BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2019

Segment information

The Company has two reportable segments, U.S. and International. Prior to December 31, 2018, certain international operations of the Company’s business were managed domestically by the U.S. segment. In 2019, the Company realigned its operating segments to reflect the changes in how the Company manages its business, reviews operating performance and allocates resources. The prior period segment information has been recast to reflect the current reportable segment structure of the Company.

The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. The U.S. segment includes the Company’s primary domestic business that designs, markets and distributes its products to retailers, distributors and its internet websites. The International Segment consists of certain business operations conducted outside the U.S. Management evaluates the performance of the U.S. and International segments based on net sales and income (loss) from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal fees and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses.


	Year Ended December 31,
	2019		2018		2017
			(in thousands)
Net sales:
U.S.	$	644,171	$	609,114	$	478,144
International	90,731		95,428		101,332
Total net sales	$	734,902	$	704,542	$	579,476
Income from operations:
U.S. ⁽¹⁾⁽²⁾	$	19,826	$	44,213	$	39,341
International⁽³⁾⁽⁴⁾	(22,962)		(5,395)		(6,984)
Unallocated corporate expenses	(20,259)		(20,239)		(17,177)
Total income from operations	$	(23,395)	$	18,579	$	15,180
Depreciation and amortization:
U.S.	$	20,653	$	18,840	$	10,004
International	4,462		4,489		4,185
Total depreciation and amortization	$	25,115	$	23,329	$	14,189
Capital expenditures:
U.S.	$	2,078	$	7,746	$	4,176
International	7,091		156		2,135
Total capital expenditures	$	9,169	$	7,902	$	6,311

⁽¹⁾In 2019 and 2018, income from operations for the U.S. segment includes $0.7 million and $2.1 million of restructuring expenses related to the U.S. restructuring plan and the Filament integration, respectively, as described in Note A – Significant Accounting Policies.

⁽²⁾In 2019, the the Company recognized a non-cash goodwill impairment charge of $33.2 million related to its U.S. reporting unit, as described in Note G - Goodwill and intangible assets.

⁽³⁾In 2019, 2018 and 2017, income from operations for the International segment includes $0.7 million, $0.2 million and $1.0 million, respectively, of restructuring expenses related to the integration of entities in Europe, as described in Note A – Significant Accounting Policies.

⁽⁴⁾In 2019 and 2018, The Company recognized a $9.7 million non-cash goodwill impairment charge related to the European kitchenware business and a non-cash goodwill impairment charge of $2.2 million related to the European tableware business, respectively, as described in Note G - Goodwill and intangible assets.


	December
	2019		2018
	(in thousands)
Assets:
U.S.	$	639,047	$	604,532
International	117,935		94,210
Unallocated corporate	13,041		9,830
Total assets	$	770,023	$	708,572


	Year Ended December
	2019		2018
	(in thousands)
Goodwill:
U.S.
Beginning balance	$	81,641	$	2,846
Acquisition activity	—		78,795
Purchase price adjustment	972		—
Impairment	(33,242)		—
Ending balance	49,371		81,641
International
Beginning balance	10,049		12,926

Foreign currency translation adjustment	(301)		(672)
Impairment	(9,748)		(2,205)
Ending balance	—		10,049
Total goodwill	$	49,371	91,690

Geographical information

The following table sets forth long-lived assets by the major geographic locations:


	December,
	2019		2018
	(in thousands)
Long-lived assets, excluding intangible assets, at period-end:
United States	$	23,455	$	25,229
Mexico	21,288		22,583
United Kingdom	8,353		1,896
Rest of World	432		480
Total	$	53,528	$	50,188