Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.

The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net, restructuring charges, the non-service cost component of net periodic benefit cost, transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.

Results shown for the three and six months ended June 30, 2021 and 2020 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.

Information by reportable segment and a reconciliation to reported amounts are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Net sales
Titleist golf balls	$	202,265	$	102,139	$	375,902	$	218,378
Titleist golf clubs	152,821		72,396		308,648		165,610
Titleist golf gear	64,975		32,369		118,095		75,894
FootJoy golf wear	164,636		68,336		324,070		198,723
Other	40,153		24,762		79,020		50,138
Total net sales	$	624,850	$	300,002	$	1,205,735	$	708,743
Segment operating income (loss)
Titleist golf balls	$	40,494	$	10,048	$	74,811	$	13,291
Titleist golf clubs	29,379		(2,361)		71,178		2,142
Titleist golf gear	12,399		4,659		22,127		13,524
FootJoy golf wear	21,011		(1,855)		49,128		12,442
Other	6,548		2,667		13,019		3,747
Total segment operating income	109,831		13,158		230,263		45,146
Reconciling items:
Interest expense, net	(1,848)		(4,402)		(5,464)		(8,525)
Restructuring charges	—		(1,104)		—		(12,732)
Non-service cost component of net periodic benefit cost	(625)		(4,698)		(2,916)		(5,205)
Other	(265)		201		(329)		1,086
Total income before income tax	$	107,093	$	3,155	$	221,554	$	19,770

Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
United States	$	315,323	$	145,230	$	623,959	$	356,238
EMEA (1)	97,374		34,126		177,949		108,797
Japan	45,588		22,142		101,965		59,698
Korea	96,954		65,889		176,051		116,338
Rest of world	69,611		32,615		125,811		67,672
Total net sales	$	624,850	$	300,002	$	1,205,735	$	708,743

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(1) Europe, the Middle East and Africa ("EMEA")