| Segment and Geographic Information |
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(13)
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SEGMENT AND GEOGRAPHIC INFORMATION
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The Company has three reportable segments – Domestic Wholesale, International Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. All other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. Sales, gross profit and identifiable assets for the Company’s segments were as follows:
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Year Ended December 31,
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(in thousands)
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2020
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2019
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2018
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Sales
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Domestic Wholesale
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$
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1,126,564
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$
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1,247,550
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$
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1,259,615
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International Wholesale
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2,257,846
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2,462,632
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2,054,770
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Direct-to-Consumer
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1,213,004
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1,509,869
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1,327,683
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Total
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$
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4,597,414
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$
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5,220,051
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$
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4,642,068
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Gross profit
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Domestic Wholesale
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$
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431,603
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$
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457,944
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$
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468,340
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International Wholesale
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1,023,183
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1,133,573
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976,739
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Direct-to-Consumer
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734,995
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899,640
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778,526
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Total
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$
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2,189,781
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$
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2,491,157
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$
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2,223,605
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Additions to property, plant and equipment
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Domestic Wholesale
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$
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129,165
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$
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75,037
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$
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29,717
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International Wholesale
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120,983
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109,205
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63,316
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Direct-to-Consumer
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59,768
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51,869
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50,003
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Total
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$
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309,916
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$
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236,111
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$
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143,036
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As of December 31,
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(in thousands)
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2020
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2019
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Identifiable assets
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Domestic Wholesale
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$
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1,945,681
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$
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1,472,323
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International Wholesale
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2,436,568
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2,100,042
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Direct-to-Consumer
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1,430,120
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1,320,578
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Total
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$
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5,812,369
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$
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4,892,943
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The following summarizes the Company’s operations in different geographic areas:
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Year Ended December 31,
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(in thousands)
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2020
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2019
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2018
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Sales (1)
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United States
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$
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1,913,409
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$
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2,197,391
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$
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2,128,100
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International
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2,684,005
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3,022,660
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2,513,968
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Total
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$
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4,597,414
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$
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5,220,051
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$
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4,642,068
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As of December 31,
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(in thousands)
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2020
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2019
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Property, plant and equipment, net (1)
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United States
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$
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535,648
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$
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439,132
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International
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399,793
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299,793
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Total
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$
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935,441
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$
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738,925
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(1)
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During the years ended December 31, 2020, 2019 and 2018, sales in China were $924.5 million, $850.0 million and $744.0 million. Property, plant and equipment, net in China was $241.6 million and $146.1 million at December 31, 2020 and 2019.
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During the years ended December 31, 2020, 2019 and 2018, sales to the five largest customers were approximately 8.8%, 9.6% and 10.4%.
The majority of the Company’s products are produced in China and Vietnam. The Company diversifies manufacturing among various factories to reduce risk.
The Company’s top five manufacturers produced the following:
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Percentage of Total Production
Year Ended December 31,
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2020
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2019
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2018
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Manufacturer #1
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21.0
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%
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16.0
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%
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12.8
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%
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Manufacturer #2
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6.2
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%
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7.3
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%
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10.1
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%
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Manufacturer #3
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5.8
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%
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7.2
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%
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8.6
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%
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Manufacturer #4
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4.9
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%
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5.1
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%
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5.4
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%
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Manufacturer #5
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4.2
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%
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5.0
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%
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5.0
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%
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42.1
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%
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40.6
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%
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41.9
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%
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Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and operating lease ROU assets. Net assets held outside the U.S. were $3.1 billion and $2.6 billion at December 31, 2020 and 2019, respectively.
The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s credit losses charged to expense for the years ended December 31, 2020, 2019 and 2018 were $19.0 million, $31.6 million and $8.0 million.
The Company’s accounts receivables, excluding the allowance for bad debts, sales returns and chargebacks, in different geographic areas are summarized as follows:
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As of December 31,
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(in thousands)
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2020
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2019
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Domestic Accounts Receivable
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$
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230,546
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$
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228,533
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Foreign Accounts Receivable
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437,816
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440,876
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