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Segment Reporting | 9 Months Ended
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Oct. 31, 2014
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT REPORTING The Company is a leading multi-channel retailer of casual clothing, accessories and footwear, as well as home products, and has two reportable segments: Direct and Retail. Both segments sell similar products—apparel, which includes accessories and footwear, and products for the home. Apparel and home revenues constituted over 99% of total revenues during each of the 13 and 39 weeks ended October 31, 2014 and November 1, 2013. The Company identifies reportable segments according to how business activities are managed and evaluated. Each of the Company’s operating segments are reportable segments and are strategic business units that offer similar products and services but are sold either directly from our warehouses (Direct) or through our retail stores (Retail). Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is the primary measure used to make decisions on allocating resources and assessing performance of each operating segment. Adjusted EBITDA is computed as Income before taxes appearing on the Condensed Consolidated and Combined Statements of Comprehensive Operations net of interest expense, depreciation and amortization and other significant items which, while periodically affecting our results, may vary significantly from period to period and may have a disproportionate effect in a given period, which may affect comparability of results. Reportable segment assets are those directly used in or clearly allocable to an operating segment’s operations. Depreciation, amortization, and property and equipment expenditures are recognized in each respective segment. There were no material transactions between reporting segments for the 13 and 39 weeks ended October 31, 2014 and November 1, 2013.
• | The Direct segment sells products through the Company’s e-commerce websites and direct mail catalogs. Operating costs consist primarily of direct marketing costs (catalog and e-commerce advertising costs); order processing and shipping costs; direct labor and benefits costs and facility costs. Assets primarily include goodwill and trade name intangible assets, inventory, accounts receivable, prepaid expenses (deferred catalog costs), technology infrastructure, and property and equipment.
• | The Retail segment sells products and services through dedicated Lands’ End Shops at Sears across the United States, the Company’s stand-alone Lands’ End Inlet stores and international shop-in-shops. Operating costs consist primarily of labor and benefits costs; rent, CAM and occupancy costs; distribution costs; and in-store marketing costs. Assets primarily include inventory in the retail stores, fixtures and leasehold improvements.
Corporate overhead and other expenses include unallocated shared-service costs, which primarily consist of employee services and financial services, legal and corporate expenses. These expenses include labor and benefits costs, corporate headquarters occupancy costs and other administrative expenses. Assets include corporate headquarters and facilities, corporate cash and deferred income taxes. Financial information by segment is presented in the following tables for the 13 and 39 weeks ended October 31, 2014 and November 1, 2013, respectively. SUMMARY OF SEGMENT DATA
(in thousands) |  | Direct |  | Retail |  | Corporate/ Other |  | Total
13 Weeks Ended October 31, 2014 |  |  |  |  |  |  |  |
Merchandise sales and services, net |  | $ | 320,286 |  |  | $ | 52,776 |  |  | $ | 20 |  |  | $ | 373,082 |
Costs and expenses: |  |  |  |  |  |  |  |
Cost of sales (excluding depreciation and amortization) |  | 160,807 |  |  | 28,980 |  |  | — |  |  | 189,787 |
Selling and administrative |  | 111,712 |  |  | 22,980 |  |  | 8,678 |  |  | 143,370 |
Depreciation and amortization |  | 3,822 |  |  | 643 |  |  | 337 |  |  | 4,802 |
Other operating expense, net |  | — |  |  | — |  |  | 25 |  |  | 25 |
Total costs and expenses |  | 276,341 |  |  | 52,603 |  |  | 9,040 |  |  | 337,984 |
Operating income (loss) |  | 43,945 |  |  | 173 |  |  | (9,020 | ) |  | 35,098 |
Interest expense |  | — |  |  | — |  |  | 6,194 |  |  | 6,194 |
Other income, net |  | — |  |  | — |  |  | 507 |  |  | 507 |
Income (loss) before income taxes |  | 43,945 |  |  | 173 |  |  | (14,707 | ) |  | 29,411 |
Interest expense |  | — |  |  | — |  |  | 6,194 |  |  | 6,194 |
Other income, net |  | — |  |  | — |  |  | 507 |  |  | 507 |
Depreciation and amortization |  | 3,822 |  |  | 643 |  |  | 337 |  |  | 4,802 |
Loss on property and equipment |  | — |  |  | — |  |  | 25 |  |  | 25 |
Adjusted EBITDA |  | $ | 47,767 |  |  | $ | 816 |  |  | $ | (8,658 | ) |  | $ | 39,925 |
Total assets |  | $ | 1,127,221 |  |  | $ | 80,406 |  |  | $ | 146,386 |  |  | $ | 1,354,013 |
Capital expenditures |  | $ | 4,962 |  |  | $ | 310 |  |  | $ | 153 |  |  | $ | 5,425 |
(in thousands) |  | Direct |  | Retail |  | Corporate/ Other |  | Total
13 Weeks Ended November 1, 2013 |  |  |  |  |  |  |  |
Merchandise sales and services, net |  | $ | 324,179 |  |  | $ | 59,639 |  |  | $ | 33 |  |  | $ | 383,851 |
Costs and expenses: |  |  |  |  |  |  |  |
Cost of sales (excluding depreciation and amortization) |  | 171,226 |  |  | 38,175 |  |  | — |  |  | 209,401 |
Selling and administrative |  | 114,111 |  |  | 25,636 |  |  | 6,170 |  |  | 145,917 |
Depreciation and amortization |  | 4,035 |  |  | 882 |  |  | 338 |  |  | 5,255 |
Other operating expense, net |  | — |  |  | — |  |  | 7 |  |  | 7 |
Total costs and expenses |  | 289,372 |  |  | 64,693 |  |  | 6,515 |  |  | 360,580 |
Operating income (loss) |  | 34,807 |  |  | (5,054 | ) |  | (6,482 | ) |  | 23,271 |
Other income, net |  | — |  |  | — |  |  | 10 |  |  | 10 |
Income (loss) before income taxes |  | 34,807 |  |  | (5,054 | ) |  | (6,472 | ) |  | 23,281 |
Other income, net |  | — |  |  | — |  |  | 10 |  |  | 10 |
Depreciation and amortization |  | 4,035 |  |  | 882 |  |  | 338 |  |  | 5,255 |
Loss on property and equipment |  | — |  |  | — |  |  | 7 |  |  | 7 |
Adjusted EBITDA |  | $ | 38,842 |  |  | $ | (4,172 | ) |  | $ | (6,137 | ) |  | $ | 28,533 |
Total assets |  | $ | 1,176,621 |  |  | $ | 90,149 |  |  | $ | 34,846 |  |  | $ | 1,301,616 |
Capital expenditures |  | $ | 1,618 |  |  | $ | — |  |  | $ | 249 |  |  | $ | 1,867 |
(in thousands) |  | Direct |  | Retail |  | Corporate/ Other |  | Total
39 Weeks Ended October 31, 2014 |  |  |  |  |  |  |  |
Merchandise sales and services, net |  | $ | 888,889 |  |  | $ | 161,831 |  |  | $ | 67 |  |  | $ | 1,050,787 |
Costs and expenses: |  |  |  |  |  |  |  |
Cost of sales (excluding depreciation and amortization) |  | 448,519 |  |  | 88,545 |  |  | — |  |  | 537,064 |
Selling and administrative |  | 324,820 |  |  | 69,184 |  |  | 25,855 |  |  | 419,859 |
Depreciation and amortization |  | 11,682 |  |  | 1,938 |  |  | 1,009 |  |  | 14,629 |
Other operating expense, net |  | — |  |  | — |  |  | 45 |  |  | 45 |
Total costs and expenses |  | 785,021 |  |  | 159,667 |  |  | 26,909 |  |  | 971,597 |
Operating income (loss) |  | 103,868 |  |  | 2,164 |  |  | (26,842 | ) |  | 79,190 |
Interest expense |  | — |  |  | — |  |  | 14,324 |  |  | 14,324 |
Other income, net |  | — |  |  | — |  |  | 847 |  |  | 847 |
Income (loss) before income taxes |  | 103,868 |  |  | 2,164 |  |  | (40,319 | ) |  | 65,713 |
Interest expense |  | — |  |  | — |  |  | 14,324 |  |  | 14,324 |
Other income, net |  | — |  |  | — |  |  | 847 |  |  | 847 |
Depreciation and amortization |  | 11,682 |  |  | 1,938 |  |  | 1,009 |  |  | 14,629 |
Loss on disposal of property and equipment |  | — |  |  | — |  |  | 45 |  |  | 45 |
Adjusted EBITDA |  | $ | 115,550 |  |  | $ | 4,102 |  |  | $ | (25,788 | ) |  | $ | 93,864 |
Total assets |  | $ | 1,127,221 |  |  | $ | 80,406 |  |  | $ | 146,386 |  |  | $ | 1,354,013 |
Capital expenditures |  | $ | 10,393 |  |  | $ | 452 |  |  | $ | 296 |  |  | $ | 11,141 |
(in thousands) |  | Direct |  | Retail |  | Corporate/ Other |  | Total
39 Weeks Ended November 1, 2013 |  |  |  |  |  |  |  |
Merchandise sales and services, net |  | $ | 860,774 |  |  | $ | 171,596 |  |  | $ | 77 |  |  | $ | 1,032,447 |
Costs and expenses: |  |  |  |  |  |  |  |
Cost of sales (excluding depreciation and amortization) |  | 455,794 |  |  | 97,941 |  |  | — |  |  | 553,735 |
Selling and administrative |  | 316,882 |  |  | 75,476 |  |  | 16,424 |  |  | 408,782 |
Depreciation and amortization |  | 12,590 |  |  | 2,655 |  |  | 1,008 |  |  | 16,253 |
Other operating expense, net |  | — |  |  | — |  |  | 59 |  |  | 59 |
Total costs and expenses |  | 785,266 |  |  | 176,072 |  |  | 17,491 |  |  | 978,829 |
Operating income (loss) |  | 75,508 |  |  | (4,476 | ) |  | (17,414 | ) |  | 53,618 |
Other income, net |  | — |  |  | — |  |  | 33 |  |  | 33 |
Income (loss) before income taxes |  | 75,508 |  |  | (4,476 | ) |  | (17,381 | ) |  | 53,651 |
Other income, net |  | — |  |  | — |  |  | 33 |  |  | 33 |
Depreciation and amortization |  | 12,590 |  |  | 2,655 |  |  | 1,008 |  |  | 16,253 |
Loss on sale of property and equipment |  | — |  |  | — |  |  | 59 |  |  | 59 |
Adjusted EBITDA |  | $ | 88,098 |  |  | $ | (1,821 | ) |  | $ | (16,347 | ) |  | $ | 69,930 |
Total assets |  | $ | 1,176,621 |  |  | $ | 90,149 |  |  | $ | 34,846 |  |  | $ | 1,301,616 |
Capital expenditures |  | $ | 3,355 |  |  | $ | 1 |  |  | $ | 273 |  |  | $ | 3,629 |

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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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 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 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: 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 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=6534315&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 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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