Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Reporting

v3.8.0.1
Segment and Geographic Reporting
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment and Geographic Reporting

(10)

SEGMENT AND GEOGRAPHIC REPORTING

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

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Net sales:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

389,029

 

 

$

358,432

 

International wholesale

 

 

578,003

 

 

 

490,452

 

Retail

 

 

283,046

 

 

 

223,924

 

Total

 

$

1,250,078

 

 

$

1,072,808

 

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Gross profit:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

142,143

 

 

$

139,808

 

International wholesale

 

 

279,362

 

 

 

210,314

 

Retail

 

 

161,599

 

 

 

126,376

 

Total

 

$

583,104

 

 

$

476,498

 

 

 

 

March 31,

2018

 

 

December 31, 2017

 

Identifiable assets:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,367,211

 

 

$

1,259,119

 

International wholesale

 

 

1,196,652

 

 

 

1,116,928

 

Retail

 

 

372,121

 

 

 

359,035

 

Total

 

$

2,935,984

 

 

$

2,735,082

 

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Additions to property, plant and equipment:

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

11,375

 

 

$

1,533

 

International wholesale

 

 

10,938

 

 

 

11,793

 

Retail

 

 

12,151

 

 

 

15,556

 

Total

 

$

34,464

 

 

$

28,882

 

 

Geographic Information:

The following summarizes the Company’s operations in different geographic areas for the periods indicated (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Net Sales (1):

 

 

 

 

 

 

 

 

United States

 

$

575,525

 

 

$

522,796

 

Canada

 

 

57,040

 

 

 

48,228

 

Other international (2)

 

 

617,513

 

 

 

501,784

 

Total

 

$

1,250,078

 

 

$

1,072,808

 

 

 

 

March 31,

2018

 

 

December 31, 2017

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

United States

 

$

391,607

 

 

$

382,426

 

Canada

 

 

9,421

 

 

 

9,888

 

Other international (2)

 

 

151,512

 

 

 

149,287

 

Total

 

$

552,540

 

 

$

541,601

 

_____________________

(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 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, we do not authorize or permit any distribution or sales of our product in these countries, and we are not aware of any current or past distribution or sales of our product in Sudan or Syria.