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 Albania, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Kosovo, Latvia, Lithuania, Luxembourg, Mexico, the Netherlands, Norway, Poland, Romania, Russia, Slovakia, Slovenia, Sweden, Switzerland, and Tunisia and, under special distribution arrangements in various other territories within Asia, Europe (excluding the aforementioned nations), 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 and Mexico, our joint ventures in South Africa, China and Taiwan 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® and Madden Girl® trademarks for use in connection with the manufacture, marketing and sale of outerwear, hosiery, jewelry, watches, sunglasses, hair accessories, umbrellas, bedding, luggage, and men’s leather accessories. We license the Stevies® trademark for use in connection with the manufacture, marketing and sale of outerwear exclusively to Target. In addition, this segment licenses the Betsey Johnson® trademark for use in connection with the manufacture, marketing and sale of women's and children’s apparel, hosiery, swimwear, fragrance and beauty, sleepwear, activewear, jewelry, watches, bedding, luggage, stationary, umbrellas, and household goods. The Licensing segment also licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of women's and children's apparel.

Note O – Operating Segment Information (continued)



Year ended	Wholesale Footwear		Wholesale Accessories		Total Wholesale		Retail			First Cost		Licensing		Consolidated
December 31, 2017:
Net sales	$	1,017,557	$	256,295	$	1,273,852	$	272,246		$	—	$	—	$	1,546,098
Gross profit	332,367		80,729		413,096		164,645			—		—		577,741
Commissions and licensing fees – net	—		—		—		—			5,159		9,100		14,259
Income from operations	133,014		23,637		156,651		(1,126		)	5,159		9,100		169,784
Depreciation and amortization					11,287		9,645			457		—		21,389
Segment assets	$	784,334	$	138,720	923,054		122,111			11,996		—		1,057,161
Capital expenditures					$	5,590	$	9,185		$	—	$	—	$	14,775
December 31, 2016:
Net sales	$	881,864	$	254,931	$	1,136,795	$	262,756		$	—	$	—	$	1,399,551
Gross profit	279,835		84,422		364,257		157,726			—		—		521,983
Commissions and licensing fees – net	—		—		—		—			3,728		8,060		11,788
Income from operations	110,039		31,562		141,601		15,787			3,728		8,060		169,176
Depreciation and amortization					11,734		9,087			281		—		21,102
Segment assets	$	648,738	$	186,075	834,813		118,168			7,894		—		960,875
Capital expenditures					$	5,990	$	9,907		$	—	$	—	$	15,897
December 31, 2015
Net sales	$	898,363	$	266,564	$	1,164,927	$	240,312		$	—	$	—	$	1,405,239
Gross profit	265,822		88,361		354,183		146,309			—		—		500,492
Commissions and licensing fees – net	—		—		—		—			6,713		9,852		16,565
Income from operations	104,836		32,612		137,448		17,635			6,713		9,852		171,648
Depreciation and amortization					12,624		7,897			236		—		20,757
Segment assets	$	604,015	$	187,895	791,910		106,823			15,652		—		914,385
Capital expenditures					$	7,237	$	12,222		$	—	$	—	$	19,459

Revenues by geographic area are as follows:



	Year Ended December 31,
	2017		2016		2015
Domestic (a)	$	1,383,841	$	1,258,973	$	1,255,709
International	162,257		140,578		149,530
Total	$	1,546,098	$	1,399,551	$	1,405,239
(a) Includes revenues of $329,107, $312,491 and $331,481 for the years ended 2017, 2016 and 2015 related to sales to U.S. customers where the title is transferred outside the U.S. and the sale is recorded by our International subsidiary.