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Segment Data and Disaggregated Revenue | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
SEGMENT DATA AND DISAGGREGATED REVENUE | SEGMENT DATA AND DISAGGREGATED REVENUE 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 of being 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. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM. Prior to the sale of MyFitnessPal in December 2020, the CODM also received discrete financial information for the Connected Fitness Segment. However, beginning January 1, 2021, the Company no longer reports Connected Fitness as a discrete reportable operating segment (see Note 1 to the unaudited condensed consolidated financial statements). All prior period balances have been recast to conform to current period presentation. Such reclassifications did not affect total consolidated revenues, consolidated income from operations or consolidated net income. The Company excludes certain corporate costs from its segment profitability measures. The Company reports these costs within Corporate Other, along with the revenue and costs related to the Company's MMR platforms, which is designed to provide increased transparency and comparability of the Company's operating segments' performance. Furthermore, the majority of the costs included within 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 such as restructuring and restructuring related charges; and certain foreign currency hedge gains and losses. The following tables summarize the Company's net revenues and operating income (loss) by its geographic segments. Intercompany balances were eliminated for separate disclosure:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Net revenues |  |  |  |  |  |  |
North America | $ | 1,035,862 |  |  | $ | 962,565 |  |  | $ | 2,747,082 |  |  | $ | 2,021,247 |
EMEA | 241,201 |  |  | 210,111 |  |  | 642,308 |  |  | 437,140 |
Asia-Pacific | 211,950 |  |  | 178,895 |  |  | 614,539 |  |  | 397,846 |
Latin America | 56,380 |  |  | 44,338 |  |  | 151,203 |  |  | 108,573 |
Corporate Other (1) | 139 |  |  | 37,112 |  |  | (871) |  |  | 106,095 |
Total net revenues | $ | 1,545,532 |  |  | $ | 1,433,021 |  |  | $ | 4,154,261 |  |  | $ | 3,070,901 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Operating income (loss) |  |  |  |  |  |  |
North America | $ | 292,367 |  |  | $ | 224,593 |  |  | $ | 728,698 |  |  | $ | 251,579 |
EMEA | 41,772 |  |  | 40,834 |  |  | 108,350 |  |  | 43,840 |
Asia-Pacific | 40,529 |  |  | 19,248 |  |  | 111,088 |  |  | (30,040) |
Latin America | 10,831 |  |  | 1,802 |  |  | 18,289 |  |  | (50,756) |
Corporate Other (1) | (213,435) |  |  | (227,907) |  |  | (566,266) |  |  | (883,907) |
Total operating income (loss) | 172,064 |  |  | 58,570 |  |  | 400,159 |  |  | (669,284) |
Interest expense, net | (9,261) |  |  | (14,955) |  |  | (36,705) |  |  | (32,251) |
Other income (expense), net | (29,476) |  |  | (7,184) |  |  | (75,150) |  |  | (10,493) |
Income (loss) before income taxes | $ | 133,327 |  |  | $ | 36,431 |  |  | $ | 288,304 |  |  | $ | (712,028) |
The following tables summarize the Company's net revenues by product category and distribution channels:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Apparel | $ | 1,058,231 |  |  | $ | 927,041 |  |  | $ | 2,742,465 |  |  | $ | 1,951,186 |
Footwear | 329,718 |  |  | 298,687 |  |  | 981,406 |  |  | 693,464 |
Accessories | 126,345 |  |  | 145,060 |  |  | 355,244 |  |  | 268,912 |
Net Sales | 1,514,294 |  |  | 1,370,788 |  |  | 4,079,115 |  |  | 2,913,562 |
License revenues | 31,099 |  |  | 25,121 |  |  | 76,017 |  |  | 51,244 |
Corporate Other (1) | 139 |  |  | 37,112 |  |  | (871) |  |  | 106,095 |
Total net revenues | $ | 1,545,532 |  |  | $ | 1,433,021 |  |  | $ | 4,154,261 |  |  | $ | 3,070,901 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Wholesale | $ | 910,655 |  |  | $ | 830,478 |  |  | $ | 2,477,853 |  |  | $ | 1,721,432 |
Direct-to-consumer | 603,639 |  |  | 540,310 |  |  | 1,601,262 |  |  | 1,192,130 |
Net Sales | 1,514,294 |  |  | 1,370,788 |  |  | 4,079,115 |  |  | 2,913,562 |
License revenues | 31,099 |  |  | 25,121 |  |  | 76,017 |  |  | 51,244 |
Corporate Other (1) | 139 |  |  | 37,112 |  |  | (871) |  |  | 106,095 |
Total net revenues | $ | 1,545,532 |  |  | $ | 1,433,021 |  |  | $ | 4,154,261 |  |  | $ | 3,070,901 |
(1) Prior to Fiscal 2021, the Company's Connected Fitness segment was separately disclosed, however, effective January 1, 2021, Corporate Other now includes the remaining Connected Fitness business consisting of MMR for Fiscal 2021 and the entire Connected Fitness business for Fiscal 2020. All prior periods were recast to conform to the current period presentation. Such reclassifications did not affect total consolidated net revenues, consolidated income from operations or consolidated net income (see Note 1 to the unaudited condensed consolidated financial statements).

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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