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Business Segment Information
 3 Months Ended
May 04, 2019
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

During the three months ended May 4, 2019 and May 5, 2018, 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 and catalog operations; (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, Trask e-commerce operations 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; and other brands.

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. As a result, the Company's segment information has been adjusted to exclude discontinued operations for the three months ended May 5, 2018.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1, under Item 8 in the Company's Annual Report on Form10-K for the fiscal year ended February 2, 2019).

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, including the former Lids Sports Group headquarters building, 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 10
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
May 4, 2019
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In Thousands
 
 
 
 
 
Sales
$
323,972

 
$
76,844

 
$
74,734

 
$
20,086

 
$
18

 
$
495,654

Intercompany sales
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Net sales to external customers
$
323,972

 
$
76,844

 
$
74,734

 
$
20,083

 
$
18

 
$
495,651

Segment operating income (loss)
$
18,976

 
$
(5,428
)
 
$
5,106

 
$
429

 
$
(10,730
)
 
$
8,353

Asset impairments and other(1)
—

 
—

 
—

 
—

 
731

 
731

Operating income (loss)
18,976

 
(5,428
)
 
5,106

 
429

 
(9,999
)
 
9,084

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
86

 
86

Interest expense
—

 
—

 
—

 
—

 
(848
)
 
(848
)
Interest income
—

 
—

 
—

 
—

 
1,014

 
1,014

Earnings (loss) from continuing
operations before income taxes
$
18,976

 
$
(5,428
)
 
$
5,106

 
$
429

 
$
(9,747
)
 
$
9,336

Total assets(2)
$
934,349

 
$
388,989

—

$
209,735

 
$
20,918

 
$
262,082

 
$
1,816,073

Depreciation and amortization(3)
7,320

 
3,099

 
1,626

 
148

 
610

 
12,803

Capital expenditures
3,967

 
1,673

 
862

 
62

 
177

 
6,741


(1)Asset impairments and other includes a $(1.0) million gain for lease terminations in Schuh Group, partially offset by a $0.3 million charge for asset impairments in Schuh Group.

(2)Total assets for the Schuh Group and Journeys Group include $83.9 million and $9.6 million of goodwill, respectively. Goodwill for the Schuh Group increased by $0.6 million and goodwill for Journeys Group decreased by $0.2 million from February 2, 2019, due to foreign currency translation adjustments. Of the Company's $271.3 million of property and equipment, $44.5 million and $12.0 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $12.8 million in depreciation expense for the three months ended May 4, 2019.






















Note 10
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
May 5, 2018
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In Thousands
 
 
 
 
 
Sales
$
306,142

 
80,266

 
$
75,684

 
$
24,066

 
$
62

 
$
486,220

Intercompany sales
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Net sales to external customers
$
306,142

 
$
80,266

 
$
75,684

 
$
24,065

 
$
62

 
$
486,219

Segment operating income (loss)
$
12,992

 
$
(5,640
)
 
$
4,867

 
$
276

 
$
(7,665
)
 
$
4,830

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(1,118
)
 
(1,118
)
Operating income (loss)
12,992

 
(5,640
)
 
4,867

 
276

 
(8,783
)
 
3,712

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
8

 
8

Interest expense
—

 
—

 
—

 
—

 
(1,047
)
 
(1,047
)
Interest income
—

 
—

 
—

 
—

 
19

 
19

Earnings (loss) from continuing
operations before income taxes
$
12,992

 
$
(5,640
)
 
$
4,867

 
$
276

 
$
(9,803
)
 
$
2,692

Total assets ongoing operations
$
446,001

 
243,921

 
$
119,854

 
$
29,520

 
$
148,851

 
$
988,147

Assets from discontinued operations
 
 
 
 
 
 
 
 
 
 
329,278

Total assets (2)
 
 
 
 
 
 
 
 
 
 
$
1,317,425

Depreciation and amortization(3)
6,795

 
3,927

 
1,568

 
155

 
804

 
13,249

Capital expenditures(4)
10,543

 
2,907

 
1,470

 
60

 
63

 
15,043


(1)Asset impairments and other includes a $1.0 million charge for asset impairments, which includes $0.2 million for Journeys Group and $0.8 million for Schuh Group, and a $0.2 million charge for legal and other matters, partially offset by a gain of $(0.1) million related to Hurricane Maria.

(2)Total assets for the Schuh Group and Journeys Group include $86.1 million and $10.0 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased by $3.9 million and $0.4 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $296.1 million of property and equipment, $54.8 million and $14.3 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $13.2 million in depreciation expense for the three months ended May 5, 2018. Excludes $6.4 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4) Excludes $4.5 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.