Dish Network 2010 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2010 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-38
We are responsible for fulfilling all stock awards related to DISH Network common stock and EchoStar is
responsible for fulfilling all stock awards related to EchoStar common stock, regardless of whether such
stock awards are held by our or EchoStar’s employees. Notwithstanding the foregoing, our stock-based
compensation expense, resulting from stock awards outstanding at the Spin-off date, is based on the stock
awards held by our employees regardless of whether such stock awards were issued by DISH Network or
EchoStar. Accordingly, stock-based compensation that we expense with respect to EchoStar stock awards
is included in “Additional paid-in capital” on our Consolidated Balance Sheets.
Exercise prices for stock options outstanding and exercisable as of December 31, 2010 are as follows:
Number
Outstanding
as of
December 31,
2010
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Number
Exercisable
as of
December 31,
2010
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
-$ - 10.00$ 6,278,320 7.24 9.01$ 662,635 7.35 8.35$
10.00$ - 15.00$ 1,031,414 7.73 13.99$ 107,102 7.14 13.89$
15.00$ - 20.00$ 2,532,838 9.17 18.15$ 46,999 7.24 17.80$
20.00$ - 25.00$ 8,340,204 4.59 22.33$ 4,251,704 4.14 22.52$
25.00$ - 30.00$ 2,896,569 5.57 26.40$ 2,031,971 5.04 26.21$
30.00$ - 35.00$ 780,655 5.52 33.68$ 466,453 4.96 33.43$
35.00$ - 40.00$ 58,500 6.67 36.79$ 23,400 6.63 36.72$
-$ - 40.00$ 21,918,500 6.19 18.62$ 7,590,264 4.78 22.83$
Options Outstanding Options Exercisable
Stock Award Activity
Our stock option activity was as follows:
Options
Wei
g
hted-
Average
Exercise
Price Options
Wei
g
hted-
Average
Exercise
Price Options
Wei
g
hted-
Average
Exercise
Price
Total options outstanding, beginning of period (1)........................ 21,861,691 21.71$ 21,835,687 22.50$ 20,938,403 22.61$
Granted .......................................................................................... 2,450,500 18.34$ 3,077,000 15.69$ 7,998,500 13.67$
Exercised ....................................................................................... (448,729) 9.23$ (356,793) 8.95$ (976,187) 19.51$
Forfeited and cancelled.................................................................. (1,944,962) 22.26$ (2,694,203) 22.93$ (6,125,029) 11.70$
Total options outstanding, end of period........................................ 21,918,500 18.62$ 21,861,691 21.71$ 21,835,687 22.50$
Performance based options outstanding, end of period (2)............ 10,978,750 15.98$ 9,362,500 17.23$ 10,253,250 17.19$
Exercisable at end of period........................................................... 7,590,264 22.83$ 8,062,091 27.74$ 6,606,244 29.16$
2010 2009 2008
For the Years Ended December 31,
(1) The beginning of period weighted-average exercise price of $21.71 does not reflect the Stock Option
Adjustment, which occurred subsequent to December 31, 2009.
(2) These stock options, which are included in the caption “Total options outstanding, end of period,”
were issued pursuant to performance-based stock incentive plans. Vesting of these stock options is
contingent upon meeting certain company goals which are not yet probable of being achieved. See
discussion of the 2005 LTIP, 2008 LTIP and other employee performance awards below.