Annual report pursuant to Section 13 and 15(d)

SEGMENTS AND GEOGRAPHIC INFORMATION

v3.19.1
SEGMENTS AND GEOGRAPHIC INFORMATION
12 Months Ended
Feb. 02, 2019
SEGMENTS AND GEOGRAPHIC INFORMATION  
SEGMENTS AND GEOGRAPHIC INFORMATION

 

13. SEGMENTS AND GEOGRAPHIC INFORMATION

 

We consider Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice to be our operating segments for purposes of determining reportable segments based on the criteria of ASC 280, Segment Reporting (“ASC 280”). We determined that Michaels-U.S., Michaels-Canada, Aaron Brothers and Pat Catan’s have similar economic characteristics and meet the aggregation criteria set forth in ASC 280. Therefore, we combine these operating segments into one reporting segment. Darice does not meet the materiality criteria in ASC 280 and, therefore, is not disclosed separately as a reportable segment. Our chief operating decision makers evaluate historical operating performance and forecast future periods’ operating performance based on operating income.

 

Our net sales by country and sales by product category are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

    

2018

    

2017

 

2016

Net Sales:

 

 

 

 

 

 

 

 

 

United States (1)

 

$

4,783,903

 

$

4,856,275

 

$

4,736,578

Canada

 

 

488,041

 

 

505,685

 

 

460,714

Total

 

$

5,271,944

 

$

5,361,960

 

$

5,197,292

 

 

 

 

 

 

 

 

 

 

Sales by Product Category:

 

 

 

 

 

 

 

 

 

General crafts

 

$

2,604,905

 

$

2,685,787

 

$

2,634,743

Home décor and seasonal

 

 

1,230,054

 

 

1,177,069

 

 

1,088,989

Custom and ready-made framing

 

 

801,075

 

 

875,944

 

 

898,798

Papercrafting

 

 

635,910

 

 

623,160

 

 

574,762

Total

 

$

5,271,944

 

$

5,361,960

 

$

5,197,292


(1)

In March 2018, we closed substantially all of our Aaron Brothers stores. For fiscal 2018, fiscal 2017 and fiscal 2016, Aaron Brothers net sales totaled approximately $12.9 million,  $110.4 million and $120.5 million, respectively.

   

 

Our total assets by country are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

 

    

2018

    

2017

Total Assets:

 

 

 

 

 

 

 

 

 

United States (1)

 

 

 

 

$

1,949,836

 

$

2,145,244

Canada

 

 

 

 

 

178,500

 

 

154,971

Total

 

 

 

 

$

2,128,336

 

$

2,300,215


(1)

In fiscal 2018, we wrote off approximately $97.8 million of assets in connection with the closure of substantially all of our Aaron Brothers stores and the closure of all our Pat Catan’s stores.

 

Assets are categorized based on their geographic location. Certain assets located in the U.S. are also used to support our Canadian operations but are not allocated to Canada.