SEGMENT REPORTING

12 Months Ended

Feb. 02, 2013

SEGMENT REPORTING

SEGMENT REPORTING

14.   SEGMENT REPORTING

The Company's operations are conducted in two reportable segments, retail and corporate apparel, based on the way we manage, evaluate and internally report our business activities.

The retail segment includes the results from our four retail merchandising brands: Men's Wearhouse, Men's Wearhouse and Tux, Moores and K&G. These four brands are operating segments that have been aggregated into the retail reportable segment based on their similar economic characteristics, products, production processes, target customers and distribution methods. MW Cleaners is also aggregated in the retail segment as these operations have not had a significant effect on the revenues or expenses of the Company. Specialty apparel merchandise offered by our four retail merchandising concepts include suits, suit separates, sport coats, slacks, sportswear, outerwear, dress shirts, shoes and accessories for men. Ladies' career apparel, sportswear and accessories, including shoes, and children's apparel is offered at most of our K&G stores and tuxedo rentals are offered at our Men's Wearhouse, Men's Wearhouse and Tux and Moores retail stores.

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Twin Hill in the U.S. and Dimensions, Alexandra and Yaffy in the UK. The two corporate apparel and uniform concepts are operating segments that have been aggregated into the reportable corporate apparel segment based on their similar economic characteristics, products, production processes, target customers and distribution methods. The corporate apparel segment provides corporate clothing uniforms and workwear to workforces.

The accounting policies for each of our operating segments are the same as those described in Note 1.

Operating income is the primary measure of profit we use to make decisions on allocating resources to our operating segments and to assess the operating performance of each operating segment. It is defined as income before interest expense, interest income, income taxes and noncontrolling interest. Corporate expenses and assets are allocated to the retail segment.

Net sales by brand and reportable segment are as follows (in thousands):

	Fiscal Year
	2012		2011		2010
Net sales:
MW(1)	$	1,581,122	$	1,471,711	$	1,345,915
Moores		273,978		267,689		246,735
K&G		365,945		375,105		360,301
MW Cleaners		27,804		24,688		23,415
Total retail segment		2,248,849		2,139,193		1,976,366
Twin Hill		29,513		25,398		21,464
Dimensions and Alexandra (UK)		209,916		218,093		104,834
Total corporate apparel segment		239,429		243,491		126,298
Total net sales	$	2,488,278	$	2,382,684	$	2,102,664

⁽¹⁾

MW includes Men's Wearhouse and Men's Wearhouse and Tux stores.

The following table sets forth supplemental products and services sales information for the Company (in thousands):

	Fiscal Year
	2012		2011		2010
Net sales:
Men's tailored clothing product	$	919,447	$	884,133	$	790,558
Men's non-tailored clothing product		690,605		656,689		612,544
Ladies clothing product		81,196		78,849		77,390
Total retail clothing product		1,691,248		1,619,671		1,480,492
Tuxedo rental services		406,454		376,857		364,269
Alteration services		123,343		117,977		108,190
Retail dry cleaning services		27,804		24,688		23,415
Total alteration and other services		151,147		142,665		131,605
Corporate apparel clothing product		239,429		243,491		126,298
Total net sales	$	2,488,278	$	2,382,684	$	2,102,664

Operating income (loss) by reportable segment and the reconciliation to earnings before income taxes is as follows (in thousands):

	Fiscal Year
	2012			2011			2010
Operating income (loss):
Retail	$	194,679		$	189,995		$	108,392
Corporate apparel		3,889			(4,563	)		(6,721	)
Operating income		198,568			185,432			101,671
Interest income		648			424			315
Interest expense		(1,544	)		(1,446	)		(1,456	)
Earnings before income taxes	$	197,672		$	184,410		$	100,530

Capital expenditures by reportable segment are as follows (in thousands):

	Fiscal Year
	2012		2011		2010
Capital expenditures:
Retail	$	117,796	$	82,001	$	55,967
Corporate apparel		3,637		9,819		2,901
Total capital expenditures.	$	121,433	$	91,820	$	58,868

Depreciation and amortization expense by reportable segment is as follows (in thousands):

	Fiscal Year
	2012		2011		2010
Depreciation and amortization expense:
Retail	$	77,680	$	69,644	$	72,472
Corporate apparel		7,299		6,324		3,526
Total depreciation and amortization expense.	$	84,979	$	75,968	$	75,998

Total assets by reportable segment are as follows (in thousands):

	February 2, 2013		January 28, 2012
Segment assets:
Retail	$	1,250,307	$	1,172,742
Corporate apparel		246,040		233,210
Total assets	$	1,496,347	$	1,405,952

The tables below present information related to geographic areas in which the Company operated, with net sales classified based primarily on the country where the Company's customer is located (in thousands):

	Fiscal Year
	2012		2011		2010
Net sales:
U.S.	$	2,004,384	$	1,896,902	$	1,751,095
Canada		273,978		267,689		246,735
UK		209,916		218,093		104,834
Total net sales.	$	2,488,278	$	2,382,684	$	2,102,664

	February 2, 2013		January 28, 2012
Long-lived assets:
U.S.	$	451,860	$	394,274
Canada		51,091		48,023
UK		12,992		13,234
Total long-lived assets	$	515,943	$	455,531