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