[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
THE JONES GROUP INC.
(Exact name of registrant as specified in its charter)
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Pennsylvania
(State or other jurisdiction of
incorporation or organization)
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06-0935166
(I.R.S. Employer
Identification No.)
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1411 Broadway
New York, New York
(Address of principal executive offices)
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10018
(Zip Code)
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(212) 642-3860
(Registrant's telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
Common Stock, $0.01 par value
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Name of each exchange
on which registered
New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act: None
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Index
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Page
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PART I
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5
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24
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30
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30
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30
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30
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31
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PART II
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32
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34
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36
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51
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52
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55
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102
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102
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PART III
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103
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104
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104
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104
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104
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PART IV
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105
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106
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107
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107
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Document
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Part
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Those portions of the registrant's proxy statement for the registrant's 2013 Annual Meeting of Stockholders (the "Proxy Statement") that are specifically identified herein as incorporated by reference into this Form 10-K.
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III
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· | 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; |
· | our ability to secure and protect trademarks and other intellectual property rights; |
· | the effects of extreme or unseasonable weather conditions; and |
· | our ability to implement our strategic initiatives to enhance profitability. |
Group
|
Category
|
Products
|
Brand
|
Product Classification
|
Jones New York
|
Better
|
Skirts, blouses, pants, jackets, sweaters, suits, dresses, casual tops, outerwear, shorts, jeanswear
|
Jones New York
Jones New York Signature
Jones New York Sport
Jones New York Dress
Jones Studio
J Jones New York
|
Career
Lifestyle
Lifestyle
Dresses
Dresses, Suits
Lifestyle
|
Nine West
|
Better
|
Skirts, blouses, pants, jackets, suits, dresses
|
Nine West Dress
Nine West Suits
Nine & Co.
|
Dresses
Suits
Dresses, Suits
|
Anne Klein
|
Better
|
Skirts, blouses, pants, jackets, sweaters, vests, dresses, casual tops
|
Anne Klein
AK Sport
Anne Klein Dress
Anne Klein Suit
|
Lifestyle, Dresses
Lifestyle
Dresses
Suits
|
Rachel Roy
|
Contemporary
|
Skirts, blouses, pants, jackets, sweaters, dresses, outerwear, accessories
|
Rachel Roy New York
|
Contemporary
|
Rachel Roy
|
Better
|
Skirts, blouses, pants, jackets, sweaters, dresses
|
Rachel Rachel Roy
|
Lifestyle
|
Robert Rodriguez
|
Contemporary
|
Skirts, shorts, pants, casual tops, blouses, jackets, sweaters, dresses
|
Robert Rodriguez
|
Lifestyle
|
Robert Rodriguez
|
Better
|
Skirts, shorts, casual tops, blouses, jackets, sweaters, dresses
|
Robbi & Nikki
|
Lifestyle
|
Other
|
Bridge
|
Suits
|
Albert Nipon
|
Suits
|
Other
|
Better
|
Skirts, blouses, pants, jackets, sweaters, suits, dresses
|
Kasper
Evan-Picone
Le Suit
|
Suits, Dresses, Sportswear
Suits, Dresses, Sportswear
Suits
|
Group
|
Products
|
Brand
|
Product Classification
|
Gloria Vanderbilt
|
Skirts, blouses, shorts, jackets, sweaters, jeanswear, capris, casual tops
|
Gloria Vanderbilt
|
Casual Sportswear
|
Jessica Simpson
|
Jeanswear, pants, capris, shorts, skirts, t-shirts, casual tops, blouses, sweaters, dresses, denim jackets, casual jackets
|
Jessica Simpson
|
Lifestyle
|
Nine West
|
Skirts, blouses, pants, jackets, sweaters, casual tops, dresses, jeanswear
|
Nine West Denim
Nine West Vintage America Collection
|
Lifestyle
Lifestyle
|
l.e.i.
|
Skirts, shorts, jeanswear, capris, casual tops, sweaters, dresses
|
l.e.i.
|
Casual Sportswear
|
Energie
|
Skirts, shorts, jackets, sweaters, jeanswear, casual tops, dresses
|
Energie
|
Casual Sportswear
|
Other
|
Skirts, blouses, pants,
jackets, sweaters, jeanswear, dresses, casual tops and bottoms
|
Bandolino Blu
GLO
Grane
Erika
|
Casual Sportswear
Casual Sportswear
Casual Sportswear
Casual Sportswear
|
Footwear
|
||
Category
|
Brand
|
Product Classification
|
Designer
|
Stuart Weitzman
Brian Atwood
B Brian Atwood |
Accessible Contemporary and Modern Luxury
Accessible Contemporary and Modern Luxury Contemporary |
Contemporary
|
Rachel Roy
|
Contemporary
|
Bridge
|
Joan & David
|
Sophisticated Classics
|
Better
|
Nine West
Nine West Vintage America Collection
Enzo Angiolini
Anne Klein
Circa Joan & David
Boutique 9
Rachel Rachel Roy
|
Contemporary
Contemporary
Contemporary
Modern Classics
Traditional Classics
Contemporary
Contemporary
|
Upper
Moderate
|
Bandolino
Easy Spirit
|
Modern Classics
Comfort/Fit, Active, Sport/Casuals
|
Moderate
|
Nine & Co.
Mootsies Tootsies
Gloria Vanderbilt
Cloud 9
Westies
|
Contemporary
Modern Classics
Contemporary
Contemporary
Contemporary
|
Accessories
|
||
Category
|
Brand
|
Product Classification
|
Designer
|
Stuart Weitzman
Rafe/Rafe New York
|
Handbags
Handbags
|
Bridge
|
Judith Jack
|
Marcasite and Sterling Silver Jewelry
|
Better
|
Anne Klein
Nine West
Jones New York
Givenchy
Rachel Rachel Roy
|
Handbags and Costume Jewelry
Handbags, Small Leather Goods and Costume Jewelry
Costume Jewelry
Costume and Fashion Jewelry
Handbags and Costume Jewelry
|
Moderate
|
Nine & Co.
Napier
|
Handbags and Small Leather Goods
Costume Jewelry
|
Apparel
|
||||
Group
|
Category
|
Products
|
Brand
|
Product Classification
|
Jones New York
|
Better
|
Skirts, blouses, pants, jackets, sweaters, jeanswear, suits, dresses, casual tops, outerwear, shorts
|
Jones New York
Jones New York Signature
Jones New York Sport
Jones New York Dress
Jones New York Suit
Jones Wear
Jones & Co.
J Jones New York
|
Career
Lifestyle
Lifestyle/Casual
Dresses
Suits
Dresses
Career
Lifestyle
|
Nine West
|
Better
|
Skirts, blouses, pants, jackets, sweaters, suits, dresses, outerwear, shorts, casual tops, jeanswear
|
Nine West Dress
Nine West Suits
Nine West Separates
|
Dresses
Suits
Casual
|
Anne Klein
|
Bridge
|
Skirts, blouses, pants, jackets, sweaters, dresses
|
Anne Klein New York
|
Lifestyle
|
Anne Klein
|
Better
|
Skirts, blouses, pants, jackets, sweaters, vests, dresses, casual tops
|
AK Anne Klein
Anne Klein Dress
Anne Klein Suit
|
Lifestyle
Dresses
Suits
|
Rachel Roy
|
Better
|
Skirts, blouses, pants, jackets, sweaters, dresses
|
Rachel Rachel Roy
|
Lifestyle
|
Other
|
Better
|
Skirts, blouses, pants, jackets, sweaters, suits, dresses
|
Kasper
Evan-Picone
Le Suit
Nipon Boutique
|
Suits
Dresses
Suits
Suits
|
Footwear
|
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Category
|
Brand
|
Product Classification
|
Designer
|
Stuart Weitzman
Brian Atwood Kurt Geiger
|
Accessible Contemporary and Modern Luxury
Accessible Contemporary and Modern Luxury
Modern Luxury |
Bridge
|
Joan & David
Carvela
KG
|
Sophisticated Classics
Contemporary
Contemporary
|
Better
|
Nine West
Nine West Vintage America Collection
Enzo Angiolini
Anne Klein
Circa Joan & David Boutique 9
Miss KG Rachel Rachel Roy
|
Contemporary
Contemporary
Contemporary
Modern Classics
Traditional Classics
Contemporary
Contemporary
Contemporary
|
Upper
Moderate
|
Easy Spirit
Bandolino
|
Comfort/Fit, Active, Sport/Casuals
Modern Classics
|
Moderate
|
Nine & Co.
Mootsies Tootsies
|
Contemporary
Modern Classics
|
Accessories
|
||
Category
|
Brand
|
Product Classification
|
Designer
|
Stuart Weitzman
Rafe/Rafe New York
|
Handbags
Handbags
|
Bridge
|
KG
|
Handbags and Purses, Knitwear, Jewelry, Belts and Travel Accessories
|
Better
|
AK Anne Klein
Nine West
|
Handbags
Handbags and Small Leather Goods
|
Moderate
|
Nine & Co.
|
Handbags
|
Store
Type
|
Number of
locations
|
Brands
offered
|
Type of
locations
|
Average store
size (sq. ft.)
|
Nine West
|
103
|
Primarily
Nine West
|
Upscale and
regional malls and
urban retail centers
|
1,610
|
Easy Spirit
|
38
|
Primarily
Easy Spirit
|
Upscale and
regional malls and
urban retail centers
|
1,414
|
Anne Klein
|
1
|
Primarily
Anne Klein
|
Urban retail
locations
|
3,000
|
Stuart Weitzman
|
39
|
Stuart Weitzman
|
Upscale and
regional malls and
urban retail centers
|
1,711
|
Kurt Geiger
|
2
|
Primarily
Kurt Geiger,
Carvela and KG
|
Upscale and
regional malls and
urban retail locations
|
1,869
|
Brian Atwood
|
1
|
Brian Atwood
|
Urban retail
locations
|
2,562
|
ShoeWoo
|
1
|
Various
|
Urban retail
locations
|
2,407
|
Store type
|
Number of locations
|
Brands offered
|
Type of locations
|
Average store
size (sq. ft.)
|
Nine West
|
149
|
Primarily Nine West
|
Manufacturer
outlet centers
|
2,852
|
Jones New York
|
112
|
Primarily Jones New York
|
Manufacturer
outlet centers
|
3,834
|
Easy Spirit
|
82
|
Primarily Easy Spirit
|
Manufacturer
outlet centers
|
3,393
|
Kasper
|
64
|
Primarily Kasper and Le Suit
|
Manufacturer
outlet centers
|
2,631
|
Stuart Weitzman
|
2
|
Stuart Weitzman
|
Manufacturer
outlet centers
|
1,900
|
Store
Type
|
Number of
locations
|
Brands
offered
|
Countries of
Operation
|
Average store
size (sq. ft.)
|
Kurt Geiger
|
49
|
Primarily Kurt Geiger,
KG and Carvela
|
United Kingdom, Ireland
|
1,800
|
Stuart Weitzman
|
7
|
Stuart Weitzman
|
France, Italy, Monaco, Spain
|
1,230
|
Kurt Geiger Outlet
|
8
|
Primarily Carvela, KG
and Miss KG
|
United Kingdom
|
1,657
|
Nine West
|
4
|
Primarily Nine West
|
United Kingdom
|
1,303
|
Specialty Apparel
|
2
|
Various
|
Canada
|
6,788
|
Outlet Apparel
|
37
|
Various
|
Canada
|
3,838
|
Concession type
|
Number of
locations
|
Products offered
|
Countries of
Operation
|
Average
size (sq. ft.)
|
Kurt Geiger
|
164
|
Multi-branded footwear
and accessories
|
United Kingdom,
Ireland, Italy, Germany
|
1,819
|
Jones New York
|
69
|
Apparel and costume jewelry
|
Spain
|
804
|
Stuart Weitzman
|
1
|
Footwear and accessories
|
France
|
290
|
Brand
|
Category
|
Jones New York
|
Men's Belts, Small Leather Goods (Canada)
Men's Neckwear (Canada)
Men's Neckwear (U.S.)
Men's Sportswear, Sweaters, Knit Shirts, Woven Shirts, Finished Bottom Slacks and Outerwear
(Canada)
Men's Tailored Clothing, Dress Shirts, Outerwear, Dress Slacks (Canada)
Men's Sleepwear (Canada)
Men's Tailored Clothing, Formal Wear (U.S., Mexico, Philippines)
Men's Umbrellas (U.S.)
Men's and Women's Optical Eyewear (U.S., Canada, Argentina, Aruba, Australia, Bahamas,
Barbados, Belize, Benelux, Bolivia, Chile, Colombia, Costa Rica, Cyprus, Denmark,
Dominican Republic, Ecuador, El Salvador, Finland, France, French Guiana, Guatemala,
Honduras, Indonesia, Ireland, Israel, Jamaica, Korea, Kuwait, Lebanon, Mexico, Netherlands
Antilles, New Zealand, Nicaragua, Norway, Panama, Paraguay, Peru, Philippines, Qatar,
Russia, Saudi Arabia, South Africa, Suriname, Sweden, Thailand, Trinidad, Turkey, United
Arab Emirates, Uruguay, Venezuela)
Women's Costume Jewelry (Canada)
Women's Swimwear (U.S., Canada)
Women's Legwear (U.S.)
Women's Outerwear, Leather Outerwear, Rainwear (U.S., Canada, Mexico, Spain)
Women's Wool Coats (U.S., Canada, Mexico, Spain)
Women's Scarves, Wraps (U.S., Canada, Bermuda, Mexico, Spain)
Women's Sleepwear, Loungewear, Daywear, Foundations (U.S., Bermuda, Canada, El Salvador,
Guatemala, Jamaica, Lebanon, Mexico, Panama, Philippines, Saudi Arabia, Sri Lanka, Spain,
Venezuela)
Women's Sunglasses (U.S., Canada)
Women's Umbrellas, Rain Accessories (U.S.)
Retail rights for Women's Apparel (Saudi Arabia)
|
Albert Nipon
|
Men's Tailored Clothing (U.S.)
|
Evan-Picone
|
Men's Tailored Clothing (U.S.)
|
Gloria Vanderbilt
|
Handbags (U.S.)
|
GLO Jeans
|
Junior Footwear (U.S.)
|
Joan & David
|
Manufacturing and Retail Distribution Rights for Apparel, Footwear, Handbags (China, Hong
Kong, Japan, Korea, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand)
|
Easy Spirit
|
Slippers (U.S., Canada)
|
l.e.i.
|
Juniors' and Girls' Intimate Apparel (U.S., Canada)
Juniors' and Girls' Footwear (U.S., Canada)
Juniors' and Girls' Optical Eyewear (U.S., Canada, Mexico)
|
Stuart Weitzman
|
Children's Footwear (U.S., Canada, Mexico, France, Germany, Switzerland, Hong Kong,
Indonesia)
Stuart Weitzman footwear and accessories (Canada)
|
Nine West
|
Belts (U.S., Canada, Bermuda, Mexico, Spain)
Legwear (U.S)
Gloves, Cold Weather Accessories (U.S., Canada)
Scarves (U.S., Bermuda)
Hats (U.S., Canada)
Leather, Wool, Casual Outerwear, Rainwear (U.S., Canada, Spain)
Optical Eyewear, Sunglasses and Prescription Half-Eye Readers (Worldwide rights, exercised in
U.S., Canada, Mexico, Australia, India, Indonesia, Philippines, South Africa, Namibia,
Botswana, Swaziland, Angola, Zimbabwe, Zambia, United Kingdom)
Sunglasses, Non-Prescription Readers (U.S., Canada, Spain)
Fragrance (Worldwide rights, exercised in U.S., Argentina, Chile, Uruguay, Australia,
Azerbaijan, Bahrain, Belarus, Canada, China, Egypt, Georgia, Greece/Cyprus, Hong Kong,
India, Indonesia, Israel, Jordan, Korea, Kuwait, Lebanon, Malaysia, Mexico, Oman, Panama,
|
Brand
|
Category
|
|
Columbia, Central America, Paraguay, Peru, Philippines, Poland, Qatar, Russia, Saudi
Arabia, Singapore, South Africa, Spain, Portugal, Taiwan, Thailand, Turkey, Duty Free -
Caribbean, Ukraine, Venezuela, Vietnam)
Watches (Worldwide rights, exercised in U.S., Canada, Central America, Greece/Cyprus,
Mexico, Philippines, Spain, Turkey, United Kingdom)
Children's Footwear (U.S.)
Luggage (U.S.)
Manufacturing and Wholesale and Retail Distribution Rights for Apparel, non-exclusive retail rights for Belts, Cold Weather Accessories, Hats, Luggage, Sunglasses, Coats, Legwear, Scarves, as well as Sleepwear, Swimwear, Fragrances and Cosmetics if such items are made available in the Territory, Footwear, Handbags, Jewelry and non-exclusive retail rights for Watches (China, Hong Kong, Indonesia, Japan, Macau, Malaysia, Singapore, Taiwan, Thailand)
|
Nine & Co.
|
Sunglasses (U.S.)
|
Anne Klein
|
Belts (U.S., Canada, Mexico, Bermuda)
Home Sewing Patterns (Worldwide Rights)
Hosiery, Casual Legwear (U.S., Canada)
Outerwear, Wool Coats, Leather Outerwear, Rainwear (U.S., Canada)
Scarves, Cold Weather Accessories, Gloves (U.S., Canada, Bermuda)
Sleepwear, Loungewear (U.S., Canada)
Luggage (U.S., Canada, Bermuda, Mexico, United Kingdom)
Sunglasses, Optical Eyewear, Readers (Worldwide rights, exercised in U.S., Canada, Japan,
Korea, China, Australia, New Zealand)
Watches (Worldwide rights, exercised in U.S., Aruba, Australia, , Bahamas, Bahrain, Barbados,
Belgium, Canada, Cayman Islands, Chile, Colombia, Costa Rica, Curacao, Czech Republic,
Denmark, Dominican Republic, Dubai, Ecuador, El Salvador, Egypt, Estonia, France, Greece/
Cyprus, Guatemala, Guam, Hawaii, Honduras, Hong Kong, India, Ireland, Israel, Jamaica,
Japan, Jordan, Korea, Kuwait, Lebanon, Luxembourg, Malaysia, Mexico, New Zealand,
Nicaragua, Panama, Paraguay, Peru, Philippines, Poland, Qatar, Romania, Russia, Saudi
Arabia, Singapore, , South Korea, Spain, St. Thomas, St. Lucia, St. Maarten, Suriname,
Switzerland, Taiwan, Trinidad, Turkey, U.A.E., U.K., Venezuela, Vietnam, Duty Free
Worldwide)
Manufacturing and Wholesale and Retail Distribution Rights for Apparel (Japan)
Sublicensed Wholesale and Retail Distribution Rights for Jewelry (Japan)
Manufacturing and Wholesale and Retail Distribution Rights for Apparel, Handbags and
Accessories, non-exclusive retail rights for Footwear (Korea)
Manufacturing and Wholesale Distribution rights for Scarves, Handkerchiefs, Cold Weather
Accessories and Umbrellas (Korea)
Retail and Wholesale Distribution Rights for Apparel (Central America, South America,
Caribbean, Dominican Republic)
Retail Rights for Belts, Eyewear, Coats, Sleepwear, Socks, Scarves, Swimwear, Fragrances and
Cosmetics if any such items are made available in the Territory, non-exclusive rights for
Footwear, Handbags, Jewelry and Watches (Central America, South America, Caribbean,
Dominican Republic)
Retail Rights for Apparel, Belts, Sunglasses, Coats, Socks, Scarves, Swimwear, as well as
Sleepwear, Fragrances if such items are made available in the Territory, non-exclusive rights
for Footwear, Handbags, Jewelry and Watches (Saudi Arabia)
Retail and Wholesale Distribution Rights for Apparel, non-exclusive rights for Belts, Sunglasses,
Coats, Socks, Scarves, Swimwear, as well as Sleepwear, Fragrances if such items are made
available in the Territory, Footwear, Handbags, Jewelry and Watches (China, Hong Kong,
Indonesia, Macau, Malaysia, Singapore, Taiwan, Thailand)
Retail Distribution Rights for Apparel, Belts, Scarves, Sleepwear and Socks, non-exclusive rights
for Footwear, Handbags, Small Leather Goods, Eyewear, Jewelry and Watches
(Philippines)
|
Anne Klein Coat
|
Outerwear, Wool Coats, Leather Outerwear, Rainwear (U.S., Canada)
|
Rachel Roy and Rachel Rachel Roy
|
Women's Outerwear (U.S.)
|
Brand
|
Category
|
International footwear and accessories retail/ wholesale distribution
|
Nine West and Enzo Angiolini retail locations (Bahrain, Jordan, Kuwait, Oman, Pakistan, Qatar,
the United Arab Emirates) and AK Anne Klein retail locations and wholesale distribution
rights for AK Anne Klein footwear and accessories (Bahrain, Kuwait, Oman, Qatar, the
United Arab Emirates)
Nine West and AK Anne Klein retail locations (Egypt, Lebanon, Saudi Arabia)
Nine West retail locations and wholesale distribution rights for Nine West, AK Anne Klein, Enzo
Angiolini, Bandolino and Easy Spirit footwear and accessories and Circa Joan & David and
Mootsies Tootsies footwear (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,
Panama)
Nine West retail locations and wholesale distribution rights for Nine West, Anne Klein, Enzo
Angiolini, Bandolino and Easy Spirit footwear and accessories and AK Anne Klein, Circa Joan &
David and Mootsies Tootsies footwear (Colombia, the Dominican Republic, Ecuador, French
Guiana, Guyana, Suriname, Venezuela, the Caribbean Islands)
Nine West and AK Anne Klein retail locations and wholesale distribution rights for Nine West and
AK Anne Klein footwear and accessories (Bulgaria, Cyprus, Greece, Malta)
Nine West retail locations and wholesale distribution rights for Nine West footwear and
accessories (Chile, Peru, Uruguay), wholesale distribution rights for Enzo Angiolini footwear
and accessories (Chile) and wholesale distribution rights for Studio 9 footwear and
accessories (Peru)
Nine West, Enzo Angiolini, NW Nine West and Easy Spirit retail locations and wholesale
distribution rights for Nine West, Enzo Angiolini, NW Nine West and Easy Spirit footwear and
accessories (Cambodia, Hong Kong, Indonesia, Japan, Korea, Macau, Malaysia, the People's
Republic of China, the Philippines, Singapore, Taiwan, Thailand, Vietnam)
Nine West retail locations and wholesale distribution rights for Nine West footwear and
accessories (South Africa)
Nine West, Enzo Angiolini and Westies retail locations, wholesale distribution rights for Nine West
footwear and accessories and Nine West Vintage America, Nine & Co, Enzo Angiolini, Westies,
AK Anne Klein, Studio 9 and Boutique 9 footwear, and manufacturing rights for Westies
footwear (Mexico)
Nine West retail locations (Turkey, Romania, Kazakhstan, Azerbaijan, Ukraine), AK Anne Klein
and Enzo Angiolini retail locations (Turkey) and wholesale distribution rights for Nine West,
Enzo Angiolini, Circa Joan & David, Boutique 9 and AK Anne Klein footwear (Turkey)
Nine West, AK Anne Klein and Easy Spirit retail locations and wholesale distribution rights for
Nine West, AK Anne Klein and Easy Spirit footwear and accessories (Israel)
Nine West retail locations, wholesale distribution rights for Nine West, Enzo Angiolini, Easy Spirit,
Bandolino, Nine & Co. and Westies footwear and accessories and AK Anne Klein, Circa Joan &
David, Joan & David, B Brian Atwood and Mootsies Tootsies footwear (Canada)
Nine West retail locations and wholesale distribution rights for Nine West, AK Anne Klein and
Enzo Angiolini footwear and accessories (Andorra, Portugal, Spain)
Nine West retail locations (Poland, Russia)
Nine West retail locations (France)
Nine West and Enzo Angiolini retail locations and wholesale distribution rights for Nine West and
Enzo Angiolini footwear and accessories (Australia, New Zealand)
Nine West retail locations and wholesale distribution rights for Nine West footwear and
accessories (Bosnia-Herzegovina, Croatia, Czech Republic, Hungary, Macedonia,
Montenegro, Serbia, Slovakia, Slovenia)
Nine West retail locations (India)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Sydney, Melbourne and Brisbane, Australia)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Canada)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Qatar)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Germany)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Greece)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Indonesia)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Tel Aviv, Israel)
|
Brand
|
Category
|
|
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Forte dei Marmi, Italy)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Serravalle, Italy)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Torino, Italy)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Malaysia)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Mexico)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Moscow, Russia)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (St. Barth)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Zurich, Switzerland)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Korea)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (India)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (UAE, Kuwait and Bahrain)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Beijing, Nanjing and Zhengzhou, China)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Hong Kong and China)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Singapore)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Vietnam)
Stuart Weitzman retail locations and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Taiwan and Macau)
Stuart Weitzman retail location and wholesale distribution rights for Stuart Weitzman footwear
and accessories (Philippines)
Kurt Geiger retail locations (The United Arab Emirates, Qatar, Bahrain, Kuwait)
Kurt Geiger, KG and Carvela retail and wholesale distribution rights (The United Arab Emirates,
Qatar, Bahrain, Kuwait)
Miss KG wholesale distribution rights (The United Arab Emirates, Qatar, Bahrain, Kuwait)
Kurt Geiger retail locations (Turkey)
Kurt Geiger, KG and Carvela retail and wholesale distribution rights (Turkey)
Miss KG wholesale distribution rights (Turkey)
Kurt Geiger retail locations (Lebanon)
Kurt Geiger, KG and Carvela retail and wholesale distribution rights (Lebanon)
Miss KG wholesale distribution rights (Lebanon)
|
Trademark
|
Expiration
Dates
|
|
Trademark
|
Expiration
Dates
|
|
Trademark
|
Expiration
Dates
|
Jones New York
|
2013-2022
|
|
Nine & Co.
|
2013-2022
|
|
Kasper
|
2021
|
Jones New York Sport
|
2013
|
|
Napier
|
2019
|
|
Le Suit
|
2018
|
Evan-Picone
|
2013-2018
|
|
Judith Jack
|
2022
|
|
Joan & David
|
2015
|
Nine West
|
2013-2022
|
|
Energie
|
2015-2019
|
|
Mootsies Tootsies
|
2013-2020
|
Easy Spirit
|
2013-2020
|
|
Gloria Vanderbilt
|
2014-2022
|
|
Stuart Weitzman
|
2013-2022
|
Enzo Angiolini
|
2015
|
|
l.e.i.
|
2016-2020
|
|
Robert Rodriguez
|
2018
|
Bandolino
|
2014-2021
|
|
Anne Klein
|
2015-2022
|
|
|
|
· | establishing and maintaining favorable brand recognition; |
· | developing products that appeal to consumers; |
· | pricing products appropriately; and |
· | obtaining access to retail outlets and sufficient floor space. |
· | political instability in countries where contractors and suppliers are located; |
· | imposition of regulations and quotas relating to imports; |
· | imposition of duties, taxes and other charges on imports; |
· | significant fluctuation of the value of the U.S. Dollar, Euro and Pound against other foreign currencies; |
· | labor shortages in countries where contractors and suppliers are located; and |
· | restrictions on the transfer of funds to or from foreign countries. |
· | a reduction in available manufacturing capacity, resulting from the closing of foreign factories that have experienced substantial declines in orders; |
· | uncertainties of sourcing associated with an environment in which general quota has been eliminated on apparel products pursuant to the World Trade Organization Agreement; |
· | reduced manufacturing flexibility because of geographic distance between us and our foreign manufacturers, increasing the risk that we may have to mark down unsold inventory as a result of misjudging the market for a foreign-made product; |
· | increases in manufacturing costs in the event of a decline in the value of the U.S. Dollar or Euro against major world currencies, particularly the Chinese Yuan, and higher labor and commodity costs being experienced by our foreign manufacturers in China; and |
· | violations by foreign contractors of labor and wage standards and resulting adverse publicity. |
· | obtain capital; |
· | manage its labor relations; |
· | maintain relationships with its suppliers; |
· | manage its credit risk effectively; and |
· | maintain relationships with its customers. |
·
|
Revitalizing our core brands involves retaining the heritage of and evolving those brands to increase demand for our products. In part, we are pursuing this goal by transitioning from product category management to brand management to achieve harmonized design across product categories and build stronger emotional brand connections with our customers. Implementing this strategy also depends upon our ongoing ability to develop product offerings that resonate with our existing customers and attract new customers, and to effectively communicate distinctive brand identities through merchandising and innovative marketing.
|
·
|
Investing in emerging brands depends on our ability to identify appropriate brands with good prospects for growth, acquire those brands or invest in associated businesses on reasonable financial and other terms, successfully nurture the growth of such brands into expanded product categories and/or additional markets, and efficiently integrate the organization and operations of such businesses into our existing organization and operations.
|
·
|
Expanding our international footprint depends on our ability to accurately assess the demographics, consumer fashion preference and demand, and retail environment in new geographic markets, to develop successful distribution strategies, structures and alliances in appropriate markets, and to secure suitable retail locations on reasonable financial and other terms. Our success in expanding internationally also depends on general economic conditions affecting the countries into which we expand and the competition we may face from wholesalers and retailers with more operating experience in those locations.
|
·
|
Improving direct-to-consumer performance depends on our ability to create compelling retail environments in our stores and on e-commerce websites through changes in layout and merchandise assortments, to apply appropriate pricing strategies and to manage inventory levels. If any increased capital investments in our stores, websites, distribution facilities and information technology systems necessary to execute this strategy do not result in increased sales or improved gross margins, our results of operations could be unfavorably affected.
|
·
|
Achieving excellence in our operations depends on our ongoing ability to improve operating flexibility and efficiency and reduce costs by, among other things, leveraging our supply chain and strategic relationships with manufacturers, third-party logistics providers and retail vendors to optimize our cost structure and enhance speed to market, developing and implementing better buying and planning processes, and maintaining and enhancing our information and other support systems and controls to improve product development cycle times and control inventory.
|
Location
|
Owned/
Leased
|
Use
|
Approximate Area
in Square Feet (1)(2)
|
Bristol, Pennsylvania
|
leased
|
Administrative and computer services
|
172,600
|
New York, New York
|
leased
|
Administrative, executive and sales offices
|
724,770
|
Vaughan, Canada
|
leased
|
Administrative offices and distribution warehouse
|
125,000
|
Lawrenceburg, Tennessee
|
owned
|
Distribution warehouses
|
1,223,800
|
South Hill, Virginia
|
leased
|
Distribution warehouses
|
823,040
|
White Plains, New York
|
leased
|
Administrative offices
|
132,200
|
West Deptford, New Jersey
|
leased
|
Distribution warehouses
|
988,400
|
London, United Kingdom
|
leased
|
Administrative offices
|
48,890
|
Alicante, Spain
|
leased
|
Administrative offices
|
7,500
|
(1) | Including mezzanine where applicable. |
(2) | Excludes subleased square footage. |
Name
|
Age
|
Office
|
Wesley R. Card
|
65
|
Chief Executive Officer
|
Richard Dickson
|
44
|
President and Chief Executive Officer - Branded Businesses
|
Ira M. Dansky
|
67
|
Executive Vice President, General Counsel and Secretary
|
John T. McClain
|
51
|
Chief Financial Officer
|
Christopher R. Cade
|
45
|
Executive Vice President, Chief Accounting Officer and Controller
|
|
|
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Price range of common stock:
|
|
|
|
|
||
|
2012
|
|
|
|
|
|
|
|
High
|
$12.63
|
$13.12
|
$13.98
|
$13.97
|
|
|
Low
|
$8.13
|
$8.85
|
$9.48
|
$10.42
|
|
2011
|
|
|
|
|
|
|
|
High
|
$16.02
|
$15.02
|
$13.30
|
$12.43
|
|
|
Low
|
$11.88
|
$9.97
|
$9.00
|
$8.00
|
Dividends paid per share of common stock:
|
|
|
|
|||
|
2012
|
|
$0.05
|
$0.05
|
$0.05
|
$0.05
|
|
2011
|
|
$0.05
|
$0.05
|
$0.05
|
$0.05
|
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
|
September 30, 2012 to October 27, 2012
|
70,000
|
$11.72
|
70,000
|
$180,600,219
|
October 28, 2012 to
November 24, 2012
|
440,000
|
$10.45
|
440,000
|
$175,539,840
|
November 25, 2012 to December 31, 2012
|
356,510
|
$11.57
|
356,510
|
$171,413,833
|
Total
|
866,510
|
$11.55
|
866,510
|
$171,413,833
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
Income Statement Data
|
||||||||||||||||||||
Net sales
|
$
|
3,750.6
|
$
|
3,734.0
|
$
|
3,593.5
|
$
|
3,279.7
|
$
|
3,562.6
|
||||||||||
Licensing income
|
46.2
|
50.2
|
48.3
|
46.8
|
52.1
|
|||||||||||||||
Other revenues
|
1.3
|
1.1
|
0.9
|
0.9
|
1.7
|
|||||||||||||||
Total revenues
|
3,798.1
|
3,785.3
|
3,642.7
|
3,327.4
|
3,616.4
|
|||||||||||||||
Cost of goods sold
|
2,427.4
|
2,440.1
|
2,387.2
|
2,181.5
|
2,440.2
|
|||||||||||||||
Gross profit
|
1,370.7
|
1,345.2
|
1,255.5
|
1,145.9
|
1,176.2
|
|||||||||||||||
Selling, general and administrative expenses
|
1,226.9
|
1,173.2
|
1,073.0
|
1,008.7
|
1,069.2
|
|||||||||||||||
Trademark impairments
|
21.5
|
31.5
|
37.6
|
28.7
|
25.2
|
|||||||||||||||
Goodwill impairment
|
47.6
|
-
|
-
|
120.6
|
813.2
|
|||||||||||||||
Operating income (loss)
|
74.7
|
140.5
|
144.9
|
(12.1
|
)
|
(731.4
|
)
|
|||||||||||||
Interest income
|
0.6
|
0.9
|
1.5
|
2.8
|
7.5
|
|||||||||||||||
Interest expense and financing costs
|
145.7
|
74.2
|
60.4
|
55.6
|
49.1
|
|||||||||||||||
Loss and costs associated with repurchase of 4.250% Senior Notes
|
-
|
-
|
-
|
1.5
|
-
|
|||||||||||||||
Gain on sale of interest in Australian joint venture
|
-
|
-
|
-
|
-
|
0.8
|
|||||||||||||||
Equity in earnings (loss) of unconsolidated affiliates
|
2.5
|
3.9
|
(0.9
|
)
|
(3.7
|
)
|
(0.7
|
)
|
||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes
|
(67.9
|
)
|
71.1
|
85.1
|
(70.1
|
)
|
(772.9
|
)
|
||||||||||||
(Benefit) provision for income taxes
|
(12.9
|
)
|
19.6
|
30.7
|
16.2
|
(6.6
|
)
|
|||||||||||||
(Loss) income from continuing operations
|
(55.0
|
)
|
51.5
|
54.4
|
(86.3
|
)
|
(766.3
|
)
|
||||||||||||
Income from discontinued operations, net of tax (1)
|
-
|
-
|
-
|
-
|
0.9
|
|||||||||||||||
Net (loss) income
|
(55.0
|
)
|
51.5
|
54.4
|
(86.3
|
)
|
(765.4
|
)
|
||||||||||||
Less: income attributable to noncontrolling interest
|
1.1
|
0.8
|
0.6
|
0.3
|
-
|
|||||||||||||||
(Loss) income attributable to Jones
|
$
|
(56.1
|
)
|
$
|
50.7
|
$
|
53.8
|
$
|
(86.6
|
)
|
$
|
(765.4
|
)
|
|||||||
Per Share Data
|
||||||||||||||||||||
Basic (loss) earnings per share
|
||||||||||||||||||||
(Loss) income from continuing operations attributable to Jones
|
$
|
(0.72
|
)
|
$
|
0.62
|
$
|
0.63
|
$
|
(1.02
|
)
|
$
|
(9.05
|
)
|
|||||||
Income from discontinued operations attributable to Jones
|
-
|
-
|
-
|
-
|
0.01
|
|||||||||||||||
Basic (loss) earnings per share attributable to Jones
|
$
|
(0.72
|
)
|
$
|
0.62
|
$
|
0.63
|
$
|
(1.02
|
)
|
$
|
(9.04
|
)
|
|||||||
|
||||||||||||||||||||
Diluted (loss) earnings per share
|
||||||||||||||||||||
(Loss) income from continuing operations attributable to Jones
|
$
|
(0.72
|
)
|
$
|
0.61
|
$
|
0.62
|
$
|
(1.02
|
)
|
$
|
(9.05
|
)
|
|||||||
Income from discontinued operations attributable to Jones
|
-
|
-
|
-
|
-
|
0.01
|
|||||||||||||||
Diluted (loss) earnings per share attributable to Jones
|
$
|
(0.72
|
)
|
$
|
0.61
|
$
|
0.62
|
$
|
(1.02
|
)
|
$
|
(9.04
|
)
|
|||||||
|
||||||||||||||||||||
Dividends declared per share
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.56
|
||||||||||
|
||||||||||||||||||||
Weighted average common shares outstanding
|
||||||||||||||||||||
Basic
|
74.9
|
79.6
|
82.1
|
81.7
|
82.9
|
|||||||||||||||
Diluted
|
74.9
|
81.3
|
82.6
|
81.7
|
82.9
|
December 31,
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital
|
$
|
644.5
|
|
$
|
575.5
|
|
$
|
719.4
|
|
$
|
741.1
|
|
$
|
693.6
|
|
|
Total assets
|
|
2,595.5
|
|
|
2,715.3
|
|
|
2,332.4
|
|
|
2,025.0
|
|
|
2,427.5
|
|
|
Short-term debt and current portion of long-term debt and capital lease obligations
|
|
2.2
|
|
|
2.0
|
|
|
1.8
|
|
|
2.6
|
|
|
253.1
|
|
|
Long-term debt, including capital lease obligations
|
|
955.7
|
|
|
854.7
|
|
|
535.1
|
|
|
526.4
|
|
|
528.9
|
|
|
Total equity (2)
|
|
1,005.7
|
|
|
1,089.4
|
|
|
1,138.3
|
|
|
1,092.5
|
|
|
1,182.2
|
|
(1) | On September 6, 2007, we sold Barneys New York, Inc. In 2008, we reached final settlement on certain liabilities remaining from the sale, resulting in an additional after-tax gain of $0.9 million. |
(2) | The decreases between 2008 and 2009 and between 2010 and 2012 are primarily the result of the impairments of goodwill and indefinite-lived trademarks. |
· | total revenues were $3.8 billion, an increase of $12.8 million from a year ago; |
· | gross profit, as a percent of sales, increased to 36.1% from 35.5% a year ago; |
· | operating income was $74.7 million, a decrease of $65.8 million from a year ago; |
· | we recorded goodwill and trademark impairments of $69.1 million, compared with $31.5 million a year ago; and |
· | diluted loss per share was $0.72, compared with earnings per share of $0.61 from a year ago. |
· | 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 (the "2019 Notes"). |
|
Assumptions
|
Effect of unfavorable change
|
||
|
Goodwill
|
Trademarks
|
Goodwill
|
Trademarks
|
Discount rates
|
12.0%
|
12.0%
|
$ 7.3
|
$ 3.7
|
Royalty rates
|
--
|
1.0% - 8.0%
|
$ -
|
$ 6.3
|
Weighted-average revenue growth rates
|
5.4%
|
6.2%
|
$ 9.0
|
$ 1.8
|
Long-term growth rates
|
3.0%
|
0% - 3.0%
|
$ 5.2
|
$ 0.7
|
(In millions)
|
2012
|
|
|
2011
|
|
|
2010
|
|
||||||||||||
Net sales
|
$
|
3,750.6
|
|
98.7
|
%
|
|
|
$
|
3,734.0
|
|
98.6
|
%
|
|
|
$
|
3,593.5
|
|
98.6
|
%
|
|
Licensing income
|
|
46.2
|
|
1.2
|
|
|
|
|
50.2
|
|
1.3
|
|
|
|
|
48.3
|
|
1.4
|
|
|
Other revenues
|
|
1.3
|
|
0.0
|
|
|
|
|
1.1
|
|
0.0
|
|
|
|
|
0.9
|
|
0.0
|
|
|
Total revenues
|
|
3,798.1
|
|
100.0
|
|
|
|
|
3,785.3
|
|
100.0
|
|
|
|
|
3,642.7
|
|
100.0
|
|
|
Cost of goods sold
|
|
2,427.4
|
|
63.9
|
|
|
|
|
2,440.1
|
|
64.5
|
|
|
|
|
2,387.2
|
|
65.5
|
|
|
Gross profit
|
|
1,370.7
|
|
36.1
|
|
|
|
|
1,345.2
|
|
35.5
|
|
|
|
|
1,255.5
|
|
34.5
|
|
|
Selling, general and administrative expenses
|
|
1,226.9
|
|
32.3
|
|
|
|
|
1,173.2
|
|
31.0
|
|
|
|
|
1,073.0
|
|
29.5
|
|
|
Trademark impairments
|
|
21.5
|
|
0.6
|
|
|
|
|
31.5
|
|
0.8
|
|
|
|
|
37.6
|
|
1.0
|
|
|
Goodwill impairment
|
|
47.6
|
|
1.3
|
|
|
|
|
-
|
|
-
|
|
|
|
|
-
|
|
-
|
|
|
Operating income
|
|
74.7
|
|
2.0
|
|
|
|
|
140.5
|
|
3.7
|
|
|
|
|
144.9
|
|
4.0
|
|
|
Interest income
|
|
0.6
|
|
0.0
|
|
|
|
|
0.9
|
|
0.0
|
|
|
|
|
1.5
|
|
0.0
|
|
|
Interest expense and financing costs
|
|
145.7
|
|
3.8
|
|
|
|
|
74.2
|
|
2.0
|
|
|
|
|
60.4
|
|
1.7
|
|
|
Equity in income (loss) of unconsolidated affiliate
|
|
2.5
|
|
0.1
|
|
|
|
|
3.9
|
|
0.1
|
|
|
|
|
(0.9
|
)
|
(0.0
|
)
|
|
(Loss) income before (benefit) provision for income taxes
|
|
(67.9
|
)
|
(1.8
|
)
|
|
|
|
71.1
|
|
1.9
|
|
|
|
|
85.1
|
|
2.3
|
|
|
(Benefit) provision for income taxes
|
|
(12.9
|
)
|
(0.3
|
)
|
|
|
|
19.6
|
|
0.5
|
|
|
|
|
30.7
|
|
0.8
|
|
|
Net (loss) income
|
|
(55.0
|
)
|
(1.4
|
)
|
|
|
|
51.5
|
|
1.4
|
|
|
|
|
54.4
|
|
1.5
|
|
|
Less: income attributable to noncontrolling interest
|
|
1.1
|
|
0.0
|
|
|
|
|
0.8
|
|
0.0
|
|
|
|
|
0.6
|
|
0.0
|
|
|
(Loss) income attributable to Jones
|
$
|
(56.1
|
)
|
(1.5
|
)%
|
|
|
$
|
50.7
|
|
1.3
|
%
|
|
|
$
|
53.8
|
|
1.5
|
%
|
|
|
(In millions)
|
|
2012
|
|
2011
|
|
Increase (Decrease
|
)
|
Percent
Change
|
|
|
Domestic wholesale sportswear
|
$
|
782.0
|
$
|
892.3
|
$
|
(110.3
|
)
|
(12.4
|
%)
|
|
Domestic wholesale jeanswear
|
|
746.7
|
|
773.7
|
|
(27.0
|
)
|
(3.5
|
)
|
|
Domestic wholesale footwear and accessories
|
|
919.7
|
|
848.0
|
|
71.7
|
|
8.5
|
|
|
Domestic retail
|
|
584.6
|
|
631.2
|
|
(46.6
|
)
|
(7.4
|
)
|
|
International wholesale
|
|
330.0
|
|
329.5
|
|
0.5
|
|
0.2
|
|
|
International retail
|
|
388.9
|
|
260.4
|
|
128.5
|
|
49.3
|
|
|
Licensing and other
|
|
46.2
|
|
50.2
|
|
(4.0
|
)
|
(8.0
|
)
|
|
Total revenues
|
$
|
3,798.1
|
$
|
3,785.3
|
$
|
12.8
|
|
0.3
|
%
|
(In millions)
|
|
2011
|
|
2010
|
|
Increase
(Decrease
|
)
|
Percent
Change
|
|
Domestic wholesale sportswear
|
$
|
892.3
|
$
|
965.2
|
$
|
(72.9
|
)
|
(7.6
|
)%
|
Domestic wholesale jeanswear
|
|
773.7
|
|
819.9
|
|
(46.2
|
)
|
(5.6
|
)
|
Domestic wholesale footwear and accessories
|
|
848.0
|
|
841.5
|
|
6.5
|
|
0.8
|
|
Domestic retail
|
|
631.2
|
|
651.2
|
|
(20.0
|
)
|
(3.1
|
)
|
International wholesale
|
|
329.5
|
|
269.6
|
|
59.9
|
|
22.2
|
|
International retail
|
|
260.4
|
|
47.0
|
|
213.4
|
|
454.0
|
|
Licensing and other
|
|
50.2
|
|
48.3
|
|
1.9
|
|
3.9
|
|
Total revenues
|
$
|
3,785.3
|
$
|
3,642.7
|
$
|
142.6
|
|
3.9
|
%
|
|
Total
|
|
Less than
1 year
|
|
1 - 3
years
|
|
3 - 5
years
|
|
More than 5 years
|
|||||
Long-term debt
|
$
|
910.2
|
|
$
|
0.1
|
|
$
|
250.0
|
|
$
|
10.1
|
|
$
|
650.0
|
Interest on long-term debt
|
|
531.4
|
|
|
56.1
|
|
|
97.9
|
|
|
85.8
|
|
|
291.6
|
Capital lease obligations
|
|
32.1
|
|
|
3.7
|
|
|
7.4
|
|
|
7.4
|
|
|
13.6
|
Operating lease obligations (1)
|
|
945.3
|
|
|
135.3
|
|
|
245.0
|
|
|
177.1
|
|
|
387.9
|
Purchase obligations (2)
|
|
699.5
|
|
|
699.0
|
|
|
0.5
|
|
|
-
|
|
|
-
|
Minimum royalty payments (3)
|
|
9.9
|
|
|
3.8
|
|
|
4.6
|
|
|
1.0
|
|
|
0.5
|
Employment contracts
|
|
82.1
|
|
|
39.5
|
|
|
40.2
|
|
|
1.5
|
|
|
0.9
|
Capital expenditure commitments
|
|
20.0
|
|
|
20.0
|
|
|
-
|
|
|
-
|
|
|
-
|
Deferred compensation
|
|
8.4
|
|
|
8.4
|
|
|
-
|
|
|
-
|
|
|
-
|
Acquisition consideration payable (4)
|
|
37.4
|
|
|
30.3
|
|
|
6.1
|
|
|
-
|
|
|
1.0
|
Other long-term liabilities (5)
|
|
118.3
|
|
|
3.2
|
|
|
17.2
|
|
|
32.4
|
|
|
65.5
|
Total contractual obligations (6)
|
$
|
3,394.6
|
|
$
|
999.4
|
|
$
|
668.9
|
|
$
|
315.3
|
|
$
|
1,411.0
|
(1) | Future rental commitments for leases have not been reduced by minimum non-cancelable sublease income aggregating $19.1 million. |
(2) | Includes outstanding trade letters of credit of $4.2 million, which primarily represent inventory purchase commitments which typically mature in two to six months and excludes $17.3 million of standby letters of credit, which are not intended to be drawn upon and for which we cannot make reasonably reliable estimates of the timing and amounts (if any) to be paid. |
(3) | Under exclusive licenses to manufacture certain items under trademarks not owned by us pursuant to various license agreements, we are obligated to pay the licensors a percentage of our net sales of these licensed products, subject to minimum scheduled royalty and advertising payments. |
(4) | Represents estimated cash payments. Of these amounts, $1.0 million is payable at a future date when certain conditions have been met and is reported in the more than five years column, as we cannot make a reasonably reliable estimate of |
the timing of the payment. Amounts reported as liabilities in the consolidated balance sheets primarily represent the present value of these payments. |
(5) | Consists primarily of deferred rent and pension and postretirement liabilities. Pension and postretirement liabilities, which total $24.7 million, are reported under the more than five years column, as we cannot make reasonably reliable estimates of the timing and amounts to be paid. We plan to contribute $5.1 million to our defined benefit plans in 2013. |
(6) | Excludes $0.3 million of uncertain tax positions, for which we cannot make reasonably reliable estimates of the timing and amounts to be paid. |
![]() Wesley R. Card
Chief Executive Officer
|
![]() John T. McClain Chief Financial Officer
|
![]() |
Tel: 212-885-8000
Fax: 212-697-1299
www.bdo.com
|
100 Park Ave
New York, NY 10017
|
![]() |
Tel: 212-885-8000
Fax: 212-697-1299
www.bdo.com
|
100 Park Ave
New York, NY 10017
|
December 31,
|
2012
|
2011
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
149.6
|
$
|
238.8
|
||||
Accounts receivable
|
381.0
|
339.6
|
||||||
Inventories, primarily finished goods
|
486.7
|
491.1
|
||||||
Prepaid and refundable income taxes
|
5.5
|
11.9
|
||||||
Deferred taxes
|
33.2
|
26.4
|
||||||
Loan to unconsolidated affiliate
|
-
|
10.0
|
||||||
Prepaid expenses and other current assets
|
40.7
|
37.7
|
||||||
Total current assets
|
1,096.7
|
1,155.5
|
||||||
Property, plant and equipment, at cost, less accumulated depreciation and amortization
|
278.1
|
271.4
|
||||||
Goodwill
|
215.3
|
255.3
|
||||||
Other intangibles, less accumulated amortization
|
869.7
|
897.4
|
||||||
Investment in unconsolidated affiliate
|
38.9
|
35.6
|
||||||
Other assets
|
96.8
|
100.1
|
||||||
Total assets
|
$
|
2,595.5
|
$
|
2,715.3
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt and capital lease obligations
|
$
|
2.2
|
$
|
2.0
|
||||
Current portion of acquisition consideration payable
|
30.3
|
194.1
|
||||||
Accounts payable
|
257.5
|
236.2
|
||||||
Income taxes payable
|
1.4
|
1.4
|
||||||
Accrued employee compensation and benefits
|
50.0
|
45.3
|
||||||
Accrued expenses and other current liabilities
|
110.8
|
101.0
|
||||||
Total current liabilities
|
452.2
|
580.0
|
||||||
Long-term debt
|
934.4
|
831.4
|
||||||
Obligations under capital leases
|
21.3
|
23.3
|
||||||
Income taxes payable
|
0.5
|
6.7
|
||||||
Deferred taxes
|
56.7
|
73.4
|
||||||
Acquisition consideration payable
|
6.0
|
17.7
|
||||||
Other
|
118.1
|
93.4
|
||||||
Total liabilities
|
1,589.2
|
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 79.2 and 81.0
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
520.8
|
521.8
|
||||||
Retained earnings
|
501.1
|
596.2
|
||||||
Accumulated other comprehensive loss
|
(17.9
|
)
|
(29.6
|
)
|
||||
Total Jones stockholders' equity
|
1,004.8
|
1,089.2
|
||||||
Noncontrolling interests
|
0.9
|
0.2
|
||||||
Total equity
|
1,005.7
|
1,089.4
|
||||||
Total liabilities and equity
|
$
|
2,595.5
|
$
|
2,715.3
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
Net sales
|
$
|
3,750.6
|
$
|
3,734.0
|
$
|
3,593.5
|
||||||
Licensing income
|
46.2
|
50.2
|
48.3
|
|||||||||
Other revenues
|
1.3
|
1.1
|
0.9
|
|||||||||
Total revenues
|
3,798.1
|
3,785.3
|
3,642.7
|
|||||||||
Cost of goods sold
|
2,427.4
|
2,440.1
|
2,387.2
|
|||||||||
Gross profit
|
1,370.7
|
1,345.2
|
1,255.5
|
|||||||||
Selling, general and administrative expenses
|
1,226.9
|
1,173.2
|
1,073.0
|
|||||||||
Trademark impairments
|
21.5
|
31.5
|
37.6
|
|||||||||
Goodwill impairment
|
47.6
|
-
|
-
|
|||||||||
Operating income
|
74.7
|
140.5
|
144.9
|
|||||||||
Interest income
|
0.6
|
0.9
|
1.5
|
|||||||||
Interest expense and financing costs
|
145.7
|
74.2
|
60.4
|
|||||||||
Equity in income (loss) of unconsolidated affiliate
|
2.5
|
3.9
|
(0.9
|
)
|
||||||||
(Loss) income before (benefit) provision for income taxes
|
(67.9
|
)
|
71.1
|
85.1
|
||||||||
(Benefit) provision for income taxes
|
(12.9
|
)
|
19.6
|
30.7
|
||||||||
Net (loss) income
|
(55.0
|
)
|
51.5
|
54.4
|
||||||||
Less: income attributable to noncontrolling interests
|
1.1
|
0.8
|
0.6
|
|||||||||
(Loss) income attributable to Jones
|
$
|
(56.1
|
)
|
$
|
50.7
|
$
|
53.8
|
|||||
(Loss) earnings per share
|
||||||||||||
Basic
|
$
|
(0.72
|
)
|
$
|
0.62
|
$
|
0.63
|
|||||
Diluted
|
(0.72
|
)
|
0.61
|
0.62
|
||||||||
Weighted average common shares outstanding
|
||||||||||||
Basic
|
74.9
|
79.6
|
82.1
|
|||||||||
Diluted
|
74.9
|
81.3
|
82.6
|
|||||||||
Dividends declared per share
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
Net (loss) income
|
$
|
(55.0
|
)
|
$
|
51.5
|
$
|
54.4
|
|||||
Other comprehensive income (loss):
|
||||||||||||
Pension and postretirement liability adjustments, net of $0.8, $3.9 and $1.0 tax benefit
|
(0.1
|
)
|
(7.1
|
)
|
(1.7
|
)
|
||||||
Change in fair value of cash flow hedges, net of $0.0, $0.1 and $0.1 tax benefit
|
-
|
(0.2
|
)
|
(0.3
|
)
|
|||||||
Reclassification adjustment for hedge gains and losses included in net (loss) income, net of $0.0, $0.2 and $0.1 tax benefit
|
0.1
|
0.5
|
0.1
|
|||||||||
Foreign currency translation adjustments
|
11.7
|
(14.4
|
)
|
1.1
|
||||||||
Total other comprehensive income (loss)
|
11.7
|
(21.2
|
)
|
(0.8
|
)
|
|||||||
Comprehensive (loss) income
|
$
|
(43.3
|
)
|
$
|
30.3
|
$
|
53.6
|
|
Number of common shares outstanding
|
Total equity
|
Common stock
|
Addi-tional paid-in capital
|
Retained earnings
|
Accumu-lated other compre-hensive
Income (loss)
|
Treasury stock
|
Non-controlling interests
|
Redeemable non-controlling interest
|
|||||||||||||||||||||||||||
Balance, January 1, 2010
|
85.4
|
$
|
1,092.5
|
$
|
1.6
|
$
|
1,360.3
|
$
|
1,564.4
|
$
|
(7.6
|
)
|
$
|
(1,826.3
|
)
|
$
|
0.1
|
$
|
-
|
|||||||||||||||||
Year ended December 31, 2010:
|
||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
-
|
53.6
|
-
|
-
|
53.8
|
(0.8
|
)
|
-
|
0.6
|
-
|
||||||||||||||||||||||||||
Issuance of restricted stock to employees, net of forfeitures
|
1.7
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Amortization expense in connection with employee stock options and restricted stock
|
-
|
22.0
|
-
|
22.0
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Exercise of employee stock options
|
-
|
0.6
|
-
|
0.6
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
(0.6
|
)
|
-
|
-
|
-
|
-
|
-
|
(0.6
|
)
|
-
|
|||||||||||||||||||||||||
Tax effects from exercise of employee stock options and vesting of restricted stock
|
-
|
(0.6
|
)
|
-
|
(0.6
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Tax effects of expired employee stock options
|
-
|
(1.1
|
)
|
-
|
(1.1
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Dividends on common stock ($0.20 per share)
|
-
|
(17.4
|
)
|
-
|
-
|
(17.4
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Repurchase of common shares
|
(0.7
|
)
|
(10.7
|
)
|
-
|
-
|
-
|
-
|
(10.7
|
)
|
-
|
-
|
||||||||||||||||||||||||
Retirement of treasury stock
|
-
|
-
|
(0.7
|
)
|
(839.3
|
)
|
(997.0
|
)
|
-
|
1,837.0
|
-
|
-
|
||||||||||||||||||||||||
Balance, December 31, 2010
|
86.4
|
1,138.3
|
0.9
|
541.9
|
603.8
|
(8.4
|
)
|
-
|
0.1
|
-
|
||||||||||||||||||||||||||
Year ended December 31, 2011:
|
||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
-
|
30.3
|
-
|
-
|
50.7
|
(21.2
|
)
|
-
|
0.8
|
-
|
||||||||||||||||||||||||||
Issuance of restricted stock to employees, net of forfeitures
|
1.8
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Amortization expense in connection with restricted stock
|
-
|
16.7
|
-
|
16.7
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
(0.7
|
)
|
-
|
-
|
-
|
-
|
-
|
(0.7
|
)
|
-
|
|||||||||||||||||||||||||
Tax effects from vesting of restricted stock
|
-
|
1.1
|
-
|
1.1
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Tax effects of expired employee stock options
|
-
|
(1.4
|
)
|
-
|
(1.4
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Dividends on common stock ($0.20 per share)
|
-
|
(17.0
|
)
|
-
|
-
|
(17.0
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Repurchase of common shares
|
(7.2
|
)
|
(78.0
|
)
|
(0.1
|
)
|
(36.5
|
)
|
(41.4
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Other
|
-
|
0.1
|
-
|
-
|
0.1
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Balance, December 31, 2011
|
81.0
|
1,089.4
|
0.8
|
521.8
|
596.2
|
(29.6
|
)
|
-
|
0.2
|
-
|
||||||||||||||||||||||||||
Year ended December 31, 2012:
|
||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income
|
-
|
(43.3
|
)
|
-
|
-
|
(56.1
|
)
|
11.7
|
-
|
1.1
|
-
|
|||||||||||||||||||||||||
Issuance of restricted stock to employees, net of forfeitures
|
2.4
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Acquisition of Brian Atwood
|
-
|
0.6
|
-
|
-
|
-
|
-
|
-
|
0.6
|
0.6
|
|||||||||||||||||||||||||||
Amortization expense in connection with restricted stock
|
-
|
19.7
|
-
|
19.7
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
(1.0
|
)
|
-
|
-
|
-
|
-
|
-
|
(1.0
|
)
|
-
|
|||||||||||||||||||||||||
Tax effects from vesting of restricted stock
|
-
|
1.7
|
-
|
1.7
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Tax effects of expired employee stock options
|
-
|
(1.5
|
)
|
-
|
(1.5
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Dividends on common stock ($0.20 per share)
|
-
|
(15.8
|
)
|
-
|
-
|
(15.8
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Repurchase of common shares
|
(4.2
|
)
|
(44.3
|
)
|
-
|
(20.9
|
)
|
(23.4
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Other
|
-
|
0.2
|
-
|
-
|
0.2
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Balance, December 31, 2012
|
79.2
|
$
|
1,005.7
|
$
|
0.8
|
$
|
520.8
|
$
|
501.1
|
$
|
(17.9
|
)
|
$
|
-
|
$
|
0.9
|
$
|
0.6
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net (loss) income
|
$
|
(55.0
|
)
|
$
|
51.5
|
$
|
54.4
|
|||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities, net of acquisitions:
|
||||||||||||
Amortization of employee stock options and restricted stock
|
19.7
|
16.7
|
22.0
|
|||||||||
Depreciation and other amortization
|
90.1
|
88.1
|
91.9
|
|||||||||
Goodwill impairment
|
47.6
|
-
|
-
|
|||||||||
Trademark impairments
|
21.5
|
31.5
|
37.6
|
|||||||||
Other impairment losses
|
6.7
|
10.6
|
11.6
|
|||||||||
Adjustments to acquisition consideration payable
|
84.4
|
11.9
|
19.0
|
|||||||||
Equity in (income) loss of unconsolidated affiliate
|
(2.5
|
)
|
(3.9
|
)
|
0.9
|
|||||||
Provision for (recovery of) losses on accounts receivable
|
0.3
|
1.3
|
(0.2
|
)
|
||||||||
Deferred taxes
|
(26.4
|
)
|
17.9
|
4.5
|
||||||||
Fair value adjustments related to interest rate swaps and cap
|
1.3
|
2.1
|
2.4
|
|||||||||
Write-off of deferred financing fees
|
-
|
1.9
|
-
|
|||||||||
Gain on sale of trademark
|
(3.1
|
)
|
-
|
-
|
||||||||
Other items, net
|
(0.4
|
)
|
6.1
|
0.3
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable
|
(29.4
|
)
|
22.3
|
(19.5
|
)
|
|||||||
Inventories
|
7.6
|
25.7
|
(70.3
|
)
|
||||||||
Prepaid expenses and other current assets
|
(4.9
|
)
|
1.3
|
(4.7
|
)
|
|||||||
Accounts payable
|
18.2
|
(5.7
|
)
|
24.8
|
||||||||
Income taxes payable/prepaid income taxes
|
(0.4
|
)
|
7.2
|
(21.1
|
)
|
|||||||
Accrued expenses and other current liabilities
|
7.9
|
(21.2
|
)
|
8.0
|
||||||||
Acquisition consideration payable
|
(94.6
|
)
|
(5.3
|
)
|
(1.3
|
)
|
||||||
Other assets and liabilities
|
24.1
|
11.7
|
(19.0
|
)
|
||||||||
Total adjustments
|
167.7
|
220.2
|
86.9
|
|||||||||
Net cash provided by operating activities
|
112.7
|
271.7
|
141.3
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Acquisition of KG Group Holdings, net of cash acquired
|
-
|
(143.1
|
)
|
-
|
||||||||
Acquisition of Stuart Weitzman Holdings, net of cash acquired
|
-
|
-
|
(159.3
|
)
|
||||||||
Acquisition of Moda Nicola International
|
-
|
(2.5
|
)
|
(14.4
|
)
|
|||||||
Acquisition of Brian Atwood, net of cash acquired
|
(4.4
|
)
|
-
|
-
|
||||||||
Contingent consideration paid related to investment in GRI Group Limited
|
(3.5
|
)
|
-
|
-
|
||||||||
Capital expenditures
|
(76.5
|
)
|
(98.0
|
)
|
(41.0
|
)
|
||||||
Proceeds from sale of trademark
|
5.0
|
-
|
-
|
|||||||||
Other items, net
|
(0.1
|
)
|
0.1
|
0.4
|
||||||||
Net cash used in investing activities
|
(79.5
|
)
|
(243.5
|
)
|
(214.3
|
)
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Issuance of 6.875% Senior Notes due 2019
|
103.5
|
300.0
|
-
|
|||||||||
Debt issuance costs
|
(2.6
|
)
|
(6.6
|
)
|
-
|
|||||||
Costs related to secured revolving credit agreement
|
(0.3
|
)
|
(3.3
|
)
|
(7.3
|
)
|
||||||
Repayment of acquired debt of KG Group Holdings
|
-
|
(174.1
|
)
|
-
|
||||||||
Repayments of long-term debt
|
(0.1
|
)
|
(0.1
|
)
|
(0.2
|
)
|
||||||
Cash distributions to former owners of Stuart Weitzman Holdings
|
-
|
-
|
(19.0
|
)
|
||||||||
Distributions to noncontrolling interests
|
(1.0
|
)
|
(0.7
|
)
|
(0.6
|
)
|
||||||
Payments of acquisition consideration payable
|
(163.9
|
)
|
(10.1
|
)
|
(4.3
|
)
|
||||||
Repurchases of common stock
|
(44.0
|
)
|
(78.0
|
)
|
(10.7
|
)
|
||||||
Proceeds from exercise of employee stock options
|
-
|
-
|
0.6
|
|||||||||
Dividends paid
|
(15.5
|
)
|
(16.6
|
)
|
(17.2
|
)
|
||||||
Principal payments on capital leases
|
(1.9
|
)
|
(1.7
|
)
|
(2.6
|
)
|
||||||
Excess tax benefits from share-based payment arrangements
|
2.3
|
1.6
|
1.2
|
|||||||||
Net cash (used in) provided by financing activities
|
(123.5
|
)
|
10.4
|
(60.1
|
)
|
|||||||
EFFECT OF EXCHANGE RATES ON CASH
|
1.1
|
(0.6
|
)
|
0.5
|
||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(89.2
|
)
|
38.0
|
(132.6
|
)
|
|||||||
CASH AND CASH EQUIVALENTS, BEGINNING
|
238.8
|
200.8
|
333.4
|
|||||||||
CASH AND CASH EQUIVALENTS, ENDING
|
$
|
149.6
|
$
|
238.8
|
$
|
200.8
|
$ | the use of foreign currency forward contracts to hedge a portion of anticipated future short-term inventory purchases to offset the effects of changes in foreign currency exchange rates (primarily between the U.S. Dollar and the Canadian Dollar); |
$ | the use of foreign currency forward contracts to hedge a portion of anticipated repayments of intercompany debt (primarily between the U.S. Dollar and the British Pound); and |
$ | the use of interest rate swaps and caps to effectively convert a portion of our outstanding fixed-rate debt to variable-rate debt to take advantage of lower interest rates. |
For the year ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
Number of options (in millions)
|
N/
|
A
|
4.4
|
6.0
|
||||||||
Weighted average exercise price
|
|
$34.74
|
|
$33.25
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions except per share amounts)
|
||||||||||||
Net (loss) income
|
$
|
(55.0
|
)
|
$
|
51.5
|
$
|
54.4
|
|||||
Less: income attributable to noncontrolling interests
|
1.1
|
0.8
|
0.6
|
|||||||||
(Loss) income attributable to Jones
|
(56.1
|
)
|
50.7
|
53.8
|
||||||||
Less: (loss) income allocated to participating securities
|
(1.8
|
)
|
1.5
|
2.4
|
||||||||
(Loss) income available to common stockholders of Jones
|
$
|
(54.3
|
)
|
$
|
49.2
|
$
|
51.4
|
|||||
Weighted-average common shares outstanding - basic
|
74.9
|
79.6
|
82.1
|
|||||||||
Effect of dilutive employee stock options and restricted stock
|
-
|
1.7
|
0.5
|
|||||||||
Weighted-average common shares and share equivalents outstanding - diluted
|
74.9
|
81.3
|
82.6
|
|||||||||
(Loss) earnings per share
|
||||||||||||
Basic
|
$
|
(0.72
|
)
|
$
|
0.62
|
$
|
0.63
|
|||||
Diluted
|
(0.72
|
)
|
0.61
|
0.62
|
(In millions)
|
Weighted-average amortization life (in months)
|
Fair
Value |
||||||
Current assets
|
$
|
3.2
|
||||||
Property, plant and equipment
|
0.2
|
|||||||
Intangible assets:
|
||||||||
Goodwill
|
6.6
|
|||||||
Customer relationships
|
120
|
7.9
|
||||||
Trademarks
|
240
|
17.0
|
||||||
Covenants not to compete
|
59
|
0.2
|
||||||
Order backlog
|
3
|
1.7
|
||||||
Total assets acquired
|
36.8
|
|||||||
Current liabilities
|
(1.1
|
)
|
||||||
Total purchase price
|
$
|
35.7
|
(In millions)
|
||||
Total revenues
|
$
|
17.0
|
||
Loss before provision for income taxes
|
(6.9
|
)
|
(In millions)
|
Weighted-average amortization life (in months)
|
Fair
Value |
||||||
Cash
|
$
|
21.0
|
||||||
Accounts receivable
|
20.1
|
|||||||
Inventories
|
18.9
|
|||||||
Other current assets
|
1.5
|
|||||||
Property, plant and equipment
|
19.4
|
|||||||
Intangible assets:
|
||||||||
Trademarks
|
154.1
|
|||||||
Goodwill
|
115.1
|
|||||||
Customer relationships
|
120
|
20.2
|
||||||
Covenant not to compete
|
55
|
3.5
|
||||||
Order backlog
|
9
|
10.5
|
||||||
Favorable lease agreements
|
139
|
6.1
|
||||||
Licensing agreements
|
55
|
3.6
|
||||||
Other noncurrent assets
|
0.7
|
|||||||
Total assets acquired
|
394.7
|
|||||||
Cash distributions payable
|
19.0
|
|||||||
Current liabilities
|
10.6
|
|||||||
Unfavorable lease agreements
|
73
|
2.7
|
||||||
Other long-term liabilities
|
0.3
|
|||||||
Total liabilities assumed
|
32.6
|
|||||||
Total purchase price
|
$
|
362.1
|
(In millions)
|
||||
Total revenues
|
$
|
129.2
|
||
Loss before provision for income taxes
|
(7.5
|
)
|
(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)
|
||||
Total revenues
|
$
|
214.4
|
||
Loss before provision for income taxes
|
(5.4
|
)
|
(In millions)
|
Weighted-average 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
|
3.2
|
|||||||
Customer relationships
|
6
|
0.4
|
||||||
Order backlog
|
3
|
0.7
|
||||||
Total assets acquired
|
13.4
|
|||||||
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
|
$
|
5.5
|
(In millions)
|
||||
Total revenues
|
$
|
4.3
|
||
Loss before provision for income taxes
|
(5.6
|
)
|
(In millions, except per share amounts)
|
||||
|
2011
|
|||
Total revenues
|
$
|
3,915.5
|
||
Net income
|
50.0
|
|||
Earnings per share attributable to Jones
|
||||
Basic
|
$
|
0.60
|
||
Diluted
|
0.59
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Trade accounts receivable
|
$
|
408.4
|
$
|
367.9
|
||||
Allowances for doubtful accounts, returns, discounts and co-op advertising
|
(27.4
|
)
|
(28.3
|
)
|
||||
|
$
|
381.0
|
$
|
339.6
|
(In millions)
|
One-time
termination
benefits
|
Lease
obligations
|
Total jewelry restructuring
|
|||||||||
Balance, January 1, 2010
|
$
|
2.9
|
$
|
-
|
$
|
2.9
|
||||||
Additions
|
1.0
|
2.7
|
3.7
|
|||||||||
Payments and reductions
|
(2.6
|
)
|
(0.4
|
)
|
(3.0
|
)
|
||||||
Balance, December 31, 2010
|
1.3
|
2.3
|
3.6
|
|||||||||
Additions
|
-
|
0.1
|
0.1
|
|||||||||
Payments and reductions
|
(1.3
|
)
|
(0.9
|
)
|
(2.2
|
)
|
||||||
Balance, December 31, 2011
|
-
|
1.5
|
1.5
|
|||||||||
Additions
|
-
|
0.4
|
0.4
|
|||||||||
Payments and reductions
|
-
|
(0.5
|
)
|
(0.5
|
)
|
|||||||
Balance, December 31, 2012
|
$
|
-
|
$
|
1.4
|
$
|
1.4
|
(In millions)
|
One-time
termination
benefits
|
Lease
obligations
|
Total Texas warehouse restructuring
|
|||||||||
Balance, January 1, 2010
|
$
|
3.1
|
$
|
-
|
$
|
3.1
|
||||||
Additions
|
0.3
|
6.9
|
7.2
|
|||||||||
Payments and reductions
|
(3.4
|
)
|
(2.8
|
)
|
(6.2
|
)
|
||||||
Balance, December 31, 2010
|
-
|
4.1
|
4.1
|
|||||||||
Additions
|
-
|
0.5
|
0.5
|
|||||||||
Payments and reductions
|
-
|
(3.7
|
)
|
(3.7
|
)
|
|||||||
Balance, December 31, 2011
|
-
|
0.9
|
0.9
|
|||||||||
Payments and reductions
|
-
|
(0.1
|
)
|
(0.1
|
)
|
|||||||
Balance, December 31, 2012
|
$
|
-
|
$
|
0.8
|
$
|
0.8
|
(In millions)
|
Lease
obligations
|
|||
Balance, January 1, 2010
|
$
|
2.0
|
||
Reversals
|
(1.4
|
)
|
||
Payments and reductions
|
(0.3
|
)
|
||
Balance, December 31, 2010
|
0.3
|
|||
Payments and reductions
|
(0.1
|
)
|
||
Balance, December 31, 2011
|
0.2
|
|||
Payments and reductions
|
(0.1
|
)
|
||
Balance, December 31, 2012
|
$
|
0.1
|
(In millions)
|
One-time
termination
benefits
|
|||
Balance, January 1, 2010
|
$
|
1.9
|
||
Additions
|
3.0
|
|||
Payments and reductions
|
(2.7
|
)
|
||
Balance, December 31, 2010
|
2.2
|
|||
Additions
|
1.6
|
|||
Payments and reductions
|
(2.5
|
)
|
||
Balance, December 31, 2011
|
1.3
|
|||
Additions
|
1.7
|
|||
Payments and reductions
|
(2.1
|
)
|
||
Balance, December 31, 2012
|
$
|
0.9
|
December 31,
|
2012
|
2011
|
Useful
lives
(years)
|
|||||||||
(In millions)
|
||||||||||||
Land and buildings
|
$
|
78.1
|
$
|
74.3
|
10 – 20
|
|||||||
Leasehold improvements
|
255.3
|
272.5
|
1 – 20
|
|||||||||
Machinery, equipment and software
|
385.3
|
418.8
|
3 – 20
|
|||||||||
Furniture and fixtures
|
104.6
|
96.6
|
1 – 8
|
|||||||||
Construction in progress
|
20.1
|
14.6
|
-
|
|||||||||
|
843.4
|
876.8
|
||||||||||
Less: accumulated depreciation and amortization
|
565.3
|
605.4
|
||||||||||
|
$
|
278.1
|
$
|
271.4
|
December 31,
|
2012
|
2011
|
Useful
lives
(years)
|
|||||||||
(In millions)
|
||||||||||||
Buildings
|
$
|
37.8
|
$
|
37.8
|
10 - 20
|
|||||||
Machinery and equipment
|
0.2
|
13.0
|
3 - 5
|
|||||||||
|
38.0
|
50.8
|
||||||||||
Less: accumulated amortization
|
21.2
|
31.9
|
||||||||||
|
$
|
16.8
|
$
|
18.9
|
(In millions)
|
Domestic Wholesale Sportswear
|
Domestic Wholesale Jeanswear
|
Domestic Wholesale Footwear & Accessories
|
Domestic Retail
|
International Wholesale
|
International Retail
|
Total
|
|||||||||||||||||||||
Balance, January 1, 2011
|
||||||||||||||||||||||||||||
Goodwill
|
$
|
46.7
|
$
|
519.2
|
$
|
859.8
|
$
|
120.6
|
$
|
68.5
|
$
|
-
|
$
|
1,614.8
|
||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
-
|
(1,453.0
|
)
|
|||||||||||||||||
Net goodwill
|
46.7
|
-
|
46.6
|
-
|
68.5
|
- |
161.8
|
|||||||||||||||||||||
Acquisition of Kurt Geiger
|
-
|
-
|
-
|
-
|
45.8
|
53.5
|
99.3
|
|||||||||||||||||||||
Foreign currency translation effects
|
-
|
-
|
-
|
-
|
(2.7
|
)
|
(3.1
|
)
|
(5.8
|
)
|
||||||||||||||||||
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
|
-
|
-
|
3.2
|
-
|
-
|
-
|
3.2
|
|||||||||||||||||||||
Impairment
|
-
|
-
|
-
|
-
|
-
|
(47.6
|
)
|
(47.6
|
)
|
|||||||||||||||||||
Foreign currency translation effects
|
-
|
-
|
-
|
-
|
1.9
|
2.5
|
4.4
|
|||||||||||||||||||||
Balance, December 31, 2012
|
||||||||||||||||||||||||||||
Goodwill
|
46.7
|
519.2
|
863.0
|
120.6
|
113.5
|
52.7
|
1,715.7
|
|||||||||||||||||||||
Accumulated impairment losses
|
-
|
(519.2
|
)
|
(813.2
|
)
|
(120.6
|
)
|
-
|
(47.4
|
)
|
(1,500.4
|
)
|
||||||||||||||||
Net goodwill
|
$
|
46.7
|
$
|
-
|
$
|
49.8
|
$
|
-
|
$
|
113.5
|
$
|
5.3
|
$
|
215.3
|
December 31,
|
2012
|
2011
|
||||||||||||||
(In millions)
|
Gross
Carrying Amount
|
Accumulated Amortization
|
Gross
Carrying Amount
|
Accumulated Amortization
|
||||||||||||
Amortized intangible assets
|
||||||||||||||||
Customer relationships
|
$
|
151.6
|
$
|
24.4
|
$
|
146.3
|
$
|
8.3
|
||||||||
License agreements
|
61.4
|
54.5
|
61.4
|
52.4
|
||||||||||||
Trademarks
|
24.5
|
4.9
|
17.1
|
1.6
|
||||||||||||
Acquired favorable leases
|
13.1
|
3.5
|
12.8
|
2.0
|
||||||||||||
Covenants not to compete
|
3.8
|
2.1
|
3.8
|
1.4
|
||||||||||||
Acquired order backlog
|
-
|
-
|
2.6
|
2.6
|
||||||||||||
|
254.4
|
89.4
|
244.0
|
68.3
|
||||||||||||
Indefinite-life trademarks
|
704.7
|
-
|
721.7
|
-
|
||||||||||||
|
$
|
959.1
|
$
|
89.4
|
$
|
965.7
|
$
|
68.3
|
|
2012
|
2011
|
||||||||||||||
|
Goodwill
|
Trademarks
|
Goodwill
|
Trademarks
|
||||||||||||
Discount rates
|
12.0
|
%
|
12.0
|
%
|
11.0
|
%
|
11.0
|
%
|
||||||||
Royalty rates
|
--
|
1.0% - 8.0
|
%
|
--
|
4.0% - 8.0
|
%
|
||||||||||
Weighted-average revenue growth rates
|
5.4
|
%
|
6.2
|
%
|
10.6
|
%
|
5.6
|
%
|
||||||||
Long-term growth rates
|
3.0
|
%
|
0% - 3.0
|
%
|
3.0
|
%
|
0% - 3.0
|
%
|
· | 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 and 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 unobservable inputs (Level 3)
|
||||||||||||
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
|
|||||||||
December 31, 2012:
|
|
||||||||||||||||
Rabbi Trust assets
|
Prepaid expenses and other current assets
|
$
|
8.4
|
$
|
8.4
|
$
|
-
|
$
|
-
|
||||||||
Interest rate cap
|
Other long-term assets
|
-
|
-
|
-
|
-
|
||||||||||||
British Pound – U.S. Dollar forward contract
|
Prepaid expenses and other current assets
|
-
|
-
|
-
|
-
|
||||||||||||
Canadian Dollar – U.S. Dollar forward contracts
|
Prepaid expenses and other current assets
|
0.2
|
-
|
0.2
|
-
|
||||||||||||
Total assets
|
$
|
8.6
|
$
|
8.4
|
$
|
0.2
|
$
|
-
|
|||||||||
Rabbi Trust liabilities
|
Accrued employee compensation and benefits
|
$
|
8.4
|
$
|
8.4
|
$
|
-
|
$
|
-
|
||||||||
Deferred director fees
|
Accrued expenses and other current liabilities
|
0.2
|
0.2
|
-
|
-
|
||||||||||||
Acquisition consideration
|
Current portion of acquisition consideration payable
|
30.3
|
-
|
-
|
30.3
|
||||||||||||
Acquisition consideration
|
Acquisition consideration payable, net of current portion
|
6.0
|
-
|
-
|
6.0
|
||||||||||||
Total liabilities
|
$
|
44.9
|
$
|
8.6
|
$
|
-
|
$
|
36.3
|
(In millions)
|
Acquisition of Moda
|
Acquisition of SWH
|
Total Acquisition Consideration Payable
|
|||||||||
Balance, January 1, 2011
|
$
|
22.9
|
$
|
191.0
|
$
|
213.9
|
||||||
Payments
|
-
|
(15.4
|
)
|
(15.4
|
)
|
|||||||
Total adjustments included in earnings
|
(8.1
|
)
|
20.0
|
11.9
|
||||||||
Balance, December 31, 2011
|
14.8
|
195.6
|
210.4
|
|||||||||
Payments
|
(3.5
|
)
|
(255.0
|
)
|
(258.5
|
)
|
||||||
Total adjustments included in earnings
|
(3.9
|
)
|
88.3
|
84.4
|
||||||||
Balance, December 31, 2012
|
$
|
7.4
|
$
|
28.9
|
$
|
36.3
|
(In millions)
|
Fair Value at December 31, 2012
|
Valuation
technique
|
Unobservable
inputs
|
Range
(Weighted Average)
|
|||
Acquisition of Moda
|
$
|
7.4
|
Discounted projection of financial results
|
Net sales growth
Gross margin multiplier
Discount rate
|
-30% - +10% (-2.7%)
1.50 - 1.63 (1.59)
11.7%
|
||
Acquisition of SWH
|
$
|
28.9
|
Discounted projection of financial results and future cash flow
|
EBITDA (1) multiplier
Discount rate
|
9.0
11.7%
|
(In millions)
|
Fair Value Measurements Using
|
|||||||||||||||||||
Description
|
Fair 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 during year
|
|||||||||||||||
For the year ended December 31, 2010:
|
||||||||||||||||||||
Property and equipment
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9.0
|
||||||||||
License agreement
|
-
|
-
|
-
|
-
|
2.6
|
|||||||||||||||
Trademarks
|
107.2
|
-
|
-
|
107.2
|
37.6
|
|||||||||||||||
For the year ended December 31, 2011:
|
||||||||||||||||||||
Property and equipment
|
1.2
|
-
|
-
|
1.2
|
10.2
|
|||||||||||||||
Transportation equipment
|
0.6
|
0.6
|
-
|
-
|
0.4
|
|||||||||||||||
Trademarks
|
75.7
|
-
|
-
|
75.7
|
31.5
|
|||||||||||||||
For the year ended December 31, 2012:
|
||||||||||||||||||||
Property and equipment
|
0.1
|
-
|
-
|
0.1
|
1.1
|
|||||||||||||||
Trademarks
|
43.6
|
-
|
-
|
43.6
|
21.5
|
|||||||||||||||
Customer relationships
|
8.9
|
-
|
-
|
8.9
|
5.6
|
|||||||||||||||
Goodwill
|
5.2
|
-
|
-
|
5.2
|
47.6
|
· | foreign exchange contracts to exchange Canadian Dollars for a total notional value of US $16.1 million at a weighted average exchange rate of 0.985 maturing through November 2013; |
· | a foreign exchange contract to exchange 6.0 million British Pounds for U.S. Dollars at an exchange rate of 1.623 maturing in December 2013; and |
· | an interest rate cap (to limit our exposure to increases in the variable rates of our previously-used interest rate swaps) maturing in November 2014. |
December 31,
|
2012
|
2011
|
||||||||||||||||||
(In millions)
|
Fair
Value Level
|
Carrying Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
|||||||||||||||
Senior Notes, including hedged items recorded at fair value
|
1
|
$
|
924.3
|
$
|
884.5
|
$
|
821.7
|
$
|
692.6
|
|||||||||||
Other long-term debt, including current portion
|
2
|
10.2
|
9.3
|
9.8
|
8.2
|
|||||||||||||||
Note receivable from GRI
|
2
|
-
|
-
|
10.0
|
10.0
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Note Payable, due 2014
|
$
|
0.1
|
$
|
0.2
|
||||
5.0% Loan Notes, due 2016
|
10.1
|
9.6
|
||||||
5.125% Senior Notes due 2014, net of unamortized discount of $0.1 and $0.1 and including fair value adjustments of $9.4 and $13.1
|
259.3
|
263.0
|
||||||
6.875% Senior Notes due 2019, net of unamortized premium of $3.4 and $0.0 and including fair value adjustments of $11.9 and $9.0
|
415.3
|
309.0
|
||||||
6.125% Senior Notes due 2034, net of unamortized discount of $0.3 and $0.3
|
249.7
|
249.7
|
||||||
|
934.5
|
831.5
|
||||||
Less current portion
|
0.1
|
0.1
|
||||||
|
$
|
934.4
|
$
|
831.4
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Foreign currency translation adjustments
|
$
|
5.6
|
$
|
(6.1
|
)
|
|||
Pension and postretirement liability adjustments
|
(23.6
|
)
|
(23.5
|
)
|
||||
Unrealized losses on hedge contracts
|
0.1
|
-
|
||||||
|
$
|
(17.9
|
)
|
$
|
(29.6
|
)
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Interest rate swaps
|
$
|
1.3
|
$
|
1.0
|
$
|
1.0
|
||||||
Interest rate cap
|
0.2
|
1.1
|
1.4
|
|||||||||
Net increase in interest expense
|
$
|
1.5
|
$
|
2.1
|
$
|
2.4
|
(In millions)
|
Notional Amounts
|
|||||||||||
December 31,
|
2012
|
2011
|
2010
|
|||||||||
Canadian Dollar – U.S. Dollar forward exchange contracts
|
US$16.1
|
US$5.3
|
US$20.3
|
|||||||||
British Pound – U.S. Dollar forward exchange contract
|
|
£6.0
|
-
|
-
|
(In millions)
|
December 31, 2012
|
December 31, 2011
|
||||||||
Balance Sheet Location
|
Fair Value
|
Balance Sheet Location
|
Fair Value
|
|||||||
Derivatives designated as hedging instruments
|
|
|
||||||||
Interest rate swap contracts
|
|
$
|
-
|
Other long-term assets
|
$
|
5.5
|
||||
Foreign exchange contracts
|
Prepaid expenses and other current assets
|
0.2
|
Prepaid expenses and other current assets
|
0.1
|
||||||
Total derivative assets
|
|
$
|
0.2
|
|
$
|
5.6
|
||||
|
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
||||||||
Interest rate cap contract
|
Other long-term assets
|
$
|
-
|
Other long-term assets
|
$
|
0.2
|
||||
Total derivative assets
|
|
$
|
-
|
|
$
|
0.2
|
(In millions)
|
|
Amount of Pretax Gain (Loss) due to
Ineffectiveness Recognized in Income
|
|||||||||||
Derivative type
|
Location of Pretax Gain (Loss)
due to Ineffectiveness
Recognized in Income
|
2012
|
2011
|
2010
|
|||||||||
Interest rate swap contracts
|
Interest expense
|
$
|
(1.3
|
)
|
$
|
(1.0
|
)
|
$
|
(1.0
|
)
|
(In millions)
|
Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income
|
Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income
|
|||||||||||||||||||||||
Derivative type
|
2012
|
2011
|
2010
|
Location of Pretax
Loss Reclassified
from Other Comprehensive
Income into Income
|
2012
|
2011
|
2010
|
||||||||||||||||||
Foreign exchange contracts
|
$
|
0.1
|
$
|
(0.3
|
)
|
$
|
(0.3
|
)
|
Cost of sales
|
$
|
(0.1
|
)
|
$
|
(0.8
|
)
|
$
|
(0.1
|
)
|
(In millions)
|
|
Amount of Pretax Gain (Loss)
Recognized in Income
|
|||||||||||
Derivative type
|
Location of Pretax Gain (Loss)
Recognized in Income
|
2012
|
2011
|
2010
|
|||||||||
Interest rate cap contract
|
Interest expense
|
$
|
(0.2
|
)
|
$
|
(1.1
|
)
|
$
|
(1.4
|
)
|
|||
British Pound – U.S. Dollar forward contract
|
Selling, general and administrative expenses
|
-
|
-
|
-
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Warehouses, office facilities and equipment
|
$
|
23.4
|
$
|
25.2
|
||||
Less: current portion
|
2.1
|
1.9
|
||||||
Obligations under capital leases - noncurrent
|
$
|
21.3
|
$
|
23.3
|
Year Ending December 31,
|
||||
(In millions)
|
||||
2013
|
$
|
3.7
|
||
2014
|
3.7
|
|||
2015
|
3.7
|
|||
2016
|
3.7
|
|||
2017
|
3.7
|
|||
Later years
|
13.6
|
|||
Total minimum lease payments
|
32.1
|
|||
Less: amount representing interest
|
8.7
|
|||
Present value of net minimum lease payments
|
$
|
23.4
|
Year Ending December 31,
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Givenchy
|
$
|
0.6
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Jessica Simpson/Vince Camuto
|
3.1
|
3.9
|
0.5
|
0.5
|
0.5
|
0.5
|
||||||||||||||||||
Lipsy
|
0.1
|
0.1
|
0.1
|
-
|
-
|
-
|
||||||||||||||||||
|
$
|
3.8
|
$
|
4.0
|
$
|
0.6
|
$
|
0.5
|
$
|
0.5
|
$
|
0.5
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Minimum rent
|
$
|
127.1
|
$
|
119.4
|
$
|
106.0
|
||||||
Contingent rent
|
2.5
|
3.5
|
2.8
|
|||||||||
Less: sublease rent
|
(2.3
|
)
|
(4.5
|
)
|
(2.9
|
)
|
||||||
|
$
|
127.3
|
$
|
118.4
|
$
|
105.9
|
Year Ending December 31,
|
||||
(In millions)
|
||||
2013
|
$
|
135.3
|
||
2014
|
128.3
|
|||
2015
|
116.7
|
|||
2016
|
99.7
|
|||
2017
|
77.4
|
|||
Later years
|
387.9
|
|||
|
$
|
945.3
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid (received) during the year for:
|
||||||||||||
Interest
|
$
|
147.1
|
$
|
45.9
|
$
|
36.4
|
||||||
Net income tax payments (refunds)
|
5.8
|
(9.6
|
)
|
39.5
|
||||||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||||||
Fair value of restricted stock issued to employees
|
24.6
|
21.4
|
29.6
|
|||||||||
Shares withheld for taxes upon vesting of restricted stock
|
0.3
|
-
|
-
|
|||||||||
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger
|
-
|
10.2
|
-
|
|||||||||
Acquisition consideration payable recorded for acquisition of Moda
|
-
|
-
|
18.8
|
|||||||||
Acquisition consideration payable recorded for acquisition of SWH
|
-
|
-
|
181.8
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$
|
2.1
|
$
|
(4.9
|
)
|
$
|
16.5
|
|||||
State and local
|
1.5
|
0.6
|
2.2
|
|||||||||
Foreign
|
9.9
|
6.0
|
7.5
|
|||||||||
|
13.5
|
1.7
|
26.2
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
(11.6
|
)
|
26.7
|
6.3
|
||||||||
State and local
|
(2.6
|
)
|
0.6
|
(0.7
|
)
|
|||||||
Foreign
|
(12.2
|
)
|
(9.4
|
)
|
(1.1
|
)
|
||||||
|
(26.4
|
)
|
17.9
|
4.5
|
||||||||
(Benefit) provision for income taxes
|
$
|
(12.9
|
)
|
$
|
19.6
|
$
|
30.7
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
(Loss) income before (benefit) provision for income taxes
|
||||||||||||
United States
|
$
|
(2.4
|
)
|
$
|
72.7
|
$
|
91.8
|
|||||
Foreign
|
(65.5
|
)
|
(1.6
|
)
|
(6.7
|
)
|
||||||
|
$
|
(67.9
|
)
|
$
|
71.1
|
$
|
85.1
|
Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
(Benefit) provision for Federal income taxes at the statutory rate
|
$
|
(23.8
|
)
|
$
|
24.9
|
$
|
29.8
|
|||||
State and local income taxes, net of federal benefit
|
(0.6
|
)
|
0.9
|
0.9
|
||||||||
Foreign income tax difference
|
(6.8
|
)
|
(8.9
|
)
|
(2.2
|
)
|
||||||
Nondeductible goodwill impairment
|
16.7
|
-
|
-
|
|||||||||
Other items, net
|
1.6
|
2.7
|
2.2
|
|||||||||
(Benefit) provision for income taxes
|
$
|
(12.9
|
)
|
$
|
19.6
|
$
|
30.7
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Deferred tax assets (liabilities):
|
||||||||
Nondeductible accruals and allowances
|
$
|
65.4
|
$
|
52.9
|
||||
Depreciation
|
2.8
|
8.9
|
||||||
Intangible asset valuation and amortization
|
(154.3
|
)
|
(157.6
|
)
|
||||
Loss and credit carryforwards
|
43.4
|
39.0
|
||||||
Amortization of stock-based compensation
|
15.2
|
14.1
|
||||||
Deferred compensation
|
2.9
|
2.4
|
||||||
Inventory valuation
|
(6.8
|
)
|
(8.3
|
)
|
||||
Pension
|
11.0
|
11.1
|
||||||
Gain on sale-leaseback transaction
|
1.7
|
1.9
|
||||||
Prepaid expenses
|
(2.1
|
)
|
(2.7
|
)
|
||||
Display costs
|
(3.8
|
)
|
(4.0
|
)
|
||||
Adjustments to acquisition consideration payable
|
7.8
|
5.9
|
||||||
Other (net)
|
0.1
|
0.4
|
||||||
Partnership differences
|
-
|
(4.6
|
)
|
|||||
Unrealized translation loss
|
0.6
|
1.9
|
||||||
Fair value adjustment on interest rate swaps
|
1.3
|
1.8
|
||||||
Inventory overhead
|
0.1
|
(2.0
|
)
|
|||||
Valuation allowances
|
(8.8
|
)
|
(8.1
|
)
|
||||
Net deferred tax liability
|
$
|
(23.5
|
)
|
$
|
(47.0
|
)
|
||
Included in:
|
||||||||
Current assets
|
33.2
|
26.4
|
||||||
Noncurrent liabilities
|
(56.7
|
)
|
(73.4
|
)
|
||||
Net deferred tax liability
|
$
|
(23.5
|
)
|
$
|
(47.0
|
)
|
(In millions)
|
2012
|
2011
|
||||||
|
||||||||
Uncertain tax positions, beginning of year
|
$
|
4.7
|
$
|
5.6
|
||||
Decreases for tax positions related to prior years
|
(1.1
|
)
|
(0.9
|
)
|
||||
Settlements with tax authorities during the year
|
(3.3
|
)
|
-
|
|||||
Uncertain tax positions, end of year
|
$
|
0.3
|
$
|
4.7
|
|
2012
|
2011
|
2010
|
|||||||||||||||||||||
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
||||||||||||||||||
Outstanding, January 1,
|
1.9
|
$
|
36.50
|
4.4
|
$
|
34.74
|
6.2
|
$
|
32.79
|
|||||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
(0.1
|
)
|
11.81
|
|||||||||||||||||
Cancelled
|
-
|
-
|
(0.1
|
)
|
32.87
|
(0.4
|
)
|
32.30
|
||||||||||||||||
Expired
|
(1.9
|
)
|
|
36.50
|
(2.4
|
)
|
33.43
|
(1.3
|
)
|
27.35
|
||||||||||||||
Outstanding, December 31,
|
-
|
$
|
-
|
1.9
|
$
|
36.50
|
4.4
|
$
|
34.74
|
|||||||||||||||
Exercisable, December 31,
|
-
|
$
|
-
|
1.9
|
$
|
36.50
|
4.4
|
$
|
34.74
|
|
2012
|
2011
|
2010
|
|||||||||
Weighted-average contractual term (in years) of:
|
||||||||||||
Options outstanding at end of year
|
-
|
0.2
|
0.9
|
|||||||||
Options exercisable at end of year
|
-
|
0.2
|
0.9
|
|||||||||
Intrinsic value (in millions) of:
|
||||||||||||
Options outstanding at end of year
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Options exercisable at end of year
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Options exercised during the year
|
$
|
-
|
$
|
-
|
$
|
0.4
|
||||||
Fair value (in millions) of options vested during the year
|
$
|
-
|
$
|
-
|
$
|
1.1
|
|
2012
|
2011
|
2010
|
|||||||||||||||||||||
|
Shares
|
Weighted Average Fair Value
|
Shares
|
Weighted Average Fair Value
|
Shares
|
Weighted Average Fair Value
|
||||||||||||||||||
Nonvested, January 1,
|
5.0
|
$
|
9.91
|
4.7
|
$
|
10.79
|
3.6
|
$
|
10.33
|
|||||||||||||||
Granted
|
3.2
|
7.69
|
2.2
|
9.82
|
1.9
|
15.23
|
||||||||||||||||||
Vested
|
(1.5
|
)
|
7.19
|
(1.5
|
)
|
11.58
|
(0.6
|
)
|
20.48
|
|||||||||||||||
Forfeited
|
(0.8
|
)
|
6.87
|
(0.4
|
)
|
13.58
|
(0.2
|
)
|
12.73
|
|||||||||||||||
Nonvested, December 31,
|
5.9
|
$
|
9.80
|
5.0
|
$
|
9.91
|
4.7
|
$
|
10.79
|
|
2012
|
2011
|
2010
|
|||||||||
Fair value (in millions) of shares vested during the year
|
$
|
10.9
|
$
|
17.4
|
$
|
13.8
|
Year Ended December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Change in benefit obligation
|
||||||||
Benefit obligation, beginning of year
|
$
|
56.8
|
$
|
48.1
|
||||
Interest cost
|
2.5
|
2.7
|
||||||
Actuarial loss - effect of assumption changes
|
5.6
|
9.9
|
||||||
Settlements
|
-
|
(2.4
|
)
|
|||||
Benefits paid
|
(2.7
|
)
|
(1.5
|
)
|
||||
Benefit obligation, end of year
|
62.2
|
56.8
|
||||||
Change in plan assets
|
||||||||
Fair value of plan assets, beginning of year
|
35.0
|
35.6
|
||||||
Actual return on plan assets
|
5.3
|
(1.9
|
)
|
|||||
Employer contribution
|
4.4
|
5.2
|
||||||
Settlements
|
-
|
(2.4
|
)
|
|||||
Benefits paid
|
(2.7
|
)
|
(1.5
|
)
|
||||
Fair value of plan assets, end of year
|
42.0
|
35.0
|
||||||
Underfunded status at end of year
|
$
|
20.2
|
$
|
21.8
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Noncurrent liabilities
|
$
|
20.2
|
$
|
21.8
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Net loss
|
$
|
38.2
|
$
|
37.3
|
December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Projected benefit obligation
|
$
|
62.2
|
$
|
56.8
|
||||
Accumulated benefit obligation
|
62.2
|
56.8
|
||||||
Fair value of plan assets
|
42.0
|
35.0
|
Year Ended December 31,
|
2012
|
2011
|
||||||
(In millions)
|
||||||||
Net Periodic Benefit Cost:
|
||||||||
Interest cost
|
$
|
2.5
|
$
|
2.7
|
||||
Expected return on plan assets
|
(2.6
|
)
|
(2.6
|
)
|
||||
Settlement costs
|
-
|
1.9
|
||||||
Amortization of net loss
|
2.1
|
1.6
|
||||||
Total net periodic benefit cost
|
2.0
|
3.6
|
||||||
Other Changes in Plan Assets and Benefit Obligations
|
||||||||
Recognized in Other Comprehensive Loss:
|
||||||||
Net loss
|
2.9
|
14.4
|
||||||
Recognition due to settlement
|
-
|
(1.9
|
)
|
|||||
Amortization of net loss
|
(2.1
|
)
|
(1.6
|
)
|
||||
Total recognized in other comprehensive loss
|
0.8
|
10.9
|
||||||
Total recognized in net periodic benefit cost and other comprehensive loss
|
$
|
2.8
|
$
|
14.5
|
|
2012
|
2011
|
||||||
Weighted-average assumptions used to determine:
|
||||||||
Benefit obligations at December 31
|
||||||||
Discount rate
|
3.9
|
%
|
4.6
|
%
|
||||
Expected long-term return on plan assets
|
7.0
|
%
|
7.0
|
%
|
||||
Net periodic benefit cost for year ended December 31
|
||||||||
Discount rate
|
4.6
|
%
|
5.6
|
%
|
||||
Expected long-term return on plan assets
|
7.0
|
%
|
7.0
|
%
|
Year Ending December 31,
|
||||
(In millions)
|
||||
2013
|
$
|
2.1
|
||
2014
|
2.2
|
|||
2015
|
2.3
|
|||
2016
|
2.3
|
|||
2017
|
2.5
|
|||
2018 through 2022
|
15.8
|
|||
|
$
|
27.2
|
(In millions)
|
2012
|
2011
|
||||||||||||||||||||||
|
Level 1
|
Level 2
|
Total
|
Level 1
|
Level 2
|
Total
|
||||||||||||||||||
Asset Class
|
||||||||||||||||||||||||
Cash and equivalents
|
$
|
3.5
|
$
|
-
|
$
|
3.5
|
$
|
2.5
|
$
|
-
|
$
|
2.5
|
||||||||||||
Equity securities:
|
||||||||||||||||||||||||
U.S. companies (a)
|
16.4
|
-
|
16.4
|
12.4
|
-
|
12.4
|
||||||||||||||||||
International companies (b)
|
5.6
|
-
|
5.6
|
7.1
|
-
|
7.1
|
||||||||||||||||||
Real Estate (c)
|
2.3
|
-
|
2.3
|
0.6
|
-
|
0.6
|
||||||||||||||||||
Fixed income (d)
|
5.0
|
9.2
|
14.2
|
3.5
|
8.9
|
12.4
|
||||||||||||||||||
Total
|
$
|
32.8
|
$
|
9.2
|
$
|
42.0
|
$
|
26.1
|
$
|
8.9
|
$
|
35.0
|
(a) | This class consists of both index and actively managed mutual funds that invest in large and mid-cap U.S. common stocks. |
(b) | This class consists of both index and actively managed mutual funds that invest in large and emerging market international common stocks. |
(c) | This class consists of actively managed mutual funds that invest in real estate investment trusts. |
(d) | This class consists of managed mutual funds that invest in high-grade corporate, government and mortgage backed securities. |
· | assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; |
· | if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and |
· | if we choose to stop participating in a multiemployer plan, we may be required to contribute an amount to that plan based on the underfunded status of the plan (referred to as a withdrawal liability). |
(In millions)
|
Domestic
Wholesale Sportswear
|
Domestic
Wholesale Jeanswear
|
Domestic
Wholesale Footwear & Accessories
|
Domestic Retail
|
International Wholesale
|
International
Retail
|
Licensing,
Other & Eliminations
|
Consolidated
|
||||||||||||||||||||||||
For the year ended December 31, 2012
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
782.0
|
$
|
746.7
|
$
|
919.7
|
$
|
584.6
|
$
|
330.0
|
$
|
388.9
|
$
|
46.2
|
$
|
3,798.1
|
||||||||||||||||
Segment income (loss)
|
$
|
38.0
|
$
|
53.0
|
$
|
57.4
|
$
|
(51.7
|
)
|
$
|
33.8
|
$
|
5.5
|
$
|
(13.7
|
)
|
122.3
|
|||||||||||||||
Net interest expense
|
(145.1
|
)
|
||||||||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
2.5
|
|||||||||||||||||||||||||||||||
Goodwill impairment
|
(47.6
|
)
|
||||||||||||||||||||||||||||||
Loss before benefit for income taxes
|
$
|
(67.9
|
)
|
|||||||||||||||||||||||||||||
Depreciation and amortization
|
$
|
5.8
|
$
|
1.1
|
$
|
8.7
|
$
|
13.3
|
$
|
3.0
|
$
|
23.8
|
$
|
54.1
|
$
|
109.8
|
||||||||||||||||
For the year ended December 31, 2011
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
892.3
|
$
|
773.7
|
$
|
848.0
|
$
|
631.2
|
$
|
329.5
|
$
|
260.4
|
$
|
50.2
|
$
|
3,785.3
|
||||||||||||||||
Segment income (loss)
|
$
|
74.0
|
$
|
49.6
|
$
|
40.9
|
$
|
(37.9
|
)
|
$
|
35.5
|
$
|
6.9
|
$
|
(28.5
|
)
|
140.5
|
|||||||||||||||
Net interest expense
|
(73.3
|
)
|
||||||||||||||||||||||||||||||
Equity in income of unconsolidated affiliate
|
3.9
|
|||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
71.1
|
||||||||||||||||||||||||||||||
Depreciation and amortization
|
$
|
9.0
|
$
|
1.2
|
$
|
10.4
|
$
|
17.2
|
$
|
4.3
|
$
|
12.9
|
$
|
49.8
|
$
|
104.8
|
||||||||||||||||
For the year ended December 31, 2010
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
965.2
|
$
|
819.9
|
$
|
841.5
|
$
|
651.2
|
$
|
269.6
|
$
|
47.0
|
$
|
48.3
|
$
|
3,642.7
|
||||||||||||||||
Segment income (loss)
|
$
|
80.4
|
$
|
72.3
|
$
|
53.7
|
$
|
(45.5
|
)
|
$
|
25.8
|
$
|
6.7
|
$
|
(48.5
|
)
|
144.9
|
|||||||||||||||
Net interest expense
|
(58.9
|
)
|
||||||||||||||||||||||||||||||
Equity in loss of unconsolidated affiliate
|
(0.9
|
)
|
||||||||||||||||||||||||||||||
Income before provision for income taxes
|
$
|
85.1
|
||||||||||||||||||||||||||||||
Depreciation and amortization
|
$
|
17.9
|
$
|
1.2
|
$
|
18.6
|
$
|
17.4
|
$
|
1.2
|
$
|
1.3
|
$
|
56.3
|
$
|
113.9
|
||||||||||||||||
Total Assets
|
||||||||||||||||||||||||||||||||
December 31, 2012
|
$
|
1,061.8
|
$
|
683.7
|
$
|
1,112.2
|
$
|
288.0
|
$
|
254.9
|
$
|
377.1
|
$
|
(1,182.2
|
)
|
$
|
2,595.5
|
|||||||||||||||
December 31, 2011
|
1,034.7
|
638.6
|
1,001.3
|
254.6
|
238.7
|
396.4
|
(849.0
|
)
|
2,715.3
|
|||||||||||||||||||||||
December 31, 2010
|
771.5
|
661.6
|
849.5
|
217.9
|
173.1
|
13.6
|
(354.8
|
)
|
2,332.4
|
On or for the Year Ended December 31,
|
2012
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Revenues from external customers:
|
||||||||||||
United States
|
$
|
3,018.0
|
$
|
3,119.2
|
$
|
3,245.2
|
||||||
United Kingdom
|
343.7
|
216.1
|
11.9
|
|||||||||
Canada
|
146.1
|
152.2
|
136.5
|
|||||||||
Other foreign countries
|
290.3
|
297.8
|
249.1
|
|||||||||
|
$
|
3,798.1
|
$
|
3,785.3
|
$
|
3,642.7
|
||||||
Long-lived assets:
|
||||||||||||
United States
|
$
|
1,072.0
|
$
|
1,100.2
|
$
|
1,188.6
|
||||||
United Kingdom
|
290.4
|
335.4
|
-
|
|||||||||
Other foreign countries
|
136.4
|
124.2
|
52.7
|
|||||||||
|
$
|
1,498.8
|
$
|
1,559.8
|
$
|
1,241.3
|
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
82.6
|
$
|
67.0
|
$
|
-
|
$
|
149.6
|
$
|
195.8
|
$
|
43.0
|
$
|
-
|
$
|
238.8
|
||||||||||||||||
Accounts receivable
|
191.0
|
190.0
|
-
|
381.0
|
182.9
|
156.7
|
-
|
339.6
|
||||||||||||||||||||||||
Inventories
|
261.7
|
226.2
|
(1.2
|
)
|
486.7
|
270.5
|
220.9
|
(0.3
|
)
|
491.1
|
||||||||||||||||||||||
Prepaid and refundable income taxes
|
18.6
|
0.3
|
(13.4
|
)
|
5.5
|
5.3
|
4.9
|
1.7
|
11.9
|
|||||||||||||||||||||||
Deferred taxes
|
17.9
|
15.3
|
-
|
33.2
|
13.2
|
13.2
|
-
|
26.4
|
||||||||||||||||||||||||
Prepaid expenses and other current assets
|
23.6
|
18.2
|
(1.1
|
)
|
40.7
|
21.5
|
26.2
|
-
|
47.7
|
|||||||||||||||||||||||
Total current assets
|
595.4
|
517.0
|
(15.7
|
)
|
1,096.7
|
689.2
|
464.9
|
1.4
|
1,155.5
|
|||||||||||||||||||||||
Property, plant and equipment
|
64.6
|
213.5
|
-
|
278.1
|
64.9
|
206.5
|
-
|
271.4
|
||||||||||||||||||||||||
Due from affiliates
|
-
|
319.0
|
(319.0
|
)
|
-
|
-
|
1,604.4
|
(1,604.4
|
)
|
-
|
||||||||||||||||||||||
Goodwill
|
49.9
|
165.4
|
-
|
215.3
|
46.7
|
208.6
|
-
|
255.3
|
||||||||||||||||||||||||
Other intangibles
|
6.0
|
863.7
|
-
|
869.7
|
6.9
|
890.5
|
-
|
897.4
|
||||||||||||||||||||||||
Deferred taxes
|
93.0
|
-
|
(93.0
|
)
|
-
|
80.6
|
-
|
(80.6
|
)
|
-
|
||||||||||||||||||||||
Investments in subsidiaries
|
1,745.6
|
38.9
|
(1,745.6
|
)
|
38.9
|
3,047.9
|
35.6
|
(3,047.9
|
)
|
35.6
|
||||||||||||||||||||||
Other assets
|
67.7
|
29.1
|
-
|
96.8
|
79.3
|
20.8
|
-
|
100.1
|
||||||||||||||||||||||||
Total assets
|
$
|
2,622.2
|
$
|
2,146.6
|
$
|
(2,173.3
|
)
|
$
|
2,595.5
|
$
|
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
|
$
|
-
|
$
|
2.2
|
$
|
-
|
$
|
2.2
|
$
|
-
|
$
|
2.0
|
$
|
-
|
$
|
2.0
|
||||||||||||||||
Current portion of acquisition consideration payable
|
30.3
|
-
|
-
|
30.3
|
192.7
|
1.4
|
-
|
194.1
|
||||||||||||||||||||||||
Accounts payable
|
156.2
|
101.3
|
-
|
257.5
|
139.7
|
96.5
|
-
|
236.2
|
||||||||||||||||||||||||
Income taxes payable
|
22.1
|
12.9
|
(33.6
|
)
|
1.4
|
11.2
|
8.3
|
(18.1
|
)
|
1.4
|
||||||||||||||||||||||
Accrued expenses and other current liabilities
|
79.1
|
82.8
|
(1.1
|
)
|
160.8
|
79.0
|
67.3
|
-
|
146.3
|
|||||||||||||||||||||||
Total current liabilities
|
287.7
|
199.2
|
(34.7
|
)
|
452.2
|
422.6
|
175.5
|
(18.1
|
)
|
580.0
|
||||||||||||||||||||||
Long-term debt
|
934.4
|
-
|
-
|
934.4
|
831.3
|
0.1
|
-
|
831.4
|
||||||||||||||||||||||||
Obligations under capital leases
|
-
|
21.3
|
-
|
21.3
|
-
|
23.3
|
-
|
23.3
|
||||||||||||||||||||||||
Income taxes payable
|
0.5
|
-
|
-
|
0.5
|
6.7
|
-
|
-
|
6.7
|
||||||||||||||||||||||||
Deferred taxes
|
-
|
155.7
|
(99.0
|
)
|
56.7
|
-
|
160.0
|
(86.6
|
)
|
73.4
|
||||||||||||||||||||||
Acquisition consideration payable
|
6.0
|
-
|
-
|
6.0
|
17.7
|
-
|
-
|
17.7
|
||||||||||||||||||||||||
Due to affiliates
|
319.0
|
-
|
(319.0
|
)
|
-
|
1,604.4
|
-
|
(1,604.4
|
)
|
-
|
||||||||||||||||||||||
Other
|
93.1
|
25.0
|
-
|
118.1
|
67.7
|
25.7
|
-
|
93.4
|
||||||||||||||||||||||||
Total liabilities
|
1,640.7
|
401.2
|
(452.7
|
)
|
1,589.2
|
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
|
521.6
|
948.0
|
(948.0
|
)
|
521.6
|
522.6
|
2,352.4
|
(2,352.4
|
)
|
522.6
|
||||||||||||||||||||||
Retained earnings
|
477.8
|
793.1
|
(769.8
|
)
|
501.1
|
572.1
|
704.3
|
(680.2
|
)
|
596.2
|
||||||||||||||||||||||
Accumulated other comprehensive loss
|
(17.9
|
)
|
2.8
|
(2.8
|
)
|
(17.9
|
)
|
(29.6
|
)
|
(10.2
|
)
|
10.2
|
(29.6
|
)
|
||||||||||||||||||
Total Jones stockholders' equity
|
981.5
|
1,743.9
|
(1,720.6
|
)
|
1,004.8
|
1,065.1
|
3,046.5
|
(3,022.4
|
)
|
1,089.2
|
||||||||||||||||||||||
Noncontrolling interests
|
-
|
0.9
|
-
|
0.9
|
-
|
0.2
|
-
|
0.2
|
||||||||||||||||||||||||
Total equity
|
981.5
|
1,744.8
|
(1,720.6
|
)
|
1,005.7
|
1,065.1
|
3,046.7
|
(3,022.4
|
)
|
1,089.4
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
2,622.2
|
$
|
2,146.6
|
$
|
(2,173.3
|
)
|
$
|
2,595.5
|
$
|
4,015.5
|
$
|
3,431.3
|
$
|
(4,731.5
|
)
|
$
|
2,715.3
|
|
Year Ended December 31, 2012
|
Year Ended December 31, 2011
|
Year Ended December 31, 2010
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||||||||||||||
Net sales
|
$
|
2,258.4
|
$
|
1,520.4
|
$
|
(28.2
|
)
|
$
|
3,750.6
|
$
|
2,370.0
|
$
|
1,387.0
|
$
|
(23.0
|
)
|
$
|
3,734.0
|
$
|
2,512.5
|
$
|
1,095.2
|
$
|
(14.2
|
)
|
$
|
3,593.5
|
|||||||||||||||||||||
Licensing income
|
0.2
|
46.0
|
-
|
46.2
|
0.1
|
50.1
|
-
|
50.2
|
0.1
|
48.2
|
-
|
48.3
|
||||||||||||||||||||||||||||||||||||
Other revenues
|
1.3
|
-
|
-
|
1.3
|
1.1
|
-
|
-
|
1.1
|
0.9
|
-
|
-
|
0.9
|
||||||||||||||||||||||||||||||||||||
Total revenues
|
2,259.9
|
1,566.4
|
(28.2
|
)
|
3,798.1
|
2,371.2
|
1,437.1
|
(23.0
|
)
|
3,785.3
|
2,513.5
|
1,143.4
|
(14.2
|
)
|
3,642.7
|
|||||||||||||||||||||||||||||||||
Cost of goods sold
|
1,517.7
|
928.1
|
(18.4
|
)
|
2,427.4
|
1,568.3
|
882.7
|
(10.9
|
)
|
2,440.1
|
1,643.9
|
746.3
|
(3.0
|
)
|
2,387.2
|
|||||||||||||||||||||||||||||||||
Gross profit
|
742.2
|
638.3
|
(9.8
|
)
|
1,370.7
|
802.9
|
554.4
|
(12.1
|
)
|
1,345.2
|
869.6
|
397.1
|
(11.2
|
)
|
1,255.5
|
|||||||||||||||||||||||||||||||||
Selling, general and administrative expenses
|
854.8
|
381.0
|
(8.9
|
)
|
1,226.9
|
893.5
|
291.5
|
(11.8
|
)
|
1,173.2
|
950.9
|
133.2
|
(11.1
|
)
|
1,073.0
|
|||||||||||||||||||||||||||||||||
Trademark impairments
|
-
|
21.5
|
-
|
21.5
|
-
|
31.5
|
-
|
31.5
|
-
|
37.6
|
-
|
37.6
|
||||||||||||||||||||||||||||||||||||
Goodwill impairment
|
-
|
47.6
|
-
|
47.6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
Operating (loss) income
|
(112.6
|
)
|
188.2
|
(0.9
|
)
|
74.7
|
(90.6
|
)
|
231.4
|
(0.3
|
)
|
140.5
|
(81.3
|
)
|
226.3
|
(0.1
|
)
|
144.9
|
||||||||||||||||||||||||||||||
Net interest expense (income) and financing costs
|
143.1
|
2.0
|
-
|
145.1
|
76.7
|
(3.4
|
)
|
-
|
73.3
|
64.4
|
(5.5
|
)
|
-
|
58.9
|
||||||||||||||||||||||||||||||||||
Equity in income (loss) of unconsolidated affiliate
|
-
|
2.5
|
-
|
2.5
|
-
|
3.9
|
-
|
3.9
|
-
|
(0.9
|
)
|
-
|
(0.9
|
)
|
||||||||||||||||||||||||||||||||||
(Loss) income before (benefit) provision for income taxes
|
(255.7
|
)
|
188.7
|
(0.9
|
)
|
(67.9
|
)
|
(167.3
|
)
|
238.7
|
(0.3
|
)
|
71.1
|
(145.7
|
)
|
230.9
|
(0.1
|
)
|
85.1
|
|||||||||||||||||||||||||||||
(Benefit) provision for income taxes
|
(77.5
|
)
|
65.1
|
(0.5
|
)
|
(12.9
|
)
|
(36.1
|
)
|
74.2
|
(18.5
|
)
|
19.6
|
(42.9
|
)
|
75.0
|
(1.4
|
)
|
30.7
|
|||||||||||||||||||||||||||||
(Loss) income before earnings of subsidiaries
|
(178.2
|
)
|
123.6
|
(0.4
|
)
|
(55.0
|
)
|
(131.2
|
)
|
164.5
|
18.2
|
51.5
|
(102.8
|
)
|
155.9
|
1.3
|
54.4
|
|||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries
|
122.9
|
-
|
(122.9
|
)
|
-
|
163.7
|
-
|
(163.7
|
)
|
-
|
155.9
|
-
|
(155.9
|
)
|
-
|
|||||||||||||||||||||||||||||||||
Net (loss) income
|
(55.3
|
)
|
123.6
|
(123.3
|
)
|
(55.0
|
)
|
32.5
|
164.5
|
(145.5
|
)
|
51.5
|
53.1
|
155.9
|
(154.6
|
)
|
54.4
|
|||||||||||||||||||||||||||||||
Less: income attributable to noncontrolling interests
|
-
|
1.1
|
-
|
1.1
|
-
|
0.8
|
-
|
0.8
|
-
|
0.6
|
-
|
0.6
|
||||||||||||||||||||||||||||||||||||
(Loss) income attributable to Jones
|
$
|
(55.3
|
)
|
$
|
122.5
|
$
|
(123.3
|
)
|
$
|
(56.1
|
)
|
$
|
32.5
|
$
|
163.7
|
$
|
(145.5
|
)
|
$
|
50.7
|
$
|
53.1
|
$
|
155.3
|
$
|
(154.6
|
)
|
$
|
53.8
|
|
Year Ended December 31, 2012
|
Year Ended December 31, 2011
|
Year Ended December 31, 2010
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||||||||||||||
Net (loss) income
|
$
|
(55.3
|
)
|
$
|
123.6
|
$
|
(123.3
|
)
|
$
|
(55.0
|
)
|
$
|
32.5
|
$
|
164.5
|
$
|
(145.5
|
)
|
$
|
51.5
|
$
|
53.1
|
$
|
155.9
|
$
|
(154.6
|
)
|
$
|
54.4
|
|||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Pension and postretirement liability adjustments, net of tax
|
(0.1
|
)
|
-
|
-
|
(0.1
|
)
|
(7.1
|
)
|
(1.2
|
)
|
1.2
|
(7.1
|
)
|
(1.7
|
)
|
-
|
-
|
(1.7
|
)
|
|||||||||||||||||||||||||||||
Change in fair value of cash flow hedges, net of tax
|
-
|
-
|
-
|
-
|
(0.2
|
)
|
(0.2
|
)
|
0.2
|
(0.2
|
)
|
(0.3
|
)
|
(0.3
|
)
|
0.3
|
(0.3
|
)
|
||||||||||||||||||||||||||||||
Reclassification adjustment for hedge gains and losses included in net (loss) income, net of tax
|
0.1
|
0.1
|
(0.1
|
)
|
0.1
|
0.5
|
0.5
|
(0.5
|
)
|
0.5
|
0.1
|
0.1
|
(0.1
|
)
|
0.1
|
|||||||||||||||||||||||||||||||||
Foreign currency translation adjustments
|
11.7
|
11.4
|
(11.4
|
)
|
11.7
|
(14.4
|
)
|
(14.4
|
)
|
14.4
|
(14.4
|
)
|
1.1
|
1.1
|
(1.1
|
)
|
1.1
|
|||||||||||||||||||||||||||||||
Total other comprehensive income (loss)
|
11.7
|
11.5
|
(11.5
|
)
|
11.7
|
(21.2
|
)
|
(15.3
|
)
|
15.3
|
(21.2
|
)
|
(0.8
|
)
|
0.9
|
(0.9
|
)
|
(0.8
|
)
|
|||||||||||||||||||||||||||||
Comprehensive (loss) income
|
$
|
(43.6
|
)
|
$
|
135.1
|
$
|
(134.8
|
)
|
$
|
(43.3
|
)
|
$
|
11.3
|
$
|
149.2
|
$
|
(130.2
|
)
|
$
|
30.3
|
$
|
52.3
|
$
|
156.8
|
$
|
(155.5
|
)
|
$
|
53.6
|
|
Year Ended December 31, 2012
|
Year Ended December 31, 2011
|
Year Ended December 31, 2010
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
Issuers
|
Others
|
Elim-
inations
|
Cons-
olidated
|
||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities
|
$
|
19.2
|
$
|
109.2
|
$
|
(15.7
|
)
|
$
|
112.7
|
$
|
192.7
|
$
|
97.8
|
$
|
(18.8
|
)
|
$
|
271.7
|
$
|
66.6
|
$
|
90.6
|
$
|
(15.9
|
)
|
$
|
141.3
|
|||||||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of KG Group Holdings, net of cash acquired
|
-
|
-
|
-
|
-
|
(143.1
|
)
|
-
|
-
|
(143.1
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Acquisition of Stuart Weitzman Holdings, net of cash acquired
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(159.3
|
)
|
-
|
-
|
(159.3
|
)
|
||||||||||||||||||||||||||||||||||
Acquisition of Moda Nicola International
|
-
|
-
|
-
|
-
|
(2.5
|
)
|
-
|
-
|
(2.5
|
)
|
(14.4
|
)
|
-
|
-
|
(14.4
|
)
|
||||||||||||||||||||||||||||||||
Acquisition of Brian Atwood, net of cash acquired
|
(5.0
|
)
|
0.6
|
-
|
(4.4
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Contingent consideration paid related to investment in GRI Group Limited
|
-
|
(3.5
|
)
|
-
|
(3.5
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Capital expenditures
|
(19.8
|
)
|
(56.7
|
)
|
- |
(76.5
|
)
|
(37.3
|
)
|
(60.7
|
)
|
-
|
(98.0
|
)
|
(18.6
|
)
|
(22.4
|
)
|
-
|
(41.0
|
)
|
|||||||||||||||||||||||||||
Proceeds from sale of trademark
|
-
|
5.0
|
-
|
5.0
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
Other items, net
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
-
|
0.1
|
-
|
0.1
|
-
|
0.4
|
-
|
0.4
|
||||||||||||||||||||||||||||||||||
Net cash used in investing activities
|
(24.8
|
)
|
(54.7
|
)
|
-
|
(79.5
|
)
|
(182.9
|
)
|
(60.6
|
)
|
-
|
(243.5
|
)
|
(192.3
|
)
|
(22.0
|
)
|
-
|
(214.3
|
)
|
|||||||||||||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of 6.875% Senior Notes due 2019
|
103.5
|
-
|
-
|
103.5
|
300.0
|
-
|
-
|
300.0
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
Debt issuance costs
|
(2.6
|
)
|
-
|
-
|
(2.6
|
)
|
(6.6
|
)
|
-
|
-
|
(6.6
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
Costs related to secured revolving credit agreement
|
(0.3
|
)
|
-
|
-
|
(0.3
|
)
|
(3.3
|
)
|
-
|
-
|
(3.3
|
)
|
(7.3
|
)
|
-
|
-
|
(7.3
|
)
|
||||||||||||||||||||||||||||||
Repayment of acquired debt of KG Group Holdings
|
-
|
-
|
-
|
-
|
(174.1
|
)
|
-
|
-
|
(174.1
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Repayment of long-term debt
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
-
|
(0.1
|
)
|
-
|
(0.2
|
)
|
-
|
(0.2
|
)
|
||||||||||||||||||||||||||||||
Cash distributions to former owners of Stuart Weitzman Holdings
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(19.0
|
)
|
-
|
(19.0
|
)
|
||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
(1.0
|
)
|
-
|
(1.0
|
)
|
-
|
(0.7
|
)
|
-
|
(0.7
|
)
|
-
|
(0.6
|
)
|
-
|
(0.6
|
)
|
||||||||||||||||||||||||||||||
Payments of acquisition consideration payable
|
(151.0
|
)
|
(12.9
|
)
|
-
|
(163.9
|
)
|
-
|
(10.1
|
)
|
-
|
(10.1
|
)
|
-
|
(4.3
|
)
|
-
|
(4.3
|
)
|
|||||||||||||||||||||||||||||
Repurchases of common stock
|
(44.0
|
)
|
-
|
-
|
(44.0
|
)
|
(78.0
|
)
|
-
|
-
|
(78.0
|
)
|
(10.7
|
)
|
-
|
-
|
(10.7
|
)
|
||||||||||||||||||||||||||||||
Proceeds from exercise of employee stock options
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.6
|
-
|
-
|
0.6
|
||||||||||||||||||||||||||||||||||||
Dividends paid
|
(15.5
|
)
|
(15.7
|
)
|
15.7
|
(15.5
|
)
|
(16.6
|
)
|
(18.8
|
)
|
18.8
|
(16.6
|
)
|
(17.2
|
)
|
(15.9
|
)
|
15.9
|
(17.2
|
)
|
|||||||||||||||||||||||||||
Principal payments on capital leases
|
-
|
(1.9
|
)
|
-
|
(1.9
|
)
|
-
|
(1.7
|
)
|
-
|
(1.7
|
)
|
-
|
(2.6
|
)
|
-
|
(2.6
|
)
|
||||||||||||||||||||||||||||||
Excess tax benefits from share-based payment arrangements
|
2.3
|
-
|
-
|
2.3
|
1.6
|
-
|
-
|
1.6
|
1.2
|
-
|
-
|
1.2
|
||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities
|
(107.6
|
)
|
(31.6
|
)
|
15.7
|
(123.5
|
)
|
23.0
|
(31.4
|
)
|
18.8
|
10.4
|
(33.4
|
)
|
(42.6
|
)
|
15.9
|
(60.1
|
)
|
|||||||||||||||||||||||||||||
Effect of exchange rates on cash
|
-
|
1.1
|
-
|
1.1
|
-
|
(0.6
|
)
|
-
|
(0.6
|
)
|
-
|
0.5
|
-
|
0.5
|
||||||||||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents
|
(113.2
|
)
|
24.0
|
- |
(89.2
|
)
|
32.8
|
5.2
|
-
|
38.0
|
(159.1
|
)
|
26.5
|
-
|
(132.6
|
)
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning
|
195.8
|
43.0
|
-
|
238.8
|
163.0
|
37.8
|
-
|
200.8
|
322.1
|
11.3
|
-
|
333.4
|
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, ending
|
$
|
82.6
|
$
|
67.0
|
$
|
-
|
$
|
149.6
|
$
|
195.8
|
$
|
43.0
|
$
|
-
|
$
|
238.8
|
$
|
163.0
|
$
|
37.8
|
$
|
-
|
$
|
200.8
|
(In millions except per share data)
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||||||||||
2012
|
||||||||||||||||
Net sales
|
$
|
923.4
|
$
|
844.3
|
$
|
1,024.6
|
$
|
958.3
|
||||||||
Total revenues
|
936.0
|
854.8
|
1,035.4
|
971.9
|
||||||||||||
Gross profit
|
343.5
|
326.2
|
364.6
|
336.5
|
||||||||||||
Operating income (loss)(1)
|
40.2
|
21.7
|
62.7
|
(49.9
|
)
|
|||||||||||
Net (loss) income
|
(1.0
|
)
|
8.4
|
17.8
|
(80.1
|
)
|
||||||||||
Basic (loss) earnings per share
|
$
|
(0.01
|
)
|
$
|
0.11
|
$
|
0.23
|
$
|
(1.06
|
)
|
||||||
Diluted (loss) earnings per share
|
(0.01
|
)
|
0.10
|
0.22
|
(1.06
|
)
|
||||||||||
Dividends declared per share
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
||||||||
2011
|
||||||||||||||||
Net sales
|
$
|
949.0
|
$
|
876.7
|
$
|
1,030.1
|
$
|
878.1
|
||||||||
Total revenues
|
961.3
|
887.4
|
1,043.0
|
893.6
|
||||||||||||
Gross profit
|
330.7
|
323.1
|
371.9
|
319.6
|
||||||||||||
Operating income (loss)(2)
|
61.2
|
44.9
|
60.4
|
(25.9
|
)
|
|||||||||||
Net income (loss)
|
25.9
|
5.4
|
41.2
|
(20.9
|
)
|
|||||||||||
Basic earnings (loss) per share
|
$
|
0.30
|
$
|
0.06
|
$
|
0.50
|
$
|
(0.27
|
)
|
|||||||
Diluted earnings (loss) per share
|
0.30
|
0.06
|
0.49
|
(0.27
|
)
|
|||||||||||
Dividends declared per share
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
(1) | Includes trademark impairments of $21.5 million and goodwill impairment of $47.6 million in the fourth fiscal quarter of 2012. |
(2) | Includes trademark impairments of $31.5 million in the fourth fiscal quarter of 2011. |
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
Weighted-average exercise price of outstanding options, warrants and rights
|
Number of securities remaining available for future issuance under equity compensation plans
|
Equity compensation plans approved by security holders
|
—
|
—
|
2,710,685
|
Equity compensation plans not approved by security holders
|
—
|
—
|
—
|
Total
|
—
|
—
|
2,710,685
|
1. | Financial Statements. |
2. | The schedule and report of independent registered public accounting firm thereon, listed in the Index to Financial Statement Schedules attached hereto. |
February 22, 2013
|
THE JONES GROUP INC.
(Registrant)
By: /s/ Wesley R. Card
Wesley R. Card
Chief Executive Officer
|
Signature
|
Title
|
Date
|
/s/ Wesley R. Card
Wesley R. Card
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
February 22, 2013
|
/s/ John T. McClain
John T. McClain
|
Chief Financial Officer
(Principal Financial Officer)
|
February 22, 2013
|
/s/ Christopher R. Cade
Christopher R. Cade
|
Executive Vice President, Chief Accounting
Officer and Controller
(Principal Accounting Officer)
|
February 22, 2013
|
/s/ Sidney Kimmel
Sidney Kimmel
|
Director
|
February 22, 2013
|
/s/ Matthew H. Kamens
Matthew H. Kamens
|
Director
|
February 22, 2013
|
/s/ Gerald C. Crotty
Gerald C. Crotty
|
Director
|
February 22, 2013
|
/s/ Lowell W. Robinson
Lowell W. Robinson
|
Director
|
February 22, 2013
|
/s/Margaret H. Georgiadis
Margaret H. Georgiadis
|
Director
|
February 22, 2013
|
/s/ Robert L. Mettler
Robert L. Mettler
|
Director
|
February 22, 2013
|
/s/ John D. Demsey
John D. Demsey
|
Director
|
February 22, 2013
|
/s/ Jeffrey D. Nuechterlein
Jeffrey D. Nuechterlein
|
Director
|
February 22, 2013
|
/s/ Ann Marie C. Wilkins
Ann Marie C. Wilkins
|
Director
|
February 22, 2013
|
Exhibit No.
|
Description of Exhibit1
|
2.1
|
Master Purchase Agreement, dated as of May 5, 2010, by and among, STEPAHEAD, LLC, JAG Footwear, Accessories and Retail Corporation, Jones Apparel Group, Inc., Stuart Weitzman Holdings, LLC, and Mr. Stuart Weitzman (incorporated by reference to Exhibit 2.1 of our Current Report on Form 8-K dated May 5, 2010).
|
2.2
|
Common Unit Purchase Agreement, dated as of May 5, 2010, by and among, IPC/SW, LLC, JAG Footwear, Accessories and Retail Corporation and Jones Apparel Group, Inc. (incorporated by reference to Exhibit 2.2 of our Current Report on Form 8-K dated May 5, 2010).
|
2.3
|
Share Sale and Purchase Agreement dated June 2, 2011 among Jones Apparel Group Holdings, Inc., Graphite Capital Management LLP, Carta Capital Investments II S. àr.l., Harrods (UK) Limited and certain selling shareholders named therein (incorporated by reference to Exhibit 2.1 of our Current Report on Form 8-K dated June 2, 2011).
|
2.4
|
Management Loan Note Instrument of Jones Apparel Group Holdings, Inc. dated June 2, 2011 (incorporated by reference to Exhibit 2.2 of our Current Report on Form 8-K dated June 2, 2011).
|
3.1
|
Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 of our Quarterly Report on Form 10-Q for the nine months ended October 2, 2010).
|
3.2
|
Amended and Restated By-Laws (incorporated by reference to Exhibit 3.1 of our Quarterly Report on Form 10-Q for the three months ended March 31, 2012.
|
4.1
|
Form of Certificate evidencing shares of common stock of The Jones Group Inc. (incorporated by reference to Exhibit 4.1 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).
|
4.2
|
Exchange and Note Registration Rights Agreement dated June 15, 1999, among Jones Apparel Group, Inc., Bear, Stearns & Co. Inc., Chase Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith Barney Inc., BancBoston Robertson Stephens Inc., Banc of America Securities LLC, ING Baring Furman Selz LLC, Lazard Freres & Co. LLC, Tucker Anthony Cleary Gull, Brean Murray & Co., Inc. and The Buckingham Research Group Incorporated (incorporated by reference to Exhibit 4.5 of our Quarterly Report on Form 10-Q for the six months ended July 4, 1999).
|
4.3
|
Indenture dated as of November 22, 2004, among Jones Apparel Group, Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., Nine West Footwear Corporation and Jones Retail Corporation, as Issuers and SunTrust Bank, as Trustee, including Form of 4.250% Senior Notes due 2009, Form of 5.125% Senior Notes due 2014 and Form of 6.125% Senior Notes due 2034 (incorporated by reference to Exhibit 4.14 of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2004).
|
Exhibit No.
|
Description of Exhibit1
|
4.4
|
Form of Exchange and Note Registration Rights Agreement dated November 22, 2004 among Jones Apparel Group, Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., Nine West Footwear Corporation and Jones Retail Corporation, and Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as Representatives of the Several Initial Purchasers listed in Schedule I thereto, with respect to 4.250% Senior Notes due 2009, 5.125% Senior Notes due 2014 and 6.125% Senior Notes due 2034 (incorporated by reference to Exhibit 4.15 of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2004).
|
4.5
|
First Supplemental Indenture dated as of December 31, 2006, by and among Jones Apparel Group, Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., Nine West Footwear Corporation, Jones Retail Corporation, Kasper, Ltd., as Issuers, and U.S. Bank National Association (as successor in interest to SunTrust Bank), as Trustee, relating to the 4.250% Senior Notes Due 2009, 5.125% Senior Notes due 2014 and 6.125% Senior Notes due 2034 (incorporated by reference to Exhibit 4.7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2006).
|
4.6
|
Second Supplemental Indenture dated as of April 15, 2009 between Jones Apparel Group, Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., Nine West Footwear Corporation and Jones Retail Corporation, as Issuers, and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated April 15, 2009).
|
4.7
|
Indenture dated as of March 7, 2011, among The Jones Group Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., JAG Footwear, Accessories and Retail Corporation and U.S. Bank National Association, as trustee, relating to the Issuers' 6.875% Senior Notes due 2019 (incorporated by reference to Exhibit 4.1 of our Current Report on Form 8-K dated March 7, 2011).
|
4.8
|
Underwriting Agreement dated as of September 20, 2012, among The Jones Group Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc. and JAG Footwear, Accessories and Retail Corporation (collectively, the "Issuers") and Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as representatives for the several underwriters (incorporated by reference to Exhibit 1.1 of our Current Report on Form 8-K dated September 25, 2012).
|
10.1
|
1999 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2005).†
|
10.2
|
Form of Agreement Evidencing Stock Option Awards Under the 1999 Stock Incentive Plan (incorporated by reference to Exhibit 10.4 of our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2004).†
|
10.3
|
Form of Agreement Evidencing Restricted Stock Awards Under the 1999 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of our Quarterly Report on Form 10-Q for the three months ended April 2, 2005).†
|
10.4
|
Amended and Restated Employment Agreement dated March 11, 2002, between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.1 of our Quarterly Report on Form 10-Q for the three months ended April 6, 2002).†
|
10.5
|
Amended and Restated Employment Agreement dated April 4, 2002, between Jones Apparel Group, Inc. and Ira M. Dansky (incorporated by reference to Exhibit 10.2 of our Quarterly Report on Form 10-Q for the three months ended April 6, 2002).†
|
10.6
|
Buying Agency Agreement dated August 31, 2001, between Nine West Group Inc. and Bentley HSTE Far East Services Limited (incorporated by reference to Exhibit 10.2 of our Quarterly Report on Form 10-Q for the nine months ended October 6, 2001).
|
10.7
|
Buying Agency Agreement dated November 30, 2001, between Nine West Group Inc. and Bentley HSTE Far East Services, Limited (incorporated by reference to Exhibit 10.22 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2001).
|
10.8
|
Amendment dated February 28, 2003 to the Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.22 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2002).†
|
Exhibit No.
|
Description of Exhibit1
|
10.9
|
Amendment dated February 28, 2003 to the Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Ira M. Dansky (incorporated by reference to Exhibit 10.24 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2002).†
|
10.10
|
Amendment No. 2 dated March 8, 2006 to Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated March 8, 2006).†
|
10.11
|
The Jones Group Inc. Deferred Compensation Plan for Outside Directors, as amended and restated effective as of January 1, 2005 (amended to reflect corporate name change only) (incorporated by reference to Exhibit 10.14 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
10.12
|
Form of Agreement Evidencing Restricted Stock Awards for Outside Directors Under the 1999 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of our Quarterly Report on Form 10-Q for the three months ended April 2, 2005).†
|
10.13
|
The Jones Group Inc. Deferred Compensation Plan, as amended and restated effective January 1, 2010 (amended to reflect corporate name change only) (incorporated by reference to Exhibit 10.16 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
10.14
|
Amendment No. 3 dated April 17, 2007 to Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated April 17, 2007).†
|
10.15*
|
Summary Sheet of Compensation of Non-Management Directors of The Jones Group Inc.†
|
10.16
|
The Jones Group Inc. 2007 Executive Annual Cash Incentive Plan, as amended (amended to reflect corporate name change only) (incorporated by reference to Exhibit 10.20 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
10.17
|
Amendment No. 4 dated July 12, 2007 to Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated July 11, 2007).†
|
10.18
|
Employment Agreement dated as of July 11, 2007 between Jones Apparel Group, Inc. and John T. McClain (incorporated by reference to Exhibit 10.2 of our Current Report on Form 8-K dated July 11, 2007).†
|
10.19
|
Amendment No. 2 dated December 10, 2007 to Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Ira M. Dansky (incorporated by reference to Exhibit 10.39 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2007).†
|
10.20
|
Amendment No. 1, dated as of June 2, 2009, to Buying Agency Agreement between Nine West Footwear Corporation and Bentley HSTE Far East Services Limited (incorporated by reference to Exhibit 10.1 of our Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2009).
|
10.21
|
The Jones Group Inc. 2009 Long Term Incentive Plan, as amended (amended to reflect corporate name change only) (incorporated by reference to Exhibit 10.32 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
10.22
|
Form of Section 409A Amendment to Employment Agreement (incorporated by reference to Exhibit 10.43 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009).†
|
10.23
|
Amendment No. 2 dated December 8, 2009 to Employment Agreement between Jones Apparel Group, Inc. and John T. McClain dated as of July 11, 2007 (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated December 8, 2009).†
|
10.24
|
Form of Agreement Evidencing Restricted Stock Awards Under the 2009 Long Term Incentive Plan (incorporated by reference to Exhibit 10.35 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
Exhibit No.
|
Description of Exhibit1
|
10.25
|
Form of Agreement Evidencing Restricted Stock Awards for Outside Directors Under the 2009 Long Term Incentive Plan (incorporated by reference to Exhibit 10.36 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010).†
|
10.26
|
Employment Agreement dated as of January 31, 2010, between Jones Apparel Group, Inc. and Richard Dickson (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated January 31, 2010). †
|
10.27
|
Amendment No. 6 dated as of February 9, 2010 to the Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Wesley R. Card (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated February 9, 2010).†
|
10.28
|
Amendment No. 4 dated as of February 9, 2010 to the Amended and Restated Employment Agreement between Jones Apparel Group, Inc. and Ira M. Dansky (incorporated by reference to Exhibit 10.2 of our Current Report on Form 8-K dated February 9, 2010).†
|
10.29
|
Amendment No. 1 to Employment Agreement dated as of February 8, 2011 between The Jones Group Inc. and Richard Dickson (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated February 8, 2011).†
|
10.30
|
Amendment No. 2 dated March 28, 2011 to Buying Agency Agreement between JAG Footwear, Accessories and Retail Corporation (as successor in interest to Nine West Footwear Corporation) and Bentley HSTE Far East Services Limited (incorporated by reference to Exhibit 10.1 of our Current Report on Form 10-Q for the fiscal quarter ended April 2, 2011).
|
10.31
|
Amended and Restated Credit Agreement and Other Loan Documents, dated as of April 28, 2011, by and among The Jones Group Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., JAG Footwear, Accessories and Retail Corporation, Jones Jewelry Group, Inc., Jones Investment Co. Inc., Jones Jeanswear Group, Inc. and Nine West Development Corporation, as U.S. Borrowers, Jones Apparel Group Canada, LP, as Canadian Borrower, the other Loan Parties party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian administrative agent, J.P. Morgan Europe Limited as European administrative agent and European collateral agent, JPMorgan Chase Bank, N.A. as U.S. collateral agent, Citibank, N.A., as syndication agent, and Bank of America, N.A., Wells Fargo Bank, National Association and SunTrust Bank, as documentation agents (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated April 28, 2011). |
10.32
|
Amendment No. 3 dated as of July 8, 2011 to the Buying Agency Agreement between JAG Footwear, Accessories and Retail Corporation and Bentley HSTE Far East Services Limited (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated July 8, 2011).
|
10.33
|
Amendment No. 1 to Amended and Restated Credit Agreement, dated as of July 12, 2011, by and among The Jones Group Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., JAG Footwear, Accessories and Retail Corporation, Jones Investment Co. Inc., Jones Jeanswear Group, Inc., Nine West Development Corporation and Jones Jewelry Group, Inc., as U.S. Borrowers, Jones Apparel Group Canada, LP, as Canadian Borrower, the other Loan Parties party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent for the lenders, JPMorgan Chase Bank, N.A., Toronto Branch, as administrative agent for the international lenders, and J.P. Morgan Europe Limited as administrative agent for the international lenders (incorporated by reference to Exhibit 10.1 of our Current Report on Form 10-Q for the fiscal quarter ended July 2, 2011).
|
10.34
|
Amendment No. 2 to Amended and Restated Credit Agreement, dated as of December 1, 2011, by and among The Jones Group Inc., Jones Apparel Group Holdings, Inc., Jones Apparel Group USA, Inc., JAG Footwear, Accessories and Retail Corporation, Jones Investment Co. Inc., Jones Jeanswear Group, Inc., Nine West Development Corporation and Jones Jewelry Group, Inc., as U.S. Borrowers, Jones Apparel Group Canada, LP, as Canadian Borrower, the other Loan Parties party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent for the lenders, JPMorgan Chase Bank, N.A., Toronto Branch, as administrative agent for the international lenders, and J.P. Morgan Europe Limited as administrative agent for the international lenders (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated December 1, 2011).
|
Exhibit No.
|
Description of Exhibit1
|
10.35
|
Employment Agreement dated December 5, 2007 between Jones Apparel Group, Inc. and Christopher R. Cade (incorporated by reference to Exhibit 10.43 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011).†
|
10.36
|
Amendment No. 1 dated July 18, 2008 to Employment Agreement between Jones Apparel Group, Inc. and Christopher R. Cade (incorporated by reference to Exhibit 10.44 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011).†
|
10.37
|
Amendment No. 2 dated October 4, 2010 to Employment Agreement between Jones Apparel Group, Inc. and Christopher R. Cade (incorporated by reference to Exhibit 10.45 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011).†
|
10.38
|
Amendment No. 3 dated May 17, 2012 to Employment Agreement between The Jones Group Inc. and John T. McClain dated as of July 11, 2007 (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated May 17, 2012).†
|
10.39
|
Amendment No. 2 to Employment Agreement dated as of February 21, 2013 between The Jones Group Inc. and Richard Dickson (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K dated February 21, 2013).†
|
10.40*
|
The Jones Group Inc. Severance Plan, as amended, and Summary Plan Description (modified to reflect change in officer's title).†
|
12*
|
Computation of Ratio of Earnings to Fixed Charges.
|
21*
|
List of Subsidiaries.
|
23*
|
Consent of BDO USA, LLP.
|
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
|
1
|
Exhibits filed with Forms 10-K, 10-Q, 8-K or Schedule 14A of The Jones Group Inc. were filed under SEC File No. 001-10746.
|
*
|
Filed herewith.
|
♦
|
Furnished herewith.
|
†
|
Management contract or compensatory plan or arrangement.
|
**
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections.
|
![]() |
Tel: 212-885-8000 Fax: 212-697-1299 www.bdo.com |
100 Park Ave New York, NY 10017 |
Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
The Jones Group Inc.
New York, New York
The audits referred to in our report dated February 22, 2013 relating to the consolidated financial statements of The Jones Group Inc., which is contained in Item 8 of this Form 10-K also included the audit of the financial statement schedule listed in the accompanying index. This financial statement schedule is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement schedule based on our audits.
In our opinion such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
New York, New York
February 22, 2013
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the International BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
|||||||||||||||||
|
Additions
|
||||||||||||||||||||
|
Balance at beginning of period
|
Charged against revenues or to costs and expenses
|
Charged to other accounts
|
Deductions
|
Balance at end of period
|
||||||||||||||||
Accounts receivable allowances
|
|
||||||||||||||||||||
Allowance for doubtful accounts
|
|
||||||||||||||||||||
For the year ended December 31:
|
|
||||||||||||||||||||
2010
|
$
|
3.2
|
$
|
(0.2
|
)
|
$
|
-
|
$
|
1.2
|
(1)
|
|
$
|
1.8
|
||||||||
2011
|
1.8
|
1.3
|
-
|
0.2
|
(1)
|
|
2.9
|
||||||||||||||
2012
|
2.9
|
0.3
|
-
|
0.4
|
(1)
|
|
2.8
|
||||||||||||||
Allowance for sales returns
|
|||||||||||||||||||||
For the year ended December 31:
|
|||||||||||||||||||||
2010
|
5.7
|
34.3
|
0.1
|
(2)
|
|
32.2
|
(3)
|
|
7.9
|
||||||||||||
2011
|
7.9
|
38.4
|
-
|
36.4
|
(3)
|
|
9.9
|
||||||||||||||
2012
|
9.9
|
40.1
|
-
|
41.2
|
(3)
|
|
8.8
|
||||||||||||||
Allowance for sales discounts
|
|||||||||||||||||||||
For the year ended December 31:
|
|||||||||||||||||||||
2010
|
6.2
|
72.8
|
-
|
71.9
|
(3)
|
|
7.1
|
||||||||||||||
2011
|
7.1
|
69.3
|
-
|
69.9
|
(3)
|
|
6.5
|
||||||||||||||
2012
|
6.5
|
59.0
|
-
|
59.5
|
(3)
|
|
6.0
|
||||||||||||||
Allowance for co-op advertising
|
|||||||||||||||||||||
For the year ended December 31:
|
|||||||||||||||||||||
2010
|
9.7
|
23.6
|
-
|
21.6
|
(3)
|
|
11.7
|
||||||||||||||
2011
|
11.7
|
22.3
|
-
|
25.0
|
(3)
|
|
9.0
|
||||||||||||||
2012
|
9.0
|
28.7
|
-
|
27.9
|
(3)
|
|
9.8
|
||||||||||||||
Deferred tax valuation allowance
|
|||||||||||||||||||||
For the year ended December 31:
|
|||||||||||||||||||||
2010
|
5.8
|
-
|
-
|
-
|
5.8
|
||||||||||||||||
2011
|
5.8
|
2.3
|
-
|
-
|
8.1
|
||||||||||||||||
2012
|
8.1
|
0.7
|
-
|
-
|
8.8
|
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 Annual Report of The Jones Group, Inc. on Form 10-K for the fiscal year ended December 31, 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 Annual Report on Form 10-K 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 The Jones 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 Annual Report of The Jones Group Inc. on Form 10-K for the fiscal year ended December 31, 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 Annual Report on Form 10-K 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..
EXHIBIT 10.15
THE JONES GROUP INC.
SCHEDULE OF NON-MANAGEMENT DIRECTORS' ANNUAL COMPENSATION
Effective as of February 12, 2013
ANNUAL RETAINER(1) | AMOUNT |
Service as a Director | $50,000 |
Service as Presiding Director | $25,000 |
Service as Audit Committee Chair | $20,000 |
Service as Compensation Committee Chair | $15,000 |
Service as Nominating / Corporate Governance Committee Chair | $15,000 |
FEES(2) | |
Attendance at Board of Directors Meeting | $2,000 per meeting |
Attendance at Committee Meeting | $2,000 per meeting |
RESTRICTED STOCK(3) | AMOUNT |
Annual Grant | Number of shares equal in value to $100,000 |
_________________
(1) For 2013, retainers are paid in January of each year, in advance for the calendar year. In the event that a non-management director joins the Board of Directors of The Jones Group Inc. or commences service on an additional Board Committee after January 1, 2013, the director is entitled to receive, promptly after joining the Board of Directors or such committee, a pro-rated retainer in advance for services for the remainder of the applicable calendar year. Commencing on January 1, 2014, retainers will be paid semiannually in January and July of each calendar year, in advance for each half year of service. In the event that a non-management director joins the Board of Directors of The Jones Group Inc. or commences service on an additional Board Committee after January 1 or July 1 of any calendar year, the director is entitled to receive, promptly after joining the Board of Directors or such committee, a pro-rated retainer in advance for services for the remainder of the applicable six-month period. | |
(2) Meeting fees are paid quarterly in arrears. | |
(3) Each non-management director receives an annual grant of the number of shares of restricted common stock of The Jones Group Inc. equal in value to $100,000, as described above, in January of each year, with new non-management directors receiving, upon commencement of service, an initial grant of the number of shares of restricted common stock equal in value to $150,000. The restricted stock awards have a value based on the fair market values of Jones common stock on the effective date of the grant and vest in equal installments over three years. |
EXHIBIT 10.40
THE JONES GROUP INC.
SEVERANCE PLAN AND
SUMMARY PLAN DESCRIPTION
Effective May 31, 2006
(Amended as of April 19, 2012)
PURPOSE OF THE PLAN |
The purpose of the The Jones Group Inc. Severance Plan ("Plan") is to provide severance benefits to eligible employees whose employment with The Jones Group Inc. (the "Company") and all U.S. domestic Subsidiaries and Affiliates of the Company is terminated involuntarily under the conditions described below.
Except as otherwise provided herein or by the Company in writing after the effective date hereof, this Plan (i) is the sole arrangement of the Company regarding Severance-type benefits to eligible employees and (ii) replaces and supersedes all prior plans, programs, understandings and arrangements providing Severance-type benefits to eligible employees.
Notwithstanding anything to the contrary in this Plan, if an employee is eligible for Severance-type benefits under an employment or other written agreement with the Employer providing for Severance-type benefits ("Alternative Benefits"), such employee shall remain and be eligible for those benefits; provided, that if the amount of Severance-type benefits to which an employee may be entitled under such agreement providing for Alternative Benefits would be greater in the aggregate than the benefits which the Employee would otherwise be eligible to receive under this Plan, then the employee shall not receive benefits under this Plan but instead shall be entitled to receive such Alternative Benefits.
This document contains the official text of the Plan.
DEFINITIONS |
Affiliate of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person.
Company means The Jones Group Inc.
Designated Termination Date means the date specified by an Employer as an employee's last day of active work.
Employer means the Company and all U.S. Subsidiaries and Affiliates of the Company (which shall include Stuart Weitzman Holdings, LLC and its U.S. Subsidiaries and Affiliates effective January 1, 2013).
Person means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization or other entity.
1
Plan Administrator means the Company or such other person or committee appointed from time to time by the Company to administer the Plan.
Severance-type benefits means post-termination compensation under any employment agreement or other written agreement between the Employer and the employee or other plan or arrangement maintained by the Employer, other than compensation that is paid solely as consideration for a covenant not to compete with the Employer.
Subsidiary of any person means another person, an amount of the voting securities, other voting rights or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body or, if there are no such voting interests, more than 50% of the equity interest of which is owned directly or indirectly by such first person.
WARN means the Worker Adjustment and Retraining Notification Act.
ELIGIBLE EMPLOYEES |
The benefits under this Plan are limited to corporate employees, as well as retail employees employed by JAG Footwear, Accessories and Retail Corporation at the level of District Sales Manager or above, in all instances who are classified by an Employer as regular full-time employees and whose regular place of employment is within the United States. Notwithstanding anything to the contrary, union employees are not eligible under this Plan.
INVOLUNTARY TERMINATION OF EMPLOYMENT |
An employee will be eligible for severance benefits under this Plan only if the Plan Administrator, in its sole discretion, determines that the employee's employment has been terminated involuntarily for any of the following reasons:
- Reduction in staff or layoff.
- Position elimination.
- Closure of a business unit.
- Organization restructuring.
- Such other circumstances as the Plan Administrator deems appropriate for the payment of severance benefits.
An employee who terminates employment for any reason prior to his or her Designated Termination Date will not be considered to have terminated employment involuntarily unless (i) his or her Employer provides otherwise in writing, or (ii) he or she has been notified that his or her employment is being terminated due to a reduction in staff or layoff requiring notice under federal or state WARN. Such an employee is, however, required to provide two (2) weeks' prior notice if electing to terminate employment on a date prior to his or her Designated Termination Date.
Unless the Company provides otherwise in writing, an employee will not be eligible for severance benefits if the Plan Administrator, in its sole discretion, determines that the employee's employment is terminated for any of the following reasons:
2
- Resignation or other voluntary termination of employment.
- Failure to return to work upon the expiration of an authorized leave of absence.
- Death or disability.
- Termination for cause or for behavior prejudicial to the Employer, as determined by the Plan Administrator in its sole discretion.
- Termination for gross misconduct or violation of company policy.
- Termination for poor performance.
An employee who terminates employment for any reason prior to his or her Designated Termination Date will not be considered to have terminated employment involuntarily unless (i) his or her Employer provides otherwise in writing, or (ii) he or she has been notified that his or her employment is being terminated due to a reduction in staff or layoff requiring notice under federal or state WARN. Such an employee is, however, required to provide two (2) weeks' prior notice if electing to terminate employment on a date prior to his or her Designated Termination Date.
Unless the Company provides otherwise in writing, or except as expressly provided in this Plan, an employee will not be eligible to receive benefits under this Plan if the Plan Administrator, in its sole discretion, determines that any of the following events has occurred prior to the employee's Designated Termination Date:
- The employee has been offered, but has refused to accept, a suitable position with the Company or any of its Subsidiaries or Affiliates; OR
- The employee's employment is being terminated in connection with a sale or transfer, merger, establishment of a joint venture, or other corporate transaction, and the employee has been offered a suitable position by the successor employer; OR
- The employee's employment is being terminated in connection with the "outsourcing" of operational functions and he or she has been offered a suitable position by the outsourcing vendor.
CONDITIONS FOR PAYMENT OF SEVERANCE BENEFITS |
An employee who is involuntarily terminated will not receive severance benefits under this Plan unless the Plan Administrator, in its sole discretion, determines that the employee has satisfied all of the following conditions:
The employee must continue to be actively at work through his or her Designated Termination Date or such earlier date as may be specified by his or her Employer in writing, unless the employee is absent due to vacation, temporary layoff, or an approved absence from work (including leave under the Family and Medical Leave Act).
This section does not apply to employees whose employment is being terminated due to a reduction in force or layoff requiring notice under federal or state WARN. Such employees are required, however, to provide two (2) weeks' prior notice.
3
The employee must execute and deliver to the Company, within the period of time specified by the Company, an agreement in a form satisfactory to the Company containing a general release of claims in favor of the Company and such other terms and provisions as may be determined by the Company in its sole discretion.
The employee must return all company property and satisfactorily settle all expenses owed to the Company and any of its Subsidiaries or Affiliates.
SEVERANCE BENEFITS |
The severance benefits to be provided to an eligible employee will be determined in accordance with the Severance Benefit Guidelines attached to this Plan subject to the reductions set forth below; provided, that the Company has the right, in its sole discretion, and on a case-by case basis, to determine the amount of severance benefits to be provided to an eligible employee.
Reduction for Other Severance Benefits
In the event that an employee
is entitled to receive Severance-type benefits under another plan or arrangement maintained by the Employer, or
is covered by an employment agreement or other written agreement with the Employer providing for Severance-type benefits,
then the severance benefits payable to the employee under this Plan will be reduced by the amount of Severance-type benefits payable to the employee under such other plan, arrangement or agreement, unless the Company provides otherwise in writing. For the avoidance of doubt, if the Severance-type benefits payable under such other plan, arrangement or agreement are greater in the aggregate than the severance benefits payable to the employee under this Plan, then the employee shall not receive benefits under this Plan, and shall instead receive the Severance-type benefits under such other plan, arrangement or agreement.
REEMPLOYMENT |
The following rules apply if an employee is reemployed by the Company or any of its Subsidiaries, Affiliates or successors.
Right to Terminate Benefits
Notwithstanding anything in this Plan to the contrary, in the event that an employee is reemployed before the completion of the scheduled payment of severance benefits, then an Employer shall have the right to terminate the benefits payable under this Plan at any time.
4
Repayment of Severance Pay
In the event that an employee is offered reemployment within thirty (30) days after payment of his or her severance pay has commenced and subsequently accepts reemployment, then the employee shall repay to the Company the full amount of severance pay that he or she has received under this Plan.
RIGHT TO TERMINATE BENEFITS |
Notwithstanding anything in this Plan to the contrary, in the event that the Plan Administrator determines that an employee has breached any of the terms and conditions set forth in any agreement executed by the employee as a condition to receiving benefits under this Plan, including, but not limited to, the general release of claims, then the Company shall have the right to terminate the benefits payable under this Plan at any time.
GENERAL RULES |
The Company shall withhold such amounts from payments under this Plan as it determines necessary to fulfill any federal, state, or local wage or compensation withholding requirements.
Neither the Plan nor any action taken with respect to it shall confer upon any person the right to continue in the employ of the Company or any of its Subsidiaries or Affiliates.
Benefits under the Plan may not be anticipated, assigned or alienated.
The Company will make all payments under the Plan, and pay all expenses of the Plan, from its general assets. Nothing contained in this Plan shall give any eligible employee any right, title or interest in any property of the Company or any of its Affiliates nor shall it create any trust relationship.
The provisions of the Plan shall be construed, administered and enforced according to applicable federal law and, where appropriate, the laws of the State of New York without reference to its conflict of laws rules and without regard to any rule of any jurisdiction that would result in the application of the law of another jurisdiction.
No action relating to this Plan or any release or other agreement entered into with respect to this Plan may be brought later than the earlier of second anniversary of the termination of employment or other event giving rise to the claim.
The provisions of the Plan are severable. If any provision of the Plan is deemed legally or factually invalid or unenforceable to any extent or in any application, then the remainder of
5
the provisions of the Plan, except to such extent or in such application, shall not be affected, and each and every provision of the Plan shall be valid and enforceable to the fullest extent and in the broadest application permitted by law.
Section headings are used herein for convenience of reference only and shall not affect the meaning of any provision of this Plan.
ADMINISTRATION OF THE PLAN |
The Plan Administrator shall have sole authority and discretion to administer and construe the terms of this Plan, subject to applicable requirements of law. Without limiting the generality of the foregoing, the Plan Administrator shall have complete discretionary authority to carry out the following powers and duties:
CLAIMS PROCEDURE |
The Plan Administrator reviews and authorizes payment of severance benefits for those employees who qualify under the provisions of the Plan. No claim forms need be submitted. Questions regarding payment of the severance benefits should be directed to Vice President, Benefits or the Plan Administrator.
If an employee feels he or she is not receiving severance benefits which are due, the employee should file a written claim for the benefits with a Vice President in the Human Resources Department. A decision on whether to grant or deny the claim will be made within 90 days following receipt of the claim. If more than 90 days is required to render a decision, the employee will be notified in writing of the reasons for delay. In any event, however, a decision to grant or deny a claim will be made by not later than 180 days following the initial receipt of the claim.
If the claim is denied in whole or in part, the employee will receive a written explanation of the specific reasons for the denial, including a reference to the Plan provisions on which the denial is based.
If the employee wishes to appeal this denial, the employee may write within 60 days after receipt of the notification of denial. The claim will then be reviewed by the Plan Administrator and the employee will receive written notice of the final decision within 60 days after the request
6
for review. If more than 60 days is required to render a decision, the employee will be notified in writing of the reasons for delay before the end of the initial 60 day period. In any event, however, the employee will receive a written notice of the final decision within 120 days after the request for review.
AMENDMENT AND TERMINATION |
The Company may amend, modify or terminate this Plan with respect to any employee or group of employees at any time pursuant to a writing executed by any duly authorized officer of the Company. Such amendment, modification or termination will be effective with respect to employees who have not received notice of a Designated Termination Date on the date such amendment is executed.
STATEMENT OF ERISA RIGHTS |
As a participant in this Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to:
Examine, without charge, at the plan administrator's office and at other specified locations all documents governing the plan and a copy of the latest annual report (Form 5500 Series) required to be filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.
Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan and copies of the latest annual report (Form 5500 Series), if any required, and updated summary plan description. The administrator may make a reasonable charge for the copies.
Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report.
In addition to creating rights for plan participants ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called "fiduciaries" of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.
If your claim for a severance benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within thirty (30) days, you may file suit in a Federal court. In such a case, the
7
court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
ADDITIONAL INFORMATION |
Plan Sponsor: | The Jones Group Inc. 180 Rittenhouse Circle Keystone Park Bristol, Pennsylvania 19007 (215) 785-4000 |
Employer Identification Number (EIN): | 06-0935166 |
Plan Name: | The Jones Group Inc. Severance Plan |
Type of Plan: | Welfare benefit plan - severance pay |
Plan Year: | Calendar year |
Plan Number: | 550 |
Plan Administrator: | Chief People Officer The Jones Group Inc. 180 Rittenhouse Circle Keystone Park Bristol, Pennsylvania 19007 |
Agent for Service of Legal Process: | Plan Administrator |
8
THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES
Amended as of April 19, 2012
EMPLOYEES BELOW VICE PRESIDENT
An employee may elect to receive either the severance benefits described in OPTION ONE or OPTION TWO below. The election must be made within the time period, and in accordance with the procedures, specified by the Plan Administrator.
- Severance Pay
Years of Service Amount of Severance Pay Less than 20 years 2 weeks of Base Pay for each Year of Service
- Minimum of 2 weeks of Base Pay
- Maximum of 26 weeks of Base Pay
20 or more years 52 weeks of Base Pay The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.
- Continued Group Health Benefit Coverage - Payment of Cost for COBRA Coverage
If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan.
- The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.
9
After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.
2 weeks of Base Pay for each Year of Service
- Minimum of 2 weeks of Base Pay
- NO maximum
The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.
For purposes of determining the amount of severance pay -
- Base Paymeans the employee's regular rate of salary (determined on a weekly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
- Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.
10
THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES
Effective as of May 31, 2006
VICE PRESIDENTS AND ABOVE BUT BELOW
THE LEVEL OF EXECUTIVE VICE PRESIDENT
Severance Pay
Amount of Severance Pay
Years of Service | Amount of Severance Pay |
Less than 5 years | 3 months of Base Pay |
5 to 9 years | 6 months of Base Pay |
10 or more years | 12 months of Base Pay |
For purposes of determining the amount of severance pay -
Base Pay means the employee's regular rate of salary (determined on a monthly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.
Payment of Severance Pay
The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.
Continued Group Health Benefit Coverage - Payment of Cost for COBRA Coverage
If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan.
11
The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.
After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.
12
THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES
Effective as of May 31, 2006
EXECUTIVE VICE PRESIDENTS AND ABOVE
- Amount of Severance Pay
Years of Service | Amount of Severance Pay |
Less than 5 years | 3 months of Base Pay |
5 to 9 years | 6 months of Base Pay |
10 to 19 years | 12 months of Base Pay |
20 or more years | 18 months of Base Pay |
For purposes of determining the amount of severance pay -
- Base Pay means the employee's regular rate of salary (determined on a monthly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
- Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.
- Payment of Severance Pay
The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.
If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan, or, if earlier, until the expiration of COBRA coverage.
13
- The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.
After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.
As determined by the Company.
14
EXHIBIT 12
THE JONES GROUP INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
Year Ended December 31, | ||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | $ | (67.9 | ) | $ | 71.1 | $ | 85.1 | $ | (70.1 | ) | $ | (772.9 | ) | |||
Fixed charges: | ||||||||||||||||
Interest expense and amortization of financing costs. | 145.7 | 74.2 | 60.4 | 55.6 | 49.1 | |||||||||||
Portion of rent expense representing interest | 42.4 | 39.5 | 35.3 | 39.5 | 41.0 | |||||||||||
Total fixed charges | 188.1 | 113.7 | 95.7 | 95.1 | 90.1 | |||||||||||
Income (loss) from continuing operations before income taxes and fixed charges | $ | 120.2 | $ | 184.8 | $ | 180.8 | $ | 25.0 | $ | (682.8 | ) | |||||
Ratio of earnings to fixed charges (1) | 0.6 | (2) | 1.6 | 1.9 | 0.3 | (2) | N/A | (2) |
(1) | For purposes of the computation, the ratio of earnings to fixed charges has been calculated by dividing (a) income from continuing operations before income taxes and fixed charges by (b) fixed charges. Fixed charges are equal to interest expense plus the portion of the rent expense estimated to represent interest. |
(2) | Earnings were insufficient to cover fixed charges for the years 2012, 2009 and, 2008 by $67.9 million, $70.1 million and $772.9 million, respectively. |
EXHIBIT 21
SUBSIDIARIES OF THE JONES GROUP INC.
Name
|
State or Country of Incorporation
|
Other Names Under Which Subsidiary Does Business
|
Atwood Italia S.r.L. | Italy | N/A |
B.B., S.a.s. | France | N/A |
Brian Atwood IP Company LLC | Delaware | N/A |
Carvela Limited | England | N/A |
Creaciones S.W., S.A. | Spain | N/A |
Dongguan Jones Commerce and Trading Co., Ltd. | China | N/A |
Hope Diamon, S.L. | Spain | N/A |
JAG Footwear, Accessories and Retail Corporation | New Jersey | Anne Klein Brian Atwood Easy Spirit Easy Spirit Outlet Jones New York Jones New York Woman Kasper Kurt Geiger Nine West Nine West Outlet Rachel Roy Shoe Woo Vintage America World According to 9 |
Jones Apparel Group Canada ULC | Canada | N/A |
Jones Apparel Group Canada, LP | Canada | Jones Factory Store Jones New York Jones New York Factory Store Jones New York Factory Finale Jones Jeanswear Canada Tique |
Jones Apparel Group Holdings, Inc. | Delaware | N/A |
Jones Apparel Group USA, Inc. | Delaware | Jones Apparel Group USA (DE), Inc. (New York only) |
Jones Canada, Inc. | Canada | N/A |
Jones Distribution Corporation | Delaware | N/A |
Jones Holding Inc. | Delaware | N/A |
Jones International Limited | Hong Kong | N/A |
Jones Investment Co. Inc. | Delaware | N/A |
Jones Jeanswear Group, Inc. | New York | N/A |
Jones Jeanswear Group - Egypt LLC | Egypt | N/A |
Jones Management Service Company | Delaware | Apparel Management Service Company (New Hampshire only) JAG Management Service Company (Rhode Island and Maine only) |
KG Group Holdings Limited | England | N/A |
Kurt Geiger Shoes Limited | England | N/A |
Kurt Geiger Ireland Limited | Ireland | N/A |
Kurt Geiger Italy S.r.l. | Italy | N/A |
Kurt Geiger France SAS | France | N/A |
Kurt Geiger Germany GmBH | Germany | N/A |
Lizzy Mae, Inc. | Delaware | N/A |
Mocaroni, S.L. | Spain | N/A |
Nine West Development Corporation | Delaware | N/A |
Rachel Roy IP Company LLC | Delaware | N/A |
Shoeaholics Limited | England | N/A |
Shoes by Stuart, S.L. | Spain | N/A |
Shoe Heaven S.L. | Spain | N/A |
Stuart Weitzman Holdings, LLC | Delaware | N/A |
Stuart Weitzman, LLC | Delaware | N/A |
Stuart Weitzman (France) S.A.R.L. | France | N/A |
Stuart Weitzman IP, LLC | Delaware | N/A |
Stuart Weitzman Italia S.r.l. | Italy | N/A |
Stuart Weitzman Monaco S.A.R.L. | Monaco | N/A |
Stuart Weitzman Retail Stores, LLC | Delaware | N/A |
Sunburst S.L. | Spain | N/A |
The Jones Group Spain, S.L. | Spain | N/A |
Certain non-significant subsidiaries were omitted pursuant to Item 601(b)(21)(ii) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
EXHIBIT 23
![]() |
Tel: 212-885-8000 Fax: 212-697-1299 www.bdo.com |
100 Park Ave New York, NY 10017 |
Consent of Independent Registered Public Accounting Firm
The Jones Group Inc.
New York, New York
We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 No. 333-166566 filed on May 6, 2010 and Form S-8 filed on May 25, 2009 of The Jones Group Inc. of our reports dated February 22, 2013, relating to the consolidated financial statements and financial statement schedule, and the effectiveness of The Jones Group Inc.'s internal control over financial reporting, which appear in this Form 10-K.
New York, New York
February 22, 2013
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the International BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
EXHIBIT 31
CERTIFICATION
I, Wesley R. Card, certify that:
1. | I have reviewed this Annual Report on Form 10-K 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: February 22, 2013 |
|
/s/ Wesley R. Card Wesley R. Card Chief Executive Officer |
I, John T. McClain, certify that:
1. | I have reviewed this Annual Report on Form 10-K 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: February 22, 2013 |
|
/s/ John T. McClain John T. McClain Chief Financial Officer |
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ACCRUED RESTRUCTURING COSTS (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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ACCRUED RESTRUCTURING COSTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Jewelry Restructuring | The details of the jewelry restructuring accruals are as follows:
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Details of Texas Warehouse Restructuring | The details of the Texas warehouse restructuring accruals are as follows:
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Details of Moderate Apparel Restructuring | The details of the moderate apparel restructuring accruals are as follows:
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Details of Retail Stores Restructurings | The details of the restructuring accruals are as follows:
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UNAUDITED CONSOLIDATED FINANCIAL INFORMATION (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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UNAUDITED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of unaudited interim consolidated information | Unaudited interim consolidated financial information for the two years ended December 31, 2012 is summarized as follows:
Quarterly figures may not add to full year due to rounding.
|
STATEMENT OF CASH FLOWS (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Statement of cash flows, supplemental disclosures | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure of Cash Flows | STATEMENT OF CASH FLOWS
|
DERIVATIVES Part I (Details)
In Millions, unless otherwise specified |
12 Months Ended | 5 Months Ended | 5 Months Ended | 18 Months Ended | 3 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
USD ($)
|
Dec. 31, 2011
USD ($)
|
Dec. 31, 2010
USD ($)
|
Dec. 31, 2012
Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2011
Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2011
Interest Rate Swaps [Member]
Other Long-term Assets [Member]
Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2012
Foreign Exchange Contract [Member]
Prepaid Expenses and Other Current Assets [Member]
Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2011
Foreign Exchange Contract [Member]
Prepaid Expenses and Other Current Assets [Member]
Designated as Hedging Instrument [Member]
USD ($)
|
Dec. 31, 2011
Interest Rate Cap [Member]
Other Long-term Assets [Member]
Not Designated as Hedging Instrument [Member]
USD ($)
|
Oct. 18, 2010
Interest Rate Swaps on 2014 Notes [Member]
USD ($)
|
Jun. 01, 2010
Interest Rate Swaps on 2014 Notes [Member]
USD ($)
|
Aug. 03, 2011
Interest Rate Swaps on 2019 Notes [Member]
USD ($)
|
Mar. 07, 2011
Interest Rate Swaps on 2019 Notes [Member]
USD ($)
|
Jun. 08, 2012
Additional Swaps on 2014 Notes [Member]
USD ($)
|
Dec. 17, 2010
Additional Swaps on 2014 Notes [Member]
USD ($)
|
May 31, 2012
Additional Swaps on 2019 Notes [Member]
USD ($)
|
Mar. 21, 2012
Additional Swaps on 2019 Notes [Member]
USD ($)
|
Dec. 31, 2012
Canadian Dollar U.S. Dollar Forward Contracts [Member]
USD ($)
|
Dec. 31, 2011
Canadian Dollar U.S. Dollar Forward Contracts [Member]
USD ($)
|
Dec. 31, 2010
Canadian Dollar U.S. Dollar Forward Contracts [Member]
USD ($)
|
Dec. 31, 2012
British Pound - U.S. Dollar Forward Exchange Contracts [Member]
GBP (£)
|
|
Derivative [Line Items] | ||||||||||||||||||||||
Number of interest rate swap transactions | 3 | 3 | 3 | 3 | ||||||||||||||||||
Amount of hedged item related to derivative | $ 250 | $ 150 | $ 250 | $ 150 | ||||||||||||||||||
Fixed interest rate related to derivative | 5.125% | 6.875% | 5.125% | 6.875% | ||||||||||||||||||
Variable interest rate related to derivative | three-month LIBOR rates (that were reset on the 15th day of each calendar quarter) plus 2.92% | three-month LIBOR rates (which were reset on the 15th day of each calendar quarter) plus 3.73% | three-month LIBOR rates (which were reset on the 15th day of each calendar quarter) plus 3.46% | one-month LIBOR rates (which were reset on the 15th day of each calendar quarter) plus 5.195% | ||||||||||||||||||
Cost of interest rate cap | 2.7 | |||||||||||||||||||||
Interest rate cap | 5.00% | |||||||||||||||||||||
Amount received upon termination of swaps | 10.2 | 8.1 | 5.7 | 3.5 | ||||||||||||||||||
Increase in interest expense related to ineffectiveness of swap | 1.3 | 1.0 | 1.0 | |||||||||||||||||||
Increase in fair value of interest rate cap | 0.2 | 1.1 | 1.4 | |||||||||||||||||||
Net increase in interest expense related to derivatives | 1.5 | 2.1 | 2.4 | |||||||||||||||||||
Notional amounts of foreign exchange contracts outstanding | 16.1 | 5.3 | 20.3 | 6.0 | ||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||
Derivative assets | $ 0.2 | $ 5.6 | $ 0.2 | $ 5.5 | $ 0.2 | $ 0.1 | $ 0.2 |
SUMMARY OF ACCOUNTING POLICIES (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Summary of Accounting Policies [Line Items] | |||
Percentage of ownership interest in GRI | 25.00% | ||
Distribution costs included in SG&A expenses | $ 94.1 | $ 93.3 | $ 105.4 |
Net foreign currency gains (losses) | 7.0 | (5.7) | 1.0 |
Net advertising expense | 83.1 | 65.6 | 57.6 |
Co-operative advertising reimbursements | $ 8.9 | $ 11.7 | $ 11.1 |
Antidilutive shares [Abstract] | |||
Number of options | 4.4 | 6.0 | |
Weighted average exercise price | $ 34.74 | $ 33.25 | |
Minimum [Member]
|
|||
Summary of Accounting Policies [Line Items] | |||
Other intangibles with determinable lives, including license agreements, estimated useful lives of the assets (in years) | 4 years 7 months | ||
Maximum [Member]
|
|||
Summary of Accounting Policies [Line Items] | |||
Other intangibles with determinable lives, including license agreements, estimated useful lives of the assets (in years) | 23 years |
EMPLOYEE BENEFIT PLANS (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2013
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Supplemental Executive Retirement Plan [Member]
|
Dec. 31, 2012
Deferred Compensation Plan for certain management, Defined Contribution [Member]
|
Dec. 31, 2011
Deferred Compensation Plan for certain management, Defined Contribution [Member]
|
Dec. 31, 2012
Multiemployer Pension Plans [Member]
|
Dec. 31, 2011
Multiemployer Pension Plans [Member]
|
Dec. 31, 2010
Multiemployer Pension Plans [Member]
|
Dec. 31, 2012
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Level 2 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Level 2 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Cash and Cash Equivalents [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Cash and Cash Equivalents [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Cash and Cash Equivalents [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Cash and Cash Equivalents [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
US Companies Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
US Companies Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
US Companies Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
US Companies Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
International Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
International Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
International Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
International Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Real Estate Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Real Estate Equity Securities [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Real Estate Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Real Estate Equity Securities [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Fixed Income [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Fixed Income [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Fixed Income [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Fixed Income [Member]
Level 1 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2012
Fixed Income [Member]
Level 2 [Member]
Pension Plans, Defined Benefit [Member]
|
Dec. 31, 2011
Fixed Income [Member]
Level 2 [Member]
Pension Plans, Defined Benefit [Member]
|
|||||||||||||||||||||||||||
Defined Contribution Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of contribution plan | We maintain several defined contribution plans under Section 401(k) of the Internal Revenue Code (the "Code"), of which the primary plan is The Jones Group Inc. Retirement Plan (the "Jones Plan"). Employees not covered by a collective bargaining agreement and meeting certain other requirements are eligible to participate in the Jones Plan. Under the Jones Plan, participants may elect to have up to 50% of their salary (subject to limitations imposed by the Code) deferred and deposited with a qualified trustee, who in turn invests the money in a variety of investment vehicles as selected by each participant. All employee contributions into the Jones Plan are 100% vested. We have elected to make the Jones Plan a "Safe Harbor Plan" under Section 401(k)(12) of the Code. As a result of this election, we make a fully-vested safe harbor matching contribution for all eligible participants amounting to 100% of the first 3% of the participant's salary deferred and 50% of the next 2% of salary deferred, subject to maximums set by the Department of the Treasury. We may, at our sole discretion, contribute additional amounts to all employees on a pro rata basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution to defined contribution plan | $ 8.3 | $ 7.7 | $ 7.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | 62.2 | 56.8 | 48.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 2.5 | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss - effect of assumption changes | 5.6 | 9.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | 0 | (2.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (2.7) | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation, end of year | 62.2 | 56.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in plan assets [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | 42.0 | 35.0 | 35.6 | 32.8 | 26.1 | 9.2 | 8.9 | 3.5 | 2.5 | 3.5 | 2.5 | 16.4 | [1] | 12.4 | [1] | 16.4 | [1] | 12.4 | [1] | 5.6 | [2] | 7.1 | [2] | 5.6 | [2] | 7.1 | [2] | 2.3 | [3] | 0.6 | [3] | 2.3 | [3] | 0.6 | [3] | 14.2 | [4] | 12.4 | [4] | 5.0 | [4] | 3.5 | [4] | 9.2 | [4] | 8.9 | [4] | ||||||||||||||||||
Actual return on plan assets | 5.3 | (1.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer contribution | 4.4 | 5.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | 0 | (2.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (2.7) | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, end of year | 42.0 | 35.0 | 32.8 | 26.1 | 9.2 | 8.9 | 3.5 | 2.5 | 3.5 | 2.5 | 16.4 | [1] | 12.4 | [1] | 16.4 | [1] | 12.4 | [1] | 5.6 | [2] | 7.1 | [2] | 5.6 | [2] | 7.1 | [2] | 2.3 | [3] | 0.6 | [3] | 2.3 | [3] | 0.6 | [3] | 14.2 | [4] | 12.4 | [4] | 5.0 | [4] | 3.5 | [4] | 9.2 | [4] | 8.9 | [4] | |||||||||||||||||||
Underfunded status at end of year | 20.2 | 21.8 | 4.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underfunded plan recorded in accrued expenses | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation liability included in accrued employee compensation and benefits | 8.4 | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum elected percentage of deferred salary and bonus contributable to plan | 90.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partial contribution to a multi-employer defined benefit plan | 0.2 | 0.2 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of partial withdrawal liability related to multiemployer pension plan | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Recognized on the Balance Sheet [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anticipated employer contributions in next fiscal year | 5.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | 20.2 | 21.8 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount Recognized in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | 38.2 | 37.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | 62.2 | 56.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | 62.2 | 56.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets with an accumulated benefit obligation in excess of plan assets | 42.0 | 35.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 2.5 | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (2.6) | (2.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement costs | 0 | 1.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | 2.1 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net periodic benefit cost | 2.0 | 3.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized in Other Comprehensive Income or Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | 2.9 | 14.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition due to settlement | 0 | (1.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | (2.1) | (1.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive loss | 0.8 | 10.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income or loss | 2.8 | 14.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated net loss to be amortized from accumulated other comprehensive income in next fiscal year | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate (in hundredths) | 3.90% | 4.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected long-term return on plan assets (in hundredths) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.60% | 5.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected long-term return on plan assets (in hundredths) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in discount rate assumptions (in hundredths) | (0.25%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation liability | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in expense due to change in discount rate | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in expense due to change in expected return on long-term assets | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 through 2022 | 15.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 27.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ 42.0 | $ 35.0 | $ 32.8 | $ 26.1 | $ 9.2 | $ 8.9 | $ 3.5 | $ 2.5 | $ 3.5 | $ 2.5 | $ 16.4 | [1] | $ 12.4 | [1] | $ 16.4 | [1] | $ 12.4 | [1] | $ 5.6 | [2] | $ 7.1 | [2] | $ 5.6 | [2] | $ 7.1 | [2] | $ 2.3 | [3] | $ 0.6 | [3] | $ 2.3 | [3] | $ 0.6 | [3] | $ 14.2 | [4] | $ 12.4 | [4] | $ 5.0 | [4] | $ 3.5 | [4] | $ 9.2 | [4] | $ 8.9 | [4] | |||||||||||||||||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic equity securities | 34.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International equity securities | 19.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | 36.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | 5.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OBLIGATIONS UNDER CAPITAL LEASES (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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OBLIGATIONS UNDER CAPITAL LEASES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Leased Assets [Table Text Block] | Obligations under capital leases consist of the following:
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Schedule of future minimum lease payments | The following is a schedule by year of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments as of December 31, 2012:
|
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | THE JONES GROUP INC. VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2010, 2011 AND 2012 (In Millions)
_________________________ (1) Doubtful accounts written off against accounts receivable. (2) Represents effects of foreign currency translation. (3) Deductions taken by customers written off against accounts receivable. |
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION (Details)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
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BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION [Abstract] | |
Number of reportable segments | 6 |
COMMON STOCK (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Equity, Class of Treasury Stock [Line Items] | |||
Common shares repurchased | $ 44.3 | $ 78.0 | $ 10.7 |
The Jones Group Inc Stock Repurchase Program [Member]
|
|||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares of common stock repurchased (in shares) | 4,203,618 | 7,244,450 | 740,000 |
Common shares repurchased | 44.0 | 78.0 | 10.7 |
Value of authorized repurchases still available | $ 171.4 |
ACQUISITIONS (Details)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
USD ($)
|
Dec. 31, 2011
USD ($)
|
Dec. 31, 2010
USD ($)
|
Dec. 31, 2012
Moda [Member]
USD ($)
|
Dec. 31, 2011
Moda [Member]
USD ($)
|
Dec. 31, 2010
Moda [Member]
USD ($)
|
Feb. 04, 2010
Moda [Member]
USD ($)
|
Feb. 04, 2010
Moda [Member]
Customer Relationships [Member]
USD ($)
|
Feb. 04, 2010
Moda [Member]
Trademarks [Member]
USD ($)
|
Feb. 04, 2010
Moda [Member]
Noncompete Agreements [Member]
USD ($)
|
Feb. 04, 2010
Moda [Member]
Acquired Order Backlog [Member]
USD ($)
|
Dec. 31, 2012
SWH [Member]
USD ($)
|
Dec. 31, 2011
SWH [Member]
USD ($)
|
Dec. 31, 2010
SWH [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Customer Relationships [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Noncompete Agreements [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Acquired Order Backlog [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Licensing Agreements [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Acquired Favorable Leases [Member]
USD ($)
|
Jun. 02, 2010
SWH [Member]
Unfavorable Lease Agreements [Member]
|
Dec. 31, 2011
Kurt Geiger [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
GBP (£)
|
Jun. 02, 2011
Kurt Geiger [Member]
Customer Relationships [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
Trademarks [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
Acquired Order Backlog [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
Acquired Favorable Leases [Member]
USD ($)
|
Jun. 02, 2011
Kurt Geiger [Member]
Unfavorable Lease Agreements [Member]
|
Jul. 02, 2012
Atwood Italia S.r.l. [Member]
|
Jul. 02, 2012
Brian Atwood Related Intellectual Property [Member]
|
Dec. 31, 2012
Brian Atwood [Member]
USD ($)
|
Jul. 02, 2012
Brian Atwood [Member]
USD ($)
|
Jul. 02, 2012
Brian Atwood [Member]
Customer Relationships [Member]
USD ($)
|
Jul. 02, 2012
Brian Atwood [Member]
Trademarks [Member]
USD ($)
|
Jul. 02, 2012
Brian Atwood [Member]
Acquired Order Backlog [Member]
USD ($)
|
|
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired (in hundredths) | 100.00% | 55.00% | 100.00% | 100.00% | 100.00% | 80.00% | ||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | |||||||||||||||||||||||||||||||||||
Business acquisition, cost of acquired entity, cash paid | $ 16.9 | $ 180.3 | $ 150.0 | $ 5.0 | ||||||||||||||||||||||||||||||||
Business acquisition, amount of purchase price deferred | 0.5 | |||||||||||||||||||||||||||||||||||
Acquisition consideration liability | 7.4 | 18.8 | 28.9 | 181.8 | ||||||||||||||||||||||||||||||||
Business Acquisition Cost of Acquired Entity Long Term Payable | 1.0 | |||||||||||||||||||||||||||||||||||
Purchase price payable rolled over into Loan Notes | 10.2 | 6.2 | ||||||||||||||||||||||||||||||||||
Interest rate on Loan Note to senior managers of KG (in hundredths) | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||||
Description of Acquired Entity | Kurt Geiger markets products under four of its own brands - Kurt Geiger, KG, 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. | |||||||||||||||||||||||||||||||||||
Changes in liability recorded as expense in period | (3.9) | (8.1) | 4.1 | 88.3 | 20.0 | 14.9 | ||||||||||||||||||||||||||||||
Payments of acquisition consideration liability | 163.9 | 10.1 | 4.3 | 3.5 | 255.0 | 15.4 | 5.7 | |||||||||||||||||||||||||||||
Acquired receivables, fair value | 2.2 | |||||||||||||||||||||||||||||||||||
Acquired receivables, gross contractual amount | 2.7 | 24.4 | 19.8 | 0.5 | ||||||||||||||||||||||||||||||||
Goodwill, expected tax deductible amount | 6.6 | 115.1 | ||||||||||||||||||||||||||||||||||
Total revenues | 17.0 | 129.2 | 214.4 | 4.3 | ||||||||||||||||||||||||||||||||
Loss before provision for taxes | (6.9) | (7.5) | (5.4) | (5.6) | ||||||||||||||||||||||||||||||||
Percentage of voting interests remaining to be acquired (in hundredths) | 45.00% | |||||||||||||||||||||||||||||||||||
Projected payment of acquisition consideration payable in 2013 | 2.5 | |||||||||||||||||||||||||||||||||||
Projected payment of acquisition consideration payable in 2014 | 2.9 | |||||||||||||||||||||||||||||||||||
Projected payment of acquisition consideration payable in 2015 | 3.2 | |||||||||||||||||||||||||||||||||||
Business combination, pro forma information [Abstract] | ||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Revenue | 3,915.5 | |||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | 50.0 | |||||||||||||||||||||||||||||||||||
Earnings (loss) per share attributable to Jones [Abstract] | ||||||||||||||||||||||||||||||||||||
Basic, pro forma effect | $ 0.60 | |||||||||||||||||||||||||||||||||||
Diluted, pro forma effect | $ 0.59 | |||||||||||||||||||||||||||||||||||
Legal expenses and other transactions related to acquisition | 0.6 | 5.4 | 4.9 | 0.7 | ||||||||||||||||||||||||||||||||
Acquisition related expenses excluded from pro forma earnings | 4.9 | |||||||||||||||||||||||||||||||||||
Nonrecurring expense related to the fair value of acquisition date order backlogs excluded from pro forma earnings | 2.7 | |||||||||||||||||||||||||||||||||||
Business Acquisition Fair Value of Assets and Liabilities assumed [Line Items] | ||||||||||||||||||||||||||||||||||||
Cash | 21.0 | 6.9 | 0.6 | |||||||||||||||||||||||||||||||||
Accounts receivable | 20.1 | 19.7 | 0.5 | |||||||||||||||||||||||||||||||||
Inventories | 18.9 | 55.1 | ||||||||||||||||||||||||||||||||||
Other current assets | 1.5 | 9.5 | 0.4 | |||||||||||||||||||||||||||||||||
Current assets | 3.2 | |||||||||||||||||||||||||||||||||||
Property, plant and equipment | 0.2 | 19.4 | 27.0 | 0.1 | ||||||||||||||||||||||||||||||||
Trademarks - nonamortized | 154.1 | 95.1 | ||||||||||||||||||||||||||||||||||
Goodwill | 6.6 | 115.1 | 99.3 | 3.2 | ||||||||||||||||||||||||||||||||
Finite lived intangible asset acquired, fair value | 7.9 | 17.0 | 0.2 | 1.7 | 20.2 | 3.5 | 10.5 | 3.6 | 6.1 | 125.7 | 0.1 | 2.8 | 6.8 | 0.4 | 7.5 | 0.7 | ||||||||||||||||||||
Other noncurrent assets | 0.7 | |||||||||||||||||||||||||||||||||||
Total assets acquired | 36.8 | 394.7 | 448.0 | 13.4 | ||||||||||||||||||||||||||||||||
Accounts payable | 30.6 | 1.7 | ||||||||||||||||||||||||||||||||||
Notes payable | 2.8 | |||||||||||||||||||||||||||||||||||
Other current liabilities | 28.5 | 1.8 | ||||||||||||||||||||||||||||||||||
Current liabilities | (1.1) | 10.6 | ||||||||||||||||||||||||||||||||||
Long-term debt | 174.1 | |||||||||||||||||||||||||||||||||||
Cash distributions payable | 19.0 | |||||||||||||||||||||||||||||||||||
Unfavorable lease agreements | 2.7 | 0.2 | ||||||||||||||||||||||||||||||||||
Deferred taxes | 64.6 | 0.3 | ||||||||||||||||||||||||||||||||||
Other long-term liabilities | 0.3 | 0.1 | ||||||||||||||||||||||||||||||||||
Total liabilities assumed | 32.6 | 298.0 | 6.7 | |||||||||||||||||||||||||||||||||
Fair value of noncontrolling interest | 1.2 | |||||||||||||||||||||||||||||||||||
Total purchase price | $ 35.7 | $ 362.1 | $ 150.0 | $ 5.5 | ||||||||||||||||||||||||||||||||
Amortization life (in months) | 120 months | 240 months | 59 months | 3 months | 120 months | 55 months | 9 months | 55 months | 139 months | 73 months | 232 months | 120 months | 9 months | 99 months | 100 months | 6 months | 240 months | 3 months |
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION Part II (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 29, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Oct. 01, 2011
|
Jul. 02, 2011
|
Apr. 02, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from external customers | $ 971.9 | $ 1,035.4 | $ 854.8 | $ 936.0 | $ 893.6 | $ 1,043.0 | $ 887.4 | $ 961.3 | $ 3,798.1 | $ 3,785.3 | $ 3,642.7 |
Long-lived assets | 1,498.8 | 1,559.8 | 1,498.8 | 1,559.8 | 1,241.3 | ||||||
United States [Member]
|
|||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 3,018.0 | 3,119.2 | 3,245.2 | ||||||||
Long-lived assets | 1,072.0 | 1,100.2 | 1,072.0 | 1,100.2 | 1,188.6 | ||||||
United Kingdom [Member]
|
|||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 343.7 | 216.1 | 11.9 | ||||||||
Long-lived assets | 290.4 | 335.4 | 290.4 | 335.4 | 0 | ||||||
Canada [Member]
|
|||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 146.1 | 152.2 | 136.5 | ||||||||
Other foreign countries [Member]
|
|||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 290.3 | 297.8 | 249.1 | ||||||||
Long-lived assets | $ 136.4 | $ 124.2 | $ 136.4 | $ 124.2 | $ 52.7 |
DERIVATIVES, Part II (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income | $ (1.3) | $ (1.0) | $ (1.0) |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income | 0.1 | (0.3) | (0.3) |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cost of Sales [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pretax (Loss) Reclassified from Other Comprehensive Income into Income | (0.1) | (0.8) | (0.1) |
Interest Rate Cap Contract [Member] | Not Designated as Hedging Instrument [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pretax Gain (Loss) Recognized in Income | $ (0.2) | $ (1.1) | $ (1.4) |
COMMITMENTS AND CONTINGENCIES
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (a) CONTINGENT LIABILITIES. We have been named as a defendant in various actions and proceedings, including actions brought by certain employees whose employment has been terminated arising from our ordinary business activities. Although the amount of any liability that could arise with respect to these actions cannot be accurately predicted, in our opinion, any such liability will not have a material adverse effect on our financial position or results of operations. (b) ROYALTIES. We have an exclusive license to produce, market and distribute costume jewelry in the United States, Canada, Mexico and Japan under the Givenchy trademark pursuant to an agreement with Givenchy, which expires on December 31, 2013. The agreement requires us to pay a percentage of net sales against guaranteed minimum royalty and advertising payments as set forth in the agreement. We have a sub-license agreement with VCJS LLC ("VCJS") to design, develop, produce and distribute in the United States, Mexico and Canada Jessica Simpson jeanswear and sportswear under the Jessica Simpson (signature) trademark which VCJS licenses from With You, Inc. ("WYI"). The agreement, which expires on December 31, 2014 (October 15, 2014 if the master license between WYI and VCJS is not renewed), requires us to pay a percentage of net sales against guaranteed minimum royalty and pooled marketing fee payments as set forth in the agreement. We also have a distribution and retail license agreement with VCJS to distribute products bearing the trademarks Vince Camuto, Vince Camuto Signature and Jessica Simpson in various European territories. The agreement, which ends on December 31, 2018 (unless terminated earlier or renewed) requires us to pay a percentage of net sales against guaranteed minimum royalty and pooled marketing fee payments as set forth in the agreement. The agreement contains renewal options under certain conditions through December 31, 2024. We have an exclusive licensing and distribution agreement with Rafe IP Holdings LLC, a company affiliated with one of our employees, to design, develop, produce and distribute women's footwear, handbags, small leather goods and jewelry in the United States, Australia, Canada, Japan, the Philippines, Singapore and Korea under the Rafe and Rafe New York trademarks. The agreement, which expires on December 31, 2016, requires us to pay a percentage of net sales as set forth in the agreement. The agreement contains renewal options under certain conditions through December 31, 2026. We have an exclusive license to design, develop, produce and distribute footwear worldwide under the Lipsy trademark pursuant to an agreement with Lipsy Limited, which expires on March 18, 2015. The agreement requires us to pay a percentage of net sales against guaranteed minimum royalty payments as set forth in the agreement. Minimum payments under these license agreements are as follows.
(c) LEASES. Total rent expense charged to continuing operations for 2012, 2011 and 2010 was as follows.
The following is a schedule by year of minimum rental payments required under operating leases:
Certain of the leases provide for renewal options and the payment of real estate taxes and other occupancy costs. Future rental commitments for leases have not been reduced by minimum non-cancelable sublease income aggregating $19.1 million. |
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