v2.4.0.6
Segment Reporting
 12 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting
(16) Segment Reporting

The Company primarily markets footwear and accessories products sold predominantly in North America and has two reportable segments, which include: (1) footwear that encompasses primarily slippers, sandals, hybrid and fashion footwear; and (2) accessories with products including foot and shoe care products, handbags, tote bags and other travel accessories. The accounting policies of the reportable segments are the same, except that the disaggregated information has been prepared using certain management reports, which by their very nature require estimates.

Effective with the first quarter of fiscal 2012, the Company implemented organizational changes in its reporting structure which included the creation of a separate Business Unit President for each operating unit, with each President reporting to the Chief Executive Officer (“CEO”) of R.G. Barry Corporation. This Business Unit President has financial performance responsibility for the operating unit. The measure of segment operating profit was redefined and our internal financial reporting structure changed accordingly.

While many selling, general and administrative (“SGA”) expenses are directly incurred by each operating unit, certain corporate support expenses are incurred and assigned to the respective operating units based on estimated usage of such corporate support. Operating profit as measured for each segment includes sales, cost of sales and direct and allocated SGA expenses. This segment measure of operating profit or loss, as defined, is the primary indicator of financial performance used by management.

Other corporate expenses incurred are deemed to be applicable to the Company as a whole and are not allocated to any specific business segment. These unallocated expenses primarily include areas such as the Company’s corporate and governance functions, including the CEO, Chief Financial Officer and Board of Directors, as well as annual accrued incentive stock compensation, pension, professional fees and similar corporate expenses. Segment operating profit, as reported below, is based on the same definition of operating profit as described above.

 

                                 

2012

   Footwear     Accessories     Unallocated
Corporate		     Total  

Net sales

   $ 123,336     $ 32,602     $ —       $ 155,938  

Gross profit

     48,901       18,268       —         67,169  

Depreciation and amortization

     486       1,885       674       3,045  

Operating profit

     28,247       6,096       (10,970 )      23,373  

Total assets

     39,573       50,402       38,291       128,266  

 

                                 

2011

   Footwear     Accessories     Unallocated
Corporate		     Total  

Net sales

   $ 118,844     $ 10,724     $ —       $ 129,568  

Gross profit

     41,776       6,387       —         48,163  

Depreciation and amortization

     580       528       783       1,891  

Operating profit

     16,909       2,987       (8,216 )      11,680  

Total assets

     35,521       52,506       27,952       115,979  

 

                                 

2010

   Footwear     Accessories     Unallocated
Corporate		     Total  

Net sales

   $ 123,787     $ —       $ —       $ 123,787  

Gross profit

     51,359       —         —         51,359  

Depreciation and amortization

     301       —         566       867  

Operating profit

     25,687       —         (10,951 )      14,736  

Total assets

     40,962       —         42,407       83,369  

During fiscal 2010, the Company operated with a single segment representing its footwear business. Results for fiscal 2011 reflect the respective acquisitions of Accessories segment business assets at, and operations subsequent to, January 2011 for Foot Petals and March 2011 for Baggallini.

Net sales as reported in the consolidated statements of income relate primarily to markets in the United States of America. At June 30, 2012 and July 2, 2011, substantially all of the Company’s long-lived assets were located in the United States of America.

 

For fiscal 2012, fiscal 2011 and fiscal 2010, one customer accounted for approximately 29%, 32% and 35%, respectively, of the Company’s consolidated net sales. A second customer accounted for 10% of the Company’s consolidated net sales in fiscal 2010. All significant customers noted above were in the Footwear segment.