Dish Network 2011 Annual Report Download - page 134

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-40
14. Employee Benefit Plans
Employee Stock Purchase Plan
Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which we are
authorized to issue 1.8 million shares of Class A common stock. At December 31, 2011, we had 0.4 million shares of
Class A common stock which remain available for issuance under this plan. 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. During the years ended December 31, 2011,
2010 and 2009, employee purchases of Class A common stock through the ESPP totaled approximately 0.1 million, 0.1
million and 0.2 million shares, 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 $1,500 per
employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund
matching and discretionary contributions. Our Board of Directors may also authorize an annual discretionary
contribution to the plan, 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.
The following table summarizes the expense associated with our matching contributions and discretionary contributions:
Expense Recognized Related to the 401(k) Plan 2011 2010 2009
Matching contributions, net of forfeitures....................... $ 2,617 $ 1,598 $ 6,116
Discretionary stock contributions, net of forfeitures....... $ 22,331 $ 24,954 $ 29,004
(In thousands)
For the Years Ended December 31,
15. Stock-Based Compensation
Stock Incentive Plans
We maintain stock incentive plans to attract and retain officers, directors and key employees. Stock awards under these
plans include both performance and non-performance based stock incentives. As of December 31, 2011, we had
outstanding under these plans stock options to acquire 21.3 million shares of our Class A common stock and 1.3 million
restricted stock units. Stock options granted prior to and on December 31, 2011 were granted with exercise prices equal
to or greater than the market value of our Class A common stock at the date of grant and with a maximum term of
approximately ten years. While historically we have issued stock awards subject to vesting, typically at the rate of 20%
per year, some stock awards have been granted with immediate vesting and other stock awards vest only upon the
achievement of certain company-wide objectives. As of December 31, 2011, we had 73.0 million shares of our Class A
common stock available for future grant under our stock incentive plans.