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Stock-Based Compensation (Tables)
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Stock-Based Compensation    
Schedule of stock awards outstanding

 

 

 

 

As of June 30, 2012

 

 

 

DISH Network Awards

 

EchoStar Awards

 

Stock Awards Outstanding

 

Stock
Options

 

Restricted
Stock
Units

 

Stock
Options

 

Restricted
Stock
Units

 

Held by DISH DBS employees

 

15,312,107

 

1,092,581

 

700,430

 

44,020

As of December 31, 2011

 

 

 

DISH Network Awards

 

EchoStar Awards

 

Stock Awards Outstanding

 

Stock
Options

 

Restricted
Stock
Units

 

Stock
Options

 

Restricted
Stock
Units

 

Held by DDBS employees

 

17,640,074

 

1,179,709

 

700,521

 

52,286

 

 

Schedule of exercise prices for stock options outstanding and exercisable associated with entity's employees  

 

 

 

 

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

Number
Outstanding
as of
December 31,
2011

 

Weighted-
Average
Remaining
Contractual
Life

 

Weighted-
Average
Exercise
Price

 

Number
Exercisable
as of
December 31,
2011

 

Weighted-
Average
Remaining
Contractual
Life

 

Weighted-
Average
Exercise
Price

 

$   —

 

-

 

$ 10.00

 

3,978,408

 

5.67

 

$

9.09

 

1,186,308

 

5.75

 

$

9.09

 

$10.00

 

-

 

$ 15.00

 

829,288

 

6.51

 

$

14.01

 

200,651

 

6.51

 

$

13.96

 

$15.00

 

-

 

$ 20.00

 

2,365,215

 

8.17

 

$

18.15

 

140,676

 

6.69

 

$

18.19

 

$20.00

 

-

 

$ 25.00

 

5,467,263

 

4.48

 

$

22.78

 

2,517,663

 

3.23

 

$

22.73

 

$25.00

 

-

 

$ 30.00

 

2,507,345

 

5.15

 

$

26.46

 

1,771,596

 

4.63

 

$

26.46

 

$30.00

 

-

 

$ 35.00

 

2,454,055

 

8.83

 

$

31.19

 

548,504

 

7.12

 

$

32.29

 

$35.00

 

-

 

$ 40.00

 

38,500

 

5.65

 

$

36.74

 

22,400

 

5.61

 

$

36.68

 

$   —

 

-

 

$ 40.00

 

17,640,074

 

6.04

 

$

20.38

 

6,387,798

 

4.61

 

$

21.73

 

 

Schedule of stock option activity associated with entity's employees

 

 

 

 

For the Six Months

 

 

 

Ended June 30, 2012

 

 

 

Options

 

Weighted-
Average
Exercise
Price

 

Total options outstanding, beginning of period (1)

 

17,640,074

 

$

20.38

 

Granted

 

499,500

 

$

32.14

 

Exercised

 

(2,440,967

)

$

18.44

 

Forfeited and cancelled

 

(386,500

)

$

20.32

 

Total options outstanding, end of period

 

15,312,107

 

$

18.91

 

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

 

6,531,800

 

$

18.70

 

Exercisable at end of period

 

5,926,911

 

$

17.97

 

 

 

(1)          The beginning of period weighted-average exercise price of $20.38 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.

 

 

 

2011

 

2010

 

2009

 

 

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Total stock options outstanding, beginning of period (1)

 

18,447,004

 

$

17.76

 

18,094,235

 

$

20.86

 

18,267,950

 

$

21.86

 

Granted

 

3,198,500

 

$

28.52

 

2,450,500

 

$

18.34

 

3,077,000

 

$

15.69

 

Exercised

 

(1,640,462

)

$

12.36

 

(408,231

)

$

9.99

 

(233,795

)

$

10.95

 

Forfeited and cancelled (2)

 

(2,364,968

)

$

12.11

 

(1,689,500

)

$

21.69

 

(3,016,920

)

$

22.44

 

Total stock options outstanding, end of period

 

17,640,074

 

$

20.38

 

18,447,004

 

$

17.76

 

18,094,235

 

$

20.86

 

Performance based stock options outstanding, end of period (3)

 

8,022,975

 

$

18.89

 

9,907,250

 

$

15.29

 

8,253,500

 

$

16.27

 

Exercisable at end of period

 

6,387,798

 

$

21.73

 

5,325,753

 

$

22.70

 

5,722,735

 

$

28.36

 

 

(1)   The beginning of period weighted-average exercise price for the year ended December 31, 2010 of $20.86 does not reflect the 2009 Stock Option Adjustment, which occurred subsequent to December 31, 2009.

(2)   Certain of these stock options include options that were granted to individuals who transferred to another DISH Network subsidiary not a part of DDBS.

(3)   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 Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(In thousands)

 

Tax benefit from stock awards exercised

 

$

9,787

 

$

5,614

 

$

11,530

 

$

6,409

 

For the Years Ended December 31,

 

 

 

2011

 

2010

 

2009

 

 

 

(In thousands)

 

Tax benefit from stock awards exercised

 

$

9,786

 

$

1,665

 

$

1,116

 

 

Schedule of aggregate intrinsic value of stock options associated with entity's employees

 

 

 

 

As of June 30, 2012

 

 

 

Options
Outstanding

 

Options
Exercisable

 

 

 

(In thousands)

 

Aggregate intrinsic value

 

$

151,123

 

$

63,994

 

As of December 31, 2011

 

 

 

Options
Outstanding

 

Options
Exercisable

 

 

 

(In thousands)

 

Aggregate intrinsic value

 

$

150,165

 

$

45,708

 

 

Schedule of restricted stock unit activity associated with entity's employees

 

 

 

 

For the Six Months

 

 

 

Ended June 30, 2012

 

 

 

Restricted
Stock
Units

 

Weighted-
Average
Grant Date
Fair Value

 

Total restricted stock units outstanding, beginning of period

 

1,179,709

 

$

23.11

 

Granted

 

 

$

 

Vested

 

(24,795

)

$

22.94

 

Forfeited and cancelled

 

(62,333

)

$

26.20

 

Total restricted stock units outstanding, end of period

 

1,092,581

 

$

22.90

 

Restricted Performance Units outstanding, end of period (1)

 

1,092,581

 

$

22.90

 

 

 

(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.

 

2011

 

2010

 

2009

 

 

 

Restricted
Stock
Awards

 

Weighted-
Average
Grant Date
Fair Value

 

Restricted
Stock
Awards

 

Weighted-
Average
Grant Date
Fair Value

 

Restricted
Stock
Awards

 

Weighted-
Average
Grant Date
Fair Value

 

Total restricted stock units outstanding, beginning of period

 

1,271,984

 

$

22.06

 

857,719

 

$

25.04

 

987,625

 

$

24.88

 

Granted

 

300,000

 

$

30.67

 

600,000

 

$

18.15

 

6,666

 

$

11.11

 

Vested

 

(14,705

)

$

11.09

 

 

$

 

(38,072

)

$

22.76

 

Forfeited and cancelled

 

(377,570

)

$

26.23

 

(185,735

)

$

23.07

 

(98,500

)

$

23.33

 

Total restricted stock units outstanding, end of period

 

1,179,709

 

$

23.11

 

1,271,984

 

$

22.06

 

857,719

 

$

25.04

 

Restricted Performance Units outstanding, end of period (1)

 

1,179,709

 

$

23.11

 

1,271,984

 

$

22.06

 

857,719

 

$

25.04

 

 

(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

 

For the Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

Non-Cash, Stock-Based Compensation Expense Recognized

 

2012

 

2011

 

2012

 

2011

 

 

 

(In thousands)

 

2008 LTIP

 

$

2,179

 

$

1,495

 

$

7,457

 

$

14,299

 

Other employee performance awards

 

1,433

 

(87

)

4,572

 

(12

)

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

 

$

3,612

 

$

1,408

 

$

12,029

 

$

14,287

Estimated Remaining Non-Cash, Stock-Based Compensation Expense

 

2008 LTIP

 

Other
Employee
Performance
Awards

 

 

 

(In thousands)

 

Expense estimated to be recognized during 2012

 

$

4,412

 

$

162

 

Estimated contingent expense subsequent to 2012

 

3,290

 

51,258

 

Total estimated remaining expense over the term of the plan

 

$

7,702

 

$

51,420

 

 

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

 

 

 

 

As of June 30, 2012

 

 

 

Number of
Awards

 

Weighted-
Average
Exercise Price

 

Performance-Based Stock Options

 

 

 

 

 

2005 LTIP

 

1,881,500

 

$

21.61

 

2008 LTIP

 

1,650,300

 

$

10.92

 

Other employee performance awards

 

3,000,000

 

$

21.16

 

Total

 

6,531,800

 

$

18.70

 

 

 

 

 

 

 

Restricted Performance Units

 

 

 

 

 

2005 LTIP

 

216,831

 

 

 

2008 LTIP

 

10,750

 

 

 

Other employee performance awards

 

865,000

 

 

 

Total

 

1,092,581

 

As of December 31, 2011

 

 

 

Number of
Awards

 

Weighted-
Average
Exercise
Price

 

Performance Based Stock Options

 

 

 

 

 

2005 LTIP

 

1,944,500

 

$

23.30

 

2008 LTIP

 

3,078,475

 

$

11.95

 

Other employee performance awards

 

3,000,000

 

$

23.16

 

Total

 

8,022,975

 

$

18.89

 

 

 

 

 

 

 

Restricted Performance Units and Other

 

 

 

 

 

2005 LTIP

 

258,164

 

 

 

2008 LTIP

 

21,545

 

 

 

Other employee performance awards

 

900,000

 

 

 

Total

 

1,179,709

 

 

 

 

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

 

 

 

 

For the Three Months

 

For the Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(In thousands)

 

Subscriber-related

 

$

357

 

$

340

 

$

1,194

 

$

1,317

 

General and administrative

 

6,400

 

3,378

 

27,650

 

17,543

 

Total non-cash, stock-based compensation

 

$

6,757

 

$

3,718

 

$

28,844

 

$

18,860

 

For the Years Ended December 31,

 

 

 

2011

 

2010

 

2009

 

 

 

(In thousands)

 

Subscriber-related

 

$

1,914

 

$

1,160

 

$

1,069

 

General and administrative

 

29,249

 

14,227

 

11,158

 

Total non-cash, stock based compensation

 

$

31,163

 

$

15,387

 

$

12,227

 

 

Schedule of assumptions of Black-Scholes option valuation model

 

 

 

 

For the Three Months

 

For the Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

Stock Options

 

2012

 

2011

 

2012

 

2011

 

Risk-free interest rate

 

0.41% - 0.87%

 

1.76% - 3.18%

 

0.41% - 1.29%

 

1.76% - 3.18%

 

Volatility factor

 

33.15% - 38.87%

 

31.74% - 41.00%

 

33.15% - 39.34%

 

31.74% - 41.00%

 

Expected term of options in years

 

3.1 - 5.8

 

4.7 - 10.0

 

3.1 - 5.9

 

4.7 - 10.0

 

Weighted-average fair value of options granted

 

$6.72 - $10.72

 

$11.33 - $14.77

 

$6.72 - $12.69

 

$9.16 - $14.77

 

For the Years Ended December 31,

 

Stock Options

 

2011

 

2010

 

2009

 

Risk-free interest rate

 

0.36% - 3.18%

 

1.50% - 2.89%

 

1.70% - 3.19%

 

Volatility factor

 

31.74% - 45.56%

 

33.33% - 38.63%

 

29.72% - 45.97%

 

Expected term of options in years

 

3.6 - 10.0

 

5.2 - 7.5

 

3.0 - 7.3

 

Weighted-average fair value of options granted

 

$8.73 - $14.77

 

$6.83 - $8.14

 

$3.86 - $8.29

 

 

2005 LTIP
   
Stock-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 DBS employees

 

$

31,296

 

$

25,107

 

EchoStar awards held by DISH DBS employees

 

5,644

 

4,627

 

Total

 

$

36,940

 

$

29,734

 

 

 

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

 

2005 LTIP

 

 

 

Total

 

Vested
Portion (1)

 

 

 

(In thousands)

 

DISH Network awards held by DDBS employees

 

$

31,300

 

$

22,768

 

EchoStar awards held by DDBS employees

 

6,913

 

5,078

 

Total

 

$

38,213

 

$

27,846

 

 

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

 

2008 LTIP and Other
   
Stock-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

 

$

1,823

 

$

2,128

 

Estimated contingent expense subsequent to 2012

 

1,915

 

46,559

 

Total estimated remaining expense over the term of the plan

 

$

3,738

 

$

48,687

 

For the Years Ended December 31,

 

Non-Cash, Stock-Based Compensation Expense Recognized

 

2011

 

2010

 

2009

 

 

 

(In thousands)

 

2008 LTIP

 

$

18,944

 

$

2,984

 

$

3,560

 

Other employee performance awards

 

144

 

271

 

234

 

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

 

$

19,088

 

$

3,255

 

$

3,794