	33,833	$	—		$	1,228,361
Marketable investment securities	524,864		77		—		—			524,941
Trade accounts receivable and contract assets, net	—		131,579		56,233		—			187,812
Other current assets	93,526		655,191		109,288		(542,634		)	315,371
Total current assets	1,793,040		806,725		199,354		(542,634		)	2,256,485
Non-current assets:
Property and equipment, net	—		1,425,670		324,891		—			1,750,561
Operating lease right-of-use assets	—		96,944		22,767		—			119,711
Goodwill	—		504,173		5,142		—			509,315
Regulatory authorizations, net	—		400,000		11,243		—			411,243
Other intangible assets, net	—		25,663		—		—			25,663
Other investments, net	—		108,952		—		—			108,952
Investment in subsidiaries	2,823,219		207,664		—		(3,030,883		)	—
Other non-current assets, net	18,179		288,132		43,055		(92,591		)	256,775
Total non-current assets	2,841,398		3,057,198		407,098		(3,123,474		)	3,182,220
Total assets	$	4,634,438	$	3,863,923	$	606,452	$	(3,666,108	)	$	5,438,705
Liabilities and Shareholder's Equity
Current liabilities:
Trade accounts payable	$	—	$	87,132	$	19,207	$	—		$	106,339
Contract liabilities	—		93,741		5,525		—			99,266
Accrued expenses and other current liabilities	266,731		311,723		196,070		(542,634		)	231,890
Total current liabilities	266,731		492,596		220,802		(542,634		)	437,495
Non-current liabilities:
Long-term debt	2,390,218		—		—		—			2,390,218
Deferred tax liabilities, net	—		398,786		—		(17,565		)	381,221
Operating lease liabilities	—		86,603		18,854		—			105,457
Other non-current liabilities	—		63,401		100,221		(75,026		)	88,596
Total non-current liabilities	2,390,218		548,790		119,075		(92,591		)	2,965,492
Total liabilities	2,656,949		1,041,386		339,877		(635,225		)	3,402,987
Shareholder's equity:
Total Hughes Satellite Systems Corporation shareholder's equity	1,977,489		2,822,537		208,346		(3,030,883		)	1,977,489
Non-controlling interests	—		—		58,229		—			58,229
Total shareholder's equity	1,977,489		2,822,537		266,575		(3,030,883		)	2,035,718
Total liabilities and shareholder's equity	$	4,634,438	$	3,863,923	$	606,452	$	(3,666,108	)	$	5,438,705

Condensed Consolidating Balance Sheet as of December 31, 2019



	HSSC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	1,057,903	$	32,338	$	49,194	$	—		$	1,139,435
Marketable investment securities	652,594		241		—		—			652,835
Trade accounts receivable and contract assets, net	—		129,722		66,798		—			196,520
Other current assets	93,536		602,337		107,959		(502,180		)	301,652
Total current assets	1,804,033		764,638		223,951		(502,180		)	2,290,442
Non-current assets:
Property and equipment, net	—		1,459,151		398,430		—			1,857,581
Operating lease right-of-use assets	—		89,106		24,293		—			113,399
Goodwill	—		504,173		2,780		—			506,953
Regulatory authorizations, net	—		400,000		12,363		—			412,363
Other intangible assets, net	—		29,321		—		—			29,321
Other investments, net	—		110,040		—		—			110,040
Investment in subsidiaries	2,876,572		282,163		—		(3,158,735		)	—
Other non-current assets, net	10,672		772,193		42,557		(573,486		)	251,936
Total non-current assets	2,887,244		3,646,147		480,423		(3,732,221		)	3,281,593
Total assets	$	4,691,277	$	4,410,785	$	704,374	$	(4,234,401	)	$	5,572,035
Liabilities and Shareholder's Equity
Current liabilities:
Trade accounts payable	$	—	$	102,744	$	18,808	$	—		$	121,552
Contract liabilities	—		96,485		4,575		—			101,060
Accrued expenses and other current liabilities	243,694		314,583		202,320		(502,180		)	258,417
Total current liabilities	243,694		513,812		225,703		(502,180		)	481,029
Non-current liabilities:
Long-term debt	2,389,168		—		—		—			2,389,168
Deferred tax liabilities, net	—		390,288		—		(9,972		)	380,316
Operating lease liabilities	—		77,366		19,513		—			96,879
Other non-current liabilities	—		553,518		100,476		(563,514		)	90,480
Total non-current liabilities	2,389,168		1,021,172		119,989		(573,486		)	2,956,843
Total liabilities	2,632,862		1,534,984		345,692		(1,075,666		)	3,437,872
Shareholder's equity:
Total Hughes Satellite Systems Corporation shareholder's equity	2,058,415		2,875,801		282,934		(3,158,735		)	2,058,415
Non-controlling interests	—		—		75,748		—			75,748
Total shareholder's equity	2,058,415		2,875,801		358,682		(3,158,735		)	2,134,163
Total liabilities and shareholder's equity	$	4,691,277	$	4,410,785	$	704,374	$	(4,234,401	)	$	5,572,035

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

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2020



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue	$	—		$	354,399		$	64,928		$	(9,089	)	$	410,238
Equipment revenue	—			65,586			5,410			(13,687		)	57,309
Total revenue	—			419,985			70,338			(22,776		)	467,547
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	—			110,471			42,063			(8,649		)	143,885
Cost of sales - equipment (exclusive of depreciation and amortization)	—			55,374			4,221			(13,687		)	45,908
Selling, general and administrative expenses	—			95,818			20,482			(440		)	115,860
Research and development expenses	—			6,109			145			—			6,254
Depreciation and amortization	—			99,359			26,606			—			125,965
Total costs and expenses	—			367,131			93,517			(22,776		)	437,872
Operating income (loss)	—			52,854			(23,179		)	—			29,675
Other income (expense):
Interest income	7,953			971			891			(923		)	8,892
Interest expense, net of amounts capitalized	(40,472		)	(613		)	(2,030		)	923			(42,192		)
Gains (losses) on investments, net	—			(164		)	—			—			(164		)
Equity in earnings (losses) of unconsolidated affiliates, net	—			(1,087		)	—			—			(1,087		)
Equity in earnings (losses) of subsidiaries, net	10,630			(29,167		)	—			18,537			—
Foreign currency transaction gains (losses), net	—			(2		)	(7,526		)	—			(7,528		)
Other, net	—			(275		)	(3		)	—			(278		)
Total other income (expense), net	(21,889		)	(30,337		)	(8,668		)	18,537			(42,357		)
Income (loss) from continuing operations before income taxes	(21,889		)	22,517			(31,847		)	18,537			(12,682		)
Income tax benefit (provision), net	7,418			(11,804		)	(845		)	—			(5,231		)
Net income (loss)	(14,471		)	10,713			(32,692		)	18,537			(17,913		)
Less: Net loss (income) attributable to non-controlling interests	—			—			3,442			—			3,442
Net income (loss) attributable to Hughes Satellite Systems Corporation	$	(14,471	)	$	10,713		$	(29,250	)	$	18,537		$	(14,471	)
Comprehensive income (loss):
Net income (loss)	$	(14,471	)	$	10,713		$	(32,692	)	$	18,537		$	(17,913	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(82,836		)	—			(82,836		)
Unrealized gains (losses) on available-for-sale securities	(2,479		)	—			—			—			(2,479		)
Other	—			—			(405		)	—			(405		)
Equity in other comprehensive income (loss) of subsidiaries, net	(66,918		)	(66,918		)	—			133,836			—
Total other comprehensive income (loss), net of tax	(69,397		)	(66,918		)	(83,241		)	133,836			(85,720		)
Comprehensive income (loss)	(83,868		)	(56,205		)	(115,933		)	152,373			(103,633		)
Less: Comprehensive loss (income) attributable to non-controlling interests	—			—			19,765			—			19,765
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	$	(83,868	)	$	(56,205	)	$	(96,168	)	$	152,373		$	(83,868	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2019



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue:
Services and other revenue	$	—		$	352,591		$	59,696		$	(8,802	)	$	403,485
Equipment revenue	—			52,649			9,415			(10,350		)	51,714
Total revenue	—			405,240			69,111			(19,152		)	455,199
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)	—			110,862			39,333			(8,109		)	142,086
Cost of sales - equipment (exclusive of depreciation and amortization)	—			48,499			6,858			(10,350		)	45,007
Selling, general and administrative expenses	—			86,465			16,565			(693		)	102,337
Research and development expenses	—			6,743			145			—			6,888
Depreciation and amortization	—			96,704			15,707			—			112,411
Total costs and expenses	—			349,273			78,608			(19,152		)	408,729
Operating income (loss)	—			55,967			(9,497		)	—			46,470
Other income (expense):
Interest income	17,409			926			559			(897		)	17,997
Interest expense, net of amounts capitalized	(56,361		)	(1,134		)	(1,317		)	897			(57,915		)
Gains (losses) on investments, net	—			(346		)	—			—			(346		)
Equity in earnings (losses) of unconsolidated affiliates, net	—			(1,072		)	—			—			(1,072		)
Equity in earnings (losses) of subsidiaries, net	52,199			(8,788		)	—			(43,411		)	—
Foreign currency transaction gains (losses), net	—			(19		)	230			—			211
Other, net	309			(398		)	(76		)	—			(165		)
Total other income (expense), net	13,556			(10,831		)	(604		)	(43,411		)	(41,290		)
Income (loss) from continuing operations before income taxes	13,556			45,136			(10,101		)	(43,411		)	5,180
Income tax benefit (provision), net	8,670			(15,568		)	2,026			—			(4,872		)
Net income (loss) from continuing operations	22,226			29,568			(8,075		)	(43,411		)	308
Net income (loss) from discontinued operations	—			22,724			—			—			22,724
Net income (loss)	22,226			52,292			(8,075		)	(43,411		)	23,032
Less: Net loss (income) attributable to non-controlling interests	—			—			(806		)	—			(806		)
Net income (loss) attributable to Hughes Satellite Systems Corporation	$	22,226		$	52,292		$	(8,881	)	$	(43,411	)	$	22,226
Comprehensive income (loss):
Net income (loss)	$	22,226		$	52,292		$	(8,075	)	$	(43,411	)	$	23,032
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—			—			(838		)	—			(838		)
Unrealized gains (losses) on available-for-sale securities	2,353			—			—			—			2,353
Other	—			—			33			—			33
Equity in other comprehensive income (loss) of subsidiaries, net	(805		)	(805		)	—			1,610			—
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale securities	(385		)	—			—			—			(385		)
Total other comprehensive income (loss), net of tax	1,163			(805		)	(805		)	1,610			1,163
Comprehensive income (loss)	23,389			51,487			(8,880		)	(41,801		)	24,195
Less: Comprehensive loss (income) attributable to non-controlling interests	—			—			(806		)	—			(806		)
Comprehensive income (loss) attributable to Hughes Satellite Systems Corporation	$	23,389		$	51,487		$	(9,686	)	$	(41,801	)	$	23,389

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2020



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	(14,471	)	$	10,713		$	(32,692	)	$	18,537		$	(17,913	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(22,215		)	95,031			28,858			(18,537		)	83,137
Net cash flows from operating activities	(36,686		)	105,744			(3,834		)	—			65,224

Cash flows from investing activities:
Purchases of marketable investment securities	(365,877		)	—			—			—			(365,877		)
Sales and maturities of marketable investment securities	490,020			—			—			—			490,020
Expenditures for property and equipment	—			(61,134		)	(30,383		)	—			(91,517		)
Expenditures for externally marketed software	—			(8,638		)	—			—			(8,638		)
Distributions (contributions) and advances from (to) subsidiaries, net	29,290			(18,939		)	—			(10,351		)	—
Net cash flows from investing activities	153,433			(88,711		)	(30,383		)	(10,351		)	23,988

Cash flows from financing activities:
Payment of finance lease obligations	—			—			(215		)	—			(215		)
Payment of in-orbit incentive obligations	—			(203		)	—			—			(203		)
Contribution by non-controlling interest holder	—			—			4,000			—			4,000
Other, net	—			—			979			—			979
Contributions (distributions) and advances (to) from parent, net	—			(29,290		)	18,939			10,351			—
Net cash flows from financing activities	—			(29,493		)	23,703			10,351			4,561

Effect of exchange rates on cash and cash equivalents	—			—			(4,618		)	—			(4,618		)
Net increase (decrease) in cash and cash equivalents	116,747			(12,460		)	(15,132		)	—			89,155
Cash and cash equivalents, including restricted amounts, beginning of period	1,057,903			32,338			50,081			—			1,140,322
Cash and cash equivalents, including restricted amounts, end of period	$	1,174,650		$	19,878		$	34,949		$	—		$	1,229,477

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2019



	HSSC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income (loss)	$	22,226		$	52,292		$	(8,075	)	$	(43,411	)	$	23,032
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(48,467		)	163,032			(10,043		)	43,411			147,933
Net cash flows from operating activities	(26,241		)	215,324			(18,118		)	—			170,965

Cash flows from investing activities:
Purchases of marketable investment securities	(240,188		)	—			—			—			(240,188		)
Sales and maturities of marketable investment securities	468,748			(3		)	—			—			468,745
Expenditures for property and equipment	—			(54,207		)	(19,722		)	—			(73,929		)
Expenditures for externally marketed software	—			(7,600		)	—			—			(7,600		)
Distributions (contributions) and advances from (to) subsidiaries, net	111,020			(32,949		)	—			(78,071		)	—
Net cash flows from investing activities	339,580			(94,759		)	(19,722		)	(78,071		)	147,028

Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes	(8,046		)	—			—			—			(8,046		)
Payment of finance lease obligations	—			(9,597		)	(285		)	—			(9,882		)
Payment of in-orbit incentive obligations	—			(1,573		)	—			—			(1,573		)
Purchase of non-controlling interest	(7,312		)	—			—			—			(7,312		)
Contributions (distributions) and advances (to) from parent, net	—			(111,020		)	32,949			78,071			—
Net cash flows from financing activities	(15,358		)	(122,190		)	32,664			78,071			(26,813		)

Effect of exchange rates on cash and cash equivalents	—			—			(117		)	—			(117		)
Net increase (decrease) in cash and cash equivalents	297,981			(1,625		)	(5,293		)	—			291,063
Cash and cash equivalents, including restricted amounts, beginning of period	771,718			46,353			30,548			—			848,619
Cash and cash equivalents, including restricted amounts, end of period	$	1,069,699		$	44,728		$	25,255		$	—		$	1,139,682

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

The following tables presents the components of Property and equipment, net:



	As of
	March 31, 2020		December 31, 2019
Property and equipment, net:
Satellites, net	$	1,059,542	$	1,127,521
Other property and equipment, net	691,019		730,060
Total property and equipment, net	$	1,750,561	$	1,857,581

The following table presents our owned and leased satellites:



Satellite	Segment	Launch Date	Nominal Degree Orbital Location (Longitude)	Depreciable Life (In Years)
Owned:
SPACEWAY 3 ⁽¹⁾	Hughes	August 2007	95 W	10
EchoStar XVII	Hughes	July 2012	107 W	15
EchoStar XIX	Hughes	December 2016	97.1 W	15
Al Yah 3 ⁽²⁾	Hughes	January 2018	20 W	7
EchoStar IX ⁽³⁾	ESS	August 2003	121 W	12

Finance leases:
Eutelsat 65 West A	Hughes	March 2016	65 W	15
Telesat T19V	Hughes	July 2018	63 W	15
EchoStar 105/SES-11	ESS	October 2017	105 W	15

(3) We own the Ka-band and Ku-band payloads on this satellite.

The following table presents the components of our satellites, net:



	Depreciable Life (In Years)	As of
	Depreciable Life (In Years)	March 31, 2020			December 31, 2019
Satellites, net:
Satellites - owned	7 to 15	$	1,503,580		$	1,516,006
Satellites - acquired under finance leases	15	352,206			381,162
Total satellites		1,855,786			1,897,168
Accumulated depreciation:
Satellites - owned		(739,859		)	(713,259		)
Satellites - acquired under finance leases		(56,385		)	(56,388		)
Total accumulated depreciation		(796,244		)	(769,647		)
Total satellites, net		$	1,059,542		$	1,127,521

The following table presents the depreciation expense and capitalized interest associated with our satellites:



	For the three months ended March 31,
	2020		2019
Depreciation expense:
Satellites - owned	$	27,068	$	27,010
Satellites acquired under finance leases	6,013		6,490
Total depreciation expense	$	33,081	$	33,500

Capitalized interest	$	637	$	147

Supplemental Financial Information - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Research and development expenses	$ 6,254	$ 6,888
Cost of sales - equipment (exclusive of depreciation and amortization)
Research and development expenses	6,692	5,395
Research and development expenses
Research and development expenses	$ 6,254	$ 6,888

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes		$ (2,409)
Trade accounts receivable and contract assets, net	$ 187,812		$ 196,520
Other current assets, net	315,371		301,652
Other non-current assets, net	256,775		251,936
Total assets	5,438,705		5,572,035
Deferred tax liabilities, net	381,221		380,316
Accumulated earnings (losses)	647,775		664,415
Non-controlling interests	58,229		75,748
Total shareholder's equity	2,035,718		2,134,163	$ 2,410,487	$ 2,392,495
Total liabilities and shareholder's equity	5,438,705		5,572,035
Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated earnings (losses)		2,900
Adoption of ASC 326 Increase (Decrease)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade accounts receivable and contract assets, net		(13,672)
Other current assets, net		6,723
Other non-current assets, net		4,050
Total assets		(2,899)
Deferred tax liabilities, net		(490)
Accumulated earnings (losses)		(2,169)
Non-controlling interests		(240)
Total shareholder's equity		(2,409)
Total liabilities and shareholder's equity		(2,899)
Balance at January 1, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade accounts receivable and contract assets, net		182,848
Other current assets, net		308,375
Other non-current assets, net		255,986
Total assets		5,569,136
Deferred tax liabilities, net		379,826
Accumulated earnings (losses)		662,246
Non-controlling interests		75,508
Total shareholder's equity		2,131,754
Total liabilities and shareholder's equity		5,569,136
Accumulated Earnings (Losses)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes		(2,169)
Total shareholder's equity	$ 647,775		$ 664,415	$ 716,183	$ 693,957
Accumulated Earnings (Losses) \| Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes		$ (2,200)

Related Party Transactions - EchoStar - Details (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
EchoStar Mobile Limited
Related Party Transaction [Line Items]
Revenue from related parties	$ 4,700	$ 5,000
Interest rate (as a percent)	5.00%
EchoStar
Related Party Transaction [Line Items]
Revenue from related parties	$ 4,699	4,474
Expense recorded for services provided	4,400	2,800
EOC \| Construction Management Services
Related Party Transaction [Line Items]
Related party costs	$ 300	$ 400
Cheyenne Lease Agreement \| EchoStar \| Related Party Transactions, Lessor, Operating Lease, Real Estate [Member]
Related Party Transaction [Line Items]
Required minimum notice period for termination of agreement after lease extension	30 days
One-Year London Interbank Offered Rate \| Minimum \| Related-Party Advances
Related Party Transaction [Line Items]
Range of annual rates for cash advances	1.00%
One-Year London Interbank Offered Rate \| Maximum \| Related-Party Advances
Related Party Transaction [Line Items]
Range of annual rates for cash advances	3.00%

Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (17,913)	$ 23,032
Adjustments to reconcile net income (loss) to net cash flows from operating activities	83,137	147,933
Net cash flows from operating activities	65,224	170,965
Cash flows from investing activities:
Purchases of marketable investment securities	(365,877)	(240,188)
Sales and maturities of marketable investment securities	490,020	468,745
Expenditures for property and equipment	(91,517)	(73,929)
Expenditures for externally marketed software	(8,638)	(7,600)
Distributions (contributions) and advances from (to) subsidiaries, net	0	0
Net cash flows from investing activities	23,988	147,028
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes	0	(8,046)
Payment of finance lease obligations	(215)	(9,882)
Payment of in-orbit incentive obligations	(203)	(1,573)
Contribution by non-controlling interest holder	4,000	0
Purchase of non-controlling interest	0	(7,312)
Other, net	979	0
Contributions (distributions) and advances (to) from parent, net	0
Net cash flows from financing activities	4,561	(26,813)
Effect of exchange rates on cash and cash equivalents	(4,618)	(117)
Net increase (decrease) in cash and cash equivalents	89,155	291,063
Cash and cash equivalents, including restricted amounts, beginning of period	1,140,322	848,619
Cash and cash equivalents, including restricted amounts, end of period	1,229,477	1,139,682
Reportable Legal Entities \| HSSC
Cash flows from operating activities:
Net income (loss)	(14,471)	22,226
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(22,215)	(48,467)
Net cash flows from operating activities	(36,686)	(26,241)
Cash flows from investing activities:
Purchases of marketable investment securities	(365,877)	(240,188)
Sales and maturities of marketable investment securities	490,020	468,748
Expenditures for property and equipment	0	0
Expenditures for externally marketed software	0	0
Distributions (contributions) and advances from (to) subsidiaries, net	29,290	111,020
Net cash flows from investing activities	153,433	339,580
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes		(8,046)
Payment of finance lease obligations	0	0
Payment of in-orbit incentive obligations	0	0
Contribution by non-controlling interest holder	0
Purchase of non-controlling interest		(7,312)
Other, net		0
Contributions (distributions) and advances (to) from parent, net	0
Net cash flows from financing activities	0	(15,358)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	116,747	297,981
Cash and cash equivalents, including restricted amounts, beginning of period	1,057,903	771,718
Cash and cash equivalents, including restricted amounts, end of period	1,174,650	1,069,699
Reportable Legal Entities \| Guarantor Subsidiaries
Cash flows from operating activities:
Net income (loss)	10,713	52,292
Adjustments to reconcile net income (loss) to net cash flows from operating activities	95,031	163,032
Net cash flows from operating activities	105,744	215,324
Cash flows from investing activities:
Purchases of marketable investment securities	0	0
Sales and maturities of marketable investment securities	0	(3)
Expenditures for property and equipment	(61,134)	(54,207)
Expenditures for externally marketed software	(8,638)	(7,600)
Distributions (contributions) and advances from (to) subsidiaries, net	(18,939)	(32,949)
Net cash flows from investing activities	(88,711)	(94,759)
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes		0
Payment of finance lease obligations	0	(9,597)
Payment of in-orbit incentive obligations	(203)	(1,573)
Contribution by non-controlling interest holder	0
Purchase of non-controlling interest		0
Other, net		(111,020)
Contributions (distributions) and advances (to) from parent, net	(29,290)
Net cash flows from financing activities	(29,493)	(122,190)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	(12,460)	(1,625)
Cash and cash equivalents, including restricted amounts, beginning of period	32,338	46,353
Cash and cash equivalents, including restricted amounts, end of period	19,878	44,728
Reportable Legal Entities \| Non-Guarantor Subsidiaries
Cash flows from operating activities:
Net income (loss)	(32,692)	(8,075)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	28,858	(10,043)
Net cash flows from operating activities	(3,834)	(18,118)
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	(30,383)	(19,722)
Expenditures for externally marketed software	0	0
Distributions (contributions) and advances from (to) subsidiaries, net	0	0
Net cash flows from investing activities	(30,383)	(19,722)
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes		0
Payment of finance lease obligations	(215)	(285)
Payment of in-orbit incentive obligations	0	0
Contribution by non-controlling interest holder	4,000
Purchase of non-controlling interest		0
Other, net	979	32,949
Contributions (distributions) and advances (to) from parent, net	18,939
Net cash flows from financing activities	23,703	32,664
Effect of exchange rates on cash and cash equivalents	(4,618)	(117)
Net increase (decrease) in cash and cash equivalents	(15,132)	(5,293)
Cash and cash equivalents, including restricted amounts, beginning of period	50,081	30,548
Cash and cash equivalents, including restricted amounts, end of period	34,949	25,255
Eliminations
Cash flows from operating activities:
Net income (loss)	18,537	(43,411)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(18,537)	43,411
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
Expenditures for externally marketed software	0	0
Distributions (contributions) and advances from (to) subsidiaries, net	(10,351)	(78,071)
Net cash flows from investing activities	(10,351)	(78,071)
Cash flows from financing activities:
Repurchase of the 2019 Senior Secured Notes		0
Payment of finance lease obligations	0	0
Payment of in-orbit incentive obligations	0	0
Contribution by non-controlling interest holder	0
Purchase of non-controlling interest		0
Other, net		78,071
Contributions (distributions) and advances (to) from parent, net	10,351
Net cash flows from financing activities	10,351	78,071
Effect of exchange rates on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents, including restricted amounts, beginning of period	0	0
Cash and cash equivalents, including restricted amounts, end of period	$ 0	$ 0

Property and Equipment - Schedule of Major Asset Class (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Satellites, net	$ 1,750,561	$ 1,857,581
Net	1,750,561	1,857,581
Satellites
Property, Plant and Equipment [Line Items]
Satellites, net	1,059,542	1,127,521
Other property and equipment, net
Property, Plant and Equipment [Line Items]
Net	$ 691,019	$ 730,060

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

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



	Hughes		ESS		Corporate and Other			Consolidated Total
For the three months ended March 31, 2020
External revenue	$	458,482	$	4,367	$	4,698		$	467,547
Intersegment revenue	—		285		(285		)	—
Total revenue	$	458,482	$	4,652	$	4,413		$	467,547

EBITDA	$	154,641	$	2,030	$	(6,646	)	$	150,025
Capital expenditures	$	91,517	$	—	$	—		$	91,517

For the three months ended March 31, 2019
External revenue	$	445,337	$	3,852	$	6,010		$	455,199
Intersegment revenue	—		181		(181		)	—
Total revenue	$	445,337	$	4,033	$	5,829		$	455,199

EBITDA	$	161,132	$	1,729	$	(6,158	)	$	156,703
Capital expenditures	$	73,821	$	—	$	—		$	73,821

Schedule of reconciliation of EBITDA to reported income before income taxes

The following table reconciles Income (loss) from continuing operations before income taxes in the Condensed Consolidated Statements of Operations to EBITDA:



	For the three months ended March 31,
	2020			2019
Income (loss) from continuing operations before income taxes	$	(12,682	)	$	5,180
Interest income, net	(8,892		)	(17,997		)
Interest expense, net of amounts capitalized	42,192			57,915
Depreciation and amortization	125,965			112,411
Net loss (income) attributable to non-controlling interests	3,442			(806		)
EBITDA	$	150,025		$	156,703

Revenue Recognition - Property and Equipment Subject to Operating Leases (Details) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Net	$ 1,750,561	$ 1,857,581
Customer premises equipment
Property, Plant and Equipment [Line Items]
Cost	1,488,031	1,458,298
Accumulated Depreciation	(1,123,861)	(1,074,968)
Net	364,170	383,330
Satellites
Property, Plant and Equipment [Line Items]
Cost	104,620	104,620
Accumulated Depreciation	(33,104)	(31,360)
Net	71,516	73,260
Assets Leased to Others [Member]
Property, Plant and Equipment [Line Items]
Cost	1,592,651	1,562,918
Accumulated Depreciation	(1,156,965)	(1,106,328)
Net	$ 435,686	$ 456,590

Marketable Investment Securities - Activity on Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 10,000	$ 311,823
Gains (losses) on sales, net	$ 0	$ 385

Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Contract Balances

The following table presents the components of our contract balances:



	As of
	March 31, 2020			December 31, 2019
Trade accounts receivable and contract assets, net:
Sales and services	$	147,288		$	152,632
Leasing	4,194			4,016
Total trade accounts receivable	151,482			156,648
Contract assets	46,938			63,649
Allowance for doubtful accounts	(10,608		)	(23,777		)
Total trade accounts receivable and contract assets, net	$	187,812		$	196,520

Contract liabilities:
Current	$	99,266		$	101,060
Non-current	9,426			10,572
Total contract liabilities	$	108,692		$	111,632

For the three months ended March 31, 2020 and 2019, we recognized revenue of $52.2 million and $39.5 million, respectively, that were previously included in the contract liability balances as of December 31, 2019 and 2018, respectively.

The following table presents the activity in our allowance for doubtful accounts:



	Balance at Beginning of Period		Credit Losses ⁽¹⁾			Deductions			Foreign Currency Translation			Balance at End of Period
For the three months ended:
March 31, 2020	$	23,777	$	(5,754	)	$	(6,325	)	$	(1,090	)	$	10,608
March 31, 2019	$	16,604	$	4,177		$	(6,738	)	$	(15	)	$	14,028

Contract Acquisition Costs

The following table presents our unamortized contract acquisition costs:



	As of
	March 31, 2020		December 31, 2019
Unamortized contract acquisition costs	$	110,397	$	113,592

The following table presents the amortization of our contract acquisition costs:



	For the three months ended March 31,
	2020		2019
Amortization expense	$	25,431	$	21,115

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2020, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $736.6 million. We expect to recognize 39.6% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount excludes agreements with consumer customers in our Hughes segment, our leasing arrangements and agreements with certain customers under which collectability of all amounts due through the term of contracts is uncertain.

Disaggregation of Revenue

Geographic Information

The following table presents our revenue from customer contracts disaggregated by primary geographic market and by segment:



	Hughes		ESS		Corporate and Other			Consolidated Total
For the three months ended March 31, 2020
North America	$	382,715	$	4,652	$	(285	)	$	387,082
South and Central America	33,956		—		—			33,956
Other	41,811		—		4,698			46,509
Total revenue	$	458,482	$	4,652	$	4,413		$	467,547

For the three months ended March 31, 2019
North America	$	367,829	$	4,033	$	1,005		$	372,867
South and Central America	26,863		—		—			26,863
Other	50,645		—		4,824			55,469
Total revenue	$	445,337	$	4,033	$	5,829		$	455,199

Nature of Products and Services

The following table presents our revenue disaggregated by the nature of products and services and by segment:



	Hughes		ESS		Corporate and Other		Consolidated Total
For the three months ended March 31, 2020
Services and other revenue:
Services	$	390,000	$	2,765	$	—	$	392,765
Lease revenue	11,173		1,887		4,413		17,473
Total services and other revenue	401,173		4,652		4,413		410,238
Equipment revenue:
Equipment	24,839		—		—		24,839
Design, development and construction services	31,557		—		—		31,557
Lease revenue	913		—		—		913
Total equipment revenue	57,309		—		—		57,309
Total revenue	$	458,482	$	4,652	$	4,413	$	467,547

For the three months ended March 31, 2019
Services and other revenue:
Services	$	380,783	$	2,817	$	322	$	383,922
Lease revenue	12,840		1,216		5,507		19,563
Total services and other revenue	393,623		4,033		5,829		403,485
Equipment revenue:
Equipment	25,960		—		—		25,960
Design, development and construction services	25,066		—		—		25,066
Lease revenue	688		—		—		688
Total equipment revenue	51,714		—		—		51,714
Total revenue	$	445,337	$	4,033	$	5,829	$	455,199

Lease Revenue

The following table presents our lease revenue by type of lease:



	For the three months ended March 31,
	2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	913	$	688
Interest income	69		252
Total sales-type lease revenue	982		940
Operating lease revenue	17,404		19,311
Total lease revenue	$	18,386	$	20,251

Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $6.6 million and $6.5 million as of March 31, 2020 and December 31, 2019, respectively.

The following table presents future operating lease payments to be received as of March 31, 2020:



	Amounts
Year ending December 31,
2020 (remainder)	$	27,691
2021	34,910
2022	32,052
2023	30,285
2024	28,219
2025 and beyond	123,520
Total lease payments	$	276,677

The following table presents amounts for assets subject to operating leases, which are included in Property and equipment, net:



	As of
	March 31, 2020							December 31, 2019
	Cost		Accumulated Depreciation			Net		Cost		Accumulated Depreciation			Net
Customer premises equipment	$	1,488,031	$	(1,123,861	)	$	364,170	$	1,458,298	$	(1,074,968	)	$	383,330
Satellites	104,620		(33,104		)	71,516		104,620		(31,360		)	73,260
Total	$	1,592,651	$	(1,156,965	)	$	435,686	$	1,562,918	$	(1,106,328	)	$	456,590

The following table presents depreciation expense for assets subject to operating leases, which is included in Depreciation and amortization:



	For the three months ended March 31,
	2020		2019
Customer premises equipment	$	49,504	$	49,712
Satellites	1,744		1,737
Real estate	—		217
Total	$	51,248	$	51,666

Related Party Transactions - EchoStar (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of related party transactions

The following table presents our Services and other revenue from EchoStar:



	For the three months ended March 31,
	2020		2019
Services and other revenue - EchoStar	$	4,699	$	4,474

The following table presents the corresponding related party receivables:



	As of
	March 31, 2020		December 31, 2019
Related party receivables - EchoStar - current	$	131,948	$	131,892
Related party receivables - EchoStar - non-current	19,412		19,759
Total related party receivables - EchoStar	$	151,360	$	151,651

The following table presents our operating expenses related to EchoStar:



	For the three months ended March 31,
	2020		2019
Operating expenses - EchoStar	$	12,642	$	13,306

The following table presents the corresponding related party payables:



	As of
	March 31, 2020		December 31, 2019
Related party payables - EchoStar - current	$	13,793	$	11,132
Related party payables - EchoStar - non-current	23,748		23,980
Total related party payables - EchoStar	$	37,541	$	35,112

The following table presents our Services and other revenue from DISH Network:



	For the three months ended March 31,
	2020		2019
Services and other revenue - DISH Network	$	7,587	$	11,545

The following table presents the related trade accounts receivable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts receivable - DISH Network	$	9,955	$	8,876

The following table presents our operating expenses related to DISH Network:



	For the three months ended March 31,
	2020		2019
Operating expenses - DISH Network	$	1,137	$	714

The following table presents the related trade accounts payable:



	As of
	March 31, 2020		December 31, 2019
Trade accounts payable - DISH Network	$	610	$	502

Property and Equipment - Schedule of Depreciation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation	$ 51,248	$ 51,666
Depreciation and amortization	125,965	112,411
Capitalized interest	637	147
Satellites
Property, Plant and Equipment [Line Items]
Depreciation	27,068	27,010
Amortization of right-of-use assets	6,013	6,490
Depreciation and amortization	$ 33,081	$ 33,500

Marketable Investment Securities - Fair Value of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair value of marketable securities
Total debt securities	$ 524,864	$ 652,594
Equity securities	77	241
Corporate bonds
Fair value of marketable securities
Total debt securities	319,295	411,706
Other debt securities
Fair value of marketable securities
Total debt securities	205,569	240,888
Fair value measurements on recurring basis
Fair value of marketable securities
Total debt securities	524,864	652,594
Equity securities	77	241
Total marketable investment securities	524,941	652,835
Fair value measurements on recurring basis \| Corporate bonds
Fair value of marketable securities
Total debt securities	319,295	411,706
Fair value measurements on recurring basis \| Other debt securities
Fair value of marketable securities
Total debt securities	205,569	240,888
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Total debt securities	0	0
Equity securities	77	241
Total marketable investment securities	77	241
Fair value measurements on recurring basis \| Level 1 \| Corporate bonds
Fair value of marketable securities
Total debt securities	0	0
Fair value measurements on recurring basis \| Level 1 \| Other debt securities
Fair value of marketable securities
Total debt securities	0	0
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Total debt securities	524,864	652,594
Equity securities	0	0
Total marketable investment securities	524,864	652,594
Fair value measurements on recurring basis \| Level 2 \| Corporate bonds
Fair value of marketable securities
Total debt securities	319,295	411,706
Fair value measurements on recurring basis \| Level 2 \| Other debt securities
Fair value of marketable securities
Total debt securities	$ 205,569	$ 240,888

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

All assets and liabilities acquired from Yahsat have been recorded at fair value. The following table presents our updated preliminary allocation of the purchase price:



	Amounts
Assets:
Cash and cash equivalents	$	7,858
Other current assets, net	7,106
Property and equipment	86,983
Regulatory authorization	4,498
Goodwill	6,328
Other non-current assets, net	1,502
Total assets	$	114,275

Liabilities:
Trade accounts payable	$	3,879
Accrued expenses and other current liabilities	4,796
Total liabilities	$	8,675

Total purchase price ⁽¹⁾	$	105,600

(1) Based on the value determined for the equity ownership interest issued by our Brazilian subsidiary as consideration for the business acquired by us in the Yahsat Brazil JV Transaction.

Schedule of Other Intangible Assets

The following preliminary valuation of the acquired assets was derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation:



	Amounts
Satellite payload	$	49,363
Regulatory authorization	4,498
Total	$	53,861

Business Combinations (Notes)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

BUSINESS COMBINATION

BUSINESS COMBINATIONS

In May 2019, we entered into an agreement with Al Yah Satellite Communications Company PrJSC (“Yahsat”) pursuant to which, in November 2019, Yahsat contributed its satellite communications services business in Brazil to one of our Brazilian subsidiaries in exchange for a 20% equity ownership interest in that subsidiary (the “Yahsat Brazil JV Transaction”). The combined business provides broadband internet services and enterprise solutions in Brazil using the Telesat T19V satellite, the Eutelsat 65W satellite and Yahsat’s Al Yah 3 satellite. The results of operations related to the business we acquired from Yahsat have been included in these Condensed Consolidated Financial Statements from the date of acquisition. Through March 31, 2020, we have incurred $1.6 million of costs associated with the closing of the Yahsat Brazil JV Transaction.

All assets and liabilities acquired from Yahsat have been recorded at fair value. The following table presents our updated preliminary allocation of the purchase price:



	Amounts
Assets:
Cash and cash equivalents	$	7,858
Other current assets, net	7,106
Property and equipment	86,983
Regulatory authorization	4,498
Goodwill	6,328
Other non-current assets, net	1,502
Total assets	$	114,275

Liabilities:
Trade accounts payable	$	3,879
Accrued expenses and other current liabilities	4,796
Total liabilities	$	8,675

Total purchase price ⁽¹⁾	$	105,600

(1) Based on the value determined for the equity ownership interest issued by our Brazilian subsidiary as consideration for the business acquired by us in the Yahsat Brazil JV Transaction.

The following preliminary valuation of the acquired assets was derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation:



	Amounts
Satellite payload	$	49,363
Regulatory authorization	4,498
Total	$	53,861

The satellite payload and regulatory authorization were valued using an income approach and are being amortized over seven and 11 years, respectively.

We recognized goodwill of $6.3 million, including a currency translation adjustment of $1.2 million. The goodwill is attributable to expected synergies, the projected long-term business growth in current and new markets and an assembled workforce. This goodwill has been allocated entirely to our Hughes segment.

Revenue Recognition - Contract Balances with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Trade accounts receivable and contract assets, net:
Total trade accounts receivable	$ 151,482		$ 156,648
Contract assets	46,938		63,649
Allowance for doubtful accounts	(10,608)		(23,777)
Total trade accounts receivable and contract assets, net	187,812		196,520
Contract liabilities:
Current	99,266		101,060
Noncurrent	9,426		10,572
Total contract liabilities	108,692		111,632
Revenue recognized	52,200	$ 39,500
Sales and services
Trade accounts receivable and contract assets, net:
Total trade accounts receivable	147,288		152,632
Leasing
Trade accounts receivable and contract assets, net:
Total trade accounts receivable	$ 4,194		$ 4,016

Supplemental Financial Information - Supplemental and Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$ 49,563	$ 54,277
Cash paid for income taxes	716	652
Non-cash investing and financing activities:
Increase (decrease) in capital expenditures included in accounts payable, net	$ (5,359)	$ (2,163)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax provision	$ (5,231)	$ (4,872)
Effective income tax rate	(41.20%)	94.10%

Supplemental Financial Information - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Jan. 01, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 23,777	$ 16,604
Credit Losses	(5,754)	4,177
Deductions	(6,325)	(6,738)
Foreign Currency Translation	(1,090)	(15)
Balance at End of Period	10,608	$ 14,028
Accounting Standards Update 2016-13
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Other assets			$ 13,400
Other Current Assets
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	0
Credit Losses	1,595
Deductions	0
Foreign Currency Translation	0
Balance at End of Period	1,595
Other noncurrent assets
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	0
Credit Losses	13,379
Deductions	0
Foreign Currency Translation	(358)
Balance at End of Period	$ 13,021

Other Investments - Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 101,601	$ 102,689
Other equity investments	7,351	7,351
Total other investments, net	$ 108,952	$ 110,040