Nautilus 2010 Annual Report Download - page 44
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Table of Contents
Product warranty payments and the balance outstanding as of December 31, 2010 and 2009
primarily represent retained obligations related to the
Company's former commercial business, now a discontinued operation, for which sales volume and related product warranty expense accruals
have declined each year since 2007. In addition, a significant portion of product warranty payments in 2010 and 2009 related to a single
discontinued product of the commercial business for which production was ceased in 2007 and the related warranty expense was recognized
mostly in and before 2008. Product warranty liability adjustments in 2010 and 2009 primarily relate to the assignment of certain outstanding
commercial warranty obligations to the buyer of certain components of our commercial business discontinued operations.
42
2010 2009
Balance, January 1
$
8,379
$
17,837
Accruals
1,417
5,002
Adjustments
(1,166
)
(3,345
)
Payments
(4,695
)
(11,115
)
Balance, December 31
$
3,935
$
8,379