Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.10.0.1
Segment and Geographic Reporting
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment and Geographic Reporting

(11)

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

317,224

 

 

$

341,105

 

 

$

706,253

 

 

$

699,537

 

International wholesale

 

 

464,828

 

 

 

358,059

 

 

 

1,042,831

 

 

 

848,511

 

Retail

 

 

352,745

 

 

 

326,770

 

 

 

635,791

 

 

 

550,694

 

Total

 

$

1,134,797

 

 

$

1,025,934

 

 

$

2,384,875

 

 

$

2,098,742

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

119,451

 

 

$

126,000

 

 

$

261,594

 

 

$

265,808

 

International wholesale

 

 

232,918

 

 

 

165,324

 

 

 

512,280

 

 

 

375,638

 

Retail

 

 

208,588

 

 

 

196,997

 

 

 

370,186

 

 

 

323,373

 

Total

 

$

560,957

 

 

$

488,321

 

 

$

1,144,060

 

 

$

964,819

 

 

 

 

June 30, 2018

 

 

December 31, 2017

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,410,775

 

 

$

1,259,119

 

International wholesale

 

 

1,213,115

 

 

 

1,116,928

 

Retail

 

 

381,775

 

 

 

359,035

 

Total

 

$

3,005,665

 

 

$

2,735,082

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

6,292

 

 

$

1,749

 

 

$

17,667

 

 

$

3,282

 

International wholesale

 

 

6,469

 

 

 

19,629

 

 

 

17,407

 

 

 

31,422

 

Retail

 

 

13,593

 

 

 

26,242

 

 

 

25,744

 

 

 

41,798

 

Total

 

$

26,354

 

 

$

47,620

 

 

$

60,818

 

 

$

76,502

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

549,836

 

 

$

558,047

 

 

$

1,125,361

 

 

$

1,080,843

 

Canada

 

 

44,394

 

 

 

38,154

 

 

 

101,435

 

 

 

86,382

 

Other international (2)

 

 

540,567

 

 

 

429,733

 

 

 

1,158,079

 

 

 

931,517

 

Total

 

$

1,134,797

 

 

$

1,025,934

 

 

$

2,384,875

 

 

$

2,098,742

 

 

 

 

June 30, 2018

 

 

December 31, 2017

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

389,819

 

 

$

382,426

 

Canada

 

 

9,983

 

 

 

9,888

 

Other international (2)

 

 

153,772

 

 

 

149,287

 

Total

 

$

553,574

 

 

$

541,601

 

_____________________

(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, 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.