The following condensed consolidating balance sheets, statements of operations, statements of consolidated comprehensive income and statements of cash flows for Jones, the "Issuers" (consisting of Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets

(In millions)

	October 5, 2013														December 31, 2012
	Jones			Issuers			Others		Elim-inations			Cons-olidated			Jones			Issuers			Others		Elim-inations			Cons-olidated
ASSETS
Current assets:
Cash and cash equivalents	$	-		$	8.6		$	19.2	$	-		$	27.8		$	-		$	82.6		$	67.0	$	-		$	149.6
Accounts receivable		-			266.2			194.9		-			461.1			-			191.0			190.0		-			381.0
Inventories, primarily finished goods		-			301.4			268.5		(1.1	)		568.8			-			261.7			226.2		(1.2	)		486.7
Prepaid and refundable income taxes		-			22.8			1.6		(21.7	)		2.7			-			18.6			0.3		(13.4	)		5.5
Deferred taxes		-			25.3			13.2		-			38.5			-			17.9			15.3		-			33.2
Prepaid expenses and other current assets		0.5			27.5			26.5		(0.7	)		53.8			-			23.6			18.2		(1.1	)		40.7
Total current assets		0.5			651.8			523.9		(23.5	)		1,152.7			-			595.4			517.0		(15.7	)		1,096.7
Property, plant and equipment		-			59.3			201.1		-			260.4			-			64.6			213.5		-			278.1
Due from affiliates		-			348.4			484.1		(832.5	)		-			-			497.7			319.0		(816.7	)		-
Goodwill		-			49.9			165.2		-			215.1			-			49.9			165.4		-			215.3
Other intangibles		-			5.4			853.1		-			858.5			-			6.0			863.7		-			869.7
Deferred taxes		-			89.4			-		(89.4	)		-			-			93.0			-		(93.0	)		-
Investments in subsidiaries		1,839.2			1,870.1			54.9		(3,709.3	)		54.9			1,811.4			1,745.4			38.9		(3,556.8	)		38.9
Other assets		-			69.6			23.4		-			93.0			-			67.7			29.1		-			96.8
Total assets	$	1,839.7		$	3,143.9		$	2,305.7	$	(4,654.7	)	$	2,634.6		$	1,811.4		$	3,119.7		$	2,146.6	$	(4,482.2	)	$	2,595.5
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	-		$	78.0		$	-	$	-		$	78.0		$	-		$	-		$	-	$	-		$	-
Current portion of long-term debt and capital lease obligations		-			-			2.2		-			2.2			-			-			2.2		-			2.2
Current portion of acquisition consideration payable		-			2.4			-		-			2.4			-			30.3			-		-			30.3
Accounts payable		0.4			143.3			109.3		-			253.0			-			156.2			101.3		-			257.5
Income taxes payable		-			-			46.2		(42.0	)		4.2			-			22.1			12.9		(33.6	)		1.4
Accrued expenses and other current liabilities		6.6			67.1			74.5		(0.7	)		147.5			8.5			70.6			82.8		(1.1	)		160.8
Total current liabilities		7.0			290.8			232.2		(42.7	)		487.3			8.5			279.2			199.2		(34.7	)		452.2
Long-term debt		-			931.3			-		-			931.3			-			934.4			-		-			934.4
Obligations under capital leases		-			-			19.6		-			19.6			-			-			21.3		-			21.3
Income taxes payable		-			0.3			-		-			0.3			-			0.5			-		-			0.5
Deferred taxes		-			-			162.6		(95.4	)		67.2			-			-			155.7		(99.0	)		56.7
Acquisition consideration payable		-			4.0			-		-			4.0			-			6.0			-		-			6.0
Due to affiliates		832.5			-			-		(832.5	)		-			816.7			-			-		(816.7	)		-
Other noncurrent liabilities		5.0			78.2			21.2		-			104.4			5.0			88.1			25.0		-			118.1
Total liabilities		844.5			1,304.6			435.6		(970.6	)		1,614.1			830.2			1,308.2			401.2		(950.4	)		1,589.2
Redeemable noncontrolling interest		-			-			0.7		-			0.7			-			-			0.6		-			0.6
Equity:
Common stock and additional paid-in capital		527.9			1,294.3			929.7		(2,224.0	)		527.9			521.6			1,294.3			948.0		(2,242.3	)		521.6
Retained earnings		483.7			561.4			935.0		(1,472.8	)		507.3			477.5			535.1			793.1		(1,304.6	)		501.1
Accumulated other comprehensive (loss) income		(16.4	)		(16.4	)		3.7		12.7			(16.4	)		(17.9	)		(17.9	)		2.8		15.1			(17.9	)
Total Jones stockholders' equity		995.2			1,839.3			1,868.4		(3,684.1	)		1,018.8			981.2			1,811.5			1,743.9		(3,531.8	)		1,004.8
Noncontrolling interests		-			-			1.0		-			1.0			-			-			0.9		-			0.9
Total equity		995.2			1,839.3			1,869.4		(3,684.1	)		1,019.8			981.2			1,811.5			1,744.8		(3,531.8	)		1,005.7
Total liabilities and equity	$	1,839.7		$	3,143.9		$	2,305.7	$	(4,654.7	)	$	2,634.6		$	1,811.4		$	3,119.7		$	2,146.6	$	(4,482.2	)	$	2,595.5

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended October 5, 2013														Fiscal Quarter Ended September 29, 2012
	Jones		Issuers			Others			Elim-inations			Cons-olidated			Jones		Issuers			Others		Elim-inations			Cons-olidated
Net sales	$	-	$	613.9		$	405.2		$	(8.1	)	$	1,011.0		$	-	$	633.2		$	399.1	$	(7.7	)	$	1,024.6
Licensing income		-		0.1			10.6			-			10.7			-		-			10.5		-			10.5
Other revenues		-		-			-			-			-			-		0.3			-		-			0.3
Total revenues		-		614.0			415.8			(8.1	)		1,021.7			-		633.5			409.6		(7.7	)		1,035.4
Cost of goods sold		-		417.0			251.2			(5.8	)		662.4			-		430.3			246.1		(5.6	)		670.8
Gross profit		-		197.0			164.6			(2.3	)		359.3			-		203.2			163.5		(2.1	)		364.6
Selling, general and administrative expenses		-		203.3			95.2			(2.0	)		296.5			-		214.2			89.8		(2.1	)		301.9
Operating (loss) income		-		(6.3	)		69.4			(0.3	)		62.8			-		(11.0	)		73.7		-			62.7
Net interest expense and financing costs		-		13.5			1.3			-			14.8			-		36.3			1.4		-			37.7
Equity in loss of unconsolidated affiliate		-		-			(0.9	)		-			(0.9	)		-		-			-		-			-
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		-		(19.8	)		67.2			(0.3	)		47.1			-		(47.3	)		72.3		-			25.0
(Benefit) provision for income taxes		-		(1.0	)		18.3			0.1			17.4			-		(10.3	)		17.5		-			7.2
Equity in earnings of subsidiaries		29.1		47.9			-			(77.0	)		-			17.3		54.3			-		(71.6	)		-
Net income		29.1		29.1			48.9			(77.4	)		29.7			17.3		17.3			54.8		(71.6	)		17.8
Less: income attributable to noncontrolling interest		-		-			0.4			-			0.4			-		-			0.4		-			0.4
Income attributable to Jones	$	29.1	$	29.1		$	48.5		$	(77.4	)	$	29.3		$	17.3	$	17.3		$	54.4	$	(71.6	)	$	17.4

	Fiscal Nine Months Ended October 5, 2013														Fiscal Nine Months Ended September 29, 2012
	Jones		Issuers			Others			Elim-inations			Cons-olidated			Jones		Issuers			Others		Elim-inations			Cons-olidated
Net sales	$	-	$	1,674.4		$	1,189.6		$	(20.2	)	$	2,843.8		$	-	$	1,720.4		$	1,092.4	$	(20.5	)	$	2,792.3
Licensing income		-		0.4			31.2			-			31.6			-		-			33.0		-			33.0
Other revenues		-		0.6			-			-			0.6			-		0.9			-		-			0.9
Total revenues		-		1,675.4			1,220.8			(20.2	)		2,876.0			-		1,721.3			1,125.4		(20.5	)		2,826.2
Cost of goods sold		-		1,133.2			748.6			(14.2	)		1,867.6			-		1,141.5			663.6		(13.1	)		1,792.0
Gross profit		-		542.2			472.2			(6.0	)		1,008.4			-		579.8			461.8		(7.4	)		1,034.2
Selling, general and administrative expenses		-		627.0			297.1			(6.2	)		917.9			-		637.0			278.9		(6.3	)		909.6
Operating (loss) income		-		(84.8	)		175.1			0.2			90.5			-		(57.2	)		182.9		(1.1	)		124.6
Net interest expense and financing costs		-		42.4			3.9			-			46.3			-		88.7			0.5		-			89.2
Equity in loss of unconsolidated affiliate		-		-			(0.8	)		-			(0.8	)		-		-			1.4		-			1.4
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		-		(127.2	)		170.4			0.2			43.4			-		(145.9	)		183.8		(1.1	)		36.8
(Benefit) provision for income taxes		-		(39.6	)		55.6			-			16.0			-		(38.4	)		50.4		(0.4	)		11.6
Equity in earnings of subsidiaries		26.4		114.0			-			(140.4	)		-			25.1		132.6			-		(157.7	)		-
Net income		26.4		26.4			114.8			(140.2	)		27.4			25.1		25.1			133.4		(158.4	)		25.2
Less: income attributable to noncontrolling interest		-		-			1.0			-			1.0			-		-			0.9		-			0.9
Income attributable to Jones	$	26.4	$	26.4		$	113.8		$	(140.2	)	$	26.4		$	25.1	$	25.1		$	132.5	$	(158.4	)	$	24.3

Condensed Consolidating Statements of Other Comprehensive Income

(In millions)

	Fiscal Quarter Ended October 5, 2013															Fiscal Quarter Ended September 29, 2012
	Jones			Issuers			Others			Elim-inations			Cons-olidated			Jones			Issuers			Others			Elim-inations			Cons-olidated
Net income	$	29.1		$	29.1		$	48.9		$	(77.4	)	$	29.7		$	17.3		$	17.3		$	54.8		$	(71.6	)	$	17.8
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		(0.1	)		(0.1	)		(0.1	)		0.2			(0.1	)		(0.3	)		(0.3	)		(0.3	)		0.6			(0.3	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		(0.2	)		(0.2	)		(0.2	)		0.4			(0.2	)		-			-			-			-			-
Pension and postretirement liability adjustments, net of tax		0.2			0.2			-			(0.2	)		0.2			-			-			-			-			-
Foreign currency translation adjustments		14.1			14.1			14.1			(28.2	)		14.1			11.6			11.6			11.4			(23.0	)		11.6
Total other comprehensive income		14.0			14.0			13.8			(27.8	)		14.0			11.3			11.3			11.1			(22.4	)		11.3
Comprehensive income	$	43.1		$	43.1		$	62.7		$	(105.2	)	$	43.7		$	28.6		$	28.6		$	65.9		$	(94.0	)	$	29.1

	Fiscal Nine Months Ended October 5, 2013															Fiscal Nine Months Ended September 29, 2012
	Jones			Issuers			Others			Elim-inations			Cons-olidated			Jones			Issuers			Others			Elim-inations			Cons-olidated
Net income	$	26.4		$	26.4		$	114.8		$	(140.2	)	$	27.4		$	25.1		$	25.1		$	133.4		$	(158.4	)	$	25.2
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.5			0.5			0.5			(1.0	)		0.5			(0.1	)		(0.1	)		(0.1	)		0.2			(0.1	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		(0.4	)		(0.4	)		(0.4	)		0.8			(0.4	)		0.1			0.1			0.1			(0.2	)		0.1
Pension and postretirement liability adjustments, net of tax		0.5			0.5			-			(0.5	)		0.5			-			-			-			-			-
Foreign currency translation adjustments		0.9			0.9			0.9			(1.8	)		0.9			12.7			12.7			12.5			(25.2	)		12.7
Total other comprehensive income		1.5			1.5			1.0			(2.5	)		1.5			12.7			12.7			12.5			(25.2	)		12.7
Comprehensive income	$	27.9		$	27.9		$	115.8		$	(142.7	)	$	28.9		$	37.8		$	37.8		$	145.9		$	(183.6	)	$	37.9

Condensed Consolidating Statements of Cash Flows

(In millions)

	Fiscal Nine Months Ended October 5, 2013														Fiscal Nine Months Ended September 29, 2012
	Jones		Issuers			Others			Elim-inations			Cons-olidated			Jones		Issuers			Others			Elim-inations			Cons-olidated
Net cash (used in) provided by operating activities	$	-	$	(104.9	)	$	19.0		$	(6.6	)	$	(92.5	)	$	-	$	(46.5	)	$	72.2		$	(12.6	)	$	13.1
Cash flows from investing activities:
Capital expenditures		-		(11.8	)		(33.4	)		-			(45.2	)		-		(14.6	)		(42.5	)		-			(57.1	)
Notes receivable issued		-		(6.1	)		(1.0	)		-			(7.1	)		-		-			-			-			-
Acquisition of additional equity interest in GRI		-		-			(14.7	)		-			(14.7	)		-		-			-			-			-
Contingent consideration paid related to investment in GRI		-		-			-			-			-			-		-			(3.5	)		-			(3.5	)
Acquisition of Brian Atwood net of cash acquired		-		(0.5	)		-			-			(0.5	)		-		(5.0	)		0.6			-			(4.4	)
Proceeds from sale of trademark		-		-			-			-			-			-		-			5.0			-			5.0
Other		-		-			0.1			-			0.1			-		-			(0.1	)		-			(0.1	)
Net cash used in investing activities		-		(18.4	)		(49.0	)		-			(67.4	)		-		(19.6	)		(40.5	)		-			(60.1	)
Cash flows from financing activities:
Net increase in short-term borrowings		-		78.0			-			-			78.0			-		-			-			-			-
Issuance of 6.875% Senior Notes due 2019		-		-			-			-			-			-		103.5			-			-			103.5
Debt issuance costs		-		-			-			-			-			-		(2.3	)		-			-			(2.3	)
Costs related to revolving credit agreement		-		(0.3	)		-			-			(0.3	)		-		(0.3	)		-			-			(0.3	)
Dividends paid		-		(11.6	)		(6.6	)		6.6			(11.6	)		-		(11.7	)		(12.6	)		12.6			(11.7	)
Repurchase of common shares		-		(14.5	)		-			-			(14.5	)		-		(34.0	)		-			-			(34.0	)
Payments of acquisition consideration payable		-		(2.4	)		(7.0	)		-			(9.4	)		-		-			(14.6	)		-			(14.6	)
Other items, net		-		0.1			(2.4	)		-			(2.3	)		-		2.3			(2.1	)		-			0.2
Net cash provided by (used in) financing activities		-		49.3			(16.0	)		6.6			39.9			-		57.5			(29.3	)		12.6			40.8
Effect of exchange rates on cash		-		-			(1.8	)		-			(1.8	)		-		-			1.5			-			1.5
Net (decrease) increase in cash and cash equivalents		-		(74.0	)		(47.8	)		-			(121.8	)		-		(8.6	)		3.9			-			(4.7	)
Cash and cash equivalents, beginning		-		82.6			67.0			-			149.6			-		195.8			43.0			-			238.8
Cash and cash equivalents, ending	$	-	$	8.6		$	19.2		$	-		$	27.8		$	-	$	187.2		$	46.9		$	-		$	234.1