Segment Information

12 Months Ended

Jan. 31, 2013

Segment Information

Q. SEGMENT INFORMATION

The Company’s products are primarily sold in TIFFANY & CO. retail locations around the world. Net sales by geographic area are presented by attributing revenues from external customers on the basis of the country in which the merchandise is sold.

In deciding how to allocate resources and assess performance, the Company’s Chief Operating Decision Maker (“CODM”) regularly evaluates the performance of its reportable segments on the basis of net sales and earnings from operations, after the elimination of inter-segment sales and transfers. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

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

	Years Ended January 31,
(in thousands)	2013			2012			2011
Net sales:
Americas	$	1,839,969		$	1,805,783		$	1,574,571
Asia-Pacific		810,420			748,214			549,197
Japan		639,185			616,505			546,537
Europe		432,167			421,141			360,831
Total reportable segments		3,721,741			3,591,643			3,031,136
Other		72,508			51,294			54,154
	$	3,794,249		$	3,642,937		$	3,085,290
Earnings (losses) from operations: *
Americas	$	345,917		$	387,951		$	340,331
Asia-Pacific		188,510			205,711			133,448
Japan		204,510			184,767			162,800
Europe		90,955			105,728			88,309
Total reportable segments		829,892			884,157			724,888
Other		(6,254	)		(5,247	)		3,358
	$	823,638		$	878,910		$	728,246

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

The Company’s CODM does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented.

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

	Years Ended January 31,
(in thousands)	2013			2012			2011
Earnings from operations for segments	$	823,638		$	878,910		$	728,246
Unallocated corporate expenses		(126,421	)		(127,765	)		(115,830	)
Other operating expense		—			(42,719	)		(17,635	)
Interest expense, financing costs and other income, net		(53,641	)		(43,475	)		(47,347	)
Earnings from operations before income taxes	$	643,576		$	664,951		$	547,434

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 was related to Tiffany’s relocation of its New York headquarters staff to a single location (see “Note K. Commitments and Contingencies”).

Sales to unaffiliated customers and long-lived assets by geographic areas were as follows:

	Years Ended January 31,
(in thousands)	2013		2012		2011
Net sales:
United States	$	1,696,502	$	1,687,478	$	1,484,505
Japan		639,185		616,505		546,537
Other countries		1,458,562		1,338,954		1,054,248
	$	3,794,249	$	3,642,937	$	3,085,290
Long-lived assets:
United States	$	630,805	$	597,124	$	529,763
Japan		28,971		32,030		31,729
Other countries		200,480		171,014		135,486
	$	860,256	$	800,168	$	696,978

Classes of Similar Products

	Years Ended January 31,
(in thousands)	2013		2012		2011
Net sales:
Statement, fine & solitaire jewelry	$	700,615	$	655,804	$	534,107
Engagement jewelry & wedding bands		1,093,411		1,058,921		853,488
Silver, gold & RUBEDO® metal jewelry		1,146,716		1,108,182		985,754
Designer jewelry		531,469		501,290		437,514
All other		322,038		318,740		274,427
	$	3,794,249	$	3,642,937	$	3,085,290

Certain reclassifications have been made to the prior years’ classes of similar products to conform to the current year presentation.