Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting

Segment Reporting

Note 14. 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.  In addition, we provide our Slingboxes directly to consumers via retail outlets and we are in discussions with original equipment manufacturers to provide our Sling technology licensing to cable and telco operators worldwide.  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.

· 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.  For the three and nine months ended September 30, 2013 and 2012, 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):

					EchoStar		All
	EchoStar				Satellite		Other and			Consolidated
	Technologies		Hughes		Services		Eliminations			Total
	(In thousands)
For the Three Months Ended September 30, 2013
Total revenue	$	456,129	$	302,217	$	85,945	$	4,617		$	848,908
Capital expenditures	$	16,246	$	49,443	$	71	$	40,811		$	106,571
EBITDA	$	42,975	$	65,620	$	68,808	$	(9,299	)	$	168,104
For the Three Months Ended September 30, 2012
Total revenue	$	416,120	$	285,974	$	65,682	$	(3,055	)	$	764,721
Capital expenditures	$	22,161	$	53,955	$	12,806	$	4,740		$	93,662
EBITDA	$	25,211	$	75,634	$	57,065	$	6,156		$	164,066
For the Nine Months Ended September 30, 2013
Total revenue	$	1,308,670	$	906,564	$	245,019	$	14,112		$	2,474,365
Capital expenditures	$	43,898	$	139,276	$	12,403	$	69,266		$	264,843
EBITDA	$	104,947	$	202,995	$	167,281	$	13,708		$	488,931
For the Nine Months Ended September 30, 2012
Total revenue	$	1,270,415	$	843,017	$	210,703	$	11,370		$	2,335,505
Capital expenditures	$	51,946	$	230,350	$	70,758	$	18,331		$	371,385
EBITDA	$	88,648	$	215,060	$	162,737	$	157,541		$	623,986

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
	(In thousands)
EBITDA	$	168,104		$	164,066		$	488,931		$	623,986
Interest expense, net	(44,731		)	(31,143		)	(138,544		)	(100,394		)
Depreciation and amortization	(124,742		)	(110,778		)	(379,585		)	(339,472		)
Net income (loss) attributable to noncontrolling interests	317			(285		)	533			(604		)
Income (loss) before income taxes	$	(1,052	)	$	21,860		$	(28,665	)	$	183,516