Build-A-Bear Workshop 2009 Annual Report Download - page 67

BUILD-A-BEAR WORKSHOP, INC. 2009 FORM 10-K
Notes to Consolidated Financial Statements (continued)
The Company’s reportable segments are primarily
determined by the types of products and services that they
offer. Each reportable segment may operate in many
geographic areas. The Company allocates revenues to
geographic areas based on the location of the customer or
franchisee. The following schedule is a summary of the
Company’s sales to external customers and long-lived assets
by geographic area (in thousands):
North
America(1) Europe(2) Other(3) Total
Fiscal 2009
Net sales to external customers $ 318,502 $ 72,520 $ 3,353 $ 394,375
Property and equipment, net 87,860 13,184 — 101,044
Fiscal 2008
Net sales to external customers 388,213 75,492 4,156 467,861
Property and equipment, net 109,305 13,888 — 123,193
Fiscal 2007
Net sales to external customers 411,781 59,003 3,577 474,361
Property and equipment, net 120,145 19,687 9 139,841
(1) North America includes the United States, Canada and Puerto Rico
(2) Europe includes company-owned stores in the United Kingdom, Ireland and France
(3) Other includes franchise businesses outside of the United States, Canada, Puerto Rico, the United Kingdom, Ireland and France
(19) CLOSURE OF FRIENDS 2B MADE CONCEPT
In September 2008, the Company announced plans to close
its Friends 2B Made concept, a line of make-your-own dolls
and related products. The closure plan affected the
Company’s nine Friends 2B Made locations, all but one of
which were inside or adjacent to a Build-A-Bear Workshop
store, separate Friends 2B Made fixtures in approximately 50
Build-A-Bear Workshop stores, and the concept’s Web site.
As of January 2, 2010, all nine locations were closed and the
fixtures had been removed from all Build-A-Bear Workshop
stores. During the fiscal 2009, the Company recorded pre-tax
charges of $1.0 million related to the closures, which
consisted of lease termination charges, construction costs and
inventory write-offs, and are included in “Store closing”
expenses in the Consolidated Statements of Operations.
During fiscal 2008, the Company recorded a pre-tax charge
of $3.0 million, respectively, related to the closures, which
consisted primarily of asset impairment charges. These
charges are a component of net loss before income taxes in
the retail segment.
(20) SUBSEQUENT EVENT
On March 3, 2010, the Company announced the extension
of its previously announced $50 million share repurchase
program until March 31, 2011, subject to further extension
by the Company’s Board of Directors. The Company currently
intends to purchase up to $50 million of its common stock in
the in the open market (including through 10b5-1 plans),
through privately negotiated transactions or through an
accelerated repurchase transaction. The primary source of
funding for the program is expected to be cash on hand. The
timing and amount of share repurchases, if any, will depend
on price, market conditions, applicable regulatory
requirements, and other factors. The program does not require
the Company to repurchase any specific number of shares
and may be modified, suspended or terminated at any time
without prior notice. Shares repurchased under the program
will be subsequently retired.
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