Build-A-Bear Workshop 2012 Annual Report Download - page 68

BUILD-A-BEAR WORKSHOP, INC. 2012 FORM 10-K
Notes to Consolidated Financial Statements (continued)
(17) SEGMENT INFORMATION
The Company’s operations are conducted through three operating segments consisting of retail, international franchising, and
commercial. 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, temporary stores 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, Asia, Australia, Africa, the Middle East, Mexico and
South America. The commercial 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 financial statements.
Following is a summary of the financial information for the Company’s reporting segments (in thousands):
Retail Commercial
International
Franchising Total
Fiscal 2012
Net sales to external customers $ 374,553 $ 2,790 $ 3,598 $ 380,941
Net income (loss) before income taxes (49,215) (1,207) 1,993 (48,429)
Capital expenditures 17,116 — 152 17,268
Depreciation and amortization 21,243 — 179 21,422
Fiscal 2011
Net sales to external customers $387,041 $ 3,943 $3,391 $394,375
Net income (loss) before income taxes (6,553) 1,940 1,961 (2,652)
Capital expenditures 12,137 — 111 12,248
Depreciation and amortization 23,992 — 240 24,232
Fiscal 2010
Net sales to external customers $387,163 $11,246 $3,043 $401,452
Net income (loss) before income taxes (6,858) 2,827 1,559 (2,472)
Capital expenditures 14,490 — 159 14,649
Depreciation and amortization 26,482 — 494 26,976
Total Assets as of:
December 29, 2012 $ 182,186 $ 7,098 $ 2,818 $ 192,102
December 31, 2011 $ 229,190 $ 9,877 $ 2,504 $ 241,571
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. Revenues are recognized in the 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 2012
Net sales to external customers $ 306,049 $ 72,788 $ 2,104 $ 380,941
Property and equipment, net 61,995 9,464 — 71,459
Fiscal 2011
Net sales to external customers $316,853 $75,469 $2,053 $394,375
Property and equipment, net 65,902 11,543 — 77,445
Fiscal 2010
Net sales to external customers $328,524 $70,864 $2,064 $401,452
Property and equipment, net 76,729 11,300 — 88,029
For purposes of this table only:
(1) North America includes the United States, Canada, Puerto Rico and franchise business in Mexico
(2) Europe includes the United Kingdom, Ireland, franchise businesses in Europe and, prior to 2011, Company-owned stores in France
(3) Other includes franchise businesses outside of North America and Europe
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