Nautilus 2015 Annual Report Download - page 49
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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, 2015 . We did not have any changes to our valuation techniques during the year ended December 31, 2015 .
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Level 1 investment valuations are obtained from real-time
quotes for transactions in active exchange markets involving identical assets. Level 2 investment 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 years ended December 31, 2015
and 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, 2015
and 2014 , we did not perform any valuations on assets or liabilities that are valued at fair value on a nonrecurring basis.
The carrying value of our term loan approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on
current market rates.
(5) TRADE RECEIVABLES
Trade receivables, net, consisted of the following (in thousands):
December 31,
2015
2014
Trade receivables $ 46,073
$ 26,368
Allowance for doubtful accounts (918)
(108)
$ 45,155
$ 26,260
Changes in our allowance for doubtful trade receivables were as follows (in thousands):
2015
2014
2013
Balance, January 1 $ 108
$ 53
$ 93
Charges to bad debt expense 786
104
588
Recoveries (write-offs), net 24
(49)
(628)
Balance, December 31 $ 918
$ 108
$ 53
(6) INVENTORIES
Inventories consisted of the following (in thousands):
December 31,
2015
2014
Finished goods $ 39,115
$ 23,765
Parts and components 3,614
1,131
$ 42,729
$ 24,896
45