Segment and Enterprise-wide Information

9 Months Ended

Sep. 30, 2020

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, 2020.

We evaluate performance of the operating segments 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 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net sales:
Direct	$	61,194	$	16,197	$	158,768	$	83,745
Retail	93,155		44,823		201,716		119,097
Royalty	1,042		688		2,817		2,270
Consolidated net sales	$	155,391	$	61,708	$	363,301	$	205,112
Contribution:
Direct	$	17,588	$	(8,693)	$	36,392	$	(19,569)
Retail	23,442		4,772		37,444		3,803
Royalty	1,042		688		2,817		2,270
Consolidated contribution	$	42,072	$	(3,233)	$	76,653	$	(13,496)
Reconciliation of consolidated contribution to loss from continuing operations:
Consolidated contribution	$	42,072	$	(3,233)	$	76,653	$	(13,496)
Amounts not directly related to segments:
Operating expenses	1,923		(5,020)		(40,324)		(90,338)
Other expense, net	(628)		(422)		(1,434)		(910)
Income tax (expense) benefit	(9,398)		(55)		(3,610)		8,786
Income (loss) from continuing operations	$	33,969	$	(8,730)	$	31,285	$	(95,958)
	As of
	September 30,		December 31,
Assets:	2020		2019
Direct	$	40,250	$	47,377
Retail	124,830		148,965
Unallocated corporate	113,932		24,137
Total assets	$	279,012	$	220,479

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Amazon.com	22.9	%	18.7	%	18.9	%	14.1	%
Dick's Sporting Goods	*		19.3		*		10.2
*Less than 10% of total net sales.