Note 10 - Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

10. Segment Information

The Company’s predominant business is the design, development and distribution of athletic footwear.  The Company has identified its footwear products business to be its only segment as substantially all of the Company’s revenues are from sales of footwear products.  The Company is organized into three geographic regions:  the United States, Europe, Middle East and Africa (“EMEA”) and Other International.  The Company’s Other International geographic region includes the Company’s operations in Asia.  Certain reclassifications have been made to the 2010 presentation to conform to the 2011 presentation.  The following tables summarize information by geographic region of the Company’s footwear segment (in thousands):

	Six Months Ended June 30,						Three Months Ended June 30,
	2011			2010			2011			2010
Revenues from unrelated entities (1):
United States	$	64,035		$	46,644		$	32,576		$	22,704
EMEA		42,746			39,548			19,261			12,390
Other International		31,381			26,509			13,705			11,737
Total revenues from unrelated entities	$	138,162		$	112,701		$	65,542		$	46,831
Inter-geographic revenues:
United States	$	2,715		$	2,444		$	1,388		$	1,133
EMEA		1,446			0			1,446			0
Other International		136			67			37			32
Total inter-geographic revenues	$	4,297		$	2,511		$	2,871		$	1,165
Total revenues:
United States	$	66,750		$	49,088		$	33,964		$	23,837
EMEA		44,192			39,548			20,707			12,390
Other International		31,517			26,576			13,742			11,769
Less inter-geographic revenues		(4,297	)		(2,511	)		(2,871	)		(1,165	)
Total revenues	$	138,162		$	112,701		$	65,542		$	46,831
Operating (loss)/profit:
United States	$	(18,280	)	$	(14,868	)	$	(8,125	)	$	(7,517	)
EMEA		(8,854	)		(3,025	)		(6,631	)		(5,341	)
Other International		5,328			3,649			1,194			1,381
Less corporate expenses (2)		(11,592	)		(8,125	)		(7,494	)		(4,022	)
Eliminations		129			238			44			45
Total operating loss	$	(33,269	)	$	(22,131	)	$	(21,012	)	$	(15,454	)

	June 30,  2011		December 31, 2010
Long-lived assets (3):
United States	$	17,237	$	18,271
EMEA		999		993
Other International		1,427		1,431
Total long-lived assets	$	19,663	$	20,695

(1) Revenue is attributable to geographic regions based on the location of the Company’s subsidiaries.

(2) Corporate expenses include expenses such as salaries and related expenses for executive management and support departments such as accounting and treasury, information technology and legal which benefit the entire Company and are not segment/region specific.  Corporate expenses for the six and three months ended June 30, 2011 increased as a result of an impairment charge on the goodwill and intangible assets related to Form Athletics and an increase in compensation expenses, offset by a decrease in legal expenses.  The increase in compensation expenses, which includes bonus/incentive related expenses and employee recruiting and relocation expenses, resulted from a partial reserve of an employee receivable, an increase in head count and an increase in stock option compensation expense.  The decrease in legal expenses was a result of decreases in expenses incurred to defend the Company’s trademarks.

(3) Long-lived assets consist of property, plant and equipment, net.

During the six and three months ended June 30, 2011 and 2010, there were no customers that accounted for more than 10% of revenues.  At June 30, 2011, approximately 41% of accounts receivable were from six customers.  At December 31, 2010, approximately 39% of accounts receivable were from six customers.