Operating Segments and Geographic Information

12 Months Ended

Dec. 31, 2012

Operating Segments And Geographic Information [Abstract]

Operating Segments And Geographic Information

14. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION

We have three reportable operating segments: Americas, Europe and Asia. 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 and Italy. 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. Revenues of the “Other businesses” category are primarily made up of intersegment sales which are eliminated when deriving total consolidated revenues. The remaining revenues for the “Other businesses” represent non-footwear product sales to external customers. Segment assets consist of cash and cash equivalents, accounts receivable and inventory.

Segment operating income is the primary measure used by our CODM to evaluate segment operating performance and to decide how to allocate resources to segments. 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.

During the first quarter of 2012, we changed the internal reports used by our CODM to align the definition of our segment operating income with “Income from operations.” Previously, segment operating income excluded asset impairment charges and restructuring costs not included in cost of sales. Segment operating income also reflects the reclassification of “Foreign currency transaction (gains) losses, net” from “Income from operations” on the consolidated statements of income. See Note 1 – Organization & Summary of Significant Accounting Policies for further discussion. Segment information for all periods presented has been reclassified to reflect these changes.

The following tables set forth information related to our reportable operating business segments as of and for the years ended December 31, 2012, 2011 and 2010.

		Year Ended December 31,
($ thousands)	2012		2011		2010
Revenues:
Americas	$	495,852	$	448,077	$	374,873
Asia		457,411		381,767		285,017
Europe		169,464		170,868		127,686
Total segment revenues		1,122,727		1,000,712		787,576
Other businesses		574		191		2,119
Total consolidated revenues	$	1,123,301	$	1,000,903	$	789,695
Operating income:
Americas	$	85,538	$	70,532	$	64,099
Asia		140,828		123,918		89,248
Europe		21,678		37,106		22,258
Total segment operating income		248,044		231,556		175,605
Reconciliation of total segment operating income to income before income taxes:
Other businesses		(10,805)		(14,128)		(23,321)
Intersegment eliminations		60		66		1,360
Unallocated corporate and other(1)		(91,125)		(86,415)		(75,522)
Total consolidated operating income		146,174		131,079		78,122
Interest expense		837		853		657
Foreign currency transaction (gains) losses, net		2,500		(4,886)		(2,326)
Other income, net		(2,711)		(1,578)		(1,001)
Income before income taxes	$	145,548	$	136,690	$	80,792
Depreciation and amortization:
Americas	$	9,849	$	9,203	$	8,935
Asia		6,922		6,084		6,772
Europe		3,116		2,584		2,018
Total segment depreciation and amortization		19,887		17,871		17,725
Other businesses		7,003		11,657		13,351
Unallocated corporate and other(1)		9,804		7,735		5,983
Total consolidated depreciation and amortization	$	36,694	$	37,263	$	37,059

⁽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.

	December 31,
($ thousands)	2012		2011
Assets:
Americas	$	143,236	$	97,188
Asia		282,211		239,281
Europe		85,756		83,871
Total segment current assets		511,203		420,340
Other businesses		14,489		29,851
Unallocated corporate and other(1)		25,738		21,783
Deferred tax assets, net		6,284		7,047
Income tax receivable		5,613		5,828
Other receivables		24,821		20,295
Prepaid expenses and other current assets		24,967		20,199
Total current assets		613,115		525,343
Property and equipment, net		82,241		67,684
Intangible assets, net		59,931		48,641
Deferred tax assets, net		34,112		30,375
Other assets		40,239		23,410
Total consolidated assets	$	829,638	$	695,453

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

There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2012, 2011 and 2010. The following table sets forth certain geographical and other information regarding our revenues during the years ended December 31, 2012, 2011 and 2010.

		Year Ended December 31,
($ thousands)	2012		2011		2010
Product:
Footwear	$	1,076,210	$	956,816	$	753,951
Other		47,091		44,087		35,744
Total revenues	$	1,123,301	$	1,000,903	$	789,695
Location:
United States	$	396,121	$	355,560	$	299,026
International		727,180		645,343		490,669
Total revenues	$	1,123,301	$	1,000,903	$	789,695
Foreign country revenues in excess of 10% of total revenues:
Japan	$	164,565	$	154,925	$	111,764

The following table sets forth geographical information regarding our property and equipment assets as of December 31, 2012 and 2011.

	December 31,
($ thousands)	2012		2011
Location:
United States	$	47,587	$	39,063
International		34,654		28,621
Total long-lived assets(1)	$	82,241	$	67,684

⁽¹⁾Not more than 10% of our long-lived assets resided in any individual foreign country in 2012 or 2011.