NOTE 13:

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.

Effective as of the beginning of 2017, certain of the Company’s global expenses that support all regional segments, including global e-commerce infrastructure and global brand merchandising, marketing and design, previously recorded centrally in the Americas region segment and Corporate expenses, have now been allocated to the three regional business segments, and reported in operating results. Business segment information for the prior-year period has been revised to reflect the change in presentation.

Business segment information for the Company is as follows:

 

		Three Months Ended
		February 26, 2017				February 28, 2016
		(Dollars in thousands)
Net revenues:
Americas		$	577,907			$	571,185
Europe			310,317				276,486
Asia			213,767				208,829
Total net revenues		$	1,101,991			$	1,056,500
Operating income:
Americas		$	90,342			$	88,032
Europe			64,539				50,939
Asia			35,941				40,893
Regional operating income			190,822				179,864
Corporate:
Restructuring, net			—				1,848
Restructuring-related charges			—				1,497
Other corporate staff costs and expenses			82,482				59,932
Corporate expenses			82,482				63,277
Total operating income			108,340				116,587
Interest expense			(19,934	)			(14,902	)
Other income (expense), net			408				(2,219	)
Income before income taxes		$	88,814			$	99,466

 

NOTE 20:

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. The Company reports net trade receivables and inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. The Company does not report its other assets by segment as that information is not used by the chief operating decision maker in assessing segment performance.

Effective as of the beginning of 2015, the Company’s regional licensing revenue, previously recorded centrally in the Company’s Americas region, was revised to be recorded in the Company’s respective regions. Regional licensing revenue are not significant to any of the Company’s regional segments individually in any of the periods presented herein, and accordingly, business segment information for the prior periods have not been revised.

 

Business segment information for the Company is as follows:

 

		Year Ended
		November 27, 2016				November 29, 2015				November 30, 2014
		(Dollars in thousands)
Net revenues:
Americas		$	2,683,008			$	2,726,461			$	2,862,867
Europe			1,091,362				1,016,418				1,143,313
Asia			778,369				751,614				747,812
Total net revenues		$	4,552,739			$	4,494,493			$	4,753,992
Operating income:
Americas		$	482,226			$	523,705			$	531,064
Europe(1)			197,136				184,362				181,036
Asia			105,073				121,645				108,511
Regional operating income			784,435				829,712				820,611
Corporate:
Restructuring, net			313				14,071				128,425
Restructuring-related charges			7,195				30,736				27,621
Lump-sum pension settlement loss			—				—				30,666
Other corporate staff costs and expenses			314,720				353,858				320,048
Corporate expenses			322,228				398,665				506,760
Total operating income			462,207				431,047				313,851
Interest expense			(73,170	)			(81,214	)			(117,597	)
Loss on early extinguishment of debt			—				(14,002	)			(20,343	)
Other income (expense), net			18,223				(25,433	)			(22,057	)
Income before income taxes		$	407,260			$	310,398			$	153,854

 

(1)

Europe’s operating income for the year ended November 27, 2016 includes a gain of $6.1 million related to the sale-leaseback of the Company’s distribution center in the United Kingdom in the second quarter of 2016. Included in Europe’s operating income for the year ended November 29, 2015 is a gain of $7.5 million related to the sale of the Company’s finishing and distribution facility in Turkey in the second quarter of 2015.

 

		Year Ended
		November 27, 2016				November 29, 2015				November 30, 2014
		(Dollars in thousands)
Depreciation and amortization expense:
Americas		$	30,322			$	27,558			$	29,508
Europe			12,574				14,985				20,564
Asia			8,210				7,455				8,501
Corporate			52,772				52,046				50,901
Total depreciation and amortization expense		$	103,878			$	102,044			$	109,474

 

		November 27, 2016
		Americas				Europe				Asia				Unallocated				Consolidated Total
		(Dollars in thousands)
Assets:
Trade receivables, net		$	326,211			$	94,106			$	46,510			$	12,191			$	479,018
Inventories			391,713				125,029				121,544				77,895				716,181
All other assets			—				—				—				1,791,897				1,791,897
Total assets																		$	2,987,096

 

		November 29, 2015
		Americas				Europe				Asia				Unallocated				Consolidated Total
		(Dollars in thousands)
Assets:
Trade receivables, net		$	343,808			$	81,079			$	53,613			$	19,696			$	498,196
Inventories			359,879				109,604				91,390				45,986				606,859
All other assets			—				—				—				1,779,340				1,779,340
Total assets																		$	2,884,395

Geographic information for the Company was as follows:

 

		Year Ended
		November 27, 2016				November 29, 2015				November 30, 2014
		(Dollars in thousands)
Net revenues:
United States		$	2,302,668			$	2,380,820			$	2,490,994
Foreign countries			2,250,071				2,113,673				2,262,998
Total net revenues		$	4,552,739			$	4,494,493			$	4,753,992
Net deferred tax assets:
United States		$	444,295			$	506,675			$	580,122
Foreign countries			78,806				73,965				80,742
Total net deferred tax assets		$	523,101			$	580,640			$	660,864
Long-lived assets:
United States		$	311,358			$	322,758			$	322,329
Foreign countries			108,332				89,062				84,507
Total long-lived assets		$	419,690			$	411,820			$	406,836