Dish Network 2015 Annual Report Download - page 115

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-11
Discontinued Operations
On April 26, 2011, we completed the acquisition of most of the assets of Blockbuster, Inc. (the “Blockbuster
Acquisition”). As of December 31, 2013, Blockbuster had ceased material operations. The results of Blockbuster
are presented for all periods as discontinued operations in our consolidated financial statements. On January 14,
2014, we completed the sale of our Blockbuster operations in Mexico. See Note 9 for additional information
regarding our discontinued operations.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other
things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances,
uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under
our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value
of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate
impairments, useful lives of property, equipment and intangible assets, retailer incentives, programming expenses
and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions
indicated above. Actual results may differ from previously estimated amounts, and such differences may be
material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the
effects of revisions are reflected prospectively in the period they occur.
Cash and Cash Equivalents
We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition
to be cash equivalents. Cash equivalents as of December 31, 2015 and 2014 may consist of money market funds,
government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair
value.
Marketable Investment Securities
We currently classify all marketable investment securities as available-for-sale, except for investments accounted for
under the fair value option, discussed below. We adjust the carrying amount of our available-for-sale securities to
fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated
other comprehensive income (loss)” within “Total stockholders’ equity (deficit),” net of related deferred income tax.
Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary”
are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a
new cost basis for such investment.
For certain of our marketable investment securities, we have elected to
recognize the changes in fair value through “Other, net” within “Other Income (Expense)” on our Consolidated
Statements of Operations and Comprehensive Income (Loss) (the “Fair Value Option”).
We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the
fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other
things:
x the fair value of our marketable investment securities compared to the carrying amount,
x the historical volatility of the price of each security, and
x any market and company specific factors related to each security.