Segment Information

12 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments - Direct and Retail. There were no changes in our operating segments during the year ended March 31, 2022.

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):

	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
Net Sales:
Direct	$	221,726	$	101,537	$	240,926	$	119,651
Retail	364,069		103,435		308,036		186,584
Unallocated royalty	3,739		1,103		3,598		3,050
Consolidated net sales	$	589,534	$	206,075	$	552,560	$	309,285
Contribution:
Direct	$	(15,711)	$	27,846	$	59,976	$	(24,569)
Retail	44,831		20,348		62,782		16,043
Unallocated royalty	3,739		1,103		3,598		3,050
Consolidated contribution	$	32,859	$	49,297	$	126,356	$	(5,476)
Reconciliation of consolidated contribution to (loss) income from continuing operations:
Consolidated contribution	$	32,859	$	49,297	$	126,356	$	(5,476)
Amounts not directly related to segments:
Operating expenses	(58,175)		(9,589)		(48,547)		(95,068)
Other expense, net	(2,914)		(1,532)		(5,074)		(1,288)
Income tax (benefit) expense	(6,026)		7,595		12,198		(9,537)
(Loss) income from continuing operations	$	(22,204)	$	30,581	$	60,537	$	(92,295)
Depreciation and amortization expense:
Direct	$	2,513	$	701	$	5,071	$	2,919
Retail	4,381		851		3,574		5,657
Unallocated corporate	1,721		465		803		2,235
Total depreciation and amortization expense	$	8,615	$	2,017	$	9,448	$	10,811
	As of March 31,				As of December 31,
Assets:	2022		2021		2020
Direct	$	93,554	$	47,002	$	45,516
Retail	144,683		146,001		141,247
Unallocated corporate	75,808		161,227		131,354
Total assets	$	314,045	$	354,230	$	318,117

There are no material long-lived assets held outside of the U.S.

During the periods presented, the following customers accounted for 10% or more of total net sales as follows:

	Year Ended March 31,	Three-Months Ended March 31, (transition period)	Year Ended December 31,
	2022	2021	2020	2019
Amazon.com	16.8%	10.6%	17.1%	15.2%
Best Buy	13.6%	*	*	*
Dick's Sporting Goods	*	*	10.2%	11.7%