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Segment Data and Related Information
9 Months Ended
Sep. 30, 2019
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, 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.
Effective January 1, 2019, the Company changed the way management internally analyzes the business and 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. Prior year amounts have been recast to conform to the 2019 presentation. These changes have no impact on previously reported consolidated balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, or cash flows.
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)2019201820192018
Net revenues
North America$1,015,920  $1,059,535  $2,675,389  $2,770,463  
EMEA160,981  147,640  440,405  414,170  
Asia-Pacific154,898  149,388  453,296  390,647  
Latin America52,186  54,299  141,095  141,570  
Connected Fitness39,346  32,160  101,385  90,098  
Corporate Other (1)6,125  (46) 14,337  (3,743) 
Total net revenues$1,429,456  $1,442,976  $3,825,907  $3,803,205  
(1) Corporate Other revenues 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)2019201820192018
Operating income (loss)
North America$237,229  $253,706  $536,700  $534,421  
EMEA21,989  16,726  44,700  17,935  
Asia-Pacific34,666  36,579  74,116  82,092  
Latin America233  (3,772) (4,017) (10,339) 
Connected Fitness7,023  2,132  8,103  7,254  
Corporate Other(162,220) (186,405) (496,905) (645,932) 
    Total operating income (loss)138,920  118,966  162,697  (14,569) 
Interest expense, net(5,655) (9,151) (15,881) (26,266) 
Other expense, net(429) (4,294) (2,224) (9,475) 
    Income (loss) before income taxes$132,836  $105,521  $144,592  $(50,310) 
The operating income (loss) information for Corporate Other presented above includes the impact of all restructuring, impairment and restructuring related charges related to the Company's 2018 restructuring plan. These unallocated charges are as follows:
(In thousands)Three Months Ended September 30, 2018Nine Months Ended September 30, 2018
Unallocated restructuring, impairment and restructuring related charges
North America related$13,056  $99,269  
EMEA related403  11,841  
Asia-Pacific related20  20  
Latin America related5,404  24,263  
Connected Fitness related178  178  
Corporate Other related5,227  18,450  
Total unallocated restructuring, impairment and restructuring related charges$24,288  $154,021  
There were no restructuring charges incurred during the three and nine months ended September 30, 2019.
Net revenues by product category are as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2019201820192018
Apparel$985,623  $978,457  $2,499,989  $2,495,723  
Footwear250,596  284,856  827,223  828,001  
Accessories118,164  116,186  306,406  314,250  
Net Sales1,354,383  1,379,499  3,633,618  3,637,974  
License revenues29,602  31,363  76,567  78,876  
Connected Fitness39,346  32,160  101,385  90,098  
Corporate Other6,125  (46) 14,337  (3,743) 
    Total net revenues$1,429,456  $1,442,976  $3,825,907  $3,803,205  

Net revenues by distribution channel are as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2019201820192018
Wholesale$891,709  $914,225  $2,417,028  $2,406,922  
Direct to Consumer462,674  465,274  1,216,590  1,231,052  
Net Sales1,354,383  1,379,499  3,633,618  3,637,974  
License revenues29,602  31,363  76,567  78,876  
Connected Fitness39,346  32,160  101,385  90,098  
Corporate Other6,125  (46) 14,337  (3,743) 
    Total net revenues$1,429,456  $1,442,976  $3,825,907  $3,803,205