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Segment Data and Disaggregated Revenue | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Data and Disaggregated Revenue | Segment Data and Disaggregated RevenueThe 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, Europe, the Middle East and Africa (“EMEA”), Asia-Pacific, and Latin America. 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 segment. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM. The Company excludes certain corporate costs from its segment profitability measures. The Company reports these costs within Corporate Other, which is designed to provide increased transparency and comparability of the Company's operating segments' performance. Corporate Other consists largely of general and administrative expenses not allocated to an operating segment, including expenses associated with centrally managed departments such as global marketing, global IT, global supply chain, innovation and other corporate support functions; costs related to the Company's global assets and global marketing, costs related to the Company’s headquarters; restructuring and restructuring related charges; and certain foreign currency hedge gains and losses. 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.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Net revenues |  |  |  |  |  |  |
North America | $ | 962,565 |  |  | $ | 1,015,920 |  |  | $ | 2,021,247 |  |  | $ | 2,675,389 |
EMEA | 210,111 |  |  | 160,981 |  |  | 437,140 |  |  | 440,405 |
Asia-Pacific | 178,895 |  |  | 154,898 |  |  | 397,846 |  |  | 453,296 |
Latin America | 44,338 |  |  | 52,186 |  |  | 108,573 |  |  | 141,095 |
Connected Fitness | 36,894 |  |  | 39,346 |  |  | 102,600 |  |  | 101,385 |
Corporate Other (1) | 218 |  |  | 6,125 |  |  | 3,495 |  |  | 14,337 |
Total net revenues | $ | 1,433,021 |  |  | $ | 1,429,456 |  |  | $ | 3,070,901 |  |  | $ | 3,825,907 |
(1) Corporate Other consist of foreign currency hedge gains and losses related to revenues generated by entities within the Company's operating segments, but managed through the Company's central foreign exchange risk management program.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Operating income (loss) |  |  |  |  |  |  |
North America | $ | 224,593 |  |  | $ | 237,229 |  |  | $ | 251,579 |  |  | $ | 536,700 |
EMEA | 40,834 |  |  | 21,989 |  |  | 43,840 |  |  | 44,700 |
Asia-Pacific | 19,248 |  |  | 34,666 |  |  | (30,040) |  |  | 74,116 |
Latin America | 1,802 |  |  | 233 |  |  | (50,756) |  |  | (4,017) |
Connected Fitness | 6,629 |  |  | 7,023 |  |  | 14,020 |  |  | 8,103 |
Corporate Other | (234,536) |  |  | (162,220) |  |  | (897,927) |  |  | (496,905) |
Total operating income (loss) | 58,570 |  |  | 138,920 |  |  | (669,284) |  |  | 162,697 |
Interest expense, net | (14,955) |  |  | (5,655) |  |  | (32,251) |  |  | (15,881) |
Other expense, net | (7,184) |  |  | (429) |  |  | (10,493) |  |  | (2,224) |
Income (loss) before income taxes | $ | 36,431 |  |  | $ | 132,836 |  |  | $ | (712,028) |  |  | $ | 144,592 |
Net revenues by product category are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Apparel | $ | 927,041 |  |  | $ | 985,623 |  |  | $ | 1,951,186 |  |  | $ | 2,499,989 |
Footwear | 298,687 |  |  | 250,596 |  |  | 693,464 |  |  | 827,223 |
Accessories | 145,060 |  |  | 118,164 |  |  | 268,912 |  |  | 306,406 |
Net Sales | 1,370,788 |  |  | 1,354,383 |  |  | 2,913,562 |  |  | 3,633,618 |
License revenues | 25,121 |  |  | 29,602 |  |  | 51,244 |  |  | 76,567 |
Connected Fitness | 36,894 |  |  | 39,346 |  |  | 102,600 |  |  | 101,385 |
Corporate Other (1) | 218 |  |  | 6,125 |  |  | 3,495 |  |  | 14,337 |
Total net revenues | $ | 1,433,021 |  |  | $ | 1,429,456 |  |  | $ | 3,070,901 |  |  | $ | 3,825,907 |
(1) Corporate Other consist of foreign currency hedge gains and losses related to revenues generated by entities within the Company's operating segments, but managed through the Company's central foreign exchange risk management program. Net revenues by distribution channel are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Wholesale | $ | 830,478 |  |  | $ | 891,709 |  |  | $ | 1,721,432 |  |  | $ | 2,417,028 |
Direct to Consumer | 540,310 |  |  | 462,674 |  |  | 1,192,130 |  |  | 1,216,590 |
Net Sales | 1,370,788 |  |  | 1,354,383 |  |  | 2,913,562 |  |  | 3,633,618 |
License revenues | 25,121 |  |  | 29,602 |  |  | 51,244 |  |  | 76,567 |
Connected Fitness | 36,894 |  |  | 39,346 |  |  | 102,600 |  |  | 101,385 |
Corporate Other (1) | 218 |  |  | 6,125 |  |  | 3,495 |  |  | 14,337 |
Total net revenues | $ | 1,433,021 |  |  | $ | 1,429,456 |  |  | $ | 3,070,901 |  |  | $ | 3,825,907 |
(1) Corporate Other consist of foreign currency hedge gains and losses related to revenues generated by entities within the Company's operating segments, but managed through the Company's central foreign exchange risk management program.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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