Segment Information

6 Months Ended

Jul. 31, 2013

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s reportable segments are as follows:

• Americas includes sales in TIFFANY & CO. stores in the United States, Canada and Latin America, as well as sales of TIFFANY & CO. products in certain markets through business-to-business, Internet, catalog and wholesale operations;

• Asia-Pacific includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations;

• Japan includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products through business-to-business, Internet and wholesale operations;

• Europe includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations; and

• Other consists of all non-reportable segments. Other consists of wholesale sales of TIFFANY & CO. merchandise to independent distributors for resale in certain emerging markets (primarily in the Middle East and Russia) and beginning in July 2012 retail sales in five TIFFANY & CO. stores in the United Arab Emirates which were converted from independently-operated to Company-operated stores. In addition, Other includes wholesale sales of diamonds obtained through bulk purchases that were subsequently deemed not suitable for the Company’s needs as well as earnings received from third-party licensing agreements.

Certain information relating to the Company’s segments is set forth below:

	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2013			2012			2013			2012
Net sales:
Americas	$	443,856		$	433,989		$	851,553		$	819,663
Asia-Pacific	208,325			174,138			431,752			369,208
Japan	136,395			158,663			280,922			300,452
Europe	111,247			100,214			204,233			188,121
Total reportable segments	899,823			867,004			1,768,460			1,677,444
Other	26,061			19,565			52,908			28,295
	$	925,884		$	886,569		$	1,821,368		$	1,705,739
Earnings (losses) from operations*:
Americas	$	87,731		$	83,866		$	146,693		$	139,807
Asia-Pacific	49,882			35,026			105,341			86,086
Japan	48,235			50,266			101,654			92,826
Europe	22,338			20,597			36,616			37,252
Total reportable segments	208,186			189,755			390,304			355,971
Other	(1,188		)	(2,158		)	(344		)	(3,939		)
	$	206,998		$	187,597		$	389,960		$	352,032

* Represents earnings (losses) from operations before unallocated corporate expenses, other operating expense and interest and other expenses, net.

The following table sets forth a reconciliation of the segments’ earnings from operations to the Company’s consolidated earnings from operations before income taxes:

	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2013			2012			2013			2012
Earnings from operations for segments	$	206,998		$	187,597		$	389,960		$	352,032
Unallocated corporate expenses	(30,112		)	(33,017		)	(62,537		)	(62,467		)
Interest and other expenses, net	(14,694		)	(14,250		)	(27,406		)	(24,804		)
Other operating expense	—			—			(9,379		)	—
Earnings from operations before income taxes	$	162,192		$	140,330		$	290,638		$	264,761

Unallocated corporate expenses includes certain costs related to administrative support functions which the Company does not allocate to its segments. Such unallocated costs include those for centralized information technology, finance, legal and human resources departments.

Other operating expense in the six months ended July 31, 2013 represents expenses related to specific cost reduction initiatives. See “Note 10. Commitments and Contingencies.”