Nautilus 2004 Annual Report Download - page 47

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Table of Contents
A summary of the Company’s stock option plans as of December 31, 2004, 2003 and 2002, and changes during the years ended on those
dates is presented below.
The following table summarizes information about stock options outstanding as of December 31, 2004:
3. OPERATING SEGMENTS
2004
2003
2002
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Outstanding at beginning of year
2,665,503
$
13.92
1,599,987
$
17.26
1,726,381
$
12.79
Granted
1,265,650
18.84
1,430,000
9.36
275,075
33.25
Forfeited or canceled
(640,280
)
18.23
(132,633
)
21.79
(39,242
)
22.70
Exercised
(542,310
)
12.11
(231,851
)
4.22
(362,227
)
7.53
Outstanding at end of year
2,748,563
$
15.54
2,665,503
$
13.92
1,599,987
$
17.26
Options exercisable at end of year
677,942
792,796
650,753
Options Outstanding
Options Exercisable
Range of
Exercise
Prices
Number
Outstanding
Average
Remaining
Contractual
Life (Years)
Weighted
-
Average
Exercise
Price
Shares
Exercisable
Weighted
-
Average
Exercise
Price
$ 6.98
-
$ 8.39
863,875
8.4
$
8.37
183,875
$
8.28
$10.39
-
$12.80
250,375
7.9
10.89
78,010
11.32
$13.37
-
$15.71
725,818
7.4
14.76
145,443
13.63
$16.06
-
$23.15
737,895
8.0
22.49
148,703
21.50
$24.28
-
$30.42
46,500
1.9
25.58
40,750
25.56
$32.80
-
$37.70
124,100
2.4
34.36
81,161
34.37
$ 6.98
-
$37.70
2,748,563
7.6
$
15.54
677,942
$
16.84
Segment information is prepared on the same basis that the Company’s management reviews financial information for decision making
purposes. The Company’
s Chief Executive Officer and Chief Financial Officer have joint responsibility as the Chief Operating Decision Maker
as defined by SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information.” The Company’s operating segments
include its direct, commercial/retail, and corporate segments. The direct segment includes all brands and related operations involved in
marketing to consumers through a variety of direct marketing channels. The Bowflex lines of strength and cardiovascular fitness equipment,
and the Champion Nutrition line of nutritional supplements are the principal brands in the Company’s direct segment.
The commercial/retail segment includes all brands and related operations that do not involve direct marketing to consumers. Products in
this segment include Nautilus, Schwinn, StairMaster, Trimline and Bowflex commercial and retail fitness equipment and accessories.
The corporate segment consists mainly of director costs, general legal and accounting fees, salaries of corporate personnel, as well as
other costs not specifically attributable to the other two business segments. In addition, treasury is a corporate function, so interest income from
investments is included in the corporate segment. Accounting policies used by the segments are the same as those disclosed in Note 1.
45