Segment and Enterprise-wide Information

3 Months Ended

Mar. 31, 2020

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments, Direct and Retail. There were no changes in our operating segments during the three months ended March 31, 2020.

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, cash equivalents and restricted cash, 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,
	2020			2019
Net sales:
Direct	$	47,141		$	46,714
Retail	45,613			36,821
Royalty	968			865
Consolidated net sales	$	93,722		$	84,400
Contribution:
Direct	$	1,809		$	(4,542	)
Retail	2,389			(722		)
Royalty	968			865
Consolidated contribution	$	5,166		$	(4,399	)

Reconciliation of consolidated contribution to income (loss) from continuing operations:
Consolidated contribution	$	5,166		$	(4,399	)
Amounts not directly related to segments:
Operating expenses	(5,725		)	(5,768		)
Other expense, net	(585		)	(433		)
Income tax benefit	3,446			2,116
Income (loss) from continuing operations	$	2,302		$	(8,484	)

	As of
	March 31,			December 31,
Assets:	2020			2019
Direct	$	36,849		$	47,377
Retail	114,700			148,965
Unallocated corporate	52,821			24,137
Total assets	$	204,370		$	220,479

The following customer accounted for 10% or more of total net sales as follows:



	Three Months Ended March 31,
	2020	2019
Amazon.com	13.3%	*
*Less than 10% of total net sales.