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SEGMENT DATA
 3 Months Ended
May 01, 2011
Notes to Financial Statements [Abstract]  
SEGMENT DATA
16. SEGMENT DATA

The acquisition of Tommy Hilfiger impacted significantly the way the Company and its chief operating decision maker manage and analyze its operating results. As such, the Company changed the way it reports its segment data. Prior year periods have been restated in order to present that information on a basis consistent with the current year.

The Company manages its operations through its operating divisions, which are aggregated into seven reportable segments:  (i) Heritage Brand Wholesale Dress Furnishings; (ii) Heritage Brand Wholesale Sportswear; (iii) Heritage Brand Retail; (iv) Calvin Klein Licensing; (v) Tommy Hilfiger North America; (vi) Tommy Hilfiger International; and (vii) Other (Calvin Klein Apparel).

Heritage Brand Wholesale Dress Furnishings Segment - This segment consists of the Company’s heritage brand wholesale dress furnishings division. This segment derives revenue primarily from marketing both dress shirts and neckwear under the brand names ARROW, IZOD, Eagle, Sean John, Donald J. Trump Signature Collection, Kenneth Cole New York, Kenneth Cole Reaction, JOE Joseph Abboud, DKNY, Elie Tahari, J. Garcia, Ike Behar and MICHAEL Michael Kors, as well as dress shirts under the brand names Van Heusen, Geoffrey Beene and CHAPS and neckwear under the brand names Nautica, Ted Baker, Jones New York, Michael Kors Collection, Claiborne, U.S. POLO ASSN., Axcess, Hart Schaffner Marx, Bass, and Robert Graham. The Company markets its dress shirt and neckwear brands, as well as various private label brands, primarily to department, mid-tier department and specialty stores.

Heritage Brand Wholesale Sportswear Segment - The Company aggregates the results of its heritage brand wholesale sportswear divisions into the Heritage Brand Wholesale Sportswear segment. This segment derives revenue primarily from marketing men’s sportswear under the brand names Van Heusen, IZOD, Geoffrey Beene, ARROW and Timberland, and women’s sportswear under the brand name IZOD to department, mid-tier department and specialty stores.

Heritage Brand Retail Segment - The Company aggregates the results of its three heritage brand retail divisions into the Heritage Brand Retail segment. This segment derives revenue principally from operating retail stores, primarily in outlet centers in the United States, which sell apparel, footwear, accessories and related products under the brand names Van Heusen, IZOD, Bass and G.H. Bass & Co.

Calvin Klein Licensing Segment - The Company aggregates the results of its Calvin Klein licensing and advertising division into the Calvin Klein Licensing segment. This segment derives revenue principally from licensing and similar arrangements worldwide relating to the use by third parties of the brand names Calvin Klein Collection, ck Calvin Klein and Calvin Klein for a broad array of products and retail services. This segment also derives revenue from the Company’s Calvin Klein Collection wholesale business and from selling Calvin Klein Collection branded high-end collection apparel and accessories through the Company’s own full price Calvin Klein Collection retail store located in New York City, both of which the Company operates directly in support of the global licensing business.

Tommy Hilfiger North America Segment - The Company aggregates the results of its Tommy Hilfiger wholesale and retail divisions in North America into the Tommy Hilfiger North America segment. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale in the United States and Canada, primarily to department and specialty stores, and through licensees; and (ii) operating retail stores in the United States and Canada and an e-commerce website, which sell Tommy Hilfiger branded apparel, accessories and related products.

Tommy Hilfiger International Segment - The Company aggregates the results of its Tommy Hilfiger wholesale and retail divisions that operate outside of North America into the Tommy Hilfiger International segment. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale principally in Europe, primarily to department and specialty stores and franchise operators of Tommy Hilfiger stores, and through distributors and licensees; and (ii) operating retail stores and an e-commerce website in Europe and retail stores in Japan, which sell Tommy Hilfiger branded apparel, accessories and related products.

Other (Calvin Klein Apparel) Segment - The Company aggregates the results of its Calvin Klein apparel divisions into the Other (Calvin Klein Apparel) segment. This segment derives revenue from the Company’s marketing at wholesale of apparel and related products under the brand names Calvin Klein and ck Calvin Klein, primarily to department, mid-tier department and specialty stores, and at retail through the Company’s e-commerce website and Calvin Klein retail stores, which are primarily located in outlet centers in the United States.

The following table presents summarized information by segment:

   
Thirteen Weeks Ended
 
   
5/1/11
  
5/2/10
 
        
Revenue – Heritage Brand Wholesale Dress Furnishings
      
Net sales                                                                                                 
 $134,689  $132,171 
Royalty revenue                                                                                                 
  1,485   1,465 
Advertising and other revenue                                                                                                 
  404   379 
Total                                                                                                 
  136,578   134,015 
          
Revenue – Heritage Brand Wholesale Sportswear
        
Net sales                                                                                                 
  135,454   135,330 
Royalty revenue                                                                                                 
  2,441   2,477 
Advertising and other revenue                                                                                                 
  406   458 
Total                                                                                                 
  138,301   138,265 
          
Revenue – Heritage Brand Retail
        
Net sales                                                                                                 
  131,677   135,183 
Royalty revenue                                                                                                 
  1,298   1,183 
Advertising and other revenue                                                                                                 
  241   260 
Total                                                                                                 
  133,216   136,626 
          
Revenue – Calvin Klein Licensing
        
Net sales                                                                                                 
  7,442   8,954 
Royalty revenue                                                                                                 
  65,774   59,734 
Advertising and other revenue                                                                                                 
  25,999   22,400 
Total                                                                                                 
  99,215   91,088 
          
Revenue – Tommy Hilfiger North America
        
Net sales                                                                                                 
  267,637   - 
Royalty revenue                                                                                                 
  2,861   - 
Advertising and other revenue                                                                                                 
  1,286   -  
Total                                                                                                 
  271,784   - 
          
Revenue – Tommy Hilfiger International
        
Net sales                                                                                                 
  433,656   - 
Royalty revenue                                                                                                 
  9,023   - 
Advertising and other revenue                                                                                                 
  980   -  
Total                                                                                                 
  443,659   - 
          
Revenue – Other (Calvin Klein Apparel)
        
Net sales                                                                                                 
  146,431   119,050 
Total                                                                                                 
  146,431   119,050 
          
Total Revenue
        
Net sales                                                                                                 
  1,256,986   530,688 
Royalty revenue                                                                                                 
  82,882   64,859 
Advertising and other revenue                                                                                                 
  29,316   23,497 
Total                                                                                                 
 $1,369,184  $619,044 
          
 
 

 
   
Thirteen Weeks Ended
 
   
5/1/11
  
5/2/10
 
        
Income before interest and taxes – Heritage Brand Wholesale
      
  Dress Furnishings                                                                                                 
 $20,432  $18,460 
          
Income before interest and taxes – Heritage Brand Wholesale
        
  Sportswear                                                                                                 
  13,682   20,888 
          
Income before interest and taxes – Heritage Brand Retail                                                                                                 
  4,527   8,684 
          
Income before interest and taxes – Calvin Klein Licensing                                                                                                 
  34,142   36,983 
          
Loss before interest and taxes – Tommy Hilfiger
        
  North America                                                                                                 
  (12,321)(2)    - 
          
Income before interest and taxes – Tommy Hilfiger International
  78,982(2)       - 
          
Income before interest and taxes – Other (Calvin Klein Apparel)
  20,941   13,705 
          
Loss before interest and taxes – Corporate(1)                                                                                                 
  (39,941)(2)(3)  (121,277)(4)
          
Income before interest and taxes                                                                                                 
 $120,444  $(22,557)   

(1)
Includes corporate expenses not allocated to any reportable segments. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance and information technology related to corporate infrastructure.

(2)
Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2011 includes costs of $30,459 associated with the Company’s integration of Tommy Hilfiger and related restructuring. Such costs were included in the Company’s segments as follows:  $23,491 in Tommy Hilfiger North America; $448 in Tommy Hilfiger International; and $6,520 in corporate expenses not allocated to any reportable segments.

(3)
Loss before interest and taxes for the thirteen weeks ended May 1, 2011 includes costs of $16,233 associated with the Company’s modification of its senior secured credit facility. Please refer to Note 8, “Debt,” for a further discussion.

(4)
Loss before interest and taxes for the thirteen weeks ended May 2, 2010 includes costs of $104,028 associated with the Company’s acquisition of Tommy Hilfiger, including the effects of foreign currency forward exchange contracts. Please refer to Note 9, “Derivative Financial Instruments,” for a further discussion.

Intersegment transactions consist of transfers of inventory principally between the Heritage Brand Wholesale Dress Furnishings segment and the Heritage Brand Retail segment and Other (Calvin Klein Apparel) segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage is eliminated principally in the Heritage Brand Retail segment and Other (Calvin Klein Apparel) segment.