Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 09, 2017
Document and Entity Information
Entity Registrant Name	DISH DBS CORP
Entity Central Index Key	0001042642
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,015
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 1,174,555	$ 777,578
Marketable investment securities	3,521	3,833
Trade accounts receivable, net of allowance for doubtful accounts of $19,571 and $17,440, respectively	704,892	740,856
Inventory	373,659	422,323
Other current assets	109,862	112,745
Total current assets	2,366,489	2,057,335
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities	81,433	82,360
Property and equipment, net	1,724,857	1,890,368
FCC authorizations	635,794	635,794
Other investment securities	119,750	33,248
Other noncurrent assets, net	232,138	243,112
Total noncurrent assets	2,793,972	2,884,882
Total assets	5,160,461	4,942,217
Current Liabilities:
Trade accounts payable	294,890	504,562
Deferred revenue and other	723,780	751,397
Accrued programming	1,583,346	1,542,036
Accrued interest	257,850	265,224
Other accrued expenses (Note 8)	766,607	459,239
Current portion of long-term debt and capital lease obligations	2,137,909	938,832
Total current liabilities	5,764,382	4,461,290
Long-Term Obligations, Net of Current Portion:
Long-term debt and capital lease obligations, net of current portion	12,061,139	13,274,536
Deferred tax liabilities	755,482	776,903
Long-term deferred revenue and other long-term liabilities	218,494	221,638
Total long-term obligations, net of current portion	13,035,115	14,273,077
Total liabilities	18,799,497	18,734,367
Commitments and Contingencies (Note 8)
Stockholder's Equity (Deficit):
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding
Additional paid-in capital	1,102,098	1,097,607
Accumulated other comprehensive income (loss)	731	(117)
Accumulated earnings (deficit)	(14,745,514)	(14,891,573)
Total DISH DBS stockholder's equity (deficit)	(13,642,685)	(13,794,083)
Noncontrolling interests	3,649	1,933
Total stockholder's equity (deficit)	(13,639,036)	(13,792,150)
Total liabilities and stockholder's equity (deficit)	$ 5,160,461	$ 4,942,217

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Allowance for doubtful accounts on trade accounts receivable	$ 19,571	$ 17,440
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	1,015	1,015
Common stock, shares outstanding	1,015	1,015

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Subscriber-related revenue	$ 3,512,900	$ 3,709,799	$ 7,049,362	$ 7,370,465
Equipment sales and other revenue	30,912	37,497	65,409	89,463
Total revenue	3,543,812	3,747,296	7,114,771	7,459,928
Costs and Expenses (exclusive of depreciation shown separately below - Note 6):
Subscriber-related expenses	2,183,057	2,178,685	4,360,987	4,339,041
Satellite and transmission expenses	179,059	173,751	369,721	340,147
Cost of sales - equipment and other	24,050	29,666	50,109	69,931
Subscriber acquisition costs:
Cost of sales - subscriber promotion subsidies	22,211	35,120	42,484	86,934
Other subscriber acquisition costs	131,501	169,845	265,558	347,937
Subscriber acquisition advertising	117,907	125,880	243,754	248,555
Total subscriber acquisition costs	271,619	330,845	551,796	683,426
General and administrative expenses	179,298	176,277	304,608	368,176
Litigation expense (Note 8 )	295,695		295,695
Depreciation and amortization (Note 6)	191,314	218,929	373,342	425,122
Total costs and expenses	3,324,092	3,108,153	6,306,258	6,225,843
Operating income (loss)	219,720	639,143	808,513	1,234,085
Other Income (Expense):
Interest income	3,409	4,036	5,696	4,383
Interest expense, net of amounts capitalized	(221,943)	(191,789)	(443,234)	(383,165)
Other, net	2,477	(570)	3,425	31,675
Total other income (expense)	(216,057)	(188,323)	(434,113)	(347,107)
Income (loss) before income taxes	3,663	450,820	374,400	886,978
Income tax (provision) benefit, net	(97,120)	(172,106)	(226,899)	(335,776)
Net income (loss)	(93,457)	278,714	147,501	551,202
Less: Net income (loss) attributable to noncontrolling interests, net of tax	2,199	1,682	1,442	1,335
Net income (loss) attributable to DISH DBS	(95,656)	277,032	146,059	549,867
Comprehensive Income (Loss):
Net income (loss)	(93,457)	278,714	147,501	551,202
Other comprehensive income (loss):
Foreign currency translation adjustments	639		846
Unrealized holding gains (losses) on available-for-sale securities	(22)	111	(65)	(19,606)
Deferred income tax (expense) benefit, net	51	253	67	7,690
Total other comprehensive income (loss), net of tax	668	364	848	(11,916)
Comprehensive income (loss)	(92,789)	279,078	148,349	539,286
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax	2,199	1,682	1,442	1,335
Comprehensive income (loss) attributable to DISH DBS	$ (94,988)	$ 277,396	$ 146,907	$ 537,951

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net income (loss)	$ 147,501	$ 551,202
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	373,342	425,122
Realized and unrealized losses (gains) on investments	(1,803)	(32,322)
Non-cash, stock-based compensation	11,863	3,745
Deferred tax expense (benefit)	(22,854)	(48,496)
Other, net	12,797	49,790
Changes in current assets and current liabilities, net	194,876	32,336
Net cash flows from operating activities	715,722	981,377
Cash Flows From Investing Activities:
(Purchases) Sales and maturities of marketable investment securities, net	247	135,367
Purchases of property and equipment	(210,030)	(264,777)
Purchases of strategic investments	(90,381)
Other, net	7,569	7,858
Net cash flows from investing activities	(292,595)	(121,552)
Cash Flows From Financing Activities:
Proceeds from issuance of senior notes		2,000,000
Dividend to DISH Orbital Corporation		(1,500,000)
Redemption and repurchases of senior notes		(1,500,000)
Payments made to parent of transferred businesses	(7,098)	(48,342)
Repayment of long-term debt and capital lease obligations	(19,052)	(19,823)
Other, net		(7,548)
Net cash flows from financing activities	(26,150)	(1,075,713)
Net increase (decrease) in cash and cash equivalents	396,977	(215,888)
Cash and cash equivalents, beginning of period	777,578	420,752
Cash and cash equivalents, end of period	$ 1,174,555	$ 204,864

Organization and Business Activities	6 Months Ended
Organization and Business Activities	Jun. 30, 2017
Organization and Business Activities
Organization and Business Activities	1.Organization and Business Activities Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one primary business segment. Pay-TV We offer pay-TV services under the DISH® brand and the Sling® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). Our Sling domestic service has a single-stream service branded Sling Orange and a multi-stream service branded Sling Blue, which includes, among other things, the ability to stream on up to three devices simultaneously. All Sling branded pay-TV subscribers are included in our Pay-TV subscriber count. As of June 30, 2017, we had 13.332 million Pay-TV subscribers in the United States. As a result of the completion of the Share Exchange with EchoStar, described below, we also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. See Note 2 and Note 11 for further information.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain prior period amounts have been reclassified to conform to the current period presentation.

Principles of Consolidation

We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation.

On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplinking services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s ten percent non-voting interest in Sling TV Holding L.L.C. (the “Transferred Businesses”), and in exchange, we transferred to EchoStar the 6,290,499 shares of preferred tracking stock issued by EchoStar (the “EchoStar Tracking Stock”) and 81.128 shares of preferred tracking stock issued by Hughes Satellite Systems Corporation, a subsidiary of EchoStar (the “HSSC Tracking Stock,” and together with the EchoStar Tracking Stock, collectively, the “Tracking Stock”), that tracked the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”). In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 11 for further information.

As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Condensed Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock is recorded in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. The primary impacts to our financial statement presentation are as follows:

Our investments in the EchoStar Tracking Stock and HSSC Tracking Stock are no longer included in our Condensed Consolidated Balance Sheets.

The assets and liabilities of the Transferred Businesses are recorded in our Condensed Consolidated Balance Sheets, and the results of operations of the Transferred Businesses, including sales of set-top boxes to third parties, are recorded in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Sling TV Holding L.L.C., in which EchoStar held a 10% non-voting interest prior to the Share Exchange, is accounted for as though it was an indirect wholly-owned subsidiary of us.

Intercompany transactions between the Transferred Businesses and us, including, among others, the sale of set-top boxes and broadcast services from EchoStar to us, have been eliminated to the extent possible, including the margin EchoStar received on those sales.

Our subsequent annual and quarterly financial statements will include the results of the Transferred Businesses as described above for all periods presented in those financial statements, including periods prior to the completion of the Share Exchange. The table below includes unaudited supplemental pro forma information for revenue and net income (loss) attributable to DISH DBS on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as if the results of the Transferred Businesses were included for the three and six months ended June 30, 2016 and for the year ended December 31, 2016, respectively:



		DISH DBS (as previously reported)		Adjustments Relating to the Transferred Businesses		DISH DBS (as currently reported)
				(In thousands)
For the Three Months Ended June 30, 2016:
Total revenue	$	3,719,415	$	27,881	$	3,747,296
Net income (loss) attributable to DISH DBS	$	263,394	$	13,638	$	277,032

For the Six Months Ended June 30, 2016:
Total revenue	$	7,391,569	$	68,359	$	7,459,928
Net income (loss) attributable to DISH DBS	$	525,628	$	24,239	$	549,867

For the Year Ended December 31, 2016:
Total revenue	$	14,637,043	$	118,896	$	14,755,939
Net income (loss) attributable to DISH DBS	$	916,528	$	48,086	$	964,614

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur.

Property and Equipment

Property and equipment are stated at amortized cost less impairment losses, if any. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software.

Cost of Sales – Equipment and Other

Costs include the cost of non-subsidized sales of DBS accessories and the cost of sales of digital receivers and related components to third-party pay-TV providers, both of which include freight and royalties. Costs are generally recognized as products are delivered to customers and the related revenue is recognized.

Fair Value Measurements

We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value:

Level 1, defined as observable inputs being quoted prices in active markets for identical assets;

Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and

Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available.

As of June 30, 2017 and December 31, 2016, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities.

Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt.

Revenue Recognition

We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered.

Revenue from our Pay-TV services is recognized when programming is broadcast to subscribers. Payments received from Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” in our Condensed Consolidated Balance Sheets until earned. Revenue from equipment sales generally is recognized upon shipment to customers.

For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed.

Subscriber fees for DISH branded pay-TV equipment rental fees and other hardware related fees, including fees for DVRs, additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales, equipment upgrades and sales of streaming-capable devices for our Sling branded pay-TV services are recognized upon shipment to customers.

Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber.

We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time.

Research and Development

Research and development costs are expensed as incurred. Research and development costs totaled $9 million and $12 million for the three months ended June 30, 2017 and 2016, respectively. Research and development costs totaled $16 million and $24 million for the six months ended June 30, 2017 and 2016, respectively.

New Accounting Pronouncements

Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (“ASU 2014-09”), and has modified the standard thereafter. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our Condensed Consolidated Financial Statements and related disclosures. We have not yet selected an adoption method. While we have not determined the effect of the standard on our ongoing financial reporting, we believe that the standard will, among other things, change the allocation and timing of when revenue is recognized for those customers who have a contractual commitment to receive service for a minimum term, including time-limited discounts or free service periods. Under current accounting rules, we recognize revenue net of discounts during the promotional periods and do not recognize any revenue during free service periods. Under ASU 2014-09, revenue recognition will be accelerated for these contracts as the impact of discounts or free service periods that are considered performance obligations will be recognized uniformly over the total contractual period. In addition, the standard will require that incremental costs to obtain a customer, which represent a significant portion of our non-advertising subscriber acquisition costs, be deferred and recognized over the expected customer life, whereas our current policy is to expense these costs as incurred. As the new standard will impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems, our evaluation of the effect of the new standard is ongoing. We are currently in the process of identifying and implementing changes to our systems, processes, and internal controls to meet the requirements of the standard. The ultimate impact of adopting ASU 2014-09 for both revenue recognition and costs to obtain and fulfill contracts will depend on the promotions and offers in place during the period leading up to and after the adoption of ASU 2014-09.

Recognition and Measurement of Financial Assets and Financial Liabilities. On January 5, 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our Condensed Consolidated Financial Statements.

Leases. On February 25, 2016, the FASB issued ASU 2016-02 Leases (“ASU 2016-02”), which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our Condensed Consolidated Financial Statements.

Financial Instruments – Credit Losses. On June 16, 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. This standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2016-13 will have on our Condensed Consolidated Financial Statements and related disclosures.

Statement of Cash Flows - Update. On August 26, 2016, the FASB issued 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This update consists of eight provisions that provide guidance on the classification of certain cash receipts and cash payments. If practicable, this update should be applied using a retrospective transition method to each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This update will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2016-15 will have on our Condensed Consolidated Financial Statements.

Statement of Cash Flows: Restricted Cash. On November 17, 2016, the FASB issued ASU 2016-18 Restricted Cash (“ASU 2016-18”), which addresses the diversity where changes in restricted cash are classified on the cash flow statement. ASU 2016-18 requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-18 will have an immaterial impact on our Condensed Consolidated Financial Statements and related disclosures.

Supplemental Data - Statements of Cash Flows

6 Months Ended

Jun. 30, 2017

Supplemental Data - Statements of Cash Flows

Supplemental Data - Statements of Cash Flows

3.Supplemental Data - Statements of Cash Flows

The following table presents our supplemental cash flow and other non-cash data.


	For the Six Months Ended
	June 30,
	2017		2016
	(In thousands)
Cash paid for interest	$	443,283	$	413,342
Cash received for interest		5,696		783
Cash paid for income taxes		10,583		11,338
Cash paid for income taxes to DISH Network		242,541		329,230
Satellites and other assets financed under capital lease obligations		—		7,510

Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities.

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

6 Months Ended

Jun. 30, 2017

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

4.Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consisted of the following:


	As of
	June 30, 2017		December 31, 2016
	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	3,521	$	3,833
Restricted marketable investment securities (1)		81,277		81,679
Total marketable investment securities		84,798		85,512

Restricted cash and cash equivalents (1)		156		681

Other investment securities:
Other investment securities - equity method		111,600		25,098
Other investment securities - cost method		8,150		8,150
Total other investment securities		119,750		33,248

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	204,704	$	119,441

(1)

Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets.

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale.

Current Marketable Investment Securities

Our current marketable investment securities portfolio includes investments in equity securities and/or various debt instruments including, among others, commercial paper, corporate securities and U.S. treasury and/or agency securities.

Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days. Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months. U. S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies.

Restricted Cash, Cash Equivalents and Marketable Investment Securities

As of June 30, 2017 and December 31, 2016, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit.

Other Investment Securities

We have strategic investments in certain debt and equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. Certain of our equity method investments are detailed below.

NagraStar L.L.C. As a result of the completion of the Share Exchange on February 28, 2017, we own a 50% interest in NagraStar L.L.C. (“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.

Invidi Technologies Corporation. In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017.

Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them.

Unrealized Gains (Losses) on Marketable Investment Securities

As of June 30, 2017 and December 31, 2016, we had accumulated net unrealized losses of less than $1 million and less than $1 million, respectively. These amounts, net of related tax effect, were losses of less than $1 million and less than $1 million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below.



	As of June 30, 2017								As of December 31, 2016
	Marketable								Marketable
	Investment		Unrealized						Investment		Unrealized
	Securities		Gains		Losses		Net		Securities		Gains		Losses		Net
	(In thousands)
Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,724	$	—	$	(180)	$	(180)	$	81,982	$	13	$	(132)	$	(119)
Corporate securities		3,074		—		(2)		(2)		3,530		3		—		3
Total	$	84,798	$	—	$	(182)	$	(182)	$	85,512	$	16	$	(132)	$	(116)

As of June 30, 2017, restricted and non-restricted marketable investment securities included debt securities of $70 million with contractual maturities within one year and $15 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity.

Fair Value Measurements

Our investments measured at fair value on a recurring basis were as follows:


	As of
	June 30, 2017								December 31, 2016
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	1,094,273	$	55,589	$	1,038,684	$	—	$	702,331	$	4,126	$	698,205	$	—

Debt securities (including restricted):
U. S. Treasury and agency securities	$	81,724	$	81,724	$	—	$	—	$	81,982	$	81,982	$	—	$	—
Corporate securities		3,074		—		3,074		—		3,530		—		3,530		—
Total	$	84,798	$	81,724	$	3,074	$	—	$	85,512	$	81,982	$	3,530	$	—

During the six months ended June 30, 2017, we had no transfers in or out of Level 1 and Level 2 fair value measurements.

Inventory

6 Months Ended

Jun. 30, 2017

Inventory

Inventory

5.Inventory

Inventory consisted of the following:


	As of
	June 30, 2017		December 31, 2016
	(In thousands)
Finished goods	$	247,289	$	282,569
Work-in-process and service repairs		117,576		129,486
Raw materials		8,794		10,268
Total inventory	$	373,659	$	422,323

Property and Equipment

6 Months Ended

Jun. 30, 2017

Property and Equipment

Property and Equipment

6.Property and Equipment

Property and equipment consisted of the following:


	Depreciable
	Life		As of
	(In Years)	June 30, 2017			December 31, 2016
		(In thousands)
Equipment leased to customers	2-5	$	2,429,614	$	2,630,269
EchoStar XV	15		277,658		277,658
Satellites acquired under capital lease agreements	10-15		499,819		499,819
Furniture, fixtures, equipment and other	1-10		1,630,642		1,541,838
Buildings and improvements	1-40		290,095		287,612
Land	-		14,057		14,057
Construction in progress	-		59,811		87,887
Total property and equipment			5,201,696		5,339,140
Accumulated depreciation			(3,476,839)		(3,448,772)
Property and equipment, net		$	1,724,857	$	1,890,368

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(In thousands)
Equipment leased to customers	$	140,428	$	173,008	$	271,545	$	331,017
Satellites		15,262		15,262		30,523		30,523
Buildings, furniture, fixtures, equipment and other		35,624		30,659		71,274		63,582
Total depreciation and amortization	$	191,314	$	218,929	$	373,342	$	425,122

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers.

Pay-TV Satellites. We currently utilize 13 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar and one satellite that we lease from DISH Network, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement.

As of June 30, 2017, our pay-TV satellite fleet consisted of the following:


		Degree	Estimated Useful Life
	Launch	Orbital	(Years) / Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	15

Leased from DISH Network (1):
EchoStar XVIII	June 2016	61.5	Month to month

Leased from EchoStar (2):
EchoStar VII (3)	February 2002	119	June 2018
EchoStar IX	August 2003	121	Month to month
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XII	July 2003	61.5	September 2017
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (4)	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2019
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2019

(1)

See Note 11 for further information on our Related Party Transactions with DISH Network.

(2)

See Note 11 for further information on our Related Party Transactions with EchoStar.

(3)

We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite.

(4)

We have the option to renew this lease for an additional five-year period.

Long-Term Debt

6 Months Ended

Jun. 30, 2017

Long-Term Debt

Long-Term Debt

7.Long-Term Debt

Fair Value of our Long-Term Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of June 30, 2017 and December 31, 2016:


	As of
	June 30, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
4 5/8% Senior Notes due 2017 (1)	$	900,000	$	902,016	$	900,000	$	913,887
4 1/4% Senior Notes due 2018 (2)		1,200,000		1,215,768		1,200,000		1,228,464
7 7/8% Senior Notes due 2019		1,400,000		1,542,282		1,400,000		1,559,698
5 1/8% Senior Notes due 2020		1,100,000		1,152,580		1,100,000		1,141,866
6 3/4% Senior Notes due 2021		2,000,000		2,223,020		2,000,000		2,178,880
5 7/8% Senior Notes due 2022		2,000,000		2,155,060