| Segment and Geographic Information |
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(13)
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Segment and Geographic Information
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During the first quarter of 2022, the Company refined the way in which management assesses performance and allocates resources and now presents its reportable segment results as Wholesale and Direct-to-Consumer. Comparative periods have been recast to reflect these changes. Management continues to evaluate segment performance based primarily on sales and gross margin. 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:
Segment Information
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Year Ended December 31,
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(in thousands)
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2022
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2021
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2020
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Wholesale sales
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$
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4,632,429
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$
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3,758,640
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$
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2,835,010
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Gross profit
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1,669,276
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1,437,517
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1,112,558
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Gross margin
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36.0
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%
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38.2
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%
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39.2
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%
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Direct-to-Consumer sales
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$
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2,812,121
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$
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2,551,547
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$
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1,778,420
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Gross profit
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1,846,081
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1,686,854
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1,093,240
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Gross margin
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65.6
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%
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66.1
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%
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61.5
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%
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|
|
|
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Total sales
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$
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7,444,550
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$
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6,310,187
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$
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4,613,430
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Gross profit
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3,515,357
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3,124,371
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2,205,798
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Gross margin
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47.2
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%
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49.5
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%
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47.8
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%
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As of December 31,
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(in thousands)
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2022
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2021
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Identifiable assets
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Wholesale
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$
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3,682,860
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$
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3,816,513
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Direct-to-Consumer
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3,210,627
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2,674,767
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Total
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$
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6,893,487
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$
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6,491,280
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Year Ended December 31,
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(in thousands)
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2022
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2021
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2020
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Additions to property, plant and equipment
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Wholesale
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$
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255,311
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$
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245,008
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$
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228,448
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Direct-to-Consumer
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103,681
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64,666
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81,468
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Total
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$
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358,992
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$
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309,674
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$
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309,916
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Geographic Information
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Year Ended December 31,
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(in thousands)
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2022
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2021
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2020
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Geographic sales
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Domestic Wholesale
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$
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1,831,642
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$
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1,448,339
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$
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1,132,425
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Domestic Direct-to-Consumer
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1,243,511
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1,115,018
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786,844
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Total domestic sales
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3,075,153
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2,563,357
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1,919,269
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International Wholesale
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2,800,787
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2,310,302
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1,702,585
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International Direct-to-Consumer
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1,568,610
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1,436,528
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991,576
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Total international sales
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4,369,397
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3,746,830
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2,694,161
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Total sales
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$
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7,444,550
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$
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6,310,187
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$
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4,613,430
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Regional Sales
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Americas (AMER)
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$
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3,854,392
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$
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3,152,304
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$
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2,292,540
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Europe, Middle East & Africa (EMEA)
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1,699,215
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1,282,902
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899,590
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Asia Pacific (APAC)
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1,890,943
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1,874,981
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1,421,300
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Total sales
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$
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7,444,550
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$
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6,310,187
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$
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4,613,430
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China sales
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$
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1,062,724
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$
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1,247,949
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$
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924,482
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As of December 31,
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(in thousands)
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2022
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2021
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Property, plant and equipment, net
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Domestic
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$
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870,924
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$
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708,763
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International
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474,446
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420,146
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Total
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$
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1,345,370
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$
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1,128,909
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China property plant and equipment, net
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$
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264,422
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$
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255,421
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The Company’s sales to its five largest customers accounted for approximately 9.6%, 8.6%, and 8.8% of total sales for the years ended December 31, 2022, 2021 and 2020.
Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $4.4 billion and $4.2 billion at December 31, 2022 and December 31, 2021.
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 for the year ended December 31, 2022, 2021, and 2020 were $5.3 million, $3.3 million, and $18.7 million.
The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows:
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As of December 31,
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(in thousands)
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2022
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2021
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Domestic Accounts Receivable
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$
|
310,138
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$
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270,404
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International Accounts Receivable
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597,621
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525,073
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The Company’s top five manufacturers produced the following:
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Year Ended December 31,
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(percentage of total production)
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2022
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2021
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2020
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Manufacturer #1
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16.5
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18.0
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21.0
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Manufacturer #2
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7.0
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5.3
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6.2
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Manufacturer #3
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5.2
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4.8
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5.8
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Manufacturer #4
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5.2
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4.6
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4.9
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Manufacturer #5
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5.1
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4.4
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4.2
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Total
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39.0
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|
|
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37.1
|
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|
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42.1
|
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