Supplemental Data - Statements of Cash Flows

6 Months Ended

Jun. 30, 2024

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,
	2024		2023
	(In thousands)
Cash paid for interest (including capitalized interest)	$	629,947	$	670,379
Cash paid for interest Intercompany Loan 2026 Tranche		64,582		—
Cash received for interest		5,454		8,454
Cash paid for income taxes, net of (refunds)		(26,520)		(13,980)
Cash paid for income taxes to EchoStar, net of (refunds)		—		—
Capitalized interest (1)		451,887		648,488
Employee benefits paid in Class A common stock		—		14,671
Vendor financing		—		57,930
Accrued capital expenditures		142,568		467,040
Asset retirement obligation		8,959		54,351
Asset Transfer to EchoStar, including deferred taxes of $3,775,370 (2)		15,778,363		—
Conversion of outstanding redeemable noncontrolling interest in SNR HoldCo to noncontrolling interest		441,998		—
Orbital II Transfer from EchoStar		140,510		—

(1) See Note 2 for further information.

(2) See Note 1 for further information.

Beginning in 2024, DISH Network and its domestic subsidiaries join with EchoStar in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH Network are generally those that would have been recorded if DISH Network and its domestic subsidiaries had filed returns as a consolidated group independent of EchoStar. Cash is due and paid to EchoStar based on amounts that would be payable based on DISH Network consolidated or combined group filings. Amounts are receivable from EchoStar on a basis similar to when they would be receivable from the IRS or other state taxing authorities. During the three and six months ended June 30, 2024, no payments were made to EchoStar for income taxes.

EchoStar Exchange Offer

On March 4, 2024, EchoStar commenced a tender offer to eligible employees (which excludes EchoStar’s and our co-founders and the non-executive/non-employee members of EchoStar’s Board of Directors) to exchange eligible stock options (which excludes the Ergen 2020 Performance Award) for new options as detailed in its Schedule TO filed March 4, 2024 with the Securities and Exchange Commission (the “Exchange Offer”), to, among other things, further align employee incentives with the current market. The Exchange Offer expired on April 1, 2024 and EchoStar accepted for exchange approximately 7 million stock options. As a result of the Exchange Offer, during the second quarter of 2024, the exercise price of approximately 3 million new stock options associated with our employees, affecting approximately 800 eligible employees, was adjusted to $14.04. The total incremental non-cash stock-based compensation expense resulting from the Exchange Offer is $11 million, which will be recognized over the remaining vesting period of the applicable options.