Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.19.2
Segment and Geographic Reporting
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment and Geographic Reporting

(12)

SEGMENT AND GEOGRAPHIC REPORTING

The Company has three reportable segments – domestic wholesale sales, international wholesale sales, and direct-to-consumer 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, direct-to-consumer sales segments on a combined basis were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

305,307

 

 

$

317,224

 

 

$

652,001

 

 

$

706,253

 

International wholesale

 

 

549,551

 

 

 

464,828

 

 

 

1,177,619

 

 

 

1,042,831

 

Direct-to-consumer

 

 

403,707

 

 

 

352,745

 

 

 

705,701

 

 

 

635,791

 

Total

 

$

1,258,565

 

 

$

1,134,797

 

 

$

2,535,321

 

 

$

2,384,875

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

116,643

 

 

$

119,451

 

 

$

243,094

 

 

$

261,594

 

International wholesale

 

 

249,939

 

 

 

232,918

 

 

 

538,668

 

 

 

512,280

 

Direct-to-consumer

 

 

243,253

 

 

 

208,588

 

 

 

418,582

 

 

 

370,186

 

Total

 

$

609,835

 

 

$

560,957

 

 

$

1,200,344

 

 

$

1,144,060

 

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,417,264

 

 

$

1,428,463

 

International wholesale

 

 

1,766,422

 

 

 

1,423,048

 

Direct-to-consumer

 

 

1,237,550

 

 

 

376,744

 

Total

 

$

4,421,236

 

 

$

3,228,255

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

50,291

 

 

$

6,292

 

 

$

58,025

 

 

$

17,667

 

International wholesale

 

 

23,984

 

 

 

6,469

 

 

 

45,976

 

 

 

17,407

 

Direct-to-consumer

 

 

13,311

 

 

 

13,593

 

 

 

21,729

 

 

 

25,744

 

Total

 

$

87,586

 

 

$

26,354

 

 

$

125,730

 

 

$

60,818

 

 

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

557,836

 

 

$

549,836

 

 

$

1,097,241

 

 

$

1,125,361

 

Canada

 

 

44,736

 

 

 

44,394

 

 

 

92,324

 

 

 

101,435

 

Other international (2)

 

 

655,993

 

 

 

540,567

 

 

 

1,345,756

 

 

 

1,158,079

 

Total

 

$

1,258,565

 

 

$

1,134,797

 

 

$

2,535,321

 

 

$

2,384,875

 

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

 

436,701

 

 

 

385,584

 

Canada

 

 

8,168

 

 

 

9,081

 

Other international (2)

 

 

238,385

 

 

 

190,792

 

Total

 

$

683,254

 

 

$

585,457

 

 

(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 and Mexico 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, the Company does not authorize or permit any distribution or sales of its product in these countries, and the Company is not aware of any current or past distribution or sales of our product in Sudan or Syria.