SEGMENT INFORMATION

12 Months Ended

Feb. 01, 2014

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 and U.S. revenue from the Company's wholesale partners. 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 February 1, 2014, The Children’s Place U.S. operated 974 stores and The Children’s Place International operated 133 stores. As of February 2, 2013, The Children’s Place U.S. operated 966 stores and The Children’s Place International operated 129 stores.

The following tables provide segment level financial information for Fiscal 2013, Fiscal 2012 and Fiscal 2011 (dollars in thousands):

	Fiscal Year Ended
	February 1, 2014			February 2, 2013			January 28, 2012
Net sales:
The Children’s Place U.S.	$	1,528,276		$	1,557,549		$	1,489,795
The Children’s Place International (1)	237,513			251,937			226,067
Total net sales	$	1,765,789		$	1,809,486		$	1,715,862
Gross profit:
The Children’s Place U.S.	$	558,156		$	584,081		$	553,755
The Children’s Place International	97,365			107,359			105,894
Total gross profit	$	655,521		$	691,440		$	659,649
Gross Margin:
The Children’s Place U.S.	36.5		%	37.5		%	37.2		%
The Children’s Place International	41.0		%	42.6		%	46.8		%
Total gross margin	37.1		%	38.2		%	38.4		%
Operating income:
The Children’s Place U.S. (2)	$	60,267		$	68,346		$	76,531
The Children’s Place International (4)(5)	16,016			21,369			28,912
Total operating income	$	76,283		$	89,715		$	105,443

Operating income as a percent of net sales:
The Children’s Place U.S.	3.9		%	4.4		%	5.1		%
The Children’s Place International	6.7		%	8.5		%	12.8		%
Total operating income	4.3		%	5.0		%	6.1		%
Depreciation and amortization:
The Children’s Place U.S. (3)	$	55,595		$	65,066		$	64,788
The Children’s Place International (5)	9,263			12,369			9,785
Total depreciation and amortization	$	64,858		$	77,435		$	74,573
Capital expenditures:
The Children’s Place U.S.	$	64,486		$	75,945		$	66,690
The Children’s Place International	8,120			14,237			13,074
Total capital expenditures	$	72,606		$	90,182		$	79,764

13. SEGMENT INFORMATION (Continued)

(1) Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.

(2) Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $(0.9) million and $11.1 million for Fiscal 2013 and Fiscal 2012, respectively. Also includes a $25.4 million impairment charge for Fiscal 2013 and a $2.1 million impairment charge for Fiscal 2012. Also includes additional costs incurred related to restructuring, severance and reorganizations of approximately $4.2 million and $3.9 million for Fiscal 2013 and Fiscal 2012, respectively.

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

(4) Includes a $4.2 million impairment charge for Fiscal 2013.

(5) Includes accelerated depreciation associated with the remodel of certain Canadian stores of approximately $1.6 million for Fiscal 2012.

	February 1, 2014		February 2, 2013
Total assets:
The Children’s Place U.S.	$	824,893	$	746,911
The Children’s Place International	165,737		176,499
Total assets	$	990,630	$	923,410

Geographic Information

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

	February 1, 2014		February 2, 2013
Long-lived assets (1):
United States	$	283,059	$	294,123
Canada	31,046		39,571
Asia	1,399		803
Total long-lived assets	$	315,504	$	334,497

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