| Segment and Geographic Reporting |
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(11)
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SEGMENT AND GEOGRAPHIC REPORTING
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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):
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Three Months Ended June 30,
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Six Months Ended June 30,
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2018
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2017
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2018
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2017
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Net sales:
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Domestic wholesale
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$
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317,224
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$
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341,105
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$
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706,253
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$
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699,537
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International wholesale
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464,828
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358,059
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1,042,831
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848,511
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Retail
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352,745
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326,770
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635,791
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550,694
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Total
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$
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1,134,797
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$
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1,025,934
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$
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2,384,875
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$
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2,098,742
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Three Months Ended June 30,
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Six Months Ended June 30,
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2018
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2017
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2018
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2017
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Gross profit:
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Domestic wholesale
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$
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119,451
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$
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126,000
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$
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261,594
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$
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265,808
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International wholesale
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232,918
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165,324
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512,280
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375,638
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Retail
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208,588
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196,997
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370,186
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323,373
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Total
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$
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560,957
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$
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488,321
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$
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1,144,060
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$
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964,819
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June 30, 2018
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December 31, 2017
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Identifiable assets:
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Domestic wholesale
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$
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1,410,775
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$
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1,259,119
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International wholesale
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1,213,115
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1,116,928
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Retail
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381,775
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359,035
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Total
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$
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3,005,665
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$
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2,735,082
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Three Months Ended June 30,
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Six Months Ended June 30,
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2018
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2017
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2018
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2017
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Additions to property, plant and equipment:
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Domestic wholesale
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$
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6,292
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$
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1,749
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$
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17,667
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$
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3,282
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International wholesale
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6,469
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19,629
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17,407
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31,422
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Retail
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13,593
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26,242
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25,744
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41,798
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Total
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$
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26,354
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$
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47,620
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$
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60,818
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$
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76,502
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Geographic Information:
The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands):
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Three Months Ended June 30,
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Six Months Ended June 30,
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2018
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2017
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2018
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2017
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Net Sales (1):
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United States
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$
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549,836
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$
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558,047
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$
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1,125,361
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$
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1,080,843
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Canada
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44,394
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38,154
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101,435
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86,382
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Other international (2)
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540,567
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429,733
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1,158,079
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931,517
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Total
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$
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1,134,797
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$
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1,025,934
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$
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2,384,875
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$
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2,098,742
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June 30, 2018
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December 31, 2017
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Property, plant and equipment, net:
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United States
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$
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389,819
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$
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382,426
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Canada
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9,983
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9,888
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Other international (2)
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153,772
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149,287
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Total
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$
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553,574
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$
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541,601
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_____________________
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(1)
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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.
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(2)
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Other international includes Asia, Central America, Europe, the Middle East, and South America.
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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.
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