Nautilus 2013 Annual Report Download - page 33

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk
Our exposure to market risk from changes in interest rates relates primarily to our cash and cash equivalents. The primary objective of our
investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing in
diversified investments, consisting only of investment-grade securities.
As of December 31, 2013, we held cash and cash equivalents of $41.0 million
. Given that cash equivalents mature within three months or less
from the date of purchase, a decline in interest rates over time would reduce our interest income, but would not have a material impact on our
results of operations, financial position or cash flows. In addition, due to the nature of our cash equivalents, a decline in interest rates would not
materially affect the fair value of our cash equivalents.
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