BUSINESS SEGMENT INFORMATION

The Company manages its business according to three regional segments: the Americas, Europe and Asia. The Company considers its chief executive officer to be the Company’s chief operating decision maker. The Company’s chief operating decision maker manages business operations, evaluates performance and allocates resources based on the regional segments’ net revenues and operating income.

Business segment information for the Company is as follows:



	Three Months Ended						Six Months Ended
	May 24, 2020⁽¹⁾			May 26, 2019			May 24, 2020			May 26, 2019
	(Dollars in thousands)
Net revenues:
Americas	$	282,728		$	692,698		$	1,028,308		$	1,409,962
Europe	129,023			398,369			641,966			863,045
Asia	85,791			221,873			333,394			474,391
Total net revenues	$	497,542		$	1,312,940		$	2,003,668		$	2,747,398
Operating income (loss):
Americas	$	(37,748	)	$	101,631		$	86,291		$	225,287
Europe	(67,757		)	58,709			64,679			180,333
Asia	(28,499		)	17,063			4,169			60,028
Regional operating income (loss)	(134,004		)	177,403			155,139			465,648
Corporate:
Restructuring	67,371			—			67,371			—
Other corporate staff costs and expenses⁽²⁾	246,869			114,505			357,230			201,838
Corporate expenses	314,240			114,505			424,601			201,838
Total operating income (loss)	(448,244		)	62,898			(269,462		)	263,810
Interest expense	(11,246		)	(15,126		)	(27,900		)	(32,670		)
Underwriter commission paid on behalf of selling stockholders	—			(24,860		)	—			(24,860		)
Other income, net	1,305			3,166			4,005			1,520
Income (loss) before income taxes	$	(458,185	)	$	26,078		$	(293,357	)	$	207,800

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(1)	The COVID-19 pandemic has materially impacted the Company's business operations and results of operations for the three-month and six-month periods ended May 24, 2020. Refer to Note 1 for more information.

(2)

Corporate staff costs and expenses for the three-month and six-month periods ended May 24, 2020 includes incremental COVID-19 related charges that management does not attribute to any of the regional segments in order to provide increased transparency and comparability of regional performance. The Company recognized $49.9 million of incremental inventory reserves, of which $28.8 million, $13.5 million and $7.6 million were related to the Americas, Europe and Asia regional segments, respectively. Incremental allowance for doubtful accounts of $15.1 million was recognized, of which $6.3 million, $8.5 million and $0.3 million, were related to the Americas, Europe and Asia regional segments, respectively. Additionally, we recognized $54.1 million in impairment of long-lived assets related to certain retail locations, of which $48.6 million, $3.7 million and $1.8 million, were related to the Americas, Europe and Asia regional segments, respectively. Refer to Note 1 for additional information.