Dish Network 2011 Annual Report Download - page 137

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-43
Based on the closing market price of our Class A common stock on December 31, 2011, the aggregate intrinsic value of our
stock options was as follows:
Options
Outstanding
Options
Exercisable
Aggregate intrinsic value........ 178,503$ 60,623$
As of December 31, 2011
(In thousands)
Our restricted stock unit activity was as follows:
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Total restricted stock units outstanding, beginning of period............. 1,564,332 23.00$ 1,246,284 25.93$ 1,975,940 27.44$
Granted............................................................................................... 300,000 30.67$ 600,000 18.15$ 6,666 11.11$
Vested................................................................................................. (70,830) 27.15$ (69,875) 31.36$ (113,197) 28.47$
Forfeited and cancelled...................................................................... (508,794) 27.32$ (212,077) 23.77$ (623,125) 30.09$
Total restricted stock units outstanding, end of period....................... 1,284,708 23.25$ 1,564,332 23.00$ 1,246,284 25.93$
Restricted Performance Units outstanding, end of period (1)............. 1,284,708 23.25$ 1,494,457 22.61$ 1,096,034 25.18$
2011 2010 2009
For the Years Ended December 31,
(1) These Restricted Performance Units are included in the caption “Total restricted stock units outstanding, end of
period.” 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 the foregoing vesting schedule and 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 activation 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, 2011, that assessment could change in the future.