Urban Outfitters 2012 Annual Report Download - page 82

Table of Contents
URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
respectively. Harry S. Cherken, Jr., a director of the Company, is a partner at DBR. Fees due to DBR for the fiscal years ended January 31, 2012, 2011 and
2010 were approximately $273, $251 and $251, respectively.
The McDevitt Company, a real estate company, acted as a broker in substantially all of the Company's new real estate transactions during fiscal 2012,
2011 and 2010. The Company has not paid any compensation to The McDevitt Company for such services, but the Company has been advised that The
McDevitt Company has received commissions from other parties to such transactions. Wade L. McDevitt is the president and the sole shareholder of The
McDevitt Company and brother-in-law of Scott A. Belair, one of the Company's directors. There were no amounts due to The McDevitt Company as of
January 31, 2012 and January 31, 2011. Mr. McDevitt's wife, Wendy B. McDevitt, is an executive officer of the Company, serving as President of the Terrain
Brand.
The Addis Group ("Addis"), an insurance brokerage and risk management consulting company, acted as the Company's commercial insurance broker
and risk management consultant for the years ended January 31, 2012, 2011 and 2010. The Company has not paid any compensation to Addis for such
services, but has been advised that Addis has received commissions from other parties to such transactions. Scott Addis, the brother-in-law of Richard A.
Hayne, Chief Executive Officer, President and Chairman of the Board of the Company, is the President of The Addis Group. There were no amounts due to or
from Addis as of January 31, 2012 and January 31, 2011.
14. Segment Reporting
The Company is a global retailer of lifestyle-oriented general merchandise with two reporting segments—"Retail" and "Wholesale". The Company's
Retail segment consists of the aggregation of its five brands operating through 429 stores under the retail names "Urban Outfitters," "Anthropologie," "Free
People", "Terrain" and "BHLDN" and includes their direct marketing campaigns which consist of five catalogs and nine websites as of January 31, 2012. Our
Retail stores and their direct marketing campaigns are considered an operating segment. Net sales from the Retail segment accounted for more than 94% of
total consolidated net sales for the years ended January 31, 2012, 2011 and 2010. The remainder is derived from the Company's Wholesale segment that
distributes apparel to its retail segment and to approximately 1,400 better department and specialty retailers worldwide.
The Company has aggregated its retail stores and associated direct marketing campaigns into a Retail segment based upon their shared management,
customer base and economic characteristics. Reporting in this format provides management with the financial information necessary to evaluate the success of
the segments and the overall business. The Company evaluates the performance of the segments based on the net sales and pre-tax income from operations
(excluding inter-company charges) of the segment. Corporate expenses include expenses incurred and directed by the corporate office that are not allocated to
segments. The principal identifiable assets for each operating segment are inventories and property and equipment. Other assets are comprised primarily of
general corporate assets, which principally consist of cash and cash equivalents, marketable securities, and other assets,
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