Dish Network 2010 Annual Report Download - page 124

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-39
We realized tax benefits from stock awards exercised during the years ended December 31, 2010, 2009 and
2008 as follows:
2010 2009 2008
Tax benefit from stock awards exercised................. $ 1,665 $ 1,116 $ 2,905
(In thousands)
For the Years Ended December 31,
Based on the closing market price of our Class A common stock on December 31, 2010, the aggregate
intrinsic value of our stock options was as follows:
Options
Outstanding
Options
Exercisable
Aggregate intrinsic value........ 76,532$ 8,200$
As of December 31, 2010
(In thousands)
Our restricted stock unit activity was as follows:
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Total restricted stock units outstanding, beginning of period............. 1,246,284 25.93$ 1,975,940 27.44$ 2,240,284 28.53$
Granted .............................................................................................. 600,000 18.15$ 6,666 11.11$ 88,322 11.09$
Vested................................................................................................ (69,875) 31.36$ (113,197) 28.47$ (280,000) 30.77$
Forfeited and cancelled...................................................................... (212,077) 23.77$ (623,125) 30.09$ (72,666) 29.33$
Total restricted stock units outstanding, end of period....................... 1,564,332 23.00$ 1,246,284 25.93$ 1,975,940 27.44$
Restricted Performance Units outstanding, end of period (1)............ 1,494,457 22.61$ 1,096,034 25.18$ 1,155,940 24.96$
2010 2009 2008
For the Years Ended December 31,
(1) These Restricted Performance Units, which are included in the caption “Total restricted stock units
outstanding, end of period,” were issued pursuant to performance-based stock incentive plans. Vesting of
these Restricted Performance Units 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.
Long-Term Performance-Based Plans
2005 LTIP. During 2005, we adopted a long-term, performance-based stock incentive plan (the “2005
LTIP”). The 2005 LTIP provides stock options and restricted stock units, either alone or in combination,
which vest over seven years at the rate of 10% per year during the first four years, and at the rate of 20%
per year thereafter. Exercise of the stock awards is subject to a performance condition that a company-
specific subscriber goal is achieved by March 31, 2015.
Contingent compensation related to the 2005 LTIP will not be recorded in our financial statements unless
and until management concludes achievement of the performance condition is probable. Given the
competitive nature of our business, small variations in subscriber churn, gross new subscriber addition
rates and certain other factors can significantly impact subscriber growth. Consequently, while it was
determined that achievement of the goal was not probable as of December 31, 2010, that assessment could
change at any time.