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Segment Reporting | 12 Months Ended
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Dec. 31, 2015
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 the following three primary business segments: 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 Technologies (“ETC”) — which designs, develops and distributes secure end-to-end video technology solutions including digital set-top boxes and related products and technology, primarily for satellite TV service providers and telecommunication 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 and Dish Mexico. In addition, we provide our TV Anywhere technology through Slingbox® units directly to consumers via retail outlets and online, as well as to the pay-TV operator market. Beginning in 2015, this segment also includes Move Networks, our over-the-top (“OTT”), Streaming Video on Demand (“SVOD”) platform business, which includes assets acquired from Sling TV Holding L.L.C. (formerly DISH Digital Holding L.L.C.), and primarily provides support services to DISH Network’s Sling TV operations. In 2016, we plan to introduce a security and home automation solution provided directly to consumers. EchoStar Satellite Services — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and occasional-use basis primarily to DISH Network, Dish Mexico, U.S. government service providers, 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 incurred in certain satellite development programs and other 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. The Hughes Retail Group is included in our Hughes segment and our CODM reviews separate HRG financial information only to the extent such information is included in our periodic filings with the SEC. Therefore, we do not consider HRG to be a separate operating segment. Prior to 2015, our Move Networks business, including certain assets distributed to us in August 2014 in connection with the Exchange Agreement with Sling TV Holding (see Notes 6, 10 and 19), was managed separately from our existing operating segments and was reported within “All Other and Eliminations.” In the first quarter of 2015, we assigned management responsibility for our Move Networks business to our EchoStar Technologies segment, where it continues to be managed and reported as a separate reporting unit. All prior period amounts have been retrospectively adjusted to present operations of our Move Networks business in our EchoStar Technologies segment. For the years ended December 31, 2015, 2014 and 2013, transactions between segments were not significant. The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments:
|  |  |  |  |  | EchoStar |  | All |  |  |
|  |  |  | EchoStar |  | Satellite |  | Other and |  | Consolidated |
|  | Hughes |  | Technologies |  | Services |  | Eliminations |  | Total |
|  | (In thousands) |
For the Year Ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 1,344,945 |  | $ | 1,297,510 |  | $ | 489,842 |  | $ | 11,417 |  | $ | 3,143,714 |
Intersegment revenue |  | $ | 2,395 |  | $ | 688 |  | $ | 749 |  | $ | (3,832 | ) | $ | — |
Total revenue |  | $ | 1,347,340 |  | $ | 1,298,198 |  | $ | 490,591 |  | $ | 7,585 |  | $ | 3,143,714 |
EBITDA |  | $ | 396,684 |  | $ | 106,745 |  | $ | 412,607 |  | $ | (50,683 | ) | $ | 865,353 |
Capital expenditures |  | $ | 285,499 |  | $ | 50,593 |  | $ | 101,215 |  | $ | 266,213 |  | $ | 703,520 |
For the Year Ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 1,325,887 |  | $ | 1,626,826 |  | $ | 481,579 |  | $ | 11,286 |  | $ | 3,445,578 |
Intersegment revenue |  | $ | 1,831 |  | $ | 540 |  | $ | 2,876 |  | $ | (5,247 | ) | $ | — |
Total revenue |  | $ | 1,327,718 |  | $ | 1,627,366 |  | $ | 484,455 |  | $ | 6,039 |  | $ | 3,445,578 |
EBITDA |  | $ | 356,871 |  | $ | 154,786 |  | $ | 419,442 |  | $ | (28,518 | ) | $ | 902,581 |
Capital expenditures |  | $ | 218,607 |  | $ | 48,616 |  | $ | 28,734 |  | $ | 384,069 |  | $ | 680,026 |
For the Year Ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 1,215,783 |  | $ | 1,730,433 |  | $ | 326,828 |  | $ | 9,408 |  | $ | 3,282,452 |
Intersegment revenue |  | $ | 2,343 |  | $ | 412 |  | $ | 3,349 |  | $ | (6,104 | ) | $ | — |
Total revenue |  | $ | 1,218,126 |  | $ | 1,730,845 |  | $ | 330,177 |  | $ | 3,304 |  | $ | 3,282,452 |
EBITDA |  | $ | 281,513 |  | $ | 136,537 |  | $ | 235,993 |  | $ | (3,946 | ) | $ | 650,097 |
Capital expenditures |  | $ | 186,561 |  | $ | 56,935 |  | $ | 12,700 |  | $ | 135,677 |  | $ | 391,873 |
The following table reconciles total consolidated EBITDA to reported “Income (loss) before income taxes” in our consolidated statements of operations and comprehensive income (loss):
|  | For the Years Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
|  | (In thousands) |
EBITDA |  | $ | 865,353 |  | $ | 902,581 |  | $ | 650,097 |
Interest income and expense, net |  | (111,637 | ) | (162,247 | ) | (177,898 | )
Depreciation and amortization |  | (528,158 | ) | (556,676 | ) | (507,111 | )
Net income (loss) attributable to noncontrolling interests |  | (3,986 | ) | (5,325 | ) | 876 |
Income (loss) before income taxes |  | $ | 221,572 |  | $ | 178,333 |  | $ | (34,036 | )
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: |  | 2015 |  | 2014 |
|  | (In thousands) |
North America: |  |  |  |  |
United States |  | $ | 4,440,590 |  | $ | 4,313,649 |
Other |  | 1,242 |  | 585 |
All other |  | 158,253 |  | 155,229 |
Total |  | $ | 4,600,085 |  | $ | 4,469,463 |
|  | For the Years Ended December 31, |
Revenue: |  | 2015 |  | 2014 |  | 2013 |
|  | (In thousands) |
North America: |  |  |  |  |  |  |
United States |  | $ | 2,685,665 |  | $ | 2,958,539 |  | $ | 2,819,968 |
Other |  | 203,813 |  | 220,122 |  | 215,787 |
All other |  | 254,236 |  | 266,917 |  | 246,697 |
Total |  | $ | 3,143,714 |  | $ | 3,445,578 |  | $ | 3,282,452 |
Transactions with Major Customers. For the years ended December 31, 2015, 2014 and 2013, our revenue included sales to one major customer. The following table summarizes sales to this customer and its percentage of total revenue.
|  | For the Years Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
|  | (In thousands) |
Total revenue: |  |  |
DISH Network: |  |  |  |  |  |  |
Hughes segment |  | $ | 105,181 |  | $ | 112,692 |  | $ | 113,869 |
EchoStar Technologies segment |  | 1,141,435 |  | 1,443,419 |  | 1,560,905 |
EchoStar Satellite Services segment |  | 423,465 |  | 407,236 |  | 247,174 |
Other |  | 11,404 |  | 11,244 |  | 9,687 |
Total DISH Network |  | 1,681,485 |  | 1,974,591 |  | 1,931,635 |
All other |  | 1,462,229 |  | 1,470,987 |  | 1,350,817 |
Total revenue |  | $ | 3,143,714 |  | $ | 3,445,578 |  | $ | 3,282,452 |
Percentage of total revenue: |  |  |  |  |  |  |
DISH Network |  | 53.5 | % | 57.3 | % | 58.8 | %
All other |  | 46.5 | % | 42.7 | % | 41.2 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 + Details
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