Nautilus 2009 Annual Report Download - page 51

Table of Contents
The Company tested goodwill for impairment during both the third and fourth quarters of 2009, and no impairment was indicated. In
determining the estimated future cash flows, current and future levels of income were considered as well as business trends and market
conditions. In 2008, the Company recognized a $29.8 million impairment charge related to goodwill of its retail reporting unit. No goodwill
impairment charges were recognized prior to 2008.
Activity related to goodwill for the years ended December 31, 2009 and 2008 was as follows (in thousands):
(8) OTHER INTANGIBLE ASSETS
In 2009, in light of various changes in long-term product strategies, the Company tested other intangible assets for impairment and recognized
impairment charges of $5.9 million for intangible assets of its retail business segment.
Amortization expense for intangible assets for the years ended December 31, 2009 and 2008 was $2.5 million and $2.7 million, respectively.
Amortization expense for intangible assets is expected to be approximately $2.1 million in each year from 2010 through 2013 and
$2.0 million in
2014, with the remaining $1.5 million amortized over the six year period from 2015 through 2020.
(9) ACCRUED LIABILITIES
47
Direct Retail Total
Balance as of January 1, 2008
$
2,988
$
29,755
$
32,743
Impairment loss
—
(
29,755
)
(29,755
)
Currency exchange rate adjustment
(590
)
—
(
590
)
Balance as of December 31, 2008
2,398
—
2,398
Currency exchange rate adjustment
396
—
396
Balance as of December 31, 2009
$
2,794
$
—
$
2,794
(In thousands)
Estimated
Useful Life
(in years)
December 31,
2009 2008
Other intangible assets:
Indefinite life trademarks
N/A
$
9,052
$
16,419
Patents
1 to 16
18,154
23,209
Total cost
27,206
39,628
Accumulated amortization:
Patents
(6,368
)
(5,225
)
Total accumulated amortization
(6,368
)
(5,225
)
$
20,838
$
34,403
December 31,
(In thousands) 2009 2008
Restructuring costs
$
1,005
$
1,535
Payroll and benefits
3,903
3,593
Royalties
970
1,957
Legal and professional fees
1,265
2,970
Other
3,601
5,073
$
10,744
$
15,128