Discontinued Operations

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 4.    Discontinued Operations

On January 31, 2017, EchoStar Corporation and certain of our subsidiaries entered into the Share Exchange Agreement, pursuant to which on February 28, 2017, among other things, we 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 former EchoStar Technologies businesses and certain other assets. Following the 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.

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 accompanying condensed 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.

We had de minimis activity from our discontinued operations for the three months ended March 31, 2018. The following table presents the operating results of our discontinued operations for the three months ended March 31, 2017:

	For the three months ended March 31, 2017
	(In thousands)
Revenue:
Equipment, services and other revenue - DISH Network	$	143,063
Equipment, services and other revenue - other	10,164
Total revenue	153,227
Costs and expenses:
Cost of equipment, services and other	121,843
Selling, general and administrative expenses	5,853
Research and development expenses	4,635
Depreciation and amortization	11,659
Total costs and expenses	143,990
Operating income	9,237
Other income (expense):
Interest expense	(15		)
Equity in losses of unconsolidated affiliates, net	(1,159		)
Other, net	(65		)
Total expense, net	(1,239		)
Income from discontinued operations before income taxes	7,998
Income tax provision	(1,421		)
Net income from discontinued operations	$	6,577

Expenditures for property and equipment from our discontinued operations totaled $12.5 million for the three months ended March 31, 2017.

Total assets and total liabilities of the discontinued operations were $0.1 million and $0.5 million, respectively, as of December 31, 2017.