Nautilus 2015 Annual Report Download - page 31
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Please find page 31 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.The interest rate applicable to the Term Loan, as well as each advance under the revolving line of credit, is based on either Chase Bank's floating prime rate or
adjusted LIBOR, plus an applicable margin. As of December 31, 2015 our borrowing rate for both the Term Loan and line of credit advances was 1.68% .
As of December 31, 2015 , we had outstanding borrowings of $80.0 million on our term loan and $0.5 million in letters of credit issued under the Credit
Agreement with expiration dates through April 2016 . As of December 31, 2015 , we were in compliance with the financial covenants of the Credit Agreement and
approximately $19.5 million was available for borrowing under the line of credit.
Stock Repurchase Program
On November 3, 2014 , our Board of Directors approved a stock repurchase program that authorized us to repurchase outstanding shares of our common stock for
an aggregate purchase price of up to $15.0 million from time to time over a period of 24 months. The repurchase program expires November 3, 2016 . Share
repurchases will be funded with existing cash balances and repurchased shares will be retired and returned to our pool of unissued authorized shares. During 2015 ,
we repurchased 711,708 shares at an average price of $16.25 per share for an aggregate purchase price of $11.6 million . As of December 31, 2015 , $3.4 million
remains available for future repurchases.
Commitments and Contingencies
For a description of our commitments and contingencies, refer to Note 20, Commitments and Contingencies , to our Consolidated Financial Statements in Part II,
Item 8 of this report.
Non-Cancellable Contractual Obligations
Our operating cash flows include the effect of certain non-cancellable, contractual obligations. A summary of such obligations as of December 31, 2015 , including
those related to our discontinued Commercial operations, is as follows (in thousands):
Payments due by period
Total
Less than 1
year 1-3 years 3-5 years
More than 5
years
Long-term debt obligations $ 85,010
$ 17,848
$ 34,355
$ 32,807
$ —
Purchase obligations (1) 32,037
32,037 — — —
Operating lease obligations 30,272
5,327 8,331
7,883
8,731
Minimum royalty obligations 3,213
2,213 1,000 — —
Total $ 150,532 $ 57,425 $ 43,686 $ 40,690 $ 8,731
(1) Our purchase obligations are comprised primarily of inventory purchase commitments. Because substantially all of our inventory is sourced from Asia, we
have long lead times and therefore need to secure factory capacity from our vendors in advance.
Due to uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits at December 31, 2015 , we are unable to make
reasonably reliable estimates of the timing of any cash settlements with the respective taxing authorities. Therefore, approximately $5.0 million of liabilities related
to unrecognized tax benefits, including interest and penalties on uncertain tax positions, have been excluded from the contractual table above. For further
information, refer to Note 13, Income Taxes , to our Consolidated Financial Statements in Part II, Item 8 of this report.
Off-Balance Sheet Arrangements
In the ordinary course of business, we enter into agreements that require us to indemnify counterparties against third-party claims. These may include: agreements
with vendors and suppliers, under which we may indemnify them against claims arising from our use of their products or services; agreements with customers,
under which we may indemnify them against claims arising from their use or sale of our products; real estate and equipment leases, under which we may
indemnify lessors against third party claims relating to the use of their property; agreements with licensees or licensors, under which we may indemnify the
licensee or licensor against claims arising from their use of our intellectual property or our use of their intellectual property; and agreements with parties to debt
arrangements, under which we may indemnify them against claims relating to their participation in the transactions.
The nature and terms of these indemnifications vary from contract to contract, and generally a maximum obligation is not stated. We hold insurance policies that
mitigate potential losses arising from certain types of indemnifications. Because we are unable to
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