Annual report pursuant to Section 13 and 15(d)

Segment and Geographic Information

v3.22.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment and Geographic Information

(13)

SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s operations and segments are organized along its distribution channels with 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. The following summarizes the Company’s operations by segment and geographic area:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2021

 

 

2020

 

 

2019

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

1,438,038

 

 

$

1,126,564

 

 

$

1,247,550

 

International Wholesale

 

 

3,025,479

 

 

 

2,257,846

 

 

 

2,462,632

 

Direct-to-Consumer

 

 

1,821,512

 

 

 

1,213,004

 

 

 

1,509,869

 

Total

 

$

6,285,029

 

 

$

4,597,414

 

 

$

5,220,051

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

523,165

 

 

$

431,603

 

 

$

457,944

 

Gross margin

 

 

36.4

%

 

 

38.3

%

 

 

36.7

%

International Wholesale

 

 

1,364,347

 

 

 

1,023,183

 

 

 

1,133,573

 

Gross margin

 

 

45.1

%

 

 

45.3

%

 

 

46.0

%

Direct-to-Consumer

 

 

1,211,700

 

 

 

734,995

 

 

 

899,640

 

Gross margin

 

 

66.5

%

 

 

60.6

%

 

 

59.6

%

Total

 

$

3,099,212

 

 

$

2,189,781

 

 

$

2,491,157

 

Sales (1)

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

2,553,056

 

 

$

1,913,409

 

 

$

2,197,391

 

International

 

 

3,731,973

 

 

 

2,684,005

 

 

 

3,022,660

 

Total

 

$

6,285,029

 

 

$

4,597,414

 

 

$

5,220,051

 

(1)

During the years ended December 31, 2021, 2020 and 2019, sales in China were $1,247.9 million, $924.5 million and $850.0 million.

The Company’s sales to its five largest customers accounted for approximately 8.6%, 8.8% and 9.6% for the years ended December 31, 2021, 2020 and 2019.

The following summarizes the Company’s assets by segment and geographic area:

 

 

 

As of December 31,

 

(in thousands)

 

2021

 

 

2020

 

Identifiable assets

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

1,939,857

 

 

$

1,945,681

 

International Wholesale

 

 

3,128,996

 

 

 

2,436,568

 

Direct-to-Consumer

 

 

1,422,427

 

 

 

1,430,120

 

Total

 

$

6,491,280

 

 

$

5,812,369

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2021

 

 

2020

 

 

2019

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

195,060

 

 

$

129,165

 

 

$

75,037

 

International Wholesale

 

 

54,248

 

 

 

120,983

 

 

 

109,205

 

Direct-to-Consumer

 

 

60,366

 

 

 

59,768

 

 

 

51,869

 

Total

 

$

309,674

 

 

$

309,916

 

 

$

236,111

 

 

 

 

As of December 31,

 

(in thousands)

 

2021

 

 

2020

 

Property, plant and equipment, net (1)

 

 

 

 

 

 

 

 

United States

 

$

708,763

 

 

$

535,648

 

International

 

 

420,146

 

 

 

399,793

 

Total

 

$

1,128,909

 

 

$

935,441

 

(1)Property, plant and equipment, net in China was $255.4 million and $241.6 million at December 31, 2021 and 2020.

 

 

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 $4.2 billion and $3.1 billion at December 31, 2021 and 2020.

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 additions to the provision for expected credit losses charged to expense for the years ended December 31, 2021, 2020 and 2019 were $3.3 million, $18.7 million and $2.7 million.

The Company’s accounts receivables, excluding allowances, in different geographic areas are summarized as follows:

 

 

As of December 31,

 

(in thousands)

 

2021

 

 

2020

 

Domestic Accounts Receivable

 

$

270,404

 

 

$

230,546

 

Foreign Accounts Receivable

 

 

525,073

 

 

 

437,816

 

 

The Company’s top five manufacturers produced the following:

 

 

 

Year Ended December 31,

 

(Percentage of Total Production)

 

2021

 

 

2020

 

 

2019

 

Manufacturer #1

 

 

18.0

 

 

 

21.0

 

 

 

16.0

 

Manufacturer #2

 

 

5.3

 

 

 

6.2

 

 

 

7.3

 

Manufacturer #3

 

 

4.8

 

 

 

5.8

 

 

 

7.2

 

Manufacturer #4

 

 

4.6

 

 

 

4.9

 

 

 

5.1

 

Manufacturer #5

 

 

4.4

 

 

 

4.2

 

 

 

5.0

 

 

 

 

37.1

 

 

 

42.1

 

 

 

40.6