SEGMENTS

3 Months Ended

Oct. 31, 2013

SEGMENTS

SEGMENTS

9. SEGMENTS

        We report our operations under three business segments: Fine Jewelry, Kiosk Jewelry, and All Other (see Note 1). All corresponding items of segment information in prior periods have been presented consistently. Management's expectation is that overall economics of each of our major brands within each reportable segment will be similar over time.

        We use earnings before unallocated corporate overhead, interest and taxes but include an internal charge for inventory carrying cost to evaluate segment profitability. Unallocated costs before income taxes include corporate employee-related costs, administrative costs, information technology costs, corporate facilities costs and depreciation and amortization. Income tax information by segment is not included as taxes are calculated at a company-wide level and not allocated to each segment.

	Three Months Ended October 31,
Selected Financial Data by Segment	2013			2012
	(amounts in thousands)
Revenues:
Fine Jewelry(a)	$	313,699		$	306,960
Kiosk		46,199			47,818
All Other		2,717			2,690
Total revenues	$	362,615		$	357,468
Depreciation and amortization:
Fine Jewelry	$	5,059		$	5,521
Kiosk		577			739
All Other		—			—
Unallocated		2,025			2,386
Total depreciation and amortization	$	7,661		$	8,646
Operating loss:
Fine Jewelry	$	(12,001	)	$	(16,702	)
Kiosk		(2,555	)		(1,749	)
All Other		1,192			812
Unallocated(b)		(8,668	)		(5,364	)
Total operating loss	$	(22,032	)	$	(23,003	)

(a)

Includes $62.9 million and $63.0 million for the three months ended October 31, 2013 and 2012, respectively, related to foreign operations.

(b)

Includes credits of $15.8 million and $15.1 million for the three months ended October 31, 2013 and 2012, respectively, to offset internal carrying costs charged to the segments. The three months ended October 31, 2012 also includes a gain totaling $1.9 million related to the De Beers settlement.