Business Segment Information

9 Months Ended

Sep. 30, 2023

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). 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, 2023		December 31, 2022
North America	$	5,476.1	$	5,161.7
International	1,336.4		1,181.5
Corporate	1,230.4		1,077.1
Inter-segment eliminations	(3,496.8)		(3,060.5)
Total assets	$	4,546.1	$	4,359.8

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

(in millions)	September 30, 2023		December 31, 2022
North America	$	728.6	$	672.1
International	86.9		87.3
Corporate	33.9		31.7
Total property, plant and equipment, net	$	849.4	$	791.1

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

(in millions)	September 30, 2023		December 31, 2022
North America	$	414.9	$	349.0
International	167.6		154.1
Corporate	3.0		3.7
Total operating lease right-of-use assets	$	585.5	$	506.8

The following table summarizes segment information for the three months ended September 30, 2023:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	1,023.7	$	253.4	$	—	$	—	$	1,277.1
Inter-segment sales	$	0.2	$	0.1	$	—	$	(0.3)	$	—
Inter-segment royalty expense (income)	9.5		(9.5)		—		—		—
Gross profit	430.4		143.3		—		—		573.7
Operating income (loss)	195.5		40.0		(52.3)		—		183.2
Income (loss) before income taxes	192.5		41.2		(83.0)		—		150.7
Depreciation and amortization (1)	$	25.1	$	6.3	$	13.5	$	—	$	44.9
Capital expenditures	28.8		7.7		4.1		—		40.6

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

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 nine months ended September 30, 2023:

(in millions)	North America		International		Corporate		Eliminations		Consolidated
Net sales	$	2,960.1	$	794.8	$	—	$	—	$	3,754.9
Inter-segment sales	$	0.8	$	0.5	$	—	$	(1.3)	$	—
Inter-segment royalty expense (income)	26.2		(26.2)		—		—		—
Gross profit	1,177.8		438.1		—		—		1,615.9
Operating income (loss)	505.6		118.1		(138.4)		—		485.3
Income (loss) before income taxes	499.1		116.9		(229.5)		—		386.5
Depreciation and amortization (1)	$	74.9	$	19.2	$	41.4	$	—	$	135.5
Capital expenditures	126.9		19.2		7.2		—		153.3

(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 property, plant and equipment, net by geographic region:

(in millions)	September 30, 2023		December 31, 2022
United States	$	739.8	$	682.0
All other	109.6		109.1
Total property, plant and equipment, net	$	849.4	$	791.1

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

(in millions)	September 30, 2023		December 31, 2022
United States	$	405.6	$	339.6
United Kingdom	135.7		122.9
All other	44.2		44.3
Total operating lease right-of-use assets	$	585.5	$	506.8