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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
17. SEGMENT INFORMATION

 

The Company has two reportable segments: North American wholesale operations (“wholesale”) and North American retail operations (“retail”). The chief operating decision maker, the Company’s Chief Executive Officer, evaluates the performance of its segments based on earnings from operations and accordingly, interest income or expense, other income or expense, and income taxes are not allocated to the segments. The “other” category in the table below includes the Company’s wholesale and retail operations in Australia, South Africa, Asia Pacific and Europe, which do not meet the criteria for separate reportable segment classification.

 

In the wholesale segment, shoes are marketed through more than 10,000 footwear, department and specialty stores, primarily in the United States and Canada. Licensing revenues are also included in the Company’s wholesale segment. As of December 31, 2012, the Company had licensing agreements with third parties who sell its branded apparel, accessories and specialty footwear in the United States, as well as its footwear in Mexico and certain markets overseas. In 2012 and 2011, there was no single customer with sales above 10% of the Company’s total sales. In 2010, sales to the Company’s largest customer were 12% of total sales.

 

In the retail segment, the Company operated 23 Company-owned stores in principal cities in the United States and an Internet business as of December 31, 2012. Sales in retail outlets are made directly to the consumer by Company employees. In addition to the sale of the Company’s brands of footwear in these retail outlets, other branded footwear and accessories are also sold in order to provide the consumer with as complete a selection as practically possible.

 

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies. Summarized segment data for the years ended December 31, 2012, 2011 and 2010 was as follows:

 

                         
    Wholesale     Retail     Other     Total  
    (Dollars in thousands)  
2012                        
Product sales   $ 214,568     $ 24,348     $ 51,215     $ 290,131  
Licensing revenues     3,340       -       -       3,340  
Net sales     217,908       24,348       51,215       293,471  
Depreciation     2,083       544       711       3,338  
Earnings from operations     22,214       1,662       5,921       29,797  
Total assets     246,523       7,994       30,804       285,321  
Capital expenditures     7,235       844       1,461       9,540  
                                 
2011                                
Product sales   $ 195,638     $ 24,740     $ 47,273     $ 267,651  
Licensing revenues     3,449       -       -       3,449  
Net sales     199,087       24,740       47,273       271,100  
Depreciation     1,677       565       349       2,591  
Earnings from operations     15,673       1,554       5,970       23,197  
Total assets     237,279       7,374       28,855       273,508  
Capital expenditures     6,576       249       1,364       8,189  
                                 
2010                                
Product sales   $ 163,843     $ 22,497     $ 40,713     $ 227,053  
Licensing revenues     2,178       -       -       2,178  
Net sales     166,021       22,497       40,713       229,231  
Depreciation     1,614       682       404       2,700  
Earnings from operations     15,742       (400 )     3,439       18,781  
Total assets     189,844       7,572       26,019       223,435  
Capital expenditures     298       54       1,158       1,510  

  

All North American corporate office assets are included in the wholesale segment. Transactions between segments primarily consist of sales between the wholesale and retail segments. Intersegment sales are valued at the cost of inventory plus an estimated cost to ship the products. Intersegment sales have been eliminated and are excluded from net sales in the above table.

 

Geographic Segments

Financial information relating to the Company’s business by geographic area was as follows for the years ended December 31, 2012, 2011 and 2010:

 

    2012     2011     2010  
    (Dollars in thousands)  
Net Sales:                        
United States   $ 225,397     $ 212,779     $ 179,129  
Canada     16,859       11,049       9,361  
Europe     7,230       8,014       8,008  
Australia     29,465       25,049       20,073  
Asia     8,956       8,277       7,432  
South Africa     5,564       5,932       5,228  
Total   $ 293,471     $ 271,100     $ 229,231  
                         
Long-Lived Assets:                        
United States   $ 80,268     $ 75,293     $ 34,334  
Other     6,009       5,116       4,089  
    $ 86,277     $ 80,409     $ 38,423  

 

Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of property, plant and equipment (net), goodwill, trademarks and amortizable intangible assets.