Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
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, human resources and legal, executive compensation, unallocated benefit program expense and other miscellaneous costs.
In 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. 2013 amounts have been adjusted to match 2015 and 2014 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, 2015, 2014 and 2013 and for accounts receivable, net and inventories at December 31, 2015 and 2014.
 
 
2015
 
2014
 
2013
Net sales to unrelated entities:
 
 
 
 
 
 
United States
 
$
1,455,283

 
$
1,198,405

 
$
971,321

LAAP
 
469,140

 
491,648

 
354,345

EMEA
 
233,226

 
259,163

 
240,702

Canada
 
168,531

 
151,374

 
118,628

 
 
$
2,326,180

 
$
2,100,590

 
$
1,684,996

 
 
 
 
 
 
 
Segment income (loss) from operations:
 
 
 
 
 
 
United States
 
$
309,162

 
$
229,784

 
$
168,395

LAAP
 
65,846

 
66,810

 
55,147

EMEA
 
8,664

 
12,667

 
(3,554
)
Canada
 
23,772

 
22,784

 
13,818

Total segment income from operations
 
407,444

 
332,045

 
233,806

Unallocated corporate expenses
 
(157,723
)
 
(133,201
)
 
(102,012
)
Interest income, net
 
1,531

 
1,004

 
503

Interest expense on note payable to related party
 
(1,099
)
 
(1,053
)
 
—

Other non-operating expense
 
(2,834
)
 
(274
)
 
(871
)
Income before income tax
 
$
247,319

 
$
198,521

 
$
131,426

 
 
 
 
 
 
 
Interest income (expense), net:
 
 
 
 
 
 
United States
 
$
4,765

 
$
4,804

 
$
4,501

LAAP
 
(555
)
 
(138
)
 
(162
)
EMEA
 
152

 
(661
)
 
(556
)
Canada
 
(2,831
)
 
(3,001
)
 
(3,280
)
 
 
$
1,531

 
$
1,004

 
$
503

 
 
 
 
 
 
 
Income tax (expense) benefit:
 
 
 
 
 
 
United States
 
$
(58,487
)
 
$
(40,431
)
 
$
(28,629
)
LAAP
 
(10,058
)
 
(14,062
)
 
(11,135
)
EMEA
 
5,305

 
678

 
2,959

Canada
 
(4,228
)
 
(2,847
)
 
(1,018
)
 
 
$
(67,468
)
 
$
(56,662
)
 
$
(37,823
)
 
 
 
 
 
 
 
Depreciation and amortization expense:
 
 
 
 
 
 
United States
 
$
25,490

 
$
25,736

 
$
17,413

LAAP
 
5,437

 
4,750

 
4,203

EMEA
 
2,419

 
2,550

 
4,129

Canada
 
3,020

 
3,463

 
2,915

Unallocated corporate expense
 
20,155

 
17,518

 
12,211

 
 
$
56,521

 
$
54,017

 
$
40,871

 
 
 
 
 
 
 
Accounts receivable, net:
 
 
 
 
 
 
United States
 
$
177,893

 
$
144,841

 
 
LAAP
 
92,155

 
93,006

 
 
EMEA
 
41,294

 
43,527

 
 
Canada
 
60,611

 
63,016

 
 
 
 
$
371,953

 
$
344,390

 


 
 
 
 
 
 
 
Inventories:
 
 
 
 
 
 
United States
 
$
298,591

 
$
219,043

 
 
LAAP
 
98,986

 
103,351

 
 
EMEA
 
42,499

 
37,803

 
 
Canada
 
33,561

 
24,453

 
 
 
 
$
473,637

 
$
384,650

 


 
 
 
 
 
 
 
Property, plant and equipment, net:
 
 
 
 
 
 
United States
 
$
222,164

 
$
214,565

 
 
Canada
 
29,294

 
36,415

 
 
All other countries
 
40,229

 
40,583

 
 
 
 
$
291,687

 
$
291,563

 
 
 
 
 
 
 
 
 
Net sales by product category:
 
 
 
 
 
 
Apparel, accessories and equipment
 
$
1,821,182

 
$
1,676,192

 
$
1,374,598

Footwear
 
504,998

 
424,398

 
310,398

 
 
$
2,326,180

 
$
2,100,590

 
$
1,684,996