SEGMENT INFORMATION

12 Months Ended

Jan. 30, 2016

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 customers. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale customer 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 January 30, 2016, The Children’s Place U.S. operated 937 stores and The Children’s Place International operated 132 stores. As of January 31, 2015, The Children’s Place U.S. operated 963 stores and The Children’s Place International operated 134 stores.

The following tables provide segment level financial information for Fiscal 2015, Fiscal 2014 and Fiscal 2013 (dollars in thousands):

	Fiscal Year Ended
	January 30, 2016			January 31, 2015			February 1, 2014
Net sales:
The Children’s Place U.S.	$	1,518,117		$	1,528,762		$	1,528,276
The Children’s Place International (1)	207,660			232,562			237,513
Total net sales	$	1,725,777		$	1,761,324		$	1,765,789
Gross profit:
The Children’s Place U.S.	$	539,030		$	535,226		$	558,156
The Children’s Place International	86,102			87,074			97,365
Total gross profit	$	625,132		$	622,300		$	655,521
Gross Margin:
The Children’s Place U.S.	35.5		%	35.0		%	36.5		%
The Children’s Place International	41.5		%	37.4		%	41.0		%
Total gross margin	36.2		%	35.3		%	37.1		%
Operating income:
The Children’s Place U.S. (2)	$	65,221		$	63,586		$	60,267
The Children’s Place International (3)	24,859			16,457			16,016
Total operating income	$	90,080		$	80,043		$	76,283

Operating income as a percent of net sales:
The Children’s Place U.S.	4.3		%	4.2		%	3.9		%
The Children’s Place International	12.0		%	7.1		%	6.7		%
Total operating income	5.2		%	4.5		%	4.3		%
Depreciation and amortization:
The Children’s Place U.S.	$	55,937		$	52,565		$	55,595
The Children’s Place International	6,748			7,929			9,263
Total depreciation and amortization	$	62,685		$	60,494		$	64,858
Capital expenditures:
The Children’s Place U.S.	$	41,304		$	68,847		$	64,486
The Children’s Place International	841			3,365			8,120
Total capital expenditures	$	42,145		$	72,212		$	72,606

13. SEGMENT INFORMATION (Continued)

(1) Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on net sales was a decrease of $29.9 million.

(2) Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $0.1 million, $(0.1) million and $(0.9) million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes a $1.7 million, $10.5 million and a $25.4 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $6.0 million, $7.1 million and $4.2 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Fiscal 2015 also includes costs incurred related to a class action wage and hour legal settlement, proxy contest costs and a sales tax audit of approximately $12.1 million.

(3) Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on operating income was a decrease of $1.9 million. Includes a $0.7 million, $0.6 million and $4.2 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively.

	January 30, 2016		January 31, 2015
Total assets:
The Children’s Place U.S.	$	748,975	$	805,462
The Children’s Place International	148,973		153,156
Total assets	$	897,948	$	958,618

Geographic Information

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

	January 30, 2016		January 31, 2015
Long-lived assets (1):
United States	$	276,612	$	289,820
Canada	16,212		22,697
Asia	1,586		1,242
Total long-lived assets	$	294,410	$	313,759

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