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Operating Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Operating Segments and Geographic Information | OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION The Company has three reportable operating segments: the Americas, Asia Pacific, and Europe, Middle East, and Africa (“EMEA”). ‘Other businesses’ aggregates insignificant operating segments that do not meet the reportable segment threshold, including company-operated manufacturing operations 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. Reconciling items between segment income from operations and income (loss) from operations consist of other businesses and unallocated corporate expenses, as well as inter-segment eliminations. The following tables set forth information related to reportable operating segments:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Revenues: |  |  |  |  |
Americas | $ | 520,192 |  |  | $ | 480,146 |  |  | $ | 467,006 |
Asia Pacific (1) | 344,598 |  |  | 336,073 |  |  | 355,284 |
EMEA (1) | 220,270 |  |  | 206,424 |  |  | 213,238 |
Segment revenues | 1,085,060 |  |  | 1,022,643 |  |  | 1,035,528 |
Other businesses | 3,145 |  |  | 870 |  |  | 745 |
Total consolidated revenues | $ | 1,088,205 |  |  | $ | 1,023,513 |  |  | $ | 1,036,273 |
Income from operations: (2) |  |  |  |  |
Americas (3) | $ | 138,940 |  |  | $ | 96,740 |  |  | $ | 72,689 |
Asia Pacific (1)(4) | 82,780 |  |  | 72,950 |  |  | 67,077 |
EMEA (1)(5) | 59,539 |  |  | 37,185 |  |  | 34,114 |
Segment income from operations | 281,259 |  |  | 206,875 |  |  | 173,880 |
Reconciliation of segment income from operations to income (loss) before income taxes: |  |  |  |  |
Other businesses (6) | (55,583 | ) |  | (22,861 | ) |  | (26,935 | )
Unallocated corporate (2)(7) | (162,732 | ) |  | (166,678 | ) |  | (153,099 | )
Total consolidated income (loss) from operations | 62,944 |  |  | 17,336 |  |  | (6,154 | )
Foreign currency gains (losses), net | 1,318 |  |  | 563 |  |  | (2,454 | )
Interest income | 1,281 |  |  | 870 |  |  | 692 |
Interest expense | (955 | ) |  | (869 | ) |  | (836 | )
Other income | 569 |  |  | 280 |  |  | 1,539 |
Income (loss) before income taxes | $ | 65,157 |  |  | $ | 18,180 |  |  | $ | (7,213 | )
Depreciation and amortization: |  |  |  |  |
Americas | $ | 4,640 |  |  | $ | 5,473 |  |  | $ | 5,787 |
Asia Pacific (8) | 2,049 |  |  | 3,405 |  |  | 3,974 |
EMEA (8) | 1,252 |  |  | 1,937 |  |  | 2,423 |
Total segment depreciation and amortization | 7,941 |  |  | 10,815 |  |  | 12,184 |
Other businesses | 5,256 |  |  | 6,748 |  |  | 6,830 |
Unallocated corporate | 16,053 |  |  | 15,567 |  |  | 15,029 |
Total consolidated depreciation and amortization | $ | 29,250 |  |  | $ | 33,130 |  |  | $ | 34,043 |
(1) In the third quarter of 2018, certain revenues and expenses previously reported within the ‘Asia Pacific’ segment were shifted to the ‘EMEA’ segment. The previously reported amounts for revenues and income from operations for the years ended December 31, 2017 and 2016 have also been revised to conform to the current period presentation. See ‘Impacts of segment composition change’ table below for more information. (2) In 2018, certain global marketing expenses previously reported within the operating segments are managed and reported within ‘Unallocated corporate and other’. The previously reported amounts for income from operations for the years ended December 31, 2017 and 2016 have been revised to conform to the current year presentation. See ‘Impacts of global marketing expense realignment’ table below for more information. (3) Includes $0.1 million, $0.5 million, and $1.7 million of asset impairment charges related to 1, 3, and 12 underperforming retail locations for the years ended December 31, 2018, 2017 and 2016, respectively. (4) Includes $0.8 million and $0.6 million of asset impairment charges related to 12 and 19 underperforming retail locations for the years ended December 31, 2018 and 2016, respectively. (5) Includes less than $0.1 million and $0.4 million of asset impairment charges related to 1 and 11 underperforming retail locations for the years ended December 31, 2017 and 2016, respectively. Additionally in the year ended December 31, 2016, the Company recorded $0.4 million in impairment charges related to goodwill in our EMEA operating segment. (6) “Other businesses” increases are primarily due to costs incurred in conjunction with the closure of company-operated manufacturing and distribution facilities, which ceased operations in 2018, increased variable compensation associated with higher revenues, and other expenses as a result of outsourcing, and other supply chain cost changes. (7) Includes a $4.8 million write-off related to a discontinued project for the year ended December 31, 2017. Also includes corporate support and administrative functions, costs associated with share-based compensation, research and development, marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments, and intersegment eliminations. (8) In the third quarter of 2018, certain revenues and expenses previously reported within the ‘Asia Pacific’ segment were shifted to the ‘EMEA’ segment. The previously reported amounts for depreciation and amortization for the years ended December 31, 2017 and 2016 have also been revised to conform to the current period presentation. See ‘Impacts of segment composition change’ table below for more information. Impacts of segment composition change:
|  | Year Ended December 31,
|  | 2017 |  | 2016
|  | Increase (Decrease)
| (in thousands)
Impacts on revenues: |  |  |  |
Asia Pacific |  | $ | (33,594 | ) |  | $ | (39,794 | )
EMEA |  | 33,594 |  |  | 39,794 |
Impacts on income from operations: |  |  |  |
Asia Pacific |  | (10,166 | ) |  | (13,451 | )
EMEA |  | 10,166 |  |  | 13,451 |
Impacts on depreciation and amortization: |  |  |  |
Asia Pacific |  | (59 | ) |  | (290 | )
EMEA |  | 59 |  |  | 290 |
Impacts of global marketing expense realignment:
|  | Year Ended December 31,
|  | 2017 |  | 2016
|  | Increase (Decrease)
| (in thousands)
Impacts on income from operations: |  |  |  |
Americas |  | $ | 9,860 |  |  | $ | 13,845 |
Asia Pacific |  | 3,843 |  |  | 1,621 |
EMEA |  | 1,283 |  |  | 2,906 |
Unallocated corporate and other |  | (14,986 | ) |  | (18,372 | )
The following table sets forth asset information related to reportable operating segments as of the dates shown:
| December 31,
| 2018 |  | 2017
| (in thousands)
Long-lived assets: |  |  |
Americas | $ | 12,977 |  |  | $ | 17,129 |
Asia Pacific | 1,831 |  |  | 4,171 |
EMEA | 3,125 |  |  | 4,609 |
Total segment long-lived assets | 17,933 |  |  | 25,909 |
Supply Chain | 11,996 |  |  | 17,396 |
Corporate and other | 39,586 |  |  | 49,842 |
Total long-lived assets | $ | 69,515 |  |  | $ | 93,147 |
Total consolidated assets: |  |  |
Americas | $ | 157,016 |  |  | $ | 158,641 |
Asia Pacific (1) | 139,679 |  |  | 144,384 |
EMEA (1) | 66,021 |  |  | 93,799 |
Total segment assets | 362,716 |  |  | 396,824 |
Supply Chain | 31,108 |  |  | 37,793 |
Corporate and other | 75,077 |  |  | 109,078 |
Total consolidated assets | $ | 468,901 |  |  | $ | 543,695 |
(1) In the third quarter of 2018, certain revenues and expenses previously reported within the ‘Asia Pacific’ segment were shifted to the ‘EMEA’ segment. The previously reported amount for consolidated assets for the year ended December 31, 2017 has also been revised to conform to the current period presentation. See ‘Impacts of segment composition change’ table below for more information. Impacts of segment composition change:
|  | Year Ended December 31,
|  | 2017
|  | Increase (Decrease)
|  | (in thousands)
Impacts on consolidated assets: |  |
Asia Pacific |  | $ | (17,262 | )
EMEA |  | 17,262 |
There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2018, 2017 and 2016. The following table sets forth certain geographical information regarding Crocs’ revenues for the periods as shown:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Location: |  |  |  |  |  |  |  |
United States | $ | 442,544 |  |  | $ | 388,847 |  |  | $ | 384,939 |
International (1) | 645,661 |  |  | 634,666 |  |  | 651,334 |
Total revenues | $ | 1,088,205 |  |  | $ | 1,023,513 |  |  | $ | 1,036,273 |
(1) For the year ended December 31, 2016, sales in Japan represented approximately 10.6% of consolidated revenues. The following table sets forth geographical information regarding property and equipment assets as of the dates shown:
| December 31,
| 2018 |  | 2017
| (in thousands)
Location: |  |  |  |  |
United States | $ | 17,489 |  |  | $ | 23,396 |
International | 4,722 |  |  | 11,636 |
Total property and equipment, net | $ | 22,211 |  |  | $ | 35,032 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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