v2.4.0.8
Segment Reporting
 12 Months Ended
Dec. 31, 2013
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 ("CODM"), who for EchoStar is the Company's Chief Executive Officer. 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 companies and international cable companies. 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. In addition, we provide our Slingboxes directly to consumers via retail outlets and online.

    •
    Hughes—which provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and solutions to customers for mobile satellite 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, 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 real estate and other activities, costs of certain business development activities, expenses of various corporate departments and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt. These activities are accounted for in the "All Other and Eliminations" column in the table below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. For the years ended December 31, 2013, 2012 and 2011, 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 (loss) before income taxes" in our Consolidated Statements of Operations and Comprehensive Income (Loss):

 
   EchoStar
Technologies		   Hughes   EchoStar
Satellite
Services		   All
Other and
Eliminations		   Consolidated
Total		  
 
   (In thousands)
  
For the Year Ended December 31, 2013
   
    
    
    
    
  

Net revenue:

                                

External revenue

   $ 1,715,579   $ 1,215,783   $ 326,828   $ 24,262   $ 3,282,452  

Intersegment revenue

   $ 412   $ 2,343   $ 3,349   $ (6,104 ) $ —  

Total revenue

   $ 1,715,991   $ 1,218,126   $ 330,177   $ 18,158   $ 3,282,452  

Capital expenditures

   $ 56,935   $ 186,561   $ 12,700   $ 135,677   $ 391,873  

EBITDA

   $ 136,057   $ 281,513   $ 235,993   $ (3,466 ) $ 650,097  

For the Year Ended December 31, 2012

 
 
 
 
 
 
 
 
 
 
 

Net revenue:

                                

External revenue

   $ 1,658,203   $ 1,156,590   $ 275,280   $ 31,631   $ 3,121,704  

Intersegment revenue

   $ 1,826   $ 2,124   $ 2,705   $ (6,655 ) $ —  

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  

For the Year Ended December 31, 2011

 
 
 
 
 
 
 
 
 
 
 

Net revenue:

                                

External revenue

   $ 1,780,491   $ 675,586   $ 277,707   $ 27,647   $ 2,761,431  

Intersegment revenue

   $ 151   $ 636   $ 418   $ (1,205 ) $ —  

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  


 

 
   For the Years Ended December 31,  
 
   2013   2012   2011  
 
   (In thousands)
  

EBITDA

   $ 650,097   $ 793,898   $ 482,806  

Interest income and expense, net

     (177,898 )   (141,853 )   (71,772 )

Depreciation and amortization

     (507,111 )   (457,326 )   (385,894 )

Net income (loss) attributable to noncontrolling interests

     876     (35 )   635  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) before income taxes

   $ (34,036 ) $ 194,684   $ 25,775  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Geographic Information and Transactions with Major Customers

Geographic Information.    Revenue is 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:
  2013   2012  
 
   (In thousands)
  

North America:

              

United States

   $ 3,745,403   $ 3,921,385  

Other

     947     40  

All other

     150,139     108,991  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,896,489   $ 4,030,416  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           


 

 
   For the Years Ended December 31,  
Revenue:
  2013   2012   2011  
 
   (In thousands)
  

North America:

                    

United States

   $ 2,819,968   $ 2,403,976   $ 2,229,498  

Other

     215,787     360,590     316,060  

All other

     246,697     357,138     215,873  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,282,452   $ 3,121,704   $ 2,761,431  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Transactions with Major Customers.    For the years ended December 31, 2013, 2012 and 2011, 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,  
 
   2013   2012   2011  
 
   (In thousands)
  

Total revenue:

                    

DISH Network:

                    

EchoStar Technologies segment

   $ 1,546,051   $ 1,277,038   $ 1,413,940  

Hughes segment

     113,869     34,017     1,854  

EchoStar Satellite Services segment

     247,174     201,300     215,741  

All Other and Eliminations

     24,541     31,409     23,394  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total DISH Network

     1,931,635     1,543,764     1,654,929  

Bell TV (EchoStar Technologies segment)

     77,475     222,038     218,329  

All other

     1,273,342     1,355,902     888,173  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenue

   $ 3,282,452   $ 3,121,704   $ 2,761,431  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Percentage of total revenue:

                    

DISH Network

     58.8 %   49.5 %   59.9 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Bell TV

     2.4 %   7.1 %   7.9 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

All other

     38.8 %   43.4 %   32.2 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​