SEGMENT INFORMATION

In accordance with FASB ASC 280---Segment Reporting, 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 revenue from the Company's U.S.-based wholesale business. Included in The Children's Place International segment are the Company's Canadian-based stores, revenue from the Company's Canadian 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 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 3, 2018, The Children’s Place U.S. owned and operated 862 stores and The Children’s Place International owned and operated 126 stores. As of October 28, 2017, The Children’s Place U.S. owned and operated 898 stores and The Children’s Place International owned and operated 129 stores.

The following tables provide segment level financial information:



	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	November 3, 2018			October 28, 2017			November 3, 2018			October 28, 2017
	(In thousands)
Net sales:
The Children’s Place U.S.	$	461,286		$	427,603		$	1,256,363		$	1,149,741
The Children’s Place International ⁽¹⁾	61,209			62,423			151,163			150,562
Total net sales	$	522,495		$	490,026		$	1,407,526		$	1,300,303
Operating income:
The Children’s Place U.S.	$	52,481		$	51,751		$	79,178		$	89,567
The Children’s Place International	12,124			12,398			18,508			20,085
Total operating income	$	64,605		$	64,149		$	97,686		$	109,652
Operating income as a percent of net sales:
The Children’s Place U.S.	11.4		%	12.1		%	6.3		%	7.8		%
The Children’s Place International	19.8		%	19.9		%	12.2		%	13.3		%
Total operating income as a percent of net sales	12.4		%	13.1		%	6.9		%	8.4		%
Depreciation and amortization:
The Children’s Place U.S.	$	15,432		$	14,921		$	45,836		$	43,155
The Children’s Place International	1,972			1,868			5,569			5,305
Total depreciation and amortization	$	17,404		$	16,789		$	51,405		$	48,460
Capital expenditures:
The Children’s Place U.S.	$	27,077		$	14,415		$	54,299		$	37,291
The Children’s Place International	581			311			1,205			591
Total capital expenditures	$	27,658		$	14,726		$	55,504		$	37,882

____________________________________________


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



	November 3, 2018		February 3, 2018		October 28, 2017
Total assets:	(In thousands)
The Children’s Place U.S.	$	756,191	$	750,670	$	825,969
The Children’s Place International	81,062		189,558		187,455
Total assets	$	837,253	$	940,228	$	1,013,424