BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Segment information has been prepared in accordance with ASC Topic 280 Segment Reporting. Segments were determined based on how we manage the business. There were no significant inter-segment sales or transfers during the years ended December 31, 2015, 2014 and 2013.We evaluate the performance of our segments and allocate resources to them based primarily on gross profit.

The following table summarizes information about reportable segments for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	Year ended    December 31,
	Direct		Partner		Other		Total
2015
Revenue, net	$	137,783	$	1,518,125	$	1,930	$	1,657,838
Cost of goods sold	128,077		1,225,107		—		1,353,184
Gross profit	$	9,706	$	293,018	$	1,930	$	304,654
Operating expenses							(305,188		)
Other income, net							3,649
Provision for income taxes							1,895
Consolidated net income							$	1,220
2014
Revenue, net	$	147,460	$	1,349,643	$	—	$	1,497,103
Cost of goods sold	129,253		1,088,791		—		1,218,044
Gross profit	$	18,207	$	260,852	$	—	$	279,059
Operating expenses							(267,136		)
Other income, net							1,282
Provision for income taxes							4,404
Consolidated net income							$	8,801
2013
Revenue, net	$	156,032	$	1,148,185	$	—	$	1,304,217
Cost of goods sold	136,282		920,275		—		1,056,557
Gross profit	$	19,750	$	227,910	$	—	$	247,660
Operating expenses							(231,095		)
Other loss, net							(221		)
Benefits for income taxes							(68,034		)
Consolidated net income							$	84,378

The direct segment includes revenues, direct costs, and cost allocations associated with sales of inventory we own. Costs for this segment include product costs, freight, warehousing and fulfillment costs, credit card fees and customer service costs.

The partner segment includes revenues, direct costs and cost allocations associated with sales of inventory owned by our partners. Costs for this segment include product costs, outbound freight and fulfillment costs, credit card fees and customer service costs.

Assets have not been allocated between the segments for our internal management purposes and, as such, they are not presented here.

For the years ended December 31, 2015, 2014 and 2013, substantially all of our sales revenues were attributable to customers in the United States. At December 31, 2015 and December 31, 2014, substantially all of our fixed assets were located in the United States.