Nutrisystem 2010 Annual Report Download - page 63

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The following table summarizes the Company’s stock option activity for 2008, 2009 and 2010:
Number of
Shares
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Outstanding, January 1, 2008 ............................. 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
Exercised ............................................. (54,927) $ 2.27
Forfeited .............................................. (20,000) $ 6.00
Outstanding, December 31, 2010 .......................... 52,833 $12.10 3.90 $568
Exercisable at December 31, 2010 ......................... 52,833 $12.10 3.90 $568
In 2010 and 2009, the Company did not record any compensation charges for stock option awards as all
outstanding awards were fully vested. In 2008, the Company recorded pre-tax compensation charges of $402.
There were no option grants in 2010, 2009 or 2008. The total intrinsic value of stock options exercised in 2010,
2009 and 2008 was $1,001, $1,352 and $10,072, respectively.
In 2010, 2009 and 2008, the Company authorized the issuance of 19,124, 30,618 and 31,794 shares of common
stock, respectively, as compensation to the Board of Directors resulting in compensation expense of $455 in each
year. In addition, in 2010, 2009 and 2008, the Company issued a total of 11,576, 8,421 and 17,470 shares of
common stock, respectively, to non-employees for services. The fair value of the shares issued was $250, $125
and $250 in 2010, 2009 and 2008, respectively. The stock-based compensation costs were recorded in marketing
and general and administrative expenses in 2010, 2009 and 2008 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 for 2008, 2009 and 2010:
Number of
Shares
Weighted-
Average
Grant-Date
Fair Value
Nonvested, January 1, 2008 ....................................... 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
Granted ...................................................... 569,705 $18.13
Vested ....................................................... (499,287) $19.59
Forfeited ..................................................... (76,623) $19.00
Nonvested, December 31, 2010 .................................... 1,310,818 $19.52
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