Segment Reporting

3 Months Ended

Mar. 31, 2014

Segment Reporting

Segment Reporting

Note 15. 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 also to Dish Mexico, U.S. 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.  The Hughes Retail Group is included in our Hughes segment and our CODM reviews 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.

The following tables present revenue, EBITDA, and capital expenditures for each of our operating segments and reconcile total consolidated EBITDA to reported “Income (loss) before income taxes” in our Condensed Consolidated Statements of Operations:

					EchoStar		All
	EchoStar				Satellite		Other and			Consolidated
	Technologies		Hughes		Services		Eliminations			Total
	(In thousands)
For the Three Months Ended March 31, 2014
External revenue	$	405,692	$	314,371	$	99,872	$	6,088		$	826,023
Intersegment revenue	$	101	$	400	$	949	$	(1,450	)	$	—
Total revenue	$	405,793	$	314,771	$	100,821	$	4,638		$	826,023
EBITDA	$	38,964	$	81,939	$	84,782	$	(13,801	)	$	191,884
Capital expenditures (1)	$	13,922	$	45,972	$	29	$	53,702		$	113,625
For the Three Months Ended March 31, 2013
External revenue	$	426,773	$	289,181	$	73,346	$	6,154		$	795,454
Intersegment revenue	$	221	$	218	$	856	$	(1,295	)	$	—
Total revenue	$	426,994	$	289,399	$	74,202	$	4,859		$	795,454
EBITDA	$	29,925	$	63,981	$	64,806	$	12,922		$	171,634
Capital expenditures (1)	$	12,311	$	44,340	$	12,272	$	3,697		$	72,620

(1) Capital expenditures consist of purchases of property and equipment reported in our Condensed Consolidated Statements of Cash Flows and do not include satellites transferred in the Satellite and Tracking Stock Transaction or other noncash capital expenditures.

	For the Three Months
	Ended March 31,
	2014			2013
	(In thousands)
EBITDA	$	191,884		$	171,634
Interest income and expense, net	(43,446		)	(47,123		)
Depreciation and amortization	(133,226		)	(126,699		)
Net loss attributable to noncontrolling interest in HSS Tracking Stock	(324		)	—
Net income attributable to noncontrolling interests	299			40
Income (loss) before income taxes	$	15,187		$	(2,148	)