Nautilus 2010 Annual Report Download - page 41

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Table of Contents
* Reimbursement paid by the Company for expenses incurred by buyer, due under terms of the sale agreement.
(3) RESTRUCTURING
In 2009 the Company implemented a restructuring plan aimed at reducing operating costs and improving the overall alignment of spending with
anticipated revenue through reductions in personnel, abandonment of certain information technology software, termination of certain leases and
warehouse distribution services, downsizing the Company's leased corporate headquarters and other initiatives. Following is a summary of
expenses associated with the restructuring activities, included in “Restructuring” in the Company's consolidated statements of operations for the
year ended December 31, 2009 (in thousands):
Following is a summary of exit cost liabilities related to restructuring activities, included in “Accrued liabilities” in the Company's consolidated
balance sheets:
(4) TRADE RECEIVABLES
Changes in the Company's allowance for doubtful trade receivables in the years ended December 31, 2010 and 2009 were as follows (in
thousands):
Writeoffs, net of recoveries, in 2010 and 2009 primarily consist of uncollectible trade receivables of our commercial business discontinued
operation.
39
2009
Revenue
$
—
Loss on adjustment to previously-completed disposal *
$
(377
)
Income taxes
—
Loss from discontinued operation - fitness apparel business
$
(377
)
2009
Employee termination severance costs
$
563
Facility lease termination costs
2,822
Abandoned leasehold improvements
8,028
Abandoned information technology software and related service agreements
1,799
Contract termination costs
939
$
14,151
(In thousands) Severance and
Benefits
Facilities
and
other
Leases Total
Liabilities
Balance as of January 1, 2009
$
1,684
$
—
$
1,684
Accruals
563
2,839
3,402
Payments
(1,884
)
(2,593
)
(4,477
)
Balance as of December 31, 2009
363
246
609
Payments
(363
)
(246
)
(609
)
Balance as of December 31, 2010
$
—
$
—
$
—
2010
2009
Balance, January 1
$
4,160
$
6,602
Charges to bad debt expense
486
1,315
Writeoffs, net of recoveries
(4,345
)
(3,757
)
Balance, December 31
$
301
$
4,160