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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2016
BUSINESS SEGMENTS

NOTE J — 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
September 30,		      Nine Months Ended
September 30,		  
     2016      2015      2016      2015  
     (in thousands)  

Net sales

            

U.S. Wholesale

    $ 139,607       $ 130,588       $ 314,613       $ 311,710   

International

      26,736         28,812         71,969         76,641   

Retail Direct

      3,781         3,798         12,517         13,439   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total net sales

    $ 170,124       $ 163,198       $ 399,099       $ 401,790   
  

 

 

     

 

 

     

 

 

     

 

 

  

Income (loss) from operations

            

U.S. Wholesale

    $ 14,367       $ 13,464       $ 15,846       $ 20,094   

International

      1,024         608         1,037         (3,060 ) 

Retail Direct

      (97 )       (377 )       (54 )       (784 ) 

Unallocated corporate expenses

      (4,512 )       (3,933 )       (11,550 )       (9,646 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Income from operations

    $ 10,782       $ 9,762       $ 5,279       $ 6,604   
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization

            

U.S. Wholesale (1)

    $ 3,386       $ 2,164       $ 7,837       $ 6,609   

International

      1,264         1,312         3,804         3,982   

Retail Direct

      32         34         103         112   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total depreciation and amortization (1)

    $ 4,682       $ 3,510       $ 11,744       $ 10,703   
  

 

 

     

 

 

     

 

 

     

 

 

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

Assets

      

U.S. Wholesale

    $ 336,901       $ 269,143   

International

      117,639         115,128   

Retail Direct

      369         443   

Unallocated/ Corporate/ Other

      12,995         13,617   
  

 

 

     

 

 

  

Total assets

    $ 467,904       $ 398,331   
  

 

 

     

 

 

  

 

(1)  The three and nine months ended September 30, 2016 includes a $1.3 million charge to correct prior years’ depreciation of certain assets within the U.S. Wholesale segment.