Discontinued Operations (Notes)

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 3.    Discontinued Operations

On January 31, 2017, EchoStar Corporation and certain of its subsidiaries entered into the Share Exchange Agreement. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar Corporation and certain of its subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of our EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange, we no longer operate the EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated and are of no further effect.

As a result of the Share Exchange, the historical financial results of our EchoStar Technologies segment prior to the closing of the Share Exchange are reflected in our consolidated financial statements as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The noncontrolling interest in HSS Tracking Stock, as reflected in our stockholders equity, was extinguished as of February 28, 2017 as a result of the Share Exchange.

The following table presents the operating results of our discontinued operations:

	For the Years Ended December 31,
	2017			2016			2015
	(In thousands)
Revenue:
Equipment, services and other revenue - DISH Network	$	143,118		$	1,127,610		$	1,138,571
Equipment, services and other revenue - other	10,344			118,654			156,286
Total revenue	153,462			1,246,264			1,294,857
Costs and Expenses:
Cost of equipment, services and other	121,967			1,010,421			1,034,960
Selling, general and administrative expenses	5,439			60,590			55,980
Research and development expenses	4,635			44,854			51,910
Depreciation and amortization	11,659			62,164			67,339
Impairment of long-lived assets	—			—			2,400
Total costs and expenses	143,700			1,178,029			1,212,589
Operating income	9,762			68,235			82,268
Other Income (Expense):
Interest expense	(15		)	(144		)	(30		)
Equity in earnings (losses) of unconsolidated affiliates, net	(1,159		)	2,508			4,372
Other, net	(57		)	(381		)	(4,365		)
Total income (expense), net	(1,231		)	1,983			(23		)
Income from discontinued operations before income taxes	8,531			70,218			82,245
Income tax provision	(22		)	(25,898		)	(20,966		)
Net income from discontinued operations	$	8,509		$	44,320		$	61,279

Expenditures for property and equipment of our discontinued operations totaled $12.5 million, $69.7 million and $50.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations:

	As of December 31,
	2017		2016
	(In thousands)
Assets:
Cash and cash equivalents	$	—	$	778
Trade accounts receivable, net	4		27,261
Trade accounts receivable - DISH Network	93		259,198
Inventory	—		9,824
Prepaids and deposits	—		14,463
Current assets of discontinued operations	97		311,524
Property and equipment, net	—		271,108
Goodwill	—		6,457
Other intangible assets, net	—		7,720
Investments in unconsolidated entities	—		26,203
Other noncurrent assets, net	—		5,436
Noncurrent assets of discontinued operations	—		316,924
Total assets of discontinued operations	$	97	$	628,448
Liabilities:
Trade accounts payable	$	278	$	19,518
Trade accounts payable - DISH Network	—		3,960
Current portion of capital lease obligations	—		4,323
Deferred revenue and prepayments	—		2,967
Accrued compensation	—		4,652
Accrued royalties	—		23,199
Accrued expenses and other	264		12,810
Current liabilities of discontinued operations	542		71,429
Capital lease obligations	—		416
Deferred tax liabilities, net	—		7,353
Other noncurrent liabilities	—		2,932
Noncurrent liabilities of discontinued operations	—		10,701
Total liabilities of discontinued operations	$	542	$	82,130