Earnings per Share

6 Months Ended

Jun. 30, 2018

EARNINGS PER SHARE

We present basic earnings or losses per share (“EPS”) and diluted EPS for our Class A and Class B common stock. Basic EPS for our Class A and Class B common stock excludes potential dilution and is computed by dividing Net income attributable to EchoStar Corporation common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if shares of common stock were issued pursuant to our stock-based compensation awards. The potential dilution from common 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 options to purchase shares of our Class A common stock, whose effect would be anti-dilutive, of 2.2 million and 0.9 million shares for the three months ended June 30, 2018 and 2017, respectively, and 1.1 million and 0.9 million shares for the six months ended June 30, 2018 and 2017, 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 ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Amounts attributable to EchoStar Corporation common stock:
Net income from continuing operations	$	77,222	$	6,409	$	55,671	$	38,756
Net income from discontinued operations	—		531		—		7,108
Net income attributable to EchoStar Corporation common stock	$	77,222	$	6,940	$	55,671	$	45,864

Weighted-average common shares outstanding:
Basic	96,091		95,537		95,990		95,143
Dilutive impact of stock awards outstanding	855		1,248		1,048		1,308
Diluted	96,946		96,785		97,038		96,451

Earnings per share:
Basic:
Continuing operations	$	0.80	$	0.07	$	0.58	$	0.41
Discontinued operations	—		—		—		0.07
Total basic earnings per share	$	0.80	$	0.07	$	0.58	$	0.48

Diluted:
Continuing operations	$	0.80	$	0.07	$	0.57	$	0.40
Discontinued operations	—		—		—		0.08
Total diluted earnings per share	$	0.80	$	0.07	$	0.57	$	0.48

Prior to the Share Exchange, the EchoStar Tracking Stock was a participating security that shared in our consolidated earnings and therefore, we applied the two-class method to calculate EPS for periods prior to March 1, 2017. Under the two-class method, we allocated net income or loss attributable to EchoStar between common stock and the EchoStar Tracking Stock considering both dividends declared on each class of stock and the participation rights of each class of stock in undistributed earnings. Based on the 51.89% economic interest in the Hughes Retail Group represented by the EchoStar Tracking Stock, we allocated undistributed earnings to the EchoStar Tracking Stock based on 51.89% of the attributed net income or loss of the Hughes Retail Group. Moreover, because the reported amount of Net income (loss) attributable to EchoStar Corporation in our Condensed Consolidated Statements of Operations excluded DISH Network’s 28.11% economic interest (represented by the HSS Tracking Stock) in the net loss of the Hughes Retail Group (reported as a noncontrolling interest), the amount of consolidated net income or loss allocated to holders of Class A and Class B common stock effectively excluded an aggregate 80.0% of the attributed net loss of the Hughes Retail Group.