Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

SEGMENT 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 and Intangible Assets. Unallocated assets primarily include 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.

Following is summary information by reportable segment (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Net sales:
Direct	$	25,729		$	25,103		$	93,678		$	83,544
Retail	19,369			11,388			44,678			42,057
Unallocated royalty income	1,158			1,561			3,356			3,296
Consolidated net sales	$	46,256		$	38,052		$	141,712		$	128,897
Contribution:
Direct	$	1,316		$	1,947		$	8,533		$	5,968
Retail	2,875			827			4,975			4,182
Unallocated royalty income	1,158			1,561			3,356			3,296
Consolidated contribution	$	5,349		$	4,335		$	16,864		$	13,446
Reconciliation of consolidated contribution to income   from continuing operations:
Consolidated contribution	$	5,349		$	4,335		$	16,864		$	13,446
Amounts not directly related to segments:
Operating expenses	(4,013		)	(3,637		)	(11,258		)	(10,518		)
Other income (expense), net	265			(107		)	272			(105		)
Income tax (expense) benefit	(101		)	625			33,814			554
Income from continuing operations	$	1,500		$	1,216		$	39,692		$	3,377

There was no material change in the allocation of assets by segment during the first nine months of 2013 and, accordingly, assets by segment are not presented.