Nautilus 2010 Annual Report Download - page 51

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Table of Contents
Restricted stock compensation expense in 2009 was $0.3 million, primarily included in general and administrative expense.
Performance Stock Units
In April 2010 the Company granted 146,000 performance stock unit awards to key members of its executive team. The performance stock unit
awards are subject to both time-based vesting (one-
third annually over three years) and achievement of a stock price target of two times the grant
date price. If, over the three-year period, the stock price does not close at or above two times the grant date price over any 20 of 30 consecutive
days, the entire award is forfeited. Compensation expense for the 2010 performance stock unit grant is recognized over the estimated requisite
service period based on the number of performance stock units ultimately expected to vest. Performance stock unit compensation expense in
2010 was $0.1 million, primarily included in general and administrative expense. No performance stock unit compensation expense was
recognized in 2009 .
Following is a summary of the Company's performance stock unit activity in the years ended December 31, 2010 and 2009 (in thousands, except
fair value per share):
The Company receives income tax deductions as a result of the exercise of certain stock options and vesting of restricted stock and performance
stock units.
(14) LOSS PER SHARE
Loss per share is presented on both a basic and diluted basis. Basic loss per share is based on the weighted average number of common shares
outstanding. Diluted loss per share reflects the potential dilution that could occur if outstanding obligations to issue common stock were
exercised or converted into common stock. For the calculations of diluted loss per share, the basic weighted average number of shares is
increased by the dilutive effect of stock options and restricted stock awards determined using the treasury stock method.
Following is a computation of basic and diluted loss per share for the years ended December 31, 2010 and 2009 (in thousands, except per share
amounts):
49
Performance
Stock Units
Weighted Average
Grant Date Fair
Value per Share
Units outstanding, January 1, 2009
33
$
15.60
Granted
—
—
Forfeited or expired
(33
)
15.60
Units outstanding, December 31, 2009
—
—
Granted
146
2.32
Forfeited or expired
—
—
Units outstanding, December 31, 2010
146
2.32