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Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2012
Share-based compensation  
Schedule of stock awards outstanding

 

 

 

 

As of March 31, 2012

 

 

 

DISH Network Awards

 

EchoStar Awards

 

Stock Awards Outstanding

 

Stock
Options

 

Restricted
Stock
Units

 

Stock
Options

 

Restricted
Stock
Units

 

Held by DISH Network employees

 

18,762,631

 

1,186,376

 

791,554

 

53,620

 

Held by EchoStar employees

 

2,580,701

 

94,999

 

N/A

 

N/A

 

Total

 

21,343,332

 

1,281,375

 

791,554

 

53,620

 

Schedule of stock option activity

 

 

 

 

For the Three Months

 

 

 

Ended March 31, 2012

 

 

 

Options

 

Weighted-

Average
Exercise Price

 

Total options outstanding, beginning of period (1)

 

21,336,159

 

$

20.53

 

Granted

 

411,000

 

$

32.93

 

Exercised

 

(363,027

)

$

13.66

 

Forfeited and cancelled

 

(40,800

)

$

20.45

 

Total options outstanding, end of period

 

21,343,332

 

$

18.90

 

Performance-based options outstanding, end of period (2)

 

9,619,075

 

$

17.35

 

Exercisable at end of period

 

8,538,056

 

$

20.05

 

 

(1)         The beginning of period weighted-average exercise price of $20.53 does not reflect the 2012 Stock Option Adjustment, which occurred subsequent to December 31, 2011.

(2)         These stock options are included in the caption “Total options outstanding, end of period.”  See discussion of the 2005 LTIP, 2008 LTIP and other employee performance awards below.

Schedule of realized tax benefits from stock awards exercised

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

2012

 

2011

 

 

 

(In thousands)

 

Tax benefit from stock awards exercised

 

$

1,743

 

$

795

 

Schedule of aggregate intrinsic value of stock options outstanding and exercisable

 

 

 

 

As of March 31, 2012

 

 

 

Options
Outstanding

 

Options
Exercisable

 

 

 

(In thousands)

 

Aggregate intrinsic value

 

$

299,451

 

$

109,990

 

Schedule of restricted stock unit activity

 

 

 

 

For the Three Months

 

 

 

Ended March 31, 2012

 

 

 

Restricted
Stock
Units

 

Weighted-
Average
Grant Date
Fair Value

 

Total restricted stock units outstanding, beginning of period

 

1,284,708

 

$

23.25

 

Granted

 

 

$

 

Vested

 

 

$

 

Forfeited and cancelled

 

(3,333

)

$

25.07

 

Total restricted stock units outstanding, end of period

 

1,281,375

 

$

23.24

 

Restricted Performance Units outstanding, end of period (1)

 

1,281,375

 

$

23.24

 

 

(1)         These Restricted Performance Units are included in the caption “Total restricted stock units outstanding, end of period.”  See discussion of the 2005 LTIP, 2008 LTIP and other employee performance awards below.

Schedule of non-cash, stock-based compensation expense recognized

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

Non-Cash, Stock-Based Compensation Expense Recognized

 

2012

 

2011

 

 

 

(In thousands)

 

2008 LTIP

 

$

5,839

 

$

12,804

 

Other employee performance awards

 

3,139

 

75

 

Total non-cash, stock-based compensation expense recognized for performance-based awards

 

$

8,978

 

$

12,879

 

Schedule of awards outstanding pursuant to performance-based stock incentive plans

 

 

 

 

As of March 31, 2012

 

 

 

Number of
Awards

 

Weighted-
Average
Exercise Price

 

Performance-Based Stock Options

 

 

 

 

 

2005 LTIP

 

3,332,500

 

$

21.12

 

2008 LTIP

 

3,286,575

 

$

10.06

 

Other employee performance awards

 

3,000,000

 

$

21.16

 

Total

 

9,619,075

 

$

17.35

 

 

 

 

 

 

 

Restricted Performance Units and Other

 

 

 

 

 

2005 LTIP

 

359,830

 

 

 

2008 LTIP

 

21,545

 

 

 

Other employee performance awards

 

900,000

 

 

 

Total

 

1,281,375

 

 

 

Schedule of allocated non-cash, stock-based compensation expense for all employees

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

2012

 

2011

 

 

 

(In thousands)

 

Subscriber-related

 

$

837

 

$

977

 

General and administrative

 

22,345

 

14,200

 

Total non-cash, stock-based compensation

 

$

23,182

 

$

15,177

 

Schedule of assumptions of Black-Scholes option valuation model

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

Stock Options

 

2012

 

2011

 

Risk-free interest rate

 

0.51% - 1.29%

 

2.24% - 2.68%

 

Volatility factor

 

38.80% - 39.34%

 

35.82% - 39.59%

 

Expected term of options in years

 

3.4 - 5.9

 

4.9 - 6.3

 

Weighted-average fair value of options granted

 

$9.49 - $12.69

 

$9.16 - $9.81

 

LTIP 2005
 
Share-based compensation  
Schedule of unrecognized non-cash, stock-based compensation expense

 

 

 

 

2005 LTIP

 

 

 

Total

 

Vested
Portion (1)

 

 

 

(In thousands)

 

DISH Network awards held by DISH Network employees

 

$

38,172

 

$

30,587

 

EchoStar awards held by DISH Network employees

 

6,897

 

5,619

 

Total

 

$

45,069

 

$

36,206

 

 

(1)         Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon achievement of the performance condition.

LTIP 2008 and Other Performance Awards
 
Share-based compensation  
Schedule of unrecognized non-cash, stock-based compensation expense

 

Estimated Remaining Non-Cash, Stock-Based Compensation Expense

 

2008 LTIP

 

Other
Employee
Performance
Awards

 

 

 

(In thousands)

 

Remaining expense estimated to be recognized during 2012

 

$

3,474

 

$

3,139

 

Estimated contingent expense subsequent to 2012

 

3,619

 

47,594

 

Total estimated remaining expense over the term of the plan

 

$

7,093

 

$

50,733