Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Contract Balances

The following table presents the components of our contract balances:

	As of December 31,
	2021		2020
Trade accounts receivable and contract assets, net:
Sales and services	$	154,676	$	149,513
Leasing	5,668		4,554
Total trade accounts receivable	160,344		154,067
Contract assets	36,307		45,308
Allowance for doubtful accounts	(14,588)		(15,386)
Total trade accounts receivable and contract assets, net	$	182,063	$	183,989
Contract liabilities:
Current	$	141,343	$	104,569
Non-current	10,669		10,519
Total contract liabilities	$	152,012	$	115,088

The following table presents the revenue recognized in the Consolidated Statements of Operations that was previously included within contract liabilities:

	For the years ended December 31,
	2021		2020		2019
Revenue	$	82,633	$	72,877	$	65,417

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

	For the years ended December 31,
	2021		2020		2019
Balance at beginning of period	$	15,386	$	23,777	$	16,604
Credit losses (1)	22,591		18,582		30,027
Deductions	(23,543)		(26,031)		(21,832)
Foreign currency translation	154		(942)		(1,022)
Balance at end of period	$	14,588	$	15,386	$	23,777

(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).

Contract Acquisition Costs

The following table presents the activity in our contract acquisition costs, net:

	For the years ended December 31,
	2021		2020		2019
Balance at beginning of period	$	99,837	$	113,592	$	114,306
Additions	72,503		91,143		97,457
Amortization expense	(88,178)		(101,278)		(97,650)
Foreign currency translation	(1,176)		(3,620)		(521)
Balance at end of period	$	82,986	$	99,837	$	113,592

Performance Obligations

As of December 31, 2021, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $914.7 million. We expect to recognize 51% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount and percentages exclude agreements with consumer customers in our Hughes segment, our leasing arrangements and agreements with certain customers under which collectability of all amounts due through the term of contracts is uncertain.

Disaggregation of Revenue

Geographic Information

The following tables present our revenue from customer contracts disaggregated by primary geographic market and by segment:

	Hughes		ESS		Corporate and Other		Consolidated Total
For the year ended December 31, 2021
North America	$	1,617,229	$	17,679	$	11,782	$	1,646,690
South and Central America	176,515		—		—		176,515
Other	162,482		—		33		162,515
Total revenue	$	1,956,226	$	17,679	$	11,815	$	1,985,720
For the year ended December 31, 2020
North America	$	1,556,961	$	17,398	$	9,443	$	1,583,802
South and Central America	151,194		—		232		151,426
Other	152,679		—		—		152,679
Total revenue	$	1,860,834	$	17,398	$	9,675	$	1,887,907
For the year ended December 31, 2019
North America	$	1,527,823	$	16,257	$	16,526	$	1,560,606
South and Central America	125,458		—		448		125,906
Other	199,461		—		108		199,569
Total revenue	$	1,852,742	$	16,257	$	17,082	$	1,886,081

Nature of Products and Services

The following tables present our revenue disaggregated by the nature of products and services and by segment:

	Hughes		ESS		Corporate and Other		Consolidated Total
For the year ended December 31, 2021
Services and other revenue:
Services	$	1,646,778	$	11,961	$	5,691	$	1,664,430
Lease revenue	39,021		5,718		6,118		50,857
Total services and other revenue	1,685,799		17,679		11,809		1,715,287
Equipment revenue:
Equipment	108,767		—		6		108,773
Design, development and construction services	152,934		—		—		152,934
Lease revenue	8,726		—		—		8,726
Total equipment revenue	270,427		—		6		270,433
Total revenue	$	1,956,226	$	17,679	$	11,815	$	1,985,720
For the year ended December 31, 2020
Services and other revenue:
Services	$	1,614,730	$	10,785	$	4,631	$	1,630,146
Lease revenue	40,503		6,613		5,042		52,158
Total services and other revenue	1,655,233		17,398		9,673		1,682,304
Equipment revenue:
Equipment	110,108		—		2		110,110
Design, development and construction services	88,511		—		—		88,511
Lease revenue	6,982		—		—		6,982
Total equipment revenue	205,601		—		2		205,603
Total revenue	$	1,860,834	$	17,398	$	9,675	$	1,887,907
For the year ended December 31, 2019
Services and other revenue:
Services	$	1,535,966	$	10,464	$	6,493	$	1,552,924
Lease revenue	50,073		5,793		10,481		66,347
Total services and other revenue	1,586,039		16,257		16,974		1,619,271
Equipment revenue:
Equipment	115,052		—		107		115,159
Design, development and construction services	145,646		—		—		145,646
Lease revenue	6,005		—		—		6,005
Total equipment revenue	266,703		—		107		266,810
Total revenue	$	1,852,742	$	16,257	$	17,082	$	1,886,081

Lease Revenue

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

	For the years ended December 31,
	2021		2020		2019
Sales-type lease revenue:
Revenue at lease commencement	$	7,998	$	6,982	$	6,005
Interest income	728		393		784
Total sales-type lease revenue	8,726		7,375		6,789
Operating lease revenue	50,857		51,765		65,563
Total lease revenue	$	59,583	$	59,140	$	72,352

Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $17.1 million and $13.0 million as of December 31, 2021 and 2020, respectively.

The following table presents future operating lease payments to be received as of December 31, 2021:

	Amounts
December 31,
2022	$	45,269
2023	33,460
2024	30,847
2025	29,125
2026	28,356
2027 and beyond	71,718
Total lease payments	$	238,775

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

	As of December 31,
	2021						2020
	Cost		Accumulated Depreciation		Net		Cost		Accumulated Depreciation		Net
Customer premises equipment	$	1,778,061	$	(1,485,525)	$	292,536	$	1,617,053	$	(1,265,129)	$	351,924
Satellites	104,620		(45,309)		59,311		104,620		(38,335)		66,285
Real estate	48,275		(18,064)		30,211		48,275		(17,094)		31,181
Total	$	1,930,956	$	(1,548,898)	$	382,058	$	1,769,948	$	(1,320,558)	$	449,390

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

	For the years ended December 31,
	2021		2020		2019
Customer premises equipment	$	230,609	$	230,079	$	182,523
Satellites	6,975		6,975		7,495
Real estate	970		942		923
Total	$	238,554	$	237,996	$	190,941