Nautilus 2015 Annual Report Download - page 60
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Please find page 60 of the 2015 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.(18) 401(k) SAVINGS PLAN
The Company sponsors a 401(k) savings plan that allows eligible employees to contribute a certain percentage of their salary. Employees are automatically
enrolled within the first month of employment and have the ability to opt out. As a safe harbor plan sponsor, we are subject to non-discretionary matching
contributions. Currently, we match 100% of the employee's first 1% of eligible pay contributed plus 50% of eligible pay contributed on the next 5% , for a
maximum employer matching of 3.5% . Employees vest in the employer matching portions at 25% after the first year of employment, and 100% after two years of
employment. Our matching contributions for the savings plan were as follows (in thousands):
Year ended December 31,
2015
2014
2013
401(k) matching contributions $ 746
$ 631
$ 544
(19) SEGMENT AND ENTERPRISE-WIDE INFORMATION
In accordance with FASB ASC 280, Segment Reporting , Nautilus determined that it has three operating segments as of December 31, 2015 - Direct, Retail and
Octane. Based on the aggregation criteria of ASC 280-10, we determined that two of the operating segments (Retail and Octane) can be aggregated due to these
segments having similar economic characteristics and meeting the aggregation criteria. As a result, we have two reportable segments - Direct and Retail. This
financial reporting structure was effective as of December 31, 2015, the acquisition date of Octane. Since the acquisition occurred on December 31, no amount of
net sales, contribution or expenses related to the Octane business were included in our reported Retail segment results for 2015. Retail segment assets, however, do
include the identifiable assets acquired from Octane, as further discussed in Note 2, Business Acquisition .
We evaluate performance using several factors, of which the primary financial measures are net sales and reportable segment contribution. 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.
The accounting policies of the reportable segments are the same as the policies described in Note 1, Significant Accounting Policies .
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