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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 (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. 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 based on the location of the selling entity. 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, brand management, product development, art, creative/product design, marketing , strategy, compliance and back office supply chain expenses are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes.

 

Certain reclassifications have been made to prior year amounts to conform with fiscal year 2015 presentation. Due to changes in the Company’s reportable segments as discussed in Note 1 to the consolidated financial statements, segment results for fiscal years 2014, 2013 and 2012 have been recast to present results on a comparable basis. Summary information by operating segment was as follows (in thousands):

 

 

 

Fiscal Year 2014

 

 

 

Net Sales

 

Operating
Income

 

Depreciation
and
Amortization

 

Long-term
Assets

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,747,506

 

$

463,246

 

$

24,846

 

$

263,324

 

$

809,548

 

Europe

 

1,195,948

 

287,961

 

20,028

 

220,742

 

561,486

 

Asia

 

566,237

 

116,288

 

12,676

 

57,508

 

233,881

 

Corporate

 

 

 

(300,959

)

25,780

 

176,124

 

602,637

 

Consolidated

 

$

3,509,691

 

$

566,536

 

$

83,330

 

$

717,698

 

$

2,207,552

 

 

 

 

Fiscal Year 2013

 

 

 

Net Sales

 

Operating
Income

 

Depreciation
and
Amortization

 

Long-term
Assets

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,703,350

 

$

472,812

 

$

22,024

 

$

260,730

 

$

781,374

 

Europe

 

1,052,497

 

238,585

 

18,904

 

248,182

 

600,289

 

Asia

 

504,124

 

115,841

 

9,332

 

60,197

 

210,916

 

Corporate

 

 

 

(265,642

)

24,007

 

181,843

 

637,835

 

Consolidated

 

$

3,259,971

 

$

561,596

 

$

74,267

 

$

750,952

 

$

2,230,414

 

 

 

 

Fiscal Year 2012

 

 

 

Net Sales

 

Operating
Income

 

Depreciation
and
Amortization

 

Long-term
Assets

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,529,279

 

$

404,387

 

$

18,036

 

$

244,705

 

$

687,380

 

Europe

 

880,012

 

180,958

 

15,558

 

228,129

 

506,325

 

Asia

 

448,217

 

114,011

 

6,813

 

49,949

 

183,935

 

Corporate

 

 

 

(210,516

)

20,099

 

175,094

 

464,349

 

Consolidated

 

$

2,857,508

 

$

488,840

 

$

60,506

 

$

697,877

 

$

1,841,989

 

 

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

 

Total

 

$

3,509,691

 

100.0

%

$

3,259,971

 

100.0

%

$

2,857,508

 

100.0

%

 

Geographic Information

 

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

 

 

 

Fiscal Year 2014

 

 

 

 

 

Long-tern

 

 

 

Net Sales (1)

 

Assets

 

United States

 

$

1,588,566

 

$

397,034

 

Europe

 

1,195,948

(2)

235,219

 

Asia

 

566,237

 

67,693

 

All other international

 

158,940

 

17,752

 

Consolidated

 

$

3,509,691

 

$

717,698

 

 

 

 

Fiscal Year 2013

 

 

 

 

 

Long-tern

 

 

 

Net Sales (1)

 

Assets

 

United States

 

$

1,525,107

 

$

412,966

 

Europe

 

1,052,497

(2)

262,324

 

Asia

 

504,124

 

65,432

 

All other international

 

178,243

 

10,230

 

Consolidated

 

$

3,259,971

 

$

750,952

 

 

 

 

Fiscal Year 2012

 

 

 

 

 

Long-tern

 

 

 

Net Sales (1)

 

Assets

 

United States

 

$

1,354,337

 

$

392,740

 

Europe

 

880,012

(2)

239,917

 

Asia

 

448,217

 

54,491

 

All other international

 

174,942

 

10,729

 

Consolidated

 

$

2,857,508

 

$

697,877

 

 

(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 fiscal years 2014, 2013 and 2012, respectively.