Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.20.2
Segment and Geographic Reporting
9 Months Ended
Sep. 30, 2020
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. Management evaluates segment performance based primarily on 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. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

318,449

 

 

$

299,634

 

 

$

827,148

 

 

$

951,635

 

International wholesale

 

 

643,393

 

 

 

646,596

 

 

 

1,603,774

 

 

 

1,824,214

 

Direct-to-consumer

 

 

339,044

 

 

 

407,768

 

 

 

841,781

 

 

 

1,113,470

 

Total

 

$

1,300,886

 

 

$

1,353,998

 

 

$

3,272,703

 

 

$

3,889,319

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

123,122

 

 

$

111,205

 

 

$

318,824

 

 

$

354,299

 

International wholesale

 

 

295,565

 

 

 

298,799

 

 

 

716,489

 

 

 

837,467

 

Direct-to-consumer

 

 

206,434

 

 

 

243,060

 

 

 

506,041

 

 

 

661,642

 

Total

 

$

625,121

 

 

$

653,064

 

 

$

1,541,354

 

 

$

1,853,408

 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,934,991

 

 

$

1,472,323

 

International wholesale

 

 

2,397,446

 

 

 

2,100,042

 

Direct-to-consumer

 

 

1,378,957

 

 

 

1,320,578

 

Total

 

$

5,711,394

 

 

$

4,892,943

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

36,036

 

 

$

7,976

 

 

$

71,245

 

 

$

66,001

 

International wholesale

 

 

13,647

 

 

 

27,947

 

 

 

96,091

 

 

 

73,922

 

Direct-to-consumer

 

 

13,881

 

 

 

13,010

 

 

 

45,880

 

 

 

34,740

 

Total

 

$

63,564

 

 

$

48,933

 

 

$

213,216

 

 

$

174,663

 

 

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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Sales (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

537,528

 

 

$

558,173

 

 

$

1,386,522

 

 

$

1,655,413

 

Canada

 

 

36,995

 

 

 

46,576

 

 

 

97,203

 

 

 

138,900

 

Other international (2)

 

 

726,363

 

 

 

749,249

 

 

 

1,788,978

 

 

 

2,095,006

 

Total

 

$

1,300,886

 

 

$

1,353,998

 

 

$

3,272,703

 

 

$

3,889,319

 

 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

491,600

 

 

$

439,132

 

Canada

 

 

5,959

 

 

 

7,286

 

Other international (2)

 

 

372,603

 

 

 

292,507

 

Total

 

$

870,162

 

 

$

738,925

 

 

(1)

The Company has subsidiaries in Asia, Central America, Europe, the Middle East, North America, and South America that generate sales within those respective countries and in some cases the neighboring regions. The Company has joint ventures in Asia, Mexico, and Israel that generate sales from those regions. The Company also has a subsidiary in Switzerland that generates sales from that country in addition to sales to distributors located in numerous non-European countries. External sales are attributable to geographic regions based on the location of each of the Company’s subsidiaries. A subsidiary may earn revenue from external sales and external royalties, or from inter-subsidiary 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 consolidated financial statements and are not included as part of the external sales reported in different geographic areas.

(2)

Other international consists of Asia, Mexico, 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.