SEGMENT INFORMATION

12 Months Ended

Jan. 28, 2017

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 business. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale business 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. 

The following tables provide segment level financial information for Fiscal 2016, Fiscal 2015 and Fiscal 2014:

	Fiscal Year Ended
	January 28, 2017		January 30, 2016		January 31, 2015
	(In thousands)
Net sales:
The Children’s Place U.S.	$	1,567,556	$	1,518,117	$	1,528,762
The Children’s Place International(1)	217,760		207,660		232,562
Total net sales	$	1,785,316	$	1,725,777	$	1,761,324
Operating income:
The Children’s Place U.S.(2)	$	113,376	$	65,221	$	63,586
The Children’s Place International(3)	34,032		24,859		16,457
Total operating income	$	147,408	$	90,080	$	80,043

Operating income as a percent of net sales:
The Children’s Place U.S.	7.2		%	4.3		%	4.2		%
The Children’s Place International	15.6		%	12.0		%	7.1		%
Total operating income	8.3		%	5.2		%	4.5		%
Depreciation and amortization:
The Children’s Place U.S.	$	58,626		$	55,937		$	52,565
The Children’s Place International	7,108			6,748			7,929
Total depreciation and amortization	$	65,734		$	62,685		$	60,494
Capital expenditures:
The Children’s Place U.S.	$	33,447		$	41,304		$	68,847
The Children’s Place International	1,237			841			3,365
Total capital expenditures	$	34,684		$	42,145		$	72,212

(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.

(2) Includes a $3.8 million, $1.7 million and a $10.5 million asset impairment charge for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. Also includes additional (income)/costs incurred related to corporate severance and reorganizations of approximately $(0.2) million, $6.0 million and $7.1 million for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. Fiscal 2016 also includes approximately $1.9 million of costs related to foreign exchange control penalties partially offset by approximately $1.6 million of income related to a favorable legal settlement. 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) Includes a $0.2 million, $0.7 million and $0.6 million asset impairment charge for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively.

	January 28, 2017		January 30, 2016
	(In thousands)
Total assets:
The Children’s Place U.S.	$	735,953	$	748,975
The Children’s Place International	174,546		148,973
Total assets	$	910,499	$	897,948

Geographic Information

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

	January 28, 2017		January 30, 2016
	(In thousands)
Long-lived assets(1):
United States	$	253,940	$	276,612
Canada	14,385		16,212
Asia	1,277		1,586
Total long-lived assets	$	269,602	$	294,410

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