Nautilus 2010 Annual Report Download - page 39

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Table of Contents
several buyers, rather than as a single disposal group as originally was planned. In the fourth quarter of 2009, the Company completed the sale of
its StairMaster and Schwinn commercial product lines and also recorded an $8.8 million adjustment to reduce the estimated pre-tax disposal loss
related to the commercial business.
Following is the adjustment to previously reported amount of estimated pre-tax disposal loss, reflecting management's decision in the fourth
quarter of 2009 to dispose of the business in multiple asset groups involving several buyers, rather than as a single disposal group as originally
was planned (in thousands, before income taxes):
The following tables present gains or losses recognized on completed disposal transactions in the year ended December 31, 2009 (in thousands):
(1)
Adjustment to estimated disposal loss arises from management's decision in the fourth quarter of 2009 to sell the commercial
business in multiple asset groups involving several buyers, rather than as a single disposal group as originally was expected, as
discussed above.
(2)
Sale of StairMaster and SchwinnFitness components, previously included in Commercial Business disposal group, as discussed
above.
As of December 31, 2009, assets held-for-sale of the commercial business discontinued operation and related disposal loss impairments were as
follows (in thousands):
In 2010 the Company completed the sale of substantially all of the remaining assets of the commercial business and recognized a $3.7 million
reduction of the amount of pre-tax loss previously estimated in connection with the disposal. The following table presents gains or losses
recognized on completed disposal transactions in the year ended December 31, 2010 (in thousands):
37
2009
Estimated loss on sale of commercial business discontinued operation, as of September 30, 2009
$
(18,331
)
Reduction of estimated disposal loss
8,840
Estimated loss on sale of commercial business discontinued operation, as of December 31, 2009
$
(9,491
)
Asset Group
Initially Estimated
Disposal Loss as
of 9/30/09
Completed
Transactions Gain
Adjustment to
Estimated
Disposal Loss
Reduction of
Previously-
Estimated
Disposal Loss
Disposal Loss
Impairment as of
12/31/09
Commercial Business
$
(18,331
)
$
—
$
8,065
(1)
$
8,065
$
(10,266
)
StairMaster
57
(2)
—
57
SchwinnFitness
718
(2)
—
718
$
(18,331
)
$
775
$
8,065
$
8,840
$
(10,266
)
Inventories
Property,
Plant &
Equipment
Totals
Carrying value, before impairment adjustments
$
14,164
$
6,883
$
21,047
Disposal loss impairment
(3,897
)
(6,369
)
(10,266
)
Assets of discontinued operation held-for-sale, net
$
10,267
$
514
$
10,781