Note 10 - Segment Information

9 Months Ended

Sep. 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):

	Nine Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010
Revenues from unrelated entities (1):
United States	$	96,360		$	73,659		$	32,676		$	27,015
EMEA		74,772			60,604			32,048			21,056
Other International		47,062			39,929			15,732			13,420
Total revenues from unrelated entities	$	218,194		$	174,192		$	80,456		$	61,491
Inter-geographic revenues:
United States	$	4,210		$	3,508		$	1,646		$	1,064
EMEA		1,441			6			(5	)		6
Other International		165			103			29			36
Total inter-geographic revenues	$	5,816		$	3,617		$	1,670		$	1,106
Total revenues:
United States	$	100,570		$	77,167		$	34,322		$	28,079
EMEA		76,213			60,610			32,043			21,062
Other International		47,227			40,032			15,761			13,456
Less inter-geographic revenues		(5,816	)		(3,617	)		(1,670	)		(1,106	)
Total revenues	$	218,194		$	174,192		$	80,456		$	61,491
Operating (loss)/profit:
United States	$	(29,257	)	$	(26,606	)	$	(12,887	)	$	(11,738	)
EMEA		(9,534	)		(3,731	)		(677	)		(706	)
Other International		7,076			4,533			1,754			884
Less corporate expenses (2)		(10,599	)		(11,947	)		(3,068	)		(3,822	)
Eliminations		1,475			1,968			1,346			1,730
Total operating loss	$	(40,839	)	$	(35,783	)	$	(13,532	)	$	(13,652	)

	September 30,  2011		December 31, 2010
Long-lived assets (3):
United States	$	17,283	$	18,271
EMEA		1,457		993
Other International		1,382		1,431
Total long-lived assets	$	20,122	$	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 nine and three months ended September 30, 2011 decreased as a result of a decrease in legal and data processing expenses, offset by an increase in compensation expenses for the nine months ended September 30, 2011.  The decrease in legal expenses was a result of decreases in expenses incurred to defend the Company’s trademarks.  The decrease in data processing expenses was a result of decreases in on-going maintenance expenses.  The increase in compensation expenses, which includes bonus/incentive related expenses and employee recruiting and relocation expenses, resulted from a reserve of an employee receivable and an increase in headcount, offset by a decrease in stock option compensation expense.

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

During the nine and three months ended September 30, 2011 and 2010, there were no customers that accounted for more than 10% of revenues.  At September 30, 2011, approximately 35% of accounts receivable were from eight customers.  At December 31, 2010, approximately 39% of accounts receivable were from six customers.