Nautilus 2003 Annual Report Download - page 56

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Table of Contents
The geographic distribution of the Company’s international net sales is mostly concentrated in the United Kingdom, Germany, and
Canada. Sales outside the U.S. represented approximately 13%, 10%, and 8% of consolidated net sales for the three years ended
December 31, 2003, 2002 and 2001, respectively.
The following table presents information about the Company’s three operating segments:
Direct
Commercial/
Retail
Corporate
Total
Year ended December 31, 2003:
Net sales
$
246,902
$
251,934
$
—
$
498,836
Interest income
1
80
758
839
Depreciation and amortization expense
8,061
3,648
565
12,274
Income tax expense (benefit)
10,828
12,339
(3,816
)
19,351
Segment net income (loss)
19,251
21,934
(6,783
)
34,402
Segment assets
37,955
173,990
99,990
311,935
Additions to property, plant and equipment
3,334
3,683
—
7,017
Year ended December 31, 2002:
Net sales
$
392,612
$
192,038
$
—
$
584,650
Interest income
—
83
1,478
1,561
Depreciation and amortization expense
2,824
2,950
542
6,316
Income tax expense (benefit)
53,855
2,820
(1,615
)
55,060
Segment net income (loss)
95,745
5,012
(2,870
)
97,887
Segment assets
52,251
149,559
74,843
276,653
Additions to property, plant and equipment
18,615
11,746
1,181
31,542
Year ended December 31, 2001:
Net sales
$
292,539
$
71,323
$
—
$
363,862
Interest income
—
44
3,980
4,024
Depreciation and amortization expense
2,256
877
488
3,621
Income tax expense
35,781
2,283
171
38,235
Segment net income
62,227
4,054
302
66,583
Segment assets
27,155
92,512
74,238
193,905
Additions to property, plant and equipment
5,266
333
117
5,716
4.
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.
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