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

 

 

 

 

As of December 31, 2012

 

 

 

DISH Network Awards

 

EchoStar Awards

 

 

 

 

 

Restricted

 

 

 

Restricted

 

 

 

Stock

 

Stock

 

Stock

 

Stock

 

Stock Awards Outstanding

 

Options

 

Units

 

Options

 

Units

 

Held by DISH Network employees

 

14,209,557

 

1,090,081

 

1,109,868

 

45,620

 

Held by EchoStar employees

 

2,190,313

 

94,999

 

N/A

 

N/A

 

Total

 

16,399,870

 

1,185,080

 

1,109,868

 

45,620

 

Schedule of exercise prices for stock options outstanding and exercisable

 

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

Number

 

Weighted-

 

 

 

Number

 

Weighted-

 

 

 

 

 

Outstanding

 

Average

 

Weighted-

 

Exercisable

 

Average

 

Weighted-

 

 

 

as of

 

Remaining

 

Average

 

as of

 

Remaining

 

Average

 

 

 

December 31,

 

Contractual

 

Exercise

 

December 31,

 

Contractual

 

Exercise

 

 

 

2012

 

Life

 

Price

 

2012

 

Life

 

Price

 

$-

-

$ 10.00

 

3,309,021

 

4.77

 

$

7.08

 

1,730,371

 

4.84

 

$

7.04

 

$10.01

-

$ 15.00

 

422,001

 

5.62

 

$

12.25

 

84,001

 

5.98

 

$

12.17

 

$15.01

-

$ 20.00

 

3,305,285

 

6.13

 

$

17.00

 

987,184

 

3.72

 

$

18.32

 

$20.01

-

$ 25.00

 

6,022,513

 

3.27

 

$

21.31

 

2,106,113

 

2.65

 

$

21.78

 

$25.01

-

$ 30.00

 

2,369,600

 

7.88

 

$

28.49

 

679,100

 

6.45

 

$

28.26

 

$30.01

-

$ 35.00

 

934,450

 

6.56

 

$

32.45

 

422,950

 

4.33

 

$

32.25

 

$35.01

-

$ 40.00

 

37,000

 

9.69

 

$

36.38

 

2,000

 

4.25

 

$

36.10

 

$-

-

$ 40.00

 

16,399,870

 

5.08

 

$

19.04

 

6,011,719

 

4.05

 

$

18.31

 

Schedule of stock option activity

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

Weighted-

 

 

 

Weighted-

 

 

 

Weighted-

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Average

 

 

 

 

 

Exercise

 

 

 

Exercise

 

 

 

Exercise

 

 

 

Options

 

Price

 

Options

 

Price

 

Options

 

Price

 

Total options outstanding, beginning of period (1)

 

21,336,159

 

$

20.53

 

21,918,500

 

$

18.62

 

21,861,691

 

$

21.71

 

Granted

 

591,500

 

$

32.25

 

3,246,000

 

$

28.55

 

2,450,500

 

$

18.34

 

Exercised

 

(4,940,393

)

$

18.46

 

(2,347,341

)

$

15.73

 

(448,729

)

$

9.23

 

Forfeited and cancelled

 

(587,396

)

$

20.44

 

(1,481,000

)

$

17.44

 

(1,944,962

)

$

22.26

 

Total options outstanding, end of period

 

16,399,870

 

$

19.04

 

21,336,159

 

$

20.53

 

21,918,500

 

$

18.62

 

Performance based options outstanding, end of period (2)

 

7,929,250

 

$

18.85

 

9,549,375

 

$

19.20

 

10,978,750

 

$

15.98

 

Exercisable at end of period

 

6,011,719

 

$

18.31

 

8,389,683

 

$

21.70

 

7,590,264

 

$

22.83

 

 

(1)          The beginning of period weighted-average exercise price for the year ended December 31, 2012 of $20.53 does not reflect the 2011 Stock Option Adjustment, which occurred subsequent to December 31, 2011.  The beginning of period weighted-average exercise price for the year ended December 31, 2010 of $21.71 does not reflect the 2009 Stock Option Adjustment, which occurred subsequent to December 31, 2009.

(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 Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

(In thousands)

 

 

 

Tax benefit from stock awards exercised

 

$

23,378

 

$

9,911

 

$

1,665

 

Schedule of aggregate intrinsic value of stock options outstanding and exercisable

 

 

 

 

As of December 31, 2012

 

 

 

Options

 

Options

 

 

 

Outstanding

 

Exercisable

 

 

 

(In thousands)

 

Aggregate intrinsic value

 

$

284,630

 

$

108,769

 

Schedule of restricted stock unit activity

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

Weighted-

 

 

 

Weighted-

 

 

 

Weighted-

 

 

 

Restricted

 

Average

 

Restricted

 

Average

 

Restricted

 

Average

 

 

 

Stock

 

Grant Date

 

Stock

 

Grant Date

 

Stock

 

Grant Date

 

 

 

Units

 

Fair Value

 

Units

 

Fair Value

 

Units

 

Fair Value

 

Total restricted stock units outstanding, beginning of period

 

1,284,708

 

$

23.25

 

1,564,332

 

$

23.00

 

1,246,284

 

$

25.93

 

Granted

 

 

$

 

300,000

 

$

30.67

 

600,000

 

$

18.15

 

Vested

 

(24,795

)

$

22.94

 

(70,830

)

$

27.15

 

(69,875

)

$

31.36

 

Forfeited and cancelled

 

(74,833

)

$

27.33

 

(508,794

)

$

27.32

 

(212,077

)

$

23.77

 

Total restricted stock units outstanding, end of period

 

1,185,080

 

$

22.99

 

1,284,708

 

$

23.25

 

1,564,332

 

$

23.00

 

Restricted Performance Units outstanding, end of period (1)

 

1,185,080

 

$

22.99

 

1,284,708

 

$

23.25

 

1,494,457

 

$

22.61

 

 

(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 Years Ended December 31,

 

Non-Cash, Stock-Based Compensation Expense Recognized

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

2008 LTIP

 

$

9,812

 

$

19,230

 

$

2,984

 

Other employee performance awards

 

7,471

 

10

 

271

 

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

 

$

17,283

 

$

19,240

 

$

3,255

 

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

 

 

 

 

As of December 31, 2012

 

 

 

 

 

Weighted-

 

 

 

Number of

 

Average

 

 

 

Awards

 

Grant Price

 

Performance Based Stock Options

 

 

 

 

 

2005 LTIP

 

3,214,500

 

$

21.10

 

2008 LTIP

 

1,714,750

 

$

10.59

 

Other employee performance awards

 

3,000,000

 

$

21.16

 

Total

 

7,929,250

 

$

18.85

 

 

 

 

 

 

 

Restricted Performance Units

 

 

 

 

 

2005 LTIP

 

319,830

 

 

 

2008 LTIP

 

10,250

 

 

 

Other employee performance awards

 

855,000

 

 

 

Total

 

1,185,080

 

 

 

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

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

Subscriber-related

 

$

1,607

 

$

1,914

 

$

1,160

 

General and administrative

 

39,363

 

29,607

 

14,227

 

Total non-cash, stock-based compensation

 

$

40,970

 

$

31,521

 

$

15,387

 

Schedule of assumptions of Black-Scholes option valuation model

 

 

 

 

For the Years Ended December 31,

 

Stock Options

 

2012

 

2011

 

2010

 

Risk-free interest rate

 

0.41% - 1.29%

 

0.36% - 3.18%

 

1.50% - 2.89%

 

Volatility factor

 

33.15% - 39.50%

 

31.74% - 45.56%

 

33.33% - 38.63%

 

Expected term of options in years

 

3.1 - 5.9

 

3.6 - 10.0

 

5.2 - 7.5

 

Weighted-average fair value of options granted

 

$6.72 - $13.79

 

$8.73 - $14.77

 

$6.83 - $8.14

 

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

 

 

 

 

2005 LTIP

 

 

 

 

 

Vested

 

 

 

Total

 

Portion (1)

 

 

 

(In thousands)

 

DISH Network awards held by DISH Network employees

 

$

35,508

 

$

32,863

 

EchoStar awards held by DISH Network employees

 

6,389

 

6,032

 

Total

 

$

41,897

 

$

38,895

 

 

(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

 

 

 

 

 

 

Other

 

 

 

 

 

Employee

 

 

 

 

 

Performance

 

Estimated Remaining Non-Cash, Stock-Based Compensation Expense

 

2008 LTIP

 

Awards

 

 

 

(In thousands)

 

Expense estimated to be recognized during 2013

 

$

1,994

 

$

2,677

 

Estimated contingent expense subsequent to 2013

 

 

42,804

 

Total estimated remaining expense over the term of the plan

 

$

1,994

 

$

45,481