v2.4.0.6
Segment operations
 9 Months Ended
Mar. 31, 2012
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 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.

 

                                 

Third quarter

Fiscal 2012

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 17,099     $ 8,015     $ —       $ 25,114  

Gross profit

     6,729       4,464       —         11,193  

Operating profit

     2,368       1,436       (2,466 )      1,338  
         

Nine-month period

Fiscal 2012

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 107,179     $ 23,764     $ —       $ 130,943  

Gross profit

     42,829       13,613       —         56,442  

Operating profit

     26,981       4,807       (8,496 )      23,292  
         

As of March 30, 2012

   Footwear     Accessories     Unallocated Corporate     Total  

Total assets

   $ 60,567     $ 53,455     $ 10,855     $ 124,877  
         

Third Quarter

Fiscal 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 17,752     $ 2,361     $ —       $ 20,113  

Gross profit

     6,444       1,486       —         7,930  

Operating profit (loss)

     811       642       (1,605 )      (152 ) 
         

Nine-month period

Fiscal 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Net sales

   $ 103,681     $ 2,361     $ —       $ 106,042  

Gross profit

     37,870       1,486       —         39,356  

Operating profit

     17,106       730       (4,871 )      12,965  
         

As of July 2, 2011

   Footwear     Accessories     Unallocated Corporate     Total  

Total assets

   $ 52,681     $ 52,506     $ 10,792     $ 115,979  

 

R.G. BARRY CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

for the Third Quarter and Nine-month period of Fiscal 2012 and the Third Quarter and Nine-month period of Fiscal 2011

(dollar amounts in thousands, except per share data)

 

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, net sales, gross profit and operating profit included in the results reported above include those of our first of the two business acquisitions from the date of that acquisition early in the third quarter period of fiscal 2011. The second business acquisition in the Accessories Segment occurred at the end of the third quarter of fiscal 2011, so no comparable results for fiscal 2011 for that acquisition were included in the comparative segment results for the third quarter of fiscal 2011 and the first nine-month period of fiscal 2011.