Dish announces 3rd 2012 quarter results

Discussion in 'General DISH™ Discussion' started by RAD, Nov 6, 2012.

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  1. RAD

    RAD Well-Known Member

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    Dripping...
    From http://dish.client.shareholder.com/releasedetail.cfm?ReleaseID=718899

    Since the Voom settlement didn't occur until October what caused the $453 million impact which they say was due to the Voom litigation? Did they decided to write off some amount on the 3rd quarter books or was this just due to loss of customers due to the AMC networks loss and the money spent on Roku boxes and Amazon subscriptions?
     
  2. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Two possible answers:

    1. They probably were always writing off some court costs, whatever the lawyers were being paid and such, as they went along anyway. So that might be some of it.

    2. Once the case was settled, they probably could do creative accounting to put that debt whenever they wanted. They could amortize it over several quarters... or throw it into an old quarter so it is already accounted for... since most of the settlement would have been for past debt anyway, it makes sense to throw it in the most recent closed quarter and be done with it going forward.
     
  3. fudpucker

    fudpucker Godfather

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    It is odd. My understanding is that you can't just move an upcoming debt to a period before it incurred (you can find ways to push it the other direction) especially after a lot of the laws such as Sorbanes-Oxley (sp). So no idea how they have in this past quarter.
     
  4. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    They can correct past quarters ... and since 3Q had not been reported yet it seems to be as good as place as any to place the debt from the settlement.
     
  5. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    The argument could also be made that Dish had been putting money aside for an expected settlement for a while... and wasn't this an appeal anyway? Or was this the original trial? I lost track.
     
  6. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    This was the original trial on the Voom issue. DISH lost some earlier rulings in the trial but had not yet lost the major claim put forth by Voom.
     
  7. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Thanks... it went on for so long I had genuinely forgotten if this was the original trial still or an appeal of an earlier verdict.
     
  8. Nick

    Nick Charter Gold Club Member

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    If I recall my college 'principals of accounting' courses correctly, if a future loss is anticipated, it is standard accounting practice for a company to set up a reserve for that loss at the time the loss is recognized. That, typically, puts the hit in a fiscal quarter that preceeds the quarter in which the loss is actually paid out, particularly when litigation is involved.
     
  9. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Thanks... that is kind of what I was thinking... You figure you're going to pay something, so you start setting aside funds for that purpose... so even though you haven't paid out yet, you have separated that cash from your normal funds... so then whenever you actually get the judgment for the payout, you can essentially back-date to an earlier quarter and go ahead and take the hit since you had sort-of been paying for it.
     
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