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Major Customer, Segment and Geographic Information
 12 Months Ended
Jan. 03, 2015
Major Customer, Segment and Geographic Information  
Major Customer, Segment and Geographic Information

 

18. Major Customer, Segment and Geographic Information

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 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.

        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 (as well as 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 activities and catalog costs. 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. Intercompany profit attributable to the Company's factory operations is included in the Asia Pacific wholesale and Europe wholesale segments in accordance with the geographic location of the factories. These intercompany factory profits are eliminated in consolidation. Summary information by operating segment is as follows (in thousands):

                                                                                                                                                                                    

 

 

Fiscal Year 2014

 

 

 

Net Sales

 

Operating
Income

 

Depreciation
and
Amortization

 

Long-term
Assets

 

Total Assets

 

North America wholesale

 

 

 

 

 

 

 

$
10,364

 

$
256,287

 

$
716,278

 

External customers

 

$
1,213,097

 

$
251,003

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
233,058

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe wholesale

 

 

 

 

 

 

 

 
10,520

 

 
145,791

 

 
385,339

 

External customers

 

 
931,228

 

 
261,250

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
233,239

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific wholesale

 

 

 

 

 

 

 

 
6,669

 

 
51,175

 

 
584,887

 

External customers

 

 
440,656

 

 
122,778

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
1,075,401

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct to consumer

 

 
924,710

 

 
115,050

 

 
33,728

 

 
159,619

 

 
352,780

 

Intersegment items

 

 
(1,541,698

)

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 
(183,545

)

 
22,049

 

 
104,826

 

 
168,268

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Consolidated

 

$
3,509,691

 

$
566,536

 

$
83,330

 

$
717,698

 

$
2,207,552

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

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​  

​

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​  

​  

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​  

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​  

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​  

                                                                                                                                                                                    

 

 

Fiscal Year 2013

 

 

 

Net Sales

 

Operating
Income

 

Depreciation
and
Amortization

 

Long-term
Assets

 

Total Assets

 

North America wholesale

 

 

 

 

 

 

 

$
7,886

 

$
260,506

 

$
680,025

 

External customers

 

$
1,216,634

 

$
305,834

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
209,913

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe wholesale

 

 

 

 

 

 

 

 
9,324

 

 
185,892

 

 
535,261

 

External customers

 

 
828,098

 

 
219,041

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
172,943

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific wholesale

 

 

 

 

 

 

 

 
4,764

 

 
42,943

 

 
516,553

 

External customers

 

 
396,641

 

 
129,971

 

 

 

 

 

 

 

 

 

 

Intersegment

 

 
970,985

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct to consumer

 

 
818,598

 

 
88,082

 

 
30,798

 

 
161,245

 

 
335,208

 

Intersegment items

 

 
(1,353,841

)

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 
(181,332

)

 
21,495

 

 
100,366

 

 
163,367

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Consolidated

 

$
3,259,971

 

$
561,596

 

$
74,267

 

$
750,952

 

$
2,230,414

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

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​

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​

​

​  

​  

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​  

​  

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​  

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​  

​  

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​  

                                                                                                                                                                                    

 

 

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

 

​

​

​  

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​

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​

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​

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​

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        The following table indicates revenue for each class of similar products for fiscal years 2014, 2013 and 2012 (in thousands):

                                                                                                                                                                                    

 

 

Fiscal Year 2014

 

Fiscal Year 2013

 

Fiscal Year 2012

 

 

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

Watches

 

$
2,736,511 

 

 
78.0 

%

$
2,513,081 

 

 
77.1 

%

$
2,141,481 

 

 
74.9 

%

Leathers

 

 
419,391 

 

 
11.9 

 

 
436,285 

 

 
13.4 

 

 
440,113 

 

 
15.4 

 

Jewelry

 

 
276,485 

 

 
7.9 

 

 
228,748 

 

 
7.0 

 

 
181,636 

 

 
6.4 

 

Other

 

 
77,304 

 

 
2.2 

 

 
81,857 

 

 
2.5 

 

 
94,278 

 

 
3.3 

 

​

​

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​  

​

​  

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​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

$
3,509,691 

 

 
100.0 

%

$
3,259,971 

 

 
100.0 

%

$
2,857,508 

 

 
100.0 

%  

​

​

​  

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​

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​

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​  

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​  

​  

​

​

​

​  

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​

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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 2014

 

 

 

Net Sales(1)

 

Long-term
Assets

 

United States

 

$
1,588,566 

 

$
395,526 

 

Europe

 

 
1,195,948 

(2)

 
237,068 

 

Asia Pacific

 

 
566,237 

 

 
67,352 

 

All other international

 

 
158,940 

 

 
17,752 

 

​

​

​  

​  

​

​  

​  

​

Consolidated

 

$
3,509,691 

 

$
717,698 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Year 2013

 

 

 

Net Sales(1)

 

Long-term
Assets

 

United States

 

$
1,525,107 

 

$
411,458 

 

Europe

 

 
1,052,497 

(2)

 
264,173 

 

Asia Pacific

 

 
504,124 

 

 
65,091 

 

All other international

 

 
178,243 

 

 
10,230 

 

​

​

​  

​  

​

​  

​  

​

Consolidated

 

$
3,259,971 

 

$
750,952 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Year 2012

 

 

 

Net Sales(1)

 

Long-term
Assets

 

United States

 

$
1,354,337 

 

$
391,232 

 

Europe

 

 
880,012 

(2)

 
241,766 

 

Asia Pacific

 

 
448,217 

 

 
54,150 

 

All other international

 

 
174,942 

 

 
10,729 

 

​

​

​  

​  

​

​  

​  

​

Consolidated

 

$
2,857,508 

 

$
697,877 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

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(1)

Net sales are based on the location of the selling entity.

(2)

Net sales from Germany accounted for more than 10% of the Company's consolidated net sales and were approximately $612.5 million, $578.8 million and $472.4 million in fiscals years 2014, 2013 and 2012, respectively.