Dish Network 2015 Annual Report Download - page 114

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-10
in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable
to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred
taxes, on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are
recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014,
with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our
Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 19 for further information on
Sling TV Holding and the Exchange Agreement.
Northstar Wireless. Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity
owned by Northstar Manager, LLC (“Northstar Manager”) and us. Under the applicable accounting guidance in
ASC 810, Northstar Spectrum is considered a variable interest entity and, based on the characteristics of the
structure of this entity and in accordance with the applicable accounting guidance, we have consolidated Northstar
Spectrum into our financial statements beginning in the fourth quarter 2014. After the five-year anniversary of the
grant of the Northstar Licenses (and in certain circumstances, prior to the five-year anniversary of the grant of the
Northstar Licenses), Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to
purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase
price that generally equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. In the
event that the Northstar Put Right is exercised by Northstar Manager, the consummation of the sale will be subject
to FCC approval. Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership
interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar
Manager’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus
recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance
Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value.
Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum is increased by the fixed annual rate of
return through “Redeemable noncontrolling interests” in our Consolidated Balance Sheets, with the offset recorded
in “Net income (loss) attributable to noncontrolling interest, net of tax” on our Consolidated Statements of
Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to
Northstar Manager are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets, with
the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated
Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information.
SNR Wireless. SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR
Wireless Management, LLC (“SNR Management”) and us. Under the applicable accounting guidance in ASC 810,
SNR HoldCo is considered a variable interest entity and, based on the characteristics of the structure of this entity
and in accordance with the applicable accounting guidance, we have consolidated SNR HoldCo into our financial
statements beginning in the fourth quarter 2014. After the five-year anniversary of the grant of the SNR Licenses
(and in certain circumstances, prior to the five-year anniversary of the grant of the SNR Licenses), SNR
Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s
ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that generally equals its equity
contribution to SNR HoldCo plus a fixed annual rate of return. In the event that the SNR Put Right is exercised by
SNR Management, the consummation of the sale will be subject to FCC approval. SNR HoldCo does not have a
call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is
the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the
applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the
mezzanine section of our Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo
was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is
increased by the fixed annual rate of return through “Redeemable noncontrolling interests” in our Consolidated
Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interest, net of tax” on
our Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable
to SNR Management are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets,
with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our
Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information.