Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

10. Segment Information

We manage our company and aggregate our operational and financial information in accordance with two reportable segments. The direct to consumer segment contains direct response television marketing, catalog, Internet, retail store and subscription channels; and the business segment comprises retailer, media distribution, and corporate account channels.

Although we are able to track sales by channel, the management, allocation of resources, and analysis and reporting of expenses are presented on a combined basis, at the reportable segment level. Contribution margin is defined as net revenue less cost of goods sold and total operating expenses.

Financial information for our segments is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2013			2012			2013			2012
Net revenue:
Direct to consumer	$	16,984		$	15,924		$	51,610		$	54,415
Business		35,814			27,059			102,365			81,347
Consolidated net revenue		52,798			42,983			153,975			135,762
Contribution income (loss):
Direct to consumer		(5,426	)		(3,010	)		(15,150	)		(9,209	)
Business		4,123			2,839			10,112			5,777
Consolidated contribution loss		(1,303	)		(171	)		(5,038	)		(3,432	)
Reconciliation of contribution loss to net income (loss) attributable to Gaiam, Inc.:
Interest and other expense, net		(123	)		(192	)		(404	)		(259	)
Gain on sale of investment		1,975			—			18,404			—
Loss from equity method investment in RSOL		—			(15,940	)		—			(17,580	)
Income tax expense (benefit)		245			(5,377	)		4,897			(6,938	)
Net income attributable to noncontrolling interest		(184	)		(231	)		(373	)		(96	)
Net income (loss) attributable to Gaiam, Inc.	$	120		$	(11,157	)	$	7,692		$	(14,429	)