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Related Party Transactions
3 Months Ended
Mar. 31, 2024
Related Party Transactions  
Related Party Transactions

13.Related Party Transactions

Hughes Systique Corporation (“Hughes Systique”)

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

The table below summarizes our transactions with Hughes Systique:

For the Three Months Ended 

    

March 31, 2024

    

(In thousands)

Purchases:

Purchases from Hughes Systique

$

4,596

As of

    

March 31, 2024

    

December 31, 2023

(In thousands)

Amounts Payable:

Amounts payable to Hughes Systique

$

1,483

$

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 Condensed 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 Condensed Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Condensed 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 Condensed Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

The table below summarizes our transactions with NagraStar:

For the Three Months Ended 

March 31,

    

2024

    

2023

    

(In thousands)

Purchases (including fees):

Purchases from NagraStar

 

$

8,602

 

$

9,545

As of

March 31,

December 31,

    

2024

    

2023

(In thousands)

Amounts Payable and Commitments:

Amounts payable to NagraStar

 

$

6,452

 

$

9,821

Commitments to NagraStar

 

$

1,177

 

$

1,727