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Segment Information
 6 Months Ended
Aug. 02, 2014
Segment Reporting [Abstract]  
Segment Information
3. Segment Information
 
The Company has determined that its reportable segments are those that are based on its method of internal reporting. As of August 2, 2014, 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 profit. Division profit reflects income before income taxes, corporate expense, non-operating income, and net interest expense. Sales and division profit for the Company’s reportable segments for the thirteen weeks and twenty-six weeks ended August 2, 2014 and August 3, 2013 are presented below.
 
 
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
Sales
 
August 2,
 
August 3,
 
August 2,
 
August 3,
 
(in millions)
 
2014
 
2013
 
2014
 
2013
 
Athletic Stores
 
$
1,468
 
$
1,313
 
$
3,125
 
$
2,784
 
Direct-to-Customers
 
 
173
 
 
141
 
 
384
 
 
308
 
Total sales
 
$
1,641
 
$
1,454
 
$
3,509
 
$
3,092
 
  
Operating Results
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Athletic Stores (1)
 
$
149
 
$
116
 
$
396
 
$
327
 
Direct-to-Customers (2)
 
 
14
 
 
10
 
 
42
 
 
33
 
Division profit
 
 
163
 
 
126
 
 
438
 
 
360
 
Less: Corporate expense, net
 
 
19
 
 
20
 
 
40
 
 
39
 
Operating profit
 
 
144
 
 
106
 
 
398
 
 
321
 
Other income (3)
 
 
1
 
 
1
 
 
2
 
 
3
 
Interest expense, net
 
 
1
 
 
1
 
 
2
 
 
2
 
Income before income taxes
 
$
144
 
$
106
 
$
398
 
$
322
 
 
(1)
Included in the Athletic Stores segment for the twenty-six weeks ended August 2, 2014 is a $1 million tradename impairment charge related to the Company’s stores in the Republic of Ireland. Included in the Athletic Stores segment for both the thirteen and twenty-six weeks ended August 3, 2013 is a $2 million charge recorded in connection with the closure of all CCS stores.
 
(2)
Included in the Direct-to-Customers segment for both the thirteen and twenty-six weeks ended August 2, 2014 is a $2 million impairment charge related to the CCS tradename.
 
(3)
Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid and realized gains associated with foreign currency option contracts.