Nautilus 2003 Annual Report Download - page 59

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Table of Contents
7.
GOODWILL AND OTHER ASSETS, net
Details of other assets are summarized as follows at December 31:
The Company evaluates goodwill and intangible assets with indefinite lives for impairment annually or more frequently if events or
changes in circumstance indicate that such assets might be impaired. Intangible assets with finite useful lives are tested for impairment
whenever events or changes in circumstance indicate that such assets might be impaired. The remaining useful lives of intangible assets
with finite useful lives are evaluated annually to determine whether events or circumstances warrant changes in the estimated useful lives
of such assets.
Estimated
Useful Life
(in years)
2003
2002
Indefinite life trademarks
N/A
$
10,465
$
10,465
Definite life trademarks
20
6,800
6,800
Other assets
1 to 17
1,558
797
Total other assets
18,823
18,062
Accumulated amortization
(1,557
)
(1,195
)
Other assets, net
$
17,266
$
16,867
As discussed in Note 1, the Company adopted SFAS No. 142 on January 1, 2002. In accordance with SFAS No. 142, the effect of this
statement, which ceased the amortization of the Nautilus trademark, is reflected prospectively. Supplemental comparative disclosure as if
the change had been retroactively applied to the year ended December 31, 2001 is as follows:
2001
Reported net income
$
66,583
Amortization expense, net of tax
139
Adjusted net income
$
66,722
Basic earnings per share:
Reported net income
$
1.89
Adjusted net income
$
1.90
Diluted earnings per share:
Reported net income
$
1.85
Adjusted net income
$
1.86
Amortization of intangible assets for the year ended December 31, 2003 was $362. The estimated amortization expense for the next five
years is $380 each year. Such estimated amortization will change if businesses or portions thereof are either acquired or disposed, or if
changes in events or circumstances warrant the revision of estimated useful lives.
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