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Major Customer, Segment and Geographic Information
 12 Months Ended
Dec. 29, 2012
Major Customer, Segment and Geographic Information  
Major Customer, Segment and Geographic Information

18. Major Customer, Segment and Geographic Information

        In accordance with ASC 280, Segment Reporting ("ASC 280"), the Company reports segment information based on the "management" approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments.

Major Customer

        Wholesale customers of the Company consist principally of major department stores and specialty retail stores located throughout the world. No individual customer accounts for 10% or more of the Company's net sales.

Segment Information

        The Company manages its business primarily on a geographic basis. The Company's reportable operating segments are comprised of North America wholesale, Europe wholesale, Asia Pacific wholesale and Direct to consumer. The North America wholesale, Europe wholesale and Asia Pacific wholesale reportable segments do not include activities related to the Direct to consumer segment. The North America wholesale segment primarily includes sales to wholesale or distributor customers based in Canada, Mexico, the United States and countries in South America. The Europe wholesale segment primarily includes sales to wholesale or distributor customers based in European countries, the Middle East and Africa. The Asia Pacific wholesale segment primarily includes sales to wholesale or distributor customers based in Australia, China (including the Company's assembly and procurement operations), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. The Direct to consumer segment includes Company-owned retail stores, e-commerce sales and catalog activities. Each reportable operating segment provides similar products and services.

        The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of the customers. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. General corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management and amounts related to intercompany eliminations are not allocated to the various segments. Intercompany sales of products between segments are referred to as intersegment items.

        Summary information by operating segment is as follows (in thousands):

 
   Fiscal Year 2012  
 
   Net Sales   Operating
Income		   Depreciation and
Amortization		   Long-term
Assets		   Total Assets  

North America wholesale:

               $ 4,880   $ 236,639   $ 610,979  

External customers

   $ 1,083,489   $ 246,616                    

Intersegment

     203,266                          

Europe wholesale:

                 6,529     150,977     354,823  

External customers

     696,988     174,469                    

Intersegment

     166,952                          

Asia Pacific wholesale:

                 3,958     37,639     416,825  

External customers

     361,514     127,263                    

Intersegment

     757,480                          

Direct to consumer

     715,517     98,754     26,259     170,461     313,498  

Intersegment items

     (1,127,698 )                        

Corporate

           (158,262 )   18,880     102,161     145,864  
                       

Consolidated

   $ 2,857,508   $ 488,840   $ 60,506   $ 697,877   $ 1,841,989  
                       


 

 
   Fiscal Year 2011  
 
   Net Sales   Operating
Income		   Depreciation and
Amortization		   Long-term
Assets		   Total Assets  

North America wholesale:

               $ 2,912   $ 65,332   $ 524,615  

External customers

   $ 967,493   $ 235,003                    

Intersegment

     161,640                          

Europe wholesale:

                 5,377     83,107     436,775  

External customers

     695,391     187,762                    

Intersegment

     154,654                          

Asia Pacific wholesale:

                 2,448     16,067     258,343  

External customers

     297,045     108,756                    

Intersegment

     709,336                          

Direct to consumer

     607,373     87,187     21,409     141,039     246,911  

Intersegment items

     (1,025,630 )                        

Corporate

           (146,717 )   13,074     101,975     176,278  
                       

Consolidated

   $ 2,567,302   $ 471,991   $ 45,220   $ 407,520   $ 1,642,922  
                       


 

 
   Fiscal Year 2010  
 
   Net Sales   Operating
Income		   Depreciation and
Amortization		   Long-term
Assets		   Total Assets  

North America wholesale:

               $ 3,547   $ 98,970   $ 585,616  

External customers

   $ 779,159   $ 188,155                    

Intersegment

     151,304                          

Europe wholesale:

                 3,954     85,048     383,301  

External customers

     547,428     154,729                    

Intersegment

     100,661                          

Asia Pacific wholesale:

                 2,291     17,193     188,459  

External customers

     220,777     82,037                    

Intersegment

     592,403                          

Direct to consumer

     483,326     66,339     21,452     96,017     217,620  

Intersegment items

     (844,368 )                        

Corporate

           (114,846 )   9,058     29,528     92,577  
                       

Consolidated

   $ 2,030,690   $ 376,414   $ 40,302   $ 326,756   $ 1,467,573  
                       

        The following table indicates revenue for each class of similar products for fiscal years 2012, 2011 and 2010 (in thousands):

 
   Fiscal Year 2012   Fiscal Year 2011   Fiscal Year 2010  
 
   Net Sales   Percentage
of Total		   Net Sales   Percentage
of Total		   Net Sales   Percentage
of Total		  

Watches

   $ 2,141,481     74.9 % $ 1,843,909     71.8 % $ 1,419,205     69.9 %

Leathers

     440,113     15.4     427,771     16.7     340,405     16.8  

Jewelry

     181,636     6.4     190,126     7.4     166,183     8.2  

Other

     94,278     3.3     105,496     4.1     104,897     5.1  
                           

Total

   $ 2,857,508     100.0 % $ 2,567,302     100.0 % $ 2,030,690     100.0 %
                           

Geographic Information

        Net sales and long-lived assets related to the Company's operations in the U.S., Europe, Asia Pacific and all other international markets were as follows (in thousands):

 
   Fiscal Year 2012  
 
   Net Sales   Long-term Assets  

United States

   $ 1,354,337   $ 391,232  

Europe

     880,012 (1)   241,766  

Asia Pacific

     448,217     54,150  

All other international

     174,942     10,729  
           

Consolidated

   $ 2,857,508   $ 697,877  
           


 

 
   Fiscal Year 2011  
 
   Net Sales   Long-term Assets  

United States

   $ 1,255,148   $ 209,576  

Europe

     858,452 (1)   158,324  

Asia Pacific

     358,904     31,609  

All other international

     94,798     8,011  
           

Consolidated

   $ 2,567,302   $ 407,520  
           


 

 
   Fiscal Year 2010  
 
   Net Sales   Long-term Assets  

United States

   $ 1,028,840   $ 161,472  

Europe

     670,959 (1)   135,087  

Asia Pacific

     267,158     23,617  

All other international

     63,733     6,580  
           

Consolidated

   $ 2,030,690   $ 326,756  
           
(1)
Wholesale sales within Germany, excluding sales to third-party distributors, accounted for more than 10% of the Company's consolidated net sales and were approximately $354.4 million, $384.9 million and $298.5 million of consolidated net sales in fiscal years 2012, 2011 and 2010, respectively.