Segment Information

12 Months Ended

Jan. 30, 2021

2. Segment Information

We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from a store or a combination of our distribution centers and stores depending on the availability of particular items.

Our operating segments are identified according to how our business activities are managed and evaluated by our chief operating decision maker, our CEO. We have three operating segments, North America, EMEA (Europe, Middle East and Africa), and Asia Pacific. Our North America operating segment includes the results of the following banners operating in the U.S. and Canada: Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, and Footaction, including each of their related e-commerce businesses, as well as our Eastbay business that includes internet, catalog, and team sales. Our EMEA operating segment includes the results of the following banners operating in Europe: Foot Locker, Sidestep, and Kids Foot Locker, including each of their related e-commerce businesses. Our Asia Pacific operating segment includes the results of Foot Locker and Kids Foot Locker operating in Australia, New Zealand, and Asia as well as their related e-commerce businesses. We further aggregated these operating segments into one reportable segment based upon their shared customer base and similar economic characteristics.

We evaluate performance based on several factors, of which the primary financial measure is the banner’s financial results referred to as division profit. Division profit reflects income before income taxes, other charges, corporate expense, non-operating income, and net interest income.

The following table summarizes our results:


($ in millions)	2020		2019		2018
Division profit	$	491	$	788	$	808
Less: Impairment and other charges ⁽¹⁾		117		65		37
Less: Corporate expense ⁽²⁾		71		74		72
Income from operations		303		649		699
Interest (expense) income, net		(7)		11		9
Other income, net		198		12		5
Income before income taxes	$	494	$	672	$	713

(1)	See Note 3, Impairment and Other Charges for additional information on these amounts.

(2)

Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $28 million for 2020, $32 million for 2019, and $40 million for 2018, thereby reducing corporate expense.

Sales disaggregated based upon channel for the fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019 are presented in the following table.


($ in millions)	2020		2019		2018
Sales
Stores	$	5,447	$	6,720	$	6,714
Direct-to-customers		2,101		1,285		1,225
Total sales	$	7,548	$	8,005	$	7,939

Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019 are presented in the following tables. Sales are attributed to the country in which the sales transaction is fulfilled. Long-lived assets reflect property and equipment and lease right-of-use assets.


($ in millions)	2020		2019		2018
Sales by Geography
United States	$	5,581	$	5,691	$	5,647
International		1,967		2,314		2,292
Total sales	$	7,548	$	8,005	$	7,939

Long-Lived Assets
United States	$	2,218	$	2,479	$	602
International		1,286		1,244		234
Total long-lived assets	$	3,504	$	3,723	$	836

For the year ended January 30, 2021, the countries that comprised the majority of the sales and long-lived assets for the international category were Canada, France, Italy, Germany, and England. No other individual country included in the international category was significant.


	Depreciation and
	Amortization						Capital Expenditures ⁽¹⁾						Total Assets
($ in millions)	2020		2019		2018		2020		2019		2018		2020		2019		2018
Division	$	152	$	160	$	160	$	88	$	105	$	112	$	5,159	$	5,523	$	2,900
Corporate		24		19		18		71		82		75		1,884		1,066		920
Total	$	176	$	179	$	178	$	159	$	187	$	187	$	7,043	$	6,589	$	3,820

(1) Represents cash capital expenditures for all years presented.