Columbia Sportswear 2014 Annual Report Download - page 9

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5
addition, we operate outlet stores, which serve an important role in our overall inventory management by allowing us to
sell a significant portion of excess, discontinued and out-of-season products while maintaining the integrity of our brands
in wholesale and distributor channels.
We operate in four geographic segments: (1) the United States, (2) Latin America and Asia Pacific (“LAAP”), (3)
Europe, Middle East and Africa (“EMEA”), and (4) Canada, which are reflective of our internal organization, management,
and oversight structure. Each geographic segment operates predominantly in one industry: the design, development,
marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment. The following
table presents net sales to unrelated entities and approximate percentages of net sales by geographic segment for each of
the last three years ended December 31 (dollars in millions):
2014 2013 2012
Net Sales % of Sales Net Sales % of Sales Net Sales % of Sales
United States $1,198.4 57.1% $ 971.3 57.7% $ 946.7 56.7%
LAAP 491.6 23.4 354.4 21.0 377.6 22.6
EMEA 259.2 12.3 240.7 14.3 230.6 13.8
Canada 151.4 7.2 118.6 7.0 114.7 6.9
Total $2,100.6 100.0% $ 1,685.0 100.0% $ 1,669.6 100.0%
United States
The United States accounted for 57.1% of our net sales for 2014. We sell our products in the United States to
approximately 3,300 wholesale customers and through our own direct-to-consumer channels. As of December 31, 2014,
our United States direct-to-consumer operations consisted of 74 outlet retail stores, 19 branded retail stores and 5 brand-
specific e-commerce websites. In addition, we earn licensing income in the United States based on our licensees’ sale of
licensed products.
We distribute the majority of our products sold in the United States from distribution centers that we own and operate
in Portland, Oregon and Robards, Kentucky, as well as one that we lease in Carlsbad, California. In some instances, we
arrange to have products shipped from contract manufacturers through third party logistics vendors and/or directly to
wholesale customer-designated facilities in the United States.
LAAP
The LAAP region accounted for 23.4% of our net sales for 2014. We sell our products in the LAAP region to
approximately 300 wholesale customers in Japan and Korea and to 13 independent distributors that sell to approximately
500 wholesale customers in locations throughout the LAAP region, including Australia, New Zealand, Latin America and
Asia. In addition, as of December 31, 2014, there were 151 and 256 dealer-operated, branded, outlet and shop-in-shop
locations in Japan and Korea, respectively. We also sell Columbia, Mountain Hardwear, Sorel and Montrail products through
e-commerce websites in Japan and Korea. In addition, we earn licensing income in our LAAP region based on our distributors’
production and sale of licensed products.
We distribute our products to wholesale customers, our own retail stores and licensed stores in Japan through an
independent logistics company that owns and operates a warehouse located near Tokyo, Japan. We distribute our products
to wholesale customers, our own retail stores and licensed stores in Korea from a leased warehouse facility near Seoul,
Korea. The majority of sales to our LAAP distributors are shipped directly from the contract manufacturers from which
we source our products.
On January 1, 2014, we commenced operations of a majority-owned joint venture with Swire Resources Limited
("Swire") for purposes of continuing the development of our business in China. The joint venture operates approximately
80 retail locations and a branded e-commerce website, and has distribution relationships with approximately 50 wholesale
dealers that operate approximately 700 retail locations. As a 60% majority-owned entity that we control, the joint venture's
operations are included in our consolidated financial results. We distribute our products to wholesale customers and our
own retail stores in China through independent logistic companies that own and operate warehouses in Shanghai and