Nautilus 2009 Annual Report Download - page 64

Table of Contents
In 2009, restructuring charges were $14.2 million, and included: $8.0 million in impairment charges of abandoned leasehold improvements
related to the reorganization and consolidation of our Vancouver, Washington headquarters facility; $2.8 million in lease termination costs and
accrued lease obligations associated with the reduction of leased space at our headquarters facility; $1.8 million in charges due to our
abandonment of information technology software which was no longer necessary to support the business needs; $0.9 million fee to terminate a
warehouse distribution service agreement as part of our distribution consolidation activities; and severance costs of $0.6 million. In addition to
restructuring charges, we recognized $5.9 million in asset impairment charges related to intangible assets of our retail segment, $0.4 million in
deferred financing costs related to the termination of our bank agreement and $0.2 million in legal and contract settlement costs, partially offset
by a benefit for legal matters which were settled in 2009 for $1.0 million less than the Company previously had estimated in 2008.
In 2008, restructuring charges were $14.0 million, and included: $8.0 million in charges related to the termination of an agreement to acquire a
manufacturing operation in China; $4.8 million in employee termination benefits and other employee costs; $0.6 million in contract termination
costs; and $0.5 million for the disposal of unused creative advertising resulting from a change in our product strategies. In addition to
restructuring charges, we recognized a $29.8 million asset impairment charge related to goodwill of the retail segment, $1.1 million for writing
off deferred financing costs associated with a former bank agreement; $2.5 million of legal and contract settlement costs; and $0.6 million in
expenses related to the reimbursement of shareholder action costs.
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