Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings per Share

Earnings per Share

Note 3. Earnings 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 EchoStar” 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 during the period.  The calculation of our diluted weighted-average common shares outstanding excluded (i) underlying options to purchase shares of our Class A common stock as their effect is anti-dilutive of 1.9 million and 4.5 million shares for the three months ended September 30, 2013 and 2012, respectively, and 4.0 thousand and 5.0 million shares for the nine months ended September 30, 2013 and 2012, respectively, and (ii) our Class A common stock that are contingently issuable based upon meeting a company-specific goal by March 31, 2015 pursuant to our performance based stock incentive plan, which was not probable of being achieved as of September 30, 2013 of 0.7 million and 0.7 million shares for the three and nine months ended September 30, 2013 and 2012, respectively.

The following table presents basic and diluted EPS amounts for all periods and the corresponding weighted-average shares outstanding used in the calculations.

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2013		2012		2013			2012
	(In thousands, except per share amounts)
Net income (loss) attributable to EchoStar	$	4,320	$	22,554	$	(1,981	)	$	184,824
Weighted-average common shares outstanding - Class A and B common stock:
Basic	89,868		87,279		89,081			87,031
Dilutive impact of stock awards outstanding	1,398		719		—			721
Diluted	91,266		87,998		89,081			87,752
Earnings per share - Class A and B common stock:
Basic	$	0.05	$	0.26	$	(0.02	)	$	2.12
Diluted	$	0.05	$	0.26	$	(0.02	)	$	2.11