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 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 February 2, 2019, The Children’s Place U.S. owned and operated 850 stores and The Children’s Place International owned and operated 122 stores. As of February 3, 2018, The Children’s Place U.S. owned and operated 886 stores and The Children’s Place International owned and operated 128 stores.

The following tables provide segment level financial information for Fiscal 2018, Fiscal 2017, and Fiscal 2016:



	Fiscal Year Ended
	February 2, 2019		February 3, 2018		January 28, 2017
	(In thousands)
Net sales:
The Children’s Place U.S.	$	1,727,907	$	1,650,620	$	1,567,556
The Children’s Place International⁽¹⁾	210,177		219,655		217,760
Total net sales	$	1,938,084	$	1,870,275	$	1,785,316
Operating income:
The Children’s Place U.S.	$	86,983	$	132,152	$	113,376
The Children’s Place International	24,345		29,358		34,032
Total operating income	$	111,328	$	161,510	$	147,408



Operating income as a percent of net sales:
The Children’s Place U.S.	5.0		%	8.0		%	7.2		%
The Children’s Place International	11.6		%	13.4		%	15.6		%
Total operating income	5.7		%	8.6		%	8.3		%
Depreciation and amortization:
The Children’s Place U.S.	$	61,487		$	60,732		$	58,626
The Children’s Place International	7,397			7,427			7,108
Total depreciation and amortization	$	68,884		$	68,159		$	65,734
Capital expenditures:
The Children’s Place U.S.	$	67,476		$	57,360		$	33,447
The Children’s Place International	3,638			1,297			1,237
Total capital expenditures	$	71,114		$	58,657		$	34,684


(1)	Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars.



	February 2, 2019		February 3, 2018
	(In thousands)
Total assets:
The Children’s Place U.S.	$	651,728	$	750,670
The Children’s Place International	75,318		189,558
Total assets	$	727,046	$	940,228

Geographic Information

The Company's long-lived assets are located in the following countries:



	February 2, 2019		February 3, 2018
	(In thousands)
Long-lived assets⁽¹⁾:
United States	$	261,932	$	258,660
Canada	10,718		11,119
Asia	1,251		1,247
Total long-lived assets	$	273,901	$	271,026

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