Segment Information

12 Months Ended

Feb. 01, 2020

The Company’s reportable business segments and respective accounting policies of the segments are the same as those described in Note 1. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, asset impairment charges, net gains (losses) from lease terminations, restructuring charges and certain non-recurring credits (charges), if any. Corporate overhead, asset impairment charges, net gains (losses) from lease terminations, interest income, interest expense and other income (expense) are evaluated on a consolidated basis and not allocated to the Company’s business segments. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented.

Segment information is summarized as follows (in thousands):



	Year Ended			Year Ended			Year Ended
	Feb 1, 2020¹			Feb 2, 2019¹			Feb 3, 2018¹
Net revenue:
Americas Retail	$	811,547		$	824,674		$	833,077
Americas Wholesale	186,389			170,812			150,366
Europe	1,248,114			1,142,768			998,657
Asia	346,212			388,246			308,899
Licensing	85,847			83,194			72,755
Total net revenue	$	2,678,109		$	2,609,694		$	2,363,754
Earnings (loss) from operations:
Americas Retail	$	22,279		$	27,532		$	(11,096	)
Americas Wholesale	35,674			29,935			25,845
Europe	134,078			58,298			94,545
Asia	(8,894		)	12,365			14,809
Licensing	74,459			72,986			63,538
Total segment earnings from operations	257,596			201,116			187,641
Corporate overhead	(106,948		)	(96,805		)	(100,434		)
European Commission fine²	—			(45,637		)	—
Asset impairment charges³	(9,977		)	(6,939		)	(8,479		)
Net gains (losses) on lease terminations⁴	—			477			(11,373		)
Total earnings from operations	$	140,671		$	52,212		$	67,355
Capital expenditures:
Americas Retail	$	19,411		$	19,614		$	16,899
Americas Wholesale	980			376			1,303
Europe	33,036			56,792			46,419
Asia	6,782			23,458			12,111
Corporate overhead	1,659			7,877			7,923
Total capital expenditures	$	61,868		$	108,117		$	84,655

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¹	The Company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. The results for fiscal 2018 included the impact of an additional week which occurred during the fourth quarter ended February 3, 2018.


²	During fiscal 2019, the Company recognized a charge of €39.8 million ($45.6 million) for a fine imposed by the European Commission related to alleged violations of European Union competition rules by the Company. The Company paid the full amount of the fine during the first quarter of fiscal 2020.

During each of the years presented, the Company recognized asset impairment charges related primarily to impairment of certain retail locations resulting from under-performance and expected store closures. During fiscal 2020, asset impairment charges also included impairment charges related to goodwill associated with the Company’s China retail reporting unit and impairment charges related to certain operating lease right-of-use assets. Refer to Note 5, Note 6 and Note 9 for further information.

⁴

During fiscal 2019, the Company recorded net gain on lease terminations related primarily to the early termination of certain lease agreements in North America. During fiscal 2018, the Company incurred net losses on lease terminations related primarily to the modification of certain lease agreements held with a common landlord in North America. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations.

The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):



	Year Ended		Year Ended		Year Ended
	Feb 1, 2020		Feb 2, 2019		Feb 3, 2018
Net product sales:
U.S.	$	725,938	$	722,794	$	709,155
Italy	298,124		304,435		289,981
Canada	180,947		187,367		200,364
Spain	152,782		145,819		124,569
South Korea	144,955		162,943		163,382
France	129,505		135,060		125,508
Other foreign countries	960,011		868,082		678,040
Total product sales	2,592,262		2,526,500		2,290,999
Net royalties	85,847		83,194		72,755
Net revenue	$	2,678,109	$	2,609,694	$	2,363,754

The Company’s long-lived assets by geographic location are as follows:



	Feb 1, 2020¹		Feb 2, 2019
Long-lived assets:
U.S.	$	352,203	$	111,022
Italy	103,594		30,038
Canada	43,258		13,225
Spain	124,810		31,109
South Korea	8,597		9,437
France	40,869		18,182
Other foreign countries	509,368		173,436
Total long-lived assets	$	1,182,699	$	386,449

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During the first quarter of fiscal 2020, the Company adopted a comprehensive new lease standard which superseded previous lease guidance. The standard requires a lessee to recognize an asset related to the right to use the underlying asset and a liability that approximates the present value of the lease payments over the term of contracts that qualify as leases under the new guidance. As of February 1, 2020, the Company included operating right-of-use assets of $852.0 million in the disclosure of long-lived assets by geographic region. Refer to Note 2 and Note 9 for more information.