Segment Information

3 Months Ended

Mar. 31, 2020

The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.

The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net, restructuring charges, the non-service cost component of net periodic benefit cost, transaction fees and other non‑operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.

Results shown for the three months ended March 31, 2020 and 2019 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.

Information by reportable segment and a reconciliation to reported amounts are as follows:



	Three months ended March 31,
(in thousands)	2020			2019
Net sales
Titleist golf balls	$	116,239		$	141,667
Titleist golf clubs	93,214			91,318
Titleist golf gear	43,525			45,181
FootJoy golf wear	130,387			140,981
Other	25,376			14,555
Total net sales	$	408,741		$	433,702

Segment operating income (loss)
Titleist golf balls	$	3,243		$	19,728
Titleist golf clubs	4,503			(405		)
Titleist golf gear	8,865			9,151
FootJoy golf wear	14,297			20,144
Other	1,080			3,440
Total segment operating income	31,988			52,058
Reconciling items:
Interest expense, net	(4,123		)	(4,883		)
Restructuring charges	(11,628		)	—
Non-service cost component of net periodic benefit cost	(507		)	262
Other	885			877
Total income before income tax	$	16,615		$	48,314

Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.



	Three months ended March 31,
(in thousands)	2020		2019
United States	$	211,008	$	230,383
EMEA ⁽¹⁾	74,671		71,078
Japan	37,556		40,735
Korea	50,449		49,042
Rest of world	35,057		42,464
Total net sales	$	408,741	$	433,702

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(1) Europe, the Middle East and Africa ("EMEA")