Segment Information

6 Months Ended

Oct. 01, 2011

Segment Information [Abstract]

Segment Information

16.   Segment Information

The Company has three reportable segments based on its business activities and organization: Wholesale, Retail and Licensing. Such segments offer a variety of products through different channels of distribution. The Wholesale segment consists of women’s, men’s and children’s apparel, accessories, home furnishings, and related products which are sold to major department stores, specialty stores, golf and pro shops and the Company’s owned and licensed retail stores in the U.S. and overseas. The Retail segment consists of the Company’s worldwide retail operations, which sell products through its full-price and factory stores, its concessions-based shop-within-shops, and its e-commerce websites. The stores, concessions-based shop-within-shops and websites sell products purchased from the Company’s licensees, suppliers and Wholesale segment. The Licensing segment generates revenues from royalties earned on the sale of the Company’s apparel, home and other products internationally and domestically through licensing alliances. The licensing agreements grant the licensees rights to use the Company’s various trademarks in connection with the manufacture and sale of designated products in specified geographical areas for specified periods.

The accounting policies of the Company’s segments are consistent with those described in Notes 2 and 3 to the Company’s consolidated financial statements included in the Fiscal 2011 10-K. Sales and transfers between segments generally are recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Each segment’s performance is evaluated based upon operating income before restructuring charges and certain other one-time items, such as legal charges, if any. Corporate overhead expenses (exclusive of certain expenses for senior management, overall branding-related expenses and certain other corporate-related expenses) are allocated to the segments based upon specific usage or other allocation methods.

Net revenues and operating income for each of the Company’s segments are as follows:

	Three Months Ended				Six Months Ended
	October 1,		October 2,		October 1,		October 2,
	2011		2010		2011		2010
	(millions)
Net revenues:
Wholesale	$	995.5	$	826.8	$	1,668.5	$	1,349.8
Retail		861.3		658.8		1,674.8		1,251.3
Licensing		47.8		46.5		87.7		84.3
Total net revenues	$	1,904.6	$	1,532.1	$	3,431.0	$	2,685.4

	Three Months Ended						Six Months Ended
	October 1,			October 2,			October 1,			October 2,
	2011			2010			2011			2010
	(millions)
Operating income:
Wholesale	$	246.5		$	238.0		$	397.6		$	345.6
Retail		146.0			105.4			319.1			209.1
Licensing		29.7			27.4			54.9			51.1
		422.2			370.8			771.6			605.8
Unallocated corporate expenses		(71.4	)		(63.4	)		(138.7	)		(124.2	)
Total operating income	$	350.8		$	307.4		$	632.9		$	481.6

Depreciation and amortization expense for each segment is as follows:

	Three Months Ended				Six Months Ended
	October 1,		October 2,		October 1,		October 2,
	2011		2010		2011		2010
	(millions)
Depreciation and amortization:
Wholesale	$	16.3	$	13.6	$	31.8	$	26.1
Retail		28.2		21.1		56.5		42.7
Licensing		0.2		0.3		0.6		0.6
Unallocated corporate expenses		11.3		11.4		22.5		23.0
Total depreciation and amortization	$	56.0	$	46.4	$	111.4	$	92.4