Note 1. Organization and Business Activities Principal Business Hughes Satellite Systems Corporation (together with its subsidiaries,  HSS,  the  Company,   we,   us  and/or  our ) is a holding company and a direct, wholly-owned subsidiary of EchoStar Corporation ( EchoStar ). We are a global provider of satellite operations, video delivery solutions, and broadband satellite technologies and services for home and office, delivering innovative network technologies, managed services, and solutions for enterprises and governments. We were formed as a Colorado corporation in March 2011 to facilitate the acquisition (the  Hughes Acquisition ) of Hughes Communications, Inc. and its subsidiaries ( Hughes Communications ) and related financing transactions. In connection with our formation, EchoStar contributed the assets and liabilities of its satellite services business, including its principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C., to us. We currently operate in two business segments. · Hughes   which provides satellite broadband Internet access to North American consumers and broadband network services and systems to the domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and networking systems solutions to customers for mobile satellite and wireless backhaul systems. · EchoStar Satellite Services   which uses certain of our owned and leased in-orbit satellites and related licenses to lease capacity on a full-time and occasional-use basis primarily to DISH Network Corporation and its subsidiaries ( DISH Network ), and secondarily to Dish Mexico, S. de R.L. de C.V. ( Dish Mexico ), a joint venture we entered into in 2008, United States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers, and private enterprise customers.