Segment Information

9 Months Ended

Oct. 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 retail sales in five TIFFANY & CO. stores in the United Arab Emirates which were converted from independently-operated to Company-operated stores in July 2012, and wholesale sales of TIFFANY & CO. merchandise to independent distributors for resale in certain emerging markets (primarily in the Middle East and Russia). 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 October 31,					Nine Months Ended October 31,
(in thousands)	2013			2012		2013			2012
Net sales:
Americas	$	416,748		$	400,113	$	1,268,301		$	1,219,776
Asia-Pacific	238,412			187,685		670,164			556,893
Japan	128,300			146,723		409,222			447,175
Europe	104,488			97,644		308,721			285,765
Total reportable segments	887,948			832,165		2,656,408			2,509,609
Other	23,530			20,576		76,438			48,871
	$	911,478		$	852,741	$	2,732,846		$	2,558,480
Earnings (losses) from operations*:
Americas	$	61,662		$	51,890	$	208,355		$	191,697
Asia-Pacific	59,975			36,589		165,316			122,675
Japan	46,528			42,732		148,182			135,558
Europe	17,672			16,119		54,288			53,371
Total reportable segments	185,837			147,330		576,141			503,301
Other	(1,722		)	586		(2,066		)	(3,353		)
	$	184,115		$	147,916	$	574,075		$	499,948

* 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 October 31,						Nine Months Ended October 31,
(in thousands)	2013			2012			2013			2012
Earnings from operations for segments	$	184,115		$	147,916		$	574,075		$	499,948
Unallocated corporate expenses	(30,497		)	(30,621		)	(93,034		)	(93,088		)
Interest and other expenses, net	(13,922		)	(14,783		)	(41,328		)	(39,587		)
Other operating expense	—			—			(9,379		)	—
Earnings from operations before income taxes	$	139,696		$	102,512		$	430,334		$	367,273

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 nine months ended October 31, 2013 represents expenses related to specific cost reduction initiatives. See “Note 10. Commitments and Contingencies.”