v2.4.0.6
Segment Reporting
 12 Months Ended
Dec. 31, 2012
Segment Reporting  
Segment Reporting

Note 17.            Segment Reporting

 

Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) (“CODM”) of an enterprise.  Under this definition, we operate three primary business segments.

 

·                  EchoStar Technologies — which designs, develops and distributes digital set-top boxes and related products and technology, primarily for satellite TV service providers, telecommunication and international cable companies and, with respect to Slingboxes, directly to consumers via retail outlets.  Our EchoStar Technologies segment also provides digital broadcast operations including satellite uplinking/downlinking, transmission services, signal processing, conditional access management, and other services primarily to DISH Network.

 

·                  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.  Hughes became a new segment as a result of the Hughes Acquisition.

 

·                  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, and secondarily to Dish Mexico, United States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers, and private enterprise customers.

 

The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA.  Our segment operating results do not include certain minor business activities, expenses of various corporate departments, and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt.  Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis.  During the years ended December 31, 2012, 2011 and 2010, transactions between segments were not significant.

 

The following tables present revenue, capital expenditures, and EBITDA for each of our operating segments and reconciles total consolidated EBITDA to reported “Income before income taxes” in our Consolidated Statements of Operations and Comprehensive Income (Loss):

 

 

 

 

 

 

 

EchoStar

 

All

 

 

 

Year Ended December 31,

 

EchoStar

 

 

 

Satellite

 

Other and

 

Consolidated

 

2012

 

Technologies

 

Hughes

 

Services

 

Eliminations

 

Total

 

 

 

(In thousands)

 

Total revenue

 

$

1,660,029

 

$

1,158,714

 

$

277,985

 

$

24,976

 

$

3,121,704

 

Capital expenditures

 

$

69,809

 

$

292,222

 

$

118,998

 

$

31,976

 

$

513,005

 

EBITDA

 

$

110,933

 

$

265,756

 

$

212,549

 

$

204,660

 

$

793,898

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

1,780,642

 

$

676,222

 

$

278,125

 

$

26,442

 

$

2,761,431

 

Capital expenditures

 

$

81,420

 

$

156,768

 

$

119,004

 

$

19,980

 

$

377,172

 

EBITDA

 

$

144,753

 

$

167,100

 

$

197,848

 

$

(26,895

)

$

482,806

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

2,070,672

 

$

—

 

$

262,022

 

$

17,675

 

$

2,350,369

 

Capital expenditures

 

$

66,755

 

$

—

 

$

120,450

 

$

9,531

 

$

196,736

 

EBITDA

 

$

159,713

 

$

—

 

$

183,549

 

$

174,510

 

$

517,772

 

 

 

 

For the Years Ended

 

 

 

 

 

December 31,

 

 

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

(In thousands)

 

 

 

EBITDA

 

$

793,898

 

$

482,806

 

$

517,772

 

 

 

Interest expense, net

 

(141,853

)

(71,772

)

(88

)

 

 

Depreciation and amortization

 

(457,326

)

(385,894

)

(228,911

)

 

 

Net income attributable to noncontrolling interests

 

(35

)

635

 

—

 

 

 

Income before income taxes

 

$

194,684

 

$

25,775

 

$

288,773

 

 

 

 

Geographic Information and Transactions with Major Customers

 

Geographic Information.  Revenues are attributed to geographic regions based upon the location where the goods and services are provided.  North America revenue includes transactions with North America customers.  All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America, and the Middle East.  The following table summarizes total long-lived assets and revenue attributed to the North America and other foreign locations.

 

 

 

As of December 31,

 

Long-lived assets: 

 

2012

 

2011

 

 

 

(In thousands)

 

North America:

 

 

 

 

 

United States

 

$

3,921,385

 

$

3,888,283

 

Other

 

40

 

3

 

All other

 

108,991

 

34,540

 

Total

 

$

4,030,416

 

$

3,922,826

 

 

 

 

For the Years Ended December 31,

 

Revenue: 

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

North America:

 

 

 

 

 

 

 

United States

 

$

2,403,976

 

$

2,229,498

 

$

2,010,679

 

Other

 

360,590

 

316,060

 

292,222

 

All other

 

357,138

 

215,873

 

47,468

 

Total

 

$

3,121,704

 

$

2,761,431

 

$

2,350,369

 

 

Transactions with Major Customers. For the years ended December 31, 2012, 2011 and 2010, our revenue included sales to two major customers. The following table summarizes sales to each customer and its percentage of total revenue.

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

Total revenue:

 

 

 

 

 

 

 

DISH Network:

 

 

 

 

 

 

 

EchoStar Technologies segment

 

$

1,277,038

 

$

1,413,940

 

$

1,713,983

 

Hughes segment

 

34,017

 

1,854

 

—

 

EchoStar Satellite Services segment

 

201,300

 

215,741

 

208,201

 

All Other and Eliminations

 

31,409

 

23,394

 

16,388

 

Total DISH Network

 

1,543,764

 

1,654,929

 

1,938,572

 

Bell TV (EchoStar Technologies segment)

 

222,038

 

218,329

 

202,424

 

All other

 

1,355,902

 

888,173

 

209,373

 

Total revenue

 

$

3,121,704

 

$

2,761,431

 

$

2,350,369

 

 

 

 

 

 

 

 

 

Percentage of total revenue:

 

 

 

 

 

 

 

DISH Network

 

49.5

%

59.9

%

82.5

%

Bell TV

 

7.1

%

7.9

%

8.6

%

All other

 

43.4

%

32.2

%

8.9

%