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SEGMENT INFORMATION
 6 Months Ended
Aug. 02, 2014
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 and U.S. revenue from the Company's U.S. wholesale partners. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale partner 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 to 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 2, 2014, The Children’s Place U.S. operated 978 stores and The Children’s Place International operated 135 stores. As of August 3, 2013, The Children’s Place U.S. operated 983 stores and The Children’s Place International operated 133 stores.
The following tables provide segment level financial information (dollars in thousands):
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
 
August 2,
2014
 
August 3,
2013
 
August 2,
2014

August 3,
2013
Net sales:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
327,938

 
$
329,953

 
$
694,070

 
$
703,606

The Children’s Place International (1)
56,690

 
52,495

 
100,707

 
102,006

Total net sales
$
384,628

 
$
382,448

 
$
794,777

 
$
805,612

Gross profit:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
97,950

 
$
106,553

 
$
232,145

 
$
250,490

The Children’s Place International
21,168

 
19,629

 
35,234

 
38,960

Total gross profit
$
119,118

 
$
126,182

 
$
267,379

 
$
289,450

Gross Margin:
 

 
 

 
 

 
 

The Children’s Place U.S.
29.9
 %
 
32.3
 %
 
33.4
 %
 
35.6
 %
The Children’s Place International
37.3
 %
 
37.4
 %
 
35.0
 %
 
38.2
 %
Total gross margin
31.0
 %
 
33.0
 %
 
33.6
 %
 
35.9
 %
Operating income (loss):
 

 
 

 
 

 
 

The Children’s Place U.S. (2)
$
(17,058
)
 
$
(34,956
)
 
$
5,015

 
$
(7,021
)
The Children’s Place International (3)
561

 
(690
)
 
(1,429
)
 
(166
)
Total operating income (loss)
$
(16,497
)
 
$
(35,646
)
 
$
3,586

 
$
(7,187
)
Operating income (loss) as a percent of net sales:
 

 
 

 
 

 
 

The Children’s Place U.S.
(5.2
)%
 
(10.6
)%
 
0.7
 %
 
(1.0
)%
The Children’s Place International
1.0
 %
 
(1.3
)%
 
(1.4
)%
 
(0.2
)%
Total operating income (loss)
(4.3
)%
 
(9.3
)%
 
0.5
 %
 
(0.9
)%
Depreciation and amortization:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
13,395

 
$
13,922

 
$
25,767

 
$
28,481

The Children’s Place International
2,162

 
1,671

 
4,017

 
3,936

Total depreciation and amortization
$
15,557

 
$
15,593

 
$
29,784

 
$
32,417

Capital expenditures:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
14,377

 
$
14,300

 
$
28,216

 
$
32,274

The Children’s Place International
496

 
2,269

 
2,559

 
6,396

Total capital expenditures
$
14,873

 
$
16,569

 
$
30,775

 
$
38,670

 
____________________________________________
(1)
Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.
(2)
Includes additional SG&A costs incurred related to restructuring, severance and reorganizations of approximately $1.1 million and $1.7 million for the Second Quarter 2014 and Second Quarter 2013, respectively, and $3.4 million and $2.2 million for Year-To-Date 2014 and Year-To-Date 2013, respectively. Also includes asset impairment charges of $3.0 million and $20.8 million for the Second Quarter 2014 and Second Quarter 2013, respectively.
(3)
Includes a $1.0 million asset impairment charge for the Second Quarter 2013.

 
August 2, 2014
 
February 1, 2014
 
August 3, 2013
Total assets:
 

 
 

 
 

The Children’s Place U.S.
$
843,696

 
$
824,893

 
$
797,025

The Children’s Place International
152,699

 
165,737

 
160,956

Total assets
$
996,395

 
$
990,630

 
$
957,981