Nautilus 2009 Annual Report Download - page 7

Table of Contents
Management currently expects to complete the sale of the remaining assets of the commercial business in 2010. The following table shows
portions of the commercial business divestiture for which asset disposals have been completed, and those portions for which asset disposals are
not completed:
In December 2009, the President signed into U.S. federal law a provision allowing taxpayers to carry back applicable net operating losses for a
period of up to five years. This new law allowed us to carry-back a portion of our 2008 net operating loss to prior years in which we had paid
federal taxes and, as a result, we received a U.S. income tax refund of approximately $12.1 million in January 2010.
On March 8, 2010, we entered into a new loan agreement with Bank of the West (the “New Loan Agreement”), providing for a $15.0 million
revolving secured credit line, available for a thirty-month term. The New Loan Agreement is available for working capital, standby letters of
credit and general corporate purposes, assuming we are able to satisfy certain terms and conditions at the time the borrowings are requested.
PRODUCTS
We market quality strength and cardiovascular fitness products that cover a broad range of price points and features. Our products are designed
for individuals with varying exercise needs. From the person who works out occasionally, to the professional athlete, we have the products that
will help them achieve their fitness objectives.
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Asset Disposals
Completed as of
December 31, 2009
Asset Disposals
Completed as of
March 8, 2010
Asset Disposals
Not Completed
StairMaster
Commercial Product Lines
Finished goods and spare parts inventories
X
Raw materials and work
-
in
-
process inventories
X
Production equipment and other fixed assets
X
Trademark intangible asset
X
Schwinn
Fitness Commercial Product Lines
Finished goods and spare parts inventories on hand
X
Finished goods inventories in
-
transit
X
Accounts receivable
X
Production equipment and other fixed assets
X
Nautilus
Commercial Product Lines
Raw materials, work-in-process and North America
spare parts inventories
X
Finished goods inventories
X
Manufacturing equipment and related fixed assets
X
Independence, Virginia land and buildings
X
Europe distribution operations, including finished
goods and spare parts inventories
X
China finished goods and spare parts inventories
X
• Our
Nautilus
brand includes: a complete line of cardio equipment, including specialized products and treadmills, ellipticals and
exercise bikes. In early 2009, we introduced new lower priced treadmills specifically designed for the retail business. In December
2009, we introduced the Mobia , a specialized cardio machine that utilizes dual treads and burns twice the calories of an equivalent
standard treadmill.
• Our
Bowflex
brand represents a line of fitness equipment comprised of both strength and cardio products. Our Bowflex product
line includes our PowerRod home gyms, the Revolution home gym, SelectTech dumbbells, weight benches, treadmills, and
TreadClimber
specialized cardio machines, specifically designed for home use.
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