Segment and Geographic Information | NOTE 4 – SEGMENT AND GEOGRAPHIC INFORMATION The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance. The Company conducts its business in two operating segments: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of watches of quality luxury brands and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Retail segment includes the Company’s retail outlet locations. The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all other Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 23.4%, 10.0%, 8.5% and 5.4%, respectively, of the Company’s total net sales for the three months ended April 30, 2016. For the three months ended April 30, 2015, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.6%, 11.0%, 8.7% and 8.1%, respectively, of the Company’s total net sales. Substantially all of the Company’s International assets are located in Switzerland and Hong Kong. Operating Segment Data for the Three Months Ended April 30, 2016 and 2015 (in thousands): Net Sales 2016 2015 Wholesale: Luxury brands category $ 42,036 $ 44,903 Licensed brands category 56,840 60,842 After-sales service and all other 3,082 3,852 Total Wholesale 101,958 109,597 Retail 12,105 10,864 Consolidated total $ 114,063 $ 120,461 Operating Income 2016 2015 Wholesale $ 4,569 $ 5,925 Retail 809 950 Consolidated total $ 5,378 $ 6,875 Total Assets April 30, 2016 January 31, 2016 April 30, 2015 Wholesale $ 570,014 $ 562,547 $ 563,947 Retail 24,048 22,623 20,590 Consolidated total $ 594,062 $ 585,170 $ 584,537 Geographic Location Data for the Three Months Ended April 30, 2016 and 2015 (in thousands): Net Sales Operating (Loss) / Income 2016 2015 2016 2015 United States (1) $ 60,057 $ 64,584 $ (1,393 ) $ 2,429 International (2) 54,006 55,877 6,771 4,446 Consolidated total $ 114,063 $ 120,461 $ 5,378 $ 6,875 United States and International net sales are net of intercompany sales of $83.5 million and $81.5 million for the three months ended April 30, 2016 and 2015, respectively. (1) The United States operating loss included $8.8 million and operating income included $7.1 million of unallocated corporate expenses for the three months ended April 30, 2016 and 2015, respectively. (2) The International operating income included $7.0 million and $8.8 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2016 and 2015, respectively. Total Assets April 30, 2016 January 31, 2016 April 30, 2015 United States $ 209,325 $ 215,053 $ 214,062 International 384,737 370,117 370,475 Consolidated total $ 594,062 $ 585,170 $ 584,537 Property, Plant and Equipment, Net April 30, 2016 January 31, 2016 April 30, 2015 United States $ 22,819 $ 24,517 $ 25,072 International 14,428 14,036 19,282 Consolidated total $ 37,247 $ 38,553 $ 44,354 |