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Segment Reporting
 9 Months Ended
Oct. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified two operating segments (American Eagle and Aerie) 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 operating segments were aggregated as permitted by ASC 280 as one reportable segment. In the fourth quarter of Fiscal 2020, we revised our reportable segment structure to have two reportable segments, American Eagle and Aerie.

Our CEO analyzes segment results and allocates resources based on adjusted operating income (loss), which is a non-GAAP measure. Adjusted operating income (loss) is defined as operating income (loss) excluding impairment, restructuring and COVID-19 related charges.  Adjusted operating income (loss) may not be comparable to similarly titled measures of other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We use this non-GAAP information internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of our ongoing operating results and provides a higher degree of transparency. The following includes a reconciliation from consolidated operating income (loss), the most directly comparable GAAP operating performance measure presented on the Consolidated Financial Statements, to our non-GAAP adjusted operating income (loss) on a consolidated basis.

 

 

(in thousands)

American Eagle

 

 

Aerie

 

 

Corporate(1)

 

 

Total(2)

 

13 weeks ended October 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

940,992

 

 

$

315,049

 

 

$

18,037

 

 

$

1,274,078

 

Operating income (loss)

$

261,225

 

 

$

52,021

 

 

$

(103,559

)

 

$

209,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

13,298

 

 

$

24,867

 

 

$

20,036

 

 

$

58,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 weeks ended October 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

775,961

 

 

$

246,748

 

 

$

8,908

 

 

$

1,031,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

155,259

 

 

$

35,738

 

 

$

(95,446

)

 

$

95,551

 

Impairment, restructuring, and COVID-19 related charges

 

—

 

 

 

—

 

 

 

6,955

 

 

 

6,955

 

Adjusted operating income (loss)

$

155,259

 

 

$

35,738

 

 

$

(88,491

)

 

$

102,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

10,488

 

 

$

6,399

 

 

$

14,302

 

 

$

31,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39 weeks ended October 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

2,513,700

 

 

$

947,851

 

 

$

41,297

 

 

$

3,502,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

611,650

 

 

$

191,341

 

 

$

(291,880

)

 

$

511,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

36,093

 

 

$

48,164

 

 

$

60,148

 

 

$

144,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39 weeks ended October 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

$

1,791,042

 

 

$

653,240

 

 

$

22,537

 

 

$

2,466,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

1,113

 

 

$

47,011

 

 

$

(323,052

)

 

$

(274,928

)

Impairment, restructuring, and COVID-19 related charges

 

90,926

 

 

 

18,215

 

 

 

68,045

 

 

 

177,186

 

Adjusted operating income (loss)

$

92,039

 

 

$

65,226

 

 

$

(255,007

)

 

$

(97,742

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

25,361

 

 

$

23,807

 

 

$

43,423

 

 

$

92,591

 

 

 

(1)

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

 

(2)

The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments:
- For the 13 weeks ended October 30, 2021, interest expense, net of $8.6 million and other (income), net of ($3.1)million. For the 39 weeks ended October 30, 2021, interest expense, net of $26.0 million and other (income), net of ($6.4) million.
- For the 13 weeks ended October 31, 2020, interest expense, net of $7.9 million and other (income), net of ($2.2) million. For the 39 weeks ended October 31, 2020, interest expense, net of $16.6 million and other (income), net of ($0.8) million.

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 table present summarized geographical information:

 

 

13 Weeks Ended

 

 

39 Weeks Ended

 

(In thousands)

 

October 30,

2021

 

 

October 31,

2020

 

 

October 30,

2021

 

 

October 31,

2020

 

Total net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,104,441

 

 

$

898,241

 

 

$

3,044,407

 

 

$

2,167,145

 

Foreign (1)

 

$

169,637

 

 

$

133,376

 

 

$

458,441

 

 

 

299,674

 

Total net revenue

 

$

1,274,078

 

 

$

1,031,617

 

 

$

3,502,848

 

 

$

2,466,819

 

 

(1)

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