Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.8.0.1
SEGMENT REPORTING
12 Months Ended
Feb. 03, 2018
SEGMENT REPORTING  
SEGMENT REPORTING

17.    SEGMENT REPORTING

In 2016, we revised our segment reporting presentation to reflect changes in how we manage our business, including resource allocation and performance assessment.  Specifically, we are now presenting expenses related to our shared services platform separately from the results of our operating segments to promote enhanced comparability of our operating segments.  Previously, these shared service expenses were primarily included in our retail segment.  Comparable prior period information has been recast to reflect our revised segment presentation. 

Our operations are conducted in two reportable segments, retail and corporate apparel, based on the way we manage, evaluate and internally report our business activities.

The retail segment includes the results from our four retail merchandising brands: Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank, Moores and K&G. These four brands are operating segments that have been aggregated into the retail reportable segment. MW Cleaners is also aggregated in the retail segment as these operations have not had a significant effect on our revenues or expenses. Specialty apparel merchandise offered by our four retail merchandising concepts include suits, suit separates, sport coats, slacks, formalwear, business casual, denim, sportswear, outerwear, dress shirts, shoes and accessories for men. Women’s career and casual apparel, sportswear and accessories, including shoes, and children’s apparel is offered at most of our K&G stores.  Rental product is offered at our Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A Bank and Moores retail stores.

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Dimensions, Alexandra and Yaffy in the UK and Twin Hill in the U.S., which provide corporate apparel uniforms and workwear to workforces.

We measure segment profitability based on operating income, defined as income before interest expense, interest income, gain (loss) on extinguishment of debt, net, and income taxes, before shared service expenses. Shared service expenses include costs incurred and directed primarily by our corporate offices that are not allocated to segments.

Additional net sales information is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2017

    

2016

    

2015

 

Net sales:

 

 

    

 

 

    

 

 

    

 

MW(1)

 

$

1,742,668

 

$

1,770,968

 

$

1,791,249

 

Jos. A. Bank

 

 

735,149

 

 

749,869

 

 

866,882

 

K&G

 

 

323,994

 

 

329,954

 

 

338,359

 

Moores

 

 

216,366

 

 

214,470

 

 

222,574

 

MW Cleaners

 

 

34,844

 

 

33,140

 

 

33,410

 

Total retail segment

 

 

3,053,021

 

 

3,098,401

 

 

3,252,474

 

Total corporate apparel segment

 

 

251,325

 

 

280,302

 

 

243,797

 

Total net sales

 

$

3,304,346

 

$

3,378,703

 

$

3,496,271

 


(1)

MW includes Men’s Wearhouse and Men’s Wearhouse and Tux stores, tuxedo shops within Macy's and Joseph Abboud.

The following table sets forth supplemental products and services sales information for the Company (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2017

    

2016

    

2015

 

Net sales:

 

 

    

 

 

    

 

 

    

 

Men's tailored clothing product

 

$

1,351,881

 

$

1,343,875

 

$

1,436,742

 

Men's non-tailored clothing product

 

 

1,008,663

 

 

1,018,907

 

 

1,077,176

 

Women's clothing product

 

 

70,630

 

 

73,509

 

 

74,985

 

Other

 

 

8,643

 

 

9,631

 

 

11,031

 

Total retail clothing product

 

 

2,439,817

 

 

2,445,922

 

 

2,599,934

 

Rental services

 

 

428,355

 

 

457,444

 

 

443,290

 

Alteration services

 

 

150,005

 

 

161,895

 

 

175,840

 

Retail dry cleaning services

 

 

34,844

 

 

33,140

 

 

33,410

 

Total alteration and other services

 

 

184,849

 

 

195,035

 

 

209,250

 

Corporate apparel clothing product

 

 

251,325

 

 

280,302

 

 

243,797

 

Total net sales

 

$

3,304,346

 

$

3,378,703

 

$

3,496,271

 

 

Operating income (loss) by reportable segment, shared service expense, and the reconciliation to earnings (loss) before income taxes is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2017

    

2016

    

2015

 

Operating income (loss):

 

 

    

 

 

    

 

 

    

 

Retail

 

$

411,258

 

$

308,283

 

$

(919,793)

 

Corporate apparel

 

 

11,326

 

 

25,315

 

 

7,767

 

Shared service expense

 

 

(193,168)

 

 

(200,772)

 

 

(165,270)

 

Operating income (loss)

 

 

229,416

 

 

132,826

 

 

(1,077,296)

 

Interest income

 

 

564

 

 

167

 

 

187

 

Interest expense

 

 

(100,471)

 

 

(103,149)

 

 

(105,977)

 

Gain (loss) on extinguishment of debt, net

 

 

5,445

 

 

1,737

 

 

(12,675)

 

Earnings (loss) before income taxes

 

$

134,954

 

$

31,581

 

$

(1,195,761)

 

 

Capital expenditures by reportable segment and shared services are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2017

    

2016

    

2015

 

Capital expenditures:

 

 

    

 

 

    

 

 

    

 

Retail

 

$

56,133

 

$

39,059

 

$

65,683

 

Corporate apparel

 

 

3,663

 

 

3,440

 

 

4,079

 

Shared services

 

 

35,162

 

 

57,195

 

 

45,736

 

Total capital expenditures

 

$

94,958

 

$

99,694

 

$

115,498

 

Depreciation and amortization expense by reportable segment and shared services is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2017

    

2016

    

2015

 

Depreciation and amortization expense:

    

 

    

 

 

    

 

 

    

 

Retail

 

$

79,579

 

$

75,284

 

$

100,830

 

Corporate apparel

 

 

6,197

 

 

5,940

 

 

5,969

 

Shared services

 

 

20,717

 

 

33,981

 

 

25,530

 

Total depreciation and amortization expense

 

$

106,493

 

$

115,205

 

$

132,329

 

Total assets by reportable segment and shared services are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

February 3,

    

January 28,

 

 

 

2018

 

2017

 

Segment assets:

 

 

 

 

 

 

 

Retail

 

$

1,434,992

 

$

1,594,221

 

Corporate apparel

 

 

222,872

 

 

199,727

 

Shared services(1)

 

 

342,091

 

 

303,924

 

Total assets

 

$

1,999,955

 

$

2,097,872

 


(1)

Shared service assets consist primarily of cash and cash equivalents, assets related to our distribution network and tax-related assets.

The tables below present information related to geographic areas in which we operate, with net sales classified based primarily on the geographic area where our customer is located (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2017

    

2016

    

2015

 

Net sales:

 

 

    

 

 

    

 

 

    

 

U.S.

 

$

2,893,689

 

$

2,973,177

 

$

3,068,501

 

International (1)

 

 

410,657

 

 

405,526

 

 

427,770

 

Total net sales

 

$

3,304,346

 

$

3,378,703

 

$

3,496,271

 


(1)

Primarily in Canada and the UK.

 

 

 

 

 

 

 

 

 

    

February 3, 2018

    

January 28, 2017

 

Long-lived assets, net (including rental product):

 

 

 

 

 

 

 

U.S.

 

$

531,915

 

$

582,995

 

International (1)

 

 

52,489

 

 

53,780

 

Total long-lived assets

 

$

584,404

 

$

636,775

 


(1)

Primarily in Canada and the UK.