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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2016
BUSINESS SEGMENTS

NOTE I — BUSINESS SEGMENTS

The Company operates in three reportable business segments: U.S. Wholesale, International and Retail Direct. The U.S. Wholesale segment is the Company’s primary domestic business that designs, markets and distributes its products to retailers and distributors. The International segment consists of certain business operations conducted outside the U.S. The Retail Direct segment is where the Company markets and sells a limited selection of its products directly to consumers through its Pfaltzgraff, Mikasa, Fred and Friends, Built NY 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 the three segments distribute similar products, the segments are distinct due to the different methods the Company uses to sell, market and distribute the products. Management evaluates the performance of the U.S. Wholesale, International 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 
June 30,		      Six Months Ended 
June 30,		  
     2016      2015      2016      2015  
     (in thousands)  

Net sales

            

U.S. Wholesale

    $ 92,738       $ 94,601       $ 175,006       $ 181,122   

International

      21,560         22,464         45,233         47,829   

Retail Direct

      3,752         3,870         8,736         9,641   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total net sales

    $ 118,050       $ 120,935       $ 228,975       $ 238,592   
  

 

 

     

 

 

     

 

 

     

 

 

  

Loss from operations

            

U.S. Wholesale

    $ 3,268       $ 3,133       $ 1,479       $ 5,084   

International

      (382 )       (1,577 )       13         (2,122 ) 

Retail Direct

      6         (358 )       43         (407 ) 

Unallocated corporate expenses

      (3,180 )       (2,185 )       (7,038 )       (5,713 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Loss from operations

    $ (288 )     $ (987 )     $ (5,503 )     $ (3,158 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization

            

U.S. Wholesale

    $ 2,272       $ 2,258       $ 4,451       $ 4,445   

International

      1,270         1,340         2,540         2,670   

Retail Direct

      36         40         71         78   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total depreciation and amortization

    $ 3,578       $ 3,638       $ 7,062       $ 7,193   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     June 30,      December 31,  
     2016      2015  
     (in thousands)  

Assets

      

U.S. Wholesale

    $ 273,760       $ 269,143   

International

      113,395         115,128   

Retail Direct

      256         443   

Unallocated/ Corporate/ Other

      13,772         13,617   
  

 

 

     

 

 

  

Total assets

    $ 401,183       $ 398,331