SEGMENT DATA

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, Kenneth Cole New York, Kenneth Cole Reaction, JOE Joseph Abboud, DKNY and MICHAEL Michael Kors, as well as dress shirts under the brand names Van Heusen, Geoffrey Beene and CHAPS. The Company markets these dress shirt and neckwear brands, as well as certain other owned and licensed brands and 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. The Company negotiated during the second quarter of 2011 the early termination of its license to use the Timberland trademarks on men’s sportswear and will be exiting the business in 2012.

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 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 tables present summarized information by segment:



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	10/30/11		10/31/10		10/30/11		10/31/10
Revenue – Heritage Brand Wholesale Dress Furnishings
Net sales	$	163,173	$	157,246	$	421,633	$	392,345
Royalty revenue	1,681		1,526		4,634		4,290
Advertising and other revenue	496		524		1,314		1,540
Total	165,350		159,296		427,581		398,175

Revenue – Heritage Brand Wholesale Sportswear
Net sales	187,344		201,948		418,905		425,823
Royalty revenue	2,498		2,706		7,646		7,807
Advertising and other revenue	408		446		1,289		1,344
Total	190,250		205,100		427,840		434,974

Revenue – Heritage Brand Retail
Net sales	169,269		169,465		476,158		476,080
Royalty revenue	1,268		1,371		3,805		3,739
Advertising and other revenue	143		203		661		627
Total	170,680		171,039		480,624		480,446

Revenue – Calvin Klein Licensing
Net sales	16,339		11,129		31,774		25,784
Royalty revenue	80,605		74,418		205,117		186,445
Advertising and other revenue	29,663		29,113		79,920		71,962
Total	126,607		114,660		316,811		284,191

Revenue – Tommy Hilfiger North America
Net sales	350,281		298,282		911,678		554,426
Royalty revenue	5,537		3,931		12,658		7,982
Advertising and other revenue	2,002		1,548		5,293		2,381
Total	357,820		303,761		929,629		564,789

Revenue – Tommy Hilfiger International
Net sales	456,456		392,677		1,272,088		655,970
Royalty revenue	11,505		10,181		30,318		16,835
Advertising and other revenue	860		1,778		2,923		2,978
Total	468,821		404,636		1,305,329		675,783

Revenue – Other (Calvin Klein Apparel)
Net sales	174,632		157,927		469,974		400,373
Total	174,632		157,927		469,974		400,373

Total Revenue
Net sales	1,517,494		1,388,674		4,002,210		2,930,801
Royalty revenue	103,094		94,133		264,178		227,098
Advertising and other revenue	33,572		33,612		91,400		80,832
Total	$	1,654,160	$	1,516,419	$	4,357,788	$	3,238,731



	Thirteen Weeks Ended								Thirty-Nine Weeks Ended
	10/30/11				10/31/10				10/30/11				10/31/10
Income before interest and taxes – Heritage Brand Wholesale Dress Furnishings	$	25,817			$	29,861			$	60,335			$	55,380

Income before interest and taxes – Heritage Brand Wholesale Sportswear	10,456			⁽²⁾	21,919				18,368			⁽²⁾	50,001

Income before interest and taxes – Heritage Brand Retail	8,571				16,108				28,332				41,586

Income before interest and taxes – Calvin Klein Licensing	58,777				50,937				136,380				127,270

Income before interest and taxes – Tommy Hilfiger North America	41,642			⁽³⁾	20,197			⁽⁷⁾	60,637			⁽⁵⁾	26,621			⁽⁸⁾

Income before interest and taxes – Tommy Hilfiger International	48,820			^{(3) (4)}	41,870			⁽⁷⁾	165,475			^{(4) (5)}	28,237			⁽⁸⁾

Income before interest and taxes – Other (Calvin Klein Apparel)	26,902				24,687				69,967				53,058

Loss before interest and taxes – Corporate⁽¹⁾	(24,143		)	⁽³⁾	(27,288		)	⁽⁷⁾	(88,729		)	^{(5) (6)}	(270,565		)	⁽⁸⁾

Income before interest and taxes	$	196,842			$	178,291			$	450,765			$	111,588


⁽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 before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 2011 includes costs of $502 and $7,152, respectively, related to the Company’s negotiated early termination of its license to market sportswear under the Timberland brand, which will become effective in 2012.

⁽³⁾

Income (loss) before interest and taxes for the thirteen weeks ended October 30, 2011 includes costs of $9,264 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $3,421 in Tommy Hilfiger North America; $1,500 in Tommy Hilfiger International; and $4,343 in corporate expenses not allocated to any reportable segments.


⁽⁴⁾	Income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 2011 includes a one-time expense of $20,709 recorded in connection with the Company’s reacquisition of the rights to the Tommy Hilfiger trademarks in India that had been subject to a perpetual license. Please refer to Note 3, “Acquisitions,” for a further discussion.

⁽⁵⁾

Income (loss) before interest and taxes for the thirty-nine weeks ended October 30, 2011 includes costs of $50,949 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $33,563 in Tommy Hilfiger North America; $1,948 in Tommy Hilfiger International; and $15,438 in corporate expenses not allocated to any reportable segments.


⁽⁶⁾	Loss before interest and taxes for the thirty-nine weeks ended October 30, 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.

⁽⁷⁾

Income (loss) before interest and taxes for the thirteen weeks ended October 31, 2010 includes costs of $37,197 associated with the Company’s acquisition and integration of Tommy Hilfiger, including restructuring costs and short-lived non-cash valuation amortization charges. Such costs were included in the Company’s segments as follows: $10,846 in Tommy Hilfiger North America; $18,392 in Tommy Hilfiger International; and $7,959 in corporate expenses not allocated to any reportable segments.

⁽⁸⁾

Income (loss) before interest and taxes for the thirty-nine weeks ended October 31, 2010 includes costs of $307,307 associated with the Company’s acquisition and integration of Tommy Hilfiger. Such costs were included in the Company’s segments as follows: $35,325 in Tommy Hilfiger North America; $57,768 in Tommy Hilfiger International; and $214,214 in corporate expenses not allocated to any reportable segments.

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.