Build-A-Bear Workshop 2009 Annual Report Download - page 66

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BUILD-A-BEAR WORKSHOP, INC. 2009 FORM 10-K
Notes to Consolidated Financial Statements (continued)
current agreements, the Company could own up to
approximately 33% of fully diluted equity in Ridemakerz.
As of January 2, 2010 and January 3, 2009,
outstanding receivables from Ridemakerz were $-0- and $0.4
million, respectively.
A summary of Ridemakerz results of operations for 2009
follows (in thousands):
2009
Total revenue $ 7,347
Gross margin 577
Store closing costs 3,021
Net loss $(11,373)
Losses allocated to Build-A-Bear Workshop 7,512
(17) MAJOR VENDORS
Three vendors, each of whose primary manufacturing facilities
are located in China, accounted for approximately 80%, 81%
and 82% of inventory purchases in 2009, 2008 and 2007,
respectively.
(18) SEGMENT INFORMATION
The Company’s operations are conducted through three
operating segments consisting of retail, international
franchising, and licensing and entertainment. The retail
segment includes the operating activities of company-owned
stores in the United States, Canada, the United Kingdom,
Ireland, France and other retail delivery operations, including
the Company’s web store and non-traditional store locations
such as baseball ballparks. The international franchising
segment includes the licensing activities of the Company’s
franchise agreements with store locations in Europe, outside
of France, Asia, Australia and Africa. The licensing and
entertainment segment has been established to market the
naming and branding rights of the Company’s intellectual
properties for third party use. The operating segments have
discrete sources of revenue, different capital structures and
different cost structures. These operating segments represent
the basis on which the Company’s chief operating decision
maker regularly evaluates the business in assessing
performance, determining the allocation of resources and the
pursuit of future growth opportunities. Accordingly, the
Company has determined that each of its operating segments
represent one reportable segment. The reportable segments
follow the same accounting policies used for the Company’s
consolidated financials statements.
Following is a summary of the financial information for
the Company’s reporting segments (in thousands):
Retail
International
Franchising
Licensing &
Entertainment Total
Fiscal 2009
Net sales to external customers $ 388,552 $ 3,353 $ 2,470 $ 394,375
Net income before income taxes (27,726) 1,913 1,973 (23,840)
Capital expenditures 7,879 269 — 8,148
Depreciation and amortization 28,045 442 — 28,487
Fiscal 2008
Net sales to external customers 460,964 4,156 2,741 467,861
Net income before income taxes 2,876 2,376 1,975 7,227
Capital expenditures 22,202 1,013 — 23,215
Depreciation and amortization 28,122 752 9 28,883
Fiscal 2007
Net sales to external customers 468,168 3,577 2,616 474,361
Net income before income taxes 31,032 1,888 2,103 35,023
Capital expenditures 36,902 333 — 37,235
Depreciation and amortization 25,788 493 11 26,292
Total Assets as of:
January 2, 2010 $ 276,779 $ 3,959 $ 3,535 $ 284,273
January 3, 2009 $294,187 $3,131 $2,834 $300,152
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