Nautilus 2007 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2007 Nautilus 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 222

  • 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
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222

Table of Contents
The weighted average grant-date fair value of stock options granted was $4.25 and $5.54 for stock options granted in fiscal 2007 and 2006,
respectively. The total fair value of options vested was $0.9 million and $2.2 million for fiscal 2007 and 2006, respectively. The total
unrecognized compensation cost related to nonvested options was $4.6 million at December 31, 2007. This cost is expected to be recognized
over a weighted-average period of 2.69 years.
The following table summarizes information about stock options outstanding at December 31, 2007:
Performance Units
The Company granted 45,000, 49,000, and 125,000 performance unit awards to members of its executive team during the years ended
December 31, 2007, 2006, and 2005, respectively. The performance unit awards vest if the Company meets earnings targets set by the
Compensation Committee of the Board of Directors. The fair value of the performance units is based on the closing market price of the
Company’s common stock on the date preceding the grant date and is amortized over the estimated requisite service period when it becomes
probable that the performance targets are expected to be met. The amount of share-based compensation expense is based on the number of
performance unit awards ultimately expected to vest, and therefore has been reduced for estimated forfeitures.
At December 31, 2007, there was approximately $0.8 million of total unrecognized share-
based compensation costs related to performance units.
At December 31, 2007, 2006, and 2005, the performance units had an intrinsic value of approximately $0.2 million, $0, and $0.1 million,
respectively. None of the performance units were vested at December 31, 2007, 2006, and 2005. The Company did not record any compensation
expense related to the performance unit awards in the years ended December 31, 2007, 2006, and 2005. A summary of the Company’s
performance unit activity for the year ended December 31, 2007 is as follows:
Restricted Stock
The Company granted 297,000 restricted shares to members of its management team during the year ended December 31, 2007. Most of the
restricted stock was granted as part of a retention program focused on key
54
(In thousands, except life and exercise price)
Options Outstanding
Options Exercisable
Range of Exercise
Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
-
Average
Exercise
Price
Number of
Shares
Exercisable
Weighted
-
Average
Exercise
Price
$5.09
–
$
6.26
484
9.30
$
6.14
—
$
—
$8.28
–
$
9.53
58
6.59
8.43
—
—
$10.39
725
1.44
10.39
547
10.39
$12.04
–
$
15.15
513
4.92
14.62
157
14.31
$15.25
–
$
16.10
543
5.98
15.97
102
15.66
$16.17
–
$
28.91
481
5.71
22.42
298
23.04
$5.09
–
$
28.91
2,804
5.15
$
13.54
1,104
$
14.85
(In thousands, except fair value amounts)
Performance
Units
Weighted Average
Grant Date Fair
Value
Outstanding at January 1, 2007
174
$
16.71
Awarded
45
16.12
Released
—
—
Forfeited
(171
)
16.84
Outstanding at December 31, 2007
48
$
15.68