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BUSINESS SEGMENTS
9 Months Ended
Sep. 30, 2011
BUSINESS SEGMENTS

NOTE H — BUSINESS SEGMENTS

The Company operates in two reportable business segments; the Wholesale segment, the Company’s primary business, in which the Company designs, markets and distributes products to retailers and distributors, and the Retail Direct segment, in which the Company markets and sells to consumers through its Pfaltzgraff®, Mikasa®, Housewares Deals™ and Lifetime Sterling™ Internet websites.

The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. While both segments distribute similar products, the segments are distinct due to the different types of customers and the different methods the Company uses to sell, market and distribute the products.

Management evaluates the performance of the Wholesale and Retail Direct segments based on net sales and income (loss) from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses.

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2011     2010     2011     2010  
     (in thousands)  

Net sales

         

Wholesale

    $ 120,773      $ 118,765      $ 291,977      $ 282,405   

Retail Direct

      3,890        6,153        14,830        18,138   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net sales

    $ 124,663      $ 124,918      $ 306,807      $ 300,543   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

         

Wholesale

    $ 14,143      $ 14,328      $ 24,193      $ 24,986   

Retail Direct

      (489 )      (537 )      (909 )      (955 ) 

Unallocated corporate expenses

      (3,356 )      (3,562 )      (8,658 )      (8,753 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total income from operations

    $ 10,298      $ 10,229      $ 14,626      $ 15,278   
  

 

 

    

 

 

    

 

 

    

 

 

  

Depreciation and amortization

         

Wholesale

    $ (1,986 )    $ (2,495 )    $ (5,892 )    $ (7,449 ) 

Retail Direct

      (60 )      (23 )      (169 )      (69 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total depreciation and amortization

    $ (2,046 )    $ (2,518 )    $ (6,061 )    $ (7,518 )