Nautilus 2002 Annual Report Download - page 50

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The following table presents information about the Company's two operating segments:
Commercial/
Direct Retail Total
Year ended December 31, 2002:
Revenues $ 392,612 $ 192,038 $ 584,650
Interest income 1,478 83 1,561
Depreciation and amortization expense 2,824 3,492 6,316
Income tax expense 52,221 2,839 55,060
Segment net income 92,838 5,049 97,887
Segment assets 128,204 148,449 276,653
Additions to property, plant and equipment 18,615 12,927 31,542
Year ended December 31, 2001:
Revenues $ 292,539 $ 71,323 $ 363,862
Interest income 3,980 44 4,024
Depreciation and amortization expense 2,256 1,365 3,621
Income tax expense 36,165 2,070 38,235
Segment net income 62,909 3,674 66,583
Segment assets 87,264 106,641 193,905
Additions to property, plant and equipment 5,266 450 5,716
Year ended December 31, 2000:
Revenues $ 198,107 $ 25,820 $ 223,927
Interest income 3,630 2 3,632
Depreciation and amortization expense 2,068 806 2,874
Income tax expense 22,884 530 23,414
Segment net income 40,684 942 41,626
Segment assets 95,815 21,311 117,126
Additions to property, plant and equipment 8,237 525 8,762
3. ACQUISITIONS
Effective February 8, 2002, the Company acquired the trade receivables, inventories, prepaid expenses and other current assets, property, plant
and equipment, certain intangible assets and the foreign subsidiaries of StairMaster for a cash purchase price of approximately $25,785,
including acquisition costs. StairMaster was acquired through a bankruptcy auction in the United States Bankruptcy Court for the Western
District of Washington that was completed on January 17, 2002.
The acquired assets include property, plant and equipment used to manufacture, assemble, distribute, and sell fitness equipment, including
steppers, stepmills, treadmills and exercise bicycles.
The purchase price for StairMaster was determined in the court auction. The Company's bid was formulated on the basis of historical and
projected financial performance, which resulted in goodwill that had been recorded in the Company's commercial/retail segment along with the
acquired assets and liabilities. The Company financed the acquisition with cash-on-hand.
The Company has determined that the StairMaster trademark has an indefinite useful life and thus will not be amortized. The Company will
evaluate the trademark each reporting period to determine whether events or circumstances warrant a revision to the indefinite useful life
assumption or whether the asset should be tested for impairment.
-50-
2003. EDGAR Online, Inc.