SEGMENT INFORMATION

12 Months Ended

Jan. 28, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

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. and Puerto Rico based stores. Each segment includes an e-commerce business located at 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 major customers that account for more than 10% of its net sales.  As of January 28, 2012, The Children’s Place U.S. operated 926 stores and The Children’s Place Canada operated 123 stores. As of January 29, 2011, The Children’s Place U.S. operated 892 stores and The Children’s Place Canada operated 103 stores.

The following tables provide segment level financial information for Fiscal 2011, Fiscal 2010 and Fiscal 2009 (dollars in thousands):

	Fiscal Year Ended
	January 28, 2012			January 29, 2011			January 30, 2010
Net sales (1):
The Children’s Place U.S.	$	1,489,795		$	1,450,116		$	1,441,562
The Children’s Place Canada	226,067			223,883			202,025
Total net sales	$	1,715,862		$	1,673,999		$	1,643,587
Gross profit:
The Children’s Place U.S.	$	557,577		$	555,888		$	559,865
The Children’s Place Canada	106,287			107,260			99,636
Total gross profit	$	663,864		$	663,148		$	659,501
Gross Margin:
The Children’s Place U.S.	37.4		%	38.3		%	38.8		%
The Children’s Place Canada	47.0		%	47.9		%	49.3		%
Total gross margin	38.7		%	39.6		%	40.1		%
Operating income:
The Children’s Place U.S. (2)	$	80,847		$	96,881		$	90,873
The Children’s Place Canada	29,160			39,455			39,199
Total operating income	$	110,007		$	136,336		$	130,072

Operating income as a percent of net sales:
The Children’s Place U.S.	5.4		%	6.7		%	6.3		%
The Children’s Place Canada	12.9		%	17.6		%	19.4		%
Total operating income	6.4		%	8.1		%	7.9		%
Depreciation and amortization:
The Children’s Place U.S.	$	64,788		$	63,990		$	64,258
The Children’s Place Canada	9,785			7,650			7,189
Total depreciation and amortization	$	74,573		$	71,640		$	71,447
Capital expenditures:
The Children’s Place U.S.	$	66,690		$	78,401		$	55,965
The Children’s Place Canada	13,074			5,544			6,252
Total capital expenditures	$	79,764		$	83,945		$	62,217

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(1) All of the Company's foreign revenues are included in The Children's Place Canada segment.

14. SEGMENT INFORMATION (Continued)

(2) Included in Fiscal 2009 is approximately $2.0 million of exit costs related to the relocation of the Company's e-commerce fulfillment center.

	January 28, 2012		January 29, 2011
Total assets:
The Children’s Place U.S.	$	693,489	$	720,951
The Children’s Place Canada	157,160		133,380
Total assets	$	850,649	$	854,331

Geographic Information

The Company's long-lived assets are located in the following countries:

	January 28, 2012		January 29, 2011
Long-lived assets (1):
United States	$	339,053	$	344,387
Canada	37,739		31,644
Asia	532		599
Total long-lived assets	$	377,324	$	376,630

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(1) The Company's long-lived assets are comprised of net property and equipment, long-term deferred income taxes and other assets.