Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.21.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment and Geographic Information

(9)

SEGMENT AND GEOGRAPHIC INFORMATION

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. The following summarizes the Company’s operations by segment and geographic area for the periods indicated:  

 

 

Three Months Ended March 31,

 

(in thousands)

 

2021

 

 

2020

 

Sales

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

374,665

 

 

$

377,962

 

International Wholesale

 

 

712,175

 

 

 

575,199

 

Direct-to-Consumer

 

 

341,578

 

 

 

289,184

 

Total

 

$

1,428,418

 

 

$

1,242,345

 

 

Gross profit

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

139,924

 

 

$

145,277

 

International Wholesale

 

 

320,781

 

 

 

240,475

 

Direct-to-Consumer

 

 

218,917

 

 

 

161,916

 

Total

 

$

679,622

 

 

$

547,668

 

 

Sales (1)

 

 

 

 

 

 

 

 

United States

 

$

602,117

 

 

$

555,174

 

International

 

 

826,301

 

 

 

687,171

 

Total

 

$

1,428,418

 

 

$

1,242,345

 

 

(1)

During the three months ended March 31, 2021 and 2020, sales in China were $250.6 million and $91.3 million.

 

The Company’s sales to its five largest customers accounted for approximately 9.5% and 11.4% of total sales for the three months ended March 31, 2021 and 2020.

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

 

(in thousands)

 

As of

March 31, 2021

 

 

As of

December 31, 2020

 

Identifiable assets

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

1,971,630

 

 

$

1,945,681

 

International Wholesale

 

 

2,616,429

 

 

 

2,436,568

 

Direct-to-Consumer

 

 

1,397,507

 

 

 

1,430,120

 

Total

 

$

5,985,566

 

 

$

5,812,369

 

 

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2021

 

 

2020

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

64,121

 

 

$

11,818

 

International Wholesale

 

 

10,813

 

 

 

44,900

 

Direct-to-Consumer

 

 

9,303

 

 

 

18,169

 

Total

 

$

84,237

 

 

$

74,887

 

 

(in thousands)

 

As of

March 31, 2021

 

 

As of

December 31, 2020

 

Property, plant and equipment, net (1)

 

 

 

 

 

 

 

 

United States

 

$

588,542

 

 

$

535,648

 

International

 

 

403,970

 

 

 

399,793

 

Total

 

$

992,512

 

 

$

935,441

 

 

(1)

Property, plant and equipment, net in China was $245.4 million and $241.6 million at March 31, 2021 and December 31, 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 $3.7 billion and $3.1 billion at March 31, 2021 and December 31, 2020, 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 three months ended March 31, 2021 and 2020 were $6.3 million and $1.5 million.

The Company’s accounts receivables, excluding the allowance for bad debts, sales returns and chargebacks, in different geographic areas are summarized as follows:

 

(in thousands)

 

As of

March 31, 2021

 

 

As of

December 31, 2020

 

Domestic Accounts Receivable

 

$

314,131

 

 

$

230,546

 

Foreign Accounts Receivable

 

 

532,173

 

 

 

437,816

 

 

For the periods presented below, the Company’s top five manufacturers produced, as a percentage of total production, the following:

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Manufacturer #1

 

 

18.6

%

 

 

24.9

%

Manufacturer #2

 

 

5.0

%

 

 

7.5

%

Manufacturer #3

 

 

4.8

%

 

 

6.7

%

Manufacturer #4

 

 

4.8

%

 

 

3.9

%

Manufacturer #5

 

 

4.3

%

 

 

3.7

%

 

 

 

37.5

%

 

 

46.7

%