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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2013
Share-based compensation  
Schedule of stock awards outstanding

 

 

 

As of December 31, 2013

 

 

 

DISH Network Awards

 

EchoStar Awards

 

Stock Awards Outstanding

 

Stock
Options

 

Restricted
Stock
Units

 

Stock
Options

 

Restricted
Stock
Units

 

Held by DISH Network employees

 

12,821,290

 

1,876,498

 

602,048

 

44,288

 

Held by EchoStar employees

 

1,237,284

 

66,999

 

N/A

 

N/A

 

Total

 

14,058,574

 

1,943,497

 

602,048

 

44,288

 

Schedule of exercise prices for stock options outstanding and exercisable

 

 

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

Number
Outstanding
as of
December 31,
2013

 

Weighted-
Average
Remaining
Contractual
Life

 

Weighted-
Average
Exercise
Price

 

Number
Exercisable
as of
December 31,
2013

 

Weighted-
Average
Remaining
Contractual
Life

 

Weighted-
Average
Exercise
Price

 

$   -

-

$ 10.00

 

1,914,198

 

3.82

 

$

6.29

 

1,810,798

 

3.74

 

$

6.29

 

$10.01

-

$ 15.00

 

140,286

 

5.50

 

$

12.20

 

23,085

 

5.28

 

$

12.75

 

$15.01

-

$ 20.00

 

5,406,475

 

3.41

 

$

17.92

 

615,875

 

2.90

 

$

17.81

 

$20.01

-

$ 25.00

 

1,646,312

 

3.93

 

$

21.43

 

978,212

 

2.53

 

$

21.28

 

$25.01

-

$ 30.00

 

2,258,007

 

7.09

 

$

27.80

 

1,205,907

 

6.63

 

$

27.71

 

$30.01

-

$ 35.00

 

504,796

 

6.48

 

$

31.95

 

148,296

 

4.47

 

$

31.62

 

$35.01

-

$ 40.00

 

2,159,500

 

9.03

 

$

36.64

 

7,000

 

9.01

 

$

36.40

 

$40.01

-

$ 45.00

 

10,000

 

4.50

 

$

42.52

 

10,000

 

4.50

 

$

42.52

 

$45.01

 

$ 50.00

 

19,000

 

9.36

 

$

45.68

 

 

 

$

 

$   -

-

$ 50.00

 

14,058,574

 

5.12

 

$

21.71

 

4,799,173

 

4.15

 

$

17.14

 

Schedule of stock option activity

 

 

 

For the Years Ended December 31,

 

 

 

2013

 

2012

 

2011

 

 

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Total options outstanding, beginning of period (1)

 

16,399,870

 

$

19.04

 

21,336,159

 

$

20.53

 

21,918,500

 

$

18.62

 

Granted

 

2,225,500

 

$

36.75

 

591,500

 

$

32.25

 

3,246,000

 

$

28.55

 

Exercised

 

(4,419,396

)

$

16.30

 

(4,940,393

)

$

18.46

 

(2,347,341

)

$

15.73

 

Forfeited and cancelled

 

(147,400

)

$

29.26

 

(587,396

)

$

20.44

 

(1,481,000

)

$

17.44

 

Total options outstanding, end of period

 

14,058,574

 

$

21.71

 

16,399,870

 

$

19.04

 

21,336,159

 

$

20.53

 

Performance based options outstanding, end of period (2)

 

7,790,500

 

$

24.02

 

7,929,250

 

$

18.85

 

9,549,375

 

$

19.20

 

Exercisable at end of period

 

4,799,173

 

$

17.14

 

6,011,719

 

$

18.31

 

8,389,683

 

$

21.70

 

 

 

(1)         The beginning of period weighted-average exercise price for the year ended December 31, 2013 of $19.04 does not reflect the 2012 Stock Option Adjustment, which occurred subsequent to December 31, 2012.  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.

(2)         These stock options are included in the caption “Total options outstanding, end of period.”  See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below.

Schedule of realized tax benefits from stock awards exercised

 

 

 

For the Years Ended December 31,

 

 

 

2013

 

2012

 

2011

 

 

 

(In thousands)

 

Tax benefit from stock awards exercised

 

$

38,947

 

$

23,378

 

$

9,911

 

Schedule of aggregate intrinsic value of stock options outstanding and exercisable

 

 

 

As of December 31, 2013

 

 

 

Options
Outstanding

 

Options
Exercisable

 

 

 

(In thousands)

 

Aggregate intrinsic value

 

$

509,024

 

$

195,714

 

Schedule of restricted stock unit activity

 

 

 

For the Years Ended December 31,

 

 

 

2013

 

2012

 

2011

 

 

 

Restricted
Stock
Units

 

Weighted-
Average
Grant Date
Fair Value

 

Restricted
Stock
Units

 

Weighted-
Average
Grant Date
Fair Value

 

Restricted
Stock
Units

 

Weighted-
Average
Grant Date
Fair Value

 

Total restricted stock units outstanding, beginning of period

 

1,185,080

 

$

22.99

 

1,284,708

 

$

23.25

 

1,564,332

 

$

23.00

 

Granted

 

990,000

 

$

36.53

 

 

$

 

300,000

 

$

30.67

 

Vested

 

(135,250

)

$

29.19

 

(24,795

)

$

22.94

 

(70,830

)

$

27.15

 

Forfeited and cancelled

 

(96,333

)

$

30.46

 

(74,833

)

$

27.33

 

(508,794

)

$

27.32

 

Total restricted stock units outstanding, end of period

 

1,943,497

 

$

29.09

 

1,185,080

 

$

22.99

 

1,284,708

 

$

23.25

 

Restricted Performance Units outstanding, end of period (1)

 

1,943,497

 

$

29.09

 

1,185,080

 

$

22.99

 

1,284,708

 

$

23.25

 

 

 

(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, 2013 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

 

2013

 

2012

 

2011

 

 

 

(In thousands)

 

2008 LTIP

 

$

2,889

 

$

9,246

 

$

18,944

 

2013 LTIP

 

8,137

 

 

 

Other employee performance awards

 

4,045

 

7,471

 

218

 

Non-cash, stock-based compensation expense recognized for performance based awards from continuing operations

 

15,071

 

16,717

 

19,162

 

Non-cash, stock-based compensation expense recognized for performance based awards from discontinued operations

 

182

 

566

 

78

 

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

 

$

15,253

 

$

17,283

 

$

19,240

 

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

 

 

 

As of December 31, 2013

 

Performance Based Stock Options

 

Number of
Awards

 

Weighted-
Average
Grant Price

 

2005 LTIP

 

3,200,500

 

$

20.33

 

2013 LTIP

 

1,920,000

 

$

36.53

 

Other employee performance awards

 

2,670,000

 

$

19.46

 

Total

 

7,790,500

 

$

24.02

 

 

Restricted Performance Units

 

 

 

 

 

2005 LTIP

 

288,497

 

 

 

2013 LTIP

 

960,000

 

 

 

Other employee performance awards

 

695,000

 

 

 

Total

 

1,943,497

 

 

 

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

 

 

 

For the Years Ended December 31,

 

 

 

2013

 

2012

 

2011

 

 

 

(In thousands)

 

Subscriber-related

 

$

1,947

 

$

1,607

 

$

1,914

 

General and administrative

 

27,783

 

37,720

 

29,299

 

Non-cash, stock-based compensation from continuing operations

 

29,730

 

39,327

 

31,213

 

Non-cash, stock-based compensation from discontinued operations

 

925

 

1,643

 

308

 

Total non-cash, stock-based compensation

 

$

30,655

 

$

40,970

 

$

31,521

 

Schedule of assumptions of Black-Scholes option valuation model

 

 

 

For the Years Ended December 31,

Stock Options

 

2013

 

2012

 

2011

Risk-free interest rate

 

0.91% - 2.66%

 

0.41% - 1.29%

 

0.36% - 3.18%

Volatility factor

 

32.37% - 39.87%

 

33.15% - 39.50%

 

31.74% - 45.56%

Expected term of options in years

 

5.6 - 10.0

 

3.1 - 5.9

 

3.6 - 10.0

Weighted-average fair value of options granted

 

$14.49 - $21.09

 

$6.72 - $13.79

 

$8.73 - $14.77

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

 

$

36,840

 

$

35,698

 

EchoStar awards held by DISH Network employees

 

6,356

 

6,279

 

Total

 

$

43,196

 

$

41,977

 

LTIP 2008, LTIP 2013 and Other
 
Share-based compensation  
Schedule of unrecognized non-cash, stock-based compensation expense

 

Estimated Remaining Non-Cash, Stock-Based Compensation Expense

 

2013 LTIP

 

Other
Employee
Performance
Awards

 

 

 

(In thousands)

 

Expense estimated to be recognized during 2014

 

$

5,460

 

$

432

 

Estimated contingent expense subsequent to 2014

 

52,311

 

38,817

 

Total estimated remaining expense over the term of the plan

 

$

57,771

 

$

39,249