Segment Information |
8.
Segment Information
The
Company has identified five reportable segments for external reporting purposes – auto, aviation, marine, outdoor and fitness.
There are two operating segments (auto PND and auto OEM) that are not reported separately but aggregated within the auto reportable
segment. Each operating segment is individually reviewed and evaluated by the Chief Operating Decision Maker (CODM), who allocates
resources and assesses performance of each segment individually.
All
of the Company’s reportable segments offer products through the Company’s network of independent dealers and distributors
as well as through OEMs. However, the nature of products and types of customers for the five reportable segments vary. The Company’s
marine, auto, outdoor, and fitness segments include portable global positioning system (GPS) receivers and accessories sold primarily
to retail outlets. These products are produced primarily by the Company’s subsidiary in Taiwan. The Company’s aviation
products are portable and panel mount avionics for Visual Flight Rules and Instrument Flight Rules navigation and are sold primarily
to aviation dealers and certain aircraft manufacturers.
The
Company’s Chief Executive Officer has been identified as the CODM. The CODM uses operating income as the measure of profit
or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and
operating expenses, including certain allocated general and administrative costs. The accounting policies of the reportable segments
are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers.
The
Company’s reportable segments share many common resources, infrastructures and assets in the normal course of business.
Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, or capital expenditures
by segment to the CODM.
Revenues,
gross profit, and operating income for each of the Company’s reportable segments are presented below. In 2016 the Company
moved action camera related revenue and expenses from the outdoor segment to the auto segment, allowing for alignment and synergies
with other camera-based efforts occurring within the auto segment. The overall impact of the move was immaterial. However, action
camera related operating results for the 52-weeks ended December 26, 2015 has been recast to conform to the 2017 and 2016 presentation.
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Reportable
Segments |
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52-Weeks
Ended December 30, 2017 |
|
Outdoor |
|
|
Fitness |
|
|
Marine |
|
|
Auto |
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|
Aviation |
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Total |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net sales |
|
$ |
698,867 |
|
|
$ |
762,194 |
|
|
$ |
374,001 |
|
|
$ |
750,583 |
|
|
$ |
501,359 |
|
|
$ |
3,087,004 |
|
Gross profit |
|
|
448,410 |
|
|
|
422,636 |
|
|
|
212,592 |
|
|
|
327,921 |
|
|
|
371,605 |
|
|
|
1,783,164 |
|
Operating income |
|
|
249,867 |
|
|
|
146,765 |
|
|
|
50,328 |
|
|
|
67,967 |
|
|
|
153,933 |
|
|
|
668,860 |
|
53-Weeks
Ended December 31, 2016 |
|
|
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
Net sales |
|
$ |
546,326 |
|
|
$ |
818,486 |
|
|
$ |
331,947 |
|
|
$ |
882,558 |
|
|
$ |
439,348 |
|
|
$ |
3,018,665 |
|
Gross profit |
|
|
340,504 |
|
|
|
437,205 |
|
|
|
183,709 |
|
|
|
388,747 |
|
|
|
329,405 |
|
|
|
1,679,570 |
|
Operating income |
|
|
184,035 |
|
|
|
160,596 |
|
|
|
52,167 |
|
|
|
102,347 |
|
|
|
124,764 |
|
|
|
623,909 |
|
52-Weeks
Ended December 26, 2015 |
|
|
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|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
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|
Net sales |
|
$ |
411,184 |
|
|
$ |
661,599 |
|
|
$ |
286,778 |
|
|
$ |
1,062,091 |
|
|
$ |
398,618 |
|
|
$ |
2,820,270 |
|
Gross profit |
|
|
254,878 |
|
|
|
366,139 |
|
|
|
158,493 |
|
|
|
464,480 |
|
|
|
294,714 |
|
|
|
1,538,704 |
|
Operating income |
|
|
139,070 |
|
|
|
134,574 |
|
|
|
28,611 |
|
|
|
136,069 |
|
|
|
111,257 |
|
|
|
549,581 |
|
Net
sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December
30, 2017, December 31, 2016, and December 26, 2015. Note that APAC refers to the Asia Pacific region, and EMEA includes Europe,
the Middle East and Africa.
|
|
Americas |
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|
APAC |
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|
EMEA |
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Total |
|
December 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net sales
to external customers (1) |
|
$ |
1,475,661 |
|
|
$ |
436,188 |
|
|
$ |
1,175,155 |
|
|
$ |
3,087,004 |
|
Property and equipment,
net |
|
|
381,974 |
|
|
|
173,392 |
|
|
|
40,318 |
|
|
|
595,684 |
|
Net assets (2) |
|
|
2,325,569 |
|
|
|
982,898 |
|
|
|
493,999 |
|
|
|
3,802,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external
customers (1) |
|
$ |
1,518,934 |
|
|
$ |
386,549 |
|
|
$ |
1,113,182 |
|
|
$ |
3,018,665 |
|
Property and equipment,
net |
|
|
300,158 |
|
|
|
144,470 |
|
|
|
38,250 |
|
|
|
482,878 |
|
Net assets (2) |
|
|
2,153,161 |
|
|
|
933,999 |
|
|
|
330,843 |
|
|
|
3,418,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 26, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external
customers (1) |
|
$ |
1,469,243 |
|
|
$ |
337,888 |
|
|
$ |
1,013,139 |
|
|
$ |
2,820,270 |
|
Property and equipment,
net |
|
|
294,234 |
|
|
|
111,700 |
|
|
|
40,154 |
|
|
|
446,089 |
|
Net assets (2) |
|
|
2,110,108 |
|
|
|
921,410 |
|
|
|
313,608 |
|
|
|
3,345,126 |
|
(1)
The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
(2)
Americas and APAC net assets are primarily held in the United States and Taiwan, respectively.
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