SEGMENT INFORMATION

9 Months Ended

Nov. 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 U.S. wholesale partners. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale partner 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 to 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 1, 2014, The Children’s Place U.S. operated 982 stores and The Children’s Place International operated 135 stores. As of November 2, 2013, The Children’s Place U.S. operated 990 stores and The Children’s Place International operated 133 stores.

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

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	November 1, 2014			November 2, 2013			November 1, 2014			November 2, 2013
Net sales:
The Children’s Place U.S.	$	418,863		$	421,070		$	1,112,933		$	1,124,676
The Children’s Place International (1)	68,441			71,610			169,148			173,616
Total net sales	$	487,304		$	492,680		$	1,282,081		$	1,298,292
Gross profit:
The Children’s Place U.S.	$	163,713		$	168,753		$	395,858		$	419,243
The Children’s Place International	26,398			33,008			61,632			71,968
Total gross profit	$	190,111		$	201,761		$	457,490		$	491,211
Gross Margin:
The Children’s Place U.S.	39.1		%	40.1		%	35.6		%	37.3		%
The Children’s Place International	38.6		%	46.1		%	36.4		%	41.5		%
Total gross margin	39.0		%	41.0		%	35.7		%	37.8		%
Operating income:
The Children’s Place U.S. (2)	$	43,147		$	49,199		$	48,162		$	42,178
The Children’s Place International (3)	12,656			12,368			11,227			12,202
Total operating income	$	55,803		$	61,567		$	59,389		$	54,380
Operating income as a percent of net sales:
The Children’s Place U.S.	10.3		%	11.7		%	4.3		%	3.8		%
The Children’s Place International	18.5		%	17.3		%	6.6		%	7.0		%
Total operating income	11.5		%	12.5		%	4.6		%	4.2		%
Depreciation and amortization:
The Children’s Place U.S.	$	13,135		$	14,584		$	38,902		$	43,065
The Children’s Place International	2,033			1,889			6,050			5,825
Total depreciation and amortization	$	15,168		$	16,473		$	44,952		$	48,890
Capital expenditures:
The Children’s Place U.S.	$	13,367		$	17,117		$	41,583		$	49,391
The Children’s Place International	495			1,371			3,054			7,767
Total capital expenditures	$	13,862		$	18,488		$	44,637		$	57,158

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

⁽²⁾  Includes additional SG&A costs incurred related to restructuring, severance and reorganizations of approximately $1.1 million and $0.3 million for the Third Quarter 2014 and Third Quarter 2013, respectively, and $4.5 million and $2.5 million for Year-To-Date 2014 and Year-To-Date 2013, respectively. Also includes asset impairment charges of $3.1 million for the Third Quarter 2014 and $6.1 million and $20.8 million for Year-To-Date 2014 and Year-To-Date 2013, respectively.

⁽³⁾  Includes a $0.2 million asset impairment charge for the Third Quarter 2014andYear-To-Date 2014, respectively, and a $1.0 million asset impairment charge forYear-To-Date 2013.

	November 1, 2014		February 1, 2014		November 2, 2013
Total assets:
The Children’s Place U.S.	$	842,823	$	824,893	$	810,644
The Children’s Place International	152,598		165,737		164,073
Total assets	$	995,421	$	990,630	$	974,717