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FORM 10-K
The Company’s CODM does not evaluate the performance of the Company’s assets on a segment basis for
internal management reporting and, therefore, such information is not presented.
The following table sets forth a reconciliation of segment Adjusted EBITDA to the Company’s consolidated
income before income taxes ($ in millions):
2015 2014 2013
Income before income taxes ........................... $ 437 $ 432 $ 642
Interest expense, net ................................. 205 192 117
Depreciation and intangible asset amortization ............ 1,124 1,040 942
Amortization of deferred subscriber acquisition costs ....... 141 131 123
Amortization of deferred subscriber acquisition revenue .... (163) (151) (135)
Restructuring and other, net ........................... 6 17 (1)
Acquisition and integration costs .......................472
Radio conversion costs ............................... 55 44 —
Separation costs .................................... — 17 23
Separation related other (income) expense ............... (1) 38 (23)
Adjusted EBITDA .............................. $1,808 $1,767 $1,690
Entity-Wide Disclosure
Long-lived assets, which are comprised of subscriber system assets, net and property and equipment, net,
located in the United States approximate 95% and 94% of total long-lived assets as of September 25, 2015
and September 26, 2014, respectively, with the remainder residing in Canada.
13. Quarterly Financial Data (Unaudited)
Summarized quarterly financial data for fiscal years 2015 and 2014 are as follows ($ in millions, except per
share data):
2015
December 26,
2014
March 27,
2015
June 26,
2015
September 25,
2015
Revenue ................................ $887 $890 $898 $899
Operating income ........................ 158 148 163 170
Net income .............................. 72 68 75 81
Net income per share:
Basic .............................. $0.41 $0.40 $0.44 $0.48
Diluted ............................. $0.41 $0.40 $0.44 $0.48
2014
December 27,
2013
March 28,
2014
June 27,
2014
September 26,
2014
Revenue ................................ $839 $837 $849 $883
Operating income ........................ 165 164 169 161
Net income .............................. 77 63 82 82
Net income per share:
Basic .............................. $0.39 $0.35 $0.47 $0.47
Diluted ............................. $0.39 $0.34 $0.47 $0.47
During the fourth quarter of fiscal year 2014, the Company acquired Protectron. The operating results of
Protectron have been included from the date of the acquisition and impact quarter over quarter and year over year
comparability. See Note 2 for details about this acquisition.
102