SEGMENT DATA

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 and specialty stores and e-commerce sites operated by key department store customers and pure play e-commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce sites in North America, 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, Calvin Klein Collection and Calvin Klein Platinum 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, e-commerce sites operated by key department store customers and pure play e-commerce retailers, franchisees of Calvin Klein, distributors and licensees; (ii) operating retail stores and e-commerce sites 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, Calvin Klein Platinum and Calvin Klein for a broad array of products and retail services outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Calvin Klein foreign affiliates in Australia and India.

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, principally Macy’s, Inc. and Hudson’s Bay Company, as well as e-commerce sites operated by key department store customers and pure play e-commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce sites in North America, which sell Tommy Hilfiger branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products in North America.

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, e-commerce sites operated by key department store customers and pure play e-commerce retailers, franchisees of Tommy Hilfiger, distributors and licensees; (ii) operating retail stores in Europe and Japan and international e-commerce sites, which sell Tommy Hilfiger branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Tommy Hilfiger foreign affiliates in Brazil, China, India and Australia.

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, chain and specialty stores and, to a lesser extent, e-commerce sites operated by key department store customers and pure play e-commerce retailers in North America of (i) dress shirts, neckwear and underwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear principally under the brand names Van Heusen, IZOD and ARROW; (iii) swimwear, fitness apparel, swim accessories and related products under the brand name Speedo; and (iv) women’s intimate apparel under the brand names Warner’s and Olga. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated Heritage Brands foreign affiliate in Australia.

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 located in outlet centers in North America, which primarily sell apparel, accessories and related products under the brand names Van Heusen and IZOD. The Company exited the Izod retail business in the third quarter of 2015 but continues to sell a limited selection of IZOD Golf apparel in some of its Van Heusen retail stores. The Company also sells products under the brand name Warner’s on a limited basis in its Van Heusen retail stores. This segment also derived revenue through the third quarter of 2013 under the brand names Bass and G.H. Bass & Co., principally from operating outlet stores.

The following tables present summarized information by segment:



(In millions)	2015		⁽¹⁾	2014		2013
Revenue – Calvin Klein North America
Net sales	$	1,457.0		$	1,391.1	$	1,316.8
Royalty revenue	133.7			115.6		113.9
Advertising and other revenue	44.0			44.1		41.9
Total	1,634.7			1,550.8		1,472.6

Revenue – Calvin Klein International
Net sales	1,183.4			1,198.8		1,186.9		⁽²⁾
Royalty revenue	78.2			78.6		76.8
Advertising and other revenue	26.3			30.6		30.3
Total	1,287.9			1,308.0		1,294.0

Revenue – Tommy Hilfiger North America
Net sales	1,567.6			1,595.6		1,505.6
Royalty revenue	42.4			30.2		27.6
Advertising and other revenue	12.7			10.0		9.0
Total	1,622.7			1,635.8		1,542.2

Revenue – Tommy Hilfiger International
Net sales	1,693.6			1,886.1		1,834.9
Royalty revenue	49.3			56.2		51.7
Advertising and other revenue	3.9			3.7		4.5
Total	1,746.8			1,946.0		1,891.1

Revenue – Heritage Brands Wholesale
Net sales	1,387.6			1,425.1		1,420.3
Royalty revenue	19.0			17.2		16.4
Advertising and other revenue	2.9			2.7		2.8
Total	1,409.5			1,445.0		1,439.5

Revenue – Heritage Brands Retail
Net sales	316.3			352.4		541.7		⁽³⁾
Royalty revenue	2.2			2.7		4.3
Advertising and other revenue	0.2			0.5		1.0
Total	318.7			355.6		547.0

Total Revenue
Net sales	7,605.5			7,849.1		7,806.2
Royalty revenue	324.8			300.5		290.7
Advertising and other revenue	90.0			91.6		89.5
Total⁽⁴⁾	$	8,020.3		$	8,241.2	$	8,186.4


⁽¹⁾	Revenue in 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this report for a further discussion.


⁽²⁾	Includes $30.0 million of sales returns from certain wholesale customers in Asia in connection with the Company’s initiative to reduce excess inventory levels.

⁽³⁾Includes net sales of $175.6 million in 2013 related to the Bass business, which was sold in the fourth quarter of 2013.


⁽⁴⁾	No single customer accounted for more than 10% of the Company’s revenue in 2015, 2014 or 2013.



(In millions)	2015			⁽¹⁾	2014				2013
Income before interest and taxes – Calvin Klein North America	$	226.4		⁽³⁾	$	225.6		⁽⁸⁾	$	167.0		⁽¹²⁾

Income (loss) before interest and taxes – Calvin Klein International	186.6			⁽³⁾	118.7			^(8)(10)	(60.7		)	⁽¹²⁾

Income before interest and taxes – Tommy Hilfiger North America	173.9			⁽⁴⁾	242.9				242.5			⁽¹⁴⁾

Income before interest and taxes – Tommy Hilfiger International	224.7				261.2				260.5			⁽¹⁴⁾

Income before interest and taxes – Heritage Brands Wholesale	90.4			⁽³⁾⁽⁵⁾	96.6			⁽⁸⁾	114.4			⁽¹²⁾

Loss before interest and taxes – Heritage Brands Retail	(3.4		)	⁽⁶⁾	(24.8		)	⁽⁹⁾	(24.4		)	⁽¹³⁾

Loss before interest and taxes – Corporate⁽²⁾	(138.1		)	⁽³⁾⁽⁷⁾	(390.3		)	^(8)(11)	(185.9		)	^(12)(15)

Income before interest and taxes	$	760.5			$	529.9			$	513.4

⁽¹⁾

Income (loss) before interest and taxes for 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this report for a further discussion.

⁽²⁾

Includes corporate expenses not allocated to any reportable segments, as well as the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld. 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. Actuarial gains (losses) from the Company’s United States pension and other postretirement plans totaled $20.2 million, $(138.9) million and $52.5 million in 2015, 2014 and 2013, respectively.

⁽³⁾

Income (loss) before interest and taxes for 2015 includes costs of $73.4 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $8.3 million in Calvin Klein North America; $12.9 million in Calvin Klein International; $8.1 million in Heritage Brands Wholesale and $44.1 million in corporate expenses not allocated to any reportable segments.

⁽⁴⁾Income before interest and taxes for 2015 includes costs of $3.2 million in connection with licensing to G-III Apparel Group, Ltd. (“G-III”) the Tommy Hilfiger womenswear wholesale business in the United States and Canada.


⁽⁵⁾	Income before interest and taxes for 2015 includes costs of $16.5 million principally related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business.


⁽⁶⁾	Loss before interest and taxes for 2015 includes costs of $10.3 million related to the operation of and exit from the Company’s Izod retail business.


⁽⁷⁾	Loss before interest and taxes for 2015 includes a one-time gain of $2.2 million recorded in connection with the Company’s 10% economic interest in Karl Lagerfeld.

⁽⁸⁾

Income (loss) before interest and taxes for 2014 includes costs of $139.4 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $14.0 million in Calvin Klein North America; $51.1 million in Calvin Klein International; $17.7 million in Heritage Brands Wholesale and $56.6 million in corporate expenses not allocated to any reportable segments.


⁽⁹⁾	Loss before interest and taxes for 2014 includes costs of $21.0 million associated with the exit from the Company’s Izod retail business, the majority of which was noncash impairment charges.


⁽¹⁰⁾	Income before interest and taxes for 2014 includes a net gain of $8.0 million associated with the deconsolidation of certain Calvin Klein subsidiaries in Australia and the Company’s previously consolidated Calvin Klein joint venture in India. Please see Note 6, “Investments in Unconsolidated Affiliates” and Note 7, “Redeemable Non-Controlling Interest” for further discussions.


⁽¹¹⁾	Loss before interest and taxes for 2014 includes costs of $93.1 million associated with the Company’s amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8% senior notes due 2020. Please see Note 8, “Debt,” for a further discussion.

⁽¹²⁾

Income (loss) before interest and taxes for 2013 includes costs of $469.7 million 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: $87.7 million in Calvin Klein North America; $237.5 million in Calvin Klein International; $43.9 million in Heritage Brands Wholesale and $100.6 million in corporate expenses not allocated to any reportable segments.


⁽¹³⁾	Loss before interest and taxes for 2013 includes a loss of $20.2 million associated with the sale of substantially all of the assets of the Company’s Bass business.

⁽¹⁴⁾

Income before interest and taxes for 2013 includes income of $24.3 million related to the amendment of an unfavorable contract. A liability was recorded for such unfavorable contract at the time of the Tommy Hilfiger acquisition in 2010. The amendment executed in the third quarter of 2013 adjusted the contract terms thereby reducing the amount by which the contract was unfavorable and resulted in a reduction of the liability, amounting to $24.3 million. Such income was included in the Company’s segments as follows: $12.0 million in Tommy Hilfiger North America and $12.3 million in Tommy Hilfiger International.


⁽¹⁵⁾	Loss before interest and taxes for 2013 includes costs of $40.4 million associated with the Company’s debt modification and extinguishment. Please see Note 8, “Debt,” for a further discussion.

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



(In millions)	2015		2014		2013
Identifiable Assets
Calvin Klein North America	$	1,935.7	$	1,834.9	$	1,792.1
Calvin Klein International	2,752.8		2,819.9		2,975.7
Tommy Hilfiger North America	1,222.8		1,258.6		1,207.2
Tommy Hilfiger International	3,213.1		3,255.8		3,741.4
Heritage Brands Wholesale	1,297.0		1,342.7		1,399.5
Heritage Brands Retail	76.1		91.9		128.2
Corporate	198.9		221.1		182.1
Total	$	10,696.4	$	10,824.9	$	11,426.2
Depreciation and Amortization
Calvin Klein North America	$	43.3	$	38.0	$	61.8
Calvin Klein International	61.1		58.6		100.9
Tommy Hilfiger North America	35.4		31.9		29.5
Tommy Hilfiger International	87.0		87.4		82.6
Heritage Brands Wholesale	15.3		14.6		19.0
Heritage Brands Retail	5.2		7.2		11.2
Corporate	10.1		7.0		8.6
Total	$	257.4	$	244.7	$	313.6
Identifiable Capital Expenditures⁽¹⁾
Calvin Klein North America	$	55.1	$	52.1	$	35.5
Calvin Klein International	70.6		49.9		42.7
Tommy Hilfiger North America	36.1		38.9		47.0
Tommy Hilfiger International	83.2		93.2		91.7
Heritage Brands Wholesale	14.6		10.2		7.4
Heritage Brands Retail	4.4		8.2		14.3
Corporate	7.3		6.7		7.9
Total	$	271.3	$	259.2	$	246.5


⁽¹⁾	Capital expenditures in 2015 included $24.5 million of accruals that will not be paid until 2016. Capital expenditures in 2014 included $17.0 million of accruals that were not paid until 2015. Capital expenditures in 2013 included $13.6 million of accruals that were not paid until 2014.

Property, plant and equipment, net based on the location where such assets are held, was as follows:



(In millions)	2015 ⁽¹⁾		2014		2013
Domestic	$	419.1	$	388.6	$	373.1
Canada	31.8		38.3		36.8
Europe ⁽²⁾	221.6		230.2		224.2
Asia	57.9		53.1		63.9
Other foreign	14.2		15.5		14.1
Total	$	744.6	$	725.7	$	712.1

⁽¹⁾

Property, plant and equipment, net as of January 31, 2016 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this report for a further discussion.


⁽²⁾	Property, plant and equipment, net as of January 31, 2016 did not include $14.7 million related to a building in Amsterdam, the Netherlands, as during the fourth quarter of 2015 the Company entered into an agreement to sell the building. Please see Note 3, “Assets Held For Sale,” for a further discussion.

Revenue, based on location of origin, was as follows:



(In millions)	2015 ⁽¹⁾		2014		2013
Domestic	$	4,406.2	$	4,404.8	$	4,433.9
Canada	454.2		468.5		454.0
Europe	2,130.8		2,304.9		2,261.4
Asia	785.3		779.3		742.3
Other foreign	243.8		283.7		294.8
Total	$	8,020.3	$	8,241.2	$	8,186.4


⁽¹⁾	Revenue in 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this report for a further discussion.