Segment and Geographic Information

12 Months Ended

Dec. 31, 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 Website reportable segment. The Website segment sells geek-themed retail products and video game-themed merchandise to technology enthusiasts and general consumers through the ThinkGeek website and through the ThinkGeek Solutions web-stores. The Wholesale segment has higher gross margins, as it primarily sells exclusive higher margin GeekLabs products to brick-and-mortar retailers. 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 reportable segments are consistent with those described in the summary of significant accounting policies. 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 $1.5 million as of December 31, 2014.

(in thousands)	Website			Wholesale			Total
Year Ended December 31, 2014
Net revenue	$	111,609		$	29,096		$	140,705
Cost of revenue	97,489			18,948			116,437
Gross margin	$	14,120		$	10,148		$	24,268
Gross margin %	12.7		%	34.9		%	17.2		%
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		%

The Company's products are sold in the United States and internationally. Net revenues derived from international orders were $29.9 million, $26.8 million, and $23.9 million for the years ended December 31, 2014, 2013, and 2012, respectively.