Segment Information

6 Months Ended

Aug. 01, 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				Twenty-six weeks ended
	August 1,		August 2,		August 1,		August 2,
	2015		2014		2015		2014
	($ in millions)
Sales
Athletic Stores	$	1,503	$	1,468	$	3,184	$	3,125
Direct-to-Customers		192		173		427		384
Total sales	$	1,695	$	1,641	$	3,611	$	3,509
Operating Results
Athletic Stores (1)	$	176	$	149	$	443	$	396
Direct-to-Customers (2)		27		14		67		42
Division profit		203		163		510		438
Less: Corporate expense, net		17		19		34		40
Operating profit		186		144		476		398
Other income (3)		—		1		1		2
Interest expense, net		1		1		2		2
Income before income taxes	$	185	$	144	$	475	$	398

⁽¹⁾ Included in the twenty-six weeks ended August 2, 2014 is 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.

⁽²⁾ Included in 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.