Basic and Diluted Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2013

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” 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 EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.

	For the Three Months					For the Six Months
	Ended June 30,					Ended June 30,
	2013			2012		2013		2012
	(In thousands, except per share amounts)
Net income (loss) attributable to DISH Network	$	(11,052	)	$	225,732	$	204,546	$	586,042
Weighted-average common shares outstanding - Class A and B common stock:
Basic	455,452			450,292		454,353		448,791
Dilutive impact of stock awards outstanding	—			2,785		3,052		2,634
Diluted	455,452			453,077		457,405		451,425
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network	$	(0.02	)	$	0.50	$	0.45	$	1.31
Diluted net income (loss) per share attributable to DISH Network	$	(0.02	)	$	0.50	$	0.45	$	1.30

We had a net loss for the three months ended June 30, 2013; therefore, the effect of stock awards is excluded from the computations of diluted earnings (loss) per share since the effect is anti-dilutive.  As of June 30, 2013 and 2012, there were stock awards to purchase 1.7 million and 3.3 million shares, respectively, of Class A common stock outstanding, not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive.

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, some of which are not yet probable of being achieved.  As a consequence, the following are also not included in the diluted EPS calculation.

	As of June 30,
	2013	2012
	(In thousands)
Performance-based options	7,841	7,976
Restricted Performance Units	1,987	1,198
Total	9,828	9,174