SEGMENT INFORMATION

3 Months Ended

Apr. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

11.SEGMENT INFORMATION

In accordance with the “Segment Reporting” topic of the FASB ASC, the Company reports segment data based on management responsibility: The Children’s Place U.S. and The Children’s Place Canada.  Included in The Children’s Place U.S. segment are the Company’s U.S. based stores, including Puerto Rico, and its e-commerce store, www.childrensplace.com.  The Company measures its segment profitability based on operating income, defined as income from continuing operations before interest and taxes.  Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment.  Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place Canada segment based primarily on net sales.  The assets related to these functions are not allocated.    The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances.  Net sales from external customers are derived from merchandise sales and the Company has no customer that accounts for more than 10% of its net sales.  As of April 30, 2011, The Children’s Place U.S. operated 922 stores and The Children’s Place Canada operated 110 stores.  As of May 1, 2010, The Children’s Place U.S. operated 866 stores and The Children’s Place Canada operated 96 stores.

The following tables provide segment level financial information for the First Quarter 2011 and the First Quarter 2010 (dollars in thousands):

	Thirteen Weeks Ended
	April 30,			May 1,
	2011			2010
Net sales:
The Children’s Place U.S.	$	380,508		$	373,413
The Children’s Place Canada	50,298			48,720
Total net sales	$	430,806		$	422,133
Operating income:
The Children’s Place U.S.	$	41,255		$	39,340
The Children’s Place Canada	7,521			8,354
Total operating income	$	48,776		$	47,694
Operating income as a percent of net sales:
The Children’s Place U.S.	10.8		%	10.5		%
The Children’s Place Canada	15.0		%	17.1		%
Total operating income	11.3		%	11.3		%
Depreciation and amortization:
The Children’s Place U.S.	$	15,704		$	15,785
The Children’s Place Canada	2,047			1,840
Total depreciation and amortization	$	17,751		$	17,625
Capital expenditures:
The Children’s Place U.S.	$	21,371		$	22,804
The Children’s Place Canada	3,164			1,110
Total capital expenditures	$	24,535		$	23,914

Total assets by segment are as follows (in thousands):

	April 30,		January 29,		May 1,
	2011		2011		2010
Total assets:
The Children’s Place U.S.	$	722,821	$	720,951	$	764,933
The Children’s Place Canada	142,141		133,380		109,647
Total assets	$	864,962	$	854,331	$	874,580