Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

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 have had de minimis activity from our discontinued operations for the three and nine months ended September 30, 2018. The following table presents the operating results of our discontinued operations for the three and nine months ended September 30, 2017:

	For the three months ended September 30, 2017			For the nine months ended September 30, 2017
	(In thousands)
Revenue:
Equipment, services and other revenue - DISH Network	$	—		$	143,063
Equipment, services and other revenue - other	(45		)	10,344
Total revenue	(45		)	153,407
Costs and expenses:
Cost of equipment, services and other	19			121,973
Selling, general and administrative expenses	(590		)	5,502
Research and development expenses	—			4,635
Depreciation and amortization	—			11,659
Total costs and expenses	(571		)	143,769
Operating income (expense)	526			9,638
Other income (expense):
Interest expense	—			(15		)
Equity in losses of unconsolidated affiliates, net	—			(1,159		)
Other, net	2			(61		)
Total income (expense), net	2			(1,235		)
Income from discontinued operations before income taxes	528			8,403
Income tax provision, net	(1,182		)	(1,949		)
Net income (loss) from discontinued operations	$	(654	)	$	6,454

Expenditures for property and equipment from our discontinued operations totaled $12.5 million for the nine months ended September 30, 2017.

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