ACTIVITY EXIT COSTS

3 Months Ended

May 05, 2013

Notes to Financial Statements [Abstract]

Warnaco Acquisition and Integration Costs

In connection with the Company’s acquisition of Warnaco during the first quarter of 2013 and the related integration, the Company incurred certain costs related to severance and termination benefits, inventory liquidations and lease/contract terminations. Such costs were as follows:



	Total Expected to be Incurred		Incurred During the Thirteen Weeks Ended 5/5/13		Liability at 5/5/13
Severance, termination benefits and other costs	$	150,000	$	57,113	$	26,337
Inventory liquidation costs	30,000		30,000		30,000
Lease/contract termination and related costs	50,000		591		—
Total	$	230,000	$	87,704	$	56,337

Of the charges for severance, termination benefits and lease/contract termination and other costs incurred during the thirteen weeks ended May 5, 2013, $13,595 relate to selling, general and administrative expenses of the Calvin Klein North America segment, $12,010 relate to selling, general and administrative expenses of the Calvin Klein International segment, $7,023 relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $25,076 relate to corporate expenses not allocated to any reportable segment. The liabilities at May 5, 2013 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets. The remaining charges for severance and termination benefits and lease/contract termination and other costs expected to be incurred relate principally to the aforementioned segments and corporate expenses not allocated to any reportable segment. Inventory liquidation costs incurred during the thirteen weeks ended May 5, 2013 were included in net sales of the Company’s Calvin Klein International segment (see Note 18, “Segment Data”).

Tommy Hilfiger Integration and Exit Costs

In connection with the Company’s acquisition and integration of Tommy Hilfiger and the related restructuring, the Company incurred certain costs related to severance and termination benefits, long-lived asset impairments, inventory liquidations and lease/contract terminations, including costs associated with the exit of certain Tommy Hilfiger product categories. All expected costs related to this acquisition and integration and the related restructuring were incurred by the end of 2012.

Liabilities for severance and termination benefits and lease/contract termination costs recorded in connection with the acquisition and integration of Tommy Hilfiger and the related restructuring were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:



	Liability at 2/3/13		Costs Incurred During the Thirteen Weeks Ended 5/5/13		Costs Paid During the Thirteen Weeks Ended 5/5/13		Liability at 5/5/13
Severance, termination benefits and other costs	$	763	$	—	$	219	$	544
Lease/contract termination and related costs	2,013		—		488		1,525
Total	$	2,776	$	—	$	707	$	2,069

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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