Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.3.1.900
Segment Information
 9 Months Ended
Feb. 29, 2016
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION

The Company has two reportable operating segments, Hockey and Baseball/Softball. The remaining operating segments do not meet the criteria for a reportable segment and are included in Other Sports. The Hockey segment includes the Bauer, Mission and Easton Hockey brands. The Baseball/Softball segment includes the Easton Baseball/Softball and Combat brands. Other Sports includes the Lacrosse and Soccer operating segments, which includes the Maverik and Cascade brands for Lacrosse, and the Inaria brand for Soccer.

These operating segments were determined based on the management structure and the financial information, among other factors, reviewed by the Chief Operating Decision Maker (“CODM”) to assess segment performance. Operating segment profit is evaluated using EBITDA adjusted for items excluded by the CODM, which is not a measure defined by U.S. GAAP, and is reviewed by the CODM. Certain PSG functional platform costs are directly allocated to each operating segment based on usage or other relevant operational metrics. PSG’s functional platform costs consist of expenses incurred by centrally-managed functions, including global information systems, finance and legal, distribution and logistics, sourcing and manufacturing, and other miscellaneous costs.

PSG corporate expenses, currency related gains (losses), acquisition related expenses and other costs are not controlled by the management at each operating segment and therefore are excluded from segment EBITDA. PSG corporate expenses consist of executive compensation and administration costs, public company compliance and other related costs, certain tax credits and other miscellaneous costs. Currency related gains (losses) consists of foreign exchange gains (losses) and the unrealized gain (loss) on derivative instruments. The realized gain (loss) on derivative instruments is included in the EBITDA of the Hockey operating segment because it currently relates specifically to Hockey cost of goods sold. Acquisition related expenses consist of (i) charges to cost of goods sold resulting from the fair market value adjustment to inventory, (ii) integration costs, (iii) costs related to reviewing corporate opportunities, and (iv) transaction costs. Other costs consist of share-based payment expenses and items that the CODM excludes from segment EBITDA, including, for example, items that are infrequent in nature such as costs related to share offerings.

Segment revenue information is summarized as follows:
 
Three Months Ended February 29 and 28,
 
Nine Months Ended February 29 and 28,
 
2016
 
2015
 
2016
 
2015
Hockey
$
56,297

 
$
53,936

 
$
285,724

 
$
327,734

Baseball/Softball
57,259

 
71,946

 
140,318

 
153,531

Other Sports
12,525

 
11,864

 
28,115

 
25,870

Total revenues
$
126,081

 
$
137,746

 
$
454,157

 
$
507,135



Segment EBITDA information is summarized as follows:
 
Three Months Ended February 29 and 28,
 
Nine Months Ended February 29 and 28,
 
2016
 
2015
 
2016
 
2015
Hockey
$
(15,900
)
 
$
(3,935
)
 
$
10,628

 
$
47,959

Baseball/Softball
3,582

 
18,889

 
12,660

 
34,087

Other Sports
2,671

 
2,097

 
2,585

 
2,214

Total segment EBITDA (1)
$
(9,647
)
 
$
17,051

 
$
25,873

 
$
84,260


(1)
Represents a non-GAAP financial measure.

The reconciliation of total segment EBITDA to income before income taxes is summarized as follows:
 
Three Months Ended February 29 and 28,
 
Nine Months Ended February 29 and 28,
 
2016
 
2015
 
2016
 
2015
Total segment EBITDA
$
(9,647
)
 
$
17,051

 
$
25,873

 
$
84,260

Corporate expenses
(1,370
)
 
(2,443
)
 
(5,012
)
 
(5,781
)
Acquisition related expenses
(4,595
)
 
(2,517
)
 
(13,775
)
 
(14,149
)
Depreciation and amortization
(5,661
)
 
(5,278
)
 
(16,490
)
 
(15,845
)
Impairment of goodwill and intangible assets
(145,112
)
 
—

 
(145,112
)
 
—

Interest expense, net
(5,406
)
 
(4,768
)
 
(15,688
)
 
(14,960
)
Currency related losses
(3,072
)
 
(13,299
)
 
(10,020
)
 
(21,335
)
Other(1)
(2,472
)
 
(3,281
)
 
(6,470
)
 
(9,211
)
Income (loss) before income taxes
$
(177,335
)
 
$
(14,535
)
 
$
(186,694
)
 
$
2,979


(1)
Other consists of share-based payments expense and items that the CODM excludes from segment EBITDA.