0001104659-20-096921 | S-4 | XBRL Viewer

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, 2019. 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. 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.

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 credit losses, 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, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize 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

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 and are recorded at fair value. Historically, we reported temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay.

Trade Accounts Receivable

Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions.

In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected.

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:

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

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

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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 June 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities.

Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 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; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 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 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 services 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 Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“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 12 for further information, including balance and activity detail about our allowance for credit losses 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 months ended June 30, 2020 and 2019, we capitalized $44 million and $55 million, respectively, under these programs. The amortization expense related to these programs was $29 million and $17 million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, we capitalized $82 million and $92 million, respectively, under these programs. The amortization expense related to these programs was $56 million and $31 million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, we had a total of $326 million and $300 million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current 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).

Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years, some of which include renewal options, and some of which include options to terminate the leases within one year.

We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses.

Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 13 “Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

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

For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease.

Impact of Adoption of ASU 2016-02

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019.

The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and 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 $5 million and $6 million for the three months ended June 30, 2020 and 2019, respectively. Research and development costs totaled $11 million for each of the six months ended June 30, 2020 and 2019.

2.Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

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

On February 28, 2017, DISH Network and EchoStar and certain of their 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, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 17 for further information.

As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our 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 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. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange.

Use of Estimates

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

Cash and Cash Equivalents

We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value.

Marketable Investment Securities

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 stockholder’s equity (deficit),” net of related deferred income tax on our 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 Consolidated Statements of Operations and Comprehensive Income (Loss).

Subsequent to the adoption of ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“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 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 stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment.

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

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the fair value of our debt investments compared to the carrying amount,

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the historical volatility of the price of each security, and

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any market and company specific factors related to each security.

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


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

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

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we have the intent to sell the security,

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

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

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

Trade Accounts Receivable

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

Inventory

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

Property and Equipment

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

Impairment of Long-Lived Assets

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

DBS Satellites. We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2019.

Indefinite-Lived Intangible Assets and Goodwill

We do not amortize indefinite lived intangible assets and goodwill but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following:

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FCC licenses are a non-depleting asset;

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

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

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maintenance expenditures to obtain future cash flows are not significant;

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FCC licenses are not technologically dependent; and

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we intend to use these assets indefinitely.

DBS Licenses. We combine all of our indefinite-lived DBS licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2019, 2018 and 2017, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. In our assessment, we considered several factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. As such, no further analysis was required.

MVDDS Licenses. During 2018 and 2017, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2018 and 2017, management assessed these licenses quantitatively. Our quantitative assessment in each year for these licenses consisted of a market approach. The market approach uses prior transactions including auctions to estimate the fair value of the licenses. In conducting these quantitative assessments, we determined that the fair value of these licenses exceeded their carrying amount.

Business Combinations

When we acquire a business, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires most identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at fair value. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets are recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years or in relation to the estimated discounted cash flows over the life of the intangible asset.

Long-Term Deferred Revenue and Other Long-Term Liabilities

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

Sales Taxes

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

Income Taxes

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

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

Fair Value Measurements

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

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As of December 31, 2019 and 2018, 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 finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities.

Deferred Debt Issuance Costs

Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information.

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; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 for further information, including revenue disaggregated by major source.

For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606 (“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.

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 15 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 years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our 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 modified the standard thereafter. We adopted ASU 2014-09, as modified, and now codified as 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.

Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years, some of which include renewal options, and some of which include options to terminate the leases within one year.

We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses.

We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 17 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement.

For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease.

Impact of Adoption of ASU 2016-02

The adoption of ASU 2016-02 had no impact on our Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Consolidated Statements of Cash Flows.

The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows:


Consolidated Balance Sheets	DISH DBS (as would have been reported under previous standards)		Impact of adopting ASU 2016-02		DISH DBS (as currently reported)

	(In thousands)
As of December 31, 2019
Operating lease assets	$	—	$	553,576	$	553,576
Total assets	$	3,832,983	$	553,576	$	4,386,559
Other accrued expenses	$	715,361	$	202,972	$	918,333
Operating lease liabilities	$	—	$	350,155	$	350,155
Long-term deferred revenue and other long-term liabilities	$	207,543	$	449	$	207,992
Total liabilities	$	14,767,605	$	553,576	$	15,321,181
Total stockholder's equity (deficit)	$	(10,934,622)	$	—	$	(10,934,622)
Total liabilities and stockholder's equity (deficit)	$	3,832,983	$	553,576	$	4,386,559

Subscriber-Related Expenses

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

Cost of Sales – Equipment and Other

Costs include the cost of non-subsidized sales of DBS accessories and the cost of sales of digital receivers and related components to third-party pay-TV providers, both of which include freight and royalties, costs associated with in-home services, and costs related to services and other agreements with EchoStar. Costs are generally recognized as products are delivered to customers and the related revenue is recognized.

Subscriber Acquisition Costs

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

●

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

●

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

●

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

We characterize amounts paid to our independent third-party retailers as consideration for equipment installation services and for equipment buydowns (incentives and rebates) as a reduction of revenue. We expense payments for equipment

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

Research and Development

Research and development costs are expensed as incurred. Research and development costs totaled $21 million, $24 million and $33 million for the years ended December 31, 2019, 2018 and 2017, respectively.

New Accounting Pronouncements

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 currently expect that the adoption of ASU 2016-13 will have an immaterial impact on our 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 currently expect that the adoption of ASU 2018-13 will have an immaterial impact on our Consolidated Financial Statements and related disclosures.

Supplemental Data - Statements of Cash Flows

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Supplemental Data - Statements of Cash Flows

3.	Supplemental Data - Statements of Cash Flows

The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases.


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for interest	$	329,923	$	382,391
Cash received for interest		1,962		8,528
Cash paid for income taxes		3,205		8,845
Cash paid for income taxes to DISH Network		176,964		152,526
Capitalized interest		—		440
Reclassification of a receivable from noncurrent to current		—		138,210

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

3.Supplemental Data - Statements of Cash Flows

The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases.


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Cash paid for interest	$	765,510	$	793,506	$	878,772
Cash received for interest		30,041		6,043		9,855
Cash paid for income taxes		19,485		18,683		29,961
Cash paid for income taxes to DISH Network		245,028		302,329		408,265
Capitalized interest		440		1,071		481

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

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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

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

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

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


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	31	$	—
Restricted marketable investment securities (1)		—		390
Total marketable investment securities		31		390

Restricted cash and cash equivalents (1)		61,349		60,677

Other investment securities:
Other investment securities		96,886		106,874
Total other investment securities		96,886		106,874

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	158,266	$	167,941

(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 may consist of debt and equity instruments. 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 and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded 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

Our current marketable investment securities portfolio can include 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 June 30, 2020 and December 31, 2019, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts.

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.

Fair Value Measurements

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


	As of
	June 30, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	63,344	$	62,740	$	604	$	—	$	60,677	$	60,677	$	—	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	390	$	390	$	—	$	—
Commercial paper		31		—		31		—		—		—		—		—
Corporate securities		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—
Total	$	31	$	—	$	31	$	—	$	390	$	390	$	—	$	—

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 Six Months Ended
	June 30,				June 30,
Other, net:	2020		2019		2020		2019

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	—	$	829	$	—	$	3,599
Costs related to early redemption of debt		—		—		—		(439)
Equity in earnings of affiliates		(399)		2,297		(121)		1,353
Other		247		5		914		51
Total	$	(152)	$	3,131	$	793	$	4,564

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

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


	As of December 31,
	2019		2018

	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Trading/equity	$	—	$	2,370
Other		—		147,370
Total current marketable investment securities		—		149,740
Restricted marketable investment securities (1)		390		67,019
Total marketable investment securities		390		216,759

Restricted cash and cash equivalents (1)		60,677		578

Other investment securities:
Other investment securities		106,874		108,308
Total other investment securities		106,874		108,308

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	167,941	$	325,645

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

Marketable Investment Securities

Our marketable investment securities portfolio may consist 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 Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information.

Current Marketable Investment Securities - Trading

We had an investment in non-marketable preferred shares of a non-public company, which was received for no cash consideration and was previously accounted for as a cost method investment and included in “Other investment securities” on our Consolidated Balance Sheets. During the third quarter 2017, our non-marketable preferred shares converted into common shares in conjunction with the issuer’s initial public offering, and, accordingly, we classified the new equity securities as “Marketable investment securities” on our Consolidated Balance Sheets.

Current Marketable Investment Securities - Other

Our current other marketable investment securities portfolio can include 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 December 31, 2019 and 2018, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts.

Other Investment Securities

We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our 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.

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 December 31, 2019 and 2018, we had accumulated net unrealized losses of zero and less than $1 million, respectively. These amounts, net of related tax effect, were accumulated net unrealized losses of zero and less than $1 million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below.


	As of December 31,
	2019								2018
	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	$	390	$	—	$	—	$	—	$	66,823	$	40	$	(19)	$	21
Commercial paper		—		—		—		—		45,938		—		—		—
Corporate securities		—		—		—		—		100,662		11		(113)		(102)
Other		—		—		—		—		966		—		—		—
Total	$	390	$	—	$	—	$	—	$	214,389	$	51	$	(132)	$	(81)

As of December 31, 2019, restricted and non-restricted marketable investment securities included debt securities of less than $1 million with contractual maturities within one year. 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 December 31,
	2019								2018
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	60,677	$	60,677	$	—	$	—	$	114,464	$	12,493	$	101,971	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	390	$	390	$	—	$	—	$	66,823	$	66,823	$	—	$	—
Commercial paper		—		—		—		—		45,938		—		45,938		—
Corporate securities		—		—		—		—		100,662		—		100,662		—
Other		—		—		—		—		966		—		966		—

Equity securities		—		—		—		—		2,370		2,370		—		—
Total	$	390	$	390	$	—	$	—	$	216,759	$	69,193	$	147,566	$	—

During the years ended December 31, 2019 and 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 Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:



	For the Years Ended December 31,
Other, net:	2019		2018		2017

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	3,119	$	5,313	$	87,020
Costs related to early redemption of debt		—		(3,261)		(1,470)
Gain (loss) on sale of subsidiary		—		7,004		—
Equity in earnings of affiliates		3,514		(2,110)		2,163
Other		976		2,048		798
Total	$	7,609	$	8,994	$	88,511

Inventory

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Inventory

Inventory

5.	Inventory

Inventory consisted of the following:


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Finished goods	$	249,605	$	254,240
Work-in-process and service repairs		34,245		34,120
Raw materials		17,558		33,623
Total inventory	$	301,408	$	321,983

5.Inventory

Inventory consisted of the following:


	As of December 31,
	2019		2018

	(In thousands)
Finished goods	$	254,240	$	215,150
Work-in-process and service repairs		34,120		56,871
Raw materials		33,623		18,676
Total inventory	$	321,983	$	290,697

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property and Equipment and Intangible Assets

6.Property and Equipment and Intangible Assets

Property and Equipment

Property and equipment consisted of the following:


	Depreciable		As of
	Life	December 31,		December 31,
	(In Years)	2019		2018

		(In thousands)
Equipment leased to customers	2-5	$	1,837,503	$	1,980,808
EchoStar XV	15		277,658		277,658
EchoStar XVIII (1)	15		411,255		—
Satellites acquired under finance lease agreements (2)(3)	15		398,107		499,819
Furniture, fixtures, equipment and other	2-20		1,894,629		1,820,883
Buildings and improvements	5-40		289,421		289,244
Land	-		13,186		13,186
Construction in progress	-		70,081		47,077
Total property and equipment			5,191,840		4,928,675
Accumulated depreciation			(3,440,267)		(3,550,726)
Property and equipment, net		$	1,751,573	$	1,377,949

(1)

(2)

The Ciel II satellite was previously classified as a finance lease, with a cost basis of $277 million, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease.

(3)

The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease, with a cost basis of $175 million.

Depreciation and amortization expense consisted of the following:


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Equipment leased to customers	$	370,867	$	437,342	$	539,434
Satellites		65,441		61,045		61,045
Buildings, furniture, fixtures, equipment and other		141,040		162,073		141,293
Total depreciation and amortization	$	577,348	$	660,460	$	741,772

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

Satellites

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 six satellites that we lease from DISH Network, one satellite that we lease from EchoStar, and two satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life.

As of December 31, 2019, our pay-TV satellite fleet consisted of the following:


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
Nimiq 5 (3)(4)	September 2009	72.7	September 2020
QuetzSat-1 (3)	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)	See Note 17 for further information on our Related Party Transactions with EchoStar.

(2)	See Note 17 for further information on our Related Party Transactions with DISH Network.

(3)

On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar. Upon the closing of the Master Transaction Agreement on September 10, 2019, these satellites and satellite service agreements leased from EchoStar were transferred to DISH Network. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement.

(4)

On May 14, 2019, we and DOLLC II entered into the Satellite and Spectrum Transaction, discussed above. As the Satellite and Spectrum Transaction is among entities under common control, we recorded the EchoStar XVIII Satellite at DOLLC II’s net historical cost basis of $320 million. The difference between the net historical cost basis of EchoStar XVIII and our net carrying value of the LMDS and MVDDS licenses of $26 million, resulted in a $267 million capital transaction, net of tax, that was recorded in “Additional paid-in capital” on our Consolidated Balance Sheets during the second quarter of 2019.

Satellite Anomalies

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

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

In the past, certain of our owned and leased satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the owned and leased satellites in our fleet. See Note 2 “Impairment of Long-Lived Assets” for further information on evaluation of impairment. There can be no assurance that we can recover critical transmission capacity in the event one or more of our owned or leased in-orbit satellites were to fail. We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we own, and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures.

Intangible Assets

As of December 31, 2019 and 2018, our identifiable intangibles subject to amortization consisted of the following:


	As of December 31,
	2019				2018
	Intangible		Accumulated		Intangible		Accumulated
	Assets		Amortization		Assets		Amortization

	(In thousands)
Technology-based	$	58,162	$	(53,447)	$	58,162	$	(51,204)
Trademarks		35,010		(30,655)		35,010		(27,106)
Contract-based		4,500		(4,500)		4,500		(4,500)
Customer relationships		23,632		(23,632)		23,632		(23,632)
Total	$	121,304	$	(112,234)	$	121,304	$	(106,442)

These identifiable intangibles are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Amortization of these intangible assets is recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years. Amortization was $6 million, $7 million and $7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Estimated future amortization of our identifiable intangible assets as of December 31, 2019 is as follows (in thousands):


For the Years Ended December 31,
2020	$	3,285
2021		835
2022		666
2023		654
2024		654
Thereafter		2,976
Total	$	9,070

As of December 31, 2019 and 2018, we had goodwill of $6 million, which is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets.

FCC Authorizations

As of December 31, 2019 and 2018, our FCC Authorizations consisted of the following:


	As of December 31,
	2019		2018

	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS Licenses (1)		—		24,000
Capitalized Interest		—		1,552
Total	$	611,794	$	637,346

(1)

On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite.

Leases

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases

7.	Leases

Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet.

The components of lease expense were as follows:

For the Three Months Ended

For the Six Months Ended

June 30,

2020

2019

2020

2019

(In thousands)

Operating lease cost	$	61,808	$	81,762	$	123,523	$	162,048

Short-term lease cost (1)		3,733		12,141		6,400		31,426

Finance lease cost:
Amortization of right-of-use assets		12,300		3,805		24,748		9,913
Interest on lease liabilities		4,534		1,099		9,332		2,280
Total finance lease cost		16,834		4,904		34,080		12,193
Total lease costs	$	82,375	$	98,807	$	164,003	$	205,667

(2)Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows:


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	123,811	$	164,159
Operating cash flows from finance leases	$	9,332	$	2,295
Financing cash flows from finance leases	$	23,227	$	10,454

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	17,967	$	61,872
Finance leases	$	—	$	—

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842			$	730,180

Supplemental balance sheet information related to leases was as follows:


	As of
	June 30, 2020		December 31, 2019

	(In thousands)
Operating Leases:
Operating lease assets	$	471,987	$	553,576

Other current liabilities	$	204,138	$	202,972
Operating lease liabilities		267,154		350,155
Total operating lease liabilities	$	471,292	$	553,127

Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(226,325)		(201,873)
Property and equipment, net	$	172,550	$	197,891

Other current liabilities	$	50,860	$	48,678
Other long-term liabilities		137,949		163,939
Total finance lease liabilities	$	188,809	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.1 years		3.4 years
Finance leases		3.8 years		4.2 years

Weighted Average Discount Rate:
Operating leases		9.0%		9.1%
Finance leases		9.5%		9.5%

Maturities of lease liabilities as of June 30, 2020 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020 (remaining six months)	$	121,315	$	33,139	$	154,454
2021		205,137		66,279		271,416
2022		132,452		50,226		182,678
2023		27,439		42,862		70,301
2024		11,376		32,147		43,523
Thereafter		42,414		—		42,414
Total lease payments		540,133		224,653		764,786
Less: Imputed interest		(68,841)		(35,844)		(104,685)
Total		471,292		188,809		660,101
Less: Current portion		(204,138)		(50,860)		(254,998)
Long-term portion of lease obligations	$	267,154	$	137,949	$	405,103

7.Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Our leases have remaining lease terms from one to twelve years, some of which include renewal options, and some of which include options to terminate the leases within one year.

The components of lease expense were as follows:


	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	297,181

Short-term lease cost (1)		37,686

Finance lease cost:
Amortization of right-of-use assets		29,134
Interest on lease liabilities		9,826
Total finance lease cost		38,960
Total lease costs	$	373,827

(1)

Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows:


	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	301,524
Operating cash flows from finance leases	$	9,826
Financing cash flows from finance leases	$	31,841

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	81,198
Finance leases	$	175,311

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	730,180

Supplemental balance sheet information related to leases was as follows:


	As of
	December 31, 2019
	(In thousands)
Operating Leases:
Operating lease right-of-use assets	$	553,576

Other current liabilities	$	202,972
Operating lease liabilities		350,155
Total operating lease liabilities	$	553,127

Finance Leases:
Property and equipment, gross	$	399,764
Accumulated depreciation		(201,873)
Property and equipment, net	$	197,891

Other current liabilities	$	48,678
Other long-term liabilities		163,939
Total finance lease liabilities	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.4 years
Finance leases		4.2 years

Weighted Average Discount Rate:
Operating leases		9.1%
Finance leases		9.5%

Maturities of lease liabilities as of December 31, 2019 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094

Long-Term Debt and Finance Lease Obligations

12 Months Ended

Dec. 31, 2019

Long-Term Debt and Capital Lease Obligations

8.Long-Term Debt and Finance Lease Obligations

Fair Value of our Long-Term Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of December 31, 2019 and 2018:


	As of December 31,
	2019				2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
7 7/8% Senior Notes due 2019 (1)		—		—		1,317,372		1,343,298
5 1/8% Senior Notes due 2020 (2)		1,100,000		1,110,208		1,100,000		1,089,957
6 3/4% Senior Notes due 2021		2,000,000		2,109,420		2,000,000		1,974,940
5 7/8% Senior Notes due 2022		2,000,000		2,129,580		2,000,000		1,833,140
5 % Senior Notes due 2023		1,500,000		1,543,770		1,500,000		1,247,445
5 7/8% Senior Notes due 2024		2,000,000		2,049,080		2,000,000		1,611,960
7 3/4% Senior Notes due 2026		2,000,000		2,128,900		2,000,000		1,653,720
Other notes payable		25,996		25,996		10,346		10,346
Subtotal		10,625,996	$	11,096,954		11,927,718	$	10,764,806
Unamortized deferred financing costs and debt discounts, net		(16,250)				(23,215)
Finance lease obligations (3)		212,617				66,984
Total long-term debt and finance lease obligations (including current portion)	$	10,822,363			$	11,971,487

(1)	On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019.

(2)

Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. We will either fund this obligation from cash and marketable investment securities balances at that time and/or advances from our parent, DISH Network or, depending on market conditions, we may refinance this obligation, in whole or in part.

(3)	Disclosure regarding fair value of finance leases is not required.

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

Our Senior Notes are:

●

general unsecured senior obligations of DISH DBS;

●

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

●

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

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

●

incur additional debt;

●

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

●

make certain investments;

●

create liens or enter into sale and leaseback transactions;

●

enter into transactions with affiliates;

●

merge or consolidate with another company; and

●

transfer or sell assets.

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

5 1/8% Senior Notes due 2020

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

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

6 3/4% Senior Notes due 2021

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

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

5 7/8% Senior Notes due 2022

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

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

5% Senior Notes due 2023

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

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

5 7/8% Senior Notes due 2024

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

The 5 7/8% Senior Notes due 2024 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

7 3/4% Senior Notes due 2026

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

The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest.

Interest on Long-Term Debt


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

(1)

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

Other Long-Term Debt and Finance Lease Obligations

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


	As of December 31,
	2019		2018

	(In thousands)
Satellites and other finance lease obligations	$	212,617	$	66,984
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0%		25,996		10,346
Total		238,613		77,330
Less: current portion		(51,108)		(21,155)
Other long-term debt and finance lease obligations, net of current portion	$	187,505	$	56,175

Finance Lease Obligations

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

Nimiq 5. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the satellite service agreement for Nimiq 5 was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network. Nimiq 5 was launched in September 2009 and commenced commercial operation at the 72.7 degree west longitude orbital location during October 2009. This satellite is accounted for as a finance lease and is being depreciated over the lease term which includes options to extend the lease that we are reasonably certain to exercise. We lease 100% of the capacity on Nimiq 5. See Note 17 for further discussion.

Ciel II. Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation in February 2009. This satellite was previously accounted for as a finance lease and depreciated over the term of the satellite service agreement, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. We lease 100% of the capacity on Ciel II. The initial 10-year term expired in January 2019 and as a result of an amendment, we renewed this lease through January 2021.

The summary of future maturities of our outstanding long-term debt as of December 31, 2019 is included in the commitments table in Note 12.

Income Taxes and Accounting for Uncertainty in Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes and Accounting for Uncertainty in Income Taxes

Income Taxes and Accounting for Uncertainty in Income Taxes

9.Income Taxes and Accounting for Uncertainty in Income Taxes

Income Taxes

DISH DBS and its domestic subsidiaries join with DISH Network in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of DISH Network. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings. Amounts are receivable from DISH Network on a basis similar to when they would be receivable from the IRS or other state taxing authorities. The amounts paid to DISH Network during the years ended December 31, 2019, 2018 and 2017 were $245 million, $302 million and $408 million, respectively.

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

well as the timing of future events, including the probability of expected future taxable income and available tax planning opportunities.

As of December 31, 2019, we had no net operating loss carryforwards (“NOLs”) for federal and state income tax purposes. In addition, there are $10 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance. Portions of the credit carryforwards will expire in 2020.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) was enacted making significant changes to the Internal Revenue Code. Such changes include, but are not limited to, a reduction in the corporate tax rate and certain limitations on corporate deductions (e.g., a limitation on the interest expense deduction available to companies). The Tax Reform Act, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 from 35% to 21%. Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million.

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


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Current (benefit) provision:
Federal	$	208,821	$	273,632	$	356,759
State		48,417		64,534		54,133
Foreign		6,203		4,616		3,736
Total current (benefit) provision		263,441		342,782		414,628

Deferred (benefit) provision:
Federal		11,243		(25,934)		(308,028)
State		(1,987)		(123)		11,954
Increase (decrease) in valuation allowance		2,054		1,580		(938)
Total deferred (benefit) provision		11,310		(24,477)		(297,012)
Total (benefit) provision	$	274,751	$	318,305	$	117,616

Our $1.102 billion of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included income of $13 million related to our foreign operations.

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


	For the Years Ended December 31,
	2019	2018	2017

	% of pre-tax income/(loss)
Statutory rate	21.0	21.0	35.0
State income taxes, net of federal benefit	3.6	4.4	4.2
Tax Reform Act (1)	—	—	(34.5)
Nondeductible/Nontaxable items (2)	—	—	11.5
Other, net	0.3	(0.8)	(2.2)
Total (benefit) provision for income taxes	24.9	24.6	14.0

(1)

On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 from 35% to 21%. Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million.

(2)

During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss). Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. 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. See Note 12 for further information.

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


	As of December 31,
	2019		2018

	(In thousands)
Deferred tax assets:
NOL, interest, credit and other carryforwards	$	12,323	$	10,915
Accrued and prepaid expenses		96,974		—
Stock-based compensation		19,719		21,198
Deferred revenue		17,238		18,361
Total deferred tax assets		146,254		50,474
Valuation allowance		(9,521)		(7,467)
Deferred tax asset after valuation allowance		136,733		43,007

Deferred tax liabilities:
Depreciation		(458,811)		(345,358)
Accrued and prepaid expenses		—		(15,537)
FCC authorizations and other intangible amortization		(174,399)		(131,452)
Bases difference in partnerships and other investments		(5,380)		(12,112)
Other liabilities		—		—
Total deferred tax liabilities		(638,590)		(504,459)
Net deferred tax asset (liability)	$	(501,857)	$	(461,452)

Accounting for Uncertainty in Income Taxes

In addition to filing federal income tax returns, we and one or more of our subsidiaries file income tax returns in all states that impose an income tax and a small number of foreign jurisdictions where we have immaterial operations. We are subject to United States federal, state and local income tax examinations by tax authorities for the years beginning in 2008 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for fiscal years 2008 through 2016.

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


	For the Years Ended December 31,
Unrecognized tax benefit	2019		2018		2017

	(In thousands)
Balance as of beginning of period	$	194,136	$	201,162	$	201,693
Additions based on tax positions related to the current year		3,232		10,550		684
Additions based on tax positions related to prior years		28,137		1,154		4,593
Reductions based on tax positions related to prior years		(13,028)		(4,479)		(1,061)
Reductions based on tax positions related to settlements with taxing authorities		(2,362)		(8,328)		(1,634)
Reductions based on tax positions related to the lapse of the statute of limitations		(1,963)		(5,923)		(3,113)
Balance as of end of period	$	208,152	$	194,136	$	201,162

We have $179 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any material portion of this amount to be paid or settled within the next twelve months.

Accrued interest and penalties on uncertain tax positions are recorded as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the years ended December 31, 2019, 2018 and 2017, we recorded $7 million, $2 million and $4 million in net interest and penalty expense to earnings, respectively. Accrued interest and penalties were $33 million and $26 million at December 31, 2019 and 2018, respectively. The above table excludes these amounts.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans

Employee Benefit Plans

10.Employee Benefit Plans

Employee Stock Purchase Plan

Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which DISH Network is authorized to issue up to 3.8 million shares of Class A common stock. At December 31, 2019, DISH Network had 0.2 million shares of Class A common stock which remain available for issuance under the ESPP. Substantially all full-time employees who have been employed by DISH Network for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase DISH Network’s capital stock under all of DISH Network’s stock purchase plans at a rate which would exceed $25,000 in fair value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of DISH Network’s Class A common stock on the last business day of each calendar quarter in which such shares of DISH Network’s Class A common stock are deemed sold to an employee under the ESPP. During the years ended December 31, 2019, 2018 and 2017, employee purchases of DISH Network’s Class A common stock through the ESPP totaled approximately 0.6 million, 0.6 million and 0.3 million shares, respectively.

401(k) Employee Savings Plan

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

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


	For the Years Ended December 31,
Expense Recognized Related to the 401(k) Plan	2019		2018		2017

	(In thousands)
Matching contributions, net of forfeitures	$	11,181	$	10,300	$	7,070
Discretionary stock contributions, net of forfeitures	$	28,774	$	27,048	$	27,969

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

11.Stock-Based Compensation

Stock Incentive Plans

DISH Network maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the DISH Network stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. As of December 31, 2019, there were outstanding under these plans stock options to acquire 12.8 million shares of DISH Network’s Class A common stock and 1.5 million restricted stock units and awards associated with our employees. Stock options granted on or prior to December 31, 2019 were granted with exercise prices equal to or greater than the market value of DISH Network Class A common stock at the date of grant and with a maximum term of approximately ten years. While historically DISH Network has issued stock awards subject to vesting, typically at the rate of 20% per year, some stock awards have been granted with immediate

vesting and other stock awards vest only upon the achievement of certain DISH Network-specific subscriber, operational and/or financial goals. As of December 31, 2019, DISH Network had 80.3 million shares of its Class A common stock available for future grant under its stock incentive plans.

Exercise prices for DISH Network stock options outstanding and exercisable associated with our employees as of December 31, 2019 were as follows:


					Options Outstanding				Options Exercisable
					Number Outstanding as of December 31, 2019	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable as of December 31, 2019	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price
$	10.01	-	$	20.00	616,160	0.50	$	15.39	16,160	0.50	$	15.62
$	20.01	-	$	30.00	826,983	3.37	$	26.74	124,233	3.25	$	24.02
$	30.01	-	$	40.00	6,671,563	7.94	$	35.67	1,057,044	7.50	$	35.52
$	40.01	-	$	50.00	1,468,628	7.59	$	47.52	384,800	7.10	$	47.24
$	50.01	-	$	60.00	2,154,378	6.47	$	57.50	430,952	5.69	$	59.90
$	60.01	-	$	70.00	1,040,100	6.29	$	64.22	304,300	5.50	$	65.23
$	70.01	-	$	80.00	15,000	—	$	72.89	15,000	—	$	72.89
$	—	-	$	80.00	12,792,812	6.85	$	41.52	2,332,489	6.51	$	44.77

Stock Award Activity

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


	For the Years Ended December 31,
	2019			2018			2017
	Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price
Total options outstanding, beginning of period	13,365,489	$	41.78	8,847,734	$	43.90	7,913,733	$	36.22
Granted	1,396,750	$	33.52	7,026,512	$	38.44	3,468,626	$	59.66
Exercised	(713,411)	$	27.46	(267,905)	$	16.43	(505,125)	$	28.73
Forfeited and cancelled (1)	(1,256,016)	$	43.40	(2,240,852)	$	39.73	(2,029,500)	$	44.64
Total options outstanding, end of period	12,792,812	$	41.52	13,365,489	$	41.78	8,847,734	$	43.90
Performance-based options outstanding, end of period (2)	7,608,446	$	39.78	8,671,886	$	39.95	5,490,626	$	42.81
Exercisable at end of period	2,332,489	$	44.93	1,705,103	$	40.87	1,772,608	$	35.13

(1)	Certain of these stock options include options that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS.

(2)	These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the, 2013 LTIP, 2017 LTIP, 2019 LTIP and Other Employee Performance Awards below.

We realized tax benefits from stock awards exercised as follows:


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Tax benefit from stock awards exercised	$	1,239	$	1,664	$	9,347

Based on the closing market price of DISH Network Class A common stock on December 31, 2019, the aggregate intrinsic value of stock options associated with our employees was as follows:


	As of December 31, 2019
	Options		Options
	Outstanding		Exercisable

	(In thousands)
Aggregate intrinsic value	$	21,829	$	2,136

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


	For the Years Ended December 31,
	2019			2018			2017
	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value
Total restricted stock units/awards outstanding, beginning of period	1,718,945	$	52.16	2,484,720	$	51.16	1,336,000	$	32.11
Granted	—	$	—	—	$	—	1,871,375	$	63.87
Vested	(9,565)	$	63.49	(10,475)	$	63.49	(14,845)	$	62.58
Forfeited and cancelled (1)	(245,730)	$	59.86	(755,300)	$	48.51	(707,810)	$	48.59
Total restricted stock units/awards outstanding, end of period	1,463,650	$	50.82	1,718,945	$	52.16	2,484,720	$	51.16
Restricted Performance Units/Awards outstanding, end of period (2)	1,446,300	$	50.66	1,689,350	$	51.97	2,435,500	$	50.91

(1)	Certain of these restricted stock units/awards include restricted stock units/awards that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS.

(2)	These stock units/awards are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2013 LTIP and Other Employee Performance Awards below.

Long-Term Performance-Based Plans

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

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

During the years ended December 31, 2015, 2014, 2013, DISH Network determined that 30%, 10% and 20%, respectively, of the 2013 LTIP performance conditions were probable of achievement. During the years ended December 31, 2018, 2017 and 2016, no additional 2013 LTIP performance conditions were deemed probable of achievement. During 2018, management determined the 2013 LTIP performance conditions were neither probable nor improbable of achievement. As a result, we are no longer recording non-cash, stock-based compensation expense for the 2013 LTIP. We recorded non-cash, stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2018, approximately 20% of the 2013 LTIP awards had vested.

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

Although no awards vest until DISH Network attains the performance conditions described above, compensation related to the 2017 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, we will begin recognizing the associated non-

cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition.

During both the years ended December 31, 2018 and 2017, DISH Network determined that 75% of the 2017 LTIP performance conditions were probable of achievement. During 2019, management determined the 2017 LTIP performance conditions were not probable of achievement and as a result, DISH Network reversed $13 million of non-cash, stock-based compensation expense. As a result, we are no longer recording non-cash, stock-based compensation expense for the 2017 LTIP. We recorded non-cash, stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”

2019 LTIP. On August 17, 2018, DISH Network adopted a long-term, performance-based stock incentive plan (the “2019 LTIP”). The 2019 LTIP provides stock options, which vest based on certain DISH Network-specific subscriber, operational and/or financial performance conditions. Vesting of the stock awards is contingent on achieving these conditions by December 31, 2023.

Although no awards vest until the DISH Network attains the performance conditions described above, compensation related to the 2019 LTIP will be recorded based on management’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, DISH Network will begin recognizing the associated non-cash, stock-based compensation expense on its Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition.

During the year ended December 31, 2019 and 2018, DISH Network determined that 90% and 82%, respectively, of the 2019 LTIP performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the year ended December 31, 2019 and 2018, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2019, approximately 18% of the 2019 LTIP awards had vested.

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

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

Although no awards vest until the performance conditions are attained, DISH Network determined that certain performance conditions described above were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”

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


	For the Years Ended December 31,
Non-Cash, Stock-Based Compensation Expense Recognized (1)	2019		2018		2017

	(In thousands)
2019 LTIP	$	14,946	$	3,475	$	—
2017 LTIP		(12,902)		3,293		10,640
2013 LTIP		(1,021)		(2,471)		(321)
Other employee performance awards		(592)		17,888		7,549
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	431	$	22,185	$	17,868

(1)

“Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures.


Estimated Remaining Non-Cash, Stock-Based Compensation Expense	2019 LTIP		2017 LTIP		2013 LTIP		Other Employee Performance Awards

	(In thousands)
Expense estimated to be recognized during 2020	$	10,541	$	—	$	—	$	—
Estimated contingent expense subsequent to 2020		12,682		29,341		29,766		61,322
Total estimated remaining expense over the term of the plan	$	23,223	$	29,341	$	29,766	$	61,322

Given the competitive nature of DISH Network’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain DISH Network-specific subscriber, operational and/or financial performance conditions were not probable as of December 31, 2019, that assessment could change in the future.

Of the 12.8 million stock options and 1.5 million restricted stock units and awards outstanding under the DISH Network stock incentive plans associated with our employees as of December 31, 2019, the following awards were outstanding pursuant to the performance-based stock incentive plans:


	As of December 31, 2019
Performance-Based Stock Options	Number of Awards	Weighted- Average Grant Price
2019 LTIP	3,510,375	$	35.16
2017 LTIP	2,083,071	$	57.12
2013 LTIP	875,000	$	41.08
Other employee performance awards	1,140,000	$	21.31
Total	7,608,446	$	39.78

Restricted Performance Units/Awards
2013 LTIP	437,500
Other employee performance awards	1,008,800
Total	1,446,300

Stock-Based Compensation

Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2019, 2018 and 2017 and was allocated to the same expense categories as the base compensation for such employees:


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Subscriber-related	$	509	$	1,150	$	1,562
Satellite and transmission		329		262		1,761
General and administrative		13,015		34,109		26,618
Total non-cash, stock based compensation	$	13,853	$	35,521	$	29,941

As of December 31, 2019, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $26 million and will be recognized over a weighted-average period of approximately 2.8 years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest.

Valuation

The fair value of each stock option granted for the years ended December 31, 2019, 2018 and 2017 was estimated at the date of the grant using a Black-Scholes option valuation model with the following assumptions:


	For the Years Ended December 31,
Stock Options	2019							2018							2017
Risk-free interest rate		1.51	%	-		2.53	%		2.09	%	-		2.98	%		1.34	%	-		2.29	%
Volatility factor		28.86	%	-		32.08	%		23.33	%	-		30.22	%		22.25	%	-		26.15	%
Expected term of options in years		4.3		-		5.5			2.8		-		5.5			3.8		-		5.5
Fair value of options granted	$	7.58		-	$	12.45		$	7.10		-	$	12.53		$	11.95		-	$	16.69

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

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

Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

9.	Commitments and Contingencies

Commitments

DISH Network Spectrum

Since 2008, DISH Network has 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 has 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, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband Internet of Things (“IoT”) network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint-TMUS merger, during the first quarter 2020, DISH Network determined that the revision of certain of its build-out deadlines was probable and, therefore, DISH Network no longer intends to complete its narrowband IoT deployment. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly.

In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it 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. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers.

Asset Purchase Agreement. On July 26, 2019, DISH Network entered into an Asset Purchase Agreement (the “APA”) with T-Mobile US, Inc. (“TMUS”) and Sprint Corporation (“Sprint” and together with TMUS, the “Sellers” and given the consummation of the Sprint-TMUS merger, sometimes referred to as “NTM”) to acquire from NTM certain assets and liabilities associated with Sprint’s Boost Mobile and Sprint-branded prepaid mobile services businesses (the “Prepaid Business”) for an aggregate purchase price of $1.4 billion as adjusted for specific categories of net working capital on the closing date (the “Prepaid Business Sale”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and NTM completed the Prepaid Business Sale.

At the closing of the Prepaid Business Sale, DISH Network and NTM entered into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 10 “Commitments and Contingencies – Commitments – Sprint Asset Acquisition” of DISH Network’s Quarterly Report on Form 10-Q for the three months ended June 30, 2020 for further information on the Transaction Agreements.

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

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

SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. 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 DISH Network, 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 re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 10 “Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.

We have made and may make cash distributions to finance, in whole or in part, loans that DISH Network has made or may make in the future to the Northstar Entities and the SNR Entities related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities.

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

See Note 10 “Commitments and Contingencies – Commitments” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information.

Contingencies

Separation Agreement

On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar and certain of their 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 which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. On September 10, 2019, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) that was previously entered into on May 19, 2019, pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. The Share Exchange Agreement and the Master Transaction Agreement contain additional indemnification provisions between DISH Network 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.

Broadband iTV

On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers.

On July 10, 2020, July 20, 2020, July 24, 2020 and July 31, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 026 patent, the 791 patent, the 269 patent and the 388 patent.

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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein.

City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust

On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. See Note 13 “Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees.

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

ClearPlay, Inc.

On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful 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. The trial has been reset for March 22, 2021. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to $543 million in damages.

Contemporary Display LLC

On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. 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. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office.

Customedia Technologies, L.L.C.

On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia 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 appealed its losses before the United States Patent and Trademark Office. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, but the Court of Appeals denied rehearing on March 5, 2020. On July 31, 2020, Customedia filed a petition with the United States Supreme Court asking it to hear a further appeal. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019, and affirmed those patents’ invalidity on March 6, 2020. On May 5, 2020, Customedia filed petitions in the Federal Circuit for rehearing and rehearing en banc, seeking to reverse our appellate victories on the 090 and 494 patents, but those petitions were denied on June 9, 2020.

Innovative Foundry Technologies LLC

On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; United States Patent No. 6,933,620 (the “620 patent”), entitled “Semiconductor Component and Method of Manufacture”; and United States Patent No. 7,009,226 (the “226 patent”), entitled “In-Situ Nitride/Oxynitride Processing with Reduced Deposition Surface Pattern Sensitivity.” On April 9, 2020, Semiconductor Manufacturing International Corporation filed a petition with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 226 patent, and on April 14, 2020, it filed petitions challenging the validity of the asserted claims of the 126 patent and 620 patent.

DISH Network intends 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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein.

Mobile Networking Solutions

On August 12, 2019, Mobile Networking Solutions, LLC (“Mobile Networking Solutions”) filed a complaint against our wholly-owned subsidiary Sling Media L.L.C. for infringement of two patents: United States Patent No. 7,543,177 (the “177 patent”) and United States Patent No. 7,958,388 (the “388 patent”), each entitled “Methods and Systems for a Storage System.” Mobile Networking Solutions alleges infringement in connection with Sling Media L.L.C.’s use of a Hadoop Distributed File System for storage and processing of large data files. Pursuant to a stipulation of the parties, on December 16, 2019, the Court entered an order staying the case for six months so the parties may discuss settling the case. On May 12, 2020, pursuant to the parties’ joint request, the Court ordered dismissal of the case with prejudice. This matter is now concluded.

Multimedia Content Management LLC

On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes 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. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly-owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, 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 November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration, which the United States Patent and Trademark Office denied on March 10, 2020. On March 26, 2020, pursuant to the parties’ joint request, the Court dismissed the matter with prejudice. This matter is now concluded.

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 DISH Network; 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 Hughes Network Systems, L.L.C. (“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 Network, 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.

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 DISH 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 DISH 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 DISH Technologies L.L.C., as well as Arris Group, Inc., as defendants.

As a result, neither DISH Network nor any of its 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.

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. On January 31, 2019, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging all asserted claims of each of the asserted patents, and it held trial on the petitions on December 5, 2019. On January 17, 2020, the United States Patent and Trademark Office terminated the petitions as time-barred, but issued a final written decision invalidating the 535 patent to third parties that had timely joined in our petition. On March 16, 2020, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a notice of appeal from the terminated petitions to the United States Court of Appeals for the Federal Circuit, and filed their opening brief on May 29, 2020. On June 29, 2020, the United States Patent and Trademark Office filed a notice of intervention in the appeal, and it and Realtime filed their respective appellate opposition briefs on July 29, 2020. The Colorado Action in the district court has been stayed since February 26, 2019, pending resolution of the petitions.

Realtime Adaptive Streaming is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

Sound View Innovations, LLC

On December 30, 2019, Sound View Innovations, LLC filed one complaint against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. and a second complaint against our wholly-owned subsidiary Sling TV L.L.C. in the United States District Court for the District of Colorado. The complaint against DISH Network L.L.C. and DISH Technologies L.L.C. alleges infringement of United States Patent No 6,502,133 (the “133 patent”), entitled Real-Time Event Processing System with Analysis Engine Using Recovery Information” and both complaints allege infringement of United States Patent No. 6,708,213 (the “213 patent), entitled “Method for Streaming Multimedia Information Over Public Networks”; United States Patent No. 6,757,796 (the “796 patent”), entitled “Method and System for Caching Streaming Live Broadcasts transmitted Over a Network”; and United States Patent No. 6,725,456 (the “456 patent”), entitled “Methods and Apparatus for Ensuring Quality of Service in an Operating System.”

On May 21, 2020, June 3, 2020, June 5, 2020 and July 10, 2020, DISH Network L.L.C., DISH Technologies L.L.C. and Sling TV L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 213 patent, the 133 patent, the 456 patent and the 796 patent.

We intend to vigorously defend these cases. 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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein.

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.

The first phase of the bench trial took place January 19, 2016 through February 11, 2016, and the second phase took place October 25, 2016 through November 2, 2016.

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 March 26, 2020, the United States Court of Appeals for the Seventh Circuit issued an opinion largely affirming DISH Network L.L.C.’s liability, but vacating and remanding the damages award. On June 25, 2020, the United States Court of Appeals for the Seventh Circuit denied DISH Network L.L.C.’s petition for rehearing and/or rehearing en banc. Pursuant to the parties’ stipulation, on July 13, 2020, the Court entered a schedule for additional briefing on the remanded damages issue.

Our total accrual at June 30, 2020 and December 31, 2019 related to the FTC Action was $280 million, which was recorded in prior periods 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, which had a negative impact on our effective tax rate for the year ended December 31, 2017. 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 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. DISH Network L.L.C. appealed and on May 30, 2019, the United States Court of Appeals for the Fourth Circuit affirmed. On October 15, 2019, DISH Network L.L.C. filed a petition for writ of certiorari, requesting that the United States Supreme Court agree to hear a further appeal, but it denied the petition on December 16, 2019. On January 21, 2020, DISH Network L.L.C. filed a second notice of appeal relating to the district court’s orders on the claims administration process to identify, and disburse funds to, individual class members. On June 29, 2020, Krakauer filed a motion to dismiss the appeal for lack of jurisdiction. The district court currently is deciding how to handle the $10.76 million in disbursable judgment funds for which no corresponding class member was identified. Our total accrual related to the Krakauer Action at December 31, 2018 was $61 million, which was recorded in prior periods and was included in “Other accrued expenses” on our Condensed Consolidated Balance Sheets. During the third quarter 2019, the judgment was paid to the court.

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 DISH Network, 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 DISH Network’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; and Gary S. Howard (collectively, the “Director Defendants”). In its complaint, Plumbers Local 519 contends that, by virtue of their alleged failure to appropriately ensure DISH Network’s compliance with telemarketing laws, the Director Defendants exposed DISH Network to liability for telemarketing violations, including those in the Krakauer Action. It also contends that the Director Defendants caused DISH Network to pay improper compensation and benefits to themselves and others who allegedly breached their fiduciary duties to DISH Network. 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 DISH Network, 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. DISH Network’s 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 was filed on November 27, 2018, and recommended that the Company not pursue the claims asserted by the derivative plaintiffs. On December 20, 2018, the Special Litigation Committee filed a motion seeking deferral to its determination that the claims should be dismissed. Following a two-day evidentiary hearing on July 6-7, 2020, on July 17, 2020, the District Court entered an order granting the Special Litigation Committee’s motion.

DISH Network 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 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 final written decisions adverse to it. On May 9, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the 430 patent and the 412 patent. On July 10, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 404 patent. On July 15, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 268 patent. On November 22, 2019, the United States Court of Appeals for the Federal Circuit reversed the invalidity finding on the 243 patent and the 158 patent, and then, on March 29, 2020, denied a petition for panel rehearing as to those findings.

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. 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. In its October 1, 2018 damage expert’s report, Turner claimed damages of $159 million, plus $24 million in interest. On September 27, 2019, the Court granted, in part, Turner’s motion for summary judgment, holding, in part, that Turner was entitled to recover approximately $20 million in license fee payments that DISH Network L.L.C. had withheld after it discovered previous over-payments. On February 12, 2020, the parties filed a stipulation to dismiss certain of their respective claims. Trial on the remaining claims in this matter has been re-set for March 1, 2021, where DISH Network L.L.C.’s incremental exposure (per Turner’s damages expert’s amended report) is approximately $206 million.

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.

Uniloc

On January 31, 2019, Uniloc 2017 LLC (“Uniloc”) filed a complaint against our wholly-owned subsidiary Sling TV L.L.C. in the United States District Court for the District of Colorado. The Complaint alleges infringement of United States Patent No. 6,519,005 (the “005 patent”), which is entitled “Method of Concurrent Multiple-Mode Motion Estimation for Digital Video”; United States Patent No. 6,895,118 (the “118 patent”), which is entitled “Method of Coding Digital Image Based on Error Concealment”; United States Patent No. 9,721,273 (the “273 patent”), which is entitled “System and Method for Aggregating and Providing Audio and Visual Presentations Via a Computer Network”); and United States Patent No. 8,407,609 (the “609 patent”), which is entitled “System and Method for Providing and Tracking the Provision of Audio and Visual Presentations Via a Computer Network.” Uniloc is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

On June 25, 2019, Sling TV L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of all of the asserted claims of the 005 patent. On July 19, 2019 and July 22, 2019, respectively, Sling TV L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all asserted claims of the 273 patent and the 609 patent. On August 12, 2019, Sling TV L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of all of the asserted claims of the 118 patent. On October 18, 2019, pursuant to a stipulation of the parties, the Court entered a stay of the trial proceedings. On January 9, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 005 patent. On January 15, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 273 patent. On February 4, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 609 patent. On February 25, 2020, the United States Patent and Trademark Office declined to institute proceedings on the petition challenging the 118 patent.

Vermont National Telephone Company

Management, LLC; and certain other parties. The complaint was unsealed after the United States Department of Justice notified the Court that it had declined to intervene in the action. The complaint is a civil action that was filed under seal on May 13, 2015 by Vermont National, which participated in the AWS-3 Auction through its wholly-owned subsidiary, VTel Wireless. The complaint alleges violations of the federal civil False Claims Act (the “FCA”) based on, among other things, allegations that Northstar Wireless and SNR Wireless falsely claimed bidding credits of 25% in the AWS-3 Auction when they were allegedly under the de facto control of DISH Network and, therefore, were not entitled to the bidding credits as designated entities under applicable FCC rules.

Vermont National seeks to recover on behalf of the United States government approximately $10 billion, which reflects the $3.3 billion in bidding credits that Northstar Wireless and SNR Wireless claimed in the AWS-3 Auction, trebled under the FCA. Vermont National also seeks civil penalties of not less than $5,500 and not more than $11,000 for each violation of the FCA.

On March 2, 2017, the United States District Court for the District of Columbia entered a stay of the litigation until such time as the United States Court of Appeals for the District of Columbia (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 Note 10 “Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information. Thereafter, the Court maintained the stay until October 26, 2018. On February 11, 2019, the Court granted Vermont National’s unopposed motion for leave to file an amended complaint. On March 28, 2019, the defendants filed a motion to dismiss Vermont National’s amended complaint, which has been fully briefed since June 3, 2019.

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

Waste Disposal Inquiry

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

Other

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

12.Commitments and Contingencies

Commitments

As of December 31, 2019, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows:


	Payments due by period
	Total		2020		2021		2022			2023		2024		Thereafter

Long-term debt obligations	$	10,625,996	$	1,102,430	$	2,002,554	$	2,002,683		$	1,502,820	$	2,002,964	$	2,012,545
Interest expense on long-term debt		2,524,898	$	629,410	$	533,599	$	465,969		$	310,832	$	273,188	$	311,900
Finance lease obligations (1)		212,617		48,678		53,150		41,666			38,018		31,105		—
Interest expense on finance lease obligations (1)		45,183		17,607		13,129		8,561			4,844		1,042		—
Satellite-related and other obligations (2)		219,019		71,931		65,663		41,291			23,321		16,813		—
Operating lease obligations (1)		641,792		239,660		199,062		127,300			24,571		9,191		42,008
Purchase obligations		1,241,340		1,200,025		29,284		12,031			—		—		—
Total	$	15,510,845	$	3,309,741	$	2,896,441	$	2,699,501	$		1,904,406	$	2,334,303	$	2,366,453

(1)

See Note 7 for further information on leases and the adoption of ASC 842.

(2)

Represents obligations for satellite related executory costs, telemetry, tracking and control (“TT&C”) services and short-term leases.

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

The table above does not include $208 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 9, and are included on our Consolidated Balance Sheets as of December 31, 2019. We do not expect any portion of this amount to be paid or settled within the next twelve months.

DISH Network Spectrum

DISH Network has 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, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband IoT network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. DISH Network has 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 for the First Phase. Among other things, initial RF design in connection with the First Phase was complete, DISH Network had secured certain tower sites, and they were in the process of identifying and securing additional tower sites. The core network had been installed and commissioned. DISH Network installed the first base stations on sites in 2018 and were in the process of deploying the remaining base stations. During October 2019, DISH Network paused work on its narrowband IoT deployment due to its March 2020 build-out deadlines being tolled as discussed above. In addition, DISH Network has issued RFI/Ps to various vendors in the wireless industry as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest.

DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it 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. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers.

Pursuant to the APA, after the consummation of the Sprint-TMUS merger and at the closing of the transaction, NTM will sell to DISH Network and DISH Network will acquire from NTM certain assets and liabilities associated with Sprint’s Boost Mobile, Virgin Mobile and Sprint-branded prepaid mobile services businesses (the “Prepaid Business”) for an aggregate purchase price of $1.4 billion as adjusted for specific categories of net working capital on the Closing Date (the “Prepaid Business Sale”).

At the closing of the Prepaid Business Sale, DISH Network and NTM will enter into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 15 “Commitments and Contingencies – Commitments – Sprint Asset Acquisition” of DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Transaction Agreements.

Beginning on November 5, 2019, and while the approval of the Sprint-TMUS merger is pending, the March 7, 2020 build-out deadline for both the AWS-4 and Lower 700 MHz E Block spectrum bands is tolled; however, if the Sprint-TMUS merger is not consummated, the original deadlines would be reinstated with extensions equal to the length of time the deadline was tolled. During October 2019, DISH Network paused work on its narrowband Internet of Things (“IoT”) deployment due to its March 2020 build-out deadlines being tolled. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G Network Deployment.

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

During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. 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 DISH Network, 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 re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 15 “Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019.

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

See Note 15 “Commitments and Contingencies – Wireless” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information.

Purchase Obligations

Our 2020 purchase obligations primarily consist of binding purchase orders for certain fixed contractual commitments to purchase programming content, receiver systems and related equipment, broadband equipment, digital broadcast operations,

transmission costs, streaming delivery technology and infrastructure, engineering services, and other products and services related to the operation of our Pay-TV services. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements.

Programming Contracts

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

Rent Expense

Total rent expense for operating leases was $357 million, $449 million and $473 million in 2019, 2018 and 2017, respectively.

Patents and Intellectual Property

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

Contingencies

Separation Agreement

Litigation

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.

Blue Spike, LLC

On July 6, 2018, Blue Spike, LLC (“Blue Spike”) filed a complaint against DISH Network 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. On November 11, 2018, Blue Spike dismissed its complaint.

On January 28, 2019, Blue Spike, along with Blue Spike International, Ltd. and Wistaria Trading Ltd., filed a new action against DISH Network 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 District of Delaware. The complaint alleges infringement of the 246 patent, the 295 patent, the 408 patent, the 116 patent, the 011 patent, the 602 patent and the 842 patent, all of which were asserted in the prior action. On March 29, 2019, the plaintiffs filed a First Amended Complaint, which dropped their claims arising from the 116 patent and the 011 patent.

On July 5 and July 8, 2019, respectively, DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 295 and the 408 patents. On July 19, 2019, DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 246 patent. On August 1, 2019, DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent and the 602 patent.

On January 23, 2020, pursuant to the parties’ joint motion, all proceedings on the petitions before the United States Patent and Trademark Office were terminated. On January 28, 2020, pursuant to a stipulation of the parties, the litigation in the United States District Court for the District of Delaware was dismissed with prejudice.

Broadband iTV

City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust

On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees.

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

ClearPlay, Inc.

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. The trial has been set for October 26, 2020. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to $543 million in damages.

Contemporary Display LLC

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. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office.

Customedia Technologies, L.L.C.

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. cross-appealed to the extent that its petitions were not successful. On February 6, 2019, the Court of Appeals granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 090 patent and, on February 26, 2019, granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 437 patent. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, and DISH Network L.L.C. filed a response to that petition on February 10, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019.

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.

Innovative Foundry Technologies

Mobile Networking Solutions

On August 12, 2019, Mobile Networking Solutions, LLC filed a complaint against our wholly owned subsidiary Sling Media L.L.C. for infringement of two patents: U.S. Patent No. 7,543,177 (the “177 patent”) and U.S. Patent No. 7,958,388 (the “388 patent”), each entitled “Methods and Systems for a Storage System.” Mobile Networking Solutions alleges infringement in connection with Sling Media L.L.C.’s use of a Hadoop Distributed File System for storage and processing of large data files. Pursuant to a stipulation of the parties, on December 16, 2019, the Court entered an order staying the case for six months so the parties may discuss settling the case.

Multimedia Content Management LLC

On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes 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. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, 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 November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration. On January 6, 2020, pursuant to stipulation, the Court entered a stay of the litigation and vacated all upcoming deadlines.

Realtime Data LLC and Realtime Adaptive Streaming LLC

On July 19, 2017, the Court severed Realtime’s claims against DISH Network, 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 DISH Network, 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 DISH 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.

Realtime Adaptive Streaming is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

Sound View Innovations, LLC

On December 30, 2019, Sound View Innovations, LLC filed one complaint against our wholly owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. and a second complaint against our wholly owned subsidiary Sling TV L.L.C. in the United States District Court for the District of Colorado. The complaint against DISH Network L.L.C. and DISH Technologies L.L.C. alleges infringement of United States Patent No 6,502,133 (the “133 patent”), entitled Real-Time Event Processing System with Analysis Engine Using Recovery Information” and both complaints allege infringement of United States Patent No. 6,708,213 (the “213 patent), entitled “Method for Streaming Multimedia Information Over Public Networks”; United States Patent No. 6,757,796 (the “796 patent”), entitled “Method and System for Caching Streaming Live Broadcasts transmitted Over a Network”; and United States Patent No. 6,725,456 (the “456 patent”), entitled “Methods and Apparatus for Ensuring Quality of Service in an Operating System.”

Telemarketing Litigation

The first phase of the bench trial took place January 19, 2016 through February 11, 2016 and the second phase took place October 25, 2016 through November 2, 2016.

During the second quarter 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our 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 December 31, 2019 and 2018 related to the FTC Action was $280 million and is included in “Other accrued expenses” on our Consolidated Balance Sheets. Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. 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 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. DISH Network L.L.C. appealed and on May 30, 2019, the United States Court of Appeals for the Fourth Circuit affirmed. On October 15, 2019, DISH Network L.L.C. filed a petition for writ of certiorari, requesting that the United States Supreme Court agree to hear a further appeal, but it denied the petition on December 16, 2019. On January 21, 2020, DISH Network L.L.C. filed a second notice of appeal relating to the district court’s orders on the claims administration process to identify, and disburse funds to, individual class members. During the second quarter 2017, we recorded $41 million of “Litigation expense” related to the Krakauer Action on our 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 December 31, 2018 was $61 million and was included in “Other accrued expenses” on our Consolidated Balance Sheets. During the third quarter 2019, the judgment was paid to the court.

We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits.

Telemarketing Shareholder Derivative Litigation

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. DISH Network’s 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 was filed on November 27, 2018, and recommended that the Company not pursue the claims asserted by the derivative plaintiffs. On December 20, 2018, the Special Litigation Committee filed a motion for summary judgment seeking deferral to its determination that the claims should be dismissed, which the Court has set for an evidentiary hearing on July 6-7, 2020.

DISH Network 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, DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the District of Delaware. The Complaint alleges infringement of United States Patent No. 6,961,369 (the “369 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 8,718,158 (the “158 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 9,014,243 (the “243 patent”), which is entitled “System and Method for Scrambling Using a Bit Scrambler and a Phase Scrambler”; United States Patent No. 7,835,430 (the “430 patent”), which is entitled “Multicarrier Modulation Messaging for Frequency Domain Received Idle Channel Noise Information”; United States Patent No. 8,238,412 (the “412 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; United States Patent No. 8,432,956 (the “956 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; and United States Patent No. 8,611,404 (the “404 patent”), which is entitled “Multicarrier Transmission System with Low Power Sleep Mode and Rapid-On Capability.” On September 9, 2015, TQ Delta filed a first amended complaint that added allegations of infringement of United States Patent No. 9,094,268 (the “268 patent”), which is entitled “Multicarrier Transmission System With Low Power Sleep Mode and Rapid-On Capability.” On May 16, 2016, TQ Delta filed a second amended complaint that added EchoStar Corporation and its 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 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 final written decisions adverse to it. On May 9, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the 430 patent and the 412 patent. On July 10, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 404 patent. On July 15, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 268 patent. On November 22, 2019, the United States Court of Appeals for the Federal Circuit reversed the invalidity finding on the 243 patent and the 158 patent, which is the subject of a petition for panel rehearing, which was filed on January 22, 2020.

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. 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. In its October 1, 2018 damage expert’s report, Turner claimed damages of $159 million, plus $24 million in interest. On September 27, 2019, the Court granted, in part, Turner’s motion for summary judgment, holding, in part, that Turner was entitled to recover approximately $20 million in license fee payments that DISH Network L.L.C. had withheld after it discovered previous over-payments. On February 12, 2020, the parties filed a stipulation to dismiss certain of their respective claims. Trial on the remaining claims in this matter has been set for April 20, 2020, where DISH Network L.L.C.’s incremental exposure (per Turner’s damages expert) is approximately $118 million in damages, plus approximately $30 million in interest.

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.

Uniloc

Vermont National Telephone Company

On September 23, 2016, the United States District Court for the District of Columbia unsealed a qui tam complaint that was filed by Vermont National Telephone Company (“Vermont National”) against DISH Network; DISH Network’s wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III, and DISH Wireless Holding L.L.C.; Charles W. Ergen (our Chairman) and Cantey M. Ergen (a member of our board of directors); Northstar Wireless; Northstar Spectrum; Northstar Manager, LLC; SNR Wireless; SNR HoldCo; SNR Wireless Management, LLC; and certain other parties. The complaint was unsealed after the United States Department of Justice notified the Court that it had declined to intervene in the action. The complaint is a civil action that was filed under seal on May 13, 2015 by Vermont National, which participated in the AWS-3 Auction through its wholly-owned subsidiary, VTel Wireless. The complaint alleges violations of the federal civil False Claims Act (the “FCA”) based on, among other things, allegations that Northstar Wireless and SNR Wireless falsely claimed bidding credits of 25% in the AWS-3 Auction when they were allegedly under the de facto control of DISH Network and, therefore, were not entitled to the bidding credits as designated entities under applicable FCC rules. Vermont National seeks to recover on behalf of the United States government approximately $10 billion, which reflects the $3.3 billion in bidding credits that Northstar Wireless and SNR Wireless claimed in the AWS-3 Auction, trebled under the FCA. Vermont National also seeks civil penalties of not less than $5,500 and not more than $11,000 for each violation of the FCA. On March 2, 2017, the United States District Court for the District of Columbia entered a stay of the litigation until such time as the United States Court of Appeals for the District of Columbia (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 Note 15 “Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information.

Thereafter, the Court maintained the stay until it was lifted on October 26, 2018. On February 11, 2019, the Court granted Vermont National’s unopposed motion for leave to file an amended complaint. On March 28, 2019, the defendants filed a motion to dismiss Vermont National’s amended complaint, which has been fully briefed since June 3, 2019.

Waste Disposal Inquiry

Other

Financial Information for Subsidiary Guarantors

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Financial Information for Subsidiary Guarantors

Financial Information for Subsidiary Guarantors

10.

Financial Information for Subsidiary Guarantors

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

13.Financial Information for Subsidiary Guarantors

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

Disaggregation of Revenue

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Disaggregation of Revenue

11.

Disaggregation of Revenue

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 Six Months Ended
	June 30,				June 30,
Revenue:	2020		2019		2020		2019

	(In thousands)
United States	$	3,144,992	$	3,155,828	$	6,302,296	$	6,282,937
Canada and Mexico		3,539		10,771		14,017		21,662
Total revenue	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599

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


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Category:	2020		2019		2020		2019

	(In thousands)
Pay-TV video and related revenue	$	3,117,334	$	3,117,066	$	6,248,234	$	6,215,002
Equipment sales and other revenue		31,197		49,533		68,079		89,597
Total	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599

14.Disaggregation of Revenue

The following table summarizes revenue by geographic region:



	For the Years Ended December 31,
Revenue:	2019		2018		2017

	(In thousands)
United States	$	12,581,855	$	13,319,091	$	13,967,694
Canada and Mexico		41,038		43,048		39,817
Total revenue	$	12,622,893	$	13,362,139	$	14,007,511

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



	For the Years Ended December 31,
Category:	2019		2018		2017
				(In thousands)
Pay-TV video and related revenue	$	12,436,637	$	13,197,994	$	13,877,196
Equipment sales and other revenue		186,256		164,145		130,315
Total	$	12,622,893	$	13,362,139	$	14,007,511

Contract Balances

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Quarterly Financial Data (Unaudited)

Contract Balances

12.

Contract Balances

Our valuation and qualifying accounts as of June 30, 2020 were as follows:


Allowance for credit losses	Balance at Beginning of Period		Current Period Provision for Expected Credit Losses		Write-offs Charged Against Allowance		Balance at End of Period

	(In thousands)
For the six months ended June 30, 2020	$	19,280	$	51,808	$	(29,900)	$	41,188

Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows:


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2019	$	609,054
Recognition of unearned revenue		(2,951,822)
Deferral of revenue		2,925,648
Balance as of June 30, 2020	$	582,880

We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue.

15.Contract Balances

Our valuation and qualifying accounts as of December 31, 2019, 2018 and 2017 were as follows:


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year

	(In thousands)
For the years ended:
December 31, 2019	$	16,956	$	69,866	$	(67,542)	$	19,280
December 31, 2018	$	15,056	$	98,461	$	(96,561)	$	16,956
December 31, 2017	$	17,440	$	124,143	$	(126,527)	$	15,056

Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows:


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2018	$	624,626
Recognition of unearned revenue		(7,086,252)
Deferral of revenue		7,070,680
Balance as of December 31, 2019	$	609,054

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data (Unaudited)

16.Quarterly Financial Data (Unaudited)

Our quarterly results of operations are summarized as follows:


	For the Three Months Ended
	March 31		June 30		September 30		December 31

	(In thousands)
Year ended December 31, 2019:
Total revenue	$	3,138,000	$	3,166,599	$	3,122,282	$	3,196,012
Operating income (loss)		430,735		435,966		438,498		515,999
Net income (loss) attributable to DISH DBS		177,760		185,368		204,858		259,545

Year ended December 31, 2018:
Total revenue	$	3,383,222	$	3,393,307	$	3,334,444	$	3,251,166
Operating income (loss)		508,121		549,502		542,439		466,448
Net income (loss) attributable to DISH DBS		204,192		285,691		281,272		200,132

Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Related Party Transactions

Related Party Transactions

13.

Related Party Transactions

Master Transaction Agreement

On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Note 13 “Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement.

Related Party Transactions with DISH Network

“Satellite and transmission expenses”

During the three months ended June 30, 2020 and 2019, we incurred expenses of $56 million and $8 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred expenses of $112 million and $25 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now 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 DISH Network. On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below:

●

EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar 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. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date.

●

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 and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date.

Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired 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 on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three and six months ended June 30, 2020, we recorded $8 million and $17 million of “Depreciation and amortization expense,” respectively, and $4 million and $8 million, respectively, of “Interest expense, net of amounts capitalized” related to Nimiq 5.

QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”). During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received 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. 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 SES Transponder Agreement and 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 SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021.

EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information.

TT&C Agreement. Effective January 1, 2012, we entered into a 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. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date.

“General and administrative expenses”

During the three months ended June 30, 2020 and 2019, we incurred $2 million and zero, respectively, for general and administrative expenses for services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred $4 million and zero, respectively, for general and administrative expenses for services provided to us by DISH Network. 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. On September 10, 2019, in connection with the Master Transaction Agreement discussed above, we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below:

●

Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020.

●

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 DISH Network, and, effective March 1, 2017, DISH Network 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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date.

Other Agreements – DISH Network

Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the three months ended June 30, 2020 and 2019, the costs associated with these services was $18 million and $14 million, respectively. During the six months ended June 30, 2020 and 2019, the costs associated with these services was $39 million and $26 million, respectively.

Spin-off from EchoStar

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

Related Party Transactions with EchoStar

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. 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. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective 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. 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 June 30, 2020 and December 31, 2019, trade accounts receivable from EchoStar was $4 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets.

“Trade accounts payable”

As of June 30, 2020 and December 31, 2019, trade accounts payable to EchoStar was $14 million and $3 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 June 30, 2020 and 2019, we received $1 million for services provided to EchoStar. During the six months ended June 30, 2020 and 2019, we received $2 million and $3 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. DISH Network has entered into lease agreements pursuant to which DISH Network leases certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below:

●

El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 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 12 one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days’ written notice prior to the end of the term.

●

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. EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. This lease was terminated effective September 10, 2019.

●

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. This lease was terminated effective March 2019.

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. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. 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.

“Satellite and transmission expenses”

During the three months ended June 30, 2020 and 2019, we incurred expenses of less than $1 million and $72 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred expenses of $1 million and $143 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar was the supplier of the vast majority of our transponder

capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. 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 6 for further information. The term of each lease is set forth below:

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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. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network.

●

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.

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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 and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network.

Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020.

QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”). 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. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. During the first quarter 2013, DISH Network and EchoStar entered into an agreement pursuant to which DISH Network subleased five DBS transponders back to EchoStar.

Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and 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 SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network.

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. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us.

“General and administrative expenses”

During the three months ended June 30, 2020 and 2019, we incurred $3 million and $6 million, respectively, for general and administrative expenses for services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred $7 million and $11 million, respectively, for 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:

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Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020.

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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, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020.

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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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network.

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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, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services.

Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. The Professional Services Agreement renewed on January 1, 2020 for an additional one-year period until January 1, 2021 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. In addition, on May 19, 2019, DISH Network entered into the Master Transaction Agreement, pursuant to which, effective September 10, 2019, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other related to the Master Transaction Agreement and to remove certain services no longer necessary as a result of the Master Transaction 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, DISH Network 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 DISH Network, and DISH Network will indemnify EchoStar for such taxes. However, DISH Network is not liable for and will not indemnify EchoStar for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”) because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar takes or fails to take; or (iii) any action that EchoStar takes that is inconsistent with the information and representations furnished to the Internal Revenue Service (“IRS”) in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar is solely liable for, and will indemnify DISH Network for, any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed.

Tax Matters Agreement. In connection with the completion of the Share Exchange, DISH Network and EchoStar entered into a Tax Matters Agreement, which governs certain rights, responsibilities and obligations with respect to taxes of the Transferred Businesses pursuant to the Share Exchange. Generally, EchoStar is responsible for all tax returns and tax liabilities for the Transferred Businesses for periods prior to the Share Exchange, and DISH Network are responsible for all tax returns and tax liabilities for the Transferred Businesses from and after the Share Exchange. Both DISH Network and EchoStar have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both DISH Network and EchoStar have agreed to indemnify each other if there is a breach of any such tax representation or violation of any such tax covenant and that breach or violation results in the Share Exchange not qualifying for tax free treatment for the other party. In addition, DISH Network has agreed to indemnify EchoStar if the Transferred Businesses are acquired, either directly or indirectly (e.g., via an acquisition of DISH Network), by one or more persons and such acquisition results in the Share Exchange not qualifying for tax free treatment. The Tax Matters Agreement supplements the Tax Sharing Agreement described above, which continues in full force and effect.

License Agreement to include patents acquired by the respective party prior to January 1, 2022. In December 2016, DISH Network and EchoStar independently exercised their respective options to extend each Cross-License Agreement. The aggregate additional payments to such third-party was less than $3 million. Since the aggregate payments under both Cross-License Agreements were based on the combined annual revenues of DISH Network and EchoStar, DISH Network and EchoStar agreed to allocate their respective payments to such third party based on their respective percentage of combined total revenue.

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.

Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into a master service agreement (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). For each of the three months ended June 30, 2020 and 2019, these payments were $5 million. For the six months ended June 30, 2020 and 2019, these payments were $9 million and $11 million, respectively. 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 both the three months ended June 30, 2020 and 2019, we purchased broadband equipment from HNS of $3 million under the MSA. For the six months ended June 30, 2020 and 2019, we purchased broadband equipment from HNS of $7 million and $8 million under the MSA, respectively.

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

Intellectual Property and Technology License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, DISH Network and EchoStar entered into an Intellectual Property and Technology License Agreement (“IPTLA”), pursuant to which DISH Network and EchoStar license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, EchoStar granted to DISH Network a license to its intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the Transferred Businesses acquired pursuant to the Share Exchange Agreement, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to DISH Network 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 Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	13,259	$	14,355	$	27,351	$	28,714

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,930	$	9,630
Commitments to NagraStar	$	4,159	$	4,893

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 certain satellite services 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 Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Sales:
Uplink services	$	1,288	$	1,412	$	2,669	$	2,816
Total	$	1,288	$	1,412	$	2,669	$	2,816

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico	$	2,116	$	1,191

17.Related Party Transactions

Master Transaction Agreement

On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement.

Related Party Transactions with DISH Network

“Satellite and transmission expenses”

During the years ended December 31, 2019, 2018 and 2017, we incurred $93 million, $67 million and $67 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

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EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar, 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. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date.

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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 received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term would expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term in September 2019, we had 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 had certain rights to receive service from EchoStar on a replacement satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the year ended December 31, 2019, we recorded $11 million of “Depreciation and amortization expense” and $5 million of “Interest expense, net of amounts capitalized” related to Nimiq 5.

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 received 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. 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 DISH Network 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. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021.

“General and administrative expenses”

During the year ended December 31, 2019, we incurred $3 million for general and administrative expenses for services provided to us by DISH Network. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

Real Estate Lease Agreements. On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019 and we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below:

●

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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date.

Other Agreements – DISH Network

Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2019, 2018 and 2017, the costs associated with these services were $54 million, $40 million and $48 million, respectively.

Related Party Transactions with EchoStar

“Trade accounts receivable”

As of December 31, 2019 and 2018, trade accounts receivable from EchoStar was $1 million and $4 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets.

“Trade accounts payable”

As of December 31, 2019 and 2018, trade accounts payable to EchoStar was $3 million and $6 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets.

“Equipment sales and other revenue”

During the years ended December 31, 2019, 2018 and 2017, we received $6 million, $8 million and $3 million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below.

●

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. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days’ written notice prior to the end of the term.

●

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. This lease was terminated effective September 10, 2019.

●

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. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. 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.

“Satellite and transmission expenses”

During the years ended December 31, 2019, 2018 and 2017, we incurred $198 million, $309 million and $346 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. Historically, EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

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 6 for further information. The term of each lease is set forth below:

●

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 and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network.

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 received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued 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 in September 2019, 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 had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020.

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 had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network.

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.

“General and administrative expenses”

During the years ended December 31, 2019, 2018 and 2017, we incurred $20 million, $21 million and $29 million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below.

●

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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network.

●

Professional Services Agreement. Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. The Professional Services Agreement renewed on January 1, 2020 for an additional one-year period until January 1, 2021 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. In addition, on May 19, 2019, DISH Network entered into a Master Transaction Agreement, pursuant to which, effective September 10, 2019, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other related to the Master Transaction Agreement and to remove certain services no longer necessary as a result of the Master Transaction Agreement. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Other Agreements - EchoStar

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

Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into a master service agreement (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 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 years ended December 31, 2019, 2018 and 2017, we purchased broadband equipment from HNS of $14 million, $21 million and $22 million under the MSA, respectively.

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 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 Consolidated Balance Sheets or expensed as “Subscriber acquisition costs” or “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

The table below summarizes our transactions with NagraStar.


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	56,284	$	72,162	$	71,167

			As of December 31,
			2019		2018

			(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar			$	9,630	$	9,871
Commitments to NagraStar			$	4,893	$	3,888

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, certain satellite 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 Consolidated Statements of Operations and Comprehensive Income (Loss).

The table below summarizes our transactions with Dish Mexico:



	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Sales:
Digital receivers and related components	$	—	$	1,227	$	1,891
Uplink services		5,620		5,426		3,994
Total	$	5,620	$	6,653	$	5,885

			As of December 31,
			2019		2018

			(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico			$	1,191	$	1,370

{

Summary of Significant Accounting Policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Principles of Consolidation and Basis of Presentation

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

Use of Estimates

Cash and Cash Equivalents

Marketable Investment Securities

●

the fair value of our debt investments compared to the carrying amount,

●

the historical volatility of the price of each security, and

●

any market and company specific factors related to each security.

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


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

●

we have the intent to sell the security,

●

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

●

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

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

Trade Accounts Receivable

Inventory

Property and Equipment

Impairment of Long-Lived Assets

Indefinite-Lived Intangible Assets and Goodwill

●

FCC licenses are a non-depleting asset;

●

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

●

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

●

maintenance expenditures to obtain future cash flows are not significant;

●

FCC licenses are not technologically dependent; and

●

we intend to use these assets indefinitely.

Business Combinations

Long-Term Deferred Revenue and Other Long-Term Liabilities

Sales Taxes

Income Taxes

Fair Value Measurements

●

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

●

Fair Value Measurements

●

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

●

Deferred Debt Issuance Costs

Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information.

Revenue Recognition

Contract Balances

Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber

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; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 for further information, including revenue disaggregated by major source.

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 15 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 years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Impact of Adoption of ASU 2014-09

Subscriber-Related Expenses

Impact of Adoption of ASU 2016-02

Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years, some of which include renewal options, and some of which include options to terminate the leases within one year.

We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses.

For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease.

Impact of Adoption of ASU 2016-02

The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows:


Consolidated Balance Sheets	DISH DBS (as would have been reported under previous standards)		Impact of adopting ASU 2016-02		DISH DBS (as currently reported)

	(In thousands)
As of December 31, 2019
Operating lease assets	$	—	$	553,576	$	553,576
Total assets	$	3,832,983	$	553,576	$	4,386,559
Other accrued expenses	$	715,361	$	202,972	$	918,333
Operating lease liabilities	$	—	$	350,155	$	350,155
Long-term deferred revenue and other long-term liabilities	$	207,543	$	449	$	207,992
Total liabilities	$	14,767,605	$	553,576	$	15,321,181
Total stockholder's equity (deficit)	$	(10,934,622)	$	—	$	(10,934,622)
Total liabilities and stockholder's equity (deficit)	$	3,832,983	$	553,576	$	4,386,559

Cost of Sales - Equipment and Other

Cost of Sales – Equipment and Other

Subscriber Acquisition Costs

●

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

Research and Development

New Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of adoption of ASU 2016-02 impacted our consolidated balance sheets


Consolidated Balance Sheets	DISH DBS (as would have been reported under previous standards)		Impact of adopting ASU 2016-02		DISH DBS (as currently reported)

	(In thousands)
As of December 31, 2019
Operating lease assets	$	—	$	553,576	$	553,576
Total assets	$	3,832,983	$	553,576	$	4,386,559
Other accrued expenses	$	715,361	$	202,972	$	918,333
Operating lease liabilities	$	—	$	350,155	$	350,155
Long-term deferred revenue and other long-term liabilities	$	207,543	$	449	$	207,992
Total liabilities	$	14,767,605	$	553,576	$	15,321,181
Total stockholder's equity (deficit)	$	(10,934,622)	$	—	$	(10,934,622)
Total liabilities and stockholder's equity (deficit)	$	3,832,983	$	553,576	$	4,386,559

Supplemental Data - Statements of Cash Flows (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of supplemental cash flow and other non-cash data


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for interest	$	329,923	$	382,391
Cash received for interest		1,962		8,528
Cash paid for income taxes		3,205		8,845
Cash paid for income taxes to DISH Network		176,964		152,526
Capitalized interest		—		440
Reclassification of a receivable from noncurrent to current		—		138,210


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Cash paid for interest	$	765,510	$	793,506	$	878,772
Cash received for interest		30,041		6,043		9,855
Cash paid for income taxes		19,485		18,683		29,961
Cash paid for income taxes to DISH Network		245,028		302,329		408,265
Capitalized interest		440		1,071		481

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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
	June 30,		December 31,
	2020		2019

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	31	$	—
Restricted marketable investment securities (1)		—		390
Total marketable investment securities		31		390

Restricted cash and cash equivalents (1)		61,349		60,677

Other investment securities:
Other investment securities		96,886		106,874
Total other investment securities		96,886		106,874

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	158,266	$	167,941

(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.


	As of December 31,
	2019		2018

	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Trading/equity	$	—	$	2,370
Other		—		147,370
Total current marketable investment securities		—		149,740
Restricted marketable investment securities (1)		390		67,019
Total marketable investment securities		390		216,759

Restricted cash and cash equivalents (1)		60,677		578

Other investment securities:
Other investment securities		106,874		108,308
Total other investment securities		106,874		108,308

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	167,941	$	325,645

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

Schedule of components of available-for-sale investments


	As of December 31,
	2019								2018
	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	$	390	$	—	$	—	$	—	$	66,823	$	40	$	(19)	$	21
Commercial paper		—		—		—		—		45,938		—		—		—
Corporate securities		—		—		—		—		100,662		11		(113)		(102)
Other		—		—		—		—		966		—		—		—
Total	$	390	$	—	$	—	$	—	$	214,389	$	51	$	(132)	$	(81)

Schedule of investments measured at fair value on a recurring basis


	As of
	June 30, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	63,344	$	62,740	$	604	$	—	$	60,677	$	60,677	$	—	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	390	$	390	$	—	$	—
Commercial paper		31		—		31		—		—		—		—		—
Corporate securities		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—
Total	$	31	$	—	$	31	$	—	$	390	$	390	$	—	$	—


	As of December 31,
	2019								2018
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	60,677	$	60,677	$	—	$	—	$	114,464	$	12,493	$	101,971	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	390	$	390	$	—	$	—	$	66,823	$	66,823	$	—	$	—
Commercial paper		—		—		—		—		45,938		—		45,938		—
Corporate securities		—		—		—		—		100,662		—		100,662		—
Other		—		—		—		—		966		—		966		—

Equity securities		—		—		—		—		2,370		2,370		—		—
Total	$	390	$	390	$	—	$	—	$	216,759	$	69,193	$	147,566	$	—

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


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Other, net:	2020		2019		2020		2019

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	—	$	829	$	—	$	3,599
Costs related to early redemption of debt		—		—		—		(439)
Equity in earnings of affiliates		(399)		2,297		(121)		1,353
Other		247		5		914		51
Total	$	(152)	$	3,131	$	793	$	4,564



	For the Years Ended December 31,
Other, net:	2019		2018		2017

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	3,119	$	5,313	$	87,020
Costs related to early redemption of debt		—		(3,261)		(1,470)
Gain (loss) on sale of subsidiary		—		7,004		—
Equity in earnings of affiliates		3,514		(2,110)		2,163
Other		976		2,048		798
Total	$	7,609	$	8,994	$	88,511

Inventory (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Inventory

Schedule of inventory


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Finished goods	$	249,605	$	254,240
Work-in-process and service repairs		34,245		34,120
Raw materials		17,558		33,623
Total inventory	$	301,408	$	321,983


	As of December 31,
	2019		2018

	(In thousands)
Finished goods	$	254,240	$	215,150
Work-in-process and service repairs		34,120		56,871
Raw materials		33,623		18,676
Total inventory	$	321,983	$	290,697

Property and Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of property and equipment


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2020		2019

		(In thousands)
Equipment leased to customers	2-5	$	1,779,445	$	1,837,503
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		398,107		398,107
Furniture, fixtures, equipment and other	2-20		1,934,783		1,894,629
Buildings and improvements	5-40		294,342		289,421
Land	-		13,186		13,186
Construction in progress	-		62,862		70,081
Total property and equipment			5,171,638		5,191,840
Accumulated depreciation			(3,509,710)		(3,440,267)
Property and equipment, net		$	1,661,928	$	1,751,573


	Depreciable		As of
	Life	December 31,		December 31,
	(In Years)	2019		2018

		(In thousands)
Equipment leased to customers	2-5	$	1,837,503	$	1,980,808
EchoStar XV	15		277,658		277,658
EchoStar XVIII (1)	15		411,255		—
Satellites acquired under finance lease agreements (2)(3)	15		398,107		499,819
Furniture, fixtures, equipment and other	2-20		1,894,629		1,820,883
Buildings and improvements	5-40		289,421		289,244
Land	-		13,186		13,186
Construction in progress	-		70,081		47,077
Total property and equipment			5,191,840		4,928,675
Accumulated depreciation			(3,440,267)		(3,550,726)
Property and equipment, net		$	1,751,573	$	1,377,949

(1)

(2)

(3)

Schedule of depreciation and amortization expense


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Equipment leased to customers	$	69,489	$	86,453	$	149,171	$	194,589
Satellites		23,796		12,920		47,593		23,575
Buildings, furniture, fixtures, equipment and other		29,584		36,227		61,190		72,551
Total depreciation and amortization	$	122,869	$	135,600	$	257,954	$	290,715


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Equipment leased to customers	$	370,867	$	437,342	$	539,434
Satellites		65,441		61,045		61,045
Buildings, furniture, fixtures, equipment and other		141,040		162,073		141,293
Total depreciation and amortization	$	577,348	$	660,460	$	741,772

Schedule of pay-TV satellite fleet


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2021
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5 (3)	September 2009	72.7	September 2020
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(2)

See Note 13 for further information on our Related Party Transactions with DISH Network.

(3)


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
Nimiq 5 (3)(4)	September 2009	72.7	September 2020
QuetzSat-1 (3)	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)	See Note 17 for further information on our Related Party Transactions with EchoStar.

(2)	See Note 17 for further information on our Related Party Transactions with DISH Network.

(3)

(4)

Schedule of identifiable intangibles subject to amortization


	As of December 31,
	2019				2018
	Intangible		Accumulated		Intangible		Accumulated
	Assets		Amortization		Assets		Amortization

	(In thousands)
Technology-based	$	58,162	$	(53,447)	$	58,162	$	(51,204)
Trademarks		35,010		(30,655)		35,010		(27,106)
Contract-based		4,500		(4,500)		4,500		(4,500)
Customer relationships		23,632		(23,632)		23,632		(23,632)
Total	$	121,304	$	(112,234)	$	121,304	$	(106,442)

Schedule of estimated future amortization of identifiable intangible assets


For the Years Ended December 31,
2020	$	3,285
2021		835
2022		666
2023		654
2024		654
Thereafter		2,976
Total	$	9,070

Schedule of FCC Authorizations


	As of December 31,
	2019		2018

	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS Licenses (1)		—		24,000
Capitalized Interest		—		1,552
Total	$	611,794	$	637,346

Leases (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases

Summary of the components of lease expense

For the Three Months Ended

For the Six Months Ended

June 30,

2020

2019

2020

2019

(In thousands)

Operating lease cost	$	61,808	$	81,762	$	123,523	$	162,048

Short-term lease cost (1)		3,733		12,141		6,400		31,426

Finance lease cost:
Amortization of right-of-use assets		12,300		3,805		24,748		9,913
Interest on lease liabilities		4,534		1,099		9,332		2,280
Total finance lease cost		16,834		4,904		34,080		12,193
Total lease costs	$	82,375	$	98,807	$	164,003	$	205,667

(2)Leases that have terms of 12 months or less.


	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	297,181

Short-term lease cost (1)		37,686

Finance lease cost:
Amortization of right-of-use assets		29,134
Interest on lease liabilities		9,826
Total finance lease cost		38,960
Total lease costs	$	373,827

(1)

Leases that have terms of 12 months or less.

Summary of Supplemental cash flow information related to leases


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	123,811	$	164,159
Operating cash flows from finance leases	$	9,332	$	2,295
Financing cash flows from finance leases	$	23,227	$	10,454

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	17,967	$	61,872
Finance leases	$	—	$	—

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842			$	730,180


	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	301,524
Operating cash flows from finance leases	$	9,826
Financing cash flows from finance leases	$	31,841

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	81,198
Finance leases	$	175,311

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	730,180

Summary of supplemental balance sheet information related to leases


	As of
	June 30, 2020		December 31, 2019

	(In thousands)
Operating Leases:
Operating lease assets	$	471,987	$	553,576

Other current liabilities	$	204,138	$	202,972
Operating lease liabilities		267,154		350,155
Total operating lease liabilities	$	471,292	$	553,127

Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(226,325)		(201,873)
Property and equipment, net	$	172,550	$	197,891

Other current liabilities	$	50,860	$	48,678
Other long-term liabilities		137,949		163,939
Total finance lease liabilities	$	188,809	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.1 years		3.4 years
Finance leases		3.8 years		4.2 years

Weighted Average Discount Rate:
Operating leases		9.0%		9.1%
Finance leases		9.5%		9.5%


	As of
	December 31, 2019
	(In thousands)
Operating Leases:
Operating lease right-of-use assets	$	553,576

Other current liabilities	$	202,972
Operating lease liabilities		350,155
Total operating lease liabilities	$	553,127

Finance Leases:
Property and equipment, gross	$	399,764
Accumulated depreciation		(201,873)
Property and equipment, net	$	197,891

Other current liabilities	$	48,678
Other long-term liabilities		163,939
Total finance lease liabilities	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.4 years
Finance leases		4.2 years

Weighted Average Discount Rate:
Operating leases		9.1%
Finance leases		9.5%

Summary of maturities of operating lease liabilities


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020 (remaining six months)	$	121,315	$	33,139	$	154,454
2021		205,137		66,279		271,416
2022		132,452		50,226		182,678
2023		27,439		42,862		70,301
2024		11,376		32,147		43,523
Thereafter		42,414		—		42,414
Total lease payments		540,133		224,653		764,786
Less: Imputed interest		(68,841)		(35,844)		(104,685)
Total		471,292		188,809		660,101
Less: Current portion		(204,138)		(50,860)		(254,998)
Long-term portion of lease obligations	$	267,154	$	137,949	$	405,103

Maturities of lease liabilities as of December 31, 2019 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094

Summary of maturities of finance lease liabilities


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094

Long-Term Debt and Finance Lease Obligations (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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


	As of
	June 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
5 1/8% Senior Notes due 2020 (1)	$	—	$	—	$	1,100,000	$	1,110,208
6 3/4% Senior Notes due 2021 (2)		2,000,000		2,045,100		2,000,000		2,109,420
5 7/8% Senior Notes due 2022		2,000,000		2,043,040		2,000,000		2,129,580
5 % Senior Notes due 2023		1,500,000		1,495,545		1,500,000		1,543,770
5 7/8% Senior Notes due 2024		2,000,000		2,000,340		2,000,000		2,049,080
7 3/4% Senior Notes due 2026		2,000,000		2,130,880		2,000,000		2,128,900
Other notes payable		25,996		25,996		25,996		25,996
Subtotal		9,525,996	$	9,740,901		10,625,996	$	11,096,954
Unamortized deferred financing costs and debt discounts, net		(13,581)				(16,250)
Finance lease obligations (3)		188,809				212,617
Total long-term debt and finance lease obligations (including current portion)	$	9,701,224			$	10,822,363

(4)

On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020.

(5)

Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of June 30, 2020.

(6)

Disclosure regarding fair value of finance leases is not required.


	As of December 31,
	2019				2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
7 7/8% Senior Notes due 2019 (1)		—		—		1,317,372		1,343,298
5 1/8% Senior Notes due 2020 (2)		1,100,000		1,110,208		1,100,000		1,089,957
6 3/4% Senior Notes due 2021		2,000,000		2,109,420		2,000,000		1,974,940
5 7/8% Senior Notes due 2022		2,000,000		2,129,580		2,000,000		1,833,140
5 % Senior Notes due 2023		1,500,000		1,543,770		1,500,000		1,247,445
5 7/8% Senior Notes due 2024		2,000,000		2,049,080		2,000,000		1,611,960
7 3/4% Senior Notes due 2026		2,000,000		2,128,900		2,000,000		1,653,720
Other notes payable		25,996		25,996		10,346		10,346
Subtotal		10,625,996	$	11,096,954		11,927,718	$	10,764,806
Unamortized deferred financing costs and debt discounts, net		(16,250)				(23,215)
Finance lease obligations (3)		212,617				66,984
Total long-term debt and finance lease obligations (including current portion)	$	10,822,363			$	11,971,487

(1)	On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019.

(2)

(3)	Disclosure regarding fair value of finance leases is not required.

Schedule of interest on long-term debt


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

(1)

Schedule of other long term debt and capital lease obligations


	As of December 31,
	2019		2018

	(In thousands)
Satellites and other finance lease obligations	$	212,617	$	66,984
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0%		25,996		10,346
Total		238,613		77,330
Less: current portion		(51,108)		(21,155)
Other long-term debt and finance lease obligations, net of current portion	$	187,505	$	56,175

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

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

12 Months Ended

Dec. 31, 2019

Income Taxes and Accounting for Uncertainty in Income Taxes

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


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Current (benefit) provision:
Federal	$	208,821	$	273,632	$	356,759
State		48,417		64,534		54,133
Foreign		6,203		4,616		3,736
Total current (benefit) provision		263,441		342,782		414,628

Deferred (benefit) provision:
Federal		11,243		(25,934)		(308,028)
State		(1,987)		(123)		11,954
Increase (decrease) in valuation allowance		2,054		1,580		(938)
Total deferred (benefit) provision		11,310		(24,477)		(297,012)
Total (benefit) provision	$	274,751	$	318,305	$	117,616

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


	For the Years Ended December 31,
	2019	2018	2017

	% of pre-tax income/(loss)
Statutory rate	21.0	21.0	35.0
State income taxes, net of federal benefit	3.6	4.4	4.2
Tax Reform Act (1)	—	—	(34.5)
Nondeductible/Nontaxable items (2)	—	—	11.5
Other, net	0.3	(0.8)	(2.2)
Total (benefit) provision for income taxes	24.9	24.6	14.0

(1)

(2)

Schedule of deferred tax assets and liabilities


	As of December 31,
	2019		2018

	(In thousands)
Deferred tax assets:
NOL, interest, credit and other carryforwards	$	12,323	$	10,915
Accrued and prepaid expenses		96,974		—
Stock-based compensation		19,719		21,198
Deferred revenue		17,238		18,361
Total deferred tax assets		146,254		50,474
Valuation allowance		(9,521)		(7,467)
Deferred tax asset after valuation allowance		136,733		43,007

Deferred tax liabilities:
Depreciation		(458,811)		(345,358)
Accrued and prepaid expenses		—		(15,537)
FCC authorizations and other intangible amortization		(174,399)		(131,452)
Bases difference in partnerships and other investments		(5,380)		(12,112)
Other liabilities		—		—
Total deferred tax liabilities		(638,590)		(504,459)
Net deferred tax asset (liability)	$	(501,857)	$	(461,452)

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


	For the Years Ended December 31,
Unrecognized tax benefit	2019		2018		2017

	(In thousands)
Balance as of beginning of period	$	194,136	$	201,162	$	201,693
Additions based on tax positions related to the current year		3,232		10,550		684
Additions based on tax positions related to prior years		28,137		1,154		4,593
Reductions based on tax positions related to prior years		(13,028)		(4,479)		(1,061)
Reductions based on tax positions related to settlements with taxing authorities		(2,362)		(8,328)		(1,634)
Reductions based on tax positions related to the lapse of the statute of limitations		(1,963)		(5,923)		(3,113)
Balance as of end of period	$	208,152	$	194,136	$	201,162

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans

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


	For the Years Ended December 31,
Expense Recognized Related to the 401(k) Plan	2019		2018		2017

	(In thousands)
Matching contributions, net of forfeitures	$	11,181	$	10,300	$	7,070
Discretionary stock contributions, net of forfeitures	$	28,774	$	27,048	$	27,969

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation

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


					Options Outstanding				Options Exercisable
					Number Outstanding as of December 31, 2019	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable as of December 31, 2019	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price
$	10.01	-	$	20.00	616,160	0.50	$	15.39	16,160	0.50	$	15.62
$	20.01	-	$	30.00	826,983	3.37	$	26.74	124,233	3.25	$	24.02
$	30.01	-	$	40.00	6,671,563	7.94	$	35.67	1,057,044	7.50	$	35.52
$	40.01	-	$	50.00	1,468,628	7.59	$	47.52	384,800	7.10	$	47.24
$	50.01	-	$	60.00	2,154,378	6.47	$	57.50	430,952	5.69	$	59.90
$	60.01	-	$	70.00	1,040,100	6.29	$	64.22	304,300	5.50	$	65.23
$	70.01	-	$	80.00	15,000	—	$	72.89	15,000	—	$	72.89
$	—	-	$	80.00	12,792,812	6.85	$	41.52	2,332,489	6.51	$	44.77

Schedule of stock option activity associated with employees


	For the Years Ended December 31,
	2019			2018			2017
	Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price		Options	Weighted- Average Exercise Price
Total options outstanding, beginning of period	13,365,489	$	41.78	8,847,734	$	43.90	7,913,733	$	36.22
Granted	1,396,750	$	33.52	7,026,512	$	38.44	3,468,626	$	59.66
Exercised	(713,411)	$	27.46	(267,905)	$	16.43	(505,125)	$	28.73
Forfeited and cancelled (1)	(1,256,016)	$	43.40	(2,240,852)	$	39.73	(2,029,500)	$	44.64
Total options outstanding, end of period	12,792,812	$	41.52	13,365,489	$	41.78	8,847,734	$	43.90
Performance-based options outstanding, end of period (2)	7,608,446	$	39.78	8,671,886	$	39.95	5,490,626	$	42.81
Exercisable at end of period	2,332,489	$	44.93	1,705,103	$	40.87	1,772,608	$	35.13

(1)	Certain of these stock options include options that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS.

(2)	These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the, 2013 LTIP, 2017 LTIP, 2019 LTIP and Other Employee Performance Awards below.

Schedule of realized tax benefits from stock awards exercised


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Tax benefit from stock awards exercised	$	1,239	$	1,664	$	9,347

Schedule of aggregate intrinsic value of stock options associated with employees


	As of December 31, 2019
	Options		Options
	Outstanding		Exercisable

	(In thousands)
Aggregate intrinsic value	$	21,829	$	2,136

Schedule of restricted stock unit activity


	For the Years Ended December 31,
	2019			2018			2017
	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value
Total restricted stock units/awards outstanding, beginning of period	1,718,945	$	52.16	2,484,720	$	51.16	1,336,000	$	32.11
Granted	—	$	—	—	$	—	1,871,375	$	63.87
Vested	(9,565)	$	63.49	(10,475)	$	63.49	(14,845)	$	62.58
Forfeited and cancelled (1)	(245,730)	$	59.86	(755,300)	$	48.51	(707,810)	$	48.59
Total restricted stock units/awards outstanding, end of period	1,463,650	$	50.82	1,718,945	$	52.16	2,484,720	$	51.16
Restricted Performance Units/Awards outstanding, end of period (2)	1,446,300	$	50.66	1,689,350	$	51.97	2,435,500	$	50.91

(1)	Certain of these restricted stock units/awards include restricted stock units/awards that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS.

(2)	These stock units/awards are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2013 LTIP and Other Employee Performance Awards below.

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


	For the Years Ended December 31,
Non-Cash, Stock-Based Compensation Expense Recognized (1)	2019		2018		2017

	(In thousands)
2019 LTIP	$	14,946	$	3,475	$	—
2017 LTIP		(12,902)		3,293		10,640
2013 LTIP		(1,021)		(2,471)		(321)
Other employee performance awards		(592)		17,888		7,549
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	431	$	22,185	$	17,868

(1)

“Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures.

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


Estimated Remaining Non-Cash, Stock-Based Compensation Expense	2019 LTIP		2017 LTIP		2013 LTIP		Other Employee Performance Awards

	(In thousands)
Expense estimated to be recognized during 2020	$	10,541	$	—	$	—	$	—
Estimated contingent expense subsequent to 2020		12,682		29,341		29,766		61,322
Total estimated remaining expense over the term of the plan	$	23,223	$	29,341	$	29,766	$	61,322

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


	As of December 31, 2019
Performance-Based Stock Options	Number of Awards	Weighted- Average Grant Price
2019 LTIP	3,510,375	$	35.16
2017 LTIP	2,083,071	$	57.12
2013 LTIP	875,000	$	41.08
Other employee performance awards	1,140,000	$	21.31
Total	7,608,446	$	39.78

Restricted Performance Units/Awards
2013 LTIP	437,500
Other employee performance awards	1,008,800
Total	1,446,300

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


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Subscriber-related	$	509	$	1,150	$	1,562
Satellite and transmission		329		262		1,761
General and administrative		13,015		34,109		26,618
Total non-cash, stock based compensation	$	13,853	$	35,521	$	29,941

Schedule of assumptions of Black-Scholes option valuation model


	For the Years Ended December 31,
Stock Options	2019							2018							2017
Risk-free interest rate		1.51	%	-		2.53	%		2.09	%	-		2.98	%		1.34	%	-		2.29	%
Volatility factor		28.86	%	-		32.08	%		23.33	%	-		30.22	%		22.25	%	-		26.15	%
Expected term of options in years		4.3		-		5.5			2.8		-		5.5			3.8		-		5.5
Fair value of options granted	$	7.58		-	$	12.45		$	7.10		-	$	12.53		$	11.95		-	$	16.69

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies

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


	Payments due by period
	Total		2020		2021		2022			2023		2024		Thereafter

Long-term debt obligations	$	10,625,996	$	1,102,430	$	2,002,554	$	2,002,683		$	1,502,820	$	2,002,964	$	2,012,545
Interest expense on long-term debt		2,524,898	$	629,410	$	533,599	$	465,969		$	310,832	$	273,188	$	311,900
Finance lease obligations (1)		212,617		48,678		53,150		41,666			38,018		31,105		—
Interest expense on finance lease obligations (1)		45,183		17,607		13,129		8,561			4,844		1,042		—
Satellite-related and other obligations (2)		219,019		71,931		65,663		41,291			23,321		16,813		—
Operating lease obligations (1)		641,792		239,660		199,062		127,300			24,571		9,191		42,008
Purchase obligations		1,241,340		1,200,025		29,284		12,031			—		—		—
Total	$	15,510,845	$	3,309,741	$	2,896,441	$	2,699,501	$		1,904,406	$	2,334,303	$	2,366,453

(1)

See Note 7 for further information on leases and the adoption of ASC 842.

(2)

Represents obligations for satellite related executory costs, telemetry, tracking and control (“TT&C”) services and short-term leases.

Disaggregation of Revenue (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Revenue by geographic region


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Revenue:	2020		2019		2020		2019

	(In thousands)
United States	$	3,144,992	$	3,155,828	$	6,302,296	$	6,282,937
Canada and Mexico		3,539		10,771		14,017		21,662
Total revenue	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599



	For the Years Ended December 31,
Revenue:	2019		2018		2017

	(In thousands)
United States	$	12,581,855	$	13,319,091	$	13,967,694
Canada and Mexico		41,038		43,048		39,817
Total revenue	$	12,622,893	$	13,362,139	$	14,007,511

Schedule of disaggregation of revenue


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Category:	2020		2019		2020		2019

	(In thousands)
Pay-TV video and related revenue	$	3,117,334	$	3,117,066	$	6,248,234	$	6,215,002
Equipment sales and other revenue		31,197		49,533		68,079		89,597
Total	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599



	For the Years Ended December 31,
Category:	2019		2018		2017
				(In thousands)
Pay-TV video and related revenue	$	12,436,637	$	13,197,994	$	13,877,196
Equipment sales and other revenue		186,256		164,145		130,315
Total	$	12,622,893	$	13,362,139	$	14,007,511

Contract Balances (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Valuation and Qualifying Accounts


Allowance for credit losses	Balance at Beginning of Period		Current Period Provision for Expected Credit Losses		Write-offs Charged Against Allowance		Balance at End of Period

	(In thousands)
For the six months ended June 30, 2020	$	19,280	$	51,808	$	(29,900)	$	41,188


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year

	(In thousands)
For the years ended:
December 31, 2019	$	16,956	$	69,866	$	(67,542)	$	19,280
December 31, 2018	$	15,056	$	98,461	$	(96,561)	$	16,956
December 31, 2017	$	17,440	$	124,143	$	(126,527)	$	15,056

Schedule of Contract balances


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2019	$	609,054
Recognition of unearned revenue		(2,951,822)
Deferral of revenue		2,925,648
Balance as of June 30, 2020	$	582,880


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2018	$	624,626
Recognition of unearned revenue		(7,086,252)
Deferral of revenue		7,070,680
Balance as of December 31, 2019	$	609,054

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data (Unaudited)

Schedule of quarterly results of operations


	For the Three Months Ended
	March 31		June 30		September 30		December 31

	(In thousands)
Year ended December 31, 2019:
Total revenue	$	3,138,000	$	3,166,599	$	3,122,282	$	3,196,012
Operating income (loss)		430,735		435,966		438,498		515,999
Net income (loss) attributable to DISH DBS		177,760		185,368		204,858		259,545

Year ended December 31, 2018:
Total revenue	$	3,383,222	$	3,393,307	$	3,334,444	$	3,251,166
Operating income (loss)		508,121		549,502		542,439		466,448
Net income (loss) attributable to DISH DBS		204,192		285,691		281,272		200,132

Related Party Transactions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	13,259	$	14,355	$	27,351	$	28,714

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,930	$	9,630
Commitments to NagraStar	$	4,159	$	4,893


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	56,284	$	72,162	$	71,167

			As of December 31,
			2019		2018

			(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar			$	9,630	$	9,871
Commitments to NagraStar			$	4,893	$	3,888

Dish Mexico

Organization and Business Activities


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Sales:
Uplink services	$	1,288	$	1,412	$	2,669	$	2,816
Total	$	1,288	$	1,412	$	2,669	$	2,816

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico	$	2,116	$	1,191



	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Sales:
Digital receivers and related components	$	—	$	1,227	$	1,891
Uplink services		5,620		5,426		3,994
Total	$	5,620	$	6,653	$	5,885

			As of December 31,
			2019		2018

			(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico			$	1,191	$	1,370

Organization and Business Activities (Details) - customer customer in Thousands	Jun. 30, 2020	Dec. 31, 2019
DISH TV subscribers
Organization and Business Activities
Number of subscribers	9,017	9,394
Sling TV subscribers
Organization and Business Activities
Number of subscribers	2,255	2,592
Pay TV Subscribers
Organization and Business Activities
Number of subscribers	11,272	11,986

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract cost capitalized during the period	$ 44,000	$ 55,000	$ 82,000	$ 92,000	$ 207,000	$ 183,000
Amortization expense related to the programs	29,000	$ 17,000	56,000	$ 31,000	76,000	28,000
Total costs capitalized	326,000		326,000		300,000	169,000
Retained earnings	$ (11,747,776)		$ (11,747,776)		(12,366,909)	$ (13,194,440)
ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings					2,000
Deferred taxes					$ 1,000

Summary of Significant Accounting Policies - Leases (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Leases
Renewal options, operating lease	true	true
Renewal options, finance lease	true	true
Options to terminate, operating lease	true	true
Options to terminate, finance lease	true	true
Minimum
Leases
Remaining lease terms, operating lease	1 year	1 year
Remaining lease terms, finance lease	1 year	1 year
Maximum
Leases
Remaining lease terms, operating lease	12 years	12 years
Remaining lease terms, finance lease	12 years	8 years
Termination period, operating lease	1 year	1 year
Termination period, finance lease	1 year	1 year

Summary of Significant Accounting Policies - Impact of Adoption of ASU2016-02 (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets	$ 471,987		$ 553,576
Total assets	4,156,336		4,386,559			$ 3,905,544
Other accrued expenses	893,149		918,333			756,534
Operating lease liabilities	267,154		350,155
Long-term deferred revenue and other long-term liabilities	224,210		207,992			198,840
Total liabilities	14,461,861		15,321,181			15,947,704
Total stockholders' equity (deficit)	(10,305,525)	$ (10,683,879)	(10,934,622)	$ (11,388,977)	$ (11,853,360)	(12,042,160)	$ (13,046,663)	$ (13,792,150)
Total liabilities and stockholders' equity (deficit)	$ 4,156,336		4,386,559			$ 3,905,544
Accounting Standards Update 2016-02 \| DISH DBS (as would have been reported under previous standards) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets			3,832,983
Other accrued expenses			715,361
Long-term deferred revenue and other long-term liabilities			207,543
Total liabilities			14,767,605
Total stockholders' equity (deficit)			(10,934,622)
Total liabilities and stockholders' equity (deficit)			3,832,983
Accounting Standards Update 2016-02 \| Impact of adopting ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets			553,576
Total assets			553,576
Other accrued expenses			202,972
Operating lease liabilities			350,155
Long-term deferred revenue and other long-term liabilities			449
Total liabilities			553,576
Total liabilities and stockholders' equity (deficit)			$ 553,576

Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2017	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Significant accounting policies
Maturity period of cash equivalents						90 days
Research and Development
Research and development expense		$ 5	$ 6	$ 11	$ 11	$ 21	$ 24	$ 33
EchoStar \| Satellite and Tracking Stock Transaction
Significant accounting policies
Preferred tracking stock issued by related party	6,290,499
HSSC \| Satellite and Tracking Stock Transaction
Significant accounting policies
Preferred tracking stock issued by related party	81.128
Minimum
Marketable Investment Securities
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary						6 months
Length of time an investment has been in a continuous loss position in which the decline in value is considered other-than-temporary						9 months
Property and Equipment
Useful life of property and equipment						2 years
Business Combinations
Amortization of finite lived intangible assets useful life						5 years
Maximum
Marketable Investment Securities
Length of time an investment has been in a continuous loss position in which the decline in value is considered as temporary						6 months
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary						9 months
Property and Equipment
Useful life of property and equipment						40 years
Business Combinations
Amortization of finite lived intangible assets useful life						20 years
Long-Term Deferred Revenue, Distribution and Carriage Payments
Deferred upfront payment, amortization period						10 years
Revenue Recognition
Period of deferral for the portion of subscriber fees that are deferred				1 year		1 year
Sling TV Holding \| EchoStar
Significant accounting policies
Ownership percentage owned by noncontrolling owners	10.00%

Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplemental Data - Statements of Cash Flows
Cash paid for interest	$ 329,923	$ 382,391	$ 765,510	$ 793,506	$ 878,772
Cash received for interest	1,962	8,528	30,041	6,043	9,855
Cash paid for income taxes	3,205	8,845	19,485	18,683	29,961
Cash paid for income taxes to DISH Network	$ 176,964	152,526	245,028	302,329	408,265
Capitalized interest		$ 440	440	$ 1,071	$ 481
Satellite and Tracking Stock Transaction with EchoStar:
Satellite and Spectrum Transaction, deferred taxes			$ 29,075

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Trading/equity (Note 2)			$ 2,370
Total current marketable investment securities	$ 31		149,740
Restricted marketable investment securities(1)		$ 390	67,019
Total marketable investment securities	31	390	216,759
Restricted cash and cash equivalents (1)	61,349	60,677	578
Other investment securities	96,886	106,874	108,308
Total other investment securities	96,886	106,874	108,308
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$ 158,266	$ 167,941	325,645
Maximum maturities of commercial paper	365 days	365 days
Maximum maturities of corporate securities	18 months	18 months
NagraStar L.L.C
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Ownership interest in equity method investment				50.00%
Current marketable investment securities - other
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Total current marketable investment securities			$ 147,370

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)		$ (81)
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss)	$ 0
Unrealized losses on markatable investment securites	0
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains		51
Unrealized Losses		(132)
Unrealized Gains Losses, Net		(81)
Maximum
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss)		(1,000)
Unrealized losses on markatable investment securites		1,000
Contractual maturities of restricted and non-restricted marketable investment securities
Debt securities with contractual maturities within one year	$ 1,000
U.S. Treasury and agency securities
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)		21
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains		40
Unrealized Losses		(19)
Unrealized Gains Losses, Net		21
Corporate securities
Accumulated net unrealized gains (losses)
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss)		(102)
Unrealized Gains (Losses) on Marketable Investment Securities
Unrealized Gains		11
Unrealized Losses		(113)
Unrealized Gains Losses, Net		$ (102)

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of marketable securities
Debt securities		$ 390	$ 214,389
Equity Securities			2,370
Total marketable investment securities	$ 31	390	216,759
Transfer of investments from Level 1 to Level 2		0	0
Transfer of investments from Level 2 to Level 1		0	0
U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		390	66,823
Commercial paper
Fair value of marketable securities
Debt securities			45,938
Corporate securities
Fair value of marketable securities
Debt securities			100,662
Other
Fair value of marketable securities
Debt securities			966
Fair value measurements on recurring basis
Fair value of marketable securities
Cash equivalents (including restricted)	63,344	60,677	114,464
Equity Securities			2,370
Total marketable investment securities	31	390	216,759
Fair value measurements on recurring basis \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		390	66,823
Fair value measurements on recurring basis \| Commercial paper
Fair value of marketable securities
Debt securities	31		45,938
Fair value measurements on recurring basis \| Corporate securities
Fair value of marketable securities
Debt securities			100,662
Fair value measurements on recurring basis \| Other
Fair value of marketable securities
Debt securities			966
Fair value measurements on recurring basis \| Level 1
Fair value of marketable securities
Cash equivalents (including restricted)	62,740	60,677	12,493
Equity Securities			2,370
Total marketable investment securities		390	69,193
Fair value measurements on recurring basis \| Level 1 \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		$ 390	66,823
Fair value measurements on recurring basis \| Level 2
Fair value of marketable securities
Cash equivalents (including restricted)	604		101,971
Total marketable investment securities	31		147,566
Fair value measurements on recurring basis \| Level 2 \| Commercial paper
Fair value of marketable securities
Debt securities	$ 31		45,938
Fair value measurements on recurring basis \| Level 2 \| Corporate securities
Fair value of marketable securities
Debt securities			100,662
Fair value measurements on recurring basis \| Level 2 \| Other
Fair value of marketable securities
Debt securities			$ 966

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities
Marketable investment securities - realized and unrealized gains (losses)		$ 829		$ 3,599	$ 3,119	$ 5,313	$ 87,020
Costs related to early redemption of debt				(439)		(3,261)	(1,470)
Gain (loss) on sale of subsidiary						7,004
Equity in earnings of affiliates	$ (399)	2,297	$ (121)	1,353	3,514	(2,110)	2,163
Other	247	5	914	51	976	2,048	798
Total	$ (152)	$ 3,131	$ 793	$ 4,564	$ 7,609	$ 8,994	$ 88,511

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Inventory
Finished goods	$ 249,605	$ 254,240	$ 215,150
Work-in-process and service repairs	34,245	34,120	56,871
Raw materials	17,558	33,623	18,676
Total inventory	$ 301,408	$ 321,983	$ 290,697

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Total property and equipment	$ 5,171,638		$ 5,171,638		$ 5,191,840	$ 4,928,675
Accumulated depreciation	(3,509,710)		(3,509,710)		(3,440,267)	(3,550,726)
Property and equipment, net	1,661,928		1,661,928		1,751,573	1,377,949
Finance Lease Cost	16,834	$ 4,904	34,080	$ 12,193	$ 38,960
Minimum
Property and Equipment
Depreciable life of assets					2 years
Maximum
Property and Equipment
Depreciable life of assets					40 years
Equipment leased to customers
Property and Equipment
Total property and equipment	1,779,445		$ 1,779,445		$ 1,837,503	1,980,808
Equipment leased to customers \| Minimum
Property and Equipment
Depreciable life of assets			2 years		2 years
Equipment leased to customers \| Maximum
Property and Equipment
Depreciable life of assets			5 years
EchoStar XV
Property and Equipment
Total property and equipment	277,658		$ 277,658		$ 277,658	277,658
Depreciable life of assets			15 years		15 years
EchoStar XVIII
Property and Equipment
Total property and equipment	411,255		$ 411,255		$ 411,255
Depreciable life of assets			15 years		15 years
Incentive obligations					$ 18,000
Ciel II
Property and Equipment
Finance Lease Cost					277,000
Nimiq 5
Property and Equipment
Finance Lease Cost					175,000
Satellites acquired under finance lease agreements
Property and Equipment
Total property and equipment	398,107		$ 398,107		$ 398,107	499,819
Depreciable life of assets			15 years		15 years
Furniture, fixtures, equipment and other
Property and Equipment
Total property and equipment	1,934,783		$ 1,934,783		$ 1,894,629	1,820,883
Furniture, fixtures, equipment and other \| Minimum
Property and Equipment
Depreciable life of assets			2 years		2 years
Furniture, fixtures, equipment and other \| Maximum
Property and Equipment
Depreciable life of assets			20 years
Buildings and improvements
Property and Equipment
Total property and equipment	294,342		$ 294,342		$ 289,421	289,244
Buildings and improvements \| Minimum
Property and Equipment
Depreciable life of assets			5 years		5 years
Buildings and improvements \| Maximum
Property and Equipment
Depreciable life of assets			40 years
Land
Property and Equipment
Total property and equipment	13,186		$ 13,186		$ 13,186	13,186
Construction in progress
Property and Equipment
Total property and equipment	$ 62,862		$ 62,862		$ 70,081	$ 47,077

Property and Equipment - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Property and Equipment - Narrative (Details) $ in Thousands	Jun. 30, 2020 USD ($) item	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) item	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Depreciation and amortization expense
Depreciation and amortization expense \| $	$ 122,869	$ 135,600	$ 257,954	$ 290,715	$ 577,348	$ 660,460	$ 741,772
Equipment leased to customers
Depreciation and amortization expense
Depreciation and amortization expense \| $	69,489	86,453	149,171	194,589	370,867	437,342	539,434
Satellites
Depreciation and amortization expense
Depreciation and amortization expense \| $	23,796	12,920	47,593	23,575	65,441	61,045	61,045
Buildings, furniture, fixtures, equipment and other
Depreciation and amortization expense
Depreciation and amortization expense \| $	$ 29,584	$ 36,227	$ 61,190	$ 72,551	$ 141,040	$ 162,073	$ 141,293
Pay-TV Satellites
Depreciation and amortization expense
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator			11		11
Owned Satellites	2		2		2
Number of satellites utilized under operating lease					6
Number of satellites utilized under capital lease					2
Dish Network \| Pay-TV Satellites
Depreciation and amortization expense
Number of satellites utilized under operating lease					1

Property and Equipment - Pay TV Satellites (Details) $ in Millions		1 Months Ended	12 Months Ended
	May 14, 2019 USD ($)	May 14, 2019 USD ($)	Dec. 31, 2019 item
Property and Equipment
Satellite transaction cost basis	$ 320	$ 320
Net carrying value of licenses	26	26
Capital transaction	$ 267	$ 267
Number of other satellites to be relocated in the event of failure or loss of any satellite \| item			1

Property and Equipment and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets
Intangible Assets	$ 121,304	$ 121,304
Accumulated Amortization	(112,234)	(106,442)
Amortization expenses	$ 6,000	7,000	$ 7,000
Minimum
Intangible Assets
Useful life	5 years
Maximum
Intangible Assets
Useful life	20 years
Technology-based
Intangible Assets
Intangible Assets	$ 58,162	58,162
Accumulated Amortization	(53,447)	(51,204)
Trademarks
Intangible Assets
Intangible Assets	35,010	35,010
Accumulated Amortization	(30,655)	(27,106)
Contract-based
Intangible Assets
Intangible Assets	4,500	4,500
Accumulated Amortization	(4,500)	(4,500)
Customer relationships
Intangible Assets
Intangible Assets	23,632	23,632
Accumulated Amortization	$ (23,632)	$ (23,632)

Property and Equipment and Intangible Assets - Estimated future amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Estimated future amortization of identifiable intangible assets
2020	$ 3,285
2021	835
2022	666
2023	654
2024	654
Thereafter	2,976
Finite-Lived Intangible Assets, Net, Total	9,070
Other noncurrent assets, net
Estimated future amortization of identifiable intangible assets
Goodwill	$ 6,000	$ 6,000

Property and Equipment and Intangible Assets - FCC Authorizations (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2020
Capitalized interest	$ 440	$ 440	$ 1,071	$ 481
FCC authorizations		611,794	637,346		$ 611,794
FCC Authorizations
Capitalized interest			1,552
FCC authorizations		611,794	637,346
DBS Licenses \| FCC Authorizations
FCC authorizations		$ 611,794	611,794
MVDDS Licenses \| FCC Authorizations
FCC authorizations			$ 24,000

Leases (Details)	6 Months Ended	12 Months Ended
Leases (Details)	Jun. 30, 2020	Dec. 31, 2019
Leases
Short Term Lease Period		12 months
Renewal options, operating lease	true	true
Renewal options, finance lease	true	true
Options to terminate, operating lease	true	true
Options to terminate, finance lease	true	true
Minimum
Leases
Remaining lease terms, operating lease	1 year	1 year
Remaining lease terms, finance lease	1 year	1 year
Maximum
Leases
Remaining lease terms, operating lease	12 years	12 years
Short Term Lease Period	12 months
Remaining lease terms, finance lease	12 years	8 years
Termination period, operating lease	1 year	1 year
Termination period, finance lease	1 year	1 year

Leases - Components of lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Leases
Operating lease cost	$ 61,808	$ 81,762	$ 123,523	$ 162,048	$ 297,181
Short-term lease cost	3,733	12,141	6,400	31,426	37,686
Amortization of right-of-use assets	12,300	3,805	24,748	9,913	29,134
Interest on lease liabilities	4,534	1,099	9,332	2,280	9,826
Total finance lease cost	16,834	4,904	34,080	12,193	38,960
Total lease costs	$ 82,375	$ 98,807	$ 164,003	$ 205,667	$ 373,827

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Leases
Operating cash flows from operating leases	$ 123,811	$ 164,159	$ 301,524
Operating cash flows from finance leases	9,332	2,295	9,826
Financing cash flows from finance leases	23,227	10,454	31,841
Operating leases	$ 17,967	61,872	81,198
Finance leases			175,311
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842		$ 730,180	$ 730,180

Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Leases
Operating lease right-of-use assets	$ 471,987	$ 553,576
Other current liabilities	204,138	$ 202,972
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]		Other Accrued Liabilities, Current
Operating lease liabilities	267,154	$ 350,155
Total operating lease liabilities	471,292	$ 553,127
Operating Lease, Liability, Statement of Financial Position [Extensible List]		us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent
Property and equipment, gross	5,171,638	$ 5,191,840	$ 4,928,675
Accumulated depreciation	(3,509,710)	(3,440,267)	(3,550,726)
Property and equipment, net	1,661,928	1,751,573	1,377,949
Other current liabilities	50,860	48,678
Other long-term liabilities	137,949	163,939
Total finance lease liabilities	$ 188,809	$ 212,617	$ 66,984
Weighted Average Remaining Lease Term: Operating leases	3 years 1 month 6 days	3 years 4 months 24 days
Weighted Average Remaining Lease Term: Finance leases	3 years 9 months 18 days	4 years 2 months 12 days
Weighted Average Discount Rate: Operating leases	9.00%	9.10%
Weighted Average Discount Rate: Finance leases	9.50%	9.50%
Property and equipment [Member]
Leases
Property and equipment, gross	$ 398,875	$ 399,764
Accumulated depreciation	(226,325)	(201,873)
Property and equipment, net	$ 172,550	$ 197,891

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Maturities of lease liabilities: Operating lease
2020		$ 239,660
2021	$ 205,137	199,062
2022	132,452	127,300
2023	27,439	24,571
2024	11,376	9,191
Thereafter	42,414	42,008
Total lease payments	540,133	641,792
Less: Imputed interest	(68,841)	(88,665)
Total operating lease liabilities	471,292	553,127
Other current liabilities	(204,138)	(202,972)
Operating lease liabilities	267,154	350,155
Maturities of lease liabilities: Finance lease
2020		66,285
2021	66,279	66,279
2022	50,226	50,227
2023	42,862	42,862
2024	32,147	32,147
Total lease payments	224,653	257,800
Less: Imputed interest	(35,844)	(45,183)
Total finance lease liabilities	188,809	212,617	$ 66,984
Less: Current portion	(50,860)	(48,678)
Long-term portion of lease obligations	137,949	163,939
Future minimum payments for total lease liabilities
2020		305,945
2021	271,416	265,341
2022	182,678	177,527
2023	70,301	67,433
2024	43,523	41,338
Thereafter	42,414	42,008
Total lease payments	764,786	899,592
Less: Imputed interest	(104,685)	(133,848)
Total	660,101	765,744
Less: Current portion	(254,998)	(251,650)
Long-term portion of lease obligations	$ 405,103	$ 514,094

Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands						12 Months Ended
	Jun. 13, 2016	Nov. 20, 2014	Apr. 05, 2013	Jul. 26, 2012	May 05, 2011	Dec. 31, 2019	Jun. 30, 2020	Sep. 03, 2019	Dec. 31, 2018	Dec. 27, 2012	May 16, 2012
Long-term debt
Carrying Amount						$ 10,625,996	$ 9,525,996		$ 11,927,718
Fair Value						11,096,954	9,740,901		10,764,806
Unamortized deferred financing costs and debt discounts, net						(16,250)	(13,581)		(23,215)
Finance lease obligations (3)						212,617	188,809		66,984
Total long-term debt and finance lease obligations (including current portion)						$ 10,822,363	$ 9,701,224		11,971,487
Percentage of principal amount at which notes may be required to be repurchased in event of change of control						101.00%
7 7/8% Senior Notes due 2019
Long-term debt
Carrying Amount									1,317,372
Fair Value									$ 1,343,298
Interest rate (as a percent)						7.875%		7.875%	7.875%
5 1/8% Senior Notes due 2020
Long-term debt
Carrying Amount						$ 1,100,000			$ 1,100,000
Fair Value						$ 1,110,208			$ 1,089,957
Interest rate (as a percent)						5.125%	5.125%		5.125%
Redemption price as a percentage of principal amount						100.00%
Aggregate principal amount			$ 1,100,000
Term of debt instrument			7 years
Annual Debt Service Requirements						$ 56,375
6 3/4% Senior Notes due 2021
Long-term debt
Carrying Amount						2,000,000	$ 2,000,000		$ 2,000,000
Fair Value						$ 2,109,420	$ 2,045,100		$ 1,974,940
Interest rate (as a percent)					6.75%	6.75%	6.75%		6.75%
Redemption price as a percentage of principal amount						100.00%
Aggregate principal amount					$ 2,000,000
Term of debt instrument					10 years
Annual Debt Service Requirements						$ 135,000
5 7/8% Senior Notes due 2022
Long-term debt
Carrying Amount						2,000,000	$ 2,000,000		$ 2,000,000
Fair Value						$ 2,129,580	$ 2,043,040		$ 1,833,140
Interest rate (as a percent)				5.875%		5.875%	5.875%		5.875%
Redemption price as a percentage of principal amount						100.00%
Aggregate principal amount				$ 1,000,000							$ 1,000,000
Term of debt instrument				10 years
Annual Debt Service Requirements						$ 117,500
5% Senior Notes due 2023
Long-term debt
Carrying Amount						1,500,000	$ 1,500,000		$ 1,500,000
Fair Value						$ 1,543,770	$ 1,495,545		$ 1,247,445
Interest rate (as a percent)						5.00%	5.00%		5.00%	5.00%
Redemption price as a percentage of principal amount						100.00%
Aggregate principal amount										$ 1,500,000
Annual Debt Service Requirements						$ 75,000
5 7/8% Senior Notes due 2024
Long-term debt
Carrying Amount						2,000,000	$ 2,000,000		$ 2,000,000
Fair Value						$ 2,049,080	$ 2,000,340		$ 1,611,960
Interest rate (as a percent)						5.875%	5.875%		5.875%
Redemption price as a percentage of principal amount						100.00%
Aggregate principal amount		$ 2,000,000
Term of debt instrument		10 years
Annual Debt Service Requirements						$ 117,500
7 3/4% Senior Notes due 2026
Long-term debt
Carrying Amount						2,000,000	$ 2,000,000		$ 2,000,000
Fair Value						$ 2,128,900	$ 2,130,880		$ 1,653,720
Interest rate (as a percent)						7.75%	7.75%		7.75%
Aggregate principal amount	$ 2,000,000
Term of debt instrument	10 years
Annual Debt Service Requirements						$ 155,000
Other notes payable
Long-term debt
Carrying Amount						25,996	$ 25,996		$ 10,346
Fair Value						$ 25,996	$ 25,996		$ 10,346

Long-Term Debt - Other Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other long-term debt and capital lease obligations
Total	$ 238,613	$ 77,330
Less current portion	(51,108)	(21,155)
Other long-term debt and capital lease obligations, net of current portion	187,505	56,175
Capital lease obligations.
Other long-term debt and capital lease obligations
Total	212,617	66,984
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6%
Other long-term debt and capital lease obligations
Total	$ 25,996	$ 10,346
Interest rate (as a percent)	6.00%

Long-Term Debt- Capital lease obligations (Details)	12 Months Ended
Long-Term Debt- Capital lease obligations (Details)	Dec. 31, 2019
FSS Satellite Anik F3
Capital lease obligations
Ku-band capacity leased (as a percent)	100.00%
Term of capital lease	15 years
Nimiq 5
Capital lease obligations
Percentage of capacity leased	100.00%
Canadian DBS Satellite Ciel II
Capital lease obligations
Satellite capacity leased (as a percent)	100.00%
Initial term of capital lease	10 years

Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes and Accounting for Uncertainty in Income Taxes
Tax benefits related to credit carryforwards						$ 10,000
Cash paid for income taxes to DISH Network			$ 176,964	$ 152,526	$ 245,028	302,329	$ 408,265
Gain (Loss) Related to Litigation Settlement							(295,695)
Net operating loss carryforwards						0
Current (benefit) provision:
Federal					208,821	273,632	356,759
State					48,417	64,534	54,133
Foreign					6,203	4,616	3,736
Total current (benefit) provision					263,441	342,782	414,628
Deferred (benefit) provision:
Federal					11,243	(25,934)	(308,028)
State					(1,987)	(123)	11,954
Increase (decrease) in valuation allowance					2,054	1,580	(938)
Total deferred (benefit) provision			19,576	(39,649)	11,310	(24,477)	(297,012)
Total (benefit) provision	$ 125,830	$ 64,465	208,334	126,287	274,751	318,305	117,616
Income (loss) before income taxes	$ 500,810	$ 249,833	827,467	489,291	1,102,158	$ 1,291,991	$ 843,061
Income (loss) from foreign operations					$ 13,000
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes
Statutory rate (as a percent)					21.00%	21.00%	35.00%
State income taxes, net of Federal benefit (as a percent)					3.60%	4.40%	4.20%
Tax Reform Act (1)							(34.50%)
Nondeductible/Nontaxable items (2)							11.50%
Other, net (as a percent)					0.30%	(0.80%)	(2.20%)
Total (benefit) provision for income taxes					24.90%	24.60%	14.00%
Impact on Income tax (provision) benefit by remeasurement of deferred tax assets and liabilities						$ 291,000	$ 291,000
Litigation expense							255,000
Deferred tax assets:
NOL, interest, credit and other carryforwards					$ 12,323	10,915
Accrued and prepaid expenses					96,974
Stock-based compensation					19,719	21,198
Deferred revenue					17,238	18,361
Total deferred tax assets					146,254	50,474
Valuation allowance					(9,521)	(7,467)
Deferred tax asset after valuation allowance					136,733	43,007
Deferred tax liabilities:
Depreciation					(458,811)	(345,358)
Accrued and prepaid expenses						(15,537)
FCC authorizations and other intangible amortization					(174,399)	(131,452)
Bases difference in partnerships and other investments					(5,380)	(12,112)
Total deferred tax liabilities					(638,590)	(504,459)
Net deferred tax asset (liability)					(501,857)	(461,452)
Reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities
Balance as of beginning of period			$ 208,152	$ 194,136	194,136	201,162	201,693
Additions based on tax positions related to the current year					3,232	10,550	684
Additions based on tax positions related to prior years					28,137	1,154	4,593
Reductions based on tax positions related to prior years					(13,028)	(4,479)	(1,061)
Reductions based on tax positions related to settlements with taxing authorities					(2,362)	(8,328)	(1,634)
Reductions based on tax positions related to the lapse of the statute of limitations					(1,963)	(5,923)	(3,113)
Balance as of end of period					208,152	194,136	201,162
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate					179,000
Interest and penalty (benefit) expense					7,000	2,000	$ 4,000
Accrued interest and penalties					$ 33,000	$ 26,000

Employee Benefit Plans (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
401(k) Employee Savings Plan
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan	50.00%
Employer maximum annual contribution per employee under 401(k) plan	$ 2,500
Expense recognized related to 401(k) plan
Matching contributions, net of forfeitures, under 401(k) plan	11,181,000	$ 10,300,000	$ 7,070,000
Discretionary stock contributions, net of forfeitures, under 401(k) plan	$ 28,774,000	$ 27,048,000	$ 27,969,000
Employee Stock Purchase Plan
Expense recognized related to 401(k) plan
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP	3 months
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP	$ 25,000
Employee Stock Purchase Plan \| Class A common stock
Expense recognized related to 401(k) plan
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP)	3.8
Shares of common stock available for future grant under stock incentive plans	0.2
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP	85.00%
Number of shares of common stock purchased under ESPP	0.6	0.6	0.3

Stock-Based Compensation (Details) - shares	12 Months Ended
Stock-Based Compensation (Details) - shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock-Based Compensation
Stock Awards Outstanding (in shares)	12,792,812
DISH Network Awards
Stock-Based Compensation
Percentage of stock awards vesting per year (as a percent)	20.00%
Class A common stock \| DISH Network Awards
Stock-Based Compensation
Shares of common stock available for future grant under stock incentive plans	80,300,000
Stock Options \| Maximum
Stock-Based Compensation
Expiration term	10 years
Stock Options \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	12,792,812	13,365,489	8,847,734	7,913,733
Stock Options \| Class A common stock \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	12,800,000
Stock Options \| Long-Term Performance Based Plans \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	7,608,446	8,671,886	5,490,626
Restricted Stock Units
Stock-Based Compensation
Stock Awards Outstanding (in shares)	1,500,000
Restricted Stock Units \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	1,500,000
Restricted Stock Units \| Held by DISH DBS employees \| DISH Network Awards
Stock-Based Compensation
Stock Awards Outstanding (in shares)	1,446,300

Stock-Based Compensation - Stock Options Outstanding And Exercisable Associated With Employees (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 80.00
Number of stock options outstanding (in shares)	12,792,812
Outstanding, Weighted-Average Remaining Contractual Life	6 years 10 months 6 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 41.52
Number of stock options exercisable	2,332,489
Exercisable, Weighted-Average Remaining Contractual Life	6 years 6 months 3 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 44.77
Stock Options \| DISH Network Awards
Exercise prices for stock options outstanding and exercisable:
Number of stock options outstanding (in shares)	12,792,812	13,365,489	8,847,734	7,913,733
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 41.52	$ 41.78	$ 43.90	$ 36.22
Number of stock options exercisable	2,332,489	1,705,103	1,772,608
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 44.93	$ 40.87	$ 35.13
Range Of Exercise Prices $10.01 - $20.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	10.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 20.00
Number of stock options outstanding (in shares)	616,160
Outstanding, Weighted-Average Remaining Contractual Life	6 months
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 15.39
Number of stock options exercisable	16,160
Exercisable, Weighted-Average Remaining Contractual Life	6 months
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 15.62
Range of Exercise Prices $20.01 - $30.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	20.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 30.00
Number of stock options outstanding (in shares)	826,983
Outstanding, Weighted-Average Remaining Contractual Life	3 years 4 months 13 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 26.74
Number of stock options exercisable	124,233
Exercisable, Weighted-Average Remaining Contractual Life	3 years 3 months
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 24.02
Range of Exercise Prices $30.01 - $40.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	30.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 40.00
Number of stock options outstanding (in shares)	6,671,563
Outstanding, Weighted-Average Remaining Contractual Life	7 years 11 months 8 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 35.67
Number of stock options exercisable	1,057,044
Exercisable, Weighted-Average Remaining Contractual Life	7 years 6 months
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 35.52
Range of Exercise Prices $40.01 - $50.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	40.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 50.00
Number of stock options outstanding (in shares)	1,468,628
Outstanding, Weighted-Average Remaining Contractual Life	7 years 7 months 2 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 47.52
Number of stock options exercisable	384,800
Exercisable, Weighted-Average Remaining Contractual Life	7 years 1 month 6 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 47.24
Range of Exercise Prices $50.01 - $60.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	50.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 60.00
Number of stock options outstanding (in shares)	2,154,378
Outstanding, Weighted-Average Remaining Contractual Life	6 years 5 months 19 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 57.50
Number of stock options exercisable	430,952
Exercisable, Weighted-Average Remaining Contractual Life	5 years 8 months 8 days
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 59.90
Range of Exercise Prices $60.01 - $70.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	60.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 70.00
Number of stock options outstanding (in shares)	1,040,100
Outstanding, Weighted-Average Remaining Contractual Life	6 years 3 months 14 days
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 64.22
Number of stock options exercisable	304,300
Exercisable, Weighted-Average Remaining Contractual Life	5 years 6 months
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 65.23
Range of Exercise Prices $70.01 - $70.00
Exercise prices for stock options outstanding and exercisable:
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	70.01
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 80.00
Number of stock options outstanding (in shares)	15,000
Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 72.89
Number of stock options exercisable	15,000
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 72.89

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock option activity
Total options outstanding, end of period (in shares)	12,792,812
Exercisable at the end of the period (in shares)	2,332,489
Weighted-Average Exercise Price
Total options outstanding at the end of the period (in dollars per share)	$ 41.52
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 44.77
Stock Options \| DISH Network Awards
Stock option activity
Total options outstanding, beginning of period (in shares)	13,365,489	8,847,734	7,913,733
Granted (in shares)	1,396,750	7,026,512	3,468,626
Exercised (in shares)	(713,411)	(267,905)	(505,125)
Forfeited and cancelled (in shares)	(1,256,016)	(2,240,852)	(2,029,500)
Total options outstanding, end of period (in shares)	12,792,812	13,365,489	8,847,734
Exercisable at the end of the period (in shares)	2,332,489	1,705,103	1,772,608
Weighted-Average Exercise Price
Total options outstanding, beginning of the period (in dollars per share)	$ 41.78	$ 43.90	$ 36.22
Granted (in dollars per share)	33.52	38.44	59.66
Exercised (in dollars per share)	27.46	16.43	28.73
Forfeited and cancelled (in dollars per share)	43.40	39.73	44.64
Total options outstanding at the end of the period (in dollars per share)	41.52	41.78	43.90
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 44.93	$ 40.87	$ 35.13
Stock Options \| DISH Network Awards \| Long-Term Performance Based Plans
Stock option activity
Total options outstanding, beginning of period (in shares)	8,671,886	5,490,626
Total options outstanding, end of period (in shares)	7,608,446	8,671,886	5,490,626
Weighted-Average Exercise Price
Total options outstanding, beginning of the period (in dollars per share)	$ 39.95	$ 42.81
Total options outstanding at the end of the period (in dollars per share)	$ 39.78	$ 39.95	$ 42.81

Stock-Based Compensation - Tax Benefits From Stock Awards Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Options
Stock-Based Compensation
Tax benefit from stock awards exercised	$ 1,239	$ 1,664	$ 9,347

Stock-Based Compensation - Aggregate Intrinsic Value Of Stock Options (Details) - Stock Options - DISH Network Awards $ in Thousands	Dec. 31, 2019 USD ($)
Aggregate intrinsic value
Aggregate intrinsic value of stock options outstanding	$ 21,829
Aggregate intrinsic value of stock options exercisable	$ 2,136

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - DISH Network Awards - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock Units
Restricted stock unit activity
Total restricted stock units outstanding, beginning of period (in shares)	1,718,945	2,484,720	1,336,000
Granted (in shares)			1,871,375
Vested (in shares)	(9,565)	(10,475)	(14,845)
Forfeited and cancelled (in shares)	(245,730)	(755,300)	(707,810)
Total restricted stock units outstanding, end of period (in shares)	1,463,650	1,718,945	2,484,720
Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period (in dollars per share)	$ 52.16	$ 51.16	$ 32.11
Granted (in dollars per share)			63.87
Vested (in dollars per share)	63.49	63.49	62.58
Forfeited and cancelled (in dollars per share)	59.86	48.51	48.59
Total restricted stock units outstanding, end of period (in dollars per share)	$ 50.82	$ 52.16	$ 51.16
Performance Based Restricted Stock Units
Restricted stock unit activity
Total restricted stock units outstanding, beginning of period (in shares)	1,689,350	2,435,500
Total restricted stock units outstanding, end of period (in shares)	1,446,300	1,689,350	2,435,500
Weighted- Average Grant Date Fair Value
Total restricted stock units outstanding, beginning of period (in dollars per share)	$ 51.97	$ 50.91
Total restricted stock units outstanding, end of period (in dollars per share)	$ 50.66	$ 51.97	$ 50.91

Stock-Based Compensation - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2016
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 13,853	$ 35,521	$ 29,941
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	12,792,812
Weighted-Average Exercise Price (in dollars per share)	$ 41.52
Unrecognized compensation expense, weighted average period	2 years 9 months 18 days
Long-Term Performance Based Plans
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 431	$ 22,185	17,868
2013 LTIP
Share-based compensation additional disclosures
Portion vested (as a percent)		20.00%
Percentage of performance goals probable of achievement				30.00%	10.00%	20.00%
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	(1,021)	$ (2,471)	$ (321)
2017 LTIP
Share-based compensation additional disclosures
Percentage of performance goals probable of achievement		75.00%	75.00%
Non-cash stock-based compensation expense	13,000
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Non-cash, stock-based compensation expense recognized	$ (12,902)	$ 3,293	$ 10,640
2019 LTIP
Share-based compensation additional disclosures
Percentage of performance goals probable of achievement	90.00%	82.00%
Percentage of awards vested	18.00%
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 14,946	$ 3,475
Other Employee Performance Awards
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	(592)	$ 17,888	$ 7,549
Non-Performance Based Stock Awards
Outstanding awards pursuant to performance-based stock incentive plans
Unrecognized compensation expense	26,000
DISH Network Awards \| 2013 LTIP
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Estimated contingent expense subsequent to 2020	29,766
Total estimated remaining expense over the term of plan	29,766
DISH Network Awards \| 2017 LTIP
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Estimated contingent expense subsequent to 2020	29,341
Total estimated remaining expense over the term of plan	29,341
DISH Network Awards \| 2019 LTIP
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Expense estimated to be recognized during 2020	10,541
Estimated contingent expense subsequent to 2020	12,682
Total estimated remaining expense over the term of plan	23,223
DISH Network Awards \| Other Employee Performance Awards
Estimated Remaining Non-Cash, Stock-Based Compensation Expense
Estimated contingent expense subsequent to 2020	61,322
Total estimated remaining expense over the term of plan	$ 61,322
Stock Options \| DISH Network Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	12,792,812	13,365,489	8,847,734				7,913,733
Weighted-Average Exercise Price (in dollars per share)	$ 41.52	$ 41.78	$ 43.90				$ 36.22
Stock Options \| DISH Network Awards \| Long-Term Performance Based Plans
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	7,608,446	8,671,886	5,490,626
Weighted-Average Exercise Price (in dollars per share)	$ 39.78	$ 39.95	$ 42.81
Stock Options \| DISH Network Awards \| 2013 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	875,000
Weighted-Average Exercise Price (in dollars per share)	$ 41.08
Stock Options \| DISH Network Awards \| 2017 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	2,083,071
Weighted-Average Exercise Price (in dollars per share)	$ 57.12
Stock Options \| DISH Network Awards \| 2019 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	3,510,375
Weighted-Average Exercise Price (in dollars per share)	$ 35.16
Stock Options \| DISH Network Awards \| Other Employee Performance Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,140,000
Weighted-Average Exercise Price (in dollars per share)	$ 21.31
Restricted Stock Units
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,500,000
Restricted Stock Units \| DISH Network Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,500,000
Restricted Stock Units \| DISH Network Awards \| 2013 LTIP
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	437,500
Restricted Stock Units \| DISH Network Awards \| Other Employee Performance Awards
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,008,800
Restricted Stock Units \| DISH Network Awards \| Held by DISH DBS employees
Outstanding awards pursuant to performance-based stock incentive plans
Performance Based Stock Options (in shares)	1,446,300
Subscriber-related
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 509	$ 1,150	$ 1,562
Satellite and transmission
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	329	262	1,761
General and administrative
Recognized non-cash stock-based compensation expense
Non-cash stock-based compensation expense recognized	$ 13,015	$ 34,109	$ 26,618

Stock-Based Compensation - Fair Value Of Stock Options Granted (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Black-Scholes option valuation model, assumptions
Risk-free interest rate, low end of range (as a percent)	1.51%	2.09%	1.34%
Risk-free interest rate, high end of range (as a percent)	2.53%	2.98%	2.29%
Volatility factor, low end of range (as a percent)	28.86%	23.33%	22.25%
Volatility factor, high end of range (as a percent)	32.08%	30.22%	26.15%
Maximum
Black-Scholes option valuation model, assumptions
Expected term of options	5 years 6 months	5 years 6 months	5 years 6 months
Weighted-average fair value of options granted (in dollars per share)	$ 12.45	$ 12.53	$ 16.69
Minimum
Black-Scholes option valuation model, assumptions
Expected term of options	4 years 3 months 18 days	2 years 9 months 18 days	3 years 9 months 18 days
Weighted-average fair value of options granted (in dollars per share)	$ 7.58	$ 7.10	$ 11.95

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Commitment and Contingencies
Total	$ 15,510,845
2020	3,309,741
2021	2,896,441
2022	2,699,501
2023	1,904,406
2024	2,334,303
Thereafter	2,366,453
Long-term debt obligations
Commitment and Contingencies
Total	10,625,996
2020	1,102,430
2021	2,002,554
2022	2,002,683
2023	1,502,820
2024	2,002,964
Thereafter	2,012,545
Interest Expense On Long Term Debt [Member]
Commitment and Contingencies
Total	2,524,898
2020	629,410
2021	533,599
2022	465,969
2023	310,832
2024	273,188
Thereafter	311,900
Finance Lease Obligations [Member]
Commitment and Contingencies
Total	212,617
2020	48,678
2021	53,150
2022	41,666
2023	38,018
2024	31,105
Interest expense on finanace lease obligations
Commitment and Contingencies
Total	45,183
2020	17,607
2021	13,129
2022	8,561
2023	4,844
2024	1,042
Satellite-related obligations
Commitment and Contingencies
Total	219,019
2020	71,931
2021	65,663
2022	41,291
2023	23,321
2024	16,813
Operating lease obligations
Commitment and Contingencies
Total	641,792
2020	239,660
2021	199,062
2022	127,300
2023	24,571
2024	9,191
Thereafter	42,008
Purchase obligations
Commitment and Contingencies
Total	1,241,340
2020	1,200,025
2021	29,284
2022	$ 12,031

Commitments and Contingencies - Narrative (Details) - USD ($)					6 Months Ended	12 Months Ended			144 Months Ended	150 Months Ended
	Jun. 05, 2017	May 22, 2017	Sep. 23, 2016	Dec. 23, 2013	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies
Term barred from conducting any outbound telemarketing	2 years
Phase two expected expenditures						$ 10,000,000,000
Litigation expense (Note 12)								$ 295,695,000
Unrecognized tax benefits						208,152,000	$ 194,136,000	201,162,000	$ 208,152,000		$ 201,693,000
Total rent expense for operating leases						$ 357,000,000	449,000,000	$ 473,000,000
Other accrued expenses
Commitments and Contingencies
Claim amount		$ 1,200
Maximum
Commitments and Contingencies
Term of programming contracts						10 years
Minimum
Commitments and Contingencies
Term of programming contracts						1 year
Dish Network
Commitments and Contingencies
Payment to acquire certain wireless licenses and related assets						$ 11,000,000,000	11,000,000,000		11,000,000,000	$ 11,000,000,000
Dish Network \| Maximum
Commitments and Contingencies
Phase one expected expenditures						500,000,000
Dish Network \| Minimum
Commitments and Contingencies
Phase one expected expenditures						250,000,000
Northstar Spectrum And SNR Holdco
Commitments and Contingencies
Non-controlling investments						10,000,000,000			10,000,000,000			$ 10,000,000,000
Northstar Spectrum And SNR Holdco \| DISH Network L.L.C.
Commitments and Contingencies
Non-controlling investments						10,000,000,000			10,000,000,000
Northstar Spectrum And SNR Holdco \| Dish Network
Commitments and Contingencies
Non-controlling investments					$ 10,000,000,000	$ 10,000,000,000			10,000,000,000	10,000,000,000
Northstar Wireless or Northstar Spectrum \| AWS 3 Auction \| Vermont National Telephone Company
Commitments and Contingencies
Bidding credit credits			25.00%
Northstar Wireless or Northstar Spectrum \| AWS 3 Auction \| Vermont National Telephone Company \| Maximum
Commitments and Contingencies
Claim amount			$ 11,000
Northstar Wireless or Northstar Spectrum \| AWS 3 Auction \| Vermont National Telephone Company \| Minimum
Commitments and Contingencies
Claim amount			$ 5,500
Krakauer Action
Commitments and Contingencies
Claim amount							10,760,000
Krakauer Action \| Other accrued expenses
Commitments and Contingencies
Loss Contingency Accrual							61,000,000
Telemarketing Litigation
Commitments and Contingencies
Demonstration requirements period	5 years
Loss Contingency Accrual	$ 280,000,000
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services					5 years	5 years
Telemarketing Litigation \| DISH Network L.L.C.
Commitments and Contingencies
Claim amount				$ 270,000,000		$ 270,000,000
Telemarketing Litigation \| Other accrued expenses
Commitments and Contingencies
Loss Contingency Accrual					$ 280,000,000	280,000,000	$ 280,000,000		280,000,000	280,000,000
ClearPlay, Inc.
Commitments and Contingencies
Loss contingency					$ 543,000,000	$ 543,000,000			$ 543,000,000	$ 543,000,000

Commitments and Contingencies - Narrative Part 2 (Details)								1 Months Ended	3 Months Ended				6 Months Ended		12 Months Ended			144 Months Ended	150 Months Ended
	Sep. 27, 2019 USD ($)	Apr. 05, 2018 USD ($)	Oct. 06, 2017 USD ($)	Jun. 05, 2017 USD ($)	May 22, 2017 USD ($)	Sep. 23, 2016 USD ($)	Feb. 12, 2015 USD ($)	Feb. 28, 2015 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($)	Oct. 01, 2018 USD ($)
Loss contingencies
Unrecognized Tax Benefits												$ 201,693,000			$ 208,152,000	$ 194,136,000	$ 201,162,000	$ 208,152,000
Total investment																	90,381,000
Dividend paid to DOC							$ 8,250,000,000	$ 8,250,000,000
Interest on loss contingency																				$ 24,000,000
Litigation expense																	255,000,000
General and administrative expenses									$ 156,574,000	$ 187,930,000			$ 341,498,000	$ 374,507,000	732,589,000	692,881,000	669,934,000
Dish Network
Loss contingencies
Total investment													$ 21,000,000,000					21,000,000,000
Payment to acquire certain wireless licenses and related assets															$ 11,000,000,000	11,000,000,000		11,000,000,000	$ 11,000,000,000
Other accrued expenses
Loss contingencies
Claim amount					$ 1,200
Litigation expense											$ (41,000,000)
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		5 years
Number of years for which the company will be barred from accepting orders from that independent third-party retailer if the company fails to prove that a particular independent third-party retailer meets the Demonstration Requirements				2 years
Litigation expense											$ (255,000,000)						$ (25,000,000)
Litigation accrual				$ 280,000,000
Telemarketing Litigation \| Other accrued expenses
Loss contingencies
Litigation accrual									$ 280,000,000				$ 280,000,000		$ 280,000,000	280,000,000		$ 280,000,000	$ 280,000,000
Krakauer Action
Loss contingencies
Claim amount																10,760,000
Litigation expense												$ (20,000,000)
Krakauer Action \| Other accrued expenses
Loss contingencies
Litigation accrual																$ 61,000,000
Turner Network Sales
Loss contingencies
Claim amount			$ 159,000,000
Interest on loss contingency	$ 30,000,000		$ 24,000,000
Loss contingency	118,000,000
License fee payments	$ 20,000,000
Telemarketing Litigation
Loss contingencies
Judgment in favor of the court		$ 61,000,000
Do Not Call Litigation
Loss contingencies
Number of telemarketing calls \| item															51,119
Litigation per call damages															$ 400
AWS 3 Auction \| Northstar Wireless or Northstar Spectrum \| Vermont National Telephone Company
Loss contingencies
Bidding Credit						$ 3,300,000,000
Loss Contingency Recovery Amount						10,000,000,000
AWS 3 Auction \| Maximum \| Northstar Wireless or Northstar Spectrum \| Vermont National Telephone Company
Loss contingencies
Claim amount						11,000
AWS 3 Auction \| Minimum \| Northstar Wireless or Northstar Spectrum \| Vermont National Telephone Company
Loss contingencies
Claim amount						$ 5,500
Prepaid Business Sale [Member]
Loss contingencies
Total investment															1,400,000,000
Payment to acquire certain wireless licenses and related assets													$ 3,590,000,000		$ 3,590,000,000

Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue
Revenue	$ 3,148,531	$ 3,166,599	$ 6,316,313	$ 6,304,599	$ 12,622,893	$ 13,362,139	$ 14,007,511
United States
Disaggregation of Revenue
Revenue	3,144,992	3,155,828	6,302,296	6,282,937	12,581,855	13,319,091	13,967,694
Canada and Mexico
Disaggregation of Revenue
Revenue	$ 3,539	$ 10,771	$ 14,017	$ 21,662	$ 41,038	$ 43,048	$ 39,817

Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue
Revenue	$ 3,148,531	$ 3,166,599	$ 6,316,313	$ 6,304,599	$ 12,622,893	$ 13,362,139	$ 14,007,511
Pay-TV video and related revenue
Disaggregation of Revenue
Revenue	3,117,334	3,117,066	6,248,234	6,215,002	12,436,637	13,197,994	13,877,196
Equipment sales and other revenue
Disaggregation of Revenue
Revenue	$ 31,197	$ 49,533	$ 68,079	$ 89,597	$ 186,256	$ 164,145	$ 130,315

Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 19,280	$ 16,956	$ 15,056	$ 17,440
Charged to Cost and Expenses	51,808	69,866	98,461	124,143
Deductions	(29,900)	(67,542)	(96,561)	(126,527)
Balance at End of Period	41,188	19,280	16,956	$ 15,056
Balance at Beginning of Period	609,054	624,626
Recognition of unearned revenue	(2,951,822)	(7,086,252)
Deferral of revenue	2,925,648	7,070,680
Balance at End of Period	$ 582,880	$ 609,054	$ 624,626
Remaining performance obligations	true	true

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended										6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data (Unaudited)
Total revenue	$ 3,148,531		$ 3,196,012	$ 3,122,282	$ 3,166,599	$ 3,138,000	$ 3,251,166	$ 3,334,444	$ 3,393,307	$ 3,383,222	$ 6,316,313	$ 6,304,599	$ 12,622,893	$ 13,362,139	$ 14,007,511
Operating income (loss)	663,897		515,999	438,498	435,966	430,735	466,448	542,439	549,502	508,121	1,171,099	866,701	1,821,198	2,066,510	1,609,876
Net income (loss) attributable to DISH DBS	$ 374,980	$ 244,153	$ 259,545	$ 204,858	$ 185,368	$ 177,760	$ 200,132	$ 281,272	$ 285,691	$ 204,192	$ 619,133	$ 363,128	$ 827,531	$ 971,287	$ 723,526

Related Party Transactions (Details) $ in Thousands								1 Months Ended				3 Months Ended			6 Months Ended		12 Months Ended
Related Party Transactions (Details) $ in Thousands	May 31, 2017	Feb. 12, 2015 USD ($)	Dec. 21, 2012	Dec. 21, 2012	Jan. 21, 2012	Jan. 02, 2012 item	Jan. 02, 2012	May 31, 2017	Jul. 31, 2016	Feb. 28, 2015 USD ($)	May 31, 2012	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2013 item	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2009 item	Dec. 31, 2008 item
Related Party Transaction [Line Items]
Payments of Dividends \| $		$ 8,250,000								$ 8,250,000
Satellite and transmission expenses \| $												$ 117,912	$ 144,983		$ 239,973	$ 299,880	$ 555,803	$ 637,160	$ 717,231
Net book value of asset \| $																	9,070
EchoStar XVI
Related Party Transaction [Line Items]
Agreement Renewal Option Term			5 years		5 years
TT&C Agreement
Related Party Transaction [Line Items]
Purchase of renewal of agreement						1 year
Number of automatic renewal period						4
EchoStar
Related Party Transaction [Line Items]
Satellite and transmission expenses \| $												1,000	72,000		$ 1,000	143,000	198,000	309,000	346,000
EchoStar \| EchoStar XVI
Related Party Transaction [Line Items]
Agreement term from commencement of service date			4 years	4 years
Agreement Renewal Option Term									1 year
Additional term of renewal option	5 years		5 years	5 years				5 years	1 year
EchoStar \| Telesat Transponder Agreement
Related Party Transaction [Line Items]
Agreement term																				15 years
Agreement Renewal Option Term															1 year
Agreement term with third party																				15 years
Number of DBS transponders available to receive services																				32
EchoStar \| DISH Nimiq 5 Agreement
Related Party Transaction [Line Items]
Agreement term																				10 years
Number of DBS transponders currently used																				32
EchoStar \| QuetzSat-1 Lease Agreement
Related Party Transaction [Line Items]
Agreement term with third party																					10 years
Number of DBS transponders available to receive services																					32
Number of DBS transponders currently used																					24
Number of transponders subleased														5
EchoStar \| 103 degree orbital location
Related Party Transaction [Line Items]
Agreement term											10 years
EchoStar \| TT&C Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity						12 months	12 months
Number of automatic renewal period						4
Dish Network
Related Party Transaction [Line Items]
Satellite and transmission expenses \| $												$ 56,000	$ 8,000		$ 112,000	$ 25,000	$ 93,000	$ 67,000	$ 67,000

Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Satellite and transmission expenses	$ 117,912	$ 144,983	$ 239,973	$ 299,880	$ 555,803	$ 637,160	$ 717,231
Trade accounts receivable	514,086		514,086		568,679	623,602
Trade accounts payable	338,109		338,109		266,417	217,268
Broadband, Wireless and Other Segments
Related Party Transaction [Line Items]
Expenses associated with services	18,000	14,000	39,000	26,000	54,000	40,000	48,000
Office Space from DISH Network
Related Party Transaction [Line Items]
Expenses associated with services	2,000	0
Office Space from DISH Network \| Maximum
Related Party Transaction [Line Items]
Expenses associated with services					3,000
EchoStar
Related Party Transaction [Line Items]
Satellite and transmission expenses	1,000	72,000	1,000	143,000	198,000	309,000	346,000
Trade accounts receivable	4,000		4,000		1,000	4,000
Trade accounts payable	14,000		14,000		3,000	6,000
Equipment sales and other revenue	$ 1,000	$ 1,000	$ 2,000	$ 3,000	$ 6,000	$ 8,000	$ 3,000

Related Party Transactions - Narrative Part 2 (Details) $ in Thousands		1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 01, 2017 item	Sep. 30, 2019	Aug. 31, 2017 item	Jan. 31, 2012 item	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2012 item	Dec. 31, 2009
Related Party Transaction [Line Items]
Subscriber acquisition costs \| $					$ 1,863,895	$ 1,974,439	$ 3,797,718	$ 3,950,875	$ 7,768,732	$ 8,392,150	$ 8,692,676
100 Inverness Lease Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity	180 days
EchoStar \| El Paso Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options				4
Agreement Renewal Option Term				3 years
EchoStar \| El Paso Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options												4
Agreement Renewal Option Term												3 years
EchoStar \| Professional Services Agreement \| Dish Network
Related Party Transaction [Line Items]
Agreement term													1 year
Automatic renewal period													1 year
Minimum notice period for termination of agreement													60 days
EchoStar \| 90 Inverness Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options	4
Agreement Renewal Option Term	3 years
EchoStar \| 90 Inverness Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options	4
EchoStar \| Cheyenne Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of successive one year renewal options	12
Agreement Renewal Option Term	1 year
Required notice period for termination by the reporting entity	180 days
EchoStar \| Cheyenne Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of successive one year renewal options	12
Agreement Renewal Option Term	1 year
Required notice period for termination by the reporting entity	180 days
EchoStar \| Gilbert Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Agreement Renewal Option Term	1 year
EchoStar \| Gilbert Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of successive one year renewal options	12
EchoStar \| Collocation And Antenna Space Agreements
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity	180 days
HNS \| Collocation And Antenna Space Agreements
Related Party Transaction [Line Items]
Agreement Renewal Option Term		1 year
HNS \| Collocation And Antenna Space Agreements \| Dish Network
Related Party Transaction [Line Items]
Agreement Renewal Option Term		1 year	3 years
HNS \| Collocation And Antenna Space Agreements \| Dish Network \| Minimum
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity		90 days
HNS \| Collocation And Antenna Space Agreements \| Dish Network \| Maximum
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity		120 days
HNS \| Collocation And Antenna Space Agreements \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options			4
Agreement Renewal Option Term			3 years

Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 01, 2017	Dec. 31, 2018	Jun. 30, 2017	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2009
Related Party Transaction [Line Items]
General and administrative expenses				$ 156,574	$ 187,930	$ 341,498	$ 374,507	$ 732,589	$ 692,881	$ 669,934
Meridian Lease Agreement
Related Party Transaction [Line Items]
Additional term of renewal option		1 year						1 year
Santa Fe Lease Agreement
Related Party Transaction [Line Items]
Additional term of renewal option		1 year						1 year	1 year
EchoStar
Related Party Transaction [Line Items]
General and administrative expenses				$ 3,000	$ 6,000	$ 7,000	$ 11,000	$ 20,000	$ 21,000	$ 29,000
EchoStar \| Dish Network \| American Fork Occupancy License Agreement
Related Party Transaction [Line Items]
Term of renewal option exercised			5 years
Dish Network \| EchoStar \| 90 Inverness Lease Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term	3 years
Dish Network \| EchoStar \| Gilbert Lease Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term	1 year
Dish Network \| EchoStar \| American Fork Occupancy License Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term			5 years
Dish Network \| EchoStar \| Professional Services Agreement
Related Party Transaction [Line Items]
Minimum notice period for termination of agreement											60 days
Minimum notice period for termination of a specific service											30 days
Agreement term											1 year

Related Party Transactions - Narrative Part 4 (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2011	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Cost of sales - equipment and other		$ 23,660	$ 49,603	$ 54,474	$ 89,944	$ 172,700	$ 143,671	$ 95,116
EchoStar \| Patent Cross-License Agreements \| Maximum
Related Party Transaction [Line Items]
Payments to third party by related party	$ 10,000
Payments to third party by related party under extension option	3,000
EchoStar \| Patent Cross-License Agreements \| Dish Network \| Maximum
Related Party Transaction [Line Items]
Payments to third party by related party	10,000
Payments to third party by related party under extension option	$ 3,000

Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Aug. 19, 2016	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Feb. 28, 2017
Related Party Transaction [Line Items]
Sales			$ 1,288	$ 1,412	$ 2,669	$ 2,816
Rovi License Agreement
Related Party Transaction [Line Items]
Agreement term		10 years
Payments to Related Parties					0		$ 0
Hughes Broadband Sales Agency Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity	90 days
Agreement term	5 years
Automatic renewal period	1 year
Broadband equipment purchased from related party			3,000	3,000	7,000	8,000	$ 14,000	$ 21,000	$ 22,000
NagraStar
Related Party Transaction [Line Items]
Interest on equity method investment							50.00%			50.00%
Purchases from NagraStar			13,259	14,355	27,351	28,714	$ 56,284	72,162	71,167
Amounts payable to NagraStar			17,930		17,930		9,630	9,871
Commitments to NagraStar			$ 4,159		$ 4,159		$ 4,893	3,888
Dish Mexico
Related Party Transaction [Line Items]
Interest on equity method investment			49.00%		49.00%		49.00%
Sales							$ 5,620	6,653	5,885
Amounts receivable			$ 2,116		$ 2,116		1,191	1,370
Dish Mexico \| Digital receivers and related components
Related Party Transaction [Line Items]
Sales								1,227	1,891
Dish Mexico \| Uplink services
Related Party Transaction [Line Items]
Sales			$ 1,288	$ 1,412	$ 2,669	$ 2,816	$ 5,620	$ 5,426	$ 3,994

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 26,819		$ 17,426			$ 129,498
Marketable investment securities	31					149,740
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $41,188 and $19,280, respectively	514,086		568,679			623,602
Inventory	301,408		321,983			290,697
Other current assets	179,818		164,767			234,054
Total current assets	1,022,162		1,072,855			1,427,591
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities	61,349		61,067			67,597
Property and equipment, net	1,661,928		1,751,573			1,377,949
FCC authorizations	611,794		611,794			637,346
Other investment securities	96,886		106,874			108,308
Operating lease assets	471,987		553,576
Other noncurrent assets, net	230,230		228,820			286,753
Total noncurrent assets	3,134,174		3,313,704			2,477,953
Total assets	4,156,336		4,386,559			3,905,544
Current Liabilities:
Trade accounts payable	338,109		266,417			217,268
Advances from affiliates			82,415
Deferred revenue and other	652,866		674,079			644,920
Accrued programming	1,683,468		1,308,531			1,474,207
Accrued interest	180,248		189,039			222,996
Other accrued expenses	893,149		918,333			756,534
Current portion of long-term debt and finance lease obligations	2,053,291		1,151,108			1,338,527
Total current liabilities	5,801,131		4,589,922			4,654,452
Long-Term Obligations, Net of Current Portion:
Long-term debt and finance lease obligations, net of current portion	7,647,933		9,671,255			10,632,960
Deferred tax liabilities	521,433		501,857			461,452
Operating lease liabilities	267,154		350,155
Long-term deferred revenue and other long-term liabilities	224,210		207,992			198,840
Total long-term obligations, net of current portion	8,660,730		10,731,259			11,293,252
Total liabilities	14,461,861		15,321,181			15,947,704
Commitments and Contingencies (Note 9)
Stockholder's Equity (Deficit):
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding
Additional paid-in capital	1,443,022		1,432,736			1,152,369
Accumulated other comprehensive income (loss)	(771)		(449)			(376)
Accumulated earnings (deficit)	(11,747,776)		(12,366,909)			(13,194,440)
Total stockholder's equity (deficit)	(10,305,525)	$ (10,683,879)	(10,934,622)	$ (11,388,977)	$ (11,853,360)	(12,042,160)	$ (13,046,663)	$ (13,792,150)
Total liabilities and stockholder's equity (deficit)	$ 4,156,336		$ 4,386,559			$ 3,905,544

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Allowance for credit losses	$ 41,188	$ 19,280	$ 16,956
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000	1,000,000
Common stock, shares issued	1,015	1,015	1,015
Common stock, shares outstanding	1,015	1,015	1,015

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue:
Total revenue	$ 3,148,531	$ 3,166,599	$ 6,316,313	$ 6,304,599	$ 12,622,893	$ 13,362,139	$ 14,007,511
Costs and Expenses (exclusive of depreciation shown separately below - Note 6):
Subscriber-related expenses	1,863,895	1,974,439	3,797,718	3,950,875	7,768,732	8,392,150	8,692,676
Satellite and transmission expenses	117,912	144,983	239,973	299,880	555,803	637,160	717,231
Cost of sales - equipment and other	23,660	49,603	54,474	89,944	172,700	143,671	95,116
Subscriber acquisition costs:
Cost of sales - subscriber promotion subsidies	1,159	3,007	10,048	9,524	29,592	50,253	72,955
Other subscriber acquisition costs	109,055	108,289	222,957	188,764
Subscriber acquisition advertising	89,510	126,782	220,592	233,689
Total subscriber acquisition costs	199,724	238,078	453,597	431,977	994,523	769,307	1,185,211
General and administrative expenses	156,574	187,930	341,498	374,507	732,589	692,881	669,934
Depreciation and amortization (Note 6)	122,869	135,600	257,954	290,715	577,348	660,460	741,772
Total costs and expenses	2,484,634	2,730,633	5,145,214	5,437,898	10,801,695	11,295,629	12,397,635
Operating income (loss)	663,897	435,966	1,171,099	866,701	1,821,198	2,066,510	1,609,876
Other Income (Expense):
Interest income	1,112	5,593	1,962	8,528	30,041	8,923	9,855
Interest expense, net of amounts capitalized	(164,047)	(194,857)	(346,387)	(390,502)	(756,690)	(792,436)	(865,181)
Other, net	(152)	3,131	793	4,564	7,609	8,994	88,511
Total other income (expense)	(163,087)	(186,133)	(343,632)	(377,410)	(719,040)	(774,519)	(766,815)
Income (loss) before income taxes	500,810	249,833	827,467	489,291	1,102,158	1,291,991	843,061
Income tax (provision) benefit, net	(125,830)	(64,465)	(208,334)	(126,287)	(274,751)	(318,305)	(117,616)
Net income (loss)	374,980	185,368	619,133	363,004	827,407	973,686	725,445
Less: Net income (loss) attributable to noncontrolling interests, net of tax				(124)	(124)	2,399	1,919
Net income (loss) attributable to DISH DBS	374,980	185,368	619,133	363,128	827,531	971,287	723,526
Comprehensive Income (Loss):
Net income (loss)	374,980	185,368	619,133	363,004	827,407	973,686	725,445
Other comprehensive income (loss):
Foreign currency translation adjustments	30	138	(322)	185	(133)	(1,343)	1,027
Unrealized holding gains (losses) on available-for-sale debt securities	11	102		254	81	69	(33)
Deferred income tax (expense) benefit, net		(27)		(65)	(21)	(37)	57
Total other comprehensive income (loss), net of tax	41	213	(322)	374	(73)	(1,311)	1,051
Comprehensive income (loss)	375,021	185,581	618,811	363,378	827,334	972,375	726,496
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax				(124)	(124)	2,399	1,919
Comprehensive income (loss) attributable to DISH DBS	375,021	185,581	618,811	363,502	827,458	969,976	724,577
Subscriber-related
Revenue:
Total revenue	3,117,334	3,117,066	6,248,234	6,215,002	12,436,637	13,197,994	13,877,196
Equipment sales and other revenue
Revenue:
Total revenue	$ 31,197	$ 49,533	$ 68,079	$ 89,597	$ 186,256	$ 164,145	$ 130,315

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Earnings (Deficit)	Noncontrolling Interest	Total
Balance at Dec. 31, 2016	$ 1,097,606	$ (116)	$ (14,891,573)	$ 1,933	$ (13,792,150)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	29,941				29,941
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		(33)			(33)
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		57			57
Foreign currency translation		1,027			1,027
Net income (loss) attributable to noncontrolling interests				1,919	1,919
Net income (loss) attributable to DISH DBS			723,526		723,526
Balance at Dec. 31, 2017	1,116,848	935	(14,168,047)	3,601	(13,046,663)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	35,521				35,521
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		69			69
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		(37)			(37)
Foreign currency translation		(1,343)			(1,343)
Net income (loss) attributable to noncontrolling interests				2,399	2,399
Net income (loss) attributable to DISH DBS			971,287		971,287
Balance at Dec. 31, 2018	1,152,369	(376)	(13,194,440)	287	(12,042,160)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	11,003				11,003
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		152			152
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		(38)			(38)
Foreign currency translation		47			47
Net income (loss) attributable to noncontrolling interests				(124)	(124)
Net income (loss) attributable to DISH DBS			177,760		177,760
Balance at Mar. 31, 2019	1,163,372	(215)	(13,016,680)	163	(11,853,360)
Balance at Dec. 31, 2018	1,152,369	(376)	(13,194,440)	287	(12,042,160)
Increase (Decrease) in Stockholder's Equity
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities					(65)
Net income (loss) attributable to DISH DBS					363,128
Balance at Jun. 30, 2019	1,442,337	(2)	(12,831,312)		(11,388,977)
Balance at Dec. 31, 2018	1,152,369	(376)	(13,194,440)	287	(12,042,160)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	13,853				13,853
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		81			81
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		(21)			(21)
Foreign currency translation		(133)			(133)
Satellite and Spectrum Transaction, net of deferred taxes	267,437			(163)	267,274
Net income (loss) attributable to noncontrolling interests				(124)	(124)
Net income (loss) attributable to DISH DBS			827,531		827,531
Balance at Dec. 31, 2019	1,432,736	(449)	(12,366,909)		(10,934,622)
Balance at Mar. 31, 2019	1,163,372	(215)	(13,016,680)	163	(11,853,360)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	11,528				11,528
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		102			102
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities		(27)			(27)
Foreign currency translation		138			138
Satellite and Spectrum Transaction, net of deferred taxes	267,437			$ (163)	267,274
Net income (loss) attributable to DISH DBS			185,368		185,368
Balance at Jun. 30, 2019	1,442,337	(2)	(12,831,312)		(11,388,977)
Balance at Dec. 31, 2019	1,432,736	(449)	(12,366,909)		(10,934,622)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	6,953				6,953
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		(11)			(11)
Foreign currency translation		(352)			(352)
Net income (loss) attributable to DISH DBS			244,153		244,153
Balance at Mar. 31, 2020	1,439,689	(812)	(12,122,756)		(10,683,879)
Balance at Dec. 31, 2019	1,432,736	(449)	(12,366,909)		(10,934,622)
Increase (Decrease) in Stockholder's Equity
Net income (loss) attributable to DISH DBS					619,133
Balance at Jun. 30, 2020	1,443,022	(771)	(11,747,776)		(10,305,525)
Balance at Mar. 31, 2020	1,439,689	(812)	(12,122,756)		(10,683,879)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	3,333				3,333
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		11			11
Foreign currency translation		30			30
Net income (loss) attributable to DISH DBS			374,980		374,980
Balance at Jun. 30, 2020	$ 1,443,022	$ (771)	$ (11,747,776)		$ (10,305,525)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows From Operating Activities:
Net income (loss)	$ 619,133	$ 363,004
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	257,954	290,715
Realized and unrealized losses (gains) on investments		(3,160)
Non-cash, stock-based compensation	10,286	22,531
Deferred tax expense (benefit)	19,576	(39,649)
Allowance for credit losses and allowance for doubtful accounts, respectively	21,908	1,119
Other, net	25,554	(30,509)
Changes in current assets and current liabilities, net	405,709	160,594
Net cash flows from operating activities	1,360,120	764,645
Cash Flows From Investing Activities:
(Purchases) Sales and maturities of marketable investment securities, net	(31)	(96,031)
Purchases of property and equipment	(148,256)	(183,776)
Other, net	4,454	17,432
Net cash flows from investing activities	(143,833)	(262,375)
Cash Flows From Financing Activities:
Redemption and repurchases of senior notes	(1,100,000)	(22,365)
Advances to/from affiliates	(82,415)
Repayment of long-term debt and finance lease obligations	(23,807)	(10,860)
Other, net		(400)
Net cash flows from financing activities	(1,206,222)	(33,625)
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents	10,065	468,645
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4)	78,103	130,076
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4)	$ 88,168	$ 598,721

Organization and Business Activities

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Organization and Business Activities

1.	Organization and Business Activities

Principal Business

Pay-TV

1.Organization and Business Activities

Principal Business

Pay-TV

Master Transaction Agreement

Summary of Significant Accounting Policies

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates

Marketable Investment Securities

Trade Accounts Receivable

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

Leases

Impact of Adoption of ASU 2016-02

Research and Development

2.Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

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

Use of Estimates

Cash and Cash Equivalents

Marketable Investment Securities

●

the fair value of our debt investments compared to the carrying amount,

●

the historical volatility of the price of each security, and

●

any market and company specific factors related to each security.

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


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

●

we have the intent to sell the security,

●

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

●

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

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

Trade Accounts Receivable

Inventory

Property and Equipment

Impairment of Long-Lived Assets

Indefinite-Lived Intangible Assets and Goodwill

●

FCC licenses are a non-depleting asset;

●

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

●

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

●

maintenance expenditures to obtain future cash flows are not significant;

●

FCC licenses are not technologically dependent; and

●

we intend to use these assets indefinitely.

Business Combinations

Long-Term Deferred Revenue and Other Long-Term Liabilities

Sales Taxes

Income Taxes

Fair Value Measurements

●

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

●

Deferred Debt Issuance Costs

Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information.

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; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 for further information, including revenue disaggregated by major source.

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 15 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 years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Impact of Adoption of ASU 2014-09

Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years, some of which include renewal options, and some of which include options to terminate the leases within one year.

We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses.

For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease.

Impact of Adoption of ASU 2016-02

The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows:


Consolidated Balance Sheets	DISH DBS (as would have been reported under previous standards)		Impact of adopting ASU 2016-02		DISH DBS (as currently reported)

	(In thousands)
As of December 31, 2019
Operating lease assets	$	—	$	553,576	$	553,576
Total assets	$	3,832,983	$	553,576	$	4,386,559
Other accrued expenses	$	715,361	$	202,972	$	918,333
Operating lease liabilities	$	—	$	350,155	$	350,155
Long-term deferred revenue and other long-term liabilities	$	207,543	$	449	$	207,992
Total liabilities	$	14,767,605	$	553,576	$	15,321,181
Total stockholder's equity (deficit)	$	(10,934,622)	$	—	$	(10,934,622)
Total liabilities and stockholder's equity (deficit)	$	3,832,983	$	553,576	$	4,386,559

Subscriber-Related Expenses

Cost of Sales – Equipment and Other

Subscriber Acquisition Costs

●

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

Research and Development

New Accounting Pronouncements

Supplemental Data - Statements of Cash Flows

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Supplemental Data - Statements of Cash Flows

3.	Supplemental Data - Statements of Cash Flows

The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases.


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for interest	$	329,923	$	382,391
Cash received for interest		1,962		8,528
Cash paid for income taxes		3,205		8,845
Cash paid for income taxes to DISH Network		176,964		152,526
Capitalized interest		—		440
Reclassification of a receivable from noncurrent to current		—		138,210

3.Supplemental Data - Statements of Cash Flows

The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases.


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Cash paid for interest	$	765,510	$	793,506	$	878,772
Cash received for interest		30,041		6,043		9,855
Cash paid for income taxes		19,485		18,683		29,961
Cash paid for income taxes to DISH Network		245,028		302,329		408,265
Capitalized interest		440		1,071		481

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

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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

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

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

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


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	31	$	—
Restricted marketable investment securities (1)		—		390
Total marketable investment securities		31		390

Restricted cash and cash equivalents (1)		61,349		60,677

Other investment securities:
Other investment securities		96,886		106,874
Total other investment securities		96,886		106,874

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	158,266	$	167,941

(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

Current Marketable Investment Securities

Restricted Cash, Cash Equivalents and Marketable Investment Securities

Other Investment Securities

Fair Value Measurements

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


	As of
	June 30, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	63,344	$	62,740	$	604	$	—	$	60,677	$	60,677	$	—	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	390	$	390	$	—	$	—
Commercial paper		31		—		31		—		—		—		—		—
Corporate securities		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—
Total	$	31	$	—	$	31	$	—	$	390	$	390	$	—	$	—

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 Six Months Ended
	June 30,				June 30,
Other, net:	2020		2019		2020		2019

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	—	$	829	$	—	$	3,599
Costs related to early redemption of debt		—		—		—		(439)
Equity in earnings of affiliates		(399)		2,297		(121)		1,353
Other		247		5		914		51
Total	$	(152)	$	3,131	$	793	$	4,564

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

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


	As of December 31,
	2019		2018

	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Trading/equity	$	—	$	2,370
Other		—		147,370
Total current marketable investment securities		—		149,740
Restricted marketable investment securities (1)		390		67,019
Total marketable investment securities		390		216,759

Restricted cash and cash equivalents (1)		60,677		578

Other investment securities:
Other investment securities		106,874		108,308
Total other investment securities		106,874		108,308

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	167,941	$	325,645

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

Marketable Investment Securities

Current Marketable Investment Securities - Trading

Current Marketable Investment Securities - Other

Restricted Cash, Cash Equivalents and Marketable Investment Securities

Other Investment Securities

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 December 31,
	2019								2018
	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	$	390	$	—	$	—	$	—	$	66,823	$	40	$	(19)	$	21
Commercial paper		—		—		—		—		45,938		—		—		—
Corporate securities		—		—		—		—		100,662		11		(113)		(102)
Other		—		—		—		—		966		—		—		—
Total	$	390	$	—	$	—	$	—	$	214,389	$	51	$	(132)	$	(81)

Fair Value Measurements

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


	As of December 31,
	2019								2018
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	60,677	$	60,677	$	—	$	—	$	114,464	$	12,493	$	101,971	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	390	$	390	$	—	$	—	$	66,823	$	66,823	$	—	$	—
Commercial paper		—		—		—		—		45,938		—		45,938		—
Corporate securities		—		—		—		—		100,662		—		100,662		—
Other		—		—		—		—		966		—		966		—

Equity securities		—		—		—		—		2,370		2,370		—		—
Total	$	390	$	390	$	—	$	—	$	216,759	$	69,193	$	147,566	$	—

During the years ended December 31, 2019 and 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 Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:



	For the Years Ended December 31,
Other, net:	2019		2018		2017

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	3,119	$	5,313	$	87,020
Costs related to early redemption of debt		—		(3,261)		(1,470)
Gain (loss) on sale of subsidiary		—		7,004		—
Equity in earnings of affiliates		3,514		(2,110)		2,163
Other		976		2,048		798
Total	$	7,609	$	8,994	$	88,511

Inventory

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Inventory

Inventory

5.	Inventory

Inventory consisted of the following:


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Finished goods	$	249,605	$	254,240
Work-in-process and service repairs		34,245		34,120
Raw materials		17,558		33,623
Total inventory	$	301,408	$	321,983

5.Inventory

Inventory consisted of the following:


	As of December 31,
	2019		2018

	(In thousands)
Finished goods	$	254,240	$	215,150
Work-in-process and service repairs		34,120		56,871
Raw materials		33,623		18,676
Total inventory	$	321,983	$	290,697

Property and Equipment

6 Months Ended

Jun. 30, 2020

Property and Equipment

6.	Property and Equipment

Property and equipment consisted of the following:


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2020		2019

		(In thousands)
Equipment leased to customers	2-5	$	1,779,445	$	1,837,503
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		398,107		398,107
Furniture, fixtures, equipment and other	2-20		1,934,783		1,894,629
Buildings and improvements	5-40		294,342		289,421
Land	-		13,186		13,186
Construction in progress	-		62,862		70,081
Total property and equipment			5,171,638		5,191,840
Accumulated depreciation			(3,509,710)		(3,440,267)
Property and equipment, net		$	1,661,928	$	1,751,573

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Equipment leased to customers	$	69,489	$	86,453	$	149,171	$	194,589
Satellites		23,796		12,920		47,593		23,575
Buildings, furniture, fixtures, equipment and other		29,584		36,227		61,190		72,551
Total depreciation and amortization	$	122,869	$	135,600	$	257,954	$	290,715

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 six satellites that we lease from DISH Network, one satellite that we lease from EchoStar, and two satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life.

As of June 30, 2020, our pay-TV satellite fleet consisted of the following:


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2021
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5 (3)	September 2009	72.7	September 2020
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(2)

See Note 13 for further information on our Related Party Transactions with DISH Network.

(3)

On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). As the Satellite and Spectrum Transaction is among entities under common control, we recorded the EchoStar XVIII Satellite at DOLLC II’s net historical cost basis of $320 million. The difference between the net historical cost basis of EchoStar XVIII and our net carrying value of the LMDS and MVDDS licenses of $26 million, resulted in a $267 million capital transaction, net of tax, that was recorded in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets during the second quarter of 2019.

Leases

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases

7.	Leases

The components of lease expense were as follows:

For the Three Months Ended

For the Six Months Ended

June 30,

2020

2019

2020

2019

(In thousands)

Operating lease cost	$	61,808	$	81,762	$	123,523	$	162,048

Short-term lease cost (1)		3,733		12,141		6,400		31,426

Finance lease cost:
Amortization of right-of-use assets		12,300		3,805		24,748		9,913
Interest on lease liabilities		4,534		1,099		9,332		2,280
Total finance lease cost		16,834		4,904		34,080		12,193
Total lease costs	$	82,375	$	98,807	$	164,003	$	205,667

(2)Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows:


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	123,811	$	164,159
Operating cash flows from finance leases	$	9,332	$	2,295
Financing cash flows from finance leases	$	23,227	$	10,454

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	17,967	$	61,872
Finance leases	$	—	$	—

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842			$	730,180

Supplemental balance sheet information related to leases was as follows:


	As of
	June 30, 2020		December 31, 2019

	(In thousands)
Operating Leases:
Operating lease assets	$	471,987	$	553,576

Other current liabilities	$	204,138	$	202,972
Operating lease liabilities		267,154		350,155
Total operating lease liabilities	$	471,292	$	553,127

Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(226,325)		(201,873)
Property and equipment, net	$	172,550	$	197,891

Other current liabilities	$	50,860	$	48,678
Other long-term liabilities		137,949		163,939
Total finance lease liabilities	$	188,809	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.1 years		3.4 years
Finance leases		3.8 years		4.2 years

Weighted Average Discount Rate:
Operating leases		9.0%		9.1%
Finance leases		9.5%		9.5%

Maturities of lease liabilities as of June 30, 2020 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020 (remaining six months)	$	121,315	$	33,139	$	154,454
2021		205,137		66,279		271,416
2022		132,452		50,226		182,678
2023		27,439		42,862		70,301
2024		11,376		32,147		43,523
Thereafter		42,414		—		42,414
Total lease payments		540,133		224,653		764,786
Less: Imputed interest		(68,841)		(35,844)		(104,685)
Total		471,292		188,809		660,101
Less: Current portion		(204,138)		(50,860)		(254,998)
Long-term portion of lease obligations	$	267,154	$	137,949	$	405,103

7.Leases

The components of lease expense were as follows:


	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	297,181

Short-term lease cost (1)		37,686

Finance lease cost:
Amortization of right-of-use assets		29,134
Interest on lease liabilities		9,826
Total finance lease cost		38,960
Total lease costs	$	373,827

(1)

Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows:


	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	301,524
Operating cash flows from finance leases	$	9,826
Financing cash flows from finance leases	$	31,841

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	81,198
Finance leases	$	175,311

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	730,180

Supplemental balance sheet information related to leases was as follows:


	As of
	December 31, 2019
	(In thousands)
Operating Leases:
Operating lease right-of-use assets	$	553,576

Other current liabilities	$	202,972
Operating lease liabilities		350,155
Total operating lease liabilities	$	553,127

Finance Leases:
Property and equipment, gross	$	399,764
Accumulated depreciation		(201,873)
Property and equipment, net	$	197,891

Other current liabilities	$	48,678
Other long-term liabilities		163,939
Total finance lease liabilities	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.4 years
Finance leases		4.2 years

Weighted Average Discount Rate:
Operating leases		9.1%
Finance leases		9.5%

Maturities of lease liabilities as of December 31, 2019 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094

Long-Term Debt and Finance Lease Obligations

6 Months Ended

Jun. 30, 2020

Long-Term Debt and Finance Lease Obligations

8.	Long-Term Debt and Finance Lease Obligations

Fair Value of our Long-Term Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of June 30, 2020 and December 31, 2019:


	As of
	June 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
5 1/8% Senior Notes due 2020 (1)	$	—	$	—	$	1,100,000	$	1,110,208
6 3/4% Senior Notes due 2021 (2)		2,000,000		2,045,100		2,000,000		2,109,420
5 7/8% Senior Notes due 2022		2,000,000		2,043,040		2,000,000		2,129,580
5 % Senior Notes due 2023		1,500,000		1,495,545		1,500,000		1,543,770
5 7/8% Senior Notes due 2024		2,000,000		2,000,340		2,000,000		2,049,080
7 3/4% Senior Notes due 2026		2,000,000		2,130,880		2,000,000		2,128,900
Other notes payable		25,996		25,996		25,996		25,996
Subtotal		9,525,996	$	9,740,901		10,625,996	$	11,096,954
Unamortized deferred financing costs and debt discounts, net		(13,581)				(16,250)
Finance lease obligations (3)		188,809				212,617
Total long-term debt and finance lease obligations (including current portion)	$	9,701,224			$	10,822,363

(4)

On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020.

(5)

(6)

Disclosure regarding fair value of finance leases is not required.

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

Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

9.	Commitments and Contingencies

Commitments

DISH Network Spectrum

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

See Note 10 “Commitments and Contingencies – Commitments” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information.

Contingencies

Separation Agreement

Litigation

Broadband iTV

City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust

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

ClearPlay, Inc.

Contemporary Display LLC

Customedia Technologies, L.L.C.

Innovative Foundry Technologies LLC

Mobile Networking Solutions

Multimedia Content Management LLC

Realtime Data LLC and Realtime Adaptive Streaming LLC

Realtime Adaptive Streaming is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

Sound View Innovations, LLC

Telemarketing Litigation

The first phase of the bench trial took place January 19, 2016 through February 11, 2016, and the second phase took place October 25, 2016 through November 2, 2016.

part, the motion to clarify, alter and amend the Injunction, and entered an Amended Permanent Injunction (the “Amended Injunction”).

We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits.

Telemarketing Shareholder Derivative Litigation

DISH Network 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

Turner Network Sales

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.

Uniloc

Vermont National Telephone Company

Waste Disposal Inquiry

Other

12.Commitments and Contingencies

Commitments

As of December 31, 2019, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows:


	Payments due by period
	Total		2020		2021		2022			2023		2024		Thereafter

Long-term debt obligations	$	10,625,996	$	1,102,430	$	2,002,554	$	2,002,683		$	1,502,820	$	2,002,964	$	2,012,545
Interest expense on long-term debt		2,524,898	$	629,410	$	533,599	$	465,969		$	310,832	$	273,188	$	311,900
Finance lease obligations (1)		212,617		48,678		53,150		41,666			38,018		31,105		—
Interest expense on finance lease obligations (1)		45,183		17,607		13,129		8,561			4,844		1,042		—
Satellite-related and other obligations (2)		219,019		71,931		65,663		41,291			23,321		16,813		—
Operating lease obligations (1)		641,792		239,660		199,062		127,300			24,571		9,191		42,008
Purchase obligations		1,241,340		1,200,025		29,284		12,031			—		—		—
Total	$	15,510,845	$	3,309,741	$	2,896,441	$	2,699,501	$		1,904,406	$	2,334,303	$	2,366,453

(1)

See Note 7 for further information on leases and the adoption of ASC 842.

(2)

Represents obligations for satellite related executory costs, telemetry, tracking and control (“TT&C”) services and short-term leases.

DISH Network Spectrum

DISH Network has 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, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband IoT network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. DISH Network has 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 for the First Phase. Among other things, initial RF design in connection with the First Phase was complete, DISH Network had secured certain tower sites, and they were in the process of identifying and securing additional tower sites. The core network had been installed and commissioned. DISH Network installed the first base stations on sites in 2018 and were in the process of deploying the remaining base stations. During October 2019, DISH Network paused work on its narrowband IoT deployment due to its March 2020 build-out deadlines being tolled as discussed above. In addition, DISH Network has issued RFI/Ps to various vendors in the wireless industry as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest.

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

See Note 15 “Commitments and Contingencies – Wireless” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information.

Purchase Obligations

Programming Contracts

Rent Expense

Total rent expense for operating leases was $357 million, $449 million and $473 million in 2019, 2018 and 2017, respectively.

Patents and Intellectual Property

Contingencies

Separation Agreement

Litigation

Blue Spike, LLC

Broadband iTV

City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust

On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees.

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

ClearPlay, Inc.

Contemporary Display LLC

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. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office.

Customedia Technologies, L.L.C.

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. cross-appealed to the extent that its petitions were not successful. On February 6, 2019, the Court of Appeals granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 090 patent and, on February 26, 2019, granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 437 patent. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, and DISH Network L.L.C. filed a response to that petition on February 10, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019.

Innovative Foundry Technologies

Mobile Networking Solutions

Multimedia Content Management LLC

On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes 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. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, 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 November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration. On January 6, 2020, pursuant to stipulation, the Court entered a stay of the litigation and vacated all upcoming deadlines.

Realtime Data LLC and Realtime Adaptive Streaming LLC

Realtime Adaptive Streaming is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

Sound View Innovations, LLC

Telemarketing Litigation

The first phase of the bench trial took place January 19, 2016 through February 11, 2016 and the second phase took place October 25, 2016 through November 2, 2016.

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 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. DISH Network L.L.C. appealed and on May 30, 2019, the United States Court of Appeals for the Fourth Circuit affirmed. On October 15, 2019, DISH Network L.L.C. filed a petition for writ of certiorari, requesting that the United States Supreme Court agree to hear a further appeal, but it denied the petition on December 16, 2019. On January 21, 2020, DISH Network L.L.C. filed a second notice of appeal relating to the district court’s orders on the claims administration process to identify, and disburse funds to, individual class members. During the second quarter 2017, we recorded $41 million of “Litigation expense” related to the Krakauer Action on our 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 December 31, 2018 was $61 million and was included in “Other accrued expenses” on our Consolidated Balance Sheets. During the third quarter 2019, the judgment was paid to the court.

We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits.

Telemarketing Shareholder Derivative Litigation

DISH Network 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 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 final written decisions adverse to it. On May 9, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the 430 patent and the 412 patent. On July 10, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 404 patent. On July 15, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 268 patent. On November 22, 2019, the United States Court of Appeals for the Federal Circuit reversed the invalidity finding on the 243 patent and the 158 patent, which is the subject of a petition for panel rehearing, which was filed on January 22, 2020.

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. 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. In its October 1, 2018 damage expert’s report, Turner claimed damages of $159 million, plus $24 million in interest. On September 27, 2019, the Court granted, in part, Turner’s motion for summary judgment, holding, in part, that Turner was entitled to recover approximately $20 million in license fee payments that DISH Network L.L.C. had withheld after it discovered previous over-payments. On February 12, 2020, the parties filed a stipulation to dismiss certain of their respective claims. Trial on the remaining claims in this matter has been set for April 20, 2020, where DISH Network L.L.C.’s incremental exposure (per Turner’s damages expert) is approximately $118 million in damages, plus approximately $30 million in interest.

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.

Uniloc

Vermont National Telephone Company

Waste Disposal Inquiry

Other

Financial Information for Subsidiary Guarantors

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Financial Information for Subsidiary Guarantors

Financial Information for Subsidiary Guarantors

10.

Financial Information for Subsidiary Guarantors

13.Financial Information for Subsidiary Guarantors

Disaggregation of Revenue

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Disaggregation of Revenue

11.

Disaggregation of Revenue

The following table summarizes revenue by geographic region:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Revenue:	2020		2019		2020		2019

	(In thousands)
United States	$	3,144,992	$	3,155,828	$	6,302,296	$	6,282,937
Canada and Mexico		3,539		10,771		14,017		21,662
Total revenue	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599

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


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Category:	2020		2019		2020		2019

	(In thousands)
Pay-TV video and related revenue	$	3,117,334	$	3,117,066	$	6,248,234	$	6,215,002
Equipment sales and other revenue		31,197		49,533		68,079		89,597
Total	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599

14.Disaggregation of Revenue

The following table summarizes revenue by geographic region:



	For the Years Ended December 31,
Revenue:	2019		2018		2017

	(In thousands)
United States	$	12,581,855	$	13,319,091	$	13,967,694
Canada and Mexico		41,038		43,048		39,817
Total revenue	$	12,622,893	$	13,362,139	$	14,007,511

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



	For the Years Ended December 31,
Category:	2019		2018		2017
				(In thousands)
Pay-TV video and related revenue	$	12,436,637	$	13,197,994	$	13,877,196
Equipment sales and other revenue		186,256		164,145		130,315
Total	$	12,622,893	$	13,362,139	$	14,007,511

Contract Balances

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Related Party Transactions

Contract Balances

12.

Contract Balances

Our valuation and qualifying accounts as of June 30, 2020 were as follows:


Allowance for credit losses	Balance at Beginning of Period		Current Period Provision for Expected Credit Losses		Write-offs Charged Against Allowance		Balance at End of Period

	(In thousands)
For the six months ended June 30, 2020	$	19,280	$	51,808	$	(29,900)	$	41,188


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2019	$	609,054
Recognition of unearned revenue		(2,951,822)
Deferral of revenue		2,925,648
Balance as of June 30, 2020	$	582,880

15.Contract Balances

Our valuation and qualifying accounts as of December 31, 2019, 2018 and 2017 were as follows:


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year

	(In thousands)
For the years ended:
December 31, 2019	$	16,956	$	69,866	$	(67,542)	$	19,280
December 31, 2018	$	15,056	$	98,461	$	(96,561)	$	16,956
December 31, 2017	$	17,440	$	124,143	$	(126,527)	$	15,056

Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows:


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2018	$	624,626
Recognition of unearned revenue		(7,086,252)
Deferral of revenue		7,070,680
Balance as of December 31, 2019	$	609,054

Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Related Party Transactions

13.

Related Party Transactions

Master Transaction Agreement

Related Party Transactions with DISH Network

“Satellite and transmission expenses”

●

“General and administrative expenses”

●

Other Agreements – DISH Network

Spin-off from EchoStar

Related Party Transactions with EchoStar

“Trade accounts receivable”

“Trade accounts payable”

“Equipment sales and other revenue”

●

“Satellite and transmission expenses”

●

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 and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network.

QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”). 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. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. During the first quarter 2013, DISH Network and EchoStar entered into an agreement pursuant to which DISH Network subleased five DBS transponders back to EchoStar.

Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and 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 SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network.

“General and administrative expenses”

●

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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network.

●

Other Agreements - EchoStar

Related Party Transactions with NagraStar L.L.C.

The table below summarizes our transactions with NagraStar:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	13,259	$	14,355	$	27,351	$	28,714

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,930	$	9,630
Commitments to NagraStar	$	4,159	$	4,893

Related Party Transactions with Dish Mexico

The table below summarizes our transactions with Dish Mexico:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Sales:
Uplink services	$	1,288	$	1,412	$	2,669	$	2,816
Total	$	1,288	$	1,412	$	2,669	$	2,816

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico	$	2,116	$	1,191

17.Related Party Transactions

Master Transaction Agreement

On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement.

Related Party Transactions with DISH Network

“Satellite and transmission expenses”

●

“General and administrative expenses”

●

Other Agreements – DISH Network

Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2019, 2018 and 2017, the costs associated with these services were $54 million, $40 million and $48 million, respectively.

Related Party Transactions with EchoStar

“Trade accounts receivable”

“Trade accounts payable”

“Equipment sales and other revenue”

●

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. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days’ written notice prior to the end of the term.

●

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. This lease was terminated effective September 10, 2019.

●

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. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. 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.

“Satellite and transmission expenses”

●

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 and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network.

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 received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued 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 in September 2019, 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 had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020.

“General and administrative expenses”

●

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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network.

●

Other Agreements - EchoStar

Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into a master service agreement (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 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 years ended December 31, 2019, 2018 and 2017, we purchased broadband equipment from HNS of $14 million, $21 million and $22 million under the MSA, respectively.

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 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 Consolidated Balance Sheets or expensed as “Subscriber acquisition costs” or “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

The table below summarizes our transactions with NagraStar.


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	56,284	$	72,162	$	71,167

			As of December 31,
			2019		2018

			(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar			$	9,630	$	9,871
Commitments to NagraStar			$	4,893	$	3,888

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, certain satellite 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 Consolidated Statements of Operations and Comprehensive Income (Loss).

The table below summarizes our transactions with Dish Mexico:



	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Sales:
Digital receivers and related components	$	—	$	1,227	$	1,891
Uplink services		5,620		5,426		3,994
Total	$	5,620	$	6,653	$	5,885

			As of December 31,
			2019		2018

			(In thousands)
Amounts Receivable:
Amounts receivable from Dish Mexico			$	1,191	$	1,370

{

Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events

Subsequent Events

14. Subsequent Events

7 3/8% Senior Notes due 2028

On July 1, 2020, we issued $1.0 billion aggregate principal amount of our 7 3/8% Senior Notes due July 1, 2028. Interest accrues at an annual rate of 7 3/8% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year, commencing on January 1, 2021.

The 7 3/8% Senior Notes are redeemable, in whole or in part, at any time prior to July 1, 2023 at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. On or after July 1, 2023, we may redeem the Notes, in whole or in part, at any time at the redemption prices specified under the related indenture, together with accrued and unpaid interest. Prior to July 1, 2023, we may also redeem up to 35% of the 7 3/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions.

Our 7 3/8% Senior Notes are:

●

general unsecured senior obligations of DISH DBS;

●

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

●

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

The indenture related to our 7 3/8% Senior Notes contains restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to:

●

incur additional debt;

●

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

●

make certain investments;

●

create liens or enter into sale and leaseback transactions;

●

enter into transactions with affiliates;

●

merge or consolidate with another company; and

●

transfer or sell assets.

In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s 7 3/8% Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Principles of Consolidation

Basis of Presentation

Use of Estimates

Marketable Investment Securities

●

the fair value of our debt investments compared to the carrying amount,

●

the historical volatility of the price of each security, and

●

any market and company specific factors related to each security.

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


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

●

we have the intent to sell the security,

●

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

●

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

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

Trade Accounts Receivable

Fair Value Measurements

●

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

●

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

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; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 for further information, including revenue disaggregated by major source.

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 15 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 years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Impact of Adoption of ASU 2014-09

Impact of Adoption of ASU 2016-02

Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years, some of which include renewal options, and some of which include options to terminate the leases within one year.

We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses.

For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease.

Impact of Adoption of ASU 2016-02

The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows:


Consolidated Balance Sheets	DISH DBS (as would have been reported under previous standards)		Impact of adopting ASU 2016-02		DISH DBS (as currently reported)

	(In thousands)
As of December 31, 2019
Operating lease assets	$	—	$	553,576	$	553,576
Total assets	$	3,832,983	$	553,576	$	4,386,559
Other accrued expenses	$	715,361	$	202,972	$	918,333
Operating lease liabilities	$	—	$	350,155	$	350,155
Long-term deferred revenue and other long-term liabilities	$	207,543	$	449	$	207,992
Total liabilities	$	14,767,605	$	553,576	$	15,321,181
Total stockholder's equity (deficit)	$	(10,934,622)	$	—	$	(10,934,622)
Total liabilities and stockholder's equity (deficit)	$	3,832,983	$	553,576	$	4,386,559

Research and Development

Supplemental Data - Statements of Cash Flows (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of supplemental cash flow and other non-cash data


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for interest	$	329,923	$	382,391
Cash received for interest		1,962		8,528
Cash paid for income taxes		3,205		8,845
Cash paid for income taxes to DISH Network		176,964		152,526
Capitalized interest		—		440
Reclassification of a receivable from noncurrent to current		—		138,210


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Cash paid for interest	$	765,510	$	793,506	$	878,772
Cash received for interest		30,041		6,043		9,855
Cash paid for income taxes		19,485		18,683		29,961
Cash paid for income taxes to DISH Network		245,028		302,329		408,265
Capitalized interest		440		1,071		481

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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
	June 30,		December 31,
	2020		2019

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	31	$	—
Restricted marketable investment securities (1)		—		390
Total marketable investment securities		31		390

Restricted cash and cash equivalents (1)		61,349		60,677

Other investment securities:
Other investment securities		96,886		106,874
Total other investment securities		96,886		106,874

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	158,266	$	167,941

(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.


	As of December 31,
	2019		2018

	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Trading/equity	$	—	$	2,370
Other		—		147,370
Total current marketable investment securities		—		149,740
Restricted marketable investment securities (1)		390		67,019
Total marketable investment securities		390		216,759

Restricted cash and cash equivalents (1)		60,677		578

Other investment securities:
Other investment securities		106,874		108,308
Total other investment securities		106,874		108,308

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	167,941	$	325,645

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

Schedule of investments measured at fair value on a recurring basis


	As of
	June 30, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	63,344	$	62,740	$	604	$	—	$	60,677	$	60,677	$	—	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	390	$	390	$	—	$	—
Commercial paper		31		—		31		—		—		—		—		—
Corporate securities		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—
Total	$	31	$	—	$	31	$	—	$	390	$	390	$	—	$	—


	As of December 31,
	2019								2018
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	60,677	$	60,677	$	—	$	—	$	114,464	$	12,493	$	101,971	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	390	$	390	$	—	$	—	$	66,823	$	66,823	$	—	$	—
Commercial paper		—		—		—		—		45,938		—		45,938		—
Corporate securities		—		—		—		—		100,662		—		100,662		—
Other		—		—		—		—		966		—		966		—

Equity securities		—		—		—		—		2,370		2,370		—		—
Total	$	390	$	390	$	—	$	—	$	216,759	$	69,193	$	147,566	$	—

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


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Other, net:	2020		2019		2020		2019

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	—	$	829	$	—	$	3,599
Costs related to early redemption of debt		—		—		—		(439)
Equity in earnings of affiliates		(399)		2,297		(121)		1,353
Other		247		5		914		51
Total	$	(152)	$	3,131	$	793	$	4,564



	For the Years Ended December 31,
Other, net:	2019		2018		2017

	(In thousands)
Marketable investment securities - realized and unrealized gains (losses)	$	3,119	$	5,313	$	87,020
Costs related to early redemption of debt		—		(3,261)		(1,470)
Gain (loss) on sale of subsidiary		—		7,004		—
Equity in earnings of affiliates		3,514		(2,110)		2,163
Other		976		2,048		798
Total	$	7,609	$	8,994	$	88,511

Inventory (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Inventory

Schedule of inventory


	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Finished goods	$	249,605	$	254,240
Work-in-process and service repairs		34,245		34,120
Raw materials		17,558		33,623
Total inventory	$	301,408	$	321,983


	As of December 31,
	2019		2018

	(In thousands)
Finished goods	$	254,240	$	215,150
Work-in-process and service repairs		34,120		56,871
Raw materials		33,623		18,676
Total inventory	$	321,983	$	290,697

Property and Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of property and equipment


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2020		2019

		(In thousands)
Equipment leased to customers	2-5	$	1,779,445	$	1,837,503
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		398,107		398,107
Furniture, fixtures, equipment and other	2-20		1,934,783		1,894,629
Buildings and improvements	5-40		294,342		289,421
Land	-		13,186		13,186
Construction in progress	-		62,862		70,081
Total property and equipment			5,171,638		5,191,840
Accumulated depreciation			(3,509,710)		(3,440,267)
Property and equipment, net		$	1,661,928	$	1,751,573


	Depreciable		As of
	Life	December 31,		December 31,
	(In Years)	2019		2018

		(In thousands)
Equipment leased to customers	2-5	$	1,837,503	$	1,980,808
EchoStar XV	15		277,658		277,658
EchoStar XVIII (1)	15		411,255		—
Satellites acquired under finance lease agreements (2)(3)	15		398,107		499,819
Furniture, fixtures, equipment and other	2-20		1,894,629		1,820,883
Buildings and improvements	5-40		289,421		289,244
Land	-		13,186		13,186
Construction in progress	-		70,081		47,077
Total property and equipment			5,191,840		4,928,675
Accumulated depreciation			(3,440,267)		(3,550,726)
Property and equipment, net		$	1,751,573	$	1,377,949

(1)

(2)

(3)

Schedule of depreciation and amortization expense


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Equipment leased to customers	$	69,489	$	86,453	$	149,171	$	194,589
Satellites		23,796		12,920		47,593		23,575
Buildings, furniture, fixtures, equipment and other		29,584		36,227		61,190		72,551
Total depreciation and amortization	$	122,869	$	135,600	$	257,954	$	290,715


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Equipment leased to customers	$	370,867	$	437,342	$	539,434
Satellites		65,441		61,045		61,045
Buildings, furniture, fixtures, equipment and other		141,040		162,073		141,293
Total depreciation and amortization	$	577,348	$	660,460	$	741,772

Schedule of pay-TV satellite fleet


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2021
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5 (3)	September 2009	72.7	September 2020
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(2)

See Note 13 for further information on our Related Party Transactions with DISH Network.

(3)


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
Nimiq 5 (3)(4)	September 2009	72.7	September 2020
QuetzSat-1 (3)	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)	See Note 17 for further information on our Related Party Transactions with EchoStar.

(2)	See Note 17 for further information on our Related Party Transactions with DISH Network.

(3)

(4)

Leases (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases

Summary of the components of lease expense

For the Three Months Ended

For the Six Months Ended

June 30,

2020

2019

2020

2019

(In thousands)

Operating lease cost	$	61,808	$	81,762	$	123,523	$	162,048

Short-term lease cost (1)		3,733		12,141		6,400		31,426

Finance lease cost:
Amortization of right-of-use assets		12,300		3,805		24,748		9,913
Interest on lease liabilities		4,534		1,099		9,332		2,280
Total finance lease cost		16,834		4,904		34,080		12,193
Total lease costs	$	82,375	$	98,807	$	164,003	$	205,667

(2)Leases that have terms of 12 months or less.


	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	297,181

Short-term lease cost (1)		37,686

Finance lease cost:
Amortization of right-of-use assets		29,134
Interest on lease liabilities		9,826
Total finance lease cost		38,960
Total lease costs	$	373,827

(1)

Leases that have terms of 12 months or less.

Summary of Supplemental cash flow information related to leases


	For the Six Months Ended
	June 30,
	2020		2019

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	123,811	$	164,159
Operating cash flows from finance leases	$	9,332	$	2,295
Financing cash flows from finance leases	$	23,227	$	10,454

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	17,967	$	61,872
Finance leases	$	—	$	—

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842			$	730,180


	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	301,524
Operating cash flows from finance leases	$	9,826
Financing cash flows from finance leases	$	31,841

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	81,198
Finance leases	$	175,311

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	730,180

Summary of supplemental balance sheet information related to leases


	As of
	June 30, 2020		December 31, 2019

	(In thousands)
Operating Leases:
Operating lease assets	$	471,987	$	553,576

Other current liabilities	$	204,138	$	202,972
Operating lease liabilities		267,154		350,155
Total operating lease liabilities	$	471,292	$	553,127

Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(226,325)		(201,873)
Property and equipment, net	$	172,550	$	197,891

Other current liabilities	$	50,860	$	48,678
Other long-term liabilities		137,949		163,939
Total finance lease liabilities	$	188,809	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.1 years		3.4 years
Finance leases		3.8 years		4.2 years

Weighted Average Discount Rate:
Operating leases		9.0%		9.1%
Finance leases		9.5%		9.5%


	As of
	December 31, 2019
	(In thousands)
Operating Leases:
Operating lease right-of-use assets	$	553,576

Other current liabilities	$	202,972
Operating lease liabilities		350,155
Total operating lease liabilities	$	553,127

Finance Leases:
Property and equipment, gross	$	399,764
Accumulated depreciation		(201,873)
Property and equipment, net	$	197,891

Other current liabilities	$	48,678
Other long-term liabilities		163,939
Total finance lease liabilities	$	212,617

Weighted Average Remaining Lease Term:
Operating leases		3.4 years
Finance leases		4.2 years

Weighted Average Discount Rate:
Operating leases		9.1%
Finance leases		9.5%

Summary of maturities of operating lease liabilities


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020 (remaining six months)	$	121,315	$	33,139	$	154,454
2021		205,137		66,279		271,416
2022		132,452		50,226		182,678
2023		27,439		42,862		70,301
2024		11,376		32,147		43,523
Thereafter		42,414		—		42,414
Total lease payments		540,133		224,653		764,786
Less: Imputed interest		(68,841)		(35,844)		(104,685)
Total		471,292		188,809		660,101
Less: Current portion		(204,138)		(50,860)		(254,998)
Long-term portion of lease obligations	$	267,154	$	137,949	$	405,103

Maturities of lease liabilities as of December 31, 2019 were as follows:


	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total

	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094

Long-Term Debt and Finance Lease Obligations (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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


	As of
	June 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
5 1/8% Senior Notes due 2020 (1)	$	—	$	—	$	1,100,000	$	1,110,208
6 3/4% Senior Notes due 2021 (2)		2,000,000		2,045,100		2,000,000		2,109,420
5 7/8% Senior Notes due 2022		2,000,000		2,043,040		2,000,000		2,129,580
5 % Senior Notes due 2023		1,500,000		1,495,545		1,500,000		1,543,770
5 7/8% Senior Notes due 2024		2,000,000		2,000,340		2,000,000		2,049,080
7 3/4% Senior Notes due 2026		2,000,000		2,130,880		2,000,000		2,128,900
Other notes payable		25,996		25,996		25,996		25,996
Subtotal		9,525,996	$	9,740,901		10,625,996	$	11,096,954
Unamortized deferred financing costs and debt discounts, net		(13,581)				(16,250)
Finance lease obligations (3)		188,809				212,617
Total long-term debt and finance lease obligations (including current portion)	$	9,701,224			$	10,822,363

(4)

On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020.

(5)

(6)

Disclosure regarding fair value of finance leases is not required.


	As of December 31,
	2019				2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
7 7/8% Senior Notes due 2019 (1)		—		—		1,317,372		1,343,298
5 1/8% Senior Notes due 2020 (2)		1,100,000		1,110,208		1,100,000		1,089,957
6 3/4% Senior Notes due 2021		2,000,000		2,109,420		2,000,000		1,974,940
5 7/8% Senior Notes due 2022		2,000,000		2,129,580		2,000,000		1,833,140
5 % Senior Notes due 2023		1,500,000		1,543,770		1,500,000		1,247,445
5 7/8% Senior Notes due 2024		2,000,000		2,049,080		2,000,000		1,611,960
7 3/4% Senior Notes due 2026		2,000,000		2,128,900		2,000,000		1,653,720
Other notes payable		25,996		25,996		10,346		10,346
Subtotal		10,625,996	$	11,096,954		11,927,718	$	10,764,806
Unamortized deferred financing costs and debt discounts, net		(16,250)				(23,215)
Finance lease obligations (3)		212,617				66,984
Total long-term debt and finance lease obligations (including current portion)	$	10,822,363			$	11,971,487

(1)	On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019.

(2)

(3)	Disclosure regarding fair value of finance leases is not required.

- Definition

+ References

+ Details

Disaggregation of Revenue (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Revenue by geographic region


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Revenue:	2020		2019		2020		2019

	(In thousands)
United States	$	3,144,992	$	3,155,828	$	6,302,296	$	6,282,937
Canada and Mexico		3,539		10,771		14,017		21,662
Total revenue	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599



	For the Years Ended December 31,
Revenue:	2019		2018		2017

	(In thousands)
United States	$	12,581,855	$	13,319,091	$	13,967,694
Canada and Mexico		41,038		43,048		39,817
Total revenue	$	12,622,893	$	13,362,139	$	14,007,511

Schedule of disaggregation of revenue


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Category:	2020		2019		2020		2019

	(In thousands)
Pay-TV video and related revenue	$	3,117,334	$	3,117,066	$	6,248,234	$	6,215,002
Equipment sales and other revenue		31,197		49,533		68,079		89,597
Total	$	3,148,531	$	3,166,599	$	6,316,313	$	6,304,599



	For the Years Ended December 31,
Category:	2019		2018		2017
				(In thousands)
Pay-TV video and related revenue	$	12,436,637	$	13,197,994	$	13,877,196
Equipment sales and other revenue		186,256		164,145		130,315
Total	$	12,622,893	$	13,362,139	$	14,007,511

Contract Balances (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Valuation and Qualifying Accounts


Allowance for credit losses	Balance at Beginning of Period		Current Period Provision for Expected Credit Losses		Write-offs Charged Against Allowance		Balance at End of Period

	(In thousands)
For the six months ended June 30, 2020	$	19,280	$	51,808	$	(29,900)	$	41,188


Allowance for doubtful accounts	Balance at Beginning of Year		Charged to Costs and Expenses		Deductions		Balance at End of Year

	(In thousands)
For the years ended:
December 31, 2019	$	16,956	$	69,866	$	(67,542)	$	19,280
December 31, 2018	$	15,056	$	98,461	$	(96,561)	$	16,956
December 31, 2017	$	17,440	$	124,143	$	(126,527)	$	15,056

Schedule of Contract balances


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2019	$	609,054
Recognition of unearned revenue		(2,951,822)
Deferral of revenue		2,925,648
Balance as of June 30, 2020	$	582,880


	Contract
	Liabilities
	(In thousands)
Balance as of December 31, 2018	$	624,626
Recognition of unearned revenue		(7,086,252)
Deferral of revenue		7,070,680
Balance as of December 31, 2019	$	609,054

Related Party Transactions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	13,259	$	14,355	$	27,351	$	28,714

	As of
	June 30,		December 31,
	2020		2019

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	17,930	$	9,630
Commitments to NagraStar	$	4,159	$	4,893


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	56,284	$	72,162	$	71,167

			As of December 31,
			2019		2018

			(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar			$	9,630	$	9,871
Commitments to NagraStar			$	4,893	$	3,888

Dish Mexico