鲍鱼直播 Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

12 Months Ended

Mar. 30, 2019

Segment Reporting [Abstract]

听

REPORTABLE SEGMENT INFORMATION

SEGMENT INFORMATION

In light of recently completed portfolio management actions and organizational realignments, the Company realigned its internal reporting structure in the year ended March 2019 to reflect the organizational changes to better support and assess the operations of the business. The chief operating decision maker allocates resources and assesses performance based on a global brand view which represents 鲍鱼直播's operating segments. The operating segments have been evaluated and combined into reportable segments because they have met the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. Based on this assessment, the Company's reportable segments have been identified as: Outdoor, Active, Work and Jeans.

Below is a description of 鲍鱼直播's reportable segments and the primary brands included within each:



REPORTABLE SEGMENT	听	PRIMARY BRANDS
Outdoor - Outdoor apparel, footwear and equipment	听	The North Face^庐
听	听	Timberland^庐听(excluding听Timberland PRO^庐)
听	听	Icebreaker^庐
听	听	Smartwool^庐
听	听	Altra^庐
听	听	听
Active - Active apparel, footwear and accessories	听	Vans^庐
听	听	Kipling^庐
听	听	Napapijri^庐
听	听	Eastpak^庐
听	听	JanSport^庐
听	听	Reef^庐
听	听	Eagle Creek^庐
听	听	听
Work - Work and work-inspired lifestyle apparel, footwear and occupational apparel	听	Dickies^庐
听	听	Red Kap^庐
听	听	Bulwark^庐
听	听	Timberland PRO^庐
听	听	鲍鱼直播 Solutions^庐
听	听	Wrangler^庐听RIGGS
听	听	Walls^庐
听	听	Terra^庐
听	听	Workrite^庐
听	听	Kodiak^庐
听	听	Horace Small^庐
听	听	听
Jeans听- Denim and casual apparel	听	Wrangler^庐听(excluding听Wrangler^庐听RIGGS)
听	听	Lee^庐
听	听	Lee^庐Riders^庐
听	听	Rock and Republic^庐

Other - included in the tables below for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Includes sales of non-鲍鱼直播 products at 鲍鱼直播 Outlet^鈩� stores and results from transition services related to the sales of the Nautica^庐and Reef^庐 brand businesses.

In the tables below, the Company has recast historical financial information to reflect the new reportable segments. The recast historical information has no impact on the Company's previously reported consolidated financial statements.

The results of Williamson-Dickie have been included in the Work segment since the October 2, 2017 acquisition date. The results of Kipling North America, which were previously included in the former Sportswear segment, have been included in the Active segment for all periods presented. The results of Icebreaker and Altra have been included in the Outdoor segment since their acquisition dates of April 3, 2018 and June 1, 2018, respectively.

The results of the Van Moer business have been included in the Work segment through the October 5, 2018 date of sale. The results of the Reef^庐 brand business have been included in the Active segment through the October 26, 2018 date of sale.

The primary financial measures used by management to evaluate the financial results of 鲍鱼直播's reportable segments are segment revenues and segment profit.听Segment profit comprises the operating income and other income (expense), net line items of each segment.

Accounting policies used for internal management reporting at the individual segments are consistent with those in Note 1, except as stated below. Corporate costs (other than common costs allocated to the segments), impairment charges and net interest expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the segments based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the segments consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs) and other expenses which include a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of 鲍鱼直播鈥檚 trademarks and miscellaneous consolidated costs. Defined benefit pension plans in the U.S. are centrally managed. The current year service cost component of pension cost is allocated to the segments, while the remaining pension cost components are reported in corporate and other expenses.

Segment assets, for internal management purposes, are those used directly in or resulting from the operations of each business, which are accounts receivable and inventories. Segment assets included in the Other category represent balances related to the 鲍鱼直播 Outlet^鈩�business, transition services and other corporate activities, and are provided for purposes of reconciliation as the Other category is not considered a reportable segment. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the chief operating decision maker at the segment level.

Financial information for 鲍鱼直播鈥檚 reportable segments is as follows:



听	听	Year Ended March			听	听	Three Months Ended March (Transition Period)			听	Year Ended December
(In thousands)	听	2019			听	听	2018			听	2017			听	2016
Segment revenues:	听	听			听	听	听			听	听			听	听
Outdoor	听	$	4,649,024		听	听	$	888,039		听	$	4,208,958		听	$	4,123,372
Active	听	4,721,792			听	听	1,071,598			听	3,791,737			听	3,318,428
Work	听	1,862,017			听	听	442,258			听	1,099,714			听	776,214
Jeans	听	2,491,769			听	听	623,266			听	2,597,623			听	2,690,059
Other	听	124,058			听	听	20,285			听	113,145			听	118,074
Total segment revenues	听	$	13,848,660		听	听	$	3,045,446		听	$	11,811,177		听	$	11,026,147
Segment profit:	听	听			听	听	听			听	听			听	听
Outdoor	听	$	544,425		听	听	$	44,673		听	$	537,543		听	$	594,485
Active	听	1,125,709			听	听	237,620			听	805,843			听	628,163
Work	听	220,670			听	听	40,024			听	163,585			听	137,301
Jeans	听	300,502			听	听	103,805			听	406,524			听	479,179
Other	听	457			听	听	(3,074		)	听	(3,090		)	听	(4,809		)
Total segment profit	听	2,191,763			听	听	423,048			听	1,910,405			听	1,834,319
Impairment of goodwill and intangible assets ^(a)	听	鈥�			听	听	鈥�			听	鈥�			听	(79,644		)
Corporate and other expenses ^{(b) (c)}	听	(578,934		)	听	听	(107,750		)	听	(408,030		)	听	(384,413		)
Interest expense, net	听	(85,425		)	听	听	(21,165		)	听	(85,880		)	听	(85,546		)
Income from continuing operations before income taxes	听	$	1,527,404		听	听	$	294,133		听	$	1,416,495		听	$	1,284,716


^(a)听	Represents goodwill and intangible asset impairment charges in 2016 related to the Outdoor segment (lucy^庐brand discussed in Notes 8, 9 and 22). The impairment charges were excluded from the profit of the Outdoor segment since they are not part of the ongoing operations of the business.


^(b)听	Reflects a $50.9 million pension settlement charge in 2016 (Note 15).


^(c)听	Certain corporate overhead and other costs of, $16.6 million and $44.3 million during the years ended December 2017 and 2016, respectively, previously allocated to the former Sportswear, Imagewear, Outdoor & Action Sports and Contemporary Brands segments for segment reporting purposes, have been reallocated to continuing operations as discussed in Note 4.

听

March

听

March

听

December

(In thousands)

听

2019

听

2018

听

2017

Segment assets:

听

Outdoor

听

1,108,274

听

924,870

听

1,082,264

Active

听

981,033

听

873,737

听

686,991

Work

听

742,329

听

669,641

听

657,025

Jeans

听

720,620

听

710,481

听

629,648

Other

听

99,570

听

91,299

听

80,667

Total segment assets

听

3,651,826

听

3,270,028

听

3,136,595

Cash and equivalents

听

543,011

听

680,762

听

563,483

Property, plant and equipment, net

听

1,057,268

听

1,011,617

听

1,014,638

Intangible assets and goodwill

听

3,779,161

听

3,813,329

听

3,782,425

Other assets

听

1,325,519

听

1,161,994

听

1,080,661

Assets of discontinued operations

听

鈥�

听

373,580

听

380,700

Consolidated assets

听

10,356,785

听

10,311,310

听

9,958,502

听

Year Ended March

听

Three Months

Ended March

(Transition Period)

听

Year Ended December

(In thousands)

听

2019

听

2018

听

2017

听

2016

Depreciation and amortization expense: ^(a)

听

Outdoor

听

82,259

听

16,998

听

86,838

听

83,070

Active

听

73,395

听

18,953

听

70,219

听

66,031

Work

听

34,446

听

10,149

听

12,926

听

5,051

Jeans

听

38,505

听

8,710

听

35,586

听

39,237

Other

听

2,542

听

609

听

3,560

听

3,537

Corporate

听

69,858

听

15,501

听

68,016

听

57,290

听

301,005

听

70,920

听

277,145

听

254,216

^(a)听

Excludes $0.6 million, $14.0 million and $27.4 million of depreciation and amortization related to discontinued operations in the three months ended March 2018 and the years ended December 2017 and 2016, respectively. These amounts are included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations (Note 4).

Supplemental information (with revenues by geographic area based on the origin of the shipment) is as follows:

听

Year Ended March

听

Three Months

Ended March

(Transition Period)

听

Year Ended December

(In thousands)

听

2019

听

2018

听

2017

听

2016

Total revenues:

听

U.S.

听

8,126,280

听

1,643,991

听

6,923,749

听

6,669,026

Foreign, primarily Europe

听

5,722,380

听

1,401,455

听

4,887,428

听

4,357,121

听

13,848,660

听

3,045,446

听

11,811,177

听

11,026,147

Property, plant and equipment:

听

U.S.

听

644,839

听

605,487

听

607,437

听

Foreign, primarily Europe

听

412,429

听

406,130

听

407,201

听

1,057,268

听

1,011,617

听

1,014,638

听

No single customer accounted for 10% or more of the Company鈥檚 total revenues in the year ended March 2019, the three months ended March 2018 and the years ended December 2017 and 2016.