Business Segment Information (Tables)

9 Months Ended

Aug. 23, 2020

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Business segment information for the Company is as follows:


	Three Months Ended						Nine Months Ended
	August 23, 2020⁽¹⁾		August 25, 2019		August 23, 2020⁽¹⁾		August 25, 2019

	(Dollars in thousands)
Net revenues:
Americas	$	549,798	$	770,817	$	1,578,106	$	2,180,779
Europe	390,373		463,258		1,032,339		1,326,303
Asia	122,914		213,006		456,308		687,397
Total net revenues	$	1,063,085	$	1,447,081	$	3,066,753	$	4,194,479
Operating income (loss):
Americas	$	92,294	$	151,558	$	178,585	$	376,845
Europe	87,611		102,911		152,290		283,244
Asia	(23,301)		17,410		(19,132)		77,438
Regional operating income (loss)	156,604		271,879		311,743		737,527
Corporate:
Restructuring	1,071		—		68,442		—
Other corporate staff costs and expenses⁽²⁾	63,208		100,661		420,438		302,499
Corporate expenses	64,279		100,661		488,880		302,499
Total operating income (loss)	92,325		171,218		(177,137)		435,028
Interest expense	(28,437)		(15,292)		(56,337)		(47,962)
Underwriter commission paid on behalf of selling stockholders	—		—		—		(24,860)
Other income, net	(12,274)		(4,369)		(8,269)		(2,849)
Income (loss) before income taxes	$	51,614	$	151,557	$	(241,743)	$	359,357

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(1)For the three-month and nine-month periods ended August 23, 2020, the Company's business and results of operations were impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter as most company-operated and wholesale customer doors were temporarily closed. Refer to Note 1 for more information.

(2)Corporate staff costs and expenses for the three-month and nine-month periods ended August 23, 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.

During the three-month period ended August 23, 2020, the Company recognized a $1.8 million reduction in incremental inventory reserves related to the Europe regional segment and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Recoveries of doubtful accounts of $6.6 million was recognized, of which $6.3 million and $0.3 million, were related to the Europe and Asia regional segments, respectively.

During the nine-month period ended August 23, 2020, the Company recognized $48.1 million of incremental inventory reserves of which $28.8 million, $11.7 million and $7.6 million were related to the Americas, Europe and Asia regional segments, respectively, and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Net charges related to incremental allowance for doubtful accounts of $8.5 million were recognized, of which $6.3 million and $2.2 million were related to the Americas and Europe regional segments, respectively. Additionally, the Company 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.