Operating Segments & Geographic Information

6 Months Ended

Jun. 30, 2014

Operating Segments & Geographic Information [Abstract]

Operating Segments & Geographic Information

15. OPERATING SEGMENTS & GEOGRAPHIC INFORMATION

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 Chief Operating Decision Maker (“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, 2014 and 2013:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($ thousands)	2014		2013		2014		2013
Revenues:
Americas	$	141,568	$	146,255	$	258,688	$	275,684
Asia Pacific		121,486		111,832		223,351		202,289
Japan		41,195		45,472		70,245		75,831
Europe		72,757		60,170		136,893		121,516
Total segment revenues		377,006		363,729		689,177		675,320
Other businesses		(86)		98		172		163
Total consolidated revenues	$	376,920	$	363,827	$	689,349	$	675,483
Operating income:
Americas	$	24,920	$	23,005	$	38,357	$	43,818
Asia Pacific		33,895		35,685		61,578		62,788
Japan		13,868		17,463		20,330		25,023
Europe		12,026		11,657		19,565		24,328
Total segment operating income		84,709		87,810		139,830		155,957
Reconciliation of total segment operating income to income before income taxes:
Other businesses		(4,589)		(5,535)		(8,345)		(9,412)
Intersegment eliminations		15		15		30		30
Unallocated corporate and other (1)		(38,224)		(31,871)		(72,782)		(58,506)
Total consolidated operating income		41,911		50,419		58,733		88,069
Foreign currency transaction losses, net		220		814		2,988		3,414
Interest income		(403)		(517)		(880)		(823)
Interest expense		128		266		319		475
Other (income) expense, net		(30)		195		(171)		167
Income before income taxes	$	41,996	$	49,661	$	56,477	$	84,836
Depreciation and amortization:
Americas	$	3,239	$	2,431	$	5,687	$	4,973
Asia Pacific		1,469		1,200		2,875		2,478
Japan		369		375		703		776
Europe		912		1,281		1,814		2,431
Total segment depreciation and amortization		5,989		5,287		11,079		10,658
Other businesses		2,135		2,123		3,734		4,240
Unallocated corporate and other (1)		3,254		2,848		5,938		5,624
Total consolidated depreciation and amortization	$	11,378	$	10,258	$	20,751	$	20,522

(1)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, 2014 and December 31, 2013:

	June 30,		December 31,
($ thousands)	2014		2013
Assets:
Americas	$	184,547	$	139,855
Asia Pacific		219,988		177,343
Japan		51,667		51,155
Europe		178,500		137,701
Total segment current assets		634,702		506,054
Other businesses		16,274		14,093
Unallocated corporate and other(1)		145,527		63,743
Deferred tax assets, net		4,587		4,440
Income tax receivable		14,426		10,630
Other receivables		17,295		11,942
Prepaid expenses and other current assets		37,923		29,175
Total current assets		870,734		640,077
Property and equipment, net		83,316		86,971
Intangible assets, net		85,747		74,822
Goodwill		2,479		-
Deferred tax assets, net		18,614		19,628
Other assets		40,983		53,661
Total consolidated assets	$	1,101,873	$	875,159

(1)Corporate assets primarily consist of cash and equivalents which increased predominately due to net cash proceeds from our investment with Blackstone. See Note 13 – Series A Preferred Stock for further details regarding the preferred share offering.