XML 36 R23.htm IDEA: XBRL DOCUMENT v3.4.0.3
Operating Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Operating Segment Information
Operating Segment Information
 
The Company operates the following business segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. The Wholesale Footwear segment, through sales to department stores, mid-tier retailers, mass market merchants, online retailers and specialty stores, derives revenue, both domestically and worldwide (via our International business), from sales of branded and private label women’s, men’s, girls’ and children’s footwear. The Wholesale Accessories segment, which includes branded and private label handbags, belts and small leather goods as well as cold weather and selected other fashion accessories, derives revenue, both domestically and worldwide (via our International business), from sales to department stores, mid-tier retailers, mass market merchants, online retailers and specialty stores. Our Wholesale Footwear and Wholesale Accessories segments, through our International business, derive revenue from Canada, Mexico and South Africa and, under special distribution arrangements, from Asia, Australia, Europe, the Middle East, India, South and Central America and New Zealand. The Retail segment, through the operation of Company-owned retail stores in the United States, Canada, Mexico and South Africa and the Company’s websites, derives revenue from sales of branded women’s, men’s and children’s footwear, accessories and licensed products to consumers. The First Cost segment represents activities of a subsidiary that earns commissions and design fees for serving as a buying agent of footwear products to mass-market merchandisers, mid-tier department stores and other retailers with respect to their purchase of footwear. In the Licensing segment, the Company generates revenue by licensing its Steve Madden®,
Steven by Steve Madden®, Madden Girl® and Stevies® trademarks and other trademark rights for use in connection with the manufacture, marketing and sale of outerwear, hosiery, activewear, sleepwear, jewelry, watches, hair accessories, umbrellas, bedding, luggage, and men’s leather accessories. In addition, this segment licenses the Betsey Johnson® and Dolce Vita® trademarks for use in connection with the manufacture, marketing and sale of women's and children’s apparel, hosiery, swimwear, outerwear, sleepwear, activewear, jewelry, watches, bedding, luggage, stationary, umbrellas, and household goods.
Note Q – Operating Segment Information (continued)

As of and for the three months ended,
 
Wholesale Footwear
 
Wholesale Accessories
 
Total Wholesale
 
Retail
 
First Cost
 
Licensing
 
Consolidated
March 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales to external customers
 
$
228,922

 
$
46,879

 
$
275,801

 
$
53,556

 
$
—

 
$
—

 
$
329,357

Gross profit
 
70,923

 
15,204

 
86,127

 
30,075

 
—

 
—

 
116,202

Commissions and licensing fees – net
 
—

 
—

 
—

 
—

 
585

 
1,586

 
2,171

Income from operations
 
26,252

 
4,296

 
30,548

 
(2,839
)
 
585

 
1,586

 
29,880

Segment assets
 
$
583,241

 
$
94,178

 
677,419

 
156,183

 
81,898

 
—

 
915,500

Capital expenditures
 
 

 
 

 
$
1,417

 
$
2,967

 
$
—

 
$
—

 
$
4,384

March 31, 2015
 
 

 
 

 


 
 

 
 

 
 

 


Net sales to external customers
 
$
222,895

 
$
53,317

 
$
276,212

 
$
47,733

 
$
—

 
$
—

 
$
323,945

Gross profit
 
67,679

 
17,517

 
85,196

 
26,182

 
—

 
—

 
111,378

Commissions and licensing fees – net
 
—

 
—

 
—

 
—

 
1,528

 
2,390

 
3,918

Income from operations
 
21,758

 
5,647

 
27,405

 
(1,476
)
 
1,528

 
2,390

 
29,847

Segment assets
 
$
566,127

 
$
141,896

 
708,023

 
144,744

 
39,089

 
—

 
891,856

Capital expenditures
 
 

 
 

 
$
2,191

 
$
1,478

 
$
—

 
$
—

 
$
3,669



Revenues by geographic area for the three months ended March 31, 2016 and 2015 are as follows:
 
 
 
Three Months Ended March 31,
 
 
2016
 
2015
Domestic (a)
 
$
299,394

 
$
293,976

International
 
29,963

 
29,969

Total
 
$
329,357

 
$
323,945

(a) Includes revenues of $87,930 and $84,744 for the three months ended March 31, 2016 and 2015, respectively, related to sales to U.S. customers where the title is transferred outside the U.S. and the sale is recorded by our International business.