Segment Information

9 Months Ended

Oct. 29, 2016

Segment Information [Abstract]

Segment Information

2. Segment Information

The Company has determined that its reportable segments are those that are based on its method of internal reporting. The Company has two reportable segments, Athletic Stores and Direct-to-Customers. The Company evaluates performance based on several factors, of which the primary financial measure is division results. Division profit reflects income before income taxes, pension litigation charge, corporate expense, non-operating income, and net interest expense.

	Thirteen weeks ended				Thirty-nine weeks ended
	October 29,		October 31,		October 29,		October 31,
	2016		2015		2016		2015
	($ in millions)
Sales
Athletic Stores	$	1,644	$	1,571	$	4,955	$	4,755
Direct-to-Customers		242		223		698		650
Total sales	$	1,886	$	1,794	$	5,653	$	5,405
Operating Results
Athletic Stores (1)	$	213	$	206	$	683	$	649
Direct-to-Customers		32		31		92		98
Division profit		245		237		775		747
Less: Pension litigation charge (2)		—		100		—		100
Less: Corporate expense		17		20		53		54
Operating profit		228		117		722		593
Interest expense, net		1		1		2		3
Other income (3)		—		1		3		2
Income before income taxes	$	227	$	117	$	723	$	592

(1)	Included in the thirteen and thirty-nine weeks ended October 29, 2016 is a $6 million pre-tax non-cash impairment charge to write-down long-lived store assets of Runners Point and Sidestep. See Note 3, Impairment and Litigation Charges for additional information.
(2)	Included in the thirteen and thirty-nine weeks ended October 31, 2015 is a pre-tax litigation charge of $100 million relating to a pension litigation matter described further in Note 13, Legal Proceedings.
(3)	Other income includes non-operating items, such as lease termination gains, royalty income, insurance recoveries, and the changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts.