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.
Also, very important to specify in that we are not just in "fashion business.". Even under the fashion headline a lot of those businesses are basics. We sell a whole lot of socks and a whole lot of white T-shirts and lot of towels. We also have a nice home business with five brands and our character business that's driven by the Snoopy is also an important, and we believe we will continue to diversify all three of these areas are an important part of our portfolio strategy.
A big impetus of our growth over the last few years is what we call our DTR model. DTR is direct-to-retail, and here we have made agreements directly with Walmart has three agreements, directly with Target has two agreements, Kohl's, and vice versa throughout this list of the best retailers in America, and hopefully soon around the world. What this relationship does? It gives the retailer a brand that people know that's very strong and kind of cutting out the middleman, who is usually charging 40% to 50% for these brands. Most of our partners have sourcing setups around the world, so now they have a powerful national brand without having to buy from someone in the middle with higher prices.
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