THE JONES GROUP INC.
(Exact name of registrant as specified in its charter)
|
|
Pennsylvania
(State or other jurisdiction of
incorporation or organization)
|
06-0935166
(I.R.S. Employer
Identification No.)
|
1411 Broadway
New York, New York
(Address of principal executive offices)
|
10018
(Zip Code)
|
(212) 642-3860
(Registrant's telephone number, including area code)
|
|
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
|
Class of Common Stock
$.01 par value
|
Outstanding at October 25, 2012
80,042,206 |
Index
|
Page No.
|
||
PART I. FINANCIAL INFORMATION
|
|
||
|
|||
|
|
||
|
|
September 29, 2012, October 1, 2011 and December 31, 2011
|
3
|
|
|
||
|
|
Fiscal Quarters and Nine Months ended September 29, 2012 and October 1, 2011
|
4
|
|
|
||
|
|
Fiscal Quarters and Nine Months ended September 29, 2012 and October 1, 2011
|
5
|
|
|
||
|
|
Fiscal Nine Months ended September 29, 2012 and October 1, 2011
|
6
|
|
|
||
|
|
Fiscal Nine Months ended September 29, 2012 and October 1, 2011
|
7
|
|
|
8
|
|
|
27
|
||
|
38
|
||
|
39
|
||
PART II. OTHER INFORMATION
|
|
||
|
40
|
||
|
40
|
||
|
40
|
||
|
41
|
||
|
42
|
||
43
|
|
September 29,
2012
|
October 1,
2011
|
December 31,
2011
|
|||||||||
ASSETS
|
(Unaudited)
|
(Unaudited)
|
||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
234.1
|
$
|
61.2
|
$
|
238.8
|
||||||
Accounts receivable
|
486.2
|
490.9
|
339.6
|
|||||||||
Inventories, primarily finished goods
|
523.7
|
555.2
|
491.1
|
|||||||||
Prepaid and refundable income taxes
|
2.2
|
9.1
|
11.9
|
|||||||||
Deferred taxes
|
32.5
|
32.3
|
26.4
|
|||||||||
Loan to unconsolidated affiliate
|
-
|
-
|
10.0
|
|||||||||
Prepaid expenses and other current assets
|
42.4
|
39.1
|
37.7
|
|||||||||
Total current assets
|
1,321.1
|
1,187.8
|
1,155.5
|
|||||||||
Property, plant and equipment, at cost, less accumulated depreciation and amortization of $572.8, $597.8 and $605.4
|
276.2
|
270.5
|
271.4
|
|||||||||
Goodwill
|
262.5
|
256.2
|
255.3
|
|||||||||
Other intangibles, at cost, less accumulated amortization
|
901.5
|
935.2
|
897.4
|
|||||||||
Investment in and loan to unconsolidated affiliate
|
38.4
|
42.2
|
35.6
|
|||||||||
Other assets
|
99.8
|
104.3
|
100.1
|
|||||||||
Total assets
|
$
|
2,899.5
|
$
|
2,796.2
|
$
|
2,715.3
|
||||||
LIABILITIES AND EQUITY
|
||||||||||||
Current liabilities:
|
||||||||||||
Short-term borrowings
|
$
|
-
|
$
|
55.0
|
$
|
-
|
||||||
Current portion of long-term debt and capital lease obligations
|
2.1
|
2.0
|
2.0
|
|||||||||
Current portion of acquisition consideration payable
|
230.2
|
22.2
|
194.1
|
|||||||||
Accounts payable
|
252.2
|
231.4
|
236.2
|
|||||||||
Income taxes payable
|
17.5
|
0.4
|
1.4
|
|||||||||
Accrued employee compensation and benefits
|
45.6
|
45.6
|
45.3
|
|||||||||
Accrued expenses and other current liabilities
|
106.4
|
89.1
|
101.0
|
|||||||||
Total current liabilities
|
654.0
|
445.7
|
580.0
|
|||||||||
Long-term debt
|
936.3
|
833.2
|
831.4
|
|||||||||
Obligations under capital leases
|
21.8
|
23.8
|
23.3
|
|||||||||
Deferred taxes
|
66.5
|
93.2
|
73.4
|
|||||||||
Income taxes payable
|
0.3
|
8.8
|
6.7
|
|||||||||
Acquisition consideration payable
|
5.0
|
190.6
|
17.7
|
|||||||||
Other noncurrent liabilities
|
117.4
|
81.2
|
93.4
|
|||||||||
Total liabilities
|
1,801.3
|
1,676.5
|
1,625.9
|
|||||||||
Commitments and contingencies
|
-
|
-
|
-
|
|||||||||
Redeemable noncontrolling interest
|
0.6
|
-
|
-
|
|||||||||
Equity:
|
||||||||||||
Preferred stock, $.01 par value - shares authorized 1.0; none issued
|
-
|
-
|
-
|
|||||||||
Common stock, $.01 par value - shares authorized 200.0; issued 79.8, 80.9 and 81.0
|
0.8
|
0.8
|
0.8
|
|||||||||
Additional paid-in capital
|
522.2
|
519.1
|
521.8
|
|||||||||
Retained earnings
|
590.5
|
621.4
|
596.2
|
|||||||||
Accumulated other comprehensive loss
|
(16.9
|
)
|
(21.8
|
)
|
(29.6
|
)
|
||||||
Total Jones stockholders' equity
|
1,096.6
|
1,119.5
|
1,089.2
|
|||||||||
Noncontrolling interests
|
1.0
|
0.2
|
0.2
|
|||||||||
Total equity
|
1,097.6
|
1,119.7
|
1,089.4
|
|||||||||
Total liabilities and equity
|
$
|
2,899.5
|
$
|
2,796.2
|
$
|
2,715.3
|
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||
|
September 29,
2012
|
October 1,
2011
|
September 29,
2012
|
October 1,
2011
|
||||||||||||
Net sales
|
$
|
1,024.6
|
$
|
1,030.1
|
$
|
2,792.3
|
$
|
2,855.9
|
||||||||
Licensing income
|
10.5
|
12.7
|
33.0
|
35.1
|
||||||||||||
Other revenues
|
0.3
|
0.2
|
0.9
|
0.7
|
||||||||||||
Total revenues
|
1,035.4
|
1,043.0
|
2,826.2
|
2,891.7
|
||||||||||||
Cost of goods sold
|
670.8
|
671.1
|
1,792.0
|
1,866.1
|
||||||||||||
Gross profit
|
364.6
|
371.9
|
1,034.2
|
1,025.6
|
||||||||||||
Selling, general and administrative expenses
|
301.9
|
311.5
|
909.6
|
859.2
|
||||||||||||
Operating income
|
62.7
|
60.4
|
124.6
|
166.4
|
||||||||||||
Interest income
|
0.1
|
0.2
|
0.5
|
0.7
|
||||||||||||
Interest expense and financing costs
|
37.8
|
0.9
|
89.7
|
59.5
|
||||||||||||
Equity in income of unconsolidated affiliate
|
-
|
0.5
|
1.4
|
2.6
|
||||||||||||
Income before provision for income taxes
|
25.0
|
60.2
|
36.8
|
110.2
|
||||||||||||
Provision for income taxes
|
7.2
|
19.0
|
11.6
|
37.8
|
||||||||||||
Net income
|
17.8
|
41.2
|
25.2
|
72.4
|
||||||||||||
Less: income attributable to noncontrolling interest
|
0.4
|
0.2
|
0.9
|
0.6
|
||||||||||||
Income attributable to Jones
|
$
|
17.4
|
$
|
41.0
|
$
|
24.3
|
$
|
71.8
|
||||||||
Earnings per common share attributable to Jones
|
||||||||||||||||
Basic
|
$
|
0.23
|
$
|
0.50
|
$
|
0.32
|
$
|
0.86
|
||||||||
Diluted
|
0.22
|
0.49
|
0.31
|
0.85
|
||||||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic
|
74.4
|
78.6
|
75.2
|
80.8
|
||||||||||||
Diluted
|
75.4
|
80.4
|
76.1
|
82.3
|
||||||||||||
Dividends declared per share
|
$
|
0.05
|
$
|
0.05
|
$
|
0.15
|
$
|
0.15
|
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||
|
September 29,
2012
|
October 1,
2011
|
September 29,
2012
|
October 1,
2011
|
||||||||||||
Net income
|
$
|
17.8
|
$
|
41.2
|
$
|
25.2
|
$
|
72.4
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in fair value of cash flow hedges, net of $0.1, $(0.1), $0.1 and $0.1 tax benefit (provision)
|
(0.3
|
)
|
0.2
|
(0.1
|
)
|
(0.2
|
)
|
|||||||||
Reclassification adjustment for hedge gains and losses included in net income, net of $0.0, $0.1, $0.0 and $0.2 tax benefit
|
-
|
0.2
|
0.1
|
0.6
|
||||||||||||
Foreign currency translation adjustments
|
11.6
|
(12.3
|
)
|
12.7
|
(13.8
|
)
|
||||||||||
Total other comprehensive income (loss)
|
11.3
|
(11.9
|
)
|
12.7
|
(13.4
|
)
|
||||||||||
Comprehensive income
|
$
|
29.1
|
$
|
29.3
|
$
|
37.9
|
$
|
59.0
|
|
Number of common shares outstanding
|
Total equity
|
Common stock
|
Additional paid-in capital
|
Retained earnings
|
Accumulated other comp-rehensive loss
|
Non-controlling interests
|
Redeemable non-controlling interest
|
||||||||||||||||||||||||
Balance, January 1, 2011
|
86.4
|
$
|
1,138.3
|
$
|
0.9
|
$
|
541.9
|
$
|
603.8
|
$
|
(8.4
|
)
|
$
|
0.1
|
$
|
-
|
||||||||||||||||
Comprehensive income, including amounts attributable to nonredeemable and redeemable noncontrolling interests
|
-
|
59.0
|
-
|
-
|
71.8
|
(13.4
|
)
|
0.6
|
-
|
|||||||||||||||||||||||
Issuance of restricted stock to employees, net of forfeitures
|
1.7
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Amortization of restricted stock
|
-
|
13.9
|
-
|
13.9
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Distributions to noncontrolling interest
|
-
|
(0.5
|
)
|
-
|
-
|
-
|
-
|
(0.5
|
)
|
-
|
||||||||||||||||||||||
Tax effects from vesting of restricted stock
|
-
|
1.0
|
-
|
1.0
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Tax effects of expired employee stock options
|
-
|
(1.2
|
)
|
-
|
(1.2
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Repurchase of common shares
|
(7.2
|
)
|
(78.0
|
)
|
(0.1
|
)
|
(36.5
|
)
|
(41.4
|
)
|
-
|
-
|
-
|
|||||||||||||||||||
Dividends on common stock ($0.15 per share)
|
-
|
(13.0
|
)
|
-
|
-
|
(13.0
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||
Other
|
-
|
0.2
|
-
|
-
|
0.2
|
-
|
-
|
-
|
||||||||||||||||||||||||
Balance, October 1, 2011
|
80.9
|
$
|
1,119.7
|
$
|
0.8
|
$
|
519.1
|
$
|
621.4
|
$
|
(21.8
|
)
|
$
|
0.2
|
$
|
-
|
||||||||||||||||
Balance, January 1, 2012
|
81.0
|
$
|
1,089.4
|
$
|
0.8
|
$
|
521.8
|
$
|
596.2
|
$
|
(29.6
|
)
|
$
|
0.2
|
$
|
-
|
||||||||||||||||
Comprehensive income, including amounts attributable to nonredeemable and redeemable noncontrolling interests
|
-
|
37.9
|
-
|
-
|
24.3
|
12.7
|
0.9
|
-
|
||||||||||||||||||||||||
Acquisition of Brian Atwood intellectual property
|
-
|
0.6
|
-
|
-
|
-
|
-
|
0.6
|
0.6
|
||||||||||||||||||||||||
Issuance of restricted stock to employees, net of forfeitures
|
2.2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Amortization of restricted stock
|
-
|
16.4
|
-
|
16.4
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Tax effects from vesting of restricted stock
|
-
|
1.6
|
-
|
1.6
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Tax effects of expired employee stock options
|
-
|
(1.5
|
)
|
-
|
(1.5
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
(0.7
|
)
|
-
|
-
|
-
|
-
|
(0.7
|
)
|
-
|
||||||||||||||||||||||
Repurchase of common shares
|
(3.4
|
)
|
(34.2
|
)
|
-
|
(16.1
|
)
|
(18.1
|
)
|
-
|
-
|
-
|
||||||||||||||||||||
Dividends on common stock ($0.15 per share)
|
-
|
(12.1
|
)
|
-
|
-
|
(12.1
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||
Other
|
-
|
0.2
|
-
|
-
|
0.2
|
-
|
-
|
-
|
||||||||||||||||||||||||
Balance, September 29, 2012
|
79.8
|
$
|
1,097.6
|
$
|
0.8
|
$
|
522.2
|
$
|
590.5
|
$
|
(16.9
|
)
|
$
|
1.0
|
$
|
0.6
|
|
Fiscal Nine Months Ended
|
|||||||
|
September 29,
2012
|
October 1,
2011
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
25.2
|
$
|
72.4
|
||||
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
|
||||||||
Amortization of restricted stock
|
16.4
|
13.9
|
||||||
Depreciation and other amortization
|
67.3
|
64.3
|
||||||
Impairment losses
|
0.4
|
5.1
|
||||||
Equity in income of unconsolidated affiliate
|
(1.4
|
)
|
(2.6
|
)
|
||||
Adjustments to acquisition consideration payable
|
44.0
|
10.7
|
||||||
Deferred taxes
|
(16.7
|
)
|
26.4
|
|||||
Fair value adjustments related to interest rate swaps and cap
|
1.4
|
2.0
|
||||||
Write-off of deferred financing fees
|
-
|
1.9
|
||||||
Gain on sale of trademark
|
(3.1
|
)
|
-
|
|||||
Other items, net
|
(1.5
|
)
|
5.8
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(134.7
|
)
|
(127.4
|
)
|
||||
Inventories
|
(28.5
|
)
|
(38.2
|
)
|
||||
Prepaid expenses and other current assets
|
(6.7
|
)
|
(0.1
|
)
|
||||
Other assets
|
(0.3
|
)
|
6.6
|
|||||
Accounts payable
|
12.5
|
(10.9
|
)
|
|||||
Income taxes payable/prepaid income taxes
|
18.6
|
12.1
|
||||||
Accrued expenses and other current liabilities
|
0.8
|
(32.8
|
)
|
|||||
Acquisition consideration payable
|
(4.6
|
)
|
(5.0
|
)
|
||||
Other liabilities
|
24.0
|
2.2
|
||||||
Total adjustments
|
(12.1
|
)
|
(66.0
|
)
|
||||
Net cash provided by operating activities
|
13.1
|
6.4
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(57.1
|
)
|
(72.7
|
)
|
||||
Acquisition of Brian Atwood, net of cash acquired
|
(4.4
|
)
|
-
|
|||||
Contingent consideration paid related to investment in GRI
|
(3.5
|
)
|
-
|
|||||
Acquisition of KG Group Holdings Limited, net of cash acquired
|
-
|
(143.1
|
)
|
|||||
Payments related to acquisition of Moda Nicola International, LLC
|
-
|
(2.5
|
)
|
|||||
Proceeds from sale of trademark
|
5.0
|
-
|
||||||
Other
|
(0.1
|
)
|
0.1
|
|||||
Net cash used in investing activities
|
(60.1
|
)
|
(218.2
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Issuance of 6.875% Senior Notes due 2019
|
103.5
|
300.0
|
||||||
Debt issuance costs
|
(2.3
|
)
|
(6.6
|
)
|
||||
Costs related to secured revolving credit agreement
|
(0.3
|
)
|
(3.0
|
)
|
||||
Increase in short-term borrowings
|
-
|
55.0
|
||||||
Repayment of acquired debt of KG Group Holdings Limited
|
-
|
(174.1
|
)
|
|||||
Dividends paid
|
(11.7
|
)
|
(12.7
|
)
|
||||
Repurchases of common stock
|
(34.0
|
)
|
(78.0
|
)
|
||||
Payments of acquisition consideration payable
|
(14.6
|
)
|
(8.2
|
)
|
||||
Other items, net
|
0.2
|
(0.2
|
)
|
|||||
Net cash provided by financing activities
|
40.8
|
72.2
|
||||||
EFFECT OF EXCHANGE RATES ON CASH
|
1.5
|
-
|
||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(4.7
|
)
|
(139.6
|
)
|
||||
CASH AND CASH EQUIVALENTS, BEGINNING
|
238.8
|
200.8
|
||||||
CASH AND CASH EQUIVALENTS, ENDING
|
$
|
234.1
|
$
|
61.2
|
(In millions, except per share amounts)
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||
|
September 29,
2012
|
October 1,
2011
|
September 29,
2012
|
October 1,
2011
|
||||||||||||
Net income
|
$
|
17.8
|
$
|
41.2
|
$
|
25.2
|
$
|
72.4
|
||||||||
Less: income attributable to noncontrolling interests
|
(0.4
|
)
|
(0.2
|
)
|
(0.9
|
)
|
(0.6
|
)
|
||||||||
Income attributable to Jones
|
17.4
|
41.0
|
24.3
|
71.8
|
||||||||||||
Less: income allocated to participating securities
|
(0.4
|
)
|
(1.4
|
)
|
(0.4
|
)
|
(2.2
|
)
|
||||||||
Income available to common stockholders of Jones
|
$
|
17.0
|
$
|
39.6
|
$
|
23.9
|
$
|
69.6
|
||||||||
Weighted-average shares outstanding - basic
|
74.4
|
78.6
|
75.2
|
80.8
|
||||||||||||
Effect of dilutive employee restricted stock
|
1.0
|
1.8
|
0.9
|
1.5
|
||||||||||||
Weighted-average shares outstanding - diluted
|
75.4
|
80.4
|
76.1
|
82.3
|
||||||||||||
Earnings per common share attributable to Jones
|
||||||||||||||||
Basic
|
$
|
0.23
|
$
|
0.50
|
$
|
0.32
|
$
|
0.86
|
||||||||
Diluted
|
0.22
|
0.49
|
0.31
|
0.85
|
(In millions)
|
Weighted-average amortization life (in months)
|
Fair
Value |
||||||
Cash
|
$
|
6.9
|
||||||
Accounts receivable
|
19.7
|
|||||||
Inventories
|
55.1
|
|||||||
Other current assets
|
9.5
|
|||||||
Property, plant and equipment
|
27.0
|
|||||||
Intangible assets:
|
||||||||
Trademarks - nonamortized
|
95.1
|
|||||||
Trademarks - amortized
|
120
|
0.1
|
||||||
Goodwill
|
99.3
|
|||||||
Customer relationships
|
232
|
125.7
|
||||||
Order backlog
|
9
|
2.8
|
||||||
Favorable lease agreements
|
99
|
6.8
|
||||||
Total assets acquired
|
448.0
|
|||||||
Accounts payable
|
30.6
|
|||||||
Other current liabilities
|
28.5
|
|||||||
Long-term debt
|
174.1
|
|||||||
Unfavorable lease agreements
|
100
|
0.2
|
||||||
Deferred taxes
|
64.6
|
|||||||
Total liabilities assumed
|
298.0
|
|||||||
Total purchase price
|
$
|
150.0
|
(In millions)
|
Amortization life (in months)
|
Fair
Value |
||||||
Cash
|
$
|
0.6
|
||||||
Accounts receivable
|
0.5
|
|||||||
Other current assets
|
0.4
|
|||||||
Property, plant and equipment
|
0.1
|
|||||||
Intangible assets:
|
||||||||
Trademarks
|
240
|
7.5
|
||||||
Goodwill
|
2.7
|
|||||||
Customer relationships
|
6
|
0.4
|
||||||
Order backlog
|
3
|
0.7
|
||||||
Total assets acquired
|
12.9
|
|||||||
Accounts payable
|
1.7
|
|||||||
Notes payable
|
2.8
|
|||||||
Other current liabilities
|
1.8
|
|||||||
Deferred taxes
|
0.3
|
|||||||
Other long-term liabilities
|
0.1
|
|||||||
Total liabilities assumed
|
6.7
|
|||||||
Fair value of noncontrolling interest
|
1.2
|
|||||||
Total purchase price
|
$
|
5.0
|
(In millions, except per share amounts)
|
Fiscal Quarter Ended
October 1, 2011
|
Fiscal Nine Months Ended October 1, 2011
|
||||||
Total revenues
|
$
|
1,043.0
|
$
|
3,022.0
|
||||
Net income
|
42.5
|
70.6
|
||||||
Earnings per share attributable to Jones
|
||||||||
Basic
|
$
|
0.52
|
$
|
0.83
|
||||
Diluted
|
0.51
|
0.82
|
|
September 29, 2012
|
October 1,
2011
|
December 31, 2011
|
|||||||||
(In millions)
|
||||||||||||
Trade accounts receivable
|
$
|
520.7
|
$
|
531.2
|
$
|
367.9
|
||||||
Allowances for doubtful accounts, returns, discounts and co-op advertising
|
(34.5
|
)
|
(40.3
|
)
|
(28.3
|
)
|
||||||
|
$
|
486.2
|
$
|
490.9
|
$
|
339.6
|
(In millions)
|
One-time
termination
benefits
|
Lease
obligations
|
Total jewelry restructuring
|
|||||||||
Balance, January 1, 2011
|
$
|
1.3
|
$
|
2.3
|
$
|
3.6
|
||||||
Additions
|
-
|
0.1
|
0.1
|
|||||||||
Payments and reductions
|
(1.3
|
)
|
(0.8
|
)
|
(2.1
|
)
|
||||||
Balance, October 1, 2011
|
$
|
-
|
$
|
1.6
|
$
|
1.6
|
||||||
Balance, January 1, 2012
|
$
|
-
|
$
|
1.5
|
$
|
1.5
|
||||||
Additions
|
-
|
0.2
|
0.2
|
|||||||||
Payments and reductions
|
-
|
(0.4
|
)
|
(0.4
|
)
|
|||||||
Balance, September 29, 2012
|
$
|
-
|
$
|
1.3
|
$
|
1.3
|
(In millions)
|
Lease obligations
|
|||
Balance, January 1, 2011
|
$
|
4.1
|
||
Additions
|
0.1
|
|||
Payments and reductions
|
(3.5
|
)
|
||
Balance, October 1, 2011
|
$
|
0.7
|
||
Balance, January 1, 2012
|
$
|
0.9
|
||
Payments and reductions
|
(0.1
|
)
|
||
Balance, September 29, 2012
|
$
|
0.8
|
(In millions)
|
One-time termination benefits
|
|||
Balance, January 1, 2011
|
$
|
2.2
|
||
Additions
|
1.2
|
|||
Payments and reductions
|
(2.3
|
)
|
||
Balance, October 1, 2011
|
$
|
1.1
|
||
Balance, January 1, 2012
|
$
|
1.3
|
||
Additions
|
1.6
|
|||
Payments and reductions
|
(1.8
|
)
|
||
Balance, September 29, 2012
|
$
|
1.1
|
(In millions)
|
Domestic Wholesale Sportswear
|
Domestic Wholesale Jeanswear
|
Domestic Wholesale Footwear & Accessories
|
Domestic Retail
|
International Wholesale
|
International Retail
|
Total
|
|||||||||||||||||||||
Balance, December 31, 2010
|
||||||||||||||||||||||||||||
Goodwill
|
$
|
6.7
|
$
|
519.2
|
$
|
873.0
|
$
|
120.6
|
$
|
55.3
|
$
|
-
|
$
|
1,614.8
|
||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
-
|
(1,453.0
|
)
|
|||||||||||||||||
Net goodwill
|
46.7
|
-
|
59.8
|
-
|
55.3
|
-
|
161.8
|
|||||||||||||||||||||
Acquisition of Kurt Geiger
|
-
|
-
|
-
|
-
|
45.8
|
53.5
|
99.3
|
|||||||||||||||||||||
Foreign currency translation effects
|
-
|
-
|
-
|
-
|
(2.3
|
)
|
(2.6
|
)
|
(4.9
|
)
|
||||||||||||||||||
Balance, October 1, 2011
|
||||||||||||||||||||||||||||
Goodwill
|
46.7
|
519.2
|
873.0
|
120.6
|
98.8
|
50.9
|
1,709.2
|
|||||||||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
-
|
(1,453.0
|
)
|
|||||||||||||||||
Net goodwill
|
$
|
46.7
|
$
|
-
|
$
|
59.8
|
$
|
-
|
$
|
98.8
|
$
|
50.9
|
$
|
256.2
|
||||||||||||||
Balance, December 31, 2011
|
||||||||||||||||||||||||||||
Goodwill
|
$
|
46.7
|
$
|
519.2
|
$
|
859.8
|
$
|
120.6
|
$
|
111.6
|
$
|
50.4
|
$
|
1,708.3
|
||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
-
|
(1,453.0
|
)
|
|||||||||||||||||
Net goodwill
|
46.7
|
-
|
46.6
|
-
|
111.6
|
50.4
|
255.3
|
|||||||||||||||||||||
Acquisition of Brian Atwood
|
-
|
-
|
2.7
|
-
|
-
|
-
|
2.7
|
|||||||||||||||||||||
Foreign currency translation effects
|
-
|
-
|
-
|
-
|
2.1
|
2.4
|
4.5
|
|||||||||||||||||||||
Balance, September 29, 2012
|
||||||||||||||||||||||||||||
Goodwill
|
46.7
|
519.2
|
862.5
|
120.6
|
113.7
|
52.8
|
1,715.5
|
|||||||||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
-
|
(1,453.0
|
)
|
|||||||||||||||||
Net goodwill
|
$
|
46.7
|
$
|
-
|
$
|
49.3
|
$
|
-
|
$
|
113.7
|
$
|
52.8
|
$
|
262.5
|
·
|
Level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date;
|
·
|
Level 2 - inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and
|
·
|
Level 3 - unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing assets or liabilities based on the best information available.
|
·
|
the assets and liabilities of The Jones Group Inc. Deferred Compensation Plan (the "Rabbi Trust"), which represent deferred employee compensation invested in mutual funds and which fall within Level 1 of the fair value hierarchy;
|
·
|
deferred director fees, which represent phantom units of our common stock that have a fair value based on the market price of our common stock and which fall within Level 1 of the fair value hierarchy;
|
·
|
foreign currency forward contracts, which have fair values calculated by comparing foreign exchange forward rates to the contract rates discounted at our incremental borrowing rate, which fall within Level 2 of the fair value hierarchy;
|
·
|
interest rate swap and cap contracts, which have or had fair values calculated by comparing current yield curves and LIBOR rates to the stated contract rates adjusted for estimated risk of counterparty nonperformance, which fall within Level 2 of the fair value hierarchy;
|
·
|
long-term debt that was hedged by interest rate swaps as a fair-value hedge, calculated by comparing current yield curves and LIBOR rates to the stated contract rates of the associated interest rate swaps, which falls within Level 2 of the fair value hierarchy; and
|
·
|
consideration liabilities recorded as a result of the acquisition of Moda Nicola International, LLC ("Moda") and Stuart Weitzman Holdings, LLC ("SWH"), which have fair values based on our projections of financial results and cash flows for the acquired business and a discount factor based on our weighted average cost of capital, and which fall within Level 3 of the fair value hierarchy.
|
(In millions)
Description
|
Classification
|
Total Value
|
Quoted prices in active markets for identical assets (Level 1)
|
Significant other observable inputs (Level 2)
|
Significant unobserv-able inputs (Level 3)
|
||||||||||||
October 1, 2011:
|
|
||||||||||||||||
Rabbi Trust assets
|
Prepaid expenses and other current assets
|
$
|
7.7
|
$
|
7.7
|
$
|
-
|
$
|
-
|
||||||||
Canadian Dollar – U.S. Dollar forward contracts
|
Prepaid expenses and other current assets
|
0.1
|
-
|
0.1
|
-
|
||||||||||||
Interest rate swap
|
Other long-term assets
|
6.3
|
-
|
6.3
|
-
|
||||||||||||
Interest rate cap
|
Other long-term assets
|
0.2
|
-
|
0.2
|
-
|
||||||||||||
Total assets
|
$
|
14.3
|
$
|
7.7
|
$
|
6.6
|
$
|
-
|
|||||||||
Rabbi Trust liabilities
|
Accrued employee compensation and benefits
|
$
|
7.7
|
$
|
7.7
|
$
|
-
|
$
|
-
|
||||||||
Deferred director fees
|
Accrued expenses and other current liabilities
|
0.2
|
0.2
|
-
|
-
|
||||||||||||
Acquisition consideration
|
Current portion of acquisition consideration payable
|
20.8
|
-
|
-
|
20.8
|
||||||||||||
5.125% Senior Notes due 2014
|
Long-term debt
|
264.3
|
-
|
264.3
|
-
|
||||||||||||
Acquisition consideration
|
Acquisition consideration payable, net of current portion
|
190.6
|
-
|
-
|
190.6
|
||||||||||||
Total liabilities
|
$
|
483.6
|
$
|
7.9
|
$
|
264.3
|
$
|
211.4
|
|||||||||
December 31, 2011:
|
|
||||||||||||||||
Rabbi Trust assets
|
Prepaid expenses and other current assets
|
$
|
7.5
|
$
|
7.5
|
$
|
-
|
$
|
-
|
||||||||
Interest rate swaps
|
Other long-term assets
|
5.5
|
-
|
5.5
|
-
|
||||||||||||
Interest rate cap
|
Other long-term assets
|
0.2
|
-
|
0.2
|
-
|
||||||||||||
Canadian Dollar – U.S. Dollar forward contracts
|
Prepaid expenses and other current assets
|
0.1
|
-
|
0.1
|
-
|
||||||||||||
Total assets
|
$
|
13.3
|
$
|
7.5
|
$
|
5.8
|
$
|
-
|
|||||||||
Rabbi Trust liabilities
|
Accrued employee compensation and benefits
|
$
|
7.5
|
$
|
7.5
|
$
|
-
|
$
|
-
|
||||||||
Deferred director fees
|
Accrued expenses and other current liabilities
|
0.2
|
0.2
|
-
|
-
|
||||||||||||
Acquisition consideration
|
Current portion of acquisition consideration payable
|
192.7
|
-
|
-
|
192.7
|
||||||||||||
5.125% Senior Notes due 2014
|
Long-term debt
|
263.0
|
-
|
263.0
|
-
|
||||||||||||
Acquisition consideration
|
Acquisition consideration payable, net of current portion
|
17.7
|
-
|
-
|
17.7
|
||||||||||||
Total liabilities
|
$
|
481.1
|
$
|
7.7
|
$
|
263.0
|
$
|
210.4
|
|||||||||
September 29, 2012:
|
|
||||||||||||||||
Rabbi Trust assets
|
Prepaid expenses and other current assets
|
$
|
8.2
|
$
|
8.2
|
$
|
-
|
$
|
-
|
||||||||
British Pound– U.S. Dollar forward contracts
|
Prepaid expenses and other current assets
|
0.1
|
-
|
0.1
|
-
|
||||||||||||
Interest rate cap
|
Other long-term assets
|
-
|
-
|
-
|
-
|
||||||||||||
Total assets
|
$
|
8.3
|
$
|
8.2
|
$
|
0.1
|
$
|
-
|
|||||||||
Rabbi Trust liabilities
|
Accrued employee compensation and benefits
|
$
|
8.2
|
$
|
8.2
|
$
|
-
|
$
|
-
|
||||||||
Canadian Dollar – U.S. Dollar forward contracts
|
Accrued expenses and other current liabilities
|
0.1
|
-
|
0.1
|
-
|
||||||||||||
Deferred director fees
|
Accrued expenses and other current liabilities
|
0.2
|
0.2
|
-
|
-
|
||||||||||||
Acquisition consideration
|
Current portion of acquisition consideration payable
|
230.2
|
-
|
-
|
230.2
|
||||||||||||
Acquisition consideration
|
Acquisition consideration payable, net of current portion
|
5.0
|
-
|
-
|
5.0
|
||||||||||||
Total liabilities
|
$
|
243.7
|
$
|
8.4
|
$
|
0.1
|
$
|
235.2
|
(In millions)
|
Acquisition of Moda
|
Acquisition of SWH
|
Total Acquisition Consideration Payable
|
|||||||||
Beginning balance, January 1, 2011
|
$
|
22.9
|
$
|
191.0
|
$
|
213.9
|
||||||
Payments
|
-
|
(13.2
|
)
|
(13.2
|
)
|
|||||||
Total adjustments included in earnings
|
(8.3
|
)
|
19.0
|
10.7
|
||||||||
Balance, October 1, 2011
|
$
|
14.6
|
$
|
196.8
|
$
|
211.4
|
||||||
Beginning balance, January 1, 2012
|
$
|
14.8
|
$
|
195.6
|
$
|
210.4
|
||||||
Payments
|
(3.5
|
)
|
(15.7
|
)
|
(19.2
|
)
|
||||||
Total adjustments included in earnings
|
(3.8
|
)
|
47.8
|
44.0
|
||||||||
Balance, September 29, 2012
|
$
|
7.5
|
$
|
227.7
|
$
|
235.2
|
(In millions)
|
Fair Value at September 29, 2012
|
Valuation
technique
|
Unobservable
inputs
|
Range
(Weighted Average)
|
||||
Acquisition of Moda
|
$
|
7.5
|
Discounted projection of financial results
|
Net sales growth
Gross margin multiplier
Discount rate
|
-30% - +10% (-3.8%)
1.63 - 1.70 (1.68)
11.7%
|
|||
Acquisition of SWH
|
$
|
227.7
|
Discounted projection of financial results and future cash flow
|
EBITDA (1) growth
EBITDA (1) multiplier
Discount rate
|
-11% - +29% (8.7%)
8.0 – 9.0 (8.6)
11.7%
|
(In millions)
|
Fair Value Measurements Using
|
|||||||||||||||||||
Description
|
Carrying Value
|
Quoted prices in active markets for identical assets (Level 1)
|
Significant other observable inputs (Level 2)
|
Significant unobserv-able inputs (Level 3)
|
Total
losses recorded for the fiscal nine months
|
|||||||||||||||
At October 1, 2011:
|
||||||||||||||||||||
Property and equipment
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4.7
|
||||||||||
Transportation equipment
|
0.6
|
0.6
|
-
|
-
|
0.4
|
|||||||||||||||
At September 29, 2012:
|
||||||||||||||||||||
Property and equipment
|
-
|
-
|
-
|
-
|
0.4
|
(In millions)
|
September 29, 2012
|
October 1, 2011
|
December 31, 2011
|
|||||||||||||||||||||||||
|
Fair Value Level
|
Carrying Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
|||||||||||||||||||||
Senior Notes, including hedged items recorded at fair value
|
1
|
$
|
926.2
|
$
|
879.6
|
$
|
823.3
|
$
|
709.7
|
$
|
821.7
|
$
|
692.6
|
|||||||||||||||
Other long-term debt, including current portion
|
2
|
10.2
|
9.3
|
10.0
|
8.5
|
9.8
|
8.2
|
|||||||||||||||||||||
Note receivable from GRI
|
2
|
-
|
-
|
10.0
|
10.0
|
10.0
|
10.0
|
(In millions)
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||
|
September 29,
2012
|
October 1,
2011
|
September 29,
2012
|
October 1,
2011
|
||||||||||||
Interest rate swaps
|
$
|
-
|
$
|
(0.3
|
)
|
$
|
1.3
|
$
|
0.9
|
|||||||
Interest rate cap
|
-
|
0.4
|
0.2
|
1.1
|
||||||||||||
Net increase in interest expense
|
$
|
-
|
$
|
0.1
|
$
|
1.5
|
$
|
2.0
|
(In millions)
|
Notional Amounts
|
|||||||||||
|
September 29,
2012
|
October 1,
2011
|
December 31,
2011
|
|||||||||
Canadian Dollar – U.S. Dollar forward exchange contracts
|
US$4.1
|
US$3.2
|
US$5.3
|
|||||||||
British Pound – U.S. Dollar forward exchange contracts
|
£
|
9.0
|
-
|
-
|
(In millions)
|
September 29, 2012
|
October 1, 2011
|
December 31, 2011
|
||||||||||||
|
Balance Sheet Location
|
Fair Value
|
Balance Sheet Location
|
Fair Value
|
Balance Sheet Location
|
Fair Value
|
|||||||||
Derivatives designated as hedging instruments
|
|
|
|
||||||||||||
Interest rate swap contracts
|
|
Other long-term assets
|
$
|
6.3
|
Other long-term assets
|
$
|
5.5
|
||||||||
Foreign exchange contracts
|
|
Prepaid expenses and other current assets
|
0.1
|
Prepaid expenses and other current assets
|
0.1
|
||||||||||
Total derivative assets
|
|
|
$
|
6.4
|
|
$
|
5.6
|
||||||||
Foreign exchange contracts
|
Accrued expenses and other current liabilities
|
$
|
0.1
|
|
|
||||||||||
Total derivative liabilities
|
|
$
|
0.1
|
|
|
||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
||||||||||||
Foreign exchange contracts
|
Prepaid expenses and other current assets
|
$
|
0.1
|
|
$
|
-
|
|
$
|
-
|
||||||
Interest rate cap contract
|
|
-
|
Other long-term assets
|
0.2
|
Other long-term assets
|
0.2
|
|||||||||
Total derivative assets
|
|
$
|
0.1
|
|
$
|
0.2
|
|
$
|
0.2
|
(In millions)
|
|
Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income
|
|||||||
Derivative type
|
Location of Pretax (Loss)
due to Ineffectiveness
Recognized in Income
|
Fiscal Nine
Months Ended
September 29, 2012
|
Fiscal Nine
Months Ended
October 1,
2011
|
||||||
Interest rate swap contracts
|
Interest expense
|
$
|
(1.3
|
)
|
$
|
(0.9
|
)
|
(In millions)
|
Amount of Pretax (Loss) Recognized in Other Comprehensive Income
|
Amount of Pretax (Loss) Reclassified from Other Comprehensive Income
into Income
|
|||||||||||||||
Derivative type
|
Fiscal Nine Months Ended
September 29, 2012
|
Fiscal Nine Months Ended
October 1,
2011
|
Location of Pretax
(Loss) Reclassified
from Other Comprehensive
Income into Income
|
Fiscal Nine Months Ended
September 29, 2012
|
Fiscal Nine Months Ended
October 1,
2011
|
||||||||||||
Canadian Dollar – U.S. Dollar forward contracts
|
$
|
(0.2
|
)
|
$
|
(0.3
|
)
|
Cost of sales
|
$
|
(0.1
|
)
|
$
|
(0.8
|
)
|
(In millions)
|
|
Amount of Pretax Gain (Loss)
Recognized in Income
|
|||||||
Derivative type
|
Location of Pretax Gain (Loss)
Recognized in Income
|
Fiscal Nine
Months Ended
September 29, 2012
|
Fiscal Nine
Months Ended
October 1, 2011
|
||||||
Interest rate cap contract
|
Interest expense
|
$
|
(0.2
|
)
|
$
|
(1.1
|
)
|
||
British Pound – U.S. Dollar forward contracts
|
Selling, general and administrative expenses
|
0.1
|
0.1
|
Fiscal Nine Months Ended
|
September 29, 2012
|
October 1,
2011
|
||||||
(In millions)
|
||||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest
|
$
|
41.4
|
$
|
31.4
|
||||
Net income tax payments (refunds)
|
4.8
|
(5.3
|
)
|
|||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||
Restricted stock issued to employees
|
22.1
|
26.6
|
||||||
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger
|
-
|
10.2
|
(In millions)
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||
|
September 29, 2012
|
October 1,
2011
|
September 29, 2012
|
October 1,
2011
|
||||||||||||
Interest cost
|
$
|
0.6
|
$
|
0.7
|
$
|
1.9
|
$
|
2.0
|
||||||||
Expected return on plan assets
|
(0.7
|
)
|
(0.6
|
)
|
(2.0
|
)
|
(1.9
|
)
|
||||||||
Amortization of net loss
|
0.6
|
0.3
|
1.7
|
1.2
|
||||||||||||
Net periodic benefit cost
|
$
|
0.5
|
$
|
0.4
|
$
|
1.6
|
$
|
1.3
|
(In millions)
|
Domestic Wholesale Sportswear
|
Domestic Wholesale Jeanswear
|
Domestic Wholesale Footwear & Access-ories
|
Domestic Retail
|
International Wholesale
|
International Retail
|
Licensing, Other & Eliminations
|
Consolidated
|
||||||||||||||||||||||||
For the fiscal quarter ended September 29, 2012
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
208.7
|
$
|
202.3
|
$
|
289.9
|
$
|
140.0
|
$
|
94.3
|
$
|
89.7
|
$
|
10.5
|
$
|
1,035.4
|
||||||||||||||||
Segment income (loss)
|
$
|
12.9
|
$
|
15.3
|
$
|
29.3
|
$
|
(15.5
|
)
|
$
|
9.4
|
$
|
2.3
|
$
|
9.0
|
62.7
|
||||||||||||||||
Net interest expense
|
(37.7
|
)
|
||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
25.0
|
||||||||||||||||||||||||||||||
For the fiscal quarter ended October 1, 2011
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
243.9
|
$
|
187.1
|
$
|
264.3
|
$
|
150.1
|
$
|
99.6
|
$
|
85.3
|
$
|
12.7
|
$
|
1,043.0
|
||||||||||||||||
Segment income (loss)
|
$
|
28.2
|
$
|
8.9
|
$
|
27.8
|
$
|
(16.2
|
)
|
$
|
11.7
|
$
|
0.6
|
$
|
(0.6
|
)
|
60.4
|
|||||||||||||||
Net interest expense
|
(0.7
|
)
|
||||||||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
0.5
|
|||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
60.2
|
||||||||||||||||||||||||||||||
For the fiscal nine months ended September 29, 2012
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
617.1
|
$
|
538.1
|
$
|
711.2
|
$
|
418.7
|
$
|
243.1
|
$
|
264.9
|
$
|
33.1
|
$
|
2,826.2
|
||||||||||||||||
Segment income (loss)
|
$
|
45.1
|
$
|
38.9
|
$
|
46.0
|
$
|
(40.8
|
)
|
$
|
29.0
|
$
|
1.0
|
$
|
5.4
|
124.6
|
||||||||||||||||
Net interest expense
|
(89.2
|
)
|
||||||||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
1.4
|
|||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
36.8
|
||||||||||||||||||||||||||||||
For the fiscal nine months ended October 1, 2011
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
715.6
|
$
|
611.7
|
$
|
673.3
|
$
|
451.8
|
$
|
255.3
|
$
|
148.9
|
$
|
35.1
|
$
|
2,891.7
|
||||||||||||||||
Segment income (loss)
|
$
|
81.2
|
$
|
48.8
|
$
|
43.6
|
$
|
(34.2
|
)
|
$
|
30.4
|
$
|
2.5
|
$
|
(5.9
|
)
|
166.4
|
|||||||||||||||
Net interest expense
|
(58.8
|
)
|
||||||||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
2.6
|
|||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
110.2
|
|
September 29, 2012
|
December 31, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
187.2
|
$
|
46.9
|
$
|
-
|
$
|
234.1
|
$
|
195.8
|
$
|
43.0
|
$
|
-
|
$
|
238.8
|
||||||||||||||||
Accounts receivable
|
289.7
|
196.5
|
-
|
486.2
|
182.9
|
156.7
|
-
|
339.6
|
||||||||||||||||||||||||
Inventories
|
283.2
|
241.9
|
(1.4
|
)
|
523.7
|
270.5
|
220.9
|
(0.3
|
)
|
491.1
|
||||||||||||||||||||||
Prepaid and refundable income taxes
|
18.0
|
3.9
|
(19.7
|
)
|
2.2
|
5.3
|
4.9
|
1.7
|
11.9
|
|||||||||||||||||||||||
Deferred taxes
|
18.0
|
14.5
|
-
|
32.5
|
13.2
|
13.2
|
-
|
26.4
|
||||||||||||||||||||||||
Prepaid expenses and other current assets
|
23.6
|
20.1
|
(1.3
|
)
|
42.4
|
21.5
|
26.2
|
-
|
47.7
|
|||||||||||||||||||||||
Total current assets
|
819.7
|
523.8
|
(22.4
|
)
|
1,321.1
|
689.2
|
464.9
|
1.4
|
1,155.5
|
|||||||||||||||||||||||
Property, plant and equipment
|
63.7
|
212.5
|
-
|
276.2
|
64.9
|
206.5
|
-
|
271.4
|
||||||||||||||||||||||||
Due from affiliates
|
-
|
288.8
|
(288.8
|
)
|
-
|
-
|
1,604.4
|
(1,604.4
|
)
|
-
|
||||||||||||||||||||||
Goodwill
|
49.4
|
213.1
|
-
|
262.5
|
46.7
|
208.6
|
-
|
255.3
|
||||||||||||||||||||||||
Other intangibles
|
6.2
|
895.3
|
-
|
901.5
|
6.9
|
890.5
|
-
|
897.4
|
||||||||||||||||||||||||
Deferred taxes
|
93.2
|
-
|
(93.2
|
)
|
-
|
80.6
|
-
|
(80.6
|
)
|
-
|
||||||||||||||||||||||
Investments in subsidiaries
|
1,761.8
|
38.4
|
(1,761.8
|
)
|
38.4
|
3,047.9
|
35.6
|
(3,047.9
|
)
|
35.6
|
||||||||||||||||||||||
Other assets
|
70.1
|
29.7
|
-
|
99.8
|
79.3
|
20.8
|
-
|
100.1
|
||||||||||||||||||||||||
Total assets
|
$
|
2,864.1
|
$
|
2,201.6
|
$
|
(2,166.2
|
)
|
$
|
2,899.5
|
$
|
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
|
230.2
|
-
|
-
|
230.2
|
192.7
|
1.4
|
-
|
194.1
|
||||||||||||||||||||||||
Accounts payable
|
151.8
|
100.4
|
-
|
252.2
|
139.7
|
96.5
|
-
|
236.2
|
||||||||||||||||||||||||
Income taxes payable
|
10.0
|
47.5
|
(40.0
|
)
|
17.5
|
11.2
|
8.3
|
(18.1
|
)
|
1.4
|
||||||||||||||||||||||
Accrued expenses and other current liabilities
|
74.6
|
78.7
|
(1.3
|
)
|
152.0
|
79.0
|
67.3
|
-
|
146.3
|
|||||||||||||||||||||||
Total current liabilities
|
466.6
|
228.7
|
(41.3
|
)
|
654.0
|
422.6
|
175.5
|
(18.1
|
)
|
580.0
|
||||||||||||||||||||||
Long-term debt
|
936.3
|
-
|
-
|
936.3
|
831.3
|
0.1
|
-
|
831.4
|
||||||||||||||||||||||||
Obligations under capital leases
|
-
|
21.8
|
-
|
21.8
|
-
|
23.3
|
-
|
23.3
|
||||||||||||||||||||||||
Deferred taxes
|
-
|
165.7
|
(99.2
|
)
|
66.5
|
-
|
160.0
|
(86.6
|
)
|
73.4
|
||||||||||||||||||||||
Income taxes payable
|
0.3
|
-
|
-
|
0.3
|
6.7
|
-
|
-
|
6.7
|
||||||||||||||||||||||||
Acquisition consideration payable
|
5.0
|
-
|
-
|
5.0
|
17.7
|
-
|
-
|
17.7
|
||||||||||||||||||||||||
Due to affiliates
|
288.8
|
-
|
(288.8
|
)
|
-
|
1,604.4
|
-
|
(1,604.4
|
)
|
-
|
||||||||||||||||||||||
Other
|
93.9
|
23.5
|
-
|
117.4
|
67.7
|
25.7
|
-
|
93.4
|
||||||||||||||||||||||||
Total liabilities
|
1,790.9
|
439.7
|
(429.3
|
)
|
1,801.3
|
2,950.4
|
384.6
|
(1,709.1
|
)
|
1,625.9
|
||||||||||||||||||||||
Redeemable noncontrolling interest
|
-
|
0.6
|
-
|
0.6
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Equity:
|
||||||||||||||||||||||||||||||||
Common stock and additional paid-in capital
|
523.0
|
948.1
|
(948.1
|
)
|
523.0
|
522.6
|
2,352.4
|
(2,352.4
|
)
|
522.6
|
||||||||||||||||||||||
Retained earnings
|
567.1
|
808.5
|
(785.1
|
)
|
590.5
|
572.1
|
704.3
|
(680.2
|
)
|
596.2
|
||||||||||||||||||||||
Accumulated other comprehensive (loss) income
|
(16.9
|
)
|
3.7
|
(3.7
|
)
|
(16.9
|
)
|
(29.6
|
)
|
(10.2
|
)
|
10.2
|
(29.6
|
)
|
||||||||||||||||||
Total Jones stockholders' equity
|
1,073.2
|
1,760.3
|
(1,736.9
|
)
|
1,096.6
|
1,065.1
|
3,046.5
|
(3,022.4
|
)
|
1,089.2
|
||||||||||||||||||||||
Noncontrolling interests
|
-
|
1.0
|
-
|
1.0
|
-
|
0.2
|
-
|
0.2
|
||||||||||||||||||||||||
Total equity
|
1,073.2
|
1,761.3
|
(1,736.9
|
)
|
1,097.6
|
1,065.1
|
3,046.7
|
(3,022.4
|
)
|
1,089.4
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
2,864.1
|
$
|
2,201.6
|
$
|
(2,166.2
|
)
|
$
|
2,899.5
|
$
|
4,015.5
|
$
|
3,431.3
|
$
|
(4,731.5
|
)
|
$
|
2,715.3
|
|
Fiscal Quarter Ended
September 29, 2012
|
Fiscal Quarter Ended
October 1, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
Net sales
|
$
|
633.2
|
$
|
399.1
|
$
|
(7.7
|
)
|
$
|
1,024.6
|
$
|
665.0
|
$
|
371.1
|
$
|
(6.0
|
)
|
$
|
1,030.1
|
||||||||||||||
Licensing income
|
-
|
10.5
|
-
|
10.5
|
-
|
12.7
|
-
|
12.7
|
||||||||||||||||||||||||
Other revenues
|
0.3
|
-
|
-
|
0.3
|
0.2
|
-
|
-
|
0.2
|
||||||||||||||||||||||||
Total revenues
|
633.5
|
409.6
|
(7.7
|
)
|
1,035.4
|
665.2
|
383.8
|
(6.0
|
)
|
1,043.0
|
||||||||||||||||||||||
Cost of goods sold
|
430.3
|
246.1
|
(5.6
|
)
|
670.8
|
443.9
|
230.3
|
(3.1
|
)
|
671.1
|
||||||||||||||||||||||
Gross profit
|
203.2
|
163.5
|
(2.1
|
)
|
364.6
|
221.3
|
153.5
|
(2.9
|
)
|
371.9
|
||||||||||||||||||||||
Selling, general and administrative expenses
|
214.2
|
89.8
|
(2.1
|
)
|
301.9
|
227.2
|
86.9
|
(2.6
|
)
|
311.5
|
||||||||||||||||||||||
Operating (loss) income
|
(11.0
|
)
|
73.7
|
-
|
62.7
|
(5.9
|
)
|
66.6
|
(0.3
|
)
|
60.4
|
|||||||||||||||||||||
Net interest expense and financing costs
|
36.3
|
1.4
|
-
|
37.7
|
0.7
|
-
|
-
|
0.7
|
||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
-
|
-
|
-
|
-
|
-
|
0.5
|
-
|
0.5
|
||||||||||||||||||||||||
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries
|
(47.3
|
)
|
72.3
|
-
|
25.0
|
(6.6
|
)
|
67.1
|
(0.3
|
)
|
60.2
|
|||||||||||||||||||||
(Benefit) provision for income taxes
|
(10.3
|
)
|
17.5
|
-
|
7.2
|
3.6
|
33.9
|
(18.5
|
)
|
19.0
|
||||||||||||||||||||||
Equity in earnings of subsidiaries
|
54.3
|
-
|
(54.3
|
)
|
-
|
33.1
|
-
|
(33.1
|
)
|
-
|
||||||||||||||||||||||
Net income
|
17.3
|
54.8
|
(54.3
|
)
|
17.8
|
22.9
|
33.2
|
(14.9
|
)
|
41.2
|
||||||||||||||||||||||
Less: income attributable to noncontrolling interest
|
-
|
0.4
|
-
|
0.4
|
-
|
0.2
|
-
|
0.2
|
||||||||||||||||||||||||
Income attributable to Jones
|
$
|
17.3
|
$
|
54.4
|
$
|
(54.3
|
)
|
$
|
17.4
|
$
|
22.9
|
$
|
33.0
|
$
|
(14.9
|
)
|
$
|
41.0
|
|
Fiscal Nine Months
Ended September 29, 2012
|
Fiscal Nine Months
Ended October 1, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
Net sales
|
$
|
1,720.4
|
$
|
1,092.4
|
$
|
(20.5
|
)
|
$
|
2,792.3
|
$
|
1,840.0
|
$
|
1,031.4
|
$
|
(15.5
|
)
|
$
|
2,855.9
|
||||||||||||||
Licensing income
|
-
|
33.0
|
-
|
33.0
|
0.1
|
35.0
|
-
|
35.1
|
||||||||||||||||||||||||
Other revenues
|
0.9
|
-
|
-
|
0.9
|
0.7
|
-
|
-
|
0.7
|
||||||||||||||||||||||||
Total revenues
|
1,721.3
|
1,125.4
|
(20.5
|
)
|
2,826.2
|
1,840.8
|
1,066.4
|
(15.5
|
)
|
2,891.7
|
||||||||||||||||||||||
Cost of goods sold
|
1,141.5
|
663.6
|
(13.1
|
)
|
1,792.0
|
1,208.5
|
664.4
|
(6.8
|
)
|
1,866.1
|
||||||||||||||||||||||
Gross profit
|
579.8
|
461.8
|
(7.4
|
)
|
1,034.2
|
632.3
|
402.0
|
(8.7
|
)
|
1,025.6
|
||||||||||||||||||||||
Selling, general and administrative expenses
|
637.0
|
278.9
|
(6.3
|
)
|
909.6
|
675.1
|
192.3
|
(8.2
|
)
|
859.2
|
||||||||||||||||||||||
Operating (loss) income
|
(57.2
|
)
|
182.9
|
(1.1
|
)
|
124.6
|
(42.8
|
)
|
209.7
|
(0.5
|
)
|
166.4
|
||||||||||||||||||||
Net interest expense (income) and financing costs
|
88.7
|
0.5
|
-
|
89.2
|
61.3
|
(2.5
|
)
|
-
|
58.8
|
|||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
-
|
1.4
|
-
|
1.4
|
-
|
2.6
|
-
|
2.6
|
||||||||||||||||||||||||
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries
|
(145.9
|
)
|
183.8
|
(1.1
|
)
|
36.8
|
(104.1
|
)
|
214.8
|
(0.5
|
)
|
110.2
|
||||||||||||||||||||
(Benefit) provision for income taxes
|
(38.4
|
)
|
50.4
|
(0.4
|
)
|
11.6
|
(19.8
|
)
|
76.1
|
(18.5
|
)
|
37.8
|
||||||||||||||||||||
Equity in earnings of subsidiaries
|
132.6
|
-
|
(132.6
|
)
|
-
|
138.1
|
-
|
(138.1
|
)
|
-
|
||||||||||||||||||||||
Net income
|
25.1
|
133.4
|
(133.3
|
)
|
25.2
|
53.8
|
138.7
|
(120.1
|
)
|
72.4
|
||||||||||||||||||||||
Less: income attributable to noncontrolling interest
|
-
|
0.9
|
-
|
0.9
|
-
|
0.6
|
-
|
0.6
|
||||||||||||||||||||||||
Income attributable to Jones
|
$
|
25.1
|
$
|
132.5
|
$
|
(133.3
|
)
|
$
|
24.3
|
$
|
53.8
|
$
|
138.1
|
$
|
(120.1
|
)
|
$
|
71.8
|
|
Fiscal Quarter Ended
September 29, 2012
|
Fiscal Quarter Ended
October 1, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
Net income
|
$
|
17.3
|
$
|
54.8
|
$
|
(54.3
|
)
|
$
|
17.8
|
$
|
22.9
|
$
|
33.2
|
$
|
(14.9
|
)
|
$
|
41.2
|
||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Change in fair value of cash flow hedges, net of tax
|
(0.3
|
)
|
(0.3
|
)
|
0.3
|
(0.3
|
)
|
0.2
|
0.2
|
(0.2
|
)
|
0.2
|
||||||||||||||||||||
Reclassification adjustment for hedge gains and losses included in net income, net of tax
|
-
|
-
|
-
|
-
|
0.2
|
0.2
|
(0.2
|
)
|
0.2
|
|||||||||||||||||||||||
Foreign currency translation adjustments
|
11.6
|
11.4
|
(11.4
|
)
|
11.6
|
(12.3
|
)
|
(12.3
|
)
|
12.3
|
(12.3
|
)
|
||||||||||||||||||||
Total other comprehensive income (loss)
|
11.3
|
11.1
|
(11.1
|
)
|
11.3
|
(11.9
|
)
|
(11.9
|
)
|
11.9
|
(11.9
|
)
|
||||||||||||||||||||
Comprehensive income
|
$
|
28.6
|
$
|
65.9
|
$
|
(65.4
|
)
|
$
|
29.1
|
$
|
11.0
|
$
|
21.3
|
$
|
(3.0
|
)
|
$
|
29.3
|
|
Fiscal Nine Months
Ended September 29, 2012
|
Fiscal Nine Months
Ended October 1, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
Net income
|
$
|
25.1
|
$
|
133.4
|
$
|
(133.3
|
)
|
$
|
25.2
|
$
|
53.8
|
$
|
138.7
|
$
|
(120.1
|
)
|
$
|
72.4
|
||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Change in fair value of cash flow hedges, net of tax
|
(0.1
|
)
|
(0.1
|
)
|
0.1
|
(0.1
|
)
|
(0.2
|
)
|
(0.2
|
)
|
0.2
|
(0.2
|
)
|
||||||||||||||||||
Reclassification adjustment for hedge gains and losses included in net income, net of tax
|
0.1
|
0.1
|
(0.1
|
)
|
0.1
|
0.6
|
0.6
|
(0.6
|
)
|
0.6
|
||||||||||||||||||||||
Foreign currency translation adjustments
|
12.7
|
12.5
|
(12.5
|
)
|
12.7
|
(13.8
|
)
|
(13.8
|
)
|
13.8
|
(13.8
|
)
|
||||||||||||||||||||
Total other comprehensive income (loss)
|
12.7
|
12.5
|
(12.5
|
)
|
12.7
|
(13.4
|
)
|
(13.4
|
)
|
13.4
|
(13.4
|
)
|
||||||||||||||||||||
Comprehensive income
|
$
|
37.8
|
$
|
145.9
|
$
|
(145.8
|
)
|
$
|
37.9
|
$
|
40.4
|
$
|
125.3
|
$
|
(106.7
|
)
|
$
|
59.0
|
|
Fiscal Nine Months
Ended September 29, 2012
|
Fiscal Nine Months
Ended October 1, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
Net cash (used in) provided by operating activities
|
$
|
(46.5
|
)
|
$
|
72.2
|
$
|
(12.6
|
)
|
$
|
13.1
|
$
|
(31.1
|
)
|
$
|
53.7
|
$
|
(16.2
|
)
|
$
|
6.4
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||||||||||
Capital expenditures
|
(14.6
|
)
|
(42.5
|
)
|
-
|
(57.1
|
)
|
(32.7
|
)
|
(40.0
|
)
|
-
|
(72.7
|
)
|
||||||||||||||||||
Acquisition of Brian Atwood, net of cash acquired
|
(5.0
|
)
|
0.6
|
-
|
(4.4
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Contingent consideration paid related to investment in GRI
|
-
|
(3.5
|
)
|
-
|
(3.5
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Acquisition of KG Group Holdings Limited, net of cash acquired
|
-
|
-
|
-
|
-
|
(150.0
|
)
|
6.9
|
-
|
(143.1
|
)
|
||||||||||||||||||||||
Payments related to acquisition of Moda Nicola International, LLC
|
-
|
-
|
-
|
-
|
(2.5
|
)
|
-
|
-
|
(2.5
|
)
|
||||||||||||||||||||||
Proceeds from sale of trademark
|
-
|
5.0
|
-
|
5.0
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Other
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
-
|
0.1
|
-
|
0.1
|
||||||||||||||||||||||
Net cash used in investing activities
|
(19.6
|
)
|
(40.5
|
)
|
-
|
(60.1
|
)
|
(185.2
|
)
|
(33.0
|
)
|
-
|
(218.2
|
)
|
||||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||||||||||
Issuance of 6.875% Senior Notes due 2019
|
103.5
|
-
|
-
|
103.5
|
300.0
|
-
|
-
|
300.0
|
||||||||||||||||||||||||
Debt issuance costs
|
(2.3
|
)
|
-
|
-
|
(2.3
|
)
|
(6.6
|
)
|
-
|
-
|
(6.6
|
)
|
||||||||||||||||||||
Costs related to revolving credit agreement
|
(0.3
|
)
|
-
|
-
|
(0.3
|
)
|
(3.0
|
)
|
-
|
-
|
(3.0
|
)
|
||||||||||||||||||||
Net increase in short-term borrowings
|
-
|
-
|
-
|
-
|
55.0
|
-
|
-
|
55.0
|
||||||||||||||||||||||||
Repayment of acquired debt of KG Group Holdings Limited
|
-
|
-
|
-
|
-
|
(174.1
|
)
|
-
|
-
|
(174.1
|
)
|
||||||||||||||||||||||
Dividends paid
|
(11.7
|
)
|
(12.6
|
)
|
12.6
|
(11.7
|
)
|
(12.7
|
)
|
(16.2
|
)
|
16.2
|
(12.7
|
)
|
||||||||||||||||||
Repurchase of common shares
|
(34.0
|
)
|
-
|
-
|
(34.0
|
)
|
(78.0
|
)
|
-
|
-
|
(78.0
|
)
|
||||||||||||||||||||
Payments of acquisition consideration payable
|
-
|
(14.6
|
)
|
-
|
(14.6
|
)
|
-
|
(8.2
|
)
|
-
|
(8.2
|
)
|
||||||||||||||||||||
Other items, net
|
2.3
|
(2.1
|
)
|
-
|
0.2
|
1.7
|
(1.9
|
)
|
-
|
(0.2
|
)
|
|||||||||||||||||||||
Net cash provided by (used in) financing activities
|
57.5
|
(29.3
|
)
|
12.6
|
40.8
|
82.3
|
(26.3
|
)
|
16.2
|
72.2
|
||||||||||||||||||||||
Effect of exchange rates on cash
|
-
|
1.5
|
-
|
1.5
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents
|
(8.6
|
)
|
3.9
|
-
|
(4.7
|
)
|
(134.0
|
)
|
(5.6
|
)
|
-
|
(139.6
|
)
|
|||||||||||||||||||
Cash and cash equivalents, beginning
|
195.8
|
43.0
|
-
|
238.8
|
163.0
|
37.8
|
-
|
200.8
|
||||||||||||||||||||||||
Cash and cash equivalents, ending
|
$
|
187.2
|
$
|
46.9
|
$
|
-
|
$
|
234.1
|
$
|
29.0
|
$
|
32.2
|
$
|
-
|
$
|
61.2
|
·
|
on February 17, 2012, we announced the creation of The Jones Group Fashion Office to support the growth of core and emerging brands;
|
·
|
on July 2, 2012, we acquired an 80% interest in Brian Atwood-related intellectual property from BA Holding Group, Inc., BKA International, Inc. and Brian Atwood, we acquired 100% of the equity interests in Atwood Italia S.r.l., and we acquired certain assets and assumed certain liabilities of Brian Atwood, Ltd. (collectively, "Brian Atwood"); and
|
·
|
on September 25, 2012, we issued an additional $100.0 million of 6.875% Senior Notes due 2019.
|
(In millions)
|
Fiscal Quarter Ended
|
Fiscal Nine Months Ended
|
||||||||||||||||||||||||||||||
|
September 29, 2012
|
October 1,
2011
|
September 29, 2012
|
October 1,
2011
|
||||||||||||||||||||||||||||
Net sales
|
$
|
1,024.6
|
99.0
|
%
|
$
|
1,030.1
|
98.8
|
%
|
$
|
2,792.3
|
98.8
|
%
|
$
|
2,855.9
|
98.8
|
%
|
||||||||||||||||
Licensing income
|
10.5
|
1.0
|
12.7
|
1.2
|
33.0
|
1.2
|
35.1
|
1.2
|
||||||||||||||||||||||||
Other revenues
|
0.3
|
0.0
|
0.2
|
0.0
|
0.9
|
0.0
|
0.7
|
0.0
|
||||||||||||||||||||||||
Total revenues
|
1,035.4
|
100.0
|
1,043.0
|
100.0
|
2,826.2
|
100.0
|
2,891.7
|
100.0
|
||||||||||||||||||||||||
Cost of goods sold
|
670.8
|
64.8
|
671.1
|
64.3
|
1,792.0
|
63.4
|
1,866.1
|
64.5
|
||||||||||||||||||||||||
Gross profit
|
364.6
|
35.2
|
371.9
|
35.7
|
1,034.2
|
36.6
|
1,025.6
|
35.5
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
301.9
|
29.2
|
311.5
|
29.9
|
909.6
|
32.2
|
859.2
|
29.7
|
||||||||||||||||||||||||
Operating income
|
62.7
|
6.1
|
60.4
|
5.8
|
124.6
|
4.4
|
166.4
|
5.8
|
||||||||||||||||||||||||
Net interest expense and financing costs
|
37.7
|
3.6
|
0.7
|
0.1
|
89.2
|
3.2
|
58.8
|
2.0
|
||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
-
|
-
|
0.5
|
0.0
|
1.4
|
0.0
|
2.6
|
0.1
|
||||||||||||||||||||||||
Income before provision for income taxes
|
25.0
|
2.4
|
60.2
|
5.8
|
36.8
|
1.3
|
110.2
|
3.8
|
||||||||||||||||||||||||
Provision for income taxes
|
7.2
|
0.7
|
19.0
|
1.8
|
11.6
|
0.4
|
37.8
|
1.3
|
||||||||||||||||||||||||
Net income
|
17.8
|
1.7
|
41.2
|
4.0
|
25.2
|
0.9
|
72.4
|
2.5
|
||||||||||||||||||||||||
Less: income attributable to noncontrolling interest
|
0.4
|
0.0
|
0.2
|
0.0
|
0.9
|
0.0
|
0.6
|
0.0
|
||||||||||||||||||||||||
Income attributable to Jones
|
$
|
17.4
|
1.7
|
%
|
$
|
41.0
|
3.9
|
%
|
$
|
24.3
|
0.9
|
%
|
$
|
71.8
|
2.5
|
%
|
(In millions)
|
Third Fiscal Quarter
of 2012 |
Third Fiscal Quarter
of 2011 |
Increase
(Decrease
|
) |
Percent
Change
|
|||||||||||
Domestic wholesale sportswear
|
$
|
208.7
|
$
|
243.9
|
$
|
(35.2
|
)
|
(14.4
|
%)
|
|||||||
Domestic wholesale jeanswear
|
202.3
|
187.1
|
15.2
|
8.1
|
||||||||||||
Domestic wholesale footwear and accessories
|
289.9
|
264.3
|
25.6
|
9.7
|
||||||||||||
Domestic retail
|
140.0
|
150.1
|
(10.1
|
)
|
(6.7
|
)
|
||||||||||
International wholesale
|
94.3
|
99.6
|
(5.3
|
)
|
(5.3
|
)
|
||||||||||
International retail
|
89.7
|
85.3
|
4.4
|
5.2
|
||||||||||||
Licensing and other
|
10.5
|
12.7
|
(2.2
|
)
|
(17.3
|
)
|
||||||||||
Total revenues
|
$
|
1,035.4
|
$
|
1,043.0
|
$
|
(7.6
|
)
|
(0.7
|
%)
|
(In millions)
|
First Fiscal Nine Months
of 2012 |
First Fiscal Nine Months
of 2011 |
Increase
(Decrease
|
) |
Percent
Change
|
|||||||||||
Domestic wholesale sportswear
|
$
|
617.1
|
$
|
715.6
|
$
|
(98.5
|
)
|
(13.8
|
%)
|
|||||||
Domestic wholesale jeanswear
|
538.1
|
611.7
|
(73.6
|
)
|
(12.0
|
)
|
||||||||||
Domestic wholesale footwear and accessories
|
711.2
|
673.3
|
37.9
|
5.6
|
||||||||||||
Domestic retail
|
418.7
|
451.8
|
(33.1
|
)
|
(7.3
|
)
|
||||||||||
International wholesale
|
243.1
|
255.3
|
(12.2
|
)
|
(4.8
|
)
|
||||||||||
International retail
|
264.9
|
148.9
|
116.0
|
77.9
|
||||||||||||
Licensing and other
|
33.1
|
35.1
|
(2.0
|
)
|
(5.7
|
)
|
||||||||||
Total revenues
|
$
|
2,826.2
|
$
|
2,891.7
|
$
|
(65.5
|
)
|
(2.3
|
%)
|
Period
|
(a) Total
Number
of Shares
(or Units)
Purchased
|
(b) Average
Price Paid
per Share
(or Unit)
|
(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs
|
(d) Maximum Number
(or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
July 1, 2012 to
July 28, 2012
|
-
|
-
|
-
|
$186,456,711
|
July 29, 2012 to
August 25, 2012
|
-
|
-
|
-
|
$186,456,711
|
August 26, 2012 to
September 29, 2012
|
380,000
|
$13.25
|
380,000
|
$181,420,752
|
Total
|
380,000
|
$13.25
|
380,000
|
$181,420,752
|
·
|
those associated with the effect of national, regional and international economic conditions;
|
·
|
lowered levels of consumer spending resulting from a general economic downturn or lower levels of consumer confidence;
|
·
|
the tightening of the credit markets and our ability to obtain capital on satisfactory terms;
|
·
|
given the uncertain economic environment, the possible unwillingness of committed lenders to meet their obligations to lend to borrowers, in general;
|
·
|
the performance of our products within the prevailing retail environment;
|
·
|
customer acceptance of both new designs and newly-introduced product lines;
|
·
|
our reliance on a few department store groups for large portions of our business;
|
·
|
our ability to identify acquisition candidates and, in a competitive environment for such acquisitions, acquire such businesses on reasonable financial and other terms;
|
·
|
the integration of the organizations and operations of any acquired business into our existing organization and operations;
|
·
|
consolidation of our retail customers;
|
·
|
financial difficulties encountered by our customers;
|
·
|
the effects of vigorous competition in the markets in which we operate;
|
·
|
our ability to attract and retain qualified executives and other key personnel;
|
·
|
our reliance on independent foreign manufacturers, including political instability in countries where contractors and suppliers are located;
|
·
|
changes in the costs of raw materials, labor, advertising and transportation, including the impact such changes may have on the pricing of our products and the resulting impact on consumer acceptance of our products at higher price points;
|
·
|
our ability to successfully implement new operational and financial information systems; and
|
·
|
our ability to secure and protect trademarks and other intellectual property rights.
|
Exhibit No.
|
Description of Exhibit
|
31*
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32♦
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS*
|
XBRL Instance Document.
|
101.SCH*
|
XBRL Taxonomy Extension Schema.
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase.
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase.
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase.
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase.
|
EXHIBIT 31
CERTIFICATIONS
I, Wesley R. Card, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of The Jones Group Inc.; |
|
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
||
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
||
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: October 26, 2012 |
|
/s/ Wesley R. Card Wesley R. Card Chief Executive Officer |
I, John T. McClain, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of The Jones Group Inc.; |
|
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
||
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
||
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: October 26, 2012 |
|
/s/ John T. McClain John T. McClain Chief Financial Officer |
EXHIBIT 32
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Wesley R. Card, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of The Jones Group Inc. on Form 10-Q for the fiscal quarter ended September 29, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Jones Group Inc.
By: /s/ Wesley R. Card
Name: Wesley R. Card
Title: Chief Executive Officer
A signed original of this written statement required by Section 906 has been provided to The Jones Group Inc. and will be retained by Jones Apparel Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
I, John T. McClain, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of The Jones Group Inc. on Form 10-Q for the fiscal quarter ended September 29, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Jones Group Inc.
By: /s/ John T. McClain
Name: John T. McClain
Title: Chief Financial Officer
A signed original of this written statement required by Section 906 has been provided to The Jones Group Inc. and will be retained by The Jones Group Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
ACQUISITIONS (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011
|
Oct. 01, 2011
|
Jul. 02, 2012
Atwood Italia S.r.l. [Member]
|
Jul. 02, 2012
Brian Atwood Related Intellectual Property [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
|
Oct. 01, 2011
Kurt Geiger [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
Trademarks [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
Customer Relationships [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
Order Backlog [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
Favorable Lease Agreements [Member]
|
Jun. 02, 2011
Kurt Geiger [Member]
Unfavorable Lease Agreements [Member]
|
Sep. 29, 2012
Brian Atwood [Member]
|
Jul. 02, 2012
Brian Atwood [Member]
|
Jul. 02, 2012
Brian Atwood [Member]
Trademarks [Member]
|
Jul. 02, 2012
Brian Atwood [Member]
Customer Relationships [Member]
|
Jul. 02, 2012
Brian Atwood [Member]
Order Backlog [Member]
|
|
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of equity interests acquired (in hundredths) | 100.00% | 80.00% | 100.00% | |||||||||||||
Cost of acquired entity, Cash Paid | $ 150 | $ 5 | ||||||||||||||
Amount of purchase price payable rolled over into Loan Note | 10.2 | |||||||||||||||
Interest rate on Loan Note to senior managers of KG (in hundredths) | 5.00% | |||||||||||||||
Payment terms of loan note (in years) | approximately four years | |||||||||||||||
Description of Acquired Entity | Kurt Geiger markets products under four of its own brands - Kurt Geiger, KG by Kurt Geiger, Carvela and Miss KG - and over 100 other luxury brands in more than 200 retail locations, including concessions in Europe's leading department stores, including Harrods, Selfridges, Liberty, House of Fraser, Fenwick John Lewis and Brown Thomas, as well as company-operated stores. | |||||||||||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||||||||||||
Cash | 6.9 | 0.6 | ||||||||||||||
Accounts receivable | 19.7 | 0.5 | ||||||||||||||
Inventories | 55.1 | |||||||||||||||
Other current assets | 9.5 | 0.4 | ||||||||||||||
Property, plant and equipment | 27.0 | 0.1 | ||||||||||||||
Acquired Intangible Assets [Line Items] | ||||||||||||||||
Trademarks - nonamortized | 95.1 | |||||||||||||||
Finite-live intangible assets | 0.1 | 125.7 | 2.8 | 6.8 | 7.5 | 0.4 | 0.7 | |||||||||
Goodwill | 99.3 | 2.7 | ||||||||||||||
Weighted-average amortization life | 120 months | 232 months | 9 months | 99 months | 100 months | 240 months | 6 months | 3 months | ||||||||
Total assets acquired | 448.0 | 12.9 | ||||||||||||||
Accounts payable | 30.6 | 1.7 | ||||||||||||||
Notes payable | 2.8 | |||||||||||||||
Other current liabilities | 28.5 | 1.8 | ||||||||||||||
Long-term debt | 174.1 | |||||||||||||||
Unfavorable lease agreements | 0.2 | |||||||||||||||
Deferred taxes | 64.6 | 0.3 | ||||||||||||||
Other long-term liabilities | 0.1 | |||||||||||||||
Total liabilities assumed | 298.0 | 6.7 | ||||||||||||||
Fair value of noncontrolling interest | 1.2 | |||||||||||||||
Total purchase price | 150.0 | 5.0 | ||||||||||||||
Gross contractual accounts receivable acquired | 19.8 | 0.5 | ||||||||||||||
Acquisition-related costs expensed | 4.9 | 0.6 | ||||||||||||||
Business combination, pro forma information [Abstract] | ||||||||||||||||
Pro forma total revenues | 1,043.0 | 3,022.0 | ||||||||||||||
Pro forma net income | $ 42.5 | $ 70.6 | ||||||||||||||
Earnings per share attributable to Jones | ||||||||||||||||
Basic, pro forma effect (in dollars per share) | $ 0.52 | $ 0.83 | ||||||||||||||
Diluted, pro forma effect (in dollars per share) | $ 0.51 | $ 0.82 |
SEGMENT INFORMATION (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
Sep. 29, 2012
|
Oct. 01, 2011
|
|
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 6 | 6 | ||
Revenues | $ 1,035.4 | $ 1,043.0 | $ 2,826.2 | $ 2,891.7 |
Segment income (loss) | 62.7 | 60.4 | 124.6 | 166.4 |
Net interest expense | (37.7) | (0.7) | (89.2) | (58.8) |
Equity in income of unconsolidated affiliate | 0 | 0.5 | 1.4 | 2.6 |
Income before provision for income taxes | 25.0 | 60.2 | 36.8 | 110.2 |
Licensing, Other and Eliminations [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10.5 | 12.7 | 33.1 | 35.1 |
Segment income (loss) | 9.0 | (0.6) | 5.4 | (5.9) |
International Wholesale [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 94.3 | 99.6 | 243.1 | 255.3 |
Segment income (loss) | 9.4 | 11.7 | 29.0 | 30.4 |
International Retail [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 89.7 | 85.3 | 264.9 | 148.9 |
Segment income (loss) | 2.3 | 0.6 | 1.0 | 2.5 |
Domestic Wholesale Sportswear [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 208.7 | 243.9 | 617.1 | 715.6 |
Segment income (loss) | 12.9 | 28.2 | 45.1 | 81.2 |
Domestic Wholesale Jeanswear [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 202.3 | 187.1 | 538.1 | 611.7 |
Segment income (loss) | 15.3 | 8.9 | 38.9 | 48.8 |
Domestic Wholesale Footwear & Accessories [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 289.9 | 264.3 | 711.2 | 673.3 |
Segment income (loss) | 29.3 | 27.8 | 46.0 | 43.6 |
Domestic Retail [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenues | 140.0 | 150.1 | 418.7 | 451.8 |
Segment income (loss) | $ (15.5) | $ (16.2) | $ (40.8) | $ (34.2) |
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