| Segment Information |
SEGMENT INFORMATION
The Company has aggregated its operating segments into four reportable geographic segments: (1) the United States, (2) Latin America and Asia Pacific ("LAAP"), (3) Europe, Middle East and Africa ("EMEA"), and (4) Canada, which are reflective of the Company's internal organization, management and oversight structure. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor and active lifestyle apparel, footwear, accessories, and equipment. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departments, including global information systems, finance, human resources and legal, executive compensation, unallocated benefit program expense, and other miscellaneous costs.
The geographic distribution of the Company's net sales, income from operations, interest income (expense), income tax (expense) benefit, and depreciation and amortization expense are summarized in the following tables (in thousands) for the years ended December 31, 2017, 2016 and 2015 and for accounts receivable, net, inventories and property, plant and equipment, net, at December 31, 2017 and 2016.
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2017 |
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2016 |
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2015 |
Net sales to unrelated entities: |
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United States |
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$ |
1,520,026 |
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$ |
1,505,302 |
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$ |
1,455,283 |
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LAAP |
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475,128 |
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453,686 |
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469,140 |
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EMEA |
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293,700 |
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253,487 |
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233,226 |
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Canada |
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177,251 |
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164,570 |
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168,531 |
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$ |
2,466,105 |
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$ |
2,377,045 |
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$ |
2,326,180 |
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Segment income from operations: |
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United States |
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$ |
334,207 |
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$ |
331,706 |
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$ |
309,162 |
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LAAP |
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73,748 |
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61,994 |
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65,846 |
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EMEA |
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11,897 |
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8,403 |
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8,664 |
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Canada |
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26,427 |
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19,010 |
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23,772 |
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Total segment income from operations |
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446,279 |
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421,113 |
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407,444 |
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Unallocated corporate expenses |
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(183,310 |
) |
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(164,605 |
) |
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(157,723 |
) |
Interest income, net |
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4,515 |
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2,003 |
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1,531 |
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Interest expense on note payable to related party |
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(429 |
) |
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(1,041 |
) |
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(1,099 |
) |
Other non-operating expense |
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(321 |
) |
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(572 |
) |
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(2,834 |
) |
Income before income tax |
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$ |
266,734 |
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$ |
256,898 |
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$ |
247,319 |
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Interest income (expense), net: |
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United States |
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$ |
2,573 |
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$ |
2,334 |
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$ |
4,765 |
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LAAP |
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289 |
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(216 |
) |
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(555 |
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EMEA |
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7,072 |
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2,663 |
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152 |
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Canada |
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(5,419 |
) |
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(2,778 |
) |
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(2,831 |
) |
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$ |
4,515 |
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$ |
2,003 |
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$ |
1,531 |
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Income tax (expense) benefit: |
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United States |
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$ |
(129,194 |
) |
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$ |
(45,584 |
) |
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$ |
(58,487 |
) |
LAAP |
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(14,935 |
) |
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(12,345 |
) |
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(10,058 |
) |
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EMEA |
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(4,716 |
) |
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1,507 |
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5,305 |
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Canada |
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(5,574 |
) |
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(2,037 |
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(4,228 |
) |
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$ |
(154,419 |
) |
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$ |
(58,459 |
) |
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$ |
(67,468 |
) |
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Depreciation and amortization expense: |
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United States |
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$ |
24,662 |
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$ |
24,920 |
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$ |
25,490 |
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LAAP |
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6,495 |
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6,392 |
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5,437 |
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EMEA |
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4,043 |
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3,189 |
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2,419 |
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Canada |
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2,831 |
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2,912 |
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3,020 |
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Unallocated corporate expense |
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21,914 |
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22,603 |
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20,155 |
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$ |
59,945 |
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$ |
60,016 |
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$ |
56,521 |
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Accounts receivable, net: |
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United States |
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$ |
180,742 |
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$ |
162,017 |
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LAAP |
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95,765 |
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84,947 |
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EMEA |
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42,659 |
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42,195 |
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Canada |
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45,696 |
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44,519 |
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$ |
364,862 |
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$ |
333,678 |
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Inventories: |
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United States |
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$ |
285,481 |
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$ |
308,721 |
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LAAP |
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84,149 |
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95,033 |
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EMEA |
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57,055 |
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51,226 |
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Canada |
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31,242 |
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33,017 |
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$ |
457,927 |
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$ |
487,997 |
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Property, plant and equipment, net: |
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United States |
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$ |
206,172 |
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$ |
211,572 |
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Canada |
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30,318 |
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28,159 |
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All other countries |
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44,904 |
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39,919 |
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$ |
281,394 |
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$ |
279,650 |
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Net sales by product category: |
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Apparel, accessories and equipment |
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$ |
1,927,957 |
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$ |
1,865,449 |
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$ |
1,821,182 |
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Footwear |
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538,148 |
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511,596 |
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504,998 |
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$ |
2,466,105 |
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$ |
2,377,045 |
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$ |
2,326,180 |
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