SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

17. 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 its segments based on earnings from operations and accordingly, 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. As of December 31, 2011, the Company had licensing agreements with third parties who sell its branded apparel, accessories and specialty footwear in the United States, as well as its footwear in Canada, Mexico and certain markets overseas. In 2011, there was no single customer with sales above 10% of the Company’s total sales. In 2010 and 2009, sales to the Company’s largest customer were 12% and 13%, respectively, of total sales.

In the retail segment, the Company operated 30 Company-owned stores in principal cities in the United States and an Internet business as of December 31, 2011. Sales in retail outlets are made directly to the consumer by Company employees. In addition to the sale of the Company’s brands of footwear in these retail outlets, other branded footwear and accessories are also sold in order to provide the consumer with as complete a selection as practically possible.

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, 2011, 2010 and 2009 was as follows:

	Wholesale		Retail			Other		Total
	(Dollars in thousands)
2011
Product sales	$	195,638	$	24,740		$	47,273	$	267,651
Licensing revenues		3,449		—			—		3,449
Net sales		199,087		24,740			47,273		271,100
Depreciation		1,677		565			349		2,591
Earnings from operations		15,673		1,554			5,970		23,197
Total assets		237,279		7,374			28,855		273,508
Capital expenditures		6,576		249			1,364		8,189
2010
Product sales	$	163,843	$	22,497		$	40,713	$	227,053
Licensing revenues		2,178		—			—		2,178
Net sales		166,021		22,497			40,713		229,231
Depreciation		1,614		682			404		2,700
Earnings from operations		15,742		(400	)		3,439		18,781
Total assets		189,844		7,572			26,019		223,435
Capital expenditures		298		54			1,158		1,510
2009
Product sales	$	165,991	$	22,033		$	34,599	$	222,623
Licensing revenues		2,682		—			—		2,682
Net sales		168,673		22,033			34,599		225,305
Depreciation		1,747		843			358		2,948
Earnings from operations		16,578		(1,508	)		1,710		16,780
Total assets		176,184		8,460			22,509		207,153
Capital expenditures		327		34			957		1,318

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 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, 2011, 2010 and 2009:

	2011		2010		2009
	(Dollars in thousands)
Net Sales:
United States	$	212,779	$	179,129	$	182,861
Canada		11,049		9,361		7,845
Europe		8,014		8,008		7,338
Australia		25,049		20,073		16,735
Asia		8,277		7,432		6,019
South Africa		5,932		5,228		4,507
Total	$	271,100	$	229,231	$	225,305
Long-Lived Assets:
United States	$	75,293	$	34,334	$	34,694
Other		5,116		4,089		3,046
	$	80,409	$	38,423	$	37,740

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), goodwill, trademarks and amortizable intangible assets.