SEGMENT INFORMATION

9 Months Ended

Nov. 02, 2019

Segment Reporting Disclosure [Text Block]

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 November 2, 2019, The Children’s Place U.S. owned and operated 834 stores and The Children’s Place International owned and operated 121 stores. As of November 3, 2018, The Children’s Place U.S. owned and operated 862 stores and The Children’s Place International owned and operated 126 stores.

The following tables provide segment level financial information:


	Thirteen Weeks Ended									Thirty-nine Weeks Ended
	November 2, 2019			November 3, 2018			November 2, 2019			November 3, 2018
	(In thousands)
Net sales:
The Children’s Place U.S.	$	467,834		$	461,286		$	1,217,215		$	1,256,363
The Children’s Place International ⁽¹⁾	56,962			61,209			140,432			151,163
Total net sales	$	524,796		$	522,495		$	1,357,647		$	1,407,526








Operating income:
The Children’s Place U.S.	$	48,129		$	52,481		$	55,722		$	79,178
The Children’s Place International	9,822			12,124			11,102			18,508
Total operating income	$	57,951		$	64,605		$	66,824		$	97,686
Operating income as a percent of net sales:
The Children’s Place U.S.	10.3		%	11.4		%	4.6		%	6.3		%
The Children’s Place International	17.2		%	19.8		%	7.9		%	12.2		%
Total operating income as a percent of net sales	11.0		%	12.4		%	4.9		%	6.9		%
Depreciation and amortization:
The Children’s Place U.S.	$	16,971		$	15,432		$	50,301		$	45,836
The Children’s Place International	1,850			1,972			5,576			5,569
Total depreciation and amortization	$	18,821		$	17,404		$	55,877		$	51,405
Capital expenditures:
The Children’s Place U.S.	$	20,326		$	27,077		$	41,741		$	54,299
The Children’s Place International	230			581			655			1,205
Total capital expenditures	$	20,556		$	27,658		$	42,396		$	55,504

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


	November 2, 2019		February 2, 2019		November 3, 2018
Total assets:	(In thousands)
The Children’s Place U.S.	$	1,179,493	$	651,728	$	756,191
The Children’s Place International	106,229		75,318		81,062
Total assets	$	1,285,722	$	727,046	$	837,253