v3.2.0.727
Segment Data and Related Information
 6 Months Ended
Jun. 30, 2015
Segment Data and Related Information
Segment Data and Related Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance. As such, the CODM receives discrete financial information for the Company's principal business by geographic region based on the Company’s strategy to become a global brand. These geographic regions include North America; Latin America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific. Each geographic segment operates exclusively in one industry: the development, marketing and distribution of branded performance apparel, footwear and accessories. Beginning in the first quarter of 2015, the CODM began receiving discrete financial information for the Company's Connected Fitness business. Following the completion of the Company's acquisition of Endomondo and MFP in 2015, the Company has determined its Connected Fitness business is significant and will no longer be combined into other foreign countries for disclosure purposes. Due to the insignificance of the Latin America, EMEA and Asia-Pacific operating segments, they continue to be combined into other foreign countries for disclosure purposes.
The net revenues and operating income (loss) associated with the Company's segments are summarized in the following tables. Net revenues represent sales to external customers for each segment. In addition to net revenues, operating income (loss) is a primary financial measure used by the Company to evaluate performance of each segment. Intercompany balances were eliminated for separate disclosure. The majority of corporate service costs within North America have not been allocated to other foreign countries or Connected Fitness; however, certain costs and revenues included within North America in the prior period have been allocated to Connected Fitness in the current period. Prior period segment data has been recast by an immaterial amount within the tables below to conform to current period presentation.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2015
 
2014
 
2015
 
2014
Net revenues
 
 
 
 
 
 
 
North America
$
680,776

 
$
558,041

 
$
1,381,288

 
$
1,140,578

Other foreign countries
89,239

 
46,139

 
185,237

 
101,242

Connected Fitness
13,562

 
5,474

 
21,993

 
9,441

Total net revenues
$
783,577

 
$
609,654

 
$
1,588,518

 
$
1,251,261


 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2015
 
2014
 
2015
 
2014
Operating income (loss)
 
 
 
 
 
 
 
North America
$
52,352

 
$
46,616

 
$
90,721

 
$
79,536

Other foreign countries
(4,388
)
 
(7,074
)
 
(54
)
 
(7,727
)
Connected Fitness
(16,063
)
 
(4,848
)
 
(31,099
)
 
(10,259
)
    Total operating income
31,901

 
34,694

 
59,568

 
61,550

Interest expense, net
(4,262
)
 
(1,227
)
 
(6,472
)
 
(2,073
)
Other income (expense), net
41

 
247

 
(1,799
)
 
(627
)
    Income before income taxes
$
27,680

 
$
33,714

 
$
51,297

 
$
58,850


 
Net revenues by product category are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2015
 
2014
 
2015
 
2014
Apparel
$
515,252

 
$
420,028

 
$
1,070,707

 
$
879,277

Footwear
153,619

 
109,536

 
314,585

 
223,580

Accessories
83,040

 
59,932

 
146,191

 
111,470

    Total net sales
751,911

 
589,496

 
1,531,483

 
1,214,327

License revenues
18,104

 
14,684

 
35,042

 
27,493

Connected Fitness
13,562

 
5,474

 
21,993

 
9,441

    Total net revenues
$
783,577

 
$
609,654

 
$
1,588,518

 
$
1,251,261