Dish Network 2004 Annual Report Download - page 115

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
For the Years Ended December 31,
2004 2003 2002
(In thousands)
Subscriber-related............................................................ 51$ 34$ 729$
Satellite and transmission................................................ 69 359 (7)
General and administrative.............................................. 1,060 3,151 10,557
Total non-cash, stock-based compensation.................. 1,180$ 3,544$ 11,279$
Options to purchase an additional 7.0 million shares are outstanding as of December 31, 2004 and were granted
with exercise prices equal to the fair market value of the underlying shares on the date they were issued during
1999, 2000 and 2001 pursuant to a long-term incentive plan under our 1995 Stock Incentive Plan. The weighted-
average exercise price of these options is $8.90. Vesting of these options is contingent upon meeting certain longer-
term goals which have not yet been achieved. Consequently, no compensation was recorded during the years ended
December 31, 2004, 2003 and 2002 related to these long-term options. We will record the related compensation at
the achievement of the performance goals, if ever. Such compensation, if recorded, would likely result in material
non-cash, stock-based compensation expense in our consolidated statements of operations and comprehensive
income (loss).
A summary of our stock option activity for the years ended December 31, 2004, 2003 and 2002 is as follows:
2004 2003 2002
Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price
Options outstanding, beginning of year .......... 17,735,818 16.59$ 20,874,925 13.97$ 22,793,593 13.18$
Granted ........................................................... 4,223,000 31.64 1,354,500 29.93 532,088 20.76
Exercised ........................................................ (2,154,498) 6.64 (3,010,713) 5.75 (1,392,218) 5.30
Forfeited ......................................................... (2,125,104) 19.70 (1,482,894) 15.67 (1,058,538) 12.20
Options outstanding, end of year .................... 17,679,216 21.03 17,735,818 16.59 20,874,925 13.97
Exercisable at end of year .............................. 5,607,416 25.90 5,525,437 19.45 6,325,708 13.62
Exercise prices for options outstanding as of December 31, 2004 are as follows:
Options Outstanding Options Exercisable
Number
Outstanding
as of
December 31,
2004 *
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Number
Exercisable
As of
December 31,
2004
Weighted-
Average
Exercise
Price
$2.12500 - $3.00785 538,251 1.96 2.34$ 538,251 2.34$
$5.48625 - $6.00000 7,297,371 4.02 6.00 1,393,371 6.00
$10.20315 - $19.18000 1,665,594 4.57 13.92 750,594 11.71
$22.70325 - $28.88000 1,384,300 7.26 27.62 349,300 26.63
$30.75000 - $39.50000 5,374,700 8.12 32.82 1,526,300 34.88
$48.75000 - $52.75000 278,000 4.89 49.64 220,000 49.19
$60.12500 - $79.00000 1,141,000 5.31 65.77 829,600 64.44
$2.12500 - $79.00000 17,679,216 5.61 21.03 5,607,416 25.90
* These amounts include approximately 7.0 million shares outstanding pursuant to the Long-Term Incentive Plan.
F–35