v2.4.0.6
Segment Reporting
 3 Months Ended
Sep. 29, 2012
Segment Reporting

13. Segment Reporting

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 active fashion footwear; 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.

The Company operates with a reporting structure which included a separate Business Unit President for each operating unit, with each President reporting to the Chief Executive Officer (“CEO”) of R.G. Barry Corporation. Each 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 directly attributable 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.

 

First quarter

Fiscal 2013

    Footwear      Accessories      Unallocated
Corporate		     Total  

Net sales

    $ 38,272       $ 8,961       $ —        $ 47,233   

Gross profit

      15,842         5,075         —          20,917   

Operating profit

      10,841         1,801         (2,715 )      9,927   

First Quarter

Fiscal 2012

    Footwear      Accessories      Unallocated
Corporate		     Total  

Net sales

    $ 42,175       $ 8,055       $ —        $ 50,230   

Gross profit

      17,644         4,609         —          22,253   

Operating profit

      12,395         1,789         (2,811 )      11,373   

As of September 29, 2012

    Footwear      Accessories      Unallocated
Corporate		     Total  

Total assets

    $ 60,063       $ 50,719       $ 20,531      $ 131,313   

As of June 30, 2012

    Footwear      Accessories      Unallocated
Corporate		     Total  

Total assets

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

Unallocated corporate assets comprised corporate assets including building, software, furniture and equipment, investments, deferred tax assets, cash surrender assets associated with insurance policies and other nominal intangible or deposit type assets held by the Company. Changes between Footwear segment and unallocated assets from the end of fiscal 2012 to the end of the first quarter of fiscal 2013 reflect the seasonal nature of the business and related working capital requirements in that period.