16. Segment Reporting

Our 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, Jos. A. Bank, Moores Clothing for Men ("Moores") and K&G. These four brands are operating segments that have been aggregated into the retail reportable segment. Prior to its divestiture, MW Cleaners was also aggregated in the retail segment as its operations did not have a significant effect on our revenues or expenses. Specialty apparel merchandise offered by our four retail merchandising concepts include suits, suit separates, sport coats, slacks, formalwear, business casual, denim, sportswear, outerwear, dress shirts, shoes and accessories for men. Women's career and casual apparel, sportswear and accessories, including shoes, and children's apparel is offered at most of our K&G stores. Rental product is offered at our Men's Wearhouse/Men's Wearhouse and Tux, Jos. A. Bank and Moores retail stores.

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Dimensions, Alexandra, and Yaffy in the UK and Twin Hill in the U.S., which provide corporate apparel uniforms and workwear to workforces.

We measure segment profitability based on operating income, defined as income before interest expense, interest income, (loss) gain on extinguishment of debt, net and income taxes, before shared service expenses. Shared service expenses include costs incurred and directed primarily by our corporate offices that are not allocated to segments.

Additional net sales information is as follows (in thousands):


	For the Three Months Ended				For the Six Months Ended
	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Net sales:
Men's Wearhouse(1)	$	445,197	$	458,751	$	893,006	$	878,818
Jos. A. Bank		172,427		174,325		341,503		341,553
K&G		83,645		85,811		172,925		174,494
Moores		66,645		65,312		112,772		106,125
MW Cleaners(2)		—		8,799		2,551		17,313
Total retail segment		767,914		792,998		1,522,757		1,518,303
Total corporate apparel segment		55,516		57,760		118,637		115,361
Total net sales	$	823,430	$	850,758	$	1,641,394	$	1,633,664

⁽¹⁾

Consists of Men's Wearhouse, Men's Wearhouse and Tux, tuxedo shops within Macy's and Joseph Abboud.

⁽²⁾

On March 3, 2018, we completed the divestiture of our MW Cleaners business. Please see Note 2 for additional information.

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


	For the Three Months Ended				For the Six Months Ended
	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Operating income:
Retail	$	134,142	$	155,221	$	232,863	$	228,646
Corporate apparel		1,169		2,103		2,752		4,078
Shared service expense		(47,325)		(48,859)		(94,732)		(93,257)
Operating income		87,986		108,465		140,883		139,467
Interest income		122		98		207		165
Interest expense		(20,864)		(25,167)		(42,845)		(50,788)
(Loss) gain on extinguishment of debt, net		(8,122)		3,281		(20,833)		3,996
Earnings before income taxes	$	59,122	$	86,677	$	77,412	$	92,840