Dish Network 2000 Annual Report Download - page 75

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–24
A summary of EchoStar’s incentive stock option activity for the years ended December 31, 1998, 1999 and
2000 is as follows:
1998 1999 2000
Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price
Options outstanding, beginning of
year.......................................... 12,196,536 $ 1.88 11,576,120 $ 2.04 27,843,640 $ 6.26
Granted ........................................ 5,585,080 2.35 20,847,712 7.71 2,942,000 51.56
Exercised...................................... (1,505,456) 1.57 (3,808,114) 1.84 (3,591,209) 3.05
Forfeited....................................... (4,700,040) 2.14 (772,078) 4.92 (2,076,538) 20.78
Options outstanding, end of year .... 11,576,120 $ 2.04 27,843,640 $ 6.26 25,117,893 $ 10.81
Exercisable at end of year .............. 3,858,424 $ 1.73 2,755,432 $ 1.86 2,911,256 $ 5.49
Exercise prices for options outstanding as of December 31, 2000 are as follows:
Options Outstanding Options Exercisable
Range of
Exercise Prices
Number
Outstanding
as of
December 31,
2000
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise Price
Number
Exercisable
as of
December 31,
2000
Weighted-
Average
Exercise Price
$ 1.167 - $ 2.750 4,047,528 5.28 $ 2.20 1,745,520 $ 2.08
3.000 - 3.434 328,788 6.17 3.01 69,228 3.05
5.486 - 6.600 15,350,932* 8.09 6.00 685,908 6.02
10.203 - 19.180 2,331,645 7.61 12.37 312,200 13.16
22.703 - 22.750 293,000 9.20 22.72 34,400 22.70
33.109 - 36.420 1,320,000 7.61 34.36 – –
48.750 - 52.750 350,000 9.06 49.09 64,000 48.75
60.125 - 79.000 1,096,000 9.43 65.22 – –
$ 1.1667 - $ 79.000 25,117,893 7.63 $ 10.81 2,911,256 $ 5.49
* This amount includes 10.4 million shares outstanding pursuant to the Long Term Incentive Plan.
Accounting for Stock-Based Compensation
EchoStar has elected to follow Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued
to Employees,” (“APB 25”) and related interpretations in accounting for its stock-based compensation plans. Under
APB 25, EchoStar generally does not recognize compensation expense on the issuance of stock under its Stock
Incentive Plan because the option terms are typically fixed and typically the exercise price equals the market price of
the underlying stock on the date of grant. In October 1995, the Financial Accounting Standards Board issued
Financial Accounting Standard No. 123, “Accounting and Disclosure of Stock-Based Compensation,” (“FAS No.
123”) which established an alternative method of expense recognition for stock-based compensation awards to
employees based on fair values. EchoStar elected to not adopt FAS No. 123 for expense recognition purposes.