Segment and Enterprise-wide Information

6 Months Ended

Jun. 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 June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Net sales:
Direct	$	41,662		$	32,355		$	115,719		$	83,091
Retail	17,404			15,039			38,694			35,142
Unallocated royalty income	629			1,152			1,521			2,217
Consolidated net sales	$	59,695		$	48,546		$	155,934		$	120,450
Contribution:
Direct	$	5,106		$	3,889		$	24,677		$	14,242
Retail	1,176			1,325			2,676			3,834
Unallocated royalty income	629			1,152			1,521			2,217
Consolidated contribution	$	6,911		$	6,366		$	28,874		$	20,293
Reconciliation of consolidated contribution to income from continuing operations:
Consolidated contribution	$	6,911		$	6,366		$	28,874		$	20,293
Amounts not directly related to segments:
Operating expenses	(2,979		)	(3,987		)	(7,337		)	(8,912		)
Other expense, net	(228		)	(45		)	(305		)	(105		)
Income tax expense	(1,485		)	(836		)	(8,154		)	(4,030		)
Income from continuing operations	$	2,219		$	1,498		$	13,078		$	7,246

There was no material change in the allocation of assets by segment during the first six months of 2015 and, accordingly, assets by segment are not presented.

For the three months ended June 30, 2015, Amazon.com accounted for 13.2% of our total net sales, and no customer represented 10.0% or more of total net sales for the first six months of 2015. 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.