Dish Network 2014 Annual Report Download - page 149

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-43
Our restricted stock unit activity was as follows:
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Restricted
Stock
Units
Wei
g
hted-
Average
Grant Date
Fair Value
Total restricted stock units outstanding, beginning of period............. 1,943,497 29.09$ 1,185,080 22.99$ 1,284,708 23.25$
Granted............................................................................................... 316,500 63.57$ 990,000 36.53$ - -$
Vested................................................................................................ (278,000) 45.04$ (135,250) 29.19$ (24,795) 22.94$
Forfeited and cancelled...................................................................... (183,666) 32.77$ (96,333) 30.46$ (74,833) 27.33$
Total restricted stock units outstanding, end of period....................... 1,798,331 32.31$ 1,943,497 29.09$ 1,185,080 22.99$
Restricted Performance Units outstanding, end of period (1)............ 1,798,331 32.31$ 1,943,497 29.09$ 1,185,080 22.99$
2014 2013 2012
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, 2013 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 provided stock options and restricted stock units, either alone or in combination, which vested 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 was subject to the foregoing vesting schedule and a performance condition that a
company-specific subscriber goal be achieved by March 31, 2015. It was determined that the goal can no longer be
achieved under the terms of the 2005 LTIP.
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.
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. During the second quarter 2014, we determined that an additional 10% 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, 2014, as indicated in the table below titled “Non Cash, Stock Based Compensation
Expense Recognized.” As of December 31, 2014, approximately 20% of the 2013 LTIP awards had vested.