Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.1.9
Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company has aggregated its operating segments into four reportable geographic segments: (1) the 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, income (loss) from operations, interest income (expense), income tax (expense) benefit, and depreciation and amortization expense are summarized in the following tables (in thousands) for the years ended December 31, 2014, 2013 and 2012 and for accounts receivable, net and inventories at December 31, 2014 and 2013.
 
 
2014
 
2013
 
2012
Net sales to unrelated entities:
 
 
 
 
 
 
United States
 
$
1,198,405

 
$
971,321

 
$
946,710

LAAP
 
491,648

 
354,345

 
377,545

EMEA
 
259,163

 
240,702

 
230,624

Canada
 
151,374

 
118,628

 
114,684

 
 
$
2,100,590

 
$
1,684,996

 
$
1,669,563

 
 
 
 
 
 
 
Segment income (loss) from operations:
 
 
 
 
 
 
United States
 
$
229,784

 
$
168,395

 
$
146,779

LAAP
 
66,810

 
55,147

 
70,230

EMEA
 
12,667

 
(3,554
)
 
674

Canada
 
22,784

 
13,818

 
12,666

Total segment income from operations
 
332,045

 
233,806

 
230,349

Unallocated corporate expenses
 
(133,201
)
 
(102,012
)
 
(96,821
)
Interest income, net
 
1,004

 
503

 
379

Interest expense on note payable to related party
 
(1,053
)
 
—

 
—

Other non-operating expense
 
(274
)
 
(871
)
 
—

Income before income tax
 
$
198,521

 
$
131,426

 
$
133,907

 
 
 
 
 
 
 
Interest income (expense), net:
 
 
 
 
 
 
United States
 
$
4,804

 
$
4,501

 
$
5,121

LAAP
 
(138
)
 
(162
)
 
(1,097
)
EMEA
 
(661
)
 
(556
)
 
293

Canada
 
(3,001
)
 
(3,280
)
 
(3,938
)
 
 
$
1,004

 
$
503

 
$
379

 
 
 
 
 
 
 
Income tax (expense) benefit:
 
 
 
 
 
 
United States
 
$
(40,431
)
 
$
(28,629
)
 
$
(21,961
)
LAAP
 
(14,062
)
 
(11,135
)
 
(13,792
)
EMEA
 
678

 
2,959

 
1,527

Canada
 
(2,847
)
 
(1,018
)
 
178

 
 
$
(56,662
)
 
$
(37,823
)
 
$
(34,048
)
 
 
 
 
 
 
 
Depreciation and amortization expense:
 
 
 
 
 
 
United States
 
$
25,736

 
$
17,413

 
$
18,726

LAAP
 
4,750

 
4,203

 
4,281

EMEA
 
2,550

 
4,129

 
4,153

Canada
 
3,463

 
2,915

 
1,761

Unallocated corporate expense
 
17,518

 
12,211

 
11,971

 
 
$
54,017

 
$
40,871

 
$
40,892

 
 
 
 
 
 
 
Accounts receivable, net:
 
 
 
 
 
 
United States
 
$
144,841

 
$
121,081

 
 
LAAP
 
93,006

 
80,257

 
 
EMEA
 
43,527

 
51,912

 
 
Canada
 
63,016

 
53,628

 
 
 
 
$
344,390

 
$
306,878

 


 
 
 
 
 
 
 
Inventories:
 
 
 
 
 
 
United States
 
$
219,043

 
$
178,167

 
 
LAAP
 
103,351

 
99,915

 
 
EMEA
 
37,803

 
28,307

 
 
Canada
 
24,453

 
22,839

 
 
 
 
$
384,650

 
$
329,228

 


 
 
 
 
 
 
 
Long-lived assets:
 
 
 
 
 
 
United States
 
$
214,565

 
$
194,223

 
 
Canada
 
36,415

 
42,356

 
 
All other countries
 
40,583

 
42,794

 
 
 
 
$
291,563

 
$
279,373

 
 
 
 
 
 
 
 
 
Net sales by product category:
 
 
 
 
 
 
Apparel, accessories and equipment
 
$
1,676,192

 
$
1,374,598

 
$
1,347,005

Footwear
 
424,398

 
310,398

 
322,558

 
 
$
2,100,590

 
$
1,684,996

 
$
1,669,563