Segment and Geographic Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Due to the growth in the Company's wholesale business, effective for the year ended December 31, 2013, the Company reorganized its management reporting and reportable business segments into two operating segments: Website and Wholesale. The Website segment sells geek-themed retail products to technology enthusiasts and general consumers through the website. The Wholesale segment, which sells primarily exclusive GeekLabs products through retailers and brick-and-mortar stores, has higher gross margins because the products it sells generally have higher product margins. Prior to the sale of the Company's Media business on September 17, 2012, the Company had two operating segments that offered different products and services, e-Commerce and Media. The Media segment was discontinued in 2012 when it was sold.

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies. The majority of costs were specifically identifiable to each segment. However, where costs were not specifically identifiable, they were allocated based on the ratio of segment product costs to total product costs. The Company's chief decision-making group is the Chief Executive Officer and the Chief Financial Officer. The Company's assets and liabilities are not allocated or reviewed by the chief decision-making group on a segment basis.

(in thousands)	Website			Wholesale			Total Company
Year Ended December 31, 2013
Net revenue	$	115,909		$	22,353		$	138,262
Cost of revenue	96,458			14,687			111,145
Gross margin	$	19,451		$	7,666		$	27,117
Gross margin %	16.8		%	34.3		%	19.6		%
Year Ended December 31, 2012
Net revenue	$	111,938		$	6,975		$	118,913
Cost of revenue	92,758			5,090			97,848
Gross margin	$	19,180		$	1,885		$	21,065
Gross margin %	17.1		%	27.0		%	17.7		%
Year Ended December 31, 2011
Net revenue	$	93,691		$	5,366		$	99,057
Cost of revenue	79,568			4,034			83,602
Gross margin	$	14,123		$	1,332		$	15,455
Gross margin %	15.1		%	24.8		%	15.6		%

ThinkGeek products are sold in the United States and internationally. Website revenues for international orders were $24.2 million, $22.3 million, and $13.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. The increase in international sales is primarily attributable to the Company offering a more economical international shipping option.