Segment Information

12 Months Ended

Dec. 28, 2013

Segment Information

6. Segment Information

Our Company has two reportable segments: Team Sports and Action Sports. The majority of Easton’s activity is reflected in our Team Sports segment which primarily consists of football, baseball, softball, ice hockey and other team sports products including apparel and reconditioning services related to certain of these products. Our Action Sports segment consists primarily of helmets, equipment, components, footwear, apparel and accessories for cycling, snowsports and powersports. Our Company evaluates segment performance primarily based on income from operations excluding equity compensation expense, management expenses, restructuring and other infrequent expenses, amortization of intangibles and corporate expenses. Our selling, general and administrative expenses, excluding corporate expenses, are charged to each segment based on where the expenses are incurred. Segment operating income as presented by our Company may not be comparable to similarly titled measures used by other companies. As a result, the components of operating income for one segment may not be comparable to another segment.

Segment results for 2013, 2012 and 2011 are as follows:

	Team Sports		Action Sports		Consolidated
Year ended December 28, 2013:
Net sales	$	453,728	$	326,704	$	780,432
Income from operations		55,423		33,803		89,226
Depreciation		12,103		8,889		20,992
Capital expenditures		11,562		22,660		34,222
Year ended December 29, 2012:
Net sales	$	480,281	$	346,871	$	827,152
Income from operations		52,435		46,018		98,453
Depreciation		13,092		8,501		21,593
Capital expenditures		11,708		10,461		22,169
Year ended December 31,2011:
Net sales	$	472,338	$	362,572	$	834,910
Income from operations		54,547		54,304		108,851
Depreciation		11,414		7,816		19,230
Capital expenditures		14,007		9,791		23,798

	Team Sports		Action Sports		Consolidated
Assets
December 28, 2013	$	585,907	$	372,036	$	957,943
December 29, 2012		649,692		342,542		992,234

A reconciliation from the segment information to the Consolidated Statements of Comprehensive (Loss) Income is set forth below:

	Fiscal Year
	2013			2012			2011
Segment income from operations	$	89,226		$	98,453		$	108,851
Equity compensation expense		(9,268	)		(5,048	)		(3,507	)
Amortization of intangibles		(7,881	)		(10,394	)		(9,612	)
Corporate expenses		(46,369	)		(40,695	)		(33,135	)
Consolidated income from operations	$	25,708		$	42,316		$	62,597

The following table summarizes net sales by product line. The categorization of our Company’s products into product lines is based on the characteristics of the individual products and is subject to judgment in some cases and can vary over time. In instances where products move between product lines, we reclassify the amounts in the product lines for all prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within each product line.

	2013					2012					2011
	Net Sales		% of Net Sales			Net Sales		% of Net Sales			Net Sales		% of Net Sales
Team Sports
Baseball and softball products	$	173,935		22.3	%	$	161,640		19.6	%	$	175,826		21.1	%
Ice hockey products		73,649		9.4			109,965		13.3			112,116		13.4
Football products and reconditioning		126,450		16.2			136,417		16.5			121,075		14.5
Other products and licensing		79,694		10.2			72,259		8.7			63,321		7.6
	$	453,728		58.1	%	$	480,281		58.1	%	$	472,338		56.6	%
Action Sports
Cycling helmets	$	131,745		16.9	%	$	134,291		16.2	%	$	136,592		16.4	%
Snowsports products		33,667		4.3			31,317		3.8			48,772		5.8
Powersports products		22,570		2.9			16,075		1.9			10,814		1.3
Premium cycling components, accessories, footwear and apparel		58,065		7.5			71,766		8.7			64,604		7.7
Fitness accessories		988		0.1			12,296		1.5			18,823		2.3
Cycling accessories		79,669		10.2			81,126		9.8			82,967		9.9
	$	326,704		41.9	%	$	346,871		41.9	%	$	362,572		43.4	%
Total Net Sales	$	780,432		100.0	%	$	827,152		100.0	%	$	834,910		100.0	%

Net sales by customer location for 2013, 2012 and 2011 were as follows:

	2013		2012		2011
North America	$	667,540	$	704,367	$	712,007
Europe		84,650		96,358		100,254
Other		28,242		26,427		22,649
	$	780,432	$	827,152	$	834,910

Property, plant and equipment, net by location at December 28, 2013 and December 29, 2012 were as follows:

	2013		2012
North America	$	55,522	$	43,591
Other		13,763		11,958
	$	69,285	$	55,549

Total assets by location at December 28, 2013 and December 29, 2012 were as follows:

	2013		2012
North America	$	921,659	$	961,871
Other		36,284		30,363
	$	957,943	$	992,234