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Note 15 - Segment Information
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
(1
5
)
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 reporting segments (in thousands):
 
   
Direct-to
    
 
 
 
  
International
    
 
 
 
   
Consumer
    
Commercial
    
Franchising
    
Total
  
Fifty-two weeks ended December 31, 2016
                                
Net sales to external customers
  
$
357,593
   
$
4,312
   
$
2,299
   
$
364,204
 
Net income before income taxes
  
 
2,760
   
 
1,813
   
 
736
   
 
5,309
 
Capital expenditures
  
 
28,083
   
 
-
   
 
35
   
 
28,118
 
Depreciation and amortization
  
 
16,086
   
 
2
   
 
83
   
 
16,171
 
Fifty-two weeks ended January 2, 2016
                                
Net sales to external customers
   $
372,715
     $
2,783
     $
2,196
     $
377,694
  
Net income before income taxes
    
16,053
      
977
      
868
      
17,898
  
Capital expenditures
    
24,307
      
7
      
74
      
24,388
  
Depreciation and amortization
    
16,284
      
1
      
134
      
16,419
  
Fifty-three weeks ended January 3, 2015
                                
Net sales to external customers
   $
387,725
     $
2,098
     $
2,531
     $
392,354
  
Net income (loss) before income taxes
    
15,791
      
687
      
(454
 )    
16,024
  
Capital expenditures
    
10,851
      
-
      
39
      
10,890
  
Depreciation and amortization
    
17,981
      
-
      
147
      
18,128
  
                                 
Total Assets as of:
                                
December 31, 2106
  
$
190,236
   
$
6,143
   
$
3,216
   
$
199,595
 
January 2, 2016
   $
206,878
     $
4,760
     $
1,696
     $
213,334
  
 
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. Revenues are recognized in the 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
  
Fifty-two weeks ended December 31, 2016
                                
Net sales to external customers
  
$
296,152
   
$
66,140
   
$
1,912
   
$
364,204
 
Property and equipment, net
  
 
66,154
   
 
8,733
   
 
37
   
 
74,924
 
Fifty-two weeks ended January 2, 2016
                                
Net sales to external customers
   $
297,554
     $
78,788
     $
1,352
     $
377,694
  
Property and equipment, net
    
61,211
      
6,459
      
71
      
67,741
  
Fifty-three weeks ended January 3, 2015
                                
Net sales to external customers
   $
308,939
     $
81,848
     $
1,567
     $
392,354
  
Property and equipment, net
    
56,400
      
6,366
      
-
      
62,766
  
                          
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