EchoStar(SATS) - 2022 Q4 - Annual Report

Financial Position - As of December 31, 2022, the company's cash, cash equivalents, and marketable investment securities totaled $1.7 billion, an increase from$1.5 billion in 2021[262]. - Total indebtedness as of December 31, 2022, was $1.5 billion, with significant liquidity requirements due to remaining debt service[279]. - The company anticipates that existing cash and marketable investment securities are sufficient to fund operations through the next twelve months[280]. Cash Flow Activities - Cash flows from operating activities decreased by$102.6 million to $529.6 million in 2022, primarily due to changes in assets and liabilities[264]. - Cash flows used for investing activities decreased by$434.1 million, mainly due to marketable investment securities net activity and a decrease in expenditures for property and equipment[265]. - Cash flows from financing activities improved by $1.1 billion, primarily due to the repurchase and maturity of senior unsecured notes[266]. Share Repurchase - The company repurchased 3,980,612 shares of Class A common stock for$89.3 million during the year ended December 31, 2022, leaving an authorization of $410.7 million[281]. Future Capital Requirements - Future capital requirements may necessitate material capital expenditures for acquisitions, investments in infrastructure, or additional satellites[279]. Risk Management - The company has foreign currency forward contracts with a notional value of$8.3 million to mitigate foreign currency exchange risk[274]. - The company does not generally carry in-orbit insurance on satellites, assessing that the cost is not economical relative to the risk of failures[277]. Revenue Recognition and Asset Impairment - The company recognizes revenue from long-term contracts over time using either the cost-to-cost input method or the units-of-delivery output method, which could significantly impact consolidated results of operations[284]. - The company evaluates long-lived assets for impairment whenever events indicate that their carrying amounts may not be recoverable, potentially leading to material impairment losses in future periods[285]. - Goodwill and intangible assets with indefinite lives are assessed for impairment annually or when circumstances suggest fair value may be less than carrying value, with significant judgment involved in the evaluation process[286]. - The company periodically evaluates investments for impairment, considering factors such as unprofitable operations and changes in business strategy, which could lead to recognition of impairment losses[288]. Tax Policy - The company's income tax policy involves recording estimated future tax effects of temporary differences and evaluating the need for valuation allowances based on historical evidence and future expectations[289]. Economic Factors - Inflation has started to impact the company's operations since 2021, leading to increased costs in certain areas, although the extent of future inflationary pressure remains uncertain[295]. - Supply chain interruptions and delays have not materially impacted operations in 2022, but could affect timely equipment deliveries and increase costs in the future[296].