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SEGMENT INFORMATION
 12 Months Ended
Jan. 31, 2015
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 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 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 January 31, 2015, The Children’s Place U.S. operated 963 stores and The Children’s Place International operated 134 stores. As of February 1, 2014, The Children’s Place U.S. operated 974 stores and The Children’s Place International operated 133 stores.
The following tables provide segment level financial information for Fiscal 2014, Fiscal 2013 and Fiscal 2012 (dollars in thousands):
 
Fiscal Year Ended
 
January 31,
2015
 
February 1,
2014
 
February 2,
2013
Net sales:
 

 
 

 
 

The Children’s Place U.S.
$
1,528,762

 
$
1,528,276

 
$
1,557,549

The Children’s Place International (1)
232,562

 
237,513

 
251,937

Total net sales
$
1,761,324

 
$
1,765,789

 
$
1,809,486

Gross profit:
 
 
 
 
 
The Children’s Place U.S.
$
535,226

 
$
558,156

 
$
584,081

The Children’s Place International
87,074

 
97,365

 
107,359

Total gross profit
$
622,300

 
$
655,521

 
$
691,440

Gross Margin:
 
 
 
 
 
The Children’s Place U.S.
35.0
%
 
36.5
%
 
37.5
%
The Children’s Place International
37.4
%
 
41.0
%
 
42.6
%
Total gross margin
35.3
%
 
37.1
%
 
38.2
%
Operating income:


 
 
 
 
The Children’s Place U.S. (2)
$
63,586

 
$
60,267

 
$
68,346

The Children’s Place International (3)
16,457

 
16,016

 
21,369

Total operating income
$
80,043

 
$
76,283

 
$
89,715

Operating income as a percent of net sales:
 
 
 
 
 
The Children’s Place U.S.
4.2
%
 
3.9
%
 
4.4
%
The Children’s Place International
7.1
%
 
6.7
%
 
8.5
%
Total operating income
4.5
%
 
4.3
%
 
5.0
%
Depreciation and amortization:
 
 
 
 
 
The Children’s Place U.S.
$
52,565

 
$
55,595

 
$
65,066

The Children’s Place International
7,929

 
9,263

 
12,369

Total depreciation and amortization
$
60,494

 
$
64,858

 
$
77,435

Capital expenditures:
 
 
 
 
 
The Children’s Place U.S.
$
68,847

 
$
64,486

 
$
75,945

The Children’s Place International
3,365

 
8,120

 
14,237

Total capital expenditures
$
72,212

 
$
72,606

 
$
90,182



13.
SEGMENT INFORMATION (Continued)
(1)
Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.
(2)
Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $(0.1) million and $(0.9) million for Fiscal 2014 and Fiscal 2013, respectively. Also includes a $10.5 million impairment charge for Fiscal 2014 and a $25.4 million impairment charge for Fiscal 2013. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $7.1 million and $4.2 million for Fiscal 2014 and Fiscal 2013, respectively.
(3)
Includes a $0.6 million and $4.2 million impairment charge for Fiscal 2014 and Fiscal 2013, respectively.

 
January 31,
2015
 
February 1, 2014
Total assets:
 

 
 

The Children’s Place U.S.
$
805,462

 
$
824,893

The Children’s Place International
153,156

 
165,737

Total assets
$
958,618

 
$
990,630


 
Geographic Information
The Company's long-lived assets are located in the following countries:
 
 
January 31,
2015
 
February 1, 2014
Long-lived assets (1):
 
 
 
 
United States
 
$
289,820

 
$
283,059

Canada
 
22,697

 
31,046

Asia
 
1,242

 
1,399

Total long-lived assets
 
$
313,759

 
$
315,504


____________________________________________
(1)
The Company's long-lived assets are comprised of net property and equipment and other assets.