Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2012

Comprehensive Income Loss [Abstract]

Comprehensive Income (Loss) Note

2005 Long-Term Incentive Plan

In 2005 Nautilus shareholders approved the 2005 Long-Term Incentive Plan (the “2005 Plan”) to enhance the Company's ability to attract and retain highly qualified personnel and align the long-term interests of participants with those of the shareholders. The 2005 Plan, which is administered by the Compensation Committee of the Company's Board of Directors, authorizes the Company to grant various types of stock-based awards including: stock options, stock appreciation rights, restricted stock, stock units and performance stock grants. Stock options granted under the 2005 Plan shall not have an exercise price less than the fair market value of the Company's common shares on the date of the grant. The exercise price of an option or stock appreciation right may not be reduced without shareholder approval. Stock options generally vest over four years of continuous service, commencing on the date of grant. Stock options granted after the adoption of the 2005 Plan have a seven-year contractual term. Stock options granted under the preceding plan expire after ten years.

Upon its adoption, there were approximately 4.0 million shares available for issuance under the 2005 Plan. The number of shares available for issuance is increased by any shares of common stock which were previously reserved for issuance under the Company's preceding stock option plan, and were not subject to grant on June 6, 2005, or as to which the stock based compensation award is forfeited on or after June 6, 2005. The number of shares available for issuance is reduced by (i) two shares for each share delivered in settlement of any stock appreciation rights, for each share of restricted stock, and for each stock unit or performance unit award, and (ii) one share for each share delivered in settlement of a stock option award. In no event shall more than 1.0 million aggregate shares of common stock subject to stock options, stock appreciation rights, restricted stock or performance stock unit awards be granted to any one participant in any one year under the 2005 Plan. As of March 31, 2012, 4.0 million shares remained available for future grant under the 2005 Plan.

Stock Options

In February 2012, the Company granted stock options to certain key employees. Stock option activity for the three months endedMarch 31, 2012 was as follows (in thousands, except exercise price and contractual life):

	Total Shares		Weighted- Average Exercise Price	Weighted- Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Options outstanding, January 1, 2012	1,034		8.72	3.16	$	18
Granted	295		2.75
Forfeited or expired	(101	)	8.59
Exercised	(37	)	2.37
Options outstanding, March 31, 2012	1,191		7.43	4.66	$	160
Vested and expected to vest, as of March 31, 2012	1,190		7.44	4.66	$	160

Aggregate intrinsic value in the above table represents the aggregate amount, for all options, by which closing share prices exceed the exercise price of the stock options. This value will fluctuate in the future based on the fair market value of our common stock.

Stock option expense was less than $0.1 million for the three months endedMarch 31, 2012 and 2011, and was primarily included in general and administrative expense. The weighted average grant-date fair values of stock options granted during the three months endedMarch 31, 2012 was $1.90. As of March 31, 2012, the unamortized compensation expense for unvested stock options totaled approximately $0.6 million, which is expected to be recognized over a weighted average period of 2.4 years.

Stock options outstanding as of March 31, 2012 were as follows (in thousands, except contractual 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 Options Exercisable	Weighted- Average Exercise Price
$0.95 - $2.72	357	7.5	$	2.35	49	$	1.77
$2.85 - $2.99	284	5.9	2.93		43	2.99
$4.15 - $14.25	260	2.6	7.18		251	7.21
$15.12 - $23.15	272	1.9	17.83		272	17.83
$23.64 - $26.77	18	1.2	25.51		18	25.51
$0.95 - $26.77	1,191	4.7	7.43		633	11.59

Restricted Stock Units

Restricted stock unit activity for the three months endedMarch 31, 2012 was as follows (in thousands, except fair value per share):

	Restricted Stock Units		Weighted Average Grant Date Fair Value per Share
Restricted stock units outstanding, January 1, 2012	375		$	2.60
Forfeited	(59	)	2.97
Restricted stock units outstanding, March 31, 2012	316		2.53

Restricted stock unit compensation expense for the three months endedMarch 31, 2012 was less than $0.1 million and was primarily included in general and administrative expense. No restricted stock units were granted and no related compensation expense was incurred during the three months endedMarch 31, 2011.

Performance Stock Units

In February 2012, the Company granted performance stock units to certain members of its executive team. The performance stock units vest based on the achievement of certain company financial performance goals established for a three-year period beginning in 2012. The number of shares that vest can range from 60% of the shares subject to the performance unit award if minimum thresholds are achieved to 150% of the shares subject to the performance unit award if maximum thresholds are achieved. Compensation expense is recognized over the estimated requisite service period based on the number of performance stock units expected to vest. Performance stock unit activity for the three months endedMarch 31, 2012 was as follows (in thousands, except fair value per share):

	Restricted Stock Units	Weighted Average Grant Date Fair Value per Share
Performance stock units outstanding, January 1, 2012	73	$	2.32
Granted	70	2.85
Performance stock units outstanding, March 31, 2012	143	2.58

Performance stock unit compensation expense was less than $0.1 million for the three months endedMarch 31, 2012 and 2011 and is primarily included in general and administrative expense. No performance stock units were granted during the three months endedMarch 31, 2011.