NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For geographic purposes, the domestic operations include the wholesale distribution of branded, licensed and private label footwear to a variety of retail customers, and nationwide operation of the Famous Footwear and Naturalizer chains of footwear stores.

The Company’s foreign operations primarily consist of wholesale distribution operations in the Far East, and wholesaling and retailing in Canada. The Far East operations include “first-cost” operations, where footwear is sold at foreign ports to customers who then import the footwear into the United States.