SEGMENT INFORMATION

12 Months Ended

Feb. 02, 2013

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 geography: The Children’s Place U.S. and The Children’s Place Canada.  Each segment includes an e-commerce business located at www.childrensplace.com.  Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores. Included in The Children's Place Canada segment are the Company's Canadian based stores and revenue from international franchisees. 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 February 2, 2013, The Children’s Place U.S. operated 966 stores and The Children’s Place Canada operated 129 stores. As of January 28, 2012, The Children’s Place U.S. operated 926 stores and The Children’s Place Canada operated 123 stores.

The following tables provide segment level financial information for Fiscal 2012, Fiscal 2011 and Fiscal 2010 (dollars in thousands). Prior years have been adjusted for the accounting method change for inventory (see Note 2 for the impact of the change in accounting principle):

	Fiscal Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Net sales (1):
The Children’s Place U.S.	$	1,557,549		$	1,489,795		$	1,450,116
The Children’s Place Canada (2)	251,937			226,067			223,883
Total net sales	$	1,809,486		$	1,715,862		$	1,673,999
Gross profit:
The Children’s Place U.S.	$	584,081		$	553,755		$	551,327
The Children’s Place Canada	107,359			105,894			108,794
Total gross profit	$	691,440		$	659,649		$	660,121
Gross Margin:
The Children’s Place U.S.	37.5		%	37.2		%	38.0		%
The Children’s Place Canada	42.6		%	46.8		%	48.6		%
Total gross margin	38.2		%	38.4		%	39.4		%
Operating income:
The Children’s Place U.S. (3)	$	68,346		$	76,531		$	87,803
The Children’s Place Canada (5)	21,369			28,912			41,407
Total operating income	$	89,715		$	105,443		$	129,210

Operating income as a percent of net sales:
The Children’s Place U.S.	4.4		%	5.1		%	6.1		%
The Children’s Place Canada	8.5		%	12.8		%	18.5		%
Total operating income	5.0		%	6.1		%	7.7		%
Depreciation and amortization:
The Children’s Place U.S. (4)	$	65,066		$	64,788		$	63,990
The Children’s Place Canada (5)	12,369			9,785			7,650
Total depreciation and amortization	$	77,435		$	74,573		$	71,640
Capital expenditures:
The Children’s Place U.S.	$	75,945		$	66,690		$	78,401
The Children’s Place Canada	14,237			13,074			5,544
Total capital expenditures	$	90,182		$	79,764		$	83,945

14. SEGMENT INFORMATION (Continued)

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

(2) Includes approximately $8.4 million of revenue from international franchisees for Fiscal 2012. There was no revenue from international franchisees prior to Fiscal 2012.

(3) Includes exit costs associated with the closures of the West Coast DC and Northeast DC of approximately $11.1 million for Fiscal 2012 and approximately $7.7 million of accelerated depreciation associated with the closure of the Northeast DC for Fiscal 2012.

(4) Includes approximately $7.7 million of accelerated depreciation associated with the closure of the Northeast DC for Fiscal 2012.

(5) The Company remodeled certain Canadian stores earlier than originally anticipated. Accelerated depreciation associated with these stores approximated $1.6 million and $1.0 million for Fiscal 2012 and Fiscal 2011, respectively.

	February 2, 2013		January 28, 2012
Total assets:
The Children’s Place U.S.	$	746,911	$	706,014
The Children’s Place Canada	176,499		160,238
Total assets	$	923,410	$	866,252

Geographic Information

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

	February 2, 2013		January 28, 2012
Long-lived assets (1):
United States	$	294,123	$	294,023
Canada	39,571		33,715
Asia	803		532
Total long-lived assets	$	334,497	$	328,270

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