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Segment Data and Related Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
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. 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 June 30,
 
Six Months Ended June 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Net revenues
 
 
 
 
 
 
 
North America
$
843,383

 
$
829,805

 
$
1,710,928

 
$
1,701,076

EMEA
135,901

 
103,896

 
262,833

 
206,751

Asia-Pacific
125,706

 
93,574

 
241,259

 
179,392

Latin America
40,757

 
38,001

 
87,271

 
76,455

Connected Fitness
29,112

 
25,916

 
57,938

 
47,362

Total net revenues
$
1,174,859

 
$
1,091,192

 
$
2,360,229

 
$
2,211,036


 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2018

2017
 
2018
 
2017
Operating income (loss)



 
 
 
 
North America
$
(93,192
)

$
(5,417
)
 
$
(136,687
)
 
$
(1,703
)
EMEA
(10,155
)

(4,616
)
 
(13,782
)
 
(2,987
)
Asia-Pacific
18,657


15,249

 
39,898

 
34,877

Latin America
(21,791
)

(8,093
)
 
(27,661
)
 
(15,952
)
Connected Fitness
1,606


(1,908
)
 
4,696

 
(11,484
)
    Total operating income (loss)
(104,875
)

(4,785
)
 
(133,536
)
 
2,751

Interest expense, net
(8,552
)

(7,841
)
 
(17,116
)
 
(15,662
)
Other expense, net
(8,069
)

(2,884
)
 
(5,181
)
 
(313
)
    Loss before income taxes
$
(121,496
)

$
(15,510
)
 
$
(155,833
)
 
$
(13,224
)

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 June 30, 2018 (1)
 
Six Months Ended June 30, 2018 (1)
 
Six Months Ending December 31, 2018 (1)
 
Year Ending December 31, 2018 (1)
 
Costs recorded in restructuring and impairment charges:
 
 
 
 
 
 
 
 
North America
$
65,429

 
$
96,467

 
$
45,380

 
$
141,847

 
EMEA
3,173

 
8,590

 
11,200

 
19,790

 
Asia-Pacific

 

 
500

 
500

 
Latin America
10,238

 
11,263

 
16,600

 
27,863

 
Connected Fitness

 

 

 

 
Total costs recorded in restructuring and impairment charges
$
78,840

 
$
116,320

 
$
73,680

 
$
190,000

 

(1) This table excludes additional non-cash charges of $5.9 million and $13.4 million for the three and six months ended June 30, 2018, respectively, and estimated non-cash charges of $6.6 million for the six months ended December 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 June 30,
 
Six Months Ended June 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Net Revenues
 
 
 
 
 
 
 
Apparel
$
747,294

 
$
680,653

 
$
1,513,569

 
$
1,396,090

Footwear
271,375

 
236,925

 
543,145

 
506,583

Accessories
105,906

 
122,588

 
198,064

 
211,686

    Total net sales
1,124,575

 
1,040,166

 
2,254,778

 
2,114,359

License revenues
21,172

 
25,110

 
47,513

 
49,315

Connected Fitness
29,112

 
25,916

 
57,938

 
47,362

    Total net revenues
$
1,174,859

 
$
1,091,192

 
$
2,360,229

 
$
2,211,036


Net revenues by distribution channel are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2018

2017
 
2018
 
2017
Net Revenues
 
 
 
 
 
 
 
Wholesale
$
710,408

 
$
654,648

 
$
1,489,000

 
$
1,427,268

Direct to Consumer
414,167

 
385,518

 
765,778

 
687,091

     Net Sales
1,124,575

 
1,040,166

 
2,254,778

 
2,114,359

Licensing
21,172

 
25,110

 
47,513

 
49,315

Connected Fitness
29,112

 
25,916

 
57,938

 
47,362

    Total net revenues
$
1,174,859

 
$
1,091,192

 
$
2,360,229

 
$
2,211,036