Note 10 - Segment Information

9 Months Ended

Sep. 30, 2012

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 2011 presentation to conform to the 2012 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,
	2012			2011			2012			2011
Revenues from unrelated entities (1):
United States	$	61,861		$	96,360		$	22,301		$	32,676
EMEA		73,524			74,772			28,660			32,048
Other International		46,236			47,062			16,590			15,732
Total revenues from unrelated entities	$	181,621		$	218,194		$	67,551		$	80,456
Inter-geographic revenues:
United States	$	4,783		$	4,210		$	1,226		$	1,646
EMEA		47			1,441			21			(5	)
Other International		124			165			58			29
Total inter-geographic revenues	$	4,954		$	5,816		$	1,305		$	1,670
Total revenues:
United States	$	66,644		$	100,570		$	23,527		$	34,322
EMEA		73,571			76,213			28,681			32,043
Other International		46,360			47,227			16,648			15,761
Less inter-geographic revenues		(4,954	)		(5,816	)		(1,305	)		(1,670	)
Total revenues	$	181,621		$	218,194		$	67,551		$	80,456
Operating (loss)/profit:
United States	$	(15,755	)	$	(29,074	)	$	(3,223	)	$	(12,841	)
EMEA		1,288			(9,534	)		2,509			(677	)
Other International		3,839			7,076			1,601			1,754
Less corporate expenses (2)		(8,695	)		(10,782	)		(2,924	)		(3,114	)
Eliminations		1,136			1,475			274			1,346
Total operating loss	$	(18,187	)	$	(40,839	)	$	(1,763	)	$	(13,532	)

	September 30, 2012		December 31, 2011
Long-lived assets (3):
United States	$	15,147	$	16,719
EMEA		1,604		1,519
Other International		1,345		1,355
Total long-lived assets	$	18,096	$	19,593

(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, 2012 decreased as a result of decreases in compensation and data processing expenses and, in addition, for the nine months ended September 30, 2012, a decrease in legal expenses.  The decrease in compensation expenses, which includes bonus/incentive related expenses and employee recruiting and relocation expenses, resulted from a reduction in salary related expenses, stock option compensation expenses and interest expense related to the Company’s deferred compensation plan which was terminated in October 2011.  The decrease in data processing expenses was a result of decreases in on-going maintenance expenses.  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 nine and three months ended September 30, 2012 and 2011, there were no customers that accounted for more than 10% of revenues.  At September 30, 2012, approximately 9% of accounts receivable was from one customer.  At December 31, 2011, approximately 10% of accounts receivable was from one customer.