Nutrisystem 2009 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2009 Nutrisystem 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 80

  • 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

The following table summarizes the options granted, exercised and cancelled in 2007, 2008 and 2009:
Number of
Shares
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Outstanding, January 1, 2007 ............................. 1,365,328 $ 3.97
Exercised ............................................ (412,076) 4.69
Forfeited ............................................. (29,168) 21.23
Outstanding, December 31, 2007 .......................... 924,084 3.10
Exercised ............................................ (659,518) 1.55
Forfeited ............................................. (11,500) 23.38
Outstanding, December 31, 2008 .......................... 253,066 6.24
Exercised ............................................ (119,806) 4.70
Forfeited ............................................. (5,500) 23.79
Outstanding, December 31, 2009 .......................... 127,760 $ 6.92 4.06 $3,103
Exercisable at December 31, 2009 ......................... 127,760 $ 6.92 4.06 $3,103
In 2009, the Company did not record any pre-tax compensation charges for stock option awards as all
outstanding awards were fully vested. In 2008 and 2007, the Company recorded pre-tax compensation charges of
$402 and $1,764, respectively. There were no option grants in 2009, 2008 or 2007. The total intrinsic value of
stock options exercised in 2009, 2008 and 2007 was $1,352, $10,072 and $21,822, respectively.
In 2009 and 2008, the Company authorized the issuance of 30,618 and 31,794 shares of common stock as
compensation to the Board of Directors resulting in compensation expense of $455 and $455, respectively. In
addition, in 2009, 2008 and 2007, the Company issued a total of 8,421, 17,470 and 4,910 shares of common
stock, respectively, to non-employees for services. The value of the shares issued was $125, $250 and $250 in
2009, 2008 and 2007, respectively. The stock-based compensation costs were recorded in marketing and general
and administrative expenses in 2009, 2008 and 2007 in the accompanying consolidated statements of operations.
The Company has issued restricted stock to employees generally with terms ranging from three to five years. The
fair value is equal to the market price of the Company’s common stock on the date of grant. Expense for
restricted stock is amortized ratably over the vesting period. The following table summarizes the restricted stock
activity:
Number of
Shares
Weighted-
Average
Grant-Date
Fair Value
Nonvested, January 1, 2007 ....................................... 39,650 $45.67
Granted ...................................................... 424,119 44.96
Vested ....................................................... (15,860) 43.65
Forfeited ..................................................... (4,721) 60.73
Nonvested, December 31, 2007 .................................... 443,188 44.91
Granted ...................................................... 1,131,105 17.36
Vested ....................................................... (94,865) 44.25
Forfeited ..................................................... (79,081) 36.22
Nonvested, December 31, 2008 .................................... 1,400,347 23.19
Granted ...................................................... 515,653 14.96
Vested ....................................................... (334,350) 23.32
Forfeited ..................................................... (264,627) 22.15
Nonvested, December 31, 2009 .................................... 1,317,023 $20.12
60