Segment Information

9 Months Ended

Oct. 31, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

13. 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 October 31,					Nine Months Ended October 31,
(in thousands)	2011			2010		2011			2010
Net sales:
Americas	$	387,713		$	331,767	$	1,200,588		$	997,458
Asia-Pacific		183,220			127,057		523,708			360,883
Japan		146,437			130,817		412,297			363,897
Europe		92,528			77,456		279,503			222,977
Total reportable segments		809,898			667,097		2,416,096			1,945,215
Other		11,869			14,632		39,401			38,860
	$	821,767		$	681,729	$	2,455,497		$	1,984,075
Earnings (losses) from operations*:
Americas	$	64,716		$	51,678	$	233,812		$	175,570
Asia-Pacific		50,469			25,434		145,809			81,974
Japan		43,137			39,081		115,944			101,305
Europe		19,285			15,539		63,235			47,008
Total reportable segments		177,607			131,732		558,800			405,857
Other		(1,986	)		2,134		(374	)		3,244
	$	175,621		$	133,866	$	558,426		$	409,101

* 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 October 31,						Nine Months Ended October 31,
(in thousands)	2011			2010			2011			2010
Earnings from operations for segments	$	175,621		$	133,866		$	558,426		$	409,101
Unallocated corporate expenses		(29,444	)		(29,867	)		(93,024	)		(81,274	)
Interest and other expenses, net		(10,393	)		(12,997	)		(30,159	)		(36,256	)
Other expense		—			(6,421	)		(42,719	)		(11,226	)
Earnings from operations before income taxes	$	135,784		$	84,581		$	392,524		$	280,345

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 nine months ended October 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 10. Commitments and Contingencies.”