v2.4.0.6
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2012
Stock-Based Compensation  
Schedule of stock awards outstanding

 

 

 

 

As of December 31, 2012

 

 

 

EchoStar Awards

 

DISH Network Awards

 

 

 

Stock
Options

 

Restricted
Stock
Units

 

Stock
Options

 

Restricted
Stock
Units

 

Held by EchoStar employees

 

6,798,432

 

106,063

 

2,215,313

 

94,999

 

Held by DISH Network employees

 

1,109,868

 

45,620

 

 

 

Total outstanding stock awards

 

7,908,300

 

151,683

 

2,215,313

 

94,999

 

Schedule of exercise prices for stock options outstanding and exercisable

 

 

 

 

Options Outstanding

 

Options Exercisable

 

Price Range

 

Number
Outstanding as
of December
31, 2012

 

Weighted-
Average
Remaining
Contractual
Term
(In Years)

 

Weighted-
Average
Exercise
Price

 

Number
Exercisable as
of December
31, 2012

 

Weighted-
Average
Remaining
Contractual
Term
(In Years)

 

Weighted-
Average
Exercise
Price

 

$0.00 - $10.00

 

3,666

 

3

 

$

2.15

 

3,666

 

3

 

$

2.15

 

$10.01 - $15.00

 

587,033

 

6

 

$

14.83

 

202,633

 

6

 

$

14.83

 

$15.01 - $20.00

 

796,565

 

7

 

$

18.82

 

249,565

 

7

 

$

18.65

 

$20.01 - $25.00

 

1,931,812

 

5

 

$

22.15

 

1,160,212

 

6

 

$

21.05

 

$25.01 - $30.00

 

2,354,903

 

5

 

$

28.59

 

1,614,103

 

4

 

$

28.77

 

$30.01 - $35.00

 

485,601

 

9

 

$

33.89

 

59,501

 

4

 

$

31.93

 

$35.01 - $40.00

 

1,748,720

 

8

 

$

37.14

 

456,486

 

7

 

$

37.03

 

 

 

7,908,300

 

6

 

$

27.21

 

3,746,166

 

6

 

$

25.98

Schedule of stock option activity

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Options

 

Weighted-
Average
Exercise
Price

 

Total options outstanding, beginning of period

 

8,078,413

 

$

26.30

 

7,795,373

 

$

23.24

 

7,203,101

 

$

24.85

 

Granted

 

771,000

 

$

30.81

 

1,955,000

 

$

36.01

 

1,258,000

 

$

19.15

 

Exercised

 

(569,073

)

$

20.02

 

(1,082,280

)

$

23.59

 

(105,573

)

$

15.06

 

Forfeited and cancelled

 

(372,040

)

$

25.71

 

(589,680

)

$

23.07

 

(560,155

)

$

33.99

 

Total options outstanding, end of period

 

7,908,300

 

$

27.21

 

8,078,413

 

$

26.30

 

7,795,373

 

$

23.24

 

Performance-based options outstanding, end of period (1)

 

632,100

 

$

25.28

 

658,700

 

$

25.30

 

697,100

 

$

25.38

 

Exercisable at end of period

 

3,746,166

 

$

25.98

 

2,854,272

 

$

25.02

 

2,722,709

 

$

25.77

 

 

 

(1)         These stock options are included in the caption “Total options outstanding, end of period.”  See discussion of the 2005 LTIP below.

(2)         Granted options for the year ended December 31, 2011 was corrected in the fourth quarter of 2012 to exclude 700,000 options which had not been validly granted in 2011.

Schedule of restricted stock unit activity

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

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

 

144,226

 

$

29.22

 

107,249

 

$

27.33

 

130,040

 

$

27.78

 

Granted

 

33,333

 

$

34.22

 

69,950

 

$

32.00

 

 

$

 

Vested

 

(16,210

)

$

32.61

 

(11,225

)

$

31.84

 

(13,975

)

$

31.84

 

Forfeited and cancelled

 

(9,666

)

$

25.84

 

(21,748

)

$

27.36

 

(8,816

)

$

26.70

 

Total restricted stock units outstanding, end of period

 

151,683

 

$

30.18

 

144,226

 

$

29.22

 

107,249

 

$

27.33

 

Restricted Performance Units outstanding, end of period (1)

 

64,610

 

$

26.72

 

74,276

 

$

26.61

 

93,274

 

$

26.66

 

 

 

(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

 

$

16,293

 

$

16,159

 

EchoStar awards held by EchoStar employees

 

2,947

 

2,923

 

Total

 

$

19,240

 

$

19,082

 

 

 

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

 

 

 

 

For the Years Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

Research and development expenses

 

$

2,755

 

$

2,411

 

$

3,579

 

Selling, general and administrative expenses

 

11,830

 

13,653

 

9,967

 

Total non-cash, stock-based compensation

 

$

14,585

 

$

16,064

 

$

13,546

 

Schedule of assumptions of Black-Scholes option valuation model

 

 

 

 

For the Years Ended December 31,

 

Stock Options 

 

2012

 

2011

 

2010

 

Risk-free interest rate

 

0.82% - 1.33%

 

1.08%-2.57%

 

1.64% - 2.97%

 

Volatility factor

 

40.36% - 41.12%

 

34.68% - 38.92%

 

31.00% - 32.73%

 

Expected term of options in years

 

5.9 - 6.0

 

5.1 - 6.0

 

6.1 - 6.2

 

Weighted-average grant-date fair value

 

$10.60 - $13.70

 

$8.07 - $14.42

 

$6.44 - $9.11