Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.10.0.1
Segment and Geographic Reporting
9 Months Ended
Sep. 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

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

285,406

 

 

$

294,127

 

 

$

991,658

 

 

$

993,664

 

International wholesale

 

 

531,123

 

 

 

475,177

 

 

 

1,573,955

 

 

 

1,323,688

 

Retail

 

 

359,866

 

 

 

325,525

 

 

 

995,657

 

 

 

876,219

 

Total

 

$

1,176,395

 

 

$

1,094,829

 

 

$

3,561,270

 

 

$

3,193,571

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

110,572

 

 

$

110,693

 

 

$

372,166

 

 

$

376,502

 

International wholesale

 

 

240,056

 

 

 

219,260

 

 

 

752,336

 

 

 

594,898

 

Retail

 

 

213,238

 

 

 

190,034

 

 

 

583,424

 

 

 

513,406

 

Total

 

$

563,866

 

 

$

519,987

 

 

$

1,707,926

 

 

$

1,484,806

 

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,340,561

 

 

$

1,259,119

 

International wholesale

 

 

1,262,200

 

 

 

1,116,928

 

Retail

 

 

401,714

 

 

 

359,035

 

Total

 

$

3,004,475

 

 

$

2,735,082

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

10,654

 

 

$

5,418

 

 

$

28,320

 

 

$

8,699

 

International wholesale

 

 

13,711

 

 

 

14,461

 

 

 

31,118

 

 

 

45,884

 

Retail

 

 

12,126

 

 

 

5,782

 

 

 

37,871

 

 

 

47,580

 

Total

 

$

36,491

 

 

$

25,661

 

 

$

97,309

 

 

$

102,163

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

523,281

 

 

$

514,235

 

 

$

1,648,642

 

 

$

1,595,078

 

Canada

 

 

44,646

 

 

 

46,979

 

 

 

146,080

 

 

 

133,362

 

Other international (2)

 

 

608,468

 

 

 

533,615

 

 

 

1,766,548

 

 

 

1,465,131

 

Total

 

$

1,176,395

 

 

$

1,094,829

 

 

$

3,561,270

 

 

$

3,193,571

 

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

392,891

 

 

$

382,426

 

Canada

 

 

9,730

 

 

 

9,888

 

Other international (2)

 

 

162,774

 

 

 

149,287

 

Total

 

$

565,395

 

 

$

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.