SEGMENT INFORMATION

9 Months Ended

Nov. 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 International.  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 International 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 International 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 November 2, 2013, The Children’s Place U.S. operated 990 stores and The Children’s Place International operated 133 stores. As of October 27, 2012, The Children’s Place U.S. operated 973 stores and The Children’s Place International operated 129 stores.

The following tables provide segment level financial information (dollars in thousands):

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	November 2, 2013			October 27, 2012			November 2, 2013			October 27, 2012
Net sales:
The Children’s Place U.S.	$	421,070		$	424,854		$	1,124,676		$	1,119,690
The Children’s Place International	71,610			76,074			173,616			180,572
Total net sales	$	492,680		$	500,928		$	1,298,292		$	1,300,262
Gross profit:
The Children’s Place U.S.	$	168,753		$	173,384		$	419,243		$	425,394
The Children’s Place International	33,008			36,149			71,968			77,489
Total gross profit	$	201,761		$	209,533		$	491,211		$	502,883
Gross Margin:
The Children’s Place U.S.	40.1		%	40.8		%	37.3		%	38.0		%
The Children’s Place International	46.1		%	47.5		%	41.5		%	42.9		%
Total gross margin	41.0		%	41.8		%	37.8		%	38.7		%
Operating income:
The Children’s Place U.S. (1)	$	49,199		$	40,407		$	42,178		$	49,274
The Children’s Place International (2)	12,368			13,119			12,202			14,522
Total operating income	$	61,567		$	53,526		$	54,380		$	63,796
Operating income as a percent of net sales:
The Children’s Place U.S.	11.7		%	9.5		%	3.8		%	4.4		%
The Children’s Place International	17.3		%	17.2		%	7.0		%	8.0		%
Total operating income	12.5		%	10.7		%	4.2		%	4.9		%
Depreciation and amortization:
The Children’s Place U.S.	$	14,584		$	19,497		$	43,065		$	48,220
The Children’s Place International	1,889			3,526			5,825			9,503
Total depreciation and amortization	$	16,473		$	23,023		$	48,890		$	57,723
Capital expenditures:
The Children’s Place U.S.	$	17,117		$	24,783		$	49,391		$	60,073
The Children’s Place International	1,371			2,360			7,767			11,307
Total capital expenditures	$	18,488		$	27,143		$	57,158		$	71,380

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(1) Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.2 million and $0.6 million for the Third Quarter 2013 and Third Quarter 2012, respectively, and $(0.8) million and $4.5 million, for Year-To-Date 2013 and Year-To-Date 2012, respectively. Alsoincludes a$20.8 millionimpairment charge for Year-To-Date 2013 and a $0.5 million and $2.1 million impairment charge for Third Quarter 2012andYear-To-Date 2012, respectively. There was no impairment charge for the Third Quarter 2013. Also includes additional costs incurred related to restructuring, severance and reorganizations of approximately $0.3 million and $0.0 million for the Third Quarter 2013 and Third Quarter 2012, respectively and $2.5 million and $3.9 million for Year-To-Date 2013 and Year-To-Date 2012, respectively.

(2) Includes a$1.0 millionimpairment charge for Year-To-Date 2013.

	November 2, 2013		February 2, 2013		October 27, 2012
Total assets:
The Children’s Place U.S.	$	810,644	$	746,911	$	785,640
The Children’s Place International	164,073		176,499		173,371
Total assets	$	974,717	$	923,410	$	959,011