Dish Network 2014 Annual Report Download - page 78

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
68
68
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 $277 million during the year ended December
31, 2014 compared to $300 million in 2013. This change was primarily attributable to a decrease in our effective
tax rate, partially offset by an increase 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. Our
effective tax rate during the same period in 2013 was favorably impacted by an audit settlement with the IRS related
to periods prior to 2009.
Net income (loss) attributable to DISH Network. Net income attributable to DISH Network was $945 million
during the year ended December 31, 2014, an increase of $137 million compared to $807 million for the same period
in 2013. This increase was primarily attributable to the changes in revenue and expenses discussed above.