Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
NOTE 16 — SEGMENT INFORMATION

The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources. The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments: U.S., LAAP, EMEA, and Canada. These reportable segments are organized by geographic location. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

The Company’s CODM is the Company’s president and chief executive officer. The Company’s CODM assesses the segments’ performance by using each segment's operating income.

The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process. The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment.

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 departmental functions, including information technology, certain supply chain functions, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.
The following tables present segment financial information for the Company's reportable segments for the years ended December 31, 2024, 2023, and 2022:

Year Ended December 31, 2024
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 2,068,228  $ 560,706  $ 511,778  $ 227,870  $ 3,368,582 
Cost of sales
 1,051,855  247,506  264,434  113,702  1,677,497 
Segment selling, general and administrative expenses
 577,295  207,248  126,121  49,187  959,851 
Other segment items(a)
82,356  28,944  17,737  17,184  146,221 
Segment operating income
 356,722  77,008  103,486  47,797  585,013 
Reconciliation to income before income tax:
Unallocated corporate expenses
 314,272 
Operating income 270,741 
Interest income, net
 27,703 
Other non-operating expense (257)
Income before income tax $ 298,187 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Year Ended December 31, 2023
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 2,241,437  $ 519,754  $ 469,237  $ 256,775  $ 3,487,203 
Cost of sales
 1,150,610  227,304  244,570  134,787  1,757,271 
Segment selling, general and administrative expenses
 591,748  200,939  110,702  49,050  952,439 
Other segment items(a)
83,348  29,687  15,022  17,339  145,396 
Segment operating income
 415,731  61,824  98,943  55,599  632,097 
Reconciliation to income before income tax:
Unallocated corporate expenses
 321,813 
Operating income
 310,284 
Interest income, net
 13,687 
Other non-operating income
 2,221 
Income before income tax
 $ 326,192 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.
Year Ended December 31, 2022
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 2,302,246  $ 473,866  $ 438,554  $ 249,486  $ 3,464,152 
Cost of sales
 1,165,429  208,803  244,747  134,095  1,753,074 
Segment selling, general and administrative expenses
 537,044  192,315  98,477  43,559  871,395 
Other segment items(a)
79,961  25,723  15,138  18,875  139,697 
Segment operating income
 519,812  47,025  80,192  52,957  699,986 
Reconciliation to income before income tax:
Unallocated corporate expenses
 306,882 
Operating income
 393,104 
Interest income, net
 2,713 
Other non-operating income
1,593 
Income before income tax
 $ 397,410 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

The following table presents segment depreciation and amortization expense information for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
(in thousands)
 2024 2023 2022
Depreciation and amortization expense:
U.S. $ 22,907  $ 21,429  $ 20,428 
LAAP 5,885  5,440  4,984 
EMEA 4,040  3,545  3,066 
Canada 2,913  2,616  2,461 
Unallocated corporate expense 20,199  25,033  23,813 
$ 55,944  $ 58,063  $ 54,752 
The following table presents segment asset information, as well as long-lived asset information by geographic area as of December 31, 2024 and 2023. The Company has historically limited its disclosure of entity-wide information about geographic areas to property, plant, and equipment, net. In connection with the preparation of its 2024 disclosure, the Company expanded its disclosure to include lease ROU assets and CCA assets. Accordingly, the entity-wide information about geographic areas in the table below has been revised from the amount previously reported for 2023 to include lease ROU assets and CCA assets.
 As of December 31,
(in thousands)
 2024 2023
Inventories:
U.S. $ 450,014  $ 487,860 
LAAP 108,818  106,785 
EMEA 79,710  89,303 
Canada 51,973  62,340 
Total segment assets
 690,515  746,288 
All other assets
 2,284,750  2,192,725 
Total assets
 $ 2,975,265  $ 2,939,013 
Long-lived assets, net:
U.S. $ 545,401  $ 540,534 
All other countries 150,995  122,878 
$ 696,396  $ 663,412 

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for any of the years ended December 31, 2024, 2023 or 2022.