Dish Network 1998 Annual Report Download - page 79

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–32
Business Unit Descriptions
The operations of EchoStar include three interrelated business units:
• The DISH Network – a DBS subscription television service in the United States.
• EchoStar Technologies Corporation – the design, distribution and sale of EchoStar receiver systems
for the DISH Network as well as for direct-to-home projects of other internationally, together with
the provision of uplink center design, construction oversight and other project integration services
for international direct-to-home ventures.
• Satellite Services – engaged in the delivery of video, audio and data services to business television
customers and other satellite users. These services my include satellite uplink services, satellite
transponder space usage, billing, customer service and other services.
The accounting policies for the above business units are the same as those described in the summary of significant accounting
policies for the consolidated entity. EchoStar accounts for intersegment sales and transfers at cost. All other revenue and
expenses from segments below the quantitative thresholds are attributable to sales of C-band equipment and other corporate
administrative functions. Only those assets and measures of profit and loss that are included in the measure of assets and profit
and loss used by EchoStar’s chief operating decision maker are reported.
Financial Data by Business Unit
Dish
Network
EchoStar
Technologies
Corporation
Satellite
Services
Eliminations
and Other
Consolidated
Total
Year Ended December 31, 1996
Revenue.......................................... $ 142,913 $ 18,930 $ 2,542 $ 34,516 $ 198,901
Depreciation and amortization ......... 2,356 1,143 –39,915 43,414
Total expenses................................. 161,404 26,007 1,724 119,111 308,246
EBITDA ......................................... (16,135) (7,685) 818 (42,929) (65,931)
Interest income................................ 1,894 730 –13,006 15,630
Interest expense............................... 2,015 3 – 59,469 61,487
Income tax benefit, net .................... 34,117 3,708 –16,868 54,693
Net income (loss) ............................ 3,541 (6,187) 818 (99,158) (100,986)
Year Ended December 31, 1997
Revenue.......................................... $ 378,377 $ 82,609 $ 3,458 $ 12,974 $ 477,418
Depreciation and amortization ......... 158,992 1,659 –12,625 173,276
Total expenses................................. 569,998 73,081 329 58,281 701,689
EBITDA ......................................... (32,629) 11,186 3,129 (32,681) (50,995)
Interest income................................ 10,114 180 –6,957 17,251
Interest expense............................... 27,503 – – 76,689 104,192
Income tax provision, net................. (7) (32) –(107) (146)
Net income (loss) ............................ (231,223) 4,378 2,889 (88,869) (312,825)
Year Ended December 31, 1998
Revenue.......................................... $ 733,382 $ 251,958 $ 23,442 $ (26,116) $ 982,666
Depreciation and amortization ......... 85,107 2,097 26 15,406 102,636
Total expenses................................. 871,269 193,852 3,495 36,941 1,105,557
EBITDA ......................................... (52,781) 60,202 19,973 (47,649) (20,255)
Interest income................................ 9,280 – 2 21,004 30,286
Interest expense............................... 49,042 282 –118,205 167,529
Income tax benefit (provision), net... 17 (11) –(50) (44)
Net income (loss) ............................ (199,356) 30,333 18,409 (110,268) (260,882)