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Business Segments
 3 Months Ended
Mar. 31, 2013
Business Segments

NOTE H — BUSINESS SEGMENTS

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 Fred® & Friends since the date of the acquisition 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 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
March 31,		  
     2013     2012  
     (in thousands)  

Net sales

     

Wholesale

    $ 93,118      $ 103,340   

Retail Direct

      5,539        5,701   
  

 

 

    

 

 

  

Total net sales

    $ 98,657      $ 109,041   
  

 

 

    

 

 

  

Income (loss) from operations

     

Wholesale

    $ 2,559      $ 6,160   

Retail Direct

      9        (8 ) 

Unallocated corporate expenses

      (2,683 )      (2,920 ) 
  

 

 

    

 

 

  

Total income (loss) from operations

    $ (115 )    $ 3,232   
  

 

 

    

 

 

  

Depreciation and amortization

     

Wholesale

    $ (2,458 )    $ (2,150 ) 

Retail Direct

      (65 )      (57 ) 
  

 

 

    

 

 

  

Total depreciation and amortization

    $ (2,523 )    $ (2,207 )