Information on segments and reconciliation to earnings before income taxes, are as follows:

RESTRUCTURING AND OTHER CHARGES

On January 28, 2002, the company announced a series of steps designed to enhance its future cash flow and operating earnings and to allow the company to continue to concentrate its financial resources on those stores and store formats that are most productive. The company is closing 37 Kids“R”Us stores and, in almost all of these locations, is converting the nearest Toys“R”Us store into a Toys“R”Us/Kids“R”Us combo store in tandem with the Kids“R”Us store closings. The company is also closing 27 non-Mission Possible format Toys“R”Us stores, eliminating approximately 1,900 staff positions at stores and headquarters, and consolidating its store support center facilities for its intended move into its new headquarters in Wayne, New Jersey, which the company intends to fully occupy by the summer of 2003. The five New Jersey facilities to be consolidated into the new headquarters in Wayne, New Jersey, include two locations in Montvale, and one facility each in Paramus, East Hanover, and Fort Lee.

The costs associated with facilities consolidation, elimination of positions, and other actions designed to improve efficiency in support functions were $79, of which $15 related to severance. The costs associated with store closings were $73 for Kids“R”Us and $85 for Toys“R”Us, of which $27 was recorded in cost of sales. The fair values of facilities to be consolidated and store closings were obtained from third party appraisals. The company also reversed $24 million of previously accrued charges ($11 from the 1998 charge and $13 from the 1995 charge) that have been deemed no longer needed. See below for further details regarding the reversal of these reserves. Accordingly, based on all of these actions, the company recorded $213 million of pre-tax ($126 million after-tax) restructuring and other charges in the fourth quarter of its fiscal year ending February 2, 2002. Details on the components of the charges are as follows:

In 1998, the company announced strategic initiatives to reposition its worldwide business, and recorded restructuring and other charges of $353, including a restructuring charge of $294 to close and/or downsize stores, distribution centers and administrative functions. This worldwide plan included the closing of 50 toy stores in the International division, predominately in continental Europe, and 9 in the United States and the closing of 31 Kids“R”Us stores and conversion of 28 nearby U.S. toy stores into Toys“R”Us/Kids“R”Us combo stores. Other charges consisted primarily of changes in accounting estimates and provisions for legal settlements of $59 recorded in selling, general and administrative expenses. The remaining reserves related to these charges were $31 at the end of 2001.

In the fourth quarter of 2001, the company determined that $11 of unused reserves for the closing of under-performing stores in central Europe would no longer be needed and reversed these reserves. In the third quarter of 2001, the company completed the satisfaction of certain legal obligations and reversed the remaining unused reserve of $5 million. In the third quarter of 2000, the company determined that an $11 million reserve would no longer be needed and reversed this reserve. These remaining reserves, primarily for long-term lease commitments, will be utilized during 2002 and thereafter.