Bowflex (BFXXQ) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	NAUTILUS, INC.
Entity Central Index Key	1,078,207
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,982,503

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 29,021	$ 45,206
Available-for-sale securities	45,647	26,984
Trade receivables, net of allowances of $25 and $108	19,091	26,260
Inventories	35,575	24,896
Prepaids and other current assets	5,973	6,987
Income taxes receivable	132	50
Deferred income tax assets, current portion	8,851	12,368
Total current assets	144,290	142,751
Property, plant and equipment, net	11,689	9,634
Goodwill	2,185	2,520
Other intangible assets, net	10,466	10,575
Long-term deferred income tax assets	3,541	9,546
Other assets	471	628
Total assets	172,642	175,654
Liabilities and Shareholders' Equity
Trade payables	38,895	47,574
Accrued liabilities	8,704	9,851
Warranty obligations	2,658	2,246
Total current liabilities	50,257	59,671
Income taxes payable	3,758	3,725
Other long-term liabilities	1,720	1,186
Total liabilities	$ 55,735	$ 64,582
Commitments and contingencies (Note 13)
Shareholders' equity:
Common stock - no par value, 75,000 shares authorized, 30,982 and 31,333 shares issued and outstanding	$ 191	$ 8,033
Retained earnings	117,804	103,347
Accumulated other comprehensive loss	(1,088)	(308)
Total shareholders' equity	116,907	111,072
Total liabilities and shareholders' equity	$ 172,642	$ 175,654

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful trade receivables	$ 25	$ 108
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	30,982,000	31,333,000
Common stock, shares outstanding	30,982,000	31,333,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales		$ 70,690	$ 59,067	$ 226,624	$ 179,517
Cost of sales		34,481	30,272	105,870	87,461
Gross profit		36,209	28,795	120,754	92,056
Operating expenses:
Selling and marketing		21,742	17,086	70,193	54,549
General and administrative		5,505	5,745	15,376	16,507
Research and development		2,573	1,683	7,259	5,338
Total operating expenses		29,820	24,514	92,828	76,394
Operating income		6,389	4,281	27,926	15,662
Other income (expense):
Interest income		61	18	164	42
Interest expense		(6)	(9)	(17)	(21)
Other, net		(15)	43	(412)	(74)
Total other income (expense), net		40	52	(265)	(53)
Income from continuing operations before income taxes		6,429	4,333	27,661	15,609
Income tax provision		2,556	1,669	10,710	5,699
Income from continuing operations		3,873	2,664	16,951	9,910
Discontinued operations:
Loss from discontinued operations before income taxes		(159)	(241)	(472)	(1,075)
Income tax provision (benefit) from discontinued operations		(14)	(64)	(405)	417
Loss from discontinued operations		(145)	(177)	(67)	(1,492)
Net income		$ 3,728	$ 2,487	$ 16,884	$ 8,418
Earnings Per Share, Basic [Abstract]
Basic income per share from continuing operations (in dollars per share)		$ 0.12	$ 0.09	$ 0.54	$ 0.32
Basic loss per share from discontinued operation (in dollars per share)		0	(0.01)	0	(0.05)
Basic net income per share (in dollars per share)		0.12	0.08	0.54	0.27
Earnings Per Share, Diluted [Abstract]
Diluted income per share from continuing operations (in dollars per share)		0.12	0.08	0.53	0.31
Diluted loss per share from discontinued operation (in dollars per share)		0	(0.01)	0	(0.05)
Diluted net income per share (in dollars per share)	[1]	$ 0.12	$ 0.08	$ 0.53	$ 0.27
Shares used in per share calculations:
Basic (in shares)		31,272	31,287	31,386	31,231
Diluted (in shares)		31,527	31,655	31,702	31,641
[1]	May not add due to rounding.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 3,728	$ 2,487	$ 16,884	$ 8,418
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale securities, net of income tax expense of $9, $0, $14 and $0	10	4	23	(6)
Foreign currency translation, net of income tax expense of $5, $5, $9 and $6	(451)	(253)	(803)	(241)
Current period other comprehensive income (loss)	(441)	(249)	(780)	(247)
Comprehensive income	$ 3,287	$ 2,238	$ 16,104	$ 8,171

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on marketable securities, tax expense	$ 9	$ 0	$ 14	$ 0
Foreign currency translation, tax expense	$ 5	$ 5	$ 9	$ 6

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Income from continuing operations	$ 16,951	$ 9,910
Loss from discontinued operations	(67)	(1,492)
Net income	16,884	8,418
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,511	2,887
Provision for (benefit from) allowance for doubtful accounts	(118)	38
Inventory lower-of-cost-or-market adjustments	136	305
Stock-based compensation expense	1,073	887
Loss on asset dispositions	289	13
Deferred income taxes, net of valuation allowance	9,503	4,142
Excess tax deficiency related to stock-based awards	1	288
Changes in operating assets and liabilities:
Trade receivables	7,514	6,855
Inventories	(10,748)	(5,844)
Prepaids and other current assets	1,205	763
Income taxes	(82)	469
Trade payables	(9,030)	(16,079)
Accrued liabilities, including warranty obligations	(630)	196
Net cash provided by operating activities	18,508	3,338
Cash flows from investing activities:
Purchases of available-for-sale securities	(55,230)	(20,973)
Proceeds from maturities of available-for-sale securities	33,186	2,980
Proceeds from sales of available-for-sale securities	3,381	0
Purchases of property, plant and equipment and intangible assets	(3,604)	(2,558)
Net cash used in investing activities	(22,267)	(20,551)
Cash flows from financing activities:
Proceeds from exercise of stock options	1,001	270
Payments for stock repurchases	(11,568)	0
Tax payments related to stock award issuances	(775)	0
Excess tax deficiency related to stock-based awards	(1)	(288)
Net cash used in financing activities	(11,343)	(18)
Effect of exchange rate changes on cash and cash equivalents	(1,083)	(8)
Decrease in cash and cash equivalents	(16,185)	(17,239)
Cash and cash equivalents:
Beginning of period	45,206	40,979
End of period	29,021	23,740
Supplemental disclosure of cash flow information:
Cash paid for interest	(17)	(21)
Cash paid for income taxes, net	(917)	(384)
Supplemental disclosure of non-cash investing activities:
Capital expenditures incurred but not yet paid	$ 602	$ 107

General Information

General Information	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General Information	GENERAL INFORMATION Basis of Consolidation and Presentation The accompanying condensed consolidated financial statements present the financial position, results of operations and cash flows of Nautilus, Inc. and its subsidiaries, all of which are wholly owned. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes the disclosures contained herein are adequate to make the information presented not misleading. However, these condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”). 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 and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Further information regarding significant estimates can be found in our 2014 Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2015 and December 31, 2014 , and our results of operations, comprehensive income and cash flows for the three and nine months ended September 30, 2015 and 2014 . Interim results are not necessarily indicative of results for a full year. Our revenues typically vary seasonally and this seasonality can have a significant effect on operating results, inventory levels and working capital needs. Unless indicated otherwise, all information regarding our operating results pertain to our continuing operations. New Accounting Pronouncements ASU 2015-11 In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out (“LIFO”) method by prescribing inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2015-11 to have a material effect on our financial position, results of operations or cash flows. ASU 2015-05 In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40).” ASU 2015-05 provides guidance regarding the accounting for a customer's fees paid in a cloud computing arrangement, specifically about whether a cloud computing arrangement includes a software license, and if so, how to account for the software license. ASU 2015-05 is effective for public companies' annual periods, including interim periods, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-05 to have a material effect on our financial position, results of operations or cash flows. ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30).” ASU 2015-03 simplifies the presentation of debt issuance costs. ASU 2015-03 is effective, as amended, for public company financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. We do not expect the adoption of ASU 2015-03 to have any effect on our financial position, results of operations or cash flows. ASU 2015-02 In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810).” ASU 2015-02 amends guidance regarding the consolidation of certain legal entities. ASU 2015-02 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. We do not expect the adoption of ASU 2015-02 to have any 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, as amended, for annual and interim periods beginning on or after December 15, 2017. 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.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	DISCONTINUED OPERATIONS There was no revenue related to discontinued operations for the nine months ended September 30, 2015 or the year ended December 31, 2014 . However, we continue to have legal and accounting expenses as we work with authorities on final deregistration of certain foreign entities and product liability expenses associated with product previously sold into the Commercial channel. The following table summarizes liabilities for exit costs related to discontinued operations, included in accrued liabilities and other long-term liabilities in our Condensed Consolidated Balance Sheets (in thousands): Facilities Leases Balance, December 31, 2014 $ 573 Payments (203 ) Balance, September 30, 2015 $ 370 We expect the lease obligations to be paid out through 2016 .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	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 as of September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, 2015 Level 1 Level 2 Level 3 Total Cash Equivalents Money market funds $ 8,401 $ — $ — $ 8,401 Commercial paper — 7,097 — 7,097 Corporate bonds — 308 — 308 Total cash equivalents 8,401 7,405 — 15,806 Available-for-Sale Securities Certificates of deposit (1) — 24,531 — 24,531 Commercial paper — 2,798 — 2,798 Corporate bonds — 18,318 — 18,318 Total available-for-sale securities — 45,647 — 45,647 Total assets measured at fair value $ 8,401 $ 53,052 $ — $ 61,453 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 liabilities measured at fair value on a recurring basis as of September 30, 2015 or December 31, 2014 . 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 nine months ended September 30, 2015 , nor for the year ended December 31, 2014 . We did not have any changes to our valuation techniques during the nine months ended September 30, 2015 , nor for the year ended December 31, 2014 . 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 comprehensive income until realized. 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. We did not perform any valuations on assets or liabilities that are valued at fair value on a nonrecurring basis during the first nine months of 2015. During the fourth quarter of 2014, we performed our annual goodwill and indefinite-lived trade names impairment analyses effective as of October 1, 2014. During the nine months ended September 30, 2015 and 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.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are stated at the lower of cost or market, with cost determined based on the first-in, first-out method. Our inventories consisted of the following (in thousands): As of September 30, 2015 December 31, 2014 Finished goods $ 33,768 $ 23,765 Parts and components 1,807 1,131 Total inventories $ 35,575 $ 24,896

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): Estimated Useful Life (in years) As of September 30, 2015 December 31, 2014 Automobiles 5 to 6 $ 139 $ 23 Leasehold improvements 5 to 20 2,140 2,144 Computer software and equipment 3 to 7 23,381 25,397 Machinery and equipment 3 to 5 7,484 6,709 Furniture and fixtures 5 1,196 1,108 Work in progress (1) N/A 1,585 421 Total cost 35,925 35,802 Accumulated depreciation (24,236 ) (26,168 ) Total property, plant and equipment, net $ 11,689 $ 9,634 (1) Work in progress includes production tooling and internal use software development.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill All goodwill is assigned to our Direct reporting segment. The rollforward of goodwill was as follows (in thousands): Balance, December 31, 2013 $ 2,740 Currency exchange rate adjustment (220 ) Balance, December 31, 2014 2,520 Currency exchange rate adjustment (335 ) Balance, September 30, 2015 $ 2,185 Other Intangible Assets Other intangible assets consisted of the following (in thousands): Estimated Useful Life (in years) As of September 30, 2015 December 31, 2014 Other intangible assets: Indefinite-lived trademarks N/A $ 9,052 $ 9,052 Patents 8 to 18 18,702 18,154 27,754 27,206 Accumulated amortization - patents (17,288 ) (16,631 ) Other intangible assets, net $ 10,466 $ 10,575 Amortization expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Patent amortization $ 188 $ 510 $ 657 $ 1,530 Future amortization of patents is as follows (in thousands): Remainder of 2015 $ 197 2016 497 2017 198 2018 106 2019 76 Thereafter 340 $ 1,414

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): As of September 30, 2015 December 31, 2014 Payroll and related liabilities $ 4,394 $ 5,058 Other 4,310 4,793 Total accrued liabilities $ 8,704 $ 9,851

Product Warranties

Product Warranties	9 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Product Warranties	PRODUCT WARRANTIES 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. Changes in our product warranty obligations were as follows (in thousands): Nine Months Ended September 30, 2015 2014 Balance, beginning of period $ 2,246 $ 1,638 Accruals 1,845 1,719 Payments (1,433 ) (1,236 ) Balance, end of period $ 2,658 $ 2,121

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss), net of applicable taxes, reported on our Condensed Consolidated Balance Sheets consists of unrealized holding gains and losses on available-for-sale securities and foreign currency translation adjustments. The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax (in thousands): Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, June 30, 2015 $ (5 ) $ (642 ) $ (647 ) Current period other comprehensive income (loss) 10 (451 ) (441 ) Balance, September 30, 2015 $ 5 $ (1,093 ) $ (1,088 ) Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, December 31, 2014 $ (18 ) $ (290 ) $ (308 ) Current period other comprehensive income (loss) 23 (803 ) (780 ) Balance, September 30, 2015 $ 5 $ (1,093 ) $ (1,088 ) Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance, June 30, 2014 $ (10 ) $ 256 $ 246 Current period other comprehensive income (loss) 4 (253 ) (249 ) Balance, September 30, 2014 $ (6 ) $ 3 $ (3 ) Unrealized Loss on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2013 $ — $ 244 $ 244 Current period other comprehensive loss (6 ) (241 ) (247 ) Balance, September 30, 2014 $ (6 ) $ 3 $ (3 )

Income Per Share

Income Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Income Per Share	INCOME PER SHARE Basic per share amounts were computed using the weighted average number of common shares outstanding. Diluted 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. The weighted average numbers of shares outstanding used to compute income per share were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares used to calculate basic income per share 31,272 31,287 31,386 31,231 Dilutive effect of outstanding stock options, performance stock units and restricted stock units 255 368 316 410 Shares used to calculate diluted income per share 31,527 31,655 31,702 31,641 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 because, in the case of stock options, the average market price did not exceed the exercise price, and for the performance stock units, because these shares are subject to performance conditions that had not been met. These shares may be dilutive potential common shares in the future (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options 7 212 10 247 Performance stock units — 198 — 20

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stock Repurchase Program	STOCK REPURCHASE PROGRAM On November 3, 2014 , our Board of Directors approved a stock repurchase program that authorized us to repurchase up to $15.0 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. Repurchases pursuant to the program were as follows: Quarter Ended Number of Shares Repurchased Amount Average Price Per Share March 31, 2015 133,877 $ 1,995,982 $14.91 September 30, 2015 577,831 9,571,545 16.56 Totals to Date 711,708 $ 11,567,527 $16.25 As of September 30, 2015 , $3.4 million remains available for future repurchases.

Segment and Enterprise-wide Inf

Segment and Enterprise-wide Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment and Enterprise-wide Information	SEGMENT AND ENTERPRISE-WIDE 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, prepaids and other current assets, deferred income tax assets, other assets, shared information technology infrastructure, distribution centers and corporate headquarters. Capital expenditures directly attributable to the Direct and Retail segments were not significant in either period presented. Following is summary information by reportable segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales: Direct $ 42,876 $ 34,498 $ 158,595 $ 117,589 Retail 25,730 23,467 64,424 58,609 Unallocated royalty income 2,084 1,102 3,605 3,319 Consolidated net sales $ 70,690 $ 59,067 $ 226,624 $ 179,517 Contribution: Direct $ 5,394 $ 4,133 $ 30,071 $ 18,375 Retail 3,224 3,703 5,900 7,537 Unallocated royalty income 2,084 1,102 3,605 3,319 Consolidated contribution $ 10,702 $ 8,938 $ 39,576 $ 29,231 Reconciliation of consolidated contribution to income from continuing operations: Consolidated contribution $ 10,702 $ 8,938 $ 39,576 $ 29,231 Amounts not directly related to segments: Operating expenses (4,313 ) (4,657 ) (11,650 ) (13,569 ) Other expense, net 40 52 (265 ) (53 ) Income tax expense (2,556 ) (1,669 ) (10,710 ) (5,699 ) Income from continuing operations $ 3,873 $ 2,664 $ 16,951 $ 9,910 There was no material change in the allocation of assets by segment during the first nine months of 2015 and, accordingly, assets by segment are not presented. For the three months ended September 30, 2015 , Amazon.com accounted for 13.6% of our total net sales, and no customer represented 10.0% or more of total net sales for the first nine months of 2015 . For the three and nine months ended September 30, 2014 , Amazon.com accounted for 10.3% and 10.1% , respectively, of our total net sales.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Guarantees, Commitments and Off-Balance Sheet Arrangements As of September 30, 2015 , we had approximately $0.6 million in standby letters of credit with certain vendors expiring April 2016 . We have long lead times for inventory purchases and, therefore, must secure factory capacity from our vendors in advance. As of September 30, 2015 , we had approximately $41.0 million in noncancelable 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 September 30, 2015 . 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. By decision dated April 27, 2015, the same panel of the Federal Circuit affirmed its earlier reversal of the District Court’s decision on summary judgment. On May 27, 2015, we filed a petition for a rehearing en banc in the Federal Circuit, which was denied on August 4, 2015. Accordingly, absent a grant of review by the U. S. Supreme Court, the case will be returned to the District Court for further proceedings. We do not believe that our use of heart rate monitors utilized or purchased from third parties, and otherwise, infringes 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 of our obligations under the license agreement, and that there is no continuing obligation for us 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. We replied to the counterclaim, denying the allegations and demanding remedies and asserting defenses. The arbitration is being administered by the American Arbitration Association and is in the discovery stage of the litigation process with an anticipated hearing date in February 2016. 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 September 30, 2015 . 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.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of liabilities for exit costs related to discontinued operations	The following table summarizes liabilities for exit costs related to discontinued operations, included in accrued liabilities and other long-term liabilities in our Condensed Consolidated Balance Sheets (in thousands): Facilities Leases Balance, December 31, 2014 $ 573 Payments (203 ) Balance, September 30, 2015 $ 370

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	Assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, 2015 Level 1 Level 2 Level 3 Total Cash Equivalents Money market funds $ 8,401 $ — $ — $ 8,401 Commercial paper — 7,097 — 7,097 Corporate bonds — 308 — 308 Total cash equivalents 8,401 7,405 — 15,806 Available-for-Sale Securities Certificates of deposit (1) — 24,531 — 24,531 Commercial paper — 2,798 — 2,798 Corporate bonds — 18,318 — 18,318 Total available-for-sale securities — 45,647 — 45,647 Total assets measured at fair value $ 8,401 $ 53,052 $ — $ 61,453 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.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories, Net of Valuation Allowances	nventories consisted of the following (in thousands): As of September 30, 2015 December 31, 2014 Finished goods $ 33,768 $ 23,765 Parts and components 1,807 1,131 Total inventories $ 35,575 $ 24,896

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment consisted of the following (in thousands): Estimated Useful Life (in years) As of September 30, 2015 December 31, 2014 Automobiles 5 to 6 $ 139 $ 23 Leasehold improvements 5 to 20 2,140 2,144 Computer software and equipment 3 to 7 23,381 25,397 Machinery and equipment 3 to 5 7,484 6,709 Furniture and fixtures 5 1,196 1,108 Work in progress (1) N/A 1,585 421 Total cost 35,925 35,802 Accumulated depreciation (24,236 ) (26,168 ) Total property, plant and equipment, net $ 11,689 $ 9,634 (1) Work in progress includes production tooling and internal use software development.

Goodwill and Other Intangible25

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill and Other Intangible Assets	The rollforward of goodwill was as follows (in thousands): Balance, December 31, 2013 $ 2,740 Currency exchange rate adjustment (220 ) Balance, December 31, 2014 2,520 Currency exchange rate adjustment (335 ) Balance, September 30, 2015 $ 2,185 Other Intangible Assets Other intangible assets consisted of the following (in thousands): Estimated Useful Life (in years) As of September 30, 2015 December 31, 2014 Other intangible assets: Indefinite-lived trademarks N/A $ 9,052 $ 9,052 Patents 8 to 18 18,702 18,154 27,754 27,206 Accumulated amortization - patents (17,288 ) (16,631 ) Other intangible assets, net $ 10,466 $ 10,575
Amortization Expense	Amortization expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Patent amortization $ 188 $ 510 $ 657 $ 1,530
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Future amortization of patents is as follows (in thousands): Remainder of 2015 $ 197 2016 497 2017 198 2018 106 2019 76 Thereafter 340 $ 1,414

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): As of September 30, 2015 December 31, 2014 Payroll and related liabilities $ 4,394 $ 5,058 Other 4,310 4,793 Total accrued liabilities $ 8,704 $ 9,851

Product Warranties (Tables)

Product Warranties (Tables)	9 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	Changes in our product warranty obligations were as follows (in thousands): Nine Months Ended September 30, 2015 2014 Balance, beginning of period $ 2,246 $ 1,638 Accruals 1,845 1,719 Payments (1,433 ) (1,236 ) Balance, end of period $ 2,658 $ 2,121

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax (in thousands): Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, June 30, 2015 $ (5 ) $ (642 ) $ (647 ) Current period other comprehensive income (loss) 10 (451 ) (441 ) Balance, September 30, 2015 $ 5 $ (1,093 ) $ (1,088 ) Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, December 31, 2014 $ (18 ) $ (290 ) $ (308 ) Current period other comprehensive income (loss) 23 (803 ) (780 ) Balance, September 30, 2015 $ 5 $ (1,093 ) $ (1,088 ) Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance, June 30, 2014 $ (10 ) $ 256 $ 246 Current period other comprehensive income (loss) 4 (253 ) (249 ) Balance, September 30, 2014 $ (6 ) $ 3 $ (3 ) Unrealized Loss on Available-for-Sale Securities Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2013 $ — $ 244 $ 244 Current period other comprehensive loss (6 ) (241 ) (247 ) Balance, September 30, 2014 $ (6 ) $ 3 $ (3 )

Income Per Share (Tables)

Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
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 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares used to calculate basic income per share 31,272 31,287 31,386 31,231 Dilutive effect of outstanding stock options, performance stock units and restricted stock units 255 368 316 410 Shares used to calculate diluted income per share 31,527 31,655 31,702 31,641
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	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 because, in the case of stock options, the average market price did not exceed the exercise price, and for the performance stock units, because these shares are subject to performance conditions that had not been met. These shares may be dilutive potential common shares in the future (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options 7 212 10 247 Performance stock units — 198 — 20

Stock Repurchase Program Stock

Stock Repurchase Program Stock Repurchase Program (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Stock Repurchases	Repurchases pursuant to the program were as follows: Quarter Ended Number of Shares Repurchased Amount Average Price Per Share March 31, 2015 133,877 $ 1,995,982 $14.91 September 30, 2015 577,831 9,571,545 16.56 Totals to Date 711,708 $ 11,567,527 $16.25

Segment and Enterprise-wide I31

Segment and Enterprise-wide Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Summary Information by Reportable Segments	Following is summary information by reportable segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales: Direct $ 42,876 $ 34,498 $ 158,595 $ 117,589 Retail 25,730 23,467 64,424 58,609 Unallocated royalty income 2,084 1,102 3,605 3,319 Consolidated net sales $ 70,690 $ 59,067 $ 226,624 $ 179,517 Contribution: Direct $ 5,394 $ 4,133 $ 30,071 $ 18,375 Retail 3,224 3,703 5,900 7,537 Unallocated royalty income 2,084 1,102 3,605 3,319 Consolidated contribution $ 10,702 $ 8,938 $ 39,576 $ 29,231 Reconciliation of consolidated contribution to income from continuing operations: Consolidated contribution $ 10,702 $ 8,938 $ 39,576 $ 29,231 Amounts not directly related to segments: Operating expenses (4,313 ) (4,657 ) (11,650 ) (13,569 ) Other expense, net 40 52 (265 ) (53 ) Income tax expense (2,556 ) (1,669 ) (10,710 ) (5,699 ) Income from continuing operations $ 3,873 $ 2,664 $ 16,951 $ 9,910

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Revenue related to discontinued operations	$ 0	$ 0
Facilities Leases
Restructuring Reserve [Roll Forward]
Balance, December 31, 2014	573,000
Payments	(203,000)
Balance, September 30, 2015	$ 370,000	$ 573,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	$ 15,806	$ 24,068
Available for Sale Securities	45,647	26,984
Assets measured at fair value	61,453	51,052
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	8,401	2,591
Available for Sale Securities	0	0
Assets measured at fair value	8,401	2,591
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	7,405	21,477
Available for Sale Securities	45,647	26,984
Assets measured at fair value	53,052	48,461
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Available for Sale Securities	0	0
Assets measured at fair value	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	8,401	2,591
Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	8,401	2,591
Money market funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Money market funds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	7,097	12,497
Available for Sale Securities	2,798
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Available for Sale Securities	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	7,097	12,497
Available for Sale Securities	2,798
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Available for Sale Securities	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
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents		980
Available for Sale Securities	24,531	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	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	24,531	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	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	308
Available for Sale Securities	18,318	12,782
Corporate bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0
Available for Sale Securities	0	0
Corporate bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	308
Available for Sale Securities	18,318	12,782
Corporate bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0
Available for Sale Securities	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods	$ 33,768	$ 23,765
Parts and components	1,807	1,131
Total inventories	$ 35,575	$ 24,896

Property, Plant and Equipment (

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 35,925	$ 35,802
Accumulated depreciation	(24,236)	(26,168)
Total property, plant and equipment, net	11,689	9,634
Automobiles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 139	23
Automobiles | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	5 years
Automobiles | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	6 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,140	2,144
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	5 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	20 years
Computer software and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 23,381	25,397
Computer software and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	3 years
Computer software and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	7 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,484	6,709
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,196	1,108
Estimated Useful Life (in years)	5 years
Work in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,585	$ 421

Goodwill and Other Intangible36

Goodwill and Other Intangible Assets Goodwill Roll Forward (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Balance	$ 2,520	$ 2,740
Currency exchange rate adjustment	(335)	(220)
Balance	$ 2,185	$ 2,520

Goodwill and Other Intangible37

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Other intangible assets:
Indefinite-lived trademarks	$ 9,052	$ 9,052
Patents	18,702	18,154
Total other intangible assets, gross	27,754	27,206
Accumulated amortization - patents	(17,288)	(16,631)
Other intangible assets, net	$ 10,466	$ 10,575
Patents | Minimum
Other intangible assets:
Estimated Useful Life (in years)	8 years
Patents | Maximum
Other intangible assets:
Estimated Useful Life (in years)	18 years

Goodwill and Other Intangible38

Goodwill and Other Intangible Assets Patent amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Patent amortization	$ 188	$ 510	$ 657	$ 1,530

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets Future intangible amortization (Details) $ in Thousands	Sep. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 197
2,016	497
2,017	198
2,018	106
2,019	76
Thereafter	340
Finite-Lived Intangible Assets, Net	$ 1,414

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Payroll and related liabilities	$ 4,394	$ 5,058
Other	4,310	4,793
Total accrued liabilities	$ 8,704	$ 9,851

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Movement in Product Warranty Liability [Roll Forward]
Balance, beginning of period	$ 2,246	$ 1,638
Accruals	1,845	1,719
Payments	(1,433)	(1,236)
Balance, end of period	$ 2,658	$ 2,121
Minimum
Product Liability Contingency [Line Items]
Product warranty period	30 days

Accumulated Other Comprehensi42

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ (647)	$ 246	$ (308)	$ 244
Current period other comprehensive income (loss)	(441)	(249)	(780)	(247)
Balance at end of period	(1,088)	(3)	(1,088)	(3)
Unrealized Gain (Loss) on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(5)	(10)	(18)	0
Current period other comprehensive income (loss)	10	4	23	(6)
Balance at end of period	5	(6)	5	(6)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(642)	256	(290)	244
Current period other comprehensive income (loss)	(451)	(253)	(803)	(241)
Balance at end of period	$ (1,093)	$ 3	$ (1,093)	$ 3

Income Per Share (Details)

Income Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income per share:
Shares used to calculate basic income per share	31,272	31,287	31,386	31,231
Dilutive effect of outstanding stock options, performance stock units and restricted stock units	255	368	316	410
Shares used to calculate diluted income per share	31,527	31,655	31,702	31,641
Stock options
Income per share:
Anti-dilutive securities excluded from computation of diluted income per share	7	212	10	247
Performance stock units
Income per share:
Anti-dilutive securities excluded from computation of diluted income per share	0	198	0	20

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - Common Stock - USD ($)	Nov. 03, 2014	Sep. 30, 2015
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount	$ 15,000,000
Stock repurchase program, period in force	24 months
Remaining authorized repurchase amount		$ 3,400,000

Stock Repurchase Program, Repur

Stock Repurchase Program, Repurchased Shares (Details) - Common Stock - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2015
Class of Stock [Line Items]
Number of Shares (in shares)	577,831	133,877	711,708
Repurchased Amount	$ 9,571,545	$ 1,995,982	$ 11,567,527
Average Price Per Share	$ 16.56	$ 14.91	$ 16.25

Segment and Enterprise-wide I46

Segment and Enterprise-wide Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Net sales	$ 70,690	$ 59,067	$ 226,624	$ 179,517
Reconciliation of consolidated contribution to income (loss) from continuing operations:
Operating expenses	(29,820)	(24,514)	(92,828)	(76,394)
Income tax expense	(2,556)	(1,669)	(10,710)	(5,699)
Income from continuing operations	3,873	2,664	16,951	9,910
Unallocated royalty income
Reconciliation of consolidated contribution to income (loss) from continuing operations:
Income from continuing operations	3,873	2,664	16,951	9,910
Operating Segments
Segment Reporting Information [Line Items]
Net sales	70,690	59,067	226,624	179,517
Unallocated royalty income	2,084	1,102	3,605	3,319
Contribution	10,702	8,938	39,576	29,231
Operating Segments | Direct
Segment Reporting Information [Line Items]
Net sales	42,876	34,498	158,595	117,589
Contribution	5,394	4,133	30,071	18,375
Operating Segments | Retail
Segment Reporting Information [Line Items]
Net sales	25,730	23,467	64,424	58,609
Contribution	3,224	3,703	5,900	7,537
Intersegment Eliminations
Segment Reporting Information [Line Items]
Contribution	10,702	8,938	39,576	29,231
Intersegment Eliminations | Unallocated royalty income
Reconciliation of consolidated contribution to income (loss) from continuing operations:
Operating expenses	(4,313)	(4,657)	(11,650)	(13,569)
Other expense, net	40	52	(265)	(53)
Income tax expense	$ (2,556)	$ (1,669)	$ (10,710)	$ (5,699)

Segment and Enterprise-wide I47

Segment and Enterprise-wide Information - Concentration Risk (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2014
Amazon.com | Customer Concentration Risk | Net Sales
Concentration Risk [Line Items]
Concentration risk	13.60%	10.30%	10.10%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2015USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Standby letters of credit outstanding	$ 0.6
Inventories
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Non-cancelable market-based purchase obligation	$ 41