XML 225 R23.htm IDEA: XBRL DOCUMENT v3.19.1
Segment and Enterprise-wide Information
 3 Months Ended
Mar. 31, 2019
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 three months ended March 31, 2019.

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 March 31,
 
 
2019
 
2018
Net sales:
 
 
 
 
Direct
 
$
46,714

 
$
71,201

Retail
 
36,821

 
42,993

Royalty
 
865

 
619

Consolidated net sales
 
$
84,400

 
$
114,813

Contribution:
 
 
 
 
Direct
 
$
(4,542
)
 
$
11,291

Retail
 
(722
)
 
3,921

Royalty
 
865

 
617

Consolidated contribution
 
$
(4,399
)
 
$
15,829

 
 
 
 
 
Reconciliation of consolidated contribution to (loss) income from continuing operations:
 
 
 
 
Consolidated contribution
 
$
(4,399
)
 
$
15,829

Amounts not directly related to segments:
 
 
 
 
Operating expenses
 
(5,768
)
 
(5,132
)
Other expense, net
 
(433
)
 
(34
)
Income tax benefit (expense)
 
2,116

 
(2,523
)
(Loss) income from continuing operations
 
$
(8,484
)
 
$
8,140


There was no material change in the allocation of assets by segment during the three months ended March 31, 2019, and, accordingly, assets by segment are not presented.

For the three months ended March 31, 2019 and 2018, the following customer accounted for 10% or more of total net sales as follows:
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Dick's Sporting Goods
 
*
 
10.4
%
*Less than 10% of total net sales.