Operating Segments and Geographic Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Operating Segments and Geographic Information

OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION

The Company has three reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, and Europe. In addition, the 'Other businesses' category aggregates insignificant operating segments that do not meet the reportable segment threshold, including manufacturing operations located in Mexico and Italy, and corporate operations.

Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. Revenues for 'Other businesses' include non-footwear product sales to external customers that are excluded from the measurement of segment operating revenues and income.

Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative, and other expenses. Segment profits or losses include adjustments to eliminate inter-segment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as inter-segment eliminations. The following tables set forth information related to reportable operating segments:

	Three Months Ended March 31,
	2017			2016
	(in thousands)
Revenues:
Americas	$	117,722		$	124,130
Asia Pacific (1)	98,344			104,502
Europe	51,651			50,336
Total segment revenues	267,717			278,968
Other businesses	190			172
Total consolidated revenues	$	267,907		$	279,140
Operating income:
Americas	$	22,002		$	16,576
Asia Pacific	26,726			25,851
Europe	12,274			6,523
Total segment income from operations	61,002			48,950
Reconciliation of total segment income from operations to income before income taxes:
Other businesses	(5,617		)	(6,074		)
Unallocated corporate and other	(39,803		)	(28,633		)
Income from operations	15,582			14,243
Foreign currency gain (loss), net	276			(1,247		)
Interest income	150			216
Interest expense	(184		)	(243		)
Other income	124			82
Income before income taxes	$	15,948		$	13,051
Depreciation and amortization:
Americas	$	1,345		$	1,478
Asia Pacific	926			1,078
Europe	385			780
Total segment depreciation and amortization	2,656			3,336
Other businesses	1,746			1,710
Unallocated corporate and other	4,044			3,549
Total consolidated depreciation and amortization	$	8,446		$	8,595

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(1) In April and May 2017, we entered into agreements to transfer certain company-operated stores located in the Middle East and China to distributors.