SEGMENT INFORMATION

12 Months Ended

Jan. 29, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONIn 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, www.gymboree.com, and www.sugarandjade.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-based 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 customers that individually account for more than 10% of its net sales. As of January 29, 2022, The Children’s Place U.S. had 589 stores and The Children’s Place International had 83 stores. As of January 30, 2021, The Children’s Place U.S. had 648 stores and The Children’s Place International had 101 stores.

The following tables provide segment level financial information for Fiscal 2021, Fiscal 2020, and Fiscal 2019:

	Fiscal Years Ended
	January 29, 2022		January 30, 2021		February 1, 2020
	(in thousands)
Net sales:
The Children’s Place U.S.	$	1,723,887	$	1,372,079	$	1,671,165
The Children’s Place International (1)	191,477		150,519		199,502
Total net sales	$	1,915,364	$	1,522,598	$	1,870,667
Operating income (loss):
The Children’s Place U.S.	$	253,419	$	(196,565)	$	77,989
The Children’s Place International	22,229		(3,350)		18,369
Total operating income (loss)	$	275,648	$	(199,915)	$	96,358

Operating income (loss) as a percentage of net sales:
The Children’s Place U.S.	14.7		%	(14.3)		%	4.7		%
The Children’s Place International	11.6		%	(2.2)		%	9.2		%
Total operating income (loss) as a percentage of net sales	14.4		%	(13.1)		%	5.2		%
Depreciation and amortization:
The Children’s Place U.S.	$	53,984		$	61,074		$	67,416
The Children’s Place International	4,433			5,331			7,372
Total depreciation and amortization	$	58,417		$	66,405		$	74,788
Capital expenditures:
The Children’s Place U.S.	$	28,551		$	29,955		$	56,598
The Children’s Place International	756			630			904
Total capital expenditures	$	29,307		$	30,585		$	57,502

____________________________________________

(1)Net sales from The Children’s Place International are primarily derived from Canadian operations. The Company’s 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 29, 2022		January 30, 2021
	(in thousands)
Total assets:
The Children’s Place U.S.	$	951,401	$	1,054,339
The Children’s Place International	86,059		85,788
Total assets	$	1,037,460	$	1,140,127

 Geographic Information

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

	January 29, 2022		January 30, 2021
	(in thousands)
Long-lived assets (1):
United States	$	415,548	$	521,304
Canada	16,868		25,355
Asia	397		806
Total long-lived assets	$	432,813	$	547,465

____________________________________________

(1)The Company’s long-lived assets are comprised of net Property and equipment, ROU assets, Tradenames, and Other assets.