16. 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 the Company’s segments based on earnings from operations. Therefore, 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. The Company has 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 2017, 2016 and 2015, there was no single customer with sales above 10% of the Company’s total sales.

In the retail segment, the Company operated 10 brick and mortar retail stores and internet businesses in the United States as of December 31, 2017. 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.

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, 2017, 2016 and 2015 was as follows:


	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2017
Product sales	$	214,733	$	20,860	$	45,613	$	281,206
Licensing revenues		2,543		—		—		2,543
Net sales		217,276		20,860		45,613		283,749
Depreciation		2,606		412		938		3,956
Earnings from operations		20,224		1,374		1,814		23,412
Total assets		228,738		4,548		29,546		262,832
Capital expenditures		735		338		505		1,578
2016
Product sales	$	224,752	$	21,883	$	47,513	$	294,148
Licensing revenues		2,785		—		—		2,785
Net sales		227,537		21,883		47,513		296,933
Depreciation		2,361		461		848		3,670
Earnings from operations		17,944		2,109		2,729		22,782
Total assets		234,005		5,341		28,894		268,240
Capital expenditures		3,650		1,188		1,154		5,992
2015
Product sales	$	247,738	$	22,121	$	47,126	$	316,985
Licensing revenues		3,632		—		—		3,632
Net sales		251,370		22,121		47,126		320,617
Depreciation		2,210		535		867		3,612
Earnings from operations		26,335		2,519		2,994		31,848
Total assets		267,265		4,372		27,360		298,997
Capital expenditures		1,329		399		753		2,481

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, 2017, 2016 and 2015:


	2017		2016		2015
	(Dollars in thousands)
Net Sales:
United States	$	219,685	$	231,462	$	252,459
Canada		18,451		17,958		21,031
Europe		7,433		8,014		7,291
Australia		28,082		28,390		27,224
Asia		6,812		7,702		9,050
South Africa		3,286		3,407		3,562
Total	$	283,749	$	296,933	$	320,617
Long-Lived Assets:
United States	$	72,328	$	74,548	$	74,658
Other		7,708		7,695		7,699
	$	80,036	$	82,243	$	82,357

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, investment in real estate and amortizable intangible assets.