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Segment and Enterprise-wide Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment and Enterprise-wide Information SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments, Direct and Retail. There were no changes in our operating segments during the nine months ended September 30, 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net sales:
 
 
 
 
 
 
 
Direct
$
16,197

 
$
28,955

 
$
83,745

 
$
134,980

Retail
44,823

 
61,490

 
119,097

 
143,668

Royalty
688

 
612

 
2,270

 
2,720

Consolidated net sales
$
61,708

 
$
91,057

 
$
205,112

 
$
281,368

Contribution:
 
 
 
 
 
 
 
Direct
$
(8,693
)
 
$
(1,363
)
 
$
(19,569
)
 
$
10,667

Retail
4,772

 
12,707

 
3,803

 
20,196

Royalty
688

 
612

 
2,270

 
2,717

Consolidated contribution
$
(3,233
)
 
$
11,956

 
$
(13,496
)
 
$
33,580

 
 
 
 
 
 
 
 
Reconciliation of consolidated contribution to (loss) income from continuing operations:
 
 
 
 
 
 
 
Consolidated contribution
$
(3,233
)
 
$
11,956

 
$
(13,496
)
 
$
33,580

Amounts not directly related to segments:
 
 
 
 
 
 
 
Operating expenses
(5,020
)
 
(5,796
)
 
(90,338
)
 
(15,521
)
Other (expense) income, net
(422
)
 
213

 
(910
)
 
236

Income tax (expense) benefit
(1,900
)
 
(1,870
)
 
6,941

 
(4,645
)
(Loss) income from continuing operations
$
(10,575
)
 
$
4,503

 
$
(97,803
)
 
$
13,650


There was no material change in the allocation of assets by segment during the nine months ended September 30, 2019, and, accordingly, assets by segment are not presented.

The following customers accounted for 10% or more of total net sales as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Amazon.com
18.7
%
 
18.8
%
 
14.1
%
 
11.8
%
Dick's Sporting Goods
19.3
%
 
19.6
%
 
10.2
%
 
13.5
%