Dish Network 2015 Annual Report Download - page 89

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DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3
Wireless Spectrum Licenses. Through our wholly-owned subsidiaries American II and American III, we have made
over $10.0 billion in certain non-controlling investments in Northstar Spectrum, the parent company of Northstar
Wireless, and in SNR HoldCo, the parent company of SNR Wireless, respectively. On October 27, 2015, the FCC
granted the Northstar Licenses to Northstar Wireless and the SNR Licenses to SNR Wireless, respectively, which are
recorded in “FCC authorizations” on our Consolidated Balance Sheets. Under the applicable accounting guidance in
ASC 810, Northstar Spectrum and SNR HoldCo are considered variable interest entities and, based on the characteristics
of the structure of these entities and in accordance with the applicable accounting guidance, we have consolidated these
entities into our financial statements beginning in the fourth quarter 2014. See Note 2 in the Notes to our Consolidated
Financial Statements in this Annual Report on Form 10-K for further information. The AWS-3 Licenses are subject to
certain interim and final build-out requirements. We may need to make significant additional loans to the Northstar
Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR
Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, and comply with
regulations applicable to the Northstar Licenses and the SNR Licenses. Depending upon the nature and scope of such
commercialization, build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary
significantly. See Note 15 “Commitments and Contingencies — Wireless — DISH Network Non-Controlling Investments
in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to our
Consolidated Financial Statements in this Annual Report on Form 10-K for further information.
We may need to raise significant additional capital in the future to fund the efforts described above, which may not be
available on acceptable terms or at all. There can be no assurance that we, the Northstar Entities and/or the SNR Entities
will be able to develop and implement business models that will realize a return on these wireless spectrum licenses or
that we, the Northstar Entities and/or the SNR Entities will be able to profitably deploy the assets represented by these
wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or
results of operations. See Note 15 “Commitments and Contingencies — Wireless” in the Notes to our Consolidated
Financial Statements in this Annual Report on Form 10-K for further information.
Availability of Credit and Effect on Liquidity
The ability to raise capital has generally existed for us despite economic weakness and uncertainty. While modest
fluctuations in the cost of capital will not likely impact our current operational plans, significant fluctuations could have
a material adverse effect on our business, results of operations and financial condition.
Critical Accounting Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make
estimates, judgments and assumptions that affect amounts reported therein. Management bases its estimates, judgments
and assumptions on historical experience and on various other factors that are believed to be reasonable under the
circumstances. 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. The following represent what we believe are the critical accounting
policies that may involve a high degree of estimation, judgment and complexity. For a summary of our significant
accounting policies, including those discussed below, see Note 2 in the Notes to our Consolidated Financial Statements
in this Annual Report on Form 10-K.