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Note 9. Segment Information
 6 Months Ended
Jul. 02, 2011
Segment Reporting Disclosure [Text Block]
9. Segment Information

The Company’s operations are conducted through three operating segments consisting of retail, commercial and international franchising.  The retail segment includes the operating activities of Company-owned stores in the United States, including Puerto Rico, Canada, the United Kingdom, Ireland, France and other retail delivery operations, including the Company’s Web store and non-traditional store locations such as baseball ballparks.  The commercial segment includes the Company’s transactions with other businesses, mainly comprised of licensing the Company’s intellectual properties for third party use and wholesale activities.  The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in Europe, Asia, Australia, Africa, the Middle East, Mexico and South America. The operating segments have discrete sources of revenue, different capital structures and different cost structures.  These operating segments represent the basis on which the Company’s chief operating decision maker regularly evaluates the business in assessing performance, determining the allocation of resources and the pursuit of future growth opportunities.  Accordingly, the Company has determined that each of its operating segments represent one reportable segment.  The reportable segments follow the same accounting policies used for the Company’s consolidated financial statements.

Following is a summary of the financial information for the Company’s reportable segments (in thousands):  

               
International
       
   
Retail
   
Commercial
   
Franchising
   
Total
 
Thirteen weeks ended July 2, 2011
                       
Net sales to external customers
  $ 80,391     $ 736     $ 714     $ 81,841  
Income (loss) before income taxes
    (11,435 )     401       369       (10,665 )
Capital expenditures, net
    3,786       -       29       3,815  
Depreciation and amortization
    6,136       -       70       6,206  
Thirteen weeks ended July 3, 2010
                               
Net sales to external customers
  $ 72,488     $ 985     $ 661     $ 74,134  
Income (loss) before income taxes
    (13,481 )     623       255       (12,603 )
Capital expenditures, net
    3,128       -       26       3,154  
Depreciation and amortization
    6,643       -       119       6,762  
                                 
Twenty-six weeks ended July 2, 2011
                               
Net sales to external customers
  $ 174,550     $ 1,841     $ 1,440     $ 177,831  
Income (loss) before income taxes
    (15,820 )     811       694       (14,315 )
Capital expenditures, net
    6,074       -       63       6,137  
Depreciation and amortization
    12,604       -       126       12,730  
Twenty-six weeks ended July 3, 2010
                               
Net sales to external customers
  $ 172,274     $ 1,951     $ 1,344     $ 175,569  
Income (loss) before income taxes
    (11,574 )     1,193       595       (9,786 )
Capital expenditures, net
    6,347       -       63       6,410  
Depreciation and amortization
    13,408       -       221       13,629  
                                 
Total Assets as of:
                               
July 2, 2011
  $ 234,125     $ 9,566     $ 2,858     $ 246,549  
July 3, 2010
  $ 247,527     $ 3,726     $ 3,073     $ 254,326  

The Company’s reportable segments are primarily determined by the types of products and services that they offer.  Each reportable segment may operate in many geographic areas. The Company allocates revenues to geographic areas based on the location of the customer or franchisee. The following schedule is a summary of the Company’s sales to external customers and long-lived assets by geographic area (in thousands):

   
North
                   
   
America (1)
   
Europe (2)
   
Other (3)
   
Total
 
Thirteen weeks ended July 2, 2011
                       
Net sales to external customers
  $ 67,315     $ 13,812     $ 714     $ 81,841  
Property and equipment, net
    69,879       11,346       -       81,225  
Thirteen weeks ended July 3, 2010
                               
Net sales to external customers
  $ 61,326     $ 12,147     $ 661     $ 74,134  
Property and equipment, net
    80,742       11,892       -       92,634  
                                 
Twenty-six weeks ended July 2, 2011
                               
Net sales to external customers
  $ 146,498     $ 29,893     $ 1,440     $ 177,831  
Property and equipment, net
    69,879       11,346       -       81,225  
Twenty-six weeks ended July 3, 2010
                               
Net sales to external customers
  $ 146,294     $ 27,931     $ 1,344     $ 175,569  
Property and equipment, net
    80,742       11,892       -       92,634  

(1)
North America includes the United States, Canada and Puerto Rico

(2)
Europe includes Company-owned stores in the United Kingdom and Ireland and, prior to 2011, France

(3)
Other includes franchise businesses outside of the United States, Canada, Puerto Rico, the United Kingdom and Ireland