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SEGMENT INFORMATION
 6 Months Ended
Aug. 01, 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 August 1, 2015, The Children’s Place U.S. operated 953 stores and The Children’s Place International operated 133 stores. As of August 2, 2014, The Children’s Place U.S. operated 978 stores and The Children’s Place International operated 135 stores.
The following tables provide segment level financial information (dollars in thousands):
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
 
August 1,
2015
 
August 2,
2014
 
August 1,
2015

August 2,
2014
Net sales:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
316,212

 
$
327,938

 
$
679,357

 
$
694,070

The Children’s Place International (1)
50,243

 
56,690

 
91,963

 
100,707

Total net sales
$
366,455

 
$
384,628

 
$
771,320

 
$
794,777

Gross profit:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
95,604

 
$
97,950

 
$
232,124

 
$
232,145

The Children’s Place International
19,400

 
21,168

 
34,989

 
35,234

Total gross profit
$
115,004

 
$
119,118

 
$
267,113

 
$
267,379

Gross Margin:
 

 
 

 
 

 
 

The Children’s Place U.S.
30.2
 %
 
29.9
 %
 
34.2
 %
 
33.4
 %
The Children’s Place International
38.6
 %
 
37.3
 %
 
38.0
 %
 
35.0
 %
Total gross margin
31.4
 %
 
31.0
 %
 
34.6
 %
 
33.6
 %
Operating income (loss):
 

 
 

 
 

 
 

The Children’s Place U.S. (2)
$
(23,041
)
 
$
(17,058
)
 
$
(764
)
 
$
5,015

The Children’s Place International
2,923

 
561

 
3,850

 
(1,429
)
Total operating income (loss)
$
(20,118
)
 
$
(16,497
)
 
$
3,086

 
$
3,586

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

 
 

 
 

 
 

The Children’s Place U.S.
(7.3
)%
 
(5.2
)%
 
(0.1
)%
 
0.7
 %
The Children’s Place International
5.8
 %
 
1.0
 %
 
4.2
 %
 
(1.4
)%
Total operating income (loss)
(5.5
)%
 
(4.3
)%
 
0.4
 %
 
0.5
 %
Depreciation and amortization:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
13,599

 
$
13,395

 
$
26,469

 
$
25,767

The Children’s Place International
1,653

 
2,162

 
3,177

 
4,017

Total depreciation and amortization
$
15,252

 
$
15,557

 
$
29,646

 
$
29,784

Capital expenditures:
 

 
 

 
 

 
 

The Children’s Place U.S.
$
9,512

 
$
14,377

 
$
19,447

 
$
28,216

The Children’s Place International
574

 
496

 
702

 
2,559

Total capital expenditures
$
10,086

 
$
14,873

 
$
20,149

 
$
30,775

 
____________________________________________
(1) 
Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.
(2) 
Includes costs incurred related to a class action wage and hour legal settlement, proxy contest costs, a sales tax audit, asset impairment charges and costs arising out of the restructuring of certain store and corporate operations, of approximately $10.3 million and $13.7 million for the Second Quarter 2015 and Year-To-Date 2015, respectively. Includes additional costs incurred related to asset impairment charges and costs arising out of the restructuring of certain store and corporate operations, of approximately $4.1 million and $6.4 million for Second Quarter 2014 and the Year-To-Date 2014, respectively.

 
August 1, 2015
 
January 31, 2015
 
August 2, 2014
Total assets:
 

 
 

 
 

The Children’s Place U.S.
$
815,886

 
$
805,462

 
$
843,696

The Children’s Place International
146,068

 
153,156

 
152,699

Total assets
$
961,954

 
$
958,618

 
$
996,395