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 Van Heusen, 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 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 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. This segment also derives revenue from marketing women’s sportswear under the brand name IZOD. The Company announced in the fourth quarter of 2011 that it would be exiting the Izod women’s wholesale sportswear business beginning 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 and an e-commerce website in and for the United States and Canada, 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 and its proportionate share of the net income or loss of its unconsolidated affiliates 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 and for 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:



	2011		2010		2009
Revenue – Heritage Brand Wholesale Dress Furnishings
Net sales	$	564,898	$	523,901	$	489,845
Royalty revenue	6,158		5,815		5,859
Advertising and other revenue	2,169		2,689		1,681
Total	573,225		532,405		497,385

Revenue – Heritage Brand Wholesale Sportswear
Net sales	537,284		568,447		473,101
Royalty revenue	10,008		10,731		10,133
Advertising and other revenue	1,687		1,764		1,931
Total	548,979		580,942		485,165

Revenue – Heritage Brand Retail
Net sales	646,769		638,902		610,337
Royalty revenue	4,822		5,023		4,361
Advertising and other revenue	772		842		795
Total	652,363		644,767		615,493

Revenue – Calvin Klein Licensing
Net sales	45,796		38,326		32,696
Royalty revenue	273,002		244,891		218,903
Advertising and other revenue	108,588		97,530		84,314
Total	427,386		380,747		335,913

Revenue – Tommy Hilfiger North America
Net sales	1,273,829		889,630		—
Royalty revenue	16,850		11,558		—
Advertising and other revenue	7,016		3,257		—
Total	1,297,695		904,445		—

Revenue – Tommy Hilfiger International
Net sales	1,703,582		1,007,776		—
Royalty revenue	45,195		28,690		—
Advertising and other revenue	4,329		4,319		—
Total	1,753,106		1,040,785		—

Revenue – Other (Calvin Klein Apparel)
Net sales	637,870		552,757		464,775
Total	637,870		552,757		464,775

Total Revenue
Net sales	5,410,028		4,219,739		2,070,754
Royalty revenue	356,035		306,708		239,256
Advertising and other revenue	124,561		110,401		88,721
Total⁽¹⁾	$	5,890,624	$	4,636,848	$	2,398,731



	2011				2010			⁽¹⁰⁾	2009			⁽¹⁰⁾
Income before interest and taxes – Heritage Brand Wholesale Dress Furnishings	$	78,577			$	66,624		⁽⁷⁾	$	55,971		⁽⁹⁾

Income before interest and taxes – Heritage Brand Wholesale Sportswear	11,398			⁽³⁾	57,921				51,873			⁽⁹⁾

Income before interest and taxes – Heritage Brand Retail	28,993				45,339				28,570			⁽⁹⁾

Income before interest and taxes – Calvin Klein Licensing	189,178				174,699				155,738

Income before interest and taxes – Tommy Hilfiger North America	81,450			⁽⁴⁾	37,554			⁽⁸⁾	—

Income before interest and taxes – Tommy Hilfiger International	200,697			^{(4) (5)}	51,653			⁽⁸⁾	—

Income before interest and taxes – Other (Calvin Klein Apparel)	88,822				73,093				17,056			⁽⁹⁾

Loss before interest and taxes – Corporate⁽²⁾	(119,462		)	^{(4) (6)}	(303,488		)	⁽⁸⁾	(65,396		)	⁽⁹⁾

Income before interest and taxes	$	559,653			$	203,395			$	243,812


⁽¹⁾	Macy’s, Inc. accounted for 9.4%, 10.1% and 11.9% of the Company’s revenue in 2011, 2010 and 2009, respectively. This revenue is reported in the Heritage Brand Wholesale Dress Furnishings, Heritage Brand Wholesale Sportswear, Other (Calvin Klein Apparel) and Tommy Hilfiger North America segments.


⁽²⁾	Includes corporate expenses not allocated to any reportable segments. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure and actuarial gains and losses from the Company’s defined benefit pension plans.


⁽³⁾	Income before interest and taxes for 2011 includes costs of $8,118 related to the Company’s negotiated early termination of its license to market sportswear under the Timberland brand, which business will be exited in 2012, and its planned exit of the Izod women’s wholesale sportswear business.


⁽⁴⁾	Income (loss) before interest and taxes for 2011 includes costs of $69,522 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $44,704 in Tommy Hilfiger North America; $5,419 in Tommy Hilfiger International; and $19,399 in corporate expenses not allocated to any reportable segments.


⁽⁵⁾	Income before interest and taxes for 2011 includes an expense of $20,709 associated with settling the unfavorable pre-existing license agreement in connection with the Company’s buyout of the Tommy Hilfiger perpetual license in India. Please refer to Note 2, “Acquisitions,” for a further discussion.


⁽⁶⁾	Loss before interest and taxes for 2011 includes costs of $16,233 associated with the Company’s modification of its senior secured credit facility. Please refer to Note 6, “Debt,” for a further discussion.


⁽⁷⁾	Income before interest and taxes for 2010 includes costs of $6,552 associated with the Company’s exit from its United Kingdom and Ireland Van Heusen dresswear and accessories business.

⁽⁸⁾

Income (loss) before interest and taxes for 2010 includes costs of $338,317 associated with the Company’s acquisition and integration of Tommy Hilfiger, including transaction, restructuring, exit and debt extinguishment costs, short-lived non-cash valuation amortization charges and the effects of hedges against Euro to United States dollar exchange rates related to the purchase price. Such costs were included in the Company’s segments as follows: $51,946 in Tommy Hilfiger North America; $62,844 in Tommy Hilfiger International; and $223,527 in corporate expenses not allocated to any reportable segments.

⁽⁹⁾

Income (loss) before interest and taxes 2009 includes costs associated with the Company’s restructuring initiatives announced during the fourth quarter of 2008. Such costs were included in the Company’s segments as follows: $541 in Heritage Brand Wholesale Dress Furnishings; $701 in the Heritage Brand Wholesale Sportswear; $2,341 in Heritage Brand Retail; $17,134 in Other (Calvin Klein Apparel); and $5,180 in corporate expenses not allocated to any reportable segments.


⁽¹⁰⁾	In 2011, the Company changed the way actuarial gains and losses from its defined benefit pension plans are allocated to its reportable segments. Actuarial gains and losses are now included as part of corporate expenses not allocated to any reportable segments. Prior year periods have been restated in order to present that information on a basis consistent with the current year.

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.



	2011		2010		2009
Identifiable Assets
Heritage Brand Wholesale Dress Furnishings	$	312,800	$	296,299	$	278,101
Heritage Brand Wholesale Sportswear	301,935		297,780		249,864
Heritage Brand Retail	118,256		98,496		97,837
Calvin Klein Licensing	1,102,980		1,014,231		925,832
Tommy Hilfiger North America	1,152,019		1,168,558		—
Tommy Hilfiger International	3,097,140		3,205,394		—
Other (Calvin Klein Apparel)	140,186		144,492		134,515
Corporate	527,045		559,100		653,530
Total	$	6,752,361	$	6,784,350	$	2,339,679
Depreciation and Amortization
Heritage Brand Wholesale Dress Furnishings	$	5,672	$	6,003	$	7,606
Heritage Brand Wholesale Sportswear	3,233		5,084		6,425
Heritage Brand Retail	9,592		9,905		12,443
Calvin Klein Licensing	3,203		2,785		3,631
Tommy Hilfiger North America	28,093		31,527		—
Tommy Hilfiger International	63,447		72,339		—
Other (Calvin Klein Apparel)	13,539		13,563		14,535
Corporate	5,231		5,931		5,249
Total	$	132,010	$	147,137	$	49,889
Identifiable Capital Expenditures⁽¹⁾
Heritage Brand Wholesale Dress Furnishings	$	4,676	$	3,768	$	2,629
Heritage Brand Wholesale Sportswear	3,923		3,285		1,683
Heritage Brand Retail	18,602		9,411		5,381
Calvin Klein Licensing	6,632		3,096		2,249
Tommy Hilfiger North America	29,974		22,172		—
Tommy Hilfiger International	82,604		42,949		—
Other (Calvin Klein Apparel)	17,883		13,109		10,944
Corporate	7,613		6,014		1,881
Total	$	171,907	$	103,804	$	24,767


⁽¹⁾	Capital expenditures in 2011 include $5,786 of accruals that will not be paid until 2012. Capital expenditures in 2010 include $3,720 of accruals that were not paid until 2011. Capital expenditures in 2009 included $911 of accruals that were not paid until 2010.

Property, plant and equipment, net based on the location where such assets are held, was as follows:



	2011		2010		2009
Domestic	$	263,008	$	234,677	$	164,195
Canada	38,912		39,033		318
Europe	137,010		116,874		1,855
Other foreign	19,961		13,993		1,106
Total	$	458,891	$	404,577	$	167,474

Revenue, based on location of origin, was as follows:



	2011		2010		2009
Domestic	$	3,558,540	$	3,114,424	$	2,129,336
Canada	302,103		237,383		48,745
Europe	1,588,926		974,380		133,480
Other foreign	441,055		310,661		87,170
Total	$	5,890,624	$	4,636,848	$	2,398,731