Segments

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company has three operating segments: Website, Wholesale, and ThinkGeek Solutions. The ThinkGeek Solutions operating segment has been aggregated into the existing Website reportable segment. The Website segment sells geek-themed retail products and video game themed merchandise to technology enthusiasts and general consumers through the website and through internet stores. The Wholesale segment has higher gross margins, as it primarily sells exclusive higher margin GeekLabs products to brick-and-mortar retailers.

The accounting policies of the reportable segments are consistent with those described in the summary of significant accounting policies included in the Company’s 2013 Form 10-K. The majority of costs are specifically identifiable to each segment. However, where costs are not specifically identifiable, they are 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 accounts receivables are primarily related to the Wholesale segment. Other than inventory, the Company's assets and liabilities are not allocated or reviewed by the chief decision-making group on a segment basis. Beginning in the first quarter of 2014, the Company began identifying inventory that was dedicated exclusively to the Wholesale segment which was approximately $2.9 million as of September 30, 2014.

(in thousands)	Website			Wholesale			Total
Three Months Ended September 30, 2014
Net revenue	$	15,330		$	6,910		$	22,240
Cost of revenue	13,481			4,468			17,949
Gross margin	$	1,849		$	2,442		$	4,291
Gross margin %	12.1		%	35.3		%	19.3		%
Three Months Ended September 30, 2013
Net revenue	$	16,990		$	5,373		$	22,363
Cost of revenue	14,377			3,736			18,113
Gross margin	$	2,613		$	1,637		$	4,250
Gross margin %	15.4		%	30.5		%	19.0		%
Nine Months Ended September 30, 2014
Net revenue	$	51,042		$	17,284		$	68,326
Cost of revenue	45,219			11,531			56,750
Gross margin	$	5,823		$	5,753		$	11,576
Gross margin %	11.4		%	33.3		%	16.9		%
Nine Months Ended September 30, 2013
Net revenue	$	53,225		$	10,699		$	63,924
Cost of revenue	44,371			7,274			51,645
Gross margin	$	8,854		$	3,425		$	12,279
Gross margin %	16.6		%	32.0		%	19.2		%

Net revenue derived from international orders was $5.2 million and $4.9 million, and $15.5 million and $13.8 million, for the three and nine months ended September 30, 2014 and September 30, 2013, respectively.