Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.1
Segment Information
 3 Months Ended
Mar. 31, 2019
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company has aggregated its operating segments into four reportable geographic segments: (1) the United States, (2) LAAP, (3) 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 and Income from operations in the Condensed Consolidated Statements of Operations are summarized in the following table for the three months ended March 31, 2019 and 2018.
 
 
Three Months Ended March 31,
(in thousands)
 
2019
 
2018
Net sales to unrelated entities:
 
 
 
 
United States
 
$
412,224

 
$
362,844

LAAP
 
132,859

 
131,569

EMEA
 
71,348

 
71,775

Canada
 
38,177

 
41,120

 
 
$
654,608

 
$
607,308

Segment income from operations:
 
 
 
 
United States
 
$
95,723

 
$
75,830

LAAP
 
26,750

 
24,118

EMEA
 
9,186

 
6,648

Canada
 
6,011

 
6,242

Total segment income from operations
 
137,670

 
112,838

Unallocated corporate expenses
 
(49,712
)
 
(53,517
)
Interest income, net
 
3,400

 
2,296

Other non-operating income (expense)
 
446

 
(268
)
Income before income taxes
 
$
91,804

 
$
61,349


During the fourth quarter of 2018, the Company revised its methodology for allocating certain expenses to its reportable segments to better reflect how management reviews financial information and makes operating decisions. As a result, prior year balances for segment income from operations for each reportable segment, and unallocated corporate expenses in the table above have been reclassified to conform with the current year's presentation.
In addition, during the fourth quarter of 2018, the Company determined that it had incorrectly allocated certain amounts of operating income to its United States segment, resulting in the overstatement of both total segment income from operations and unallocated corporate expenses by $3.1 million for the three months ended March 31, 2018. The Company assessed the significance of the misclassifications and concluded that they were not material to any prior periods. As a result, the United States and total segment income from operations as well as unallocated corporate expenses for the three months ended March 31, 2018 in the table above have been revised from amounts previously reported to correct the misclassifications. These corrections had no effect on the Company's Condensed Consolidated Statements of Operations.
Concentrations
No single customer accounted for 10% or more of Accounts receivable, net of allowance as of March 31, 2019 and 2018. The Company had one customer that accounted for 11.6% of Accounts receivable, net of allowance as of December 31, 2018. No single customer accounted for 10% or more of Net sales in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 or 2018, or for the year ended December 31, 2018.