Segment and Geographic Information

12 Months Ended

Oct. 31, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Note 3 — 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 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, 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, Russia and South Africa. The APAC segment includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan 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 2013, 2012 and 2011.

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
	2013			2012			2011
Apparel		62	%		61	%		62	%
Footwear		25			27			23
Accessories and related products		13			12			15
		100	%		100	%		100	%

Information related to the Company’s operating segments, all from continuing operations, is as follows:

In thousands	Year Ended October 31,
	2013			2012			2011
Revenues, net:
Americas	$	893,333		$	960,719		$	884,814
EMEA		631,546			671,991			754,813
APAC		282,070			305,518			271,624
Corporate operations		3,621			3,621			5,076
Consolidated	$	1,810,570		$	1,941,849		$	1,916,327
Gross profit/(loss):
Americas	$	370,288		$	408,361		$	403,101
EMEA		358,175			376,929			452,376
APAC		143,874			156,328			144,624
Corporate operations		94			(299	)		(315	)
Consolidated	$	872,431		$	941,319		$	999,786
SG&A expense:
Americas	$	319,736		$	349,350		$	348,333
EMEA		324,346			322,715			339,469
APAC		146,389			157,145			147,882
Corporate operations		67,086			59,040			46,692
Consolidated	$	857,557		$	888,250		$	882,376
Asset impairments:
Americas	$	9,211		$	5,267		$	3,891
EMEA		3,004			560			1,331
APAC		112			1,407			81,151
Corporate operations		—			—			—
Consolidated	$	12,327		$	7,234		$	86,373
Operating income/(loss):
Americas	$	41,341		$	53,744		$	50,877
EMEA		30,825			53,654			111,576
APAC		(2,627	)		(2,224	)		(84,409	)
Corporate operations		(66,992	)		(59,339	)		(47,007	)
Consolidated	$	2,547		$	45,835		$	31,037
Identifiable assets:
Americas	$	581,021		$	576,179		$	577,643
EMEA		744,936			718,537			750,378
APAC		222,542			224,149			231,879
Corporate operations		71,971			199,375			204,323
Consolidated	$	1,620,470		$	1,718,240		$	1,764,223

Net revenues from the United States accounted for 38%, 39% and 36% of consolidated net revenues from continuing operations for fiscal 2013, 2012 and 2011, respectively. Net revenues from France accounted for 12%, 11% and 12% of consolidated net revenues from continuing operations for fiscal 2013, 2012 and 2011, respectively. No other individual country accounted for more than 8% of consolidated net revenues from continuing operations for the periods presented. Net revenues from all foreign countries combined accounted for 62%, 61% and 64% of consolidated net revenues from continuing operations for fiscal 2013, 2012 and 2011, respectively. Identifiable assets in the United States totaled $554 million as of October 31, 2013.