Annual report pursuant to Section 13 and 15(d)

Concentrations

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Concentrations
12 Months Ended
Dec. 31, 2014
Risks and Uncertainties [Abstract]  
Concentrations
CONCENTRATIONS
Trade Receivables
The Company had one customer in its Canada segment that accounted for approximately 11.2% and 10.5% of consolidated accounts receivable at December 31, 2014 and 2013, respectively. No single customer accounted for 10% or more of consolidated revenues for any of the years ended December 31, 2014, 2013, or 2012.
Derivatives
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, 2014, the Company’s derivative contracts had a remaining maturity of less than one year. 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 $4,000,000 at December 31, 2014. All of the Company’s derivative counterparties have investment grade credit ratings and as a result, the Company does not require collateral to facilitate transactions. See 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 17 countries, with Vietnam and China accounting for approximately 68% of 2014 global apparel production. Footwear is manufactured in five countries, with China and Vietnam accounting for substantially all of 2014 global footwear production. The five largest apparel factory groups accounted for approximately 30% of 2014 global apparel production, with the largest factory group accounting for 11% of 2014 global apparel production. The five largest footwear factory groups accounted for approximately 85% of 2014 global footwear production, with the largest factory group accounting for 41% of 2014 global footwear production. These companies, however, have multiple factory locations, many of which are in different countries, thus reducing the risk that unfavorable conditions at a single factory or location will have a material adverse effect on the Company.