Dish Network 2013 Annual Report Download - page 125

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-15
Deferred Cost of Sales
On May 22, 2013, we launched a promotion whereby qualifying new Pay-TV subscribers may choose either an
Apple® iPad® 2 or programming credits when they, among other things, commit to a two-year contract. The costs of
the iPad 2 are recorded as short-term or long-term deferred cost of sales expense within “Other current assets” and
“Other noncurrent assets, net,” respectively, on our Consolidated Balance Sheets and are amortized on a straight-line
basis over the related contract term to “Cost of sales – equipment, services and other” on our Consolidated Statements
of Operations and Comprehensive Income (Loss).
Equipment Lease Programs
Pay-TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to
receive our pay-TV service. Most of our new Pay-TV subscribers choose to lease equipment and thus we retain title to
such equipment. New Broadband subscribers lease the modem and other equipment necessary to receive broadband
services. Equipment leased to new and existing Pay-TV and Broadband subscribers is capitalized and depreciated over
their estimated useful lives.
3. Basic and Diluted Net Income (Loss) Per Share
We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is
computed by dividing “Net income (loss) attributable to DISH Network” by the weighted-average number of
common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock
awards were exercised. The potential dilution from stock awards was computed using the treasury stock method
based on the average market value of our Class A common stock. The following table presents EPS amounts for all
periods and the basic and diluted weighted-average shares outstanding used in the calculation.
2013 2012 2011
Income (loss) from continuing operations................................................................................................ 837,089$ 662,919$ 1,522,374$
Less: Net income (loss) attributable to noncontrolling interest........................................................... (17,746) (10,947) (329)
Income (loss) from continuing operations attributable to DISH Network................................................ 854,835 673,866 1,522,703
Income (loss) from discontinued operations, net of tax............................................................................ (47,343) (37,179) (6,796)
Net income (loss) attributable to DISH Network................................................................................. $ 807,492 $ 636,687 $ 1,515,907
Wei
g
hted-avera
g
e common shares outstandin
g
- Class A and B common stock:
Basic......................................................................................................................................................... 456,044 450,264 445,434
Dilutive impact of stock awards outstanding............................................................................................ 3,122 2,635 1,431
Diluted...................................................................................................................................................... 459,166 452,899 446,865
Earnin
g
s
p
er share - Class A and B common stock:
Basic net income (loss) per share from continuing operations attributable to DISH Network................. $ 1.87 $ 1.49 $ 3.41
Basic net income (loss) per share from discontinued operations..............................................................
(
0.10
)
(
0.08
)
(
0.01
)
Basic net income (loss)
p
er share attributable to DISH Network...................................................... $ 1.77 $ 1.41 $ 3.40
Diluted net income (loss) per share from continuing operations attributable to DISH Network.............. $ 1.86 $ 1.49 $ 3.41
Diluted net income (loss) per share from discontinued operations........................................................... (0.10) (0.08) (0.02)
Diluted net income (loss)
p
er share attributable to DISH Network................................................... $ 1.76 $ 1.41 $ 3.39
For the Years Ended December 31,
(In thousands, except per share amounts)