13. Segment and Geographic Information

Segment Information

Prior to the deconsolidation of Real Goods Solar on December 31, 2011, we managed our business and aggregated our operational and financial information in accordance with three reportable segments. The direct to consumer segment contains direct response marketing programs, catalogs, Internet, and subscription sales channels; the business segment comprises retailers, media and corporate account channels; and the former solar segment reflects solar energy integration businesses.

Although we are able to track revenues by sales channel, the management, allocation of resources and analysis and reporting of expenses is presented on a combined basis, at the reportable segment level. Contribution margin is defined as net revenue less cost of goods sold and total operating expenses.

Financial information for these three segments was as follows:


	Year Ended December 31,
(in thousands)	2011			2010			2009
Net revenue:
Direct to consumer	$	77,259		$	99,706		$	115,904
Business		88,257			97,238			98,241
Solar		109,257			77,324			64,328

Consolidated net revenue		274,773			274,268			278,473
Contribution margin (loss):
Direct to consumer		(7,152	)		(7,091	)		(6,242	)
Business		(21,859	)(a)		11,214			8,057
Solar		(2,276	)		2,021			(2,596	)

Consolidated contribution margin (loss)		(31,287	)		6,144			(781	)
Reconciliation of contribution margin (loss) to net income (loss) attributable to Gaiam, Inc.:
Loss on deconsolidation of subsidiary		(4,550	)		—			—
Interest and other income (expense)		(90	)		1,291			(1,524	)
Income tax expense (benefit)		(10,657	)		2,366			(2,088	)
Net (income) loss attributable to noncontrolling interest		398			(794	)		513

Net income (loss) attributable to Gaiam, Inc.	$	(24,872	)	$	4,275		$	296

(a)	During 2011, we recognized a noncash goodwill impairment charge of $22.5 million in our business segment. See Note 6. Goodwill Impairment and Other General Expense.

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)	2011		2010		2009
Total assets:
Direct to consumer	$	20,976	$	23,604	$	22,079
Business		79,522		104,620		96,640
Solar (a)		—		47,599		42,930
Other unallocated corporate amounts		62,792		31,610		50,200

	$	163,290	$	207,433	$	211,849

(a)	We restated total assets for Solar to reflect the correction of immaterial errors relating to Real Goods Solar's 2008 income taxes. Solar's total assets for 2010 and 2009 were each reduced by $364 thousand. See Note 11. Income Taxes.

Major Customer

Sales to our largest customer for 2011, 2010 and 2009 accounted for approximately 14.8%, 13.0% and 11.7% of total revenue, respectively, during these periods and are reported in our business segment.

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, Mexico, Japan, 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, 2011, 2010 and 2009:


(in thousands)	2011		2010		2009
Revenue:
United States	$	269,823	$	271,924	$	274,951
International		4,950		2,344		3,522

	$	274,773	$	274,268	$	278,473

Long-Lived Assets:
United States	$	38,593	$	43,611	$	40,749
International		370		718		493

	$	38,963	$	44,329	$	41,242


	As of December 31,
(in thousands)	2011		2010		2009
Components of Long-Lived Assets (a):
Property and equipment, net	$	23,664	$	27,861	$	28,217
Media Library, net		14,576		15,596		12,354
Other Intangibles, net		569		813		652
Notes receivable and other assets		154		59		19

	$	38,963	$	44,329	$	41,242

(a)

Excludes other non-current assets (non-current deferred tax assets, net, goodwill, investments, notes receivable, and security deposits) of $29,994, $29,427, and $31,375 for 2011, 2010, and 2009, respectively. We restated the amounts excluded for 2010 and 2009 to reflect the correction of immaterial errors related to Real Goods Solar's 2008 income taxes. Excluded amounts for 2010 and 2009 were each reduced by $364 thousand. See Note 11. Income Taxes.