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Revenues | 6 Months Ended
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Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenues | REVENUES The Company adopted authoritative guidance related to the recognition of revenue from contracts with customers effective January 1, 2018 using the modified retrospective method. The comparative information presented in the condensed consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. See ‘Revenue Recognition’ in Note 2 — Recent Accounting Pronouncements for a discussion of the significant changes resulting from adoption of the guidance. The adoption of the guidance did not have a significant impact on revenues. Revenues by reportable operating segment and by channel were:
|  | Three Months Ended June 30, 2018
|  | Americas |  | Asia Pacific |  | Europe |  | Other Businesses |  | Total
|  | (in thousands)
Wholesale |  | $ | 53,920 |  |  | $ | 71,561 |  |  | $ | 38,820 |  |  | $ | 295 |  |  | $ | 164,596 |
Retail |  | 56,594 |  |  | 30,803 |  |  | 12,080 |  |  | — |  |  | 99,477 |
E-commerce |  | 27,248 |  |  | 26,036 |  |  | 10,647 |  |  | — |  |  | 63,931 |
Total revenues |  | $ | 137,762 |  |  | $ | 128,400 |  |  | $ | 61,547 |  |  | $ | 295 |  |  | $ | 328,004 |
|  | Six Months Ended June 30, 2018
|  | Americas |  | Asia Pacific |  | Europe |  | Other Businesses |  | Total
|  | (in thousands)
Wholesale |  | $ | 126,594 |  |  | $ | 143,294 |  |  | $ | 88,697 |  |  | $ | 608 |  |  | $ | 359,193 |
Retail |  | 91,310 |  |  | 48,417 |  |  | 19,256 |  |  | — |  |  | 158,983 |
E-commerce |  | 43,688 |  |  | 33,851 |  |  | 15,437 |  |  | — |  |  | 92,976 |
Total revenues |  | $ | 261,592 |  |  | $ | 225,562 |  |  | $ | 123,390 |  |  | $ | 608 |  |  | $ | 611,152 |
Revenues are recognized in the amount expected to be received in exchange for goods when control of the products transfers to customers, and excludes various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, rebates, and other incentives that may vary in amount and must be estimated. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. During the three and six months ended June 30, 2018, the Company recognized increases of $0.2 million and $1.0 million, respectively, to wholesale revenues due to changes in estimates related to products transferred to customers in prior periods. There were no changes to estimates in retail and e-commerce channels during the three and six months ended June 30, 2018. The Company elected to exclude from revenues taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities, and as a result there is no change in presentation from prior comparative periods. The following is a description of our principal revenue-generating activities by distribution channel. The Company has three reportable operating segments and sells its products using three primary distribution channels. For more detailed information about reportable operating segments, see ‘Note 13 — Operating Segments and Geographic Information’. Wholesale Channel For the majority of wholesale customers, control transfers and revenues are recognized when the product is shipped or delivered from a manufacturing facility or distribution center to the wholesale customer. In certain cases, control of the product transfers and revenues are recognized when the customer receives the product at the designated delivery point. For certain customers, primarily in the Asia Pacific region, cash payment from customers is required in advance of delivery and revenues are recognized upon the later of cash receipt or delivery of the product. For a small number of customers in the Asia Pacific region, products are sold on consignment and revenues are recognized on a sell-through basis. Wholesale customers are invoiced when products are shipped or delivered. The Company has arrangements that grant certain wholesale customers exclusive licenses, concurrent with the terms of the related distribution agreements, to use the Company’s intellectual property in exchange for a sales-based royalty. Sales-based royalty revenues are recognized over the terms of the related license agreements as sales are made by the wholesalers. Retail Channel The Company transfers control of products and recognizes revenues at retail stores at the point of sale, in exchange for cash or other payment, primarily debit or credit card. A portion of the transaction price charged to our customers is variable, primarily due to promotional discounts or allowances, and terms that permit retail customers to exchange or return products for a full refund within a limited period of time. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments to our estimates are made when the most likely amount of consideration we expect to receive changes. E-commerce Channel In the e-commerce channel, the Company transfers control and recognizes revenues when the product is shipped from the distribution centers. Payment from customers is primarily through debit and credit card and is made at the time the customer order is shipped. Similar to the retail channel, a portion of the amount of revenue is variable, primarily due to sales returns, discounts, and other promotional allowances offered to our customers. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments are made when the most likely amount of consideration changes. Historically, the amount of revenues associated with product returns in the e-commerce channel has been higher than the retail channel. Contract Liabilities Contract liabilities consist of advance cash deposits received from wholesale customers to secure product orders in connection with seasonal selling seasons, and payments received in advance of delivery. As products are shipped and control transfers, the Company recognizes the deferred revenue in ‘Revenues’ in the condensed consolidated statements of operations. At January 1 and June 30, 2018, $1.3 million and $1.2 million, respectively, of deferred revenues associated with advance customer deposits were reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets. Deferred revenues of $1.4 million and $2.2 million, respectively, were recognized in revenues during the three and six months ended June 30, 2018. The remainder of deferred revenues at June 30, 2018 are expected to be recognized in revenues during the third quarter of 2018 as products are shipped or delivered. Refund Liabilities Refund liabilities, primarily associated with product sales returns, retrospective volume rebates, and early payment discounts are estimated based on an analysis of historical experience, and adjustments to revenues made when the most likely amount of consideration expected changes. At January 1 and June 30, 2018, $3.4 million and $8.7 million, respectively, of refund liabilities, primarily associated with product returns, were reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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