XML 30 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment and Enterprise-wide Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment and Enterprise-wide Information SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments, Direct and Retail. There have been no changes in our operating segments during the six months ended June 30, 2018.

We evaluate performance using several factors, of which the primary financial measures are net sales and reportable segment contribution. 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, derivative securities, 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 June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Net sales:
 
 
 
 
 
 
 
Direct
$
34,824

 
$
39,111

 
$
106,025

 
$
113,814

Retail
39,185

 
37,083

 
82,178

 
74,888

Royalty
1,489

 
835

 
2,108

 
1,579

Consolidated net sales
$
75,498

 
$
77,029

 
$
190,311

 
$
190,281

Contribution:
 
 
 
 
 
 
 
Direct
$
739

 
$
2,519

 
$
12,030

 
$
17,852

Retail
3,568

 
6,097

 
7,489

 
8,309

Royalty
1,488

 
835

 
2,105

 
1,568

Consolidated contribution
$
5,795

 
$
9,451

 
$
21,624

 
$
27,729

 
 
 
 
 
 
 
 
Reconciliation of consolidated contribution to income from continuing operations:
 
 
 
 
 
 
 
Consolidated contribution
$
5,795

 
$
9,451

 
$
21,624

 
$
27,729

Amounts not directly related to segments:
 
 
 
 
 
 
 
Operating expenses
(4,593
)
 
(5,602
)
 
(9,725
)
 
(11,197
)
Other expense, net
57

 
(127
)
 
23

 
(487
)
Income tax expense
(252
)
 
(1,156
)
 
(2,775
)
 
(5,294
)
Income from continuing operations
$
1,007

 
$
2,566

 
$
9,147

 
$
10,751


There was no material change in the allocation of assets by segment during the first six months of 2018 and, accordingly, assets by segment are not presented.

For the three and six months ended June 30, 2018 and 2017, each of Amazon.com and Dick's Sporting Goods accounted for more than 10% of total net sales as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Amazon.com
12.3
%
 
14.3
%
 
*

 
11.2
%
Dick's Sporting Goods
11.0
%
 
*

 
10.6
%
 
*

*Less than 10% of total net sales.