Segment and Geographic Information

12 Months Ended

Oct. 31, 2012

Segment and Geographic Information

Note 14 — Segment and Geographic Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s management in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, APAC and Corporate Operations. The Americas segment includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment includes revenues primarily from continental Europe, the United Kingdom, and South Africa. The APAC segment includes revenues primarily from Australia, Japan, New Zealand and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees. The Company’s largest customer accounted for approximately 3% of the Company’s net revenues for fiscal 2012, 2011 and 2010.

The Company sells a full range of its products within each geographical segment. The percentages of net revenues attributable to each of the Company’s major product categories are as follows:

	Percentage of Net Revenues
	2012			2011			2010
Apparel		63	%		61	%		64	%
Footwear		24			23			21
Accessories and related products		13			16			15
		100	%		100	%		100	%

Information related to the Company’s operating segments is as follows:

	Year Ended October 31,
In thousands	2012			2011			2010
Revenues, net:
Americas	$	991,625		$	914,406		$	843,078
EMEA		710,852			761,100			728,952
APAC		307,141			272,479			260,578
Corporate operations		3,621			5,076			5,012
Consolidated	$	2,013,239		$	1,953,061		$	1,837,620
Gross profit/(loss):
Americas	$	429,868		$	425,607		$	390,249
EMEA		393,944			453,727			436,088
APAC		156,833			144,815			141,197
Corporate operations		(299	)		(315	)		(286	)
Consolidated	$	980,346		$	1,023,834		$	967,248
SG&A expense:
Americas	$	362,322		$	360,921		$	324,683
EMEA		337,535			340,387			340,138
APAC		157,247			147,949			128,207
Corporate operations		59,040			46,692			39,038
Consolidated	$	916,144		$	895,949		$	832,066
Asset impairments:
Americas	$	5,267		$	3,891		$	8,686
EMEA		560			1,331			1,785
APAC		1,407			81,151			1,186
Corporate operations		—			—			—
Consolidated	$	7,234		$	86,373		$	11,657
Operating income/(loss):
Americas	$	62,279		$	60,795		$	56,880
EMEA		55,849			112,009			94,165
APAC		(1,821	)		(84,285	)		11,804
Corporate operations		(59,339	)		(47,007	)		(39,324	)
Consolidated	$	56,968		$	41,512		$	123,525
Identifiable assets:
Americas	$	576,179		$	577,643		$	535,580
EMEA		718,537			750,378			704,306
APAC		224,149			231,879			298,503
Corporate operations		199,375			204,323			157,732
Consolidated	$	1,718,240		$	1,764,223		$	1,696,121
Goodwill:
Americas	$	75,974		$	76,048		$	75,051
EMEA		190,986			186,334			181,555
APAC		6,207			6,207			75,882
Consolidated	$	273,167		$	268,589		$	332,488

France accounted for 30%, 29%, and 28% of EMEA net revenues to unaffiliated customers for the years ended October 31, 2012, 2011 and 2010, respectively, while Spain accounted for 16%, 18%, and 19%, respectively, and the United Kingdom accounted for 11%, 8%, and 8%, respectively. Identifiable assets in the United States totaled $547 million as of October 31, 2012.