Segment Information

12 Months Ended

Jan. 28, 2023

Segment Information [Abstract]

Segment Information

4. 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.

4. Segment Information (continued)

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 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 included internet, catalog, and team sales. Our EMEA operating segment includes the results of the following banners 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 in Australia, New Zealand, and Asia and atmos operating primarily in Japan, as well as their related e-commerce businesses. Additionally, the EMEA and Asia Pacific operating segments include licensing revenue. 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, corporate expense, interest expense, net and other income / (expense), net.

The following table summarizes our results:

($ in millions)	2022		2021		2020
Division profit	$	844	$	1,171	$	497
Less: Impairment and other (1)		112		172		117
Less: Corporate expense (2)		151		129		71
Income from operations		581		870		309
Interest expense, net		(15)		(14)		(7)
Other income / (expense), net (3)		(42)		384		192
Income from continuing operations before income taxes	$	524	$	1,240	$	494

(1) See Note 5, Impairment and Other for additional information on these amounts.

(2) Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. No change was made during 2022. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $19 million for 2021 and $28 million for 2020, thereby reducing corporate expense.

(3) See Note 6, Other Income / (expense), net for additional information on these amounts.

Long-lived asset information as of and for the fiscal years ended January 28, 2023, January 29, 2022, and January 30, 2021 is presented in the following table. Long-lived assets reflect property and equipment and lease right-of-use assets.

($ in millions)	2022		2021		2020
Long-Lived Assets
United States	$	2,152	$	2,285	$	2,218
International		1,211		1,248		1,286
Total long-lived assets	$	3,363	$	3,533	$	3,504

For the year ended January 28, 2023, the countries that comprised the majority of long-lived assets for the international category were Canada, France, Italy, Australia, Germany, and England. No other individual country included in the international category was significant as of January 28, 2023.

	Depreciation and
	Amortization						Capital Expenditures (1)						Total Assets
($ in millions)	2022		2021		2020		2022		2021		2020		2022		2021		2020
Division	$	169	$	163	$	152	$	200	$	127	$	88	$	7,178	$	7,184	$	5,159
Corporate		39		34		24		85		82		71		729		951		1,884
Total	$	208	$	197	$	176	$	285	$	209	$	159	$	7,907	$	8,135	$	7,043

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