Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 25, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | NAUTILUS, INC. | ||
Entity Central Index Key | 1078207 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 31,365,817 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $346,878,044 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $45,206 | $40,979 |
Available-for-sale securities | 26,984 | 0 |
Trade receivables, net of allowances of $108 and $53 | 26,260 | 25,336 |
Inventories, net | 24,896 | 15,824 |
Prepaids and other current assets | 6,987 | 6,927 |
Income taxes receivable | 50 | 80 |
Deferred income tax assets | 12,368 | 4,441 |
Total current assets | 142,751 | 93,587 |
Property, plant and equipment, net | 9,634 | 8,499 |
Goodwill | 2,520 | 2,740 |
Other intangible assets, net | 10,575 | 12,615 |
Long-term deferred income tax assets | 9,546 | 25,725 |
Other assets | 628 | 401 |
Total assets | 175,654 | 143,567 |
Liabilities and Shareholders' Equity | ||
Trade payables | 47,574 | 37,192 |
Accrued liabilities | 9,851 | 9,123 |
Warranty obligations, current portion | 2,246 | 1,610 |
Total current liabilities | 59,671 | 47,925 |
Warranty obligations, non-current | 0 | 28 |
Income taxes payable, non-current | 3,725 | 2,577 |
Other long-term liabilities | 1,186 | 1,472 |
Total liabilities | 64,582 | 52,002 |
Commitments and contingencies (Note 17) | ||
Common stock - no par value, 75,000 shares authorized, 31,333 and 31,162 shares issued and outstanding | 8,033 | 6,769 |
Retained earnings | 103,347 | 84,552 |
Accumulated other comprehensive income (loss) | -308 | 244 |
Total shareholders' equity | 111,072 | 91,565 |
Total liabilities and shareholders' equity | $175,654 | $143,567 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheet Parenthetical [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $108 | $53 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 31,333 | 31,162 |
Common stock, shares outstanding | 31,333 | 31,162 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $274,447 | $218,803 | $193,926 |
Cost of sales | 133,872 | 112,326 | 102,889 |
Gross profit | 140,575 | 106,477 | 91,037 |
Operating expenses: | |||
Selling and marketing | 81,059 | 66,486 | 58,617 |
General and administrative | 22,131 | 18,705 | 17,669 |
Research and development | 7,231 | 5,562 | 4,163 |
Total operating expenses | 110,421 | 90,753 | 80,449 |
Operating income | 30,154 | 15,724 | 10,588 |
Other income (expense): | |||
Interest income | 63 | 14 | 18 |
Interest expense | -25 | -36 | 56 |
Other | 32 | 337 | -246 |
Total other income (expense) | 70 | 315 | -172 |
Income from continuing operations before income taxes | 30,224 | 16,039 | 10,416 |
Income tax provision (benefit) | 9,841 | -32,085 | -226 |
Income from continuing operations | 20,383 | 48,124 | 10,642 |
Discontinued operations: | |||
Income (loss) from discontinued operations before income taxes | -1,134 | -559 | 6,007 |
Income tax provision (benefit) of discontinued operations | 454 | -389 | -234 |
Income (loss) from discontinued operations | -1,588 | -170 | 6,241 |
Net income | $18,795 | $47,954 | $16,883 |
Basic net income per share | |||
Basic income per share from continuing operations (in dollars per share) | $0.65 | $1.55 | $0.34 |
Basic income (loss) per share from discontinued operations (in dollars per share) | ($0.05) | ($0.01) | $0.21 |
Basic net income per share (in dollars per share) | $0.60 | $1.54 | $0.55 |
Diluted net income per share | |||
Diluted income per share from continuing operations (in dollars per share) | $0.64 | $1.53 | $0.34 |
Diluted income (loss) per share from discontinued operations (in dollars per share) | ($0.05) | ($0.01) | $0.21 |
Diluted net income per share (in dollars per share) | $0.59 | $1.52 | $0.55 |
Shares used in per share calculations: | |||
Basic (in shares) | 31,253 | 31,072 | 30,851 |
Diluted (in shares) | 31,688 | 31,457 | 30,974 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $18,795 | $47,954 | $16,883 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized loss on marketable securities, net of income tax benefit of $(11), $0 and $0 | -18 | 0 | 0 |
Foreign currency translation, net of income tax provision (benefit) of $15, $20 and $(9) | -534 | -381 | -83 |
Comprehensive income | $18,243 | $47,573 | $16,800 |
Recovered_Sheet1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($11) | $0 | $0 |
Foreign currency translation tax provision (benefit) | $15 | $20 | ($9) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2011 | $31,953 | |||
Balance, shares at Dec. 31, 2011 | 30,747 | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | |||
Common Stocks, Including Additional Paid in Capital | 6,103 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 16,883 | 16,883 | ||
Unrealized loss on marketable securities, net of income tax benefit of $(11) | 0 | |||
Foreign currency translation adjustment, including income tax expense (benefit) | -83 | -83 | ||
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | -6,170 | |||
Foreign currency translation tax provision (benefit) | -9 | |||
Stock-based compensation expense | 630 | 630 | ||
Common stock issued under equity compensation plan, shares | 177 | |||
Common stock issued under equity compensation plan | 113 | 113 | ||
Retained earnings | 36,598 | |||
Accumulated other comprehensive income (loss) | 625 | |||
Balance at Dec. 31, 2012 | 43,326 | |||
Balance, shares at Dec. 31, 2012 | 30,924 | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | |||
Common Stocks, Including Additional Paid in Capital | 6,769 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 47,954 | 47,954 | ||
Unrealized loss on marketable securities, net of income tax benefit of $(11) | 0 | |||
Foreign currency translation adjustment, including income tax expense (benefit) | -381 | -381 | ||
Foreign currency translation tax provision (benefit) | 20 | |||
Stock-based compensation expense | 454 | 454 | ||
Common stock issued under equity compensation plan, shares | 238 | |||
Common stock issued under equity compensation plan | 357 | 357 | ||
Tax deficiency related to stock-based awards | -145 | |||
Retained earnings | 84,552 | 84,552 | ||
Accumulated other comprehensive income (loss) | 244 | 244 | ||
Balance at Dec. 31, 2013 | 91,565 | |||
Balance, shares at Dec. 31, 2013 | 31,162 | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | -11 | |||
Common Stocks, Including Additional Paid in Capital | 8,033 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 18,795 | 18,795 | ||
Unrealized loss on marketable securities, net of income tax benefit of $(11) | -18 | -18 | ||
Foreign currency translation adjustment, including income tax expense (benefit) | -534 | -534 | ||
Foreign currency translation tax provision (benefit) | 15 | |||
Stock-based compensation expense | 1,066 | 1,066 | ||
Common stock issued under equity compensation plan, shares | 171 | |||
Common stock issued under equity compensation plan | 378 | 378 | ||
Tax deficiency related to stock-based awards | -180 | |||
Retained earnings | 103,347 | 103,347 | ||
Accumulated other comprehensive income (loss) | -308 | -308 | ||
Balance at Dec. 31, 2014 | $111,072 | |||
Balance, shares at Dec. 31, 2014 | 31,333 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Income from continuing operations | $20,383 | $48,124 | $10,642 |
Income (loss) from discontinued operations | -1,588 | -170 | 6,241 |
Net income | 18,795 | 47,954 | 16,883 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 4,024 | 3,344 | 3,269 |
Bad debt expense (reduction) | 104 | 588 | -13 |
Inventory lower-of-cost-or-market adjustments | 457 | 557 | 402 |
Stock-based compensation expense | 1,066 | 454 | 630 |
(Gain) loss on asset disposals | 145 | 2 | -30 |
Deferred income taxes, net of valuation allowances | 8,007 | -32,814 | 145 |
Excess tax deficiency related to stock-based awards | 180 | 145 | 0 |
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | 0 | 0 | -6,170 |
Changes in operating assets and liabilities: | |||
Trade receivables | -1,331 | -4,417 | 1,928 |
Inventories | -9,560 | 2,388 | -7,573 |
Prepaids and other current assets | -314 | -1,174 | -1,314 |
Income taxes receivable | 30 | -91 | 464 |
Trade payables | 10,456 | 4,487 | 4,189 |
Accrued liabilities, including warranty obligations | 2,313 | -337 | 3 |
Net cash provided by operating activities | 34,372 | 21,086 | 12,813 |
Cash flows from investing activities: | |||
Proceeds from sale of discontinued operations | 0 | 116 | 410 |
Proceeds from other asset sales | 0 | 5 | 6 |
Purchases of software and equipment | -3,181 | -3,590 | -2,442 |
Purchases of available-for-sale-securities | -37,434 | 0 | 0 |
Proceeds from maturities of available-for-sale securities | 10,450 | 0 | 0 |
Net cash used in investing activities | -30,165 | -3,469 | -2,026 |
Cash flows from financing activities: | |||
Repayment of long-term borrowings | 0 | 0 | -5,000 |
Proceeds from exercise of stock options | 378 | 357 | 113 |
Excess tax deficiency related to stock-based awards | -180 | -145 | 0 |
Net cash provided by (used in) financing activities | 198 | 212 | -4,887 |
Effect of exchange rate changes on cash and cash equivalents | -178 | -57 | -120 |
Increase in cash and cash equivalents | 4,227 | 17,772 | 5,780 |
Cash and cash equivalents, beginning of year | 40,979 | 23,207 | 17,427 |
Cash and cash equivalents, end of year | 45,206 | 40,979 | 23,207 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net | -923 | -450 | -277 |
Cash paid for interest | -25 | -36 | -544 |
Capital expenditures incurred but not yet paid | $86 | $0 | $0 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Organization and Business | ||||||||||||
Nautilus was founded in 1986 and incorporated in the State of Washington in 1993. Our headquarters are located in Vancouver, Washington. | ||||||||||||
We are committed to providing innovative, quality solutions to help people achieve their fitness goals through a fit and healthy lifestyle. Our principal business activities include designing, developing, sourcing and marketing high-quality cardio and strength fitness products and related accessories for consumer use, primarily in the United States and Canada, but also in international markets outside North America. Our products are sold under some of the most-recognized brand names in the fitness industry: Nautilus®, Bowflex®, Schwinn® and Universal®. | ||||||||||||
We market our products through two distinct distribution channels, Direct and Retail, which we consider to be separate business segments. Our Direct business offers products directly to consumers through television advertising, catalogs and the Internet. Our Retail business offers our products through a network of independent retail companies with stores and websites located in the United States and internationally. We also derive a portion of our revenue from the licensing of our brands and intellectual property. | ||||||||||||
Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and relate to Nautilus, Inc. and its subsidiaries, all of which are wholly-owned, directly or indirectly. Intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||
Discontinued Operations | ||||||||||||
Results from discontinued operations relate to the disposal of our former Commercial business, which began in 2009 and was completed in April 2011. We reached substantial completion of asset liquidation at December 31, 2012. However, we continue to have legal and accounting expenses as we work with authorities on final deregistration of each entity and product liability and other legal expenses associated with product previously sold into the Commercial channel. | ||||||||||||
Results of operations related to the Commercial business have been presented in the consolidated financial statements as discontinued operations for all periods presented. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities in the financial statements. Our most significant estimates relate to the following: | ||||||||||||
• | Revenue recognition; | |||||||||||
• | Sales discounts and allowances; | |||||||||||
• | Allowance for uncollectible trade receivables; | |||||||||||
• | Valuation of excess and obsolete inventory; | |||||||||||
• | Goodwill and other long-term assets valuation; | |||||||||||
• | Product warranty obligations; | |||||||||||
• | Litigation and loss contingencies; | |||||||||||
• | Deferred tax assets and the related valuation allowance; and | |||||||||||
• | Unrecognized tax benefits. | |||||||||||
Actual results could differ from our estimates. | ||||||||||||
Concentrations | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents held in bank accounts in excess of federally-insured limits and trade receivables. Trade receivables are generally unsecured and therefore collection is affected by the economic conditions in each of our principal markets. | ||||||||||||
We rely on third-party contract manufacturers in Asia for substantially all of our products and for certain product engineering support. Business operations could be disrupted by natural disasters, difficulties in transporting products from non-U.S. suppliers, as well as political, social or economic instability in the countries where contract manufacturers or their vendors or customers conduct business. While any such contract manufacturing arrangement could be replaced over time, the temporary loss of the services of any primary contract manufacturer could delay product shipments and cause a significant disruption in our operations. | ||||||||||||
We derive a significant portion of our Net Sales from a small number of our Retail customers. A loss of business from one or more of these large customers, if not replaced with new business, would negatively affect our operating results and cash flows. In 2014, 2013 and 2012, one customer accounted for more than 10%, but less than 15%, of our Net Sales. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
All highly liquid investments with maturities of three months or less at purchase are considered to be cash equivalents. As of December 31, 2014, cash equivalents consisted of money market funds, certificates of deposit, commercial paper, and variable-rate demand notes and totaled $24.1 million. As of December 31, 2013, we did not have any cash equivalents. | ||||||||||||
Available-For-Sale Securities | ||||||||||||
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Marketable securities with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Unrealized holding gains and losses, which are immaterial, are excluded from earnings and are reported net of tax in other comprehensive income until realized. Dividend and interest income is recognized when earned. Realized gains and losses, which were immaterial in 2014, are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | ||||||||||||
We periodically evaluate whether declines in fair values of our investments below their cost are "other-than-temporary." This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investment until a forecasted recovery occurs. | ||||||||||||
For additional information, refer to Note 3, Fair Value Measurements. | ||||||||||||
Inventories | ||||||||||||
Inventories are stated at the lower of cost or market, with cost determined based on the first-in, first-out method. We establish inventory allowances for excess, slow-moving and obsolete inventory based on inventory levels, expected product life and forecasted sales. Inventories are written down to market value based on historical demand, competitive factors, changes in technology and product lifecycles. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment is stated at cost, net of accumulated depreciation. Improvements or betterments which add new functionality or significantly extend the life of an asset are capitalized. Expenditures for maintenance and repairs are expensed as incurred. The cost of assets retired, or otherwise disposed of, and the related accumulated depreciation, are removed from the accounts at the time of disposal. Gains and losses resulting from asset sales and dispositions are recognized in the period in which assets are disposed. Depreciation is recognized, using the straight-line method, over the lesser of the estimated useful lives of the assets or, in the case of leasehold improvements, the lease term, including renewal periods if we expect to exercise our renewal options. Depreciation on computer equipment, machinery and equipment and furniture and fixtures is determined based on estimated useful lives, which generally range from three-to-seven years. | ||||||||||||
Goodwill | ||||||||||||
Goodwill consists of the excess of acquisition costs over the fair values of net assets acquired in business combinations. We review goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount may be impaired. For this purpose, goodwill is evaluated at the reporting unit level. Our goodwill is an asset of our Direct reporting unit. We performed an assessment of goodwill in the fourth quarters of 2014, 2013 and 2012 and concluded that circumstances did not more likely than not indicate an impairment had occurred. For further information regarding goodwill, see Note 7, Goodwill. | ||||||||||||
Other Intangible Assets | ||||||||||||
Finite-lived intangible assets, primarily acquired patents and patent rights, are stated at cost, net of accumulated amortization. We recognize amortization expense for our finite-lived intangible assets on a straight-line basis over the estimated useful lives. | ||||||||||||
Indefinite-lived intangible assets consist of acquired trademarks. Indefinite-lived intangible assets are stated at cost and are not amortized; instead, they are tested for impairment at least annually. We review our acquired trademarks for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the assets may be impaired. The fair value of trademarks is estimated using the relief from royalty method to estimate the value of the cost savings and a discounted cash flows method to estimate the value of future income. The sum of these two values for each trademark is the fair value of the trademark. If the carrying amount of trademarks exceeds the estimated fair value, we calculate impairment as the excess of carrying amount over the estimate of fair value. We tested our acquired trademarks for impairment in the fourth quarters of 2014, 2013 and 2012 and determined that no impairment was indicated. For further information regarding other intangible assets, see Note 8, Other Intangible Assets. | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Long-lived assets, including property, plant and equipment and finite-lived intangible assets, are evaluated for impairment when events or circumstances indicate the carrying value may be impaired. When such an event or condition occurs, we estimate the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to determine whether a potential impairment exists. If the carrying value exceeds estimated future undiscounted cash flows, we record impairment expense to reduce the carrying value of the asset to its estimated fair value. No impairment charges were recorded in 2014, 2013 or 2012. | ||||||||||||
Revenue Recognition | ||||||||||||
Direct and Retail product sales and shipping revenues are recorded when products are shipped and title passes to customers. In most instances, Retail sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss to the customer upon our delivery to the carrier. For Direct sales, revenue is generally recognized when products are shipped. Revenue is recognized net of applicable sales incentives, such as promotional discounts, rebates and return allowances. We estimate the revenue impact of incentive programs based on the planned duration of the program and historical experience. | ||||||||||||
Many Direct business customers finance their purchases through a third-party credit provider, for which we pay a commission or financing fee to the credit provider. Revenue for such transactions is recognized based on the sales price charged to the customer and the related commission or financing fee is included in Selling and Marketing expense. | ||||||||||||
Sales Discounts and Returns Allowance | ||||||||||||
Product sales and shipping revenues are reported net of promotional discounts and return allowances. We estimate the revenue impact of retail sales incentive programs based on the planned duration of the program and historical experience. If the amount of sales incentives is reasonably estimable, the impact of such incentives is recorded at the later of the time the customer is notified of the sales incentive or the time of the sale. We estimate our liability for product returns based on historical experience and record the expected obligation as a reduction of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur. Activity in our sales discounts and returns allowance was as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 4,106 | $ | 4,990 | $ | 5,113 | ||||||
Charges to reserve | 15,285 | 13,345 | 11,730 | |||||||||
Reductions for sales discounts and returns | (15,095 | ) | (14,229 | ) | (11,853 | ) | ||||||
Balance, December 31 | $ | 4,296 | $ | 4,106 | $ | 4,990 | ||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||
Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and excluded from revenue. | ||||||||||||
Shipping and Handling Fees | ||||||||||||
Shipping and handling fees billed to customers are recorded gross and included in both revenue and cost of sales. | ||||||||||||
Cost of Sales | ||||||||||||
Cost of Sales primarily consists of: inventory costs; royalties paid to third parties; employment and occupancy costs of warehouse and distribution facilities, including depreciation of improvements and equipment; transportation expenses; product warranty expenses; distribution information systems expenses; and allocated expenses for shared administrative functions. | ||||||||||||
Product Warranty Obligations | ||||||||||||
Our products carry limited, defined warranties for defects in materials or workmanship which, according to their terms, generally obligate us to pay the costs of supplying and shipping replacement parts to customers and, in certain instances, pay for labor and other costs to service products. Outstanding product warranty periods range from thirty days to, in limited circumstances, the lifetime of certain product components. We record a liability at the time of sale for the estimated costs of fulfilling future warranty claims. If necessary, we adjust the liability for specific warranty-related matters when they become known and are reasonably estimable. Estimated warranty expense is included in Cost of Sales, based on historical warranty claim experience and available product quality data. Warranty expense is affected by the performance of new products, significant manufacturing or design defects not discovered until after the product is delivered to the customer, product failure rates, and higher or lower than expected repair costs. If warranty expense differs from previous estimates, or if circumstances change such that the assumptions inherent in previous estimates are no longer valid, the amount of product Warranty Obligations is adjusted accordingly. | ||||||||||||
Litigation and Loss Contingencies | ||||||||||||
From time to time, we may be involved in various claims, lawsuits and other proceedings. These legal and tax proceedings involve uncertainty as to the eventual outcomes and losses which may be realized when one or more future events occur or fail to occur. We record expenses for litigation and loss contingencies as a component of General and Administrative expense when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When a loss contingency is not both probable and estimable, we do not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then we disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. | ||||||||||||
Advertising and Promotion | ||||||||||||
We expense our advertising and promotion costs as incurred. Production costs of television advertising commercials are recorded as prepaid expenses until the initial broadcast, at which time such costs are expensed. Advertising and promotion costs are included in Selling and Marketing expenses and totaled $42.6 million, $35.8 million and $30.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. Prepaid advertising and promotion costs were $1.4 million and $2.2 million as of December 31, 2014 and 2013, respectively. | ||||||||||||
Research and Development | ||||||||||||
Internal research and development costs, which primarily consist of salaries and wages, employee benefits, expenditures for materials, and fees to use licensed technologies, are expensed as incurred. Third party research and development costs for products under development or being researched, if any, are expensed as the contracted work is performed. | ||||||||||||
Income Taxes | ||||||||||||
We account for income taxes based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to be in effect when the temporary differences are expected to be included, as income or expense, in the applicable tax return. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period of the enactment. Valuation allowances are provided against deferred income tax assets if we determine it is more likely than not that such assets will not be realized. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained based on the technical merits of the position upon examination, including resolutions of any related appeals or litigation. | ||||||||||||
Foreign Currency Translation | ||||||||||||
We translate the accounts of our non-U.S. subsidiaries into U.S. dollars as follows: revenues, expenses, gains and losses are translated at weighted-average exchange rates during the year; and assets and liabilities are translated at the exchange rate on the balance sheet date. Translation gains and losses are reported in our Consolidated Balance Sheets as a component of Accumulated Other Comprehensive Income. In the fourth quarter of 2012, we substantially completed the liquidation of our investment in foreign subsidiaries formerly associated with the Commercial business. As a result, an accumulated translation adjustment of $6.2 million was removed from accumulated other comprehensive income and recognized as a gain of the discontinued operations. | ||||||||||||
Gains and losses arising from foreign currency transactions, including transactions between us and our non-U.S. subsidiaries, are recorded as a component of Other Income (Expense) in our Consolidated Statements of Operations. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
The carrying values of Cash and Cash Equivalents, Trade Receivables, Prepaids and Other Current Assets, Trade Payables and Accrued Liabilities approximate fair value due to their short maturities. | ||||||||||||
For additional information on financial instruments recorded at fair value on a recurring basis as of December 31, 2014, refer to Note 3, Fair Value Measurements. We did not have any financial instruments that were recorded at fair value on a recurring basis at December 31, 2013. | ||||||||||||
Stock-Based Compensation | ||||||||||||
We recognize stock-based compensation expense on a straight-line basis over the applicable vesting period, based on the grant-date fair value of the award. To the extent a stock-based award is subject to performance conditions, the amount of expense recorded in a given period, if any, reflects our assessment of the probability of achieving the performance targets. | ||||||||||||
Fair value of stock options is estimated using the Black-Scholes-Merton option valuation model; fair value of performance share unit awards and restricted stock unit awards is based on the closing market price on the day preceding the grant. | ||||||||||||
Income Per Share Amounts | ||||||||||||
Basic income per share amounts were computed using the weighted average number of common shares outstanding. Diluted income per share amounts were calculated using the number of basic weighted average shares outstanding increased by dilutive potential common shares related to stock-based awards, as determined by the treasury stock method. | ||||||||||||
New Accounting Pronouncements | ||||||||||||
ASU 2015-01 | ||||||||||||
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20).” ASU 2015-01 simplifies income statement presentation by eliminating the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of ASU 2015-01 will not have any effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-17 | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, "Business Combinations (Topic 805)". ASU 2014-17 provides guidance on whether and at what threshold an acquired entity that is a business or nonprofit entity (either public or nonpublic), can apply pushdown accounting in its separate financial statements upon the occurrence of an event in which an acquirer obtains control of the acquired entity. ASU 2014-17 was effective on November 18, 2014. Since ASU 2014-17 relates to pushdown accounting in separate financial statements upon the occurrence of an event whereby an acquirer obtains control of an acquired entity, our adoption of ASU 2014-17 in November 2014 did not have any effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-16 | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-16, "Derivatives and Hedging (Topic 815)". ASU 2014-16 provides guidance to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The objective of ASU 2014-16 is to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for these financial instruments. ASU 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. We do not expect the adoption of ASU 2014-16 to have a material effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-15 | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40)". ASU 2014-15 provides guidance related to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosure. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for interim and annual periods thereafter. Early application is permitted. We do not expect the adoption of ASU 2014-15 to have a material effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-12 | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718)". ASU No. 2014-12 addresses accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 indicates that, in such situations, the performance target should be treated as a performance condition and, accordingly, the performance target should not be reflected in estimating the grant-date fair value of the award. Instead, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We do not expect the adoption of ASU 2014-12 to have a material effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-09 | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and the International Accounting Standards Board that: | ||||||||||||
• removes inconsistencies and weaknesses in revenue requirements; | ||||||||||||
• provides a more robust framework for addressing revenue issues; | ||||||||||||
• improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; | ||||||||||||
• provides more useful information to users of financial statements through improved disclosure requirements; and | ||||||||||||
• simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. | ||||||||||||
ASU 2014-09 is effective for annual and interim periods beginning on or after December 15, 2016. While we do not expect the adoption of ASU 2014-09 to have a material effect on our business, we are still evaluating any potential impact that adoption of | ||||||||||||
ASU 2014-09 may have on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2014-08 | ||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". ASU 2014-08 amends the definition for what types of asset disposals are to be considered discontinued operations, and amends the required disclosures for discontinued operations and assets held for sale. ASU 2014-08 also enhances the convergence of the FASB’s and the International Accounting Standard Board’s reporting requirements for discontinued operations. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. We do not expect the adoption of ASU 2014-08 to have a material effect on our financial position, results of operations or cash flows. | ||||||||||||
ASU 2013-11 | ||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". ASU 2013-11 amends the guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss ("NOL") carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 was effective for annual and interim periods for fiscal years beginning after December 15, 2013. Since ASU 2013-11 relates only to the presentation of unrecognized tax benefits, our adoption of ASU 2013-11 in January 2014 did not have a material effect on our financial position, results of operations or cash flows. |
Discontinued_Operation
Discontinued Operation | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Discontinued Operation | DISCONTINUED OPERATIONS | |||||||||||
Following is a summary of certain financial information regarding our discontinued operations (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | — | $ | — | $ | — | ||||||
Loss from discontinued operations | (1,134 | ) | (559 | ) | (163 | ) | ||||||
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | — | — | 6,170 | |||||||||
Income tax (provision) benefit | (454 | ) | 389 | 234 | ||||||||
Total income (loss) from discontinued operations | $ | (1,588 | ) | $ | (170 | ) | $ | 6,241 | ||||
The following table summarizes liabilities for exit costs related to discontinued operations, included in Accrued Liabilities and Other Long-Term Liabilities in our Consolidated Balance Sheets (in thousands): | ||||||||||||
Facilities | Severance and Benefits | |||||||||||
Leases | ||||||||||||
Balance as of January 1, 2012 | $ | 1,929 | $ | 175 | ||||||||
Adjustments | (390 | ) | — | |||||||||
Payments | (421 | ) | (175 | ) | ||||||||
Balance as of December 31, 2012 | 1,118 | — | ||||||||||
Payments | (287 | ) | — | |||||||||
Balance as of December 31, 2013 | 831 | — | ||||||||||
Payments | (258 | ) | — | |||||||||
Balance as of December 31, 2014 | $ | 573 | $ | — | ||||||||
We expect the lease obligations to be paid out through 2016. |
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | (3) FAIR VALUE MEASUREMENTS | ||||||||||||||||
Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories: | |||||||||||||||||
• | Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date; | ||||||||||||||||
• | Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; or observable market prices in markets with insufficient volume and/or infrequent transactions; and | ||||||||||||||||
• | Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value. | ||||||||||||||||
Assets measured at fair value on a recurring basis were as follows (in thousands): | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash Equivalents | |||||||||||||||||
Money market funds | $ | 2,591 | $ | — | $ | — | $ | 2,591 | |||||||||
Certificates of deposit(1) | — | 980 | — | 980 | |||||||||||||
Commercial paper | — | 12,497 | — | 12,497 | |||||||||||||
Variable rate demand notes | — | 8,000 | — | 8,000 | |||||||||||||
Total Cash Equivalents | 2,591 | 21,477 | — | 24,068 | |||||||||||||
Available-for-Sale Securities | |||||||||||||||||
Certificates of deposit(1) | — | 14,202 | — | 14,202 | |||||||||||||
Corporate bonds | — | 12,782 | — | 12,782 | |||||||||||||
Total Available-for-Sale Securities | — | 26,984 | — | 26,984 | |||||||||||||
Total assets measured at fair value | $ | 2,591 | $ | 48,461 | $ | — | $ | 51,052 | |||||||||
(1) All certificates of deposit are within current FDIC insurance limits. | |||||||||||||||||
We did not have any assets or liabilities measured at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||
We recognize transfers between levels at the actual date of the event or change in circumstance that caused the transfer. There were no transfers between levels during the year ended December 31, 2014. | |||||||||||||||||
We did not have any changes to our valuation techniques during the year ended December 31, 2014. | |||||||||||||||||
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Level 1 investments valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 investments valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in other comprehensive income until realized. During the year ended December 31, 2014, we did not record any other-than-temporary impairments on our financial assets required to be measured at fair value on a nonrecurring basis. | |||||||||||||||||
We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily Property, Plant and Equipment, Goodwill, Other Intangible Assets and certain other long-lived assets in connection with impairment evaluations. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. Other than our annual Goodwill and indefinite-lived trade names impairment valuations effective as of October 1, 2014 and 2013, we did not perform any valuations on assets or liabilities that are valued at fair value on a nonrecurring basis. |
Trade_Receivables
Trade Receivables | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Receivables [Abstract] | ||||||||||||
Trade Receivables | TRADE RECEIVABLES | |||||||||||
Trade receivables, net, consisted of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Trade receivables | $ | 26,368 | $ | 25,389 | ||||||||
Allowance for doubtful accounts | (108 | ) | (53 | ) | ||||||||
$ | 26,260 | $ | 25,336 | |||||||||
Changes in our allowance for doubtful trade receivables were as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 53 | $ | 93 | $ | 300 | ||||||
Charges to (reversals of) bad debt expense | 104 | 588 | (13 | ) | ||||||||
Writeoffs, net of recoveries | (49 | ) | (628 | ) | (194 | ) | ||||||
Balance, December 31 | $ | 108 | $ | 53 | $ | 93 | ||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | INVENTORIES | |||||||
Inventories consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 23,765 | $ | 14,259 | ||||
Parts and components | 1,131 | 1,565 | ||||||
$ | 24,896 | $ | 15,824 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Property, plant and equipment consisted of the following (in thousands): | ||||||||||||
Estimated | December 31, | |||||||||||
Useful Life | ||||||||||||
(in years) | 2014 | 2013 | ||||||||||
Automobiles | 5 | $ | 23 | $ | — | |||||||
Leasehold improvements | 5 | to | 20 | 2,144 | 2,869 | |||||||
Computer equipment | 3 | to | 7 | 25,397 | 35,554 | |||||||
Machinery and equipment | 3 | to | 5 | 6,709 | 5,648 | |||||||
Furniture and fixtures | 5 | 1,108 | 688 | |||||||||
Work in progress (1) | N/A | 421 | 4,281 | |||||||||
Total cost | 35,802 | 49,040 | ||||||||||
Accumulated depreciation | (26,168 | ) | (40,541 | ) | ||||||||
$ | 9,634 | $ | 8,499 | |||||||||
(1) Work in progress includes production tooling construction in progress and, in 2013, internal use software development. | ||||||||||||
Depreciation expense was as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 1,983 | $ | 1,254 | $ | 1,199 | ||||||
Goodwill
Goodwill | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | GOODWILL | |||
All goodwill is assigned to our Direct reporting unit. The rollforward of Goodwill was as follows (in thousands): | ||||
Balance, January 1, 2012 | $ | 2,873 | ||
Currency exchange rate adjustment | 67 | |||
Balance, December 31, 2012 | 2,940 | |||
Currency exchange rate adjustment | (200 | ) | ||
Balance, December 31, 2013 | 2,740 | |||
Currency exchange rate adjustment | (220 | ) | ||
Balance, December 31, 2014 | $ | 2,520 | ||
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Other Intangible Assets | OTHER INTANGIBLE ASSETS | |||||||||||
Other intangible assets consisted of the following (in thousands): | ||||||||||||
Estimated | December 31, | |||||||||||
Useful Life | ||||||||||||
(in years) | 2014 | 2013 | ||||||||||
Indefinite life trademarks | N/A | $ | 9,052 | $ | 9,052 | |||||||
Patents | 8 | to | 16 | 18,154 | 18,154 | |||||||
27,206 | 27,206 | |||||||||||
Accumulated amortization - patents | (16,631 | ) | (14,591 | ) | ||||||||
$ | 10,575 | $ | 12,615 | |||||||||
Amortization expense was as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Amortization expense | $ | 2,040 | $ | 2,050 | $ | 2,050 | ||||||
Future amortization of patents is as follows (in thousands): | ||||||||||||
2015 | $ | 828 | ||||||||||
2016 | 430 | |||||||||||
2017 | 143 | |||||||||||
2018 | 65 | |||||||||||
2019 | 35 | |||||||||||
Thereafter | 22 | |||||||||||
$ | 1,523 | |||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Accrued Liabilities | ACCRUED LIABILITIES | |||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Payroll and related liabilities | $ | 5,058 | $ | 4,244 | ||||
Other | 4,793 | 4,879 | ||||||
$ | 9,851 | $ | 9,123 | |||||
Product_Warranties
Product Warranties | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||
Product Warranties | PRODUCT WARRANTIES | |||||||||||
Changes in our product warranty obligations were as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 1,638 | $ | 2,492 | $ | 2,017 | ||||||
Accruals | 2,264 | 1,097 | 2,615 | |||||||||
Adjustments | — | (186 | ) | (170 | ) | |||||||
Payments | (1,656 | ) | (1,765 | ) | (1,970 | ) | ||||||
Balance, December 31 | $ | 2,246 | $ | 1,638 | $ | 2,492 | ||||||
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS |
Line of Credit | |
On December 5, 2014, we entered into a Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A. ("Chase Bank") that provides for a $20.0 million maximum revolving secured credit line. The line of credit is available through December 5, 2017 for working capital, letters of credit and general corporate purposes. Borrowing availability under the Credit Agreement is subject to our compliance with certain financial and operating covenants at the time borrowings are requested. Letters of credit under the Credit Agreement are treated as a reduction of the available borrowing amount and are subject to covenant testing. | |
The interest rate applicable to each advance under the Credit Agreement is based on either Chase Bank's floating prime rate or adjusted LIBOR, plus an applicable margin. Our borrowing rate was 1.17% as of December 31, 2014. The Credit Agreement contains customary covenants, including minimum fixed charge coverage ratio and asset coverage ratio, and limitations on capital expenditures, mergers and acquisitions, indebtedness, liens, dispositions, dividends and investments. Borrowings under the Credit Agreement are collateralized by substantially all of our assets pursuant to a continuing security agreement. The Credit Agreement also contains customary events of default. Upon an event of default, the lender may terminate its credit line commitment, accelerate all outstanding obligations and exercise its remedies under the continuing security agreement. | |
As of December 31, 2014, we had no outstanding borrowings and $0.6 million in letters of credit issued under the Credit Agreement with expiration dates through April 2015. As of December 31, 2014, we were in compliance with the financial covenants of the Credit Agreement and approximately $19.4 million was available for borrowing. | |
Related Party Note Payable | |
On September 3, 2010, we entered into a Note Purchase Agreement (the “Purchase Agreement”) with certain entities (collectively, the “Sherborne Purchasers”) under common control of Sherborne Investors GP, LLC and its affiliates (collectively “Sherborne”). Sherborne was formerly our largest shareholder and is controlled by Edward J. Bramson, our former Chairman and Chief Executive Officer, and Craig L. McKibben, a former member of our Board of Directors. | |
Pursuant to the Purchase Agreement, we issued to the Sherborne Purchasers $6.1 million in aggregate principal amount at maturity of Increasing Rate Senior Discount Notes (the “Notes”). The Notes had an original principal amount totaling $5.0 million and an original maturity date of December 31, 2012. On March 12, 2012, the maturity date of the Notes was automatically extended under certain terms of the Purchase Agreement to May 2, 2013. | |
On July 19, 2011, beneficial interest in the Notes was assigned by the Sherborne Purchasers pro-rata to their respective investors in the manner permitted by the Purchase Agreement. Such assignment was made in connection with the resignation of Messrs. Bramson and McKibben from their respective positions with Nautilus on May 26, 2011, and the subsequent pro-rata distribution by certain Sherborne-affiliated entities to their respective investors of our common stock owned by such entities. | |
We repaid all amounts outstanding under the Notes on March 30, 2012 and interest paid related to the Notes was $0.5 million during 2012 . If all of the Notes were paid on the original maturity date, the effective rate of interest over the term of the Purchase Agreement would have been approximately 8.7% per annum, which was the rate at which interest expense was accrued in periods preceding the repayment date. The actual effective rate of interest through the repayment date was approximately 6.4% per annum. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | lowing is a reconciliation of the U.S. statutory federal income tax rate with our effective income tax rate for continuing operations: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State tax, net of U.S. federal tax benefit | 2.5 | 2.9 | 1.1 | |||||||||
Non-U.S. income taxes | (0.3 | ) | 1.2 | — | ||||||||
Nondeductible operating expenses | 0.2 | (0.4 | ) | 0.4 | ||||||||
Research and development credit | (2.4 | ) | (0.7 | ) | — | |||||||
Change in deferred tax measurement rate | 0.1 | 0.2 | 0.1 | |||||||||
Change in uncertain tax positions | 1.5 | 2.2 | (6.5 | ) | ||||||||
Expiration of capital loss carryforward | — | 26.9 | — | |||||||||
Change in valuation allowance | (4.1 | ) | (267.6 | ) | (32.3 | ) | ||||||
Other | 0.1 | 0.2 | — | |||||||||
Effective income tax rate | 32.6 | % | (200.1 | )% | (2.2 | )% | ||||||
Deferred Income Taxes | ||||||||||||
Individually significant components of deferred income tax assets (liabilities) were as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Accrued liabilities | $ | 3,510 | $ | 3,230 | ||||||||
Allowance for doubtful accounts | 33 | 20 | ||||||||||
Inventory valuation | 377 | 312 | ||||||||||
Capitalized indirect inventory costs | 295 | 159 | ||||||||||
Stock-based compensation expense | 558 | 376 | ||||||||||
Net operating loss carryforward | 19,742 | 35,635 | ||||||||||
Basis difference on long-lived assets | 3,289 | 4,412 | ||||||||||
Credit carryforward | 4,565 | 3,422 | ||||||||||
Other | 339 | 332 | ||||||||||
Gross deferred income tax assets | 32,708 | 47,898 | ||||||||||
Valuation allowance | (6,156 | ) | (12,944 | ) | ||||||||
Deferred income tax assets, net of valuation allowance | 26,552 | 34,954 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Prepaid advertising | (467 | ) | (793 | ) | ||||||||
Other prepaids | (696 | ) | (592 | ) | ||||||||
Basis difference on long-lived assets | (3,355 | ) | (2,938 | ) | ||||||||
Undistributed earnings of foreign subsidiaries | (179 | ) | (177 | ) | ||||||||
Other | (1 | ) | (288 | ) | ||||||||
Deferred income tax liabilities | (4,698 | ) | (4,788 | ) | ||||||||
Net deferred income tax asset | $ | 21,854 | $ | 30,166 | ||||||||
Our net deferred income tax asset (liability) was recorded on our Consolidated Balance Sheets as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred income tax assets | $ | 12,368 | $ | 4,441 | ||||||||
Non-current deferred income tax assets | 9,546 | 25,725 | ||||||||||
Other long-term liabilities | (60 | ) | — | |||||||||
Net deferred income tax asset | $ | 21,854 | $ | 30,166 | ||||||||
The table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2014 and 2013, that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Instead, equity will be increased by $0.8 million if and when such deferred tax assets are ultimately realized. We use tax law ordering when determining when excess tax benefits have been realized. | ||||||||||||
We account for income taxes based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. We have recorded a valuation allowance to reduce our deferred income tax assets to the amount we believe is more likely than not to be realized. Evaluating the need for, and amount of, a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence on a jurisdiction-by-jurisdiction basis. Such judgments require us to interpret existing tax law and other published guidance as applied to our circumstances. As part of this assessment, we consider both positive and negative evidence. The weight given to the potential effect of positive and negative evidence must be commensurate with the extent to which the strength of the evidence can be objectively verified. | ||||||||||||
During 2008, we determined that it was no longer more likely than not that the tax benefits from the existing U.S. deferred tax assets would be realized due to the substantial amount of the cumulative accounting losses realized in the recent years in the U.S. and the large taxable losses incurred in the U.S. in 2007 and 2008. Accordingly, we established a full valuation allowance against our U.S. net deferred tax assets in 2008. | ||||||||||||
Each quarter, we assess the total weight of positive and negative evidence including cumulative income or loss for the past three years and forecasted taxable income and re-evaluate whether any adjustments or release of all or any portion of valuation allowance is appropriate. As a result of this evaluation, in the second quarter of 2013, we concluded that a majority of the existing valuation allowance on our domestic deferred income tax assets was no longer required, accordingly, a tax benefit of $38.9 million was recorded during 2013 related to the reduction of our existing valuation allowance. Further in the fourth quarter of 2014, after re-evaluating the potential realization of the remainder of our deferred income tax assets, we concluded that, as of December 31, 2014, a portion of the existing valuation allowance against state net operating loss deferred tax assets was no longer necessary. Accordingly, an income tax benefit of $1.2 million was recorded in the fourth quarter of 2014 related to the reduction of our existing valuation allowance. | ||||||||||||
As of December 31, 2014, we have a valuation allowance against net deferred income tax assets of $6.2 million. Of the remaining valuation allowance, $2.9 million primarily relates to domestic credit carryforwards as we currently do not anticipate to generate the income of appropriate character to utilize those credits. The remainder, $3.3 million relates to foreign net operating loss carryfowards. Should it be determined in the future that it is more likely than not that our domestic deferred income tax assets will be realized, an additional valuation allowance would be released during the period in which such an assessment is made. There have been no material changes to our foreign operations since December 31, 2013 and, accordingly, we maintain our existing valuation allowance on foreign deferred income tax assets in such jurisdictions at December 31, 2014. | ||||||||||||
Income Tax Carryforwards | ||||||||||||
As of December 31, 2014, we had the following income tax carryforwards (in millions): | ||||||||||||
Amount | Expires in | |||||||||||
Net operating loss carryforwards | ||||||||||||
U.S. Federal | $ | 37.2 | 2029 - 2031 | |||||||||
U.S. State | 85.3 | 2015 - 2031 | ||||||||||
Switzerland | 15 | 2015 - 2020 | ||||||||||
Italy | 1.2 | 2015 - 2017 | ||||||||||
Income tax credit carryforwards | ||||||||||||
U.S. Federal | 3.6 | 2018 - 2034 | ||||||||||
U.S. State | 0.4 | 2019 - 2022 | ||||||||||
The timing and manner in which we are permitted to utilize our net operating loss carryforwards may be limited by Internal Revenue Code Section 382, Limitation on Net Operating Loss Carry-forwards and Certain Built-in-Losses Following Ownership Change. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, January 1 | $ | 1,964 | $ | 2,530 | $ | 4,376 | ||||||
Additions for tax positions taken in prior years | 72 | 166 | — | |||||||||
Reductions for tax positions taken in prior years | — | (472 | ) | (972 | ) | |||||||
Additions for tax positions related to the current year | 821 | 54 | — | |||||||||
Lapses of statutes of limitations | (89 | ) | (314 | ) | (874 | ) | ||||||
Unrecognized tax benefits, December 31 | $ | 2,768 | $ | 1,964 | $ | 2,530 | ||||||
Of the $2.8 million of gross unrecognized tax benefits from uncertain tax positions outstanding as of December 31, 2014, $2.5 million would affect our effective tax rate if recognized. | ||||||||||||
We recognize tax-related interest and penalties as a component of income tax provision. We recorded such tax-related interest and penalties of $0.4 million, $0.0 million and $0.1 million in 2014, 2013 and 2012, respectively. We had a cumulative liability for interest and penalties related to uncertain tax positions as of December 31, 2014 and 2013 of $2.0 million and $1.6 million, respectively. | ||||||||||||
Our U.S. federal income tax returns for 2009 through 2014 are open to review by the U.S. Internal Revenue Service. Our state income tax returns for 2006 through 2014 are open to review, depending on the respective statute of limitation in each state. In addition, we file income tax returns in several non-U.S. jurisdictions with varying statutes of limitation. | ||||||||||||
As of December 31, 2014, we believe it is reasonably likely that, within the next 12 months, $0.3 million of the previously unrecognized tax benefits related to certain non-U.S. filing positions will be recognized as we anticipate the deregistration of certain foreign subsidiaries. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Stockholders' Equity | STOCK-BASED COMPENSATION | |||||||||||
2005 Long-Term Incentive Plan | ||||||||||||
Our 2005 Long-Term Incentive Plan (the “2005 Plan”), which is administered by the Compensation Committee of the Board of Directors, authorizes us to grant various types of stock-based awards including: stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance stock units ("PSUs"). Stock options granted under the 2005 Plan shall not have an exercise price less than the fair market value of our common stock on the date of the grant. The exercise price of a stock option or stock appreciation right may not be reduced without shareholder approval. Stock options generally vest over periods of three or four years of continuous service, commencing on the date of grant. Stock options granted under the 2005 Plan have a seven-year contractual term. | ||||||||||||
Upon adoption, there were approximately 4.0 million shares available for issuance under the 2005 Plan. The number of shares available for issuance is increased by any shares of common stock which were previously reserved for issuance under our preceding stock option plan, and were not subject to grant on June 6, 2005, or as to which the stock-based compensation award is forfeited on or after June 6, 2005. The number of shares available for issuance is reduced by (i) two shares for each share delivered in settlement of any stock appreciation rights, for each share of restricted stock, and for each stock unit or performance unit award, and (ii) one share for each share delivered in settlement of a stock option award. In no event shall more than 1.0 million aggregate shares of common stock subject to stock options, stock appreciation rights, restricted stock or performance stock unit awards be granted to any one participant in any one year under the 2005 Plan. At December 31, 2014, we had 3.7 million shares available for future grant under our 2005 Plan and we had 4.8 million shares of our common stock reserved for future issuance pursuant to the 2005 Plan and our previous plan. | ||||||||||||
Stock Option Activity | ||||||||||||
Stock option activity was as follows (shares in thousands): | ||||||||||||
Options Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Exercise | ||||||||||||
Price | ||||||||||||
Outstanding at December 31, 2013 | 993 | $ | 6.73 | |||||||||
Granted | 154 | 8.52 | ||||||||||
Forfeited, canceled or expired | (252 | ) | 16.46 | |||||||||
Exercised | (97 | ) | 3.9 | |||||||||
Outstanding at December 31, 2014 | 798 | $ | 4.41 | |||||||||
Certain information regarding options outstanding at December 31, 2014 was as follows: | ||||||||||||
Options Outstanding | Options Exercisable | Options Vested and Expected to Vest | ||||||||||
Number (in thousands) | 798 | 500 | 797 | |||||||||
Weighted-average exercise price | $ | 4.41 | $ | 3.25 | $ | 4.41 | ||||||
Aggregate intrinsic value (in millions) | $ | 8.6 | $ | 6 | $ | 8.6 | ||||||
Weighted average remaining contractual term (in years) | 4.3 | 3.4 | 4.3 | |||||||||
RSU Activity | ||||||||||||
Following is a summary of RSU activity (shares in thousands): | ||||||||||||
RSUs Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Grant Date Fair Value per Share | ||||||||||||
Outstanding at December 31, 2013 | 139 | $ | 3.58 | |||||||||
Granted | 29 | 8.86 | ||||||||||
Forfeited, canceled or expired | — | — | ||||||||||
Vested | (81 | ) | 10.78 | |||||||||
Outstanding at December 31, 2014 | 87 | $ | 5.93 | |||||||||
PSU Activity | ||||||||||||
Compensation expense for PSUs is recognized over the estimated requisite service period based on the number of PSUs ultimately expected to vest. | ||||||||||||
In April 2010, we granted PSU awards covering a total of 146,000 shares of our common stock to key members of our executive team. The PSUs were subject to both time-based vesting (one-third annually over three years) and achievement of a stock price target of two times the grant date price. If, over the three-year period, the stock price did not close at or above two times the grant date price over any 20 of 30 consecutive days, the entire award would have been forfeited. These awards vested in full over the three-year vesting period. | ||||||||||||
In February and August 2012, we granted PSU awards to certain executive officers covering a total of 82,000 shares of our common stock. The PSUs vest based on achievement of certain operating income and return on asset goals established for a three-year performance period. The number of PSUs that ultimately vest following conclusion of the performance period will be determined based on the level at which the financial goals are achieved. The number of PSUs that vest can range from 60% of the PSUs if minimum thresholds are achieved to a maximum of 150%. These awards are expected to vest in full at the 150% maximum achievement, with the exception of any forfeitures. | ||||||||||||
In May 2013, we granted PSU awards to certain of our executive officers covering a total of 24,500 shares of our common stock. The PSUs vest based on achievement of certain operating income and return on asset goals established for a three-year performance period. The number of shares vesting under the PSU awards following conclusion of the performance period will be determined based on the level at which the financial goals are achieved. The number of shares vesting can range from 60% of the PSU awards if minimum thresholds are achieved to a maximum of 150%. | ||||||||||||
In February 2014, we granted PSU awards to certain of our executive officers covering a total of 82,494 shares of our common stock. The PSUs vest based on achievement of goals established for operating income and revenue growth for a three-year performance period. The number of shares vesting under the PSU awards following conclusion of the performance period will be determined based on the level at which the financial goals are achieved. The number of shares vesting can range from 60% of the PSU awards if minimum thresholds are achieved to a maximum of 150%. | ||||||||||||
Following is a summary of PSU activity (shares in thousands): | ||||||||||||
PSUs Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Grant Date Fair Value per Share | ||||||||||||
Outstanding at December 31, 2013 | 84 | $ | 3.76 | |||||||||
Granted | 82 | 8.22 | ||||||||||
Forfeited, canceled or expired | — | — | ||||||||||
Vested | — | — | ||||||||||
Outstanding at December 31, 2014 | 166 | $ | 5.97 | |||||||||
Stock-Based Compensation | ||||||||||||
We receive income tax deductions as a result of the exercise of certain stock options and vesting of RSUs and PSUs. Stock-based compensation expense, primarily included in General and Administrative expense, was as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Stock options | $ | 592 | $ | 337 | $ | 355 | ||||||
Restricted stock units | 121 | 54 | 188 | |||||||||
Performance stock units | 353 | 63 | 87 | |||||||||
$ | 1,066 | $ | 454 | $ | 630 | |||||||
Certain other information regarding our stock-based compensation was as follows (in thousands, except per share amounts): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted average grant-date per share fair value of stock options granted | $ | 5.36 | $ | 4.37 | $ | 1.89 | ||||||
Total intrinsic value of stock options exercised | 736 | 451 | 33 | |||||||||
Fair value of RSUs vested | 872 | 545 | 405 | |||||||||
Fair value of PSUs vested | — | 386 | — | |||||||||
As of December 31, 2014, unrecognized compensation expense for outstanding, but unvested stock-based awards was $0.7 million, which is expected to be recognized over a weighted average period of 1.5 years. | ||||||||||||
Assumptions used in calculating the fair value of stock option grants were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 0.9 | % | ||||||
Expected life (years) | 4.75 | 4.75 | 4.75 | |||||||||
Expected volatility | 80 | % | 89 | % | 92 | % | ||||||
Expected dividend yield is based on our current expectation that no dividend payments will be made in future periods. | ||||||||||||
Risk-free interest rate is the U.S. Treasury zero-coupon rate, as of the grant date, for issues having a term approximately equal to the expected life of the stock option. | ||||||||||||
Expected life is the period of time over which stock options are expected to remain outstanding. We calculate expected term based on the average of the sum of the vesting periods and the full contractual term. | ||||||||||||
Expected volatility is the percentage amount by which the price of our common stock is expected to fluctuate annually during the estimated expected life for stock options. Expected price volatility is calculated using historical daily closing prices over a period matching the weighted-average expected life, as management believes such changes are the best indicator of future volatility. | ||||||||||||
We estimate future forfeitures, at the time of grant and in subsequent periods, based on historical turnover rates, previous forfeiture experience and changes in the business or key personnel that would suggest future forfeitures may differ from historical data. We recognize compensation expense for only those stock options and other stock-based awards that are expected to vest. We reevaluate estimated forfeitures each quarter and, if applicable, recognize a cumulative effect adjustment in the period of the change if the revised estimate of the impact of forfeitures differs significantly from the previous estimate. |
Stock_Repurchase_Program_Notes
Stock Repurchase Program (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | STOCK REPURCHASE PROGRAM |
On November 3, 2014, our Board of Directors approved a stock repurchase program that authorizes us to repurchase up to $15 million of our outstanding common stock 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 unissued authorized shares. To date, we have not repurchased any shares pursuant to the program. |
Income_Loss_Per_Share
Income (Loss) Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Income (Loss) Per Share | INCOME PER SHARE | ||||||||
The weighted average numbers of shares outstanding used to compute income per share amounts were as follows (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Shares used for basic per share calculations | 31,253 | 31,072 | 30,851 | ||||||
Dilutive effect of outstanding options, PSUs and RSUs | 435 | 385 | 123 | ||||||
Shares used for diluted per share calculations | 31,688 | 31,457 | 30,974 | ||||||
The weighted average numbers of shares outstanding listed in the table below were anti-dilutive and excluded from the computation of Diluted Income Per Share, primarily because the average market price did not exceed the exercise price. These shares may be dilutive potential common shares in the future (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Stock options | 225 | 304 | 1,072 | ||||||
PSUs | — | 12 | 26 | ||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information | SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||
We have two reportable segments - Direct and Retail. Contribution is the measure of profit or loss, defined as Net Sales less product costs and directly attributable expenses. Directly attributable expenses include Selling and Marketing expenses, General and Administrative expenses, and Research and Development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily Accounts Receivable, Inventories, Goodwill and Other Intangible Assets. Unallocated assets primarily include Cash and Cash Equivalents, Available-for-Sale securities, shared information technology infrastructure, distribution centers, corporate headquarters, Prepaids and Other Current Assets, Deferred Income Tax Assets and Other Assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period. | ||||||||||||
Following is summary information by reportable segment (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net Sales: | ||||||||||||
Direct | $ | 175,593 | $ | 136,663 | $ | 124,978 | ||||||
Retail | 93,223 | 76,775 | 63,891 | |||||||||
Unallocated royalty income | 5,631 | 5,365 | 5,057 | |||||||||
Consolidated Net Sales | $ | 274,447 | $ | 218,803 | $ | 193,926 | ||||||
Contribution: | ||||||||||||
Direct | $ | 29,345 | $ | 14,126 | $ | 12,479 | ||||||
Retail | 13,279 | 11,431 | 7,855 | |||||||||
Unallocated royalty income | 5,631 | 5,365 | 5,057 | |||||||||
Consolidated contribution | $ | 48,255 | $ | 30,922 | $ | 25,391 | ||||||
Reconciliation of consolidated contribution to income from continuing operations: | ||||||||||||
Consolidated contribution | $ | 48,255 | $ | 30,922 | $ | 25,391 | ||||||
Amounts not directly related to segments: | ||||||||||||
Operating expenses | (18,101 | ) | (15,198 | ) | (14,801 | ) | ||||||
Other income (expense), net | 70 | 315 | (174 | ) | ||||||||
Income tax (provision) benefit | (9,841 | ) | 32,085 | 226 | ||||||||
Income from continuing operations | $ | 20,383 | $ | 48,124 | $ | 10,642 | ||||||
Depreciation and amortization expense: | ||||||||||||
Direct | $ | 1,913 | $ | 1,956 | $ | 2,366 | ||||||
Retail | 643 | 642 | 825 | |||||||||
Unallocated corporate | 1,468 | 746 | 78 | |||||||||
Total depreciation and amortization expense | $ | 4,024 | $ | 3,344 | $ | 3,269 | ||||||
December 31, | ||||||||||||
Assets: | 2014 | 2013 | ||||||||||
Direct | $ | 25,263 | $ | 21,249 | ||||||||
Retail | 37,203 | 32,023 | ||||||||||
Unallocated corporate | 113,188 | 90,295 | ||||||||||
Total assets | $ | 175,654 | $ | 143,567 | ||||||||
Net sales by geographic area were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 231,230 | $ | 181,381 | $ | 167,504 | ||||||
Canada | 35,367 | 34,166 | 24,977 | |||||||||
All other | 7,850 | 3,256 | 1,445 | |||||||||
$ | 274,447 | $ | 218,803 | $ | 193,926 | |||||||
There are no material long-lived assets held outside of the U.S. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||||||||||
Operating Leases | ||||||||||||
We lease property and equipment under non-cancelable operating leases which, in the aggregate, extend through 2025. Many of these leases contain renewal options and provide for rent escalations and payment of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. Rent expense under all operating leases was as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 3,625 | $ | 3,473 | $ | 3,218 | ||||||
As of December 31, 2014, future minimum lease payments under non-cancelable leases, reduced for sublease income, were as follows (in thousands): | ||||||||||||
2015 | $ | 4,050 | ||||||||||
2016 | 3,990 | |||||||||||
2017 | 3,250 | |||||||||||
2018 | 2,249 | |||||||||||
2019 | 2,575 | |||||||||||
Thereafter | 9,803 | |||||||||||
$ | 25,917 | |||||||||||
Guarantees, Commitments and Off-Balance Sheet Arrangements | ||||||||||||
As of December 31, 2014, we had approximately $0.6 million in letters of credit with certain vendors with expiration dates through April 2015. | ||||||||||||
We have long lead times for inventory purchases and, therefore, must secure factory capacity from our vendors in advance. As of December 31, 2014, we had approximately $21.3 million in non-cancelable market-based purchase obligations, primarily for inventory purchases expected to be received within the next twelve months. Purchase obligations can vary from quarter-to-quarter and versus the same period in prior years due to a number of factors, including the amount of products that are shipped directly to Retail customer warehouses versus through Nautilus warehouses. | ||||||||||||
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 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 indemnification obligations vary from contract to contract, and generally a maximum obligation is not stated within the agreements. We hold insurance policies that mitigate potential losses arising from certain types of indemnification obligations. Management does not deem these obligations to be significant to our financial position, results of operations or cash flows and, therefore, no related liabilities were recorded as of December 31, 2014. | ||||||||||||
Legal Matters | ||||||||||||
In 2004, we were sued in the Southern District of New York by BioSig Instruments, Inc. for alleged patent infringement in connection with our incorporation of heart rate monitors into certain cardio products. No significant activity in the litigation occurred until 2008. In 2012, the United States District Court granted summary judgment to us on grounds that BioSig’s patents | ||||||||||||
were invalid as a matter of law. BioSig appealed the grant of summary judgment and, in April 2013, the United States Court of Appeals for the Federal Circuit reversed the District Court’s decision on summary judgment and remanded the case to the District Court for further proceedings. On January 10, 2014, the U.S. Supreme Court granted our petition for a writ of certiorari to address the legal standard applied by the Federal Circuit in determining whether the patents may be valid under applicable law. The case was argued before the Supreme Court on April 28, 2014. By decision dated June 2, 2014, the Supreme Court unanimously reversed the Federal Circuit, holding that its standard of when a patent may be “indefinite” was incorrect and remanding to the Federal Circuit for reconsideration under the correct standard. The remand hearing in the Federal Circuit was held on October 29, 2014, and no decision has yet been issued. We do not believe that our use of heart rate monitors utilized or purchased from third parties, and otherwise, infringe the BioSig patents. | ||||||||||||
In August 2014, we initiated an arbitration proceeding under a 1999 license agreement pursuant to which we had licensed certain rights relating to our TreadClimber® products. We believe that our obligation to pay royalties under the license agreement ceased in the fourth quarter of 2013. The licensor disputes this and issued a notice under the contract claiming breach of the license agreement and asserting various remedies. We are seeking a declaratory ruling in the arbitration that we have performed all our obligations under the license agreement, and that there is no continuing obligation to pay royalties. The licensor has asserted various counterclaims in the arbitration, including contract and intellectual property claims, and asserted various remedies, including termination of the license agreement. The Company has replied to the counterclaim, denying the allegations and demanded remedies and asserting defenses. The arbitration is being administered by the American Arbitration Association (AAA) and is in its preliminary stages. An arbitrator has been selected, however, a stay of the arbitration proceedings has been issued. | ||||||||||||
In addition to the matters described above, from time to time, we may be involved in various claims, lawsuits and other proceedings. These legal and tax proceedings involve uncertainty as to the eventual outcomes and losses which may be realized when one or more future events occur or fail to occur. | ||||||||||||
Litigation and jury verdicts are, to some degree, inherently unpredictable, and although we have determined that a loss is not probable in connection with any current legal proceeding, it is reasonably possible that a loss may be incurred in connection with proceedings to which we are a party. Assessment of whether incurrence of a loss is probable, or a reasonable possibility, in connection with a particular proceeding, and estimation of the loss, or a range of loss, involves complex judgments and numerous uncertainties. Management is unable to estimate a range of reasonably possible losses related to litigation in its early stages, especially when the damages sought are indeterminate, or the legal and factual basis for the relevant claims have not been developed with specificity. As such, zero liability is recorded as of December 31, 2014. | ||||||||||||
We regularly monitor our estimated exposure to these contingencies and, as additional information becomes known, may change our estimates accordingly. We evaluate, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss probable or reasonably possible, and whether the amount of a probable or reasonably possible loss is estimable. Among other factors, we evaluate the advice of internal and external counsel, the outcomes from similar litigation, current status of the lawsuits (including settlement initiatives), legislative developments and other factors. Due to the numerous variables associated with these judgments and assumptions, both the precision and reliability of the resulting estimates of the related loss contingencies are subject to substantial uncertainties. |
Supplementary_Information_Quar
Supplementary Information - Quarterly Results of Operations (unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Supplementary Information - Quarterly Results of Operations Unaudited | SUPPLEMENTARY INFORMATION - QUARTERLY RESULTS OF OPERATIONS (unaudited) | |||||||||||||||||||
The following table summarizes our unaudited quarterly financial data for 2014 and 2013 (in thousands, except per share amounts): | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
31-Mar | 30-Jun | September 30 | December 31 | Total | ||||||||||||||||
2014 | ||||||||||||||||||||
Net sales | $ | 71,903 | $ | 48,546 | $ | 59,067 | $ | 94,931 | $ | 274,447 | ||||||||||
Gross profit | 38,481 | 24,780 | 28,795 | 48,519 | 140,575 | |||||||||||||||
Operating income | 9,001 | 2,379 | 4,281 | 14,493 | 30,154 | |||||||||||||||
Income from continuing operations | 5,748 | 1,498 | 2,664 | 10,473 | 20,383 | |||||||||||||||
Loss from discontinued operations | (374 | ) | (941 | ) | (177 | ) | (96 | ) | (1,588 | ) | ||||||||||
Net income(1) | 5,374 | 557 | 2,487 | 10,377 | 18,795 | |||||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.02 | $ | 0.08 | $ | 0.33 | $ | 0.6 | ||||||||||
Diluted (2) | 0.17 | 0.02 | 0.08 | 0.33 | 0.59 | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 59,214 | $ | 36,242 | $ | 46,256 | $ | 77,091 | $ | 218,803 | ||||||||||
Gross profit | 30,694 | 17,329 | 21,777 | 36,677 | 106,477 | |||||||||||||||
Operating income (loss) | 5,994 | (1,724 | ) | 1,336 | 10,118 | 15,724 | ||||||||||||||
Income from continuing operations | 5,524 | 32,668 | 1,500 | 8,432 | 48,124 | |||||||||||||||
Income (loss) from discontinued operations | (365 | ) | 195 | (116 | ) | 116 | (170 | ) | ||||||||||||
Net income (1) | 5,159 | 32,863 | 1,384 | 8,548 | 47,954 | |||||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.17 | $ | 1.06 | $ | 0.04 | $ | 0.27 | $ | 1.54 | ||||||||||
Diluted (2) | 0.17 | 1.05 | 0.04 | 0.27 | 1.52 | |||||||||||||||
(1) Net income in the quarters ended December 31, 2014 and June 30, 2013 included a $1.2 million and a $35.8 million credit, respectively, related to the reversal of a portion of our deferred tax asset valuation allowance. | ||||||||||||||||||||
(2) May not add due to rounding. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Available-For-Sale Securities | |
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Marketable securities with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Unrealized holding gains and losses, which are immaterial, are excluded from earnings and are reported net of tax in other comprehensive income until realized. Dividend and interest income is recognized when earned. Realized gains and losses, which were immaterial in 2014, are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | ||
We periodically evaluate whether declines in fair values of our investments below their cost are "other-than-temporary." This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investment until a forecasted recovery occurs. | ||
For additional information, refer to Note 3, Fair Value Measurements. | ||
Discontinued Operation | Discontinued Operations | |
Results from discontinued operations relate to the disposal of our former Commercial business, which began in 2009 and was completed in April 2011. We reached substantial completion of asset liquidation at December 31, 2012. However, we continue to have legal and accounting expenses as we work with authorities on final deregistration of each entity and product liability and other legal expenses associated with product previously sold into the Commercial channel. | ||
Use of estimates | Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities in the financial statements. Our most significant estimates relate to the following: | ||
• | Revenue recognition; | |
• | Sales discounts and allowances; | |
• | Allowance for uncollectible trade receivables; | |
• | Valuation of excess and obsolete inventory; | |
• | Goodwill and other long-term assets valuation; | |
• | Product warranty obligations; | |
• | Litigation and loss contingencies; | |
• | Deferred tax assets and the related valuation allowance; and | |
• | Unrecognized tax benefits. | |
Actual results could differ from our estimates. | ||
Concentrations of risk | Concentrations | |
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents held in bank accounts in excess of federally-insured limits and trade receivables. Trade receivables are generally unsecured and therefore collection is affected by the economic conditions in each of our principal markets. | ||
We rely on third-party contract manufacturers in Asia for substantially all of our products and for certain product engineering support. Business operations could be disrupted by natural disasters, difficulties in transporting products from non-U.S. suppliers, as well as political, social or economic instability in the countries where contract manufacturers or their vendors or customers conduct business. While any such contract manufacturing arrangement could be replaced over time, the temporary loss of the services of any primary contract manufacturer could delay product shipments and cause a significant disruption in our operations. | ||
We derive a significant portion of our Net Sales from a small number of our Retail customers. A loss of business from one or more of these large customers, if not replaced with new business, would negatively affect our operating results and cash flows. In 2014, 2013 and 2012, one customer accounted for more than 10%, but less than 15%, of our Net Sales. | ||
Cash, cash equivalents and restricted cash | Cash and Cash Equivalents | |
All highly liquid investments with maturities of three months or less at purchase are considered to be cash equivalents. As of December 31, 2014, cash equivalents consisted of money market funds, certificates of deposit, commercial paper, and variable-rate demand notes and totaled $24.1 million. As of December 31, 2013, we did not have any cash equivalents. | ||
Inventories | Inventories | |
Inventories are stated at the lower of cost or market, with cost determined based on the first-in, first-out method. We establish inventory allowances for excess, slow-moving and obsolete inventory based on inventory levels, expected product life and forecasted sales. Inventories are written down to market value based on historical demand, competitive factors, changes in technology and product lifecycles. | ||
Property, plant and equipment | Property, Plant and Equipment | |
Property, plant and equipment is stated at cost, net of accumulated depreciation. Improvements or betterments which add new functionality or significantly extend the life of an asset are capitalized. Expenditures for maintenance and repairs are expensed as incurred. The cost of assets retired, or otherwise disposed of, and the related accumulated depreciation, are removed from the accounts at the time of disposal. Gains and losses resulting from asset sales and dispositions are recognized in the period in which assets are disposed. Depreciation is recognized, using the straight-line method, over the lesser of the estimated useful lives of the assets or, in the case of leasehold improvements, the lease term, including renewal periods if we expect to exercise our renewal options. Depreciation on computer equipment, machinery and equipment and furniture and fixtures is determined based on estimated useful lives, which generally range from three-to-seven years. | ||
Goodwill | Goodwill | |
Goodwill consists of the excess of acquisition costs over the fair values of net assets acquired in business combinations. We review goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount may be impaired. For this purpose, goodwill is evaluated at the reporting unit level. Our goodwill is an asset of our Direct reporting unit. We performed an assessment of goodwill in the fourth quarters of 2014, 2013 and 2012 and concluded that circumstances did not more likely than not indicate an impairment had occurred. For further information regarding goodwill, see Note 7, Goodwill. | ||
Other intangible assets | Other Intangible Assets | |
Finite-lived intangible assets, primarily acquired patents and patent rights, are stated at cost, net of accumulated amortization. We recognize amortization expense for our finite-lived intangible assets on a straight-line basis over the estimated useful lives. | ||
Indefinite-lived intangible assets consist of acquired trademarks. Indefinite-lived intangible assets are stated at cost and are not amortized; instead, they are tested for impairment at least annually. We review our acquired trademarks for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the assets may be impaired. The fair value of trademarks is estimated using the relief from royalty method to estimate the value of the cost savings and a discounted cash flows method to estimate the value of future income. The sum of these two values for each trademark is the fair value of the trademark. If the carrying amount of trademarks exceeds the estimated fair value, we calculate impairment as the excess of carrying amount over the estimate of fair value. We tested our acquired trademarks for impairment in the fourth quarters of 2014, 2013 and 2012 and determined that no impairment was indicated. For further information regarding other intangible assets, see Note 8, Other Intangible Assets. | ||
Impairment of long-lived assets | Impairment of Long-Lived Assets | |
Long-lived assets, including property, plant and equipment and finite-lived intangible assets, are evaluated for impairment when events or circumstances indicate the carrying value may be impaired. When such an event or condition occurs, we estimate the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to determine whether a potential impairment exists. If the carrying value exceeds estimated future undiscounted cash flows, we record impairment expense to reduce the carrying value of the asset to its estimated fair value. No impairment charges were recorded in 2014, 2013 or 2012. | ||
Revenue recognition | Revenue Recognition | |
Direct and Retail product sales and shipping revenues are recorded when products are shipped and title passes to customers. In most instances, Retail sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss to the customer upon our delivery to the carrier. For Direct sales, revenue is generally recognized when products are shipped. Revenue is recognized net of applicable sales incentives, such as promotional discounts, rebates and return allowances. We estimate the revenue impact of incentive programs based on the planned duration of the program and historical experience. | ||
Many Direct business customers finance their purchases through a third-party credit provider, for which we pay a commission or financing fee to the credit provider. Revenue for such transactions is recognized based on the sales price charged to the customer and the related commission or financing fee is included in Selling and Marketing expense. | ||
Sales discounts and allowances | Sales Discounts and Returns Allowance | |
Product sales and shipping revenues are reported net of promotional discounts and return allowances. We estimate the revenue impact of retail sales incentive programs based on the planned duration of the program and historical experience. If the amount of sales incentives is reasonably estimable, the impact of such incentives is recorded at the later of the time the customer is notified of the sales incentive or the time of the sale. We estimate our liability for product returns based on historical experience and record the expected obligation as a reduction of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur. Activity in our sales discounts and returns allowance was as follows (in thousands): | ||
Taxes collected from customers and remitted to governmental authorities | Taxes Collected from Customers and Remitted to Governmental Authorities | |
Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and excluded from revenue. | ||
Shipping and handling fees | Shipping and Handling Fees | |
Shipping and handling fees billed to customers are recorded gross and included in both revenue and cost of sales. | ||
Cost of sales | Cost of Sales | |
Cost of Sales primarily consists of: inventory costs; royalties paid to third parties; employment and occupancy costs of warehouse and distribution facilities, including depreciation of improvements and equipment; transportation expenses; product warranty expenses; distribution information systems expenses; and allocated expenses for shared administrative functions. | ||
Product warranty obligations | Product Warranty Obligations | |
Our products carry limited, defined warranties for defects in materials or workmanship which, according to their terms, generally obligate us to pay the costs of supplying and shipping replacement parts to customers and, in certain instances, pay for labor and other costs to service products. Outstanding product warranty periods range from thirty days to, in limited circumstances, the lifetime of certain product components. We record a liability at the time of sale for the estimated costs of fulfilling future warranty claims. If necessary, we adjust the liability for specific warranty-related matters when they become known and are reasonably estimable. Estimated warranty expense is included in Cost of Sales, based on historical warranty claim experience and available product quality data. Warranty expense is affected by the performance of new products, significant manufacturing or design defects not discovered until after the product is delivered to the customer, product failure rates, and higher or lower than expected repair costs. If warranty expense differs from previous estimates, or if circumstances change such that the assumptions inherent in previous estimates are no longer valid, the amount of product Warranty Obligations is adjusted accordingly. | ||
Litigation and loss contingencies | Litigation and Loss Contingencies | |
From time to time, we may be involved in various claims, lawsuits and other proceedings. These legal and tax proceedings involve uncertainty as to the eventual outcomes and losses which may be realized when one or more future events occur or fail to occur. We record expenses for litigation and loss contingencies as a component of General and Administrative expense when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When a loss contingency is not both probable and estimable, we do not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then we disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. | ||
Advertising and promotion | Advertising and Promotion | |
We expense our advertising and promotion costs as incurred. Production costs of television advertising commercials are recorded as prepaid expenses until the initial broadcast, at which time such costs are expensed. Advertising and promotion costs are included in Selling and Marketing expenses and totaled $42.6 million, $35.8 million and $30.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. Prepaid advertising and promotion costs were $1.4 million and $2.2 million as of December 31, 2014 and 2013, respectively. | ||
Research and development | Research and Development | |
Internal research and development costs, which primarily consist of salaries and wages, employee benefits, expenditures for materials, and fees to use licensed technologies, are expensed as incurred. Third party research and development costs for products under development or being researched, if any, are expensed as the contracted work is performed. | ||
Income taxes | Income Taxes | |
We account for income taxes based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to be in effect when the temporary differences are expected to be included, as income or expense, in the applicable tax return. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period of the enactment. Valuation allowances are provided against deferred income tax assets if we determine it is more likely than not that such assets will not be realized. | ||
Unrecognized Tax Benefits | ||
We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained based on the technical merits of the position upon examination, including resolutions of any related appeals or litigation. | ||
Foreign currency translation | Foreign Currency Translation | |
We translate the accounts of our non-U.S. subsidiaries into U.S. dollars as follows: revenues, expenses, gains and losses are translated at weighted-average exchange rates during the year; and assets and liabilities are translated at the exchange rate on the balance sheet date. Translation gains and losses are reported in our Consolidated Balance Sheets as a component of Accumulated Other Comprehensive Income. In the fourth quarter of 2012, we substantially completed the liquidation of our investment in foreign subsidiaries formerly associated with the Commercial business. As a result, an accumulated translation adjustment of $6.2 million was removed from accumulated other comprehensive income and recognized as a gain of the discontinued operations. | ||
Gains and losses arising from foreign currency transactions, including transactions between us and our non-U.S. subsidiaries, are recorded as a component of Other Income (Expense) in our Consolidated Statements of Operations. | ||
Fair value of financial instruments | Fair Value of Financial Instruments | |
The carrying values of Cash and Cash Equivalents, Trade Receivables, Prepaids and Other Current Assets, Trade Payables and Accrued Liabilities approximate fair value due to their short maturities. | ||
Net Income Per Share | Per Share Amounts | |
Basic income per share amounts were computed using the weighted average number of common shares outstanding. Diluted income per share amounts were calculated using the number of basic weighted average shares outstanding increased by dilutive potential common shares related to stock-based awards, as determined by the treasury stock method. | ||
Share-based based compensation | Stock-Based Compensation | |
We recognize stock-based compensation expense on a straight-line basis over the applicable vesting period, based on the grant-date fair value of the award. To the extent a stock-based award is subject to performance conditions, the amount of expense recorded in a given period, if any, reflects our assessment of the probability of achieving the performance targets. | ||
Fair value of stock options is estimated using the Black-Scholes-Merton option valuation model; fair value of performance share unit awards and restricted stock unit awards is based on the closing market price on the day preceding the grant. | ||
New Accounting Pronouncements | New Accounting Pronouncements | |
ASU 2015-01 | ||
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20).” ASU 2015-01 simplifies income statement presentation by eliminating the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of ASU 2015-01 will not have any effect on our financial position, results of operations or cash flows. | ||
ASU 2014-17 | ||
In November 2014, the FASB issued ASU No. 2014-17, "Business Combinations (Topic 805)". ASU 2014-17 provides guidance on whether and at what threshold an acquired entity that is a business or nonprofit entity (either public or nonpublic), can apply pushdown accounting in its separate financial statements upon the occurrence of an event in which an acquirer obtains control of the acquired entity. ASU 2014-17 was effective on November 18, 2014. Since ASU 2014-17 relates to pushdown accounting in separate financial statements upon the occurrence of an event whereby an acquirer obtains control of an acquired entity, our adoption of ASU 2014-17 in November 2014 did not have any effect on our financial position, results of operations or cash flows. | ||
ASU 2014-16 | ||
In November 2014, the FASB issued ASU No. 2014-16, "Derivatives and Hedging (Topic 815)". ASU 2014-16 provides guidance to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The objective of ASU 2014-16 is to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for these financial instruments. ASU 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. We do not expect the adoption of ASU 2014-16 to have a material effect on our financial position, results of operations or cash flows. | ||
ASU 2014-15 | ||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40)". ASU 2014-15 provides guidance related to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosure. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for interim and annual periods thereafter. Early application is permitted. We do not expect the adoption of ASU 2014-15 to have a material effect on our financial position, results of operations or cash flows. | ||
ASU 2014-12 | ||
In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718)". ASU No. 2014-12 addresses accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 indicates that, in such situations, the performance target should be treated as a performance condition and, accordingly, the performance target should not be reflected in estimating the grant-date fair value of the award. Instead, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We do not expect the adoption of ASU 2014-12 to have a material effect on our financial position, results of operations or cash flows. | ||
ASU 2014-09 | ||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and the International Accounting Standards Board that: | ||
• removes inconsistencies and weaknesses in revenue requirements; | ||
• provides a more robust framework for addressing revenue issues; | ||
• improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; | ||
• provides more useful information to users of financial statements through improved disclosure requirements; and | ||
• simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. | ||
ASU 2014-09 is effective for annual and interim periods beginning on or after December 15, 2016. While we do not expect the adoption of ASU 2014-09 to have a material effect on our business, we are still evaluating any potential impact that adoption of | ||
ASU 2014-09 may have on our financial position, results of operations or cash flows. | ||
ASU 2014-08 | ||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". ASU 2014-08 amends the definition for what types of asset disposals are to be considered discontinued operations, and amends the required disclosures for discontinued operations and assets held for sale. ASU 2014-08 also enhances the convergence of the FASB’s and the International Accounting Standard Board’s reporting requirements for discontinued operations. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. We do not expect the adoption of ASU 2014-08 to have a material effect on our financial position, results of operations or cash flows. | ||
ASU 2013-11 | ||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". ASU 2013-11 amends the guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss ("NOL") carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 was effective for annual and interim periods for fiscal years beginning after December 15, 2013. Since ASU 2013-11 relates only to the presentation of unrecognized tax benefits, our adoption of ASU 2013-11 in January 2014 did not have a material effect on our financial position, results of operations or cash flows. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Sales Discounts and Returns Allowance | Activity in our sales discounts and returns allowance was as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 4,106 | $ | 4,990 | $ | 5,113 | ||||||
Charges to reserve | 15,285 | 13,345 | 11,730 | |||||||||
Reductions for sales discounts and returns | (15,095 | ) | (14,229 | ) | (11,853 | ) | ||||||
Balance, December 31 | $ | 4,296 | $ | 4,106 | $ | 4,990 | ||||||
Discontinued_Operation_Tables
Discontinued Operation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Schedule of Operating Results of Company's Former Commercial Business | Following is a summary of certain financial information regarding our discontinued operations (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | — | $ | — | $ | — | ||||||
Loss from discontinued operations | (1,134 | ) | (559 | ) | (163 | ) | ||||||
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | — | — | 6,170 | |||||||||
Income tax (provision) benefit | (454 | ) | 389 | 234 | ||||||||
Total income (loss) from discontinued operations | $ | (1,588 | ) | $ | (170 | ) | $ | 6,241 | ||||
The following table summarizes liabilities for exit costs related to discontinued operations, included in Accrued Liabilities and Other Long-Term Liabilities in our Consolidated Balance Sheets (in thousands): | ||||||||||||
Facilities | Severance and Benefits | |||||||||||
Leases | ||||||||||||
Balance as of January 1, 2012 | $ | 1,929 | $ | 175 | ||||||||
Adjustments | (390 | ) | — | |||||||||
Payments | (421 | ) | (175 | ) | ||||||||
Balance as of December 31, 2012 | 1,118 | — | ||||||||||
Payments | (287 | ) | — | |||||||||
Balance as of December 31, 2013 | 831 | — | ||||||||||
Payments | (258 | ) | — | |||||||||
Balance as of December 31, 2014 | $ | 573 | $ | — | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis were as follows (in thousands): | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash Equivalents | |||||||||||||||||
Money market funds | $ | 2,591 | $ | — | $ | — | $ | 2,591 | |||||||||
Certificates of deposit(1) | — | 980 | — | 980 | |||||||||||||
Commercial paper | — | 12,497 | — | 12,497 | |||||||||||||
Variable rate demand notes | — | 8,000 | — | 8,000 | |||||||||||||
Total Cash Equivalents | 2,591 | 21,477 | — | 24,068 | |||||||||||||
Available-for-Sale Securities | |||||||||||||||||
Certificates of deposit(1) | — | 14,202 | — | 14,202 | |||||||||||||
Corporate bonds | — | 12,782 | — | 12,782 | |||||||||||||
Total Available-for-Sale Securities | — | 26,984 | — | 26,984 | |||||||||||||
Total assets measured at fair value | $ | 2,591 | $ | 48,461 | $ | — | $ | 51,052 | |||||||||
(1) All certificates of deposit are within current FDIC insurance limits. |
Trade_Receivables_Tables
Trade Receivables (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Receivables [Abstract] | ||||||||||||
Allowance for doubtful accounts | Trade receivables, net, consisted of the following (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Trade receivables | $ | 26,368 | $ | 25,389 | ||||||||
Allowance for doubtful accounts | (108 | ) | (53 | ) | ||||||||
$ | 26,260 | $ | 25,336 | |||||||||
Schedule Of Changes In Allowance For Doubtful Accounts | Changes in our allowance for doubtful trade receivables were as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 53 | $ | 93 | $ | 300 | ||||||
Charges to (reversals of) bad debt expense | 104 | 588 | (13 | ) | ||||||||
Writeoffs, net of recoveries | (49 | ) | (628 | ) | (194 | ) | ||||||
Balance, December 31 | $ | 108 | $ | 53 | $ | 93 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventories, Net of Valuation Allowances | Inventories consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 23,765 | $ | 14,259 | ||||
Parts and components | 1,131 | 1,565 | ||||||
$ | 24,896 | $ | 15,824 | |||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): | |||||||||||
Estimated | December 31, | |||||||||||
Useful Life | ||||||||||||
(in years) | 2014 | 2013 | ||||||||||
Automobiles | 5 | $ | 23 | $ | — | |||||||
Leasehold improvements | 5 | to | 20 | 2,144 | 2,869 | |||||||
Computer equipment | 3 | to | 7 | 25,397 | 35,554 | |||||||
Machinery and equipment | 3 | to | 5 | 6,709 | 5,648 | |||||||
Furniture and fixtures | 5 | 1,108 | 688 | |||||||||
Work in progress (1) | N/A | 421 | 4,281 | |||||||||
Total cost | 35,802 | 49,040 | ||||||||||
Accumulated depreciation | (26,168 | ) | (40,541 | ) | ||||||||
$ | 9,634 | $ | 8,499 | |||||||||
(1) Work in progress includes production tooling construction in progress and, in 2013, internal use software development. | ||||||||||||
Depreciation expense was as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 1,983 | $ | 1,254 | $ | 1,199 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Schedule of Goodwill [Table Text Block] | Direct reporting unit. The rollforward of Goodwill was as follows (in thousands): | |||
Balance, January 1, 2012 | $ | 2,873 | ||
Currency exchange rate adjustment | 67 | |||
Balance, December 31, 2012 | 2,940 | |||
Currency exchange rate adjustment | (200 | ) | ||
Balance, December 31, 2013 | 2,740 | |||
Currency exchange rate adjustment | (220 | ) | ||
Balance, December 31, 2014 | $ | 2,520 | ||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Intangible assets | ntangible assets consisted of the following (in thousands): | |||||||||||
Estimated | December 31, | |||||||||||
Useful Life | ||||||||||||
(in years) | 2014 | 2013 | ||||||||||
Indefinite life trademarks | N/A | $ | 9,052 | $ | 9,052 | |||||||
Patents | 8 | to | 16 | 18,154 | 18,154 | |||||||
27,206 | 27,206 | |||||||||||
Accumulated amortization - patents | (16,631 | ) | (14,591 | ) | ||||||||
$ | 10,575 | $ | 12,615 | |||||||||
Amortization expense | Amortization expense was as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Amortization expense | $ | 2,040 | $ | 2,050 | $ | 2,050 | ||||||
Future amortization expense | Future amortization of patents is as follows (in thousands): | |||||||||||
2015 | $ | 828 | ||||||||||
2016 | 430 | |||||||||||
2017 | 143 | |||||||||||
2018 | 65 | |||||||||||
2019 | 35 | |||||||||||
Thereafter | 22 | |||||||||||
$ | 1,523 | |||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Payroll and related liabilities | $ | 5,058 | $ | 4,244 | ||||
Other | 4,793 | 4,879 | ||||||
$ | 9,851 | $ | 9,123 | |||||
Product_Warranties_Tables
Product Warranties (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||
Schedule of Product Warranty Liability | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, January 1 | $ | 1,638 | $ | 2,492 | $ | 2,017 | ||||||
Accruals | 2,264 | 1,097 | 2,615 | |||||||||
Adjustments | — | (186 | ) | (170 | ) | |||||||
Payments | (1,656 | ) | (1,765 | ) | (1,970 | ) | ||||||
Balance, December 31 | $ | 2,246 | $ | 1,638 | $ | 2,492 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income from continuing operations before income taxes was as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 29,115 | $ | 15,386 | $ | 10,025 | ||||||
Non-U.S. | 1,109 | 653 | 391 | |||||||||
$ | 30,224 | $ | 16,039 | $ | 10,416 | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) from continuing operations was as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
U.S. federal | $ | 1,086 | $ | 541 | $ | (579 | ) | |||||
U.S. state | 100 | 56 | 53 | |||||||||
Non-U.S. | 222 | (12 | ) | 155 | ||||||||
Total current | 1,408 | 585 | (371 | ) | ||||||||
Deferred: | ||||||||||||
U.S. federal | 8,913 | (29,552 | ) | 177 | ||||||||
U.S. state | (558 | ) | (3,370 | ) | 17 | |||||||
Non-U.S. | 78 | 252 | (49 | ) | ||||||||
Total deferred | 8,433 | (32,670 | ) | 145 | ||||||||
$ | 9,841 | $ | (32,085 | ) | $ | (226 | ) | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Individually significant components of deferred income tax assets (liabilities) were as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Accrued liabilities | $ | 3,510 | $ | 3,230 | ||||||||
Allowance for doubtful accounts | 33 | 20 | ||||||||||
Inventory valuation | 377 | 312 | ||||||||||
Capitalized indirect inventory costs | 295 | 159 | ||||||||||
Stock-based compensation expense | 558 | 376 | ||||||||||
Net operating loss carryforward | 19,742 | 35,635 | ||||||||||
Basis difference on long-lived assets | 3,289 | 4,412 | ||||||||||
Credit carryforward | 4,565 | 3,422 | ||||||||||
Other | 339 | 332 | ||||||||||
Gross deferred income tax assets | 32,708 | 47,898 | ||||||||||
Valuation allowance | (6,156 | ) | (12,944 | ) | ||||||||
Deferred income tax assets, net of valuation allowance | 26,552 | 34,954 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Prepaid advertising | (467 | ) | (793 | ) | ||||||||
Other prepaids | (696 | ) | (592 | ) | ||||||||
Basis difference on long-lived assets | (3,355 | ) | (2,938 | ) | ||||||||
Undistributed earnings of foreign subsidiaries | (179 | ) | (177 | ) | ||||||||
Other | (1 | ) | (288 | ) | ||||||||
Deferred income tax liabilities | (4,698 | ) | (4,788 | ) | ||||||||
Net deferred income tax asset | $ | 21,854 | $ | 30,166 | ||||||||
Our net deferred income tax asset (liability) was recorded on our Consolidated Balance Sheets as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred income tax assets | $ | 12,368 | $ | 4,441 | ||||||||
Non-current deferred income tax assets | 9,546 | 25,725 | ||||||||||
Other long-term liabilities | (60 | ) | — | |||||||||
Net deferred income tax asset | $ | 21,854 | $ | 30,166 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Following is a reconciliation of the U.S. statutory federal income tax rate with our effective income tax rate for continuing operations: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State tax, net of U.S. federal tax benefit | 2.5 | 2.9 | 1.1 | |||||||||
Non-U.S. income taxes | (0.3 | ) | 1.2 | — | ||||||||
Nondeductible operating expenses | 0.2 | (0.4 | ) | 0.4 | ||||||||
Research and development credit | (2.4 | ) | (0.7 | ) | — | |||||||
Change in deferred tax measurement rate | 0.1 | 0.2 | 0.1 | |||||||||
Change in uncertain tax positions | 1.5 | 2.2 | (6.5 | ) | ||||||||
Expiration of capital loss carryforward | — | 26.9 | — | |||||||||
Change in valuation allowance | (4.1 | ) | (267.6 | ) | (32.3 | ) | ||||||
Other | 0.1 | 0.2 | — | |||||||||
Effective income tax rate | 32.6 | % | (200.1 | )% | (2.2 | )% | ||||||
Summary of Income Tax Carryforwards [Table Text Block] | As of December 31, 2014, we had the following income tax carryforwards (in millions): | |||||||||||
Amount | Expires in | |||||||||||
Net operating loss carryforwards | ||||||||||||
U.S. Federal | $ | 37.2 | 2029 - 2031 | |||||||||
U.S. State | 85.3 | 2015 - 2031 | ||||||||||
Switzerland | 15 | 2015 - 2020 | ||||||||||
Italy | 1.2 | 2015 - 2017 | ||||||||||
Income tax credit carryforwards | ||||||||||||
U.S. Federal | 3.6 | 2018 - 2034 | ||||||||||
U.S. State | 0.4 | 2019 - 2022 | ||||||||||
Schedule of Reconciliatin of Gross Unrecognized Tax Benefits From Uncertain Tax Positions Roll Forward [Table Text Block] | Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, January 1 | $ | 1,964 | $ | 2,530 | $ | 4,376 | ||||||
Additions for tax positions taken in prior years | 72 | 166 | — | |||||||||
Reductions for tax positions taken in prior years | — | (472 | ) | (972 | ) | |||||||
Additions for tax positions related to the current year | 821 | 54 | — | |||||||||
Lapses of statutes of limitations | (89 | ) | (314 | ) | (874 | ) | ||||||
Unrecognized tax benefits, December 31 | $ | 2,768 | $ | 1,964 | $ | 2,530 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Stock option activity | Stock option activity was as follows (shares in thousands): | |||||||||||
Options Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Exercise | ||||||||||||
Price | ||||||||||||
Outstanding at December 31, 2013 | 993 | $ | 6.73 | |||||||||
Granted | 154 | 8.52 | ||||||||||
Forfeited, canceled or expired | (252 | ) | 16.46 | |||||||||
Exercised | (97 | ) | 3.9 | |||||||||
Outstanding at December 31, 2014 | 798 | $ | 4.41 | |||||||||
Stock options outstanding | Certain information regarding options outstanding at December 31, 2014 was as follows: | |||||||||||
Options Outstanding | Options Exercisable | Options Vested and Expected to Vest | ||||||||||
Number (in thousands) | 798 | 500 | 797 | |||||||||
Weighted-average exercise price | $ | 4.41 | $ | 3.25 | $ | 4.41 | ||||||
Aggregate intrinsic value (in millions) | $ | 8.6 | $ | 6 | $ | 8.6 | ||||||
Weighted average remaining contractual term (in years) | 4.3 | 3.4 | 4.3 | |||||||||
RSU activity | Following is a summary of RSU activity (shares in thousands): | |||||||||||
RSUs Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Grant Date Fair Value per Share | ||||||||||||
Outstanding at December 31, 2013 | 139 | $ | 3.58 | |||||||||
Granted | 29 | 8.86 | ||||||||||
Forfeited, canceled or expired | — | — | ||||||||||
Vested | (81 | ) | 10.78 | |||||||||
Outstanding at December 31, 2014 | 87 | $ | 5.93 | |||||||||
PSU activity | Following is a summary of PSU activity (shares in thousands): | |||||||||||
PSUs Outstanding | Weighted- | |||||||||||
Average | ||||||||||||
Grant Date Fair Value per Share | ||||||||||||
Outstanding at December 31, 2013 | 84 | $ | 3.76 | |||||||||
Granted | 82 | 8.22 | ||||||||||
Forfeited, canceled or expired | — | — | ||||||||||
Vested | — | — | ||||||||||
Outstanding at December 31, 2014 | 166 | $ | 5.97 | |||||||||
Stock-based compensation | Stock-based compensation expense, primarily included in General and Administrative expense, was as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Stock options | $ | 592 | $ | 337 | $ | 355 | ||||||
Restricted stock units | 121 | 54 | 188 | |||||||||
Performance stock units | 353 | 63 | 87 | |||||||||
$ | 1,066 | $ | 454 | $ | 630 | |||||||
Other information regarding stock-based compensation | Certain other information regarding our stock-based compensation was as follows (in thousands, except per share amounts): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted average grant-date per share fair value of stock options granted | $ | 5.36 | $ | 4.37 | $ | 1.89 | ||||||
Total intrinsic value of stock options exercised | 736 | 451 | 33 | |||||||||
Fair value of RSUs vested | 872 | 545 | 405 | |||||||||
Fair value of PSUs vested | — | 386 | — | |||||||||
Assumptions | Assumptions used in calculating the fair value of stock option grants were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 0.9 | % | ||||||
Expected life (years) | 4.75 | 4.75 | 4.75 | |||||||||
Expected volatility | 80 | % | 89 | % | 92 | % |
Income_Loss_Per_Share_Tables
Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Weighted Average Number of Shares Outstanding Used to Compute Income Per Share | The weighted average numbers of shares outstanding used to compute income per share amounts were as follows (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Shares used for basic per share calculations | 31,253 | 31,072 | 30,851 | ||||||
Dilutive effect of outstanding options, PSUs and RSUs | 435 | 385 | 123 | ||||||
Shares used for diluted per share calculations | 31,688 | 31,457 | 30,974 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||||||
As of December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Stock options | 225 | 304 | 1,072 | ||||||
PSUs | — | 12 | 26 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Summary Information by Reportable Segments | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net Sales: | ||||||||||||
Direct | $ | 175,593 | $ | 136,663 | $ | 124,978 | ||||||
Retail | 93,223 | 76,775 | 63,891 | |||||||||
Unallocated royalty income | 5,631 | 5,365 | 5,057 | |||||||||
Consolidated Net Sales | $ | 274,447 | $ | 218,803 | $ | 193,926 | ||||||
Contribution: | ||||||||||||
Direct | $ | 29,345 | $ | 14,126 | $ | 12,479 | ||||||
Retail | 13,279 | 11,431 | 7,855 | |||||||||
Unallocated royalty income | 5,631 | 5,365 | 5,057 | |||||||||
Consolidated contribution | $ | 48,255 | $ | 30,922 | $ | 25,391 | ||||||
Reconciliation of consolidated contribution to income from continuing operations: | ||||||||||||
Consolidated contribution | $ | 48,255 | $ | 30,922 | $ | 25,391 | ||||||
Amounts not directly related to segments: | ||||||||||||
Operating expenses | (18,101 | ) | (15,198 | ) | (14,801 | ) | ||||||
Other income (expense), net | 70 | 315 | (174 | ) | ||||||||
Income tax (provision) benefit | (9,841 | ) | 32,085 | 226 | ||||||||
Income from continuing operations | $ | 20,383 | $ | 48,124 | $ | 10,642 | ||||||
Depreciation and amortization expense: | ||||||||||||
Direct | $ | 1,913 | $ | 1,956 | $ | 2,366 | ||||||
Retail | 643 | 642 | 825 | |||||||||
Unallocated corporate | 1,468 | 746 | 78 | |||||||||
Total depreciation and amortization expense | $ | 4,024 | $ | 3,344 | $ | 3,269 | ||||||
December 31, | ||||||||||||
Assets: | 2014 | 2013 | ||||||||||
Direct | $ | 25,263 | $ | 21,249 | ||||||||
Retail | 37,203 | 32,023 | ||||||||||
Unallocated corporate | 113,188 | 90,295 | ||||||||||
Total assets | $ | 175,654 | $ | 143,567 | ||||||||
Net Sales by Geographic Regions | Net sales by geographic area were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 231,230 | $ | 181,381 | $ | 167,504 | ||||||
Canada | 35,367 | 34,166 | 24,977 | |||||||||
All other | 7,850 | 3,256 | 1,445 | |||||||||
$ | 274,447 | $ | 218,803 | $ | 193,926 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2014, future minimum lease payments under non-cancelable leases, reduced for sublease income, were as follows (in thousands): | |||||||||||
2015 | $ | 4,050 | ||||||||||
2016 | 3,990 | |||||||||||
2017 | 3,250 | |||||||||||
2018 | 2,249 | |||||||||||
2019 | 2,575 | |||||||||||
Thereafter | 9,803 | |||||||||||
$ | 25,917 | |||||||||||
Schedule of Rent Expense | Rent expense under all operating leases was as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 3,625 | $ | 3,473 | $ | 3,218 | ||||||
Supplementary_Information_Quar1
Supplementary Information - Quarterly Results of Operations (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following table summarizes our unaudited quarterly financial data for 2014 and 2013 (in thousands, except per share amounts): | |||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
31-Mar | 30-Jun | September 30 | December 31 | Total | ||||||||||||||||
2014 | ||||||||||||||||||||
Net sales | $ | 71,903 | $ | 48,546 | $ | 59,067 | $ | 94,931 | $ | 274,447 | ||||||||||
Gross profit | 38,481 | 24,780 | 28,795 | 48,519 | 140,575 | |||||||||||||||
Operating income | 9,001 | 2,379 | 4,281 | 14,493 | 30,154 | |||||||||||||||
Income from continuing operations | 5,748 | 1,498 | 2,664 | 10,473 | 20,383 | |||||||||||||||
Loss from discontinued operations | (374 | ) | (941 | ) | (177 | ) | (96 | ) | (1,588 | ) | ||||||||||
Net income(1) | 5,374 | 557 | 2,487 | 10,377 | 18,795 | |||||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.02 | $ | 0.08 | $ | 0.33 | $ | 0.6 | ||||||||||
Diluted (2) | 0.17 | 0.02 | 0.08 | 0.33 | 0.59 | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 59,214 | $ | 36,242 | $ | 46,256 | $ | 77,091 | $ | 218,803 | ||||||||||
Gross profit | 30,694 | 17,329 | 21,777 | 36,677 | 106,477 | |||||||||||||||
Operating income (loss) | 5,994 | (1,724 | ) | 1,336 | 10,118 | 15,724 | ||||||||||||||
Income from continuing operations | 5,524 | 32,668 | 1,500 | 8,432 | 48,124 | |||||||||||||||
Income (loss) from discontinued operations | (365 | ) | 195 | (116 | ) | 116 | (170 | ) | ||||||||||||
Net income (1) | 5,159 | 32,863 | 1,384 | 8,548 | 47,954 | |||||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.17 | $ | 1.06 | $ | 0.04 | $ | 0.27 | $ | 1.54 | ||||||||||
Diluted (2) | 0.17 | 1.05 | 0.04 | 0.27 | 1.52 | |||||||||||||||
(1) Net income in the quarters ended December 31, 2014 and June 30, 2013 included a $1.2 million and a $35.8 million credit, respectively, related to the reversal of a portion of our deferred tax asset valuation allowance. | ||||||||||||||||||||
(2) May not add due to rounding. |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2010 | |
Significant Accounting Policies [Line Items] | ||||||
Beginning Balance | $4,106,000 | $4,990,000 | $5,113,000 | 4,990,000 | ||
Charges to reserve | 15,285,000 | 13,345,000 | 11,730,000 | |||
Reductions for sales discounts and returns | -15,095,000 | -14,229,000 | -11,853,000 | |||
Ending Balance | 4,990,000 | 4,296,000 | 4,106,000 | 4,990,000 | ||
Marketing and advertising expense | 42,600,000 | 35,800,000 | 30,900,000 | |||
Prepaid advertising | 1,400,000 | 2,200,000 | ||||
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | 6,200,000 | |||||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Product Warranty Period | 30 days | |||||
Furniture, equipment and information systems [Member] | Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life (in years) | 3 years | |||||
Furniture, equipment and information systems [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life (in years) | 7 years | |||||
Customer Concentration Risk [Member] | Consolidated Net Sales [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of major customers | 1 | 1,000 | ||||
Customer Concentration Risk [Member] | Customer A [Member] | Consolidated Net Sales [Member] | Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 10.00% | 10.00% | ||||
Customer Concentration Risk [Member] | Customer A [Member] | Consolidated Net Sales [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 15.00% | 15.00% | ||||
Sherborne [Member] | Notes Payable, Other Payables [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Original principal amount | 5,000,000 | |||||
Interest expense | $500,000 |
Discontinued_Operation_Details
Discontinued Operation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $0 | $0 | $0 | ||||||||
Loss from discontinued operations | -1,134 | -559 | 6,007 | ||||||||
Income tax (provision) benefit | -454 | 389 | 234 | ||||||||
Income (loss) from discontinued operations | -96 | -177 | -941 | -374 | 116 | -116 | 195 | -365 | -1,588 | -170 | 6,241 |
Commercial [Member] | Severance and Benefits [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Balance | 0 | 0 | 0 | 0 | 175 | ||||||
Adjustments | 0 | ||||||||||
Payments | 0 | 0 | -175 | ||||||||
Balance | 0 | 0 | 0 | 0 | 0 | ||||||
Commercial [Member] | Lease Obligations [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Balance | 831 | 1,118 | 831 | 1,118 | 1,929 | ||||||
Adjustments | -390 | ||||||||||
Payments | -258 | -287 | -421 | ||||||||
Balance | 573 | 831 | 573 | 831 | 1,118 | ||||||
Commercial [Member] | Commercial [Member] | |||||||||||
Loss from discontinued operations | -1,134 | -559 | -163 | ||||||||
Reclassification of foreign currency translation gains to income upon substantial liquidation of subsidiaries | 0 | 0 | 6,170 | ||||||||
Income tax (provision) benefit | -454 | 389 | 234 | ||||||||
Income (loss) from discontinued operations | ($1,588) | ($170) | $6,241 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | $24,068 |
Available-for-Sale Securities | 26,984 |
Total assets measured at fair value | 51,052 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 2,591 |
Available-for-Sale Securities | 0 |
Total assets measured at fair value | 2,591 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 21,477 |
Available-for-Sale Securities | 26,984 |
Total assets measured at fair value | 48,461 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Available-for-Sale Securities | 0 |
Total assets measured at fair value | 0 |
Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 2,591 |
Money market funds | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 2,591 |
Money market funds | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Money market funds | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Certificates of deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 980 |
Available-for-Sale Securities | 14,202 |
Certificates of deposit | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Available-for-Sale Securities | 0 |
Certificates of deposit | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 980 |
Available-for-Sale Securities | 14,202 |
Certificates of deposit | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Available-for-Sale Securities | 0 |
Commercial paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 12,497 |
Commercial paper | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Commercial paper | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 12,497 |
Commercial paper | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Variable rate demand notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 8,000 |
Variable rate demand notes | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Variable rate demand notes | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 8,000 |
Variable rate demand notes | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash Equivalents | 0 |
Corporate bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-Sale Securities | 12,782 |
Corporate bonds | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-Sale Securities | 0 |
Corporate bonds | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-Sale Securities | 12,782 |
Corporate bonds | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-Sale Securities | $0 |
Trade_Receivables_Details
Trade Receivables (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Trade receivables | $26,368 | $25,389 | |
Allowance for doubtful accounts | -108 | -53 | |
Total trade receivable | 26,260 | 25,336 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, January 1 | 53 | 93 | 300 |
Charges to (reversals of) bad debt expense | 104 | 588 | -13 |
Writeoffs, net of recoveries | -49 | -628 | -194 |
Balance, December 31 | $108 | $53 | $93 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $23,765 | $14,259 |
Parts and components | 1,131 | 1,565 |
Total inventories | $24,896 | $15,824 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $35,802 | $49,040 | |||
Accumulated depreciation | -26,168 | -40,541 | |||
Total property, plant and equipment, net | 9,634 | 8,499 | |||
Depreciation expense | 1,983 | 1,254 | 1,199 | ||
Automobiles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 23 | 0 | |||
Estimated useful life (in years) | 5 years | ||||
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 2,144 | 2,869 | |||
Leasehold improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 5 years | ||||
Leasehold improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 20 years | ||||
Computer equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 25,397 | 35,554 | |||
Computer equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 3 years | ||||
Computer equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 7 years | ||||
Machinery and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 6,709 | 5,648 | |||
Machinery and equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 3 years | ||||
Machinery and equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life (in years) | 5 years | ||||
Furniture and fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 1,108 | 688 | |||
Estimated useful life (in years) | 5 years | ||||
Work in progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $421 | [1] | $4,281 | [1] | |
[1] | Work in progress includes production tooling construction in progress |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Balance | $2,740 | $2,940 | $2,873 |
Currency exchange rate adjustment | -220 | -200 | 67 |
Balance | $2,520 | $2,740 | $2,940 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite life trademarks | $9,052 | $9,052 | |
Patents | 18,154 | 18,154 | |
Intangible Assets, Gross (Excluding Goodwill) | 27,206 | 27,206 | |
Accumulated amortization - patents | -16,631 | -14,591 | |
Total other intangible assets, net | 10,575 | 12,615 | |
Amortization expense for intangible assets | 2,040 | 2,050 | 2,050 |
2014 | 828 | ||
2015 | 430 | ||
2016 | 143 | ||
2017 | 65 | ||
2018 | 35 | ||
Thereafter | 22 | ||
Finite-Lived Intangible Assets, Net | $1,523 | ||
Minimum [Member] | Patents [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Maximum [Member] | Patents [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 16 years |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Payroll and benefits | $5,058 | $4,244 |
Other | 4,793 | 4,879 |
Accrued liabilities | $9,851 | $9,123 |
Product_Warranties_Details
Product Warranties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Product Warranty Liability [Roll Forward] | |||
Beginning Balance | $1,638 | $2,492 | $2,017 |
Accruals | 2,264 | 1,097 | 2,615 |
Adjustments | 0 | -186 | -170 |
Payments | -1,656 | -1,765 | -1,970 |
Ending Balance | $2,246 | $1,638 | $2,492 |
Borrowings_Loan_Agreement_Deta
Borrowings (Loan Agreement) (Details) (USD $) | Dec. 31, 2014 |
Debt Disclosure [Abstract] | |
Maximum revolving secured credit line | $20,000,000 |
Borrowing rate under agreement, at period end | 1.17% |
Standby letters of credit outstanding | 600,000 |
Avaiable for borrowing under line of credit | 19,400,000 |
Line of Credit Facility, Amount Outstanding | $0 |
Borrowings_Notes_Details
Borrowings (Notes) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2010 | |
Increasing Rate Senior Discount Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate through maturity date | 8.70% | |||
Effective rate of interest | 6.40% | |||
Notes Payable, Other Payables [Member] | Sherborne [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal at maturity | $6,100,000 | |||
Original principal amount | 5,000,000 | |||
Interest expense | $500,000 |
Income_Taxes_Income_Loss_Befor
Income Taxes - Income (Loss) Before Tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | $29,115 | $15,386 | $10,025 |
Non-U.S. | 1,109 | 653 | 391 |
Income from continuing operations before income taxes | $30,224 | $16,039 | $10,416 |
Income_Taxes_Expense_Details
Income Taxes - Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
U.S. federal | $1,086 | $541 | ($579) |
U.S. state | 100 | 56 | 53 |
Non-U.S. | 222 | -12 | 155 |
Total current | 1,408 | 585 | -371 |
Deferred: | |||
U.S. federal | 8,913 | -29,552 | 177 |
U.S. state | -558 | -3,370 | 17 |
Non-U.S. | 78 | 252 | -49 |
Total deferred | 8,433 | -32,670 | 145 |
Total income tax expense (benefit) | $9,841 | ($32,085) | ($226) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Line Items] | ||||
Equity Increase, Deferred Tax Realization | $800,000 | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Accrued liabilities | 3,510,000 | 3,510,000 | 3,230,000 | |
Allowance for doubtful accounts | 33,000 | 33,000 | 20,000 | |
Inventory valuation | 377,000 | 377,000 | 312,000 | |
Capitalized indirect inventory costs | 295,000 | 295,000 | 159,000 | |
Stock-based compensation expense | 558,000 | 558,000 | 376,000 | |
Net operating loss carryforward | 19,742,000 | 19,742,000 | 35,635,000 | |
Basis difference on long-lived assets | 3,289,000 | 3,289,000 | 4,412,000 | |
Credit carryforward | 4,565,000 | 4,565,000 | 3,422,000 | |
Other | 339,000 | 339,000 | 332,000 | |
Total deferred income tax assets before valuation allowance | 32,708,000 | 32,708,000 | 47,898,000 | |
Valuation allowance | -6,156,000 | -6,156,000 | -12,944,000 | |
Total deferred income tax assets, net of valuation allowance | 26,552,000 | 26,552,000 | 34,954,000 | |
Prepaid advertising | -467,000 | -467,000 | -793,000 | |
Other prepaids | -696,000 | -696,000 | -592,000 | |
Basis difference on long-lived assets | 3,355,000 | 3,355,000 | 2,938,000 | |
Undistributed earnings of foreign subsidiaries | -179,000 | -179,000 | -177,000 | |
Other | -1,000 | -1,000 | -288,000 | |
Deferred income tax liabilities | -4,698,000 | -4,698,000 | -4,788,000 | |
Net deferred income tax asset | 21,854,000 | 21,854,000 | 30,166,000 | |
Number of Years Cumulative Income or Loss Evaluated | 3 years | |||
Income tax benefit due to reduction of existing valuation allowance | 1,200,000 | 35,800,000 | 38,900,000 | |
Loss and Other Credit Carryforward [Member] | ||||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Valuation allowance | -2,900,000 | -2,900,000 | ||
Foreign Operating Loss Carryforward [Member] | ||||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Valuation allowance | ($3,300,000) | ($3,300,000) |
Income_Taxes_Deferred_Tax_Liab
Income Taxes - Deferred Tax Liability (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net Deferred Income Tax Liability [Abstract] | ||
Deferred income tax assets | $12,368 | $4,441 |
Long-term deferred income tax assets | 9,546 | 25,725 |
Non-current deferred income tax liabilities | -60 | 0 |
Net deferred income tax asset | $21,854 | $30,166 |
Income_Taxes_Reconciliation_De
Income Taxes - Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
State tax, net of U.S. federal tax benefit | 2.50% | 2.90% | 1.10% |
Non-U.S. income taxes | -0.30% | 1.20% | 0.00% |
Nondeductible incentive stock option expense | 0.20% | -0.40% | 0.40% |
Research and development credit | -2.40% | -0.70% | 0.00% |
Change in deferred tax measurement rate | 0.10% | 0.20% | 0.10% |
Change in uncertain tax positions | 1.50% | 2.20% | -6.50% |
Expiration of capital loss carryforward | 0.00% | 26.90% | 0.00% |
Valuation allowance | -4.10% | -267.60% | -32.30% |
Other | 0.10% | 0.20% | 0.00% |
Effective income tax rate for continuing operations | 32.60% | -200.10% | -2.20% |
Valuation allowance | $6,156 | $12,944 |
Income_Taxes_Carryforwards_Det
Income Taxes - Carryforwards (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $37.20 |
Income tax credit carryforwards | 3.6 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 85.3 |
Income tax credit carryforwards | 0.4 |
Switzerland | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 15 |
Italy | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $1.20 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $1,964,000 | $2,530,000 | $4,376,000 |
Additions for tax positions taken in prior years | 72,000 | 166,000 | 0 |
Reductions for tax positions taken in prior years | 0 | -472,000 | -972,000 |
Additions for tax positions related to the current year | 821,000 | 54,000 | 0 |
Lapses of statutes of limitations | -89,000 | -314,000 | -874,000 |
Unrecognized tax benefits, end of year | 2,768,000 | 1,964,000 | 2,530,000 |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 2,500,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 400,000 | 0 | 100,000 |
Cumulative liability for interest and penalties related to uncertain tax positions | 2,000,000 | 1,600,000 | |
Previously unrecognized tax benefit likely to be recognized within the next 12 months | $300,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 06, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares reserved for future issuance | 4,756,000 | |
2005 Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | |
Reduction in number of shares available for issuance due to settlement of stock appreciation rights and stock unit or performance unit award | 2 | |
Reduction in number of shares available for issuance due to settlement of stock option award | 1 | |
Shares available for issuance | 3,700,000 | |
Maximum aggregate shares of common stock subject to stock options, appreciation rights, restricted stock or performance stock unit awards | 1,000,000 | |
Stock Options [Member] | 2005 Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 7 years | |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Stock Options [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Options (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option Activity and Outstanding Options | |||
Options outstanding | 993 | ||
Granted | 154 | ||
Forfeited, cancelled or expired | -252 | ||
Exercised | -97 | ||
Options outstanding | 798 | 993 | |
Stock Option Activity and Weighted-Average Exercise Price | |||
Options outstanding, Weighted Average Exercise Price | $6.73 | ||
Granted, Weighted Average Exercise Price | $8.52 | ||
Forfeited, canceled or expired, Weighted Average Exercise Price | $16.46 | ||
Exercises, Weighted Average Exercise Price | $3.90 | ||
Options outstanding, Weighted Average Exercise Price | $4.41 | $6.73 | |
Options outstanding, Aggregate Intrinsic Value | $8,600,000 | ||
Options outstanding, Weighted-Average Remaining Contractual Life | 4 years 3 months 18 days | ||
Options exercisable, Number of Options Exercisable | 500 | ||
Options exercisable, Weighted-Average Exercise Price | $3.25 | ||
Options exercisable, aggregate intrinsic value | 6,000,000 | ||
Options exercisable, Weighted average remaining contractual term | 3 years 4 months 24 days | ||
Vested and expected to vest | 797 | ||
Vested and expected to vest, Weighted Average Exercise Price | $4.41 | ||
Vested and expected to vest, Aggregate Intrinsic Value | 8,600,000 | ||
Vested and expected to vest, remaining contractual term (in years) | 4 years 3 months 18 days | ||
Weighted average grant-date fair value of stock options granted | $5.36 | $4.37 | $1.89 |
Stock Options [Member] | |||
Stock Option Activity and Weighted-Average Exercise Price | |||
General and administrative | 592,000 | 337,000 | 355,000 |
Compensation expense for unvested stock options | $700,000 | ||
Weighted average period for unvested stock options | 1 year 6 months |
StockBased_Compensation_Stockb
Stock-Based Compensation - Stock-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $1,066 | $454 | $630 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General and administrative | 592 | 337 | 355 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General and administrative | 121 | 54 | 188 |
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General and administrative | $353 | $63 | $87 |
StockBased_Compensation_Restri
Stock-Based Compensation- Restricted Stock Units (Details) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units [Member] | |
Restricted Stock Units Activity and Outstanding | |
Stock units outstanding | 139,000 |
Granted | 29,000 |
Forfeited | 0 |
Vested | -81,000 |
Stock units outstanding | 87,000 |
Restricted Stock Units Activity and Weighted Average Grant Date Fair Value per Share | |
Stock units outstanding, Weighted Average Grant Date Fair Value | $3.58 |
Granted, Weighted Average Grant Date Fair Value | $8.86 |
Forfeited, Weighted Average Grant Date Fair Value | $0 |
Vested, Weighted Average Grant Date Fair Value | $10.78 |
Stock units outstanding, Weighted Average Grant Date Fair Value | $5.93 |
StockBased_Compensation_Perfor
Stock-Based Compensation - Performance Stock Units (Details) (USD $) | 12 Months Ended | 1 Months Ended | 7 Months Ended | ||
Dec. 31, 2014 | Apr. 30, 2010 | Feb. 28, 2014 | 31-May-13 | Aug. 31, 2012 | |
Performance Shares [Member] | |||||
Performance Stock Units Activity and Outstanding | |||||
Stock units outstanding | 84,000 | ||||
Granted | 82,000 | ||||
Forfeited, canceled or expired | 0 | ||||
Vested | 0 | ||||
Stock units outstanding | 166,000 | ||||
Performance Stock Units Activity and Weighted Average Grant Date Fair Value per Share | |||||
Stock units outstanding, Weighted Average Grant Date Fair Value | $3.76 | ||||
Granted, Weighted Average Grant Date Fair Value | $8.22 | ||||
Forfeited, Canceled, or Expired, Weighted Average Grant Date Fair Value per Share | $0 | ||||
Vested, Weighted Average Grant Date Fair Value | $0 | ||||
Stock units outstanding, Weighted Average Grant Date Fair Value | $5.97 | ||||
Key Executive Employees Member [Member] | |||||
Performance Stock Units Activity and Weighted Average Grant Date Fair Value per Share | |||||
Vesting period | 3 years | ||||
Key Executive Employees Member [Member] | Performance Shares [Member] | |||||
Performance Stock Units Activity and Outstanding | |||||
Granted | 146,000 | 82,494 | 24,500 | 82,000 | |
Minimum [Member] | |||||
Performance Stock Units Activity and Weighted Average Grant Date Fair Value per Share | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percentage of Award Able to Vest | 60.00% | 60.00% | |||
Maximum [Member] | |||||
Performance Stock Units Activity and Weighted Average Grant Date Fair Value per Share | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percentage of Award Able to Vest | 150.00% | 150.00% |
StockBased_Incentive_Plan_and_
Stock-Based Incentive Plan and Stock-Based Compensation Stock Compensation, Other (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of stock options granted | $5.36 | $4.37 | $1.89 |
Total intrinsic value of stock options exercised | $736 | $451 | $33 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of units vested | 1 | 1 | 0 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of units vested | $0 | $0 | $0 |
StockBased_Incentive_Plan_and_1
Stock-Based Incentive Plan and Stock-Based Compensation Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.70% | 0.90% | 0.90% |
Expected life (years) | 4 years 9 months | 4 years 9 months | 4 years 9 months |
Expected volatility | 80.00% | 89.00% | 92.00% |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program, Authorized Amount | $15 |
Stock Repurchase Program, Period in Force | 24 months |
Stock Repurchase Program Expiration Date | 3-Nov-16 |
Income_Loss_Per_Share_Details
Income (Loss) Per Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income per share: | |||
Basic weighted average shares outstanding | 31,253 | 31,072 | 30,851 |
Dilutive potential common shares | 435 | 385 | 123 |
Diluted weighted average shares outstanding | 31,688 | 31,457 | 30,974 |
Stock Options [Member] | |||
Income per share: | |||
Anti-dilutive securities excluded from computation of diluted income per share | 225 | 304 | 1,072 |
Performance Stock Units [Member] | |||
Income per share: | |||
Anti-dilutive securities excluded from computation of diluted income per share | 0 | 12 | 26 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Net sales | $94,931 | $59,067 | $48,546 | $71,903 | $77,091 | $46,256 | $36,242 | $59,214 | $274,447 | $218,803 | $193,926 |
Consolidated contribution | 48,255 | 30,922 | 25,391 | ||||||||
Operating Expenses | 110,421 | 90,753 | 80,449 | ||||||||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||||||||||
Selling and marketing | 81,059 | 66,486 | 58,617 | ||||||||
Income tax expense | -9,841 | 32,085 | 226 | ||||||||
Income from continuing operations | 10,473 | 2,664 | 1,498 | 5,748 | 8,432 | 1,500 | 32,668 | 5,524 | 20,383 | 48,124 | 10,642 |
Depreciation and amortization expense | 4,024 | 3,344 | 3,269 | ||||||||
Assets | 175,654 | 143,567 | 175,654 | 143,567 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 231,230 | 181,381 | 167,504 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 35,367 | 34,166 | 24,977 | ||||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 7,850 | 3,256 | 1,445 | ||||||||
Direct [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 175,593 | 136,663 | 124,978 | ||||||||
Consolidated contribution | 29,345 | 14,126 | 12,479 | ||||||||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||||||||||
Depreciation and amortization expense | 1,913 | 1,956 | 2,366 | ||||||||
Assets | 25,263 | 21,249 | 25,263 | 21,249 | |||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 93,223 | 76,775 | 63,891 | ||||||||
Consolidated contribution | 13,279 | 11,431 | 7,855 | ||||||||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||||||||||
Depreciation and amortization expense | 643 | 642 | 825 | ||||||||
Assets | 37,203 | 32,023 | 37,203 | 32,023 | |||||||
Unallocated royalty income [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,631 | 5,365 | 5,057 | ||||||||
Consolidated contribution | 5,631 | 5,365 | 5,057 | ||||||||
Unallocated corporate [Member] | |||||||||||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||||||||||
Depreciation and amortization expense | 1,468 | 746 | 78 | ||||||||
Assets | 113,188 | 90,295 | 113,188 | 90,295 | |||||||
Less expenses not directly related to segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Expenses | -18,101 | -15,198 | -14,801 | ||||||||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||||||||||
Other income (expense), net | 70 | 315 | -174 | ||||||||
Income tax expense | $9,841 | ($32,085) | ($226) |
Segment_Information_Segment_in
Segment Information Segment informaion (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense under all operating leases | $3,625,000 | $3,473,000 | $3,218,000 | |
Standy by letters of credit with certain vendors | 600,000 | |||
Non-cancelable market-based purchase obligation | 21,300,000 | |||
Estimated future warranty cost | $2,246,000 | $1,638,000 | $2,492,000 | $2,017,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Operating Lease (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense under all operating leases | $3,625 | $3,473 | $3,218 |
2014 | 4,050 | ||
2015 | 3,990 | ||
2016 | 3,250 | ||
2017 | 2,249 | ||
2018 | 2,575 | ||
Thereafter | 9,803 | ||
Total minimum non-cancelable lease payments, net | $25,917 |
Supplementary_Information_Quar2
Supplementary Information - Quarterly Results of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $94,931,000 | $59,067,000 | $48,546,000 | $71,903,000 | $77,091,000 | $46,256,000 | $36,242,000 | $59,214,000 | $274,447,000 | $218,803,000 | $193,926,000 | ||||||||
Gross profit | 48,519,000 | 28,795,000 | 24,780,000 | 38,481,000 | 36,677,000 | 21,777,000 | 17,329,000 | 30,694,000 | 140,575,000 | 106,477,000 | 91,037,000 | ||||||||
Operating income (loss) | 14,493,000 | 4,281,000 | 2,379,000 | 9,001,000 | 10,118,000 | 1,336,000 | -1,724,000 | 5,994,000 | 30,154,000 | 15,724,000 | 10,588,000 | ||||||||
Income from continuing operations | 10,473,000 | 2,664,000 | 1,498,000 | 5,748,000 | 8,432,000 | 1,500,000 | 32,668,000 | 5,524,000 | 20,383,000 | 48,124,000 | 10,642,000 | ||||||||
Income (loss) from discontinued operation | -96,000 | -177,000 | -941,000 | -374,000 | 116,000 | -116,000 | 195,000 | -365,000 | -1,588,000 | -170,000 | 6,241,000 | ||||||||
Net income | 10,377,000 | [1] | 2,487,000 | [1] | 557,000 | [1] | 5,374,000 | [1] | 8,548,000 | [1] | 1,384,000 | [1] | 32,863,000 | [1] | 5,159,000 | [1] | 18,795,000 | 47,954,000 | 16,883,000 |
Basic | $0.33 | $0.08 | $0.02 | $0.17 | $0.27 | $0.04 | $1.06 | $0.17 | $0.60 | $1.54 | $0.55 | ||||||||
Diluted | $0.33 | $0.08 | $0.02 | $0.17 | $0.27 | $0.04 | $1.05 | $0.17 | $0.59 | $1.52 | $0.55 | ||||||||
Income tax benefit due to reduction of existing valuation allowance | $1,200,000 | $35,800,000 | $38,900,000 | ||||||||||||||||
[1] | Net income in the quarters ended December 31, 2014 and June 30, 2013 included a $1.2 million and a $35.8 million credit, respectively, related to the reversal of a portion of our deferred tax asset valuation allowance. |
Uncategorized_Items
Uncategorized Items | |||
[us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax] | 6,878,000 | ||
[us-gaap_CommonStocksIncludingAdditionalPaidInCapital] | 5,360,000 | ||
[us-gaap_RetainedEarningsAccumulatedDeficit] | 19,715,000 |