SEGMENT DATA

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 and specialty stores; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and an e-commerce website in the United States, 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, Calvin Klein (platinum label) and Calvin Klein (white label) 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, franchisees of Calvin Klein, distributors and licensees; (ii) operating retail stores and e-commerce websites 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, Calvin Klein (platinum label) and Calvin Klein (white label) for a broad array of products and retail services outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Calvin Klein foreign affiliates in Australia and India.

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 Hudson’s Bay; and (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and an e-commerce website, 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, franchisees of Tommy Hilfiger, distributors and licensees; and (ii) operating retail stores in Europe and Japan and an international e-commerce website, 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 in Brazil, China and India. 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, chain and specialty stores in North America of (i) dress shirts, neckwear and underwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear principally 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 located 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 outlet stores. During the fourth quarter of 2014, the Company announced its plan to exit its Izod retail business in 2015.

The following tables present summarized information by segment:



(In millions)	2014		2013			2012
Revenue – Calvin Klein North America
Net sales	$	1,391.1	$	1,316.8		$	714.8
Royalty revenue	115.6		113.9			137.0
Advertising and other revenue	44.1		41.9			55.3
Total	1,550.8		1,472.6			907.1

Revenue – Calvin Klein International
Net sales	1,198.8		1,186.9		⁽¹⁾	45.1
Royalty revenue	78.6		76.8			140.4
Advertising and other revenue	30.6		30.3			57.7
Total	1,308.0		1,294.0			243.2

Revenue – Tommy Hilfiger North America
Net sales	1,595.6		1,505.6			1,399.3
Royalty revenue	30.2		27.6			22.4
Advertising and other revenue	10.0		9.0			8.1
Total	1,635.8		1,542.2			1,429.8

Revenue – Tommy Hilfiger International
Net sales	1,886.1		1,834.9			1,732.2
Royalty revenue	56.2		51.7			50.0
Advertising and other revenue	3.7		4.5			5.0
Total	1,946.0		1,891.1			1,787.2

Revenue – Heritage Brands Wholesale
Net sales	1,425.1		1,420.3			991.8
Royalty revenue	17.2		16.4			15.4
Advertising and other revenue	2.7		2.8			4.9
Total	1,445.0		1,439.5			1,012.1

Revenue – Heritage Brands Retail
Net sales	352.4		541.7		⁽²⁾	657.6		⁽²⁾
Royalty revenue	2.7		4.3			4.8
Advertising and other revenue	0.5		1.0			1.2
Total	355.6		547.0			663.6

Total Revenue
Net sales	7,849.1		7,806.2			5,540.8
Royalty revenue	300.5		290.7			370.0
Advertising and other revenue	91.6		89.5			132.2
Total⁽³⁾	$	8,241.2	$	8,186.4		$	6,043.0


⁽¹⁾	Includes $30.0 million of sales returns from certain wholesale customers in Asia in connection with the Company’s initiative to reduce excess inventory levels.

⁽²⁾Includes net sales of $175.6 million and $269.2 million in 2013 and 2012, respectively, related to the Bass business, which was sold in the fourth quarter of 2013.


⁽³⁾	No single customer accounted for more than 10% of the Company’s revenue in 2014, 2013 and 2012.



(In millions)	2014				2013				2012
Income before interest and taxes – Calvin Klein North America	$	225.6		⁽²⁾	$	167.0		⁽⁶⁾	$	182.1

Income (loss) before interest and taxes – Calvin Klein International	118.7			⁽²⁾⁽⁴⁾	(60.7		)	⁽⁶⁾	102.5

Income before interest and taxes – Tommy Hilfiger North America	242.9				242.5			⁽⁸⁾	200.1			⁽¹⁰⁾

Income before interest and taxes – Tommy Hilfiger International	261.2				260.5			⁽⁸⁾	220.8			⁽¹⁰⁾

Income before interest and taxes – Heritage Brands Wholesale	96.6			⁽²⁾	114.4			⁽⁶⁾	101.1

(Loss) income before interest and taxes – Heritage Brands Retail	(24.8		)	⁽³⁾	(24.4		)	⁽⁷⁾	13.5

Loss before interest and taxes – Corporate⁽¹⁾	(390.3		)	⁽²⁾⁽⁵⁾	(185.9		)	⁽⁶⁾⁽⁹⁾	(159.8		)	^(10)(11)

Income before interest and taxes	$	529.9			$	513.4			$	660.3

⁽¹⁾

Includes corporate expenses not allocated to any reportable segments, as well as the Company’s proportionate share of the net income or loss of its investment in Kingdom Holding 1 B.V., the parent company of the Karl Lagerfeld brand. 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) gains from the Company’s pension and other postretirement plans totaled $(138.9) million, $52.5 million and $(28.1) million in 2014, 2013 and 2012, respectively.

⁽²⁾

Income (loss) before interest and taxes for 2014 includes costs of $139.4 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $14.0 million in Calvin Klein North America; $51.1 million in Calvin Klein International; $17.7 million in Heritage Brands Wholesale and $56.6 million in corporate expenses not allocated to any reportable segments.


⁽³⁾	Loss before interest and taxes for 2014 includes costs of $21.0 million associated with the exit of the Company’s Izod retail business, the majority of which was noncash impairment charges.


⁽⁴⁾	Income before interest and taxes for 2014 includes a net gain of $8.0 million associated with the deconsolidation of certain Calvin Klein subsidiaries in Australia and the Company’s previously consolidated Calvin Klein joint venture in India. Please refer to Note 5, “Investments in Unconsolidated Affiliates” and Note 6, “Redeemable Non-Controlling Interest” for a further discussion.


⁽⁵⁾	Loss before interest and taxes for 2014 includes costs of $93.1 million associated with the Company’s amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8% senior notes due 2020. Please refer to Note 7, “Debt,” for a further discussion.

⁽⁶⁾

Income (loss) before interest and taxes for 2013 includes costs of $469.7 million 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: $87.7 million in Calvin Klein North America; $237.5 million in Calvin Klein International; $43.9 million in Heritage Brands Wholesale and $100.6 million in corporate expenses not allocated to any reportable segments.


⁽⁷⁾	Loss before interest and taxes for 2013 includes a loss of $20.2 million associated with the sale of substantially all of the assets of the Company’s Bass business.

⁽⁸⁾

Income before interest and taxes for 2013 includes income of $24.3 million 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 $24.3 million. Such income was included in the Company’s segments as follows: $12.0 million in Tommy Hilfiger North America and $12.3 million in Tommy Hilfiger International.


⁽⁹⁾	Loss before interest and taxes for 2013 includes costs of $40.4 million associated with the Company’s debt modification and extinguishment. Please refer to Note 7, “Debt,” for a further discussion.

⁽¹⁰⁾

Income (loss) before interest and taxes for 2012 includes costs of $20.5 million associated with the Company’s integration of Tommy Hilfiger and the related restructuring. Such costs were included in the Company’s segments as follows: $0.4 million in Tommy Hilfiger North America; $15.4 million in Tommy Hilfiger International and $4.7 million in corporate expenses not allocated to any reportable segments.

⁽¹¹⁾ Loss before interest and taxes for 2012 includes costs of $42.6 million associated with the Company’s acquisition of Warnaco.

Intersegment transactions primarily 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.



(In millions)	2014		2013		2012
Identifiable Assets
Calvin Klein North America	$	1,834.9	$	1,792.1	$	752.0
Calvin Klein International	2,819.9		2,975.7		584.9
Tommy Hilfiger North America	1,258.6		1,207.2		1,139.4
Tommy Hilfiger International	3,255.8		3,741.4		3,420.8
Heritage Brands Wholesale	1,342.7		1,399.5		555.6
Heritage Brands Retail	91.9		128.2		175.7
Corporate	328.0		331.5		1,103.3		⁽¹⁾
Total	$	10,931.8	$	11,575.6	$	7,731.7
Depreciation and Amortization
Calvin Klein North America	$	38.0	$	61.8	$	16.5
Calvin Klein International	58.6		100.9		2.3
Tommy Hilfiger North America	31.9		29.5		26.4
Tommy Hilfiger International	87.4		82.6		72.6
Heritage Brands Wholesale	14.6		19.0		7.1
Heritage Brands Retail	7.2		11.2		10.7
Corporate	7.0		8.6		4.8
Total	$	244.7	$	313.6	$	140.4
Identifiable Capital Expenditures⁽²⁾
Calvin Klein North America	$	52.1	$	35.5	$	32.6
Calvin Klein International	49.9		42.7		3.1
Tommy Hilfiger North America	38.9		47.0		47.0
Tommy Hilfiger International	93.2		91.7		88.4
Heritage Brands Wholesale	10.2		7.4		5.1
Heritage Brands Retail	8.2		14.3		28.1
Corporate	6.7		7.9		4.7
Total	$	259.2	$	246.5	$	209.0


⁽¹⁾	Corporate at February 3, 2013 included $700.0 million of cash that arose from senior notes that were issued to fund a portion of the consideration for the Warnaco acquisition.


⁽²⁾	Capital expenditures in 2014 include $17.0 million of accruals that will not be paid until 2015. Capital expenditures in 2013 include $13.6 million of accruals that were not paid until 2014. Capital expenditures in 2012 include $4.2 million of accruals that were not paid until 2013.

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



(In millions)	2014		2013		2012
Domestic	$	388.6	$	373.1	$	321.2
Canada	38.3		36.8		41.9
Europe	230.2		224.2		171.6
Asia	53.1		63.9		26.6
Other foreign	15.5		14.1		—
Total	$	725.7	$	712.1	$	561.3

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



(In millions)	2014		2013		2012
Domestic	$	4,404.8	$	4,433.9	$	3,662.1
Canada	468.5		454.0		329.7
Europe	2,304.9		2,261.4		1,643.9
Asia	779.3		742.3		355.0
Other foreign	283.7		294.8		52.3
Total	$	8,241.2	$	8,186.4	$	6,043.0