Supplemental Financial Information

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

Research and Development

The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses:

	For the years ended December 31,
	2019		2018		2017
Cost of sales - equipment	$	24,495	$	23,422	$	27,899
Research and development expenses	25,739		27,570		31,745

Advertising Costs

We incurred advertising expense of $88.2 million, $75.8 million and $64.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Other Current Assets, Other Non-Current Assets, Net and Accrued Expenses and Other Current Liabilities

Other current assets, Other non-current assets, net and Accrued expenses and other current liabilities consist of the following:

	As of December 31,
	2019		2018
Other current assets:
Trade accounts receivable - DISH Network	$	10,683	$	14,200
Inventory	79,621		75,379
Prepaids and deposits	67,014		57,691
Other	22,213		18,539
Total other current assets	$	179,531	$	165,809
Other non-current assets, net:
Other receivables - DISH Network	$	92,892	$	95,114
Restricted marketable investment securities	8,093		9,474
Restricted cash	2,458		1,189
Deferred tax assets, net	7,251		4,310
Capitalized software, net	101,786		96,760
Contract acquisition costs, net	96,723		104,013
Contract fulfillment costs, net	3,010		3,240
Other	22,628		24,290
Total other non-current assets, net	$	334,841	$	338,390
Accrued expenses and other current liabilities:
Trade accounts payable - DISH Network	$	1,923	$	1,698
Accrued interest	42,622		45,350
Accrued compensation	50,787		54,242
Accrued taxes	18,525		16,013
Operating lease obligation	14,651		—
Other	141,885		64,395
Total accrued expenses and other current liabilities	$	270,393	$	181,698

Capitalized Software Costs

As of December 31, 2019 and 2018, the net carrying amount of externally marketed software was $101.8 million and $96.8 million, respectively, of which $38.8 million and $28.8 million, respectively, was under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $29.3 million, $31.6 million and $31.3 million and recorded related amortization expense of $24.3 million, $23.0 million and $19.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. The weighted average useful life of our externally marketed software was three years as of December 31, 2019.

Cash and Cash Equivalents and Restricted Cash

The following table reconciles cash and cash equivalents and restricted cash, as presented in the Consolidated Balance Sheets to the total of the same as presented in the Consolidated Statements of Cash Flows:

	For the years ended December 31,
	2019		2018		2017
Cash and cash equivalents, including restricted amounts, beginning of period:
Cash and cash equivalents	$	928,306	$	2,431,456	$	2,571,143
Restricted cash	1,189		793		723
Total cash and cash equivalents, included restricted amounts, beginning of period	$	929,495	$	2,432,249	$	2,571,866
Cash and cash equivalents, including restricted amounts, end of period:
Cash and cash equivalents	$	1,519,431	$	928,306	$	2,431,456
Restricted cash	2,458		1,189		793
Total cash and cash equivalents, included restricted amounts, end of period	$	1,521,889	$	929,495	$	2,432,249

Non-cash Investing and Financing Activities

The following table presents the non-cash investing and financing activities:

	For the years ended December 31,
	2019			2018		2017
Employee benefits paid in Class A common stock	$	6,654		$	7,605	$	11,200
Property and equipment financed under finance lease obligations	349			364		8,484
Increase (decrease) in capital expenditures included in accounts payable, net	(11,111		)	7,318		(3,831		)
Capitalized in-orbit incentive obligations	—			—		43,890
Non-cash net assets exchanged for Tracking Stock (Note 5)	—			—		299,888
Non-cash net assets exchanged for BSS Transaction (Note 5)	532,855			—		—
Non-cash net assets received in exchange for a 20% ownership interest in our existing Brazilian subsidiary	94,918			—		—