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Document and Entity Information - shares	9 Months Ended
Sep. 30, 2018	Nov. 01, 2018
Entity Registrant Name	DISH Network CORP
Entity Central Index Key	0001001082
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Class A common stock
Entity Common Stock, Shares Outstanding		229,238,679
Class B common stock
Entity Common Stock, Shares Outstanding		238,435,208

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 1,229,717	$ 1,479,508
Marketable investment securities	635,432	501,165
Trade accounts receivable, net of allowance for doubtful accounts of $12,931 and $15,511, respectively	670,826	653,948
Inventory	304,944	321,008
Other current assets	197,990	329,394
Total current assets	3,038,909	3,285,023
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities	67,199	72,407
Property and equipment, net	1,990,034	2,183,661
FCC authorizations	24,487,077	23,725,789
Other investment securities	109,546	113,460
Other noncurrent assets, net	444,645	393,426
Total noncurrent assets	27,098,501	26,488,743
Total assets	30,137,410	29,773,766
Current Liabilities:
Trade accounts payable	269,515	393,305
Deferred revenue and other	685,683	709,074
Accrued programming	1,535,187	1,571,273
Accrued interest	201,841	282,006
Other accrued expenses (Note 9)	818,255	803,822
Current portion of long-term debt and capital lease obligations	1,367,116	1,068,524
Total current liabilities	4,877,597	4,828,004
Long-Term Obligations, Net of Current Portion:
Long-term debt and capital lease obligations, net of current portion	13,790,114	15,134,441
Deferred tax liabilities	2,329,011	2,019,538
Long-term deferred revenue and other long-term liabilities	457,479	470,487
Total long-term obligations, net of current portion	16,576,604	17,624,466
Total liabilities	21,454,201	22,452,470
Commitments and Contingencies (Note 9)
Redeemable noncontrolling interests (Note 2)	440,171	383,390
Stockholders' Equity (Deficit):
Additional paid-in capital	3,364,995	3,296,488
Accumulated other comprehensive income (loss)	(537)	882
Accumulated earnings (deficit)	4,875,711	3,635,380
Total DISH Network stockholders' equity (deficit)	8,244,845	6,937,414
Noncontrolling interests	(1,807)	492
Total stockholders' equity (deficit)	8,243,038	6,937,906
Total liabilities and stockholders' equity (deficit)	30,137,410	29,773,766
Class A common stock
Stockholders' Equity (Deficit):
Common stock	2,292	2,280
Class B common stock
Stockholders' Equity (Deficit):
Common stock	$ 2,384	$ 2,384

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Total Revenue	$ 3,395,141	$ 3,583,454	$ 10,314,473	$ 10,907,447
Costs and Expenses (exclusive of depreciation shown separately below - Note 7):
Subscriber-related expenses	2,123,798	2,237,742	6,468,176	6,723,704
Satellite and transmission expenses	136,869	160,009	436,565	500,171
Cost of sales - equipment and other	40,309	21,563	108,052	71,672
Subscriber acquisition costs:
Cost of sales - subscriber promotion subsidies	7,914	15,826	32,952	59,225
Other subscriber acquisition costs	73,614	155,870	219,420	432,631
Subscriber acquisition advertising	105,350	147,115	313,779	392,449
Total subscriber acquisition costs	186,878	318,811	566,151	884,305
General and administrative expenses	169,299	186,954	529,701	497,801
Litigation expense (Note 9)				295,695
Depreciation and amortization (Note 7)	175,285	209,324	540,959	625,625
Total costs and expenses	2,832,438	3,134,403	8,649,604	9,598,973
Operating income (loss)	562,703	449,051	1,664,869	1,308,474
Other Income (Expense):
Interest income	10,525	7,240	30,461	33,979
Interest expense, net of amounts capitalized	(5,413)	(4,370)	(11,235)	(59,809)
Other, net	25,473	40,261	12,097	48,173
Total other income (expense)	30,585	43,131	31,323	22,343
Income (loss) before income taxes	593,288	492,182	1,696,192	1,330,817
Income tax (provision) benefit, net	(140,690)	(176,917)	(397,987)	(566,715)
Net income (loss)	452,598	315,265	1,298,205	764,102
Less: Net income (loss) attributable to noncontrolling interests, net of tax	20,864	17,890	60,194	50,896
Net income (loss) attributable to DISH Network	$ 431,734	$ 297,375	$ 1,238,011	$ 713,206
Weighted-average common shares outstanding - Class A and B common stock:
Basic (in shares)	467,570	466,240	467,216	465,893
Diluted (in shares)	525,995	525,246	525,752	521,639
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network (in dollars per share)	$ 0.92	$ 0.64	$ 2.65	$ 1.53
Diluted net income (loss) per share attributable to DISH Network (in dollars per share)	$ 0.82	$ 0.57	$ 2.35	$ 1.42
Comprehensive Income (Loss):
Net income (loss)	$ 452,598	$ 315,265	$ 1,298,205	$ 764,102
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,372)	232	(1,629)	1,078
Unrealized holding gains (losses) on available-for-sale securities	134	494	288	7,459
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(2)	(1)	(7)	(635)
Deferred income tax (expense) benefit, net	(32)	(183)	(71)	(2,509)
Total other comprehensive income (loss), net of tax	(1,272)	542	(1,419)	5,393
Comprehensive income (loss)	451,326	315,807	1,296,786	769,495
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax	20,864	17,890	60,194	50,896
Comprehensive income (loss) attributable to DISH Network	430,462	297,917	1,236,592	718,599
Subscriber-related revenue
Revenue:
Total Revenue	3,349,356	3,551,054	10,191,820	10,809,419
Equipment sales and other revenue
Revenue:
Total Revenue	$ 45,785	$ 32,400	$ 122,653	$ 98,028

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net income (loss)	$ 1,298,205	$ 764,102
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	540,959	625,625
Realized and unrealized losses (gains) on investments	(13,153)	(44,467)
Non-cash, stock-based compensation	24,897	20,619
Deferred tax expense (benefit)	308,610	558,423
Other, net	(78,481)	17,976
Changes in current assets and current liabilities, net	(65,303)	284,805
Net cash flows from operating activities	2,015,734	2,227,083
Cash Flows From Investing Activities:
Purchases of marketable investment securities	(801,916)	(282,919)
Sales and maturities of marketable investment securities	675,162	107,768
Purchases of property and equipment	(282,805)	(324,105)
Capitalized interest related to FCC authorizations (Note 2)	(765,239)	(769,046)
Purchases of FCC authorizations, including deposits (Note 9)		(4,711,154)
Purchases of strategic investments		(90,381)
Other, net	16,773	22,666
Net cash flows from investing activities	(1,158,025)	(6,047,171)
Cash Flows From Financing Activities:
Proceeds from issuance of convertible notes		1,000,000
Redemption and repurchases of senior notes	(1,088,392)	(900,000)
Repayment of long-term debt and capital lease obligations	(32,651)	(32,409)
Payments made to parent of transferred businesses		(7,098)
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan	16,300	24,171
Debt issuance costs		(6,158)
Other, net	(2,760)	(349)
Net cash flows from financing activities	(1,107,503)	78,157
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents	(249,794)	(3,741,931)
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 5)	1,479,901	5,325,184
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 5)	$ 1,230,107	$ 1,583,253

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. Certain prior period amounts have been reclassified to conform to the current period presentation.

Principles of Consolidation

We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we 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, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation.

On February 28, 2017, we and EchoStar and certain of our respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us 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 uplink 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 in Sling TV Holding L.L.C. (the “Transferred Businesses”), and in exchange, we transferred to EchoStar the 6,290,499 shares of preferred tracking stock issued by EchoStar (the “EchoStar Tracking Stock”) and 81.128 shares of preferred tracking stock issued by Hughes Satellite Systems Corporation, a subsidiary of EchoStar (the “HSSC Tracking Stock,” and together with the EchoStar Tracking Stock, collectively, the “Tracking Stock”), that tracked the residential retail satellite broadband business of Hughes Network Systems, L.L.C. (“HNS”), a wholly-owned subsidiary of Hughes. In connection with the Share Exchange, 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. See Note 12 for further information.

As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Condensed Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock was recorded in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets.

The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries.

Redeemable Noncontrolling Interests

Northstar Wireless. Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by Northstar Manager, LLC (“Northstar Manager”) and us. Under the applicable accounting guidance in ASC 810, Northstar Spectrum is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate Northstar Spectrum into our financial statements. The Northstar Operative Agreements, as amended, provide for, among other things, that after the fifth and sixth anniversaries of the grant of the AWS-3 Licenses to Northstar Wireless (and in certain circumstances, prior to the fifth anniversary of the grant of the AWS-3 Licenses to Northstar Wireless), Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase price that generally equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. In the event that the Northstar Put Right is exercised by Northstar Manager, the consummation of the sale will be subject to FCC approval. Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar Manager’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value. Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 9 for further information.

SNR Wireless. SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR Wireless Management, LLC (“SNR Management”) and us. Under the applicable accounting guidance in ASC 810, SNR HoldCo is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate SNR HoldCo into our financial statements. The SNR Operative Agreements, as amended, provide for, among other things, that after the fifth and sixth anniversaries of the grant of the AWS-3 Licenses to SNR Wireless (and in certain circumstances, prior to the fifth anniversary of the grant of the AWS-3 Licenses to SNR Wireless), SNR Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that generally equals its equity contribution to SNR HoldCo plus a fixed annual rate of return. In the event that the SNR Put Right is exercised by SNR Management, the consummation of the sale will be subject to FCC approval. SNR HoldCo does not have a call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable to SNR Management are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 9 for further information.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, 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, relative standalone selling prices of performance obligations, 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 condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur.

Marketable Investment Securities

Historically, we classified all marketable investment securities as available-for-sale, except for investments which were accounted for as trading securities, and adjusted the carrying amount of our available-for-sale securities to fair value and reported the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholders’ equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Our trading securities were carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Subsequent to the adoption of ASU 2016-01 during the first quarter 2018, all equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale. We adjust the carrying amount of our debt 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 stockholders’ equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment.

Capitalized Interest

We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our wireless spectrum licenses, build-out costs associated with our network deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended.

We are currently preparing for the commercialization of our AWS-4, H Block, 700 MHz, 600 MHz and MVDDS wireless spectrum licenses, and interest expense related to their carrying amount is being capitalized. In addition, the FCC has granted certain AWS-3 Licenses to Northstar Wireless and to SNR Wireless, respectively, in which we have made certain non-controlling investments. Northstar Wireless and SNR Wireless are preparing for the commercialization of their AWS-3 Licenses and interest expense related to their carrying amount is also being capitalized. On June 14, 2017, the FCC issued an order granting our application to acquire the 600 MHz Licenses, and we began preparing for the commercialization of our 600 MHz Licenses and began capitalizing interest related to these licenses on June 14, 2017. As the carrying amount of the licenses discussed above exceeded the carrying value of our long-term debt beginning on June 14, 2017, materially all of our interest expense is now being capitalized.

Fair Value Measurements

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

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

Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and derivative financial instruments indexed to marketable investment securities; 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 September 30, 2018 and December 31, 2017, 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”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 5 for the fair value of our marketable investment securities and derivative financial instruments.

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

Revenue Recognition

Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; broadband services; warranty services; and sales of digital receivers and related equipment to third-party pay-TV providers. See Note 10 for further information, including revenue disaggregated by major source.

Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally capable of being distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber.

In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year. Revenues arising from our in-home service operations that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed.

For our residential video subscribers, we have concluded that the contract term under ASC 606 is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above.

Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month.

Contract Balances

The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 11 for further information, including balance and activity detail about our allowance for doubtful accounts and deferred revenue related to contracts with subscribers.

Assets recognized related to the Costs to Obtain a Contract with a Subscriber

We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three and nine months ended September 30, 2018, we capitalized $51 million and $141 million, respectively, under these programs. The amortization expense related to these programs was $9 million and $17 million, respectively, for the three and nine months ended September 30, 2018. As of September 30, 2018, we had a total of $138 million capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other currents assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Impact of Adoption of ASU 2014-09

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. We adopted ASU 2014-09, as modified, and now codified as Accounting Standard Codification Topic 606 (“ASC 606”) and Accounting Standard Codification Topic 340-40 (“ASC 340-40”) on January 1, 2018, using the modified retrospective method. Under that method, we applied the new guidance to all open contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change, which was $2 million, net of deferred taxes of $1 million.

In addition, we are providing additional disclosures comparing the results under previous guidance to those as follows:


Condensed Consolidated Statements of Operations	DISH Network (as would have been reported under previous standards)		Impact of adopting ASU 2014-09		DISH Network (as currently reported)
	(In thousands)
For the Three Months Ended September 30, 2018
Subscriber-related revenue	$	3,352,054	$	(2,698)	$	3,349,356
Subscriber-related expenses	$	2,127,035	$	(3,237)	$	2,123,798
Total subscriber acquisition costs	$	227,686	$	(40,808)	$	186,878
Operating income (loss)	$	521,356	$	41,347	$	562,703
Income (loss) before income taxes	$	551,941	$	41,347	$	593,288
Income tax (provision) benefit, net	$	(130,522)	$	(10,168)	$	(140,690)
Net income (loss) attributable to DISH Network	$	400,555	$	31,179	$	431,734
Diluted net income (loss) per share attributable to DISH Network	$	0.76	$	0.06	$	0.82

For the Nine Months Ended September 30, 2018
Subscriber-related revenue	$	10,206,160	$	(14,340)	$	10,191,820
Subscriber-related expenses	$	6,478,665	$	(10,489)	$	6,468,176
Total subscriber acquisition costs	$	691,216	$	(125,065)	$	566,151
Operating income (loss)	$	1,543,655	$	121,214	$	1,664,869
Income (loss) before income taxes	$	1,574,978	$	121,214	$	1,696,192
Income tax (provision) benefit, net	$	(368,156)	$	(29,831)	$	(397,987)
Net income (loss) attributable to DISH Network	$	1,146,628	$	91,383	$	1,238,011
Diluted net income (loss) per share attributable to DISH Network	$	2.18	$	0.17	$	2.35

Condensed Consolidated Balance Sheets	DISH Network (as would have been reported under previous standards)		Impact of adopting ASU 2014-09		DISH Network (as currently reported)
	(In thousands)
As of September 30, 2018
Inventory	$	273,227	$	31,717	$	304,944
Other current assets	$	159,381	$	38,609	$	197,990
Other noncurrent assets, net	$	345,739	$	98,906	$	444,645
Total assets	$	29,968,178	$	169,232	$	30,137,410
Deferred revenue and other	$	643,205	$	42,478	$	685,683
Deferred tax liabilities	$	2,298,388	$	30,623	$	2,329,011
Long-term deferred revenue and other long-term liabilities	$	455,052	$	2,427	$	457,479
Total liabilities	$	21,378,673	$	75,528	$	21,454,201
Total stockholders' equity (deficit)	$	8,149,334	$	93,704	$	8,243,038
Total liabilities and stockholders' equity (deficit)	$	29,968,178	$	169,232	$	30,137,410

The adoption of ASU 2014-09 had no impact to cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows.

Research and Development

Research and development costs are expensed as incurred. Research and development costs totaled $6 million and $8 million for the three months ended September 30, 2018 and 2017, respectively. Research and development costs totaled $18 million and $24 million for the nine months ended September 30, 2018 and 2017, respectively.

New Accounting Pronouncements

Leases. In February 2016, the FASB issued ASU 2016-02 Leases (“ASU 2016-02”), and has modified the standard thereafter. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring that lessees recognize right of use assets and lease liabilities for the vast majority of leases. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The accounting guidance for lessors remains largely unchanged.

The effective date of this standard for us will be January 1, 2019, at which time we plan to adopt the standard using the modified retrospective approach with a cumulative-effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore, upon adoption, we will recognize and measure leases without revising comparative period information or disclosure. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. While our assessment of the effect of ASU 2016-02 is ongoing, we currently believe the most significant impact will be the recognition of right of use assets and lease liabilities on our Condensed Consolidated Balance Sheets. The multidisciplinary team we have established to implement this guidance is currently collecting and validating lease data and implementing our selected lease accounting system.

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 Condensed Consolidated Financial Statements and related disclosures.

Fair Value Measurement. On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements by adding, modifying or removing certain disclosures. This standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Certain disclosures in ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. We are evaluating the impact the adoption of ASU 2018-13 will have on our Condensed Consolidated Financial Statements and related disclosures.

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

9 Months Ended

Sep. 30, 2018

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

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

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

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


	As of
	September 30,		December 31,
	2018		2017
	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Strategic - available-for-sale	$	196	$	195
Strategic - trading/equity (Note 2)		11,236		93,367
Other		624,000		407,603
Total current marketable investment securities		635,432		501,165
Restricted marketable investment securities (1)		66,809		72,014
Total marketable investment securities		702,241		573,179

Restricted cash and cash equivalents (1)		390		393

Other investment securities:
Other investment securities - equity method		109,546		113,460
Total other investment securities		109,546		113,460

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	812,177	$	687,032

(1)

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

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments. All debt securities are classified as available-for-sale. Subsequent to the adoption of ASU 2016-01 during the first quarter 2018, all equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information.

Current Marketable Investment Securities – Strategic

Our current strategic marketable investment securities portfolio includes and may include strategic and financial debt and equity investments in private and public companies that are highly speculative and have experienced and continue to experience volatility. As of September 30, 2018, this portfolio consisted of securities of a small number of issuers, and as a result the value of that portfolio depends, among other things, on the performance of those issuers. The fair value of certain of the debt and equity securities in this portfolio can be adversely impacted by, among other things, the issuers’ respective performance and ability to obtain any necessary additional financing on acceptable terms, or at all.

Current Marketable Investment Securities - Other

Our current other marketable investment securities portfolio includes investments in various debt instruments including, among others, commercial paper, corporate securities and United States 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 September 30, 2018 and December 31, 2017, 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/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below.

NagraStar L.L.C. As a result of the completion of the Share Exchange on February 28, 2017, we own a 50% interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming.

Invidi Technologies Corporation. 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 Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017.

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.

Unrealized Gains (Losses) on Marketable Investment Securities

As of September 30, 2018 and December 31, 2017, we had accumulated net unrealized gains of less than $1 million and accumulated net unrealized losses of less than $1 million, respectively. These amounts, net of related tax effect, were accumulated net unrealized gains of less than $1 million and accumulated net unrealized losses of less than $1 million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholders’ equity (deficit).” The components of our available-for-sale investments are summarized in the table below.


	As of September 30, 2018								As of December 31, 2017
	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	$	66,569	$	—	$	(49)	$	(49)	$	84,286	$	22	$	(141)	$	(119)
Commercial paper		50,000		—		—		—		107,962		—		(10)		(10)
Corporate securities		571,480		299		(223)		76		282,256		—		(124)		(124)
Other		2,956		58		—		58		5,308		58		(1)		57
Total	$	691,005	$	357	$	(272)	$	85	$	479,812	$	80	$	(276)	$	(196)

As of September 30, 2018, restricted and non-restricted marketable investment securities included debt securities of $418 million with contractual maturities within one year and $273 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.

Fair Value Measurements

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


	As of
	September 30, 2018								December 31, 2017
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	1,127,887	$	824	$	1,127,063	$	—	$	1,425,798	$	655	$	1,425,143	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	66,569	$	66,569	$	—	$	—	$	84,286	$	84,286	$	—	$	—
Commercial Paper		50,000		—		50,000		—		107,962		—		107,962		—
Corporate securities		571,480		—		571,480		—		282,256		—		282,256		—
Other		2,956		—		2,760		196		5,308		—		5,113		195

Equity securities		11,236		11,236		—		—		93,367		93,367		—		—
Total	$	702,241	$	77,805	$	624,240	$	196	$	573,179	$	177,653	$	395,331	$	195

As of September 30, 2018 and December 31, 2017, our Level 3 investments were immaterial.

During the nine months ended September 30, 2018, we had no transfers in or out of Level 1 and Level 2 fair value measurements.

Gains and Losses on Sales and Changes in Carrying Amounts of Investments

“Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Other, net:	2018		2017		2018		2017
	(In thousands)
Marketable investment securities - realized and unrealized gains (losses) (1)	$	23,574	$	39,708	$	8,865	$	44,467
Costs related to early redemption of debt		—		—		(2,716)		—
Gain (loss) on sale of subsidiary		7,004		—		7,004		—
Equity in earnings of affiliates		(5,369)		501		(3,164)		895
Other		264		52		2,108		2,811
Total	$	25,473	$	40,261	$	12,097	$	48,173

(1)

During the three and nine months ended September 30, 2018, we recorded unrealized gains of $5 million and $3 million, respectively, related to equity securities held as of September 30, 2018.

Property and Equipment

9 Months Ended

Sep. 30, 2018

Property and Equipment

Property and Equipment

7.Property and Equipment

Property and equipment consisted of the following:


	Depreciable			As of
	Life			September 30,		December 31,
	(In Years)			2018		2017
				(In thousands)
Equipment leased to customers	2	-	5	$	2,105,679	$	2,323,100
EchoStar XV		15			277,658		277,658
EchoStar XVIII		15			411,255		411,255
D1		N/A			55,000		55,000
T1		14.25			100,000		100,000
Satellites acquired under capital lease agreements	10	-	15		499,819		499,819
Furniture, fixtures, equipment and other	2	-	10		1,838,437		1,779,109
Buildings and improvements	4	-	40		294,533		293,571
Land		—			14,057		14,057
Construction in progress		—			139,831		103,176
Total property and equipment					5,736,269		5,856,745
Accumulated depreciation					(3,746,235)		(3,673,084)
Property and equipment, net				$	1,990,034	$	2,183,661

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Equipment leased to customers	$	114,606	$	144,016	$	337,004	$	425,753
Satellites		25,085		29,414		75,257		87,840
Buildings, furniture, fixtures, equipment and other		35,594		35,894		128,698		112,032
Total depreciation and amortization	$	175,285	$	209,324	$	540,959	$	625,625

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

Pay-TV Satellites. We currently utilize 11 satellites in geostationary orbit approximately 22,300 miles above the equator, two of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on seven satellites that we lease from EchoStar, 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 September 30, 2018, our pay-TV satellite fleet consisted of the following:


			Estimated
			Useful Life
		Degree	(Years)/Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV	July 2010	61.5	15
EchoStar XVIII	June 2016	61.5	15

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month
EchoStar X (2)	February 2006	110	February 2021
EchoStar XI (2)	July 2008	110	September 2021
EchoStar XIV (2)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
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 (4)	December 2008	129	January 2019

(1)

See Note 12 for further information on our Related Party Transactions with EchoStar.

(2)

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.

(3)

We have the option to renew this lease for an additional five-year period.

(4)

On July 30, 2018, we did not provide notice to renew our lease for the capacity of Ciel II. Accordingly, our lease for the capacity of Ciel II will expire in January 2019 at the conclusion of the initial term. There can be no assurance that the expiration of our lease for capacity of Ciel II will not have a material adverse effect on our business, results of operations and financial condition or otherwise disrupt our business.

(5)

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	9.Commitments and Contingencies Commitments Since 2008, we have directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network Spectrum We have directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. 700 MHz Licenses. In 2008, we paid $712 million to acquire certain 700 MHz E Block (“700 MHz”) wireless spectrum licenses, which were granted to us by the FCC in February 2009. These licenses are subject to certain build-out requirements. By March 2020, we must provide signal coverage and offer service to at least 70% of the population in each of our E Block license areas (the “700 MHz Build-Out Requirement”). If the 700 MHz Build-Out Requirement is not met with respect to any particular E Block license area, our authorization may terminate for the geographic portion of that license area in which we are not providing service. In addition to the 700 MHz Build-Out Requirement deadline in March 2020, these wireless spectrum licenses also expire in March 2020 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. AWS-4 Licenses. On March 2, 2012, the FCC approved the transfer of 40 MHz of wireless spectrum licenses held by DBSD North America, Inc. (“DBSD North America”) and TerreStar Networks, Inc. (“TerreStar”) to us. On March 9, 2012, we completed the acquisition of 100% of the equity of reorganized DBSD North America (the “DBSD Transaction”) and substantially all of the assets of TerreStar (the “TerreStar Transaction”), pursuant to which we acquired, among other things, certain satellite assets and wireless spectrum licenses held by DBSD North America and TerreStar. The total consideration to acquire the DBSD North America and TerreStar assets was approximately $2.860 billion. On February 15, 2013, the FCC issued an order, which became effective on March 7, 2013, modifying our licenses to expand our terrestrial operating authority with AWS-4 authority (“AWS-4”). These licenses are subject to certain build-out requirements. By March 2020, we are required to provide terrestrial signal coverage and offer terrestrial service to at least 70% of the population in each area covered by an individual license (the “AWS-4 Build-Out Requirement”). If the AWS-4 Build-Out Requirement is not met with respect to any particular individual license, our terrestrial authorization for that license area may terminate. The FCC’s December 20, 2013 order also conditionally waived certain FCC rules for our AWS-4 licenses to allow us to repurpose all 20 MHz of our uplink spectrum (2000-2020 MHz) for terrestrial downlink operations. On June 1, 2016, we notified the FCC that we had elected to use our AWS-4 uplink spectrum for terrestrial downlink operations, and effective June 7, 2016, the FCC modified our AWS-4 licenses, resulting in all 40 MHz of our AWS-4 spectrum being designated for terrestrial downlink operations. These wireless spectrum licenses expire in March 2023 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. H Block Licenses. On April 29, 2014, the FCC issued an order granting our application to acquire all 176 wireless spectrum licenses in the H Block auction. We paid approximately $1.672 billion to acquire these H Block licenses, including clearance costs associated with the lower H Block spectrum. The H Block licenses are subject to certain build-out requirements. By April 2022, we must provide reliable signal coverage and offer service to at least 75% of the population in each area covered by an individual H Block license (the “H Block Build-Out Requirement”). If the H Block Build-Out Requirement is not met, our authorization for each H Block license area in which we do not meet the requirement may terminate. These wireless spectrum licenses expire in April 2024 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. 600 MHz Licenses. The broadcast incentive auction in the 600 MHz frequency range (“Auction 1000”) began on March 29, 2016 and concluded on March 30, 2017. On April 13, 2017, the FCC announced that ParkerB.com Wireless L.L.C. (“ParkerB.com”), a wholly-owned subsidiary of DISH Network, was the winning bidder for 486 wireless spectrum licenses (the “600 MHz Licenses”) with aggregate winning bids totaling approximately $6.211 billion. On April 27, 2017, ParkerB.com filed an application with the FCC to acquire the 600 MHz Licenses. On July 1, 2016, we paid $1.5 billion to the FCC as a deposit for Auction 1000. On May 11, 2017, we paid the remaining balance of our winning bids of approximately $4.711 billion. On June 14, 2017, the FCC issued an order granting ParkerB.com’s application to acquire the 600 MHz Licenses. The 600 MHz Licenses are subject to certain interim and final build-out requirements. By June 2023, we must provide reliable signal coverage and offer wireless service to at least 40% of the population in each area covered by an individual 600 MHz License (the “600 MHz Interim Build-Out Requirement”). By June 2029, we must provide reliable signal coverage and offer wireless service to at least 75% of the population in each area covered by an individual 600 MHz License (the “600 MHz Final Build-Out Requirement”). If the 600 MHz Interim Build-Out Requirement is not met, the 600 MHz License term and the 600 MHz Final Build-Out Requirement may be accelerated by two years (from June 2029 to June 2027) for each 600 MHz License area in which we do not meet the requirement. If the 600 MHz Final Build-Out Requirement is not met, our authorization for each 600 MHz License area in which we do not meet the requirement may terminate. In addition, certain broadcasters will have up to 39 months (ending July 13, 2020) to relinquish their 600 MHz spectrum, which may impact the timing for our ability to commence operations using certain 600 MHz Licenses. The FCC has issued the 600 MHz Licenses prior to the clearance of the spectrum, and the build-out deadlines are based on the date that the 600 MHz Licenses were issued to us, not the date that the spectrum is cleared. These wireless spectrum licenses expire in June 2029 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. MVDDS Licenses. We have multichannel video distribution and data service (“MVDDS”) licenses in 82 out of 214 geographical license areas, including Los Angeles, New York City, Chicago and several other major metropolitan areas. By August 2014, we were required to meet certain FCC build-out requirements related to our MVDDS licenses, and we are subject to certain FCC service rules applicable to these licenses. In January 2015, the FCC granted our application to extend the build-out requirements related to our MVDDS licenses. We now have until the second half of 2019 to provide “substantial service” on our MVDDS licenses. Our MVDDS licenses may be terminated if we do not provide substantial service in accordance with the new build-out requirements. These wireless spectrum licenses expire in August 2024 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. In 2016, the MVDDS 5G Coalition, of which we are a member, filed a petition for rulemaking requesting the FCC to consider updating the rules to allow us to provide two-way 5G services using our MVDDS licenses. We cannot predict when or if the FCC will grant the petition and proceed with a rulemaking. If the FCC adopts rules that would allow us to provide two-way 5G services using our MVDDS licenses, the requests of OneWeb and others for authority to use the band for service from NGSO satellite systems may hinder our ability to provide 5G services using our MVDDS licenses. LMDS Licenses. As a result of the completion of the Share Exchange on February 28, 2017, we acquired from EchoStar certain Local Multipoint Distribution Service (“LMDS”) licenses in four markets: Cheyenne, Kansas City, Phoenix, and San Diego. The “substantial service” milestone has been met with respect to each of the licenses. In addition, through the FCC’s Spectrum Frontiers proceeding, a portion of each of our LMDS licenses were reassigned to the Upper Microwave Flexible Use Service band (27.5-28.35 GHz), which will allow for a more flexible use of the licenses, including, among other things, 5G mobile operations. These wireless spectrum licenses have been renewed by the FCC through September 2028. There can be no assurances that the FCC will renew these wireless spectrum licenses. Commercialization of Our Wireless Spectrum Licenses and Related Assets. In March 2017, we notified the FCC that we plan to deploy a next-generation 5G-capable network, focused on supporting narrowband IoT. The first phase of our network deployment will be completed by March 2020, with subsequent phases to be completed thereafter. As of September 30, 2018, we had entered into vendor contracts with multiple parties for, among other things, base stations, chipsets, modules, tower leases, the core network, RF design, and deployment services. Among other things, initial RF design in connection with the first phase of our network deployment is now complete, and we are in the process of identifying and securing tower sites. The core network has been installed and commissioned. Based on our vendors’ current forecast, we plan to install the first base stations on sites later this year, and to continue deployment until complete. We may also determine that additional wireless spectrum licenses may be required to commercialize our wireless business and to compete with other wireless service providers. We currently expect expenditures for our wireless projects to be between $500 million and $1.0 billion through 2020. We currently expect expenditures for the second phase of our network deployment to be approximately $10 billion. We 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. In addition, as we consider our options for the commercialization of our wireless spectrum, we will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. We may also determine that additional wireless spectrum licenses may be required to commercialize our wireless business and to compete with other wireless service providers. For example, on September 18, 2018, we filed an application with the FCC to participate as a bidder in the FCC’s auction of Upper Microwave Flexible Use Service licenses in the 27.5–28.35 GHz bands (“Auction 101”) and 24.25–24.45 and 24.75–25.25 GHz bands (“Auction 102” and collectively with Auction 101, “Auctions 101 & 102”). On October 10, 2018, the FCC announced that a subsidiary of DISH Network and 25 other applicants were qualified to participate in Auction 101 and that a subsidiary of DISH Network and 33 other applicants were qualified to participate in Auction 102. Auction 101 is scheduled to commence on November 14, 2018, and Auction 102 will be scheduled to commence subsequent to the conclusion of bidding in Auction 101. The FCC determined that bidding in these auctions will be “anonymous,” which means that prior to and during the course of the auctions, the FCC will not make public any information about a specific applicant’s upfront deposit or its bids. In addition, FCC rules restrict information that bidders may disclose about their participation in the auctions. On July 9, 2018, the FCC sent us a letter inquiring about our progress toward meeting certain buildout milestones by March 2020, which is publicly available on the FCC’s website. On September 21, 2018, we filed a response letter with the FCC regarding our progress toward meeting certain buildout milestones. We will continue to update the FCC about our progress on the first phase of our network deployment. There is no assurance that the FCC will find our build-out, including the first phase of our network deployment, sufficient to meet the build-out requirements to which our wireless spectrum licenses are subject. We may need to raise significant additional capital in the future to fund the efforts described above, which may not be available on acceptable terms or at all. There can be no assurance that we will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that we will be able to profitably deploy the assets represented by these wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Non-Controlling Investments During 2015, through our wholly-owned subsidiaries American II and American III, we initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, the parent company of Northstar Wireless, and in SNR HoldCo, the parent company of SNR Wireless, respectively. Under the applicable accounting guidance in ASC 810, Northstar Spectrum and SNR HoldCo are considered variable interest entities and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. See Note 2 for further information. Northstar Investment. Through American II, we own a non-controlling interest in Northstar Spectrum, which is comprised of 85% of the Class B Common Interests and 100% of the Class A Preferred Interests of Northstar Spectrum. Northstar Manager is the sole manager of Northstar Spectrum and owns a controlling interest in Northstar Spectrum, which is comprised of 15% of the Class B Common Interests of Northstar Spectrum. As of March 31, 2018, the total equity contributions from American II and Northstar Manager to Northstar Spectrum were approximately $7.621 billion and $133 million, respectively. As of March 31, 2018, the total loans from American II to Northstar Wireless under the Northstar Credit Agreement (as defined below) for payments to the FCC related to the Northstar Licenses (as defined below) were approximately $500 million. SNR Investment. Through American III, we own a non-controlling interest in SNR HoldCo, which is comprised of 85% of the Class B Common Interests and 100% of the Class A Preferred Interests of SNR HoldCo. SNR Management is the sole manager of SNR HoldCo and owns a controlling interest in SNR HoldCo, which is comprised of 15% of the Class B Common Interests of SNR HoldCo. As of March 31, 2018, the total equity contributions from American III and SNR Management to SNR HoldCo were approximately $5.590 billion and $93 million, respectively. As of March 31, 2018, the total loans from American III to SNR Wireless under the SNR Credit Agreement (as defined below) for payments to the FCC related to the SNR Licenses (as defined below) were approximately $500 million. AWS-3 Auction Northstar Wireless and SNR Wireless each filed applications with the FCC to participate in Auction 97 (the “AWS-3 Auction”) for the purpose of acquiring certain AWS-3 Licenses. Each of Northstar Wireless and SNR Wireless applied to receive bidding credits of 25% as designated entities under applicable FCC rules. Northstar Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately $7.845 billion, which after taking into account a 25% bidding credit, was approximately $5.884 billion. SNR Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately $5.482 billion, which after taking into account a 25% bidding credit, was approximately $4.112 billion. In addition to the net winning bids, SNR Wireless made a bid withdrawal payment of approximately $8 million. FCC Order and October 2015 Arrangements. On August 18, 2015, the FCC released a Memorandum Opinion and Order, FCC 15-104 (the “Order”) in which the FCC determined, among other things, that DISH Network has a controlling interest in, and is an affiliate of, Northstar Wireless and SNR Wireless, and therefore DISH Network’s revenues should be attributed to them, which in turn makes Northstar Wireless and SNR Wireless ineligible to receive the 25% bidding credits (approximately $1.961 billion for Northstar Wireless and $1.370 billion for SNR Wireless). Letters Exchanged between Northstar Wireless and the FCC Wireless Bureau. As outlined in letters exchanged between Northstar Wireless and the Wireless Telecommunications Bureau of the FCC (the “FCC Wireless Bureau”), Northstar Wireless paid the gross winning bid amounts for 261 AWS-3 Licenses (the “Northstar Licenses”) totaling approximately $5.619 billion through the application of funds already on deposit with the FCC. Northstar Wireless also notified the FCC that it would not be paying the gross winning bid amounts for 84 AWS-3 Licenses totaling approximately $2.226 billion. As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and Northstar Wireless owed the FCC an additional interim payment of approximately $334 million (the “Northstar Interim Payment”), which is equal to 15% of $2.226 billion. The Northstar Interim Payment was recorded during the fourth quarter 2015 in “FCC auction expense” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2015. Northstar Wireless immediately satisfied the Northstar Interim Payment through the application of funds already on deposit with the FCC and an additional loan from American II of approximately $69 million. As a result, the FCC will not deem Northstar Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that Northstar Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of Northstar Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of Northstar Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of Northstar Wireless, then Northstar Wireless will be responsible for the difference less any overpayment of the Northstar Interim Payment (which will be recalculated as 15% of the winning bids from re-auction or other award) (the “Northstar Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the Northstar Re-Auction Payment would be approximately $1.892 billion, which is calculated as the difference between $2.226 billion (the Northstar winning bid amounts) and $1 (the winning bids from re-auction) less the resulting $334 million overpayment of the Northstar Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any Northstar Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain Northstar Wireless Obligations. On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC Northstar Guaranty”) with respect to the Northstar Interim Payment (which was satisfied on October 1, 2015) and any Northstar Re-Auction Payment. The FCC Northstar Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC Northstar Guaranty and the date such guaranteed payments are paid: (i) Northstar Wireless’ payment obligations to American II under the Northstar Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American II will withhold exercising certain rights as a creditor of Northstar Wireless. Letters Exchanged between SNR Wireless and the FCC Wireless Bureau. As outlined in letters exchanged between SNR Wireless and the FCC Wireless Bureau, SNR Wireless paid the gross winning bid amounts for 244 AWS-3 Licenses (the “SNR Licenses”) totaling approximately $4.271 billion through the application of funds already on deposit with the FCC and a portion of an additional loan from American III in an aggregate amount of approximately $344 million (which included an additional bid withdrawal payment of approximately $3 million). SNR Wireless also notified the FCC that it would not be paying the gross winning bid amounts for 113 AWS-3 Licenses totaling approximately $1.211 billion. As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and SNR Wireless owed the FCC an additional interim payment of approximately $182 million (the “SNR Interim Payment”), which is equal to 15% of $1.211 billion. The SNR Interim Payment was recorded during the fourth quarter 2015 in “FCC auction expense” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2015. SNR Wireless immediately satisfied the SNR Interim Payment through a portion of an additional loan from American III in an aggregate amount of approximately $344 million. As a result, the FCC will not deem SNR Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that SNR Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of SNR Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of SNR Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of SNR Wireless, then SNR Wireless will be responsible for the difference less any overpayment of the SNR Interim Payment (which will be recalculated as 15% of the winning bids from re-auction or other award) (the “SNR Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the SNR Re-Auction Payment would be approximately $1.029 billion, which is calculated as the difference between $1.211 billion (the SNR winning bid amounts) and $1 (the winning bids from re-auction) less the resulting $182 million overpayment of the SNR Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any SNR Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain SNR Wireless Obligations. On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC SNR Guaranty”) with respect to the SNR Interim Payment (which was satisfied on October 1, 2015) and any SNR Re-Auction Payment. The FCC SNR Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC SNR Guaranty and the date such guaranteed payments are paid: (i) SNR Wireless’ payment obligations to American III under the SNR Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American III will withhold exercising certain rights as a creditor of SNR Wireless. FCC Licenses. On October 27, 2015, the FCC granted the Northstar Licenses to Northstar Wireless and the SNR Licenses to SNR Wireless, respectively, which are recorded in “FCC authorizations” on our Condensed Consolidated Balance Sheets. The AWS-3 Licenses are subject to certain interim and final build-out requirements. By October 2021, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 40% of the population in each area covered by an individual AWS-3 License (the “AWS-3 Interim Build-Out Requirement”). By October 2027, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 75% of the population in each area covered by an individual AWS-3 License (the “AWS-3 Final Build-Out Requirement”). If the AWS-3 Interim Build-Out Requirement is not met, the AWS-3 License term and the AWS-3 Final Build-Out Requirement may be accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement. If the AWS-3 Final Build-Out Requirement is not met, the authorization for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement may terminate. These wireless spectrum licenses expire in October 2027 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. Qui Tam. 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 us; our 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 Cantey M. Ergen (a member of our board of directors); Northstar Wireless; Northstar Spectrum; Northstar Manager; SNR Wireless; SNR HoldCo; SNR Management; and certain other parties. See “Contingencies – Litigation – Vermont National Telephone Company” for further information. D.C. Circuit Court Opinion. On August 29, 2017, the United States Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”) in SNR Wireless LicenseCo, LLC, et al. v. Federal Communications Commission, 868 F.3d 1021 (D.C. Cir. 2017) (the “Appellate Decision”) affirmed the Order in part, and remanded the matter to the FCC to give Northstar Wireless and SNR Wireless an opportunity to seek to negotiate a cure of the issues identified by the FCC in the Order (a “Cure”). On January 26, 2018, SNR Wireless and Northstar Wireless filed a petition for a writ of certiorari, asking the United States Supreme Court to hear an appeal from the Appellate Decision, which the United States Supreme Court denied on June 25, 2018. Order on Remand. On January 24, 2018, the FCC released an Order on Remand, DA 18-70 (the “Order on Remand”) purporting to establish a procedure to afford Northstar Wireless and SNR Wireless the opportunity to implement a Cure pursuant to the Appellate Decision. The Order on Remand provided that Northstar Wireless and SNR Wireless each had until April 24, 2018 to file the necessary documentation to demonstrate that, in light of such changes, each of Northstar Wireless and SNR Wireless qualifies for the very small business bidding credit that it sought in the AWS-3 Auction. Additionally, the Order on Remand provides that if either Northstar Wireless or SNR Wireless needs additional time to negotiate new or amended agreements, it may request to extend the deadline for such negotiations for an additional 45 days (extending the deadline to June 8, 2018). On April 16, 2018, the FCC approved Northstar Wireless’ and SNR Wireless’ requests to extend the deadline for such negotiations for an additional 45 days to June 8, 2018. On June 8, 2018, Northstar Wireless and SNR Wireless each filed amended agreements to demonstrate that, in light of such changes, each of Northstar Wireless and SNR Wireless qualifies for the very small business bidding credit that it sought in the AWS-3 Auction. The Order on Remand also provided, among other things, until July 23, 2018 for certain third-parties to file comments about any changes to the agreements proposed by Northstar Wireless and SNR Wireless and several third-parties filed comments (with one opposition). On October 22, 2018, Northstar Wireless and SNR Wireless filed a response to the third-party comments. Northstar Wireless and SNR Wireless have submitted eleven separate requests for meetings with the FCC regarding a Cure. To date, with the lone exception of the Office of former Commissioner Mignon Clyburn, the parties have been refused an audience with the Commissioners and staff of the FCC. Northstar Wireless and SNR Wireless have filed a Joint Application for Review of the Order on Remand requesting, among other things, an iterative negotiation process with the FCC regarding a Cure, which was denied on July 12, 2018. We cannot predict with any degree of certainty the timing or outcome of these proceedings. Northstar Operative Agreements Northstar LLC Agreement. Northstar Spectrum is governed by a limited liability company agreement by and between American II and Northstar Manager (the “Northstar Spectrum LLC Agreement”). Pursuant to the Northstar Spectrum LLC Agreement, American II and Northstar Manager made pro-rata equity contributions in Northstar Spectrum. On March 31, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Northstar Spectrum LLC Agreement, to, among other things: (i) exchange $6.870 billion of the amounts outstanding and owed by Northstar Wireless to American II pursuant to the Northstar Credit Agreement (as defined below) for 6,870,493 Class A Preferred Interests in Northstar Spectrum (the “Northstar Preferred Interests”); (ii) replace the existing investor protection provisions with the investor protections described by the FCC in Baker Creek Communications, LLC, Memorandum Opinion and Order, 13 FCC Rcd 18709, 18715 (1998); (iii) delete the obligation of Northstar Manager to consult with American II regarding budgets and business plans; and (iv) remove the requirement that Northstar Spectrum’s systems be interoperable with ours. The Northstar Preferred Interests: (a) are non-voting; (b) have a 12 percent mandatory quarterly distribution, which can be paid in cash or additional face amount of Northstar Preferred Interests at the sole discretion of Northstar Manager; and (c) have a liquidation preference equal to the then-current face amount of the Northstar Preferred Interests plus accrued and unpaid mandatory quarterly distributions in the event of certain liquidation events or deemed liquidation events (e.g., a merger or dissolution of Northstar Spectrum, or a sale of substantially all of Northstar Spectrum’s assets). As a result of the exchange noted in (i) above, a principal amount of $500 million of debt remains under the Northstar Credit Agreement, as described below. On June 7, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Second Amended and Restated Limited Liability Company Agreement, dated March 31, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things: (i) reduce the mandatory quarterly distribution for the Northstar Preferred Interests from 12 percent to eight percent from and after June 7, 2018; (ii) increase the window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after October 27, 2020 from 30 days to 90 days; (iii) provide an additional 90-day window for Northstar Manager to put its interest in Northstar Spectrum to Northstar Spectrum commencing on October 27, 2021; (iv) provide a right for Northstar Manager to require an appraisal of the fair market value of its interest in Northstar Spectrum at any time from October 27, 2022 through October 27, 2024, coupled with American II having the right to accept the offer to sell from Northstar Manager; (v) allow Northstar Manager to sell its interest in Northstar Spectrum without American II’s consent any time after October 27, 2020 (previously October 27, 2025); (vi) allow Northstar Spectrum to conduct an initial public offering without American II’s consent any time after October 27, 2022 (previously October 27, 2029); (vii) remove American II’s rights of first refusal with respect to Northstar Manager’s sale of its interest in Northstar Spectrum or Northstar Spectrum’s sale of any AWS-3 Licenses; and (viii) remove American II’s tag along rights with respect to Northstar Manager’s sale of its interest in Northstar Spectrum. Northstar Wireless Credit Agreement. On October 1, 2015, American II, Northstar Wireless and Northstar Spectrum amended the First Amended and Restated Credit Agreement dated October 13, 2014, by and among American II, as Lender, Northstar Wireless, as Borrower, and Northstar Spectrum, as Guarantor (as amended, the “Northstar Credit Agreement”), to provide, among other things, that: (i) the Northstar Interim Payment and any Northstar Re-Auction Payment will be made by American II directly to the FCC and will be deemed as loans under the Northstar Credit Agreement; (ii) the FCC is a third-party beneficiary with respect to American II’s obligation to pay the Northstar Interim Payment and any Northstar Re-Auction Payment; (iii) in the event that the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are less than the winning bids of Northstar Wireless, the purchaser, assignee or transferee of any AWS-3 Licenses from Northstar Wireless is obligated to pay its pro-rata share of the difference (and Northstar Wireless remains jointly and severally liable for such pro-rata share); and (iv) during the period between the due date for the payments guaranteed under the FCC Northstar Guaranty (as discussed below) and the date such guaranteed payments are paid, Northstar Wireless’ payment obligations to American II under the Northstar Credit Agreement will be subordinated to such guaranteed payments. On March 31, 2018, American II, Northstar Wireless, and Northstar Spectrum amended and restated the Northstar Credit Agreement, to, among other things: (i) lower the interest rate on the remaining $500 million principal balance under the Northstar Credit Agreement from 12 percent per annum to six percent per annum; (ii) eliminate the higher interest rate that would apply in the case of an event of default; and (iii) modify and/or remove certain obligations of Northstar Wireless to prepay the outstanding loan amounts. On June 7, 2018, American II, Northstar Wireless, and Northstar Spectrum amended and restated the Northstar Credit Agreement to, among other things: (i) extend the maturity date on the remaining loan balance from seven years to 10 years; and (ii) remove the obligation of Northstar Wireless to obtain American II’s consent for unsecured financing and equipment financing in excess of $25 million. SNR Operative Agreements SNR LLC Agreement. SNR HoldCo is governed by a limited liability company agreement by and between American III and SNR Management (the “SNR HoldCo LLC Agreement”). Pursuant to the SNR HoldCo LLC Agreement, American III and SNR Management made pro-rata equity contributions in SNR HoldCo. On March 31, 2018, American III, SNR Holdco, SNR Wireless Management, and John Muleta amended and restated the SNR HoldCo LLC Agreement, to, among other things: (i) exchange $5.065 billion of the amounts outstanding and owed by SNR Wireless to American III pursuant to the SNR Credit Agreement (as defined below) for 5,065,415 Class A Preferred Interests in SNR Holdco (the “SNR Preferred Interests”); (ii) replace the existing investor protection provisions with the investor protections described by the FCC in Baker Creek Communications, LLC, Memorandum Opinion and Order, 13 FCC Rcd 18709, 18715 (1998); (iii) delete the obligation of SNR Management to consult with American III regarding budgets and business plans; and (iv) remove the requirement that SNR Management’s systems be interoperable with ours. The SNR Preferred Interests: (a) are non-voting; (b) have a 12 percent mandatory quarterly distribution, which can be paid in cash or additional face amount of SNR Preferred Interests at the sole discretion of SNR Management; and (c) have a liquidation preference equal to the then-current face amount of the SNR Preferred Interests plus accrued and unpaid mandatory quarterly distributions in the event of certain liquidation events or deemed liquidation events (e.g., a merger or dissolution of SNR Holdco, or a sale of substantially all of SNR Holdco’s assets). As a result of the exchange noted in (i) above, a principal amount of $500 million of debt remains under the SNR Credit Agreement, as described below. On June 7, 2018, American III, SNR Holdco, SNR Management, and John Muleta amended and restated the Second Amended and Restated Limited Liability Company Agreement, dated March 31, 2018, by and among American III, SNR Holdco, SNR Management and John Muleta, to, among other things: (i) reduce the mandatory quarterly distribution for the SNR Preferred Interests from 12 percent to eight percent from and after June 7, 2018; (ii) increase the window for SNR Management to “put” its interest in SNR Holdco to SNR Holdco after October 27, 2020 from 30 days to 90 days; (iii) provide an additional 90-day window for SNR Management to put its interest in SNR Holdco to SNR Holdco commencing on October 27, 2021; (iv) provide a right for SNR Management to require an appraisal of the fair market value of its interest in SNR Holdco at any time from October 27, 2022 through October 27, 2024, coupled with American III having the right to accept the offer to sell from SNR Management; (v) allow SNR Management to sell its interest in SNR Holdco without American III’s consent any time after October 27, 2020 (previously October 27, 2025); (vi) allow SNR Holdco to conduct an initial public offering without American III’s consent any time after October 27, 2022 (previously October 27, 2029); (vii) remove American III’s rights of first refusal with respect to SNR Management’s sale of its interest in SNR Holdco or SNR Holdco’s sale of any AWS-3 Licenses; and (viii) remove American III’s tag along rights with respect to SNR Management’s sale of its interest in SNR Holdco.  SNR Credit Agreement. On October 1, 2015, American III, SNR Wireless and SNR HoldCo amended the First Amended and Restated Credit Agreement dated October 13, 2014, by and among American III, as Lender, SNR Wireless, as Borrower, and SNR HoldCo, as Guarantor (as amended, the “SNR Credit Agreement”), to provide, among other things, that: (i) the SNR Interim Payment and any SNR Re-Auction Payment will be made by American III directly to the FCC and will be deemed as loans under the SNR Credit Agreement; (ii) the FCC is a third-party beneficiary with respect to American III’s obligation to pay the SNR Interim Payment and any SNR Re-Auction Payment; (iii) in the event that the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are less than the winning bids of SNR Wireless, the purchaser, assignee or transferee of any AWS-3 Licenses from SNR Wireless is obligated to pay its pro-rata share of the difference (and SNR Wireless remains jointly and severally liable for such pro-rata share); and (iv) during the period between the due date for the payments guaranteed under the FCC SNR Guaranty (as discussed below) and the date such guaranteed payments are paid, SNR Wireless’ payment obligations to American III under the SNR Credit Agreement will be subordinated to such guaranteed payments. On March 31, 2018, American III, SNR Wireless, and SNR Holdco amended and restated the SNR Credit Agreement, to, among other things: (i) lower the interest rate on the remaining $500 million principal balance under the SNR Credit Agreement from 12 percent per annum to six percent per annum; (ii) eliminate the higher interest rate that would apply in the case of an event of default; and (iii) modify and/or remove certain obligations of SNR Wireless to prepay the outstanding loan amounts. On June 7, 2018, American III, SNR Wireless, and SNR Holdco amended and restated the SNR Credit Agreement to, among other things: (i) extend the maturity date on the remaining loan balance from seven years to 10 years; and (ii) remove the obligation of SNR Wireless to obtain American III’s consent for unsecured financing and equipment financing in excess of $25 million. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from us, 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 Northstar Re-Auction Payment and the SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential Northstar Re-Auction Payment and SNR Re-Auction Payment, any loans, equity contributions or partnerships could vary significantly. There can be no assurance that we will be able to obtain a profitable return on our non-controlling investments in the Northstar Entities and the SNR Entities. 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 also guarantee a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of September 30, 2018, the remaining obligation of our guarantee was $69 million. As of September 30, 2018, we have not recorded a liability on the balance sheet for this guarantee. Contingencies Separation Agreement On January 1, 2008, we completed the distribution of our 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, we 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 we 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. On February 28, 2017, we and EchoStar completed the Share Exchange pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to us. 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. 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. Blue Spike, LLC On July 6, 2018, Blue Spike, LLC (“Blue Spike”) filed a complaint against us and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of Reissued United States Patent RE44,222E1 (the “222 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; Reissued United States Patent RE44,307 (the “307 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; and United States Patent Nos. 7,287,275B2 (the “275 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,473,746 (the “746 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,224,705 (the “705 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 7,475,246 (the “246 patent”), entitled “Secure personal content server”; 8,739,295B2 (the “295 patent”), entitled “Secure personal content server”; 9,021,602 (the “602 patent”), entitled “Data Protection and Device”; 9,104,842 (the “842 patent”), entitled “Data Protection and Device”; 9,934,408 (the “408 patent”), entitled “Secure personal content server”; 7,159,116B2 (the “116 patent”), entitled “Systems, methods and devices for trusted transactions”; and 8,538,011B2 (the “011 patent”), entitled “Systems, methods and devices for trusted transactions.” On September 5, 2018, pursuant to a joint motion of the parties, the Court ordered the case transferred to the United States District Court for the District of Delaware. In a First Amended Complaint filed on October 12, 2018, Blue Spike dropped its claims for infringement of the 222 patent, the 307 patent, the 275 patent, the 705 patent, and the 746 patent. Blue Spike is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. It has filed more than 170 patent infringement cases since 2011. 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. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then 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. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against us in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. 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. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against us 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 alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. 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. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia has filed notices of appeal from all of the final written decisions adverse to it, and DISH Network L.L.C. has cross-appealed to the extent that its petitions were not successful. 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. 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 and, on October 5, 2017, the United States Court of Appeals for the Federal Circuit heard oral argument. On November 1, 2017, the United States Court of Appeals for the Federal Circuit affirmed the unpatentability of the 444 patent based on the petition filed in the United States Patent and Trademark Office by DISH Network L.L.C., and dismissed as moot the appeal of the order of non-infringement from the District Court. On December 1, 2017, Dragon IP filed a petition for panel rehearing with the United States Court of Appeals for the Federal Circuit, which the Court of Appeals denied on January 31, 2018. On March 16, 2018, Dragon IP filed a petition asking the United States Supreme Court to hear a further appeal on the constitutionality of the procedure by which the United States Patent and Trademark Office invalidated the asserted claims of the 444 patent. That petition was dismissed on June 18, 2018. 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. 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 United States 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. On September 4, 2018, the Court entered a scheduling order, effectively lifting the stay. 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. IPA Technologies Inc. On December 9, 2016, IPA Technologies Inc. (“IPA”) filed suit against us 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. On December 20, 2017, we and DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of select claims of each of the asserted patents. On April 10, 2018, the litigation in the District of Delaware was dismissed with prejudice, and on April 23, 2018, DISH Network L.L.C.’s and our petitions before the United States Patent and Trademark Office were terminated. This matter is now concluded. LightSquared/Harbinger Capital Partners LLC (LightSquared Bankruptcy) As previously disclosed in our public filings, L-Band Acquisition, LLC (“LBAC”), our 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 us, LBAC, EchoStar, Charles W. Ergen (our Chairman), 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 us, 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 us, 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 us, 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 us 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. We intend to vigorously defend any claims against us 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. 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 we 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 granted our motion to dismiss the consolidated case. 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. On April 17, 2017, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit, which heard oral argument on November 7, 2017. On November 22, 2017, the United States Court of Appeals for the Second Circuit affirmed the trial court’s judgment in favor of Sling Media L.L.C. This matter is now concluded. Multimedia Content Management LLC On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against us in the United States District Court for the Western District of Texas. Multimedia alleges that we infringe United States Patent No. 8,799,468 (the “468 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” and United States Patent No. 9,465,925 (the “925 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” in connection with impulse pay per view content offerings on certain set-top boxes. Multimedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. 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. Realtime Data LLC and Realtime Adaptive Streaming LLC On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against us; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C. and Sling Media L.L.C.; EchoStar, and EchoStar’s wholly-owned subsidiary HNS; and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants. The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.” Realtime alleges that DISH, Sling TV, Sling Media and Arris streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent. On July 19, 2017, the Court severed Realtime’s claims against us, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris Group, Inc. (alleging infringement of the 897 patent, the 610 patent and the 535 patent) from the Original Texas Action into a separate action in the United States District Court for the Eastern District of Texas (the “Second Texas Action”). On August 31, 2017, Realtime dismissed the claims against us, Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. from the Second Texas Action and refiled these claims (alleging infringement of the 897 patent, the 610 patent and the 535 patent) against Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. in a new action in the United States District Court for the District of Colorado (the “Colorado Action”). Also on August 31, 2017, Realtime dismissed EchoStar Technologies L.L.C. from the Original Texas Action, and on September 12, 2017, added it as a defendant in an amended complaint in the Second Texas Action. On November 6, 2017, Realtime filed a joint motion to dismiss the Second Texas Action without prejudice, which the Court entered on November 8, 2017. On October 10, 2017, Realtime Adaptive Streaming LLC (“Realtime Adaptive Streaming”) filed suit against our wholly-owned subsidiaries DISH Network L.L.C. and EchoStar Technologies L.L.C., as well as Arris Group, Inc., in a new action in the United States District Court for the Eastern District of Texas (the “Third Texas Action”), alleging infringement of the 610 patent and the 535 patent. Also on October 10, 2017, an amended complaint was filed in the Colorado Action, substituting Realtime Adaptive Streaming as the plaintiff instead of Realtime, and alleging infringement of only the 610 patent and the 535 patent, but not the 897 patent. On November 6, 2017, Realtime Adaptive Streaming filed a joint motion to dismiss the Third Texas Action without prejudice, which the court entered on November 8, 2017. Also on November 6, 2017, Realtime Adaptive Streaming filed a second amended complaint in the Colorado Action, adding our wholly-owned subsidiaries DISH Network L.L.C. and EchoStar Technologies L.L.C., as well as Arris Group, Inc., as defendants. As a result, neither we nor any of our subsidiaries is a defendant in the Original Texas Action; the Court has dismissed without prejudice the Second Texas Action and the Third Texas Action; and our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. as well as Arris Group, Inc., are defendants in the Colorado Action, which now has Realtime Adaptive Streaming as the named plaintiff. The Court has set trial for December 16, 2019. On July 3, 2018, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of each of the asserted patents. Realtime Adaptive Streaming is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. 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. Rothschild Broadcast Distribution Systems, LLC On August 2, 2018, Rothschild Broadcast Distribution Systems, LLC (“Rothschild”) filed a complaint against us in the United States District Court for the Eastern District of Texas. The complaint, which accuses the DISH Anywhere feature, alleges infringement of United States Patent 8,856,221 (the “221 patent”), entitled “System and Method for Storing Broadcast Content in a Cloud-based Computing Environment.” Rothschild, an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein, has filed more than 35 patent infringement cases since 2015. On October 10, 2018, the Court granted Rothschild’s motion to dismiss the case without prejudice. This matter is now concluded. Telemarketing 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 alleged 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. was entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs were entitled to partial summary judgment with respect to ten claims in the action, which included, 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 were 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 have enjoined DISH Network L.L.C. from placing outbound telemarketing calls unless and until: (i) DISH Network L.L.C. hired a third-party consulting organization to perform a review of its call center operations; (ii) such third-party consulting organization submitted a telemarketing compliance plan to the Court and the federal plaintiff; (iii) the Court held a hearing on the adequacy of the plan; (iv) if the Court approved the plan, DISH Network L.L.C. implemented the plan and verified to the Court that it had implemented the plan; and (v) the Court issued an order permitting DISH Network L.L.C. to resume placing outbound telemarketing calls. The plaintiffs’ modified request for injunctive relief, if granted, would have also enjoined 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 was seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it was 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 was 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 were seeking; but the state plaintiffs took 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 United States Constitution, excessive fines may not be imposed. On October 3, 2016, the plaintiffs further modified their request for injunctive relief, and were 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. On June 5, 2017, the Court issued Findings of Fact and Conclusions of Law and entered Judgment ordering DISH Network L.L.C. to pay an aggregate amount of $280 million to the federal and state plaintiffs. The Court also issued a Permanent Injunction (the “Injunction”) against DISH Network L.L.C. that imposes certain ongoing compliance requirements on DISH Network L.L.C., which include, among other things: (i) the retention of a telemarketing-compliance expert to prepare a plan to ensure that DISH Network L.L.C. and certain independent third-party retailers will continue to comply with telemarketing laws and the Injunction; (ii) certain telemarketing records retention and production requirements; and (iii) certain compliance reporting and monitoring requirements. In addition to the compliance requirements under the Injunction, within ninety (90) days after the effective date of the Injunction, DISH Network L.L.C. is required to demonstrate that it and certain independent third-party retailers are in compliance with the Safe Harbor Provisions of the TSR and TCPA and have made no prerecorded telemarketing calls during the five (5) years prior to the effective date of the Injunction (collectively, the “Demonstration Requirements”). If DISH Network L.L.C. fails to prove that it meets the Demonstration Requirements, it will be barred from conducting any outbound telemarketing for two (2) years. If DISH Network L.L.C. fails to prove that a particular independent third-party retailer meets the Demonstration Requirements, DISH Network L.L.C. will be barred from accepting orders from that independent third-party retailer for two (2) years. On July 3, 2017, DISH Network L.L.C. filed two motions with the Court: (1) to alter or amend the Judgment or in the alternative to amend the Findings of Fact and Conclusions of Law; and (2) to clarify, alter and amend the Injunction. On August 10, 2017, the Court: (a) denied the motion to alter or amend the Judgment or in the alternative to amend the Findings of Fact and Conclusions of Law; and (b) allowed, in part, the motion to clarify, alter and amend the Injunction, and entered an Amended Permanent Injunction (the “Amended Injunction”). Among other things, the Amended Injunction provided DISH Network L.L.C. a thirty (30) day extension to meet the Demonstration Requirements, expanded the exclusion of certain independent third-party retailers from the Demonstration Requirements, and clarified that, with regard to independent third-party retailers, the Amended Injunction only applied to their telemarketing of DISH TV goods and services. On October 10, 2017, DISH Network L.L.C. filed a notice of appeal to the United States Court of Appeals for the Seventh Circuit, which heard oral argument on September 17, 2018. On February 2, 2018, the plaintiffs filed a notice claiming that DISH Network L.L.C. failed to prove that it met the Demonstration Requirements, as required by the Injunction, and asking the Court to impose a two-year ban on telemarketing by us, and a two-year ban on accepting orders from our primary retailers. On April 10, 2018, the plaintiffs withdrew their February 2, 2018 notice, without prejudice, and the Court vacated the hearing that had been set on the matter. During the second quarter 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We recorded $25 million of “Litigation expense” related to the FTC Action during periods prior to 2017. Our total accrual at September 30, 2018 related to the FTC Action was $280 million and is included in “Other accrued expenses” on our Condensed Consolidated Balance Sheets. Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes. The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action. 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. 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, which the Court denied on May 16, 2017. On May 22, 2017, the Court ruled that the violations were willful and knowing, and trebled the damages award to $1,200 for each call made in violation of TCPA. On April 5, 2018, the Court entered a $61 million judgment in favor of the class. On May 4, 2018, DISH Network L.L.C. filed a notice of appeal to the United States Court of Appeals for the Fourth Circuit. During the second quarter 2017, we recorded $41 million of “Litigation expense” related to the Krakauer Action on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We recorded $20 million of “Litigation expense” related to the Krakauer Action during the fourth quarter 2016. Our total accrual related to the Krakauer Action at September 30, 2018 was $61 million and is included in “Other accrued expenses” on our Condensed Consolidated Balance Sheets. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits. Telemarketing Shareholder Derivative Litigation On October 19, 2017, Plumbers Local Union No. 519 Pension Trust Fund (“Plumbers Local 519”), a purported shareholder of the Company, 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 following current and former members of the Company’s Board of Directors: Charles W. Ergen; James DeFranco; Cantey M. Ergen; Steven R. Goodbarn; David K. Moskowitz; Tom A. Ortolf; Carl E. Vogel; George R. Brokaw; Gary S. Howard; and Joseph P. Clayton (collectively, the “Director Defendants”). In its complaint, Plumbers Local 519 contends that, by virtue of their alleged failure to appropriately ensure the Company’s compliance with telemarketing laws, the Director Defendants exposed the Company to liability for telemarketing violations, including those in the Krakauer Action. It also contends that the Director Defendants caused the Company to pay improper compensation and benefits to themselves and others who allegedly breached their fiduciary duties to the Company. Plumbers Local 519 alleges causes of action for breach of fiduciary duties of loyalty and good faith, gross mismanagement, abuse of control, corporate waste and unjust enrichment. Plumbers Local 519 is seeking an unspecified amount of damages. On November 13, 2017, City of Sterling Heights Police and Fire Retirement System (“Sterling Heights”), a purported shareholder of the Company, filed a putative shareholder derivative action in the District Court for Clark County, Nevada. Sterling Heights makes substantially the same allegations as Plumbers Union 519, and alleges causes of action against the Director Defendants for breach of fiduciary duty, waste of corporate assets and unjust enrichment. Sterling Heights is seeking an unspecified amount of damages. Pursuant to a stipulation of the parties, on January 4, 2018, the District Court agreed to consolidate the Sterling Heights action with the Plumbers Local 519 action, and on January 12, 2018, the plaintiffs filed an amended consolidated complaint that largely duplicates the original Plumbers Local 519 complaint. Our Board of Directors has established a Special Litigation Committee to review the factual allegations and legal claims in this action. On May 15, 2018, the District Court granted the Special Litigation Committee’s motion to stay the case pending its investigation. The Special Litigation Committee’s report is due November 27, 2018. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. TQ Delta, LLC On July 17, 2015, TQ Delta, LLC (“TQ Delta”) filed a complaint against us and our wholly-owned subsidiaries DISH DBS Corporation and 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 then 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. 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. On October 26, 2017, the United States Patent and Trademark Office issued final written decisions on the petitions challenging the 158 patent, the 243 patent, the 412 patent and the 430 patent, and it invalidated all of the asserted claims of those patents. On February 7, 2018, the United States Patent and Trademark Office issued final written decisions on the petitions challenging the 404 patent, and it invalidated all of the asserted claims of that patent on the basis of our petition. On February 10, 2018, the United States Patent and Trademark Office issued a final written decision on our petition challenging the 268 patent, and it invalidated all of the asserted claims. On March 12, 2018, the United States Patent and Trademark Office issued a final written decision on a third-party petition challenging the 268 patent, and it invalidated all of the asserted claims. All asserted claims have now been invalidated by the United States Patent and Trademark Office. TQ Delta has filed notices of appeal from the nine final written decisions adverse to it. 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. Turner Network Sales On October 6, 2017, Turner Network Sales, Inc. (“Turner”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Southern District of New York. The operative First Amended Complaint alleges that DISH Network L.L.C. improperly calculated and withheld licensing fees owing to Turner in connection with its carriage of CNN and other networks. Turner claims damages of $183 million. On December 14, 2017, DISH Network L.L.C. filed its operative first amended counterclaims against Turner. In the counterclaims, DISH Network L.L.C. seeks a declaratory judgment that it properly calculated the licensing fees owed to Turner for carriage of CNN, and also alleges claims for unrelated breaches of the parties’ affiliation agreement. 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. 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 against us; our 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 Cantey M. Ergen (a member of our board of directors); Northstar Wireless; Northstar Spectrum; Northstar Manager; SNR Wireless; SNR HoldCo; SNR Management; 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 (the “D.C. Circuit”) issued its opinion in SNR Wireless LicenseCo, LLC, et al. v. F.C.C. The D.C. Circuit issued its opinion on August 29, 2017 and remanded the matter to the FCC for further proceedings. See “Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” above for further information. Thereafter, the Court maintained the stay until it was lifted on October 26, 2018. We intend to vigorously defend this case. We 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.

Segment Reporting

9 Months Ended

Sep. 30, 2018

Segment Reporting

Segment Reporting

10.Segment Reporting

Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise. Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance. We currently operate two primary business segments: (1) Pay-TV; and (2) Wireless. See Note 1 for further information.

All other and eliminations primarily include intersegment eliminations related to intercompany debt and the related interest income and interest expense, which are eliminated in consolidation.

The total assets, revenue and operating income by segment were as follows:


	As of
	September 30,		December 31,
	2018		2017
	(In thousands)
Total assets:
Pay-TV	$	28,570,048	$	28,353,581
Wireless		24,156,847		23,377,088
Eliminations		(22,589,485)		(21,956,903)
Total assets	$	30,137,410	$	29,773,766


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Revenue:
Pay-TV	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447
Wireless		—		—		—		—
Eliminations		—		—		—		—
Total revenue	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

Operating income (loss):
Pay-TV	$	572,753	$	460,158	$	1,693,378	$	1,344,742
Wireless (1)		(10,050)		(11,107)		(28,509)		(36,268)
Eliminations		—		—		—		—
Total operating income (loss)	$	562,703	$	449,051	$	1,664,869	$	1,308,474

(1)

Operating income (loss) for the wireless segment was positively impacted for the three and nine months ended September 30, 2018 by a decrease in depreciation expense associated with the T1 satellite, which was impaired during the fourth quarter 2017.

Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States.

The following table summarizes revenue by geographic region:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Revenue:	2018		2017		2018		2017
	(In thousands)
United States	$	3,380,412	$	3,571,686	$	10,280,237	$	10,874,653
Canada and Mexico		14,729		11,768		34,236		32,794
Total revenue	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

The revenue from external customers disaggregated by major revenue source was as follows:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Category:	2018		2017		2018		2017
	(In thousands)
Pay-TV video and related revenue	$	3,288,754	$	3,459,439	$	9,988,705	$	10,508,801
Broadband revenue		60,602		91,615		203,115		300,618
Equipment sales and other revenue		45,785		32,400		122,653		98,028
Total	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

All revenues during the three and nine months ended September 30, 2018 were derived from our Pay-TV segment.

Related Party Transactions

9 Months Ended

Sep. 30, 2018

Related Party Transactions

Related Party Transactions

12.Related Party Transactions

Related Party Transactions with EchoStar

Following the Spin-off, we 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 by certain entities established by Mr. Ergen for the benefit of his family.

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. In connection with the Share Exchange, we and EchoStar and certain of its 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 agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Condensed Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. Intercompany transactions between the Transferred Businesses and us, including, among others, the sale of set-top boxes and broadcast services from EchoStar to us, have been eliminated to the extent possible, including the margin EchoStar received on those sales. See Note 2 for further information. 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.

“Trade accounts receivable”

As of September 30, 2018 and December 31, 2017, trade accounts receivable from EchoStar was $4 million and $2 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets.

“Trade accounts payable”

As of September 30, 2018 and December 31, 2017, trade accounts payable to EchoStar was $19 million and $42 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets.

“Equipment sales and other revenue”

During each of the three months ended September 30, 2018 and 2017, we received $2 million and $1 million, respectively, for services provided to EchoStar. During the nine months ended September 30, 2018 and 2017, we received $7 million and $2 million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below.

Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease 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, we 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 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021.

90 Inverness Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 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 certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve one-year periods.

Gilbert Lease Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve 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. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022.

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 HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location.

“Subscriber-related expenses”

During the three months ended September 30, 2018 and 2017, we incurred $9 million and $15 million, respectively, of subscriber-related expenses for services provided to us by EchoStar. During the nine months ended September 30, 2018 and 2017, we incurred $33 million and $56 million, respectively, of subscriber-related expenses for services provided to us by EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

Hughes Broadband Distribution Agreement. Effective October 1, 2012, dishNET Satellite Broadband L.L.C. (“dishNET Satellite Broadband”), our indirect wholly-owned subsidiary, and HNS entered into a Distribution Agreement (the “Distribution Agreement”) pursuant to which dishNET Satellite Broadband has the right, but not the obligation, to market, sell and distribute the HNS satellite Internet service (the “Service”). dishNET Satellite Broadband pays HNS a monthly per subscriber wholesale service fee for the Service based upon the subscriber’s service level, and, beginning January 1, 2014, certain volume subscription thresholds. The Distribution Agreement also provides that dishNET Satellite Broadband has the right, but not the obligation, to purchase certain broadband equipment from HNS to support the sale of the Service. On February 20, 2014, dishNET Satellite Broadband and HNS amended the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement through March 1, 2024.

Thereafter, the Distribution Agreement automatically renews for successive one-year terms unless either party gives written notice of its intent not to renew to the other party at least 180 days before the expiration of the then-current term. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement.

During the first quarter 2017, we transitioned our wholesale arrangement with Hughes under the Distribution Agreement to an authorized representative arrangement and entered into the MSA with HNS. See “Hughes Broadband Master Services Agreement” below for further information.

“Satellite and transmission expenses”

During the three months ended September 30, 2018 and 2017, we incurred expenses of $73 million and $89 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. During the nine months ended September 30, 2018 and 2017, we incurred expenses of $242 million and $267 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar is a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

Satellite Capacity Leased from EchoStar. 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 7 for further information. The term of each lease is set forth below:

EchoStar VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar 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 VII expired on June 30, 2018.

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 expired as of September 30, 2017.

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 had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place certain satellites at the 61.5 degree orbital location.

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. We have also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 9.

Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date 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. Both the 103 Spectrum Development Agreement and DISH 103 Spectrum Development Agreement were terminated on March 31, 2018.

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. Both the 103 Service Agreement and DISH 103 Service Agreement were terminated on March 31, 2018.

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 (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months’ notice.

DBSD North America Agreement. On March 9, 2012, we completed the DBSD Transaction. During the second quarter 2011, EchoStar acquired Hughes. Prior to our acquisition of DBSD North America and EchoStar’s acquisition of Hughes, DBSD North America and HNS entered into an agreement pursuant to which HNS provides, among other things, hosting, operations and maintenance services for DBSD North America’s satellite gateway and associated ground infrastructure. This agreement generally may be terminated by us at any time for convenience.

TerreStar Agreement. On March 9, 2012, we completed the TerreStar Transaction. Prior to our acquisition of substantially all the assets of TerreStar and EchoStar’s acquisition of Hughes, TerreStar and HNS entered into various agreements pursuant to which HNS provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by us at any time for convenience.

“General and administrative expenses”

During the three months ended September 30, 2018 and 2017, we incurred $5 million and $8 million, respectively, of general and administrative expenses for services provided to us by EchoStar. During the nine months ended September 30, 2018 and 2017, we incurred $16 million and $23 million, respectively, of general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

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:

Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2017. In December 2017, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2018.

Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2017. In December 2017, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2018.

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 certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days’ prior notice.

Professional Services Agreement. Prior to 2010, in connection with the Spin-off, we 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, we and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from us, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, we and EchoStar agreed that we shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for us (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, 2018 for an additional one-year period until January 1, 2019 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. 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.

Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Other Agreements - EchoStar

Tax Sharing Agreement. In connection with the Spin-off, we entered into a tax sharing agreement (the “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 us, and we will indemnify EchoStar for such taxes. However, we are 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 us 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.

In light of the Tax Sharing Agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, during the third quarter 2013 we and EchoStar agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’ examination of these consolidated tax returns. As a result, we agreed to pay EchoStar $82 million of the tax benefit we received or will receive. This resulted in a reduction of our recorded unrecognized tax benefits and this amount was reclassified to a long-term payable to EchoStar within “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets during the third quarter 2013. Any payment to EchoStar, including accrued interest, will be made at such time as EchoStar would have otherwise been able to realize such tax benefit. In addition, during the third quarter 2013, we and EchoStar agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and EchoStar for such combined returns, through the taxable period ending on December 31, 2017 (the “State Tax Arrangement”). During the third quarter 2018, we and EchoStar amended the Tax Sharing Agreement and the 2013 agreements (the “Amendment”).

Under the Amendment, among other things, we are entitled to apply the benefit of EchoStar’s 2009 net operating losses to our federal tax return for the year ended December 31, 2008, in exchange for paying EchoStar over time the value of the net annual federal income taxes paid by EchoStar that would have been otherwise offset by their 2009 net operating loss. In addition, the Amendment extends the term of the State Tax Arrangement for filing certain combined state income tax returns to the earlier to occur of (1) termination of the Tax Sharing Agreement, (2) a change in control of either us or EchoStar or, (3) for any particular state, if we and EchoStar no longer file a combined tax return for such state.

We and EchoStar file combined income tax returns in certain states. In 2015 and 2014, EchoStar earned and recognized a tax benefit for certain state income tax credits that EchoStar estimates it would be unable to utilize in the future if it had filed separately from us. In addition, EchoStar earned and recognized tax benefits for certain federal income tax credits, a portion of which were allocated to us under IRS rules for affiliated companies. We expect to utilize these tax credits to reduce our federal and state income tax payable in the future. In accordance with accounting rules that apply to transfers of assets between entities under common control, we recorded a capital contribution of less than $1 million in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets for the year ended December 31, 2017 representing the amount that we estimate is more likely than not to be realized by us as a result of our utilization of these tax credits earned. Any payments made to EchoStar related to the utilization of these credits will be recorded as a reduction to “Additional paid-in capital” on our Condensed Consolidated Balance Sheets.

Tax Matters Agreement. In connection with the completion of the Share Exchange, we 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 we are responsible for all tax returns and tax liabilities for the Transferred Businesses from and after the Share Exchange. Both we and EchoStar have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both we 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, we have agreed to indemnify EchoStar if the Transferred Businesses are acquired, either directly or indirectly (e.g., via an acquisition of us), 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.

TiVo. On April 29, 2011, we and EchoStar entered into a settlement agreement with TiVo Inc. (“TiVo”). The settlement resolved all pending litigation between us and EchoStar, on the one hand, and TiVo, on the other hand, including litigation relating to alleged patent infringement involving certain DISH TV 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 us or EchoStar were dissolved. We 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 us, we 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 were allocated between us and EchoStar based on historical sales of certain licensed products, with us being responsible for 95% of each annual payment. Pursuant to the Share Exchange Agreement, we were responsible for EchoStar’s allocation of the final payment to TiVo, which was paid July 31, 2017.

Patent Cross-License Agreements. In December 2011, we 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) we and such third-party licensed our 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, we and EchoStar independently exercised our 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 us and EchoStar, we and EchoStar agreed to allocate our respective payments to such third party based on our respective percentage of combined total revenue.

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.

Invidi. In November 2010 and April 2011, EchoStar made investments in 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 Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into the MSA pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders for the Hughes broadband satellite service and related equipment; and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the MSA, HNS will make certain payments to DNLLC for each Hughes service activation generated, and installation performed, by DNLLC. Payments from HNS for services provided are recorded in “Subscriber-related revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The MSA has an initial term of five 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. For the three months ended September 30, 2018 and 2017, we purchased broadband equipment from HNS of $1 million and $7 million, respectively, under the MSA. For the nine months ended September 30, 2018 and 2017, we purchased broadband equipment from HNS of $18 million and $17 million, respectively, under the MSA.

Employee Matters Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we and EchoStar entered into an Employee Matters Agreement that addresses the transfer of employees from EchoStar to us, 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. We 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 us 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, we and EchoStar entered into an Intellectual Property and Technology License Agreement (“IPTLA”), pursuant to which we 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 us a license to its intellectual property and technology for use by us, among other things, in connection with our 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, we granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to us pursuant to the Share Exchange Agreement that is used in EchoStar’s retained businesses.

Related Party Transactions with NagraStar L.L.C.

As a result of the completion of the Share Exchange on February 28, 2017, we own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Subscriber-related expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Condensed Consolidated Balance Sheets or expensed as “Subscriber acquisition costs” or “Subscriber-related expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Condensed Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

The table below summarizes our transactions with NagraStar:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	15,007	$	17,897	$	57,632	$	54,328

	As of
	September 30,		December 31,
	2018		2017
	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	16,229	$	16,685
Commitments to NagraStar	$	879	$	4,927

Related Party Transactions with Dish Mexico

Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”) is an entity that provides direct-to-home satellite services in Mexico, which is owned 49% by EchoStar. We provide certain broadcast services and sell hardware such as digital set-top boxes and related components to Dish Mexico, which are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The table below summarizes our transactions with Dish Mexico:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Sales:
Digital receivers and related components	$	465	$	413	$	921	$	1,596
Uplink services	$	1,187	$	995	$	3,385	$	2,993

	As of
	September 30,		December 31,
	2018		2017
	(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico	$	1,219	$	3,027

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Redeemable Noncontrolling Interests

Use of Estimates

Marketable Investment Securities

Capitalized Interest

Fair Value Measurements

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

Revenue Recognition

Contract Balances

Assets recognized related to the Costs to Obtain a Contract with a Subscriber

Impact of Adoption of ASU 2014-09

In addition, we are providing additional disclosures comparing the results under previous guidance to those as follows:


Condensed Consolidated Statements of Operations	DISH Network (as would have been reported under previous standards)		Impact of adopting ASU 2014-09		DISH Network (as currently reported)
	(In thousands)
For the Three Months Ended September 30, 2018
Subscriber-related revenue	$	3,352,054	$	(2,698)	$	3,349,356
Subscriber-related expenses	$	2,127,035	$	(3,237)	$	2,123,798
Total subscriber acquisition costs	$	227,686	$	(40,808)	$	186,878
Operating income (loss)	$	521,356	$	41,347	$	562,703
Income (loss) before income taxes	$	551,941	$	41,347	$	593,288
Income tax (provision) benefit, net	$	(130,522)	$	(10,168)	$	(140,690)
Net income (loss) attributable to DISH Network	$	400,555	$	31,179	$	431,734
Diluted net income (loss) per share attributable to DISH Network	$	0.76	$	0.06	$	0.82

For the Nine Months Ended September 30, 2018
Subscriber-related revenue	$	10,206,160	$	(14,340)	$	10,191,820
Subscriber-related expenses	$	6,478,665	$	(10,489)	$	6,468,176
Total subscriber acquisition costs	$	691,216	$	(125,065)	$	566,151
Operating income (loss)	$	1,543,655	$	121,214	$	1,664,869
Income (loss) before income taxes	$	1,574,978	$	121,214	$	1,696,192
Income tax (provision) benefit, net	$	(368,156)	$	(29,831)	$	(397,987)
Net income (loss) attributable to DISH Network	$	1,146,628	$	91,383	$	1,238,011
Diluted net income (loss) per share attributable to DISH Network	$	2.18	$	0.17	$	2.35

Condensed Consolidated Balance Sheets	DISH Network (as would have been reported under previous standards)		Impact of adopting ASU 2014-09		DISH Network (as currently reported)
	(In thousands)
As of September 30, 2018
Inventory	$	273,227	$	31,717	$	304,944
Other current assets	$	159,381	$	38,609	$	197,990
Other noncurrent assets, net	$	345,739	$	98,906	$	444,645
Total assets	$	29,968,178	$	169,232	$	30,137,410
Deferred revenue and other	$	643,205	$	42,478	$	685,683
Deferred tax liabilities	$	2,298,388	$	30,623	$	2,329,011
Long-term deferred revenue and other long-term liabilities	$	455,052	$	2,427	$	457,479
Total liabilities	$	21,378,673	$	75,528	$	21,454,201
Total stockholders' equity (deficit)	$	8,149,334	$	93,704	$	8,243,038
Total liabilities and stockholders' equity (deficit)	$	29,968,178	$	169,232	$	30,137,410

The adoption of ASU 2014-09 had no impact to cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows.

Research and Development

New Accounting Pronouncements

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

9 Months Ended

Sep. 30, 2018

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
	September 30,		December 31,
	2018		2017
	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Strategic - available-for-sale	$	196	$	195
Strategic - trading/equity (Note 2)		11,236		93,367
Other		624,000		407,603
Total current marketable investment securities		635,432		501,165
Restricted marketable investment securities (1)		66,809		72,014
Total marketable investment securities		702,241		573,179

Restricted cash and cash equivalents (1)		390		393

Other investment securities:
Other investment securities - equity method		109,546		113,460
Total other investment securities		109,546		113,460

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	812,177	$	687,032

(1)

Schedule of components of available-for-sale investments


	As of September 30, 2018								As of December 31, 2017
	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	$	66,569	$	—	$	(49)	$	(49)	$	84,286	$	22	$	(141)	$	(119)
Commercial paper		50,000		—		—		—		107,962		—		(10)		(10)
Corporate securities		571,480		299		(223)		76		282,256		—		(124)		(124)
Other		2,956		58		—		58		5,308		58		(1)		57
Total	$	691,005	$	357	$	(272)	$	85	$	479,812	$	80	$	(276)	$	(196)

Schedule of fair value measurements


	As of
	September 30, 2018								December 31, 2017
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	1,127,887	$	824	$	1,127,063	$	—	$	1,425,798	$	655	$	1,425,143	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	66,569	$	66,569	$	—	$	—	$	84,286	$	84,286	$	—	$	—
Commercial Paper		50,000		—		50,000		—		107,962		—		107,962		—
Corporate securities		571,480		—		571,480		—		282,256		—		282,256		—
Other		2,956		—		2,760		196		5,308		—		5,113		195

Equity securities		11,236		11,236		—		—		93,367		93,367		—		—
Total	$	702,241	$	77,805	$	624,240	$	196	$	573,179	$	177,653	$	395,331	$	195

Schedule of gains and losses on sales and changes in carrying amounts of investments


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Other, net:	2018		2017		2018		2017
	(In thousands)
Marketable investment securities - realized and unrealized gains (losses) (1)	$	23,574	$	39,708	$	8,865	$	44,467
Costs related to early redemption of debt		—		—		(2,716)		—
Gain (loss) on sale of subsidiary		7,004		—		7,004		—
Equity in earnings of affiliates		(5,369)		501		(3,164)		895
Other		264		52		2,108		2,811
Total	$	25,473	$	40,261	$	12,097	$	48,173

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2018

Property and Equipment

Schedule of property and equipment


	Depreciable			As of
	Life			September 30,		December 31,
	(In Years)			2018		2017
				(In thousands)
Equipment leased to customers	2	-	5	$	2,105,679	$	2,323,100
EchoStar XV		15			277,658		277,658
EchoStar XVIII		15			411,255		411,255
D1		N/A			55,000		55,000
T1		14.25			100,000		100,000
Satellites acquired under capital lease agreements	10	-	15		499,819		499,819
Furniture, fixtures, equipment and other	2	-	10		1,838,437		1,779,109
Buildings and improvements	4	-	40		294,533		293,571
Land		—			14,057		14,057
Construction in progress		—			139,831		103,176
Total property and equipment					5,736,269		5,856,745
Accumulated depreciation					(3,746,235)		(3,673,084)
Property and equipment, net				$	1,990,034	$	2,183,661

Schedule of depreciation and amortization expense


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Equipment leased to customers	$	114,606	$	144,016	$	337,004	$	425,753
Satellites		25,085		29,414		75,257		87,840
Buildings, furniture, fixtures, equipment and other		35,594		35,894		128,698		112,032
Total depreciation and amortization	$	175,285	$	209,324	$	540,959	$	625,625

Schedule of pay-TV satellite fleet


			Estimated
			Useful Life
		Degree	(Years)/Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV	July 2010	61.5	15
EchoStar XVIII	June 2016	61.5	15

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month
EchoStar X (2)	February 2006	110	February 2021
EchoStar XI (2)	July 2008	110	September 2021
EchoStar XIV (2)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
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 (4)	December 2008	129	January 2019

(1)

See Note 12 for further information on our Related Party Transactions with EchoStar.

(2)

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.

(3)

We have the option to renew this lease for an additional five-year period.

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting

Schedule of assets, revenue, and operating income by segment


	As of
	September 30,		December 31,
	2018		2017
	(In thousands)
Total assets:
Pay-TV	$	28,570,048	$	28,353,581
Wireless		24,156,847		23,377,088
Eliminations		(22,589,485)		(21,956,903)
Total assets	$	30,137,410	$	29,773,766


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
Revenue:
Pay-TV	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447
Wireless		—		—		—		—
Eliminations		—		—		—		—
Total revenue	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

Operating income (loss):
Pay-TV	$	572,753	$	460,158	$	1,693,378	$	1,344,742
Wireless (1)		(10,050)		(11,107)		(28,509)		(36,268)
Eliminations		—		—		—		—
Total operating income (loss)	$	562,703	$	449,051	$	1,664,869	$	1,308,474

(1)

Schedule of revenue by geographical region


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Revenue:	2018		2017		2018		2017
	(In thousands)
United States	$	3,380,412	$	3,571,686	$	10,280,237	$	10,874,653
Canada and Mexico		14,729		11,768		34,236		32,794
Total revenue	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

Revenue from external customers disaggregated by major revenue source


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Category:	2018		2017		2018		2017
	(In thousands)
Pay-TV video and related revenue	$	3,288,754	$	3,459,439	$	9,988,705	$	10,508,801
Broadband revenue		60,602		91,615		203,115		300,618
Equipment sales and other revenue		45,785		32,400		122,653		98,028
Total	$	3,395,141	$	3,583,454	$	10,314,473	$	10,907,447

Commitments and Contingencies (Details) $ in Millions												1 Months Ended	9 Months Ended	12 Months Ended	84 Months Ended	114 Months Ended	129 Months Ended	153 Months Ended
Commitments and Contingencies (Details) $ in Millions	Jun. 07, 2018 USD ($)	Jun. 06, 2018	Mar. 31, 2018 USD ($)	May 11, 2017 USD ($)	Sep. 23, 2016	Jul. 01, 2016 USD ($)	Aug. 18, 2015 USD ($)	Apr. 29, 2014 USD ($) segment	Oct. 29, 2013	Mar. 09, 2012 USD ($)	Mar. 09, 2012	Jan. 31, 2017	Sep. 30, 2018 USD ($) item	Dec. 31, 2008 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) item	Sep. 30, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Apr. 13, 2017 USD ($) item
Spectrum Investments
Expected expenditures for second phase of network deployment													$ 10,000.0				$ 10,000.0	$ 10,000.0
Payment to acquire certain wireless licenses and related assets															$ 11,000.0		21,000.0
Commitments relating to AWS-3 Auction
Noncontrolling Interest in Variable Interest Entity													10,000.0				10,000.0	10,000.0
Maximum
Spectrum Investments
Expected expenditures for wireless projects													1,000.0				1,000.0	1,000.0
Minimum
Spectrum Investments
Expected expenditures for wireless projects													$ 500.0				500.0	500.0
MVDDS Licenses
Spectrum Investments
Number of geographical license areas \| item													82
MVDDS Licenses \| Maximum
Spectrum Investments
Number of geographical license areas \| item													214
LMDS Licenses
Spectrum Investments
Number Of Markets \| item													4
Wireless
Spectrum Investments
Payment to acquire certain wireless licenses and related assets																$ 11,000.0	11,000.0	11,000.0
H Block Licenses
Spectrum Investments
Payment to acquire certain wireless licenses and related assets								$ 1,672.0
Number of wireless spectrum licenses \| segment								176
H Block Licenses \| Minimum
Spectrum Investments
Final Build-out Requirement (as a percent)													75.00%
700 MHz Licenses
Spectrum Investments
Payment to acquire certain wireless licenses and related assets														$ 712.0
Modified 700 MHz Final Build-out Requirement (as a percent)									70.00%
600 MHz Licenses
Spectrum Investments
Number of wireless spectrum licenses \| item																				486
Build-out requirement accelerated period												2 years
Aggregate Bid Price																				$ 6,211.0
Licenses Renewal Period													39 months
600 MHz Licenses \| Maximum
Spectrum Investments
Percent of coverage on available licensed geographic areas													75.00%
600 MHz Licenses \| Minimum
Spectrum Investments
Percent of coverage on available licensed geographic areas													40.00%
DBSD North America and TerreStar Transactions \| Wireless
Spectrum Investments
Purchase price										$ 2,860.0
AWS-4 Final Build-out Requirement (as a percent)													70.00%
DBSD North America and TerreStar Transactions \| AWS-4 Satellites
Spectrum Investments
Ownership percentage											100.00%
Northstar Spectrum And SNR Holdco
Commitments relating to AWS-3 Auction
Noncontrolling Interest in Variable Interest Entity													$ 10.0				$ 10.0	$ 10.0	$ 10,000.0
Percentage of bidding credit							25.00%
Northstar Spectrum And SNR Holdco \| American III
Spectrum Investments
Number of wireless spectrum licenses \| item													244				244	244
Northstar Spectrum And SNR Holdco \| AWS-3 Licenses
Spectrum Investments
Interim Build-out Requirement (as a percent)													40.00%
Final Build-out Requirement (as a percent)													75.00%
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement													2 years
Northstar Spectrum And SNR Holdco \| Prior Arrangement \| SNR Licenses
Commitments relating to AWS-3 Auction
Number of licenses returned \| item													113
Northstar Spectrum And SNR Holdco \| Northstar Operative Agreement
Spectrum Investments
Debt outstanding amount													$ 6,870.0				$ 6,870.0	$ 6,870.0
Northstar Wireless or Northstar Spectrum
Spectrum Investments
Interim Payment													$ 334.0
Interim payment percentage													15.00%
Re-Auction payment													$ 1,892.0
Commitments relating to AWS-3 Auction
Bidding credit value							$ 1,961.0
Northstar Wireless or Northstar Spectrum \| Preferred Class A
Spectrum Investments
Ownership percentage													100.00%
Northstar Wireless or Northstar Spectrum \| Class B common stock
Spectrum Investments
Ownership percentage													85.00%
Commitments relating to AWS-3 Auction
Controlling interest owned by other companies													15.00%
Northstar Wireless or Northstar Spectrum \| Northstar Manager LLC
Commitments relating to AWS-3 Auction
Equity contribution													$ 133.0
Northstar Wireless or Northstar Spectrum \| American II
Spectrum Investments
Loan made													$ 69.0
Additional days allowed for management to put its interest													90 days
Commitments relating to AWS-3 Auction
Equity contribution													$ 7,621.0
Northstar Wireless or Northstar Spectrum \| American II \| Maximum
Spectrum Investments
Preferred stock quarterly distribution (as a percent)													12.00%
Window of days for management to put its interest													90 days
Northstar Wireless or Northstar Spectrum \| American II \| Minimum
Spectrum Investments
Preferred stock quarterly distribution (as a percent)													8.00%
Window of days for management to put its interest													30 days
Northstar Wireless or Northstar Spectrum \| Northstar Licenses
Spectrum Investments
Number of wireless spectrum licenses \| item													261				261	261
Commitments relating to AWS-3 Auction
Gross winning bids													$ 5,619.0
Northstar Wireless or Northstar Spectrum \| AWS-3 Licenses
Spectrum Investments
Non-payment gross winning bids													2,226.0				$ 2,226.0	$ 2,226.0
Commitments relating to AWS-3 Auction
Gross winning bids													$ 7,845.0
Percentage of bidding credit					25.00%								25.00%
Net winning bid													$ 5,884.0
Number of licenses returned \| item													84
Northstar Wireless or Northstar Spectrum \| Northstar Operative Agreement
Spectrum Investments
Loan balance maturity period	10 years	7 years
Removal of consent for unsecured financing and equipment financing	$ 25.0
Northstar Wireless or Northstar Spectrum \| Northstar Operative Agreement \| Preferred Class A
Spectrum Investments
Number shares issued in conversion \| item													6,870,493
Preferred stock quarterly distribution (as a percent)													12.00%
Northstar Wireless or Northstar Spectrum \| Northstar Operative Agreement \| Maximum
Spectrum Investments
Interest rate (as a percent)			12.00%
Northstar Wireless or Northstar Spectrum \| Northstar Operative Agreement \| Minimum
Spectrum Investments
Interest rate (as a percent)			6.00%
Northstar Wireless or Northstar Spectrum \| Northstar Operative Agreement \| Northstar Manager LLC
Spectrum Investments
Loan made													$ 500.0
Principal amount of debt													500.0				500.0	500.0
SNR Wireless or SNR Wireless Holdco
Spectrum Investments
Interim Payment													182.0
Re-Auction payment													1,029.0
Debt outstanding amount													5,065.0				5,065.0	5,065.0
Principal amount of debt													$ 500.0				500.0	500.0
Window of days for management to put its interest	90 days	30 days
Additional days allowed for management to put its interest	90 days
Commitments relating to AWS-3 Auction
Bidding credit value							$ 1,370.0
SNR Wireless or SNR Wireless Holdco \| Preferred Class A
Spectrum Investments
Ownership percentage													100.00%
Number shares issued in conversion \| item													5,065,415
Preferred stock quarterly distribution (as a percent)													12.00%
SNR Wireless or SNR Wireless Holdco \| Class B common stock
Spectrum Investments
Ownership percentage													85.00%
Commitments relating to AWS-3 Auction
Controlling interest owned by other companies													15.00%
SNR Wireless or SNR Wireless Holdco \| Maximum
Spectrum Investments
Preferred stock quarterly distribution (as a percent)	12.00%
SNR Wireless or SNR Wireless Holdco \| Minimum
Spectrum Investments
Preferred stock quarterly distribution (as a percent)	8.00%
SNR Wireless or SNR Wireless Holdco \| SNR Wireless Management LLC
Commitments relating to AWS-3 Auction
Equity contribution			$ 93.0
SNR Wireless or SNR Wireless Holdco \| American III
Spectrum Investments
Loan made													$ 344.0
Commitments relating to AWS-3 Auction
Equity contribution			5,590.0
Gross winning bids													4,271.0
SNR Wireless or SNR Wireless Holdco \| AWS 3 Auction
Commitments relating to AWS-3 Auction
Gross winning bids													5,482.0
Net winning bid													4,112.0
Bid withdrawal payment													$ 8.0
SNR Wireless or SNR Wireless Holdco \| AWS-3 Licenses \| SNR Wireless Management LLC
Spectrum Investments
Interim payment percentage													15.00%
SNR Wireless or SNR Wireless Holdco \| SNR Licenses
Spectrum Investments
Non-payment gross winning bids													$ 1,211.0				$ 1,211.0	$ 1,211.0
Additional Bid Withdrawal Payment													$ 3.0
SNR Wireless or SNR Wireless Holdco \| SNR Operative Agreement
Spectrum Investments
Loan balance maturity period	10 years	7 years
Removal of consent for unsecured financing and equipment financing	$ 25.0
SNR Wireless or SNR Wireless Holdco \| SNR Operative Agreement \| Preferred Class A
Spectrum Investments
Preferred stock quarterly distribution (as a percent)													6.00%
FCC Wireless Bureau \| Auction 1000
Spectrum Investments
Payment to acquire certain wireless licenses and related assets						$ 1,500.0
Payment of remaining balance of winning bid				$ 4,711.0
SNR Credit Agreement \| SNR Wireless or SNR Wireless Holdco
Spectrum Investments
Loan made			$ 500.0

Related Party Transactions (Details) $ in Thousands			1 Months Ended							3 Months Ended			9 Months Ended		12 Months Ended
Related Party Transactions (Details) $ in Thousands	Aug. 19, 2016	Apr. 29, 2011 USD ($) item	Mar. 31, 2017	Dec. 31, 2016	Jul. 31, 2016	Dec. 21, 2012	May 31, 2012	Jan. 31, 2012 item	Dec. 31, 2011 USD ($)	Sep. 30, 2018 USD ($) item	Sep. 30, 2017 USD ($)	Mar. 31, 2013 item	Sep. 30, 2018 USD ($) item	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2009 item	Dec. 31, 2008 item	Sep. 30, 2015 USD ($)
Related Party Transactions
Trade accounts receivable										$ 670,826			$ 670,826		$ 653,948
Trade accounts payable										269,515			269,515		393,305
Subscriber-related expenses										186,878	$ 318,811		566,151	$ 884,305
Satellite and transmission expenses										136,869	160,009		436,565	500,171
General and Administrative Expense										169,299	186,954		529,701	497,801
Noncontrolling interests										(1,807)			$ (1,807)		492
Maximum
Related Party Transactions
Capital contribution recorded in additional paid-in-capital for tax credits related to tax-sharing agreement															1,000
Collocation And Antenna Space Agreements
Related Party Transactions
Number of renewal options \| item													4
Term of renewal option													3 years
Professional Services Agreement
Related Party Transactions
Automatic Renewal Period													1 year
Hughes Broadband Distribution Agreement
Related Party Transactions
Automatic renewal period													1 year
Hughes Broadband Distribution Agreement \| Minimum
Related Party Transactions
Notice period for termination of agreement													180 days
EchoStar
Related Party Transactions
Trade accounts receivable										4,000			$ 4,000		2,000
Trade accounts payable										19,000			19,000		$ 42,000
Equipment sales and other revenue										2,000	1,000		7,000	2,000
Subscriber-related expenses										9,000	15,000		33,000	56,000
Satellite and transmission expenses										73,000	89,000		242,000	267,000
General and Administrative Expense										$ 5,000	8,000
General and administrative expenses - EchoStar													$ 16,000	23,000
EchoStar \| El Paso Lease Agreement
Related Party Transactions
Number of consecutive three year renewal options \| item													4
Term of renewal option													3 years
EchoStar \| 90 Inverness Lease Agreement
Related Party Transactions
Number of consecutive three year renewal options \| item													4
Term of renewal option													3 years
EchoStar \| Cheyenne Lease Agreement
Related Party Transactions
Number of one year renewal options \| item										12			12
Term of renewal option													1 year
EchoStar \| Gilbert Lease Agreement
Related Party Transactions
Number of one year renewal options \| item										12			12
Term of renewal option													1 year
EchoStar \| American Fork Occupancy License Agreement
Related Party Transactions
Term of renewal option													5 years
EchoStar \| Collocation And Antenna Space Agreements
Related Party Transactions
Minimum required notice period for termination of agreement by related party													180 days
EchoStar \| EchoStar XVI
Related Party Transactions
Term of renewal option					5 years
Agreement term						4 years
Extension of initial term					1 year
Additional term of renewal option					5 years
EchoStar \| Nimiq 5 Agreement
Related Party Transactions
Agreement term																15 years
Number of DBS transponders available to receive services \| item																32
EchoStar \| DISH Nimiq 5 Agreement
Related Party Transactions
Agreement term																10 years
Number of DBS transponders currently used \| item																32
EchoStar \| QuetzSat-1 Lease Agreement
Related Party Transactions
Agreement term																	10 years
Number of DBS transponders available to receive services \| item																	32
EchoStar \| QuetzSat-1 Transponder Agreement
Related Party Transactions
Number of DBS transponders currently used \| item																	24
Number of transponders subleased \| item												5
EchoStar \| 103 degree orbital location member
Related Party Transactions
Agreement term							10 years
EchoStar \| 2012 TT&C Agreement
Related Party Transactions
Number of one year renewal options \| item								4
Extension of initial term								1 year
Minimum required notice period for termination by the reporting entity								12 months
EchoStar \| Meridian Lease Agreement
Related Party Transactions
Additional term of renewal option				1 year
EchoStar \| Santa Fe Lease Agreement
Related Party Transactions
Additional term of renewal option				1 year
EchoStar \| 100 Inverness Lease Agreement
Related Party Transactions
Notice period for termination of agreement			180 days
EchoStar \| Professional Services Agreement
Related Party Transactions
Agreement term																1 year
Minimum notice period for termination of a specific service																30 days
EchoStar \| Professional Services Agreement \| Minimum
Related Party Transactions
Notice period for termination of agreement																60 days
EchoStar \| Patent Cross-License Agreements \| Maximum
Related Party Transactions
Payments to third party									$ 10,000
Payments to third party by related party under extension option									$ 3,000
EchoStar \| Rovi License Agreement
Related Party Transactions
Agreement term	10 years
EchoStar \| Tax Sharing Agreement
Related Party Transactions
Net amount of the allocated tax attributes payable																		$ 82,000
HNS
Related Party Transactions
Broadband equipment purchased from related parties										$ 1,000	$ 7,000		$ 18,000	$ 17,000
HNS \| Hughes Broadband Sales Agency Agreement
Related Party Transactions
Notice period for termination of agreement			90 days
Agreement term			5 years
Automatic Renewal Period			1 year
DISH Network \| TiVo vs Dish Network and EchoStar Corporation
Related Party Transactions
Settlement amount		$ 500,000
Initial settlement amount paid		300,000
Aggregate of six annual installment amounts between 2012 and 2017, net of contribution from related party		$ 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		95.00%

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Allowance for doubtful accounts on trade accounts receivable	$ 12,931	$ 15,511
Common stock, par value (in dollars per share)	$ 86.08
Class A common stock
Current Assets:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	229,236,679	228,033,671
Common stock, shares outstanding	229,236,679	228,033,671
Class B common stock
Current Assets:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	238,435,208	238,435,208
Common stock, shares outstanding	238,435,208	238,435,208

Organization and Business Activities	9 Months Ended
Organization and Business Activities	Sep. 30, 2018
Organization and Business Activities
Organization and Business Activities	1.Organization and Business Activities Principal Business DISH Network Corporation is a holding company. Its subsidiaries (which together with DISH Network Corporation are referred to as “DISH Network,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) operate two primary business segments. Pay-TV 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, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, 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 (“DISH TV”). As a result of the completion of the Share Exchange with EchoStar, described below, we also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. See Note 2 and Note 12 for further information. The Sling branded pay-TV services consist of, among other things, multichannel, live, linear streaming OTT Internet-based domestic, international and Latino video programming services (“Sling TV”). As of September 30, 2018, we had 12.656 million Pay-TV subscribers in the United States, including 10.286 million DISH TV subscribers and 2.370 million Sling TV subscribers. In addition, we have historically offered broadband services under the dishNET™ brand, which includes satellite broadband services that utilize advanced technology and high-powered satellites launched by Hughes Communications, Inc. (“Hughes”) and ViaSat, Inc. (“ViaSat”) and wireline broadband services. However, as of the first quarter 2018, we have transitioned our broadband business focus from wholesale to authorized representative arrangements, and we are no longer marketing dishNET broadband services. Our existing broadband subscribers will decline through customer attrition. Generally, under these authorized representative arrangements, we will receive certain payments for each broadband service activation generated and installation performed, and we will not incur subscriber acquisition costs for these activations. Wireless Since 2008, we have directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network Spectrum We have directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements. We 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. In addition, as we consider our options for the commercialization of our wireless spectrum, we will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. In March 2017, we notified the FCC that we plan to deploy a next-generation 5G-capable network, focused on supporting narrowband Internet of Things (“IoT”). The first phase of our network deployment will be completed by March 2020, with subsequent phases to be completed thereafter. As of September 30, 2018, we had entered into vendor contracts with multiple parties for, among other things, base stations, chipsets, modules, tower leases, the core network, Radio Frequency (“RF”) design, and deployment services. Among other things, initial RF design in connection with the first phase of our network deployment is now complete, and we are in the process of identifying and securing tower sites. The core network has been installed and commissioned. Based on our vendors’ current forecast, we plan to install the first base stations on sites later this year, and to continue deployment until complete. We may also determine that additional wireless spectrum licenses may be required to commercialize our wireless business and to compete with other wireless service providers. See Note 9 for further information. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through our wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), we initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, L.L.C. (“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 and to SNR Wireless, respectively, which are recorded in “FCC authorizations” on our Condensed Consolidated Balance Sheets. Under the applicable accounting guidance in Accounting Standards Codification 810, Consolidation (“ASC 810”), Northstar Spectrum and SNR HoldCo are considered variable interest entities and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. See Note 2 for further information. The AWS-3 Licenses are subject to certain interim and final build-out requirements. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from us, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential payments related to the Northstar Re-Auction Payment and the SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential Northstar Re-Auction Payment and SNR Re-Auction Payment, any loans, equity contributions or partnerships could vary significantly. There can be no assurance that we will be able to obtain a profitable return on our non-controlling investments in the Northstar Entities and the SNR Entities. See Note 9 for further information.

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Feb. 28, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Accounting policy disclosures
Capitalized Contract Cost		$ 51,000		$ 141,000
Amortization expense related to the programs		9,000		17,000
Total costs capitalized		138,000		138,000
Deferred taxes		2,329,011		$ 2,329,011		$ 2,019,538
Revenue, Practical Expedient, Financing Component [true false]				true
Research and Development
Research and development cost		6,000	$ 8,000	$ 18,000	$ 24,000
Northstar Manager LLC \| Minimum
Variable Interest Entity
Number of years after wireless spectrum license is granted until put right vests				5 years
Northstar Manager LLC \| Maximum
Variable Interest Entity
Number of years after wireless spectrum license is granted until put right vests				6 years
SNR Wireless Management LLC \| Minimum
Variable Interest Entity
Number of years after wireless spectrum license is granted until put right vests				5 years
SNR Wireless Management LLC \| Maximum
Variable Interest Entity
Number of years after wireless spectrum license is granted until put right vests				6 years
Sling TV Holding L.L.C.
Accounting policy disclosures
Nonvoting Interest Prior To Share Exchange	10.00%
Satellite and Tracking Stock Transaction \| DISH Investors \| EchoStar
Accounting policy disclosures
Preferred tracking stock issued by related party	6,290,499
Satellite and Tracking Stock Transaction \| DISH Investors \| HSSC
Accounting policy disclosures
Preferred tracking stock issued by related party	81.128
ASU 2014-09
Accounting policy disclosures
Deferred taxes		$ 1,000		$ 1,000
Cumulative effect of the change, net				$ 2,000

Basic and Diluted Net Income (Loss) Per Share - Performance based stock (Details) - $ / shares shares in Thousands		9 Months Ended
	Oct. 01, 2018	Sep. 30, 2018	Sep. 30, 2017
Antidilutive securities excluded from computation of earnings per share
Strike price of the warrants		$ 86.08
Dilutive securities excluded from computation of earnings per share		56,377	55,377
Anti-dilutive stock awards
Antidilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share		3,836	1,778
Performance based options
Antidilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share		4,722	6,318
Restricted Performance Units/Awards
Antidilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share		1,790	1,252
Common stock warrants
Antidilutive securities excluded from computation of earnings per share
Dilutive securities excluded from computation of earnings per share		46,029	46,029
2019 LTIP
Antidilutive securities excluded from computation of earnings per share
Options to purchase shares that were initially granted	4,400

Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Supplemental Data - Statements of Cash Flows
Cash paid for interest (including capitalized interest)	$ 764,540	$ 812,517
Cash received for interest	10,126	5,247
Cash paid for income taxes	27,280	33,181
Capitalized interest	761,842	752,925
Employee benefits paid in Class A common stock	27,322	23,164
Assets financed under capital lease obligations	$ 142	$ 889
2 3/8% Convertible Notes due 2024
Supplemental Data - Statements of Cash Flows
Interest rate (as a percent)	2.375%	2.375%	2.375%
Initial equity component of the Convertible Notes net of deferred taxes		$ 159,869
Deferred taxes		$ 92,512

Organization and Business Activities (Details) item in Thousands, $ in Millions	9 Months Ended	84 Months Ended	114 Months Ended	129 Months Ended	153 Months Ended
	Sep. 30, 2018 USD ($) segment item	Dec. 31, 2014 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) item	Sep. 30, 2018 USD ($) item	Dec. 31, 2017 USD ($)
Spectrum Investments
Number of primary operating business units \| segment	2
Number of Pay-TV subscribers \| item	12,656			12,656	12,656
Payment to acquire certain wireless licenses and related assets		$ 11,000.0		$ 21,000.0
Total debt and equity investments in subsidiaries	$ 10,000.0			$ 10,000.0	$ 10,000.0
Sling TV Holding L.L.C.
Spectrum Investments
Number of Pay-TV subscribers \| item	2,370			2,370	2,370
Dish TV
Spectrum Investments
Number of Pay-TV subscribers \| item	10,286			10,286	10,286
Wireless
Spectrum Investments
Payment to acquire certain wireless licenses and related assets			$ 11,000.0	$ 11,000.0	$ 11,000.0
Northstar Spectrum And SNR Holdco
Spectrum Investments
Total debt and equity investments in subsidiaries	$ 10.0			$ 10.0	$ 10.0	$ 10,000.0

Summary of Significant Accounting Policies - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Inventory	$ 304,944	$ 321,008
Other current assets	197,990	329,394
Other noncurrent assets, net	444,645	393,426
Total assets	30,137,410	29,773,766
Deferred revenue and other	685,683	709,074
Deferred tax liabilities	2,329,011	2,019,538
Long-term deferred revenue and other long-term liabilities	457,479	470,487
Total liabilities	21,454,201	22,452,470
Total stockholders' equity (deficit)	8,243,038	6,937,906
Total liabilities and stockholders' equity (deficit)	30,137,410	$ 29,773,766
ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred tax liabilities	1,000
DISH Network (as would have been reported under previous standard) \| ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Inventory	273,227
Other current assets	159,381
Other noncurrent assets, net	345,739
Total assets	29,968,178
Deferred revenue and other	643,205
Deferred tax liabilities	2,298,388
Long-term deferred revenue and other long-term liabilities	455,052
Total liabilities	21,378,673
Total stockholders' equity (deficit)	8,149,334
Total liabilities and stockholders' equity (deficit)	29,968,178
Impact of adoption ASU 2014-09 \| ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Inventory	31,717
Other current assets	38,609
Other noncurrent assets, net	98,906
Total assets	169,232
Deferred revenue and other	42,478
Deferred tax liabilities	30,623
Long-term deferred revenue and other long-term liabilities	2,427
Total liabilities	75,528
Total stockholders' equity (deficit)	93,704
Total liabilities and stockholders' equity (deficit)	$ 169,232

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Marketable investment securities, restricted cash and other investment securities
Strategic - available-for-sale	$ 196	$ 195
Strategic - trading/equity (Note 2)	11,236	93,367
Marketable investment securities	635,432	501,165
Total marketable investment securities	702,241	573,179
Restricted cash and cash equivalents	390	393
Total other investment securities	109,546	113,460
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	812,177	687,032
Other investment securities
Marketable investment securities, restricted cash and other investment securities
Marketable investment securities	624,000	407,603
Other investment securities - equity method	109,546	113,460
Restricted Marketable Investment Securities [Member]
Marketable investment securities, restricted cash and other investment securities
Total marketable investment securities	$ 66,809	$ 72,014

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details)	9 Months Ended
	Sep. 30, 2018	Feb. 28, 2017
Commercial paper \| Maximum
Other investment securities:
Debt term of Maturity	365 days
Corporate securities \| Maximum
Other investment securities:
Debt term of Maturity	18 months
NagraStar
Other investment securities:
Ownership interest (as a percent)		50.00%

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gain (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Components of our available-for-sale investments
Debt securities	$ 691,005	$ 479,812
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	357	80
Unrealized Losses	(272)	(276)
Unrealized Gains Losses, Net	85	(196)
Accumulated net unrealized gains (losses)
Accumulated net unrealized loss, before tax, in accumulated other comprehensive income (loss)	1,000	(1,000)
Accumulated net unrealized loss, net of tax, in accumulated other comprehensive income (loss)	1,000	(1,000)
Contractual maturities of restricted and non-restricted marketable investment securities
Debt securities with contractual maturities within one year	418,000
Debt securities with contractual maturities extending longer than one year through and including five years	273,000
US Treasury and agency securities
Components of our available-for-sale investments
Debt securities	66,569	84,286
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains		22
Unrealized Losses	(49)	(141)
Unrealized Gains Losses, Net	(49)	(119)
Commercial paper
Components of our available-for-sale investments
Debt securities	50,000	107,962
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Losses		(10)
Unrealized Gains Losses, Net		(10)
Corporate securities
Components of our available-for-sale investments
Debt securities	571,480	282,256
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	299
Unrealized Losses	(223)	(124)
Unrealized Gains Losses, Net	76	(124)
Other
Components of our available-for-sale investments
Debt securities	2,956	5,308
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains	58	58
Unrealized Losses		(1)
Unrealized Gains Losses, Net	$ 58	$ 57

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investments Measured at Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair value of marketable securities
Debt securities	$ 691,005	$ 479,812
Equity security	11,236	93,367
US Treasury and agency securities
Fair value of marketable securities
Debt securities	66,569	84,286
Commercial paper
Fair value of marketable securities
Debt securities	50,000	107,962
Corporate securities
Fair value of marketable securities
Debt securities	571,480	282,256
Other
Fair value of marketable securities
Debt securities	2,956	5,308
Fair value measurements on recurring basis
Fair value of marketable securities
Cash Equivalents (including restricted)	1,127,887	1,425,798
Equity security	11,236	93,367
Total	702,241	573,179
Fair value measurements on recurring basis \| US Treasury and agency securities
Fair value of marketable securities
Debt securities	66,569	84,286
Fair value measurements on recurring basis \| Commercial paper
Fair value of marketable securities
Debt securities	50,000	107,962
Fair value measurements on recurring basis \| Corporate securities
Fair value of marketable securities
Debt securities	571,480	282,256
Fair value measurements on recurring basis \| Other
Fair value of marketable securities
Debt securities	2,956	5,308
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Cash Equivalents (including restricted)	824	655
Equity security	11,236	93,367
Total	77,805	177,653
Fair value measurements on recurring basis \| Level 1 \| US Treasury and agency securities
Fair value of marketable securities
Debt securities	66,569	84,286
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Cash Equivalents (including restricted)	1,127,063	1,425,143
Total	624,240	395,331
Fair value measurements on recurring basis \| Level 2 \| Commercial paper
Fair value of marketable securities
Debt securities	50,000	107,962
Fair value measurements on recurring basis \| Level 2 \| Corporate securities
Fair value of marketable securities
Debt securities	571,480	282,256
Fair value measurements on recurring basis \| Level 2 \| Other
Fair value of marketable securities
Debt securities	2,760	5,113
Fair value measurements on recurring basis \| Level 3
Fair value of marketable securities
Total	196	195
Fair value measurements on recurring basis \| Level 3 \| Other
Fair value of marketable securities
Debt securities	$ 196	$ 195

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Changes in Level 3 Instruments (Details)	Sep. 30, 2018 USD ($)
Fair values transfers between Level 1 and Level 2
Fair value assets transfer from level 1 to level 2	$ 0
Fair value liabilities transfer from level 1 to level 2	0
Fair value assets transfer from level 2 to level 1	0
Fair value liabilities transfer from level 2 to level 1	$ 0

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory
Finished goods	$ 231,379	$ 248,233
Work-in-process and service repairs	55,911	54,455
Raw materials	17,654	18,320
Total inventory	$ 304,944	$ 321,008

Property and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Property and equipment
Total property and equipment	$ 5,736,269	$ 5,856,745
Accumulated depreciation	(3,746,235)	(3,673,084)
Property and equipment, net	1,990,034	2,183,661
Equipment leased to customers
Property and equipment
Total property and equipment	$ 2,105,679	2,323,100
Equipment leased to customers \| Minimum
Property and equipment
Depreciable Life	2 years
Equipment leased to customers \| Maximum
Property and equipment
Depreciable Life	5 years
EchoStar XV
Property and equipment
Total property and equipment	$ 277,658	277,658
Depreciable Life	15 years
EchoStar XVIII
Property and equipment
Total property and equipment	$ 411,255	411,255
Depreciable Life	15 years
D1
Property and equipment
Total property and equipment	$ 55,000	55,000
T1
Property and equipment
Total property and equipment	$ 100,000	100,000
Depreciable Life	14 years 3 months
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	10 years
Satellites acquired under capital lease agreements \| Maximum
Property and equipment
Depreciable Life	15 years
Furniture, fixtures, equipment and other
Property and equipment
Total property and equipment	$ 1,838,437	1,779,109
Furniture, fixtures, equipment and other \| Minimum
Property and equipment
Depreciable Life	2 years
Furniture, fixtures, equipment and other \| Maximum
Property and equipment
Depreciable Life	10 years
Buildings and improvements
Property and equipment
Total property and equipment	$ 294,533	293,571
Buildings and improvements \| Minimum
Property and equipment
Depreciable Life	4 years
Buildings and improvements \| Maximum
Property and equipment
Depreciable Life	40 years
Land
Property and equipment
Total property and equipment	$ 14,057	14,057
Construction in progress
Property and equipment
Total property and equipment	$ 139,831	$ 103,176

Property and Equipment - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018 item
EchoStar XV
Property and equipment
Estimated Useful Life	15 years
EchoStar XVI
Property and equipment
Term of renewal option	5 years
EchoStar XVIII
Property and equipment
Estimated Useful Life	15 years
EchoStar XVIII, including capitalized interest
Property and equipment
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator	11
Owned Satellites	2
Number of satellites utilized under operating lease	7
Number of satellites utilized under capital lease	2

Long-Term Debt and Capital Lease Obligations - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Debt Instrument
Carrying Value	$ 15,977,936	$ 17,070,789
Fair Value	15,358,276	17,568,043
Unamortized debt discount on the Convertible Notes	(857,374)	(925,360)
Unamortized deferred financing costs and debt	(39,680)	(46,782)
Capital Lease obligations	76,348	104,318
Total long-term debt and capital lease obligations (including current portion)	$ 15,157,230	16,202,965
4 1/4% Senior Notes due 2018
Debt Instrument
Carrying Value		1,025,861
Fair Value		$ 1,031,596
Interest rate (as a percent)	4.25%	4.25%
7 7/8% Senior Notes due 2019
Debt Instrument
Carrying Value	$ 1,337,469	$ 1,400,000
Fair Value	$ 1,386,514	$ 1,501,206
Interest rate (as a percent)	7.875%	7.875%
Debt repurchased	$ 62,000
Outstanding debt	1,338,000
5 1/8% Senior Notes due 2020
Debt Instrument
Carrying Value	1,100,000	$ 1,100,000
Fair Value	$ 1,112,320	$ 1,127,588
Interest rate (as a percent)	5.125%	5.125%
6 3/4% Senior Notes due 2021
Debt Instrument
Carrying Value	$ 2,000,000	$ 2,000,000
Fair Value	$ 2,049,640	$ 2,120,480
Interest rate (as a percent)	6.75%	6.75%
5 7/8% Senior Notes due 2022
Debt Instrument
Carrying Value	$ 2,000,000	$ 2,000,000
Fair Value	$ 1,958,480	$ 2,014,140
Interest rate (as a percent)	5.875%	5.875%
5% Senior Notes due 2023
Debt Instrument
Carrying Value	$ 1,500,000	$ 1,500,000
Fair Value	$ 1,366,665	$ 1,432,335
Interest rate (as a percent)	5.00%	5.00%
5 7/8% Senior Notes due 2024
Debt Instrument
Carrying Value	$ 2,000,000	$ 2,000,000
Fair Value	$ 1,802,400	$ 1,952,220
Interest rate (as a percent)	5.875%	5.875%
2 3/8% Convertible Notes due 2024
Debt Instrument
Carrying Value	$ 1,000,000	$ 1,000,000
Fair Value	$ 888,020	$ 962,860
Interest rate (as a percent)	2.375%	2.375%	2.375%
7 3/4% Senior Notes due 2026
Debt Instrument
Carrying Value	$ 2,000,000	$ 2,000,000
Fair Value	$ 1,891,620	$ 2,118,400
Interest rate (as a percent)	7.75%	7.75%
3 3/8% Convertible Notes due 2026
Debt Instrument
Carrying Value	$ 3,000,000	$ 3,000,000
Fair Value	$ 2,862,150	$ 3,262,290
Interest rate (as a percent)	3.375%	3.375%
Other notes payable
Debt Instrument
Carrying Value	$ 40,467	$ 44,928
Fair Value	$ 40,467	$ 44,928

Commitments and Contingencies - Part 2 (Details)								3 Months Ended		9 Months Ended		24 Months Ended
Commitments and Contingencies - Part 2 (Details)	Apr. 05, 2018 USD ($)	Oct. 06, 2017 USD ($)	May 22, 2017 $ / item	Jan. 19, 2017 USD ($) item	Sep. 23, 2016 USD ($)	Aug. 18, 2015 USD ($)	Dec. 23, 2013 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 05, 2017 USD ($)	Apr. 29, 2011 USD ($)
Loss contingencies
Litigation Expense											$ 295,695,000
Turner Network Sales, Inc.
Loss contingency terms
Claim amount		$ 183,000,000
Vermont National Telephone Company [Member]
Loss contingency terms
Recovery amount					$ 10,000,000,000
Satellite transponder guarantees
Loss contingencies
Guarantees for payments										$ 69,000,000
Litigation accrual										$ 0
Northstar Spectrum And SNR Holdco
Loss contingency terms
Percentage Of Bidding Credit						25.00%
Northstar Spectrum And SNR Holdco \| AWS-3 Licenses
Loss contingencies
Interim Build-out Requirement (as a percent)										40.00%
Final Build-out Requirement (as a percent)										75.00%
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement										2 years
Northstar Wireless or Northstar Spectrum
Loss contingency terms
Bidding Credit						$ 1,961,000,000
Northstar Wireless or Northstar Spectrum \| AWS-3 Licenses
Loss contingency terms
Percentage Of Bidding Credit					25.00%					25.00%
Northstar Wireless or Northstar Spectrum \| AWS-3 Licenses \| Vermont National Telephone Company [Member]
Loss contingency terms
Bidding Credit					$ 3,300,000,000
Northstar Wireless or Northstar Spectrum \| AWS-3 Licenses \| Minimum \| Vermont National Telephone Company [Member]
Loss contingency terms
Claim amount					5,500
Northstar Wireless or Northstar Spectrum \| AWS-3 Licenses \| Maximum \| Vermont National Telephone Company [Member]
Loss contingency terms
Claim amount					$ 11,000
SNR Wireless or SNR Wireless Holdco
Loss contingency terms
Bidding Credit						$ 1,370,000,000
Lightsquared Harbinger Capital Partners LLC
Loss contingencies
Business days allowed to terminate existing agreements										3 days
Telemarketing Litigation
Loss contingencies
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services										5 years
Telemarketing Litigation \| OHIO
Loss contingency terms
Claim amount										$ 10,000,000
Telemarketing Litigation \| CALIFORNIA
Loss contingencies
Claim amount from state plaintiff										$ 100,000,000
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
Period barred from making outbound telemarketing calls										2 years
Number Of Telemarketing Calls \| item				51,119
Litigation Per Call Damages				$ 400
Do Not Call Litigation \| Maximum \| Illinois And North Carolina [Member]
Loss contingencies
Claim amount from state plaintiff										$ 1,000,000,000
Krakauer Action
Loss contingencies
Litigation Expense								$ 41,000,000	$ 20,000,000
Third party Number Of Calls Made In Case Trebled Damages Per Call \| $ / item			1,200
Settlement amount awarded to other party	$ 61,000,000
Krakauer Action \| Other Accrued Expense
Loss contingencies
Litigation accrual										61,000,000
TiVo vs Dish Network and EchoStar Corporation \| DISH Network
Loss contingencies
Litigation accrual														$ 200,000,000
DISH Network L.L.C. \| Telemarketing Litigation
Loss contingencies
Claim amount from state plaintiff										23,500,000,000
Damages awarded to state and federal plaintiff													$ 280,000,000
Litigation Expense								$ 255,000,000				$ 25,000,000
Loss contingency terms
Claim amount							$ 270,000,000
DISH Network L.L.C. \| Telemarketing Litigation \| Other Accrued Expense
Loss contingencies
Litigation accrual										280,000,000
DISH Network L.L.C. \| Telemarketing Litigation \| Maximum
Loss contingencies
Claim amount from federal plaintiff										$ 900,000,000

Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Reporting (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) segment	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment information
Number of primary operating business units \| segment			2
Total assets	$ 30,137,410		$ 30,137,410		$ 29,773,766
Revenues	3,395,141	$ 3,583,454	10,314,473	$ 10,907,447
Operating income (loss)	562,703	449,051	1,664,869	1,308,474
Pay-TV video and related revenue
Segment information
Revenues	3,288,754	3,459,439	9,988,705	10,508,801
Broadband revenue
Segment information
Revenues	60,602	91,615	203,115	300,618
Equipment sales and other revenue
Segment information
Revenues	45,785	32,400	122,653	98,028
United States
Segment information
Revenues	3,380,412	3,571,686	10,280,237	10,874,653
Canada And Mexico
Segment information
Revenues	14,729	11,768	34,236	32,794
Pay-TV \| Operating segment
Segment information
Total assets	28,570,048		28,570,048		28,353,581
Revenues	3,395,141	3,583,454	10,314,473	10,907,447
Operating income (loss)	572,753	460,158	1,693,378	1,344,742
Wireless \| Operating segment
Segment information
Total assets	24,156,847		24,156,847		23,377,088
Operating income (loss)	(10,050)	$ (11,107)	(28,509)	$ (36,268)
All Other and Eliminations \| Other and Eliminations
Segment information
Total assets	$ (22,589,485)		$ (22,589,485)		$ (21,956,903)

Contract Balances - Valuation And Qualifying Accounts Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Contract Balances
Allowance for Doubtful Accounts Receivable, Beginning Balance	$ 15,511
Charged to Costs and Expenses	73,695
Deductions	(76,275)
Allowance for Doubtful Accounts Receivable, Ending Balance	$ 12,931

Contract Balances - Deferred Revenues (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Contract Balances
Balance at Beginning of Period	$ 699,597
Recognition of unearned revenue	(5,426,707)
Deferral of revenue	5,398,249
Balance at End of Period	$ 671,139