Nautilus 2012 Annual Report Download - page 54

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Table of Contents
Following is a summary of performance stock unit activity for the years ended December 31, 2012 , 2011 and 2010 (in thousands, except fair
value per share):
(13) INCOME (LOSS) PER SHARE
Basic income (loss) per share was computed using the weighted average number of common shares outstanding. For the computation of diluted
income (loss) per share, the number of basic weighted average shares outstanding was increased by dilutive potential common shares related to
stock-based compensation, as determined by the treasury stock method. The weighted average numbers of shares outstanding used to compute
income (loss) per share were as follows:
The weighted average numbers of shares outstanding listed in the table below were anti-dilutive and excluded from the computation of diluted
income (loss) per share, primarily because the average market price did not exceed the exercise price. These shares may be dilutive potential
common shares in the future.
(14) SEGMENT INFORMATION
The Company has two reportable segments - Direct and Retail. Contribution is the measure of profit or loss used by the Company's chief
operating decision maker and is defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include
selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment
operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories and
intangible assets. Unallocated assets primarily include shared information technology infrastructure, distribution centers, corporate headquarters,
prepaids, deferred taxes and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any
year.
48
Performance
Stock Units
Weighted Average
Grant Date Fair
Value per Share
Performance stock units outstanding, January 1, 2010
—
$
—
Granted
146
2.32
Performance stock units outstanding, December 31, 2010
146
2.32
Canceled
(73
)
2.32
Performance stock units outstanding, December 31, 2011
73
2.32
Granted
82
2.79
Canceled
(23
)
2.47
Performance stock units outstanding, December 31, 2012
132
2.59
As of December 31,
(Number of shares in thousands) 2012
2011
2010
Basic weighted average shares outstanding
30,851
30,746
30,744
Dilutive potential common shares
123
30
—
(1)
Diluted weighted average shares outstanding
30,974
30,776
30,744
(1)
Dilutive potential shares omitted due to net loss
26
As of December 31,
(Number of shares in thousands) 2012
2011
2010
Stock options
1,072
1,114
1,253
Performance stock units
26
89
—
Restricted stock units
—
217
—