Segment Information

3 Months Ended

May 02, 2015

Segment Reporting [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, corporate expense, non-operating income, and net interest expense.

	Thirteen weeks ended
	May 2,		May 3,
	2015		2014
	(in millions)
Sales
Athletic Stores	$	1,681	$	1,657
Direct-to-Customers		235		211
	$	1,916	$	1,868
Operating Results
Athletic Stores(1)	$	267	$	247
Direct-to-Customers		40		28
Division profit		307		275
Less: Corporate expense		17		21
Operating profit		290		254
Interest expense, net		1		1
Other income(2)		1		1
Income before income taxes	$	290	$	254

(1)	During the first quarter of 2014, the Company recorded a non-cash impairment charge of $1 million to fully write down the remaining value of the tradename related to the Company’s stores in the Republic of Ireland, reflecting historical and projected underperformance.
(2)	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.