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. The CODM also receives discrete financial information for the Company's Connected Fitness business. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM.

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. Intercompany balances were eliminated for separate disclosure. The majority of corporate service costs within North America have not been allocated to the Company's other segments. As the Company continues to grow its business outside of North America, a larger portion of its corporate overhead costs have begun to support global functions.



	Three Months Ended March 31,
(In thousands)	2018		2017
Net revenues
North America	$	867,545	$	871,271
EMEA	126,932		102,855
Asia-Pacific	115,553		85,818
Latin America	46,514		38,454
Connected Fitness	28,826		21,446
Total net revenues	$	1,185,370	$	1,119,844



	Three Months Ended March 31,
(In thousands)	2018			2017
Operating income (loss)
North America	$	(43,495	)	$	3,714
EMEA	(3,627		)	1,629
Asia-Pacific	21,241			19,628
Latin America	(5,870		)	(7,859		)
Connected Fitness	3,090			(9,576		)
Total operating income (loss)	(28,661		)	7,536
Interest expense, net	(8,564		)	(7,820		)
Other income, net	2,888			2,570
Income (loss) before income taxes	$	(34,337	)	$	2,286

The operating income (loss) information presented above includes the impact of restructuring and impairment charges related to the Company's restructuring plans. Charges incurred and expected to be incurred by segment in connection with the 2018 restructuring plan are as follows:



	Costs Incurred		Estimated Costs to be Incurred
(In thousands)	Three Months Ended March 31, 2018		Nine Months Ending December 31, 2018 (1)		Year Ending December 31, 2018 (1)
Costs recorded in restructuring and impairment charges:
North America	$	31,036	$	64,000	$	95,036
EMEA	5,418		—		5,418
Asia-Pacific	—		—		—
Latin America	1,026		16,000		17,026
Connected Fitness	—		—		—
Total costs recorded in restructuring and impairment charges	$	37,480	$	80,000	$	117,480

(1) This table excludes additional non-cash charges of $7.4 million for the three months ended March 31, 2018 associated with the reduction of inventory outside of current liquidation channels in line with the 2018 restructuring plan.

Net revenues by product category are as follows:



	Three Months Ended March 31,
(In thousands)	2018		2017
Net Revenues
Apparel	$	766,275	$	715,437
Footwear	271,770		269,659
Accessories	92,158		89,097
Total net sales	1,130,203		1,074,193
License revenues	26,341		24,205
Connected Fitness	28,826		21,446
Total net revenues	$	1,185,370	$	1,119,844

Net revenues by distribution channel are as follows:



	Three Months Ended March 31,
(In thousands)	2018		2017
Net Revenues
Wholesale	$	778,592	$	772,620
Direct to Consumer	351,611		301,573
Net Sales	1,130,203		1,074,193
Licensing	26,341		24,205
Connected Fitness	28,826		21,446
Total net revenues	$	1,185,370	$	1,119,844