Segment and Geographic Information |
16. Segment and Geographic Information
Segment Information
We report two business segments which are aligned based on their
products or services:
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Gaiam Brand: |
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This segment includes all our branded yoga,
fitness, and well-being products. It also includes our eco-travel
subsidiary. |
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Gaia: |
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This segment includes our digital video streaming
service and was formerly referred to as “Gaiam TV”.
This segment also includes the results of Boulder Road LLC from
January 1, 2015 forward. We previously announced that we are
pursuing the potential spin-off of this segment into a separate
company. |
Amounts shown as “Other unallocated corporate” in the
table below represents a portion of our revenues, expenses and
assets that we do not allocate to our segments. Portions of the
unallocated corporate amounts may be included in the spin-off with
Gaia, if and when that occurs. Certain prior year amounts have been
reclassified to conform to the current year presentation.
Although we are able to track sales by channel, the management,
allocation of resources, and analysis and reporting of expenses are
presented on a combined basis, at the reportable segment level.
Segment contribution margin is defined as net revenue less cost of
goods sold and total operating expenses. Financial information for
our segments is as follows:
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Year Ended December 31,
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(in thousands)
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2015 |
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2014 |
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2013 |
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Net revenue:
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Gaiam Brand
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$ |
174,559 |
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$ |
156,784 |
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$ |
149,812 |
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Gaia
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13,459 |
(a) |
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9,910 |
(a) |
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5,651 |
(a) |
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Consolidated net revenue
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188,018 |
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|
166,694 |
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155,463 |
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Contribution margin (loss):
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Gaiam Brand
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13,147 |
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6,395 |
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(9,394 |
)(b) |
Gaia
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(5,125 |
) |
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(8,718 |
) |
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(10,144 |
)(c) |
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Segment contribution loss
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8,022 |
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(2,323 |
) |
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(19,538 |
) |
Other unallocated corporate expenses
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(3,841 |
) |
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(2,763 |
) |
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(2,103 |
) |
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Consolidated contribution margin (loss)
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4,181 |
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(5,086 |
) |
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(21,641 |
) |
Reconciliation of contribution loss to net loss attributable to
Gaiam, Inc.:
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Interest and other (expense) income
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(1,406 |
) |
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(600 |
) |
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2,421 |
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Gain on sale of investments
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— |
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1,480 |
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25,096 |
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Loss from equity method investment
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(465 |
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(55 |
) |
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— |
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Income tax expense
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(1,219 |
) |
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(1,369 |
) |
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(25,974 |
) |
(Loss) income from discontinued operations, net of tax
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(12,103 |
) |
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(3,327 |
) |
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(1,995 |
) |
Net income attributable to noncontrolling interest
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(694 |
) |
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(959 |
) |
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(659 |
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Net loss attributable to Gaiam, Inc.
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$ |
(11,706 |
) |
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$ |
(9,916 |
) |
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$ |
(22,752 |
) |
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(a) |
Gaia filed its stand-alone audited
financial statements on Form 10 with the SEC on February 20,
2015 and February 17, 2016. The segment amounts presented here
and discussed elsewhere in this Form 10-K vary insignificantly from
the amounts in the Form 10, as the Form 10 required that certain
items be recast for stand-alone presentation. As reported in Form
10, revenues were $14.2 million, $10.1 million, and $5.5 million
for 2015, 2014, and 2013 respectively. Contribution loss was
$5.1 million, $8.5 million and $10.0 million for 2015, 2014, and
2013 respectively. |
(b) |
During 2013 we recognized impairment
and severance charges of $9.2 million. |
(c) |
During 2013 we recognized impairment
charges of $1.8 million. |
The following is a reconciliation of reportable segments’
assets to our consolidated total assets. Other unallocated
corporate amounts are comprised of cash, current and deferred
income taxes, and property and equipment.
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As of December 31,
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(in thousands)
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2015 |
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2014 |
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2013 |
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Total assets – Continuing Operations:
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Gaiam Brand
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$ |
84,329 |
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$ |
114,388 |
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$ |
120,604 |
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Gaia
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44,213 |
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23,662 |
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19,193 |
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$ |
128,542 |
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$ |
138,050 |
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$ |
139,797 |
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Total assets – Discontinued Operations:
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Gaiam Brand
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$ |
— |
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$ |
582 |
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$ |
1,889 |
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$ |
128,542 |
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$ |
138,632 |
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$ |
141,686 |
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Major Customers
The following Gaiam Brand segment customers make up 10% or more of
our total revenues. No other customer accounted for 10% or
more of our total net revenue. The loss of either of these
customers would have a material adverse effect on our business.
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2015 |
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2014 |
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2013 |
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Target
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21.8 |
% |
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29.3 |
% |
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32.1 |
% |
Kohl’s
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18.1 |
% |
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4.0 |
% |
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— |
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Geographic Information
We sell and distribute essentially the same products in the United
States and several foreign countries. The major geographic
territories are the U.S., Canada, Australia and the U.K., and are
based on the location of the customer. The following represents
geographical data for our operations as of and for the years ended
December 31, 2015, 2014 and 2013:
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(in thousands)
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2015 |
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2014 |
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2013 |
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Revenue:
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United States
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$ |
179,956 |
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$ |
156,284 |
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$ |
147,527 |
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International
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8,062 |
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10,410 |
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7,936 |
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$ |
188,018 |
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$ |
166,694 |
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$ |
155,463 |
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Long-Lived Assets:
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United States
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$ |
38,119 |
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$ |
34,123 |
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$ |
29,072 |
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International
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146 |
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243 |
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246 |
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$ |
38,265 |
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$ |
34,366 |
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$ |
29,318 |
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As of December 31,
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(in thousands)
|
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2015 |
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2014 |
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2013 |
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Components of Long-Lived Assets (a):
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Property and equipment, net
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$ |
25,046 |
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$ |
23,231 |
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$ |
22,540 |
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Media Library, net
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9,117 |
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7,691 |
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5,211 |
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Other Intangibles, net
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866 |
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823 |
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1,155 |
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Other assets
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3,236 |
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2,621 |
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412 |
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$ |
38,265 |
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$ |
34,366 |
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$ |
29,318 |
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(a) |
Excludes other non-current assets
(goodwill, long-term receivables, and investments) of $17.4
million, $25.5 million, and $22.3 million for 2015, 2014, and 2013,
respectively. |
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