Segment Information

3 Months Ended

May 04, 2013

Segment Information

2. Segment Information

The Company has determined that its reportable segments are those that are based on its method of internal reporting. As of May 4, 2013, the Company has two reportable segments, Athletic Stores and Direct-to-Customers. Sales and division results for the Company’s reportable segments for the thirteen weeks ended May 4, 2013 and April 28, 2012 are presented below. Division profit reflects income before income taxes, corporate expense, net interest expense, and net non-operating income.

Sales

	Thirteen weeks ended
	May 4,		April 28,
(in millions)	2013		2012
Athletic Stores	$	1,471	$	1,437
Direct-to-Customers		167		141
Total sales	$	1,638	$	1,578

Operating Results

	Thirteen weeks ended
	May 4,		April 28,
(in millions)	2013		2012
Athletic Stores	$	211	$	207
Direct-to-Customers		23		18
Division profit		234		225
Less: Corporate expense, net		19		23
Operating profit		215		202
Interest expense, net		1		1
Other income (1)		2		—
Income before income taxes	$	216	$	201

  ⁽¹⁾   Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid and realized gains associated with foreign currency option contracts.