Segment Information

6 Months Ended

Aug. 03, 2013

Segment Information

15. Segment Information

We have four reportable segments: retail stores, Gymboree Play & Music, International Retail Franchise, and one reportable segment related to the activities of our consolidated VIEs. These reportable segments were identified based on how our business is managed and evaluated. The retail stores segment includes four operating segments (brands), which sell high-quality apparel for children: Gymboree Retail (including an online store), Gymboree Outlet, Janie and Jack (including an online store), and Crazy 8 (including an online store). These four operating segments have been aggregated into one reportable segment because these operating segments have similar historical economic characteristics and/or are expected to have similar economic characteristics and similar long-term financial performance in the future. Gross margin is the principal measure we consider in determining whether the economic characteristics are similar. In addition, each operating segment has similar products, production processes and type or class of customer. We believe that disaggregating our operating segments would not provide material additional information. Corporate overhead (costs related to our distribution center and shared corporate services) is included in the retail stores segment.

The following table provides the summary financial data of each reportable segment (in thousands):

	13 Weeks Ended August 3, 2013
	Retail Stores			Gymboree Play & Music		International Retail Franchise		VIEs			Intersegment Elimination			Total
Net sales	$	277,649		$	3,654	$	5,842	$	4,998		$	(1,227	)	$	290,916
Operating income (loss)		1,058			1,438		2,825		(273	)		15			5,063
Total assets		1,950,885			60,377		30,363		15,877			(1,941	)		2,055,561
	13 Weeks Ended July 28, 2012
	Retail Stores			Gymboree Play & Music		International Retail Franchise		VIEs			Intersegment Elimination			Total
Net sales	$	258,473		$	5,152	$	3,866	$	3,056		$	(1,795	)	$	268,752
Operating (loss) income		(8,615	)		1,715		1,570		(1,111	)		34			(6,407	)
Total assets		1,992,120			60,812		29,430		12,672			(2,600	)		2,092,434
	26 Weeks Ended August 3, 2013
	Retail Stores			Gymboree Play & Music		Retail Franchise		VIEs			Intersegment Elimination			Total
Net sales	$	557,453		$	7,645	$	11,527	$	9,632		$	(2,558	)	$	583,699
Operating income (loss)		13,871			3,448		5,069		(515	)		34			21,907
Total assets		1,950,885			60,377		30,363		15,877			(1,941	)		2,055,561
	26 Weeks Ended July 28, 2012
	Retail Stores			Gymboree Play & Music		Retail Franchise		VIEs			Intersegment Elimination			Total
Net sales	$	546,502		$	11,202	$	7,718	$	5,199		$	(4,118	)	$	566,503
Operating income (loss)		19,004			3,635		3,019		(1,865	)		(115	)		23,678
Total assets		1,992,120			60,812		29,430		12,672			(2,600	)		2,092,434

Interest expense, depreciation and amortization expense and capital expenditures have not been separately disclosed above as the amounts primarily relate to the retail segment. The Gymboree Play & Music and International Retail Franchise segments recorded intersegment revenues of $1.1 million and $0.1 million, respectively, for the 13 weeks ended August 3, 2013 and $2.3 million and $0.3 million, respectively, for the 26 weeks ended August 3, 2013. The Gymboree Play & Music and VIE segments recorded intersegment revenues of $0.1 million and $1.7 million, respectively, for the 13 weeks ended July 28, 2012 and $0.6 million and $3.5 million, respectively, for the 26 weeks ended July 28, 2012. There were no other material intersegment revenues.

We attribute retail store revenues to individual countries based on selling location. Effective in the third quarter of fiscal 2012, geographical segments, previously disclosed by country, were included in either the United States or international geographical segment to conform to the current period presentation. For Gymboree International Retail Franchise, all sales were attributed to the United States geographic segment.

Prior to November 2012, Gymboree Play & Music sales were all attributable to the U.S. geographic segment. Effective November 2012, as a result of a modification to the Master Service Agreement with Gymboree Tianjin, China Play & Music franchisee sales are attributable to the international geographic segment and all other Gymboree Play & Music sales are attributable to the U.S. geographic segment.

Long-lived assets include net property and equipment, goodwill, other intangibles, deferred financing costs and other assets. The following tables provide the summary financial data of each of our two geographical segments, United States and international (in thousands):

	13 Weeks Ended
	August 3, 2013				July 28, 2012
	United States		International		United States		International
Net sales	$	273,664	$	17,252	$	254,673	$	14,079
Long-lived assets		1,673,700		54,637		1,688,561		52,815
	26 Weeks Ended
	August 3, 2013				July 28, 2012
	United States		International		United States		International
Net sales	$	550,893	$	32,806	$	541,603	$	24,900
Long-lived assets		1,673,700		54,637		1,688,561		52,815