Business Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates in two segments: North America and International. These segments are strategic business units that are managed separately based on geography. The North America segment consists of manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S., Canada and Mexico. The International segment consists of manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). On August 2, 2021, the Company acquired Dreams, which is included in the International segment. Corporate operating expenses are not included in either of the segments and are presented separately as a reconciling item to consolidated results. The Company evaluates segment performance based on net sales, gross profit and operating income.

The Company's North America and International segment assets include investments in subsidiaries that are appropriately eliminated in the Company's accompanying Condensed Consolidated Financial Statements. The remaining inter-segment eliminations are comprised of intercompany accounts receivable and payable.

The following table summarizes total assets by segment:

(in millions)	September 30, 2022		December 31, 2021
North America	$	5,010.3	$	4,360.6
International	1,092.0		1,305.9
Corporate	824.7		730.9
Inter-segment eliminations	(2,575.3)		(2,074.0)
Total assets	$	4,351.7	$	4,323.4

 The following table summarizes property, plant and equipment, net, by segment:

(in millions)	September 30, 2022		December 31, 2021
North America	$	619.7	$	449.9
International	75.4		82.3
Corporate	32.2		51.3
Total property, plant and equipment, net	$	727.3	$	583.5

The following table summarizes operating lease right-of-use assets by segment:

(in millions)	September 30, 2022		December 31, 2021
North America	$	336.7	$	280.6
International	149.1		199.0
Corporate	4.2		1.0
Total operating lease right-of-use assets	$	490.0	$	480.6

The following table summarizes segment information for the three months ended September 30, 2022:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	1,057.7	$	225.6	$	—	$	—	$	1,283.3
Inter-segment sales	$	0.5	$	0.2	$	—	$	(0.7)	$	—
Inter-segment royalty expense (income)	3.4		(3.4)		—		—		—
Gross profit	420.7		120.4		—		—		541.1
Operating income (loss)	205.0		32.6		(36.6)		—		201.0
Income (loss) from continuing operations before income taxes	203.0		33.9		(61.8)		—		175.1
Depreciation and amortization (1)	$	24.5	$	5.8	$	14.0	$	—	$	44.3
Capital expenditures	75.3		8.5		2.0		—		85.8

(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the three months ended September 30, 2021:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	1,120.0	$	238.3	$	—	$	—	$	1,358.3
Inter-segment sales	$	0.3	$	0.6	$	—	$	(0.9)	$	—
Inter-segment royalty expense (income)	2.1		(2.1)		—		—		—
Gross profit	447.1		130.0		—		—		577.1
Operating income (loss)	237.0		50.3		(37.5)		—		249.8
Income (loss) from continuing operations before income taxes	235.7		50.0		(49.5)		—		236.2
Depreciation and amortization (1)	$	22.2	$	4.9	$	18.0	$	—	$	45.1
Capital expenditures	21.3		4.1		4.1		—		29.5

(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the nine months ended September 30, 2022:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	2,953.8	$	780.0	$	—	$	—	$	3,733.8
Inter-segment sales	$	1.4	$	0.9	$	—	$	(2.3)	$	—
Inter-segment royalty expense (income)	12.8		(12.8)		—		—		—
Gross profit	1,138.9		421.5		—		—		1,560.4
Operating income (loss)	506.5		135.2		(108.2)		—		533.5
Income (loss) from continuing operations before income taxes	503.6		135.0		(175.0)		—		463.6
Depreciation and amortization (1)	$	70.7	$	17.7	$	44.1	$	—	$	132.5
Capital expenditures	188.2		23.1		4.7		—		216.0

(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes segment information for the nine months ended September 30, 2021:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	3,017.1	$	554.1	$	—	$	—	$	3,571.2
Inter-segment sales	$	1.5	$	0.9	$	—	$	(2.4)	$	—
Inter-segment royalty expense (income)	6.5		(6.5)		—		—		—
Gross profit	1,236.4		317.8		—		—		1,554.2
Operating income (loss)	627.8		139.9		(106.2)		—		661.5
Income (loss) from continuing operations before income taxes	625.0		138.9		(170.9)		—		593.0
Depreciation and amortization (1)	$	64.9	$	12.0	$	51.9	$	—	$	128.8
Capital expenditures	62.4		8.7		11.0		—		82.1

(1)Depreciation and amortization includes stock-based compensation amortization expense.

The following table summarizes property, plant and equipment, net by geographic region:

(in millions)	September 30, 2022		December 31, 2021
United States	$	631.6	$	481.1
All Other	95.7		102.4
Total property, plant and equipment, net	$	727.3	$	583.5

The following table summarizes operating lease right-of-use assets by geographic region:

(in millions)	September 30, 2022		December 31, 2021
United States	$	328.5	$	278.3
United Kingdom	120.0		162.8
All Other	41.5		39.5
Total operating lease right-of-use assets	$	490.0	$	480.6

The following table summarizes net sales by geographic region:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2022		2021		2022		2021
United States	$	982.6	$	1,018.8	$	2,737.2	$	2,783.6
All Other	300.7		339.5		996.6		787.6
Total net sales	$	1,283.3	$	1,358.3	$	3,733.8	$	3,571.2