|12 Months Ended|
Dec. 31, 2018
|Risks and Uncertainties [Abstract]|
The Company had one customer that accounted for approximately 11.6% and 12.3% of Accounts receivable, net at December 31, 2018 and 2017, respectively. No single customer accounted for 10% or more of Net sales for any of the years ended December 31, 2018, 2017 or 2016.
The Company uses derivative instruments to hedge the currency exchange rate risk of anticipated transactions denominated in non-functional currencies that are designated and qualify as cash flow hedges. The Company also uses derivative instruments to economically hedge the currency exchange rate risk of certain investment positions, to hedge balance sheet re-measurement risk and to hedge other anticipated transactions that do not qualify as cash flow hedges. At December 31, 2018, the Company's derivative contracts had remaining maturities of less than three years. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was less than $7,000,000 at December 31, 2018. All of the Company's derivative counterparties have investment grade credit ratings. Refer to Note 20 for further disclosures concerning derivatives.
Country and supplier concentrations
The Company's products are produced by contract manufacturers located outside the United States, principally in Southeast Asia. Apparel is manufactured in approximately 14 countries, with Vietnam and China together accounting for approximately 61% of 2018 global apparel production. Footwear is manufactured in three countries, with China and Vietnam accounting for substantially all of 2018 global footwear production. The five largest apparel factory groups accounted for approximately 32% of 2018 global apparel production, with the largest factory group accounting for 11% of 2018 global apparel production. The five largest footwear factory groups accounted for approximately 80% of 2018 global footwear production, with the largest factory group accounting for 38% of 2018 global footwear production. These companies have multiple factory locations, many of which are in different countries, thus reducing the risk that unfavorable conditions at a single factory or location would have a material adverse effect on the Company.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef