Dish Network 2014 Annual Report Download - page 115

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-9
entity and in accordance with the applicable accounting guidance, is consolidated into our financial statements
beginning in the fourth quarter 2014. After the five-year anniversary of the grant of wireless licenses to Northstar
Wireless, 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 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, under the applicable accounting guidance,
Northstar Manager’s ownership interest is considered temporary equity under the applicable accounting guidance and
is thus recorded as part of “Redeemable noncontrolling interest” 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 interest” in our Consolidated Balance Sheets, with the offset recorded in
“Income (loss) attributable to noncontrolling interest, net of tax” on our Statements of Operations and Comprehensive
Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager are recorded as
“Redeemable noncontrolling interest” in our Consolidated Balance Sheets, with the offset recorded in “Income (loss)
attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive
Income (Loss). See Note 16 for further discussion on Northstar Wireless and the AWS-3 Auction.
SNR Wireless. SNR Wireless is a wholly owned subsidiary of SNR Wireless 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, is consolidated into our financial statements beginning in
the fourth quarter 2014. After the five-year anniversary of the grant of wireless licenses to SNR Wireless, 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 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, under the applicable accounting guidance, SNR Management’s ownership interest is considered temporary
equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interest”
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 interest” in our Consolidated Balance
Sheets, with the offset recorded in “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 interest” in our Consolidated Balance Sheets, with the offset
recorded in “Income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of
Operations and Comprehensive Income (Loss). See Note 16 for further discussion on SNR Wireless and the AWS-3
Auction.
Discontinued Operations
On April 26, 2011, we completed the acquisition of most of the assets of Blockbuster, Inc. (the “Blockbuster
Acquisitions.”) 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 10 for additional information
regarding our discontinued operations.