Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting

Segment Reporting

17. Segment Reporting

Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise.  Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance.  On November 6, 2013, we announced that Blockbuster would close all of its remaining company-owned domestic retail stores and discontinue the Blockbuster by-mail DVD service.  As of December 31, 2013, Blockbuster had ceased all material operations.  See Note 10 for further discussion.  As a result, Blockbuster is no longer a business segment and the tables below represent only continuing operations, unless otherwise noted.  We currently operate two primary business segments.

· DISH.  The DISH branded pay-TV service had 14.057 million subscribers in the United States as of December 31, 2013.  The DISH branded pay-TV service consists of FCC licenses authorizing us to use DBS and FSS spectrum, our satellites, receiver systems, third-party broadcast operations, customer service facilities, a leased fiber network, in-home service and call center operations, and certain other assets utilized in our operations.  In addition, we market broadband services under the dishNET™ brand.

· Wireless.  In 2008, we paid $712 million to acquire certain 700 MHz wireless spectrum licenses, which were granted to us by the FCC in February 2009 subject to certain interim and final build-out requirements.  On March 9, 2012, we completed the DBSD Transaction and the TerreStar Transaction, pursuant to which we acquired, among other things, 40 MHz of AWS-4 wireless spectrum licenses held by DBSD North America and TerreStar.  The financial results of DBSD North America and TerreStar are included in our financial results beginning March 9, 2012.  The total consideration to acquire the DBSD North America and TerreStar assets was approximately $2.860 billion.  The FCC issued an order, which became effective on March 7, 2013, modifying our AWS-4 licenses to expand our terrestrial operating authority.  That order imposed certain limitations on the use of a portion of the spectrum and also mandated certain interim and final build-out requirements for the licenses.  As we review our options for the commercialization of this wireless spectrum, we may incur significant additional expenses and may have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure.  See Note 16 for further discussion.

	As of December 31,
	2013			2012
	(In thousands)
Total assets:
DISH	$	19,713,853		$	16,224,949
Wireless	4,625,505			5,066,615
Eliminations	(4,041,934		)	(4,189,097		)
Total assets from continuing operations	20,297,424			17,102,467
Assets from discontinued operations	78,204			277,141
Total assets	$	20,375,628		$	17,379,608

							All
							Other &			Consolidated
Year Ended December 31, 2013	DISH			Wireless (1)			Eliminations			Total
	(In thousands)
Total revenue	$	13,903,091		$	1,774		$	—		$	13,904,865
Depreciation and amortization	952,793			101,233			—			1,054,026
Operating income (loss)	1,938,998			(590,819		)	—			1,348,179
Interest income	197,095			99,953			(148,183		)	148,865
Interest expense, net of amounts capitalized	(742,207		)	(150,961		)	148,183			(744,985		)
Other, net	42,719			342,137			—			384,856
Income tax (provision) benefit, net	(511,491		)	211,665			—			(299,826		)
Income (loss) from continuing operations	925,114			(88,026		)	—			837,089

Year Ended December 31, 2012
Total revenue	$	13,179,907		$	1,427		$	—		$	13,181,334
Depreciation and amortization	922,534			41,950			—			964,484
Operating income (loss)	1,322,474			(64,116		)	—			1,258,358
Interest income	148,526			64,576			(114,011		)	99,091
Interest expense, net of amounts capitalized	(534,585		)	(115,662		)	114,011			(536,236		)
Other, net	172,874			823			—			173,697
Income tax (provision) benefit, net	(380,758		)	48,767			—			(331,991		)
Income (loss) from continuing operations	728,531			(65,612		)	—			662,919

Year Ended December 31, 2011
Total revenue	$	13,073,633		$	430	$	—	$	13,074,063
Depreciation and amortization	912,203			—		—		912,203
Operating income (loss)	2,928,553			430		—		2,928,983
Interest income	33,847			35		—		33,882
Interest expense, net of amounts capitalized	(557,966		)	—		—		(557,966		)
Other, net	8,240			—		—		8,240
Income tax (provision) benefit, net	(890,815		)	50		—		(890,765		)
Income (loss) from continuing operations	1,521,858			516		—		1,522,374

(1) The year ended December 31, 2012 reflects Wireless results from the acquisitions of DBSD North America and TerreStar on March 9, 2012 through December 31, 2012.

Geographic Information.  Revenues are attributed to geographic regions based upon the location where the products are delivered and services are provided.  All revenue from continuing operations were in the United States.