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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Mar. 20, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	DISH DBS CORP
Entity Central Index Key	0001042642
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		1,015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 776,800	$ 419,926
Marketable investment securities	3,833	141,335
Trade accounts receivable, net of allowance for doubtful accounts of $16,996 and $20,972, respectively	715,766	822,505
Inventory	464,808	390,253
Other current assets	98,483	115,205
Total current assets	2,059,690	1,889,224
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities	82,360	82,374
Property and equipment, net	1,793,479	2,150,340
FCC authorizations	635,794	635,794
Other investment securities	324,371	327,250
Other noncurrent assets, net	223,767	219,574
Total noncurrent assets	3,059,771	3,415,332
Total assets	5,119,461	5,304,556
Current Liabilities:
Trade accounts payable	485,532	433,349
Deferred revenue and other	750,245	843,638
Accrued programming	1,542,036	1,531,389
Accrued interest	265,207	224,513
Other accrued expenses	418,602	430,820
Current portion of long-term debt and capital lease obligations	934,509	1,531,928
Total current liabilities	4,396,131	4,995,637
Long-Term Obligations, Net of Current Portion:
Long-term debt and capital lease obligations, net of current portion	13,274,119	12,206,687
Deferred tax liabilities	986,859	1,089,016
Long-term deferred revenue and other long-term liabilities	219,931	164,682
Total long-term obligations, net of current portion	14,480,909	13,460,385
Total liabilities	18,877,040	18,456,022
Commitments and Contingencies (Note 8)
Redeemable noncontrolling interests	10,994	18,000
Stockholder's Equity (Deficit):
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding
Additional paid-in capital	1,305,834	1,309,138
Accumulated other comprehensive income (loss)	(116)	12,039
Accumulated earnings (deficit)	(15,076,224)	(14,492,752)
Total DISH DBS stockholder's equity (deficit)	(13,770,506)	(13,171,575)
Noncontrolling interests	1,933	2,109
Total stockholder's equity (deficit)	(13,768,573)	(13,169,466)
Total liabilities and stockholder's equity (deficit)	$ 5,119,461	$ 5,304,556

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Allowance for doubtful accounts on trade accounts receivable	$ 16,996	$ 20,972
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	1,015	1,015

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Subscriber-related revenue	$ 14,578,414	$ 14,524,510	$ 14,130,607
Equipment sales and other revenue	58,629	113,739	146,806
Total revenue	14,637,043	14,638,249	14,277,413
Costs and Expenses (exclusive of depreciation shown separately below - Note 6):
Subscriber-related expenses	8,613,705	8,511,404	8,066,642
Satellite and transmission expenses	740,224	753,853	685,732
Cost of sales - equipment, services and other	63,334	91,653	106,037
Subscriber acquisition costs:
Cost of sales - subscriber promotion subsidies	145,941	173,331	231,064
Other subscriber acquisition costs	666,482	849,999	912,718
Subscriber acquisition advertising	588,805	552,278	528,642
Total subscriber acquisition costs	1,401,228	1,575,608	1,672,424
General and administrative expenses	753,204	745,366	762,146
Depreciation and amortization (Note 6)	864,379	907,687	956,101
Total costs and expenses	12,436,074	12,585,571	12,249,082
Operating income (loss)	2,200,969	2,052,678	2,028,331
Other Income (Expense):
Interest income	6,532	5,606	35,810
Interest expense, net of amounts capitalized	(825,615)	(862,231)	(834,856)
Other, net	30,672	14,480	(3,394)
Total other income (expense)	(788,411)	(842,145)	(802,440)
Income (loss) before income taxes	1,412,558	1,210,533	1,225,891
Income tax (provision) benefit, net	(528,777)	(447,640)	(410,831)
Net income (loss)	883,781	762,893	815,060
Less: Net income (loss) attributable to noncontrolling interests, net of tax	(32,747)	(17,242)	(9,825)
Net income (loss) attributable to DISH DBS	916,528	780,135	824,885
Comprehensive Income (Loss):
Net income (loss)	883,781	762,893	815,060
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities	(1,488)	(23,468)	27,819
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(18,357)
Deferred income tax (expense) benefit, net	7,690	7,124	(10,625)
Total other comprehensive income (loss), net of tax	(12,155)	(16,344)	17,194
Comprehensive income (loss)	871,626	746,549	832,254
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax	(32,747)	(17,242)	(9,825)
Comprehensive income (loss) attributable to DISH DBS	$ 904,373	$ 763,791	$ 842,079

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Earnings (Deficit)	Noncontrolling Interest	Redeemable Noncontrolling Interest	Total
Balance at Dec. 31, 2013	$ 1,300,101	$ 11,189	$ (5,697,772)	$ 2,582		$ (4,383,900)
Increase (Decrease) in Stockholder's Equity
Dividends to DISH Orbital Corporation (Note 15)			(2,150,000)			(2,150,000)
Non-cash, stock-based compensation	33,969			28	$ 27	33,997
Income tax (expense) benefit related to stock awards and other	23,022			(691)		22,331
Change in unrealized holding gains (losses) on available-for-sale securities, net		27,819				27,819
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		(10,625)				(10,625)
Capital distribution to EchoStar, net of deferred taxes of $31,274	(51,466)					(51,466)
Capital distribution to EchoStar, net of deferred taxes of $3,542	(5,845)			(6,118)		(11,963)
Deemed distribution to - initial fair value of redeemable noncontrolling interest, net of deferred taxes	(14,011)				22,500	(14,011)
Sling TV contribution from parent	(9,569)			12,612		3,043
Net income (loss) attributable to noncontrolling interest excluding redeemable noncontrolling interest				(7,211)	(2,614)	(7,211)
Net income (loss) attributable to DISH DBS			824,885			824,885
Balance at Dec. 31, 2014	1,276,201	28,383	(7,022,887)	1,202	19,913	(5,717,101)
Increase (Decrease) in Stockholder's Equity
Dividends to DISH Orbital Corporation (Note 15)			(8,250,000)			(8,250,000)
Non-cash, stock-based compensation	19,072				127	19,072
Income tax (expense) benefit related to stock awards and other	23,463			691		24,154
Change in unrealized holding gains (losses) on available-for-sale securities, net		(23,468)				(23,468)
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		7,124				7,124
Revaluation of EchoStar's interest in Sling TV to redemption value, net of deferred taxes	(9,598)				15,418	(9,598)
Net income (loss) attributable to noncontrolling interest excluding redeemable noncontrolling interest				216	(17,458)	216
Net income (loss) attributable to DISH DBS			780,135			780,135
Balance at Dec. 31, 2015	1,309,138	12,039	(14,492,752)	2,109	18,000	(13,169,466)
Increase (Decrease) in Stockholder's Equity
Dividends to DISH Orbital Corporation (Note 15)			(1,500,000)			(1,500,000)
Non-cash, stock-based compensation	12,826				211	12,826
Change in unrealized holding gains (losses) on available-for-sale securities, net		(19,845)				(19,845)
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		7,690				7,690
Revaluation of EchoStar's interest in Sling TV to redemption value, net of deferred taxes	(16,130)				25,954	(16,130)
Net income (loss) attributable to noncontrolling interest excluding redeemable noncontrolling interest				424	(33,171)	424
Net income (loss) attributable to DISH DBS			916,528			916,528
Other				(600)		(600)
Balance at Dec. 31, 2016	$ 1,305,834	$ (116)	$ (15,076,224)	$ 1,933	$ 10,994	$ (13,768,573)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT)
Deferred taxes on capital distribution to EchoStar - Satellite and tracking stock transaction			$ 31,274
Deferred tax in capital distribution to EchoStar			3,542
Deferred tax in deemed distribution of redeemable noncontrolling interest			$ 8,489
Revaluation of EchoStar's interest in Sling TV to redemption value, deferred taxes	$ 9,824	$ 5,820

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net income (loss)	$ 883,781	$ 762,893	$ 815,060
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	864,379	907,687	956,101
Realized and unrealized losses (gains) on investments	(32,509)
Non-cash, stock-based compensation	13,037	19,199	34,024
Deferred tax expense (benefit)	(84,845)	(108,821)	87,587
Other, net	62,451	(29,835)	40,274
Changes in current assets and current liabilities:
Trade accounts receivable	110,714	82,229	2,202
Allowance for doubtful accounts	(3,975)	(2,548)	7,539
Inventory	(48,097)	115,570	(11,718)
Other current assets	16,722	14,833	14,373
Trade accounts payable	52,183	45,151	(245,677)
Deferred revenue and other	(93,393)	(21,571)	39,303
Accrued programming and other accrued expenses	41,828	165,881	57,939
Net cash flows from operating activities	1,782,276	1,950,668	1,797,007
Cash Flows From Investing Activities:
(Purchases) Sales and maturities of marketable investment securities, net	136,014	1,250,791	2,744,000
Purchases of property and equipment	(533,379)	(646,607)	(822,121)
Other, net	12,993	1,952	(4,941)
Net cash flows from investing activities	(384,372)	606,136	1,916,938
Cash Flows From Financing Activities:
Proceeds from issuance of senior notes (Note 7)	2,000,000		2,000,000
Dividend to DISH Orbital Corporation	(1,500,000)	(8,250,000)	(2,150,000)
Redemption and repurchases of senior notes (Note 7)	(1,500,000)	(650,001)	(1,099,999)
Repayment of long-term debt and capital lease obligations	(32,754)	(29,206)	(29,649)
Other, net	(8,276)	30,189	33,368
Net cash flows from financing activities	(1,041,030)	(8,899,018)	(1,246,280)
Net increase (decrease) in cash and cash equivalents	356,874	(6,342,214)	2,467,665
Cash and cash equivalents, beginning of period	419,926	6,762,140	4,294,475
Cash and cash equivalents, end of period	$ 776,800	$ 419,926	$ 6,762,140

Organization and Business Activities	12 Months Ended
Organization and Business Activities	Dec. 31, 2016
Organization and Business Activities
Organization and Business Activities	1.Organization and Business Activities Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. We offer pay-TV services under the DISH® brand and the Sling® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, third-party broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). The Sling International video programming service (formerly known as DishWorld) was launched prior to 2015, which historically represented a small percentage of our Pay-TV subscribers. In February and June 2015, we launched our Sling domestic and Sling Latino services, respectively. In addition to our original Sling domestic service that could only be streamed on one device at a time (single-stream service), in April 2016, we launched a live beta multi-stream Sling domestic service, which includes, among other things, the ability to stream on up to three devices simultaneously. In June 2016, our multi-stream Sling domestic service transitioned from its introductory beta period and was re-branded as Sling Blue. Meanwhile, we re-branded our original single-stream Sling domestic service as Sling Orange. All Sling branded pay-TV subscribers are included in our Pay-TV subscriber count. As of December 31, 2016, we had 13.671 million Pay-TV subscribers in the United States.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.

Redeemable Noncontrolling Interests

Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest was redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest was redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest was considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal had been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding has been adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar have been recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). On January 31, 2017, we entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with EchoStar pursuant to which, among other things, EchoStar transferred its ten percent non-voting interest in Sling TV Holding to us. On February 28, 2017, we and EchoStar completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange”). As a result, we own 100% of Sling TV Holding, and EchoStar no longer has any interest in Sling TV Holding. See Note 15 for further information on Sling TV Holding, the Exchange Agreement and the Share Exchange.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur.

Cash and Cash Equivalents

We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2016 and 2015 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value.

Marketable Investment Securities

We currently classify all marketable investment securities as available-for-sale. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment.

We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things:

the fair value of our marketable investment securities compared to the carrying amount,

the historical volatility of the price of each security, and

any market and company specific factors related to each security.

Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows:


Length of Time Investment
Has Been In a Continuous		Treatment of the Decline in Value
Loss Position		(absent specific factors to the contrary)
Less than six months		Generally, considered temporary.
Six to nine months		Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary.
Greater than nine months		Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings.

Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply:

we have the intent to sell the security,

it is more likely than not that we will be required to sell the security before maturity or recovery, or

we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security.

In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities.

Trade Accounts Receivable

Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections.

Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Net realizable value is calculated as the estimated selling price less reasonable costs necessary to complete, sell, transport and dispose of the inventory.

Property and Equipment

Property and equipment are stated at amortized cost less impairment losses, if any. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized.

Impairment of Long-Lived Assets

We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. See Note 6 for further information.

DBS Satellites. We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2016.

Indefinite-Lived Intangible Assets

We do not amortize indefinite lived intangible assets, but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following:

FCC licenses are a non-depleting asset;

existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely;

replacement DBS satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment;

maintenance expenditures to obtain future cash flows are not significant;

FCC licenses are not technologically dependent; and

we intend to use these assets indefinitely.

DBS FCC Licenses. We combine all of our indefinite-lived DBS FCC licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2016 and 2015, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. In our assessment, we considered several qualitative factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. As such, no further analysis was required.

The DBS FCC licenses were assessed quantitatively in 2014. Our quantitative assessments consisted of a discounted cash flow analysis encompassing future cash flows from satellites transmitting from such licensed orbital locations, including revenue attributable to programming offerings from such satellites, the direct operating and subscriber acquisition costs related to such programming, and future capital costs for replacement satellites. Projected revenue and cost amounts included projected subscribers. In conducting our annual impairment test in 2014, we determined that the fair value of the DBS FCC licenses exceeded its carrying amount.

Other Investment Securities

Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment.

Long-Term Deferred Revenue and Other Long-Term Liabilities

Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Subscriber-related expenses” on a straight-line basis over the relevant remaining contract term (generally up to ten years). The current and long-term portions of these deferred credits are recorded in our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively.

Sales Taxes

We account for sales taxes imposed on our goods and services on a net basis in our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity.

Income Taxes

We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized.

Accounting for Uncertainty in Income Taxes

From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Fair Value Measurements

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

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

Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and

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

As of December 31, 2016 and 2015, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities.

Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt.

Deferred Debt Issuance Costs

Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information.

Revenue Recognition

We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered.

Revenue from our Pay-TV services are recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” in our Consolidated Balance Sheets until earned.

For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed.

Subscriber fees for DISH branded pay-TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales and equipment upgrades is recognized upon shipment to customers. Revenue from sales of streaming-capable devices for our Sling branded pay-TV services are recognized over the promotion period.

Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber.

We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time.

Subscriber-Related Expenses

The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. “Subscriber-related expenses” in the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred.

Subscriber Acquisition Costs

Subscriber acquisition costs in our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third parties and our direct sales distribution channel. Subscriber acquisition costs include the following line items from our Consolidated Statements of Operations and Comprehensive Income (Loss):

“Cost of sales — subscriber promotion subsidies” includes the cost of our DBS receiver systems sold to independent third-party retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH branded pay-TV subscribers.

“Other subscriber acquisition costs” includes net costs related to promotional incentives and costs related to installation and other promotional subsidies for our DISH branded pay-TV service as well as our direct sales efforts and commissions for our Sling branded pay-TV services.

“Subscriber acquisition advertising” includes advertising and marketing expenses related to the acquisition of new Pay-TV subscribers. Advertising costs are expensed as incurred.

We characterize amounts paid to our independent third-party retailers as consideration for equipment installation services and for equipment buydowns (incentives and rebates) as a reduction of revenue. We expense payments for equipment installation services as “Other subscriber acquisition costs.” Our payments for equipment buydowns represent a partial or complete return of the independent third-party retailer’s purchase price and are, therefore, netted against the proceeds received from the independent third-party retailer. We report the net cost from our various sales promotions through our independent third-party retailer network as a component of “Other subscriber acquisition costs.”

Equipment Lease Programs

DISH branded pay-TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH branded pay-TV service. Most of our new DISH branded pay-TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH branded pay-TV subscribers is capitalized and depreciated over their estimated useful lives.

New Accounting Pronouncements

Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (“ASU 2014-09”), and has modified the standard thereafter. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected an adoption method. While we have not determined the effect of the standard on our ongoing financial reporting, we believe that the standard will, among other things, change the allocation and timing of when revenue is recognized for those customers who have a contractual commitment to receive service for a minimum term, including time-limited discounts or free service periods. Under current accounting rules, we recognize revenue net of discounts during the promotional periods and do not recognize any revenue during free service periods. Under ASU 2014-09, revenue recognition will be accelerated for these contracts as the impact of discounts or free service periods that are considered performance obligations will be recognized uniformly over the total contractual period. In addition, the standard will require that incremental costs to obtain a customer, which represent a significant portion of our non-advertising subscriber acquisition costs, be deferred and recognized over the expected customer life, whereas our current policy is to expense these costs as incurred. As the new standard will impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems, our evaluation of the effect of the new standard is ongoing. We are currently in the process of identifying and implementing changes to our systems, processes, and internal controls to meet the requirements of the standard. The ultimate impact of adopting ASU 2014-09 for both revenue recognition and costs to obtain and fulfill contracts will depend on the promotions and offers in place during the period leading up to and after the adoption of ASU 2014-09.

Recognition and Measurement of Financial Assets and Financial Liabilities. On January 5, 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our consolidated financial statements.

Leases. On February 25, 2016, the FASB issued ASU 2016-02 Leases (“ASU 2016-02”), which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements.

Financial Instruments – Credit Losses. On June 16, 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. This standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2016-13 will have on our consolidated financial statements and related disclosures.

Statement of Cash Flows - Update. On August 26, 2016, the FASB issued 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This update consists of eight provisions that provide guidance on the classification of certain cash receipts and cash payments. If practicable, this update should be applied using a retrospective transition method to each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This update will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2016-15 will have on our consolidated financial statements.

Statement of Cash Flows: Restricted Cash. On November 17, 2016, the FASB issued ASU 2016-18 Restricted Cash (“ASU 2016-18”), which addresses the diversity where changes in restricted cash are classified on the cash flow statement. ASU 2016-18 requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-18 will have an immaterial impact on our consolidated financial statements and related disclosures.

Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. During the third quarter 2016, we adopted ASU 2016-09, which had an immaterial impact on our consolidated financial statements.

Supplemental Data - Statements of Cash Flows

12 Months Ended

Dec. 31, 2016

Supplemental Data - Statements of Cash Flows

Supplemental Data - Statements of Cash Flows

3.Supplemental Data - Statements of Cash Flows

The following table presents our supplemental cash flow and other non-cash data.


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Cash paid for interest	$	773,500	$	852,679	$	832,654
Cash received for interest		2,932		5,606		34,534
Cash paid for income taxes		25,839		2,632		18,186
Cash paid for income taxes to DISH Network		551,693		558,220		279,234
Satellites and other assets financed under capital lease obligations		1,328		—		3,462
Satellite and Tracking Stock Transaction with EchoStar:
Transfer of property and equipment, net		-		—		432,080
Investment in EchoStar and HSSC preferred tracking stock - cost method		-		—		316,204
Transfer of liabilities and other		-		—		44,540
Capital distribution to EchoStar, net of deferred taxes of $31,274		-		—		51,466
Sling TV Exchange Transaction with EchoStar:
Transfer of property and equipment, net		-		—		8,978
Transfer of investments and intangibles, net		-		—		25,097
Capital distribution to EchoStar, net of deferred taxes of $3,542		-		—		5,845
Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489		-		—		14,011

Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities.

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

12 Months Ended

Dec. 31, 2016

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

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

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

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


	As of December 31,
	2016		2015
	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	3,833	$	141,335
Restricted marketable investment securities (1)		81,679		82,280
Total marketable investment securities		85,512		223,615

Restricted cash and cash equivalents (1)		681		94

Other investment securities:
Investment in EchoStar preferred tracking stock - cost method		228,795		228,795
Investment in HSSC preferred tracking stock - cost method		87,409		87,409
Other investment securities - cost method		8,167		11,046
Total other investment securities		324,371		327,250

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	410,564	$	550,959

(1)

Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets.

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale. See Note 2 for further information.

Current Marketable Investment Securities

Our current marketable investment securities portfolio includes investments in equity securities and various debt instruments including, among others, commercial paper, corporate securities and U.S. treasury and/or agency securities.

Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days. Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months. U. S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies.

Restricted Cash, Cash Equivalents and Marketable Investment Securities

As of December 31, 2016 and 2015, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit.

Other Investment Securities

We have strategic investments in certain debt and equity securities that are included in noncurrent “Other investment securities” on our Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting.

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

Investment in Tracking Stock

On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and Hughes Satellite Systems Corporation (“HSSC”), a subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV (collectively the “Transferred Satellites”), including related in-orbit incentive obligations and cash interest payments of approximately $59 million), and approximately $11 million in cash in exchange for an aggregate of 6,290,499 shares of a series of preferred tracking stock issued by EchoStar (the “EchoStar Tracking Stock”) and an aggregate of 81.128 shares of a series of preferred tracking stock issued by HSSC (the “HSSC Tracking Stock” and together with the EchoStar Tracking Stock, collectively, the “Tracking Stock”); and (ii) beginning on March 1, 2014, we lease back certain satellite capacity on the Transferred Satellites (collectively, the “Satellite and Tracking Stock Transaction”). As of November 30, 2015, we no longer lease satellite capacity on the EchoStar I satellite. The Tracking Stock generally tracks the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of HSSC, including without limitation the operations, assets and liabilities attributed to the Hughes residential retail satellite broadband business (collectively, the “Hughes Retail Group”). The shares of the Tracking Stock issued to us represent an aggregate 80% economic interest in the Hughes Retail Group.

Since the Satellite and Tracking Stock Transaction was among entities under common control, we recorded the Tracking Stock at EchoStar’s and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. Although our investment in the Tracking Stock represented an aggregate 80% economic interest in the Hughes Retail Group, we had no operational control or significant influence over the Hughes Retail Group business, and there was no public market for the Tracking Stock. As such, the Tracking Stock was accounted for under the cost method of accounting.

On January 31, 2017, we entered into the Share Exchange Agreement with EchoStar pursuant to which, among other things, we transferred the EchoStar Tracking Stock to EchoStar and the HSSC Tracking Stock to HSSC. On February 28, 2017, we and EchoStar completed the Share Exchange. As a result, we no longer hold EchoStar Tracking Stock or HSSC Tracking Stock. See Note 15 for further information.

Unrealized Gains (Losses) on Marketable Investment Securities

As of December 31, 2016 and 2015, we had accumulated net unrealized losses of less than $1 million and net unrealized gains of $20 million, respectively. These amounts, net of related tax effect, were less than $1 million and $12 million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below.


	As of December 31,
	2016								2015
	Marketable								Marketable
	Investment		Unrealized						Investment		Unrealized
	Securities		Gains		Losses		Net		Securities		Gains		Losses		Net
	(In thousands)
Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,982	$	13	$	(132)	$	(119)	$	82,124	$	2	$	(135)	$	(133)
Corporate securities		3,530		3		—		3		90,838		3		(174)		(171)
Other		—		—		—		—		17,382		—		(2)		(2)
Equity securities		—		—		—		—		33,271		20,034		—		20,034
Total	$	85,512	$	16	$	(132)	$	(116)	$	223,615	$	20,039	$	(311)	$	19,728

As of December 31, 2016, restricted and non-restricted marketable investment securities included debt securities of $51 million with contractual maturities within one year and $35 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity.

Marketable Investment Securities in a Loss Position

The following table reflects the length of time that the individual securities, accounted for as available-for-sale, have been in an unrealized loss position, aggregated by investment category. As of December 31, 2016, the unrealized losses related to our investments in debt securities primarily represented investments in U.S. treasury and agency securities. We have the ability to hold and do not intend to sell our investments in these debt securities before they recover or mature, and it is more likely than not that we will hold these investments until that time. In addition, we are not aware of any specific factors indicating that the underlying issuers of these debt securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these marketable investment securities are related to temporary market fluctuations.


	As of December 31,
	2016				2015
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
	(In thousands)
Debt Securities:
Less than 12 months	$	51,796	$	(131)	$	153,580	$	(306)
12 months or more		1,410		(1)		5,782		(5)
Total	$	53,206	$	(132)	$	159,362	$	(311)

Fair Value Measurements

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


	As of December 31,
	2016								2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	702,331	$	4,126	$	698,205	$	—	$	307,406	$	25,814	$	281,592	$	—

Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,982	$	81,982	$	—		—	$	82,124	$	77,328	$	4,796	$	—
Corporate securities		3,530		—		3,530		—		90,838		—		90,838		—
Other		—		—		—		—		17,382		—		17,382		—
Equity securities		—		—		—		—		33,271		33,271		—		—
Total	$	85,512	$	81,982	$	3,530	$	—	$	223,615	$	110,599	$	113,016	$	—

During the years ended December 31, 2016 and 2015, we had no transfers in or out of Level 1 and Level 2 fair value measurements.

Inventory

12 Months Ended

Dec. 31, 2016

Inventory

Inventory

5.Inventory

Inventory consisted of the following:


	As of December 31,
	2016		2015
	(In thousands)
Finished goods	$	323,453	$	304,812
Work-in-process and service repairs		132,286		74,768
Raw materials		9,069		10,673
Total inventory	$	464,808	$	390,253

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property and Equipment and Intangible Assets

Property and Equipment

6.Property and Equipment and Intangible Assets

Property and Equipment

Property and equipment consisted of the following:


	Depreciable
	Life	As of December 31,
	(In Years)	2016		2015
		(In thousands)
Equipment leased to customers	2-5	$	3,014,243	$	3,439,254
EchoStar XV	15		277,658		277,658
Satellites acquired under capital lease agreements	10-15		499,819		499,819
Furniture, fixtures, equipment and other	1-10		708,313		679,221
Buildings and improvements	1-40		92,225		85,547
Land	-		5,205		5,504
Construction in progress	-		67,838		34,793
Total property and equipment			4,665,301		5,021,796
Accumulated depreciation			(2,871,822)		(2,871,456)
Property and equipment, net		$	1,793,479	$	2,150,340

Construction in progress consisted of the following:


	As of December 31,
	2016		2015
	(In thousands)
Software projects	$	45,590	$	22,539
Other		22,248		12,254
Total construction in progress	$	67,838	$	34,793

Depreciation and amortization expense consisted of the following:


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Equipment leased to customers	$	736,952	$	783,310	$	810,945
Satellites		61,045		61,045		68,984
Buildings, furniture, fixtures, equipment and other		66,382		63,332		76,172
Total depreciation and amortization	$	864,379	$	907,687	$	956,101

Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers.

We did not record any capitalized interest during the years ended December 31, 2016, 2015 or 2014.

Satellites

Pay-TV Satellites. We currently utilize 13 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar and one satellite that we lease from DISH Network, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement.

As of December 31, 2016, our pay-TV satellite fleet consisted of the following:


			Estimated
			Useful Life
			(Years)/
		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV	July 2010	61.5	15

Leased from DISH Network (1):
EchoStar XVIII	June 2016	61.5	Month to month

Leased from EchoStar (2):
EchoStar VII (3)	February 2002	119	June 2018
EchoStar IX	August 2003	121	Month to month
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XII (3)	July 2003	61.5	September 2017
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (4)	November 2012	61.5	January 2018
Nimiq 5	September 2009	72.7	September 2019
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2019

(1)

See Note 15 for further information on our Related Party Transactions with DISH Network.

(2)

See Note 15 for further information on our Related Party Transactions with EchoStar.

(3)

We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite.

(4)

We have the option to renew this lease for an additional five-year period. If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years.

Satellite Anomalies

Operation of our DISH branded pay-TV service requires that we have adequate satellite transmission capacity for the programming that we offer. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited.

In the event of a failure or loss of any of our owned or leased satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other owned or leased satellites and use it as a replacement for the failed or lost satellite. Such a failure could result in a prolonged loss of critical programming or a significant delay in our plans to expand programming as necessary to remain competitive and thus may have a material adverse effect on our business, financial condition and results of operations.

In the past, certain of our owned and leased satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the owned and leased satellites in our fleet. See Note 2 “Impairment of Long-Lived Assets” for further information on evaluation of impairment. There can be no assurance that we can recover critical transmission capacity in the event one or more of our owned or leased in-orbit satellites were to fail. We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we use, other than certain satellites leased from third parties, and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures. In light of current favorable market conditions, in January 2016, DISH Network procured commercial launch and in-orbit insurance (for a period of one year following launch) for the EchoStar XVIII satellite, which was launched on June 18, 2016.

Intangible Assets

FCC Authorizations

As of December 31, 2016 and 2015, our FCC Authorizations consisted of the following:


	As of December 31,
	2016		2015
	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS Licenses		24,000		24,000
Total	$	635,794	$	635,794

Long-Term Debt

12 Months Ended

Dec. 31, 2016

Long-Term Debt

Long-Term Debt

7.Long-Term Debt and Capital Lease Obligations

Fair Value of our Long-Term Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of December 31, 2016 and 2015:


	As of December 31,
	2016				2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
7 1/8% Senior Notes due 2016 (1)	$	—	$	—	$	1,500,000	$	1,506,750
4 5/8% Senior Notes due 2017 (2)		900,000		913,887		900,000		922,770
4 1/4% Senior Notes due 2018		1,200,000		1,228,464		1,200,000		1,207,560
7 7/8% Senior Notes due 2019		1,400,000		1,559,698		1,400,000		1,525,440
5 1/8% Senior Notes due 2020		1,100,000		1,141,866		1,100,000		1,100,000
6 3/4% Senior Notes due 2021		2,000,000		2,178,880		2,000,000		2,021,020
5 7/8% Senior Notes due 2022		2,000,000		2,114,780		2,000,000		1,889,780
5 % Senior Notes due 2023		1,500,000		1,500,315		1,500,000		1,297,500
5 7/8% Senior Notes due 2024		2,000,000		2,064,000		2,000,000		1,765,000
7 3/4% Senior Notes due 2026		2,000,000		2,270,900		—		—
Other notes payable		12,606		12,606		13,686		13,686
Subtotal		14,112,606	$	14,985,396		13,613,686	$	13,249,506
Unamortized deferred financing costs and debt discounts, net		(40,124)				(41,563)
Capital lease obligations (3)		136,146				166,492
Total long-term debt and capital lease obligations (including current portion)	$	14,208,628			$	13,738,615

(1)

On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016.

(2)

Our 4 5/8% Senior Notes due 2017 mature on July 15, 2017 and have been reclassified to “Current portion of long-term debt and capital lease obligations” on our Consolidated Balance Sheets as of December 31, 2016.

(3)

Disclosure regarding fair value of capital leases is not required.

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

Our Senior Notes are:

general unsecured senior obligations of DISH DBS;

ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and

ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness.

The indentures related to our Senior Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to:

incur additional debt;

pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock;

make certain investments;

create liens or enter into sale and leaseback transactions;

enter into transactions with affiliates;

merge or consolidate with another company; and

transfer or sell assets.

In the event of a change of control, as defined in the related indentures, we would be required to make an offer to repurchase all or any part of a holder’s Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase.

4 5/8% Senior Notes due 2017

On May 16, 2012, we issued $900 million aggregate principal amount of our five-year 4 5/8% Senior Notes due July 15, 2017. Interest accrues at an annual rate of 4 5/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year.

The 4 5/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

4 1/4% Senior Notes due 2018

On April 5, 2013, we issued $1.2 billion aggregate principal amount of our five-year 4 1/4% Senior Notes due April 1, 2018. Interest accrues at an annual rate of 4 1/4% and is payable semi-annually in cash in arrears on April 1 and October 1 of each year.

The 4 1/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

7 7/8% Senior Notes due 2019

On August 17, 2009 and October 5, 2009, we issued $1.0 billion and $400 million, respectively, aggregate principal amount of our ten-year 7 7/8% Senior Notes due September 1, 2019. Interest accrues at an annual rate of 7 7/8% and is payable semi-annually in cash, in arrears on March 1 and September 1 of each year.

The 7 7/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

5 1/8% Senior Notes due 2020

On April 5, 2013, we issued $1.1 billion aggregate principal amount of our seven-year 5 1/8% Senior Notes due May 1, 2020. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash in arrears on May 1 and November 1 of each year.

The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

6 3/4% Senior Notes due 2021

On May 5, 2011, we issued $2.0 billion aggregate principal amount of our ten-year 6 3/4% Senior Notes due June 1, 2021. Interest accrues at an annual rate of 6 3/4% and is payable semi-annually in cash, in arrears on June 1 and December 1 of each year.

The 6 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

5 7/8% Senior Notes due 2022

On May 16, 2012 and July 26, 2012, we issued $1.0 billion and $1.0 billion, respectively, aggregate principal amount of our ten-year 5 7/8% Senior Notes due July 15, 2022. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year.

The 5 7/8% Senior Notes due 2022 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

5% Senior Notes due 2023

On December 27, 2012, we issued $1.5 billion aggregate principal amount of our 5% Senior Notes due March 15, 2023. Interest accrues at an annual rate of 5% and is payable semi-annually in cash, in arrears on March 15 and September 15 of each year.

The 5% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

5 7/8% Senior Notes due 2024

On November 20, 2014, we issued $2.0 billion aggregate principal amount of our ten-year 5 7/8% Senior Notes due November 15, 2024. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on May 15 and November 15 of each year.

The 5 7/8% Senior Notes due 2024 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to November 15, 2017, we may also redeem up to 35% of the 5 7/8% Senior Notes due 2024 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions.

7 3/4% Senior Notes due 2026

On June 13, 2016, we issued $2.0 billion aggregate principal amount of our ten-year 7 3/4% Senior Notes due July 1, 2026. Interest accrues at an annual rate of 7 3/4% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year, commencing on January 1, 2017.

The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to July 1, 2019, we may also redeem up to 35% of the 7 3/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions.

Interest on Long-Term Debt


		Annual
	Semi-Annual	Debt Service
	Payment Dates	Requirements
		(In thousands)
4 5/8% Senior Notes due 2017	January 15 and July 15	$	41,625
4 1/4% Senior Notes due 2018	April 1 and October 1	$	51,000
7 7/8% Senior Notes due 2019	March 1 and September 1	$	110,250
5 1/8% Senior Notes due 2020	May 1 and November 1	$	56,375
6 3/4% Senior Notes due 2021	June 1 and December 1	$	135,000
5 7/8% Senior Notes due 2022	January 15 and July 15	$	117,500
5% Senior Notes due 2023	March 15 and September 15	$	75,000
5 7/8% Senior Notes due 2024	May 15 and November 15	$	117,500
7 3/4% Senior Notes due 2026	January 1 and July 1	$	155,000

Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which is subject to uncertainties and contingencies beyond our control.

Other Long-Term Debt and Capital Lease Obligations

Other long-term debt and capital lease obligations consisted of the following:


	As of December 31,
	2016		2015
	(In thousands)
Satellites and other capital lease obligations	$	136,146	$	166,492
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0%		12,606		13,686
Total		148,752		180,178
Less: current portion		(34,509)		(31,928)
Other long-term debt and capital lease obligations, net of current portion	$	114,243	$	148,250

Capital Lease Obligations

Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation in April 2007. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years.

Ciel II. Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation in February 2009. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the capacity on Ciel II for an initial 10 year term.

As of December 31, 2016 and 2015, we had $500 million capitalized for the estimated fair value of satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated depreciation of $365 million and $322 million, respectively. In our Consolidated Statements of Operations and Comprehensive Income (Loss), we recognized $43 million in depreciation expense on satellites acquired under capital lease agreements during each of the years ended December 31, 2016, 2015 and 2014.

Future minimum lease payments under the capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2016 are as follows (in thousands):


For the Years Ended December 31,
2017	$	76,297
2018		75,935
2019		50,320
2020		48,000
2021		48,000
Thereafter		16,000
Total minimum lease payments		314,552
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments		(153,360)
Net minimum lease payments		161,192
Less: Amount representing interest		(25,046)
Present value of net minimum lease payments		136,146
Less: Current portion		(33,412)
Long-term portion of capital lease obligations	$	102,734

The summary of future maturities of our outstanding long-term debt as of December 31, 2016 is included in the commitments table in Note 11.

Income Taxes and Accounting for Uncertainty in Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes and Accounting for Uncertainty in Income Taxes

Income Taxes and Accounting for Uncertainty in Income Taxes

8.Income Taxes and Accounting for Uncertainty in Income Taxes

Income Taxes

DISH DBS and its domestic subsidiaries join with DISH Network in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of DISH Network. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings. Amounts are receivable from DISH Network on a basis similar to when they would be receivable from the IRS or other state taxing authorities. The amounts paid to DISH Network during the years ended December 31, 2016, 2015 and 2014 were $552 million, $558 million and $279 million, respectively.

Our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our Consolidated Balance Sheets, as well as probable operating loss, tax credit and other carryforwards. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized. We periodically evaluate our need for a valuation allowance. Determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events, including the probability of expected future taxable income and available tax planning opportunities.

As of December 31, 2016, we had no net operating loss carryforwards (“NOLs”) for federal and state income tax purposes. In addition, there are $12 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance. The state credit carryforwards began to expire in 2015.

The components of the (benefit from) provision for income taxes were as follows:


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Current (benefit) provision:
Federal	$	541,217	$	525,224	$	342,417
State		62,805		34,754		(26,163)
Foreign		9,600		(3,517)		6,990
Total current (benefit) provision		613,622		556,461		323,244

Deferred (benefit) provision:
Federal		(83,714)		(117,608)		78,420
State		(636)		10,192		14,011
Increase (decrease) in valuation allowance		(495)		(1,405)		(4,844)
Total deferred (benefit) provision		(84,845)		(108,821)		87,587
Total (benefit) provision	$	528,777	$	447,640	$	410,831

Our $1.413 billion of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included income of $8 million related to our foreign operations.

The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal tax rate:


	For the Years Ended December 31,
	2016	2015	2014
	% of pre-tax income/(loss)
Statutory rate	35.0	35.0	35.0
State income taxes, net of federal benefit	3.0	3.3	2.0
Reversal of uncertain tax positions	(1.3)	(0.9)	(3.5)
Other, net	0.7	(0.4)	-
Total (benefit) provision for income taxes	37.4	37.0	33.5

Deferred taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities were as follows:


	As of December 31,
	2016		2015
	(In thousands)
Deferred tax assets:
NOL, credit and other carryforwards	$	7,680	$	12,193
Accrued expenses		50,618		36,774
Stock-based compensation		16,561		15,708
Deferred revenue		19,064		27,840
Total deferred tax assets		93,923		92,515
Valuation allowance		(3,315)		(3,810)
Deferred tax asset after valuation allowance		90,608		88,705

Deferred tax liabilities:
Depreciation		(712,595)		(806,105)
FCC authorizations and other intangible amortization		(218,279)		(217,827)
Unrealized (gains) losses on available for sale and other investments		—		(7,240)
Bases difference in partnerships and cost method investments (1)		(122,620)		(118,977)
Other liabilities		(23,973)		(27,572)
Total deferred tax liabilities		(1,077,467)		(1,177,721)
Net deferred tax asset (liability)	$	(986,859)	$	(1,089,016)

(1)

Included in this line item are deferred taxes related to our cost method investments, including our cost method investments in the Tracking Stock. On February 28, 2017, we completed the Share Exchange with EchoStar pursuant to which, among other things, we transferred the EchoStar Tracking Stock to EchoStar and the HSSC Tracking Stock to HSSC. As a result, we no longer hold EchoStar Tracking Stock or HSSC Tracking Stock.

Accounting for Uncertainty in Income Taxes

In addition to filing federal income tax returns, we and one or more of our subsidiaries file income tax returns in all states that impose an income tax and a small number of foreign jurisdictions where we have immaterial operations. We are subject to U.S. federal, state and local income tax examinations by tax authorities for the years beginning in 2005 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for fiscal years 2008 through 2012.

A reconciliation of the beginning and ending amount of unrecognized tax benefits included in “Long-term deferred revenue, distribution and carriage payments and other long-term liabilities” on our Consolidated Balance Sheets was as follows:


	For the Years Ended December 31,
Unrecognized tax benefit	2016		2015		2014
	(In thousands)
Balance as of beginning of period	$	202,400	$	207,675	$	145,884
Additions based on tax positions related to the current year		39,752		12,502		69,643
Additions based on tax positions related to prior years		395		14,593		58,963
Reductions based on tax positions related to prior years		(34,761)		(24,905)		(16,379)
Reductions based on tax positions related to settlements with taxing authorities		(3,628)		(2,648)		(42,023)
Reductions based on tax positions related to the lapse of the statute of limitations		(3,118)		(4,817)		(8,413)
Balance as of end of period	$	201,040	$	202,400	$	207,675

We have $181 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any material portion of this amount to be paid or settled within the next twelve months.

Accrued interest and penalties on uncertain tax positions are recorded as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the year ended December 31, 2016 and 2015, we recorded $5 million and $3 million in net interest and penalty expense to earnings, respectively. During the year ended December 31, 2014, we recorded a credit of $3 million in net interest and penalty expense to earnings. Accrued interest and penalties were $19 million and $14 million at December 31, 2016 and 2015, respectively. The above table excludes these amounts.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

Employee Benefit Plans

9.Employee Benefit Plans

Employee Stock Purchase Plan

Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which DISH Network is authorized to issue up to 2.8 million shares of Class A common stock. At December 31, 2016, DISH Network had 1.0 million shares of Class A common stock which remain available for issuance under the ESPP. Substantially all full-time employees who have been employed by DISH Network for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase DISH Network’s capital stock under all of DISH Network’s stock purchase plans at a rate which would exceed $25,000 in fair value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of DISH Network’s Class A common stock on the last business day of each calendar quarter in which such shares of DISH Network’s Class A common stock are deemed sold to an employee under the ESPP. During the years ended December 31, 2016, 2015 and 2014, employee purchases of DISH Network’s Class A common stock through the ESPP totaled approximately 0.2 million, 0.1 million and 0.1 million shares, respectively.

401(k) Employee Savings Plan

DISH Network sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan may be matched 50% by DISH Network, subject to a maximum annual contribution of $2,500 per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. DISH Network’s board of directors may also authorize an annual discretionary contribution to the 401(k) Plan with authorization by our Board of Directors, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in DISH Network’s stock.

The following table summarizes the expense associated with our matching contributions and discretionary contributions:


	For the Years Ended December 31,
Expense Recognized Related to the 401(k) Plan	2016		2015		2014
	(In thousands)
Total matching contributions, net of forfeitures	$	6,546	$	6,145	$	6,222
Discretionary stock contributions, net of forfeitures	$	23,158	$	25,261	$	25,972

Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Stock-Based Compensation

Stock-Based Compensation

10.Stock-Based Compensation

Stock Incentive Plans

DISH Network maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the DISH Network stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. As of December 31, 2016, there were outstanding under these plans stock options to acquire 7.9 million shares of DISH Network’s Class A common stock and 1.3 million restricted stock units associated with our employees. Stock options granted on or prior to December 31, 2016 were granted with exercise prices equal to or greater than the market value of DISH Network Class A common stock at the date of grant and with a maximum term of approximately ten years. While historically DISH Network has issued stock awards subject to vesting, typically at the rate of 20% per year, some stock awards have been granted with immediate vesting and other stock awards vest only upon the achievement of certain DISH Network-specific subscriber, operational and/or financial goals. As of December 31, 2016, DISH Network had 67.6 million shares of its Class A common stock available for future grant under its stock incentive plans.

Exercise prices for DISH Network stock options outstanding and exercisable associated with our employees as of December 31, 2016 were as follows:


					Options Outstanding				Options Exercisable
					Number Outstanding as of December 31, 2016	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable as of December 31, 2016	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price
$	—	-	$	10.00	207,400	1.51	$	6.34	207,400	1.51	$	6.35
$	10.01	-	$	20.00	1,885,085	3.47	$	15.44	85,085	2.94	$	16.73
$	20.01	-	$	30.00	1,617,876	4.41	$	26.64	1,067,876	4.22	$	25.98
$	30.01	-	$	40.00	1,426,222	5.88	$	36.11	257,822	5.40	$	34.96
$	40.01	-	$	50.00	428,900	9.08	$	46.22	7,800	2.03	$	42.84
$	50.01	-	$	60.00	1,532,000	8.53	$	56.98	48,500	4.00	$	57.58
$	60.01	-	$	70.00	796,250	7.11	$	66.56	189,050	7.16	$	65.51
$	70.01	-	$	80.00	20,000	3.00	$	72.89	20,000	3.00	$	72.89
$	—	-	$	80.00	7,913,733	5.69	$	36.22	1,883,533	4.29	$	29.98

Stock Award Activity

DISH Network stock option activity associated with our employees was as follows:


	For the Years Ended December 31,
	2016			2015			2014
	Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price
Total options outstanding, beginning of period	6,807,169	$	31.17	10,214,344	$	25.29	11,938,090	$	22.49
Granted	1,901,000	$	54.41	452,000	$	69.11	667,750	$	63.23
Exercised	(403,834)	$	23.26	(1,731,975)	$	16.26	(2,233,496)	$	20.49
Forfeited and cancelled	(390,602)	$	50.28	(2,127,200)	$	23.12	(158,000)	$	41.84
Total options outstanding, end of period	7,913,733	$	36.22	6,807,169	$	31.17	10,214,344	$	25.29
Performance-based options outstanding, end of period (1)	4,312,000	$	31.39	3,904,500	$	28.03	5,926,500	$	25.15
Exercisable at end of period	1,883,533	$	29.98	1,927,069	$	26.87	3,107,544	$	19.81

(1)

These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below.

We realized tax benefits from stock awards exercised as follows:


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Tax benefit from stock awards exercised	$	5,006	$	33,716	$	42,334

Based on the closing market price of DISH Network Class A common stock on December 31, 2016, the aggregate intrinsic value of stock options associated with our employees was as follows:


	As of December 31, 2016
	Options		Options
	Outstanding		Exercisable
	(In thousands)
Aggregate intrinsic value	$	179,033	$	54,382

DISH Network restricted stock unit activity associated with our employees was as follows:


	For the Years Ended December 31,
	2016			2015			2014
	Restricted Stock Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Awards		Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period	1,382,250	$	32.01	1,731,332	$	32.60	1,863,165	$	29.27
Granted	67,060	$	56.35	62,530	$	68.79	316,500	$	63.57
Vested	(60)	$	49.15	(125,280)	$	63.92	(278,000)	$	45.04
Forfeited and cancelled	(113,250)	$	45.12	(286,332)	$	29.67	(170,333)	$	33.43
Total restricted stock units outstanding, end of period (1)	1,336,000	$	32.11	1,382,250	$	32.01	1,731,332	$	32.60

(1)

All restricted stock units outstanding are Restricted Performance Units. See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below.

Long-Term Performance-Based Plans

2005 LTIP. During 2005, DISH Network adopted a long-term, performance-based stock incentive plan (the “2005 LTIP”). The 2005 LTIP provided stock options and restricted stock units, either alone or in combination, which vested over seven years at the rate of 10% per year during the first four years, and at the rate of 20% per year thereafter. Exercise of the stock awards was subject to the foregoing vesting schedule and a performance condition that a DISH Network-specific subscriber goal be achieved by March 31, 2015. The performance condition was not achieved, none of the awards became exercisable and the 2005 LTIP expired by its terms on March 31, 2015.

2008 LTIP. During 2008, DISH Network adopted a long-term, performance-based stock incentive plan (the “2008 LTIP”). The 2008 LTIP provided stock options and restricted stock units, either alone or in combination, which vested based on DISH Network-specific subscriber and financial goals. As of June 30, 2013, 100% of the eligible 2008 LTIP awards had vested.

2013 LTIP. During 2013, DISH Network adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The 2013 LTIP provides stock options and restricted stock units in combination, which vest based on DISH Network-specific subscriber and financial goals. Exercise of the stock awards is contingent on achieving these goals by September 30, 2022.

Although no awards vest until DISH Network attains the performance goals, compensation related to the 2013 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the remaining goals. If the remaining goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal.

During the years ended December 31, 2015, 2014, 2013, DISH Network determined that 30%, 10% and 20%, respectively, of the 2013 LTIP performance goals were probable of achievement. During the year ended December 31, 2016, no additional 2013 LTIP performance goals were deemed probable of achievement. As a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2016, approximately 20% of the 2013 LTIP awards had vested.

2017 LTIP. On December 2, 2016, DISH Network adopted a long-term, performance-based stock incentive plan (the “2017 LTIP”). The 2017 LTIP provides stock options, which vest based on DISH Network-specific subscriber and financial goals. Awards were initially granted under the 2017 LTIP as of January 1, 2017. Exercise of the stock awards is contingent on achieving these goals by December 31, 2020.

Although no awards vest until DISH Network attains the performance goals, compensation related to the 2017 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the performance goals. If the performance goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal.

Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, DISH Network has other stock awards that vest based on certain other DISH Network-specific subscriber, operational and/or financial goals. Exercise of these stock awards is contingent on achieving certain performance goals.

Additional compensation related to these awards will be recorded based on DISH Network’s assessment of the probability of meeting the remaining performance goals. If the remaining goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal. See the table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.”

Although no awards vest until the performance goals are attained, DISH Network determined that certain goals were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”

Given the competitive nature of DISH Network’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain DISH Network-specific subscriber, operational and/or financial goals was not probable as of December 31, 2016, that assessment could change in the future.

The non-cash, stock-based compensation expense associated with these awards for our employees was as follows:


	For the Years Ended December 31,
Non-Cash, Stock-Based Compensation Expense Recognized	2016		2015		2014
	(In thousands)
2013 LTIP	$	2,565	$	10,157	$	12,361
Other employee performance awards		1,424		1,694		14,095
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	3,989	$	11,851	$	26,456


Estimated Remaining Non-Cash, Stock-Based Compensation Expense	2013 LTIP		Other Employee Performance Awards
	(In thousands)
Expense estimated to be recognized during 2017	$	7,067	$	1,070
Estimated contingent expense subsequent to 2017		40,469		134,580
Total estimated remaining expense over the term of the plan	$	47,536	$	135,650

Of the 7.9 million stock options and 1.3 million restricted stock units outstanding under the DISH Network stock incentive plans associated with our employees as of December 31, 2016, the following awards were outstanding pursuant to the performance based stock incentive plans:


	As of December 31, 2016
Performance-Based Stock Options	Number of Awards	Weighted- Average Grant Price
2013 LTIP	1,472,000	$	43.50
Other employee performance awards	2,840,000	$	25.12
Total	4,312,000	$	31.39

Restricted Performance Units
2013 LTIP	736,000
Other employee performance awards	600,000
Total	1,336,000

Stock-Based Compensation

Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2016, 2015 and 2014 and was allocated to the same expense categories as the base compensation for such employees:


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Subscriber-related	$	694	$	2,164	$	1,859
General and administrative		12,343		17,035		32,165
Total non-cash, stock based compensation	$	13,037	$	19,199	$	34,024

As of December 31, 2016, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $22 million and will be recognized over a weighted-average period of approximately two years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest.

Valuation

The fair value of each stock option granted for the years ended December 31, 2016, 2015 and 2014 was estimated at the date of the grant using a Black-Scholes option valuation model with the following assumptions:


	For the Years Ended December 31,
Stock Options	2016							2015							2014
Risk-free interest rate		1.06	%	-		2.27	%		1.40	%	-		2.19	%		1.80	%	-		2.84	%
Volatility factor		26.12	%	-		33.37	%		26.42	%	-		36.22	%		28.53	%	-		38.62	%
Expected term of options in years		5.4		-		10.0			5.5		-		7.8			5.5		-		9.0
Weighted-average fair value of options granted	$	12.45		-	$	26.86		$	16.14		-	$	29.73		$	19.08		-	$	29.20

While DISH Network currently does not intend to declare dividends on its common stock, it may elect to do so from time to time. Accordingly, the dividend yield percentage used in the Black-Scholes option valuation model was set at zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from other valuation models. Further, the Black-Scholes option valuation model requires the input of highly subjective assumptions. Changes in these subjective input assumptions can materially affect the fair value estimate.

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

- Definition

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

+ References + Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies

Commitments and Contingencies

11.Commitments and Contingencies

Commitments

As of December 31, 2016, future maturities of our long-term debt, capital lease and contractual obligations are summarized as follows:


	Payments due by period
	Total		2017		2018		2019		2020		2021		Thereafter
	(In thousands)
Long-term debt obligations	$	14,112,606	$	901,097	$	1,201,163	$	1,401,233	$	1,101,306	$	2,001,385	$	7,506,422
Capital lease obligations		136,146		33,412		36,260		19,503		19,137		20,615		7,219
Interest expense on long-term debt and capital lease obligations		4,973,057		877,477		799,543		771,490		631,593		534,350		1,358,604
Satellite-related obligations		1,615,590		382,348		348,617		301,102		241,371		208,196		133,956
Operating lease obligations		139,673		41,334		25,266		18,954		13,728		9,332		31,059
Purchase obligations		2,086,659		1,649,341		275,669		130,230		16,386		8,833		6,200
Total	$	23,063,731	$	3,885,009	$	2,686,518	$	2,642,512	$	2,023,521	$	2,782,711	$	9,043,460

In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for the construction, launch or lease of additional satellites.

The table above does not include $201 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 8, and are included on our Consolidated Balance Sheets as of December 31, 2016. We do not expect any portion of this amount to be paid or settled within the next twelve months.

DISH Network Spectrum

DISH Network has invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers.

Auction 1000. On February 10, 2016, DISH Network filed an application with the FCC to potentially participate as a bidder in the forward auction phase of the broadcast incentive auction in the 600 MHz frequency range (“Auction 1000”). The available spectrum in each licensed geographic area in Auction 1000 is generally comprised of certain paired 5x5 spectrum blocks (5 MHz uplink spectrum and 5 MHz downlink spectrum). As a result, a nationwide footprint may be obtained by aggregating a single 5x5 spectrum block in each available licensed geographic area.

Auction 1000 has had multiple stages, with each stage having two phases. With respect to each stage, in the first phase, or reverse auction phase, participating television broadcasters “sell” their rights to use certain broadcast television spectrum in the 600 MHz frequency range to the FCC. Then following the first phase of a stage, in the second phase, or forward auction phase, the FCC will “resell” that spectrum to auction participants. In the event that certain criteria are not met within a particular stage for Auction 1000 to conclude, Auction 1000 then proceeds to a subsequent stage with less available spectrum than the immediately preceding stage and lower spectrum clearing targets.

Before the forward auction phase of Stage 1 of Auction 1000 began, a qualified bidder in the forward auction could make an upfront deposit of up to approximately $5.4 billion. On July 15, 2016, the FCC announced that a subsidiary of DISH Network and 61 other applicants were qualified to participate in the forward auction. The FCC determined that bidding in Auction 1000 will be “anonymous,” which means that prior to and during the course of the auction, the FCC will not make public any information about a specific applicant’s upfront deposits or its bids. In addition, FCC rules restrict information that applicants may disclose about their participation in Auction 1000.

After each of Stages 1 – 3 of Auction 1000 ended, the aggregate bids in the forward auction phase did not exceed the amount necessary for Auction 1000 to ultimately conclude. As a result, Auction 1000 moved to Stage 4. The reverse auction phase of Stage 4 began on December 13, 2016 and ended on January 13, 2017. Pursuant to the FCC’s procedures for Auction 1000 and based on the results of the reverse auction phase of Stage 4, in order for Auction 1000 to ultimately conclude, the aggregate bids in the forward auction phase of Stage 4 would have to exceed approximately $12.0 billion. The forward auction phase of Stage 4 includes 70 MHz of spectrum in over 90% of the available licensed geographic areas, based on the broadcasters’ indicated availability of spectrum in the reverse auction phase. The clock bidding portion of the forward auction phase of Stage 4 began on January 18, 2017 and ended on February 10, 2017. The aggregate bids of approximately $19.6 billion exceeded the approximately $12.0 billion required for Auction 1000 to ultimately conclude. As a result, Auction 1000 moved to the assignment portion of the forward auction phase in which winning bidders in the clock bidding portion have the opportunity to bid for frequency-specific licenses. The assignment portion began on March 6, 2017, and all assignment rounds are expected to end no later than March 30, 2017. During the assignment portion, ‎the FCC rules restricting information that forward auction applicants may disclose about their participation in Auction 1000 remain in place. As mentioned above, a subsidiary of DISH Network qualified to participate in the forward auction. To the extent that it is the winning bidder for any 600 MHz licenses, DISH Network would expect to pay for such licenses from any upfront deposit made with the FCC and/or existing cash and marketable investment securities balances.

In connection with the development of DISH Network’s wireless business, including without limitation the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance in whole or in part DISH Network’s future efforts. See Note 15 for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses.

DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses

Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10.0 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, comply with regulations applicable to the Northstar Licenses and the SNR Licenses, and make any potential payments related to the re-auction of AWS-3 Licenses by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans or partnerships could vary significantly.

In connection with certain funding obligations related to the investments by American II and American III discussed above, in February 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included such funding obligations, and to fund other DISH Network cash needs. We may make additional cash distributions to finance in whole or in part loans that DISH Network may make to the Northstar Entities and the SNR Entities in the future related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities.

We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions.

See “Item 1A. Risk Factors – We have made substantial investments to acquire certain wireless spectrum licenses and other related assets. In addition, we have made substantial non-controlling investments in the Northstar Entities and the SNR Entities related to AWS-3 wireless spectrum licenses” in DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2016 for further information.

Guarantees

During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of December 31, 2016, the remaining obligation of the DISH Network guarantee was $190 million.

As of December 31, 2016, we have not recorded a liability on the balance sheet for this guarantee.

Purchase Obligations

Our 2017 purchase obligations primarily consist of binding purchase orders for receiver systems and related equipment, digital broadcast operations, transmission costs, engineering services, and other products and services related to the operation of our Pay-TV services. Our purchase obligations also include certain fixed contractual commitments to purchase programming content. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements.

Programming Contracts

In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. These programming commitments are not included in the “Commitments” table above. The terms of our contracts typically range from one to ten years with annual rate increases. Our programming expenses will continue to increase to the extent we are successful in growing our Pay-TV subscriber base. In addition, programming costs continue to increase due to contractual price increases and the renewal of long-term programming contracts on less favorable pricing terms.

Rent Expense

Total rent expense for operating leases was $407 million, $477 million and $468 million in 2016, 2015 and 2014, respectively.

Patents and Intellectual Property

Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services that we offer or that we may offer in the future. We may not be aware of all intellectual property rights that our products or services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to patents 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 components of our products and services. We cannot be certain that these persons do not own the rights they claim, that our products do not infringe on these rights, and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products to avoid infringement.

Contingencies

Separation Agreement

On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as our acts or omissions following the Spin-off. The Share Exchange Agreement contains additional indemnification provisions between us and EchoStar for certain liabilities and legal proceedings.

Litigation

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

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

California Institute of Technology

On October 1, 2013, the California Institute of Technology (“Caltech”) filed complaints against DISH Network and its wholly-owned subsidiaries DISH Network L.L.C. and dishNET Satellite Broadband L.L.C., as well as Hughes Communications, Inc. and Hughes Network Systems, LLC, which are subsidiaries of EchoStar, in the United States District Court for the Central District of California. The complaint alleged infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781 and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech alleged that encoding data as specified by the DVB-S2 standard infringed each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claimed that our Hopper® set-top box, as well as the Hughes defendants’ satellite broadband products and services, infringed the asserted patents by implementing the DVB-S2 standard. On May 5, 2015, the Court granted summary judgment in our favor as to the Hopper set-top box alleged in the complaint. On February 17, 2015, Caltech filed a new complaint in the United States District Court for the Central District of California, asserting the same patents against the same defendants. Caltech alleged that certain broadband equipment, including without limitation the HT1000 and HT1100 modems, gateway hardware, software and/or firmware that the Hughes defendants provide to, among others, us for our use in connection with the dishNET branded broadband service, infringed these patents. Pursuant to a settlement agreement between the parties, on May 31, 2016, Caltech dismissed with prejudice all of its claims in these actions.

ClearPlay, Inc.

On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums”. ClearPlay alleges that the AutoHop™ feature of our Hopper set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted. No trial date has been set.

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

CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.)

On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of certain claims of the 233 patent, and it heard oral argument on January 16, 2016. On June 1, 2016, the United States Patent and Trademark Office found that all claims asserted against us and the EchoStar parties were unpatentable. On July 5, 2016, CRFD filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. The hearing for the appeal is scheduled on April 6, 2017. The litigation in the District Court has been stayed since June 4, 2015 pending resolution of our petition to the United States Patent and Trademark Office.

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

Customedia Technologies, L.L.C.

On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. Trial has been set for September 5, 2017. Customedia is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

Do Not Call Litigation

On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United States Attorney General and several states in the United States District Court for the Central District of Illinois (the “FTC Action”), alleging violations of the Telephone Consumer Protection Act (“TCPA”) and the Telemarketing Sales Rule (“TSR”), as well as analogous state statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs were seeking civil penalties and damages of approximately $270 million and that the federal plaintiff was seeking an unspecified amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state plaintiffs). The plaintiffs were also seeking injunctive relief that if granted would, among other things, enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party retailers and from certain new independent third-party retailers, except under certain circumstances. We also filed a motion for summary judgment, seeking dismissal of all claims. On December 12, 2014, the Court issued its opinion with respect to the parties’ summary judgment motions. The Court found that DISH Network L.L.C. is entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs are entitled to partial summary judgment with respect to ten claims in the action, which includes, among other things, findings by the Court establishing DISH Network L.L.C.’s liability for a substantial amount of the alleged outbound telemarketing calls by DISH Network L.L.C. and certain of its independent third-party retailers that were the subject of the plaintiffs’ motion. The Court did not issue any injunctive relief and did not make any determination on civil penalties or damages, ruling instead that the scope of any injunctive relief and the amount of any civil penalties or damages are questions for trial.

In pre-trial disclosures, the federal plaintiff indicated that it intended to seek up to $900 million in alleged civil penalties, and the state plaintiffs indicated that they intended to seek as much as $23.5 billion in alleged civil penalties and damages. The plaintiffs also modified their request for injunctive relief. Their requested injunction, if granted, would enjoin DISH Network L.L.C. from placing outbound telemarketing calls unless and until: (i) DISH Network L.L.C. hires a third-party consulting organization to perform a review of its call center operations; (ii) such third-party consulting organization submits a telemarketing compliance plan to the Court and the federal plaintiff; (iii) the Court holds a hearing on the adequacy of the plan; (iv) if the Court approves the plan, DISH Network L.L.C. implements the plan and verifies to the Court that it has implemented the plan; and (v) the Court issues an order permitting DISH Network L.L.C. to resume placing outbound telemarketing calls. The plaintiffs’ modified request for injunctive relief, if granted, would also enjoin DISH Network L.L.C. from accepting customer orders solicited by certain independent third-party retailers unless and until a similar third-party review and Court approval process was followed with respect to the telemarketing activities of its independent third-party retailer base to ensure compliance with the TSR.

The first phase of the bench trial took place January 19, 2016 through February 11, 2016. In closing briefs, the federal plaintiff indicated that it still is seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it is seeking $100 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); the Ohio state plaintiff indicated that it is seeking approximately $10 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); and the Illinois and North Carolina state plaintiffs did not state the specific alleged civil penalties and damages that they are seeking; but the state plaintiffs have taken the general position that any damages award less than $1.0 billion (presumably for both federal and state law claims) would not raise constitutional concerns. Under the Eighth Amendment of the U.S. Constitution, excessive fines may not be imposed.

On October 3, 2016, the plaintiffs further modified their request for injunctive relief and are now seeking, among other things, to enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from some or all existing independent third-party retailers. The second phase of the bench trial, which commenced on October 25, 2016 and concluded on November 2, 2016, covered the plaintiffs’ requested injunctive relief, as well as certain evidence related to the state plaintiffs’ claims.

We may also from time to time be subject to private civil litigation alleging telemarketing violations. For example, a portion of the alleged telemarketing violations by an independent third-party retailer at issue in the FTC Action are also the subject of a certified class action filed against DISH Network L.L.C. in the United States District Court for the Middle District of North Carolina (the “Krakauer Action”). Following a five-day trial, on January 19, 2017, a jury in that case found that the independent third-party retailer was acting as DISH Network L.L.C.’s agent when it made the 51,119 calls at issue in that case, and that class members are eligible to recover $400 in damages for each call made in violation of the TCPA. The plaintiff is also seeking enhanced damages under the TCPA for alleged willful or knowing violations. The Court will decide whether there were any willful or knowing violations, and the Court has discretion to increase the damages by up to three times for any such violations. On March 7, 2017, DISH Network L.L.C. filed motions with the Court for judgment as a matter of law and, in the alternative, for a new trial in the Krakauer Action.

The plaintiffs in the FTC Action have asserted that the jury verdict in the Krakauer Action preclusively establishes that the independent third-party retailer at issue in the Krakauer Action was acting as DISH Network L.L.C.’s agent when it made the calls at issue in the FTC Action, and is otherwise persuasive evidence that the other independent third-party retailers at issue in the FTC Action were acting as DISH Network’s L.L.C.’s agents when they made their respective calls at issue in the FTC Action, that the alleged civil penalties being sought by the federal and state plaintiffs are reasonable, and that the calls made by DISH Network L.L.C. and independent third-party retailers at issue in the FTC Action were made to landline residential phones. We have opposed those assertions.

We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages.

Dragon Intellectual Property, LLC

On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition. Pursuant to a stipulation between the parties, on April 27, 2016, the Court entered an order of non-infringement and judgment in favor of DISH Network L.L.C. On June 15, 2016, the United States Patent and Trademark Office entered an order that the patent claims being asserted against DISH Network L.L.C. with respect to the 444 patent are unpatentable. On August 8, 2016, Dragon filed notices of appeal with respect to the Court’s judgment and the United States Patent and Trademark Office’s decision.

Grecia

On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe U.S. Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016.

On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. On July 29, 2016, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 308 patent. On January 19, 2017, the United States Patent and Trademark Office declined to institute a proceeding on our petition. The litigation in the District Court, which had been stayed since June 13, 2016 pending resolution of DISH Network L.L.C.’s petition to the United States Patent and Trademark Office, was further stayed on February 23, 2017 pending a claim construction order from the United States District Court for the Southern District of New York in a separate action in which Grecia is asserting the same patent.

The Hopper Litigation

On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation; Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop™ features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing.

Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights.

As a result of certain parties’ competing venue-related motions brought in both the New York and California actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California.

California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™ feature of our second-generation Hopper set-top box.

On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27, 2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a petition for rehearing and rehearing en banc, which was denied on January 24, 2014. The United States Supreme Court granted the Fox plaintiffs an extension until May 23, 2014 to file a petition for writ of certiorari, but they did not file one. As a result, the stay of the NBC plaintiffs’ action expired. On August 6, 2014, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs, pending a final judgment on all claims in the Fox plaintiffs’ action. Pursuant to the settlement described below, the Fox action was dismissed on February 11, 2016. On March 4, 2016, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs until September 9, 2016; provided that either party may file a motion with the Court to lift the stay after May 27, 2016. Pursuant to a settlement between us and the NBC plaintiffs, on June 16, 2016, we and the NBC plaintiffs filed a stipulation to dismiss with prejudice all of our respective claims pending in the California Court. The Court ordered such dismissal on June 20, 2016.

In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for preliminary injunction against: (i) us seeking to enjoin the Hopper Transfers feature in our second-generation Hopper set-top box, alleging breach of their retransmission consent agreement; and (ii) us and EchoStar Technologies L.L.C. seeking to enjoin the Slingbox placeshifting functionality in our second-generation Hopper set-top box, alleging copyright infringement and breach of their retransmission consent agreement. On September 23, 2013, the California court denied the Fox plaintiffs’ motion. The Fox plaintiffs appealed, and on July 14, 2014, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the Hopper Transfers feature and the Slingbox placeshifting functionality in our second-generation Hopper set-top box.

On January 12, 2015, the Court ruled on the Fox plaintiffs’ and our respective motions for summary judgment, holding that: (a) the Slingbox placeshifting functionality and the PrimeTime Anytime, AutoHop and Hopper Transfers features do not violate the copyright laws; (b) certain quality assurance copies (which were discontinued in November 2012) do violate the copyright laws; and (c) the Slingbox placeshifting functionality, the Hopper Transfers feature and such quality assurance copies breach our Fox retransmission consent agreement. At the parties’ joint request, the Court had stayed the case until January 15, 2016. Pursuant to a settlement between us and the Fox plaintiffs, we, EchoStar Technologies L.L.C. and the Fox plaintiffs filed a stipulation to dismiss with prejudice all of our respective claims pending in the California Court. The Court ordered such dismissal on February 11, 2016.

New York Actions. Both the ABC and CBS parties filed counterclaims in the New York action adding copyright claims against EchoStar Technologies L.L.C., and the CBS parties filed a counterclaim alleging that we fraudulently concealed the AutoHop feature when negotiating the renewal of our CBS retransmission consent agreement. On November 23, 2012, the ABC plaintiffs filed a motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features. On September 18, 2013, the New York court denied that motion. The ABC plaintiffs appealed, and oral argument on the appeal was heard on February 20, 2014 before the United States Court of Appeals for the Second Circuit. Pursuant to a settlement between us and the ABC parties, in March 2014, the ABC parties withdrew their appeal to the United States Court of Appeals for the Second Circuit; we and the ABC parties filed a stipulation on March 4, 2014 to dismiss without prejudice all of our respective claims pending in the United States District Court for the Southern District of New York; and the ABC parties granted a covenant not to sue. The Court ordered such dismissal on March 6, 2014. Pursuant to a settlement between us and the CBS parties, on December 10, 2014, we and the CBS parties filed a stipulation to dismiss with prejudice all of our respective claims pending in the New York Court. The Court ordered such dismissal on December 10, 2014.

These matters are now concluded.

IPA Technologies Inc.

On December 9, 2016, IPA Technologies Inc. (“IPA”) filed suit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the District of Delaware. IPA alleges that our Voice Remote with Hopper 3 infringes United States Patent Number 6,742,021 (the “021 patent”), which is entitled “Navigating Network-based Electronic Information Using Spoken Input with Multimodal Error Feedback”; United States Patent Number 6,523,061 (the “061 patent”), which is entitled “System, Method, and Article of Manufacture for Agent-Based Navigation in a Speech-Based Data Navigation System”; and United States Patent Number 6,757,718 (the “718 patent”), which is entitled “Mobile Navigation of Network-Based Electronic Information Using Spoken Input.” IPA is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein.

LightSquared/Harbinger Capital Partners LLC (LightSquared Bankruptcy)

As previously disclosed in our public filings, L-Band Acquisition, LLC (“LBAC”), DISH Network’s wholly-owned subsidiary, entered into a Plan Support Agreement (the “PSA”) with certain senior secured lenders to LightSquared LP (the “LightSquared LP Lenders”) on July 23, 2013, which contemplated the purchase by LBAC of substantially all of the assets of LightSquared LP and certain of its subsidiaries (the “LBAC Bid”) that are debtors and debtors in possession in the LightSquared bankruptcy cases pending in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), which cases are jointly administered under the caption In re LightSquared Inc., et. al., Case No. 12 12080 (SCC).

Pursuant to the PSA, LBAC was entitled to terminate the PSA in certain circumstances, certain of which required three business days’ written notice, including, without limitation, in the event that certain milestones specified in the PSA were not met. On January 7, 2014, LBAC delivered written notice of termination of the PSA to the LightSquared LP Lenders. As a result, the PSA terminated effective on January 10, 2014, and the LBAC Bid was withdrawn.

On August 6, 2013, Harbinger Capital Partners LLC and other affiliates of Harbinger (collectively, “Harbinger”), a shareholder of LightSquared Inc., filed an adversary proceeding against DISH Network, LBAC, EchoStar, Charles W. Ergen (our Chairman and Chief Executive Officer), SP Special Opportunities, LLC (“SPSO”) (an entity controlled by Mr. Ergen), and certain other parties, in the Bankruptcy Court. Harbinger alleged, among other things, claims based on fraud, unfair competition, civil conspiracy and tortious interference with prospective economic advantage related to certain purchases of LightSquared secured debt by SPSO. Subsequently, LightSquared intervened to join in certain claims alleged against certain defendants other than DISH Network, LBAC and EchoStar.

On October 29, 2013, the Bankruptcy Court dismissed all of the claims in Harbinger’s complaint in their entirety, but granted leave for LightSquared to file its own complaint in intervention. On November 15, 2013, LightSquared filed its complaint, which included various claims against DISH Network, EchoStar, Mr. Ergen and SPSO. On December 2, 2013, Harbinger filed an amended complaint, asserting various claims against SPSO. On December 12, 2013, the Bankruptcy Court dismissed several of the claims asserted by LightSquared and Harbinger. The surviving claims included, among others, LightSquared’s claims against SPSO for declaratory relief, breach of contract and statutory disallowance; LightSquared’s tortious interference claim against DISH Network, EchoStar and Mr. Ergen; and Harbinger’s claim against SPSO for statutory disallowance. These claims proceeded to a non-jury trial on January 9, 2014. In its Post-Trial Findings of Fact and Conclusions of Law entered on June 10, 2014, the Bankruptcy Court rejected all claims against DISH Network and EchoStar, and it rejected some but not all claims against the other defendants. On July 7, 2015, the United States District Court for the Southern District of New York denied Harbinger’s motion for an interlocutory appeal of certain Bankruptcy Court orders in the adversary proceeding. On March 27, 2015, the Bankruptcy Court entered an order confirming the Modified Second Amended Joint Plan pursuant to Chapter 11 of the Bankruptcy Code and, on December 7, 2015, the Plan became effective.

DISH Network intends to vigorously defend any claims against it in this proceeding and cannot predict with any degree of certainty the outcome of this proceeding or determine the extent of any potential liability or damages.

LightSquared Transaction Shareholder Derivative Actions

On August 9, 2013, a purported shareholder of DISH Network, Jacksonville Police and Fire Pension Fund (“Jacksonville PFPF”), filed a putative shareholder derivative action in the District Court for Clark County, Nevada alleging, among other things, breach of fiduciary duty claims against the members of DISH Network’s Board of Directors as of that date: Charles W. Ergen; Joseph P. Clayton; James DeFranco; Cantey M. Ergen; Steven R. Goodbarn; David K. Moskowitz; Tom A. Ortolf; and Carl E. Vogel (collectively, the “Director Defendants”). In its first amended complaint, Jacksonville PFPF asserted claims that Mr. Ergen breached his fiduciary duty to DISH Network in connection with certain purchases of LightSquared debt by SPSO, an entity controlled by Mr. Ergen, and that the other Director Defendants aided and abetted that alleged breach of duty. The Jacksonville PFPF claims alleged that (1) the debt purchases created an impermissible conflict of interest and (2) put at risk the LBAC Bid, which as noted above was withdrawn. Jacksonville PFPF further claimed that most members of DISH Network’s Board of Directors are beholden to Mr. Ergen to an extent that prevents them from discharging their duties in connection with DISH Network’s participation in the LightSquared bankruptcy auction process. Jacksonville PFPF is seeking an unspecified amount of damages. Jacksonville PFPF dismissed its claims against Mr. Goodbarn on October 8, 2013.

Jacksonville PFPF sought a preliminary injunction that would enjoin Mr. Ergen and all of the Director Defendants other than Mr. Goodbarn from influencing DISH Network’s efforts to acquire certain assets of LightSquared in the bankruptcy proceeding. On November 27, 2013, the Court denied that request but granted narrower relief enjoining Mr. Ergen and anyone acting on his behalf from participating in negotiations related to one aspect of the LBAC Bid, which, as noted above, was withdrawn.

Five alleged shareholders filed substantially similar putative derivative complaints in state and federal courts alleging the same or substantially similar claims. On September 18, 2013, DCM Multi-Manager Fund, LLC filed a duplicative putative derivative complaint in the District Court for Clark County, Nevada, which was consolidated with the Jacksonville PFPF action on October 9, 2013. Between September 25, 2013 and October 2, 2013, City of Daytona Beach Police Officers and Firefighters Retirement System, Louisiana Municipal Police Employees’ Retirement System and Iron Worker Mid-South Pension Fund filed duplicative putative derivative complaints in the United States District Court for the District of Colorado. Also on October 2, 2013, Iron Workers District Council (Philadelphia and Vicinity) Retirement and Pension Plan filed its complaint in the United States District Court for the District of Nevada.

On October 11, 2013, Iron Worker Mid-South Pension Fund dismissed its claims without prejudice. On October 30, 2013, Louisiana Municipal Police Employees’ Retirement System dismissed its claims without prejudice and, on January 2, 2014, filed a new complaint in the District Court for Clark County, Nevada, which, on May 2, 2014, was consolidated with the Jacksonville PFPF action. On December 13, 2013, City of Daytona Beach Police Officers and Firefighters Retirement System voluntarily dismissed its claims without prejudice. On March 28, 2014, Iron Workers District Council (Philadelphia and Vicinity) Retirement and Pension Plan voluntarily dismissed its claims without prejudice.

On July 25, 2014, Jacksonville PFPF filed a second amended complaint, which added claims against George R. Brokaw and Charles M. Lillis, as Director Defendants, and Thomas A. Cullen, R. Stanton Dodge and K. Jason Kiser, as officers of DISH Network. Jacksonville PFPF asserted five claims in its second amended complaint, each of which alleged breaches of the duty of loyalty. Three of the claims were asserted solely against Mr. Ergen; one claim was made against all of the remaining Director Defendants, other than Mr. Ergen and Mr. Clayton; and the final claim was made against Messrs. Cullen, Dodge and Kiser.

DISH Network’s Board of Directors established a Special Litigation Committee to review the factual allegations and legal claims in these actions. On October 24, 2014, the Special Litigation Committee filed a report in the District Court for Clark County, Nevada regarding its investigation of the claims and allegations asserted in Jacksonville PFPF’s second amended complaint. The Special Litigation Committee filed a motion to dismiss the action based, among other things, on its business judgment that it is in the best interests of DISH Network not to pursue the claims asserted by Jacksonville PFPF. The Director Defendants and Messrs. Cullen, Dodge and Kiser have also filed various motions to dismiss the action. In an order entered on September 18, 2015, the Court granted the Special Litigation Committee’s motion to defer to the Special Litigation Committee’s October 24, 2014 report, including its finding that dismissal of the action is in the best interest of DISH Network. The Court also held that, in light of granting the motion to defer, the pending motions to dismiss filed by the individual defendants were denied without prejudice as moot. On October 12, 2015, Jacksonville PFPF filed a notice of appeal to the Supreme Court of Nevada and the appeal is now fully briefed. DISH Network cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages.

Michael Heskiaoff, Marc Langenohl, and Rafael Mann

On July 10, 2015, Messrs. Michael Heskiaoff and Marc Langenohl, purportedly on behalf of themselves and all others similarly situated, filed suit against our subsidiary Sling Media, Inc. (now known as “Sling Media L.L.C.,” which was acquired as a result of the completion of the Share Exchange on February 28, 2017) in the United States District Court for the Southern District of New York. The complaint alleges that Sling Media Inc.’s display of advertising to its customers violates a number of state statutes dealing with consumer deception. On September 25, 2015, the plaintiffs filed an amended complaint, and Mr. Rafael Mann, purportedly on behalf of himself and all others similarly situated, filed an additional complaint alleging similar causes of action. On November 16, 2015, the cases were consolidated. On August 12, 2016, the Court dismissed the consolidated case due to plaintiffs’ failure to state a claim. On September 12, 2016, the plaintiffs moved the Court for leave to file an amended complaint, which we opposed. On March 22, 2017, the Court denied the plaintiffs’ motion for leave to file an amended complaint and entered judgment in favor of Sling Media L.L.C.

We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Qurio Holdings, Inc.

On September 26, 2014, Qurio Holdings, Inc. (“Qurio”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C., in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,102,863 (the “863 patent”) entitled “Highspeed WAN To Wireless LAN Gateway” and United States Patent No. 7,787,904 (the “904 patent”) entitled “Personal Area Network Having Media Player And Mobile Device Controlling The Same.” On the same day, Qurio filed similar complaints against Comcast and DirecTV. On November 13, 2014, Qurio filed a first amended complaint, which added a claim alleging infringement of United States Patent No. 8,879,567 (the “567 patent”) entitled “High-Speed WAN To Wireless LAN Gateway.” Qurio is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On February 9, 2015, the Court granted DISH Network L.L.C.’s motion to transfer the case to the United States District Court for the Northern District of California. In October 2015, DISH Network L.L.C. filed petitions before the United States Patent and Trademark Office challenging the validity of certain claims of the 863, 904 and 567 patents. On November 3, 2015, the case was stayed pending resolution of these proceedings before the United States Patent and Trademark Office. On April 4, 2016, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions, as well as on a third-party petition challenging the validity of certain claims of the 904 patent. On June 21, 2016, pursuant to Qurio’s Request for Adverse Judgment, the United States Patent and Trademark Office issued a cancellation of all claims of the 904 patent that we had challenged. On July 13, 2016, Qurio filed a Request for Adverse Judgment with the United States Patent and Trademark Office to cancel all claims of the 863 patent and 567 patent that we had challenged, leaving at issue in the District Court action only certain claims of the 567 patent that we had not challenged. On July 19, 2016, the United States Patent and Trademark Office issued a cancellation of all claims of the 863 patent and the 567 patent that we had challenged. At Qurio’s request, on October 5, 2016, the parties stipulated to a voluntary dismissal of the action with prejudice, which the Court entered on that date. This matter is now concluded.

Shipping & Transit LLC

On August 30, 2016, Shipping & Transit LLC (“Shipping & Transit”) filed suit against DISH Network and our wholly-owned subsidiary, DISH Network L.L.C., in the United States District Court for the Central District of California, alleging infringement of United States Patent No. 6,317,060 (the “060 patent”), entitled “Base Station System and Method for Monitoring Travel of Mobile Vehicles and Communicating Notification Methods” and United States Patent No. 6,415,207 (the “207 patent”), entitled “System and Method for Automatically Providing Vehicle Status Information.” Shipping & Transit alleges that the “My Tech” application, which provides information to customers regarding their service technician appointments, infringes the 060 patent and the 207 patent. Shipping & Transit is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On January 4, 2017, Shipping & Transit dismissed the complaint without prejudice. This matter is now concluded.

Technology Development and Licensing L.L.C.

On January 22, 2009, Technology Development and Licensing L.L.C. (“TDL”) filed suit against DISH Network and EchoStar, in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. Re. 35,952 (the “952 patent”), which relates to certain favorite channel features. TDL is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. The case was stayed in July 2009 pending two reexamination petitions before the United States Patent and Trademark Office, which concluded in August 2015 and resulted in 42 out of the 53 claims of the 952 patent being invalidated. Six of the surviving 11 claims are asserted against us. The case resumed in August 2015. In a separate matter in which TDL is asserting the same patent, the court in that action ruled that four claims of the '952 patent (which are among the six claims asserted against us) are invalid because they claim unpatentable subject matter, and TDL has stipulated that it will not appeal that order. Thus, only two claims of the ‘952 patent remain asserted against us. A trial date has not been set.

TQ Beta LLC

On June 30, 2014, TQ Beta LLC (“TQ Beta”) filed a complaint against us; our wholly-owned subsidiary DISH Network L.L.C.; DISH Network; EchoStar; and EchoStar’s subsidiaries EchoStar Technologies L.L.C., Hughes Satellite Systems Corporation, and Sling Media Inc., in the United States District Court for the District of Delaware. The Complaint alleges infringement of United States Patent No. 7,203,456 (the “456 patent”), which is entitled “Method and Apparatus for Time and Space Domain Shifting of Broadcast Signals.” TQ Beta alleges that our Hopper set-top boxes, ViP 722 and ViP 722k DVR devices, as well as our DISH Anywhere™ service and DISH Anywhere mobile application, infringe the 456 patent. TQ Beta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. In August 2015, DISH Network L.L.C. filed petitions before the United States Patent and Trademark Office challenging the validity of certain claims of the 456 patent, and in February 2016, the United States Patent and Trademark Office agreed to institute proceedings on our petitions. On February 25, 2016, the case was stayed pending resolution of these proceedings before the United States Patent and Trademark Office, and the Court vacated all pending court dates and deadlines. On January 30, 2017, the United States Patent and Trademark Office issued its final written decisions on our petitions, invalidating all claims of the 456 patent that were asserted in the litigation, which decisions may be appealed by TQ Beta.

TQ Delta, LLC

On July 17, 2015, TQ Delta, LLC (“TQ Delta”) filed a complaint against us, DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the District of Delaware. The Complaint alleges infringement of United States Patent No. 6,961,369 (the “369 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 8,718,158 (the “158 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 9,014,243 (the “243 patent”), which is entitled “System and Method for Scrambling Using a Bit Scrambler and a Phase Scrambler”; United States Patent No. 7,835,430 (the “430 patent”), which is entitled “Multicarrier Modulation Messaging for Frequency Domain Received Idle Channel Noise Information”; United States Patent No. 8,238,412 (the “412 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; United States Patent No. 8,432,956 (the “956 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; and United States Patent No. 8,611,404 (the “404 patent”), which is entitled “Multicarrier Transmission System with Low Power Sleep Mode and Rapid-On Capability.” On September 9, 2015, TQ Delta filed a first amended complaint that added allegations of infringement of United States Patent No. 9,094,268 (the “268 patent”), which is entitled “Multicarrier Transmission System With Low Power Sleep Mode and Rapid-On Capability.” On May 16, 2016, TQ Delta filed a second amended complaint that added EchoStar Corporation and its wholly-owned subsidiary EchoStar Technologies L.L.C. as defendants. TQ Delta alleges that our satellite TV service, Internet service, set-top boxes, gateways, routers, modems, adapters and networks that operate in accordance with one or more Multimedia over Coax Alliance Standards infringe the asserted patents. TQ Delta has filed actions in the same court alleging infringement of the same patents against Comcast Corp., Cox Communications, Inc., DirecTV, Time Warner Cable Inc. and Verizon Communications, Inc. TQ Delta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Trial has been set for November 13, 2017. On July 14, 2016, TQ Delta stipulated to dismiss with prejudice all claims related to the 369 patent and the 956 patent. On July 20, 2016, we filed petitions with the United States Patent and Trademark Office challenging the validity of all of the patent claims of the 404 patent and the 268 patent that have been asserted against us. Third parties have filed petitions with the United States Patent and Trademark Office challenging the validity of all of the patent claims that have been asserted against us in the action. On November 4, 2016, the United States Patent and Trademark Office agreed to institute proceedings on the third-party petitions related to the 158 patent, the 243 patent, the 412 patent and the 430 patent. On December 20, 2016, pursuant to a stipulation of the parties, the Court stayed the case until the resolution of all petitions to the United States Patent and Trademark Office challenging the validity of all of the patent claims at issue. On January 19, 2017, the United States Patent and Trademark Office granted our motions to join the instituted petitions on the 430 and 158 patents. On February 9, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petition related to the 404 patent, and on February 13, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petition related to the 268 patent. On February 27, 2017, the United States Patent and Trademark Office granted our motions to join the instituted petitions on the 243 and 412 patents.

Two-Way Media Ltd.

On February 17, 2016, Two-Way Media Ltd. (“TWM”) filed a complaint in the United States District Court for the District of Colorado against us; DISH Network; our subsidiaries DISH Network L.L.C., DISH Network Service L.L.C., Sling TV Holding L.L.C., Sling TV L.L.C., and Sling TV Purchasing L.L.C.; and EchoStar Corporation, EchoStar Technologies L.L.C., EchoStar Satellite Services L.L.C. and Sling Media, Inc. The complaint alleges infringement of United States Patent Nos. 5,778,187, 5,983,005, 6,434,622 and 7,266,686, each entitled “Multicasting Method and Apparatus,” and United States Patent No. 9,124,607, entitled “Methods and Systems for Playing Media.” TWM claims infringement by our Sling TV domestic and international services, Slingboxes and DISH DVRs incorporating Slingbox technology, and the DISH Anywhere application and website. TWM is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Pursuant to a settlement between the parties, the case was dismissed with prejudice on December 15, 2016. This matter is now concluded.

Vermont National Telephone Company

On September 23, 2016, the United States District Court for the District of Columbia unsealed a qui tam complaint that was filed by Vermont National Telephone Company (“Vermont National”) against DISH Network; DISH Network’s wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III, and DISH Wireless Holding L.L.C.; Charles W. Ergen (our Chairman and Chief Executive Officer) and Cantey M. Ergen (a member of our board of directors); Northstar Wireless; Northstar Spectrum; Northstar Manager, LLC; SNR Wireless; SNR HoldCo; SNR Wireless Management, LLC; and certain other parties. The complaint was unsealed after the United States Department of Justice notified the Court that it had declined to intervene in the action. The complaint is a civil action that was filed under seal on May 13, 2015 by Vermont National, which participated in the AWS-3 Auction through its wholly-owned subsidiary, VTel Wireless. The complaint alleges violations of the federal civil False Claims Act (the “FCA”) based on, among other things, allegations that Northstar Wireless and SNR Wireless falsely claimed bidding credits of 25% in the AWS-3 Auction when they were allegedly under the de facto control of DISH Network and, therefore, were not entitled to the bidding credits as designated entities under applicable FCC rules. Vermont National seeks to recover on behalf of the United States government approximately $10 billion, which reflects the $3.3 billion in bidding credits that Northstar Wireless and SNR Wireless claimed in the AWS-3 Auction, trebled under the FCA. Vermont National also seeks civil penalties of not less than $5,500 and not more than $11,000 for each violation of the FCA. On March 2, 2017, the United States District Court for the District of Columbia entered a stay of the litigation until such time as the United States Court of Appeals for the District of Columbia issues its opinion in SNR Wireless LicenseCo, LLC, et al. v. F.C.C.

See “Item 1A. Risk Factors – Acquisition and Capital Structure Risks – Our parent, DISH Network, faces certain risks related to its non-controlling investments in the Northstar Entities and the SNR Entities.” in this Annual Report on Form 10-K for further information.

DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of this proceeding or determine the extent of any potential liability or damages.

Waste Disposal Inquiry

The California Attorney General and the Alameda County (California) District Attorney are investigating whether certain of our waste disposal policies, procedures and practices are in violation of the California Business and Professions Code and the California Health and Safety Code. We expect that these entities will seek injunctive and monetary relief. The investigation appears to be part of a broader effort to investigate waste handling and disposal processes of a number of industries. While we are unable to predict the outcome of this investigation, we do not believe that the outcome will have a material effect on our results of operations, financial condition or cash flows.

Other

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

Financial Information for Subsidiary Guarantors	12 Months Ended
Financial Information for Subsidiary Guarantors	Dec. 31, 2016
Financial Information for Subsidiary Guarantors
Financial Information for Subsidiary Guarantors	12.Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law.

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

13.Valuation and Qualifying Accounts

Our valuation and qualifying accounts as of December 31, 2016, 2015 and 2014 were as follows:


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year
	(In thousands)
For the years ended:
December 31, 2016	$	20,972	$	149,603	$	(153,579)	$	16,996
December 31, 2015	$	23,520	$	94,205	$	(96,753)	$	20,972
December 31, 2014	$	15,981	$	151,016	$	(143,477)	$	23,520

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

14.Quarterly Financial Data (Unaudited)

Our quarterly results of operations are summarized as follows:


	For the Three Months Ended
	March 31,		June 30,		September 30,		December 31,
	(In thousands)
Year ended December 31, 2016:
Total revenue	$	3,672,154	$	3,719,415	$	3,632,115	$	3,613,359
Operating income (loss)		571,665		612,686		491,113		525,505
Net income (loss) attributable to DISH DBS		262,234		263,394		177,114		213,786

Year ended December 31, 2015:
Total revenue	$	3,621,062	$	3,724,434	$	3,624,548	$	3,668,205
Operating income (loss)		506,289		553,024		461,038		532,327
Net income (loss) attributable to DISH DBS		187,932		212,113		172,154		207,936

Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions

Related Party Transactions

15.Related Party Transactions

Related Party Transactions with DISH Network

On June 30, 2016, we paid a dividend of $1.5 billion to DOC.

On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling debt and equity investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs.

On October 14, 2014, we paid a dividend of $1.5 billion to DOC in connection with, among other things, DISH Network’s general corporate purposes.

On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. We recorded all of the assets and liabilities at historical cost and the difference was recorded as a deemed distribution in “Stockholder’s equity (deficit)” on our Consolidated Balance Sheets. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014.

On March 28, 2014, we paid a dividend of $650 million to DOC in connection with, among other things, the funding of certain payments by DISH Network related to its winning bid for all 176 wireless spectrum licenses in the H Block auction.

Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the years ended December 31, 2016, 2015 and 2014, we received revenue associated with these services of $2 million, $10 million and $18 million, respectively, in “Subscriber-related revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2016, 2015 and 2014, the costs associated with these services were $63 million, $63 million and $79 million, respectively.

EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from an indirect wholly-owned subsidiary of DISH Network. During the year ended December 31, 2016, we incurred $22 million of expense related to this satellite. This amount is recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Related Party Transactions with EchoStar

Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman and Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family.

Prior to the completion of the Share Exchange on February 28, 2017, EchoStar was our primary supplier of set-top boxes and digital broadcast operations. EchoStar is a supplier of the vast majority of our transponder capacity. Generally, the amounts we pay EchoStar for products and services are based on pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary depending on the nature of the products and services provided.

In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations.

Recent Developments

On January 31, 2017, we and our indirect wholly-owned subsidiaries DISH Network L.L.C. (“DNLLC”) and DISH Operating L.L.C. (“DOLLC”), entered into the Share Exchange Agreement with EchoStar, EchoStar Broadcasting Holding Parent L.L.C., an indirect wholly-owned subsidiary of EchoStar (“EB Holdco”), EchoStar Broadcasting Holding Corporation, a direct, wholly-owned subsidiary of EB Holdco (“EB Splitco”), EchoStar Technologies Holding Corporation, a direct wholly-owned subsidiary of EchoStar (“ET Splitco”), and EchoStar Technologies L.L.C., a direct wholly-owned subsidiary of EchoStar (“ETLLC”). On February 28, 2017, DISH Network and EchoStar completed the Share Exchange. Pursuant to the Share Exchange Agreement, among other things: (i) EchoStar completed the steps necessary for certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplinking services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s ten percent non-voting interest Sling TV Holding (the “Transferred Businesses”), to be transferred to EB Splitco and ET Splitco; and (ii) EchoStar transferred to us 100% of the equity of EB Splitco and ET Splitco, and in exchange, we transferred the EchoStar Tracking Stock to EchoStar and the HSSC Tracking Stock to HSSC. The Share Exchange was structured in a manner to be a tax-free exchange for each of us and EchoStar.

In connection with the Share Exchange Agreement, we and EchoStar and certain of their subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain of the agreements with EchoStar described below have terminated, and we entered into certain new agreements with EchoStar. The financial results related to the Share Exchange are not included in our consolidated financial statements for all periods presented.

“Trade accounts receivable”

As of December 31, 2016 and 2015, trade accounts receivable from EchoStar was $4 million and $23 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets.

“Trade accounts payable”

As of December 31, 2016 and 2015, trade accounts payable to EchoStar was $259 million and $263 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets.

“Equipment sales and other revenue”

During the years ended December 31, 2016, 2015 and 2014, we received $1 million, $46 million and $62 million, respectively, for equipment sales and other revenue from EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below.

Remanufactured Receiver and Services Agreement. In connection with the Spin-off, we entered into a remanufactured receiver and services agreement with EchoStar pursuant to which EchoStar had the right, but not the obligation, to purchase remanufactured receivers and accessories from us at cost plus a fixed margin, which varied depending on the nature of the equipment purchased. In November 2016, we and EchoStar extended this agreement until December 31, 2017. As a result of the completion of the Share Exchange on February 28, 2017, the remanufactured receiver and services agreement with EchoStar has terminated.

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

EchoStar XV. In May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare.

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

El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018.

90 Inverness Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases from us certain space at 90 Inverness Circle East, Englewood, Colorado for a period ending in December 2022. EchoStar has the option to renew this lease for four three-year periods.

Cheyenne Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases from us certain space at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in March 2019. EchoStar has the option to renew this lease for thirteen one-year periods.

Gilbert Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases from us certain space at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. EchoStar has the option to renew this lease for thirteen one-year periods.

American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017.

Collocation and Antenna Space Agreements. In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to EchoStar through March 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; and Englewood, Colorado. EchoStar may terminate any of these agreements with 180 days’ prior written notice to us. The fees for the services provided under these agreements depend, among other things, on the number of racks leased at the location.

“Subscriber-related expenses”

During the years ended December 31, 2016, 2015 and 2014, we incurred $11 million, $12 million and $9 million, respectively, for subscriber-related expenses from EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we received certain services related to placeshifting, which is used for, among other things, the DISH Anywhere mobile application. The fees for the services provided under this services agreement depended, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2017 for an additional one-year period until February 23, 2018. As a result of the completion of the Share Exchange on February 28, 2017, this services agreement with EchoStar has terminated.

DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we received, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depended, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2017 for an additional one-year period until February 23, 2018. As a result of the completion of the Share Exchange on February 28, 2017, this services agreement with EchoStar has terminated.

“Satellite and transmission expenses”

During the years ended December 31, 2016, 2015 and 2014, we incurred $681 million, $715 million and $646 million, respectively, for satellite and transmission expenses from EchoStar. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

Broadcast Agreement. Effective January 1, 2012, we and EchoStar entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which EchoStar provided broadcast services to us, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 1, 2012 to December 31, 2016. In November 2016, we and EchoStar amended the 2012 Broadcast Agreement to extend the term thereof for one additional year until December 31, 2017. The fees for services provided under the 2012 Broadcast Agreement were calculated at either: (a) EchoStar’s cost of providing the relevant service plus a fixed dollar fee, which was subject to certain adjustments; or (b) EchoStar’s cost of providing the relevant service plus a fixed margin, which depended on the nature of the services provided. As a result of the completion of the Share Exchange on February 28, 2017, the 2012 Broadcast Agreement with EchoStar has terminated.

Broadcast Agreement for Certain Sports Related Programming. In May 2010, we and EchoStar entered into a broadcast agreement pursuant to which EchoStar provided certain broadcast services to us in connection with our carriage of certain sports related programming. The term of this agreement was for ten years. The fees for the broadcast services provided under this agreement depended, among other things, upon the cost to develop and provide such services. As a result of the completion of the Share Exchange on February 28, 2017, this broadcast agreement with EchoStar has terminated.

Satellite Capacity Leased from EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below:

EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015.

EchoStar VIII. In May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015.

EchoStar IX. We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis.

EchoStar XII. The lease for EchoStar XII generally terminates upon the earlier of: (i) the end-of-life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service and the exercise of certain renewal options. We generally have the option to renew the lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised.

EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year. Prior to expiration of the initial term, we have the option to renew for an additional five-year period. Prior to expiration of the initial term, EchoStar also has the right, upon certain conditions, to renew for an additional five-year period. If either we or EchoStar exercise our respective five-year renewal options, then we have the option to renew for an additional five-year period prior to expiration of the then-current term. There can be no assurance that any options to renew this agreement will be exercised.

Nimiq 5 Agreement. During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 11.

Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in-orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite.

QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013.

Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite.

103 Degree Orbital Location/SES-3. In May 2012, EchoStar 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 orbital location (the “103 Spectrum Rights”). In June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights.

In connection with the 103 Spectrum Development Agreement, in May 2012, EchoStar also entered into a ten-year service agreement with Ciel pursuant to which EchoStar leases certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree orbital location (the “103 Service Agreement”). In June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end of life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite.

TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). In November 2016, we and EchoStar amended the 2012 TT&C Agreement to extend the term thereof for one additional year until December 31, 2017. The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the 2012 TT&C Agreement for any reason upon 60 days notice.

DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two-year agreement with EchoStar pursuant to which we received certain services associated with an online video portal. The fees for the services provided under this services agreement depended, among other things, upon the cost to develop and operate such services. We had the option to renew this agreement for successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2015, we exercised our right to renew this agreement for a one-year period ending on December 31, 2016. In December 2016, we and EchoStar amended this agreement to, among other things, extend the term thereof for one additional year until December 31, 2017. As a result of the completion of the Share Exchange on February 28, 2017, this services agreement with EchoStar has terminated.

Sling TV Holding. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. See “Related Party Transactions with DISH Network” within the related party section previously discussed. Effective July 1, 2012, DISH Network and EchoStar formed Sling TV Holding, which was owned two-thirds by DISH Network and one-third by EchoStar and was consolidated into DISH Network’s financial statements beginning July 1, 2012. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, DISH Network, EchoStar and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which DISH Network and EchoStar contributed certain assets in exchange for its respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (the “Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (the “Commercial Agreement”) pursuant to which, among other things, Sling TV Holding has: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from DISH Network and EchoStar, respectively. Since this was a formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions were recorded at historical book value for accounting purposes.

Effective August 1, 2014, EchoStar and Sling TV Holding entered into the Exchange Agreement pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. In addition, we, EchoStar and Sling TV Holding amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, EchoStar and Sling TV Holding amended and restated the Commercial Agreement, pursuant to which, among other things, Sling TV Holding: (1) continued to have certain rights and corresponding obligations with respect to its business; (2) continued to have the right, but not the obligation, to receive certain services from us and EchoStar; and (3) had a license from EchoStar to use certain of the assets distributed to EchoStar as part of the Exchange Agreement. Sling TV Holding operates, through its subsidiary Sling TV L.L.C., the Sling TV services.

Since the Exchange Agreement is among entities under common control, we recorded the difference between the historical cost basis of the assets transferred to EchoStar and our historical cost basis in EchoStar’s one-third noncontrolling interest in Sling TV Holding as a $6 million, net of deferred taxes, capital distribution in “Additional paid-in capital” on our Consolidated Balance Sheets. In addition, we recorded the initial fair value of EchoStar’s ten percent non-voting interest as a $14 million, net of deferred taxes, deemed distribution in “Additional paid-in capital” on our Consolidated Balance Sheets.

EchoStar’s ten percent non-voting interest was redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest was redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest was considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal had been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding has been adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes, on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar have been recorded as “Redeemable noncontrolling interests” on our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). On January 31, 2017, we entered into the Share Exchange Agreement with EchoStar pursuant to which, among other things, EchoStar transferred its ten percent non-voting interest in Sling TV Holding to us. As a result of the completion of the Share Exchange on February 28, 2017, we own 100% of Sling TV Holding, EchoStar no longer has any interest in Sling TV Holding, and the Commercial Agreement and the Exchange Agreement with EchoStar have terminated.

“General and administrative expenses”

During the years ended December 31, 2016, 2015 and 2014, we incurred $99 million, $92 million and $101 million, respectively, for general and administrative expenses from EchoStar. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which we had the right, but not the obligation, to receive product support from EchoStar (including certain engineering and technical support services) for all set-top boxes and related accessories that EchoStar had previously sold and in the future may sell to us. The fees for the services provided under the product support agreement were calculated at cost plus a fixed margin, which varied depending on the nature of the services provided. The term of the product support agreement was the economic life of such receivers and related accessories, unless terminated earlier. As a result of the completion of the Share Exchange on February 28, 2017, the product support agreement with EchoStar has terminated.

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

Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado was terminated effective August 10, 2016.

Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016. In December 2016, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2017.

Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016. In December 2016, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2017.

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

Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801 N. DISH Dr. in Gilbert, Arizona. This lease was for a period ending on July 31, 2017. As a result of the completion of the Share Exchange on February 28, 2017, this lease agreement with EchoStar has terminated.

Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained.

100 Inverness Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we lease from EchoStar certain space at 100 Inverness Circle East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days’ prior notice.

Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which EchoStar provided us with certain services relating to the development of web-based applications for set-top boxes for a period ending on February 1, 2017. The Application Development Agreement renewed automatically for successive one-year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice. The fees for services provided under the Application Development Agreement were calculated at EchoStar’s cost of providing the relevant service plus a fixed margin, which depended on the nature of the services provided. As a result of the completion of the Share Exchange on February 28, 2017, the Application Development Agreement with EchoStar has terminated.

XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar provided certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. In November 2016, we and EchoStar extended the term of the XiP Encryption Agreement for one additional year until December 31, 2017. The fees for the services provided under the XiP Encryption Agreement were calculated on a monthly basis based on the number of receivers utilizing such security measures each month. As a result of the completion of the Share Exchange on February 28, 2017, the XiP Encryption Agreement with EchoStar has terminated.

Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we had the right for a fixed fee to use certain trademarks, domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31, 2016. In December 2016, Sling TV L.L.C. and Sling Media, Inc. amended this agreement to, among other things, extend the term thereof on a month-to-month basis. As a result of the completion of the Share Exchange on February 28, 2017, this agreement with EchoStar has terminated.

Professional Services Agreement. Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Prior to the completion of the Share Exchange on February 28, 2017, Mr. Vivek Khemka, DISH Network’s Executive Vice President and Chief Technology Officer, provided services pursuant to the Professional Services Agreement to EchoStar as the President of EchoStar Technologies L.L.C. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. The Professional Services Agreement renewed on January 1, 2017 for an additional one-year period until January 1, 2018 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days notice. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

In connection with the completion of the Share Exchange on February 28, 2017, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other related to the Share Exchange Agreement.

Other Agreements - EchoStar

Receiver Agreement. Effective January 1, 2012, we and EchoStar entered into a receiver agreement (the “2012 Receiver Agreement”) pursuant to which we had the right, but not the obligation, to purchase digital set-top boxes, related accessories, and other equipment. In November 2016, we and EchoStar amended the 2012 Receiver Agreement to extend the term thereof for one additional year until December 31, 2017. The 2012 Receiver Agreement allowed us to purchase digital set-top boxes, related accessories and other equipment from EchoStar either: (i) at a cost (decreasing as EchoStar reduced costs and increasing as costs increase) plus a dollar mark-up which depended upon the cost of the product subject to a collar on EchoStar’s mark-up; or (ii) at cost plus a fixed margin, which depended on the nature of the equipment purchased. Under the 2012 Receiver Agreement, EchoStar’s margins increased if they were able to reduce the costs of their digital set-top boxes and their margins reduced if these costs increased. EchoStar provided us with standard manufacturer warranties for the goods sold under the 2012 Receiver Agreement. Additionally, the 2012 Receiver Agreement included an indemnification provision, whereby the parties indemnify each other for certain intellectual property matters. As a result of the completion of the Share Exchange on February 28, 2017, the 2012 Receiver Agreement with EchoStar has terminated.

For the years ended December 31, 2016, 2015 and 2014, we purchased set-top boxes and other equipment from EchoStar of $702 million, $753 million and $1.114 billion, respectively. Included in these amounts are purchases of certain broadband equipment from EchoStar under the 2012 Receiver Agreement. These amounts are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Consolidated Balance Sheets or expensed as “Subscriber acquisition costs” or “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed.

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

TiVo. On April 29, 2011, DISH Network and EchoStar entered into a settlement agreement with TiVo Inc. (“TiVo”). The settlement resolved all pending litigation between DISH Network and EchoStar, on the one hand, and TiVo, on the other hand, including litigation relating to alleged patent infringement involving certain DISH digital video recorders, or DVRs.

Under the settlement agreement, all pending litigation was dismissed with prejudice and all injunctions that permanently restrain, enjoin or compel any action by DISH Network or EchoStar were dissolved. DISH Network and EchoStar are jointly responsible for making payments to TiVo in the aggregate amount of $500 million, including an initial payment of $300 million and the remaining $200 million in six equal annual installments between 2012 and 2017. Pursuant to the terms and conditions of the agreements entered into in connection with the Spin-off of EchoStar from DISH Network, DISH Network made the initial payment to TiVo in May 2011, except for the contribution from EchoStar totaling approximately $10 million, representing an allocation of liability relating to EchoStar’s sales of DVR-enabled receivers to an international customer. Future payments will be allocated between DISH Network and EchoStar based on historical sales of certain licensed products, with DISH Network being responsible for 95% of each annual payment. Pursuant to the Share Exchange Agreement, DISH Network will be responsible for EchoStar’s allocation of the final payment to TiVo.

Patent Cross-License Agreements. In December 2011, DISH Network and EchoStar entered into separate patent cross-license agreements with the same third party whereby: (i) EchoStar and such third party licensed their respective patents to each other subject to certain conditions; and (ii) DISH Network and such third party licensed their respective patents to each other subject to certain conditions (each, a “Cross-License Agreement”). Each Cross License Agreement covers patents acquired by the respective party prior to January 1, 2017 and aggregate payments under both Cross-License Agreements total less than $10 million. Each Cross License Agreement also contains an option to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. In December 2016, DISH Network and EchoStar independently exercised their respective options to extend each Cross-License Agreement. The aggregate additional payments to such third-party was less than $3 million. Since the aggregate payments under both Cross-License Agreements were based on the combined annual revenues of DISH Network and EchoStar, DISH Network and EchoStar agreed to allocate their respective payments to such third party based on their respective percentage of combined total revenue.

Satellite and Tracking Stock Transaction with EchoStar. On February 20, 2014, we entered into the Satellite and Tracking Stock Transaction with EchoStar pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and HSSC the Transferred Satellites, including related in-orbit incentive obligations and cash interest payments of approximately $59 million and approximately $11 million in cash in exchange for the Tracking Stock; and (ii) beginning on March 1, 2014, we lease back all available satellite capacity on the Transferred Satellites. The Satellite and Tracking Stock Transaction is further described below:

Transaction Agreement. On February 20, 2014, DOLLC, DNLLC and EchoStar XI Holding L.L.C., all indirect wholly-owned subsidiaries of us, entered into the Transaction Agreement with EchoStar, HSSC and Alpha Company LLC, a wholly-owned subsidiary of EchoStar, pursuant to which, on March 1, 2014, we, among other things, transferred to EchoStar and HSSC the Transferred Satellites in exchange for the Tracking Stock. The Tracking Stock generally tracked the Hughes Retail Group. The shares of the Tracking Stock issued to us represented an aggregate 80% economic interest in the Hughes Retail Group. Since the Satellite and Tracking Stock Transaction was among entities under common control, we recorded the Tracking Stock at EchoStar’s and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. Although our investment in the Tracking Stock represented an aggregate 80% economic interest in the Hughes Retail Group, we had no operational control or significant influence over the Hughes Retail Group business, and there was no public market for the Tracking Stock. As such, the Tracking Stock was accounted for under the cost method of accounting. In connection with the completion of the Share Exchange on February 28, 2017, we transferred the EchoStar Tracking Stock to EchoStar and the HSSC Tracking Stock to HSSC. As a result, we no longer hold EchoStar Tracking Stock or HSSC Tracking Stock.

Satellite Capacity Leased from EchoStar. On February 20, 2014, we entered into satellite capacity agreements with certain subsidiaries of EchoStar pursuant to which, beginning March 1, 2014, we, among other things, lease all available satellite capacity on the Transferred Satellites. The satellite capacity agreement for EchoStar I expired on November 30, 2015. See further information under “Satellite and transmission expenses – Satellite Capacity Leased from EchoStar.”

Investor Rights Agreement. On February 20, 2014, EchoStar, HSSC, DOLLC and DNLLC (DOLLC and DNLLC, collectively referred to as the “DISH Investors”) also entered into the Investor Rights Agreement with respect to the Tracking Stock. As a result of the completion of the Share Exchange on February 28, 2017, the Investor Rights Agreement with EchoStar has terminated.

PMC. During 2008, Personalized Media Communications, Inc. (“PMC”) filed suit against DISH Network; EchoStar and Motorola Inc., in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent Nos. 5,109,414; 4,965,825; 5,233,654; 5,335,277 and 5,887,243, which relate to satellite signal processing. On May 7, 2015, DISH Network, EchoStar and PMC entered into a settlement and release agreement that provided, among other things, for a license by PMC to DISH Network and EchoStar for certain patents and patent applications and the dismissal of all of PMC’s claims in the action against DISH Network and EchoStar with prejudice. On June 4, 2015, the Court dismissed all of PMC’s claims in the action against DISH Network and EchoStar with prejudice. In June 2015, DISH Network and EchoStar agreed that EchoStar would contribute a one-time payment of $5 million towards the settlement under the agreements entered into in connection with the Spin-off and the 2012 Receiver Agreement.

gTLD Bidding Agreement. In April 2015, we and EchoStar entered into a gTLD Bidding Agreement whereby, among other things: (i) we obtained rights from EchoStar to participate in a generic top level domain (“gTLD”) auction, assuming all rights and obligations from EchoStar related to EchoStar’s application with ICANN for a particular gTLD; (ii) we agreed to reimburse EchoStar for its ICANN application fee and certain out-of-pocket expenses related to the application and the auction; and (iii) we and EchoStar agreed to split equally the net proceeds obtained by us as the losing bidder in the auction, less such fee reimbursement and out-of-pocket expenses. During the year ended December 31, 2015, we paid EchoStar approximately $1 million related to this agreement.

Rovi License Agreement. On August 19, 2016, we entered into a ten-year patent license agreement (the “Rovi License Agreement”) with Rovi Corporation (“Rovi”) and, for certain limited purposes, EchoStar. EchoStar is a party to the Rovi License Agreement solely with respect to certain provisions relating to the prior patent license agreement between EchoStar and Rovi. There are no payments between us and EchoStar under the Rovi License Agreement.

Sale of Orange, New Jersey Properties. In October 2016, we and EchoStar sold two parcels of real estate owned separately by us and EchoStar in Orange, New Jersey to a third party pursuant to a purchase and sale agreement. Pursuant to the agreement, we and EchoStar separately received our respective payments from the buyer.

Invidi. In November 2010 and April 2011, EchoStar made investments in Invidi Technologies Corporation (“Invidi”) in exchange for shares of Invidi’s Series D Preferred Stock. In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi. As a result of the transaction, EchoStar sold its ownership interest in Invidi on the same terms offered to the other shareholders of Invidi. The transaction closed in January 2017.

Hughes Broadband Sales Agency Agreement. During March 2017, DNLLC and HNS entered into a master service agreement (the “MSA”) pursuant to which DNLLC will have the right, but not the obligation, to: (i) market, promote and solicit orders for the Hughes service and related equipment; (ii) install Hughes service equipment; and (iii) purchase and distribute Hughes service equipment. Under the MSA, HNS will make certain payments to DNLLC for each Hughes service sale and installation, and DNLLC will make payments to HNS for the purchase of Hughes service equipment from HNS, which will be reimbursed by HNS after the equipment is installed and activated at the customer’s residence. The MSA has an initial term of 5 years with automatic renewal for successive one year terms. After the first anniversary of the MSA, either party has the ability to terminate the 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 MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA.

Employee Matters Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, DISH Network and EchoStar entered into an Employee Matters Agreement that addresses the transfer of employees from EchoStar 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 Transferred Businesses. DISH Network assumed employee-related liabilities relating to the Transferred Businesses as part of the Share Exchange, except that EchoStar will be responsible for certain existing employee-related litigation as well as certain pre-Share Exchange compensation and benefits for employees transferring to DISH Network in connection with the Share Exchange.

Intellectual Property and Technology License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, DISH Network and EchoStar entered into an Intellectual Property and Technology License Agreement (“IPTLA”), pursuant to which DISH Network and EchoStar license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, EchoStar granted to DISH Network a license to its intellectual property and technology for use by DISH Network in connection with its continued operation of the Transferred Businesses acquired pursuant to the Share Exchange Agreement, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to EchoStar for the continued use of all intellectual property and technology that is used in EchoStar’s retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange Agreement.

Tax Matters Agreement. In connection with the completion of the Share Exchange, DISH Network and EchoStar entered into a Tax Matters Agreement, which governs certain rights, responsibilities and obligations 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 for periods prior to the Share Exchange and DISH Network is responsible for all tax returns and tax liabilities for the Transferred Businesses from and after the Share Exchange. Both DISH Network and EchoStar have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both DISH Network and EchoStar 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 described above, which continues in full force and effect.

Other

In November 2009, Mr. Roger Lynch became employed by both DISH Network and EchoStar as an Executive Vice President. Mr. Lynch was responsible for the development and implementation of advanced technologies that are of potential utility and importance to both DISH Network and EchoStar. Mr. Lynch’s compensation consisted of cash and equity compensation and was borne by both EchoStar and DISH Network. As of January 1, 2015, Mr. Lynch is solely a DISH Network employee as Sling TV’s Chief Executive Officer and DISH Network’s Executive Vice President, Advanced Technologies.

Related Party Transactions with NagraStar L.L.C.

Prior to completion of the Share Exchange on February 28, 2017, NagraStar was a joint venture between EchoStar and Nagra USA, Inc. that is our provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. These expenses are recorded in “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Consolidated Balance Sheets.

The table below summarizes our transactions with NagraStar.


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	72,529	$	89,195	$	84,636

	As of December 31,
	2016		2015
	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,055	$	19,362
Commitments to NagraStar	$	51	$	1,532

As a result of the completion of the Share Exchange on February 28, 2017, we now own EchoStar’s joint venture interest in NagraStar.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

Redeemable Noncontrolling Interests

Use of Estimates

Cash and Cash Equivalents

Marketable Investment Securities

the fair value of our marketable investment securities compared to the carrying amount,

the historical volatility of the price of each security, and

any market and company specific factors related to each security.

Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows:


Length of Time Investment
Has Been In a Continuous		Treatment of the Decline in Value
Loss Position		(absent specific factors to the contrary)
Less than six months		Generally, considered temporary.
Six to nine months		Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary.
Greater than nine months		Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings.

we have the intent to sell the security,

it is more likely than not that we will be required to sell the security before maturity or recovery, or

we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security.

In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities.

Trade Accounts Receivable

Inventory

Property and Equipment

Impairment of Long-Lived Assets

Indefinite Lived Intangible Assets

Indefinite-Lived Intangible Assets

FCC licenses are a non-depleting asset;

existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely;

replacement DBS satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment;

maintenance expenditures to obtain future cash flows are not significant;

FCC licenses are not technologically dependent; and

we intend to use these assets indefinitely.

Other Investment Securities

Long-Term Deferred Revenue and Other Long-Term Liabilities

Sales Taxes

Income Taxes and Accounting for Uncertainty in Income Taxes

Income Taxes

Accounting for Uncertainty in Income Taxes

Fair Value Measurements

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

Deferred Debt Issuance Costs

Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information.

Revenue Recognition

We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered.

Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber.

Subscriber-Related Expenses

Subscriber Acquisition Costs

“Subscriber acquisition advertising” includes advertising and marketing expenses related to the acquisition of new Pay-TV subscribers. Advertising costs are expensed as incurred.

Equipment Lease Programs

New Accounting Pronouncements

Supplemental Data - Statements of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Data - Statements of Cash Flows

Schedule of supplemental cash flow and other non-cash data


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Cash paid for interest	$	773,500	$	852,679	$	832,654
Cash received for interest		2,932		5,606		34,534
Cash paid for income taxes		25,839		2,632		18,186
Cash paid for income taxes to DISH Network		551,693		558,220		279,234
Satellites and other assets financed under capital lease obligations		1,328		—		3,462
Satellite and Tracking Stock Transaction with EchoStar:
Transfer of property and equipment, net		-		—		432,080
Investment in EchoStar and HSSC preferred tracking stock - cost method		-		—		316,204
Transfer of liabilities and other		-		—		44,540
Capital distribution to EchoStar, net of deferred taxes of $31,274		-		—		51,466
Sling TV Exchange Transaction with EchoStar:
Transfer of property and equipment, net		-		—		8,978
Transfer of investments and intangibles, net		-		—		25,097
Capital distribution to EchoStar, net of deferred taxes of $3,542		-		—		5,845
Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489		-		—		14,011

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

12 Months Ended

Dec. 31, 2016

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

Schedule of marketable investment securities, restricted cash and cash equivalents, and other investment securities


	As of December 31,
	2016		2015
	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	3,833	$	141,335
Restricted marketable investment securities (1)		81,679		82,280
Total marketable investment securities		85,512		223,615

Restricted cash and cash equivalents (1)		681		94

Other investment securities:
Investment in EchoStar preferred tracking stock - cost method		228,795		228,795
Investment in HSSC preferred tracking stock - cost method		87,409		87,409
Other investment securities - cost method		8,167		11,046
Total other investment securities		324,371		327,250

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	410,564	$	550,959

(1)

Schedule of components of available-for-sale investments


	As of December 31,
	2016								2015
	Marketable								Marketable
	Investment		Unrealized						Investment		Unrealized
	Securities		Gains		Losses		Net		Securities		Gains		Losses		Net
	(In thousands)
Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,982	$	13	$	(132)	$	(119)	$	82,124	$	2	$	(135)	$	(133)
Corporate securities		3,530		3		—		3		90,838		3		(174)		(171)
Other		—		—		—		—		17,382		—		(2)		(2)
Equity securities		—		—		—		—		33,271		20,034		—		20,034
Total	$	85,512	$	16	$	(132)	$	(116)	$	223,615	$	20,039	$	(311)	$	19,728

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


	As of December 31,
	2016				2015
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
	(In thousands)
Debt Securities:
Less than 12 months	$	51,796	$	(131)	$	153,580	$	(306)
12 months or more		1,410		(1)		5,782		(5)
Total	$	53,206	$	(132)	$	159,362	$	(311)

Schedule of investments measured at fair value on a recurring basis


	As of December 31,
	2016								2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	702,331	$	4,126	$	698,205	$	—	$	307,406	$	25,814	$	281,592	$	—

Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,982	$	81,982	$	—		—	$	82,124	$	77,328	$	4,796	$	—
Corporate securities		3,530		—		3,530		—		90,838		—		90,838		—
Other		—		—		—		—		17,382		—		17,382		—
Equity securities		—		—		—		—		33,271		33,271		—		—
Total	$	85,512	$	81,982	$	3,530	$	—	$	223,615	$	110,599	$	113,016	$	—

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Inventory (Tables)

12 Months Ended

Dec. 31, 2016

Inventory

Schedule of inventory


	As of December 31,
	2016		2015
	(In thousands)
Finished goods	$	323,453	$	304,812
Work-in-process and service repairs		132,286		74,768
Raw materials		9,069		10,673
Total inventory	$	464,808	$	390,253

Property and Equipment and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Property and Equipment and Intangible Assets

Schedule of depreciation and amortization expense


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Equipment leased to customers	$	736,952	$	783,310	$	810,945
Satellites		61,045		61,045		68,984
Buildings, furniture, fixtures, equipment and other		66,382		63,332		76,172
Total depreciation and amortization	$	864,379	$	907,687	$	956,101

Schedule of Satellites


			Estimated
			Useful Life
			(Years)/
		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV	July 2010	61.5	15

Leased from DISH Network (1):
EchoStar XVIII	June 2016	61.5	Month to month

Leased from EchoStar (2):
EchoStar VII (3)	February 2002	119	June 2018
EchoStar IX	August 2003	121	Month to month
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XII (3)	July 2003	61.5	September 2017
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (4)	November 2012	61.5	January 2018
Nimiq 5	September 2009	72.7	September 2019
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2019

(1)

See Note 15 for further information on our Related Party Transactions with DISH Network.

(2)

See Note 15 for further information on our Related Party Transactions with EchoStar.

(3)

We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite.

(4)

We have the option to renew this lease for an additional five-year period. If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years.

Schedule of property and equipment


	Depreciable
	Life	As of December 31,
	(In Years)	2016		2015
		(In thousands)
Equipment leased to customers	2-5	$	3,014,243	$	3,439,254
EchoStar XV	15		277,658		277,658
Satellites acquired under capital lease agreements	10-15		499,819		499,819
Furniture, fixtures, equipment and other	1-10		708,313		679,221
Buildings and improvements	1-40		92,225		85,547
Land	-		5,205		5,504
Construction in progress	-		67,838		34,793
Total property and equipment			4,665,301		5,021,796
Accumulated depreciation			(2,871,822)		(2,871,456)
Property and equipment, net		$	1,793,479	$	2,150,340

Schedule of construction in progress


	As of December 31,
	2016		2015
	(In thousands)
Software projects	$	45,590	$	22,539
Other		22,248		12,254
Total construction in progress	$	67,838	$	34,793

Schedule of FCC Authorizations


	As of December 31,
	2016		2015
	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS Licenses		24,000		24,000
Total	$	635,794	$	635,794

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Long-Term Debt

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


	As of December 31,
	2016				2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
7 1/8% Senior Notes due 2016 (1)	$	—	$	—	$	1,500,000	$	1,506,750
4 5/8% Senior Notes due 2017 (2)		900,000		913,887		900,000		922,770
4 1/4% Senior Notes due 2018		1,200,000		1,228,464		1,200,000		1,207,560
7 7/8% Senior Notes due 2019		1,400,000		1,559,698		1,400,000		1,525,440
5 1/8% Senior Notes due 2020		1,100,000		1,141,866		1,100,000		1,100,000
6 3/4% Senior Notes due 2021		2,000,000		2,178,880		2,000,000		2,021,020
5 7/8% Senior Notes due 2022		2,000,000		2,114,780		2,000,000		1,889,780
5 % Senior Notes due 2023		1,500,000		1,500,315		1,500,000		1,297,500
5 7/8% Senior Notes due 2024		2,000,000		2,064,000		2,000,000		1,765,000
7 3/4% Senior Notes due 2026		2,000,000		2,270,900		—		—
Other notes payable		12,606		12,606		13,686		13,686
Subtotal		14,112,606	$	14,985,396		13,613,686	$	13,249,506
Unamortized deferred financing costs and debt discounts, net		(40,124)				(41,563)
Capital lease obligations (3)		136,146				166,492
Total long-term debt and capital lease obligations (including current portion)	$	14,208,628			$	13,738,615

(1)

On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016.

(2)

(3)

Disclosure regarding fair value of capital leases is not required.

Schedule of interest on long-term debt


		Annual
	Semi-Annual	Debt Service
	Payment Dates	Requirements
		(In thousands)
4 5/8% Senior Notes due 2017	January 15 and July 15	$	41,625
4 1/4% Senior Notes due 2018	April 1 and October 1	$	51,000
7 7/8% Senior Notes due 2019	March 1 and September 1	$	110,250
5 1/8% Senior Notes due 2020	May 1 and November 1	$	56,375
6 3/4% Senior Notes due 2021	June 1 and December 1	$	135,000
5 7/8% Senior Notes due 2022	January 15 and July 15	$	117,500
5% Senior Notes due 2023	March 15 and September 15	$	75,000
5 7/8% Senior Notes due 2024	May 15 and November 15	$	117,500
7 3/4% Senior Notes due 2026	January 1 and July 1	$	155,000

Schedule of other long term debt and capital lease obligations


	As of December 31,
	2016		2015
	(In thousands)
Satellites and other capital lease obligations	$	136,146	$	166,492
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0%		12,606		13,686
Total		148,752		180,178
Less: current portion		(34,509)		(31,928)
Other long-term debt and capital lease obligations, net of current portion	$	114,243	$	148,250

Future minimum lease payments under capital lease obligations


For the Years Ended December 31,
2017	$	76,297
2018		75,935
2019		50,320
2020		48,000
2021		48,000
Thereafter		16,000
Total minimum lease payments		314,552
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments		(153,360)
Net minimum lease payments		161,192
Less: Amount representing interest		(25,046)
Present value of net minimum lease payments		136,146
Less: Current portion		(33,412)
Long-term portion of capital lease obligations	$	102,734

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

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

+ Details

Income Taxes and Accounting for Uncertainty in Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes and Accounting for Uncertainty in Income Taxes

Schedule of components of the (provision for) benefit from income taxes


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Current (benefit) provision:
Federal	$	541,217	$	525,224	$	342,417
State		62,805		34,754		(26,163)
Foreign		9,600		(3,517)		6,990
Total current (benefit) provision		613,622		556,461		323,244

Deferred (benefit) provision:
Federal		(83,714)		(117,608)		78,420
State		(636)		10,192		14,011
Increase (decrease) in valuation allowance		(495)		(1,405)		(4,844)
Total deferred (benefit) provision		(84,845)		(108,821)		87,587
Total (benefit) provision	$	528,777	$	447,640	$	410,831

Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes


	For the Years Ended December 31,
	2016	2015	2014
	% of pre-tax income/(loss)
Statutory rate	35.0	35.0	35.0
State income taxes, net of federal benefit	3.0	3.3	2.0
Reversal of uncertain tax positions	(1.3)	(0.9)	(3.5)
Other, net	0.7	(0.4)	-
Total (benefit) provision for income taxes	37.4	37.0	33.5

Schedule of deferred tax assets and liabilities


	As of December 31,
	2016		2015
	(In thousands)
Deferred tax assets:
NOL, credit and other carryforwards	$	7,680	$	12,193
Accrued expenses		50,618		36,774
Stock-based compensation		16,561		15,708
Deferred revenue		19,064		27,840
Total deferred tax assets		93,923		92,515
Valuation allowance		(3,315)		(3,810)
Deferred tax asset after valuation allowance		90,608		88,705

Deferred tax liabilities:
Depreciation		(712,595)		(806,105)
FCC authorizations and other intangible amortization		(218,279)		(217,827)
Unrealized (gains) losses on available for sale and other investments		—		(7,240)
Bases difference in partnerships and cost method investments (1)		(122,620)		(118,977)
Other liabilities		(23,973)		(27,572)
Total deferred tax liabilities		(1,077,467)		(1,177,721)
Net deferred tax asset (liability)	$	(986,859)	$	(1,089,016)

(1)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities


	For the Years Ended December 31,
Unrecognized tax benefit	2016		2015		2014
	(In thousands)
Balance as of beginning of period	$	202,400	$	207,675	$	145,884
Additions based on tax positions related to the current year		39,752		12,502		69,643
Additions based on tax positions related to prior years		395		14,593		58,963
Reductions based on tax positions related to prior years		(34,761)		(24,905)		(16,379)
Reductions based on tax positions related to settlements with taxing authorities		(3,628)		(2,648)		(42,023)
Reductions based on tax positions related to the lapse of the statute of limitations		(3,118)		(4,817)		(8,413)
Balance as of end of period	$	201,040	$	202,400	$	207,675

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

Schedule of expense recognized related to the 401(k) Plan


	For the Years Ended December 31,
Expense Recognized Related to the 401(k) Plan	2016		2015		2014
	(In thousands)
Total matching contributions, net of forfeitures	$	6,546	$	6,145	$	6,222
Discretionary stock contributions, net of forfeitures	$	23,158	$	25,261	$	25,972

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Stock-Based Compensation

Schedule of exercise prices for stock options outstanding and exercisable associated with employees


					Options Outstanding				Options Exercisable
					Number Outstanding as of December 31, 2016	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable as of December 31, 2016	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price
$	—	-	$	10.00	207,400	1.51	$	6.34	207,400	1.51	$	6.35
$	10.01	-	$	20.00	1,885,085	3.47	$	15.44	85,085	2.94	$	16.73
$	20.01	-	$	30.00	1,617,876	4.41	$	26.64	1,067,876	4.22	$	25.98
$	30.01	-	$	40.00	1,426,222	5.88	$	36.11	257,822	5.40	$	34.96
$	40.01	-	$	50.00	428,900	9.08	$	46.22	7,800	2.03	$	42.84
$	50.01	-	$	60.00	1,532,000	8.53	$	56.98	48,500	4.00	$	57.58
$	60.01	-	$	70.00	796,250	7.11	$	66.56	189,050	7.16	$	65.51
$	70.01	-	$	80.00	20,000	3.00	$	72.89	20,000	3.00	$	72.89
$	—	-	$	80.00	7,913,733	5.69	$	36.22	1,883,533	4.29	$	29.98

Schedule of stock option activity associated with employees


	For the Years Ended December 31,
	2016			2015			2014
	Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price
Total options outstanding, beginning of period	6,807,169	$	31.17	10,214,344	$	25.29	11,938,090	$	22.49
Granted	1,901,000	$	54.41	452,000	$	69.11	667,750	$	63.23
Exercised	(403,834)	$	23.26	(1,731,975)	$	16.26	(2,233,496)	$	20.49
Forfeited and cancelled	(390,602)	$	50.28	(2,127,200)	$	23.12	(158,000)	$	41.84
Total options outstanding, end of period	7,913,733	$	36.22	6,807,169	$	31.17	10,214,344	$	25.29
Performance-based options outstanding, end of period (1)	4,312,000	$	31.39	3,904,500	$	28.03	5,926,500	$	25.15
Exercisable at end of period	1,883,533	$	29.98	1,927,069	$	26.87	3,107,544	$	19.81

(1)

These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below.

Schedule of realized tax benefits from stock awards exercised


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Tax benefit from stock awards exercised	$	5,006	$	33,716	$	42,334

Schedule of aggregate intrinsic value of stock options associated with employees


	As of December 31, 2016
	Options		Options
	Outstanding		Exercisable
	(In thousands)
Aggregate intrinsic value	$	179,033	$	54,382

Schedule of restricted stock unit activity


	For the Years Ended December 31,
	2016			2015			2014
	Restricted Stock Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Awards		Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period	1,382,250	$	32.01	1,731,332	$	32.60	1,863,165	$	29.27
Granted	67,060	$	56.35	62,530	$	68.79	316,500	$	63.57
Vested	(60)	$	49.15	(125,280)	$	63.92	(278,000)	$	45.04
Forfeited and cancelled	(113,250)	$	45.12	(286,332)	$	29.67	(170,333)	$	33.43
Total restricted stock units outstanding, end of period (1)	1,336,000	$	32.11	1,382,250	$	32.01	1,731,332	$	32.60

(1)

All restricted stock units outstanding are Restricted Performance Units. See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below.

Schedule of awards outstanding pursuant to performance-based stock incentive plans


	As of December 31, 2016
Performance-Based Stock Options	Number of Awards	Weighted- Average Grant Price
2013 LTIP	1,472,000	$	43.50
Other employee performance awards	2,840,000	$	25.12
Total	4,312,000	$	31.39

Restricted Performance Units
2013 LTIP	736,000
Other employee performance awards	600,000
Total	1,336,000

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


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Subscriber-related	$	694	$	2,164	$	1,859
General and administrative		12,343		17,035		32,165
Total non-cash, stock based compensation	$	13,037	$	19,199	$	34,024

Schedule of assumptions of Black-Scholes option valuation model


	For the Years Ended December 31,
Stock Options	2016							2015							2014
Risk-free interest rate		1.06	%	-		2.27	%		1.40	%	-		2.19	%		1.80	%	-		2.84	%
Volatility factor		26.12	%	-		33.37	%		26.42	%	-		36.22	%		28.53	%	-		38.62	%
Expected term of options in years		5.4		-		10.0			5.5		-		7.8			5.5		-		9.0
Weighted-average fair value of options granted	$	12.45		-	$	26.86		$	16.14		-	$	29.73		$	19.08		-	$	29.20

LTIP 2008, LTIP 2013 and Other

Stock-Based Compensation

Schedule of non-cash, stock-based compensation expense recognized

	For the Years Ended December 31,
Non-Cash, Stock-Based Compensation Expense Recognized	2016		2015		2014
	(In thousands)
2013 LTIP	$	2,565	$	10,157	$	12,361
Other employee performance awards		1,424		1,694		14,095
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	3,989	$	11,851	$	26,456


Estimated Remaining Non-Cash, Stock-Based Compensation Expense	2013 LTIP		Other Employee Performance Awards
	(In thousands)
Expense estimated to be recognized during 2017	$	7,067	$	1,070
Estimated contingent expense subsequent to 2017		40,469		134,580
Total estimated remaining expense over the term of the plan	$	47,536	$	135,650

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies

Schedule of future maturities of long-term debt, capital lease and contractual obligations


	Payments due by period
	Total		2017		2018		2019		2020		2021		Thereafter
	(In thousands)
Long-term debt obligations	$	14,112,606	$	901,097	$	1,201,163	$	1,401,233	$	1,101,306	$	2,001,385	$	7,506,422
Capital lease obligations		136,146		33,412		36,260		19,503		19,137		20,615		7,219
Interest expense on long-term debt and capital lease obligations		4,973,057		877,477		799,543		771,490		631,593		534,350		1,358,604
Satellite-related obligations		1,615,590		382,348		348,617		301,102		241,371		208,196		133,956
Operating lease obligations		139,673		41,334		25,266		18,954		13,728		9,332		31,059
Purchase obligations		2,086,659		1,649,341		275,669		130,230		16,386		8,833		6,200
Total	$	23,063,731	$	3,885,009	$	2,686,518	$	2,642,512	$	2,023,521	$	2,782,711	$	9,043,460

Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts

Summary of activity in the allowance for doubtful accounts


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year
	(In thousands)
For the years ended:
December 31, 2016	$	20,972	$	149,603	$	(153,579)	$	16,996
December 31, 2015	$	23,520	$	94,205	$	(96,753)	$	20,972
December 31, 2014	$	15,981	$	151,016	$	(143,477)	$	23,520

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data (Unaudited)

Schedule of quarterly results of operations


	For the Three Months Ended
	March 31,		June 30,		September 30,		December 31,
	(In thousands)
Year ended December 31, 2016:
Total revenue	$	3,672,154	$	3,719,415	$	3,632,115	$	3,613,359
Operating income (loss)		571,665		612,686		491,113		525,505
Net income (loss) attributable to DISH DBS		262,234		263,394		177,114		213,786

Year ended December 31, 2015:
Total revenue	$	3,621,062	$	3,724,434	$	3,624,548	$	3,668,205
Operating income (loss)		506,289		553,024		461,038		532,327
Net income (loss) attributable to DISH DBS		187,932		212,113		172,154		207,936

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2016

Related Party Transactions

Schedule of transactions with NagraStar


	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	72,529	$	89,195	$	84,636

	As of December 31,
	2016		2015
	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,055	$	19,362
Commitments to NagraStar	$	51	$	1,532

Organization and Business Activities (Details) customer in Thousands	Dec. 31, 2016 customer
Organization and Business Activities
Number of subscribers	13,671

Summary of Significant Accounting Policies (Details)	1 Months Ended	12 Months Ended
Summary of Significant Accounting Policies (Details)	Jul. 31, 2014	Dec. 31, 2016	Feb. 28, 2017
Minimum
Marketable Investment Securities
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary		6 months
Length of time an investment has been in a continuous loss position in which the decline in value is considered other-than-temporary		9 months
Property and Equipment
Useful life of property and equipment		1 year
Revenue Recognition
Period of deferral for the portion of subscriber fees that are deferred		4 years
Maximum
Marketable Investment Securities
Length of time an investment has been in a continuous loss position in which the decline in value is considered as temporary		6 months
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary		9 months
Property and Equipment
Useful life of property and equipment		40 years
Long-Term Deferred Revenue, Distribution and Carriage Payments
Deferred upfront payment, amortization period		10 years
Revenue Recognition
Period of deferral for the portion of subscriber fees that are deferred		5 years
Dish Network \| Sling TV Holding
Redeemable Noncontrolling Interest
Ownership Percentage			100.00%
Sling TV Holding \| EchoStar
Redeemable Noncontrolling Interest
Ownership percentage owned by noncontrolling owners	10.00%
Number of days following the fifth anniversary of the Exchange Agreement to redeem	60 days

Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash paid for interest	$ 773,500	$ 852,679	$ 832,654
Cash received for interest	2,932	5,606	34,534
Cash paid for income taxes	25,839	2,632	18,186
Cash paid for income taxes to DISH Network	551,693	558,220	279,234
Satellites and other assets financed under capital lease obligations	1,328		3,462
Satellite and Tracking Stock Transaction with EchoStar:
Capital distribution to EchoStar, net of deferred taxes of $31,274			51,466
Capital distribution to EchoStar, net of deferred taxes of $3,542			11,963
Deferred tax in capital distribution to EchoStar			3,542
Deferred tax in deemed distribution of redeemable noncontrolling interest			8,489
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax			14,011
EchoStar
Satellite and Tracking Stock Transaction with EchoStar:
Cost Method Investments	$ 228,795	$ 228,795
Deferred tax in the capital distribution to EchoStar relating to satellite and tracking stock transaction			31,274
Satellite and Tracking Stock Transaction \| EchoStar
Satellite and Tracking Stock Transaction with EchoStar:
Transfer of property and equipment, net			432,080
Cost Method Investments			316,204
Transfer of liabilities and other			44,540
Capital distribution to EchoStar, net of deferred taxes of $31,274			51,466
Sling TV Exchange Transaction \| EchoStar
Satellite and Tracking Stock Transaction with EchoStar:
Transfer of property and equipment, net			8,978
Transfer of investments and intangibles, net			25,097
Capital distribution to EchoStar, net of deferred taxes of $3,542			5,845
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax			$ 14,011

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Current marketable investment securities	$ 3,833	$ 141,335
Restricted marketable investment securities(1)	81,679	82,280
Total marketable investment securities	85,512	223,615
Restricted cash and cash equivalents (1)	681	94
Total other investment securities	324,371	327,250
Total marketable investment securities, restricted cash and cash equivalents	$ 410,564	550,959
Maximum maturities of commercial paper	365 days
Maximum maturities of corporate securities	18 months
EchoStar
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Other investment securities - cost method	$ 228,795	228,795
HSSC
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Other investment securities - cost method	87,409	87,409
Other investment securities Member
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Other investment securities - cost method	$ 8,167	$ 11,046

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investment in Tracking Stock (Details) - Satellite and Tracking Stock Transaction $ in Thousands		12 Months Ended
	Feb. 20, 2014 USD ($) item shares	Dec. 31, 2014 USD ($)
Other investment securities:
Percentage of economic interest in the Hughes Retail Group	80.00%
EchoStar and HSSC
Other investment securities:
Number of owned satellites transferred and leased back \| item	5
Liabilities Transferred	$ 59,000
Cash in exchange for shares of series of preferred tracking stock issued	11,000
Capital transaction	356,000
Capital transaction recorded in additional paid-in capital	$ 51,000
EchoStar
Other investment securities:
Liabilities Transferred		$ 44,540
Preferred tracking stock issued by related party \| shares	6,290,499
Historical cost of tracking stock	$ 229,000
HSSC
Other investment securities:
Preferred tracking stock issued by related party \| shares	81.128
Historical cost of tracking stock	$ 87,000

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)	$ (116)	$ 19,728
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss)	1,000	12,000
Components of available-for-sale investments
Debt securities	3,833	141,335
Total marketable investment securities	85,512	223,615
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	16	20,039
Unrealized Losses	(132)	(311)
Unrealized Gains Losses, Net	(116)	19,728
Contractual maturities of restricted and non-restricted marketable investment securities
Debt securities with contractual maturities within one year	51,000
Debt securities with contractual maturities extending longer than one year through and including five years	35,000
U.S. Treasury and agency securities
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)	(119)	(133)
Components of available-for-sale investments
Debt securities	81,982	82,124
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	13	2
Unrealized Losses	(132)	(135)
Unrealized Gains Losses, Net	(119)	(133)
Corporate securities
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)	3	(171)
Components of available-for-sale investments
Debt securities	3,530	90,838
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	3	3
Unrealized Losses		(174)
Unrealized Gains Losses, Net	$ 3	(171)
Other (including restricted)
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)		(2)
Components of available-for-sale investments
Debt securities		17,382
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Losses		(2)
Unrealized Gains Losses, Net		(2)
Equity Securities
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)		20,034
Components of available-for-sale investments
Equity securities		33,271
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains		20,034
Unrealized Gains Losses, Net		$ 20,034

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Marketable Investment Securities in a Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair value of marketable investment securities in a loss position
Total	$ 53,206	$ 159,362
Unrealized loss on marketable investment securities in a loss position
Total	(132)	(311)
Debt Securities
Fair value of marketable investment securities in a loss position
Less than 12 Months	51,796	153,580
12 Months or More	1,410	5,782
Unrealized loss on marketable investment securities in a loss position
Less than 12 months	(131)	(306)
12 months or more	$ (1)	$ (5)

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair value of marketable securities
Debt securities	$ 3,833	$ 141,335
Total marketable investment securities	85,512	223,615
Transfer of investments from Level 1 to Level 2	0	0
Transfer of investments from Level 2 to Level 1	0
U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities	81,982	82,124
Corporate securities
Fair value of marketable securities
Debt securities	3,530	90,838
Other (including restricted)
Fair value of marketable securities
Debt securities		17,382
Equity Securities
Fair value of marketable securities
Equity securities		33,271
Fair value measurements on recurring basis
Fair value of marketable securities
Cash equivalents (including restricted)	702,331	307,406
Total marketable investment securities	85,512	223,615
Fair value measurements on recurring basis \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities	81,982	82,124
Fair value measurements on recurring basis \| Corporate securities
Fair value of marketable securities
Debt securities	3,530	90,838
Fair value measurements on recurring basis \| Other (including restricted)
Fair value of marketable securities
Debt security		17,382
Fair value measurements on recurring basis \| Equity Securities
Fair value of marketable securities
Equity securities		33,271
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Cash equivalents (including restricted)	4,126	25,814
Total marketable investment securities	81,982	110,599
Fair value measurements on recurring basis \| Level 1 \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities	81,982	77,328
Fair value measurements on recurring basis \| Level 1 \| Equity Securities
Fair value of marketable securities
Equity securities		33,271
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Cash equivalents (including restricted)	698,205	281,592
Total marketable investment securities	3,530	113,016
Fair value measurements on recurring basis \| Level 2 \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		4,796
Fair value measurements on recurring basis \| Level 2 \| Corporate securities
Fair value of marketable securities
Debt securities	$ 3,530	90,838
Fair value measurements on recurring basis \| Level 2 \| Other (including restricted)
Fair value of marketable securities
Debt security		$ 17,382

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory
Finished goods	$ 323,453	$ 304,812
Work-in-process and service repairs	132,286	74,768
Raw materials	9,069	10,673
Total Inventory	$ 464,808	$ 390,253

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and Equipment
Total property and equipment	$ 4,665,301	$ 5,021,796
Accumulated depreciation	(2,871,822)	(2,871,456)
Property and equipment, net	$ 1,793,479	2,150,340
Minimum
Property and Equipment
Depreciable life of assets	1 year
Maximum
Property and Equipment
Depreciable life of assets	40 years
Equipment Lease To Customers [Member]
Property and Equipment
Total property and equipment	$ 3,014,243	3,439,254
Equipment Lease To Customers [Member] \| Minimum
Property and Equipment
Depreciable life of assets	2 years
Equipment Lease To Customers [Member] \| Maximum
Property and Equipment
Depreciable life of assets	5 years
EchoStar XV
Property and Equipment
Total property and equipment	$ 277,658	277,658
Depreciable life of assets	15 years
Satellites acquired under capital lease agreements
Property and Equipment
Total property and equipment	$ 499,819	499,819
Satellites acquired under capital lease agreements \| Minimum
Property and Equipment
Depreciable life of assets	10 years
Satellites acquired under capital lease agreements \| Maximum
Property and Equipment
Depreciable life of assets	15 years
Furniture, fixtures, equipment and other
Property and Equipment
Total property and equipment	$ 708,313	679,221
Furniture, fixtures, equipment and other \| Minimum
Property and Equipment
Depreciable life of assets	1 year
Furniture, fixtures, equipment and other \| Maximum
Property and Equipment
Depreciable life of assets	10 years
Buildings and improvements
Property and Equipment
Total property and equipment	$ 92,225	85,547
Buildings and improvements \| Minimum
Property and Equipment
Depreciable life of assets	1 year
Buildings and improvements \| Maximum
Property and Equipment
Depreciable life of assets	40 years
Land
Property and Equipment
Total property and equipment	$ 5,205	5,504
Construction in progress
Property and Equipment
Total property and equipment	67,838	34,793
Software projects
Property and Equipment
Total property and equipment	45,590	22,539
Other
Property and Equipment
Total property and equipment	$ 22,248	$ 12,254

Property and Equipment - Narrative (Details) $ in Thousands	12 Months Ended
Property and Equipment - Narrative (Details) $ in Thousands	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Depreciation and amortization expense
Depreciation and amortization expense \| $	$ 864,379	$ 907,687	$ 956,101
Equipment leased to customers
Depreciation and amortization expense
Depreciation and amortization expense \| $	736,952	783,310	810,945
Satellites
Depreciation and amortization expense
Depreciation and amortization expense \| $	$ 61,045	61,045	68,984
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator	13
Owned Satellites	1
Number of satellites utilized under operating lease	9
Number of satellites utilized under capital lease	2
Buildings, furniture, fixtures, equipment and other
Depreciation and amortization expense
Depreciation and amortization expense \| $	$ 66,382	$ 63,332	$ 76,172
Dish Network \| Satellites
Depreciation and amortization expense
Number of satellites utilized under operating lease	1

Property and Equipment - Pay TV Satellites (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Property and Equipment
Number of other satellites to be relocated in the event of failure or loss of any satellite \| item	1
Depreciation and amortization	$ 864,379	$ 907,687	$ 956,101
FCC authorizations	635,794	635,794
DBS Licenses
Property and Equipment
FCC authorizations	611,794	611,794
MVDDS Licenses
Property and Equipment
FCC authorizations	$ 24,000	$ 24,000
Minimum
Property and Equipment
Depreciable life of assets	1 year
Maximum
Property and Equipment
Depreciable life of assets	40 years
EchoStar XV
Property and Equipment
Depreciable life of assets	15 years
EchoStar XVI
Property and Equipment
Option to renew the lease for an additional period	5 years
Another option to renew the lease if renewal option exercised	5 years

Long-Term Debt - Long term debt (Details) - USD ($) $ in Thousands									12 Months Ended
	Jun. 13, 2016	Nov. 20, 2014	Apr. 05, 2013	Jul. 26, 2012	May 16, 2012	May 05, 2011	Oct. 05, 2009	Aug. 17, 2009	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 27, 2012
Long-term debt
Carrying Value									$ 14,112,606	$ 13,613,686
Fair Value									14,985,396	13,249,506
Unamortized deferred financing costs and debt discount, net									(40,124)	(41,563)
Capital lease obligations (3)									136,146	166,492
Total long-term debt and capital lease obligations (including current portion)									$ 14,208,628	13,738,615
Percentage of principal amount at which notes may be required to be repurchased in event of change of control									101.00%
Principal balance of debt redeemed									$ 1,500,000	650,001	$ 1,099,999
7 1/8% Senior Notes due 2016
Long-term debt
Carrying Value										1,500,000
Fair Value										$ 1,506,750
Interest rate (as a percent)									7.125%	7.125%
4 5/8% Senior Notes due 2017
Long-term debt
Carrying Value									$ 900,000	$ 900,000
Fair Value									$ 913,887	$ 922,770
Interest rate (as a percent)									4.625%	4.625%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount					$ 900,000
Term of debt instrument					5 years
Annual Debt Service Requirements									$ 41,625
4 1/4% Senior Notes due 2018
Long-term debt
Carrying Value									1,200,000	$ 1,200,000
Fair Value									$ 1,228,464	$ 1,207,560
Interest rate (as a percent)									4.25%	4.25%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount			$ 1,200,000
Term of debt instrument			5 years
Annual Debt Service Requirements									$ 51,000
7 7/8% Senior Notes due 2019
Long-term debt
Carrying Value									1,400,000	$ 1,400,000
Fair Value									$ 1,559,698	$ 1,525,440
Interest rate (as a percent)									7.875%	7.875%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount							$ 400,000	$ 1,000,000
Term of debt instrument							10 years	10 years
Annual Debt Service Requirements									$ 110,250
5 1/8% Senior Notes due 2020
Long-term debt
Carrying Value									1,100,000	$ 1,100,000
Fair Value									$ 1,141,866	$ 1,100,000
Interest rate (as a percent)									5.125%	5.125%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount			$ 1,100,000
Term of debt instrument			7 years
Annual Debt Service Requirements									$ 56,375
6 3/4% Senior Notes due 2021
Long-term debt
Carrying Value									2,000,000	$ 2,000,000
Fair Value									$ 2,178,880	$ 2,021,020
Interest rate (as a percent)						6.75%			6.75%	6.75%		6.75%	6.75%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount						$ 2,000,000
Term of debt instrument						10 years
Annual Debt Service Requirements									$ 135,000
5 7/8% Senior Notes due 2022
Long-term debt
Carrying Value									2,000,000	$ 2,000,000
Fair Value									$ 2,114,780	$ 1,889,780
Interest rate (as a percent)				5.875%					5.875%	5.875%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount				$ 1,000,000	$ 1,000,000
Term of debt instrument				10 years
Annual Debt Service Requirements									$ 117,500
5% Senior Notes due 2023
Long-term debt
Carrying Value									1,500,000	$ 1,500,000
Fair Value									$ 1,500,315	$ 1,297,500
Interest rate (as a percent)									5.00%	5.00%				5.00%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount														$ 1,500,000
Annual Debt Service Requirements									$ 75,000
5 7/8% Senior Notes due 2024
Long-term debt
Carrying Value									2,000,000	$ 2,000,000
Fair Value									$ 2,064,000	$ 1,765,000
Interest rate (as a percent)									5.875%	5.875%
Redemption price as a percentage of principal amount									100.00%
Aggregate principal amount		$ 2,000,000
Term of debt instrument		10 years
Annual Debt Service Requirements									$ 117,500
5 7/8% Senior Notes due 2024 \| Redemption Prior to June 1, 2014
Long-term debt
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions									35.00%
7 3/4% Senior Notes due 2026
Long-term debt
Carrying Value									$ 2,000,000
Fair Value									$ 2,270,900
Interest rate (as a percent)									7.75%	7.75%
Aggregate principal amount	$ 2,000,000
Term of debt instrument	10 years
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions									35.00%
Annual Debt Service Requirements									$ 155,000
Other notes payable
Long-term debt
Carrying Value									12,606	$ 13,686
Fair Value									$ 12,606	$ 13,686

Long-Term Debt - Other Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other long-term debt and capital lease obligations
Total	$ 148,752	$ 180,178
Less current portion	(34,509)	(31,928)
Other long-term debt and capital lease obligations, net of current portion	114,243	148,250
Capital lease obligations.
Other long-term debt and capital lease obligations
Total	136,146	166,492
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6%
Other long-term debt and capital lease obligations
Total	$ 12,606	$ 13,686
Interest rate (as a percent)	6.00%

Long-Term Debt- Capital lease obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital lease obligations
Estimated fair value of satellites acquired under capital leases	$ 500,000	$ 500,000
Accumulated depreciation on satellites acquired under capital leases	365,000	322,000
Depreciation expense - capital leases	43,000	$ 43,000	$ 43,000
Future minimum lease payments under the capital lease obligation, together with the present value of the net minimum lease payments
2017	76,297
2018	75,935
2019	50,320
2020	48,000
2021	48,000
Thereafter	16,000
Total minimum lease payments	314,552
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments	(153,360)
Net minimum lease payments	161,192
Less: Amount representing interest	(25,046)
Present value of net minimum lease payments	136,146
Less: Current portion	(33,412)
Long-term portion of capital lease obligations	$ 102,734
FSS Satellite Anik F3
Capital lease obligations
Ku-band capacity leased (as a percent)	100.00%
Term of capital lease	15 years
Canadian DBS Satellite Ciel II
Capital lease obligations
Satellite capacity leased (as a percent)	100.00%
Initial term of capital lease	10 years

Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net operating loss carryforwards
Cash paid for income taxes to DISH Network	$ 551,693	$ 558,220	$ 279,234
Net operating loss carryforwards	0
Current (provision) benefit:
Federal	541,217	525,224	342,417
State	62,805	34,754	(26,163)
Foreign	9,600	(3,517)	6,990
Total current (benefit) provision	613,622	556,461	323,244
Deferred (provision) benefit:
Federal	(83,714)	(117,608)	78,420
State	(636)	10,192	14,011
Increase (decrease) in valuation allowance	(495)	(1,405)	(4,844)
Total deferred (benefit) provision	(84,845)	(108,821)	87,587
Total (benefit) provision	528,777	447,640	410,831
Income (loss) before income taxes	1,412,558	$ 1,210,533	$ 1,225,891
Income (loss) from foreign operations	$ 8,000
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes
Statutory rate (as a percent)	35.00%	35.00%	35.00%
State income taxes, net of Federal benefit (as a percent)	3.00%	3.30%	2.00%
Reveral of uncertain tax positions (as a percent)	(1.30%)	(0.90%)	(3.50%)
Other (as a percent)	0.70%	(0.40%)
Total (benefit) provision for income taxes	37.40%	37.00%	33.50%
Deferred tax assets:
NOL, credit and other carryforwards	$ 7,680	$ 12,193
Accrued expenses	50,618	36,774
Stock-based compensation	16,561	15,708
Deferred revenue	19,064	27,840
Total deferred tax assets	93,923	92,515
Valuation allowance	(3,315)	(3,810)
Deferred tax asset after valuation allowance	90,608	88,705
Deferred tax liabilities:
Depreciation	(712,595)	(806,105)
FCC authorizations and other intangible amortization	(218,279)	(217,827)
Unrealized gains on available for sale investments		(7,240)
Bases difference in partnerships and cost method investments	(122,620)	(118,977)
Other liabilities	(23,973)	(27,572)
Total deferred tax liabilities	(1,077,467)	(1,177,721)
Net deferred tax asset (liability)	(986,859)	(1,089,016)
Reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities
Balance as of beginning of period	202,400	207,675	$ 145,884
Additions based on tax positions related to the current year	39,752	12,502	69,643
Additions based on tax positions related to prior years	395	14,593	58,963
Reductions based on tax positions related to prior years	(34,761)	(24,905)	(16,379)
Reductions based on tax positions related to settlements with taxing authorities	(3,628)	(2,648)	(42,023)
Reductions based on tax positions related to the lapse of the statute of limitations	(3,118)	(4,817)	(8,413)
Balance as of end of period	201,040	202,400	207,675
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate	181,000
Interest and penalty (benefit) expense	5,000	3,000	$ 3,000
Accrued interest and penalties	19,000	$ 14,000
State
Net operating loss carryforwards
Tax benefits related to credit carryforwards	$ 12,000

Employee Benefit Plans (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
401(k) Employee Savings Plan
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan	50.00%
Employer maximum annual contribution per employee under 401(k) plan	$ 2,500
Expense recognized related to 401(k) plan
Matching contributions, net of forfeitures, under 401(k) plan	6,546,000	$ 6,145,000	$ 6,222,000
Discretionary stock contributions, net of forfeitures, under 401(k) plan	$ 23,158,000	$ 25,261,000	$ 25,972,000
Employee Stock Purchase Plan
Expense recognized related to 401(k) plan
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP	3 months
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP	$ 25,000
Employee Stock Purchase Plan \| Class A common stock
Expense recognized related to 401(k) plan
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP)	2.8
Shares of common stock available for future grant under stock incentive plans	1.0
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP	85.00%
Number of shares of common stock purchased under ESPP	0.2	0.1	0.1

Stock-Based Compensation (Details) - shares	12 Months Ended
Stock-Based Compensation (Details) - shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock-Based Compensation
Stock Awards Outstanding (in shares)	7,913,733
DISH Network Awards
Stock-Based Compensation
Percentage of stock awards vesting per year (as a percent)	20.00%
Class A common stock \| DISH Network Awards
Stock-Based Compensation
Shares of common stock available for future grant under stock incentive plans	67,600,000
Stock Options \| Maximum
Stock-Based Compensation
Expiration term	10 years
Stock Options \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	7,913,733	6,807,169	10,214,344	11,938,090
Stock Options \| Class A common stock \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	7,900,000
Stock Options \| Long-Term Performance Based Plans \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	4,312,000	3,904,500	5,926,500
Restricted Stock Units \| DISH Network Awards
Stock-Based Compensation
Restricted stock units outstanding (in shares)	1,336,000	1,382,250	1,731,332	1,863,165
Restricted Stock Units \| Held by DISH DBS employees \| DISH Network Awards
Stock-Based Compensation
Restricted stock units outstanding (in shares)	1,336,000

Stock-Based Compensation - Stock Options Outstanding And Exercisable Associated With Employees (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 80.00
Number of stock options outstanding (in shares)	7,913,733
Outstanding, Weighted-Average Remaining Contractual Life	5 years 8 months 9 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 36.22
Number of stock options exercisable	1,883,533
Exercisable, Weighted-Average Remaining Contractual Life	4 years 3 months 15 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 29.98
Stock Options \| DISH Network Awards
Exercise prices for stock options outstanding and exercisable:
Number of stock options outstanding (in shares)	7,913,733	6,807,169	10,214,344	11,938,090
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 36.22	$ 31.17	$ 25.29	$ 22.49
Number of stock options exercisable	1,883,533	1,927,069	3,107,544
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 29.98	$ 26.87	$ 19.81
Range of Exercise Prices $00.00 - $10.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 10.00
Number of stock options outstanding (in shares)	207,400
Outstanding, Weighted-Average Remaining Contractual Life	1 year 6 months 4 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 6.34
Number of stock options exercisable	207,400
Exercisable, Weighted-Average Remaining Contractual Life	1 year 6 months 4 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 6.35
Range Of Exercise Prices $10.01 - $20.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	10.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 20.00
Number of stock options outstanding (in shares)	1,885,085
Outstanding, Weighted-Average Remaining Contractual Life	3 years 5 months 19 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 15.44
Number of stock options exercisable	85,085
Exercisable, Weighted-Average Remaining Contractual Life	2 years 11 months 9 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 16.73
Range of Exercise Prices $20.01 - $30.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	20.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 30.00
Number of stock options outstanding (in shares)	1,617,876
Outstanding, Weighted-Average Remaining Contractual Life	4 years 4 months 28 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 26.64
Number of stock options exercisable	1,067,876
Exercisable, Weighted-Average Remaining Contractual Life	4 years 2 months 19 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 25.98
Range of Exercise Prices $30.01 - $40.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	30.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 40.00
Number of stock options outstanding (in shares)	1,426,222
Outstanding, Weighted-Average Remaining Contractual Life	5 years 10 months 17 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 36.11
Number of stock options exercisable	257,822
Exercisable, Weighted-Average Remaining Contractual Life	5 years 4 months 24 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 34.96
Range of Exercise Prices $40.01 - $50.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	40.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 50.00
Number of stock options outstanding (in shares)	428,900
Outstanding, Weighted-Average Remaining Contractual Life	9 years 29 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 46.22
Number of stock options exercisable	7,800
Exercisable, Weighted-Average Remaining Contractual Life	2 years 11 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 42.84
Range of Exercise Prices $50.01 - $60.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	50.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 60.00
Number of stock options outstanding (in shares)	1,532,000
Outstanding, Weighted-Average Remaining Contractual Life	8 years 6 months 11 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 56.98
Number of stock options exercisable	48,500
Exercisable, Weighted-Average Remaining Contractual Life	4 years
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 57.58
Range of Exercise Prices $60.01 - $70.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	60.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 70.00
Number of stock options outstanding (in shares)	796,250
Outstanding, Weighted-Average Remaining Contractual Life	7 years 1 month 10 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 66.56
Number of stock options exercisable	189,050
Exercisable, Weighted-Average Remaining Contractual Life	7 years 1 month 28 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 65.51
Range of Exercise Prices $70.01 - $70.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	70.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 80.00
Number of stock options outstanding (in shares)	20,000
Outstanding, Weighted-Average Remaining Contractual Life	3 years
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 72.89
Number of stock options exercisable	20,000
Exercisable, Weighted-Average Remaining Contractual Life	3 years
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 72.89

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock option activity
Total options outstanding, end of period (in shares)	7,913,733
Exercisable at the end of the period (in shares)	1,883,533
Weighted-Average Exercise Price
Total options outstanding at the end of the period (in dollars per share)	$ 36.22
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 29.98
Stock Options \| DISH Network Awards
Stock option activity
Total options outstanding, beginning of period (in shares)	6,807,169	10,214,344	11,938,090
Granted (in shares)	1,901,000	452,000	667,750
Exercised (in shares)	(403,834)	(1,731,975)	(2,233,496)
Forfeited and cancelled (in shares)	(390,602)	(2,127,200)	(158,000)
Total options outstanding, end of period (in shares)	7,913,733	6,807,169	10,214,344
Exercisable at the end of the period (in shares)	1,883,533	1,927,069	3,107,544
Weighted-Average Exercise Price
Total options outstanding, beginning of the period (in dollars per share)	$ 31.17	$ 25.29	$ 22.49
Granted (in dollars per share)	54.41	69.11	63.23
Exercised (in dollars per share)	23.26	16.26	20.49
Forfeited and cancelled (in dollars per share)	50.28	23.12	41.84
Total options outstanding at the end of the period (in dollars per share)	36.22	31.17	25.29
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 29.98	$ 26.87	$ 19.81
Stock Options \| DISH Network Awards \| Long-Term Performance Based Plans
Stock option activity
Total options outstanding, beginning of period (in shares)	3,904,500	5,926,500
Total options outstanding, end of period (in shares)	4,312,000	3,904,500	5,926,500
Weighted-Average Exercise Price
Total options outstanding, beginning of the period (in dollars per share)	$ 28.03	$ 25.15
Total options outstanding at the end of the period (in dollars per share)	$ 31.39	$ 28.03	$ 25.15

Stock-Based Compensation - Tax Benefits From Stock Awards Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Options
Stock-Based Compensation
Tax benefit from stock awards exercised	$ 5,006	$ 33,716	$ 42,334

Stock-Based Compensation - Aggregate Intrinsic Value Of Stock Options (Details) - Stock Options - DISH Network Awards $ in Thousands	Dec. 31, 2016 USD ($)
Aggregate intrinsic value
Aggregate intrinsic value of stock options outstanding	$ 179,033
Aggregate intrinsic value of stock options exercisable	$ 54,382

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units - DISH Network Awards - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted stock unit activity
Total restricted stock units outstanding, beginning of period (in shares)	1,382,250	1,731,332	1,863,165
Granted (in shares)	67,060	62,530	316,500
Vested (in shares)	(60)	(125,280)	(278,000)
Forfeited and cancelled (in shares)	(113,250)	(286,332)	(170,333)
Total restricted stock units outstanding, end of period (in shares)	1,336,000	1,382,250	1,731,332
Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period (in dollars per share)	$ 32.01	$ 32.60	$ 29.27
Granted (in dollars per share)	56.35	68.79	63.57
Vested (in dollars per share)	49.15	63.92	45.04
Forfeited and cancelled (in dollars per share)	45.12	29.67	33.43
Total restricted stock units outstanding, end of period (in dollars per share)	$ 32.11	$ 32.01	$ 32.60

Stock-Based Compensation - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2005	Jun. 30, 2014
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 13,037	$ 19,199	$ 34,024
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	7,913,733
Weighted-Average Exercise Price (in dollars per share)	$ 36.22
Unrecognized compensation expense, weighted average period	2 years
Long-Term Performance Based Plans
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 3,989	$ 11,851	$ 26,456
LTIP 2005
2005 LTIP Terms
Awards vesting period					7 years
Percentage awards vesting per annum during first four years					10.00%
Percentage awards vesting per annum after first four years					20.00%
LTIP 2008
Share-based compensation additional disclosures
Portion vested (as a percent)						100.00%
2013 LTIP
Share-based compensation additional disclosures
Portion vested (as a percent)	20.00%
Percentage of performance goals probable of achievement		30.00%	10.00%	20.00%
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 2,565	$ 10,157	$ 12,361
Other Employee Performance Awards
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	1,424	$ 1,694	$ 14,095
Non-Performance Based Stock Awards
Outstanding awards pursuant to performance-based stock incentive plans
Unrecognized compensation expense	22,000
DISH Network Awards \| 2013 LTIP
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Expense estimated to be recognized during 2017	7,067
Estimated contingent expense subsequent to 2017	40,469
Total estimated remaining expense over the term of plan	47,536
DISH Network Awards \| Other Employee Performance Awards
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Expense estimated to be recognized during 2017	1,070
Estimated contingent expense subsequent to 2017	134,580
Total estimated remaining expense over the term of plan	$ 135,650
Stock Options \| DISH Network Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	7,913,733	6,807,169	10,214,344	11,938,090
Weighted-Average Exercise Price (in dollars per share)	$ 36.22	$ 31.17	$ 25.29	$ 22.49
Stock Options \| DISH Network Awards \| Long-Term Performance Based Plans
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	4,312,000	3,904,500	5,926,500
Weighted-Average Exercise Price (in dollars per share)	$ 31.39	$ 28.03	$ 25.15
Stock Options \| DISH Network Awards \| 2013 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,472,000
Weighted-Average Exercise Price (in dollars per share)	$ 43.50
Stock Options \| DISH Network Awards \| Other Employee Performance Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	2,840,000
Weighted-Average Exercise Price (in dollars per share)	$ 25.12
Restricted Stock Units \| DISH Network Awards
Outstanding awards pursuant to performance-based stock incentive plans
Restricted Performance Units (in shares)	1,336,000	1,382,250	1,731,332	1,863,165
Restricted Stock Units \| DISH Network Awards \| 2013 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Restricted Performance Units (in shares)	736,000
Restricted Stock Units \| DISH Network Awards \| Other Employee Performance Awards
Outstanding awards pursuant to performance-based stock incentive plans
Restricted Performance Units (in shares)	600,000
Restricted Stock Units \| DISH Network Awards \| Held by DISH DBS employees
Outstanding awards pursuant to performance-based stock incentive plans
Restricted Performance Units (in shares)	1,336,000
Subscriber-related
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 694	$ 2,164	$ 1,859
General and administrative
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 12,343	$ 17,035	$ 32,165

Stock-Based Compensation - Fair Value Of Stock Options Granted (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Black-Scholes option valuation model, assumptions
Risk-free interest rate, low end of range (as a percent)	1.06%	1.40%	1.80%
Risk-free interest rate, high end of range (as a percent)	2.27%	2.19%	2.84%
Volatility factor, low end of range (as a percent)	26.12%	26.42%	28.53%
Volatility factor, high end of range (as a percent)	33.37%	36.22%	38.62%
Maximum
Black-Scholes option valuation model, assumptions
Expected term of options	10 years	7 years 9 months 18 days	9 years
Weighted-average fair value of options granted (in dollars per share)	$ 26.86	$ 29.73	$ 29.20
Minimum
Black-Scholes option valuation model, assumptions
Expected term of options	5 years 4 months 24 days	5 years 6 months	5 years 6 months
Weighted-average fair value of options granted (in dollars per share)	$ 12.45	$ 16.14	$ 19.08

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitment and Contingencies
Total	$ 23,063,731
2017	3,885,009
2018	2,686,518
2019	2,642,512
2020	2,023,521
2021	2,782,711
Thereafter	9,043,460
Long-term debt obligations
Commitment and Contingencies
Total	14,112,606
2017	901,097
2018	1,201,163
2019	1,401,233
2020	1,101,306
2021	2,001,385
Thereafter	7,506,422
Capital lease obligations.
Commitment and Contingencies
Total	136,146
2017	33,412
2018	36,260
2019	19,503
2020	19,137
2021	20,615
Thereafter	7,219
Interest expense on long-term debt and capital lease obligations
Commitment and Contingencies
Total	4,973,057
2017	877,477
2018	799,543
2019	771,490
2020	631,593
2021	534,350
Thereafter	1,358,604
Satellite-related obligations
Commitment and Contingencies
Total	1,615,590
2017	382,348
2018	348,617
2019	301,102
2020	241,371
2021	208,196
Thereafter	133,956
Operating lease obligations
Commitment and Contingencies
Total	139,673
2017	41,334
2018	25,266
2019	18,954
2020	13,728
2021	9,332
Thereafter	31,059
Purchase obligations
Commitment and Contingencies
Total	2,086,659
2017	1,649,341
2018	275,669
2019	130,230
2020	16,386
2021	8,833
Thereafter	$ 6,200

Commitments and Contingencies - Part 2 (Details) $ in Thousands	1 Months Ended		12 Months Ended
	May 31, 2012	Jul. 31, 2009 item	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2013 USD ($)
Spectrum Investments
Number of wireless spectrum licenses \| item			176
Dividend paid to DOC			$ 1,500,000	$ 8,250,000	$ 2,150,000
Unrecognized tax benefits			201,040	202,400	207,675		$ 145,884
Total rent expense for operating leases			$ 407,000	$ 477,000	$ 468,000
Maximum
Spectrum Investments
Term of programming contracts			10 years
Minimum
Spectrum Investments
Term of programming contracts			1 year
Auction 1000 [Member]
Spectrum Investments
Minimum upfront deposit from bidder in forward auction bid			$ 5,400,000
Fourth phase auction threshold amount			12,000,000
Fourth phase auction threshold amount proceeds			19,600,000
Dish Network
Spectrum Investments
Payment to acquire certain wireless licenses						$ 5,000,000
Northstar Wireless or Northstar Spectrum \| Dish Network [Member]
Spectrum Investments
Non-controlling investments			10,000,000
Satellite transponder guarantees
Spectrum Investments
Guarantor Obligations, Maximum Exposure, Undiscounted			$ 190,000
Hopper litigation \| Maximum
Spectrum Investments
Number of days to store HD primetime programs recordings	8 days
Technology Development Licensing
Spectrum Investments
Number of reexamination petitions pending before patent and trademark office \| item		2
Do Not Call Litigation
Spectrum Investments
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services			5 years
Do Not Call Litigation \| DISH Network L.L.C.
Spectrum Investments
Claim amount			$ 270,000

Commitments and Contingencies - Part 3 (Details)		1 Months Ended		12 Months Ended
Commitments and Contingencies - Part 3 (Details)	Sep. 23, 2016 USD ($)	May 31, 2012	Jul. 31, 2009 item	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss contingencies
General and administrative expenses				$ 753,204,000	$ 745,366,000	$ 762,146,000
Do Not Call Litigation
Loss contingencies
Number of telemarketing calls \| item				51,119
Litigation per call damages				$ 400
LightSquared transaction shareholder derivative actions
Loss contingencies
Number of shareholders who filed lawsuits \| item				5
Lightsquared Harbinger Capital Partners LLC
Loss contingencies
Business days allowed to terminate existing agreements				3 days
Satellite transponder guarantees
Loss contingencies
Guarantees for payments				$ 190,000,000
Technology Development Licensing
Loss contingencies
Number of reexamination petitions pending before patent and trademark office \| item			2
Hopper litigation \| Maximum
Loss contingencies
Number of days to store HD primetime programs recordings		8 days
Do Not Call Litigation
Loss contingencies
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services				5 years
Do Not Call Litigation \| DISH Network L.L.C.
Loss contingencies
State, claim amount				$ 23,500,000,000
Federal, claim amount				900,000,000
Claim amount				270,000,000
Do Not Call Litigation \| DISH Network L.L.C. \| CALIFORNIA
Loss contingencies
Claim amount				100,000,000
Do Not Call Litigation \| DISH Network L.L.C. \| OHIO
Loss contingencies
Claim amount				$ 10,000,000
AWS 3 Auction \| Northstar Wireless or Northstar Spectrum \| Vermont National Telephone Company [Member]
Loss contingencies
Percentage Of Bidding Credit	25.00%
Bidding Credit	$ 3,300,000,000
Loss Contingency Recovery Amount	10,000,000,000
AWS 3 Auction \| Northstar Wireless or Northstar Spectrum \| Maximum \| Vermont National Telephone Company [Member]
Loss contingencies
Claim amount	11,000
AWS 3 Auction \| Northstar Wireless or Northstar Spectrum \| Minimum \| Vermont National Telephone Company [Member]
Loss contingencies
Claim amount	$ 5,500

Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Activity in Valuation and Qualifying Accounts
Balance at Beginning of Year	$ 20,972	$ 23,520	$ 15,981
Charged to Cost and Expenses	149,603	94,205	151,016
Deductions	(153,579)	(96,753)	(143,477)
Balance at End of Year	$ 16,996	$ 20,972	$ 23,520

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data (Unaudited)
Total revenue	$ 3,613,359	$ 3,632,115	$ 3,719,415	$ 3,672,154	$ 3,668,205	$ 3,624,548	$ 3,724,434	$ 3,621,062	$ 14,637,043	$ 14,638,249	$ 14,277,413
Operating income (loss)	525,505	491,113	612,686	571,665	532,327	461,038	553,024	506,289	2,200,969	2,052,678	2,028,331
Net income (loss) attributable to DISH DBS	$ 213,786	$ 177,114	$ 263,394	$ 262,234	$ 207,936	$ 172,154	$ 212,113	$ 187,932	$ 916,528	$ 780,135	$ 824,885

Related Party Transactions (Details) $ in Thousands				12 Months Ended
Related Party Transactions (Details) $ in Thousands	Feb. 12, 2015 USD ($)	Oct. 14, 2014 USD ($)	Mar. 28, 2014 USD ($)	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related Party Transaction [Line Items]
Dividend paid to DOC				$ 1,500,000	$ 8,250,000	$ 2,150,000
Number of wireless spectrum licenses \| item				176
Aggregate dividend declared				$ 1,500,000	8,250,000	2,150,000
Subscriber-related revenue				14,578,414	14,524,510	14,130,607
Trade accounts receivable				715,766	822,505
Trade accounts payable				485,532	433,349
Equipment sales and other revenue				58,629	113,739	146,806
Broadband, Wireless and Other Segments
Related Party Transaction [Line Items]
Expenses associated with services				63,000	63,000	79,000
Dish Network
Related Party Transaction [Line Items]
Dividend paid to DOC	$ 8,250,000	$ 1,500,000	$ 650,000
Dish Network \| Advertising Sales [Member]
Related Party Transaction [Line Items]
Subscriber-related revenue				2,000	10,000	18,000
EchoStar
Related Party Transaction [Line Items]
Trade accounts receivable				4,000	23,000
Trade accounts payable				259,000	263,000
Equipment sales and other revenue				$ 1,000	$ 46,000	$ 62,000
Percentage Of Stake Transfer				100.00%

Related Party Transactions - Narrative Part 1 (Details) $ in Thousands					1 Months Ended		12 Months Ended
	Mar. 01, 2017 item	Jan. 02, 2012	Feb. 23, 2010	Feb. 23, 2010	May 31, 2013	Jan. 31, 2012 item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related Party Transaction [Line Items]
Subscriber-related expenses \| $							$ 8,613,705	$ 8,511,404	$ 8,066,642
EchoStar XV
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party					30 days
100 Inverness Lease Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity	180 days
EchoStar
Related Party Transaction [Line Items]
Agreement Renewal Option Term		1 year
Subscriber-related expenses \| $							$ 11,000	$ 12,000	$ 9,000
EchoStar \| El Paso Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options						4
Agreement Renewal Option Term						3 years
EchoStar \| 90 Inverness Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options	4
Agreement Renewal Option Term	3 years
EchoStar \| Cheyenne Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of successive one year renewal options	13
Agreement Renewal Option Term	1 year
EchoStar \| Gilbert Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of successive one year renewal options	13
Agreement Renewal Option Term	1 year
EchoStar \| DISH Remote Access Services Agreement
Related Party Transaction [Line Items]
Agreement term			5 years
Automatic renewal period				1 year
EchoStar \| Sling Service Services Agreement
Related Party Transaction [Line Items]
Agreement term			5 years
Automatic renewal period				1 year
EchoStar \| Collocation And Antenna Space Agreements [Member]
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity	180 days

Related Party Transactions - Narrative Part 2 (Details) $ in Thousands					1 Months Ended			3 Months Ended	12 Months Ended
	Mar. 02, 2014	Dec. 21, 2012	Dec. 21, 2012	Jan. 02, 2012	Jun. 30, 2013	May 31, 2012	May 31, 2010	Mar. 31, 2014 item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2009 item	Dec. 31, 2008 item
Related Party Transaction [Line Items]
Satellite and transmission expenses \| $									$ 740,224	$ 753,853	$ 685,732
EchoStar XVIII
Related Party Transaction [Line Items]
Satellite and transmission expenses \| $									22,000
EchoStar
Related Party Transaction [Line Items]
Satellite and transmission expenses \| $									$ 681,000	$ 715,000	$ 646,000
Agreement Renewal Option Term				1 year
EchoStar \| Certain Sports Related Programming Broadcast Agreement
Related Party Transaction [Line Items]
Agreement term							10 years
EchoStar \| EchoStar VIII
Related Party Transaction [Line Items]
Notice period for termination of agreement	30 days
EchoStar \| EchoStar XVI
Related Party Transaction [Line Items]
Agreement term from commencement of service date			4 years
Agreement Renewal Option Term		5 years
Additional term of renewal option		5 years
EchoStar \| Telesat Transponder Agreement
Related Party Transaction [Line Items]
Agreement term												15 years
Number of DBS transponders available to receive services												32
EchoStar \| DISH Nimiq 5 Agreement
Related Party Transaction [Line Items]
Agreement term												10 years
Number of DBS transponders currently used												32
EchoStar \| QuetzSat-1 Lease Agreement
Related Party Transaction [Line Items]
Agreement term with third party													10 years
Number of DBS transponders currently used													32
Number of DBS transponders expected to receive services													24
Number of transponders subleased								5
EchoStar \| 103 degree orbital location member
Related Party Transaction [Line Items]
Agreement term						10 years
Agreement term from commencement of service date					10 years
EchoStar \| TT&C Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity				60 days

Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands						12 Months Ended
	Mar. 01, 2017	Aug. 02, 2014	Jan. 02, 2012	Jan. 10, 2010	Jan. 02, 2010	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012	Aug. 01, 2014
Related Party Transaction [Line Items]
General and administrative expenses						$ 753,204	$ 745,366	$ 762,146
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax								14,011
Sling TV Holding
Related Party Transaction [Line Items]
Additional paid in capital recorded due to difference between the historical cost basis of the assets transferred										$ 6,000
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax		$ 14,000
EchoStar
Related Party Transaction [Line Items]
General and administrative expenses						$ 99,000	$ 92,000	$ 101,000
Agreement Renewal Option Term			1 year
EchoStar \| Application Development Agreement
Related Party Transaction [Line Items]
Required notice period for termination of agreement									90 days
Automatic renewal period									1 year
EchoStar \| DISH Online.com Services Agreement
Related Party Transaction [Line Items]
Term of renewal option exercised					1 year
Notice period for termination of agreement				120 days
Agreement term					2 years
Agreement term extend option							1 year
EchoStar \| Dish Network \| 90 Inverness Lease Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term	3 years
EchoStar \| Dish Network \| Gilbert Lease Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term	1 year
EchoStar \| Dish Network \| Professional Services Agreement
Related Party Transaction [Line Items]
Minimum notice period for termination of agreement						60 days
Minimum notice period for termination of a specific service						30 days
Agreement term						1 year
Automatic renewal period						1 year
EchoStar \| Sling TV Holding
Related Party Transaction [Line Items]
Ownership percentage		10.00%

Related Party Transactions - Narrative Part 4 (Details) $ in Thousands			1 Months Ended	12 Months Ended
	Jan. 02, 2012	Apr. 29, 2011 USD ($) item	Jun. 30, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2011 USD ($)
Related Party Transaction [Line Items]
Cost of sales - equipment, services and other				$ 63,334	$ 91,653	$ 106,037
Patent Cross-License Agreements
Related Party Transaction [Line Items]
Payments to third party by related party under extension option							$ 3,000
gTLD Agreement [Member]
Related Party Transaction [Line Items]
Net payment for agreement settlement					1,000
EchoStar
Related Party Transaction [Line Items]
Agreement Renewal Option Term	1 year
EchoStar \| TiVo v. Dish Network and EchoStar Corporation
Related Party Transaction [Line Items]
Settlement amount		$ (500,000)
Initial settlement amount paid		300,000
Aggregate of six annual installment amounts between 2012 and 2017		$ 200,000
Litigation settlement number of annual installments \| item		6
Contribution from related party		$ 10,000
Percentage of litigation settlement amount to be made by related party annually		95.00%
EchoStar \| Receiver Agreement
Related Party Transaction [Line Items]
Purchased set-top boxes and other equipment from EchoStar				$ 702,000	$ 753,000	$ 1,114,000
Net payment for agreement settlement			$ 5,000
EchoStar \| Patent Cross-License Agreements \| Maximum
Related Party Transaction [Line Items]
Payments to third party by related party							$ 10,000

Related Party Transactions - Narrative Part 5 (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Feb. 20, 2014	Mar. 23, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 31, 2014
Satellite and Tracking Stock Transaction
Related Party Transaction [Line Items]
Percentage of economic interest in the Hughes Retail Group	80.00%
Hughes Broadband Sales Agency Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity		90 days
Agreement term		5 years
Automatic renewal period		1 year
EchoStar \| Satellite and Tracking Stock Transaction
Related Party Transaction [Line Items]
Liabilities Transferred					$ 44,540
Related Party Transactions Historical Cost of Tracking Stock	$ 229,000
NagraStar
Related Party Transaction [Line Items]
Purchases from NagraStar			$ 72,529	$ 89,195	$ 84,636
Amounts payable to NagraStar			17,055	19,362
Commitments to NagraStar			$ 51	$ 1,532
EchoStar and HSSC \| Satellite and Tracking Stock Transaction
Related Party Transaction [Line Items]
Liabilities Transferred	59,000
Cash in exchange for shares of series of preferred tracking stock issued	11,000
Capital transaction	356,000
Cash in Exchange of Shares Issued	11,000
Capital Distribution to Related Party in Connection Purchase of Strategic Investments	51,000
HSSC \| Satellite and Tracking Stock Transaction
Related Party Transaction [Line Items]
Related Party Transactions Historical Cost of Tracking Stock	$ 87,000
Sling TV Holding \| EchoStar
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners						10.00%