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BUSINESS SEGMENTS
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
BUSINESS SEGMENTS
 
Segment information has been prepared in accordance with ASC Topic 280 Segment Reporting. Segments were determined based on how we manage the business. There were no inter-segment sales or transfers during the three and six months ended June 30, 2015 and 2014. We evaluate the performance of our segments and allocate resources to them based primarily on gross profit. The table below summarizes information about reportable segments for the three and six months ended June 30, 2015 and 2014 (in thousands):
 
Three months ended
 June 30,
 
Six months ended
 June 30,
 
Direct
 
Partner
 
Total
 
Direct
 
Partner
 
Total
2015
 

 
 

 
 

 
 

 
 

 
 

Revenue, net
$
34,428

 
$
353,585

 
$
388,013

 
$
70,563

 
$
715,794

 
$
786,357

Cost of goods sold
31,235

 
283,121

 
314,356

 
63,762

 
573,501

 
637,263

Gross profit
$
3,193

 
$
70,464

 
$
73,657

 
$
6,801

 
$
142,293

 
$
149,094

Operating expenses
 

 
 

 
71,575

 
 

 
 

 
143,168

Interest and other income, net
 

 
 

 
1,193

 
 

 
 

 
1,837

Provision for income taxes
 

 
 

 
1,849

 
 

 
 

 
3,789

Consolidated net income
 

 
 

 
$
1,426

 
 

 
 

 
$
3,974

 
 
 
 
 
 
 
 
 
 
 
 
2014
 

 
 

 
 

 
 

 
 

 
 

Revenue, net
$
33,215

 
$
299,330

 
$
332,545

 
$
71,262

 
$
602,490

 
$
673,752

Cost of goods sold
29,473

 
240,447

 
269,920

 
62,570

 
484,561

 
547,131

Gross profit
$
3,742

 
$
58,883

 
$
62,625

 
$
8,692

 
$
117,929

 
$
126,621

Operating expenses
 

 
 

 
60,832

 
 

 
 

 
118,761

Interest and other income, net
 

 
 

 
549

 
 

 
 

 
1,042

Provision for income taxes
 

 
 

 
433

 
 

 
 

 
3,023

Consolidated net income
 

 
 

 
$
1,909

 
 

 
 

 
$
5,879


 
The direct segment includes revenues, direct costs, and cost allocations associated with sales of inventory we own. Costs for this segment include product costs, freight, warehousing and fulfillment costs, credit card fees and customer service costs.
 
The partner segment includes revenues, direct costs and cost allocations associated with sales of inventory owned by our partners. Costs for this segment include product costs, outbound freight and fulfillment costs, credit card fees and customer service costs.
 
Assets have not been allocated between the segments for our internal management purposes and, as such, they are not presented here.

For the three and six months ended June 30, 2015 and 2014, substantially all of our sales revenues were attributable to customers in the United States. At June 30, 2015 and December 31, 2014, substantially all of our fixed assets were located in the United States.