Business Segment Information

3 Months Ended

May 03, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

During the three months ended May 3, 2014 and May 4, 2013, 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 (see Note 1).

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.

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.

Note 9

Business Segment Information, Continued

Three Months Ended
May 3, 2014	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	262,123	$	81,276		$	189,335		$	63,397	$	32,685		$	301		$	629,117
Intercompany Sales	—		—			(69		)	—		(223		)	—			(292		)
Net sales to external customers	$	262,123	$	81,276		$	189,266		$	63,397	$	32,462		$	301		$	628,825
Segment operating income (loss)	$	19,677	$	(5,141	)	$	8,137		$	4,496	$	3,521		$	(8,083	)	$	22,607
Asset Impairments and other*	—		—			—			—		—			1,111			1,111
Earnings (loss) from operations	19,677		(5,141		)	8,137			4,496		3,521			(6,972		)	23,718
Interest expense	—		—			—			—		—			(733		)	(733		)
Interest income	—		—			—			—		—			32			32
Earnings (loss) from continuing operations before income taxes	$	19,677	$	(5,141	)	$	8,137		$	4,496	$	3,521		$	(7,673	)	$	23,017
Total assets**	$	295,135	$	277,226		$	593,075		$	99,062	$	48,920		$	169,489		$	1,482,907
Depreciation and amortization	4,761		3,506			7,082			1,081		132			798			17,360
Capital expenditures	5,870		4,834			5,089			2,536		246			1,235			19,810

*Asset Impairments and other includes a $(3.2) million gain on a lease termination, partially offset by a $0.8 million charge for asset impairments, which is in the Lids Sports Group and a $1.2 million charge for network intrusion expenses.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $182.5 million, $107.4 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill increased by $2.5 million from February 1, 2014 due to foreign currency translation adjustment.

Note 9

Business Segment Information, Continued

Three Months Ended
May 4, 2013	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	257,143	68,323			$	178,108		$	58,425	$	29,441		$	237		$	591,677
Intercompany Sales	—		—			(203		)	—		(86		)	—			(289		)
Net sales to external customers	$	257,143	$	68,323		$	177,905		$	58,425	$	29,355		$	237		$	591,388
Segment operating income (loss)	$	22,213	$	(4,643	)	$	10,796		$	3,848	$	2,921		$	(8,082	)	$	27,053
Asset Impairments and other*	—		—			—			—		—			(1,329		)	(1,329		)
Earnings (loss) from operations	22,213		(4,643		)	10,796			3,848		2,921			(9,411		)	25,724
Interest expense	—		—			—			—		—			(1,061		)	(1,061		)
Interest income	—		—			—			—		—			22			22
Earnings (loss) from continuing operations before income taxes	$	22,213	$	(4,643	)	$	10,796		$	3,848	$	2,921		$	(10,450	)	$	24,685
Total assets**	$	265,975	230,003			$	538,178		$	89,629	$	38,537		$	139,752		$	1,302,074
Depreciation and amortization	4,950		2,709			6,972			980		126			692			16,429
Capital expenditures	5,039		2,792			7,275			1,950		298			427			17,781

*Asset Impairments and other includes a $1.2 million charge for assets impairments, of which $0.9 million is in the Lids Sports Group and $0.3 million is in the Journeys Group, and a $0.1 million charge for network intrusion expenses.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $172.3 million, $99.0 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill decreased by $1.7 million from February 2, 2013 due to foreign currency translation adjustment.