Dish Network 2011 Annual Report Download - page 64

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
54
54
Average monthly revenue per subscriber. 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 revenue” for the period (total “Subscriber-related revenue” during the period divided by the
number of months in the period) by our average number of DISH subscribers for the period. The average number of
DISH subscribers is calculated for the period by adding the average number of DISH subscribers for each month and
dividing by the number of months in the period. The average number of DISH subscribers for each month is
calculated by adding the beginning and ending DISH subscribers for the month and dividing by two.
Average monthly subscriber churn rate. 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 subscriber churn rate for any period by dividing the
number of DISH subscribers who terminated service during the period by the average number of DISH subscribers
for the same period, and further dividing by the number of months in the period. When calculating subscriber churn,
the same methodology for calculating average number of DISH subscribers is used as when calculating ARPU.
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 Consolidated Statements of Cash Flows.