Nutrisystem 2006 Annual Report Download - page 58

T
he following table summarizes the options granted, exercised and cancelled in 2004, 200
5
and 2006
:
N
umber o
f
S
hare
s
W
eighted
-
Averag
e
Exercis
e
Pric
e
We
i
ghted-
A
verage
R
emainin
g
C
ontractua
l
L
ife (years)
Aggregate
Intrinsi
c
V
alu
e
O
utstandin
g
, Januar
y
1, 2004
................
4
,837,167 $ 1.12
G
rante
d
.
................................
1,
481
,
834 2.3
9
Exerc
i
se
d
................................
(
982,159
)
0.60
F
o
rf
e
i
ted
................................
(
198,666) 1.81
Exp
i
re
d
.
................................
——
O
utstandin
g
, December 31, 200
4
.............
5
,138,176 1.
56
G
rante
d
.
................................ 501
,
900 11.83
Exerc
i
se
d
................................
(2,78
6
,070) 1.49
F
o
rf
e
i
ted
................................
(
121,169) 0.80
Exp
i
re
d
.
................................
——
O
utstanding, December 31, 200
5
.
............
2
,732,837 3.
55
G
rante
d
.
................................
——
Ex
e
r
c
i
sed
................................
(1
,
324
,
1
7
4) 2
.7
4
F
o
rf
e
i
ted
................................ (43,33
5
)1
5
.2
5
Exp
i
re
d
.
................................
——
O
utstanding, December 31, 2006
.
............
1,
365
,
328
$
3.97 7.46
$
81
,
128
Exercisable at December 31
,
2006 ............ 676
,
478
$
1.75 6.87
$
41
,
698
T
he following table summarizes information about stock options outstanding as of December 31, 200
6
:
Range o
f
Exerc
i
s
e
Pr
ices
Number o
f
S
hares
W
e
ig
hted-
A
verage Rema
i
n
i
ng
Life
(
Years
)
W
e
ig
hted
-
Average Exerc
i
s
e
Pr
ice
$
0.33 -
$
0.9
9
.
............................
.
3
94
,
647 6.4
$
0.59
$
1.00 - $1.9
9
..............................
9
3,170 7.3 $ 1.8
4
$
2.00 - $2.9
9
..............................
6
11,008 7.9 $ 2.56
$
3.00 -
$
9.9
9
.
............................
.
150
,
001 7.6
$
6.49
$
10.00 - $19.9
9
............................
2
9,835 8.5 $15.30
$
20.00 - $31.9
9
............................
8
6,667 8.7 $23.33
1,365,328 7.5 $ 3.97
T
he Company adopted SFAS No. 123R, effective January 1, 200
6
. Prior to January 1, 200
6
, the Compan
y
a
pp
li
e
d
t
h
e
i
ntr
i
ns
i
cva
l
ue met
h
o
d
o
f
account
i
n
gf
or a
ll
stoc
k
-
b
ase
d
emp
l
o
y
ee compensat
i
on
i
n accor
d
ance w
i
t
h
APB Opinion No. 2
5
, and related interpretations. The Compan
y
elected to use the modified prospective method
f
or a
d
opt
i
ng SFAS No. 123R. Un
d
er t
hi
s met
h
o
d
,t
h
e prov
i
s
i
ons o
f
SFAS No. 123R app
l
ytoa
ll
awar
d
s grante
d
o
r modified after the date of adoption. Accordin
g
l
y
, prior periods have not been restated. SFAS 123R also
requires the benefits of tax deductions in excess of reco
g
nized compensation expense be reco
g
nized as financin
g
cas
hfl
ows, rat
h
er t
h
an as operat
i
ng cas
hfl
ows as prescr
ib
e
d
un
d
er t
h
epr
i
or account
i
ng ru
l
es. T
hi
s requ
i
rement
reduces net operatin
g
cash flows and increases net financin
g
cash flows in periods after adoption.
I
n 2006, the Compan
y
recorded a pre-tax compensation char
g
e of $2,387 on the accompan
y
in
g
consolidated
statement of operations for the portion of previousl
yg
ranted stock option awards that vested durin
g
2006. Ther
e
were no option grants in 2006. The weighted-average grant date fair value of the options issued in 2005 and 200
4
was $10.08 and $2.08, respectivel
y
. The total intrinsic value of stock options exercised in 2006, 2005 and 200
4
was $69,088, $48,664, and $1,755, respectivel
y.
5
2