|
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 EchoStar common shareholders” 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 earnings per share amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.
|
|
|
For the Three Months
Ended September 30, |
|
For the Nine Months
Ended September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(In thousands, except per share amounts) |
|
|
Net income (loss) attributable to EchoStar common shareholders |
|
$ |
(19,117 |
) |
$ |
5,151 |
|
$ |
16,529 |
|
$ |
35,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - Class A and B common stock: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
86,507 |
|
85,158 |
|
86,100 |
|
85,040 |
|
|
Dilutive impact of stock awards outstanding |
|
— |
|
92 |
|
1,071 |
|
96 |
|
|
Diluted |
|
86,507 |
|
85,250 |
|
87,171 |
|
85,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Class A and B common stock: |
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to EchoStar common shareholders |
|
$ |
(0.22 |
) |
$ |
0.06 |
|
$ |
0.19 |
|
$ |
0.42 |
|
|
Diluted net income (loss) per share attributable to EchoStar common shareholders |
|
$ |
(0.22 |
) |
$ |
0.06 |
|
$ |
0.19 |
|
$ |
0.42 |
|
As of September 30, 2011 and 2010, there were stock awards to purchase 3.9 million and 5.8 million shares, respectively, of our Class A common stock outstanding, not included in the weighted-average common shares outstanding above, as their effect is antidilutive.
Vesting of options and rights to acquire shares of our Class A common stock granted pursuant to a performance based stock incentive plan (“Restricted Performance Units”) is contingent upon meeting a certain company goal which is not yet probable of being achieved. As a consequence, the following are also not included in the diluted EPS calculation.
|
|
|
As of September 30, |
|
|
|
|
2011 |
|
2010 |
|
|
|
|
(In thousands) |
|
|
Performance based options |
|
673 |
|
698 |
|
|
Restricted Performance Units |
|
90 |
|
94 |
|
|
Total |
|
763 |
|
792 |
| |