Segment Reporting

12 Months Ended

Jan. 28, 2012

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We operate and report in two segments: Retail Stores and Direct-to-Consumer.  We determine our operating segments based on the way our chief operating decision-makers review our results of operations.  We consider our retail stores and store-related e-commerce as operating segments that are similar in terms of economic characteristics, production processes, and operations.  Accordingly, we have aggregated our retail stores and store-related e-commerce into a single reporting segment (the “Retail Stores” segment).  Our catalog and catalog-related e-commerce operations are separately reported under the Direct-to-Consumer segment.

The accounting policies of the segments are generally the same as those described in “NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” above.  Our chief operating decision-makers evaluate the performance of our operating segments based on a measure of their contribution to operations, which consists of net sales less the cost of merchandise sold and certain directly identifiable and allocable operating costs.  We do not allocate certain corporate costs, such as shared services, information systems support, and insurance to our Retail Stores or Direct-to-Consumer segments.  Operating costs for our Retail Stores segment consist primarily of store selling, buying, occupancy, and warehousing.  For our Direct-to-Consumer segment, operating costs consist primarily of catalog development, production, and circulation; e-commerce advertising; warehousing; and order processing.

Corporate and Other net sales consist primarily of revenue related to our figuremagazine, which we discontinued during Fiscal 2009.  Corporate and Other operating costs include unallocated general and administrative expenses; shared services; insurance; information systems support; corporate depreciation and amortization; corporate occupancy; and other non-routine charges.  Operating contribution for the Retail Stores and Direct-to-Consumer segments less Corporate and Other net expenses equals income/(loss) before interest and income taxes.

Operating segment assets are those directly used in, or allocable to, that segment’s operations.  Operating assets for the Retail Stores segment consist primarily of inventories; the net book value of store facilities; goodwill; and intangible assets.  Operating assets for the Direct-to-Consumer segment consist primarily of trade receivables; inventories; deferred advertising costs; the net book value of catalog operating facilities; and intangible assets.  Corporate and Other assets include corporate cash and cash equivalents; the net book value of corporate facilities; deferred income taxes; and other corporate long-lived assets.

Selected financial information for our operations by reportable segments and a reconciliation of the information by segment to our consolidated totals is shown in the table on the next page.

(In thousands)	Retail Stores		Direct-to- Consumer(1)		Corporate and Other				Consolidated
Fiscal 2011
Net sales	$	1,871,042	$	121,329	$	—			$	1,992,371
Depreciation and amortization	43,108		1,115		12,458				56,681
Income from operations	110,480		6,156		(97,954		)	(2)	18,682
Net interest expense and other income	—		—		(13,656		)		(13,656		)
Income tax provision	—		—		7,043				7,043
Net loss	110,480		6,156		(118,653		)		(2,017		)
Capital expenditures	14,231		1,967		18,734				34,932
As of January 28, 2012
Total assets	$	550,993	$	88,713	$	378,220			$	1,017,926
Fiscal 2010
Net sales	$	1,946,668	$	115,151	$	—			$	2,061,819
Depreciation and amortization	54,489		1,086		12,764				68,339
Loss from operations	53,589		8,894		(106,478		)	(3)	(43,995		)
Gain on repurchases of 1.125% Senior Convertible Notes	—		—		1,907				1,907
Net interest expense and other income	—		—		(14,768		)		(14,768		)
Income tax benefit	—		—		(2,874		)		(2,874		)
Net loss	53,589		8,894		(116,465		)		(53,982		)
Capital expenditures	20,956		669		14,153				35,778
As of January 29, 2011
Total assets	$	615,540	$	82,534	$	324,584			$	1,022,658
Fiscal 2009
Net sales	1,947,546		116,630		426				2,064,602
Depreciation and amortization	59,694		1,330		15,278				76,302
Loss from operations	65,290		2,649		(155,487		)	(4)	(87,548		)
Gain on repurchases of 1.125% Senior Convertible Notes	—		—		13,979				13,979
Net interest expense and other income	—		—		(17,965		)		(17,965		)
Income tax benefit	—		—		(13,572		)		(13,572		)
Net loss	65,290		2,649		(145,901		)		(77,962		)
Capital expenditures	11,310		42		11,298				22,650
As of January 30, 2010
Total assets	$	666,339	$	78,519	$	412,631			$	1,157,489

(1) Includes LANE BRYANT WOMAN catalog and shoetrader.com, which were discontinued during the second quarter of Fiscal 2009.

(2) Includes $11,238 of restructuring and other charges and a $5,185 gain from the sale of office premises (see “NOTE 11. RESTRUCTURING AND OTHER CHARGES” and “NOTE 18. GAIN FROM SALE OF OFFICE PREMISES” above).

(3) Includes impairment of store assets of $17,054 (see “NOTE 10. IMPAIRMENT OF STORE ASSETS” above) and restructuring and other charges of $8,776 .

(4) Includes impairment of store assets of $15,741 and restructuring and other charges of $31,719.