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 in North America under the brand names Van Heusen, ARROW, IZOD, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, Donald J. Trump Signature Collection, 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 in North America men’s sportswear under the brand names Van Heusen, IZOD and ARROW to department, mid-tier department and specialty stores. This segment also derived revenue through the second quarter of 2012 from marketing men’s sportswear under the brand name Timberland and through the third quarter of 2012 from marketing women’s sportswear under the brand name IZOD.

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 North America, 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 North America, primarily to department stores; and (ii) operating retail stores and an e-commerce website in and for North America, 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 investments in 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 in Europe and Japan, as well as operating an international e-commerce site, 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 principally in North America from the Company’s marketing at wholesale of apparel and related products under the brand name 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.

The following tables present summarized information by segment:



	2012		2011		2010
Revenue – Heritage Brand Wholesale Dress Furnishings
Net sales	$	523,795	$	564,898	$	523,901
Royalty revenue	5,576		6,158		5,815
Advertising and other revenue	2,875		2,169		2,689
Total	532,246		573,225		532,405

Revenue – Heritage Brand Wholesale Sportswear
Net sales	467,986		537,284		568,447
Royalty revenue	9,901		10,008		10,731
Advertising and other revenue	1,997		1,687		1,764
Total	479,884		548,979		580,942

Revenue – Heritage Brand Retail
Net sales	657,556		646,769		638,902
Royalty revenue	4,771		4,822		5,023
Advertising and other revenue	1,186		772		842
Total	663,513		652,363		644,767

Revenue – Calvin Klein Licensing
Net sales	34,971		45,796		38,326
Royalty revenue	277,369		273,002		244,891
Advertising and other revenue	113,064		108,588		97,530
Total	425,404		427,386		380,747

Revenue – Tommy Hilfiger North America
Net sales	1,399,323		1,273,829		889,630
Royalty revenue	22,364		16,850		11,558
Advertising and other revenue	8,073		7,016		3,257
Total	1,429,760		1,297,695		904,445

Revenue – Tommy Hilfiger International
Net sales	1,732,228		1,703,582		1,007,776
Royalty revenue	50,038		45,195		28,690
Advertising and other revenue	4,964		4,329		4,319
Total	1,787,230		1,753,106		1,040,785

Revenue – Other (Calvin Klein Apparel)
Net sales	724,962		637,870		552,757
Total	724,962		637,870		552,757

Total Revenue
Net sales	5,540,821		5,410,028		4,219,739
Royalty revenue	370,019		356,035		306,708
Advertising and other revenue	132,159		124,561		110,401
Total⁽¹⁾	$	6,042,999	$	5,890,624	$	4,636,848



	2012				2011			⁽¹¹⁾	2010			⁽¹¹⁾
Income before interest and taxes – Heritage Brand Wholesale Dress Furnishings	$	66,204			$	78,400			$	66,181		⁽⁹⁾

Income before interest and taxes – Heritage Brand Wholesale Sportswear	34,883				11,327			⁽⁵⁾	57,726

Income before interest and taxes – Heritage Brand Retail	13,498				28,731				44,610

Income before interest and taxes – Calvin Klein Licensing	194,747				189,105				174,488

Income before interest and taxes – Tommy Hilfiger North America	200,121			⁽³⁾	81,142			⁽⁶⁾	37,554			⁽¹⁰⁾

Income before interest and taxes – Tommy Hilfiger International	220,812			⁽³⁾	200,697			^{(6) (7)}	51,653			⁽¹⁰⁾

Income before interest and taxes – Other (Calvin Klein Apparel)	89,921				88,700				72,728

Loss before interest and taxes – Corporate⁽²⁾	(159,824		)	^{(3) (4)}	(186,929		)	^{(6) (8)}	(301,910		)	⁽¹⁰⁾

Income before interest and taxes	$	660,362			$	491,173			$	203,030


⁽¹⁾	Macy’s, Inc. accounted for 8.7%, 9.4% and 10.1% of the Company’s revenue in 2012, 2011 and 2010, 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 pension and other postretirement plans. Actuarial losses from the Company’s pension and other postretirement plans totaled $28,142, $76,120 and $4,534 in 2012, 2011 and 2010, respectively.


⁽³⁾	Income (loss) before interest and taxes for 2012 includes costs of $20,525 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $379 in Tommy Hilfiger North America; $15,441 in Tommy Hilfiger International and $4,705 in corporate expenses not allocated to any reportable segments.


⁽⁴⁾	Loss before interest and taxes for 2012 includes costs of $42,579 associated with the Company’s acquisition of Warnaco, which closed on February 13, 2013.


⁽⁵⁾	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 and its exit of the Izod women’s wholesale sportswear business.


⁽⁶⁾	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.


⁽⁷⁾	Income before interest and taxes for 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 2, “Acquisitions,” for a further discussion.


⁽⁸⁾	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.


⁽⁹⁾	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.

⁽¹⁰⁾

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.

⁽¹¹⁾

In the fourth quarter of 2012, the Company changed its method of accounting for its pension and other postretirement plans to (i) calculate expected return on plan assets using the fair value of plan assets; and (ii) immediately recognize actuarial gains and losses in its operating results in the year in which they occur, as detailed in Note 1, “Summary of Significant Accounting Policies.” All periods presented have been retrospectively adjusted to reflect the effect of these accounting changes.

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.



	2012		2011		2010
Identifiable Assets
Heritage Brand Wholesale Dress Furnishings	$	315,656	$	312,800	$	296,299
Heritage Brand Wholesale Sportswear	310,394		301,935		297,780
Heritage Brand Retail	128,805		118,256		98,496
Calvin Klein Licensing	1,153,607		1,102,980		1,014,231
Tommy Hilfiger North America	1,112,342		1,152,019		1,168,558
Tommy Hilfiger International	3,281,916		3,097,140		3,205,394
Other (Calvin Klein Apparel)	197,418		140,186		144,492
Corporate	1,281,411		527,045		559,100
Total	$	7,781,549	$	6,752,361	$	6,784,350
Depreciation and Amortization
Heritage Brand Wholesale Dress Furnishings	$	4,866	$	5,672	$	6,003
Heritage Brand Wholesale Sportswear	2,203		3,233		5,084
Heritage Brand Retail	10,705		9,592		9,905
Calvin Klein Licensing	3,507		3,203		2,785
Tommy Hilfiger North America	26,364		28,093		31,527
Tommy Hilfiger International	72,632		63,447		72,339
Other (Calvin Klein Apparel)	15,263		13,539		13,563
Corporate	4,816		5,231		5,931
Total	$	140,356	$	132,010	$	147,137
Identifiable Capital Expenditures⁽¹⁾
Heritage Brand Wholesale Dress Furnishings	$	2,854	$	4,676	$	3,768
Heritage Brand Wholesale Sportswear	2,204		3,923		3,285
Heritage Brand Retail	28,131		18,602		9,411
Calvin Klein Licensing	4,935		6,632		3,096
Tommy Hilfiger North America	47,027		29,974		22,172
Tommy Hilfiger International	88,348		82,604		42,949
Other (Calvin Klein Apparel)	30,799		17,883		13,109
Corporate	4,654		7,613		6,014
Total	$	208,952	$	171,907	$	103,804


⁽¹⁾	Capital expenditures in 2012 include $4,184 of accruals that will not be paid until 2013. Capital expenditures in 2011 include $5,786 of accruals that were not paid until 2012. Capital expenditures in 2010 include $3,720 of accruals that were not paid until 2011.

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



	2012		2011		2010
Domestic	$	321,247	$	263,008	$	234,677
Canada	41,850		38,912		39,033
Europe	171,647		137,010		116,874
Other foreign	26,591		19,961		13,993
Total	$	561,335	$	458,891	$	404,577

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



	2012		2011		2010
Domestic	$	3,662,150	$	3,558,540	$	3,114,424
Canada	329,674		302,103		237,383
Europe	1,643,875		1,588,926		974,380
Other foreign	407,300		441,055		310,661
Total	$	6,042,999	$	5,890,624	$	4,636,848