ACTIVITY EXIT COSTS

Warnaco Integration Costs

In connection with the Company’s acquisition of Warnaco during the first quarter of 2013 and the related integration, the Company incurred certain costs related to severance and termination benefits, inventory liquidations and lease/contract terminations. Such costs were as follows:



	Total Expected to be Incurred		Incurred During 2013		Liability at 2/2/14
Severance, termination benefits and other costs	$	170,000	$	131,543	$	33,644
Inventory liquidation costs	35,112		35,112		—
Lease/contract termination and related costs	65,000		41,998		15,340
Total	$	270,112	$	208,653	$	48,984

Of the charges for severance, termination benefits and lease/contract termination and other costs incurred during 2013, $34,246 relate to selling, general and administrative expenses of the Calvin Klein North America segment, $76,445 relate to selling, general and administrative expenses of the Calvin Klein International segment, $22,254 relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $40,596 relate to corporate expenses not allocated to any reportable segment. The liabilities at February 2, 2014 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets. The remaining charges for severance and termination benefits and lease/contract termination and other costs expected to be incurred relate principally to the aforementioned segments and corporate expenses not allocated to any reportable segment. Inventory liquidation costs incurred during 2013 were principally included in gross profit of the Calvin Klein International segment. Please see Note 19, “Segment Data.”

Tommy Hilfiger Integration and Exit Costs

In connection with the Company’s acquisition and integration of Tommy Hilfiger and the related restructuring, 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 and the related restructuring were incurred by the end of 2012. Such costs were as follows:



	Incurred During 2011		Incurred During 2012		Cumulative Incurred
Severance, termination benefits and other costs	$	12,415	$	1,320	$	33,528
Long-lived asset impairments	—		259		11,276
Inventory liquidation costs	7,627		—		10,210
Lease/contract termination and related costs	24,462		11,546		39,173
Total	$	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. Inventory liquidation costs for 2011 were included in cost of goods sold of the Tommy Hilfiger North America segment (see Note 19, “Segment Data”).

Please see Note 10, “Fair Value Measurements,” for a further discussion of the long-lived asset impairments reflected in the above table.

Liabilities recorded in connection with the acquisition and integration of Tommy Hilfiger and the related restructuring were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets. Liabilities for severance, termination benefits and other costs at February 3, 2013 totaled $763 and liabilities for lease/contract termination and related costs at February 3, 2013 totaled $2,013. Substantially all of these costs had been paid by February 2, 2014.

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 Brands Wholesale segment (see Note 19, “Segment Data”).

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. All of these costs had been paid by the end of 2012.