Segment Information

12 Months Ended

Jan. 29, 2022

Segment Information [Abstract]

Segment Information

3. 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, Footaction, and WSS, 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. Effective with the acquisition, atmos is included in our Asia Pacific operating segment. 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, impairment and other charges, corporate expense, net interest (expense) income and other income, net. The following table summarizes our results:

($ in millions)	2021		2020		2019
Division profit	$	1,161	$	491	$	788
Less: Impairment and other charges (1)		172		117		65
Less: Corporate expense (2)		129		71		74
Income from operations		860		303		649
Interest (expense) income, net		(14)		(7)		11
Other income, net (3)		394		198		12
Income before income taxes	$	1,240	$	494	$	672

(1) See Note 4, 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 $19 million for 2021, $28 million for 2020, and $32 million for 2019, thereby reducing corporate expense. See Note 4, Impairment and Other Charges for additional information on these amounts.

(3) See Note 5, Other Income, net for additional information on these amounts.

Sales disaggregated based upon channel for the fiscal years ended January 29, 2022, January 30, 2021, and February 1, 2020 are presented in the following table.

($ in millions)	2021		2020		2019
Sales by Channel
Stores	$	7,029	$	5,447	$	6,720
Direct-to-customers		1,929		2,101		1,285
Total sales	$	8,958	$	7,548	$	8,005

Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 29, 2022, January 30, 2021, and February 1, 2020 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)	2021		2020		2019
Sales by Geography
United States	$	6,477	$	5,581	$	5,691
International		2,481		1,967		2,314

Total sales	$	8,958	$	7,548	$	8,005
($ in millions)	2021		2020		2019
Long-Lived Assets
United States	$	2,285	$	2,218	$	2,479
International		1,248		1,286		1,244
Total long-lived assets	$	3,533	$	3,504	$	3,723

For the year ended January 29, 2022, the countries that comprised the majority of the sales and long-lived assets for the international category were Canada, France, Italy, England, and Australia. No other individual country included in the international category was significant.

	Depreciation and
	Amortization						Capital Expenditures (1)						Total Assets
($ in millions)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Division	$	163	$	152	$	160	$	127	$	88	$	105	$	7,184	$	5,159	$	5,523
Corporate		34		24		19		82		71		82		951		1,884		1,066
Total	$	197	$	176	$	179	$	209	$	159	$	187	$	8,135	$	7,043	$	6,589

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