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Note 8 - Segment Information
 9 Months Ended
Oct. 01, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
8
. Segment Information
 
The Company
’s operations are conducted through three operating segments consisting of direct-to-consumer (DTC), formerly retail, international franchising, and commercial. The DTC segment includes the operating activities of company-owned stores and other retail delivery operations in the United States, Canada, the United Kingdom, Ireland, Denmark and China, including the Company’s e-commerce sites and temporary 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 (outside of China), 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
    
Commercial
    
Franchising
    
Total
  
Thirteen weeks ended October 2, 2016
                                
Net sales to external customers
   $ 81,870     $ 1,322     $ 556     $ 83,748  
Income before income taxes
     1,881       667       248       2,796  
Capital expenditures, net
     6,321       -       10       6,331  
Depreciation and amortization
     3,935       1       18       3,954  
                                 
Thirteen weeks ended October 3, 2015
                                
Net sales to external customers
   $ 84,303     $ 795     $ 525     $ 85,623  
Income before income taxes
     1,120       182       66       1,368  
Capital expenditures, net
     6,753       7       25       6,785  
Depreciation and amortization
     3,996       1       32       4,029  
                                 
Thirty-nine weeks ended October 1, 2016
                                
Net sales to external customers
   $ 249,854     $ 2,601     $ 1,407     $ 253,862  
Income before income taxes
     429       1,080       316       1,825  
Capital expenditures, net
     18,178       -       35       18,213  
Depreciation and amortization
     11,506       2       65       11,573  
                                 
Thirty-nine weeks ended October 3, 2015
                                
Net sales to external customers
   $ 256,246     $ 2,159     $ 1,624     $ 260,029  
Income before income taxes
     6,539       1,003       439       7,981  
Capital expenditures, net
     12,800       7       57       12,864  
Depreciation and amortization
     12,159       1       102       12,262  
                                 
Total Assets as of:
                                
October 1, 2016
   $ 174,510     $ 5,968     $ 2,419     $ 182,897  
October 3, 2015
   $ 177,067     $ 4,765     $ 1,472     $ 183,304  
 
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 2, 2016
                                
Net sales to external customers
   $ 68,227     $ 14,955     $ 566     $ 83,748  
Property and equipment, net
     62,377       8,385       1,222       71,984  
Thirteen weeks ended October 3, 2015
                                
Net sales to external customers
   $ 66,202     $ 19,065     $ 356     $ 85,623  
Property and equipment, net
     53,544       6,546       -       60,090  
Thirty-nine weeks ended October 1, 2016
                                
Net sales to external customers
   $ 209,105     $ 43,592     $ 1,165     $ 253,862  
Property and equipment, net
     62,377       8,385       1,222       71,984  
Thirty-nine weeks ended October 3, 2015
                                
Net sales to external customers
   $ 207,321     $ 51,693     $ 1,015     $ 260,029  
Property and equipment, net
     53,544       6,546       -       60,090  
 
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 and franchise businesses in Europe
(3) Other includes franchise businesses outside of North America and Europe and, beginning in 2016, a company-owned store in China