Dish Network 2015 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2015 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

67
Adjusted earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA was $2.588 billion during
the year ended December 31, 2015, a decrease of $261 million or 9.1% compared to the same period in 2014. Adjusted
EBITDA for the year ended December 31, 2015 was negatively impacted by the “FCC auction expense” of $516 million
and an impairment charge for the D1 satellite and related ground equipment of $123 million, partially offset by the positive
impact of “Other, net” income of $278 million. Adjusted EBITDA for the year ended December 31, 2014 was negatively
impacted by “Other, net” expense of $69 million. The following table reconciles Adjusted EBITDA to the accompanying
financial statements.
For the Years Ended December 31,
2015 2014
(In thousands)
Adjusted EBITDA $ 2,588,303 $ 2,848,837
Interest, net (474,487) (549,368)
Income tax (provision) benefit, net (366,676) (276,840)
Depreciation and amortization (1,000,048) (1,077,936)
Income (loss) from continuing operations attributable to DISH Network 747,092 944,693
Plus: Income (loss) from discontinued operations, net of tax — —
Net income (loss) attributable to DISH Network $ 747,092 $ 944,693
Adjusted EBITDA is not a measure determined in accordance with accounting principles generally accepted in the
United States (“GAAP”) and should not be considered a substitute for operating income, net income or any other
measure determined in accordance with GAAP. Adjusted EBITDA is used as a measurement of operating efficiency and
overall financial performance and we believe it to be a helpful measure for those evaluating companies in the pay-TV
industry. Conceptually, Adjusted EBITDA measures the amount of income from continuing operations generated each
period that could be used to service debt, pay taxes and fund capital expenditures. Adjusted EBITDA should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Income tax (provision) benefit, net. Our income tax provision was $367 million during the year ended December 31,
2015 compared to $277 million in 2014. The increase in the provision was related to an increase in our effective tax rate,
partially offset by a decrease in “Income (loss) before income taxes.” Our effective tax rate during 2014 was favorably
impacted by tax planning strategies related to the tax structure of certain foreign legal entities. During 2015, our
effective tax rate was positively impacted by a $63 million credit that was previously recorded in “Accumulated other
comprehensive income (loss)” and was released to our income tax provision during
the year ended December 31, 2015.
See Note 5 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further
information.