SEGMENT REPORTING (Tables)

9 Months Ended

Oct. 01, 2016

SEGMENT REPORTING

Schedule of segment reporting information, by segment

				Adjusted
Dollars in thousands	Net Sales		% to Total	EBITDA		% of Sales
Nine Months Ended October 1, 2016 (39 Weeks)
KATE SPADE North America	$	749,789	82.4%	$	118,938	15.9	%
KATE SPADE International		143,258	15.7%		17,877	12.5	%
Adelington Design Group		17,594	1.9%		4,196	23.8	%
Totals	$	910,641	100.0%
Nine Months Ended October 3, 2015 (39 Weeks)
KATE SPADE North America	$	659,809	81.1%	$	86,566	13.1	%
KATE SPADE International		136,056	16.7%		13,215	9.7	%
Adelington Design Group		17,897	2.2%		2,728	15.2	%
Totals	$	813,762	100.0%

				Adjusted
Dollars in thousands	Net Sales		% to Total	EBITDA		% of Sales
Three Months Ended October 1, 2016 (13 Weeks)
KATE SPADE North America	$	259,734	82.1%	$	46,958	18.1	%
KATE SPADE International		50,958	16.1%		5,287	10.4	%
Adelington Design Group		5,836	1.8%		1,089	18.7	%
Totals	$	316,528	100.0%
Three Months Ended October 3, 2015 (13 Weeks)
KATE SPADE North America	$	228,493	82.4%	$	30,713	13.4	%
KATE SPADE International		42,870	15.5%		4,793	11.2	%
Adelington Design Group		5,965	2.1%		1,127	18.9	%
Totals	$	277,328	100.0%

Schedule of reconciliation to Income (Loss) from Continuing Operations

	Nine Months Ended				Three Months Ended
	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
In thousands	(39 Weeks)		(39 Weeks)		(13 Weeks)		(13 Weeks)
Reportable Segments Adjusted EBITDA:
KATE SPADE North America	$	118,938	$	86,566	$	46,958	$	30,713
KATE SPADE International (a)		17,877		13,215		5,287		4,793
Adelington Design Group		4,196		2,728		1,089		1,127
Total Reportable Segments Adjusted EBITDA		141,011		102,509		53,334		36,633
Depreciation and amortization, net (b)		(33,844)		(34,094)		(11,687)		(11,676)
Charges due to streamlining initiatives (c),  brand-exiting activities, acquisition related costs and loss on asset disposals and impairments, net		(2,043)		(33,824)		(1,199)		(6,871)
Joint venture contract termination fee		—		(26,000)		—		—
Share-based compensation (d)		(22,228)		(19,440)		(6,072)		(6,684)
Adjusted equity loss included in Reportable Segments Adjusted EBITDA (e)		5,974		3,586		2,726		915
Operating Income (Loss)		88,870		(7,263)		37,102		12,317
Other expense, net (a)		(6,075)		(4,778)		(2,735)		(1,560)
Loss on settlement of note receivable		—		(9,873)		—		—
Interest expense, net		(14,853)		(13,982)		(4,920)		(5,274)
Provision (benefit) for income taxes		2,964		3,904		(56)		973
Discontinued operations, net of income taxes		3,057		(4,577)		123		(2,207)
Net Income (Loss)	$	68,035	$	(44,377)	$	29,626	$	2,303

^(a) Amounts include equity in the adjusted losses of the Company’s equity method investees of $6.0 million and $3.6 million for the nine months ended October 1, 2016 and October 3, 2015, respectively and $2.7 million and $0.9 million for the three months ended October 1, 2016 and October 3, 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 $0.3 million and $0.1 million for the nine and three months ended October 3, 2015, respectively, that was classified as restructuring.

^(e) Excludes $0.5 million and $0.4 million of joint venture restructuring expense included in equity losses for the nine and three months ended October 3, 2015, respectively.

Schedule of geographic data

Dollars in thousands	Net Sales		% to Total
Nine Months Ended October 1, 2016 (39 Weeks)
Domestic	$	732,688	80.5	%
International		177,953	19.5	%
Total	$	910,641	100.0	%
Nine Months Ended October 3, 2015 (39 Weeks)
Domestic	$	650,239	79.9	%
International		163,523	20.1	%
Total	$	813,762	100.0	%
Three Months Ended October 1, 2016 (13 Weeks)
Domestic	$	250,323	79.1	%
International		66,205	20.9	%
Total	$	316,528	100.0	%
Three Months Ended October 3, 2015 (13 Weeks)
Domestic	$	223,058	80.4	%
International		54,270	19.6	%
Total	$	277,328	100.0	%