Nautilus 2008 Annual Report Download - page 56

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Table of Contents
The following is a summary of expenses associated with the aforementioned restructuring activities:
Restructuring costs are reported in our corporate segment to allow for a comparable review of operating income or loss by segment.
The following table summarizes the impact of restructuring activities on our accrued liability balances:
Cost of sales for 2008 included charges of $5.7 million for discontinued inventory and $1.4 million for severance and $2.7 million for costs
incurred with closing the Tulsa manufacturing facility. Cost of sales for 2007 included the impact of $16.9 million in accrued warranty costs and
inventory charges.
3. TRADE RECEIVABLES
Activity pertaining to our allowance for doubtful accounts, for the three year period ended December 31, 2008 is as follows:
52
Years Ended
December 31,
(In thousands)
2008
2007
Employee termination and other employee costs
$
4,861
$
3,193
Impairment of acquired technology
—
3,000
Termination of purchase agreement with Land America
8,000
19,364
Other
1,125
1,196
$
13,986
$
26,753
(In thousands)
Severance and
Benefits
Facilities
Accrued
Liability
Balance as of January 1, 2008
$
—
$
—
$
—
Accruals
4,662
697
5,359
Payments
(2,978
)
(697
)
(3,675
)
Balance as of December 31, 2008
$
1,684
$
—
$
1,684
December 31,
(In thousands)
2008
2007
Gross accounts receivable
$
60,372
$
92,801
Allowance for doubtful accounts
(6,602
)
(4,490
)
$
53,770
$
88,311
(In thousands)
Balance at
Beginning
of Year
Charged to
Costs and
Expenses
Deductions*
Balance at
End of
Year
Allowance for doubtful accounts:
2008
$
4,490
$
4,761
$
(2,649
)
$
6,602
2007
3,726
8,388
(7,624
)
4,490
2006
3,977
1,292
(1,543
)
3,726
*
Deductions represent amounts written off against the allowance, net of recoveries.