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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549 
FORM 10-Q
(Mark One) 
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021.

OR

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                TO                    

Commission File Number: 333-179121
https://cdn.kscope.io/a62c005d88b80eadef374b199ce7c87f-hssc-20210930_g1.jpg
 Hughes Satellite Systems Corporation
(Exact name of registrant as specified in its charter) 
Colorado 45-0897865
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
100 Inverness Terrace East, Englewood, Colorado
 80112-5308
(Address of principal executive offices) (Zip Code)
(303) 706-4000
Not Applicable
(Registrant’s telephone number, including area code)(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes  No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one):
Large accelerated filer
Accelerated filer 
Emerging growth company
Non-accelerated filer
Smaller reporting company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No  
As of November 2, 2021, the registrant’s outstanding common stock consisted of 1,078 shares of common stock, $0.01 par value per share. 
The Registrant meets the conditions set forth in General Instructions (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Quarterly Report on Form 10-Q with the reduced disclosure format. 
* The Registrant currently is not subject to the filing requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 and is filing this Quarterly Report on Form 10-Q on a voluntary basis. The Registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months as if it were subject to such filing requirements during such period. 


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TABLE OF CONTENTS
 
   
 
Item 3.Quantitative and Qualitative Disclosures about Market Risk*
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds*
Item 3.Defaults Upon Major Securities*
 
*This item has been omitted pursuant to the reduced disclosure format as set forth in General Instructions (H)(2) of Form 10-Q.



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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
 
This Quarterly Report on Form 10-Q (“Form 10-Q”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about our estimates, expectations, future developments, plans, objectives, strategies, financial condition, expected impact of regulatory developments and legal proceedings, opportunities in our industries and businesses and other trends and projections for the next fiscal quarter and beyond. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements may also be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “estimate,” “expect,” “predict,” ”project,” “continue,” “future,” “will,” “would,” “could,” “can,” “may” and similar terms. These forward-looking statements are based on information available to us as of the date of this Form 10-Q and represent management’s current views and assumptions based on past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. Forward-looking statements are not guarantees of future performance, events or results and involve potential known and unknown risks, uncertainties, including the impact of the coronavirus pandemic (COVID-19), and other factors, many of which may be beyond our control and may pose a risk to our operating and financial condition both the near- and long-term. Accordingly, actual performance, events or results could differ materially from those expressed or implied in the forward-looking statements due to a number of factors including, but not limited to:

significant risks related to our ability to operate and control our satellites, operational and environmental risks related to our owned and leased satellites, and risks related to our satellites under construction;
our ability and the ability of third parties with whom we engage to operate our business as a result of the COVID-19 pandemic, including regulatory and competitive considerations;
our ability to implement and/or realize benefits of our investments and other strategic initiatives;
legal proceedings relating to the BSS Transaction or other matters that could result in substantial costs and material adverse effects to our business;
risks related to our foreign operations and other uncertainties associated with doing business internationally;
risks related to our dependency upon third-party providers; and
risks related to our human capital resources.

Other factors that could cause or contribute to such differences include, but are not limited to, those discussed under the caption Risk Factors in Part I, Item 1A of our most recent Annual Report on Form 10-K (“Form 10-K”) filed with the Securities and Exchange Commission (“SEC”), those discussed in Management’s Narrative Analysis of Results of Operations in Part I, Item 2 of this Form 10-Q and in Part II, Item 7 of our Form 10-K and those discussed in other documents we file with the SEC.
 
All cautionary statements made herein should be read as being applicable to all forward-looking statements wherever they appear. Investors should consider the risks and uncertainties described herein and should not place undue reliance on any forward-looking statements. We do not undertake, and specifically disclaim, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, events, levels of activity, performance or achievements. We do not assume responsibility for the accuracy and completeness of any forward-looking statements. We assume no responsibility for updating forward-looking information contained or incorporated by reference herein or in any documents we file with the SEC, except as required by law.

Should one or more of the risks or uncertainties described herein or in any documents we file with the SEC occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

i

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PART I — FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
As of
September 30, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$393,636 $740,490 
Marketable investment securities912,009 1,203,296 
Trade accounts receivable and contract assets, net201,751 183,988 
Other current assets, net287,733 291,815 
Total current assets1,795,129 2,419,589 
Non-current assets:
Property and equipment, net1,568,629 1,691,523 
Operating lease right-of-use assets140,606 128,266 
Goodwill511,266 511,597 
Regulatory authorizations, net409,206 410,451 
Other intangible assets, net14,355 18,340 
Other investments, net92,376 103,924 
Other non-current assets, net310,246 307,677 
Total non-current assets3,046,684 3,171,778 
Total assets$4,841,813 $5,591,367 
Liabilities and Shareholder's Equity
Current liabilities:
Trade accounts payable$104,794 $118,568 
Current portion of long-term debt, net 898,237 
Contract liabilities134,635 104,569 
Accrued expenses and other current liabilities268,925 325,587 
Total current liabilities508,354 1,446,961 
Non-current liabilities:
Long-term debt, net1,495,805 1,495,256 
Deferred tax liabilities, net403,610 369,940 
Operating lease liabilities127,323 114,877 
Other non-current liabilities152,697 87,957 
Total non-current liabilities2,179,435 2,068,030 
Total liabilities2,687,789 3,514,991 
Commitments and contingencies

The accompanying notes are an integral part of these Consolidated Financial Statements.
1

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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
(Unaudited)

Shareholder's equity:
Preferred stock, $0.001 par value,1,000,000 shares authorized, none issued and outstanding at both September 30, 2021 and December 31, 2020
  
Common stock, $0.01 par value, 1,000,000 shares authorized, 1,078 shares issued and outstanding at both September 30, 2021 and December 31, 2020
  
Additional paid-in capital1,489,059 1,486,730 
Accumulated other comprehensive income (loss)(166,208)(146,840)
Accumulated earnings (losses)765,634 671,570 
Total Hughes Satellite Systems Corporation shareholder's equity2,088,485 2,011,460 
Non-controlling interests65,539 64,916 
Total shareholder's equity2,154,024 2,076,376 
Total liabilities and shareholder's equity$4,841,813 $5,591,367 







































The accompanying notes are an integral part of these Consolidated Financial Statements.
2

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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands)
(Unaudited)
For the three months ended September 30,For the nine months ended September 30,
2021202020212020
Revenue:
Services and other revenue $434,648 $428,890 $1,300,956 $1,258,350 
Equipment revenue71,920 46,970 192,715 146,702 
Total revenue506,568 475,860 1,493,671 1,405,052 
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)136,176 145,408 405,138 429,246 
Cost of sales - equipment (exclusive of depreciation and amortization)62,326 37,074 161,968 115,524 
Selling, general and administrative expenses103,455 105,309 311,841 324,400 
Research and development expenses7,974 7,676 22,960 21,378 
Depreciation and amortization113,722 123,145 348,689 372,588 
Impairment of long-lived assets  210  
Total costs and expenses423,653 418,612 1,250,806 1,263,136 
Operating income (loss)82,915 57,248 242,865 141,916 
Other income (expense):
Interest income, net2,032 2,839 6,108 16,935 
Interest expense, net of amounts capitalized(23,943)(44,177)(102,948)(130,644)
Gains (losses) on investments, net8 (74)2,102 (222)
Equity in earnings (losses) of unconsolidated affiliates, net(1,167)(2,422)(4,197)(4,878)
Foreign currency transaction gains (losses), net(6,297)3,072 (9,122)(4,596)
Other, net664 195 1,680 (470)
Total other income (expense), net(28,703)(40,567)(106,377)(123,875)
Income (loss) before income taxes54,212 16,681 136,488 18,041 
Income tax benefit (provision), net(19,857)(5,199)(48,843)(24,098)
Net income (loss)34,355 11,482 87,645 (6,057)
Less: Net loss (income) attributable to non-controlling interests3,192 2,167 6,419 9,040 
Net income (loss) attributable to HSSC$37,547 $13,649 $94,064 $2,983 








The accompanying notes are an integral part of these Consolidated Financial Statements.
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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands)
(Unaudited)
For the three months ended September 30,For the nine months ended September 30,
 2021202020212020
Net income (loss)$34,355 $11,482 $87,645 $(6,057)
Other comprehensive income (loss), net of tax:  
Foreign currency translation adjustments(30,215)(10,170)(21,897)(103,351)
Unrealized gains (losses) on available-for-sale securities (235)20 (205)(189)
Other(99)500 (99)380 
Amounts reclassified to net income (loss):
Realized losses (gains) on available-for-sale debt securities(5) (5) 
Total other comprehensive income (loss), net of tax(30,554)(9,650)(22,206)(103,160)
Comprehensive income (loss)3,801 1,832 65,439 (109,217)
Less: Comprehensive loss (income) attributable to non-controlling interests8,760 4,098 9,257 29,667 
Comprehensive income (loss) attributable to HSSC$12,561 $5,930 $74,696 $(79,550)































The accompanying notes are an integral part of these Consolidated Financial Statements.
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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(Amounts in thousands) 
(Unaudited)
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Earnings (Losses)
Non-controlling
Interests
Total
Balance, June 30, 2020$1,484,359 $(159,450)$651,580 $58,425 $2,034,914 
Stock-based compensation983 — — — 983 
Contribution by non-controlling interest holder— — — 4,268 4,268 
Other comprehensive income (loss)— (7,719)— (1,931)(9,650)
Net income (loss)— — 13,649 (2,167)11,482 
Other, net(117)— — (21)(138)
Balance, September 30, 2020$1,485,225 $(167,169)$665,229 $58,574 $2,041,859 
Balance, June 30, 2021$1,488,314 $(141,222)$728,087 $74,299 $2,149,478 
Stock-based compensation745 — — — 745 
Other comprehensive income (loss)— (24,986)— (5,568)(30,554)
Net income (loss)— — 37,547 (3,192)34,355 
Balance, September 30, 2021$1,489,059 $(166,208)$765,634 $65,539 $2,154,024 
The accompanying notes are an integral part of these Consolidated Financial Statements.
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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(Amounts in thousands) 
(Unaudited)
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Earnings (Losses)
Non-controlling
Interests
Total
Balance, December 31, 2019$1,478,636 $(84,636)$664,415 $75,748 $2,134,163 
Cumulative effect of accounting changes— — (2,169)(240)(2,409)
Balance, January 1, 20201,478,636 (84,636)662,246 75,508 2,131,754 
Stock-based compensation2,919 — — — 2,919 
Issuance of equity and contribution of assets pursuant to the Yahsat JV formation4,338 — — (1,514)2,824 
Contribution by non-controlling interest holder— — — 14,268 14,268 
Other comprehensive income (loss)— (82,533)— (20,627)(103,160)
Net income (loss)— — 2,983 (9,040)(6,057)
Other, net(668)— — (21)(689)
Balance, September 30, 2020$1,485,225 $(167,169)$665,229 $58,574 $2,041,859 
Balance, December 31, 2020$1,486,730 $(146,840)$671,570 $64,916 $2,076,376 
Stock-based compensation2,329 — — — 2,329 
Contribution by non-controlling interest holder— — — 9,880 9,880 
Other comprehensive income (loss)— (19,368)— (2,838)(22,206)
Net income (loss)— — 94,064 (6,419)87,645 
Balance, September 30, 2021$1,489,059 $(166,208)$765,634 $65,539 $2,154,024 
 













The accompanying notes are an integral part of these Consolidated Financial Statements.
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HUGHES SATELLITE SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
For the nine months ended September 30,
20212020
Cash flows from operating activities:  
Net income (loss)$87,645 $(6,057)
Adjustments to reconcile net income (loss) to cash flows provided by (used for) operating activities:  
Depreciation and amortization348,689 372,588 
Impairment of long-lived assets210  
Losses (gains) on investments, net(2,102)222 
Equity in losses (earnings) of unconsolidated affiliates, net4,197 4,878 
Foreign currency transaction losses (gains), net9,122 4,596 
Deferred tax provision (benefit), net32,667 16,608 
Stock-based compensation2,329 4,203 
Amortization of debt issuance costs2,192 3,212 
Other, net17,548 376 
Changes in assets and liabilities, net:
Trade accounts receivable and contract assets, net(20,888)(14,097)
Other current assets, net(276)(363)
Trade accounts payable(13,452)(11,557)
Contract liabilities30,066 (11,438)
Accrued expenses and other current liabilities(106,604)25,300 
Non-current assets and non-current liabilities, net65,177 (33,652)
Net cash provided by (used for) operating activities456,520 354,819 
Cash flows from investing activities:  
Purchases of marketable investment securities(1,329,862)(1,611,870)
Sales and maturities of marketable investment securities1,669,757 843,294 
Expenditures for property and equipment(228,641)(263,884)
Expenditures for externally marketed software(25,634)(27,824)
Sales of other investments9,451  
Net cash provided by (used for) investing activities95,071 (1,060,284)
Cash flows from financing activities:
Repurchase and maturity of the 2021 Senior Unsecured Notes(901,818) 
Contribution by non-controlling interest holder9,880 14,268 
Payment of in-orbit incentive obligations(1,800)(1,268)
Payment of finance lease obligations(578)(606)
Other, net(966)998 
Net cash provided by (used for) financing activities(895,282)13,392 
Effect of exchange rates on cash and cash equivalents(2,986)(3,727)
Net increase (decrease) in cash and cash equivalents(346,677)(695,800)
Cash and cash equivalents, including restricted amounts, beginning of period741,297 1,140,322 
Cash and cash equivalents, including restricted amounts, end of period$394,620 $444,522 

The accompanying notes are an integral part of these Consolidated Financial Statements.
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HUGHES SATELLITE SYSTEMS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1.    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 United States (“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, Information Technology, Finance, Accounting, Real Estate and Legal) and other activities, such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments, that have not been assigned to our business segments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in our segment reporting. 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) Other (Asia, Africa, Australia, Europe, India, and the Middle East). Refer to Note 14. Segment Reporting for further detail.

NOTE 2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation
 
These unaudited Consolidated Financial Statements and the accompanying notes (collectively, the “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 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.

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HUGHES SATELLITE SYSTEMS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(Unaudited)



Use of Estimates
 
We are required to make certain estimates and assumptions that affect the amounts reported in these 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 financial statements. Additionally, changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods.

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.

Recently Adopted Accounting Pronouncements

On January 1, 2021, we adopted Accounting Standard Update (“ASU”) No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is part of the Financial Accounting Standards Board (“FASB”) overall simplification initiative and seeks to simplify the accounting for income taxes by updating certain guidance and removing certain exceptions. Our adoption of this ASU did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

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 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 expect to utilize the optional expedients provided by the guidance for contracts amended solely to use an alternative reference rate. We have evaluated the impact of adopting this new guidance and do not expect it to have a material impact on our Consolidated Financial Statements.

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HUGHES SATELLITE SYSTEMS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(Unaudited)



NOTE 3.     REVENUE RECOGNITION

Contract Balances

The following table presents the components of our contract balances:
 As of
September 30, 2021December 31, 2020
Trade accounts receivable and contract assets, net:
Sales and services$167,048 $149,513 
Leasing5,662 4,553 
Total trade accounts receivable172,710 154,066 
Contract assets42,839 45,308 
Allowance for doubtful accounts(13,798)(15,386)
Total trade accounts receivable and contract assets, net$201,751 $183,988 
Contract liabilities:
Current$134,635 $104,569 
Non-current9,746 10,519 
Total contract liabilities$144,381 $115,088 

The following table presents the revenue recognized in the Consolidated Statements of Operations that was previously included within contract liabilities:

For the three months ended September 30,For the nine months ended September 30,
2021202020212020
Revenue$16,521 $3,794 $81,543 $63,581 

Contract Acquisition Costs

The following table presents the activity in our contract acquisition costs, net:

For the nine months ended September 30,
20212020
Balance at beginning of period$99,837 $113,592 
Additions54,701 68,589 
Amortization expense(66,815)(75,429)
Foreign currency translation(828)(2,984)
Balance at end of period$86,895 $103,768 

We recognized amortization expenses related to contract acquisition costs of $21.6 million and $25.7 million for the
three months ended September 30, 2021 and 2020, respectively.

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HUGHES SATELLITE SYSTEMS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(Unaudited)



Performance Obligations

As of September 30, 2021, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $890.0 million. Performance obligations expected to be satisfied within one year and greater than one year are 46% and 54%, respectively. This amount and percentages exclude 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:
HughesESSCorporate and OtherConsolidated
Total
For the three months ended September 30, 2021
North America$412,805 $4,436 $(89)$417,152 
South and Central America44,898   44,898 
Other39,234  5,284 44,518 
Total revenue$496,937 $4,436 $5,195 $506,568 
For the three months ended September 30, 2020
North America$392,950 $4,402 $(281)$397,071 
South and Central America38,578   38,578 
Other35,234  4,977 40,211 
Total revenue$466,762 $4,402 $4,696 $475,860 
For the nine months ended September 30, 2021
North America$1,216,665 $12,808 $(265)$1,229,208 
South and Central America134,924   134,924 
Other113,484  16,055 129,539 
Total revenue$1,465,073 $12,808 $15,790 $1,493,671 
For the nine months ended September 30, 2020
North America$1,160,288 $13,233 $(959)$1,172,562 
South and Central America106,495   106,495 
Other111,633  14,362 125,995 
Total revenue$1,378,416 $13,233 $13,403 $1,405,052 

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HUGHES SATELLITE SYSTEMS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(Unaudited)



Nature of Products and Services

The following tables present our revenue disaggregated by the nature of products and services and by segment:

HughesESSCorporate and OtherConsolidated
Total
For the three months ended September 30, 2021
Services and other revenue:
Services$415,287 $2,976 $ $418,263 
Lease revenue9,730 1,460 5,195 16,385 
Total services and other revenue425,017 4,436 5,195 434,648 
Equipment revenue:
Equipment24,504   24,504 
Design, development and construction services45,025