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SEGMENT INFORMATION
 6 Months Ended
Aug. 03, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
In accordance with the “Segment Reporting” topic of the FASB ASC, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International.  Each segment includes an e-commerce business located at www.childrensplace.com.  Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores. Included in The Children's Place International segment are the Company's Canadian based stores and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes.  Net sales and direct costs are recorded by each segment.  Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment.  Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales.  The assets related to these functions are not allocated.  The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances.  Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales.  As of August 3, 2013, The Children’s Place U.S. operated 983 stores and The Children’s Place International operated 133 stores. As of July 28, 2012, The Children’s Place U.S. operated 954 stores and The Children’s Place International operated 126 stores.
The following tables provide segment level financial information (dollars in thousands):
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
 
August 3,
2013
 
July 28,
2012
 
August 3,
2013

July 28,
2012
Net sales:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
329,953

 
$
310,053

 
$
703,606

 
$
694,836

The Children’s Place International
52,495

 
50,773

 
102,006

 
104,498

Total net sales
$
382,448

 
$
360,826

 
$
805,612

 
$
799,334

Gross profit:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
106,553

 
$
95,603

 
$
250,490

 
$
252,010

The Children’s Place International
19,629

 
19,102

 
38,960

 
41,340

Total gross profit
$
126,182

 
$
114,705

 
$
289,450

 
$
293,350

Gross Margin:
 

 
 

 
 

 
 

The Children’s Place U.S.
32.3
 %
 
30.8
 %
 
35.6
 %
 
36.3
%
The Children’s Place International
37.4
 %
 
37.6
 %
 
38.2
 %
 
39.6
%
Total gross margin
33.0
 %
 
31.8
 %
 
35.9
 %
 
36.7
%
Operating income (loss):
 

 
 

 
 

 
 

The Children’s Place U.S. (1)
$
(34,956
)
 
$
(25,583
)
 
$
(7,021
)
 
$
8,867

The Children’s Place International (2)
(690
)
 
(1,207
)
 
(166
)
 
1,403

Total operating income (loss)
$
(35,646
)
 
$
(26,790
)
 
$
(7,187
)
 
$
10,270

Operating income (loss) as a percent of net sales:
 

 
 

 
 

 
 

The Children’s Place U.S.
(10.6
)%
 
(8.3
)%
 
(1.0
)%
 
1.3
%
The Children’s Place International
(1.3
)%
 
(2.4
)%
 
(0.2
)%
 
1.3
%
Total operating income (loss)
(9.3
)%
 
(7.4
)%
 
(0.9
)%
 
1.3
%
Depreciation and amortization:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
13,922

 
$
14,493

 
$
28,481

 
$
28,723

The Children’s Place International
1,671

 
2,989

 
3,936

 
5,977

Total depreciation and amortization
$
15,593

 
$
17,482

 
$
32,417

 
$
34,700

Capital expenditures:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
14,300

 
$
16,130

 
$
32,274

 
$
35,290

The Children’s Place International
2,269

 
6,095

 
6,396

 
8,947

Total capital expenditures
$
16,569

 
$
22,225

 
$
38,670

 
$
44,237

 
____________________________________________
(1)
Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.1 million and $3.1 million for the Second Quarter 2013 and Second Quarter 2012, respectively, and $(1.0) million and $3.9 million, for Year-To-Date 2013 and Year-To-Date 2012, respectively. Also includes a $20.8 million impairment charge for the Second Quarter 2013 and a $1.5 million impairment charge for Year-To-Date 2012 and additional costs incurred related to restructuring, severance and reorganizations of approximately $1.7 million and $1.3 million for the Second Quarter 2013 and Second Quarter 2012, respectively, and $2.2 million and $3.9 million for Year-To-Date 2013 and Year-To-Date 2012, respectively.
(2)
Includes a $1.0 million impairment charge for the Second Quarter 2013.

 
August 3, 2013
 
February 2, 2013
 
July 28, 2012
Total assets:
 

 
 

 
 

The Children’s Place U.S.
$
797,025

 
$
746,911

 
$
725,213

The Children’s Place International
160,956

 
176,499

 
160,147

Total assets
$
957,981

 
$
923,410

 
$
885,360