Basic and Diluted Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Basic and Diluted Net Income (Loss) Per Share

Basic and Diluted Net Income (Loss) Per Share

3. Basic and Diluted Net Income (Loss) Per Share

We present both basic earnings per share (“EPS”) and diluted EPS.  Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to DISH Network common shareholders” by the weighted-average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution that could occur if stock awards were exercised.  The potential dilution from stock awards was computed using the treasury stock method based on the average market value of our Class A common stock.  The following table presents earnings per share amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2011		2010		2011		2010
	(In thousands, except per share amounts)
Net income (loss) attributable to DISH Network common shareholders	$	319,099	$	244,964	$	1,203,253	$	732,901
Weighted-average common shares outstanding - Class A and B common stock:
Basic	446,133		445,662		445,034		446,789
Dilutive impact of stock awards outstanding	1,598		670		1,442		786
Diluted	447,731		446,332		446,476		447,575
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network common shareholders	$	0.72	$	0.55	$	2.70	$	1.64
Diluted net income (loss) per share attributable to DISH Network common shareholders	$	0.71	$	0.55	$	2.70	$	1.64

As of September 30, 2011 and 2010, there were stock awards to purchase 5.3 million and 11.1 million shares, respectively, of Class A common stock outstanding, not included in the weighted-average common shares outstanding above, as their effect is antidilutive.

Vesting of options and rights to acquire shares of our Class A common stock granted pursuant to our performance based stock incentive plans (“Restricted Performance Units”) is contingent upon meeting certain goals which are not yet probable of being achieved.  As a consequence, the following are also not included in the diluted EPS calculation.

	As of September 30,
	2011	2010
	(In thousands)
Performance based options	11,028	11,003
Restricted Performance Units and other	1,376	1,518
Total	12,404	12,521