The Company offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The Company operates three reportable segments—“Retail,” “Wholesale” and “Subscription.”

The Company’s Retail segment consists of the “Anthropologie,” “Bhldn,” “Free People,” “Terrain” and “Urban Outfitters” brands and the Menus & Venues division. The Anthropologie, Bhldn and Terrain brands make up the “Anthropologie Group.” As of January 31, 2020, there were 248 Urban Outfitters stores, 231 Anthropologie Group stores, 144 Free People stores, 11 restaurants under the Menus & Venues division, five Urban Outfitters franchisee-owned stores, one Anthropologie Group franchisee-owned store and one Free People franchisee-owned store. Each of, Urban Outfitters, the Anthropologie Group and Free People, including their Company-owned and franchisee-owned stores and digital channels, and the restaurants operated under the Company’s Menus & Venues division, are considered an operating segment. Net sales from the Retail segment accounted for approximately 91.6%, 91.2% and 91.3% of total consolidated net sales for fiscal 2020, 2019 and 2018, respectively.

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’s Retail segment omni-channel strategy enhances its customers’ brand experience by providing a seamless approach to the customer shopping experience. All available Company-owned Retail segment 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 Retail segment omni-channel and not the separate store or digital channels. The Company manages and analyzes its performance based on a single Retail segment omni-channel rather than separate channels and believes that the Retail segment omni-channel results present the most meaningful and appropriate measure of our performance.

The Company’s Wholesale segment consists of the Free People, Anthropologie and Urban Outfitters brands. The Wholesale segment sells through approximately 2,300 department and specialty stores worldwide, digital businesses and the Retail segment. The Wholesale segment primarily designs, develops and markets young women’s contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People brand, home goods including gifts, tabletop and textiles, under the Anthropologie brand and the BDG apparel collection under the Urban Outfitters brand. The Anthropologie wholesale division was established in fiscal 2018 and the Urban Outfitters wholesale division was established in fiscal 2019. Our Wholesale segment net sales accounted for approximately 8.2%, 8.8% and 8.7% of total consolidated net sales for fiscal 2020, 2019 and 2018, respectively.

The Subscription segment consists of the “Nuuly” brand, which is a monthly women’s apparel subscription rental service that launched on July 30, 2019. For a monthly fee, Nuuly subscribers can select rental product from a wide selection of the Company’s own brands, third-party labels and one-of-a-kind vintage pieces via a custom-built, digital platform. Subscribers select their products each month, wear them as often as they like, then swap into new products the following month. Subscribers are also able to purchase the rented product. Prior year expenses related to the Subscription segment that were classified as “Retail operations” and “General corporate expenses” have been reclassified to the Subscription segment as a result of the establishment of the Subscription segment in the first quarter of fiscal 2020. Property and equipment and cash paid for property and equipment related to the Subscription segment have also been reclassified from the Retail segment. Subscription segment net sales accounted for less than 1.0% of consolidated net sales for fiscal 2020.

The Company evaluates the performance of each segment 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 the Retail and Wholesale segments are inventory and property and equipment. The principal identifiable assets for the Subscription segment are rental product 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, and 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 accounting policies of the reportable segments are the same as the policies described in Note 2, “Summary of Significant Accounting Policies.” All of the Company’s 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
	2020			2019			2018
Net sales
Retail operations	$	3,648,938		$	3,604,170		$	3,299,714
Wholesale operations		340,869			357,363			327,539
Subscription operations		8,001			—			—
Intersegment elimination		(14,019	)		(10,910	)		(11,239	)
Total net sales	$	3,983,789		$	3,950,623		$	3,616,014
Income from operations
Retail operations	$	256,540		$	353,851		$	233,844
Wholesale operations		42,315			68,516			71,877
Subscription operations		(19,639	)		(3,423	)		—
Intersegment elimination		257			399			151
Total segment operating income		279,473			419,343			305,872
General corporate expenses		(47,548	)		(38,030	)		(45,980	)
Total income from operations	$	231,925		$	381,313		$	259,892
Depreciation expense for property and equipment
Retail operations	$	109,622		$	115,646		$	124,935
Wholesale operations		578			645			885
Subscription operations		1,350			—			—
Total depreciation expense for property and equipment	$	111,550		$	116,291		$	125,820
Inventory
Retail operations	$	347,837		$	328,783
Wholesale operations		61,697			41,724
Total inventory	$	409,534		$	370,507
Rental product, net ⁽¹⁾
Subscription operations	$	16,447		$	—
Total rental product, net	$	16,447		$	—

(1) Rental product, net is included in "Deferred income taxes and other assets" in the Consolidated Balance Sheets.

Property and equipment, net
Retail operations	$	859,918	$	791,648
Wholesale operations		2,577		2,389
Subscription operations		27,537		1,992
Total property and equipment, net	$	890,032	$	796,029
Cash paid for property and equipment
Retail operations	$	189,904	$	112,332	$	83,768
Wholesale operations		633		600		45
Subscription operations		26,896		1,992		—
Total cash paid for property and equipment	$	217,433	$	114,924	$	83,813

The following tables summarize net sales and percentage of net sales from contracts with customers by merchandise category:

	Fiscal Year
	2020			2019			2018
Net sales
Apparel ⁽¹⁾		2,596,926			2,636,170			2,402,173
Home ⁽²⁾		649,184			605,405			581,874
Accessories ⁽³⁾		517,219			498,824			439,952
Other ⁽⁴⁾		220,460			210,224			192,015
Total net sales		3,983,789			3,950,623			3,616,014

As a percentage of net sales
Apparel ⁽¹⁾		65	%		67	%		67	%
Home ⁽²⁾		16	%		15	%		16	%
Accessories ⁽³⁾		13	%		13	%		12	%
Other ⁽⁴⁾		6	%		5	%		5	%
Total net sales		100	%		100	%		100	%

(1) Apparel includes intimates and activewear
(2) Home includes home furnishings, electronics, gifts and decorative items
(3) Accessories includes footwear, jewelry and handbags
(4) Other includes beauty, shipping and handling, the Menus & Venues division and the Subscription segment

Apparel, Home, and Accessories are sold through both the Retail and Wholesale segments. Revenue recognized from the Other category is primarily attributable to the Retail segment.

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
	2020		2019		2018
Net Sales
Domestic operations	$	3,485,383	$	3,449,913	$	3,163,074
Foreign operations		498,406		500,710		452,940
Total net sales	$	3,983,789	$	3,950,623	$	3,616,014
Property and equipment, net
Domestic operations	$	763,411	$	723,400
Foreign operations		126,621		72,629
Total property and equipment, net	$	890,032	$	796,029