Famous Footwear 2004 Annual Report Download - page 57

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Table of Contents
Notes to Consolidated Financial Statements (continued)
BROWN SHOE COMPANY, INC. 2003 FORM 10-K
amounts were not considered indefinitely reinvested, additional deferred taxes of approximately $26.7 million would have been provided.
6. BUSINESS SEGMENT INFORMATION
The Company’s reportable segments include Famous Footwear, Wholesale operations, Naturalizer Retail and Other.
Famous Footwear, which represents the Company’s largest division, operated 893 stores at the end of 2003, primarily selling branded
footwear for the entire family.
Wholesale operations source and market branded, licensed and private-label footwear primarily to department stores, mass merchandisers,
independent retailers and Company-owned Naturalizer Retail and Famous Footwear stores.
Naturalizer Retail specialty store operations include 208 stores in the United States and 170 stores in Canada at year-end, selling primarily
Naturalizer brand footwear in regional malls and outlet centers.
The Other segment includes the corporate assets and administrative and other expenses which are not allocated to the operating units. It also
includes the Company’s investment in its majority-owned subsidiary, Shoes.com, Inc., a footwear e-commerce company.
The Company’s reportable segments are operating units that market to different customers and are each managed separately as they
distribute their products on a retail or wholesale basis. An operating segment’s performance is evaluated and resources allocated based on
operating earnings. Operating earnings represent gross profit less selling and administrative expenses and, in 2003, a provision for
environmental litigation costs. The accounting policies of the reportable segments are the same as those described in Note 1. Intersegment
sales are generally recorded at a profit to the selling division. All intersegment earnings related to inventory on hand at the purchasing
division are eliminated against the earnings of the selling division.
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