Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.7.0.1
Segment and Geographic Reporting
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment and Geographic Reporting

(9)

SEGMENT AND GEOGRAPHIC REPORTING

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

341,105

 

 

$

320,498

 

 

$

699,537

 

 

$

680,768

 

International wholesale

 

 

358,059

 

 

 

303,432

 

 

 

848,511

 

 

 

723,467

 

Retail

 

 

326,770

 

 

 

253,880

 

 

 

550,694

 

 

 

452,369

 

Total

 

$

1,025,934

 

 

$

877,810

 

 

$

2,098,742

 

 

$

1,856,604

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

126,000

 

 

$

124,656

 

 

$

265,808

 

 

$

265,171

 

International wholesale

 

 

165,324

 

 

 

139,288

 

 

 

375,638

 

 

 

315,308

 

Retail

 

 

196,997

 

 

 

152,310

 

 

 

323,373

 

 

 

267,927

 

Total

 

$

488,321

 

 

$

416,254

 

 

$

964,819

 

 

$

848,406

 

 

 

 

June 30,

2017

 

 

December 31, 2016

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,177,172

 

 

$

1,161,719

 

International wholesale

 

 

1,106,639

 

 

 

954,874

 

Retail

 

 

325,479

 

 

 

277,077

 

Total

 

$

2,609,290

 

 

$

2,393,670

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,749

 

 

$

1,096

 

 

$

3,282

 

 

$

11,232

 

International wholesale

 

 

19,629

 

 

 

5,695

 

 

 

31,422

 

 

 

21,674

 

Retail

 

 

26,242

 

 

 

13,045

 

 

 

41,798

 

 

 

22,128

 

Total

 

$

47,620

 

 

$

19,836

 

 

$

76,502

 

 

$

55,034

 

 

Geographic Information:

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

558,047

 

 

$

509,902

 

 

$

1,080,843

 

 

$

1,022,139

 

Canada

 

 

38,154

 

 

 

34,433

 

 

 

86,382

 

 

 

71,501

 

Other international (2)

 

 

429,733

 

 

 

333,475

 

 

 

931,517

 

 

 

762,964

 

Total

 

$

1,025,934

 

 

$

877,810

 

 

$

2,098,742

 

 

$

1,856,604

 

 

 

 

June 30,

2017

 

 

December 31, 2016

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

378,495

 

 

$

374,459

 

Canada

 

 

10,819

 

 

 

10,410

 

Other international (2)

 

 

138,127

 

 

 

109,604

 

Total

 

$

527,441

 

 

$

494,473

 

 

(1)

The Company has subsidiaries in Asia, Central America, Europe, the Middle East, North America, and South America that generate net sales within those respective regions and in some cases the neighboring regions. The Company 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, the Middle East, North America (excluding U.S.) 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.