Segment and Enterprise-wide Information

3 Months Ended

Mar. 31, 2014

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 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 March 31,
	2014			2013
Net sales:
Direct	$	50,735		$	42,635
Retail	20,103			15,134
Unallocated royalty income	1,065			1,445
Consolidated net sales	$	71,903		$	59,214
Contribution:
Direct	$	10,352		$	6,708
Retail	2,509			1,960
Unallocated royalty income	1,065			1,445
Consolidated contribution	$	13,926		$	10,113
Reconciliation of consolidated contribution to income   from continuing operations:
Consolidated contribution	$	13,926		$	10,113
Amounts not directly related to segments:
Operating expenses	(4,925		)	(4,120		)
Other expense, net	(60		)	(116		)
Income tax expense	(3,193		)	(353		)
Income from continuing operations	$	5,748		$	5,524

There was no material change in the allocation of assets by segment during the first three months of 2014 and, accordingly, assets by segment are not presented.

No customer represented 10.0% or more of our total Net Sales in the three months ended March 31, 2014 or 2013.