Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company operates in four geographic segments: (1) 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 active outdoor 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 and legal, executive compensation, unallocated benefit program expense and other miscellaneous costs.
In the first quarter of 2014, the Company reclassified its segment reporting to reflect changes in its internal management and oversight structure. Certain marketing, product creation and administrative costs incurred by the Company’s corporate offices, previously included in the United States segment, have been allocated to other geographic regions based on appropriate operational metrics. Other such costs not directly or indirectly allocable to regional segments are now shown below as unallocated corporate expenses. Prior year amounts have been adjusted to match current year presentation.
The geographic distribution of the Company’s net sales and income (loss) from operations are summarized in the following table (in thousands) for the three months ended March 31, 2014 and 2013.
 
 
Three Months Ended March 31,
 
 
2014
 
2013
Net sales to unrelated entities:
 
 
 
 
United States
 
$
241,189

 
$
200,498

LAAP
 
116,813

 
83,046

EMEA
 
39,140

 
40,920

Canada
 
26,942

 
23,843

 
 
$
424,084

 
$
348,307

Segment income (loss) from operations:
 
 
 
 
United States
 
$
44,171

 
$
25,547

LAAP
 
17,234

 
11,356

EMEA
 
(3,526
)
 
(5,573
)
Canada
 
3,399

 
3,503

Total segment income from operations
 
61,278

 
34,833

Unallocated corporate expenses
 
(25,827
)
 
(22,105
)
Interest income, net
 
239

 
132

Interest expense on note payable to related party
 
(210
)
 
—

Other non-operating expense
 
(356
)
 
(630
)
Income before income taxes
 
$
35,124

 
$
12,230