SEGMENT INFORMATION

12 Months Ended

Jan. 30, 2021

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 and www.gymboree.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 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, 2021, The Children’s Place U.S. had 648 stores and The Children’s Place International had 101 stores. As of February 1, 2020, The Children’s Place U.S. had 803 stores and The Children’s Place International had 121 stores.

The following tables provide segment level financial information for Fiscal 2020, Fiscal 2019, and Fiscal 2018:


	Fiscal Year Ended
	January 30, 2021		February 1, 2020		February 2, 2019
	(In thousands)
Net sales:
The Children’s Place U.S.	$	1,372,079	$	1,671,165	$	1,727,907
The Children’s Place International(1)	150,519		199,502		210,177
Total net sales	$	1,522,598	$	1,870,667	$	1,938,084








Operating income (loss):
The Children’s Place U.S.	$	(196,565)	$	77,989	$	86,983
The Children’s Place International	(3,350)		18,369		24,345
Total operating income (loss)	$	(199,915)	$	96,358	$	111,328


Operating income (loss) as a percent of net sales:
The Children’s Place U.S.	-14.3		%	4.7		%	5.0		%
The Children’s Place International	-2.2		%	9.2		%	11.6		%
Total operating income (loss)	-13.1		%	5.2		%	5.7		%
Depreciation and amortization:
The Children’s Place U.S.	$	61,074		$	67,416		$	61,487
The Children’s Place International	5,331			7,372			7,397
Total depreciation and amortization	$	66,405		$	74,788		$	68,884
Capital expenditures:
The Children’s Place U.S.	$	29,955		$	56,598		$	67,476
The Children’s Place International	630			904			3,638
Total capital expenditures	$	30,585		$	57,502		$	71,114

(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.


	January 30, 2021		February 1, 2020
	(In thousands)
Total assets:
The Children’s Place U.S.	$	1,054,339	$	1,080,665
The Children’s Place International	85,788		100,732
Total assets	$	1,140,127	$	1,181,397

Geographic Information

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


	January 30, 2021		February 1, 2020
	(In thousands)
Long-lived assets(1):
United States	$	521,304	$	673,432
Canada	25,355		44,236
Asia	806		908
Total long-lived assets	$	547,465	$	718,576

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(1)The Company’s long-lived assets are comprised of net property and equipment, ROU assets, tradenames, and other assets.