Segment Information

6 Months Ended

Jul. 31, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

12. 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, 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 July 31,				Six Months Ended July 31,
(in thousands)	2011		2010		2011		2010
Net sales:
Americas	$	438,223	$	350,433	$	812,875	$	665,691
Asia-Pacific		173,241		111,490		340,488		233,826
Japan		142,502		118,031		265,860		233,080
Europe		101,349		76,893		186,975		145,521
Total reportable segments		855,315		656,847		1,606,198		1,278,118
Other		17,397		11,913		27,532		24,228
	$	872,712	$	668,760	$	1,633,730	$	1,302,346
Earnings (losses) from operations*:
Americas	$	94,683	$	68,970	$	169,096	$	123,892
Asia-Pacific		46,706		24,366		95,340		56,540
Japan		41,116		31,228		72,807		62,224
Europe		24,182		16,841		43,950		31,469
Total reportable segments		206,687		141,405		381,193		274,125
Other		1,434		862		1,612		1,110
	$	208,121	$	142,267	$	382,805	$	275,235

* 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 July 31,						Six Months Ended July 31,
(in thousands)	2011			2010			2011			2010
Earnings from operations for segments	$	208,121		$	142,267		$	382,805		$	275,235
Unallocated corporate expenses		(33,084	)		(24,716	)		(63,580	)		(51,407	)
Interest and other expenses, net		(9,619	)		(11,121	)		(19,766	)		(23,259	)
Other expense		(34,497	)		(3,945	)		(42,719	)		(4,805	)
Earnings from operations before income taxes	$	130,921		$	102,485		$	256,740		$	195,764

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 and six months ended July 31, 2011 and 2010 represents charges associated with Tiffany’s consolidation and relocation of its New York headquarters staff to a single location. See “Note 9. Commitments and Contingencies.”