Nautilus 2008 Annual Report Download - page 68

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Table of Contents
The following table sets forth the computation of basic and diluted income (loss) per share as reported in the Company’s statements of
operations:
During the years ended December 31, 2008, 2007 and 2006, there were 2.2 million, 3.1 million and 2.4 million shares issuable upon exercise of
stock options, restricted stock and performance units that were not included in the calculation of diluted earnings per share because the effect
would have been anti-dilutive.
13. EMPLOYEE BENEFIT PLAN
The Company adopted a 401(k) plan, the Nautilus, Inc. 401(k) Savings Plan (“401(k) Plan”), in 1999 covering substantially all regular
employees over the age of 18. Each participant may contribute up to 75% of eligible compensation during any calendar year, subject to certain
limitations. Subject to the approval of the Company’s Board of Directors, the 401(k) Plan provides for Company matching contributions of
100% of the first 1% of eligible earnings contributed by the employee, and an additional 50% match for earnings contributed over 1% and up to
6%. Matching contributions vest at 25% after the first year of service, and are fully vested after the second year. For the years ended
December 31, 2008, 2007 and 2006, the Company’s contributions to the 401(k) Plan were $1.2 million, $0.8 million and $0.7 million,
respectively.
14. REPORTABLE SEGMENTS AND RELATED INFORMATION
In the second quarter of 2008, the Company began reorganizing its internal structure to establish teams with authority and responsibility for the
operations of the direct, commercial and retail business segments as well as the corporate functions. Each business segment is focusing on
operating effectiveness, capital management, market position and product innovation. As a result of the reorganization, the Company revised its
business segments to reflect how management, including the Company’s Chief Executive Office and chief decision maker, views the business.
At December 31, 2008, the Company’s reportable segments include the direct, retail and commercial business units and its corporate functions.
Reportable segment data has been reclassified for 2007 and 2006 to correspond with the current segment definitions.
64
For the Year Ended December 31,
(In thousands, except per share amounts)
2008
2007
2006
Numerator:
Net income (loss) from continuing operations
$
(92,999
)
$
(45,812
)
$
24,920
Net income (loss) from discontinued operations
2,411
(9,801
)
4,180
$
(90,588
)
$
(55,613
)
$
29,100
Denominator:
Basic shares outstanding
31,117
31,538
32,300
Dilutive effect of stock options and restricted stock
—
—
157
Diluted shares outstanding
31,117
31,538
32,457
Calculations:
Earnings (loss) per share from continuing operations:
Basic and diluted
$
(2.99
)
$
(1.45
)
$
0.77
Earnings (loss) per share from discontinued operations:
Basic and diluted
$
0.08
$
(0.31
)
$
0.13
Earnings (loss) per share:
Basic and diluted
$
(2.91
)
$
(1.76
)
$
0.90