Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information

8. Segment Information

We manage our company and aggregate our operational and financial information in accordance with two reportable segments, which are aligned based on their products or services:

Gaiam Brand:	This segment includes all our branded yoga, fitness, and wellness products. It also includes our eco-travel subsidiary.
Gaiam TV:	This segment includes our digital video streaming service. We previously announced that we are pursuing the potential spin off of this segment into a separate company.

Amounts shown as “Other unallocated corporate expenses” in the table below, are primarily expenses of being a public company, and legal costs associated with the proposed spin-off of Gaiam TV, which we do not allocate to our segments. 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 June 30,						Six Months Ended June 30,
(in thousands)	2015			2014			2015			2014
Net revenue:
Gaiam Brand	$	37,861		$	30,035		$	72,393		$	65,351
Gaiam TV		3,285			2,416			6,391			4,711
Consolidated net revenue		41,146			32,451			78,784			70,062
Contribution income (loss):
Gaiam Brand		2,107			380			2,118			506
Gaiam TV		(1,078	)		(1,938	)		(3,436	)		(4,145	)
Segment contribution income (loss)		1,029			(1,558	)		(1,318	)		(3,639	)
Other unallocated corporate expenses		(1,006	)		(1,597	)		(1,544	)		(1,994	)
Consolidated contribution income (loss)		23			(3,155	)		(2,862	)		(5,633	)
Reconciliation of contribution income (loss) to net loss attributable to Gaiam, Inc.:
Interest and other income (expense)		114			27			(370	)		65
Gain on sale of investment		—			1,042			—			1,480
Income tax expense		(125	)		(130	)		(174	)		(226	)
(Loss) income from discontinued operations		(1,121	)		2			(1,587	)		28
Net income attributable to noncontrolling interest		(8	)		(174	)		(16	)		(236	)
Net loss attributable to Gaiam, Inc.	$	(1,117	)	$	(2,388	)	$	(5,009	)	$	(4,522	)

As discussed in Note 2, Gaiam TV filed an amended registration statement on Form 10 with the SEC on May 29, 2015. The segment amounts presented here and discussed elsewhere in this Form 10-Q vary insignificantly from the amounts reported by Gaiam TV in the Form 10, as the Form 10 requires that certain items be recast for stand-alone presentation.