Nautilus 2008 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2008 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 103

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103

Table of Contents
A summary of stock options outstanding at December 31, 2008 is presented below:
Restricted Stock Awards
In 2007, the Company granted 297,000 shares of restricted stock to members of its management team as a means to retain key employees while
the Company moved forward with its restructuring activities. The restricted stock awards generally vest over two years from the date of grant.
Restricted stock award recipients do not have voting or dividend rights until the shares vest.
A summary of the Company’s restricted stock award activity is as follows:
Restricted stock compensation expense for the years ended December 31, 2008 and 2007 was $0.2 million and $0.3 million, respectively. At
December 31, 2008, unamortized expense related to restricted stock awards totaled approximately $0.5 million, which is expected to be
recognized over a weighted average period of 0.6 years. The restricted stock had an intrinsic value of $0.3 million at December 31, 2008. All of
the shares underlying restricted stock awards outstanding at December 31, 2008 were unvested.
Performance Stock Units
In December 2005, the Company granted 125,000 performance unit awards to key members of its executive team. The performance unit awards
vest if the Company meets earnings targets set by the Compensation Committee of the Board of Directors. The fair value of the performance
units is based on the closing market price of the Company’s common stock on the date preceding the grant and is amortized over the estimated
requisite service period when it becomes probable that the performance targets are expected to be met. The amount of share-based compensation
expense is based on the number of performance unit awards ultimately expected to vest.
62
(In thousands, except life and exercise price)
Options Outstanding
Options Exercisable
Range of Exercise
Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
-
Average
Exercise
Price
Number of
Options
Exercisable
Weighted
-
Average
Exercise
Price
$2.37
–
$
3.40
113
6.86
$
2.51
—
$
—
$3.41
–
$
4.15
508
5.86
4.15
36
4.15
$4.41
–
$
9.53
338
6.22
5.52
22
7.30
$9.54
–
$
15.15
447
2.87
12.67
344
12.04
$15.16
–
$
27.72
605
5.03
19.15
424
20.15
$2.37
–
$
27.72
2,011
5.06
$
10.70
826
$
15.73
(In thousands, except fair value amounts)
Number
of
Shares
Weighted Average
Grant Date Fair
Value per Share
Outstanding at January 1, 2007
—
$
—
Awarded
297
9.22
Vested
(12
)
8.91
Forfeited
(19
)
9.23
Outstanding at December 31, 2007
266
9.23
Awarded
—
—
Vested
—
—
Forfeited
(122
)
9.23
Outstanding at December 31, 2008
144
$
9.23