Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

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 and nine months ended September 30, 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 September 30,				Nine months ended September 30,
(in thousands)	2020		2019		2020		2019
Net sales
Titleist golf balls	$	170,121	$	120,885	$	388,499	$	435,857
Titleist golf clubs	120,818		126,779		286,428		325,107
Titleist golf gear	44,274		34,576		120,168		126,594
FootJoy golf wear	116,010		102,572		314,733		357,648
Other	31,709		32,354		81,847		67,880
Total net sales	$	482,932	$	417,166	$	1,191,675	$	1,313,086
Segment operating income
Titleist golf balls	$	47,697	$	17,830	$	60,988	$	75,530
Titleist golf clubs	19,199		20,099		21,341		26,559
Titleist golf gear	7,216		1,741		20,740		19,958
FootJoy golf wear	6,464		698		18,906		24,998
Other	4,969		3,112		8,716		11,699
Total segment operating income	85,545		43,480		130,691		158,744
Reconciling items:
Interest expense, net	(3,831)		(4,504)		(12,356)		(14,600)
Restructuring charges	(518)		—		(13,250)		—
Non-service cost component of net periodic benefit cost	(2,116)		(1,996)		(7,321)		(2,988)
Transaction fees	—		(68)		—		(2,015)
Other	(893)		824		193		2,050
Total income before income tax	$	78,187	$	37,736	$	97,957	$	141,191

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 September 30,				Nine months ended September 30,
(in thousands)	2020		2019		2020		2019
United States	$	271,278	$	215,676	$	627,516	$	702,326
EMEA (1)	65,442		55,667		174,239		186,746
Japan	42,282		55,195		101,980		134,743
Korea	61,455		55,726		177,793		165,178
Rest of world	42,475		34,902		110,147		124,093
Total net sales	$	482,932	$	417,166	$	1,191,675	$	1,313,086

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