0001558370-21-011660 | 10-Q | XBRL Viewer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 06, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-31929
Entity Registrant Name	DISH DBS Corporation
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	84-1328967
Entity Address, Address Line One	9601 South Meridian Boulevard
Entity Address, City or Town	Englewood
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112
City Area Code	303
Local Phone Number	723-1000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,015
Entity Central Index Key	0001042642
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 1,410,164	$ 1,238,409
Marketable investment securities	438,543	132,593
Trade accounts receivable, net of allowance for credit losses of $34,555 and $43,233, respectively	577,920	626,375
Inventory	237,803	262,297
Other current assets	204,265	272,955
Total current assets	2,868,695	2,532,629
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities	58,024	58,323
Property and equipment, net	1,420,164	1,564,704
FCC authorizations	611,794	611,794
Other investment securities	98,701	97,306
Operating lease assets	291,139	380,968
Other noncurrent assets, net	199,955	222,311
Total noncurrent assets	2,679,777	2,935,406
Total assets	5,548,472	5,468,035
Current Liabilities:
Trade accounts payable	380,777	315,661
Deferred revenue and other	584,616	667,226
Accrued programming	1,212,806	1,388,407
Accrued interest	213,653	216,459
Other accrued expenses	612,399	625,342
Current portion of long-term debt and finance lease obligations	52,005	2,052,374
Total current liabilities	3,056,256	5,265,469
Long-Term Obligations, Net of Current Portion:
Long-term debt and finance lease obligations, net of current portion	10,087,755	8,619,116
Deferred tax liabilities	501,058	514,928
Operating lease liabilities	138,432	192,624
Long-term deferred revenue and other long-term liabilities	184,721	195,903
Total long-term obligations, net of current portion	10,911,966	9,522,571
Total liabilities	13,968,222	14,788,040
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	1,462,739	1,463,407
Accumulated other comprehensive income (loss)	(1,152)	(805)
Accumulated earnings (deficit)	(9,881,337)	(10,782,607)
Total stockholder's equity (deficit)	(8,419,750)	(9,320,005)
Total liabilities and stockholder's equity (deficit)	$ 5,548,472	$ 5,468,035

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current Assets:
Allowance for credit losses	$ 34,555	$ 43,233
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	1,015	1,015
Common stock, shares outstanding	1,015	1,015

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 3,211,488	$ 3,148,531	$ 6,374,407	$ 6,316,313
Costs and Expenses (exclusive of depreciation shown separately below - Note 6):
Cost of services	1,949,761	1,989,738	3,908,460	4,062,170
Cost of sales - equipment and other	24,902	23,660	41,177	54,474
Selling, general and administrative expenses	332,060	348,367	665,134	770,616
Depreciation and amortization (Note 6)	111,391	122,869	226,633	257,954
Total costs and expenses	2,418,114	2,484,634	4,841,404	5,145,214
Operating income (loss)	793,374	663,897	1,533,003	1,171,099
Other Income (Expense):
Interest income	1,002	1,112	1,808	1,962
Interest expense, net of amounts capitalized	(162,212)	(164,047)	(336,188)	(346,387)
Other, net	(287)	(152)	(1,795)	793
Total other income (expense)	(161,497)	(163,087)	(336,175)	(343,632)
Income (loss) before income taxes	631,877	500,810	1,196,828	827,467
Income tax (provision) benefit, net	(155,134)	(125,830)	(295,558)	(208,334)
Net income (loss)	476,743	374,980	901,270	619,133
Comprehensive Income (Loss):
Net income (loss)	476,743	374,980	901,270	619,133
Other comprehensive income (loss):
Foreign currency translation adjustments	(144)	30	(339)	(322)
Unrealized holding gains (losses) on available-for-sale debt securities	(6)	11	(8)
Total other comprehensive income (loss), net of tax	(150)	41	(347)	(322)
Comprehensive income (loss)	476,593	375,021	900,923	618,811
Service revenue
Revenue:
Total revenue	3,176,710	3,117,334	6,314,097	6,248,234
Equipment sales and other revenue
Revenue:
Total revenue	$ 34,778	$ 31,197	$ 60,310	$ 68,079

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)	Total
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)			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)				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)			374,980	374,980
Balance at Jun. 30, 2020	1,443,022	(771)	(11,747,776)	(10,305,525)
Balance at Dec. 31, 2020	1,463,407	(805)	(10,782,607)	(9,320,005)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	7,676			7,676
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		(2)		(2)
Foreign currency translation		(195)		(195)
Net income (loss)			424,527	424,527
Balance at Mar. 31, 2021	1,471,083	(1,002)	(10,358,080)	(8,887,999)
Balance at Dec. 31, 2020	1,463,407	(805)	(10,782,607)	(9,320,005)
Increase (Decrease) in Stockholder's Equity
Net income (loss)				901,270
Balance at Jun. 30, 2021	1,462,739	(1,152)	(9,881,337)	(8,419,750)
Balance at Mar. 31, 2021	1,471,083	(1,002)	(10,358,080)	(8,887,999)
Increase (Decrease) in Stockholder's Equity
Non-cash, stock-based compensation	(8,344)			(8,344)
Change in unrealized holding gains (losses) on available-for-sale debt securities, net		(6)		(6)
Foreign currency translation		(144)		(144)
Net income (loss)			476,743	476,743
Balance at Jun. 30, 2021	$ 1,462,739	$ (1,152)	$ (9,881,337)	$ (8,419,750)

- Definition

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

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Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows From Operating Activities:
Net income (loss)	$ 901,270	$ 619,133
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	226,633	257,954
Realized and unrealized losses (gains) on investments	3,587
Non-cash, stock-based compensation	(668)	10,286
Deferred tax expense (benefit)	(13,870)	19,576
Allowance for credit losses	(8,678)	21,908
Other, net	13,466	25,554
Changes in current assets and current liabilities, net	(27,598)	405,709
Net cash flows from operating activities	1,094,142	1,360,120
Cash Flows From Investing Activities:
(Purchases) Sales and maturities of marketable investment securities, net	(305,958)	(31)
Purchases of property and equipment	(88,470)	(148,256)
Other, net	9,311	4,454
Net cash flows from investing activities	(385,117)	(143,833)
Cash Flows From Financing Activities:
Redemption and repurchases of senior notes	(2,000,000)	(1,100,000)
Proceeds from the issuance of senior notes	1,500,000
Early debt extinguishment	(3,368)
Debt issuance costs	(9,819)
Advances to/from affiliates		(82,415)
Repayment of long-term debt and finance lease obligations	(24,382)	(23,807)
Net cash flows from financing activities	(537,569)	(1,206,222)
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents	171,456	10,065
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4)	1,296,732	78,103
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4)	$ 1,468,188	$ 88,168

Organization and Business Activities

6 Months Ended

Jun. 30, 2021

Organization and Business Activities

Organization and Business Activities

1.	Organization and Business Activities

Principal Business

DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment.

Pay-TV

We offer pay-TV services under the DISH^® brand and the SLING^® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“SLING TV”). As of June 30, 2021, we had 10.993 million Pay-TV subscribers in the United States, including 8.554 million DISH TV subscribers and 2.439 million SLING TV subscribers.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. 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.

Fair Value Measurements

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

●

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

●

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

●

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

As of June 30, 2021 and December 31, 2020, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) 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.

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, 2021 and 2020, we capitalized $33 million and $44 million, respectively, under these programs. The amortization expense related to these programs was $38 million and $29 million for the three months ended June 30, 2021 and 2020, respectively. During the six months ended June 30, 2021 and 2020, we capitalized $61 million and $82 million, respectively, under these programs. The amortization expense related to these programs was $75 million and $56 million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021 and December 31, 2020, we had a total of $325 million and $339 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 “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Advertising Costs

We recognize advertising expense when incurred as a component of selling, general and administrative expense. Advertising expenses totaled $96 million and $90 million for the three months ended June 30, 2021 and 2020, respectively. Advertising expenses totaled $179 million and $221 million for the six months ended June 30, 2021 and 2020, respectively.

Research and Development

Research and development costs are expensed as incurred and are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled $7 million and $5 million for the three months ended June 30, 2021 and 2020, respectively. Research and development costs totaled $14 million and $11 million for the six months ended June 30, 2021 and 2020, respectively.

Supplemental Data - Statements of Cash Flows

6 Months Ended

Jun. 30, 2021

Supplemental Data - Statements of Cash Flows

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,
	2021		2020

	(In thousands)
Cash paid for interest	$	326,004	$	329,923
Cash received for interest		1,808		1,962
Cash paid for income taxes		21,732		3,205
Cash paid for income taxes to DISH Network		290,046		176,964

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 are a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and are 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.

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

6 Months Ended

Jun. 30, 2021

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,
	2021		2020

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	438,543	$	132,593
Restricted marketable investment securities (1)		—		—
Total marketable investment securities		438,543		132,593

Restricted cash and cash equivalents (1)		58,024		58,323

Other investment securities:
Other investment securities		98,701		97,306
Total other investment securities		98,701		97,306

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	595,268	$	288,222

(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, 2021 and December 31, 2020, 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. 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, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	1,442,569	$	155,933	$	1,286,636	$	—	$	1,278,971	$	172,025	$	1,106,946	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	22,476	$	22,476	$	—	$	—
Commercial paper		345,252		—		345,252		—		101,959		—		101,959		—
Corporate securities		92,768		—		92,768		—		8,068		—		8,068		—
Other		523		—		523		—		90		—		90		—
Total	$	438,543	$	—	$	438,543	$	—	$	132,593	$	22,476	$	110,117	$	—

As of June 30, 2021, restricted and non-restricted marketable investment securities included debt securities of $439 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.

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:	2021		2020		2021		2020

	(In thousands)
Costs related to early redemption of debt	$	(987)	$	—	$	(3,587)	$	—
Equity in earnings (losses) of affiliates		660		(399)		1,563		(121)
Other		40		247		229		914
Total	$	(287)	$	(152)	$	(1,795)	$	793

Inventory

6 Months Ended

Jun. 30, 2021

Inventory

Inventory

5.	Inventory

Inventory consisted of the following:


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Finished goods	$	209,662	$	226,866
Work-in-process and service repairs		18,177		25,206
Raw materials		9,964		10,225
Total inventory	$	237,803	$	262,297

Property and Equipment

6 Months Ended

Jun. 30, 2021

Property and Equipment

Property and Equipment

6.	Property and Equipment

Property and equipment consisted of the following:


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2021		2020

		(In thousands)
Equipment leased to customers	2-5	$	1,626,487	$	1,719,778
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		1,994,117		1,969,107
Buildings and improvements	5-40		297,464		301,037
Land	-		12,505		13,186
Construction in progress	-		47,653		51,800
Total property and equipment			5,065,246		5,141,928
Accumulated depreciation			(3,645,082)		(3,577,224)
Property and equipment, net		$	1,420,164	$	1,564,704

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(In thousands)
Equipment leased to customers	$	63,527	$	69,489	$	127,789	$	149,171
Satellites		23,796		23,796		47,593		47,593
Buildings, furniture, fixtures, equipment and other		24,068		29,584		51,251		61,190
Total depreciation and amortization	$	111,391	$	122,869	$	226,633	$	257,954

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, 2021, 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 2022
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2021
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 2022

(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.

Leases

6 Months Ended

Jun. 30, 2021

Leases

Leases

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 11 years, some of which include renewal options, and some of which include options to terminate the leases within one year.

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,				June 30,
	2021		2020		2021		2020

	(In thousands)
Operating lease cost	$	57,682	$	61,808	$	117,705	$	123,523

Short-term lease cost (1)		6,600		3,733		10,836		6,400

Finance lease cost:
Amortization of right-of-use assets		12,374		12,300		24,748		24,748
Interest on lease liabilities		3,428		4,534		7,144		9,332
Total finance lease cost		15,802		16,834		31,892		34,080
Total lease costs	$	80,084	$	82,375	$	160,433	$	164,003

(1)

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,
	2021		2020

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	115,658	$	123,811
Operating cash flows from finance leases	$	6,944	$	9,332
Financing cash flows from finance leases	$	24,948	$	23,227

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	15,000	$	17,967
Finance leases	$	—	$	—

Supplemental balance sheet information related to leases was as follows:


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Operating Leases:
Operating lease assets	$	291,139	$	380,968

Other current liabilities	$	153,372	$	186,967
Operating lease liabilities		138,432		192,624
Total operating lease liabilities	$	291,804	$	379,591

Finance Leases:
Property and equipment, gross	$	398,875	$	398,875
Accumulated depreciation		(275,821)		(251,073)
Property and equipment, net	$	123,054	$	147,802

Other current liabilities	$	49,452	$	49,820
Other long-term liabilities		86,774		110,789
Total finance lease liabilities	$	136,226	$	160,609

Weighted Average Remaining Lease Term:
Operating leases		2.9 years		2.9 years
Finance leases		2.9 years		3.3 years

Weighted Average Discount Rate:
Operating leases		8.5%		8.7%
Finance leases		9.7%		9.6%

Maturities of lease liabilities as of June 30, 2021 were as follows:


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

	(In thousands)
2021 (remaining six months)	$	96,770	$	31,306	$	128,076
2022		140,318		50,227		190,545
2023		34,120		42,862		76,982
2024		15,068		32,147		47,215
2025		8,723		—		8,723
Thereafter		35,542		—		35,542
Total lease payments		330,541		156,542		487,083
Less: Imputed interest		(38,737)		(20,316)		(59,053)
Total		291,804		136,226		428,030
Less: Current portion		(153,372)		(49,452)		(202,824)
Long-term portion of lease obligations	$	138,432	$	86,774	$	225,206

Long-Term Debt and Finance Lease Obligations

6 Months Ended

Jun. 30, 2021

Long-Term Debt and Finance Lease Obligations

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, 2021 and December 31, 2020:


	As of
	June 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
6 3/4% Senior Notes due 2021 (1)	$	—	$	—	$	2,000,000	$	2,047,260
5 7/8% Senior Notes due 2022		2,000,000		2,089,720		2,000,000		2,095,820
5 % Senior Notes due 2023		1,500,000		1,574,640		1,500,000		1,566,300
5 7/8% Senior Notes due 2024		2,000,000		2,151,060		2,000,000		2,099,580
7 3/4% Senior Notes due 2026		2,000,000		2,267,460		2,000,000		2,236,520
7 3/8% Senior Notes due 2028		1,000,000		1,078,150		1,000,000		1,070,130
5 1/8% Senior Notes due 2029		1,500,000		1,482,660		—		—
Other notes payable		23,565		23,565		23,565		23,565
Subtotal		10,023,565	$	10,667,255		10,523,565	$	11,139,175
Unamortized deferred financing costs and debt discounts, net		(20,031)				(12,684)
Finance lease obligations (2)		136,226				160,609
Total long-term debt and finance lease obligations (including current portion)	$	10,139,760			$	10,671,490

(1)	During the six months ended June 30, 2021, we repurchased $349 million of our 6 3/4% Senior Notes due 2021 in open market trades. The remaining balance of $1.651 billion was redeemed on June 1, 2021.

(2)	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).

5 1/8% Senior Notes due 2029

On May 24, 2021, we issued $1.5 billion aggregate principal amount of our 5 1/8% Senior Notes due June 1, 2029. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash, in arrears on June 1 and December 1 of each year, commencing on December 1, 2021.

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. Prior to June 1, 2024, we may also redeem up to 35% of the 5 1/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions.

Our 5 1/8% Senior Notes are:

●

general unsecured senior obligations of DISH DBS Corporation (“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 5 1/8% 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 5 1/8% 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.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies

Commitments and Contingencies

9.Commitments and Contingencies

Commitments

DISH Network’s 5G Network Deployment

DISH Network has directly invested over $12 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 $22 billion, as described further below.

DISH Network Spectrum

DISH Network has directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets. DISH Network’s wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. DISH Network plans to commercialize its wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (the “5G Network Deployment”). DISH Network currently expects capital expenditures, excluding capitalized interest, for its 5G Network Deployment to be approximately $10 billion. DISH Network will need to make significant additional investments or partner with others to, among other things, complete its 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly.

In addition, as DISH Network completes its 5G Network Deployment, DISH Network 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 complete its 5G Network Deployment 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. (“T-Mobile”) and Sprint Corporation (“Sprint” and together with T-Mobile, the “Sellers” and given the consummation of the Sprint T-Mobile 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 “Boost Mobile Acquisition”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and T-Mobile completed the Boost Mobile Acquisition.

In connection with the Boost Mobile Acquisition, DISH Network and T-Mobile 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 T-Mobile to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of T-Mobile (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 5 “Acquisitions – Boost Mobile Acquisition” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 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

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 11 “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, 2021.

We have made and may make additional cash distributions to DISH Network so that DISH Network may fund 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, continue investing in our business and to pursue acquisitions and other strategic transactions.

See Note 11 “Commitments and Contingencies – Commitments” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 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.

American Patents

On November 23, 2020, American Patents LLC, filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C., and a third party, Arcadyan Technology Corporation in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of United States Patent No. 7,088,782 (the “782 patent”), entitled “Time and Frequency Synchronization In Multi-Input and Multi-Output (MIMO) Systems”; United States Patent No. 7,310,304 (the “304 patent”), entitled “Estimating Channel Parameters in Multi-Input, Multi-Output (MIMO) Systems”; United States Patent No. 7,706,458 (the “458 patent”), entitled “Time And Frequency Synchronization in Multi-Input, Multi-Output (MIMO) Systems”; and United States Patent No. 6,847,803 (the “803 patent”), entitled “Method for Reducing Interference in a Receiver.” The four patents are asserted against wireless 802.11 standard-compliant devices.

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

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. On January 21, 2021, the United States Patent and Trademark Office agreed to institute proceedings on one of the petitions challenging the 026 patent; on January 27, 2021, it agreed to institute proceedings on one of the petitions challenging the 269 patent; on February 4, 2021, it agreed to institute proceedings on one of the petitions challenging the 791 patent; and on February 12, 2021, it agreed to institute proceedings on one of the petitions challenging the 388 patent. Trial in this matter has been set for November 15, 2021.

Cedar Lane Technologies

On October 13, 2020, Cedar Lane Technologies Inc. (“Cedar Lane Technologies”) 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. 6,502,194 (the “194 patent”), entitled “System for playback of network audio material on demand”; United States Patent No. 6,526,411 (the “411 patent”), entitled “System and method for creating dynamic playlists”; United States Patent No. 6,721,489 (the “489 patent”), entitled “Play list manager”; United States Patent No. 7,173,177 (the “177 patent”), entitled “User interface for simultaneous management of owned and unowned inventory”; United States Patent No. 7,642,443 (the “443 patent”), entitled “User interface for simultaneous management of owned and unowned inventory”; and United States Patent No. 8,165,867 (the “867 patent”), entitled “Methods for translating a device command.” Generally, the asserted patents relate to streaming digital audio to a home audio system; aspects of play lists and purchased content; and voice control. Cedar Lane Technologies is a non-practicing entity that has filed more than 75 patent infringement lawsuits. On March 11, 2021, pursuant to a stipulation of the parties, the Court dismissed the case without prejudice. This matter is now concluded.

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 (“City of Hallandale”) 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. The Court granted, in part, the plaintiff’s motion for class certification on January 15, 2021. The trial of this matter is scheduled to start sometime during the five-week “stack” beginning September 7, 2021. See Note 14 “Related Party Transactions” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 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.

The parties have entered into a global settlement agreement, subject to court approval. The parties’ joint motion for preliminary approval has been approved and the final approval hearing has been scheduled for December 6, 2021.

If the settlement is not approved, 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.

On October 16, October 21, November 2, 2020 and November 9, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of the asserted claims of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 2, November 20, December 14 and December 15, 2020, the United States Patent and Trademark Office granted each request for reexamination. On May 7, 2021, May 25, 2021, June 25, 2021 and July 7, 2021, the United States Patent and Trademark Office issued Ex Parte Reexamination Certificates confirming the patentability of the challenged claims of, respectively, the 799 patent, the 784 patent, the 318 patent and the 970 patent. 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”), entitled “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. Following Contemporary’s decision not to file Patent Owner Responses to DISH Network L.L.C.’s petitions on the 842 patent and the 903 patent, on April 24, 2020, the United States Patent and Trademark Office entered judgments granting those petitions and canceling the challenged claims of those patents. On November 25, 2020 and December 18, 2020, respectively, the United States Patent and Trademark Office issued final written decisions invalidating all challenged claims of, respectively, the 643 patent and the 997 patent. On February 12, 2021, Contemporary Display noticed an appeal to the United States Court of Appeals for the Federal Circuit challenging the final written decision as to the 997 patent, and on June 15, 2021, it filed its opening brief. 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.

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. 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, but its petition was denied on October 13, 2020. On November 6, 2020, it filed a petition for rehearing on the United States Supreme Court’s decision not to hear a further appeal, but on November 17, 2020, the Supreme Court rejected that petition.

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, but those petitions were denied on June 9, 2020. On November 6, 2020, Customedia served a petition to the United States Supreme Court asking it to hear a further appeal. On June 16, 2021, the Patent and Trademark Office issued a certificate cancelling the challenged claims of the 437 patent and, on July 9, 2021, it issued certificates cancelling the challenged claims of the 090 and 494 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.

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. On December 30, 2020, the Court entered an order severing and staying the claims against DISH Network and certain other defendants not involved in the manufacturing of the accused chips. On April 22, 2021, the parties filed a stipulation of dismissal with prejudice of all claims against DISH Network. This matter is now concluded.

Optic153

On January 29, 2021, Optic153 LLC (“Optic 153”) filed a complaint in the United States District Court for the Western District of Texas against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C and Dish Network Service L.L.C. The complaint alleges infringement of U.S. Patent No. 6,115,174 (the “174 patent”), entitled “Optical Signal Varying Devices”; U.S. Patent No. 6,236,487 (the “487 patent”), entitled “Optical Communication Control System”; U.S. Patent No. 6,344,922 (the “922 patent”), entitled “Optical Signal Varying Devices”; U.S. Patent No. 6,356,383 (the “383 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers Apparatuses and Methods”; U.S. Patent No. 6,587,261 (the “261 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers Apparatuses and Methods of Use Therein”; and U.S. Patent No. 6,771,413 (the “413 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers, Apparatuses and Methods.” In general, the patents relate to various aspects of the provisioning of fiber optics communications. On April 26, 2021, Optic153 filed a request for dismissal of its claims against DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. 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 L.L.C., Sling Media L.L.C. and Arris Group, Inc. streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent.

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

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 (and, on January 10, 2020, issued a final written decision invalidating the 535 patent in connection with a third party’s independent 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. On June 29, 2020, the United States Patent and Trademark Office filed a notice of intervention in the appeal. On March 16, 2021, the Court of Appeals dismissed the appeal for lack of jurisdiction. On April 29, 2021, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a petition for rehearing, which was denied on June 28, 2021. On January 12, 2021, Realtime Adaptive Streaming filed a notice of dismissal of its claims on the 535 patent.

On July 30, 2021, the District Court granted summary judgment in favor of DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C., holding that the remaining asserted patent, the 610 patent, is invalid because it claims patent-ineligible abstract subject matter. On August 7, 2020, the United States Patent and Trademark Office granted a request for ex parte reexamination of the validity of the 610 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. 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.” All but the 133 patent is also asserted in the complaint against Sling TV L.L.C.

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. On November 25, 2020, the United States Patent and Trademark Office declined to review the validity of the 213 patent, and on December 18, 2020, DISH Network L.L.C., DISH Technologies L.L.C. and Sling TV L.L.C. filed a request for rehearing of that decision. On January 19, 2021, the United States Patent and Trademark Office agreed to institute proceedings on the 456 patent but declined to review the 133 patent. On February 24, 2021, the United States Patent and Trademark Office agreed to institute proceedings on the 796 patent. On January 26, 2021, the District Court agreed to stay the case pending the outcome of the petitions to the United States Patent and Trademark Office.

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

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 derivative 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. On August 25, 2020, the derivative plaintiffs filed a notice of appeal to the Nevada Supreme Court and that appeal has been fully briefed since June 25, 2021.

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 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. On April 13, 2021, the Court lifted the stay. On April 23 and April 26, 2021, the United States Patent and Trademark Office issued orders granting requests for ex parte reexamination of, respectively, the 158 patent and the 243 patent.

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. 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 October 3, 2021. Turner’s damages expert contends that Turner is entitled to approximately $206 million in damages. On July 13, 2021, pursuant to a joint request of the parties, the Court dismissed the case with prejudice. This matter is now concluded.

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. On December 28, 2020, the United States Patent and Trademark Office issued a final written decision upholding the validity of the challenged claims of the 273 patent, and Sling TV L.L.C. has filed a notice of appeal from that decision. On January 5, 2021, the United States Patent and Trademark Office issued a final written decision invalidating all challenged claims of the 005 patent. On January 19, 2021, the United States Patent and Trademark Office issued a final written decision invalidating all challenged claims of the 609 patent (and a second final written decision invalidating all challenged claims of the 609 patent based on a third party’s petition).

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 DISH Network’s 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 11 “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, 2021 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, and on March 23, 2021, the Court granted the motion to dismiss. On April 21, 2021, Vermont National filed a notice of appeal.

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

Waste Disposal Inquiry

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

Other

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

Financial Information for Subsidiary Guarantors

6 Months Ended

Jun. 30, 2021

Financial Information for Subsidiary Guarantors

Financial Information for Subsidiary Guarantors

10.

Financial Information for Subsidiary Guarantors

Our senior notes are fully and unconditionally guaranteed, jointly and severally on a senior unsecured basis by certain of our wholly-owned subsidiaries (the “Guarantors”).

Our 7 3/8% Senior Notes due 2028 and 5 1/8% Senior Notes due 2029 are guaranteed by our current principal operating subsidiaries. Our 5 7/8% Senior Notes due 2022, 5% Senior Notes due 2023, 5 7/8% Senior Notes due 2024 and 7 3/4% Senior Notes due 2026 are guaranteed by our current principal operating subsidiaries other than Sling TV Holding L.L.C. (“Sling TV Holding”). However, Sling TV Holding, including all of its assets and operations, is a wholly-owned subsidiary of DISH Network L.L.C., which is a Guarantor on all of our outstanding senior notes. Certain of our wholly-owned subsidiaries are designated as “Unrestricted Subsidiaries” and do not guarantee any of our senior notes. These Unrestricted Subsidiaries are non-operating entities that hold minimal or no assets.

We and our subsidiaries participate with our parent company, DISH Network, in a centralized system for the management of our cash and marketable investment securities. Please see Note 3 for further information.

The assets, liabilities and results of operations of the combined issuer and guarantors (excluding Unrestricted Subsidiaries) of the guaranteed securities are not materially different than corresponding amounts presented in the condensed consolidated financial statements of the parent company issuer. Therefore, summarized financial information of the issuer and the guarantor subsidiaries is not required.

The below descriptions apply to all of our existing senior notes. There are no material differences between our senior notes guaranteed by all of our current principal operating subsidiaries and our senior notes guaranteed by our current principal operating subsidiaries other than Sling TV Holding, a wholly-owned subsidiary of DISH Network L.L.C., which is a Guarantor on all of our outstanding senior notes.

The guarantee of a Guarantor will be deemed automatically discharged and released in accordance with the terms of the applicable indenture (i) in connection with any direct or indirect sale, conveyance or other disposition of all of the capital stock or all or substantially all of the assets of that Guarantor (including by way of merger or consolidation), if such sale or disposition is made in compliance with the applicable provisions of the indenture; (ii) if such Guarantor is dissolved or liquidated in accordance with the provisions of the indenture; (iii) if we designate any such Guarantor as an “Unrestricted Subsidiary” in compliance with the terms of the indenture; or (iv) with respect to a Guarantor which constitutes a Non-Core Asset (as such term is defined in the applicable indenture), upon the sale or other disposition of certain equity interests of such Guarantor, if such sale or disposition is made in compliance with the applicable provisions of the indenture. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the Guarantors, except those imposed by applicable law.

The rights of holders of the senior notes against the Guarantors may be limited under the U.S. Bankruptcy Code or state fraudulent transfer or conveyance law. Under certain circumstances (including a finding that a Guarantor was insolvent at the time its guarantee of the senior notes was issued), a court could hold that the obligations of a Guarantor under a guarantee may be voided or are subordinate to other obligations of the Guarantor. Each guarantee contains a provision intended to limit the Guarantor’s liability to the maximum amount that it could incur without causing the incurrence of obligations under its guarantee to be a fraudulent conveyance or transfer under U.S. federal or state law.

Disaggregation of Revenue

6 Months Ended

Jun. 30, 2021

Disaggregation of Revenue

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 service 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:	2021		2020		2021		2020

	(In thousands)
United States	$	3,203,181	$	3,144,992	$	6,358,798	$	6,302,296
Canada and Mexico		8,307		3,539		15,609		14,017
Total revenue	$	3,211,488	$	3,148,531	$	6,374,407	$	6,316,313

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:	2021		2020		2021		2020

	(In thousands)
Pay-TV subscriber and related revenue	$	3,176,710	$	3,117,334	$	6,314,097	$	6,248,234
Equipment sales and other revenue		34,778		31,197		60,310		68,079
Total	$	3,211,488	$	3,148,531	$	6,374,407	$	6,316,313

Contract Balances

6 Months Ended

Jun. 30, 2021

Contract Balances

Contract Balances

12.

Contract Balances

Our valuation and qualifying accounts as of June 30, 2021 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, 2021	$	43,233	$	19,014	$	(27,692)	$	34,555

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets.


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Contract liabilities	$	564,129	$	593,797

Our beginning of period contract liability recorded as customer contract revenue during 2021 was $553 million.

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.

Related Party Transactions

6 Months Ended

Jun. 30, 2021

Related Party Transactions

Related Party Transactions

13.

Related Party Transactions

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, 2021 and December 31, 2020, trade accounts receivable from EchoStar was $1 million. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets.

“Trade accounts payable”

As of June 30, 2021 and December 31, 2020, trade accounts payable to EchoStar was $3 million and $1 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, 2021 and 2020, we received $1 million for services provided to EchoStar. During each of the six months ended June 30, 2021 and 2020, we received $2 million 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 July 2021 and in May 2021 EchoStar exercised its third renewal option for a period ending in July 2024.

●

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 began leasing 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. In March 2021, EchoStar exercised its option to renew this lease for a one-year period ending September 2022 and amended the lease to provide the option for EchoStar to renew this lease for up to three additional years.

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 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 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, which expired in September 2020. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement effective as of 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.

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

“Cost of services”

During each of the three months ended June 30, 2021 and 2020, we incurred less than $1 million of costs for services provided to us by EchoStar. During each of the six months ended June 30, 2021 and 2020, we incurred $1 million of costs for services provided to us by EchoStar. The agreements pertaining to these expenses are discussed below.

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.

“Selling, general and administrative expenses”

During the three months ended June 30, 2021 and 2020, we incurred $5 million and $3 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. During the six months ended June 30, 2021 and 2020, we incurred $8 million and $7 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “Selling, 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 we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below:

●

Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2020, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2021.

●

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 2021. 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. 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, pursuant to the Master Transaction Agreement, DISH Network and EchoStar amended the Professional Services Agreement effective September 10, 2019 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. The Professional Services Agreement renewed on January 1, 2021 for an additional one-year period until January 1, 2022 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days’ notice. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our 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 their 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.

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. In December 2016, DISH Network and EchoStar independently exercised their respective options to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022.

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 “Service revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). For the three months ended June 30, 2021 and 2020, these payments were $2 million and $5 million, respectively. For the six months ended June 30, 2021 and 2020, these payments were $4 million and $9 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 the three months ended June 30, 2021 and 2020, we purchased broadband equipment from HNS of $2 million and $3 million, respectively, under the MSA. For the six months ended June 30, 2021 and 2020, we purchased broadband equipment from HNS of $3 million and $7 million, respectively, under the MSA.

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 DISH Network

As a result of the Master Transaction Agreement in September 2019, certain agreements that we had with EchoStar were 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.

“Cost of services”

During each of the three months ended June 30, 2021 and 2020, we incurred expenses of $56 million for satellite capacity leased from DISH Network and telemetry, tracking and control (“TT&C”) and other professional services provided to us by DISH Network. During each of the six months ended June 30, 2021 and 2020, we incurred expenses of $112 million for satellite capacity leased from DISH Network and TT&C and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Cost of services” 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, 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, 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.

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, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we had 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, 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. We have exercised our option to renew for a one-year period through September 2021. 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 “Cost of services,” 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 months ended June 30, 2021 and 2020, we recorded $8 million and $8 million, respectively, of “Depreciation and amortization expense” and $3 million and $4 million of “Interest expense, net of amounts capitalized,” respectively, related to Nimiq 5. During the six months ended June 30, 2021 and 2020, we recorded $17 million and $17 million, respectively, of “Depreciation and amortization expense” and $6 million and $8 million of “Interest expense, net of amounts capitalized,” respectively, 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, 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.

“Selling, general and administrative expenses”

During the three months ended June 30, 2021 and 2020, we incurred $1 million and $2 million, respectively, for selling, general and administrative expenses for services provided to us by DISH Network. During each of the six months ended June 30, 2021 and 2020, we incurred $3 million and $4 million, respectively, for selling, general and administrative expenses for services provided to us by DISH Network. These amounts are recorded in “Selling, 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, 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, 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 2020, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2021.

●

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, 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, 2021 and 2020, the costs associated with these services was $20 million and $18 million, respectively. During the six months ended June 30, 2021 and 2020, the costs associated with these services was $40 million and $39 million, respectively.

Related Party Transactions with NagraStar L.L.C.

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 “Cost of services” 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 “Selling, general and administrative expenses” or “Cost of services” 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,
	2021		2020		2021		2020

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	11,903	$	13,259	$	23,673	$	27,351

	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	7,816	$	9,038
Commitments to NagraStar	$	4,473	$	3,260

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,

2021

2020

2021

2020

(In thousands)

Sales:

Uplink services

1,150

1,288

2,445

2,669

As of

June 30,

December 31,

2021

2020

(In thousands)

Amounts Receivable:

Amounts receivable from Dish Mexico

2,638

3,343

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates

Fair Value Measurements

●

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

●

Revenue Recognition

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

Advertising Costs

Research and Development

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Supplemental Data - Statements of Cash Flows (Tables)

6 Months Ended

Jun. 30, 2021

Supplemental Data - Statements of Cash Flows

Schedule of supplemental cash flow and other non-cash data


	For the Six Months Ended
	June 30,
	2021		2020

	(In thousands)
Cash paid for interest	$	326,004	$	329,923
Cash received for interest		1,808		1,962
Cash paid for income taxes		21,732		3,205
Cash paid for income taxes to DISH Network		290,046		176,964

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

6 Months Ended

Jun. 30, 2021

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,
	2021		2020

	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	438,543	$	132,593
Restricted marketable investment securities (1)		—		—
Total marketable investment securities		438,543		132,593

Restricted cash and cash equivalents (1)		58,024		58,323

Other investment securities:
Other investment securities		98,701		97,306
Total other investment securities		98,701		97,306

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	595,268	$	288,222

(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.

Schedule of investments measured at fair value on a recurring basis


	As of
	June 30, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(In thousands)
Cash equivalents (including restricted)	$	1,442,569	$	155,933	$	1,286,636	$	—	$	1,278,971	$	172,025	$	1,106,946	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	—	$	—	$	—	$	—	$	22,476	$	22,476	$	—	$	—
Commercial paper		345,252		—		345,252		—		101,959		—		101,959		—
Corporate securities		92,768		—		92,768		—		8,068		—		8,068		—
Other		523		—		523		—		90		—		90		—
Total	$	438,543	$	—	$	438,543	$	—	$	132,593	$	22,476	$	110,117	$	—

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:	2021		2020		2021		2020

	(In thousands)
Costs related to early redemption of debt	$	(987)	$	—	$	(3,587)	$	—
Equity in earnings (losses) of affiliates		660		(399)		1,563		(121)
Other		40		247		229		914
Total	$	(287)	$	(152)	$	(1,795)	$	793

Inventory (Tables)

6 Months Ended

Jun. 30, 2021

Inventory

Schedule of inventory


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Finished goods	$	209,662	$	226,866
Work-in-process and service repairs		18,177		25,206
Raw materials		9,964		10,225
Total inventory	$	237,803	$	262,297

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2021

Property and Equipment

Schedule of property and equipment


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2021		2020

		(In thousands)
Equipment leased to customers	2-5	$	1,626,487	$	1,719,778
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		1,994,117		1,969,107
Buildings and improvements	5-40		297,464		301,037
Land	-		12,505		13,186
Construction in progress	-		47,653		51,800
Total property and equipment			5,065,246		5,141,928
Accumulated depreciation			(3,645,082)		(3,577,224)
Property and equipment, net		$	1,420,164	$	1,564,704

Schedule of depreciation and amortization expense


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(In thousands)
Equipment leased to customers	$	63,527	$	69,489	$	127,789	$	149,171
Satellites		23,796		23,796		47,593		47,593
Buildings, furniture, fixtures, equipment and other		24,068		29,584		51,251		61,190
Total depreciation and amortization	$	111,391	$	122,869	$	226,633	$	257,954

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 2022
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2021
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 2022

(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.

Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases

Summary of the components of lease expense


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(In thousands)
Operating lease cost	$	57,682	$	61,808	$	117,705	$	123,523

Short-term lease cost (1)		6,600		3,733		10,836		6,400

Finance lease cost:
Amortization of right-of-use assets		12,374		12,300		24,748		24,748
Interest on lease liabilities		3,428		4,534		7,144		9,332
Total finance lease cost		15,802		16,834		31,892		34,080
Total lease costs	$	80,084	$	82,375	$	160,433	$	164,003

(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,
	2021		2020

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	115,658	$	123,811
Operating cash flows from finance leases	$	6,944	$	9,332
Financing cash flows from finance leases	$	24,948	$	23,227

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	15,000	$	17,967
Finance leases	$	—	$	—

Summary of supplemental balance sheet information related to leases


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Operating Leases:
Operating lease assets	$	291,139	$	380,968

Other current liabilities	$	153,372	$	186,967
Operating lease liabilities		138,432		192,624
Total operating lease liabilities	$	291,804	$	379,591

Finance Leases:
Property and equipment, gross	$	398,875	$	398,875
Accumulated depreciation		(275,821)		(251,073)
Property and equipment, net	$	123,054	$	147,802

Other current liabilities	$	49,452	$	49,820
Other long-term liabilities		86,774		110,789
Total finance lease liabilities	$	136,226	$	160,609

Weighted Average Remaining Lease Term:
Operating leases		2.9 years		2.9 years
Finance leases		2.9 years		3.3 years

Weighted Average Discount Rate:
Operating leases		8.5%		8.7%
Finance leases		9.7%		9.6%

Summary of maturities of operating lease liabilities


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

	(In thousands)
2021 (remaining six months)	$	96,770	$	31,306	$	128,076
2022		140,318		50,227		190,545
2023		34,120		42,862		76,982
2024		15,068		32,147		47,215
2025		8,723		—		8,723
Thereafter		35,542		—		35,542
Total lease payments		330,541		156,542		487,083
Less: Imputed interest		(38,737)		(20,316)		(59,053)
Total		291,804		136,226		428,030
Less: Current portion		(153,372)		(49,452)		(202,824)
Long-term portion of lease obligations	$	138,432	$	86,774	$	225,206

Summary of maturities of finance lease liabilities

Maturities of lease liabilities as of June 30, 2021 were as follows:


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

	(In thousands)
2021 (remaining six months)	$	96,770	$	31,306	$	128,076
2022		140,318		50,227		190,545
2023		34,120		42,862		76,982
2024		15,068		32,147		47,215
2025		8,723		—		8,723
Thereafter		35,542		—		35,542
Total lease payments		330,541		156,542		487,083
Less: Imputed interest		(38,737)		(20,316)		(59,053)
Total		291,804		136,226		428,030
Less: Current portion		(153,372)		(49,452)		(202,824)
Long-term portion of lease obligations	$	138,432	$	86,774	$	225,206

Long-Term Debt and Finance Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2021

Long-Term Debt and Finance Lease Obligations

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


	As of
	June 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value

	(In thousands)
6 3/4% Senior Notes due 2021 (1)	$	—	$	—	$	2,000,000	$	2,047,260
5 7/8% Senior Notes due 2022		2,000,000		2,089,720		2,000,000		2,095,820
5 % Senior Notes due 2023		1,500,000		1,574,640		1,500,000		1,566,300
5 7/8% Senior Notes due 2024		2,000,000		2,151,060		2,000,000		2,099,580
7 3/4% Senior Notes due 2026		2,000,000		2,267,460		2,000,000		2,236,520
7 3/8% Senior Notes due 2028		1,000,000		1,078,150		1,000,000		1,070,130
5 1/8% Senior Notes due 2029		1,500,000		1,482,660		—		—
Other notes payable		23,565		23,565		23,565		23,565
Subtotal		10,023,565	$	10,667,255		10,523,565	$	11,139,175
Unamortized deferred financing costs and debt discounts, net		(20,031)				(12,684)
Finance lease obligations (2)		136,226				160,609
Total long-term debt and finance lease obligations (including current portion)	$	10,139,760			$	10,671,490

(1)	During the six months ended June 30, 2021, we repurchased $349 million of our 6 3/4% Senior Notes due 2021 in open market trades. The remaining balance of $1.651 billion was redeemed on June 1, 2021.

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

- 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

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+ Details

Disaggregation of Revenue (Tables)

6 Months Ended

Jun. 30, 2021

Disaggregation of Revenue

Revenue by geographic region


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Revenue:	2021		2020		2021		2020

	(In thousands)
United States	$	3,203,181	$	3,144,992	$	6,358,798	$	6,302,296
Canada and Mexico		8,307		3,539		15,609		14,017
Total revenue	$	3,211,488	$	3,148,531	$	6,374,407	$	6,316,313

Schedule of disaggregation of revenue


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
Category:	2021		2020		2021		2020

	(In thousands)
Pay-TV subscriber and related revenue	$	3,176,710	$	3,117,334	$	6,314,097	$	6,248,234
Equipment sales and other revenue		34,778		31,197		60,310		68,079
Total	$	3,211,488	$	3,148,531	$	6,374,407	$	6,316,313

Contract Balances (Tables)

6 Months Ended

Jun. 30, 2021

Contract Balances

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, 2021	$	43,233	$	19,014	$	(27,692)	$	34,555

Schedule of Contract balances


	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Contract liabilities	$	564,129	$	593,797

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of related party transaction


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	11,903	$	13,259	$	23,673	$	27,351

	As of
	June 30,		December 31,
	2021		2020

	(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar	$	7,816	$	9,038
Commitments to NagraStar	$	4,473	$	3,260

Dish Mexico

Schedule of related party transaction

For the Three Months Ended

For the Six Months Ended

June 30,

2021

2020

2021

2020

(In thousands)

Sales:

Uplink services

1,150

1,288

2,445

2,669

As of

June 30,

December 31,

2021

2020

(In thousands)

Amounts Receivable:

Amounts receivable from Dish Mexico

2,638

3,343

Organization and Business Activities (Details) customer in Thousands	Jun. 30, 2021 customer
Pay TV Subscribers
Organization and Business Activities
Number of subscribers	10,993
DISH TV subscribers
Organization and Business Activities
Number of subscribers	8,554
Sling TV subscribers
Organization and Business Activities
Number of subscribers	2,439

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Summary of Significant Accounting Policies
Contract cost capitalized during the period	$ 33	$ 44	$ 61	$ 82
Amortization expense related to the programs	38	$ 29	75	$ 56
Total costs capitalized	$ 325		$ 325		$ 339

Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Advertising Costs
Advertising expenses	$ 96	$ 90	$ 179	$ 221
Research and Development
Research and development costs	$ 7	$ 5	$ 14	$ 11

Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Supplemental Data - Statements of Cash Flows
Cash paid for interest	$ 326,004	$ 329,923
Cash received for interest	1,808	1,962
Cash paid for income taxes	21,732	3,205
Cash paid for income taxes to DISH Network	$ 290,046	$ 176,964

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Feb. 28, 2017
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Current marketable investment securities	$ 438,543	$ 132,593
Total marketable investment securities	438,543	132,593
Restricted cash and cash equivalents	58,024	58,323
Other investment securities	98,701	97,306
Total other investment securities	98,701	97,306
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$ 595,268	$ 288,222
NagraStar L.L.C
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities:
Ownership interest in equity method investment			50.00%

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) - Maximum	6 Months Ended
	Jun. 30, 2021
Commercial Paper [Member]
Other investment securities:
Debt term of Maturity	365 days
Corporate securities
Other investment securities:
Debt term of Maturity	18 months

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) $ in Millions	Jun. 30, 2021 USD ($)
Contractual maturities of restricted and non-restricted marketable investment securities
Debt securities with contractual maturities within one year	$ 439

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - Fair value measurements on recurring basis - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value of marketable securities
Cash equivalents (including restricted)	$ 1,442,569	$ 1,278,971
Total	438,543	132,593
U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		22,476
Commercial paper
Fair value of marketable securities
Debt securities	345,252	101,959
Corporate securities
Fair value of marketable securities
Debt securities	92,768	8,068
Other
Fair value of marketable securities
Debt securities	523	90
Level 1
Fair value of marketable securities
Cash equivalents (including restricted)	155,933	172,025
Total		22,476
Level 1 \| U.S. Treasury and agency securities
Fair value of marketable securities
Debt securities		22,476
Level 2
Fair value of marketable securities
Cash equivalents (including restricted)	1,286,636	1,106,946
Total	438,543	110,117
Level 2 \| Commercial paper
Fair value of marketable securities
Debt securities	345,252	101,959
Level 2 \| Corporate securities
Fair value of marketable securities
Debt securities	92,768	8,068
Level 2 \| Other
Fair value of marketable securities
Debt securities	$ 523	$ 90

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
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities
Costs related to early redemption of debt	$ (987)		$ (3,587)
Equity in earnings (losses) of affiliates	660	$ (399)	1,563	$ (121)
Other	40	247	229	914
Total	$ (287)	$ (152)	$ (1,795)	$ 793

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory
Finished goods	$ 209,662	$ 226,866
Work-in-process and service repairs	18,177	25,206
Raw materials	9,964	10,225
Total inventory	$ 237,803	$ 262,297

Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property and Equipment
Total property and equipment	$ 5,065,246	$ 5,141,928
Accumulated depreciation	(3,645,082)	(3,577,224)
Property and equipment, net	1,420,164	1,564,704
Equipment leased to customers
Property and Equipment
Total property and equipment	$ 1,626,487	1,719,778
Equipment leased to customers \| Minimum
Property and Equipment
Depreciable life of assets	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
Depreciable life of assets	15 years
EchoStar XVIII
Property and Equipment
Total property and equipment	$ 411,255	411,255
Depreciable life of assets	15 years
Satellites acquired under finance lease agreements
Property and Equipment
Total property and equipment	$ 398,107	398,107
Depreciable life of assets	15 years
Furniture, fixtures, equipment and other
Property and Equipment
Total property and equipment	$ 1,994,117	1,969,107
Furniture, fixtures, equipment and other \| Minimum
Property and Equipment
Depreciable life of assets	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	$ 297,464	301,037
Buildings and improvements \| Minimum
Property and Equipment
Depreciable life of assets	5 years
Buildings and improvements \| Maximum
Property and Equipment
Depreciable life of assets	40 years
Land
Property and Equipment
Total property and equipment	$ 12,505	13,186
Construction in progress
Property and Equipment
Total property and equipment	$ 47,653	$ 51,800

Property and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Depreciation and amortization expense
Depreciation and amortization expense	$ 111,391	$ 122,869	$ 226,633	$ 257,954
Equipment leased to customers
Depreciation and amortization expense
Depreciation and amortization expense	63,527	69,489	127,789	149,171
Satellites
Depreciation and amortization expense
Depreciation and amortization expense	23,796	23,796	47,593	47,593
Buildings, furniture, fixtures, equipment and other
Depreciation and amortization expense
Depreciation and amortization expense	$ 24,068	$ 29,584	$ 51,251	$ 61,190

Property and Equipment - Pay TV Satellites (Details) - Pay-TV Satellites	6 Months Ended
	Jun. 30, 2021 item
Property, Plant and Equipment [Line Items]
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator	11
Owned Satellites	2
Number of satellites leased from third parties	2
EchoStar
Property, Plant and Equipment [Line Items]
Number of satellites utilized under operating lease	1
Dish Network
Property, Plant and Equipment [Line Items]
Number of satellites utilized under operating lease	6

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2021
Leases
Renewal options, operating lease	true
Renewal options, finance lease	true
Options to terminate, operating lease	true
Options to terminate, finance lease	true
Minimum
Leases
Remaining lease terms, operating lease	1 year
Remaining lease terms, finance lease	1 year
Maximum
Leases
Remaining lease terms, operating lease	11 years
Short term lease period	12 months
Remaining lease terms, finance lease	11 years
Termination period, operating lease	1 year
Termination period, finance lease	1 year

Leases - Components of lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases
Operating lease cost	$ 57,682	$ 61,808	$ 117,705	$ 123,523
Short-term lease cost	6,600	3,733	10,836	6,400
Amortization of right-of-use assets	12,374	12,300	24,748	24,748
Interest on lease liabilities	3,428	4,534	7,144	9,332
Total finance lease cost	15,802	16,834	31,892	34,080
Total lease costs	$ 80,084	$ 82,375	$ 160,433	$ 164,003

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Leases
Operating cash flows from operating leases	$ 115,658	$ 123,811
Operating cash flows from finance leases	6,944	9,332
Financing cash flows from finance leases	24,948	23,227
Operating leases	$ 15,000	$ 17,967

Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases
Operating lease assets	$ 291,139	$ 380,968
Other current liabilities	$ 153,372	$ 186,967
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:DeferredLongTermLiabilityCharges	us-gaap:DeferredLongTermLiabilityCharges
Operating lease liabilities	$ 138,432	$ 192,624
Total operating lease liabilities	$ 291,804	$ 379,591
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiabilityNoncurrent us-gaap:AccountsPayableCurrent	us-gaap:OperatingLeaseLiabilityNoncurrent us-gaap:AccountsPayableCurrent
Property and equipment, gross	$ 5,065,246	$ 5,141,928
Accumulated depreciation	(3,645,082)	(3,577,224)
Property and equipment, net	1,420,164	1,564,704
Other current liabilities	49,452	49,820
Other long-term liabilities	86,774	110,789
Total finance lease liabilities	$ 136,226	$ 160,609
Weighted Average Remaining Lease Term: Operating leases	2 years 10 months 24 days	2 years 10 months 24 days
Weighted Average Remaining Lease Term: Finance leases	2 years 10 months 24 days	3 years 3 months 18 days
Weighted Average Discount Rate: Operating leases	8.50%	8.70%
Weighted Average Discount Rate: Finance leases	9.70%	9.60%
Property and equipment [Member]
Leases
Property and equipment, gross	$ 398,875	$ 398,875
Accumulated depreciation	(275,821)	(251,073)
Property and equipment, net	$ 123,054	$ 147,802

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Maturities of lease liabilities: Operating lease
2021 (remaining six months)	$ 96,770
2022	140,318
2023	34,120
2024	15,068
2025	8,723
Thereafter	35,542
Total lease payments	330,541
Less: Imputed interest	(38,737)
Total operating lease liabilities	291,804	$ 379,591
Less: Current portion	(153,372)	(186,967)
Operating lease liabilities	138,432	192,624
Maturities of lease liabilities: Finance lease
2021 (remaining six months)	31,306
2022	50,227
2023	42,862
2024	32,147
Total lease payments	156,542
Less: Imputed interest	(20,316)
Total finance lease liabilities	136,226	160,609
Less: Current portion	(49,452)	(49,820)
Long-term portion of lease obligations	86,774	$ 110,789
Future minimum payments for total lease liabilities
2021 (remaining six months)	128,076
2022	190,545
2023	76,982
2024	47,215
2025	8,723
Thereafter	35,542
Total lease payments	487,083
Less: Imputed interest	(59,053)
Total	428,030
Less: Current portion	(202,824)
Long-term portion of lease obligations	$ 225,206

Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 01, 2021	May 24, 2021	Dec. 31, 2020
Long-term debt
Finance lease obligations	$ 136,226			$ 160,609
Decrease in mortgages and other notes payable	3,368
6 3/4% Senior Notes due 2021
Long-term debt
Debt repurchased	$ 349,000
Outstanding debt		$ 1,651,000
5% Senior Notes due 2023
Long-term debt
Interest rate (as a percent)	5.00%
5 1/8% Senior Notes due 2029
Long-term debt
Interest rate (as a percent)	5.125%		5.125%
Redemption price as a percentage of principal amount	100.00%
Percentage of principal amount at which notes may be required to be repurchased in event of change of control	101.00%
Aggregate principal amount			$ 1,500,000
5 1/8% Senior Notes due 2029 \| Redemption Prior to June 1, 2014 \| Maximum
Long-term debt
Percentage of principal amount redeemed	35.00%
D I S H D B S Corporation
Long-term debt
Carrying Amount	$ 10,023,565			10,523,565
Fair Value	10,667,255			11,139,175
Unamortized deferred financing costs and debt discounts, net	(20,031)			(12,684)
Finance lease obligations	136,226			160,609
Total long-term debt and finance lease obligations (including current portion)	$ 10,139,760			10,671,490
D I S H D B S Corporation \| 6 3/4% Senior Notes due 2021
Long-term debt
Carrying Amount				2,000,000
Fair Value				$ 2,047,260
Interest rate (as a percent)	6.75%			6.75%
D I S H D B S Corporation \| 5 7/8% Senior Notes due 2022
Long-term debt
Carrying Amount	$ 2,000,000			$ 2,000,000
Fair Value	$ 2,089,720			$ 2,095,820
Interest rate (as a percent)	5.875%			5.875%
D I S H D B S Corporation \| 5% Senior Notes due 2023
Long-term debt
Carrying Amount	$ 1,500,000			$ 1,500,000
Fair Value	$ 1,574,640			$ 1,566,300
Interest rate (as a percent)	5.00%			5.00%
D I S H D B S Corporation \| 5 7/8% Senior Notes due 2024
Long-term debt
Carrying Amount	$ 2,000,000			$ 2,000,000
Fair Value	$ 2,151,060			$ 2,099,580
Interest rate (as a percent)	5.875%			5.875%
D I S H D B S Corporation \| 7 3/4% Senior Notes due 2026
Long-term debt
Carrying Amount	$ 2,000,000			$ 2,000,000
Fair Value	$ 2,267,460			$ 2,236,520
Interest rate (as a percent)	7.75%			7.75%
D I S H D B S Corporation \| 7 3/8% Senior Notes due 2028
Long-term debt
Carrying Amount	$ 1,000,000			$ 1,000,000
Fair Value	$ 1,078,150			$ 1,070,130
Interest rate (as a percent)	7.375%			7.375%
D I S H D B S Corporation \| 5 1/8% Senior Notes due 2029
Long-term debt
Carrying Amount	$ 1,500,000
Fair Value	$ 1,482,660
Interest rate (as a percent)	5.125%			5.125%
D I S H D B S Corporation \| Other notes payable
Long-term debt
Carrying Amount	$ 23,565			$ 23,565
Fair Value	$ 23,565			$ 23,565

Commitments and Contingencies - Narrative Part 2 (Details) - USD ($)			6 Months Ended	156 Months Ended	162 Months Ended
	Sep. 27, 2019	Sep. 23, 2016	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2021
Dish Network
Loss contingencies
Total investment			$ 22,000,000,000	$ 22,000,000,000
Payment to acquire certain wireless licenses and related assets					$ 12,000,000,000
Turner Network Sales Litigation [Member]
Loss contingencies
Incremental loss contingency			206,000,000		$ 206,000,000
Turner Network Sales Litigation [Member] \| Turner Network Sales
Loss contingencies
License fee payments	$ 20,000,000
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
Aggregate amount to the federal and state plaintiffs		11,000
AWS 3 Auction \| Minimum \| Northstar Wireless or Northstar Spectrum \| Vermont National Telephone Company
Loss contingencies
Claim amount		5,500
Aggregate amount to the federal and state plaintiffs		$ 5,500
Prepaid Business Sale [Member]
Loss contingencies
Payment to acquire certain wireless licenses and related assets			$ 3,590,000,000

Commitments and Contingencies - Narrative Part 3 (Details) - USD ($)			6 Months Ended	162 Months Ended
	Jul. 26, 2019	Sep. 23, 2016	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2015
NTM
Commitments and Contingencies
Purchase price	$ 1,400,000,000
Prepaid Business Sale [Member]
Commitments and Contingencies
Payment to acquire certain wireless licenses and related assets			$ 3,590,000,000
Dish Network
Commitments and Contingencies
Payment to acquire certain wireless licenses and related assets				$ 12,000,000,000
Dish Network \| Spectrum Investments
Commitments and Contingencies
5G Network deployment			10,000,000,000
Northstar Spectrum And SNR Holdco
Commitments and Contingencies
Non-controlling investments						$ 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
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
ClearPlay, Inc.
Commitments and Contingencies
Loss contingency			$ 543,000,000	$ 543,000,000

Financial Information for Subsidiary Guarantors (Details) - USD ($) $ in Thousands	Jun. 30, 2021	May 24, 2021	Dec. 31, 2020
Assets	$ 5,548,472		$ 5,468,035
Unrestricted Subsidiaries
Assets	$ 0
5% Senior Notes due 2023
Interest rate (as a percent)	5.00%
5 1/8% Senior Notes due 2029
Interest rate (as a percent)	5.125%	5.125%

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue
Revenue	$ 3,211,488	$ 3,148,531	$ 6,374,407	$ 6,316,313
United States
Disaggregation of Revenue
Revenue	3,203,181	3,144,992	6,358,798	6,302,296
Canada and Mexico
Disaggregation of Revenue
Revenue	$ 8,307	$ 3,539	$ 15,609	$ 14,017

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue
Revenue	$ 3,211,488	$ 3,148,531	$ 6,374,407	$ 6,316,313
Pay-TV video and related revenue
Disaggregation of Revenue
Revenue	3,176,710	3,117,334	6,314,097	6,248,234
Equipment sales and other revenue
Disaggregation of Revenue
Revenue	$ 34,778	$ 31,197	$ 60,310	$ 68,079

- Definition

+ References

+ Details

Contract Balances (Details) $ in Thousands	6 Months Ended
Contract Balances (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 43,233
Current Period Provision For Expected Credit Losses	19,014
Write-offs Charged Against Allowance	(27,692)
Balance at End of Period	$ 34,555
Remaining performance obligations	true

Schedule of Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Contract Balances
Contract liabilities	$ 564,129	$ 593,797
Contract liability recorded as customer contract revenue	$ 553,000

Related Party Transactions (Details) - item				1 Months Ended		12 Months Ended
Related Party Transactions (Details) - item	Dec. 21, 2012	Dec. 21, 2012	Jan. 02, 2012	May 31, 2017	Jul. 31, 2016	Dec. 31, 2009	Dec. 31, 2008
EchoStar XVI
Related Party Transaction [Line Items]
Agreement Renewal Option Term		5 years
TT&C Agreement
Related Party Transaction [Line Items]
Purchase of renewal of agreement			1 year
Number of automatic renewal period			4
Notice period for termination of agreement			12 months
EchoStar \| EchoStar XVI
Related Party Transaction [Line Items]
Agreement term from commencement of service date		4 years
Agreement Renewal Option Term					1 year
Additional term of renewal option	5 years			5 years
EchoStar \| Telesat Transponder Agreement
Related Party Transaction [Line Items]
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

Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Trade accounts receivable	$ 577,920		$ 577,920		$ 626,375
Trade accounts payable	380,777		380,777		315,661
Broadband, Wireless and Other Segments
Related Party Transaction [Line Items]
Expenses associated with services	20,000	$ 18,000	40,000	$ 39,000
Office Space from DISH Network
Related Party Transaction [Line Items]
Expenses associated with services	1,000	2,000	3,000	4,000
EchoStar
Related Party Transaction [Line Items]
Expenses associated with services	1,000	1,000	1,000	1,000
Trade accounts receivable	1,000		1,000		1,000
Trade accounts payable	3,000		3,000		$ 1,000
Equipment sales and other revenue	1,000	1,000	2,000	2,000
Dish Network
Related Party Transaction [Line Items]
Expenses associated with services	$ 56,000	$ 56,000	$ 112,000	$ 112,000

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 item	Aug. 31, 2017 item	Mar. 31, 2017	Jan. 31, 2012 item	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2009
Related Party Transaction [Line Items]
Depreciation and amortization						$ 111,391	$ 122,869	$ 226,633	$ 257,954
Interest expense, net of amounts capitalized						162,212	164,047	336,188	346,387
Revenues						3,211,488	3,148,531	6,374,407	6,316,313
Service revenue
Related Party Transaction [Line Items]
Revenues						3,176,710	3,117,334	$ 6,314,097	6,248,234
100 Inverness Lease Agreement
Related Party Transaction [Line Items]
Required notice period for termination by the reporting entity.	180 days
Nimiq 5 Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term								1 year
Depreciation and amortization						8,000	8,000	$ 17,000	17,000
Interest expense, net of amounts capitalized						3,000	4,000	6,000	8,000
Hughes Broadband Master Services Agreement [Member]
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						2,000	3,000	3,000	7,000
Hughes Broadband Master Services Agreement [Member] \| Service revenue
Related Party Transaction [Line Items]
Revenues						$ 2,000	$ 5,000	$ 4,000	$ 9,000
EchoStar \| El Paso Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options \| item					4
Agreement Renewal Option Term					3 years
EchoStar \| Professional Services Agreement \| Dish Network
Related Party Transaction [Line Items]
Minimum notice period for termination of agreement										60 days
Agreement term										1 year
Automatic renewal period										1 year
EchoStar \| 90 Inverness Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Number of consecutive three year renewal options \| item	4
Agreement Renewal Option Term	3 years
EchoStar \| Cheyenne Lease Agreement \| Dish Network
Related Party Transaction [Line Items]
Additional term of renewal option	3 years
Number of successive one year renewal options \| item	12
Agreement Renewal Option Term	1 year
Required notice period for termination by the reporting entity.	180 days
HNS \| Collocation And Antenna Space Agreements \| Dish Network
Related Party Transaction [Line Items]
Agreement Renewal Option Term			3 years
HNS \| Collocation And Antenna Space Agreements \| Dish Network
Related Party Transaction [Line Items]
Minimum required notice period for termination of agreement by related party		90 days
Notice period for termination of agreement		120 days
Number of consecutive three year renewal options \| item		4	4
Agreement Renewal Option Term		3 years
Required notice period for termination by the reporting entity.	180 days
Agreement term		5 years

Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 01, 2017	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2009
Related Party Transaction [Line Items]
Selling, general and administrative expenses		$ 332,060	$ 348,367	$ 665,134	$ 770,616
Meridian Lease Agreement
Related Party Transaction [Line Items]
Additional term of renewal option						1 year
Santa Fe Lease Agreement
Related Party Transaction [Line Items]
Additional term of renewal option						1 year	1 year
EchoStar
Related Party Transaction [Line Items]
Selling, general and administrative expenses		$ 5,000	$ 3,000	$ 8,000	$ 7,000
Dish Network \| EchoStar \| 90 Inverness Lease Agreement
Related Party Transaction [Line Items]
Agreement Renewal Option Term	3 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
	Dec. 31, 2011	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Related Party Transaction [Line Items]
Cost of sales - equipment and other		$ 24,902	$ 23,660	$ 41,177	$ 54,474
EchoStar \| Patent Cross-License Agreements \| Dish Network \| Maximum
Related Party Transaction [Line Items]
Payments to third party by related party	$ 10,000

Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 31, 2017	Aug. 19, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Feb. 28, 2017
Rovi License Agreement
Related Party Transaction [Line Items]
Agreement term		10 years
Payments to Related Parties					$ 0
Hughes Broadband Master Services Agreement [Member]
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			$ 2,000	$ 3,000	3,000	$ 7,000
EchoStar
Related Party Transaction [Line Items]
Purchases from NagraStar			1,000	1,000	1,000	1,000
NagraStar L.L.C
Related Party Transaction [Line Items]
Interest on equity method investment								50.00%
Purchases from NagraStar			11,903	13,259	23,673	27,351
Amounts payable to NagraStar			7,816		7,816		$ 9,038
Commitments to NagraStar			$ 4,473		$ 4,473		3,260
Dish Mexico
Related Party Transaction [Line Items]
Interest on equity method investment			49.00%		49.00%
Amounts receivable			$ 2,638		$ 2,638		$ 3,343
Dish Mexico \| Uplink services
Related Party Transaction [Line Items]
Sales			$ 1,150	$ 1,288	$ 2,445	$ 2,669