Nautilus 2008 Annual Report Download - page 67

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Table of Contents
A summary of the Company’s performance stock unit activity is as follows:
The fair values of the Company’s performance stock units are estimated on the date of grant based on the closing market price of the Company’s
common stock on the date preceding the grant date. None of the performance units were vested at December 31, 2008 and December 31, 2007.
Compensation expense was not recognized for the performance units during 2008 and 2007 as management concluded it is unlikely the
performance targets that trigger vesting will be met. At December 31, 2008, the weighted-average grant date fair value of the Company’s
outstanding performance stock unit awards was $15.60 per unit. At December 31, 2008 there was approximately $0.5 million of total
unrecognized compensation cost related to the performance stock units.
The Company receives income tax deductions as a result of the exercise of certain stock options and the vesting of restricted stock and
performance stock units. Under the provisions of SFAS No. 123(R), Share-Based Payment (as amended) , the tax benefit of stock-based
compensation expense in excess of book compensation expense is reflected as a financing cash flow and operating cash outflow included in
changes in operating assets and liabilities.
12. INCOME (LOSS) PER SHARE
Basic income (loss) per common share is calculated based of the weighted-average number of common shares outstanding during the period.
Diluted income (loss) is calculated based on the weighted-average number of common shares outstanding, after giving affect for the potential
dilution that could occur upon conversion or exercise of dilutive securities. Dilutive potential common shares resulting from the assumed
exercise of outstanding stock-based awards are determined using the treasury stock method.
63
(In thousands, except fair value amounts)
Performance
Units
Weighted Average
Grant Date Fair
Value
Outstanding at January 1, 2006
125
$
17.70
Granted
49
14.18
Forfeited or cancelled
—
—
Outstanding at December 31, 2006
174
$
16.71
Granted
45
16.12
Forfeited or cancelled
(171
)
16.84
Outstanding at December 31, 2007
48
$
15.68
Granted
—
—
Forfeited or cancelled
(15
)
15.86
Outstanding at December 31, 2008
33
$
15.60