Business Segment Information

12 Months Ended

Feb. 01, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

During Fiscal 2014, the Company operated five reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz, Shi by Journeys and Underground by Journeys retail footwear chains, catalog and e-commerce operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Lids Sports Group, comprised primarily of the Lids, Hat World and Hat Shack retail headwear stores, the Lids Locker Room and Lids Clubhouse fan shops (operated under various trade names), licensed team merchandise departments in Macy's department stores operated under the name of Locker Room by Lids under a license agreement with Macy's, the Lids Team Sports business and certain e-commerce operations; (iv) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, catalog and e-commerce operations and wholesale distribution of products under the Johnston & Murphy and Trask brands; and (v) Licensed Brands, comprised of Dockers^® Footwear, sourced and marketed under a license from Levi Strauss &

Company; SureGrip^® Footwear, occupational footwear primarily sold directly to consumers; and other brands.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The Company's reportable segments are based on management's organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group, Schuh Group and Lids Sports Group sell primarily branded products from other companies while Johnston & Murphy Group and Licensed Brands sell primarily the Company's owned and licensed

brands.

Note 14

Business Segment Information, Continued

Corporate assets include cash, domestic prepaid rent expense, prepaid income taxes, deferred income taxes, deferred note expense and corporate fixed assets. The Company charges allocated retail costs of distribution to each segment. The Company does not allocate certain costs to each segment in order

to make decisions and assess performance. These costs include corporate overhead, interest expense, interest income, asset impairment charges and other, including major litigation and major lease terminations.

Fiscal 2014
	Journeys Group			Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	1,082,241		$	364,732	$	821,779		$	245,941	$	109,989		$	1,282		$	2,625,964
Intercompany sales	—		—	—		(783		)	—		(209		)	—			(992		)
Net sales to external customers	$	1,082,241		$	364,732	$	820,996		$	245,941	$	109,780		$	1,282		$	2,624,972
Segment operating income (loss)	$	97,377		$	3,063	$	63,748		$	17,638	$	10,614		$	(27,664	)	$	164,776
Asset Impairments and other*	—			—		—			—		—			(1,341		)	(1,341		)
Earnings (loss) from operations	97,377			3,063		63,748			17,638		10,614			(29,005		)	163,435
Interest expense	—			—		—			—		—			(4,641		)	(4,641		)
Interest income	—			—		—			—		—			66			66
Earnings (loss) from continuing operations before income taxes	$	97,377		$	3,063	$	63,748		$	17,638	$	10,614		$	(33,580	)	$	158,860
Total assets**	$	298,105		$	268,514	$	574,664		$	97,532	$	50,955		$	149,514		$	1,439,284
Depreciation and amortization	19,400			11,339		28,345			4,002		468			3,581			67,135
Capital expenditures	20,223			29,673		35,193			9,178		1,452			2,737			98,456

 *Asset Impairments and other includes a $2.3 million charge for asset impairments, of which $1.4 million is in the Lids Sports Group, $0.6 million is in the Journeys Group and $0.3 million is in the Johnston & Murphy Group, a $3.3 million charge for network intrusion costs, a $2.4 million charge for other legal matters and a $1.6 million charge for a lease termination partially offset by a gain of $(8.3) million for the lease termination of a New York City Journeys store.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $182.4 million, $104.9 million and $0.8 million of goodwill, respectively. Goodwill for Lids Sports Group includes $10.1 million of additions in Fiscal 2014 resulting from small acquisitions and the Schuh Group goodwill increased by $4.2 million due to foreign currency translation adjustment.

Note 14

Business Segment Information, Continued

Fiscal 2013
	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group			Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	1,111,490	370,480		$	793,016		$	221,870		$	108,808		$	1,234		$	2,606,898
Intercompany sales	—		—		(1,761		)	(10		)	(310		)	—			(2,081		)
Net sales to external customers	$	1,111,490	$	370,480	$	791,255		$	221,860		$	108,498		$	1,234		$	2,604,817
Segment operating income (loss)	$	109,953	$	11,209	$	82,867		$	15,696		$	10,078		$	(42,903	)	$	186,900
Asset Impairments and other*	—		—		—			—			—			(17,037		)	(17,037		)
Earnings (loss) from operations	109,953		11,209		82,867			15,696			10,078			(59,940		)	169,863
Interest expense	—		—		—			—			—			(5,126		)	(5,126		)
Interest income	—		—		—			—			—			95			95
Earnings (loss) from continuing operations before income taxes	$	109,953	$	11,209	$	82,867		$	15,696		$	10,078		$	(64,971	)	$	164,832
Total assets**	$	280,396	231,323		$	519,006		$	89,505		$	43,212		$	162,630		$	1,326,072
Depreciation and amortization	20,190		10,040		26,892			3,738			366			2,471			63,697
Capital expenditures	21,852		16,873		21,448			6,680			1,255			3,629			71,737

*Asset Impairments and other includes a $1.4 million charge for asset impairments, of which $0.9 million is in the Lids Sports Group, $0.4 million is in the Journeys Group, and $0.1 million is in the Johnston & Murphy Group, a $15.6 million charge for network intrusion costs and a $0.1 million charge for other legal matters.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $172.3 million, $100.7 million and $0.8 million of goodwill, respectively. Goodwill for Lids Sports Group includes $13.2 million of additions in Fiscal 2013 resulting from small acquisitions and the Schuh Group goodwill increased by $0.8 million due to foreign currency translation adjustment.

Note 14

Business Segment Information, Continued

Fiscal 2012
	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	1,020,116	$	212,262	$	759,671		$	201,725	$	97,721		$	1,116		$	2,292,611
Intercompany sales	—		—		(347		)	—		(277		)	—			(624		)
Net sales to external customers	$	1,020,116	$	212,262	$	759,324		$	201,725	$	97,444		$	1,116		$	2,291,987
Segment operating income (loss)	$	89,045	$	11,711	$	86,037		$	13,743	$	9,451		$	(45,825	)	$	164,162
Asset Impairments and other*	—		—		—			—		—			(2,677		)	(2,677		)
Earnings (loss) from operations	89,045		11,711		86,037			13,743		9,451			(48,502		)	161,485
Interest expense	—		—		—			—		—			(5,157		)	(5,157		)
Interest income	—		—		—			—		—			65			65
Earnings (loss) from continuing operations before income taxes	$	89,045	$	11,711	$	86,037		$	13,743	$	9,451		$	(53,594	)	$	156,393
Total assets**	$	259,331	$	205,313	$	489,512		$	79,321	$	34,974		$	161,310		$	1,229,761
Depreciation and amortization	20,742		4,602		22,541			3,538		285			2,029			53,737
Capital expenditures	11,125		7,406		24,497			1,894		718			3,816			49,456

*Asset Impairments and other includes a $1.1 million charge for asset impairments, of which $0.6 million is in the Journeys Group, $0.3 million is in the Lids Sports Group and $0.2 million is in the Johnston & Murphy Group, a $0.7 million charge for network intrusion costs and a $0.9 million charge for other legal matters.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $159.1 million, $99.9 million and $0.8 million of goodwill, respectively. Goodwill for the Lids Sports Group includes $6.5 million of additions in Fiscal 2012 resulting from small acquisitions and the Schuh Group goodwill is due to the acquisition of Schuh in the second quarter of Fiscal 2012 of $102.9 million which has been decreased by $3.0 million due to foreign currency translation adjustment.