SEGMENT DATA

The Company manages its operations through its operating divisions, which are aggregated into seven reportable segments: (i) Heritage Brand Wholesale Dress Furnishings; (ii) Heritage Brand Wholesale Sportswear; (iii) Heritage Brand Retail; (iv) Calvin Klein Licensing; (v) Tommy Hilfiger North America; (vi) Tommy Hilfiger International; and (vii) Other (Calvin Klein Apparel).

Heritage Brand Wholesale Dress Furnishings segment - This segment consists of the Company’s heritage brand wholesale dress furnishings division. This segment derives revenue primarily from marketing both dress shirts and neckwear in North America under the brand names Van Heusen, ARROW, IZOD, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY and MICHAEL Michael Kors, as well as dress shirts under the brand names Geoffrey Beene and CHAPS. The Company markets these dress shirt and neckwear brands, as well as certain other owned and licensed brands and various private label brands, primarily to department, mid-tier department and specialty stores.

Heritage Brand Wholesale Sportswear segment - The Company aggregates the results of its heritage brand wholesale sportswear divisions into the Heritage Brand Wholesale Sportswear segment. This segment derives revenue primarily from marketing in North America men’s sportswear under the brand names Van Heusen, IZOD and ARROW to department, mid-tier department and specialty stores. This segment also derives revenue from marketing women’s sportswear under the brand name IZOD. The company will be exiting the Izod women’s wholesale sportswear business in the third quarter of 2012. Through the second quarter of 2012, this segment also derived revenue from marketing men’s sportswear under the brand name Timberland.

Heritage Brand Retail segment - The Company aggregates the results of its three heritage brand retail divisions into the Heritage Brand Retail segment. This segment derives revenue principally from operating retail stores, primarily in outlet centers in North America, which sell apparel, footwear, accessories and related products under the brand names Van Heusen, IZOD, Bass and G.H. Bass & Co.

Calvin Klein Licensing segment - The Company aggregates the results of its Calvin Klein licensing and advertising division into the Calvin Klein Licensing segment. This segment derives revenue principally from licensing and similar arrangements worldwide relating to the use by third parties of the brand names Calvin Klein Collection, ck Calvin Klein and Calvin Klein for a broad array of products and retail services. This segment also derives revenue from the Company’s Calvin Klein Collection wholesale business and from selling Calvin Klein Collection branded high-end collection apparel and accessories through the Company’s own full price Calvin Klein Collection retail store located in New York City, both of which the Company operates directly in support of the global licensing business.

Tommy Hilfiger North America segment - The Company aggregates the results of its Tommy Hilfiger wholesale and retail divisions in North America into the Tommy Hilfiger North America segment. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale in North America, primarily to department stores; and (ii) operating retail stores and an e-commerce website in and for North America, which sell Tommy Hilfiger branded apparel, accessories and related products.

Tommy Hilfiger International segment - The Company aggregates the results of its Tommy Hilfiger wholesale and retail divisions that operate outside of North America and its proportionate share of the net income or loss of its investments in unconsolidated affiliates into the Tommy Hilfiger International segment. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale principally in Europe, primarily to department and specialty stores and franchise operators of Tommy Hilfiger stores, and through distributors and licensees; and (ii) operating retail stores in Europe and Japan, as well as operating an international e-commerce site, which sell Tommy Hilfiger branded apparel, accessories and related products.

Other (Calvin Klein Apparel) segment - The Company aggregates the results of its Calvin Klein apparel divisions into the Other (Calvin Klein Apparel) segment. This segment derives revenue principally in North America from the Company’s marketing at wholesale of apparel and related products under the brand name Calvin Klein, primarily to department, mid-tier department and specialty stores, and at retail through the Company’s e-commerce website and Calvin Klein retail stores, which are primarily located in outlet centers.

The following tables present summarized information by segment:



	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	7/29/12		7/31/11		7/29/12		7/31/11
Revenue – Heritage Brand Wholesale Dress Furnishings
Net sales	$	105,567	$	123,771	$	225,453	$	258,460
Royalty revenue	1,315		1,468		2,832		2,953
Advertising and other revenue	830		414		1,537		818
Total	107,712		125,653		229,822		262,231

Revenue – Heritage Brand Wholesale Sportswear
Net sales	77,933		96,107		212,165		231,561
Royalty revenue	2,544		2,707		5,007		5,148
Advertising and other revenue	359		475		820		881
Total	80,836		99,289		217,992		237,590

Revenue – Heritage Brand Retail
Net sales	173,473		175,212		307,655		306,889
Royalty revenue	1,229		1,239		2,432		2,537
Advertising and other revenue	236		277		507		518
Total	174,938		176,728		310,594		309,944

Revenue – Calvin Klein Licensing
Net sales	8,979		7,993		17,223		15,435
Royalty revenue	59,246		57,555		124,719		122,439
Advertising and other revenue	29,315		25,441		54,242		52,330
Total	97,540		90,989		196,184		190,204

Revenue – Tommy Hilfiger North America
Net sales	324,482		293,760		623,462		561,397
Royalty revenue	5,101		4,260		9,625		7,121
Advertising and other revenue	2,285		2,005		3,972		3,291
Total	331,868		300,025		637,059		571,809

Revenue – Tommy Hilfiger International
Net sales	375,495		381,976		829,345		815,632
Royalty revenue	13,078		9,790		23,358		18,813
Advertising and other revenue	1,465		1,083		2,509		2,063
Total	390,038		392,849		855,212		836,508

Revenue – Other (Calvin Klein Apparel)
Net sales	153,691		148,911		317,166		295,342
Total	153,691		148,911		317,166		295,342

Total Revenue
Net sales	1,219,620		1,227,730		2,532,469		2,484,716
Royalty revenue	82,513		77,019		167,973		159,011
Advertising and other revenue	34,490		29,695		63,587		59,901
Total	$	1,336,623	$	1,334,444	$	2,764,029	$	2,703,628



	Thirteen Weeks Ended										Twenty-Six Weeks Ended
	7/29/12					7/31/11			⁽⁸	⁾	7/29/12					7/31/11			⁽⁸	⁾
Income before interest and taxes – Heritage Brand Wholesale Dress Furnishings	$	9,640				$	14,284				$	18,556				$	34,935

Income (loss) before interest and taxes – Heritage Brand Wholesale Sportswear	4,203					(5,204		)	⁽⁴	⁾	15,573					9,067			⁽⁴	⁾

Income before interest and taxes – Heritage Brand Retail	9,358					15,188					6,814					19,689

Income before interest and taxes – Calvin Klein Licensing	45,314					43,941					86,058					78,591

Income before interest and taxes – Tommy Hilfiger North America	52,693					31,426			⁽⁵	⁾	81,627			⁽³	⁾	19,215			⁽⁶	⁾

Income before interest and taxes – Tommy Hilfiger International	41,113			⁽²	⁾	37,673					114,593			⁽³	⁾	116,655			⁽⁶	⁾

Income before interest and taxes – Other (Calvin Klein Apparel)	14,913					22,114					32,511					43,057

Loss before interest and taxes – Corporate⁽¹⁾	(27,576		)	⁽²	⁾	(25,943		)	⁽⁵	⁾	(53,826		)	⁽³	⁾	(67,286		)	^{(6) (7)}

Income before interest and taxes	$	149,658				$	133,479				$	301,906				$	253,923


⁽¹⁾	Includes corporate expenses not allocated to any reportable segments. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure and actuarial gains and losses from the Company’s defined benefit pension plans.


⁽²⁾	Income (loss) before interest and taxes for the thirteen weeks ended July 29, 2012 includes costs of $4,541 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $3,497 in Tommy Hilfiger International and $1,044 in corporate expenses not allocated to any reportable segments.

⁽³⁾

Income (loss) before interest and taxes for the twenty-six weeks ended July 29, 2012 includes costs of $7,857 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $379 in Tommy Hilfiger North America; $3,497 in Tommy Hilfiger International; and $3,981 in corporate expenses not allocated to any reportable segments.


⁽⁴⁾	(Loss) income before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2011 includes costs of $6,650 related to the Company’s negotiated early termination of its license to market sportswear under the Timberland brand.


⁽⁵⁾	Income (loss) before interest and taxes for the thirteen weeks ended July 31, 2011 includes costs of $11,226 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $6,651 in Tommy Hilfiger North America and $4,575 in corporate expenses not allocated to any reportable segments.

⁽⁶⁾

Income (loss) before interest and taxes for the twenty-six weeks ended July 31, 2011 includes costs of $41,685 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $30,142 in Tommy Hilfiger North America; $448 in Tommy Hilfiger International; and $11,095 in corporate expenses not allocated to any reportable segments.


⁽⁷⁾	Loss before interest and taxes for the twenty-six weeks ended July 31, 2011 includes costs of $16,233 associated with the Company’s modification of its senior secured credit facility. Please refer to Note 6, “Debt,” for a further discussion.

⁽⁸⁾

In the fourth quarter of 2011, the Company changed the way actuarial gains and losses from its defined benefit pension plans are allocated to its reportable segments. Actuarial gains and losses are now included as part of corporate expenses and are not allocated to any reportable segment. Prior periods have been restated in order to present that information on a basis consistent with the current year.

Intersegment transactions consist of transfers of inventory principally from the Heritage Brand Wholesale Dress Furnishings segment to the Heritage Brand Retail segment and Other (Calvin Klein Apparel) segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage is eliminated principally in the Heritage Brand Retail segment and Other (Calvin Klein Apparel) segment.