SEGMENT INFORMATION

In accordance with FASB ASC 280---Segment Reporting, 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 business. Included in The Children's Place International segment are the Company's Canadian-based stores, revenue from the Company's Canadian wholesale business 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 5, 2018, The Children’s Place U.S. owned and operated 876 stores and The Children’s Place International owned and operated 126 stores. As of April 29, 2017, The Children’s Place U.S. owned and operated 904 stores and The Children’s Place International owned and operated 129 stores.

The following tables provide segment level financial information:



	Thirteen Weeks Ended
	May 5, 2018			April 29, 2017
	(In thousands)
Net sales:
The Children’s Place U.S.	$	395,779		$	394,763
The Children’s Place International ⁽¹⁾	40,535			41,913
Total net sales	$	436,314		$	436,676
Operating income:
The Children’s Place U.S.	$	21,356		$	38,740
The Children’s Place International	1,702			3,544
Total operating income	$	23,058		$	42,284
Operating income as a percent of net sales:
The Children’s Place U.S.	5.4		%	9.8		%
The Children’s Place International	4.2		%	8.5		%
Total operating income	5.3		%	9.7		%
Depreciation and amortization:
The Children’s Place U.S.	$	15,541		$	13,963
The Children’s Place International	1,865			1,729
Total depreciation and amortization	$	17,406		$	15,692
Capital expenditures:
The Children’s Place U.S.	$	10,846		$	13,100
The Children’s Place International	219			192
Total capital expenditures	$	11,065		$	13,292

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⁽¹⁾	Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.



	May 5, 2018		February 3, 2018		April 29, 2017
Total assets:	(In thousands)
The Children’s Place U.S.	$	732,815	$	750,670	$	711,257
The Children’s Place International	78,112		189,558		160,999
Total assets	$	810,927	$	940,228	$	872,256