Note 3. Earnings 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 attributable to EchoStar” 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 during the period.

The following table presents basic and diluted EPS amounts for all periods and the corresponding weighted-average shares outstanding used in the calculations.

	For the Years Ended December 31,
	2012		2011		2010
	(Dollars in thousands, except per share amounts)
Net income attributable to EchoStar	$	211,048	$	3,639	$	204,358
Weighted-average common shares outstanding - Class A and B common stock:
Basic	87,150		86,223		85,084
Dilutive impact of stock awards outstanding	809		866		119
Diluted	87,959		87,089		85,203

Earnings per share - Class A and B common stock:
Basic	$	2.42	$	0.04	$	2.40
Diluted	$	2.40	$	0.04	$	2.40

As of December 31, 2012, 2011 and 2010, there were options to purchase 4.4 million, 4.0 million and 5.9 million shares, respectively, of our Class A common stock outstanding, not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive.

Vesting of certain 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 was not probable of being achieved as of December 31, 2012, 2011 and 2010. As a result, the following awards were outstanding and were not included in the diluted EPS calculation.

	As of December 31,
	2012	2011	2010
	(In thousands)
Performance-based options	632	659	697
Restricted Performance Units	65	74	93
Total	697	733	790