Segment Reporting

6 Months Ended

Jul. 30, 2011

Segment Reporting

Segment Reporting

Note 11 — Segment Reporting

The Company has four reporting segments: (i) Payless Domestic, (ii) Payless International, (iii) PLG Wholesale and (iv) PLG Retail. The Company has defined its reporting segments as follows:

(i)	The Payless Domestic reporting segment is comprised primarily of domestic retail stores under the Payless ShoeSource name, the Company's sourcing unit and Collective Licensing.
(ii)	The Payless International reporting segment is comprised of international retail stores under the Payless ShoeSource name in Canada, the South American Region, the Central American Region, Puerto Rico, and the U.S. Virgin Islands, as well as franchising arrangements under the Payless ShoeSource name.
(iii)	The PLG Wholesale reporting segment consists of PLG's global wholesale operations.
(iv)	The PLG Retail reporting segment consists of PLG's owned Stride Rite children's stores, PLG's outlet stores, store-in-stores at select Macy's Department Stores and Sperry Top-Sider retail stores.

Payless International's operations in the Central American and South American Regions are operated as joint ventures in which the Company maintains a 60% ownership interest. Noncontrolling interest represents the Company's joint venture partners' share of net earnings or losses on applicable international operations. Certain management costs for services performed by Payless Domestic and certain royalty fees and sourcing fees charged by Payless Domestic are allocated to the Payless International segment. These total costs and fees amounted to $10.1 million and $9.1 million during the thirteen weeks ended July 30, 2011 and July 31, 2010, respectively, and $18.9 million and $17.9 million during the twenty-six weeks ended July 30, 2011 and July 31, 2010, respectively. The reporting period for operations in the Central and South American Regions use a December 31 year-end. The effect of this one-month lag on the Company's financial position and results of operations is not significant. All intercompany amounts have been eliminated. Information on the Company's reporting segments is as follows:

	13 Weeks Ended						26 Weeks Ended
	July 30,			July 31,			July 30,			July 31,
(dollars in millions)	2011			2010			2011			2010
Reporting segment net sales:
Payless Domestic	$	494.5		$	508.0		$	992.9		$	1,054.6
Payless International		117.2			109.8			214.7			209.8
PLG Wholesale		217.7			174.7			430.2			348.1
PLG Retail		53.0			48.8			113.6			107.6
Total net sales	$	882.4		$	841.3		$	1,751.4		$	1,720.1
Reporting segment operating (loss) profit:
Payless Domestic	$	(63.8	)	$	6.8		$	(50.8	)	$	56.1
Payless International		8.6			11.6			11.6			18.7
PLG Wholesale		(0.3	)		22.9			25.0			46.2
PLG Retail		(6.9	)		(4.6	)		(5.8	)		(2.7	)
Total operating profit	$	(62.4	)	$	36.7		$	(20.0	)	$	118.3

	July 30,		July 31,		January 29,
(dollars in millions)	2011		2010		2011
Reporting segment total assets:
Payless Domestic	$	973.2	$	1,120.2	$	1,039.3
Payless International		218.7		215.5		258.4
PLG Wholesale		931.4		883.9		905.3
PLG Retail		75.0		76.2		65.5
Total assets	$	2,198.3	$	2,295.8	$	2,268.5