XML 44 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
BUSINESS SEGMENTS (Tables)
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Summary of Information About Reportable Segments
The following table summarizes information about reportable segments for three and six months ended June 30, 2018 and 2017 (in thousands):

 
Three months ended
 June 30,
 
Direct
 
Partner
 
Retail Total
 
Other
 
Total
2018
 

 
 

 
 
 
 
 
 

Revenue, net
$
14,715

 
$
462,968

 
$
477,683

 
$
5,450

 
$
483,133

Cost of goods sold
14,672

 
372,580

 
387,252

 
4,138

 
391,390

Gross profit
$
43

 
$
90,388

 
$
90,431

 
$
1,312

 
$
91,743

Operating expenses
 

 
 

 
149,437

 
8,842

 
158,279

Interest and other income (expense), net (1)
 

 
 

 
1,624

 
(1,031
)
 
593

Pre-tax loss
 
 
 
 
(57,382
)
 
(8,561
)
 
(65,943
)
Provision for (benefit from) income taxes
 

 
 

 
(40
)
 
13

 
(27
)
Net loss (2)
 

 
 

 
$
(57,342
)
 
$
(8,574
)
 
$
(65,916
)
 
 
 
 
 
 
 
 
 
 
2017
 

 
 

 
 
 
 
 
 

Revenue, net
$
22,099

 
$
405,856

 
$
427,955

 
$
4,069

 
$
432,024

Cost of goods sold
21,147

 
323,892

 
345,039

 
2,814

 
347,853

Gross profit
$
952

 
$
81,964

 
$
82,916

 
$
1,255

 
$
84,171

Operating expenses
 

 
 

 
89,325

 
4,577

 
93,902

Interest and other income, net (1)
 

 
 

 
13

 
—

 
13

Pre-tax loss
 
 
 
 
(6,396
)
 
(3,322
)
 
(9,718
)
Benefit from income taxes
 

 
 

 
(176
)
 
(1,799
)
 
(1,975
)
Net loss (2)
 

 
 

 
$
(6,220
)
 
$
(1,523
)
 
$
(7,743
)

 
Six months ended
 June 30,
 
Direct
 
Partner
 
Retail Total
 
Other
 
Total
2018
 

 
 

 
 
 
 
 
 

Revenue, net
$
30,985

 
$
886,694

 
$
917,679

 
$
10,785

 
$
928,464

Cost of goods sold
29,444

 
705,388

 
734,832

 
8,020

 
742,852

Gross profit
$
1,541

 
$
181,306

 
$
182,847

 
$
2,765

 
$
185,612

Operating expenses
 

 
 

 
274,969

 
31,573

 
306,542

Interest and other income (expense), net (1)
 

 
 

 
1,169

 
(915
)
 
254

Pre-tax loss
 
 
 
 
(90,953
)
 
(29,723
)
 
(120,676
)
Benefit from income taxes
 

 
 

 
(128
)
 
(176
)
 
(304
)
Net loss (2)
 

 
 

 
$
(90,825
)
 
$
(29,547
)
 
$
(120,372
)
 
 
 
 
 
 
 
 
 
 
2017
 

 
 

 
 
 
 
 
 

Revenue, net
$
44,927

 
$
811,117

 
$
856,044

 
$
8,415

 
$
864,459

Cost of goods sold
42,110

 
645,189

 
687,299

 
6,082

 
693,381

Gross profit
$
2,817

 
$
165,928

 
$
168,745

 
$
2,333

 
$
171,078

Operating expenses
 

 
 

 
173,863

 
9,259

 
183,122

Interest and other income (expense), net (1)
 

 
 

 
115

 
(4,411
)
 
(4,296
)
Pre-tax loss
 
 
 
 
(5,003
)
 
(11,337
)
 
(16,340
)
Provision for (benefit from) income taxes
 

 
 

 
713

 
(3,028
)
 
(2,315
)
Net loss (2)
 

 
 

 
$
(5,716
)
 
$
(8,309
)
 
$
(14,025
)
__________________________________________
(1)
 — Excludes intercompany transactions eliminated in consolidation, which consist primarily of service fees and interest. The net amounts of these intercompany transactions were $504,000 and $359,000 for the three months ended June 30, 2018 and 2017, respectively, and $2.5 million and $665,000 for the six months ended June 30, 2018 and 2017, respectively.
(2)
 — Net income (loss) presented for segment reporting purposes is before any adjustments attributable to noncontrolling interests.