Nautilus 2010 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2010 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 110

  • 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

Table of Contents
* Potentially dilutive average shares of 1.3 million and 1.4 million in 2010 and 2009 , respectively, were not included in the computation of
diluted loss per share because they would have been antidilutive, reducing the amount of loss per share.
(15) EMPLOYEE BENEFIT PLAN
In 1999 the Company adopted the Nautilus, Inc. 401(k) Savings Plan (the “401(k) Plan”) covering substantially all regular employees over the
age of 18. Each participant may contribute up to 75% of eligible compensation during any calendar year, subject to certain limitations. Subject to
the approval of the Company's Board of Directors, the 401(k) Plan provides for Company matching contributions of 100% of the first 1% of
eligible earnings contributed by the employee, and an additional 50% match for earnings contributed over 1% and up to 6%. Matching
contributions vest at 25% after the first year of service, and are fully vested after the second year. On April 19, 2009, the Company suspended
matching contributions. On April 18, 2009, all participating employees and all participating employees terminated between July 24, 2008 and
April 18, 2009 became fully vested in their matching Company contributions. The Company did not contribute to the 401(k) Plan in 2010 and
contributed $0.3 million in 2009.
(16) SEGMENT INFORMATION
The Company has two reportable segments - Direct and Retail. The Company's commercial business discontinued operation is not a reportable
segment. Contribution is the measure of profit or loss used by the Company's chief operating decision maker, and is defined as net sales, less
product costs and directly-attributable expenses. Directly-attributable expenses include employment costs, selling and marketing costs, general
and administrative expenses and research and development costs directly related to segment operations. Segment assets are those directly
assigned to an operating segment's operations, primarily accounts receivable, inventories and intangible assets. Unallocated assets primarily
include shared information technology infrastructure, distribution centers, corporate headquarters, prepaids, deferred taxes and other assets.
Capital expenditures directly attributable to the Direct and Retail segments were not significant in 2010 or 2009 .
50
2010
2009
Numerator:
Loss from continuing operations
$
(9,818
)
$
(18,610
)
Loss from discontinued operations
(13,023
)
(34,687
)
Net loss
$
(22,841
)
$
(53,297
)
Denominator:
Basic shares outstanding
30,744
30,664
Dilutive effect of stock options and restricted stock *
—
—
Diluted shares outstanding
30,744
30,664
Loss per share from continuing operations:
Basic and diluted
$
(0.32
)
$
(0.61
)
Loss per share from discontinued operations:
Basic and diluted
$
(0.42
)
$
(1.13
)
Net loss per share:
Basic and diluted
$
(0.74
)
$
(1.74
)