EXIT ACTIVITY COSTS

Izod Retail Exit Costs

In connection with the Company’s planned exit in 2015 of the Izod retail business, the Company incurred certain costs in 2014 related to severance and termination benefits, long-lived asset and goodwill impairments and lease/contract terminations. Such costs were as follows:



(In millions)	Total Expected to be Incurred		Costs Incurred During 2014		Liability at 2/1/15
Severance, termination benefits and other costs	$	15.8	$	2.4	$	2.3
Long-lived asset and goodwill impairments	17.7		17.7		—
Lease/contract termination and related costs	6.5		—		—
Total	$	40.0	$	20.1	$	2.3

The above charges relate to selling, general and administrative expenses of the Heritage Brands Retail segment. Please see Note 19, “Segment Data” for a further discussion on the Company’s reportable segments.

Please see Note 10, “Fair Value Measurements” and Note 4, “Goodwill and Other Intangible Assets” for a further discussion of the long-lived asset and goodwill impairments reflected in the above table.

The liabilities at February 1, 2015 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets.

Warnaco Integration Costs

In connection with the Company’s acquisition of Warnaco during 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		Costs Incurred During 2013		Costs Incurred During 2014		Cumulative Incurred To Date
Severance, termination benefits and other costs	$	160.0	$	131.5	$	23.7	$	155.2
Inventory liquidation costs	36.1		35.1		1.0		36.1
Lease/contract termination and related costs	80.0		42.0		25.3		67.3
Total	$	276.1	$	208.6	$	50.0	$	258.6

Of the charges for severance, termination benefits and lease/contract termination and other costs incurred during 2014, $7.0 million relate to selling, general and administrative expenses of the Calvin Klein North America segment, $24.7 million relate to selling, general and administrative expenses of the Calvin Klein International segment, $10.3 million relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $7.0 million relate to corporate expenses not allocated to any reportable segment. Of the charges for severance, termination benefits and lease/contract termination and other costs incurred during 2013, $34.2 million relate to selling, general and administrative expenses of the Calvin Klein North America segment, $76.4 million relate to selling, general and administrative expenses of the Calvin Klein International segment, $22.3 million relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $40.6 million relate to corporate expenses not allocated to any reportable segment. 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 2014 and 2013 were principally included in gross margin of the Company’s Calvin Klein North America and Calvin Klein International segments, respectively. Please see Note 19, “Segment Data” for a further discussion on the Company’s reportable segments.

The liabilities at February 1, 2015 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 2014		Costs Paid During 2014		Liability at 2/1/15
Severance, termination benefits and other costs	$	33.6	$	23.7	$	43.3	$	14.0
Lease/contract termination and related costs	15.3		25.3		33.0		7.6
Total	$	48.9	$	49.0	$	76.3	$	21.6

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:



(In millions)	Incurred During 2012		Cumulative Incurred
Severance, termination benefits and other costs	$	1.3	$	33.5
Long-lived asset impairments	0.3		11.3
Inventory liquidation costs	—		10.2
Lease/contract termination and related costs	11.5		39.2
Total	$	13.1	$	94.2

Of the charges for severance, termination benefits, asset impairments and lease/contract termination and other costs incurred in 2012, $0.4 million relate to selling, general and administrative expenses of the Tommy Hilfiger North America segment, $10.4 million relate to selling, general and administrative expenses of the Tommy Hilfiger International segment and $2.3 million relate to corporate expenses not allocated to any reportable segment. Please see Note 19, “Segment Data” for a further discussion on the Company’s reportable segments.

Substantially all of these costs had been paid by February 2, 2014.