13.

Segment Information

Since the deconsolidation of Real Goods Solar on December 31, 2011, we now manage our business and aggregate our operational and financial information in accordance with two reportable segments. The direct to consumer segment contains direct response marketing program, catalog, Internet, retail store and subscription channels; and the business segment comprises retailer, media distribution, and corporate account channels.

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. Contribution margin is defined as net revenue less cost of goods sold and total operating expenses.

Financial information for our segments is as follows:


	Three Months Ended March 31,
(in thousands)	2012			2011
Net revenue:
Direct to consumer	$	21,501		$	17,902
Business		25,832			19,485
Solar		—			17,425

Consolidated net revenue		47,333			54,812

Contribution loss:
Direct to consumer		(1,030	)		(1,067	)
Business		(265	)		(554	)
Solar		—			66

Consolidated contribution loss		(1,295	)		(1,555	)
Reconciliation of contribution loss to net loss attributable to Gaiam, Inc.:
Interest and other income		56			46
Loss from equity method investment		(696	)		—
Income tax benefit		(637	)		(568	)
Net (income) loss attributable to noncontrolling interest		79			(59	)

Net loss attributable to Gaiam, Inc.	$	(1,219	)	$	(1,000	)