SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2012

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, statements of consolidated comprehensive income 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)

		March 31, 2012											December 31, 2011
			Issuers			Others		Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
ASSETS
Current assets:
	Cash and cash equivalents	$	113.2		$	33.9	$	-		$	147.1		$	195.8		$	43.0		$	-		$	238.8
	Accounts receivable		266.6			192.0		-			458.6			182.9			156.7			-			339.6
	Inventories		279.5			194.7		(1.2	)		473.0			270.5			220.9			(0.3	)		491.1
	Prepaid and refundable income taxes		5.0			0.5		(5.5	)		-			5.3			4.9			1.7			11.9
	Deferred taxes		21.2			13.4		-			34.6			13.2			13.2			-			26.4
	Prepaid expenses and other current assets		22.3			32.3		-			54.6			21.5			26.2			-			47.7
	Total current assets		707.8			466.8		(6.7	)		1,167.9			689.2			464.9			1.4			1,155.5
Property, plant and equipment			62.7			210.3		-			273.0			64.9			206.5			-			271.4
Due from affiliates			-			1,620.8		(1,620.8	)		-			-			1,604.4			(1,604.4	)		-
Goodwill			46.7			211.8		-			258.5			46.7			208.6			-			255.3
Other intangibles			6.7			894.2		-			900.9			6.9			890.5			-			897.4
Deferred taxes			85.4			-		(85.4	)		-			80.6			-			(80.6	)		-
Investments in and loan to subsidiaries			3,093.6			36.2		(3,093.6	)		36.2			3,047.9			35.6			(3,047.9	)		35.6
Other assets			78.0			20.7		-			98.7			79.3			20.8			-			100.1
	Total assets	$	4,080.9		$	3,460.8	$	(4,806.5	)	$	2,735.2		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3
LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt and capital lease obligations	$	-		$	2.1	$	-		$	2.1		$	-		$	2.0		$	-		$	2.0
	Current portion of acquisition consideration payable		226.9			1.4		-			228.3			192.7			1.4			-			194.1
	Accounts payable		164.4			80.3		-			244.7			139.7			96.5			-			236.2
	Income taxes payable		25.6			11.6		(25.7	)		11.5			11.2			8.3			(18.1	)		1.4
	Accrued expenses and other current liabilities		65.4			59.9		-			125.3			79.0			67.3			-			146.3
	Total current liabilities		482.3			155.3		(25.7	)		611.9			422.6			175.5			(18.1	)		580.0
Long-term debt			832.3			0.1		-			832.4			831.3			0.1			-			831.4
Obligations under capital leases			-			22.8		-			22.8			-			23.3			-			23.3
Income taxes payable			0.5			-		-			0.5			6.7			-			-			6.7
Deferred taxes			-			166.3		(91.4	)		74.9			-			160.0			(86.6	)		73.4
Acquisition consideration payable			5.8			-		-			5.8			17.7			-			-			17.7
Due to affiliates			1,620.8			-		(1,620.8	)		-			1,604.4			-			(1,604.4	)		-
Other			69.1			24.0		-			93.1			67.7			25.7			-			93.4
	Total liabilities		3,010.8			368.5		(1,737.9	)		1,641.4			2,950.4			384.6			(1,709.1	)		1,625.9
Equity:
	Common stock and additional paid-in capital		527.7			2,352.4		(2,352.4	)		527.7			522.6			2,352.4			(2,352.4	)		522.6
	Retained earnings		562.7			739.0		(715.5	)		586.2			572.1			704.3			(680.2	)		596.2
	Accumulated other comprehensive (loss) income		(20.3	)		0.7		(0.7	)		(20.3	)		(29.6	)		(10.2	)		10.2			(29.6	)
	Total Jones stockholders' equity		1,070.1			3,092.1		(3,068.6	)		1,093.6			1,065.1			3,046.5			(3,022.4	)		1,089.2
	Noncontrolling interest		-			0.2		-			0.2			-			0.2			-			0.2
	Total equity		1,070.1			3,092.3		(3,068.6	)		1,093.8			1,065.1			3,046.7			(3,022.4	)		1,089.4
	Total liabilities and equity	$	4,080.9		$	3,460.8	$	(4,806.5	)	$	2,735.2		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended March 31, 2012												Fiscal Quarter Ended April 2, 2011
		Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	570.6		$	359.6		$	(6.8	)	$	923.4		$	617.6		$	336.2		$	(4.8	)	$	949.0
Licensing income		-			12.3			-			12.3			-			12.1			-			12.1
Other revenues		0.3			-			-			0.3			0.2			-			-			0.2
Total revenues		570.9			371.9			(6.8	)		936.0			617.8			348.3			(4.8	)		961.3
Cost of goods sold		377.3			218.9			(3.7	)		592.5			408.2			223.9			(1.5	)		630.6
Gross profit		193.6			153.0			(3.1	)		343.5			209.6			124.4			(3.3	)		330.7
Selling, general and administrative expenses		206.7			98.8			(2.2	)		303.3			220.7			52.1			(3.3	)		269.5
Operating (loss) income		(13.1	)		54.2			(0.9	)		40.2			(11.1	)		72.3			-			61.2
Net interest expense (income) and financing costs		43.2			(0.5	)		-			42.7			22.6			(1.5	)		-			21.1
Equity in income of unconsolidated affiliate		-			0.9			-			0.9			-			1.3			-			1.3
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(56.3	)		55.6			(0.9	)		(1.6	)		(33.7	)		75.1			-			41.4
(Benefit) provision for income taxes		(15.9	)		15.7			(0.4	)		(0.6	)		(5.9	)		21.4			-			15.5
Equity in earnings of subsidiaries		39.9			-			(39.9	)		-			53.5			-			(53.5	)		-
Net (loss) income		(0.5	)		39.9			(40.4	)		(1.0	)		25.7			53.7			(53.5	)		25.9
Less: income attributable to noncontrolling interest		-			0.2			-			0.2			-			0.2			-			0.2
(Loss) income attributable to Jones	$	(0.5	)	$	39.7		$	(40.4	)	$	(1.2	)	$	25.7		$	53.5		$	(53.5	)	$	25.7

Condensed Consolidating Statements of Other Comprehensive Income

(In millions)

		Fiscal Quarter Ended March 31, 2012												Fiscal Quarter Ended April 2, 2011
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net (loss) income		$	(0.5	)	$	39.9		$	(40.4	)	$	(1.0	)	$	25.7		$	53.7		$	(53.5	)	$	25.9
Other comprehensive income:
	Change in fair value of cash flow hedges, net of tax		(0.1	)		(0.1	)		0.1			(0.1	)		(0.4	)		(0.4	)		0.4			(0.4	)
	Reclassification adjustment for hedge gains and losses included in net income, net of tax		-			-			-			-			0.1			0.1			(0.1	)		0.1
	Foreign currency translation adjustments		9.4			9.4			(9.4	)		9.4			3.3			3.3			(3.3	)		3.3
	Total other comprehensive income		9.3			9.3			(9.3	)		9.3			3.0			3.0			(3.0	)		3.0
Comprehensive income		$	8.8		$	49.2		$	(49.7	)	$	8.3		$	28.7		$	56.7		$	(56.5	)	$	28.9

Condensed Consolidating Statements of Cash Flows

(In millions)

		Fiscal Quarter Ended March 31, 2012												Fiscal Quarter Ended April 2, 2011
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash (used in) provided by operating activities		$	(67.9	)	$	10.9		$	(2.8	)	$	(59.8	)	$	(145.0	)	$	18.8		$	(10.6	)	$	(136.8	)
Cash flows from investing activities:
	Capital expenditures		(3.9	)		(14.3	)		-			(18.2	)		(18.2	)		(14.7	)		-			(32.9	)
	Other		-			(0.2	)		-			(0.2	)		-			-			-			-
	Net cash used in investing activities		(3.9	)		(14.5	)		-			(18.4	)		(18.2	)		(14.7	)		-			(32.9	)
Cash flows from financing activities:
	Issuance of 6.875% Senior Notes due 2019		-			-			-			-			300.0			-			-			300.0
	Debt issuance costs		-			-			-			-			(6.4	)		-			-			(6.4	)
	Dividends paid		(4.0	)		(2.8	)		2.8			(4.0	)		(4.3	)		(10.6	)		10.6			(4.3	)
	Repurchase of common shares		(8.9	)		-			-			(8.9	)		(10.0	)		-			-			(10.0	)
	Payments of acquisition consideration payable		-			(2.0	)		-			(2.0	)		-			(4.2	)		-			(4.2	)
	Other items, net		2.1			(0.6	)		-			1.5			1.5			(0.5	)		-			1.0
	Net cash (used in) provided by financing activities		(10.8	)		(5.4	)		2.8			(13.4	)		280.8			(15.3	)		10.6			276.1
Effect of exchange rates on cash			-			(0.1	)		-			(0.1	)		-			(0.7	)		-			(0.7	)
Net (decrease) increase in cash and cash equivalents			(82.6	)		(9.1	)		-			(91.7	)		117.6			(11.9	)		-			105.7
Cash and cash equivalents, beginning			195.8			43.0			-			238.8			163.0			37.8			-			200.8
Cash and cash equivalents, ending		$	113.2		$	33.9		$	-		$	147.1		$	280.6		$	25.9		$	-		$	306.5