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Segment Reporting | 12 Months Ended
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Jan. 31, 2017
Segment Reporting | 16. Segment Reporting The Company offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The Company has two reportable segments—“Retail” and “Wholesale.” The Company’s Retail segment consists of the aggregation of its six brands operating under the names “Anthropologie,” “Bhldn,” “Free People,” “Terrain,” “Urban Outfitters” and “Vetri Family.” The Anthropologie, Bhldn and Terrain brands make up the “Anthropologie Group.” As of January 31, 2017, there were 242 Urban Outfitters stores, 225 Anthropologie Group stores, 127 Free People stores and 12 restaurants. Urban Outfitters, the Anthropologie Group and Free People, including their stores and direct-to-consumer channels, and restaurants are each considered an operating segment. Net sales from the Retail segment accounted for approximately 91.9%, 92.4% and 93.2% of total consolidated net sales for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. The remaining net sales are derived from the Company’s Wholesale segment that distributes apparel and shoes to approximately 1,900 better department and specialty retailers worldwide, third-party websites and to the Retail segment. The Company has aggregated its brands into the Retail segment based upon their shared management, customer base and economic characteristics. Reporting in this format provides management with the financial information necessary to evaluate the success of the segments and the overall business. The Company evaluates the performance of the segments based on the net sales and pre-tax income from operations (excluding intercompany charges) of the segment. Corporate expenses include expenses incurred and directed by the corporate office that are not allocated to segments. The principal identifiable assets for each reporting segment are inventory and property and equipment. Other assets are comprised primarily of general corporate assets, which principally consist of cash and cash equivalents, marketable securities, deferred taxes and prepaid expenses, which are typically not allocated to the Company’s segments. The Company accounts for intersegment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases. The Company’s omni-channel strategy enhances its customers’ brand experience by providing a seamless approach to the customer shopping experience. All available shopping channels are fully integrated, including stores, websites, mobile applications, catalogs and customer contact centers. The Company’s investments in areas such as marketing campaigns and technology advancements are designed to generate demand for the omni-channel and not the separate store or direct-to-consumer channels. Store sales are primarily fulfilled from that store’s inventory, but may also be shipped from any of the Company’s fulfillment centers or from a different store location if an item is not available at the original store. Direct-to-consumer orders are primarily shipped to the Company’s customers through its fulfillment centers, but may also be shipped from any store, or a combination of fulfillment centers and stores depending on the availability of a particular item. Direct-to-consumer orders may also be picked up at a store location. Customers may also return certain merchandise purchased through direct-to-consumer channels at store locations. As the Company’s customers continue to shop across multiple channels, the Company has adapted its approach towards meeting this demand. Due to the availability of like product in a variety of shopping channels, the Company sources these products utilizing single stock keeping units based on the omni-channel demand rather than the demand of the separate channels. These and other technological capabilities allow the Company to better serve its customers and help it to complete a sale that otherwise may not have occurred due to out-of-stock positions. As a result of changing customer behavior and the substantial integration of the operations of the Company’s store and direct-to-consumer channels, the Company manages and analyzes its performance based on a single omni-channel rather than separate channels and believes that the omni-channel results present the most meaningful and appropriate measure of the Company’s performance. Over the next several years we plan to continue to shift investment to the direct-to-consumer channel to align with changing customer preferences. The accounting policies of the reportable segments are the same as the policies described in Note 2, “Summary of Significant Accounting Policies.” Both the Retail and Wholesale segments are highly diversified. No one customer constitutes more than 10% of the Company’s total consolidated net sales. A summary of the information about the Company’s operations by segment is as follows:
|  | Fiscal Year |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 3,256,890 |  |  | $ | 3,184,955 |  |  | $ | 3,097,274 |
Wholesale operations |  |  | 298,566 |  |  |  | 273,603 |  |  |  | 237,491 |
Intersegment elimination |  |  | (9,662 | ) |  |  | (13,424 | ) |  |  | (11,688 | )
Total net sales |  | $ | 3,545,794 |  |  | $ | 3,445,134 |  |  | $ | 3,323,077 |
Income from operations |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 325,666 |  |  | $ | 342,885 |  |  | $ | 354,326 |
Wholesale operations |  |  | 58,169 |  |  |  | 54,444 |  |  |  | 55,403 |
Intersegment elimination |  |  | (614 | ) |  |  | (1,096 | ) |  |  | (1,079 | )
Total segment operating income |  |  | 383,221 |  |  |  | 396,233 |  |  |  | 408,650 |
General corporate expenses |  |  | (44,694 | ) |  |  | (42,654 | ) |  |  | (43,265 | )
Total income from operations |  | $ | 338,527 |  |  | $ | 353,579 |  |  | $ | 365,385 |
Depreciation expense for property and equipment |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 132,150 |  |  | $ | 137,963 |  |  | $ | 130,383 |
Wholesale operations |  |  | 980 |  |  |  | 918 |  |  |  | 1,031 |
Total depreciation expense for property and equipment |  | $ | 133,130 |  |  | $ | 138,881 |  |  | $ | 131,414 |
Inventory |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 301,519 |  |  | $ | 289,170 |  |  |  |  |
Wholesale operations |  |  | 37,071 |  |  |  | 41,053 |  |  |  |  |
Total inventory |  | $ | 338,590 |  |  | $ | 330,223 |  |  |  |  |
Property and equipment, net |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 864,396 |  |  | $ | 859,277 |  |  |  |  |
Wholesale operations |  |  | 3,390 |  |  |  | 3,860 |  |  |  |  |
Total property and equipment, net |  | $ | 867,786 |  |  | $ | 863,137 |  |  |  |  |
Cash paid for property and equipment |  |  |  |  |  |  |  |  |  |  |  |
Retail operations |  | $ | 142,872 |  |  | $ | 134,627 |  |  | $ | 228,682 |
Wholesale operations |  |  | 842 |  |  |  | 323 |  |  |  | 1,122 |
Total cash paid for property and equipment |  | $ | 143,714 |  |  | $ | 134,950 |  |  | $ | 229,804 |
The Company has foreign operations primarily in Europe and Canada. Revenues and long-lived assets, based upon the Company’s domestic and foreign operations, are as follows:
|  | Fiscal Year |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |
Domestic operations |  | $ | 3,114,014 |  |  | $ | 3,005,595 |  |  | $ | 2,870,140 |
Foreign operations |  |  | 431,780 |  |  |  | 439,539 |  |  |  | 452,937 |
Total net sales |  | $ | 3,545,794 |  |  | $ | 3,445,134 |  |  | $ | 3,323,077 |
Property and equipment, net |  |  |  |  |  |  |  |  |  |  |  |
Domestic operations |  | $ | 766,419 |  |  | $ | 742,171 |  |  |  |  |
Foreign operations |  |  | 101,367 |  |  |  | 120,966 |  |  |  |  |
Total property and equipment, net |  | $ | 867,786 |  |  | $ | 863,137 |  |  |  |  |

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 Reference 5: 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=68060357&loc=d3e8380-108599 Reference 6: 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=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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