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Business Segments | 12 Months Ended
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Dec. 31, 2012
Business Segments | NOTE J — BUSINESS SEGMENTS Segment information The Company operates in two reportable business segments: the Wholesale segment, the Company’s primary business segment, 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 a limited selection of its products directly to consumers through its Pfaltzgraff®, Mikasa®, Housewares Deals® and Lifetime Sterling® Internet websites. The operating results of Creative Tops and Fred® & Friends since the dates of the acquisitions are included in the Wholesale segment. 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 have been distinct due to the different methods the Company uses to sell, market and distribute the products. Management evaluated the performance of the Wholesale and Retail Direct segments based on net sales and income (loss) from operations through December 31, 2012. 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. Assets in each segment consist of assets used in its operations and acquired intangible assets. Assets in the unallocated corporate category consist of cash and tax related assets that are not allocated to the segments.
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 464,862 |  |  | $ | 421,119 |  |  | $ | 413,809 |
Retail Direct |  |  | 21,980 |  |  |  | 23,299 |  |  |  | 29,362 |
Total net sales |  | $ | 486,842 |  |  | $ | 444,418 |  |  | $ | 443,171 |
Income from operations: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale(1) |  | $ | 40,530 |  |  | $ | 38,410 |  |  | $ | 42,997 |
Retail Direct |  |  | 463 |  |  |  | (524 | ) |  |  | (1,018 | )
Unallocated corporate expenses |  |  | (13,658 | ) |  |  | (13,302 | ) |  |  | (12,196 | )
Total income from operations |  | $ | 27,335 |  |  | $ | 24,584 |  |  | $ | 29,783 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 9,074 |  |  | $ | 8,183 |  |  | $ | 9,719 |
Retail Direct |  |  | 250 |  |  |  | 214 |  |  |  | 91 |
Total depreciation and amortization |  | $ | 9,324 |  |  | $ | 8,397 |  |  | $ | 9,810 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 342,872 |  |  | $ | 317,435 |  |  | $ | 271,670 |
Retail Direct |  |  | 512 |  |  |  | 813 |  |  |  | 1,441 |
Unallocated/ corporate/ other |  |  | 5,413 |  |  |  | 497 |  |  |  | 4,475 |
Total assets |  | $ | 348,797 |  |  | $ | 318,745 |  |  | $ | 277,586 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 4,897 |  |  | $ | 4,730 |  |  | $ | 2,541 |
Retail Direct |  |  | 58 |  |  |  | 229 |  |  |  | 323 |
Total capital expenditures |  | $ | 4,955 |  |  | $ | 4,959 |  |  | $ | 2,864 |
Note:
(1) | In 2012, income from operations for the Wholesale segment includes $1.1 million of intangible asset impairment.
Geographical information The following table sets forth net sales and long-lived assets by the major geographic locations (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |
Net sales: |  |  |  |  |  |  |  |
United States |  | $ | 430,758 |  |  | $ | 426,405 |
International |  |  | 56,084 |  |  |  | 18,013 |
Total |  | $ | 486,842 |  |  | $ | 444,418 |
Long-lived assets at period-end: |  |  |  |  |  |  |  |
United States |  | $ | 133,841 |  |  | $ | 118,803 |
International |  |  | 2,197 |  |  |  | 1,145 |
Total |  | $ | 136,038 |  |  | $ | 119,948 |
Product category information — net sales The following table sets forth net sales by major product categories included within the Company’s Wholesale operating segment:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Category: |  |  |  |  |  |  |  |  |  |  |  |
Kitchenware |  | $ | 256,154 |  |  | $ | 215,707 |  |  | $ | 208,491 |
Tabletop |  |  | 113,911 |  |  |  | 134,652 |  |  |  | 123,432 |
Home Solutions |  |  | 52,176 |  |  |  | 64,099 |  |  |  | 81,886 |
Creative Tops |  |  | 42,621 |  |  |  | 6,661 |  |  |  | — |
Total |  | $ | 464,862 |  |  | $ | 421,119 |  |  | $ | 413,809 |
The product categories, which incorporate a 2011 change to establish a Home Solutions products category and the additional revenue source from Creative Tops, reflect a refined alignment of the products into the sources of revenue which the Company analyzes. The revenue source categories disclosed in 2010 have been reclassified to conform to current year presentation for comparative purposes.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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