Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information
NOTE 4 — SEGMENT INFORMATION

The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources. The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments: U.S., LAAP, EMEA, and Canada. These reportable segments are organized by geographic location. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

The Company’s CODM is the Company’s chief executive officer. The Company’s CODM assesses the segments’ performance by using each segment's operating income.

The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process. The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment.

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 departmental functions, including information technology, certain supply chain functions, finance, human resources, and legal, as well as executive compensation, unallocated benefit program expense, intangible asset and goodwill impairment charges, and other miscellaneous costs.
The following tables present segment financial information for the Company's reportable segments:
Year Ended December 31, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 1,979,033  $ 611,149  $ 576,920  $ 230,249  $ 3,397,351 
Cost of sales
 997,128  274,846  292,527  116,128  1,680,629 
Segment selling, general and administrative expenses
 612,012  222,430  146,475  53,897  1,034,814 
Other segment items(a)
72,750  25,945  16,551  15,796  131,042 
Segment operating income
 297,143  87,928  121,367  44,428  550,866 
Reconciliation to income before income tax:
Unallocated corporate expenses
 343,827 
Operating income 207,039 
Interest income, net
 17,867 
Other non-operating income, net
 4,718 
Income before income tax $ 229,624 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Year Ended December 31, 2024
(in thousands)
 U.S. LAAP EMEA Canada Total
Net sales
 $ 2,068,228  $ 560,706  $ 511,778  $ 227,870  $ 3,368,582 
Cost of sales
 1,051,855  247,506  264,434  113,702  1,677,497 
Segment selling, general and administrative expenses
 577,295  207,248  126,121  49,187  959,851 
Other segment items(a)
82,356  28,944  17,737  17,184  146,221 
Segment operating income
 356,722  77,008  103,486  47,797  585,013 
Reconciliation to income before income tax:
Unallocated corporate expenses
 314,272 
Operating income
 270,741 
Interest income, net
 27,703 
Other non-operating expense, net
 257 
Income before income tax
 $ 298,187 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Year Ended December 31, 2023
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 2,241,437  $ 519,754  $ 469,237  $ 256,775  $ 3,487,203 
Cost of sales
 1,150,610  227,304  244,570  134,787  1,757,271 
Segment selling, general and administrative expenses
 591,748  200,939  110,702  49,050  952,439 
Other segment items(a)
83,348  29,687  15,022  17,339  145,396 
Segment operating income
 415,731  61,824  98,943  55,599  632,097 
Reconciliation to income before income tax:
Unallocated corporate expenses
 321,813 
Operating income
 310,284 
Interest income, net
 13,687 
Other non-operating income
2,221 
Income before income tax
 $ 326,192 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.
The following table presents segment depreciation and amortization expense information:

Year Ended December 31,
(in thousands)
 2025 2024 2023
Depreciation and amortization expense:
U.S. $ 26,274  $ 22,907  $ 21,429 
LAAP 6,803  5,885  5,440 
EMEA 4,673  4,040  3,545 
Canada 3,100  2,913  2,616 
Unallocated corporate expense 15,985  20,199  25,033 
$ 56,835  $ 55,944  $ 58,063 

The following table presents segment asset information, as well as long-lived asset information by geographic area:

 As of December 31,
(in thousands)
 December 31, 2025 December 31, 2024
Inventories:
U.S. $ 416,041  $ 450,014 
LAAP 118,633  108,818 
EMEA 106,508  79,710 
Canada 48,274  51,973 
Total segment assets
 689,456  690,515 
All other assets
 2,239,037  2,284,750 
Total assets
 $ 2,928,493  $ 2,975,265 
Long-lived assets, net:
U.S. $ 536,022  $ 545,401 
All other countries 178,920  150,995 
$ 714,942  $ 696,396