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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2014
Segment and Geographic Information | 14. Segment and Geographic Information Segment Information During the fourth quarter of 2014, the information reviewed by our Chief Operating Decision Makers evolved with changes in our organization and new initiatives. These changes include our planned spin-off of Gaiam TV, and the migration of our legacy catalog business to a mobile-and social-centric digital model. Accordingly, we have revised our segment groupings in the fourth quarter of 2014. As of December 31, 2014, we are reporting two business segments which are aligned based on their products or services:
Gaiam Brand: |  | This segment includes all our branded yoga, fitness, and well-being products. It combines our previous Business segment with the Gaiam.com and catalog portions of our former Direct to Consumer segment. It also includes our eco-travel subsidiary, which was previously included in our former Direct to Consumer segment.
Gaiam TV: |  | This segment includes our digital video streaming service. This segment is also called Gaiam TV, and was previously included in our former Direct to Consumer segment. We previously announced that we are pursuing the potential spin off of this segment into a separate company.
The comparative information below has been restated to conform to the new segment structure. 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 Gaiam TV, if and when that occurs. 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:
|  | Year Ended December 31, |
(in thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Net revenue: |  |  |  |  |  |  |  |  |  |  |  |
Gaiam Brand |  | $ | 156,784 |  |  | $ | 149,812 |  |  | $ | 123,545 |
Gaiam TV |  |  | 9,910 | (c) |  |  | 5,651 |  |  |  | 3,697 |
Consolidated net revenue |  |  | 166,694 |  |  |  | 155,463 |  |  |  | 127,242 |
Contribution margin (loss): |  |  |  |  |  |  |  |  |  |  |  |
Gaiam Brand |  |  | 6,640 |  |  |  | (9,394 | )(a) |  |  | (1,810 | )
Gaiam TV |  |  | (8,718 | ) |  |  | (10,144 | )(b) |  |  | (5,762 | )
Segment contribution loss |  |  | (2,078 | ) |  |  | (19,538 | ) |  |  | (7,572 | )
Other unallocated corporate expenses |  |  | (3,008 | ) |  |  | (2,103 | ) |  |  | (2,601 | )
Consolidated contribution loss |  |  | (5,086 | ) |  |  | (21,641 | ) |  |  | (10,173 | )
Reconciliation of contribution loss to net loss attributable to Gaiam, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
Interest and other (expense) income |  |  | (600 | ) |  |  | 2,421 |  |  |  | (86 | )
Gain on sale of investments |  |  | 1,480 |  |  |  | 25,096 |  |  |  | — |
Loss from equity method investment |  |  | (55 | ) |  |  | — |  |  |  | (18,410 | )
Income tax expense (benefit) |  |  | 1,369 |  |  |  | 25,974 |  |  |  | (9,444 | )
(Loss) income from discontinued operations, net of tax |  |  | (3,327 | ) |  |  | (1,995 | ) |  |  | 6,648 |
Net income attributable to noncontrolling interest |  |  | (959 | ) |  |  | (659 | ) |  |  | (305 | )
Net loss attributable to Gaiam, Inc. |  | $ | (9,916 | ) |  | $ | (22,752 | ) |  | $ | (12,882 | )
(a) | During 2013 we recognized impairment and severance charges of $9.2 million.
(b) | During 2013 we recognized impairment charges of $1.8 million.
(c) | As discussed in Note 17 Subsequent Events, Gaiam TV filed a Form 10 with the SEC on February 20, 2015. 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 $10.1 million for 2014 and $5.5 million for 2013 and contribution loss was $8.5 million for 2014 and $10.0 for 2013.
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) |  | 2014 |  |  | 2013 |  |  | 2012 |
Total assets – Continuing Operations: |  |  |  |  |  |  |  |  |  |  |  |
Gaiam Brand |  | $ | 114,388 |  |  | $ | 120,604 |  |  | $ | 117,167 |
Gaiam TV |  |  | 23,662 |  |  |  | 19,193 |  |  |  | 5,850 |
|  | $ | 138,050 |  |  | $ | 139,797 |  |  | $ | 123,017 |
Total assets – Discontinued Operations: |  |  |  |  |  |  |  |  |  |  |  |
Gaiam Brand |  | $ | 582 |  |  | $ | 1,889 |  |  | $ | 74,214 |
|  | $ | 138,632 |  |  | $ | 141,686 |  |  | $ | 197,231 |
Major Customer Sales to our largest Gaiam Brand segment customer, Target Corporation (“Target”) accounted for 29.3%, 32.1% and 22.9% of our total net revenue during 2014, 2013, and 2012, respectively. The loss of Target as a customer would have a material adverse effect on our business. No other customer accounted for10% or more of our total net revenue. 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, 2014, 2013 and 2012:
(in thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 156,284 |  |  | $ | 147,527 |  |  | $ | 118,931 |
International |  |  | 10,410 |  |  |  | 7,936 |  |  |  | 8,311 |
|  | $ | 166,694 |  |  | $ | 155,463 |  |  | $ | 127,242 |
Long-Lived Assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 34,123 |  |  | $ | 29,072 |  |  | $ | 33,827 |
International |  |  | 243 |  |  |  | 246 |  |  |  | 626 |
|  | $ | 34,366 |  |  | $ | 29,318 |  |  | $ | 34,453 |
|  | As of December 31, |
(in thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Components of Long-Lived Assets (a): |  |  |  |  |  |  |  |  |  |  |  |
Property and equipment, net |  | $ | 23,231 |  |  | $ | 22,540 |  |  | $ | 23,544 |
Media Library, net |  |  | 7,691 |  |  |  | 5,211 |  |  |  | 10,441 |
Other Intangibles, net |  |  | 823 |  |  |  | 1,155 |  |  |  | 190 |
Other assets |  |  | 2,621 |  |  |  | 412 |  |  |  | 278 |
|  | $ | 34,366 |  |  | $ | 29,318 |  |  | $ | 34,453 |
(a) | Excludes other non-current assets (non-current deferred tax assets, net, goodwill, investments, notes receivable, security deposits and noncurrent assets from discontinued operations) of $25.5 million, $22.3 million, and $33.0 million for 2014, 2013, and 2012, respectively.

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