Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
 6 Months Ended
Jun. 30, 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 relevant 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 and six months ended June 30, 2014 and 2013.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Net sales to unrelated entities:
 
 
 
 
 
 
 
United States
$
146,368

 
$
139,789

 
$
387,557

 
$
340,287

LAAP
96,100

 
81,283

 
212,913

 
164,329

EMEA
72,949

 
53,034

 
112,089

 
93,954

Canada
8,829

 
6,389

 
35,771

 
30,232

 
$
324,246

 
$
280,495

 
$
748,330

 
$
628,802

Segment income (loss) from operations:
 
 
 
 
 
 
 
United States
$
2,365

 
$
5,415

 
$
46,536

 
$
30,962

LAAP
9,253

 
10,558

 
26,487

 
21,914

EMEA
5,797

 
(1,558
)
 
2,271

 
(7,131
)
Canada
(3,784
)
 
(4,050
)
 
(385
)
 
(547
)
Total segment income from operations
13,631

 
10,365

 
74,909

 
45,198

Unallocated corporate expenses
(30,620
)
 
(20,362
)
 
(56,447
)
 
(42,467
)
Interest income, net
384

 
215

 
623

 
347

Interest expense on note payable to related party
(277
)
 
—

 
(487
)
 
—

Other non-operating expense
(149
)
 
(473
)
 
(505
)
 
(1,103
)
Income (loss) before income taxes
$
(17,031
)
 
$
(10,255
)
 
$
18,093

 
$
1,975


Concentrations
The Company had one customer in its EMEA segment that accounted for approximately 16.7% of consolidated accounts receivable at June 30, 2014. The Company had two customers, one in its EMEA segment and one North American customer included in its United States and Canada segments, that accounted for approximately 12.4% and 11.2%, respectively, of consolidated accounts receivable at June 30, 2013. No single customer accounted for 10% or more of consolidated accounts receivable at December 31, 2013. The Company had one customer in its EMEA segment that accounted for approximately 12.1% and 10.4% of consolidated revenues for the three months ended June 30, 2014 and 2013, respectively. No customer accounted for 10% or more of consolidated revenues for the six months ended June 30, 2014 or 2013.