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SEGMENT REPORTING | 9 Months Ended
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Nov. 03, 2013
SEGMENT REPORTING | NOTE D. SEGMENT REPORTING We have two reportable segments, direct-to-customer and retail. The direct-to-customer segment has seven merchandising concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm, Rejuvenation and Mark and Graham) which sell our products through our e-commerce websites and direct-mail catalogs. Our direct-to-customer merchandising concepts are operating segments, which have been aggregated into one reportable segment, direct-to-customer. The retail segment has five merchandising concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation) which sell our products through our retail stores. Our retail merchandising concepts are operating segments, which have been aggregated into one reportable segment, retail. Management’s expectation is that the overall economic characteristics of each of our operating segments will be similar over time based on management’s judgment that the operating segments have had similar historical economic characteristics and are expected to have similar long-term financial performance in the future. These reportable segments are strategic business units that offer similar home-centered products. They are managed separately because the business units utilize two distinct distribution and marketing strategies. Based on management’s best estimate, our operating segments include allocations of certain expenses, including advertising and employment costs, to the extent they have been determined to benefit both channels. These operating segments are aggregated at the channel level for reporting purposes due to the fact that our brands are interdependent for economies of scale and we do not maintain fully allocated income statements at the brand level. As a result, material financial decisions related to the brands are made at the channel level. Furthermore, it is not practicable for us to report revenue by product group. We use operating income to evaluate segment profitability. Operating income is defined as earnings (loss) before net interest income or expense and income taxes. Unallocated costs before interest and income taxes include corporate employee-related costs, occupancy expenses (including depreciation expense), administrative costs and third party service costs, primarily in our corporate systems, corporate facilities and other administrative departments. Unallocated assets include corporate cash and cash equivalents, deferred income taxes, the net book value of corporate facilities and related information systems, and other corporate long-lived assets. Income tax information by reportable segment has not been included as income taxes are calculated at a company-wide level and are not allocated to each reportable segment. Segment Information
Dollars in thousands |  | Direct-to- Customer |  |  | Retail |  |  | Unallocated |  |  | Total |
Thirteen weeks ended November 3, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues 1 |  | $ | 511,874 |  |  | $ | 539,674 |  |  | $ | 0 |  |  | $ | 1,051,548 |
Depreciation and amortization expense |  |  | 6,165 |  |  |  | 19,655 |  |  |  | 11,760 |  |  |  | 37,580 |
Operating income (loss) |  |  | 117,086 |  |  |  | 49,300 |  |  |  | (73,892 | ) |  |  | 92,494 |
Capital expenditures |  |  | 8,797 |  |  |  | 26,152 |  |  |  | 12,510 |  |  |  | 47,459 |
Thirteen weeks ended October 28, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues 1 |  | $ | 447,115 |  |  | $ | 497,439 |  |  | $ | 0 |  |  | $ | 944,554 |
Depreciation and amortization expense |  |  | 5,751 |  |  |  | 17,937 |  |  |  | 9,647 |  |  |  | 33,335 |
Operating income (loss) |  |  | 100,769 |  |  |  | 44,003 |  |  |  | (65,476 | ) |  |  | 79,296 |
Capital expenditures |  |  | 7,922 |  |  |  | 25,861 |  |  |  | 13,007 |  |  |  | 46,790 |
Thirty-nine weeks ended November 3, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues 1 |  | $ | 1,408,615 |  |  | $ | 1,512,950 |  |  | $ | 0 |  |  | $ | 2,921,565 |
Depreciation and amortization expense |  |  | 19,087 |  |  |  | 58,407 |  |  |  | 33,918 |  |  |  | 111,412 |
Operating income (loss) |  |  | 327,518 |  |  |  | 117,925 |  |  |  | (211,080 | ) |  |  | 234,363 |
Assets 2 |  |  | 540,534 |  |  |  | 1,034,476 |  |  |  | 651,432 |  |  |  | 2,226,442 |
Capital expenditures |  |  | 28,496 |  |  |  | 71,302 |  |  |  | 45,438 |  |  |  | 145,236 |
Thirty-nine weeks ended October 28, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues 1 |  | $ | 1,235,883 |  |  | $ | 1,400,568 |  |  | $ | 0 |  |  | $ | 2,636,451 |
Depreciation and amortization expense |  |  | 17,045 |  |  |  | 53,493 |  |  |  | 28,115 |  |  |  | 98,653 |
Operating income (loss) |  |  | 273,947 |  |  |  | 116,958 |  |  |  | (192,183 | ) |  |  | 198,722 |
Assets 2 |  |  | 411,560 |  |  |  | 970,250 |  |  |  | 641,612 |  |  |  | 2,023,422 |
Capital expenditures |  |  | 20,680 |  |  |  | 51,941 |  |  |  | 43,777 |  |  |  | 116,398 |
1 | Includes net revenues of approximately $51.5 million and $39.4 million for the thirteen weeks ended November 3, 2013 and October 28, 2012, respectively, and $150.0 million and $101.6 million for the thirty-nine weeks ended November 3, 2013 and October 28, 2012, respectively, related to our foreign operations.
2 | Includes approximately $59.3 million and $31.3 million of long-term assets as of November 3, 2013 and October 28, 2012, respectively, related to our foreign operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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