BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2016

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 inter-segment sales or transfers during the three months ended March 31, 2016 and 2015. We evaluate the performance of our segments and allocate resources to them based primarily on gross profit.

The table below summarizes information about reportable segments for the three months ended March 31, 2016 and 2015 (in thousands):

	Three months ended  March 31,
	Direct		Partner		Other		Total
2016
Revenue, net	$	26,651	$	384,269	$	2,757	$	413,677
Cost of goods sold	25,406		309,297		1,667		336,370
Gross profit	$	1,245	$	74,972	$	1,090	$	77,307
Operating expenses							59,494
Interest and other income, net							4,245
Provision for income taxes							8,964
Consolidated net income							$	13,094
2015
Revenue, net	$	36,135	$	362,209	$	—	$	398,344
Cost of goods sold	32,527		290,380		—		322,907
Gross profit	$	3,608	$	71,829	$	—	$	75,437
Operating expenses							71,593
Interest and other income, net							644
Provision for income taxes							1,940
Consolidated net income							$	2,548

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 three months ended March 31, 2016 and 2015, substantially all of our sales revenues were attributable to customers in the United States. At March 31, 2016 and December 31, 2015, substantially all of our fixed assets were located in the United States.