Quarterly report pursuant to Section 13 or 15(d)

Business Segments

v3.3.1.900
Business Segments
 3 Months Ended
Jan. 02, 2016
Segment Reporting [Abstract]  
Business Segments
Business Segments
We operate our business in two distinct segments: branded and basics. Although the two segments are similar in their production processes and regulatory environments, they are distinct in their economic characteristics, products, marketing, and distribution methods.
The branded segment is comprised of our business units focused on specialized apparel garments and headwear to meet consumer preferences and fashion trends, and includes the Salt Life, Junkfood, and Soffe business units as well as The Game business unit prior to its disposition on March 2, 2015. These branded embellished and unembellished products are sold through specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, e-retailers, and the U.S. military. Products in this segment are marketed under our lifestyle brands of Salt Life®, Junk Food®, and Soffe®, as well as other labels.
The basics segment is comprised of our business units primarily focused on garment styles characterized by low fashion risk, and includes our Delta Activewear (which includes Delta Catalog and FunTees) and Art Gun business units. We market, distribute and manufacture for sale knit apparel under the main brands of Delta Pro Weight® and Delta Magnum Weight® for sale to a diversified audience ranging from large licensed screen printers to small independent businesses. We also manufacture private label products for major branded sportswear companies, retailers, corporate industry programs, e-retailers, and sports licensed apparel marketers. Art Gun produces custom private label garments using digital printing. Typically the private label products are sold with value-added services such as hangtags, ticketing, hangers, and embellishment so that they are fully ready for retail.
Robert W. Humphreys, our chief operating decision maker, and management evaluate performance and allocate resources based on profit or loss from operations before interest, income taxes and special charges (“segment operating earnings (loss)”). Our segment operating earnings (loss) may not be comparable to similarly titled measures used by other companies. Intercompany transfers between operating segments are transacted at cost and have been eliminated within the segment amounts shown in the following table.
Information about our operations as of and for the three months ended January 2, 2016, and December 27, 2014, by operating segment, is as follows (in thousands):
 
Basics
 
Branded
 
Consolidated
Three months ended January 2, 2016
 
 
 
 
 
Net sales
$
61,516

 
$
28,655

 
$
90,171

Segment operating income (loss)
4,545

 
(2,318
)
 
2,227

Segment assets
168,427

 
155,990

 
324,417

 
 
 
 
 
 
Three months ended December 27, 2014
 
 
 
 
 
Net sales
$
57,681

 
$
35,700

 
$
93,381

Segment operating loss
(1,226
)
 
(1,991
)
 
(3,217
)
Segment assets
181,445

 
170,884

 
352,329


The following table reconciles the segment operating earnings to the Company's consolidated income (loss) before provision (benefit) from income taxes (in thousands):
 
Three Months Ended
 
January 2,
2016
 
December 27,
2014
Segment operating income (loss)
$
2,227

 
$
(3,217
)
Unallocated interest expense
1,276

 
1,528

Consolidated income (loss) before provision (benefit) from income taxes
$
951

 
$
(4,745
)