SEGMENT REPORTING

9 Months Ended

Sep. 30, 2013

NOTE 14 - SEGMENT REPORTING

ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.

The Company is engaged in distribution of digital entertainment products and services. The Company's chief operating decision maker ("CODM") has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the group. Based on management's assessment, the Company has determined that it has three operating segments as of September 30, 2013 which are wholesale, retail and FAB kiosks/licensing. The Company has reclassified the segment reporting as of and for the three and nine months ended September 30, 2012 to conform to the headings and classification used for 2013.

The following table presents summary information by segment for the nine months ended September 30, 2013 and 2012, respectively (in thousands):


		2013								2012
		Wholesale		Retail		Digital		Total		Wholesale		Retail		Digital		Total
Revenue	$	41,728	$	6,815	$	29,702	$	78,245	$	-	$	-	$	3,462	$	3,462
Cost of revenue	$	33,126	$	4,989	$	6,170	$	44,285	$	-	$	-	$	1,446	$	1,446
Gross Profit	$	8,602	$	1,826	$	23,532	$	33,960	$	-	$	-	$	2,016	$	2,016

Total assets	$	60,353	$	38,744	$	111,674	$	210,771	$	-	$	-	$	158,411	$	158,411
Depreciation and amortization	$	190	$	661	$	4,215	$	5,067	$	-	$	-	$	83	$	83

The following table presents summary information by segment for the three months ended September 30, 2013 and 2012, respectively (in thousands):


		2013								2012
		Wholesale		Retail		Digital		Total		Wholesale		Retail		Digital		Total
Revenue	$	13,978	$	2,517	$	13,256	$	29,751	$	-	$	-	$	1,745	$	1,745
Cost of revenue	$	11,127	$	1,843	$	2,691	$	15,661	$	-	$	-	$	784	$	784
Gross Profit	$	2,851	$	674	$	10,565	$	14,090	$	-	$	-	$	961	$	961

Depreciation and amortization	$	63	$	221	$	1,429	$	1,713	$	-	$	-	$	12	$	12

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

+ Details

FAB Universal Corp. 10-Q