SEGMENT INFORMATION

3 Months Ended

Apr. 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 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 April 28, 2012, The Children’s Place U.S. operated 937 stores and The Children’s Place Canada operated 125 stores. As of April 30, 2011, The Children’s Place U.S. operated 922 stores and The Children’s Place Canada operated 110 stores.

The following tables provide segment level financial information for the First Quarter 2012 and the First Quarter 2011 (dollars in thousands):

	Thirteen Weeks Ended
	April 28, 2012			April 30, 2011
Net sales (1):
The Children’s Place U.S.	$	384,783		$	380,508
The Children’s Place Canada	53,725			50,298
Total net sales	$	438,508		$	430,806
Gross profit:
The Children’s Place U.S.	$	154,855		$	159,419
The Children’s Place Canada	21,932			24,228
Total gross profit	$	176,787		$	183,647
Gross Margin:
The Children’s Place U.S.	40.2		%	41.9		%
The Children’s Place Canada	40.8		%	48.2		%
Total gross margin	40.3		%	42.6		%
Operating income:
The Children’s Place U.S. (2)	$	32,553		$	41,255
The Children’s Place Canada (3)	2,780			7,521
Total operating income	$	35,333		$	48,776
Operating income as a percent of net sales:
The Children’s Place U.S.	8.5		%	10.8		%
The Children’s Place Canada	5.2		%	15.0		%
Total operating income	8.1		%	11.3		%
Depreciation and amortization:
The Children’s Place U.S.	$	14,230		$	15,704
The Children’s Place Canada (3)	2,988			2,047
Total depreciation and amortization	$	17,218		$	17,751
Capital expenditures:
The Children’s Place U.S.	$	19,160		$	21,371
The Children’s Place Canada	2,852			3,164
Total capital expenditures	$	22,012		$	24,535

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

(2) Included in the First Quarter 2012 is approximately $0.8 million of exit costs related to a management approved plan to exit the Company's distribution center in Ontario, California (the "West Coast DC") and move its operations to its distribution center in Fort Payne, Alabama. Total costs of exiting the West Coast DC, which will be completed during the second quarter of fiscal 2012, are expected to be approximately $4.0 million, and will primarily include lease termination costs (net of anticipated sublease income), asset disposal costs, and severance to affected employees.

(3) The First Quarter 2012 includes approximately $0.9 million of accelerated depreciation for seven Canadian stores that will be remodeled earlier than anticipated.

	April 28, 2012		January 28, 2012		April 30, 2011
Total assets:
The Children’s Place U.S.	$	698,803	$	693,489	$	722,821
The Children’s Place Canada	157,800		157,160		142,141
Total assets	$	856,603	$	850,649	$	864,962