Segment Information and Geographic Information

12 Months Ended

Feb. 29, 2016

Segment Reporting [Abstract]

Segment Information and Geographic Information

(13) Segment Information and Geographic Information

The Company operates in two segments – the Print Segment and the Apparel Segment.

The Print Segment, which represented 68% of the Company’s consolidated net sales for fiscal year 2016, is in the business of manufacturing, designing, and selling business forms and other printed business products primarily to distributors located in the United States. The Print Segment operates 57 manufacturing plants throughout the United States in 21 strategically located states. Approximately 96% of the business products manufactured by the Print Segment are custom and semi-custom products, constructed in a wide variety of sizes, colors, number of parts and quantities on an individual job basis depending upon the customers’ specifications.

The products sold include snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive products in short, medium and long runs under the following labels: Ennis^®, Royal Business Forms^®, Block Graphics^®, Specialized Printed Forms^®, 360º Custom Labels^SM, ColorWorx^®, Enfusion^®, Uncompromised Check Solutions^®, VersaSeal^®, Witt Printing^®, B&D Litho^®, Genforms^®, PrintGraphics^SM, Calibrated Forms^®, PrintXcel^SM, Printegra^®, Curtis Business Forms^SM, Falcon Business Forms^SM, Forms Manufacturers^SM, Mutual Graphics^SM, TRI-C Business Forms^SM and Hoosier Data Forms^®. The Print Segment also sells the Adams McClure^® brand (which provides Point of Purchase advertising for large franchise and fast food chains as well as kitting and fulfillment); the Admore^® and Folder Express^® brands (which provide presentation folders and document folders); Ennis Tag & Label^SM (which provides custom printed high performance labels and custom and stock tags); Atlas Tag & Label^®, Kay Toledo Tag^SM, Special Service Partners^SM (SSP) (which provides custom and stock tags and labels); Trade Envelopes^® and Block Graphics^®, Wisco^® and National Imprint Corporation^® (which provide custom and imprinted envelopes) and Northstar^® and General Financial Supply^® (which provide financial and security documents).

The Print Segment sells predominantly through private printers and independent distributors. Northstar also sells direct to a small number of customers. Northstar has continued its focus with large banking organizations on a direct basis (where a distributor is not acceptable or available to the end-user) and has acquired several of the top 25 banks in the United States as customers and is actively working on other large banks within the top 25 tier of banks in the United States. Adams McClure sales are generally provided through advertising agencies. Assets in this segment increased in 2015 primarily as a result of the Company’s acquisition of Sovereign Business Forms and Kay Toledo.

The Apparel Segment, which accounted for 32% of the Company’s fiscal year 2016 consolidated net sales, consists of Alstyle Apparel. This group is primarily engaged in the production and sale of activewear including T-shirts, fleece goods, and other wearables. Alstyle sales are seasonal, with sales in the first and second quarters generally being the highest. Substantially all of the Apparel Segment sales are to customers in the United States.

Corporate information is included to reconcile segment data to the consolidated financial statements and includes assets and expenses related to the Company’s corporate headquarters and other administrative costs.

Segment data for the fiscal years ended 2016, 2015 and 2014 were as follows (in thousands):

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Fiscal year ended February 29, 2016:
Net sales	$	385,946	$	183,027	$	—		$	568,973
Depreciation		7,530		3,529		268			11,327
Amortization of identifiable intangibles		4,555		1,467		—			6,022
Impairment of trademarks		—		4,130		—			4,130
Segment earnings (loss) before income tax		65,379		9,430		(18,237	)		56,572
Segment assets		234,257		142,506		15,425			392,188
Capital expenditures		4,187		596		40			4,823

	Print		Apparel						Consolidated
	Segment		Segment			Corporate			Totals
Fiscal year ended February 28, 2015:
Net sales	$	380,379	$	199,861		$	—		$	580,240
Depreciation		6,510		3,727			268			10,505
Amortization of identifiable intangibles		4,312		1,467			—			5,779
Impairment of goodwill and trademarks		—		93,324			—			93,324
Segment earnings (loss) before income tax		66,374		(89,632	)		(15,875	)		(39,133	)
Segment assets		248,916		183,778			20,568			453,262
Capital expenditures		1,977		460			42			2,479
Fiscal year ended February 28, 2014:
Net sales	$	339,947	$	202,495		$	—		$	542,442
Depreciation		5,804		3,845			205			9,854
Amortization of identifiable intangibles		2,749		1,467			—			4,216
Impairment of goodwill and trademarks		—		24,226			—			24,226
Segment earnings (loss) before income tax		57,390		(9,467	)		(16,131	)		31,792
Segment assets		221,937		302,020			12,390			536,347
Capital expenditures		2,746		1,228			672			4,646

Identifiable long-lived assets by country include property, plant, and equipment, net of accumulated depreciation. The Company attributes revenues from external customers to individual geographic areas based on the country where the sale originated. Information about the Company’s operations in different geographic areas as of and for the fiscal years ended is as follows (in thousands):

	United States		Canada		Mexico		Total
2016
Net sales to unaffiliated customers
Print Segment	$	385,946	$	—	$	—	$	385,946
Apparel Segment		164,549		17,233		1,245		183,027
	$	550,495	$	17,233	$	1,245	$	568,973
Identifiable long-lived assets
Print Segment	$	164,272	$	—	$	—	$	164,272
Apparel Segment		14,730		53		30,430		45,213
Corporate		3,319		—		—		3,319
	$	182,321	$	53	$	30,430	$	212,804

	United States		Canada		Mexico		Total
2015
Net sales to unaffiliated customers
Print Segment	$	380,379	$	—	$	—	$	380,379
Apparel Segment		180,988		17,503		1,370		199,861
	$	561,367	$	17,503	$	1,370	$	580,240
Identifiable long-lived assets
Print Segment	$	172,074	$	—	$	—	$	172,074
Apparel Segment		20,359		54		37,556		57,969
Corporate		3,548		—		—		3,548
	$	195,981	$	54	$	37,556	$	233,591
2014
Net sales to unaffiliated customers
Print Segment	$	339,947	$	—	$	—	$	339,947
Apparel Segment		183,335		18,694		466		202,495
	$	523,282	$	18,694	$	466	$	542,442
Identifiable long-lived assets
Print Segment	$	155,773	$	—	$	—	$	155,773
Apparel Segment		115,204		40		43,757		159,001
Corporate		3,773		—		—		3,773
	$	274,750	$	40	$	43,757	$	318,547