Segment and Enterprise-wide Information

6 Months Ended

Jun. 30, 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, Cash and Cash Equivalents, Marketable Securities, Prepaids and Other Current Assets, Deferred Income Tax Assets, Other Assets, and capital expenditures.

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

	Three months ended June 30,
	2014			2013
Net sales:
Direct	$	32,355		$	25,314
Retail	15,039			10,175
Unallocated royalty income	1,152			753
Consolidated net sales	$	48,546		$	36,242
Contribution:
Direct	$	3,889		$	508
Retail	1,325			140
Unallocated royalty income	1,152			753
Consolidated contribution	$	6,366		$	1,401
Reconciliation of consolidated contribution to income   from continuing operations:
Consolidated contribution	$	6,366		$	1,401
Amounts not directly related to segments:
Operating expenses	(3,987		)	(3,125		)
Other income (expense), net	(45		)	124
Income tax (expense) benefit	(836		)	34,268
Income from continuing operations	$	1,498		$	32,668

	Six months ended June 30,
	2014			2013
Net sales:
Direct	$	83,091		$	67,949
Retail	35,142			25,309
Unallocated royalty income	2,217			2,198
Consolidated net sales	$	120,450		$	95,456
Contribution:
Direct	$	14,242		$	7,217
Retail	3,834			2,100
Unallocated royalty income	2,217			2,198
Consolidated contribution	$	20,293		$	11,515
Reconciliation of consolidated contribution to income   from continuing operations:
Consolidated contribution	$	20,293		$	11,515
Amounts not directly related to segments:
Operating expenses	(8,912		)	(7,245		)
Other income (expense), net	(105		)	7
Income tax (expense) benefit	(4,030		)	33,915
Income from continuing operations	$	7,246		$	38,192

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

For the three and six months ended June 30, 2014, Amazon.com accounted for 10.9% and 10.3%, respectively, of our total Net Sales. No customer represented 10.0% or more of our total Net Sales in the three or six months ended June 30, 2013.