SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

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 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 2018 and 2017, there was no single customer with sales above 10% of the Company’s total sales.

In the retail segment, the Company operated nine brick and mortar retail stores and internet businesses in the United States at December 31, 2018. 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, 2018 and 2017 was as follows:

	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	230,831	$	22,683	$	42,330		$	295,844
Licensing revenues		2,531		-		-			2,531
Net sales		233,362		22,683		42,330			298,375
Depreciation		2,425		331		956			3,712
Earnings from operations		23,106		2,732		(379	)		25,459
Total assets		239,119		4,440		26,485			270,044
Capital expenditures		648		76		686			1,410

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

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, 2018 and 2017:

	2018		2017
	(Dollars in thousands)
Net Sales
United States	$	234,782	$	219,685
Canada		21,263		18,451
Europe		7,849		7,433
Australia		26,038		28,082
Asia		5,442		6,812
South Africa		3,001		3,286
Total	$	298,375	$	283,749

Long-Lived Assets
United States	$	70,018	$	72,328
Other		6,490		7,708
	$	76,508	$	80,036

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.