SEGMENT REPORTING (Tables)

6 Months Ended

Jul. 02, 2016

SEGMENT REPORTING

Schedule of segment reporting information, by segment

				Adjusted
Dollars in thousands	Net Sales		% to Total	EBITDA		% of Sales
Six Months Ended July 2, 2016 (26 Weeks)
KATE SPADE North America	$	490,055	82.5%	$	71,980	14.7	%
KATE SPADE International		92,300	15.5%		12,590	13.6	%
Adelington Design Group		11,758	2.0%		3,107	26.4	%
Totals	$	594,113	100.0%
Six Months Ended July 4, 2015 (26 Weeks)
KATE SPADE North America	$	431,316	80.4%	$	55,853	12.9	%
KATE SPADE International		93,186	17.4%		8,422	9.0	%
Adelington Design Group		11,932	2.2%		1,601	13.4	%
Totals	$	536,434	100.0%
Three Months Ended July 2, 2016 (13 Weeks)
KATE SPADE North America	$	271,378	84.9%	$	47,393	17.5	%
KATE SPADE International		43,417	13.6%		4,053	9.3	%
Adelington Design Group		4,896	1.5%		922	18.8	%
Totals	$	319,691	100.0%
Three Months Ended July 4, 2015 (13 Weeks)
KATE SPADE North America	$	235,730	83.9%	$	37,781	16.0	%
KATE SPADE International		40,718	14.4%		3,433	8.4	%
Adelington Design Group		4,670	1.7%		(77)	(1.6)	%
Totals	$	281,118	100.0%

Schedule of reconciliation to Income (Loss) from Continuing Operations

	Six Months Ended				Three Months Ended
	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
In thousands	(26 Weeks)		(26 Weeks)		(13 Weeks)		(13 Weeks)
Reportable Segments Adjusted EBITDA:
KATE SPADE North America	$	71,980	$	55,853	$	47,393	$	37,781
KATE SPADE International (a)		12,590		8,422		4,053		3,433
Adelington Design Group		3,107		1,601		922		(77)
Total Reportable Segments Adjusted EBITDA		87,677		65,876		52,368		41,137
Depreciation and amortization, net (b)		(22,157)		(22,418)		(11,436)		(10,872)
Charges due to streamlining initiatives (c), brand-exiting activities, acquisition related costs and loss on asset disposals and impairments, net		(844)		(26,953)		(638)		(7,899)
Joint venture contract termination fee		—		(26,000)		—		—
Share-based compensation (d)		(16,156)		(12,756)		(8,246)		(6,753)
Adjusted equity loss included in Reportable Segments Adjusted EBITDA (e)		3,248		2,671		2,007		1,933
Operating Income (Loss)		51,768		(19,580)		34,055		17,546
Other expense, net (a)		(3,340)		(3,218)		(3,093)		(1,823)
Loss on settlement of note receivable		—		(9,873)		—		—
Interest expense, net		(9,933)		(8,708)		(4,937)		(5,344)
Provision for income taxes		3,020		2,931		1,466		1,130
Discontinued operations, net of income taxes		2,934		(2,370)		2,214		(708)
Net Income (Loss)	$	38,409	$	(46,680)	$	26,773	$	8,541

^(a) Amounts include equity in the adjusted losses of the Company’s equity method investees of $3.2 million and $2.7 million for the six months ended July 2, 2016 and July 4, 2015, respectively and $2.0 million and $1.9 million for the three months ended July 2, 2016 and July 4, 2015, respectively.

^(b) Excludes amortization included in Interest expense, net.

^(c) See Note 8 – Streamlining Initiatives for a discussion of streamlining charges.

^(d) Includes share-based compensation expense of $0.2 million in the six months ended July 4, 2015, that was classified as restructuring.

^(e) Excludes $0.1 million of joint venture restructuring expense included in equity losses in the six and three months ended July 4, 2015.

Schedule of geographic data

Dollars in thousands	Net Sales		% to Total
Six Months Ended July 2, 2016 (26 Weeks)
Domestic	$	482,365	81.2	%
International		111,748	18.8	%
Total	$	594,113	100.0	%
Six Months Ended July 4, 2015 (26 Weeks)
Domestic	$	427,181	79.6	%
International		109,253	20.4	%
Total	$	536,434	100.0	%
Three Months Ended July 2, 2016 (13 Weeks)
Domestic	$	264,175	82.6	%
International		55,516	17.4	%
Total	$	319,691	100.0	%
Three Months Ended July 4, 2015 (13 Weeks)
Domestic	$	229,597	81.7	%
International		51,521	18.3	%
Total	$	281,118	100.0	%