Dish Network 2014 Annual Report Download - page 119

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-13
Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are
determined to be indefinite. Amortization of these intangible assets are recorded on a straight line basis over an average
finite useful life primarily ranging from approximately two to ten years or in relation to the estimated discounted cash
flows over the life of the intangible asset.
Other Investment Securities
Generally, we account for our unconsolidated equity investments under either the equity method or cost method of
accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the
fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary
impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company
business plans, current financial statements and key financial metrics, if available, for factors that may indicate an
impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation,
violations of debt covenants and changes in business strategy. The fair value of these equity investments is not
estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes
are likely to have a significant adverse effect on the fair value of the investment.
Long-Term Deferred Revenue, Distribution and Carriage Payments
Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to
“Subscriber-related expenses” on a straight-line basis over the relevant remaining contract term (generally up to ten
years). The current and long-term portions of these deferred credits are recorded in our Consolidated Balance
Sheets in “Deferred revenue and other” and “Long-term deferred revenue, distribution and carriage payments and
other long-term liabilities,” respectively.
Sales Taxes
We account for sales taxes imposed on our goods and services on a net basis in our Consolidated Statements of
Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities,
the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity.
Income Taxes
We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to
future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that
exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances
when we believe it is more likely than not that such net deferred tax assets will not be realized.
Accounting for Uncertainty in Income Taxes
From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record
a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold.
For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s
assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing
examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and
precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of
“Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of
Operations and Comprehensive Income (Loss).