Dish Network 2013 Annual Report Download - page 156

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-46
If all of the stock awards under the 2005 LTIP were vested and the goal had been met or if we had determined that
achievement of the goal was probable during the year ended December 31, 2013, we would have recorded total non-
cash, stock-based compensation expense for our employees as indicated in the table below. If the goal is met and
there are unvested stock awards at that time, the vested amounts would be expensed immediately on our
Consolidated Statements of Operations and Comprehensive Income (Loss), with the unvested portion recognized
ratably over the remaining vesting period.
Total
Vested
Portion (1)
DISH Network awards held by DISH Network employees............ 36,840$ 35,698$
EchoStar awards held by DISH Network employees..................... 6,356 6,279
Total............................................................................................... 43,196$ 41,977$
2005 L TIP
(In thousands)
(1) Represents the amount of this award that has met the foregoing vesting schedule and would therefore vest upon
achievement of the performance condition.
2008 LTIP. During 2008, we adopted a long-term, performance-based stock incentive plan (the “2008 LTIP”). The
2008 LTIP provided stock options and restricted stock units, either alone or in combination, which vested based on
company-specific subscriber and financial goals. As of June 30, 2013, 100% of the eligible 2008 LTIP awards had
vested.
2013 LTIP. During 2013, we adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The
2013 LTIP provides stock options and restricted stock units in combination, which vest based on company-specific
subscriber and financial goals. Exercise of the stock awards is contingent on achieving these goals by September
30, 2022. Regardless of when achieved, no vesting will occur or payment will be made under the 2013 LTIP for
any performance goals prior to March 31, 2014.
Although no awards vest until the Company attains the performance goals, compensation related to the 2013 LTIP
will be recorded based on management’s assessment of the probability of meeting the remaining goals. If the
remaining goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based
compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the
estimated period to achieve the goal.
During the third quarter 2013, we determined that 20% of the 2013 LTIP performance goals were probable of
achievement. As a result, we recorded non-cash, stock-based compensation expense for the year ended December
31, 2013, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.”
Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, we
have other stock awards that vest based on certain other company-specific subscriber, operational and/or financial
goals. Exercise of these stock awards is contingent on achieving certain performance goals.
Additional compensation related to these awards will be recorded based on management’s assessment of the
probability of meeting the remaining performance goals. If the remaining goals are probable of being achieved, we
will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements
of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal. See the table below
titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.”
Although no awards vest until the performance goals are attained, we determined that certain goals were probable of
achievement and, as a result, recorded non-cash, stock-based compensation expense for the years ended December
31, 2013, 2012 and 2011, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense
Recognized.”