SEGMENT DATA

The acquisition of Warnaco significantly impacted the way the Company and its chief operating decision maker manage and analyze its operating results. As such, the Company changed its reportable segments beginning with the first quarter of 2013. 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 presented as six reportable segments: (i) Calvin Klein North America; (ii) Calvin Klein International; (iii) Tommy Hilfiger North America; (iv) Tommy Hilfiger International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail.

Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in North America, primarily to department, mid-tier department and specialty stores; (ii) operating retail stores, which are primarily located in outlet centers, and an e-commerce website for North American customers, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the brand names Calvin Klein Collection, ck Calvin Klein (in the process of being changed to Calvin Klein on a platinum label) and Calvin Klein for a broad array of products and retail services in North America.

Calvin Klein International Segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale principally in Europe, Asia and Brazil, primarily to department and specialty stores and franchise operators of Calvin Klein stores, and through distributors; (ii) operating retail stores in Europe, Asia and Brazil, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the brand names Calvin Klein Collection, ck Calvin Klein (in the process of being changed to Calvin Klein on a platinum label) and Calvin Klein for a broad array of products and retail services outside of North America.

Tommy Hilfiger North America Segment - This segment consists of the Company’s Tommy Hilfiger North America division. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale in North America, primarily to department stores, principally Macy’s; and (ii) operating retail stores and an e-commerce website for North American customers, which sell Tommy Hilfiger branded apparel, accessories and related products. This segment also derives revenue from licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products in North America.

Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. 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. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Tommy Hilfiger foreign affiliates. This segment also derives revenue from licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products outside of North America.

Heritage Brands Wholesale Segment - This segment consists of the Company’s heritage brands wholesale division. This segment derives revenue primarily from the marketing to department, mid-tier department and specialty stores in North America of: (i) dress shirts and neckwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear under the brand names Van Heusen, IZOD and ARROW; (iii) swimwear, fitness apparel, swim accessories and related products under the brand name Speedo beginning in the first quarter of 2013; and (iv) women’s intimate apparel under the brand names Warner’s and Olga beginning in the first quarter of 2013. 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 Brands Retail Segment - This segment consists of the Company’s Heritage Brands retail division. This segment derives revenue principally from operating retail stores, primarily in outlet centers in North America, which sell apparel, accessories and related products under the brand names Van Heusen and IZOD. This segment also derived revenue through the third quarter of 2013 under the brand names Bass and G.H. Bass & Co., principally from operating retail stores.

The following tables present summarized information by segment:



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	11/3/13		10/28/12		11/3/13				10/28/12
Revenue – Calvin Klein North America
Net sales	$	384,010	$	195,659	$	1,009,469			$	508,179
Royalty revenue	38,097		41,970		86,123				102,169
Advertising and other revenue	15,065		16,685		31,784				42,760
Total	437,172		254,314		1,127,376				653,108

Revenue – Calvin Klein International
Net sales	333,916		13,191		875,256		⁽¹	⁾	35,060
Royalty revenue	19,961		36,918		54,110				101,438
Advertising and other revenue	8,648		15,224		21,398				43,391
Total	362,525		65,333		950,764				179,889

Revenue – Tommy Hilfiger North America
Net sales	411,395		376,267		1,106,152				999,729
Royalty revenue	8,383		6,553		20,907				16,178
Advertising and other revenue	2,546		2,429		6,752				6,401
Total	422,324		385,249		1,133,811				1,022,308

Revenue – Tommy Hilfiger International
Net sales	483,718		433,721		1,355,989				1,263,066
Royalty revenue	13,505		13,434		38,068				36,792
Advertising and other revenue	1,113		1,210		3,465				3,719
Total	498,336		448,365		1,397,522				1,303,577

Revenue – Heritage Brands Wholesale
Net sales	373,125		313,197		1,056,234				750,815
Royalty revenue	3,946		3,784		12,096				11,623
Advertising and other revenue	716		1,398		2,082				3,755
Total	377,787		318,379		1,070,412				766,193

Revenue – Heritage Brands Retail
Net sales	159,001		169,407		449,549				477,062
Royalty revenue	1,551		1,285		3,767				3,717
Advertising and other revenue	429		438		931				945
Total	160,981		171,130		454,247				481,724

Total Revenue
Net sales	2,145,165		1,501,442		5,852,649				4,033,911
Royalty revenue	85,443		103,944		215,071				271,917
Advertising and other revenue	28,517		37,384		66,412				100,971
Total	$	2,259,125	$	1,642,770	$	6,134,132			$	4,406,799


⁽¹⁾	Includes $30,000 of sales returns for certain Warnaco wholesale customers in Asia in connection with the Company’s initiative to reduce excess inventory levels.



	Thirteen Weeks Ended								Thirty-Nine Weeks Ended
	11/3/13				10/28/12				11/3/13				10/28/12
Income before interest and taxes – Calvin Klein North America	$	71,163		⁽²⁾	$	61,933			$	123,097		⁽⁵⁾	$	134,423

Income (loss) before interest and taxes – Calvin Klein International	41,199			⁽²⁾	30,452				(63,833		)	⁽⁵⁾	76,455

Income before interest and taxes – Tommy Hilfiger North America	79,573			⁽⁴⁾	66,117				187,543			⁽⁴⁾	147,630			⁽⁹⁾

Income before interest and taxes – Tommy Hilfiger International	87,980			⁽⁴⁾	62,583			⁽⁷⁾	197,981			⁽⁴⁾	177,176			⁽⁹⁾

Income before interest and taxes – Heritage Brands Wholesale	33,560			⁽²⁾	42,923				91,064			⁽⁵⁾	76,960

(Loss) income before interest and taxes – Heritage Brands Retail	(19,531		)	⁽³⁾	4,357				(22,321		)	⁽³⁾	11,067

Loss before interest and taxes – Corporate⁽¹⁾	(44,620		)	⁽²⁾	(27,227		)	⁽⁷⁾⁽⁸⁾	(183,989		)	⁽⁵⁾⁽⁶⁾	(73,237		)	⁽⁸⁾⁽⁹⁾

Income before interest and taxes	$	249,324			$	241,138			$	329,542			$	550,474


⁽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, information technology related to corporate infrastructure and actuarial gains and losses from the Company’s pension and other postretirement plans.

⁽²⁾

Income (loss) before interest and taxes for the thirteen weeks ended November 3, 2013 includes costs of $61,042 associated with the Company’s acquisition and integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $10,509 in Calvin Klein North America; $21,315 in Calvin Klein International; $8,252 in Heritage Brands Wholesale and $20,966 in corporate expenses not allocated to any reportable segments.


⁽³⁾	Loss before interest and taxes for the thirteen and thirty-nine weeks ended November 3, 2013 includes a loss of $19,453 associated with the sale of substantially all of the assets of the Company’s Bass division.

⁽⁴⁾

Income before interest and taxes for the thirteen and thirty-nine weeks ended November 3, 2013 includes income of $24,309 related to the amendment of an unfavorable contract. At the time of the Tommy Hilfiger acquisition in 2010, a liability was recorded for such unfavorable contract. The amendment executed in the third quarter of 2013 adjusted the contract terms thereby reducing the amount by which the contract was unfavorable and resulted in a reduction of the liability, amounting to $24,309. Such income was included in the Company’s segments as follows: $12,000 in Tommy Hilfiger North America and $12,309 in Tommy Hilfiger International.

⁽⁵⁾

Income (loss) before interest and taxes for the thirty-nine weeks ended November 3, 2013 includes costs of $395,035 associated with the Company’s acquisition and integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $79,243 in Calvin Klein North America; $206,783 in Calvin Klein International; $37,022 in Heritage Brands Wholesale and $71,987 in corporate expenses not allocated to any reportable segments.


⁽⁶⁾	Loss before interest and taxes for the thirty-nine weeks ended November 3, 2013 includes costs of $40,395 associated with the Company’s debt modification and extinguishment. Please refer to Note 9, “Debt,” for a further discussion.


⁽⁷⁾	Income (loss) before interest and taxes for the thirteen weeks ended October 28, 2012 includes costs of $6,561 associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $6,301 in Tommy Hilfiger International and $260 in corporate expenses not allocated to any reportable segments.


⁽⁸⁾	Loss before interest and taxes for the thirteen and thirty-nine weeks ended October 28, 2012 includes costs of $6,412 associated with the Company’s acquisition of Warnaco.

⁽⁹⁾

Income (loss) before interest and taxes for the thirty-nine weeks ended October 28, 2012 includes costs of $14,418 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; $9,798 in Tommy Hilfiger International and $4,241 in corporate expenses not allocated to any reportable segments.

Intersegment transactions consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment and the Calvin Klein North America segment.

The following table presents the Company’s total assets by segment:



Identifiable Assets	11/3/13		2/3/13		10/28/12
Calvin Klein North America	$	1,955,924	$	752,029	$	782,965
Calvin Klein International	3,297,912		584,860		588,220
Tommy Hilfiger North America	1,262,835		1,137,404		1,203,486
Tommy Hilfiger International	3,190,428		3,278,813		3,062,064
Heritage Brands Wholesale	1,395,179		555,544		631,185
Heritage Brands Retail⁽¹⁾	181,144		175,717		200,073
Corporate⁽²⁾	368,198		1,297,182		517,978
Total	$	11,651,620	$	7,781,549	$	6,985,971

⁽¹⁾ Heritage Brands Retail at November 3, 2013 included $47,454 of assets classified as held for sale in connection with the sale of substantially all of the assets of the Company’s Bass division, which closed on November 4, 2013, the first day of the fourth quarter of 2013.

⁽²⁾ Corporate at February 3, 2013 included $700,000 of cash that arose from senior notes that were issued to fund a portion of the consideration for the Warnaco acquisition.