Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

Related Party Transactions

20.Related Party Transactions

TerreStar Solutions

We own 40% of TSI. In May 2018, we and TSI entered into an equipment and services agreement pursuant to which we design, manufacture and install upgraded ground communications network equipment for TSI’s network and provide, among other things, warranty and support services.

The table below summarizes our transactions with TSI:

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Revenue from TSI	$	1,930	$	1,951	$	1,924
			As of December 31,
			2023		2022
			(In thousands)
Amounts receivable from TSI			$	—	$	485

Deluxe/EchoStar LLC

We own 50% of Deluxe, a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada.

The table below summarizes our transactions with Deluxe:

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Revenue from Deluxe	$	5,794	$	5,334	$	5,480
			As of December 31,
			2023		2022
			(In thousands)
Amounts receivable from Deluxe			$	1,247	$	3,026

Broadband Connectivity Solutions (Restricted) Limited

We own 20% of BCS, a joint venture that we entered into in 2018 to provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia operating over Yahsat’s Al Yah 2 and Al Yah 3 Ka-band satellites.

The table below summarizes our transactions with BCS:

	For the Years Ended December 31,
	2023		2022		2021
Revenue from BCS	$	3,426	$	7,933	$	8,278
			As of December 31,
			2023		2022
			(In thousands)
Amounts receivable from BCS			$	3,333	$	5,062

Hughes Systique

We own 42% of Hughes Systique and contract with Hughes Systique for software development services. Prior to December 31, 2023, we consolidated Hughes Systique’s financial statements into our Consolidated Financial Statements, see Note 19 for further information. As of December 31, 2023, we have deconsolidated the Hughes Systique results from our Consolidated Financial Statements and recorded the investment as a cost method investment in “Other investments, net” on our Consolidated Balance Sheets.

The table below summarizes our transactions with Hughes Systique:

	For the Year Ended
	December 31, 2023
	(In thousands)
Purchases:
Purchases from Hughes Systique	$	19,597
	As of
	December 31, 2023
	(In thousands)
Amounts Payable:
Amounts payable to Hughes Systique	$	1,704

NagraStar L.L.C.

We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

The table below summarizes our transactions with NagraStar:

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Purchases (including fees):
Purchases from NagraStar	$	37,068	$	43,416	$	45,944
			As of December 31,
			2023		2022
			(In thousands)
Amounts Payable and Commitments:
Amounts payable to NagraStar			$	9,821	$	7,422
Commitments to NagraStar			$	1,727	$	3,272