COMMITMENTS AND CONTINGENCIES	12 Months Ended
Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES In December 2015, the Company's stockholders approved a previously-announced merger transaction to return value in cash to the Company's stockholders (other than Telcrest, for so long as the shares of Company common stock it holds remain blocked property pursuant to applicable sanctions). Upon consummation of the merger, CTCM Merger Sub, Inc., the Company's wholly owned subsidiary, would merge with and into the Company, with the Company surviving, and each holder of the Company's outstanding common stock as of the effective time of the merger, other than Telcrest, will be entitled to receive cash consideration per share based on the aggregate amount of the Company's available cash as of the time of the merger, net of the cash reserves that will be appropriate in light of potential liabilities. The shares of common stock held by Telcrest would remain outstanding following the merger, and Telcrest would be the Company's sole stockholder. Following the merger, the Company would cease to be a publicly traded company. The Company has received a license from the Office of Foreign Assets Control of the U.S. Treasury Department authorizing the merger transaction. The Company expects the merger to complete in the second quarter of 2016. Operating environment in Russia and Kazakhstan Economic environment—Significant uncertainty exists surrounding the current geopolitical situation in Ukraine. The United States, the European Union and other countries have imposed economic sanctions on certain Russian government officials, other individuals and certain Russian companies in connection with recent developments in Ukraine and Crimea. Neither the Company, nor any of its Russian operations or assets, are a target of current sanctions and the Company and its equity investee, CTC Investments and its subsidiaries do not appear on the United States and European Union lists of sanctioned parties. However, there is significant uncertainty regarding the extent or timing of any potential further economic or trade sanctions, or the ultimate outcome of the Ukrainian crisis. The current situation in Ukraine had a broad impact on the macroeconomic environment of the region. These factors, in conjunction with global macroeconomic weakness, may adversely affect the business of the Company's equity investee in Russia. In 2015 and early 2016, Russia has experienced significant economic instability, characterized by substantial depreciation of its currency, sharp fluctuations of interest rates, a decline in gross domestic product in 2015 and a steep decline in the value of shares traded on its stock exchanges. Any continuing economic and political instability, potentially including continued or additional international economic sanctions, could have a negative impact on television advertising spending in future periods. If overall spending by the largest multinational advertisers in the Russian television advertising market falls substantially further, the results of operations of the Company's equity investment in Russia will be materially adversely impacted. Exchange Rate—Although the Company's reporting currency is the US dollar, the functional currency of its equity investment is primarily the Russian ruble. As a result, the reported results of the Company's equity investment are impacted by fluctuations in the exchange rate between the US dollar and the Russian ruble. Additionally, given that the majority of the Company's equity investment's revenues are generated in Russian rubles, the Company faces exchange rate risk relating to payments that the Russian businesses must make in US dollars. In 2015, the Russian ruble depreciated against the US dollar by 23%, and was on average 37% lower than the average value of the Russian ruble compared to the US dollar during 2014. In 2014, the Russian ruble depreciated against the US dollar by 42%, and was on average 17% lower than the average value of the Russian ruble compared to the US dollar during 2013. The prevailing exchange rate as of December 31, 2015 was RUR 72.88 to $1.00. During the period from December 31, 2015 to March 29, 2016, the Russian ruble slightly appreciated against the US dollar to RUR 68.78 to $1.00. If the exchange rate between the ruble and the US dollar were to depreciate further, the results of operations of the Company's equity investment in Russia and Kazakhstan will be materially adversely impacted. Legal and tax proceedings In the ordinary course of business, the Company and CTC Investments may be party to various legal and tax proceedings, including tax audits, and subject to claims, certain of which may relate to the developing markets and evolving fiscal and regulatory environments in which the CTC Investments operates. In the opinion of management, the Company's liability, if any, in all pending litigation, other legal proceedings or other matters, will not have a material effect upon the financial condition, results of operations or liquidity of the Company.

10. COMMITMENTS AND CONTINGENCIES

In December 2015, the Company's stockholders approved a previously-announced merger transaction to return value in cash to the Company's stockholders (other than Telcrest, for so long as the shares of Company common stock it holds remain blocked property pursuant to applicable sanctions). Upon consummation of the merger, CTCM Merger Sub, Inc., the Company's wholly owned subsidiary, would merge with and into the Company, with the Company surviving, and each holder of the Company's outstanding common stock as of the effective time of the merger, other than Telcrest, will be entitled to receive cash consideration per share based on the aggregate amount of the Company's available cash as of the time of the merger, net of the cash reserves that will be appropriate in light of potential liabilities. The shares of common stock held by Telcrest would remain outstanding following the merger, and Telcrest would be the Company's sole stockholder. Following the merger, the Company would cease to be a publicly traded company. The Company has received a license from the Office of Foreign Assets Control of the U.S. Treasury Department authorizing the merger transaction. The Company expects the merger to complete in the second quarter of 2016.

Operating environment in Russia and Kazakhstan

Economic environment—Significant uncertainty exists surrounding the current geopolitical situation in Ukraine. The United States, the European Union and other countries have imposed economic sanctions on certain Russian government officials, other individuals and certain Russian companies in connection with recent developments in Ukraine and Crimea. Neither the Company, nor any of its Russian operations or assets, are a target of current sanctions and the Company and its equity investee, CTC Investments and its subsidiaries do not appear on the United States and European Union lists of sanctioned parties. However, there is significant uncertainty regarding the extent or timing of any potential further economic or trade sanctions, or the ultimate outcome of the Ukrainian crisis. The current situation in Ukraine had a broad impact on the macroeconomic environment of the region. These factors, in conjunction with global macroeconomic weakness, may adversely affect the business of the Company's equity investee in Russia.

In 2015 and early 2016, Russia has experienced significant economic instability, characterized by substantial depreciation of its currency, sharp fluctuations of interest rates, a decline in gross domestic product in 2015 and a steep decline in the value of shares traded on its stock exchanges. Any continuing economic and political instability, potentially including continued or additional international economic sanctions, could have a negative impact on television advertising spending in future periods. If overall spending by the largest multinational advertisers in the Russian television advertising market falls substantially further, the results of operations of the Company's equity investment in Russia will be materially adversely impacted.

Exchange Rate—Although the Company's reporting currency is the US dollar, the functional currency of its equity investment is primarily the Russian ruble. As a result, the reported results of the Company's equity investment are impacted by fluctuations in the exchange rate between the US dollar and the Russian ruble. Additionally, given that the majority of the Company's equity investment's revenues are generated in Russian rubles, the Company faces exchange rate risk relating to payments that the Russian businesses must make in US dollars. In 2015, the Russian ruble depreciated against the US dollar by 23%, and was on average 37% lower than the average value of the Russian ruble compared to the US dollar during 2014. In 2014, the Russian ruble depreciated against the US dollar by 42%, and was on average 17% lower than the average value of the Russian ruble compared to the US dollar during 2013.

The prevailing exchange rate as of December 31, 2015 was RUR 72.88 to $1.00. During the period from December 31, 2015 to March 29, 2016, the Russian ruble slightly appreciated against the US dollar to RUR 68.78 to $1.00. If the exchange rate between the ruble and the US dollar were to depreciate further, the results of operations of the Company's equity investment in Russia and Kazakhstan will be materially adversely impacted.

Legal and tax proceedings

In the ordinary course of business, the Company and CTC Investments may be party to various legal and tax proceedings, including tax audits, and subject to claims, certain of which may relate to the developing markets and evolving fiscal and regulatory environments in which the CTC Investments operates. In the opinion of management, the Company's liability, if any, in all pending litigation, other legal proceedings or other matters, will not have a material effect upon the financial condition, results of operations or liquidity of the Company.