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		%