ACTIVITY EXIT COSTS

3 Months Ended

May 04, 2014

Notes to Financial Statements [Abstract]

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:



(In millions)	Total Expected to be Incurred		Incurred During the Thirteen Weeks Ended 5/4/14		Cumulative Incurred To Date
Severance, termination benefits and other costs	$	170.0	$	7.4	$	138.9
Inventory liquidation costs	36.1		1.0		36.1
Lease/contract termination and related costs	70.0		6.4		48.4
Total	$	276.1	$	14.8	$	223.4

Of the charges for severance, termination benefits and lease/contract termination and other costs incurred during the thirteen weeks ended May 4, 2014, $2.9 million relate to selling, general and administrative expenses of the Calvin Klein North America segment, $6.5 million relate to selling, general and administrative expenses of the Calvin Klein International segment, $3.6 million relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $0.8 million relate to corporate expenses not allocated to any reportable segment. Inventory liquidation costs incurred during the thirteen weeks ended May 4, 2014 were included in gross margin of the Company’s Calvin Klein North America segment (see Note 18, “Segment Data”).

The liabilities at May 4, 2014 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:



(In millions)	Liability at 2/4/14		Costs Incurred During the Thirteen Weeks Ended 5/4/14		Costs Paid During the Thirteen Weeks Ended 5/4/14		Liability at 5/4/14
Severance, termination benefits and other costs	$	33.6	$	7.4	$	14.4	$	26.6
Lease/contract termination and related costs	15.3		6.4		13.5		8.2
Total	$	48.9	$	13.8	$	27.9	$	34.8

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. Please see Note 18, “Segment Data.”

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details