Nautilus 2002 Annual Report Download - page 51

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On October 2, 2002, Quinton Cardiology Systems, Inc. ("Quinton") purchased certain fixed assets and inventories that the Company originally
acquired in the StairMaster acquisition for $1,725 consisting of $1,000 in cash and a $725 promissory note payable quarterly over a two-year
period at prime plus 2%. These assets consisted of medical treadmill manufacturing fixed assets and inventories, which StairMaster used for
outsourced production of Quinton branded medical treadmills. The allocation of the purchase price to the assets acquired and liabilities
assumed resulted in no goodwill being recorded.
The total cost of the StairMaster acquisition has been allocated to the assets acquired and liabilities assumed as follows:
Cash and cash equivalents $ 793
Trade receivables 8,025
Inventories 6,158
Prepaid expenses and other current assets 2,381
Property, plant and equipment 4,807
Trademark 6,115
Liabilities assumed
(3,355)
--------
Total acquisition cost $ 24,924
========
Effective September 20, 2001, 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 Schwinn Fitness for a cash purchase price of approximately
$69,843, including acquisition costs.
The total cost of the Schwinn Fitness acquisition has been allocated to the assets acquired and liabilities assumed as follows:
Trade receivables $ 9,809
Inventories 18,857
Prepaid expenses and other current assets 933
Property, plant and equipment 6,356
Other assets 40
Trademark 6,800
Goodwill 29,625
Liabilities assumed
(2,577)
--------
Total acquisition cost $ 69,843
========
The Company has determined that the Schwinn trademark, acquired as part of the Schwinn Fitness acquisition, has anticipated use and cash
flows of approximately 20 years. The Company will amortize the trademark using the straight-line method over this period. The Company will
evaluate the remaining useful life of the trademark each reporting period to determine whether events or circumstances warrant a revision to the
remaining period of amortization or whether the asset should be tested for impairment.
The results of operations subsequent to the date of the StairMaster and Schwinn Fitness acquisitions are included in the consolidated financial
statements of the Company.
-51-
2003. EDGAR Online, Inc.