Dish Network 2011 Annual Report Download - page 138

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-44
If all of the stock awards under the 2005 LTIP were vested and the goal had been met or if we had determined that
achievement of the goal was probable during the year ended December 31, 2011, we would have recorded total non-
cash, stock-based compensation expense for our employees as indicated in the table below. If the goal is met and there
are unvested stock awards at that time, the vested amounts would be expensed immediately on our Consolidated
Statements of Operations and Comprehensive Income (Loss), with the unvested portion recognized ratably over the
remaining vesting period.
Total
Vested
Portion (1)
DISH Network awards held by DISH Network employees............ 35,239$ 25,920$
EchoStar awards held by DISH Network employees...................... 6,913 5,078
Total............................................................................................... 42,152$ 30,998$
2005 LTIP
(In thousands)
(1) Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon
achievement of the performance condition.
2008 LTIP. During 2008, we adopted a long-term, performance-based stock incentive plan (the “2008 LTIP”). The 2008
LTIP provides stock options and restricted stock units, either alone or in combination, which vest based on company-
specific subscriber and financial goals. Exercise of the stock awards is contingent on achieving these goals by
December 31, 2015.
Although no awards vest until the Company attains the performance goals, compensation related to the 2008 LTIP will
be recorded based on management’s assessment of the probability of meeting the remaining goals. If the remaining
goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation
expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to
achieve the goal. See table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.”
During the first quarter 2011, we determined that all of the 2008 LTIP performance goals are probable of achievement.
As of December 31, 2011, approximately 45% of the 2008 LTIP awards had vested. We are recognizing the associated
non-cash stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income
(Loss) over the estimated period for vesting of the approximately 55% of the awards remaining, as indicated in the table
below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”
Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, we have
other stock awards that vest based on certain other company-specific subscriber and financial goals. Exercise of these
stock awards is contingent on achieving certain performance goals.
Additional compensation related to these awards will be recorded based on management’s assessment of the probability
of meeting the remaining performance goals. If the remaining goals are probable of being achieved, we will begin
recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations
and Comprehensive Income (Loss) over the estimated period to achieve the goal. See table below titled “Estimated
Remaining Non-Cash, Stock-Based Compensation Expense.”
Although no awards vest until the performance goals are attained, we determined that certain goals were probable of
achievement and, as a result, recorded non-cash, stock-based compensation expense for the years ended December 31,
2011 and 2010, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”