Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting

Segment Reporting

16.    Segment Reporting

Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise. Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance. We currently operate two primary business segments: (1) Pay-TV; and (2) Wireless. See Note 1 for further information.

All other and eliminations primarily include intersegment eliminations related to intercompany debt and the related interest income and interest expense, which are eliminated in consolidation.

The total assets, revenue and operating income, and purchases of property and equipment (including capitalized interest related to FCC authorizations) by segment were as follows:

	As of December 31,
	2022		2021
	(In thousands)
Total assets:
Pay-TV	$	46,295,495	$	43,799,761
Wireless (1)		46,261,004		33,310,090
Eliminations (1)		(39,949,937)		(29,108,126)
Total assets	$	52,606,562	$	48,001,725

(1) The increase primarily resulted from intercompany advances to purchase the 3.45–3.55 GHz band licenses and for capital expenditures related to our 5G Network Deployment. See Note 10 for further information.

					All
					Other &		Consolidated
	Pay-TV		Wireless		Eliminations		Total
	(In thousands)
Year Ended December 31, 2022
Total revenue	$	12,505,392	$	4,180,018	$	(6,003)	$	16,679,407
Depreciation and amortization		428,472		288,601		—		717,073
Operating income (loss)		2,933,898		(888,232)		—		2,045,666
Interest income		1,872,645		5		(1,829,874)		42,776
Interest expense, net of amounts capitalized		(1,036,829)		(815,826)		1,829,874		(22,781)
Other, net		1,264		1,037,718		—		1,038,982
Income tax (provision) benefit, net		(911,955)		180,219		—		(731,736)
Net income (loss)		2,859,023		(486,116)		—		2,372,907
Year Ended December 31, 2021
Total revenue	$	12,928,707	$	4,957,272	$	(4,873)	$	17,881,106
Depreciation and amortization		538,836		186,016		—		724,852
Operating income (loss)		3,075,580		127,455		—		3,203,035
Interest income		1,346,502		6		(1,335,170)		11,338
Interest expense, net of amounts capitalized		(819,510)		(531,834)		1,335,170		(16,174)
Other, net		(2,917)		23,474		—		20,557
Income tax (provision) benefit, net		(853,362)		90,552		—		(762,810)
Net income (loss)		2,746,293		(290,347)		—		2,455,946
Year Ended December 31, 2020
Total revenue	$	12,897,413	$	2,599,842	$	(3,820)	$	15,493,435
Depreciation and amortization		613,926		100,626		—		714,552
Operating income (loss) (1)		2,903,183		(320,568)		—		2,582,615
Interest income		1,676,953		4		(1,654,223)		22,734
Interest expense, net of amounts capitalized		(922,876)		(744,321)		1,654,223		(12,974)
Other, net		2,020		(22,184)		—		(20,164)
Income tax (provision) benefit, net		(836,296)		138,021		—		(698,275)
Net income (loss)		2,822,984		(949,048)		—		1,873,936

(1) The year ended December 31, 2020 was negatively impacted by an “Impairment of long-lived assets” of $356 million. See Note 2 for further information.

	Pay-TV		Wireless		Total
	(In thousands)
Year Ended December 31, 2022
Purchases of property and equipment (including capitalized interest related to FCC authorizations)	$	131,093	$	3,580,518	$	3,711,611
Year Ended December 31, 2021
Purchases of property and equipment (including capitalized interest related to FCC authorizations)	$	173,485	$	1,790,042	$	1,963,527
Year Ended December 31, 2020
Purchases of property and equipment (including capitalized interest related to FCC authorizations)	$	317,196	$	875,310	$	1,192,506

Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All service revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States.

The following table summarizes revenue by geographic region:

	For the Years Ended December 31,
Revenue:	2022		2021		2020
	(In thousands)
United States	$	16,639,627	$	17,821,876	$	15,442,371
Canada and Mexico		39,780		59,230		51,064
Total revenue	$	16,679,407	$	17,881,106	$	15,493,435

The revenue from external customers disaggregated by major revenue source was as follows:

	For the Years Ended December 31,
Category:	2022		2021		2020
	(In thousands)
Pay-TV subscriber and related revenue	$	12,351,918	$	12,748,334	$	12,702,345
Wireless services and related revenue		3,653,909		4,142,883		2,143,703
Pay-TV equipment sales and other revenue		153,474		180,373		195,068
Wireless equipment sales and other revenue		526,109		814,389		456,139
Eliminations		(6,003)		(4,873)		(3,820)
Total	$	16,679,407	$	17,881,106	$	15,493,435