Nautilus 2001 Annual Report Download - page 20

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o A 9,000 square foot administrative and product display building.
In 2001, we purchased a 29,500 square foot building in Independence devoted to used commercial equipment sales and warehousing. In
addition to the purchase, we leased, with the option to buy, an 86,000 square foot building in Independence to serve as our East Coast
distribution center for Nautilus Sleep System products. We purchased this building in January 2002 for approximately $600,000.
We also have a distribution center in Las Vegas, Nevada. We originally leased 93,000 square feet, for which the lease expires November 30,
2002. We distribute direct segment products from this facility. In 2001, we leased an additional 40,000 square feet of space adjacent to the
original facility to be devoted as the West Coast distribution center for Nautilus retail fitness equipment. The lease for the additional space
expired January 31, 2002. Nautilus retail fitness products are now distributed from our facility in Bolingbrook, Illinois.
In 2000, we purchased approximately 19.5 acres of land in Las Vegas for $1.1 million. We may build a distribution, warehouse and
administrative facility on the land.
Additional facilities occupied in 2001 through the acquisition of Schwinn Fitness are as follows:
o A leased 139,000 square foot building in Bolingbrook devoted to Schwinn and Nautilus Fitness product warehousing and distribution;
o An owned 62,000 square foot building in Tyler, Texas devoted to manufacturing and distribution of treadmills;
o A leased 40,000 square foot building in Boulder that serves as the Schwinn and Nautilus Fitness warehouse, production, testing, distribution
and administrative facility;
o 3,800 square feet of leased office space in Boulder devoted to research and development administration;
o A leased 11,280 square foot building in Freibourg, Switzerland devoted to international distribution; and
o A leased 6,300 square foot building in Givisiez, Switzerland devoted to international sales and administration.
In addition to the acquired facilities, we lease, on a month-to-month basis, flexible warehouse space in multiple countries in Asia and Europe
devoted to international distribution of Schwinn Fitness products.
On March 1, 2002, we purchased an 85,000 square foot building in Boulder for $6 million. This facility will be used for Schwinn Fitness
corporate offices, warehouse storage, production, testing, and distribution. The new building will replace the leased facilities in Boulder
described above.
Our acquisition of StairMaster in 2002 added leased facilities in Tulsa, Oklahoma; Bothell, Washington; Milton Keynes, England; and Bergisch
Gladbach, Germany.
In general, our properties are well maintained, adequate and suitable for their purposes, and we believe these properties will meet our
operational needs for the foreseeable future. If we require
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2002. EDGAR Online, Inc.