2. Segment Information

The Company has determined that its reportable segments are those that are based on its method of internal reporting. As of February 3, 2018, the Company had two reportable segments, Athletic Stores and Direct-to-Customers. The accounting policies of both segments are the same as those described in Note 1, Summary of Significant Accounting Policies. The Company evaluates performance based on several factors, of which the primary financial measure is division results. Division profit reflects income before income taxes, pension litigation and reorganization charges, corporate expense, non-operating income, and net interest (income) / expense.

Effective as of the beginning of fiscal year 2018, the Company will report one reportable segment based upon the change in our method of internal reporting.



	2017		2016		2015
Sales	($ in millions)
Athletic Stores	$	6,673	$	6,744	$	6,468
Direct-to-Customers		1,109		1,022		944
Total sales	$	7,782	$	7,766	$	7,412
Operating Results
Athletic Stores (1)	$	675	$	927	$	872
Direct-to-Customers (2)		135		143		142
Division profit		810		1,070		1,014
Less: Pension litigation and reorganization charges (3), (4)		191		—		100
Less: Corporate expense (5)		48		70		77
Operating profit		571		1,000		837
Interest (income) / expense, net		(2)		2		4
Other income		5		6		4
Income before income taxes	$	578	$	1,004	$	837

(1)		Included in the results for 2017, 2016, and 2015 are non-cash impairment charges of $20 million, $6 million, and $4 million, respectively. The 2017 amount includes a charge of $16 million to write down long-lived store assets of SIX:02, and a charge of $4 million to write down primarily long-lived store assets of Runners Point and Sidestep. The 2016 and 2015 amounts reflect charges to write down long-lived store assets of Runners Point and Sidestep. See Note 3, Litigation and Other Charges for additional information.
(2)		Included in the results for 2015 is a $1 million non-cash impairment charge relating to an e-commerce trade name. See Note 3, Litigation and Other Charges for additional information.
(3)		Included in the 2017 and 2015 amounts is a pre-tax charge of $178 million and $100 million, respectively, relating to a pension litigation matter described further in Note 22, Legal Proceedings.
(4)		Included in the 2017 amount is $13 million in pre-tax reorganization costs related to the reduction and reorganization of division and corporate staff that occurred in the third quarter of 2017, described more fully in Note 3, Litigation and Other Charges.
(5)		Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $4 million for 2017, $9 million for 2016, and $5 million for 2015, thereby reducing corporate expense.



	Depreciation and
	Amortization						Capital Expenditures (1)						Total Assets
	2017		2016		2015		2017		2016		2015		2017		2016		2015
	($ in millions)
Athletic Stores	$	153	$	140	$	130	$	202	$	193	$	181	$	2,775	$	2,802	$	2,612
Direct-to-Customers		4		4		7		3		4		7		357		338		330
		157		144		137		205		197		188		3,132		3,140		2,942
Corporate		16		14		11		69		69		40		829		700		833
Total Company	$	173	$	158	$	148	$	274	$	266	$	228	$	3,961	$	3,840	$	3,775


(1)		Reflects cash capital expenditures for all years presented.

Sales and long-lived asset information by geographic area as of and for the fiscal years ended February 3, 2018, January 28, 2017, and January 30, 2016 are presented in the following tables. Sales are attributed to the country in which the sales transaction is fulfilled. Long-lived assets reflect property and equipment.



	2017		2016		2015
Sales	($ in millions)
United States	$	5,532	$	5,562	$	5,305
International		2,250		2,204		2,107
Total sales	$	7,782	$	7,766	$	7,412



	2017		2016		2015
Long-Lived Assets	($ in millions)
United States	$	607	$	575	$	486
International		259		190		175
Total long-lived assets	$	866	$	765	$	661

For the year ended February 3, 2018, the countries that comprised the majority of the sales and long-lived assets for the international category were Canada, Italy, Germany, and France. No other individual country included in the international category was significant.