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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company currently has four reportable segments, organized on the basis of product categories: (i) Titleist golf balls, (ii) Titleist golf clubs, (iii) Titleist golf gear and (iv) FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income. Segment operating income includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes certain other costs, such as interest expense, net; restructuring costs; the non-service cost component of net periodic benefit cost; transaction fees; as well as certain other non-operating gains and losses that the Company does not allocate to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the three and nine months ended September 30, 2024 and 2023 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
Net sales  
Titleist golf balls$190,560 $192,557 $646,017 $622,125 
Titleist golf clubs213,907 181,045 595,311 549,846 
Titleist golf gear51,574 47,657 188,661 184,571 
FootJoy golf wear133,137 136,669 482,753 500,174 
Other31,323 35,453 99,180 112,318 
Total net sales$620,501 $593,381 $2,011,922 $1,969,034 
Segment operating income  
Titleist golf balls$31,150 $43,770 $134,334 $131,591 
Titleist golf clubs49,930 36,509 124,670 118,455 
Titleist golf gear4,246 788 28,270 26,657 
FootJoy golf wear502 (1,469)34,814 32,927 
Other804 1,693 7,348 12,606 
Total segment operating income86,632 81,291 329,436 322,236 
Reconciling items:  
Interest expense, net(13,187)(9,389)(40,367)(30,234)
Non-service cost component of net periodic benefit cost(875)(844)(2,438)(2,501)
Other (1)
(4,097)(2,760)(18,816)(11,746)
Total income before income tax$68,473 $68,298 $267,815 $277,755 
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(1) For the nine months ended September 30, 2024, includes $7.0 million related to restructuring costs associated with the closure of certain production lines at the VIE's Fujian Fuh Deh Leh (“FDL”) factory (Note 16).
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
United States$374,219 $352,463 $1,200,989 $1,123,766 
EMEA (1)
75,496 75,643 263,850 266,502 
Japan41,738 39,035 108,731 118,183 
Korea67,091 65,652 226,167 241,267 
Rest of World61,957 60,588 212,185 219,316 
Total net sales$620,501 $593,381 $2,011,922 $1,969,034 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
In the fourth quarter of 2024, the CODM changed how they will evaluate the Company’s performance and allocate resources as a result of ongoing strategic convergence between the golf ball and golf club businesses. Concurrently, the Company updated its internal reporting, including the information provided to the CODM and as such, expects to update its reportable segments in its annual report on Form 10-K for the period ending December 31, 2024. Following these changes, the Company will have three reportable segments: (i) Titleist golf equipment, which will include the previous Titleist golf balls and Titleist golf clubs reportable segments, (ii) Golf gear and (iii) FootJoy golf wear. The Company’s activities that do not meet the criteria to be considered a reportable segment will continue to be reported within Other.