ACTIVITY EXIT COSTS

Tommy Hilfiger Integration and Exit Costs

In connection with the Tommy Hilfiger acquisition and the related integration, the Company incurred certain costs related to severance and termination benefits, long-lived asset impairments, inventory liquidations and lease/contract terminations, including costs associated with the exit of certain Tommy Hilfiger product categories. All expected costs related to this acquisition and integration were incurred by the end of 2012. Such costs were as follows:



	Total Expected to be Incurred		Incurred During 2010		Incurred During 2011		Incurred During 2012		Cumulative Incurred to Date
Severance, termination benefits and other costs	$	33,528	$	19,793	$	12,415	$	1,320	$	33,528
Long-lived asset impairments	11,276		11,017		—		259		11,276
Inventory liquidation costs	10,210		2,583		7,627		—		10,210
Lease/contract termination and related costs	39,173		3,165		24,462		11,546		39,173
Total	$	94,187	$	36,558	$	44,504	$	13,125	$	94,187

Of the charges for severance, termination benefits, asset impairments and lease/contract termination and other costs incurred in 2012, $379 relate to selling, general and administrative expenses of the Tommy Hilfiger North America segment, $10,405 relate to selling, general and administrative expenses of the Tommy Hilfiger International segment and $2,341 relate to corporate expenses not allocated to any reportable segment. $33,385 of the charges for severance, termination benefits, lease/contract termination and other costs for 2011 relate principally to selling, general and administrative expenses of the Tommy Hilfiger North America segment. The remaining $3,492 of the charges for severance, termination benefits, lease/contract termination and other costs for 2011 relate principally to corporate expenses not allocated to any reportable segment. The charges for severance, termination benefits and other costs for 2010 were principally included in selling, general and administrative expenses of the Tommy Hilfiger North America segment and the lease/contract termination and related costs for 2010 were principally included in selling, general and administrative expenses of the Tommy Hilfiger International segment. Inventory liquidation costs for 2011 and 2010 were included in cost of goods sold of the Tommy Hilfiger North America segment (see Note 18, “Segment Data”).

Please see Note 9, “Fair Value Measurements,” for a further discussion of the long-lived asset impairments reflected in the above table.

Liabilities for severance and termination benefits and lease/contract termination costs recorded in connection with the acquisition and integration of Tommy Hilfiger were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:



	Liability at 1/29/12		Costs Incurred During 2012		Costs Paid During 2012		Liability at 2/3/13
Severance, termination benefits and other costs	$	4,305	$	1,320	$	4,862	$	763
Lease/contract termination and related costs	4,492		11,546		14,025		2,013
Total	$	8,797	$	12,866	$	18,887	$	2,776

Costs Related to Exit from Timberland and Izod Women’s Businesses

The Company negotiated during the second quarter of 2011 an early termination of its license to market sportswear under the Timberland brand. The termination was completed in the second quarter of 2012. In connection with this termination, the Company incurred certain costs related to severance and termination benefits, long-lived asset impairments, contract termination and other costs. All expected costs related to this termination were incurred during 2011.

The Company announced in the fourth quarter of 2011 that it would be exiting the Izod women’s wholesale sportswear business during 2012. The exit was completed in the third quarter of 2012. In connection with this exit, the Company incurred certain costs related to severance and termination benefits. All expected costs related to this exit were incurred during 2011.

The costs associated with both of these activities were as follows:



	Incurred During 2011
Severance, termination benefits and other costs	$	2,027
Long-lived asset impairments	1,062
Contract termination and related costs	5,029
Total	$	8,118

The charges incurred in 2011 relate to selling, general and administrative expenses of the Heritage Brand Wholesale Sportswear segment (see Note 18, “Segment Data”).

Please see Note 9, “Fair Value Measurements,” for a further discussion of the long-lived asset impairments reflected in the above table.

Liabilities for severance and termination benefits and contract termination costs recorded in connection with the Company’s early termination of the license to market sportswear under the Timberland brand and exit from the Izod women’s wholesale sportswear business were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:



	Liability at 1/29/12		Costs Paid During 2012		Liability at 2/3/13
Severance, termination benefits and other costs	$	1,310	$	1,310	$	—
Contract termination and related costs	5,029		5,029		—
Total	$	6,339	$	6,339	$	—

UK and Ireland Van Heusen Exit Costs

In connection with the Company’s exit from its United Kingdom and Ireland Van Heusen dresswear and accessories business during the fourth quarter of 2010, the Company incurred lease termination, severance, termination benefits and other costs and a loss on the liquidation of a foreign operation and disposed of previously recorded goodwill. All expected costs related to this transaction were incurred during 2010. Such costs were as follows:



	Incurred During 2010
Severance, termination benefits and other costs	$	759
Lease termination costs	795
Loss on liquidation of foreign operation	841
Disposal of goodwill	4,157
Total	$	6,552

The charges for severance, termination benefits and other costs, the loss on the liquidation of a foreign operation, lease termination costs and the disposal of goodwill for 2010 were included in selling, general and administrative expenses of the Heritage Brand Wholesale Dress Furnishings segment (see Note 18, “Segment Data”).

All of these costs had been paid by the end of 2011.