SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION [Abstract]

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

SUPPLEMENTAL PRO FORMA 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)

		December 31, 2011												December 31, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
Current assets:
	Cash and cash equivalents	$	195.8		$	43.0		$	-		$	238.8		$	163.0		$	37.8	$	-		$	200.8
	Accounts receivable		182.9			156.7			-			339.6			210.2			135.4		-			345.6
	Inventories		270.5			220.9			(0.3	)		491.1			289.4			176.5		-			465.9
	Prepaid and refundable income taxes		5.3			4.9			1.7			11.9			3.3			0.1		15.3			18.7
	Deferred taxes		13.2			13.2			-			26.4			15.1			12.9		-			28.0
	Prepaid expenses and other current assets		21.5			26.2			-			47.7			22.1			10.0		-			32.1
	Total current assets		689.2			464.9			1.4			1,155.5			703.1			372.7		15.3			1,091.1
Property, plant and equipment			64.9			206.5			-			271.4			75.1			151.3		-			226.4
Due from affiliates			-			1,604.4			(1,604.4	)		-			-			1,512.4		(1,512.4	)		-
Goodwill			46.7			208.6			-			255.3			46.7			115.1		-			161.8
Other intangibles			6.9			890.5			-			897.4			7.7			719.0		-			726.7
Deferred taxes			80.6			-			(80.6	)		-			84.2			-		(84.2	)		-
Investments in and loans to subsidiaries			3,047.9			35.6			(3,047.9	)		35.6			2,677.5			40.2		(2,677.5	)		40.2
Other assets			79.3			20.8			-			100.1			68.7			17.5		-			86.2
	Total assets	$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4
LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt and capital lease obligations	$	-		$	2.0		$	-		$	2.0		$	-		$	1.8	$	-		$	1.8
	Current portion of acquisition consideration payable		192.7			1.4			-			194.1			14.1			-		-			14.1
	Accounts payable		139.7			96.5			-			236.2			145.9			67.5		-			213.4
	Income taxes payable		11.2			8.3			(18.1	)		1.4			-			4.4		(4.4	)		-
	Accrued expenses and other current liabilities		79.0			67.3			-			146.3			85.5			56.9		-			142.4
	Total current liabilities		422.6			175.5			(18.1	)		580.0			245.5			130.6		(4.4	)		371.7
Long-term debt			831.3			0.1			-			831.4			509.7			0.2		-			509.9
Obligations under capital leases			-			23.3			-			23.3			-			25.2		-			25.2
Income taxes payable			6.7			-			-			6.7			6.3			-		-			6.3
Deferred taxes			-			160.0			(86.6	)		73.4			-			72.1		(71.8	)		0.3
Acquisition consideration payable			17.7			-			-			17.7			199.9			1.4		-			201.3
Due to affiliates			1,604.4			-			(1,604.4	)		-			1,512.4			-		(1,512.4	)		-
Other			67.7			25.7			-			93.4			57.0			22.4		-			79.4
	Total liabilities		2,950.4			384.6			(1,709.1	)		1,625.9			2,530.8			251.9		(1,588.6	)		1,194.1
Equity:
	Common stock and additional paid-in capital		522.6			2,352.4			(2,352.4	)		522.6			542.8			2,096.2		(2,096.2	)		542.8
	Retained earnings		572.1			704.3			(680.2	)		596.2			597.8			574.9		(568.9	)		603.8
	Accumulated other comprehensive (loss) income		(29.6	)		(10.2	)		10.2			(29.6	)		(8.4	)		5.1		(5.1	)		(8.4	)
	Total Jones stockholders' equity		1,065.1			3,046.5			(3,022.4	)		1,089.2			1,132.2			2,676.2		(2,670.2	)		1,138.2
	Noncontrolling interest		-			0.2			-			0.2			-			0.1		-			0.1
	Total equity		1,065.1			3,046.7			(3,022.4	)		1,089.4			1,132.2			2,676.3		(2,670.2	)		1,138.3
	Total liabilities and equity	$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4

Condensed Consolidating Statements of Operations

(In millions)

	Year Ended December 31, 2011
		Issuers			Others			Eliminations			Consolidated
Net sales	$	2,370.0		$	1,387.0		$	(23.0	)	$	3,734.0
Licensing income		0.1			50.1			-			50.2
Other revenues		1.1			-			-			1.1
Total revenues		2,371.2			1,437.1			(23.0	)		3,785.3
Cost of goods sold		1,568.3			882.7			(10.9	)		2,440.1
Gross profit		802.9			554.4			(12.1	)		1,345.2
Selling, general and administrative expenses		893.5			291.5			(11.8	)		1,173.2
Trademark impairments		-			31.5			-			31.5
Operating (loss) income		(90.6	)		231.4			(0.3	)		140.5
Net interest expense (income) and financing costs		76.7			(3.4	)		-			73.3
Equity in income of unconsolidated affiliates		-			3.9			-			3.9
(Loss) income before (benefit) provision for income taxes		(167.3	)		238.7			(0.3	)		71.1
(Benefit) provision for income taxes		(36.1	)		74.2			(18.5	)		19.6
(Loss) income before earnings of subsidiaries		(131.2	)		164.5			18.2			51.5
Equity in earnings of subsidiaries		163.7			-			(163.7	)		-
Net income		32.5			164.5			(145.5	)		51.5
Less: income attributable to noncontrolling interest		-			0.8			-			0.8
Income attributable to Jones	$	32.5		$	163.7		$	(145.5	)	$	50.7

	Year Ended December 31, 2010
		Issuers			Others			Eliminations			Consolidated
Net sales	$	2,512.5		$	1,095.2		$	(14.2	)	$	3,593.5
Licensing income		0.1			48.2			-			48.3
Other revenues		0.9			-			-			0.9
Total revenues		2,513.5			1,143.4			(14.2	)		3,642.7
Cost of goods sold		1,643.9			746.3			(3.0	)		2,387.2
Gross profit		869.6			397.1			(11.2	)		1,255.5
Selling, general and administrative expenses		950.9			133.2			(11.1	)		1,073.0
Trademark impairments		-			37.6			-			37.6
Operating (loss) income		(81.3	)		226.3			(0.1	)		144.9
Net interest expense (income) and financing costs		64.4			(5.5	)		-			58.9
Equity in loss of unconsolidated affiliates		-			0.9			-			0.9
(Loss) income before (benefit) provision for income taxes		(145.7	)		230.9			(0.1	)		85.1
(Benefit) provision for income taxes		(42.9	)		75.0			(1.4	)		30.7
(Loss) income before earnings of subsidiaries		(102.8	)		155.9			1.3			54.4
Equity in earnings of subsidiaries		155.9			-			(155.9	)		-
Net income		53.1			155.9			(154.6	)		54.4
Less: income attributable to noncontrolling interest		-			0.6			-			0.6
Income attributable to Jones	$	53.1		$	155.3		$	(154.6	)	$	53.8

	Year Ended December 31, 2009
		Issuers			Others			Eliminations			Consolidated
Net sales	$	2,337.9		$	955.8		$	(14.0	)	$	3,279.7
Licensing income		0.1			46.7			-			46.8
Other revenues		0.9			-			-			0.9
Total revenues		2,338.9			1,002.5			(14.0	)		3,327.4
Cost of goods sold		1,495.2			689.8			(3.5	)		2,181.5
Gross profit		843.7			312.7			(10.5	)		1,145.9
Selling, general and administrative expenses		930.4			89.8			(11.5	)		1,008.7
Trademark impairments		-			28.7			-			28.7
Goodwill impairment		120.6			-			-			120.6
Operating (loss) income		(207.3	)		194.2			1.0			(12.1	)
Net interest expense (income) and financing costs		58.2			(5.4	)		-			52.8
Loss and costs associated with repurchase of 4.250% Senior Notes		1.5			-			-			1.5
Equity in loss of unconsolidated affiliates		-			3.7			-			3.7
(Loss) income before (benefit) provision for income taxes		(267.0	)		195.9			1.0			(70.1	)
(Benefit) provision for income taxes		(65.9	)		68.0			14.1			16.2
(Loss) income before earnings of subsidiaries		(201.1	)		127.9			(13.1	)		(86.3	)
Equity in earnings of subsidiaries		272.3			-			(272.3	)		-
Net income (loss)		71.2			127.9			(285.4	)		(86.3	)
Less: income attributable to noncontrolling interest		-			0.3			-			0.3
Income (loss) attributable to Jones	$	71.2		$	127.6		$	(285.4	)	$	(86.6	)

Condensed Consolidating Statements of Cash Flows

(In millions)

		Year Ended December 31, 2011
			Issuers			Others			Eliminations			Consolidated
Net cash provided by operating activities		$	192.7		$	97.8		$	(18.8	)	$	271.7
Cash flows from investing activities
	Acquisition of KG Group Holdings, net of cash acquired		(143.1	)		-			-			(143.1	)
	Acquisition of Moda Nicola International		(2.5	)		-			-			(2.5	)
	Capital expenditures		(37.3	)		(60.7	)		-			(98.0	)
	Other		-			0.1			-			0.1
	Net cash used in investing activities		(182.9	)		(60.6	)		-			(243.5	)
Cash flows from financing activities
	Issuance of 6.875% Senior Notes due 2019		300.0			-			-			300.0
	Debt issuance costs		(6.6	)		-			-			(6.6	)
	Repayment of acquired debt of KG Group Holdings		(174.1	)		-			-			(174.1	)
	Costs related to secured revolving credit agreement		(3.3	)		-			-			(3.3	)
	Repayment of long-term debt		-			(0.1	)		-			(0.1	)
	Distributions to noncontrolling interest		-			(0.7	)		-			(0.7	)
	Payments of acquisition consideration payable		-			(10.1	)		-			(10.1	)
	Purchases of treasury stock		(78.0	)		-			-			(78.0	)
	Dividends paid		(16.6	)		(18.8	)		18.8			(16.6	)
	Principal payments on capital leases		-			(1.7	)		-			(1.7	)
	Excess tax benefits from share-based payments		1.6			-			-			1.6
	Net cash provided by (used in) financing activities		23.0			(31.4	)		18.8			10.4
Effect of exchange rates on cash			-			(0.6	)		-			(0.6	)
Net increase in cash and cash equivalents			32.8			5.2			-			38.0
Cash and cash equivalents, beginning			163.0			37.8			-			200.8
Cash and cash equivalents, ending		$	195.8		$	43.0		$	-		$	238.8

		Year Ended December 31, 2010
			Issuers			Others			Eliminations			Consolidated
Net cash provided by operating activities		$	66.6		$	90.6		$	(15.9	)	$	141.3
Cash flows from investing activities
	Acquisition of Stuart Weitzman Holdings, net of cash acquired		(159.3	)		-			-			(159.3	)
	Acquisition of Moda Nicola International		(14.4	)		-			-			(14.4	)
	Capital expenditures		(18.6	)		(22.4	)		-			(41.0	)
	Other		-			0.4			-			0.4
	Net cash used in investing activities		(192.3	)		(22.0	)		-			(214.3	)
Cash flows from financing activities
	Costs related to secured revolving credit agreement		(7.3	)		-			-			(7.3	)
	Repayment of long-term debt		-			(0.2	)		-			(0.2	)
	Cash distributions to former owners of Stuart Weitzman Holdings		-			(19.0	)		-			(19.0	)
	Distributions to noncontrolling interest		-			(0.6	)		-			(0.6	)
	Payments of acquisition consideration payable		-			(4.3	)		-			(4.3	)
	Purchases of treasury stock		(10.7	)		-			-			(10.7	)
	Proceeds from exercise of employee stock options		0.6			-			-			0.6
	Dividends paid		(17.2	)		(15.9	)		15.9			(17.2	)
	Principal payments on capital leases		-			(2.6	)		-			(2.6	)
	Excess tax benefits from share-based payments		1.2			-			-			1.2
	Net cash used in financing activities		(33.4	)		(42.6	)		15.9			(60.1	)
Effect of exchange rates on cash			-			0.5			-			0.5
Net (decrease) increase in cash and cash equivalents			(159.1	)		26.5			-			(132.6	)
Cash and cash equivalents, beginning			322.1			11.3			-			333.4
Cash and cash equivalents, ending		$	163.0		$	37.8		$	-		$	200.8

		Year Ended December 31, 2009
			Issuers			Others			Eliminations		Consolidated
Net cash provided by operating activities		$	325.5		$	23.5		$	-	$	349.0
Cash flows from investing activities
	Capital expenditures		(15.3	)		(14.7	)		-		(30.0	)
	Investment in GRI Group Limited		-			(15.2	)		-		(15.2	)
	Net cash used in investing activities		(15.3	)		(29.9	)		-		(45.2	)
Cash flows from financing activities
	Repurchase of 4.250% Senior Notes		(237.7	)		-			-		(237.7	)
	Redemption at maturity of 4.250% Senior Notes		(7.5	)		-			-		(7.5	)
	Payment of consent fees		(12.9	)		-			-		(12.9	)
	Costs associated with consent fees and repurchase of notes		(1.8	)		-			-		(1.8	)
	Costs related to secured revolving credit agreement		(29.6	)		(0.5	)		-		(30.1	)
	Distributions to noncontrolling interest		-			(0.2	)		-		(0.2	)
	Dividends paid		(17.0	)		-			-		(17.0	)
	Principal payments on capital leases		-			(3.1	)		-		(3.1	)
	Net cash used in financing activities		(306.5	)		(3.8	)		-		(310.3	)
Effect of exchange rates on cash			-			1.6			-		1.6
Net increase (decrease) in cash and cash equivalents			3.7			(8.6	)		-		(4.9	)
Cash and cash equivalents, beginning			318.4			19.9			-		338.3
Cash and cash equivalents, ending		$	322.1		$	11.3		$	-	$	333.4