Segment Reporting

12 Months Ended

Jan. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two operating segments, which are also its reportable segments: Direct and Indirect. These operating segments are components of the Company for which separate financial information is available and for which operating results are evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing the performance of the segments.

The Direct segment includes the Company’s full-line and factory outlet stores, the Company’s website, verabradley.com, direct-to-consumer eBay sales, and the annual outlet sale. Revenues generated through this segment are driven through the sale of Company-branded products from Vera Bradley to end consumers. The Company exited its direct Japan operations in the third quarter of fiscal 2015. Direct segment results for the current and prior periods presented are reported on a continuing operations basis unless otherwise stated. Discontinued operations are described further in Note 14.

The Indirect segment represents revenues generated through the distribution of Company-branded products to specialty retailers representing approximately 2,600 locations, substantially all of which are located in the United States, as well as select department stores, national accounts, third party e-commerce sites, the Company's wholesale business in Japan, and third-party inventory liquidators. No customer accounted for 10% or more of the Company’s net revenues during fiscal years 2016, 2015 and 2014.

Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, and various other corporate-level-activity-related expenses. All intercompany-related activities are eliminated in consolidation and are excluded from the segment reporting.

Company management evaluates segment operating results based on several indicators. The primary or key performance indicators for each segment are net revenues and operating income. The table below represents key financial information for each of the Company’s operating and reportable segments, Direct and Indirect.

The accounting policies of the segments are the same as those described in Note 2. The Company does not report depreciation or amortization expense, total assets, or capital expenditures by segment as such information is neither used by management nor accounted for at the segment level.

Net revenues and operating income information for the Company’s reportable segments consisted of the following (in thousands):

	Fiscal Year Ended
	January 30, 2016			January 31, 2015			February 1, 2014
Segment net revenues:
Direct	$	351,286		$	335,602		$	321,092
Indirect	151,312			173,388			209,804
Total	$	502,598		$	508,990		$	530,896
Segment operating income:
Direct	$	74,114		$	74,099		$	81,194
Indirect	60,409			66,213			84,130
Total	$	134,523		$	140,312		$	165,324
Reconciliation:
Segment operating income	$	134,523		$	140,312		$	165,324
Less:
Unallocated corporate expenses	(87,801		)	(76,242		)	(69,567		)
Operating income	$	46,722		$	64,070		$	95,757

Sales outside of the United States were excluded from the Direct segment, for all periods presented, due to the Japan operations being discontinued in the third quarter of fiscal 2015.

Revenues to external customers for Vera Bradley brand products are attributable to sales of bags, accessories, travel and home items. Other revenues to external customers primarily include revenues from our apparel/footwear, stationery, merchandising, freight, licensing, and gift card breakage.

Net revenues by product categories are as follows (in thousands):

	Fiscal Year Ended
	January 30, 2016		January 31, 2015		February 1, 2014
Net revenues:
Bags	$	215,835	$	230,978	$	223,699
Accessories	112,066		116,031		133,605
Travel	125,279		109,112		116,251
Home	22,729		17,721		20,270
Other	26,689		35,148		37,071
Total	$	502,598	$	508,990	$	530,896

As of January 30, 2016 and January 31, 2015, substantially all of the Company’s long-lived assets were located in the United States.