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SEGMENT INFORMATION
 3 Months Ended
May 02, 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 revenue from the Company's U.S. based wholesale partners. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canadian 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 May 2, 2015, The Children’s Place U.S. operated 959 stores and The Children’s Place International operated 133 stores. As of May 3, 2014, The Children’s Place U.S. operated 972 stores and The Children’s Place International operated 134 stores.
The following tables provide segment level financial information (dollars in thousands):
 
Thirteen Weeks Ended
 
May 2,
2015
 
May 3,
2014
Net sales:
 

 
 

The Children’s Place U.S.
$
363,145

 
$
366,132

The Children’s Place International (1)
41,720

 
44,017

Total net sales
$
404,865

 
$
410,149

Gross profit:
 

 
 

The Children’s Place U.S.
$
136,520

 
$
134,195

The Children’s Place International
15,589

 
14,066

Total gross profit
$
152,109

 
$
148,261

Gross Margin:
 

 
 

The Children’s Place U.S.
37.6
%
 
36.7
 %
The Children’s Place International
37.4
%
 
32.0
 %
Total gross margin
37.6
%
 
36.1
 %
Operating income:
 

 
 

The Children’s Place U.S. (2)
$
22,277

 
$
22,073

The Children’s Place International
927

 
(1,990
)
Total operating income
$
23,204

 
$
20,083

Operating income as a percent of net sales:
 

 
 

The Children’s Place U.S.
6.1
%
 
6.0
 %
The Children’s Place International
2.2
%
 
(4.5
)%
Total operating income
5.7
%
 
4.9
 %
Depreciation and amortization:
 

 
 

The Children’s Place U.S.
$
12,870

 
$
12,372

The Children’s Place International
1,524

 
1,855

Total depreciation and amortization
$
14,394

 
$
14,227

Capital expenditures:
 

 
 

The Children’s Place U.S.
$
9,935

 
$
13,839

The Children’s Place International
128

 
2,063

Total capital expenditures
$
10,063

 
$
15,902

 
____________________________________________
(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 proxy contest costs and costs arising out of the restructuring of certain store and corporate operations, of approximately $3.2 million and $2.3 million for the First Quarter 2015 and the First Quarter 2014, respectively.

 
May 2, 2015
 
January 31, 2015
 
May 3, 2014
Total assets:
 

 
 

 
 

The Children’s Place U.S.
$
761,504

 
$
805,462

 
$
780,816

The Children’s Place International
148,599

 
153,156

 
156,723

Total assets
$
910,103

 
$
958,618

 
$
937,539