Dish Network 2014 Annual Report Download - page 146

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-40
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, 2014, 2013 and 2012, employee purchases of Class A common stock through the ESPP totaled
approximately 0.1 million, 0.1 million and 0.1 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 $2,500
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 401(k) 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 2014 2013 2012
Matching contributions, net of forfeitures
from continuing operations........................................... $ 6,222 $ 5,994 $ 2,750
Matching contributions, net of forfeitures
from discontinued operations........................................ - 176 573
Total matching contributions.......................................... $ 6,222 $ 6,170 $ 3,323
Discretionary stock contributions, net of forfeitures....... $ 25,972 $ 26,096 $ 23,772
(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, 2014, we
had outstanding under these plans stock options to acquire 11.7 million shares of our Class A common stock and 1.8
million restricted stock units. Stock options granted on or prior to December 31, 2014 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-specific subscriber, operational and/or financial goals.
As of December 31, 2014, we had 69.1 million shares of our Class A common stock available for future grant under
our stock incentive plans.
During December 2011, we paid a dividend in cash of $2.00 per share on our outstanding Class A and Class B
common stock to shareholders of record on November 17, 2011. In light of such dividend, during January 2012, the
exercise price of 21.2 million stock options, affecting approximately 600 employees, was reduced by $2.00 per
share (the “2011 Stock Option Adjustment”). Except as noted below, all information discussed below reflects the
2011 Stock Option Adjustment.
On December 28, 2012, we paid a dividend in cash of $1.00 per share on our outstanding Class A and Class B
common stock to shareholders of record on December 14, 2012. In light of such dividend, during January 2013, the
exercise price of 16.3 million stock options, affecting approximately 550 employees, was reduced by $0.77 per