Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has two reportable segments - Direct and Retail. Contribution is the measure of profit or loss used by the Company's chief operating decision maker and is 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, deferred taxes and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in 2011 or 2010.

Following is summary information by reportable segment for the years ended December 31, 2011 and 2010 (in thousands):

	Year Ended December 31,
	2011			2010
Net sales:
Direct	$	107,061		$	96,668
Retail	68,591			67,789
Unallocated royalty income	4,760			3,993
Consolidated net sales	$	180,412		$	168,450
Contribution:
Direct	$	2,954		$	(10,778	)
Retail	9,489			11,400
Unallocated royalty income	4,760			3,994
Consolidated contribution	$	17,203		$	4,616
Reconciliation of consolidated contribution to income (loss) from continuing operations:
Consolidated contribution	$	17,203		$	4,616
Less:
Selling and marketing	—			(6		)
General and administrative	(13,501		)	(14,093		)
Research and development	(103		)	(86		)
Interest expense, net	(401		)	(140		)
Other income (expense), net	(11		)	479
Income tax expense	(686		)	(588		)
Income (loss) from continuing operations	$	2,501		$	(9,818	)
Assets:
Direct	$	23,244		$	17,345
Retail	26,331			31,084
Unallocated corporate	33,238			29,938
Total assets	$	82,813		$	78,367
Depreciation and amortization expense:
Direct	$	2,742		$	4,000
Retail	844			2,226
Unallocated corporate	229			401
Total depreciation and amortization expense	$	3,815		$	6,627

Net sales outside of the United States, primarily in Canada, represented approximately 9% and 10% of consolidated net sales for the years ended December 31, 2011 and 2010, respectively.