Dish Network 2014 Annual Report Download - page 170

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-64
Since the Voom Settlement Agreement and the multi-year affiliation agreement were entered into
contemporaneously, we accounted for all components of both agreements at fair value in the context of the Voom
Settlement Agreement. We determined the fair value of the multi-year affiliation agreement and the MVDDS
Licenses using a market-based approach and a probability-weighted discounted cash flow analysis, respectively.
Based on market data and similar agreements we have with other content providers, we allocated $54 million of the
payments under the multi-year affiliation agreement to the fair value of the Voom Settlement Agreement. The
resulting liability was recorded on our Consolidated Balance Sheets as “Accrued Programming” and is being
amortized as contra “Subscriber-related expenses” on a straight-line basis over the term of the agreement.
Evaluating all potential uses for the MVDDS Licenses, we assessed their fair value at $24 million and recorded
these on our Consolidated Balance Sheets as “FCC Authorizations.” The fair value of the Voom Settlement
Agreement was assessed at $730 million and was recorded as “Litigation expense” on our Consolidated Statement
of Operations and Comprehensive Income (Loss) for the year ended December 31, 2012.
Waste Disposal Inquiry
The California Attorney General and the Alameda County (California) District Attorney are investigating whether
certain of our waste disposal policies, procedures and practices are in violation of the California Business and
Professions Code and the California Health and Safety Code. We expect that these entities will seek injunctive and
monetary relief. The investigation appears to be part of a broader effort to investigate waste handling and disposal
processes of a number of industries. While we are unable to predict the outcome of this investigation, we do not
believe that the outcome will have a material effect on our results of operations, financial condition or cash flows.
Other
In addition to the above actions, we are subject to various other legal proceedings and claims that arise in the
ordinary course of business, including, among other things, disputes with programmers regarding fees. In our
opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our
financial condition, results of operations or liquidity, though the outcomes could be material to our operating results
for any particular period, depending, in part, upon the operating results for such period.