SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

9 Months Ended

Oct. 01, 2011

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

        Certain of our subsidiaries function as co-issuers (fully and unconditionally guaranteed on a joint and several basis) of the outstanding debt of The Jones Group Inc. ("Jones"), including Jones Apparel Group, USA, Inc. ("Jones USA"), Jones Apparel Group Holdings, Inc. ("Jones Holdings") and JAG Footwear, Accessories and Retail Corporation ("JAG Footwear").

        The following condensed consolidating balance sheets, statements of operations and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets

(In millions)

		October 1, 2011												December 31, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents	$	29.0		$	32.2		$	-		$	61.2		$	163.0		$	37.8	$	-		$	200.8
	Accounts receivable		315.8			175.1			-			490.9			210.2			135.4		-			345.6
	Inventories		312.0			243.7			(0.5	)		555.2			289.4			176.5		-			465.9
	Prepaid and refundable income taxes		3.7			0.2			5.2			9.1			3.3			0.1		15.3			18.7
	Deferred taxes		17.9			14.4			-			32.3			15.1			12.9		-			28.0
	Prepaid expenses and other current assets		22.1			17.0			-			39.1			22.1			10.0		-			32.1
	TOTAL CURRENT ASSETS		700.5			482.6			4.7			1,187.8			703.1			372.7		15.3			1,091.1
Property, plant and equipment - net			70.7			199.8			-			270.5			75.1			151.3		-			226.4
Due from affiliates			-			1,529.8			(1,529.8	)		-			-			1,512.4		(1,512.4	)		-
Goodwill			46.7			209.5			-			256.2			46.7			115.1		-			161.8
Other intangibles - net			7.1			928.1			-			935.2			7.7			719.0		-			726.7
Deferred taxes			79.4			-			(79.4	)		-			84.2			-		(84.2	)		-
Other assets			84.2			20.1			-			104.3			68.7			17.5		-			86.2
Investments in and loans to affiliates			3,017.1			42.2			(3,017.1	)		42.2			2,677.5			40.2		(2,677.5	)		40.2
	TOTAL ASSETS	$	4,005.7		$	3,412.1		$	(4,621.6	)	$	2,796.2		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
	Short-term borrowings	$	55.0		$	-		$	-		$	55.0		$	-		$	-	$	-		$	-
	Current portion of long-term debt and capital lease obligations		-			2.0			-			2.0			-			1.8		-			1.8
	Current portion of acquisition consideration payable		20.8			1.4			-			22.2			14.1			-		-			14.1
	Accounts payable		140.6			90.8			-			231.4			145.9			67.5		-			213.4
	Income taxes payable		-			15.0			(14.6	)		0.4			-			4.4		(4.4	)		-
	Accrued expenses and other current liabilities		72.6			62.1			-			134.7			85.5			56.9		-			142.4
	TOTAL CURRENT LIABILITIES		289.0			171.3			(14.6	)		445.7			245.5			130.6		(4.4	)		371.7
NONCURRENT LIABILITIES:
	Long-term debt		833.0			0.2			-			833.2			509.7			0.2		-			509.9
	Obligations under capital leases		-			23.8			-			23.8			-			25.2		-			25.2
	Deferred taxes		-			178.7			(85.5	)		93.2			-			72.1		(71.8	)		0.3
	Income taxes payable		8.8			-			-			8.8			6.3			-		-			6.3
	Acquisition consideration payable		190.6			-			-			190.6			199.9			1.4		-			201.3
	Due to affiliates		1,529.8			-			(1,529.8	)		-			1,512.4			-		(1,512.4	)		-
	Other		59.0			22.2			-			81.2			57.0			22.4		-			79.4
	TOTAL NONCURRENT LIABILITIES		2,621.2			224.9			(1,615.3	)		1,230.8			2,285.3			121.3		(1,584.2	)		822.4
	TOTAL LIABILITIES		2,910.2			396.2			(1,629.9	)		1,676.5			2,530.8			251.9		(1,588.6	)		1,194.1
EQUITY:
	Common stock and additional paid-in capital		519.9			2,340.5			(2,340.5	)		519.9			542.8			2,096.2		(2,096.2	)		542.8
	Retained earnings		597.4			683.6			(659.6	)		621.4			597.8			574.9		(568.9	)		603.8
	Accumulated other comprehensive (loss) income		(21.8	)		(8.4	)		8.4			(21.8	)		(8.4	)		5.1		(5.1	)		(8.4	)
	Total Jones stockholders' equity		1,095.5			3,015.7			(2,991.7	)		1,119.5			1,132.2			2,676.2		(2,670.2	)		1,138.2
	Noncontrolling interest		-			0.2			-			0.2			-			0.1		-			0.1
	TOTAL EQUITY		1,095.5			3,015.9			(2,991.7	)		1,119.7			1,132.2			2,676.3		(2,670.2	)		1,138.3
	TOTAL LIABILITIES AND EQUITY	$	4,005.7		$	3,412.1		$	(4,621.6	)	$	2,796.2		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended October 1, 2011										Fiscal Quarter Ended October 2, 2010
		Issuers			Others		Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	665.0		$	371.1	$	(6.0	)	$	1,030.1	$	683.5		$	330.1		$	(3.7	)	$	1,009.9
Licensing income		-			12.7		-			12.7		-			12.0			-			12.0
Other revenues		0.2			-		-			0.2		0.2			-			-			0.2
Total revenues		665.2			383.8		(6.0	)		1,043.0		683.7			342.1			(3.7	)		1,022.1
Cost of goods sold		443.9			230.3		(3.1	)		671.1		458.5			221.8			(0.8	)		679.5
Gross profit		221.3			153.5		(2.9	)		371.9		225.2			120.3			(2.9	)		342.6
Selling, general and administrative expenses		227.2			86.9		(2.6	)		311.5		235.2			50.0			(2.7	)		282.5
Operating (loss) income		(5.9	)		66.6		(0.3	)		60.4		(10.0	)		70.3			(0.2	)		60.1
Net interest expense (income) and financing costs		0.7			-		-			0.7		15.5			(1.3	)		-			14.2
Equity in income of unconsolidated affiliate		-			0.5		-			0.5		-			0.5			-			0.5
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(6.6	)		67.1		(0.3	)		60.2		(25.5	)		72.1			(0.2	)		46.4
Provision (benefit) for income taxes		3.6			33.9		(18.5	)		19.0		(7.5	)		24.8			(0.1	)		17.2
Equity in earnings of subsidiaries		33.1			-		(33.1	)		-		47.2			-			(47.2	)		-
Net income		22.9			33.2		(14.9	)		41.2		29.2			47.3			(47.3	)		29.2
Less: income attributable to noncontrolling interest		-			0.2		-			0.2		-			0.1			-			0.1
Income attributable to Jones	$	22.9		$	33.0	$	(14.9	)	$	41.0	$	29.2		$	47.2		$	(47.3	)	$	29.1

	Fiscal Nine Months Ended October 1, 2011											Fiscal Nine Months Ended October 2, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,840.0		$	1,031.4		$	(15.5	)	$	2,855.9	$	1,915.5		$	830.0		$	(10.5	)	$	2,735.0
Licensing income		0.1			35.0			-			35.1		-			33.3			-			33.3
Other revenues		0.7			-			-			0.7		0.6			-			-			0.6
Total revenues		1,840.8			1,066.4			(15.5	)		2,891.7		1,916.1			863.3			(10.5	)		2,768.9
Cost of goods sold		1,208.5			664.4			(6.8	)		1,866.1		1,225.3			560.3			(2.7	)		1,782.9
Gross profit		632.3			402.0			(8.7	)		1,025.6		690.8			303.0			(7.8	)		986.0
Selling, general and administrative expenses		675.1			192.3			(8.2	)		859.2		690.4			111.6			(7.7	)		794.3
Operating (loss) income		(42.8	)		209.7			(0.5	)		166.4		0.4			191.4			(0.1	)		191.7
Net interest expense (income) and financing costs		61.3			(2.5	)		-			58.8		44.6			(4.1	)		-			40.5
Equity in income (loss) of unconsolidated affiliate		-			2.6			-			2.6		-			(1.3	)		-			(1.3	)
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(104.1	)		214.8			(0.5	)		110.2		(44.2	)		194.2			(0.1	)		149.9
(Benefit) provision for income taxes		(19.8	)		76.1			(18.5	)		37.8		(7.8	)		63.5			(0.2	)		55.5
Equity in earnings of subsidiaries		138.1			-			(138.1	)		-		130.6			-			(130.6	)		-
Net income		53.8			138.7			(120.1	)		72.4		94.2			130.7			(130.5	)		94.4
Less: income attributable to noncontrolling interest		-			0.6			-			0.6		-			0.5			-			0.5
Income attributable to Jones	$	53.8		$	138.1		$	(120.1	)	$	71.8	$	94.2		$	130.2		$	(130.5	)	$	93.9

Condensed Consolidating Statements of Cash Flows

(In millions)

		Fiscal Nine Months Ended October 1, 2011												Fiscal Nine Months Ended October 2, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash (used in) provided by operating activities		$	(31.1	)	$	53.7		$	(16.2	)	$	6.4		$	(102.1	)	$	35.3		$	(3.9	)	$	(70.7	)
Cash flows from investing activities:
	Capital expenditures		(32.7	)		(40.0	)		-			(72.7	)		(9.9	)		(17.6	)		-			(27.5	)
	Acquisition of KG Group Holdings Limited, net of cash acquired		(150.0	)		6.9			-			(143.1	)		-			-			-			-
	Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired		-			-			-			-			(180.3	)		21.0			--			(159.3	)
	Acquisition of Moda Nicola International, LLC		(2.5	)		-			-			(2.5	)		(14.4	)		-			-			(14.4	)
	Other		-			0.1			-			0.1			-			0.4			-			0.4
	Net cash (used in) provided by investing activities		(185.2	)		(33.0	)		-			(218.2	)		(204.6	)		3.8			-			(200.8	)
Cash flows from financing activities:
	Issuance of 6.875% Senior Notes due 2019		300.0			-			-			300.0			-			-			-			-
	Debt issuance costs		(6.6	)		-			-			(6.6	)		-			-			-			-
	Costs related to revolving credit agreement		(3.0	)		-			-			(3.0	)		(7.3	)		-			-			(7.3	)
	Net increase (decrease) in short-term borrowings		55.0			-			-			55.0			16.3			(0.1	)		-			16.2
	Repayment of acquired debt of KG Group Holdings Limited		(174.1	)		-			-			(174.1	)		-			-			-			-
	Cash distributions to selling members of Stuart Weitzman Holdings, LLC		-			-			-			-			-			(19.0	)		-			(19.0	)
	Dividends paid		(12.7	)		(16.2	)		16.2			(12.7	)		(13.0	)		(3.9	)		3.9			(13.0	)
	Acquisition of treasury stock		(78.0	)		-			-			(78.0	)		-			-			-			-
	Payments of acquisition consideration payable		-			(8.2	)		-			(8.2	)		-			(2.5	)		-			(2.5	)
	Other items, net		1.7			(1.9	)		-			(0.2	)		0.9			(2.5	)		-			(1.6	)
	Net cash provided by (used in) financing activities		82.3			(26.3	)		16.2			72.2			(3.1	)		(28.0	)		3.9			(27.2	)
Effect of exchange rates on cash			-			-			-			-			-			(0.7	)		-			(0.7	)
Net (decrease) increase in cash and cash equivalents			(134.0	)		(5.6	)		-			(139.6	)		(309.8	)		10.4			-			(299.4	)
Cash and cash equivalents, beginning			163.0			37.8			-			200.8			322.1			11.3			-			333.4
Cash and cash equivalents, ending		$	29.0		$	32.2		$	-		$	61.2		$	12.3		$	21.7		$	-		$	34.0