XML 38 R23.htm IDEA: XBRL DOCUMENT v3.19.1
Business Segment Information
 12 Months Ended
Feb. 02, 2019
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

The Company completed the sale of Lids Sports Group on February 2, 2019. As a result of the sale, the Company met the requirements to report the results of Lids Sports Group as a discontinued operation. Certain corporate overhead costs and other allocated costs previously allocated to the Lids Sports Group business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations whereas bank fees and certain legal fees related to the Lids Sports Group business segment previously excluded from segment earnings were reclassified to discontinued operations. The costs of Lids Sports Group headquarters building, which was not included in the sale, was reclassified to corporate and other in segment earnings. In addition, the third quarter Fiscal 2018 goodwill impairment charge of $182.2 million and the third quarter Fiscal 2019 trademark impairment charge of $5.7 million related to the Lids Sports Group business segment, that were both previously excluded from the calculation of segment earnings, were reclassified to discontinued operations. As a result, the Company's segment information has been adjusted to exclude discontinued operations for all periods presented.

During Fiscal 2019, the Company operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce operations and catalog; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog and wholesale distribution of products under the Johnston & Murphy® and H.S. Trask® brands; and (iv) Licensed Brands, comprised of Dockers® Footwear, sourced and marketed under a license from Levi Strauss & Company; G. H. Bass Footwear operated under a license from G-III Apparel Group, Ltd., which was terminated in January 2018; 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 and Schuh 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, pension asset, deferred income taxes, deferred note expense on revolver debt and corporate fixed assets and miscellaneous investments. 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, bank fees, interest expense, interest income, asset impairment charges and other, including major litigation and major lease terminations.





Note 14
Business Segment Information, Continued

Fiscal 2019
 
 
 
 
 
 
 
 
 
 
 
 
Journeys
Group    
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated

In thousands
 
 
 
 
 
Sales
$
1,419,993

 
$
382,591

 
$
313,134

 
$
72,576

 
$
271

 
$
2,188,565

Intercompany sales
—


—

 
—

 
(12
)
 
—

 
(12
)
Net sales to external customers
$
1,419,993

 
$
382,591

 
$
313,134

 
$
72,564

 
$
271

 
$
2,188,553

Segment operating income (loss)
$
100,799

 
$
3,765

 
$
20,385

 
$
(488
)
 
$
(39,481
)
 
$
84,980

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(3,163
)
 
(3,163
)
Earnings from operations
100,799

 
3,765

 
20,385

 
(488
)
 
(42,644
)
 
81,817

Loss on early retirement of debt
—

 
—

 
—

 
—

 
(597
)
 
(597
)
Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
380

 
380

Interest expense
—

 
—

 
—

 
—

 
(4,115
)
 
(4,115
)
Interest income
—

 
—

 
—

 
—

 
774

 
774

Earnings from continuing
operations before income taxes
$
100,799

 
$
3,765

 
$
20,385

 
$
(488
)
 
$
(46,202
)
 
$
78,259

 
 
 
 
 
 
 
 
 
 
 
 
Total assets(2)
$
425,842

 
$
211,983

 
$
128,525

 
$
24,004

 
$
390,727

 
$
1,181,081

Depreciation and amortization(3)
28,121

 
14,193

 
6,517

 
637

 
2,693

 
52,161

Capital expenditures(4)
26,114

 
7,226

 
6,526

 
162

 
1,752

 
41,780


(1)Asset Impairments and other includes a $4.2 million charge for asset impairments, of which $2.4 million is in the Schuh Group, $1.6 million is in the Journeys Group and $0.2 million is in the Johnston & Murphy Group, a $0.3 million charge for legal and other matters and a $0.1 million charge for hurricane losses, partially offset by a $(1.4) million gain related to Hurricane Maria.

(2)Total assets for the Schuh Group and Journeys Group include $83.2 million and $9.8 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased $6.7 million and $0.6 million, respectively, from February 3, 2018 due to foreign currency translation adjustments. Of the Company's $277.4 million of long-lived assets, $45.9 million and $12.8 million relate to long-lived assets in the United Kingdom and Canada, respectively.


(3)Excludes $24.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4)Excludes $15.4 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.










Note 14
Business Segment Information, Continued

Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
Journeys
Group    
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
Sales
$
1,329,460

 
$
403,698

 
$
304,160

 
$
89,812

 
$
420

 
$
2,127,550

Intercompany sales
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Net sales to external customers
$
1,329,460

 
$
403,698

 
$
304,160

 
$
89,809

 
$
420

 
$
2,127,547

Segment operating income (loss)
$
74,114

 
$
20,104

 
$
19,367

 
$
(299
)
 
$
(31,141
)
 
$
82,145

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(7,773
)
 
(7,773
)
Earnings from operations
74,114

 
20,104

 
19,367

 
(299
)
 
(38,914
)
 
74,372

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
29

 
29

Interest expense
—

 
—

 
—

 
—

 
(5,420
)
 
(5,420
)
Interest income
—

 
—

 
—

 
—

 
8

 
8

Earnings from continuing
operations before income taxes
$
74,114

 
$
20,104

 
$
19,367

 
$
(299
)
 
$
(44,297
)
 
$
68,989

Total assets ongoing operations
$
443,066

 
$
239,479

 
$
127,178

 
$
32,331

 
$
156,919

 
$
998,973

Assets from discontinued operations
 
 
 
 
 
 
 
 
 
 
316,380

Total assets(2)
 
 
 
 
 
 
 
 
 
 
1,315,353

Depreciation and amortization(3)
26,490

 
13,769

 
6,418

 
688

 
4,168

 
51,533

Capital expenditures(4)
79,532

 
10,968

 
6,163

 
421

 
1,525

 
98,609


(1)Asset Impairments and other includes a $5.2 million charge for a licensing termination expense related to the Licensed Brands Group and a $1.7 million charge for asset impairments, of which $1.0 million is in the Schuh Group and $0.7 million is in the Journeys Group, and a $0.9 million charge for hurricane losses.

(2)Total assets for the Schuh Group and Journeys Group include $89.9 million and $10.4 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group increased $10.1 million and $0.6 million, respectively, from January 28, 2017 due to foreign currency translation adjustments. Of the Company's $298.5 million of long-lived assets, $57.5 million and $14.8 million relate to long-lived assets in the United Kingdom and Canada, respectively.

(3)Excludes $26.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4)Excludes $29.2 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.


Note 14
Business Segment Information, Continued
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
 
Journeys
Group    
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
Sales
$
1,251,646

 
$
372,872

 
$
289,324

 
$
107,210

 
$
617

 
$
2,021,669

Intercompany sales
—

 
—

 
—

 
(838
)
 
—

 
(838
)
Net sales to external customers
$
1,251,646

 
$
372,872

 
$
289,324

 
$
106,372

 
$
617

 
$
2,020,831

Segment operating income (loss)
$
85,270

 
$
20,530

 
$
19,330

 
$
4,498

 
$
(29,866
)
 
$
99,762

Asset impairments and other(1)
—

 
—

 
—

 
—

 
8,031

 
8,031

Earnings from operations
85,270

 
20,530

 
19,330

 
4,498

 
(21,835
)
 
107,793

Gain on sale of SureGrip Footwear
—

 
—

 
—

 
—

 
12,297

 
12,297

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
(2,085
)
 
(2,085
)
Interest expense
—

 
—

 
—

 
—

 
(5,294
)
 
(5,294
)
Interest income
—

 
—

 
—

 
—

 
47

 
47

Earnings from continuing
operations before income taxes
$
85,270

 
$
20,530

 
$
19,330

 
$
4,498

 
$
(16,870
)
 
$
112,758

Total assets ongoing operations
$
404,773

 
$
214,886

 
$
126,559

 
$
40,357

 
$
142,585

 
$
929,160

Assets from discontinued operations
 
 
 
 
 
 
 
 
 
 
511,839

Total assets(2)
 
 
 
 
 
 
 
 
 
 
1,440,999

Depreciation and amortization(3)
24,235

 
14,003

 
5,987

 
995

 
4,723

 
49,943

Capital expenditures(4)
50,259

 
11,236

 
9,221

 
760

 
3,449

 
74,925


(1)Asset Impairments and other includes an $(8.9) million gain for network intrusion expenses as a result of a litigation settlement and a $(0.5) million gain for other legal matters, partially offset by a $1.4 million charge for asset impairments, of which $0.8 million is in the Schuh Group and $0.5 million is in the Journeys Group.

(2)Total assets for the Schuh Group and Journeys Group include $79.8 million and $9.8 million of goodwill, respectively. Goodwill for Schuh Group decreased by $10.5 million from January 30, 2016 due to foreign currency translation adjustments. Goodwill for Journeys Group increased $0.4 million from January 30, 2016 due to foreign currency translation adjustments. Goodwill for Licensed Brands decreased $0.8 million from January 30, 2016 due to the sale of SureGrip Footwear in the fourth quarter of Fiscal 2017. Of the Company's $247.6 million of long-lived assets, $54.3 million and $13.5 million relate to long-lived assets in the United Kingdom and Canada, respectively.

(3)Excludes $25.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4)Excludes $19.0 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.