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Concentrations
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12 Months Ended |
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Dec. 31, 2012
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| Risks and Uncertainties [Abstract] | |
| Concentrations |
CONCENTRATIONS
Trade Receivables
No single customer accounted for 10% or more of consolidated accounts receivable at December 31, 2012 or 2011. No single customer accounted for 10% or more of consolidated revenues for any of the years ended December 31, 2012, 2011 or 2010.
Derivatives
The Company uses derivative instruments to hedge the currency exchange rate risk of anticipated transactions denominated in non-functional currencies that are designated and qualify as cash flow hedges. The Company also uses derivative instruments to economically hedge the currency exchange rate risk of certain investment positions, to hedge balance sheet re-measurement risk and to hedge other anticipated transactions that do not qualify as cash flow hedges. At December 31, 2012, the Company’s derivative contracts had a remaining maturity of approximately one year or less. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was less than $4,000,000 at December 31, 2012. All of the Company’s derivative counterparties have investment grade credit ratings and as a result, the Company does not require collateral to facilitate transactions. See Note 19 for further disclosures concerning derivatives.
Country and supplier concentrations
The Company’s products are produced by independent factories located outside the United States, principally in Southeast Asia. Apparel is manufactured in approximately 20 countries, with Vietnam and China accounting for approximately 67% of 2012 global apparel production. Footwear is manufactured in three countries, with China and Vietnam accounting for approximately 93% of 2012 global footwear production. The five largest apparel factory groups accounted for approximately 25% of 2012 global apparel production, with the largest factory group accounting for 9% of 2012 global apparel production. The five largest footwear factory groups accounted for approximately 79% of 2012 global footwear production, with the largest factory group accounting for 34% of 2012 global footwear production. In addition, a single vendor supplies the majority of the zippers used in the Company’s products. These companies, however, have multiple factory locations, many of which are in different countries, thus reducing the risk that unfavorable conditions at a single factory or location will have a material adverse effect on the Company.
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