Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.3.0.814
Segment Information
 3 Months Ended
Aug. 31, 2015
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 and Mission brands. The Baseball/Softball segment includes the Easton 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 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 charges to cost of goods sold resulting from the fair market value adjustment to inventory, integration costs, costs related to reviewing corporate opportunities, and 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 August 31,
 
2015
 
2014
Hockey
$
137,546

 
$
160,415

Baseball/Softball
32,119

 
32,352

Other Sports
5,381

 
4,368

Total revenues
$
175,046

 
$
197,135



Segment EBITDA information is summarized as follows:
 
Three Months Ended August 31,
 
2015
 
2014
Hockey
$
19,201

 
$
38,976

Baseball/Softball
1,191

 
3,724

Other Sports
(996
)
 
(1,397
)
Total segment EBITDA (1)
$
19,396

 
$
41,303


(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 August 31,
 
2015
 
2014
Total segment EBITDA
$
19,396

 
$
41,303

Corporate expenses
(2,746
)
 
(1,461
)
Acquisition related expenses
(4,588
)
 
(8,768
)
Depreciation and amortization
(5,165
)
 
(5,200
)
Interest expense, net
(4,829
)
 
(5,407
)
Currency related losses
(5,053
)
 
(3,512
)
Other(1)
(749
)
 
(1,711
)
Income (loss) before income taxes
$
(3,734
)
 
$
15,244


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