Nautilus 2013 Annual Report Download - page 48

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Future amortization of patents is as follows (in thousands):
(8) ACCRUED LIABILITIES
Accrued liabilities consisted of the following (in thousands):
(9) PRODUCT WARRANTIES
Changes in our product warranty obligations were as follows (in thousands):
Product warranty payments in 2011 primarily related to retained obligations of our former Commercial business. Product warranty liability
adjustments in 2011 primarily related to the assignment of certain outstanding Commercial warranty obligations to the buyer of certain
components of the Commercial business.
(10) BORROWINGS
Line of Credit
We have a Credit Agreement (the "Loan Agreement") with Bank of the West that provides for a $15,750,000
maximum revolving secured credit
line. The line of credit is available through March 31, 2015 for w
orking capital, standby letters of credit and general corporate purposes.
Borrowing availability under the Loan Agreement is subject to our compliance with certain financial and operating covenants at the time
borrowings are requested. Standby letters of credit under the Loan Agreement are treated as a reduction of the available borrowing amount and
are subject to covenant testing.
The interest rate applicable to borrowings under the Loan Agreement is based on either, at our discretion, Bank of the West's base rate, a floating
rate or LIBOR, plus an applicable margin based on certain financial performance metrics. Our borrowing rate was 1.67%
as of December 31,
2013. The Loan Agreement contains customary covenants, including minimum fixed charge coverage ratio and leverage ratio, and limitations on
capital expenditures, mergers and acquisitions, indebtedness, liens, dispositions, dividends and investments. The Loan Agreement also contains
customary events of default. Upon an event of default, the lender has the option of terminating its credit commitment and accelerating all
obligations under the Loan Agreement. Borrowings under the Loan Agreement are collateralized by substantially all of our assets, including
intellectual property assets.
41
2014
$
2,040
2015
828
2016
430
2017
143
2018
65
Thereafter
57
$
3,563
December 31,
2013
2012
Payroll and related liabilities
$
4,244
$
3,327
Other
4,879
4,844
$
9,123
$
8,171
Year Ended December 31,
2013
2012 2011
Balance, January 1
$
2,492
$
2,017
$
3,935
Accruals
1,097
2,615
1,789
Adjustments
(186
)
(170
)
(660
)
Payments
(1,765
)
(1,970
)
(3,047
)
Balance, December 31
$
1,638
$
2,492
$
2,017