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Segment Reporting
 12 Months Ended
Jan. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting

15.  Segment Reporting

 

In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified two operating segments (American Eagle brand and Aerie brand) that also represent our reportable segments and reflect the Chief Operating Decision Maker’s (defined as our CEO) internal view of analyzing results and allocating resources. Historically, all of the operating segments were aggregated as permitted by ASC 280 as one reportable segment.

 

Our CEO analyzes segment results and allocates resources based on adjusted operating income (loss). Adjusted operating income (loss) is defined as operating income excluding impairment, restructuring and COVID-19 related charges.  Adjusted operating income (loss) may not be comparable to similarly titled measures of other companies.  Adjusted operating income (loss) on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating (loss) income as presented on the Consolidated Financial Statements.

 

 

Reportable segment information is presented in the following table:

(in thousands)

American Eagle

 

 

Aerie

 

 

Corporate(1)

 

 

Total(2)

 

For the year ended January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

2,733,849

 

 

$

989,989

 

 

$

35,275

 

 

$

3,759,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (Ioss)

$

93,029

 

 

$

60,298

 

 

$

(409,772

)

 

$

(271,345

)

Impairment, restructuring and COVID-19 related charges

$

144,486

 

 

$

52,849

 

 

$

67,591

 

 

$

279,826

 

Adjusted Operating income (loss)

$

237,515

 

 

$

113,147

 

 

$

(342,181

)

 

$

8,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

63,019

 

 

$

26,647

 

 

$

72,736

 

 

$

162,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

36,606

 

 

$

32,723

 

 

$

58,646

 

 

$

127,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 1, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

3,479,592

 

 

$

801,035

 

 

$

27,585

 

 

$

4,308,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (loss)

$

484,078

 

 

$

47,465

 

 

$

(298,198

)

 

$

233,345

 

Impairment and restructuring charges

$

41,657

 

 

$

20,261

 

 

$

18,576

 

 

$

80,494

 

Adjusted Operating Income (loss)

$

525,735

 

 

$

67,726

 

 

$

(279,622

)

 

$

313,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

75,889

 

 

$

22,578

 

 

$

80,583

 

 

$

179,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

98,699

 

 

$

56,283

 

 

$

55,378

 

 

$

210,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 2, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

3,387,754

 

 

$

627,846

 

 

$

20,120

 

 

$

4,035,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (loss)

$

583,977

 

 

$

39,585

 

 

$

(286,433

)

 

$

337,129

 

Impairment and restructuring charges

 

-

 

 

 

-

 

 

$

1,568

 

 

$

1,568

 

Adjusted Operating Income (loss)

$

583,977

 

 

$

39,585

 

 

$

(284,865

)

 

$

338,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

76,084

 

 

$

19,680

 

 

$

72,567

 

 

$

168,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

96,696

 

 

$

34,431

 

 

$

57,894

 

 

$

189,021

 

 

 

(1)

Corporate includes revenue and operating results of the Todd Snyder brand, which is not material to disclose as a separate reportable segment.  Corporate operating costs represents certain costs that are not directly attributable to another reportable segment

 

 

(2)

The difference between Operating income (loss) and (Loss) income before taxes includes interest expense (income), net of $24.6 million in Fiscal 2020, ($6.2) million in Fiscal 2019 and ($3.5) million in Fiscal 2018 and other income, net of $3.7 million in Fiscal 2020, $5.7 million in Fiscal 2019 and $4.5 million in Fiscal 2018, which are not allocated to our reportable segments.

   

We do not allocate assets to the reportable segment level and therefore our CEO does not use segment asset information to make decisions.

 

The following tables present summarized geographical information.

 

 

 

For the Years Ended

 

 

 

January 30,

 

 

February 1,

 

 

February 2,

 

(In thousands)

 

2021

 

 

2020

 

 

2019

 

Total net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,295,028

 

 

$

3,710,270

 

 

$

3,511,265

 

Foreign (1)

 

 

464,085

 

 

 

597,942

 

 

 

524,455

 

Total net revenue

 

$

3,759,113

 

 

$

4,308,212

 

 

$

4,035,720

 

 

 

(1)

Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue.

 

 

 

 

 

January 30,

 

 

February 1,

 

(In thousands)

 

2021

 

 

2020

 

Long-lived assets, net:

 

 

 

 

 

 

 

 

United States

 

$

1,705,561

 

 

$

2,032,280

 

Foreign

 

 

144,544

 

 

 

174,760

 

Total long-lived assets, net

 

$

1,850,105

 

 

$

2,207,040

 

 

As of January 30, 2021 and February 1, 2020, the United States and foreign balances contain $1.0 billion and $0.1 billion, and $1.3 billion and $0.1 billion of operating lease ROU assets, respectively, related to the adoption of ASC 842.  Refer to Note 2 for further information about the Company’s adoption of ASC 842.

 

Through its portfolio of brands, the Company offers on-trend clothing, accessories, and personal care products (collectively “merchandise”). The following table sets forth the approximate consolidated percentage of total net revenue from operations attributable to each merchandise category:

 

 

 

For the Years Ended

 

 

 

January 30,

 

 

February 1,

 

 

February 2,

 

Total Revenue (in thousands)

 

2021

 

 

2020

 

 

2019

 

American Eagle merchandise

 

 

2,733,849

 

 

 

3,479,592

 

 

 

3,387,754

 

Aerie merchandise

 

 

989,989

 

 

 

801,035

 

 

 

627,846

 

Total merchandise(1)

 

$

3,723,838

 

 

$

4,280,627

 

 

$

4,015,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a percentage of total revenue

 

 

 

 

 

 

 

 

 

 

 

 

American Eagle merchandise

 

 

73

%

 

 

81

%

 

 

84

%

Aerie merchandise

 

 

26

%

 

 

19

%

 

 

16

%

    Total merchandise(1)

 

 

99

%

 

 

100

%

 

 

100

%

 

(1) Total does not include Todd Snyder merchandise as it is not material