Nautilus 2015 Annual Report Download - page 28
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Please find page 28 of the 2015 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Media advertising expense of our Direct business is the largest component of selling and marketing and was as follows:
Dollars in thousands Year Ended December 31, Change
2015 2014 $ %
Media advertising $54,756
$42,643
$12,113
28.4%
Dollars in thousands Year Ended December 31, Change
2014 2013 $ %
Media advertising $42,643
$35,819
$6,824
19.1%
We continued to increase investment in media during 2015 to grow sales of the Max Trainer ® and launch the refreshed TreadClimber ® line.
General and Administrative
Dollars in thousands Year Ended December 31, Change
2015 2014 $ %
General and administrative $21,441
$22,131
$(690)
(3.1)%
As % of net sales 6.4%
8.1%
Dollars in thousands Year Ended December 31, Change
2014 2013 $ %
General and administrative $22,131
$18,705
$3,426
18.3%
As % of net sales 8.1%
8.5%
The decrease in general and administrative in 2015 compared to 2014 was due to reduced spending on intellectual property registration and legal fees for patent
enforcement of $0.7 million and state business tax refunds and credits of $0.6 million , offset by increased employee-related costs of $0.8 million , and transaction
costs related to the Octane acquisition of $0.6 million .
The increase in general and administrative in 2014 compared to 2013 was primarily due to increased employee-related costs of $0.9 million , higher spending
intellectual property registration and legal fees for patent enforcement of $0.8 million , product liability and other legal costs of $0.8 million , increased technology
and facilities infrastructure costs of $0.6 million , and higher general insurance and business taxes expenses of $0.3 million .
The decreases in general and administrative as a percentage of net sales in 2015 compared to 2014 and in 2014 compared to 2013 were primarily due to higher net
sales.
Research and Development
Dollars in thousands Year Ended December 31, Change
2015 2014 $ %
Research and development $9,904
$7,231
$2,673
37.0%
As % of net sales 2.9%
2.6%
Dollars in thousands Year Ended December 31, Change
2014 2013 $ %
Research and development $7,231
$5,562
$1,669
30.0%
As % of net sales 2.6%
2.5%
The increases in research and development in 2015 compared to 2014 and in 2014 compared to 2013 were primarily due to our investment in additional
engineering and product development headcount as we continue to supplement our new product development resources required to innovate and broaden our
product portfolio.
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