Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
 9 Months Ended
Sep. 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 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 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 from operations are summarized in the following table (in thousands) for the three and nine months ended September 30, 2014 and 2013.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Net sales to unrelated entities:
 
 
 
 
 
 
 
United States
$
406,172

 
$
323,120

 
$
793,729

 
$
663,407

LAAP
123,538

 
71,968

 
336,451

 
236,297

EMEA
78,846

 
78,102

 
190,935

 
172,056

Canada
66,740

 
49,894

 
102,511

 
80,126

 
$
675,296

 
$
523,084

 
$
1,423,626

 
$
1,151,886

Segment income from operations:
 
 
 
 
 
 
 
United States
$
100,771

 
$
73,571

 
$
147,307

 
$
104,533

LAAP
19,259

 
11,975

 
45,746

 
33,889

EMEA
8,406

 
10,215

 
10,677

 
3,084

Canada
14,200

 
9,919

 
13,815

 
9,372

Total segment income from operations
142,636

 
105,680

 
217,545

 
150,878

Unallocated corporate expenses
(44,354
)
 
(28,781
)
 
(100,801
)
 
(71,248
)
Interest income, net
238

 
56

 
861

 
403

Interest expense on note payable to related party
(282
)
 
—

 
(769
)
 
—

Other non-operating income (expense)
666

 
417

 
161

 
(686
)
Income before income taxes
$
98,904

 
$
77,372

 
$
116,997

 
$
79,347