SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 28, 2013

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets

September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations				Fifth & Pacific Companies, Inc.
Assets
Current Assets:
Cash and cash equivalents		$	--			$	2,770		$	16,124		$	(12,062	)		$	6,832
Accounts receivable – trade, net		--				107,609			14,224			--				121,833
Inventories, net		147				279,088			31,403			--				310,638
Deferred income taxes		--				--			806			--				806
Intercompany receivable		--				10,447			--			(10,447		)		--
Other current assets		15,442				34,476			8,928			--				58,846
Total current assets		15,589				434,390			71,485			(22,509		)		498,955
Property and Equipment, Net		26,386				187,993			30,092			--				244,471
Goodwill		--				--			52,679			--				52,679
Intangibles, Net		174				112,225			10,203			--				122,602
Deferred Income Taxes		--				--			64			--				64
Investments in Consolidated Subsidiaries		412,873				120,165			--			(533,038		)		--
Intercompany Receivable		1,895				40,754			--			(42,649		)		--
Other Assets		13,785				916			23,540			--				38,241
Total Assets		$	470,702			$	896,443		$	188,063		$	(598,196	)		$	957,012
Liabilities and Stockholders’ (Deficit) Equity
Current Liabilities:
Short-term borrowings		$	135,456			$	--		$	1,984		$	--			$	137,440
Accounts payable		35,288				187,176			7,352			(12,062		)		217,754
Intercompany payable		8,221				--			56,535			(64,756		)		--
Accrued expenses		72,008				127,907			9,455			--				209,370
Income taxes payable		--				--			1,326			--				1,326
Total current liabilities		250,973				315,083			76,652			(76,818		)		565,890
Long-Term Debt		391,279				--			--			--				391,279
Intercompany Payable		--				--			57,116			(57,116		)		--
Other Non-Current Liabilities		49,165				138,366			11,347			--				198,878
Deferred Income Taxes		--				18,201			3,479			--				21,680
Commitments and Contingencies
Total Stockholders’ (Deficit) Equity		(220,715		)		424,793			39,469			(464,262		)		(220,715		)
Total Liabilities and Stockholders’ (Deficit) Equity		$	470,702			$	896,443		$	188,063		$	(598,196	)		$	957,012

Condensed Consolidating Balance Sheets

December 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations				Fifth & Pacific Companies, Inc.
Assets
Current Assets:
Cash and cash equivalents		$	30,840			$	4,827		$	26,074		$	(2,339	)		$	59,402
Accounts receivable – trade, net		3,155				110,584			13,605			(5,753		)		121,591
Inventories, net		340				188,853			31,345			--				220,538
Deferred income taxes		180				--			1,079			--				1,259
Intercompany receivable		--				3,889			--			(3,889		)		--
Other current assets		15,903				28,986			4,577			--				49,466
Total current assets		50,418				337,139			76,680			(11,981		)		452,256
Property and Equipment, Net		7,331				186,694			25,938			--				219,963
Goodwill		--				--			60,223			--				60,223
Intangibles, Net		217				116,044			15,089			--				131,350
Deferred Income Taxes		--				--			65			--				65
Investments in Consolidated Subsidiaries		357,656				122,568			--			(480,224		)		--
Intercompany Receivable		2,084				46,348			--			(48,432		)		--
Other Assets		10,552				939			27,175			--				38,666
Total Assets		$	428,258			$	809,732		$	205,170		$	(540,637	)		$	902,523
Liabilities and Stockholders’ (Deficit) Equity
Current Liabilities:
Short-term borrowings		$	4,345			$	--		$	--		$	--			$	4,345
Convertible Senior Notes		18,287				--			--			--				18,287
Accounts payable		16,734				146,707			19,420			(8,156		)		174,705
Intercompany payable		7,643				--			52,603			(60,246		)		--
Accrued expenses		77,273				124,918			15,273			--				217,464
Income taxes payable		--				--			932			--				932
Deferred income taxes		--				--			116			--				116
Total current liabilities		124,282				271,625			88,344			(68,402		)		415,849
Long-Term Debt		383,662				--			--			--				383,662
Intercompany Payable		--				--			63,386			(63,386		)		--
Other Non-Current Liabilities		47,244				148,091			13,581			--				208,916
Deferred Income Taxes		--				15,664			5,362			--				21,026
Commitments and Contingencies
Total Stockholders’ (Deficit) Equity		(126,930		)		374,352			34,497			(408,849		)		(126,930		)
Total Liabilities and Stockholders’ (Deficit) Equity		$	428,258			$	809,732		$	205,170		$	(540,637	)		$	902,523

Condensed Consolidating Balance Sheets

September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries			Non-Guarantor Subsidiaries				Eliminations				Fifth & Pacific Companies, Inc.
Assets
Current Assets:
Cash and cash equivalents		$	18,035			$	2,086		$	11,170			$	(70	)		$	31,221
Accounts receivable – trade, net		3,704				113,814			9,137				--				126,655
Inventories, net		807				232,406			12,365				--				245,578
Deferred income taxes		--				--			170				--				170
Intercompany receivable		--				3,953			--				(3,953		)		--
Other current assets		17,879				22,839			7,199				--				47,917
Total current assets		40,425				375,098			40,041				(4,023		)		451,541
Property and Equipment, Net		13,916				191,106			19,565				--				224,587
Goodwill		--				--			1,574				--				1,574
Intangibles, Net		--				115,674			949				--				116,623
Investments in Consolidated Subsidiaries		323,404				27,983			--				(351,387		)		--
Intercompany Receivable		2,106				--			--				(2,106		)		--
Other Assets		11,755				18,317			18,955				--				49,027
Total Assets		$	391,606			$	728,178		$	81,084			$	(357,516	)		$	843,352
Liabilities and Stockholders’ (Deficit) Equity
Current Liabilities:
Short-term borrowings		$	4,681			$	--		$	--			$	--			$	4,681
Convertible Senior Notes		28,687				--			--				--				28,687
Accounts payable		10,127				152,018			6,774				(70		)		168,849
Intercompany payable		9,457				--			99,270				(108,727		)		--
Accrued expenses		95,339				113,847			5,815				--				215,001
Income taxes payable		--				--			794				--				794
Deferred income taxes		--				--			16				--				16
Total current liabilities		148,291				265,865			112,669				(108,797		)		418,028
Long-Term Debt		384,841				--			--				--				384,841
Intercompany Payable		--				--			17,262				(17,262		)		--
Other Non-Current Liabilities		50,672				153,849			12,436				--				216,957
Deferred Income Taxes		--				15,260			464				--				15,724
Commitments and Contingencies
Total Stockholders’ (Deficit) Equity		(192,198		)		293,204			(61,747		)		(231,457		)		(192,198		)
Total Liabilities and Stockholders’ (Deficit) Equity		$	391,606			$	728,178		$	81,084			$	(357,516	)		$	843,352

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations

Nine Months Ended September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net Sales		$	6,599			$	1,044,766			$	133,002			$	--		$	1,184,367
Cost of goods sold		4,510				463,283				53,564				--			521,357
Gross Profit		2,089				581,483				79,438				--			663,010
Selling, general & administrative expenses		3,995				611,658				85,636				--			701,289
Impairment of intangible asset		--				3,300				--				--			3,300
Operating Loss		(1,906		)		(33,475		)		(6,198		)		--			(41,579		)
Other (expense) income, net		(1,707		)		70				175				--			(1,462		)
Impairment of cost investment		--				--				(6,109		)		--			(6,109		)
Equity in (losses) earnings of consolidated subsidiaries – continuing operations		(50,191		)		(46,118		)		--				96,309			--
Loss on extinguishment of debt		(1,707		)		--				--				--			(1,707		)
Interest (expense) income, net		(35,270		)		1,300				(2,092		)		--			(36,062		)
(Loss) Income Before Provision (Benefit) for Income Taxes		(90,781		)		(78,223		)		(14,224		)		96,309			(86,919		)
Provision (benefit) for income taxes		--				5,417				(1,555		)		--			3,862
(Loss) Income from Continuing Operations		(90,781		)		(83,640		)		(12,669		)		96,309			(90,781		)
Discontinued operations, net of income taxes		(3,844		)		(856		)		(16,696		)		--			(21,396		)
Equity in (losses) earnings of consolidated subsidiaries – discontinued operations, net of income taxes		(17,552		)		(19,650		)		--				37,202			--
Net (Loss) Income		$	(112,177	)		$	(104,146	)		$	(29,365	)		$	133,511		$	(112,177	)

Condensed Consolidating Statements of Operations

Nine Months Ended September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net Sales		$	18,401			$	954,520			$	45,640			$	--		$	1,018,561
Cost of goods sold		12,379				412,685				20,556				--			445,620
Gross Profit		6,022				541,835				25,084				--			572,941
Selling, general & administrative expenses		2,971				605,084				35,652				--			643,707
Operating Income (Loss)		3,051				(63,249		)		(10,568		)		--			(70,766		)
Other income, net		943				117				419				--			1,479
Equity in (losses) earnings of consolidated subsidiaries – continuing operations		(78,616		)		(7,865		)		--				86,481			--
Loss on extinguishment of debt		(8,669		)		--				--				--			(8,669		)
Interest expense, net		(37,362		)		(72		)		(402		)		--			(37,836		)
(Loss) Income Before Provision for Income Taxes		(120,653		)		(71,069		)		(10,551		)		86,481			(115,792		)
Provision for income taxes		21				4,167				694				--			4,882
(Loss) Income from Continuing Operations		(120,674		)		(75,236		)		(11,245		)		86,481			(120,674		)
Discontinued operations, net of income taxes		705				(6,093		)		(5,477		)		--			(10,865		)
Equity in (losses) earnings of consolidated subsidiaries – discontinued operations, net of income taxes		(11,570		)		2,737				--				8,833			--
Net (Loss) Income		$	(131,539	)		$	(78,592	)		$	(16,722	)		$	95,314		$	(131,539	)

Condensed Consolidating Statements of Operations

Three Months Ended September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net Sales		$	201			$	380,598			$	49,805			$	--		$	430,604
Cost of goods sold		127				167,408				19,925				--			187,460
Gross Profit		74				213,190				29,880				--			243,144
Selling, general & administrative expenses		1,243				210,795				30,129				--			242,167
Impairment of intangible asset		--				3,300				--				--			3,300
Operating Loss		(1,169		)		(905		)		(249		)		--			(2,323		)
Other (expense) income, net		(85		)		62				1,384				--			1,361
Equity in (losses) earnings of consolidated subsidiaries – continuing operations		(1,110		)		(28,058		)		--				29,168			--
Loss on extinguishment of debt		(599		)		--				--				--			(599		)
Interest (expense) income, net		(11,938		)		470				(619		)		--			(12,087		)
(Loss) Income Before Provision (Benefit) for Income Taxes		(14,901		)		(28,431		)		516				29,168			(13,648		)
Provision (benefit) for income taxes		--				2,371				(1,118		)		--			1,253
(Loss) Income from Continuing Operations		(14,901		)		(30,802		)		1,634				29,168			(14,901		)
Discontinued operations, net of income taxes		(759		)		(463		)		(743		)		--			(1,965		)
Equity in (losses) earnings of consolidated subsidiaries – discontinued operations, net of income taxes		(1,206		)		333				--				873			--
Net (Loss) Income		$	(16,866	)		$	(30,932	)		$	891			$	30,041		$	(16,866	)

Condensed Consolidating Statements of Operations

Three Months Ended September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Fifth & Pacific Companies, Inc.
Net Sales		$	8,423			$	335,724			$	20,409			$	--			$	364,556
Cost of goods sold		4,818				147,005				9,616				--				161,439
Gross Profit		3,605				188,719				10,793				--				203,117
Selling, general & administrative expenses		1,088				191,215				11,095				--				203,398
Operating Income (Loss)		2,517				(2,496		)		(302		)		--				(281		)
Other expense, net		(126		)		(433		)		(479		)		--				(1,038		)
Equity in (losses) earnings of consolidated subsidiaries – continuing operations		(5,674		)		(2,458		)		--				8,132				--
Loss on extinguishment of debt		(3,023		)		--				--				--				(3,023		)
Interest (expense) income, net		(13,132		)		33				(129		)		--				(13,228		)
(Loss) Income Before (Benefit) Provision for Income Taxes		(19,438		)		(5,354		)		(910		)		8,132				(17,570		)
(Benefit) provision for income taxes		(45		)		1,627				241				--				1,823
(Loss) Income from Continuing Operations		(19,393		)		(6,981		)		(1,151		)		8,132				(19,393		)
Discontinued operations, net of income taxes		972				56				(436		)		--				592
Equity in (losses) earnings of consolidated subsidiaries – discontinued operations, net of income taxes		(380		)		2,926				--				(2,546		)		--
Net (Loss) Income		$	(18,801	)		$	(3,999	)		$	(1,587	)		$	5,586			$	(18,801	)

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Loss

Nine Months Ended September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net (Loss) Income		$	(112,177	)		$	(104,146	)		$	(29,365	)		$	133,511		$	(112,177	)
Other Comprehensive (Loss) Income, Net of Income Taxes		(7,127		)		(7,064		)		(6,832		)		13,896			(7,127		)
Comprehensive (Loss) Income		$	(119,304	)		$	(111,210	)		$	(36,197	)		$	147,407		$	(119,304	)

Condensed Consolidating Statements of Comprehensive Loss

Nine Months Ended September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net (Loss) Income		$	(131,539	)		$	(78,592	)		$	(16,722	)		$	95,314		$	(131,539	)
Other Comprehensive Income (Loss), Net of Income Taxes		70				(367		)		(47		)		414			70
Comprehensive (Loss) Income		$	(131,469	)		$	(78,959	)		$	(16,769	)		$	95,728		$	(131,469	)

Condensed Consolidating Statements of Comprehensive Loss

Three Months Ended September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations			Fifth & Pacific Companies, Inc.
Net (Loss) Income		$	(16,866	)		$	(30,932	)		$	891			$	30,041		$	(16,866	)
Other Comprehensive Income (Loss), Net of Income Taxes		(212		)		(20		)		(227		)		247			(212		)
Comprehensive (Loss) Income		$	(17,078	)		$	(30,952	)		$	664			$	30,288		$	(17,078	)

Condensed Consolidating Statements of Comprehensive Loss

Three Months Ended September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Fifth & Pacific Companies, Inc.
Net (Loss) Income		$	(18,801	)		$	(3,999	)		$	(1,587	)		$	5,586			$	(18,801	)
Other Comprehensive Income (Loss), Net of Income Taxes		133				315				338				(653		)		133
Comprehensive (Loss) Income		$	(18,668	)		$	(3,684	)		$	(1,249	)		$	4,933			$	(18,668	)

Schedule of condensed consolidating statements of cash flow

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 28, 2013

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non- Guarantor Subsidiaries				Eliminations				Fifth & Pacific Companies, Inc.
Net cash used in operating activities		$	(58,460	)		$	(49,517	)		$	(4,474	)		$	(9,723	)		$	(122,174	)
Cash Flows from Investing Activities:
Proceeds from sale of property and equipment		20,264				--				--				--				20,264
Purchases of property and equipment		(5,757		)		(62,644		)		(9,386		)		--				(77,787		)
Payments for in-store merchandise shops		--				(1,822		)		(657		)		--				(2,479		)
Investments in and advances to equity investees		--				--				(5,500		)		--				(5,500		)
Net proceeds from disposition		--				--				4,000				--				4,000
(Increase) decrease in investments in and advances to consolidated subsidiaries		(105,406		)		117,930				(12,524		)		--				--
Other, net		(303		)		334				70				--				101
Net cash used in investing activities of discontinued operations		--				--				(2,234		)		--				(2,234		)
Net cash (used in) provided by investing activities		(91,202		)		53,798				(26,231		)		--				(63,635		)
Cash Flows from Financing Activities:
Proceeds from borrowings under revolving credit agreement		493,527				--				2,169				--				495,696
Repayment of borrowings under revolving credit agreement		(359,277		)		--				(266		)		--				(359,543		)
Increase (decrease) in intercompany loans		767				(964		)		197				--				--
Proceeds from capital lease		--				8,673				--				--				8,673
Principal payments under capital lease obligations		(3,747		)		--				--				--				(3,747		)
Proceeds from exercise of stock options		2,326				--				--				--				2,326
Payment of deferred financing fees		(5,033		)		--				(238		)		--				(5,271		)
Net cash provided by financing activities		128,563				7,709				1,862				--				138,134
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(9,741		)		(14,047		)		18,893				--				(4,895		)
Net Change in Cash and Cash Equivalents		(30,840		)		(2,057		)		(9,950		)		(9,723		)		(52,570		)
Cash and Cash Equivalents at Beginning of Period		30,840				4,827				26,074				(2,339		)		59,402
Cash and Cash Equivalents at End of Period		$	--			$	2,770			$	16,124			$	(12,062	)		$	6,832

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 29, 2012

(In thousands)

	Parent Company Issuer				Guarantor Subsidiaries				Non- Guarantor Subsidiaries				Eliminations				Fifth & Pacific Companies, Inc.
Net cash (used in) provided by operating activities		$	(8,735	)		$	(51,286	)		$	(27,355	)		$	95			$	(87,281	)
Cash Flows from Investing Activities:
Purchases of property and equipment		(3,080		)		(45,042		)		(7,058		)		--				(55,180		)
Payments for in-store merchandise shops		--				(1,477		)		(290		)		--				(1,767		)
Investments in and advances to equity investees		--				--				(5,000		)		--				(5,000		)
(Increase) decrease in investments in and advances to consolidated subsidiaries		(96,691		)		82,501				14,190				--				--
Other, net		(483		)		557				162				--				236
Net cash (used in) provided by investing activities		(100,254		)		36,539				2,004				--				(61,711		)
Cash Flows from Financing Activities:
Proceeds from borrowings under revolving credit agreement		113,389				--				--				--				113,389
Repayment of borrowings under revolving credit agreement		(113,389		)		--				--				--				(113,389		)
Proceeds from issuance of Senior Secured Notes		164,540				--				--				--				164,540
(Decrease) increase in intercompany loans		(17,766		)		(3,331		)		21,097				--				--
Repayment of Euro Notes		(158,027		)		--				--				--				(158,027		)
Principal payments under capital lease obligations		(3,331		)		--				--				--				(3,331		)
Proceeds from exercise of stock options		6,049				--				--				--				6,049
Payment of deferred financing fees		(6,064		)		--				--				--				(6,064		)
Net cash (used in) provided by financing activities		(14,599		)		(3,331		)		21,097				--				3,167
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(3,160		)		(138		)		408				--				(2,890		)
Net Change in Cash and Cash Equivalents		(126,748		)		(18,216		)		(3,846		)		95				(148,715		)
Cash and Cash Equivalents at Beginning of Period		144,783				20,302				15,016				(165		)		179,936
Cash and Cash Equivalents at End of Period		$	18,035			$	2,086			$	11,170			$	(70	)		$	31,221