Nautilus 2010 Annual Report Download - page 40

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Table of Contents
Management expects to dispose of the remaining assets of the commercial business discontinued operation in early 2011 and does not expect
disposal loss adjustments in future periods to be material. As of December 31, 2010, assets held-for-sale of the commercial business
discontinued operation and related disposal loss impairments were as follows (in thousands):
Cash flows of the commercial business after completion of the divestiture may include settlements of then outstanding accounts receivable, trade
payables and contractual obligations, settlements of sales agreement contingencies and receipts of passive royalties, all of which, according to
accounting guidance, are not considered to be direct cash flows of the disposed segment.
The following table summarizes liabilities for exit costs related to discontinued operations, included in "Accrued liabilities" and "Other long-
term liabilities" in our consolidated balance sheets:
Fitness Apparel Business
In 2008 the Company completed the sale of its discontinued fitness apparel business, Pearl iZumi. Following is a summary of the operating
results of the discontinued fitness apparel business for the year ended December 31, 2009, which are included in the consolidated financial
statements as discontinued operations (in thousands):
38
Previously-Estimated
Disposal Loss as of
12/31/09
Completed
Transactions Gain
(Loss)
Adjustments to
Estimated Disposal
Loss
Reduction
(Increase) to
Previously-
Estimated Disposal
Loss
Disposal Loss
Impairment as of
12/31/10
Sale of commercial equipment
manufacturing operation
$
(6,212
)
$
(3,967
)
$
—
$
2,245
Sale of commercial equipment
manufacturing facility
(1,268
)
(706
) —
562
Sale of European commercial
business operations
(1,618
)
(1,109
)
—
509
Other completed disposals
(724
)
(459
) —
265
Adjustments to previously-
completed disposals —
364
—
364
Remaining assets held-for-sale as
of December 31, 2010
(444
)
—
(
222
)
(222
)
$
(666
)
$
(10,266
)
$
(5,877
)
$
(222
)
$
3,723
$
(666
)
Real Property
Carrying value, before impairment adjustment
$
958
Disposal loss impairment
(666
)
Assets of discontinued operation held-for-sale, net
$
292
(In thousands) Severance and
Benefits
Facilities
and
other
Leases
Total
Liabilities
Balance as of January 1, 2009
$
—
$
—
$
—
Accruals
456
2,391
2,847
Payments
(135
)
(937
)
(1,072
)
Balance as of December 31, 2009
321
1,454
1,775
Accruals
1,460
1,355
2,815
Payments
(1,305
)
(649
)
(1,954
)
Balance as of December 31, 2010
$
476
$
2,160
$
2,636