Stock-Based Compensation (Tables)
| 9 Months Ended |
|---|
Sep. 30, 2011 |
|---|
| Stock-Based Compensation | |
| Schedule of stock awards outstanding |
|
|
|
|
As of September 30, 2011 |
|
|
|
|
EchoStar Awards |
|
DISH Network Awards |
|
|
Stock Awards Outstanding |
|
Stock
Options |
|
Restricted
Stock
Units |
|
Stock
Options |
|
Restricted
Stock
Units |
|
|
Held by EchoStar employees |
|
8,311,415 |
|
93,165 |
|
3,011,803 |
|
211,124 |
|
|
Held by DISH Network employees |
|
823,454 |
|
57,786 |
|
N/A |
|
N/A |
|
|
Total |
|
9,134,869 |
|
150,951 |
|
3,011,803 |
|
211,124 |
| |
|
| Schedule of stock option activity |
|
|
|
|
For the Nine Months |
|
|
|
|
Ended September 30, 2011 |
|
|
|
|
Options |
|
Weighted-
Average
Exercise Price |
|
|
Total options outstanding, beginning of period |
|
7,795,373 |
|
$ |
23.24 |
|
|
Granted |
|
2,600,000 |
|
$ |
36.82 |
|
|
Exercised |
|
(1,035,504 |
) |
$ |
23.95 |
|
|
Forfeited and cancelled |
|
(225,000 |
) |
$ |
21.25 |
|
|
Total options outstanding, end of period |
|
9,134,869 |
|
$ |
27.07 |
|
|
Performance based options outstanding, end of period (1) |
|
673,000 |
|
$ |
25.31 |
|
|
Exercisable at end of period |
|
2,660,787 |
|
$ |
25.46 |
|
(1) These stock options are included in the caption Total options outstanding, end of period. See discussion of the 2005 LTIP below. |
|
| Schedule of realized tax benefits from stock awards exercised |
|
|
|
|
For the Three Months |
|
For the Nine Months |
|
|
|
|
Ended September 30, |
|
Ended September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(In thousands) |
|
|
Tax benefit from stock awards exercised |
|
$ |
329 |
|
$ |
53 |
|
$ |
5,205 |
|
$ |
1,005 |
| |
|
| Schedule of aggregate intrinsic value of stock options outstanding and exercisable |
|
|
|
|
As of September 30, 2011 |
|
|
|
|
Options
Outstanding |
|
Options
Exercisable |
|
|
|
|
(In thousands) |
|
|
Aggregate intrinsic value |
|
$ |
14,097 |
|
$ |
3,236 |
| |
|
| Schedule of restricted stock unit activity |
|
|
|
|
For the Nine Months |
|
|
|
|
Ended September 30, 2011 |
|
|
|
|
Restricted
Stock
Units |
|
Weighted-
Average
Grant Date
Fair Value |
|
|
Total restricted stock units outstanding, beginning of period |
|
107,249 |
|
$ |
27.33 |
|
|
Granted |
|
49,950 |
|
$ |
36.43 |
|
|
Vested |
|
|
|
$ |
|
|
|
Forfeited and cancelled |
|
(6,248 |
) |
$ |
28.17 |
|
|
Total restricted stock units outstanding, end of period |
|
150,951 |
|
$ |
30.29 |
|
|
Restricted Performance Units outstanding, end of period (1) |
|
89,776 |
|
$ |
26.68 |
|
(1) These Restricted Performance Units are included in the caption Total restricted stock units outstanding, end of period. See discussion of the 2005 LTIP below. |
|
| Schedule of unrecognized non-cash, stock-based compensation expense under the 2005 LTIP |
|
|
|
|
2005 LTIP |
|
|
|
|
|
|
Vested |
|
|
|
|
Total |
|
Portion (1) |
|
|
|
|
(In thousands) |
|
|
DISH Network awards held by EchoStar employees |
|
$ |
17,029 |
|
$ |
13,133 |
|
|
EchoStar awards held by EchoStar employees |
|
3,393 |
|
2,616 |
|
|
Total |
|
$ |
20,422 |
|
$ |
15,749 |
|
(1) Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon achievement of the performance condition. |
|
| Schedule of awards outstanding under 2005 LTIP |
|
|
|
|
As of September 30, 2011 |
|
|
|
|
Number of
Awards |
|
Weighted-
Average
Exercise
Price |
|
|
Stock options |
|
673,000 |
|
$ |
25.31 |
|
|
Restricted Performance Units |
|
89,776 |
|
|
|
|
Total |
|
762,776 |
|
|
| |
|
| Schedule of share based compensation allocated non-cash stock-based compensation expense |
|
|
|
|
For the Three Months |
|
For the Nine Months |
|
|
|
|
Ended September 30, |
|
Ended September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(In thousands) |
|
|
Research and development expenses |
|
$ |
564 |
|
$ |
755 |
|
$ |
1,776 |
|
$ |
2,883 |
|
|
Selling, general and administrative expenses |
|
4,452 |
|
2,486 |
|
9,782 |
|
7,659 |
|
|
Total non-cash, stock-based compensation |
|
$ |
5,016 |
|
$ |
3,241 |
|
$ |
11,558 |
|
$ |
10,542 |
| |
|
| 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 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
Risk-free interest rate |
|
1.19% |
|
1.64% |
|
1.19% - 2.57% |
|
1.64% - 2.97% |
|
|
Volatility factor |
|
37.85% |
|
31.32% |
|
34.68% - 38.68% |
|
31.00% - 31.51% |
|
|
Expected term of options in years |
|
6.0 |
|
6.2 |
|
5.1 - 6.0 |
|
6.1 - 6.2 |
|
|
Weighted-average fair value of options granted |
|
$8.59 |
|
$6.44 |
|
$8.59 - $14.42 |
|
$6.44 - $7.38 |
| |
|