Dish Network 2005 Annual Report Download - page 53

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS – Continued
43
Monthly average revenue per subscriber (“ARPU”). We are not aware of any uniform standards for calculating
ARPU and believe presentations of ARPU may not be calculated consistently by other companies in the same or
similar businesses. We calculate average monthly revenue per subscriber, or ARPU, by dividing average monthly
“Subscriber-related revenues” for the period (total “Subscriber-related revenue” during the period divided by the
number of months in the period) by our average DISH Network subscribers for the period. Average DISH Network
subscribers are calculated for the period by adding the average DISH Network subscribers for each month and
dividing by the number of months in the period. Average DISH Network subscribers for each month are calculated
by adding the beginning and ending DISH Network subscribers for the month and dividing by two.
Subscriber churn rate/subscriber turnover. We are not aware of any uniform standards for calculating subscriber
churn rate and believe presentations of subscriber churn rates may not be calculated consistently by different
companies in the same or similar businesses. We calculate percentage monthly subscriber churn by dividing the
number of DISH Network subscribers who terminate service during each month by total DISH Network subscribers
as of the beginning of that month. We calculate average subscriber churn rate for any period by dividing the number
of DISH Network subscribers who terminated service during that period by the average number of DISH Network
subscribers subject to churn during the period, and further dividing by the number of months in the period. Average
DISH Network subscribers subject to churn during the period are calculated by adding the DISH Network
subscribers as of the beginning of each month in the period and dividing by the total number of months in the
period.
Free cash flow. We define free cash flow as “Net cash flows from operating activities” less “Purchases of property
and equipment,” as shown on our Condensed Consolidated Statements of Cash Flows.