Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Share-based compensation

Schedule of stock awards outstanding

	As of September 30, 2012
	DISH Network Awards		EchoStar Awards
Stock Awards Outstanding	Stock Options	Restricted Stock Units	Stock Options	Restricted Stock Units
Held by DISH Network employees	15,610,119	1,095,081	1,181,965	45,620
Held by EchoStar employees	2,415,698	94,999	N/A	N/A
Total	18,025,817	1,190,080	1,181,965	45,620

Schedule of stock option activity

	For the Nine Months
	Ended September 30, 2012
	Options		Weighted- Average Exercise Price
Total options outstanding, beginning of period (1)	21,336,159		$	20.53
Granted	556,500		$	31.99
Exercised	(3,320,846	)	$	17.69
Forfeited and cancelled	(545,996	)	$	20.43
Total options outstanding, end of period	18,025,817		$	19.11
Performance-based options outstanding, end of period (2)	7,942,850		$	18.85
Exercisable at end of period	7,152,966		$	18.55

(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				For the Nine Months
	Ended September 30,				Ended September 30,
	2012		2011		2012		2011
	(In thousands)
Tax benefit from stock awards exercised	$	3,366	$	713	$	15,313	$	7,122

Schedule of aggregate intrinsic value of stock options outstanding and exercisable

	As of September 30, 2012
	Options Outstanding		Options Exercisable
	(In thousands)
Aggregate intrinsic value	$	209,194	$	87,104

Schedule of restricted stock unit activity

	For the Nine Months Ended September 30, 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	(24,795	)	$	22.94
Forfeited and cancelled	(69,833	)	$	27.09
Total restricted stock units outstanding, end of period	1,190,080		$	23.03
Restricted Performance Units outstanding, end of period (1)	1,190,080		$	23.03

(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 awards outstanding pursuant to performance-based stock incentive plans

	As of September 30, 2012
Performance-Based Stock Options	Number of Awards	Weighted- Average Exercise Price
2005 LTIP	3,214,500	$	21.10
2008 LTIP	1,728,350	$	10.65
Other employee performance awards	3,000,000	$	21.16
Total	7,942,850	$	18.85
Restricted Performance Units
2005 LTIP	319,830
2008 LTIP	10,250
Other employee performance awards	860,000
Total	1,190,080

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

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2012		2011		2012		2011
	(In thousands)
Subscriber-related	$	312	$	335	$	1,506	$	1,652
General and administrative	6,446		6,365		35,451		23,943
Total non-cash, stock-based compensation	$	6,758	$	6,700	$	36,957	$	25,595

Schedule of assumptions of Black-Scholes option valuation model

	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
Stock Options	2012 (1)	2011	2012	2011
Risk-free interest rate	0.78%	0.69% - 1.31%	0.41% - 1.29%	0.69% - 3.18%
Volatility factor	38.90%	36.67% - 44.68%	33.15% - 39.34%	31.74% - 44.68%
Expected term of options in years	5.8	3.9 - 6.5	3.1 - 5.9	3.9 - 10.0
Weighted-average fair value of options granted	$11.44	$8.73 - $9.68	$6.72 - $12.69	$8.73 - $14.77

(1)  During the three months ended September 30, 2012, all stock options granted had the same vesting period.

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	$	35,508	$	32,209
EchoStar awards held by DISH Network employees	6,389		5,903
Total	$	41,897	$	38,112

(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	$	1,170	$	738
Estimated contingent expense subsequent to 2012	—		46,516
Total estimated remaining expense over the term of the plan	$	1,170	$	47,254

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Non-Cash, Stock-Based Compensation Expense Recognized	2012		2011		2012		2011
	(In thousands)
2008 LTIP	$	2,515	$	2,507	$	10,694	$	16,806
Other employee performance awards	1,279		159		5,851		147
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	3,794	$	2,666	$	16,545	$	16,953