Dish Network 2007 Annual Report Download - page 123

Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
Common Stock Repurchase Programs
During 2003, our Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of our Class A common stock. As of
July 15, 2004, we had completed this share repurchase plan, having purchased a total of 31.8 million shares of our Class A common stock for a
total of $1.0 billion.
During August 2004, our Board of Directors authorized the repurchase of an aggregate of up to an additional $1.0 billion of our Class A
common stock pursuant to a new repurchase plan. During 2006 and 2005, we purchased approximately 0.4 million and 13.2 million shares of
our Class A common stock for $11.7 million and $362.5 million, respectively. Our share repurchase program does not require us to acquire any
specific number or amount of securities and may be terminated at any time.
Cash Dividend
During 2004, we paid a one-time cash dividend of $1.00 per share, or $455.7 million, on outstanding shares of our Class A and Class B
common stock.
8. Employee Benefit Plans
Employee Stock Purchase Plan
During 1997, the Board of Directors and stockholders approved an employee stock purchase plan (the “ESPP”), effective beginning October 1,
1997. During 2006, this plan was amended for the purpose of registering an additional 1,000,000 shares of Class A common stock and was
approved by the stockholders at our Annual Meeting held on May 11, 2006 by the requisite vote of stockholders. Under the ESPP, we are now
authorized to issue a total of 1,800,000 shares of Class A common stock. Substantially all full-time employees who have been employed by us
for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under
the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase our capital stock under all of our
stock purchase plans at a rate which would exceed $25,000 in fair value of capital stock in any one year. The purchase price of the stock is 85%
of the closing price of the Class A common stock on the last business day of each calendar quarter in which such shares of Class A common
stock are deemed sold to an employee under the ESPP. The ESPP shall terminate upon the first to occur of (i) October 1, 2007 or (ii) the date
on which the ESPP is terminated by the Board of Directors. During 2006, 2005 and 2004 employees purchased approximately 89,000, 97,000,
and 78,000 shares of Class A common stock through the ESPP, respectively.
401(k) Employee Savings Plan
We sponsor a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan
may be matched 50% by us, subject to a maximum annual contribution of $1,000 per employee. Forfeitures of unvested participant balances
which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. Expense recognized related to matching
401(k) contributions, net of forfeitures, totaled $2.1 million and $0.2 million during the years ended December 31, 2006 and 2005, respectively.
We did not recognize any expense related to matching 401(k) contributions during the year ended December 31, 2004, as 401(k) Plan
forfeitures were sufficient to fund all of the Company matching contributions.
We also may make an annual discretionary contribution to the plan with approval by our Board of Directors, subject to the maximum
deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in our stock.
Discretionary stock contributions, net of forfeitures, were $17.8 million, $15.4 million and $12.8 million relating to the 401(k) Plan years
ended December 31, 2006, 2005 and 2004, respectively.
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