SEGMENT DATA

The acquisition of Warnaco has significantly impacted the way the Company and its chief operating decision maker manage and analyze its operating results. As such, the Company has changed its reportable segments. Prior year periods have been restated in order to present that information on a basis consistent with the current year.

The Company manages its operations through its operating divisions, which are presented as six reportable segments: (i) Calvin Klein North America; (ii) Calvin Klein International; (iii) Tommy Hilfiger North America; (iv) Tommy Hilfiger International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail.

Calvin Klein North America segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in North America, primarily to department, mid-tier department and specialty stores; (ii) operating retail stores, which are primarily located in outlet centers, and an e-commerce website for North American customers, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements 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 in North America.

Calvin Klein International segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale principally in Europe, Asia and Brazil, primarily to department and specialty stores and franchise operators of Calvin Klein stores, and through distributors; (ii) operating retail stores in Europe, Asia and Brazil, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements 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 outside of North America.

Tommy Hilfiger North America segment - This segment consists of the Company’s Tommy Hilfiger North America division. 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 for North American customers, which sell Tommy Hilfiger branded apparel, accessories and related products.

Tommy Hilfiger International segment - This segment consists of the Company’s Tommy Hilfiger International division. 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. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated affiliates.

Heritage Brands Wholesale segment - This segment consists of the Company’s heritage brands wholesale division. This segment derives revenue primarily from the marketing to department, mid-tier department and specialty stores in North America of: (i) dress shirts and neckwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear under the brand names Van Heusen, IZOD and ARROW; (iii) swimwear, fitness apparel, swim accessories and related products under the brand name Speedo beginning in the first quarter of 2013; and (iv) women’s intimate apparel under the brand names Warner’s and Olga beginning in the first quarter of 2013. This segment also derived revenue through the second quarter of 2012 from marketing men’s sportswear under the brand name Timberland and through the third quarter of 2012 from marketing women’s sportswear under the brand name IZOD.

Heritage Brands Retail segment - This segment consists of the Company’s Heritage Brands retail division. 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.

The following tables present summarized information by segment:



	Thirteen Weeks Ended
	5/5/13				4/29/12
Revenue – Calvin Klein North America
Net sales	$	293,340			$	161,974
Royalty revenue	25,416				31,308
Advertising and other revenue	8,695				11,874
Total	327,451				205,156

Revenue – Calvin Klein International
Net sales	255,188		⁽¹	⁾	9,745
Royalty revenue	18,353				34,165
Advertising and other revenue	6,866				13,053
Total	280,407				56,963

Revenue – Tommy Hilfiger North America
Net sales	337,676				298,980
Royalty revenue	6,490				4,524
Advertising and other revenue	2,458				1,687
Total	346,624				305,191

Revenue – Tommy Hilfiger International
Net sales	451,786				453,850
Royalty revenue	11,753				10,280
Advertising and other revenue	1,214				1,044
Total	464,753				465,174

Revenue – Heritage Brands Wholesale
Net sales	354,569				254,118
Royalty revenue	3,992				3,980
Advertising and other revenue	604				1,168
Total	359,165				259,266

Revenue – Heritage Brands Retail
Net sales	130,486				134,182
Royalty revenue	1,063				1,203
Advertising and other revenue	211				271
Total	131,760				135,656

Total Revenue
Net sales	1,823,045				1,312,849
Royalty revenue	67,067				85,460
Advertising and other revenue	20,048				29,097
Total	$	1,910,160			$	1,427,406


⁽¹⁾	Includes $30,000 of sales returns for certain Warnaco wholesale customers in Asia in connection with the Company’s initiative to reduce excess inventory levels.



	Thirteen Weeks Ended
	5/5/13				4/29/12
Income before interest and taxes – Calvin Klein North America	$	12,438		⁽²⁾	$	36,078

(Loss) income before interest and taxes – Calvin Klein International	(48,154		)	⁽²⁾	22,226

Income before interest and taxes – Tommy Hilfiger North America	46,010				28,877			⁽⁴⁾

Income before interest and taxes – Tommy Hilfiger International	72,142				73,480

Income before interest and taxes – Heritage Brands Wholesale	28,355			⁽²⁾	20,240

Loss before interest and taxes – Heritage Brands Retail	(6,803		)		(2,596		)

Loss before interest and taxes – Corporate⁽¹⁾	(97,203		)	^{(2) (3)}	(22,223		)	⁽⁴⁾

Income before interest and taxes	$	6,785			$	156,082


⁽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 pension and other postretirement plans.

⁽²⁾

(Loss) income before interest and taxes for the thirteen weeks ended May 5, 2013 includes costs of $194,107 associated with the Company’s acquisition and integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $41,102 in Calvin Klein North America; $100,460 in Calvin Klein International; $17,523 in Heritage Brands Wholesale and $35,022 in corporate expenses not allocated to any reportable segments.


⁽³⁾	(Loss) before interest and taxes for the thirteen weeks ended May 5, 2013 includes costs of $40,395 associated with the Company’s debt modification and extinguishment. Please refer to Note 8, “Debt,” for a further discussion.


⁽⁴⁾	Income (loss) before interest and taxes for the thirteen weeks ended April 29, 2012 includes costs of $3,316 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 and $2,937 in corporate expenses not allocated to any reportable segments.

Intersegment transactions consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment and Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage is eliminated principally in the Heritage Brands Retail segment and Calvin Klein North America segment.

The following table presents the Company’s total assets by segment:



	5/5/13		2/3/13		4/29/12
Identifiable Assets
Calvin Klein North America	$	1,905,514	$	752,029	$	697,267
Calvin Klein International	3,383,852		584,860		566,398
Tommy Hilfiger North America	1,174,690		1,137,404		1,179,654
Tommy Hilfiger International	3,132,956		3,278,813		3,086,564
Heritage Brands Wholesale	1,406,490		555,544		578,926
Heritage Brands Retail	200,511		175,717		176,594
Corporate⁽¹⁾	403,271		1,297,182		494,994
Total	$	11,607,284	$	7,781,549	$	6,780,397

⁽¹⁾ Corporate at 2/3/13 included $700,000 of cash that arose from senior notes that were issued to fund a portion of the consideration for the Warnaco acquisition.