Nautilus 2014 Annual Report Download - page 29

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in the Retail segment. These costs as a percentage of Net Sales declined in 2014 compared to 2013 as a result of the year-over-
year revenue
growth in both segments.
Media advertising expense of our Direct business is the largest component of Selling and Marketing and was as follows:
We made strategic increased investments in media and creative advertising in 2014 to further support Bowflex TreadClimber
®
and the launch of
Bowflex Max Trainer
®
.
General and Administrative
The increase in General and Administrative in 2014 compared to 2013 was due to increased employee-related costs of $0.9 million
, higher
spending on intellectual property registration and legal fees for patent enforcement of $0.8 million , product liability and other legal costs of
$0.8
million , increased technology and facilities infrastructure costs of $0.6 million
, and higher general insurance and business taxes expenses of
$0.3 million .
The increase in General and Administrative in 2013 compared to 2012 was primarily due to a $0.4 million
increase in infrastructure costs and a
$0.8 million increase in employee-related costs, partially offset by a $0.3 million one-time charge in 2012 for lease write-off costs.
The decreases in General and Administrative as a percentage of Net Sales in 2014 compared to 2013 and in 2013 compared to 2012
were
primarily due to higher Net Sales.
Research and Development
The increases in Research and Development in 2014 compared to 2013 and in 2013 compared to 2012
were primarily due to our continued
investment in additional engineering and product development headcount. We expect Research and Development expense to increase in
2015
compared to 2014 , as we continue to invest in new product development resources.
23
Dollars in thousands
Year Ended December 31, Change
2014 2013 $ %
Media advertising $42,643 $35,819 $6,824 19.1%
Dollars in thousands
Year Ended December 31, Change
2013 2012 $ %
Media advertising $35,819 $30,903 $4,916 15.9%
Dollars in thousands
Year Ended December 31, Change
2014
2013 $ %
General and Administrative $22,131 $18,705 $3,426 18.3%
As % of Net Sales 8.1% 8.5%
Dollars in thousands
Year Ended December 31, Change
2013 2012 $ %
General and Administrative $18,705 $17,669 $1,036 5.9%
As % of Net Sales 8.5% 9.1%
Dollars in thousands
Year Ended December 31, Change
2014 2013 $ %
Research and Development $7,231 $5,562 $1,669 30.0%
As % of Net Sales 2.6% 2.5%
Dollars in thousands
Year Ended December 31, Change
2013 2012 $ %
Research and Development $5,562 $4,163 $1,399 33.6%
As % of Net Sales 2.5% 2.1%