Segment Reporting and Geographic Information

12 Months Ended

Jan. 28, 2017

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information

12.Segment Reporting and Geographic Information

Authoritative guidance requires public companies to report financial and descriptive information about their reportable operating segments. The Company identifies reportable segments based on how management internally evaluates financial information, business activities and management responsibility.

As a result of the Hi-Tec acquisition, the Company’s reportable segments beginning Fiscal 2017 consist of Cherokee Global Brands and Hi-Tec, for which Cherokee Global Brand’s chief-operating decision maker internally evaluates operating performance and financial results. For the year ended January 30, 2016 the Company considered the business activities to constitute a single segment, the marketing and licensing of brand names and trademarks for apparel, footwear and accessories. Cherokee Global Brands’ marketing and licensing activities extend to brands which the Company owns and to brands owned by others. Cherokee Global Brands’ operating activities relating to owned and represented brands are identical and are performed by a single group of marketing professionals.

The following tables reconcile the segment activity to the consolidated statement of operations for the year ended January, 28, 2017 and the consolidated balance sheet as of January 28, 2017:

(amounts in thousands)	Cherokee Global Brands		Hi-Tec		Consolidated
Royalty revenues	$	32,798	$	1,224	$	34,022
Indirect product sales		—		6,599		6,599
Amortization of intangible assets		912		—		912
Other (expense) income , net		(873)		(397)		(1,270)
Income tax provision		3,222		36		3,258
Net loss	$	(3,839)	$	(4,088)	$	(7,927)
Goodwill		100		15,694		15,794
Total assets	$	67,955	$	98,061	$	166,016

Revenues by geographic area based upon the licensees’ country of domicile consisted of the following:

	Year Ended		Year Ended		Year Ended
	January 28,		January 30,		January 31,
(amounts in thousands)	2017		2016		2015
U.S. and Canada	$	22,638	$	24,615	$	24,397
Asia		4,457		3,792		3,564
Latin America		2,820		2,643		3,057
Africa		1,399		1,023		781
United Kingdom and Europe		837		837		1,636
All Others		1,871		1,744		1,533
Total	$	34,022	$	34,654	$	34,968

Long‑lived tangible assets have been located in the U.S., United Kingdom and Europe, Asia and Mexico during the three years ended January 28, 2017, with values of approximately $750,  $349,  $16 and $196, respectively, as of January 28, 2017, values of approximately $818,  $54,  $44 and $234, respectively, as of January 30, 2016, and values of approximately $794,  $0,  $72 and $299, respectively, as of January 31, 2015.