20. Segments

The Company’s segment reporting structure reflects a brand-focused approach, designed to optimize the operational coordination and resource allocation of its businesses across multiple functional areas including specialty retail, e-commerce and licensing. The five reportable segments described below represent the Company’s brand-based activities for which separate financial information is available and which is utilized on a regular basis by the Company’s executive team to evaluate performance and allocate resources. In identifying reportable segments, the Company considers economic characteristics, as well as products, customers, sales growth potential and long-term profitability. As such, the Company’s reports its operations in three reportable segments as follows:

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Justice segment – consists of the specialty retail, outlet, e-commerce and licensing operations of the Justice brand.

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Lane Bryant segment – consists of the specialty retail, outlet and e-commerce operations of the Lane Bryant brand.

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maurices segment – consists of the specialty retail, outlet and e-commerce operations of the maurices brand.

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dressbarn segment – consists of the specialty retail, outlet and e-commerce operations of the dressbarn brand.

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Catherines segment - consists of the specialty retail, outlet and e-commerce operations of the Catherines brand.

The accounting policies of the Company’s reporting segments are consistent with those described in Notes 2 and 3. All intercompany revenues are eliminated in consolidation. Corporate overhead expenses are allocated to the segments based upon specific usage or other reasonable allocation methods.

Due to changes in the Company’s corporate overhead cost allocation methodology implemented in Fiscal 2012 as discussed in Note 2, segment information for Fiscal 2011 has been recasted to conform to the current period’s presentation. These changes related entirely to the reallocation of corporate overhead costs to each segment, and had no impact on total net sales, total operating income or total depreciation and amortization expense.

Net sales and operating income for each segment are as follows:

	Fiscal Years Ended
	July 28, 2012			July 30, 2011		July 31, 2010
	(millions)
Net sales
Justice ^(a)	$	1,306.7		$	1,150.0	$	711.9
Lane Bryant ^(b)		119.7			—		—
maurices		852.9			776.5		680.7
dressbarn		1,037.6			987.5		982.0
Catherines ^(b)		36.4			—		—
Total net sales	$	3,353.3		$	2,914.0	$	2,374.6

Operating income
Justice ^(a)	$	172.5		$	129.3	$	59.1
Lane Bryant ^(b)		(10.1	)		—		—
maurices		102.7			104.5		84.4
dressbarn		56.9			56.0		74.0
Catherines ^(b)		(4.0	)		—		—
Subtotal		318.0			289.8		217.5
Less unallocated acquisition-related, integration and restructuring costs		(25.4	)		—		—
Total operating income	$	292.6		$	289.8	$	217.5

^(a) The Tween Brands Merger was consummated on November 25, 2009; therefore data related to Fiscal 2010 is only for a partial period from the merger date to July 31, 2010.

^(b) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012.

A reconciliation of the Company’s operating income for each segment under the historical and recasted basis of reporting for Fiscal 2011 and Fiscal 2010 is as follows:

	Fiscal 2011							Fiscal 2010
	As Previously Reported		Adjustment			As Recasted		As Previously Reported		Adjustment			As Recasted
	(millions)
Operating income:
Justice	$	137.8	$	(8.5	)	$	129.3	$	64.7	$	(5.6	)	$	59.1
maurices		114.6		(10.1	)		104.5		93.0		(8.6	)		84.4
dressbarn		37.4		18.6			56.0		59.8		14.2			74.0
Total operating income	$	289.8	$	—		$	289.8	$	217.5	$	—		$	217.5

Depreciation and amortization expense and capital expenditures for each segment are as follows:

	Fiscal Years Ended
	July 28, 2012		July 30, 2011		July 31, 2010
	(millions)
Depreciation and amortization expense
Justice ^(a)	$	42.8	$	39.0	$	23.7
Lane Bryant ^(b)		5.2		—		—
maurices		26.1		22.2		20.8
dressbarn		32.5		28.6		27.1
Catherines ^(b)		0.8		—		—-
Total depreciation and amortization expense	$	107.4	$	89.8	$	71.6

Capital expenditures ^(c)
Justice ^(a)	$	58.9	$	34.5	$	12.5
Lane Bryant ^(b)		3.9		—		—
maurices		42.4		36.6		28.0
dressbarn		45.0		31.0		24.7
Catherines ^(b)		0.2		—		—
Total capital expenditures	$	150.4	$	102.1	$	65.2

^(a) The Tween Brands Merger was consummated on November 25, 2009; therefore data related to Fiscal 2010 is only for a partial period from the merger date to July 31, 2010.

^(c) Excludes non-cash capital expenditures of $13.4 million in Fiscal 2012, $3.6 million in Fiscal 2011 and $6.5 million in Fiscal 2010.

Total assets for each segment are as follows:	Fiscal Years Ended
	July 28, 2012		July 30, 2011
	(millions)
Assets
Justice	$	694.7	$	636.6
Lane Bryant ^(a)		1,016.4		—
maurices		499.7		486.4
dressbarn		287.3		356.6
Catherines ^(a)		89.6		—
Corporate ^(b)		219.4		360.0
Total assets	$	2,807.1	$	1,839.6

^(a) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore data related to the Lane Bryant and Catherines segments for the prior reporting period is not presented.

^(b) Includes assets specifically identified as Corporate assets, principally cash, investments, other corporate assets and, for Fiscal 2012, assets related to discontinued operations.

The Company’s operations are largely concentrated in the United States and Canada. Accordingly, net revenues and long-lived assets by geographical location are not meaningful at this time.