Dish Network 2015 Annual Report Download - page 125

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-21
5. Other Comprehensive Income (Loss)
The following table presents the tax effect on each component of “Other comprehensive income (loss).”
For the Years Ended December 31,
2015 2014 2013
Before Tax Net Before Tax Net Before Tax Net
Tax (Expense) of Tax Tax (Expense) of Tax Tax (Expense) of Tax
Amount Benefit (1) Amount Amount Benefit Amount Amount Benefit Amount
(In thousands)
Foreign currency translation
adjustments $ — $ — $ — $ 3,878 $ — $ 3,878 $ 1,155 — $ 1,155
Unrealized holding gains (losses) on
available-for-sale securities 20,205 (7,476) 12,729 (11,729) 3,600 (8,129) 123,233 (45,094) 78,139
Recognition of previously unrealized
(gains) losses on available-for-sale
securities included in net income (loss) (99,361) (25,894) (125,255) 7,050 (2,164) 4,886 (148,603) 54,378 (94,225)
Other comprehensive income (loss) $ (79,156) $ (33,370)$ (112,526) $ (801) $ 1,436 $ 635 $ (24,215) $ 9,284 $ (14,931)
(1) Prior to December 31, 2012, we had established a valuation allowance against all deferred tax assets that were
capital in nature. At December 31, 2012, it was determined that these deferred tax assets were realizable and
the valuation allowance was released, including the valuation allowance related to a specific portfolio of
available-for-sale securities for which changes in fair value had historically been recognized as a separate
component of “Accumulated other comprehensive income (loss).” Under the intra-period tax allocation rules, a
credit of $63 million was recorded in “Accumulated other comprehensive income (loss)” on our Consolidated
Balance Sheets related to the release of this valuation allowance.
We elected to use the aggregate portfolio method to determine when the $63 million would be released from
“Accumulated other comprehensive income (loss)” to “Income tax (provision) benefit, net” on our Consolidated
Statements of Operations and Comprehensive Income (Loss). Under the aggregate portfolio approach, the
intra-period tax allocation remaining in “Accumulated other comprehensive income (loss)” is not released to
“Income tax (provision) benefit, net” until such time that the specific portfolio of available-for-sale securities
that generated the original intra-period allocation is liquidated. During the first quarter 2015, this specific
available-for-sale security portfolio was liquidated and the $63 million credit that was previously recorded in
“Accumulated other comprehensive income (loss)” was released to “Income tax (provision) benefit, net.” This
adjustment has no net effect on “Net cash flows from operating activities from continuing operations” or “Total
stockholders’ equity (deficit).”
The “Accumulated other comprehensive income (loss)” is detailed in the following table, net of tax.
Foreign Unrealized /
Currency Recognized
Translation Gains
Accumulated Other Comprehensive Income (Loss) Adjustment (Losses) Total
(In thousands)
Balance as of December 31, 2013 $ (3,878) $ 177,750 $ 173,872
Other comprehensive income (loss) before reclassification 3,878 (8,129) (4,251)
Amounts reclassified from accumulated other comprehensive income
(loss) — 4,886 4,886
Balance as of December 31, 2014 $ — $ 174,507 $ 174,507
Other comprehensive income (loss) before reclassification — 12,729 12,729
Amounts reclassified from accumulated other comprehensive income
(loss) — (125,255) (125,255)
Balance as of December 31, 2015 $ — $ 61,981 $ 61,981