Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
The Company has two reportable segments:
Wrangler — Wrangler® branded denim, apparel, footwear and accessories.
Lee — Lee® branded denim, apparel, footwear and accessories.
The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand operating results of Wrangler® and Lee®, which are the Company's operating and reportable segments.
In addition, we report an "Other" category in order to reconcile segment revenues and segment profit to the Company's operating results, but the Other category does not meet the criteria to be considered a reportable segment. Other primarily includes sales and licensing of Rock & Republic®, other company-owned brands and private label apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021, after which they were discontinued.
Accounting policies utilized for internal management reporting at the individual segments are consistent with those included in Note 1 to the Company's financial statements, except as noted below.
The Company has allocated costs for certain centralized functions and programs to the Wrangler® and Lee® segments based on appropriate metrics such as usage or production of net revenues. These centralized functions and programs include, but are not limited to, information technology, human resources, supply chain, insurance and related benefit costs associated with those functions.
Corporate and other expenses, including certain restructuring costs, and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit.
The following table presents financial information for the Company's reportable segments and income before income taxes:
Year Ended December
(In thousands) 2022 2021 2020
Segment revenues:
Wrangler $ 1,745,805  $ 1,575,231  $ 1,349,414 
Lee 874,366  887,052  687,620 
Total reportable segment revenues 2,620,171  2,462,283  2,037,034 
Other revenues 11,273  13,633  60,805 
Total net revenues $ 2,631,444  $ 2,475,916  $ 2,097,839 
Segment profit:
Wrangler $ 321,173  $ 294,153  $ 244,892 
Lee 121,056  128,305  37,912 
Total reportable segment profit $ 442,229  $ 422,458  $ 282,804 
Corporate and other expenses (88,932) (140,960) (143,065)
Interest expense (34,919) (38,900) (49,992)
Interest income 1,352  1,480  1,608 
(Loss) profit related to other revenues (594) 522  (18,419)
Income before income taxes $ 319,136  $ 244,600  $ 72,936 
The Company reports accounts receivable and inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. Segment assets included in the "Other accounts receivable and inventories" category represent balances related to other brands and corporate activities, and are provided for purposes of reconciliation. The Company does not report any other assets by segment. Total expenditures for long-lived assets are not disclosed as this information is not regularly provided to the chief operating decision maker at the segment level.
The following table presents assets for the Company's reportable segments and a reconciliation to total asset balances:
(In thousands) December 2022 December 2021
Segment assets:
Wrangler $ 526,507  $ 394,709 
Lee 282,563  247,573 
Total reportable segment assets 809,070  642,282 
Other accounts receivable and inventories 13,624  10,475 
Total accounts receivable and inventories $ 822,694  $ 652,757 
Cash and cash equivalents 59,179  185,322 
Prepaid expenses and other current assets 100,396  72,579 
Property, plant and equipment, net 104,465  105,155 
Operating lease assets 51,029  54,950 
Goodwill and intangible assets 222,988  226,851 
Deferred income tax assets 67,282  74,876 
Other assets 154,228  160,534 
Total assets $ 1,582,261  $ 1,533,024 
The following table presents supplemental information of net revenues by geographic area based on the location of the customer:
Year Ended December
(In thousands) 2022 2021 2020
U.S. $ 2,074,599  $ 1,868,909  $ 1,642,152 
International 556,845  607,007  455,687 
Total $ 2,631,444  $ 2,475,916  $ 2,097,839 
Our largest customer accounted for 36%, 34% and 38% of the Company's total net revenues in 2022, 2021 and 2020, respectively. Another customer accounted for 11%, 9% and 8% of total net revenues in 2022, 2021 and 2020, respectively. Sales to these two customers are included in both the Wrangler® and Lee® reportable segments.
The following table presents "property, plant and equipment, net" recorded in the Company's balance sheets by geographic area based on physical location:
(In thousands) December 2022 December 2021
Property, plant and equipment, net:
U.S. $ 63,704  $ 63,951 
International 40,761  41,204 
Total $ 104,465  $ 105,155