Operating Segments and Geographic Information

6 Months Ended

Jun. 30, 2013

Operating Segments And Geographic Information [Abstract]

Operating Segments And Geographic Information

13. OPERATING SEGMENTS & GEOGRAPHIC INFORMATION

During the first quarter of 2013,  we adjusted our operating segment structure for internal reports reviewed by the chief operating decision maker (“CODM”) by presenting Japan separate from the Asia Pacific segment. This change was made due to recurring amounts of substantial business activity as well as the macroeconomic environment within Japan, which resulted in the need for a regular review of Japan operating results by management and the CODM in order to better evaluate performance and allocate resources for the consolidated business. Segment information for all periods presented has been reclassified to conform to the fiscal 2013 presentation.

As a result of the changes discussed above, we have four reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, Japan and Europe. We also have an “Other businesses” category which aggregates insignificant operating segments that do not meet the reportable threshold and represent manufacturing operations located in Mexico, Italy and Asia. The composition of our reportable operating segments is consistent with that used by our CODM to evaluate performance and allocate resources.

Each of our reportable operating segments derives its revenues from the sale of footwear, apparel and accessories to external customers as well as intersegment sales. Revenues of the “Other businesses” category are primarily made up of intersegment sales. The remaining revenues for the “Other businesses” represent non-footwear product sales to external customers. Intersegment sales are not included in the measurement of segment operating income or regularly reviewed by the CODM and are eliminated when deriving total consolidated revenues.

The primary financial measure utilized by the CODM to evaluate performance and allocate resources is segment operating income. Segment performance evaluation is based primarily on segment results without allocating corporate expenses, or indirect general, administrative and other expenses. Segment profits or losses of our reportable operating segments include adjustments to eliminate intersegment profit or losses on intersegment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as intersegment eliminations. Segment assets consist of cash and cash equivalents, accounts receivable and inventory as these balances are regularly reviewed by the CODM.

The following table sets forth information related to our reportable operating business segments during the three and six months ended June 30, 2013 and 2012:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($ thousands)	2013		2012		2013		2012
Revenues:
Americas	$	146,255	$	134,611	$	275,684	$	251,918
Asia Pacific		111,832		91,625		202,289		159,276
Japan		45,472		55,232		75,831		89,605
Europe		60,170		49,427		121,516		101,769
Total segment revenues		363,729		330,895		675,320		602,568
Other businesses		98		47		163		172
Total consolidated revenues	$	363,827	$	330,942	$	675,483	$	602,740
Operating income:
Americas(1)	$	23,005	$	31,038	$	43,818	$	49,689
Asia Pacific		35,685		29,569		62,788		47,474
Japan		17,463		26,511		25,023		40,667
Europe		11,657		12,103		24,328		26,201
Total segment operating income		87,810		99,221		155,957		164,031
Reconciliation of total segment operating income to income before income taxes:
Other businesses		(5,535)		(2,875)		(9,412)		(5,731)
Intersegment eliminations		15		15		30		39
Unallocated corporate and other(2)		(31,871)		(25,100)		(58,506)		(47,283)
Total consolidated operating income		50,419		71,261		88,069		111,056
Foreign currency transaction (gains) losses, net		814		(1,627)		3,414		2,649
Interest income		(517)		(549)		(823)		(907)
Interest expense		266		132		475		179
Other (income) expense, net		195		(520)		167		(761)
Income before income taxes	$	49,661	$	73,825	$	84,836	$	109,896
Depreciation and amortization:
Americas	$	2,431	$	2,948	$	4,973	$	5,183
Asia Pacific		1,200		994		2,478		2,303
Japan		375		481		776		899
Europe		1,281		685		2,431		1,292
Total segment depreciation and amortization		5,287		5,108		10,658		9,677
Other businesses		2,123		1,517		4,240		3,061
Unallocated corporate and other(2)		2,848		2,279		5,624		4,519
Total consolidated depreciation and amortization	$	10,258	$	8,904	$	20,522	$	17,257

⁽¹⁾Includes $0.2 million for each of the three and six months ended June 30, 2013 and $0.1 million and $0.8 million for each of the three and six months ended June 30, 2012, respectively, of asset impairment charges related to certain underperforming retail locations.

⁽²⁾Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies.

The following table sets forth asset information related to our reportable operating business segments as of June 30, 2013 and December 31, 2012:

	June 30,		December 31,
($ thousands)	2013		2012
Assets:
Americas	$	141,117	$	143,236
Asia Pacific		219,299		170,426
Japan		89,515		111,785
Europe		121,076		85,756
Total segment current assets		571,007		511,203
Other businesses		19,536		14,489
Unallocated corporate and other(1)		21,837		25,738
Deferred tax assets, net		5,628		6,284
Income tax receivable		12,307		5,613
Other receivables		17,293		24,821
Prepaid expenses and other current assets		31,051		24,967
Total current assets		678,659		613,115
Property and equipment, net		88,770		82,241
Intangible assets, net		64,082		59,931
Deferred tax assets, net		33,283		34,112
Other assets		54,167		40,239
Total consolidated assets	$	918,961	$	829,638

⁽¹⁾Corporate assets primarily consist of cash and equivalents.