Segment Information

6 Months Ended

Apr. 30, 2013

Segment Information

3. Segment 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 chief operating decision maker 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, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, and South Africa. The APAC segment, consisting of Australia, New Zealand, and Asia, includes revenues primarily from Australia, Japan, New Zealand and Indonesia. Royalties earned from various licensees in other international territories are categorized in Corporate Operations, along with revenues from sourcing services to the Company’s licensees.

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

In thousands	Second Quarter Ended April 30,
	2013			2012
Revenues, net:
Americas	$	228,703		$	220,975
EMEA		165,189			195,554
APAC		63,900			74,026
Corporate operations		956			1,658
	$	458,748		$	492,213
Gross profit:
Americas	$	92,696		$	97,709
EMEA		87,961			108,997
APAC		31,634			35,963
Corporate operations		(1,155	)		(520	)
	$	211,136		$	242,149
SG&A expense:
Americas	$	84,999		$	88,407
EMEA		80,976			83,202
APAC		37,756			40,002
Corporate operations		14,473			12,399
	$	218,204		$	224,010
Asset impairments:
Americas	$	5,322		$	415
EMEA		10			—
APAC		—			—
Corporate operations		—			—
	$	5,332		$	415
Operating income/(loss):
Americas	$	2,375		$	8,887
EMEA		6,975			25,795
APAC		(6,122	)		(4,039	)
Corporate operations		(15,628	)		(12,919	)
	$	(12,400	)	$	17,724

In thousands	First Half Ended April 30,
	2013			2012
Revenues, net:
Americas	$	414,987		$	426,383
EMEA		336,364			364,428
APAC		136,776			148,619
Corporate operations		1,639			2,404
	$	889,766		$	941,834
Gross profit:
Americas	$	173,555		$	185,637
EMEA		186,850			210,769
APAC		70,911			74,103
Corporate operations		(473	)		(410	)
	$	430,843		$	470,099
SG&A expense:
Americas	$	173,073		$	177,888
EMEA		164,210			169,298
APAC		74,962			77,241
Corporate operations		31,218			29,998
	$	443,463		$	454,425
Asset impairments:
Americas	$	6,943		$	415
EMEA		1,557			—
APAC		—			—
Corporate operations		—			—
	$	8,500		$	415
Operating (loss)/income:
Americas	$	(6,461	)	$	7,334
EMEA		21,083			41,471
APAC		(4,051	)		(3,138	)
Corporate operations		(31,691	)		(30,408	)
	$	(21,120	)	$	15,259

	April 30, 2013		October 31, 2012
Identifiable assets:
Americas	$	547,692	$	576,179
EMEA		723,415		718,537
APAC		211,643		224,149
Corporate operations		200,487		199,375
	$	1,683,237	$	1,718,240