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Note 8 - Segment Information
 6 Months Ended
Jul. 04, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

8. Segment Information


The Company’s operations are conducted through three operating segments consisting of retail, international franchising and commercial. The retail segment includes the operating activities of company-owned stores in the United States, Canada, Puerto Rico, the United Kingdom, Ireland and Denmark and other retail delivery operations, including the Company’s web stores. The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in Europe (outside of the United Kingdom, Ireland and Denmark), Asia, Australia, the Middle East, Africa and Mexico. 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 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 three 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

    

Franchising

    

Commercial

    

Total

  
                                 
Thirteen weeks ended July 4, 2015                                

Net sales to external customers

   $ 80,279     $ 548     $ 187     $ 81,014  

Income (loss) before income taxes

    (684 )     242       4       (438 )

Capital expenditures, net

     3,190       12       -       3,202  

Depreciation and amortization

    3,982       33       -       4,015  
                                 
Thirteen weeks ended June 28, 2014                                

Net sales to external customers

   $ 75,351     $ 487     $ 410     $ 76,248  

Income (loss) before income taxes

    (4,016 )     (141 )     198       (3,959 )

Capital expenditures, net

     2,066       -       -       2,066  

Depreciation and amortization

    4,433       36       -       4,469  
                                 
Twenty-six weeks ended July 4, 2015                                

Net sales to external customers

   $ 171,943     $ 1,099     $ 1,364     $ 174,406  

Income before income taxes

    5,420       372       822       6,614  

Capital expenditures, net

     6,048       32       -       6,080  

Depreciation and amortization

    8,163       70       -       8,233  
                                 
Twenty-six weeks ended June 28, 2014                                

Net sales to external customers

   $ 172,191     $ 1,156     $ 842     $ 174,189  

Income (loss) before income taxes

    1,198       (278 )     426       1,346  

Capital expenditures, net

     3,162       9       -       3,171  

Depreciation and amortization

    8,903       74       -       8,977  
                                 
Total Assets as of:                                

July 4, 2015

   $ 170,545     $ 2,194     $ 4,845     $ 177,584  

June 28, 2014

   $ 164,982     $ 2,509     $ 5,840     $ 173,331  

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 4, 2015                                

Net sales to external customers

   $ 64,472     $ 16,213     $ 329     $ 81,014  

Property and equipment, net

     52,604       5,835       -       58,439  
Thirteen weeks ended June 28, 2014                                

Net sales to external customers

   $ 61,503     $ 14,424     $ 321     $ 76,248  

Property and equipment, net

     55,881       7,304       -       63,185  
                                 
Twenty-six weeks ended July 4, 2015                                

Net sales to external customers

   $ 141,119     $ 32,628     $ 659     $ 174,406  

Property and equipment, net

     52,604       5,835       -     $ 58,439  
Twenty-six weeks ended June 28, 2014                                

Net sales to external customers

   $ 141,332     $ 32,175     $ 682     $ 174,189  

Property and equipment, net

     55,881       7,304       -       63,185  

For purposes of this table only:


(1) North America includes the United States, Canada, Puerto Rico and franchise business in Mexico


(2) Europe includes the United Kingdom, Ireland, Denmark (in 2015) and franchise businesses in Europe


(3) Other includes franchise businesses outside of North America and Europe