Segment Information

3 Months Ended

Apr. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

11. SEGMENT INFORMATION

The Company’s reportable segments are as follows:

• Americas includes sales in TIFFANY & CO. stores in the United States, Canada and Latin/South 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 in Asia-Pacific markets, 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 primarily of wholesale sales of TIFFANY & CO. merchandise to independent distributors for resale in certain emerging markets (such as the Middle East and Russia) and wholesale sales of diamonds obtained through bulk purchases that were subsequently deemed not suitable for the Company’s needs. In addition, Other includes earnings received from third-party licensing agreements.

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

	Three Months Ended April 30,
(in thousands)	2011		2010
Net sales:
Americas	$	374,652	$	315,258
Asia-Pacific		167,247		122,336
Japan		123,358		115,049
Europe		85,626		68,628
Total reportable segments		750,883		621,271
Other		10,135		12,315
	$	761,018	$	633,586

	Three Months Ended April 30,
(in thousands)	2011		2010
Earnings from operations*:
Americas	$	74,413	$	54,922
Asia-Pacific		48,634		32,174
Japan		31,691		30,996
Europe		19,768		14,628
Total reportable segments		174,506		132,720
Other		178		248
	$	174,684	$	132,968

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

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 April 30,
(in thousands)	2011			2010
Earnings from operations for segments	$	174,684		$	132,968
Unallocated corporate expenses		(30,497	)		(26,691	)
Interest and other expenses, net		(10,147	)		(12,138	)
Other expense		(8,221	)		(860	)
Earnings from operations before income taxes	$	125,819		$	93,279

Unallocated corporate expenses include 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 expense in the three months ended April 30, 2011 and 2010 represents accelerated depreciation and incremental rent expense, and the first quarter of 2011 also includes payments to terminate leases associated with Tiffany’s plan to consolidate and relocate its New York headquarters staff to a single location. See “Note 8. Commitments and Contingencies.”