Nautilus 2008 Annual Report Download - page 69

Table of Contents
The following table presents information about the Company’s reportable segments:
Significant judgment is required in allocating operating expenses, depreciation, amortization and assets to the individual business segments.
Such allocations were based on a number of methods, including percentage of revenue, segment headcount or the allocation of amounts evenly
across the business segments. In addition, management made several assumptions to present the information in the table on a comparative basis.
The Company does not capture and report capital expenditures by business segment. The Company is not able to provide amounts for its total
assets, by business segment, as of December 31, 2006 as such information was not tracked in a manner that supports the Company’s currently
defined business segments.
Corporate gross profit for 2008 includes charges of $6.8 million for discontinued inventory and $1.4 million for severance and $2.7 million in
costs incurred with closing the Tulsa manufacturing facility. Corporate gross profit for 2007 included the impact of $16.9 million in discontinued
inventory and warranty charges associated with certain commercial cardiovascular products.
Corporate segment operating income for 2008 includes the impact of the aforementioned charges to gross profit and the following adjustments to
operating expenses: $29.8 million in retail goodwill impairment charges and $1.1 million intangible impairment charges; $14.0 million in
restructuring charges, including an $8.0 million charge related to the termination of a purchase agreement with Land America and $4.9 million in
employee termination and related costs; and $1.2 million related to changes in strategic plans regarding products and marketing arrangements
that were cancelled. Corporate segment operating income for 2007 included the impact of the aforementioned charges to gross profit and the
following adjustments to operating expense: an $18.3 million
65
(In thousands)
Year ended December 31, 2008:
Direct
Retail
Commercial
Corporate
Total
Net sales
$
185,704
$
106,715
$
115,251
$
3,508
$
411,178
Gross profit
111,500
26,335
20,835
(8,033
)
150,637
Depreciation and amortization expense
6,276
1,703
4,904
2,613
15,496
Operating income (loss)
2,947
11,401
(9,337
)
(88,452
)
(83,441
)
Interest expense, net
—
—
—
1,524
1,524
Income tax expense (benefit) from continuing operations
—
—
—
4,290
4,290
Income (loss) from continuing operations
2,947
11,401
(9,337
)
(98,010
)
(92,999
)
Total assets
35,012
42,459
77,600
42,448
197,519
Year ended December 31, 2007:
Net sales
$
249,057
$
114,697
$
134,592
$
3,125
$
501,471
Gross profit
150,540
18,670
24,712
(14,559
)
179,363
Depreciation and amortization expense
6,264
2,605
4,752
2,065
15,686
Operating income (loss)
7,376
(1,736
)
(12,565
)
(61,687
)
(68,612
)
Interest expense, net
—
—
—
4,650
4,650
Income tax expense (benefit) from continuing operations
—
—
—
(
26,216
)
(26,216
)
Income (loss) from continuing operations
7,376
(1,736
)
(12,565
)
(38,887
)
(45,812
)
Total assets
43,448
82,472
112,155
152,765
390,840
Year ended December 31, 2006:
Net sales
$
283,006
$
208,617
$
124,152
$
1,496
$
617,271
Gross profit
181,734
56,944
26,204
1,496
266,378
Depreciation and amortization expense
6,052
2,517
4,591
1,994
15,154
Operating income (loss)
34,248
34,794
(6,656
)
(27,628
)
34,758
Interest income, net
—
—
—
1,866
1,866
Income tax expense from continuing operations
—
—
—
9,096
9,096
Income (loss) from continuing operations
34,248
34,794
(6,656
)
(37,466
)
24,920