Segment Information

3 Months Ended

Mar. 31, 2014

Segment Information

9. 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 marketing program, 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 March 31,
(in thousands)	2014			2013
Net revenue:
Direct to consumer	$	13,165		$	11,271
Business		24,446			25,408
Consolidated net revenue		37,611			36,679
Contribution income (loss):
Direct to consumer		(4,839	)		(5,170	)
Business		2,361			2,014
Consolidated contribution income (loss)		(2,478	)		(3,156	)
Reconciliation of contribution income (loss) to net loss attributable to Gaiam, Inc.:
Interest and other income (expense)		38			(31	)
Gain on sale of investment		438			—
Income tax expense (benefit)		96			(984	)
Income from discontinued operations		26			1,981
Net income attributable to noncontrolling interest		(62	)		(54	)
Net loss attributable to Gaiam, Inc.	$	(2,134	)	$	(276	)