Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Contract with customer, asset and liability

The following table presents the components of our contract balances:

	As of
	March 31, 2020			December 31, 2019
Trade accounts receivable and contract assets, net:
Sales and services	$	147,288		$	152,632
Leasing	4,301			4,016
Total trade accounts receivable	151,589			156,648
Contract assets	46,938			63,758
Allowance for doubtful accounts	(10,608		)	(23,777		)
Total trade accounts receivable and contract assets, net	$	187,919		$	196,629
Contract liabilities:
Current	$	99,266		$	101,060
Non-current	9,426			10,572
Total contract liabilities	$	108,692		$	111,632

Activity in allowance for doubtful accounts

The following table presents the activity in our allowance for doubtful accounts:

	Balance at Beginning of Period		Credit Losses (1)			Deductions			Foreign Currency Translation			Balance at End  of Period
For the three months ended:
March 31, 2020	$	23,777	$	(5,754	)	$	(6,325	)	$	(1,090	)	$	10,608
March 31, 2019	$	16,604	$	4,177		$	(6,738	)	$	(15	)	$	14,028

⁽¹⁾ The impact of adopting ASC 326 on January 1, 2020 was a net decrease to our allowance for doubtful accounts largely driven by a $13.4 million reclassification to Other current assets, net and Other non-current assets, net, offset by a $2.9 million adjustment to Accumulated earnings (losses).

The following table presents the activity in our allowance for doubtful accounts, which is included within Other, net in each of Other current assets, net and Other non-current assets, net in the table above:

	Balance at Beginning of Period		Credit Losses (1)		Deductions		Foreign Currency Translation			Balance at End  of Period
For the three months ended March 31, 2020
Other current assets, net	$	—	$	1,595	$	—	$	—		$	1,595
Other non-current assets, net	$	—	$	13,379	$	—	$	(358	)	$	13,021

⁽¹⁾ The impact of adopting ASC 326 on January 1, 2020 was a net increase to our allowance for doubtful accounts largely driven by a $13.4 million reclassification from Trade accounts receivables and contracts assets, net.

Contract acquisition costs

The following table presents our unamortized contract acquisition costs:

	As of
	March 31, 2020		December 31, 2019
Unamortized contract acquisition costs	$	110,397	$	113,592

The following table presents the amortization of our contract acquisition costs:

	For the three months ended March 31,
	2020		2019
Amortization expense	$	25,431	$	21,115

Disaggregation of revenue

The following table presents our revenue from customer contracts disaggregated by primary geographic market and by segment:

	Hughes		ESS		Corporate and Other		Consolidated Total
For the three months ended March 31, 2020
North America	$	382,715	$	4,652	$	2,440	$	389,807
South and Central America	33,956		—		92		34,048
Other	41,811		—		—		41,811
Total revenue	$	458,482	$	4,652	$	2,532	$	465,666
For the three months ended March 31, 2019
North America	$	367,829	$	4,033	$	4,872	$	376,734
South and Central America	26,863		—		140		27,003
Other	50,645		—		—		50,645
Total revenue	$	445,337	$	4,033	$	5,012	$	454,382

The following table presents our revenue disaggregated by the nature of products and services and by segment:

	Hughes		ESS		Corporate and Other		Consolidated Total
For the three months ended March 31, 2020
Services and other revenue:
Services	$	390,000	$	2,765	$	1,288	$	394,053
Lease revenue	11,173		1,887		1,244		14,304
Total services and other revenue	401,173		4,652		2,532		408,357
Equipment revenue:
Equipment	24,839		—		—		24,839
Design, development and construction services	31,557		—		—		31,557
Lease revenue	913		—		—		913
Total equipment revenue	57,309		—		—		57,309
Total revenue	$	458,482	$	4,652	$	2,532	$	465,666
For the three months ended March 31, 2019
Services and other revenue:
Services	$	380,783	$	2,817	$	1,737	$	385,337
Lease revenue	12,840		1,216		3,275		17,331
Total services and other revenue	393,623		4,033		5,012		402,668
Equipment revenue:
Equipment	25,960		—		—		25,960
Design, development and construction services	25,066		—		—		25,066
Lease revenue	688		—		—		688
Total equipment revenue	51,714		—		—		51,714
Total revenue	$	445,337	$	4,033	$	5,012	$	454,382

Schedule of Operating Lease Revenue

The following table presents our lease revenue by type of lease:

	For the three months ended March 31,
	2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	913	$	688
Interest income	69		252
Total sales-type lease revenue	982		940
Operating lease revenue	14,235		17,079
Total lease revenue	$	15,217	$	18,019

Schedule of Sales-type Lease Revenue

The following table presents our lease revenue by type of lease:

	For the three months ended March 31,
	2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	913	$	688
Interest income	69		252
Total sales-type lease revenue	982		940
Operating lease revenue	14,235		17,079
Total lease revenue	$	15,217	$	18,019

Schedule of Operating Lease Payments to be Received

The following table presents future operating lease payments to be received as of March 31, 2020:

	Amounts
Year ending December 31,
2020 (remainder)	$	32,008
2021	34,910
2022	32,052
2023	30,285
2024	28,219
2025 and beyond	123,520
Total lease payments	$	280,994

Schedule of Property and Equipment Subject to Operating Leases

The following table presents amounts for assets subject to operating leases, which are included in Property and equipment, net:

	As of
	March 31, 2020							December 31, 2019
	Cost		Accumulated Depreciation			Net		Cost		Accumulated Depreciation			Net
Customer premises equipment	$	1,409,187	$	(1,089,152	)	$	320,035	$	1,377,914	$	(1,043,431	)	$	334,483
Satellites	104,620		(33,104		)	71,516		104,620		(31,360		)	73,260
Real estate	47,243		(16,374		)	30,869		46,930		(16,048		)	30,882
Total	$	1,561,050	$	(1,138,630	)	$	422,420	$	1,529,464	$	(1,090,839	)	$	438,625

The following table presents depreciation expense for assets subject to operating leases, which is included in Depreciation and amortization:

	For the three months ended March 31,
	2020		2019
Customer premises equipment	$	45,721	$	45,812
Satellites	1,744		1,737
Real estate	232		558
Total	$	47,697	$	48,107