Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting Information

v3.5.0.2
Segment and Geographic Reporting Information
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment and Geographic Reporting Information

(9)

SEGMENT AND GEOGRAPHIC REPORTING INFORMATION

The Company has three reportable segments – domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales. Management evaluates segment performance based primarily on net sales and gross profit. All other costs and expenses of the Company are analyzed on an aggregate basis, and these costs are not allocated to the Company’s segments. Net sales, gross margins, identifiable assets and additions to property and equipment for the domestic wholesale, international wholesale, retail sales segments on a combined basis were as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

290,030

 

 

$

300,114

 

 

$

970,798

 

 

$

960,089

 

International wholesale

 

 

377,988

 

 

 

319,551

 

 

 

1,101,455

 

 

 

846,994

 

Retail

 

 

274,399

 

 

 

236,514

 

 

 

726,768

 

 

 

617,557

 

Total

 

$

942,417

 

 

$

856,179

 

 

$

2,799,021

 

 

$

2,424,640

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

108,155

 

 

$

113,748

 

 

$

373,326

 

 

$

374,541

 

International wholesale

 

 

164,676

 

 

 

132,460

 

 

 

479,983

 

 

 

349,608

 

Retail

 

 

157,147

 

 

 

140,798

 

 

 

425,075

 

 

 

370,005

 

Total

 

$

429,978

 

 

$

387,006

 

 

$

1,278,384

 

 

$

1,094,154

 

 

 

 

September 30, 2016

 

 

December 31, 2015

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,058,832

 

 

$

1,086,554

 

International wholesale

 

 

891,742

 

 

 

713,424

 

Retail

 

 

276,736

 

 

 

239,900

 

Total

 

$

2,227,310

 

 

$

2,039,878

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

2,800

 

 

$

7,609

 

 

$

14,033

 

 

$

17,025

 

International wholesale

 

 

10,904

 

 

 

3,750

 

 

 

32,578

 

 

 

12,276

 

Retail

 

 

12,013

 

 

 

13,836

 

 

 

34,140

 

 

 

28,898

 

Total

 

$

25,717

 

 

$

25,195

 

 

$

80,751

 

 

$

58,199

 

 

Geographic Information:

The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

491,123

 

 

$

486,168

 

 

$

1,513,261

 

 

$

1,452,036

 

Canada

 

 

39,306

 

 

 

32,663

 

 

 

110,807

 

 

 

83,546

 

Other international (2)

 

 

411,988

 

 

 

337,348

 

 

 

1,174,953

 

 

 

889,058

 

Total

 

$

942,417

 

 

$

856,179

 

 

$

2,799,021

 

 

$

2,424,640

 

 

 

 

September 30, 2016

 

 

December 31, 2015

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

361,147

 

 

$

356,704

 

Canada

 

 

10,216

 

 

 

8,447

 

Other international (2)

 

 

98,774

 

 

 

70,756

 

Total

 

$

470,137

 

 

$

435,907

 

 

(1)

The Company has subsidiaries in Asia, Central America, Europe, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company also has joint ventures in Asia that generate net sales from those regions. The Company also has a subsidiary in Switzerland that generates net sales from that country in addition to net sales to distributors located in numerous non-European countries. External net sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external net sales and external royalties, or from inter-subsidiary net sales, royalties, fees and commissions provided in accordance with certain inter-subsidiary agreements. The resulting earnings of each subsidiary in its respective country are recognized under each respective country’s tax code. Inter-subsidiary revenues and expenses subsequently are eliminated in the Company’s condensed consolidated financial statements and are not included as part of the external net sales reported in different geographic areas.

(2)

Other international includes Asia, Central America, Europe, North America, and South America.

In response to the State Department’s trade restrictions with Sudan and Syria, we do not authorize or permit any distribution or sales of our product in these countries, and we are not aware of any current or past distribution or sales of our product in Sudan or Syria.