SEGMENT REPORTING

12 Months Ended

Dec. 31, 2024

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 13.   SEGMENT REPORTING

Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. “OIBDA,” defined as “Operating income (loss)” plus “Depreciation and amortization,” is the primary measure used by our CODM to evaluate segment operating performance. The CODM regularly reviews budget-to-actual variances of OIBDA when evaluating segment performance and allocating resources to each segment. The CODM is not regularly provided assets in evaluating the results of our Hughes segment; therefore, such information is not presented.

Historically, we reported two primary business segments: (1) Hughes; and (2) EchoStar Satellite Services. However, based on the information provided to the CODM and to align with management’s view of the business, we concluded that the EchoStar Satellite Services and Hughes segments should be combined to a single segment, the “Hughes” segment.

	For the Years Ended December 31,
Hughes	2024		2023		2022
	(In thousands)
Revenue
Revenue from external customers:
Service revenue	$	1,210,840	$	1,448,489	$	1,629,194
Equipment sales and other revenue		349,533		299,367		374,149
Total Revenue		1,560,373		1,747,856		2,003,343
Operating Expenses
Cost of services:
Connectivity services (1)		370,473		178,295		180,033
Other (2)		310,548		362,650		382,816
Total cost of services		681,021		540,945		562,849
Cost of services - equipment and other		307,742		239,336		292,290
Selling, general and administrative expenses:
Subscriber acquisition costs		181,657		223,508		251,376
General and administrative expenses		193,881		216,476		211,311
Total selling, general and administrative expenses		375,538		439,984		462,687
Impairment of long-lived assets and goodwill		—		532,940		—
OIBDA (3)		196,072		(5,349)		685,517
Depreciation and amortization		365,902		389,632		431,065
Total costs and expenses		1,730,203		2,142,837		1,748,891
Operating income (loss)	$	(169,830)	$	(394,981)	$	254,452
Unallocated Amounts
Interest income		25,393		85,036		30,812
Interest expense, net of amounts capitalized		(98,802)		(89,569)		(92,386)
Other, net		(9,024)		(32,798)		473
Total other income (expense)		(82,433)		(37,331)		(61,101)
Income (loss) before income taxes		(252,263)		(432,312)		193,351
Income tax (provision) benefit, net		34,153		(46,126)		(54,441)
Net income (loss)	$	(218,110)	$	(478,438)	$	138,910
Purchases of property and equipment, net of refunds	$	205,330	$	190,129	$	239,403

(1) “Connectivity services” is the cost to deliver our services and products to customers, which includes, among other things, network, transport and data, cloud-based service, satellite and transmission and other related costs.

(2) “Other” primarily consists of variable costs including call center, manufacturing, dealer incentive, bad debt, billing and other variable costs, as well as costs to retain our subscribers.

(3) OIBDA is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciation and amortization expenses related primarily to capital expenditures and acquisitions, as well as in evaluating operating performance in relation to our competitors.

Geographic Information. Revenue is attributed to geographic regions based upon the customer billing location. Long-lived assets are associated with the geographic regions based upon the location where the asset resides. Geographic regions consist of: (i) North America, including the U.S. and its territories, Mexico, and Canada; (ii) South and Central America; (iii) Other, including Asia, Africa, Australia, Europe, India and the Middle East.

Revenue is attributed to geographic markets based upon the billing location of the customer. The following tables present our revenue from customer contracts disaggregated by primary geographic market:

	For the Years Ended December 31,
Revenue:	2024		2023		2022
	(In thousands)
North America	$	1,239,679	$	1,398,123	$	1,595,906
South and Central America		147,694		159,520		171,318
Other		173,000		190,213		236,119
Total revenue		1,560,373		1,747,856		2,003,343

The following table summarizes long-lived assets by geographic region:

	As of December 31,
Long-lived assets:	2024		2023
	(In thousands)
North America	$	2,342,387	$	2,517,036
South and Central America		74,365		149,472
Other		25,032		22,687
Total long-lived assets	$	2,441,784	$	2,689,195