Business Segment Information

9 Months Ended

Aug. 29, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

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				Nine Months Ended
	August 29, 2021		August 23, 2020(1)(2)		August 29, 2021		August 23, 2020(1)(2)
	(Dollars in thousands)
Net revenues:
Americas	$	837,976	$	549,798	$	2,194,333	$	1,578,106
Europe	494,481		390,373		1,288,859		1,032,339
Asia	165,125		122,914		595,963		456,308
Total net revenues	$	1,497,582	$	1,063,085	$	4,079,155	$	3,066,753
Operating income (loss):
Americas	$	202,923	$	92,294	$	486,192	$	178,585
Europe	139,952		87,611		308,786		152,290
Asia	(16,391)		(23,301)		19,905		(19,132)
Regional operating income (loss)	326,484		156,604		814,883		311,743
Corporate:
Restructuring	(3,615)		1,071		11,123		68,442
Other corporate staff costs and expenses	113,789		63,208		303,872		420,438
Corporate expenses	110,174		64,279		314,995		488,880
Total operating income (loss)	216,310		92,325		499,888		(177,137)
Interest expense	(18,118)		(28,437)		(61,361)		(56,337)
Loss on early extinguishment of debt	—		—		(30,338)		—
Other income (expense), net	4,847		(12,274)		5,220		(8,269)
Income (loss) before income taxes	$	203,039	$	51,614	$	413,409	$	(241,743)

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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. See 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.