v2.4.0.6
Segment operations
 6 Months Ended
Dec. 31, 2011
Segment operations [Abstract]  
Segment operations

14. Segment operations

The Company primarily markets footwear and accessories products sold predominantly in North America and operates with two reportable segments which include: (1) Footwear that encompasses primarily slippers, sandals, hybrid and fashion footwear, slipper socks and hosiery; and (2) Accessories products including shoe and foot 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 such segment operating profit was redefined and our internal financial reporting structure changed accordingly.

While many selling, general and administrative (“SGA”) expenses are direct to each operating unit, certain corporate support expenses are incurred and assigned to the respective operating units based on estimated usage of Company services. Operating profit as measured for each segment includes sales, cost of sales, 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 expense areas including annual accrued incentive, severance, 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.

 

      September 30,       September 30,       September 30,       September 30,  

Second quarter

Fiscal 2012

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 47,905     $ 7,694     $ —       $ 55,599  

Gross profit

     18,457       4,540       —         22,997  

Operating profit

     12,316       1,588       (3,322 )      10,582  
         

First half

Fiscal 2012

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 90,080     $ 15,749     $ —       $ 105,829  

Gross profit

     36,101       9,149       —         45,250  

Operating profit

     24,711       3,378       (6,134 )      21,955  
         

Total assets

     66,404       51,418       11,093       128,915  
         

Second quarter

Fiscal 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 49,660     $ —       $ —       $ 49,660  

Gross profit

     17,229       —         —         17,229  

Operating profit

     8,165       —         (1,473 )      6,692  
         

First half

Fiscal 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 85,929     $ —       $ —       $ 85,929  

Gross profit

     31,426       —         —         31,426  

Operating profit

     16,466       —         (3,349 )      13,117  
         

As of July 2, 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Total assets

   $ 52,427     $ 52,506     $ 11,046     $ 115,979  

Unallocated corporate assets comprised corporate assets including building, software, furniture and equipment, as well as long-term deferred tax assets, cash surrender assets associated with insurance policies and other nominal intangible or deposit type assets held by the Company.

Since the Accessories Segment business acquisitions occurred in the third quarter of fiscal 2011, there were no net sales, gross profit or operating profit for either the second quarter or the first half of fiscal 2011 included in the results reported above.