Nautilus 2001 Annual Report Download - page 19

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property, our sales and profitability could be adversely affected. Accordingly, we have taken the following protective measures:
o We hold 17 United States patents and have applied for three additional United States patents with respect to our Nautilus products;
o We hold 20 United States patents and have 25 applications pending internationally with respect to our Schwinn Fitness products;
o We hold four patents relating to our Bowflex home fitness equipment;
o We have applied for one patent relating to our Nautilus Sleep Systems;
o We have obtained United States trademark protection for various names associated with our products, including "Bowflex," "Nautilus,"
"Power Rod," "Bowflex Power Pro," "Motivator," "Versatrainer," "Schwinn," "Airdyne," and "Fitness Advisor";
o We have applied for United States trademark protection for the names "Direct Focus," "Instant Comfort" and various other names and slogans
associated with our products;
o We have registered the name "Bowflex" in Canada and the European Community, and have registered or applied to register the "Nautilus"
trademark in approximately 30 foreign countries;
o We have obtained trademark protection for the "look" of our Bowflex Power Rods; and
o We hold eight United States copyright registrations relating to our Nautilus products.
Each federally registered trademark is renewable indefinitely if the mark is still in use at the time of renewal. We are not aware of any material
claims of infringement or other challenges to our right to use our marks.
EMPLOYEES
As of December 31, 2001, we employed 825 full-time employees, including 4 executive officers and 15 part-time employees. None of our
employees are subject to any collective bargaining agreement.
ITEM 2. PROPERTIES
Our corporate headquarters is located in Vancouver, Washington. It is a Company-owned 90,000 square foot facility that serves as a
warehouse, production, distribution and administrative facility. We also lease a 17,000 square foot facility in Vancouver, which we use as our
customer call center. We lease this property pursuant to an operating lease that expires April 30, 2002, which is subject to an optional extension
period. We plan to move our entire Vancouver operation to our headquarters building in 2002.
Our Nautilus commercial operations and our East Coast distribution centers for our direct-segment products are located in Independence,
Virginia. The following Company-owned facilities are part of 54 acres of commercial real property, which were acquired in 1999 with the
acquisition of Nautilus:
o A 124,000 square foot building devoted to fabrication, finishing, assembly, plastics, upholstery, warehousing and shipping;
o A 100,000 square foot building devoted to fabrication and Bowflex warehousing and shipping;
o A 27,000 square foot building that houses our Nautilus engineering, prototyping, customer service and administrative operations; and
19
2002. EDGAR Online, Inc.