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Note 9. Segment Information
9 Months Ended
Oct. 01, 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 a 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 October 1, 2011
                       
Net sales to external customers
  $ 95,378     $ 1,160     $ 872     $ 97,410  
Income (loss) before income taxes
    806       545       514       1,865  
Capital expenditures, net
    3,745       -       14       3,759  
Depreciation and amortization
    5,822       -       62       5,884  
Thirteen weeks ended October 2, 2010
                               
Net sales to external customers
  $ 91,689     $ 7,637     $ 767     $ 100,093  
Income (loss) before income taxes
    (3,342 )     1,029       411       (1,902 )
Capital expenditures, net
    3,724       -       74       3,798  
Depreciation and amortization
    6,530       -       179       6,709  
                                 
Thirty-nine weeks ended October 1, 2011
                               
Net sales to external customers
  $ 269,929     $ 3,002     $ 2,312     $ 275,243  
Income (loss) before income taxes
    (15,014 )     1,356       1,208       (12,450 )
Capital expenditures, net
    9,819       -       77       9,896  
Depreciation and amortization
    18,426       -       188       18,614  
Thirty-nine weeks ended October 2, 2010
                               
Net sales to external customers
  $ 263,963     $ 9,588     $ 2,112     $ 275,663  
Income (loss) before income taxes
    (14,915 )     2,222       1,005       (11,687 )
Capital expenditures, net
    10,072       -       136       10,208  
Depreciation and amortization
    19,938       -       400       20,338  
                                 
Total Assets as of:
                               
October 1, 2011
  $ 230,074     $ 9,695     $ 2,794     $ 242,563  
October 2, 2010
  $ 239,672     $ 10,382     $ 2,817     $ 252,871  

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 October 1, 2011
                       
Net sales to external customers
  $ 78,915     $ 17,623     $ 872     $ 97,410  
Property and equipment, net
    67,527       11,438       -       78,965  
Thirteen weeks ended October 2, 2010                                
Net sales to external customers
  $ 83,333     $ 15,993     $ 767     $ 100,093  
Property and equipment, net
    78,082       12,315       -       90,397  
Thirty-nine weeks ended October 1, 2011                                
Net sales to external customers
  $ 225,415     $ 47,516     $ 2,312       275,243  
Property and equipment, net
    67,527       11,438       -       78,965  
Thirty-nine weeks ended October 2, 2010                                
Net sales to external customers
  $ 229,627     $ 43,924     $ 2,112     $ 275,663  
Property and equipment, net
    78,082       12,315       -       90,397  

(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