18. SEGMENT INFORMATION

The Company has two reportable segments: North American wholesale operations (“wholesale”) and North American retail operations (“retail”). The chief operating decision maker, the Company’s Chief Executive Officer, evaluates the performance of the Company’s segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. The “other” category in the table below includes the Company’s wholesale and retail operations in Australia, South Africa, Asia Pacific and Europe, which do not meet the criteria for separate reportable segment classification.

In the wholesale segment, shoes are marketed through more than 10,000 footwear, department and specialty stores, primarily in the United States and Canada. Licensing revenues are also included in the Company’s wholesale segment. The Company has licensing agreements with third parties who sell its branded apparel, accessories and specialty footwear in the United States, as well as its footwear in Mexico and certain markets overseas. In 2019 and 2018, there was no single customer with sales of 10% or more of the Company’s total sales.

In the retail segment, the Company operated eight brick and mortar retail stores and e-commerce businesses in the United States at December 31, 2019. Sales in retail outlets are made directly to the consumer by Company employees. These retail stores sell the Company’s branded footwear, primarily Florsheim, and accessories.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies. Summarized segment data for the years ended December 31, 2019 and 2018 was as follows:


	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2019
Product sales	$	239,091	$	25,231	$	36,653	$	300,975
Licensing revenues		3,036		—		—		3,036
Net sales		242,127		25,231		36,653		304,011
Depreciation		2,088		315		889		3,292
Earnings (loss) from operations		27,755		2,791		(3,506)		27,040
Total assets		250,266		11,783		34,868		296,917
Capital expenditures		6,902		20		470		7,392

2018
Product sales	$	230,831	$	22,683	$	42,330	$	295,844
Licensing revenues		2,531		—		—		2,531
Net sales		233,362		22,683		42,330		298,375
Depreciation		2,425		331		956		3,712
Earnings (loss) from operations		23,106		2,732		(379)		25,459
Total assets		239,119		4,440		26,485		270,044
Capital expenditures		648		76		686		1,410

All North American corporate office assets are included in the wholesale segment. Transactions between segments primarily consist of sales between the wholesale and retail segments. Intersegment sales are valued at the cost of inventory plus an estimated cost to ship the products. Intersegment sales have been eliminated and are excluded from net sales in the above table.

Geographic Segments

Financial information relating to the Company’s business by geographic area was as follows for the years ended December 31, 2019 and 2018:


	2019		2018
	(Dollars in thousands)
Net Sales
United States	$	245,073	$	234,782
Canada		22,285		21,263
Europe		6,223		7,849
Australia		22,459		26,038
Asia		5,085		5,442
South Africa		2,886		3,001
Total	$	304,011	$	298,375

Long-Lived Assets
United States	$	81,603	$	70,018
Other		16,972		6,490
	$	98,575	$	76,508

Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of property, plant and equipment (net), operating lease ROU assets, goodwill, trademarks, investment in real estate and amortizable intangible assets.