What this business model does for us? It gives us transparency in earnings. As far as today, we have $700 million guaranteed royalties over the initial term of our agreements without renewals, which we've shown a pretty high record of renewal. The company has no operational risk or inventory risk, we've generated a very strong cash flow and we have minimal working and CapEx needs.Diversification has been an important part of our strategy over the last few years. We look at diversification in three ways. Ones in the middle, you see a pyramid of all different types of retailers. Our brands are placed throughout the supply chain, we have a lot more business in the value chain, which is where more business is actually done, in the Walmart, Kmart, Target arena. We have pretty strong brands in the mid-tier, our Kohl's and other various partners in there and a big group of our brands are in the better area, our Macy's, Dillard's, Nordstroms and a few in the high end in the luxury side, but we are pretty diversified in who we do deals with and where our brands are distributed.
Iconix Brand Group's CEO Presents At Goldman Sachs 2012 Global Retailing Conference (Transcript)
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