Gaia, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Segment and Geographic Information (Tables)

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2015

Financial information for our segments is as follows:


	Year Ended December 31,
(in thousands)	2015			2014			2013
Net revenue:
Gaiam Brand	$	174,559		$	156,784		$	149,812
Gaia		13,459	(a)		9,910	(a)		5,651	(a)

Consolidated net revenue		188,018			166,694			155,463
Contribution margin (loss):
Gaiam Brand		13,147			6,395			(9,394	)(b)
Gaia		(5,125	)		(8,718	)		(10,144	)(c)

Segment contribution loss		8,022			(2,323	)		(19,538	)
Other unallocated corporate expenses		(3,841	)		(2,763	)		(2,103	)

Consolidated contribution margin (loss)		4,181			(5,086	)		(21,641	)
Reconciliation of contribution loss to net loss attributable to Gaiam, Inc.:
Interest and other (expense) income		(1,406	)		(600	)		2,421
Gain on sale of investments		—			1,480			25,096
Loss from equity method investment		(465	)		(55	)		—
Income tax expense		(1,219	)		(1,369	)		(25,974	)
(Loss) income from discontinued operations, net of tax		(12,103	)		(3,327	)		(1,995	)
Net income attributable to noncontrolling interest		(694	)		(959	)		(659	)

Net loss attributable to Gaiam, Inc.	$	(11,706	)	$	(9,916	)	$	(22,752	)

(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.

Reconciliation of Reportable Segments' Assets to Consolidated Total Assets

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.


	As of December 31,
(in thousands)	2015		2014		2013
Total assets – Continuing Operations:
Gaiam Brand	$	84,329	$	114,388	$	120,604
Gaia		44,213		23,662		19,193

	$	128,542	$	138,050	$	139,797

Total assets – Discontinued Operations:
Gaiam Brand	$	—	$	582	$	1,889

	$	128,542	$	138,632	$	141,686

Summary of Contributions by Major Customers to Total Revenues

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.


	2015			2014			2013
Target		21.8	%		29.3	%		32.1	%
Kohl’s		18.1	%		4.0	%		—

Geographical Data for Operations

The following represents geographical data for our operations as of and for the years ended December 31, 2015, 2014 and 2013:


(in thousands)	2015		2014		2013
Revenue:
United States	$	179,956	$	156,284	$	147,527
International		8,062		10,410		7,936

	$	188,018	$	166,694	$	155,463


Long-Lived Assets:
United States	$	38,119	$	34,123	$	29,072
International		146		243		246

	$	38,265	$	34,366	$	29,318


	As of December 31,
(in thousands)	2015		2014		2013
Components of Long-Lived Assets (a):
Property and equipment, net	$	25,046	$	23,231	$	22,540
Media Library, net		9,117		7,691		5,211
Other Intangibles, net		866		823		1,155
Other assets		3,236		2,621		412

	$	38,265	$	34,366	$	29,318

(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.