Kate Spade & Co (KATE) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 03, 2015	Oct. 23, 2015
Document and Entity Information
Entity Registrant Name	Kate Spade & Co
Entity Central Index Key	352,363
Document Type	10-Q
Document Period End Date	Oct. 3, 2015
Amendment Flag	false
Current Fiscal Year End Date	--01-02
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		127,694,546
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
Current Assets:
Cash and cash equivalents	$ 219,659	$ 184,044	$ 123,334
Accounts receivable - trade, net	58,893	90,091	62,275
Inventories, net	248,407	158,241	220,725
Deferred income taxes	148	616	369
Other current assets	36,266	41,508	40,077
Total current assets	563,373	474,500	446,780
Property and Equipment, Net	177,333	174,072	176,359
Goodwill	48,790	64,798	68,871
Intangibles, Net	87,204	90,327	92,689
Deferred Income Taxes	53	56	56
Note Receivable		88,976	87,853
Other Assets	45,535	33,609	33,038
Total Assets	922,288	926,338	905,646
Current Liabilities:
Short-term borrowings	4,499	10,459	7,446
Accounts payable	132,174	88,402	111,612
Accrued expenses	145,749	150,926	150,236
Income taxes payable	1,236	3,008	1,864
Total current liabilities	283,658	252,795	271,158
Long-Term Debt	397,114	400,284	401,351
Other Non-Current Liabilities	49,998	56,465	145,650
Deferred Income Taxes	$ 18,102	$ 17,183	$ 17,321
Commitments and Contingencies (Note 11)
Stockholders' Equity:
Preferred stock, $0.01 par value, authorized shares - 50,000,000, issued shares - none
Common stock, $1.00 par value, authorized shares - 250,000,000, issued shares - 176,437,234	$ 176,437	$ 176,437	$ 176,437
Capital in excess of par value	218,540	199,100	193,602
Retained earnings	1,096,896	1,145,643	1,021,668
Accumulated other comprehensive loss	(32,774)	(29,986)	(25,108)
Total Kate Spade & Company, stockholders' equity, excluding treasury stock	1,459,099	1,491,194	1,366,599
Common stock in treasury, at cost - 48,751,968, 49,065,798 and 49,327,555 shares	(1,285,683)	(1,291,583)	(1,296,433)
Total stockholders' equity	173,416	199,611	70,166
Total Liabilities and Stockholders' Equity	$ 922,288	$ 926,338	$ 905,646

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000,000	50,000,000	50,000,000
Preferred stock, issued shares	0	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, authorized shares	250,000,000	250,000,000	250,000,000
Common stock, issued shares	176,437,234	176,437,234	176,437,234
Common stock in treasury, shares	48,751,968	49,065,798	49,327,555

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net Sales	$ 277,328	$ 250,417	$ 813,762	$ 740,029
Cost of goods sold	107,514	93,103	317,743	289,982
Gross Profit	169,814	157,314	496,019	450,047
Selling, general & administrative expenses	157,497	153,767	503,282	463,499
Operating (Loss) Income	12,317	3,547	(7,263)	(13,452)
Other expense, net	(1,560)	(1,805)	(4,778)	(1,717)
Loss on settlement of note receivable			(9,873)
Loss on extinguishment of debt				(16,914)
Interest expense, net	(5,274)	(2,189)	(13,982)	(18,185)
(Loss) Income Before Provision (Benefit) for Income Taxes	5,483	(447)	(35,896)	(50,268)
Provision (benefit) for income taxes	973	(3,070)	3,904	(500)
(Loss) Income from Continuing Operations	4,510	2,623	(39,800)	(49,768)
Discontinued operations, net of income taxes	(2,207)	(11,753)	(4,577)	82,404
Net (Loss) Income	$ 2,303	$ (9,130)	$ (44,377)	$ 32,636
Basic earnings per share
(Loss) income from continuing operations (in dollars per share)	$ 0.04	$ 0.02	$ (0.31)	$ (0.40)
Net (Loss) Income (in dollars per share)	0.02	(0.07)	(0.35)	0.26
Diluted earnings per share
(Loss) Income from Continuing Operations (in dollars per share)	0.04	0.02	(0.31)	(0.40)
Net (Loss) Income (in dollars per share)	$ 0.02	$ (0.07)	$ (0.35)	$ 0.26
Weighted Average Shares, Basic (in shares)	127,682	126,971	127,611	125,972
Weighted Average Shares, Diluted (in shares)	128,118	127,610	127,611	125,972

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Net (Loss) Income	$ 2,303	$ (9,130)	$ (44,377)	$ 32,636
Other Comprehensive (Loss) Income, Net of Income Taxes:
Cumulative translation adjustment, net of income taxes of $0	1,023	(5,415)	(1,191)	(3,927)
Change in fair value of cash flow hedges, net of income taxes of $(884), $(185), $(480) and $264, respectively	(867)	430	(1,597)	(302)
Comprehensive (Loss) Income	$ 2,459	$ (14,115)	$ (47,165)	$ 28,407

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Cumulative translation adjustment, income taxes	$ 0	$ 0	$ 0	$ 0
Change in fair value of cash flow hedges, income taxes	$ (480)	$ 264	$ (884)	$ (185)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Cash Flows from Operating Activities:
Net (Loss) Income	$ (44,377)	$ 32,636
Adjustments to arrive at loss from continuing operations	4,577	(82,404)
Loss from continuing operations	(39,800)	(49,768)
Adjustments to reconcile loss from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization	36,837	39,240
Loss on asset disposals and impairments, including streamlining initiatives, net	8,631	2,653
Share-based compensation	19,440	31,772
Loss on settlement of note receivable	9,873
Loss on extinguishment of debt		16,914
Foreign currency losses, net	609	2,287
Other, net	3,863	1,358
Changes in assets and liabilities:
Decrease in accounts receivable - trade, net	30,588	2,324
Increase in inventories, net	(98,924)	(82,144)
Decrease (increase) in other current and non-current assets	7,740	(8,759)
Increase in accounts payable	46,642	9,071
Decrease in accrued expenses and other non-current liabilities	(7,512)	(22,522)
Net change in income tax assets and liabilities	1,331	(174)
Net cash used in operating activities of discontinued operations	(10,845)	(17,823)
Net cash provided by (used in) operating activities	8,473	(75,571)
Cash Flows from Investing Activities:
Proceeds from sales of property and equipment	816
Purchases of property and equipment	(40,775)	(67,534)
Payments for purchases of businesses		(32,268)
Proceeds from sales of joint venture interests, net	19,874
Payment for joint venture interest	(10,000)
Payments for in-store merchandise shops	(4,858)	(4,318)
Net proceeds from settlement of note receivable	75,128
Investments in and advances to equity investees	(5,000)
Other, net	347	(30)
Net cash provided by investing activities of discontinued operations	668	137,922
Net cash provided by investing activities	36,200	33,772
Cash Flows from Financing Activities:
Proceeds from borrowings under revolving credit agreement	2,000	5,063
Repayment of borrowings under revolving credit agreement	(8,000)	(4,960)
Principal payments under capital lease obligations	(339)	(303)
Proceeds from issuance of Term Loan		398,000
Repayment of Senior Notes		(390,693)
Repayment of Term Loan	(3,000)	(1,000)
Proceeds from exercise of stock options	2,428	41,410
Payment of deferred financing fees	(1,159)	(9,282)
Net cash (used in) provided by financing activities	(8,070)	38,235
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(988)	(3,324)
Net Change in Cash and Cash Equivalents	35,615	(6,888)
Cash and Cash Equivalents at Beginning of Period	184,044	130,222
Cash and Cash Equivalents	$ 219,659	$ 123,334

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Oct. 03, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The Condensed Consolidated Financial Statements of Kate Spade & Company and its wholly-owned and majority-owned subsidiaries (the “Company”) included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations; however, the Company believes that its disclosures are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. Information presented as of January 3, 2015 is derived from audited financial statements. The Company operates its kate spade new york and JACK SPADE brands through one operating segment in North America and four operating segments internationally: Japan, Asia (excluding Japan), Europe and Latin America. The Company’s Adelington Design Group reportable segment is also an operating segment. The three reportable segments described below represent the Company’s activities for which separate financial information is available and which is utilized on a regular basis by the Company’s chief operating decision maker (“CODM”) to evaluate performance and allocate resources. In identifying the Company’s reportable segments, the Company considers its management structure and the economic characteristics, products, customers, sales growth potential and long-term profitability of its operating segments. As such, the Company configured its operations into the following three reportable segments: · KATE SPADE North America segment – consists of the Company’s kate spade new york and JACK SPADE brands in North America. · KATE SPADE International segment – consists of the Company’s kate spade new york and JACK SPADE brands in International markets (principally in Japan, Asia (excluding Japan), Europe and Latin America ). · Adelington Design Group segment – consists of: (i) exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands and (ii) the licensed LIZWEAR and LIZ CLAIBORNE NEW YORK brands. In the second quarter of 2015, the Company entered into a new distribution agreement for its operations in Latin America, including in Brazil, which will leverage the network of its new distribution partner. As part of these actions, the Company completed the closure of its Company-operated stores during the third quarter of 2015 and no longer operates directly in Brazil. This initiative does not represent a strategic shift in the Company’s operations and therefore is not presented as discontinued operations. In the first quarter of 2015, the Company and Walton Brown, a subsidiary of The Lane Crawford Joyce Group (“LCJG”), formed two joint ventures focused on growing the Company’s business in Greater China. Following the formation of the joint ventures, both Kate Spade Hong Kong, Limited, a wholly-owned subsidiary of the Company, and Walton Brown each own 50.0% of the shares of KS China Co., Limited (“KSC”) and KS HMT Co., Limited (“KS HMT”), the holding company for the KATE SPADE businesses in Hong Kong, Macau and Taiwan. With an equal partnership structure, the Company and Walton Brown actively manage the businesses together. The joint ventures each have an initial term of 10 years. To effectuate the new joint ventures, (i) the Company acquired a 60.0% interest in KSC (in which the Company already owned a 40.0% interest) from E-Land Fashion China Holdings Limited (“E-Land”), its former partner in China, for an aggregate payment of $36.0 million, comprised of $10.0 million to acquire E-Land’s interest in KSC and $26.0 million to terminate related contracts and (ii) the Company received $21.0 million from LCJG for their 50.0% interests in the joint ventures, subject to adjustments. As a result, the Company no longer consolidates the operations for the businesses in Hong Kong, Macau and Taiwan, which it acquired on February 5, 2014 and had net sales of approximately $34.0 million in 2014 and $6.4 million in 2015, through the transaction date (see Note 2 – Acquisition). The Company accounts for its investments in the joint ventures under the equity method of accounting (see Note 14 – Additional Financial Information). Upon closing of the KS HMT joint venture, $16.0 million of goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan and $14.0 million of net assets of KS HMT were reclassified to Investment in unconsolidated subsidiary. The Company concluded the carrying values of the assets and liabilities for Hong Kong, Macau and Taiwan approximated fair value, due in part to the recent acquisition of those territories from Globalluxe Kate Spade HK Limited (“Globalluxe”). Accordingly, no gain or loss was recorded on formation of KS HMT. The $26.0 million charge to terminate contracts associated with the KSC joint venture is recorded in Selling, general & administrative expenses (“SG&A”) on the accompanying Condensed Consolidated Statement of Operations. On January 29, 2015, the Company announced that it is focusing its business on kate spade new york. As part of this business model, the Company discontinued KATE SPADE SATURDAY as a standalone business. The Company also announced a new business model for JACK SPADE to leverage the distribution network of its retail partners and expand its e-commerce platform. As part of these actions, substantially all of KATE SPADE SATURDAY’s Company-owned and three partnered store locations were closed by the end of the second quarter of 2015. The Company also closed JACK SPADE’s Company-owned stores by the end of the second quarter of 2015. These initiatives do not represent a strategic shift in the Company’s operations and therefore are not reported as discontinued operations. On February 3, 2014, the Company sold 100.0% of the capital stock of Lucky Brand Dungarees, Inc. (“Lucky Brand”) to LBD Acquisition Company, LLC (“LBD Acquisition”), a Delaware limited liability company and affiliate of Leonard Green & Partners, L.P., for an aggregate payment of $225.0 million, comprised of $140.0 million cash consideration and a three-year $85.0 million note (the “Lucky Brand Note”) issued by the successor of LBD Acquisition, Lucky Brand Dungarees, LLC (“Lucky Brand LLC”) at closing, subject to working capital and other adjustments. On March 4, 2015, the Company and Lucky Brand LLC entered into a transfer and settlement agreement (the “Lucky Brand Note Agreement”) to settle the Lucky Brand Note in full, prior to its maturity. Pursuant to the terms of the Lucky Brand Note Agreement, Lucky Brand LLC paid the Company $81.0 million to settle the principal balance of the Lucky Brand Note and related unpaid interest. Giving effect to the Lucky Brand Note Agreement, since the date of issuance, the Company collected aggregate principal and interest under the Lucky Brand Note of $89.0 million. The transactions contemplated by the Lucky Brand Note Agreement closed on March 4, 2015, and the Company recognized a $9.9 million loss on the settlement of the Lucky Brand Note in the first quarter of 2015. On November 6, 2013, the Company completed the sale of its Juicy Couture brandname and related intellectual property assets (the “Juicy Couture IP”) to an affiliate of Authentic Brands Group (“ABG”) for a total purchase price of $195.0 million. An additional payment may be payable to the Company in an amount of up to $10.0 million if certain conditions regarding future performance are achieved. The Juicy Couture IP was licensed back to the Company until December 31, 2014 to accommodate the wind-down of operations. Juicy Couture paid guaranteed minimum royalties to ABG of $10.0 million during the term of the wind-down license. On March 29, 2014, the Company entered into an agreement to sell its Juicy Couture business in Europe to an operating partner of ABG for $8.6 million, subject to working capital adjustments. The transaction closed on April 7, 2014. On November 19, 2013, the Company entered into an agreement to terminate the lease of the Juicy Couture flagship store on Fifth Avenue in New York City in exchange for $51.0 million. On May 15, 2014, the Company surrendered such premises to the landlord and received proceeds of $45.8 million (net of taxes and fees), in addition to $5.0 million previously received by the Company. The activities of the Company’s former Lucky Brand and Juicy Couture businesses have been segregated and reported as discontinued operations for all periods presented. Summarized financial data for the aforementioned brands that are classified as discontinued operations are provided in Note 3 – Discontinued Operations and Disposals. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the reported interim periods. Results of operations for interim periods are not necessarily indicative of results for the full year. Management has evaluated events or transactions that have occurred from the balance sheet date through the date the Company issued these financial statements. NATURE OF OPERATIONS Kate Spade & Company is engaged primarily in the design and marketing of a broad range of accessories and apparel. The Company’s fiscal year ends on the Saturday closest to December 31. The 2015 fiscal year, ending January 2, 2016, reflects a 52-week period, resulting in a 13-week, three-month period and a 39-week, nine-month period for the third quarter. The 2014 fiscal year, ending January 3, 2015, reflects a 53-week period, resulting in a 13-week, three-month period and a 40-week, nine-month period for the third quarter. PRINCIPLES OF CONSOLIDATION The Condensed Consolidated Financial Statements include the accounts of the Company. All inter-company balances and transactions have been eliminated in consolidation. USE OF ESTIMATES AND CRITICAL ACCOUNTING POLICIES The Company’s critical accounting policies are those that are most important to the portrayal of its financial condition and results of operations in conformity with US GAAP. These critical accounting policies are applied in a consistent manner throughout all periods presented. The Company’s critical accounting policies are summarized in Note 1 of Notes to Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended January 3, 2015. The application of critical accounting policies requires that the Company make estimates and assumptions about future events and apply judgments that affect the reported amounts of revenues and expenses. Estimates by their nature are based on judgments and available information. Therefore, actual results could materially differ from those estimates under different assumptions and conditions. The Company continues to monitor the critical accounting policies to ensure proper application of current rules and regulations. During the third quarter of 2015, there were no significant changes in the critical accounting policies discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On January 4, 2015, the first day of the Company’s 2015 fiscal year, the Company adopted new accounting guidance on the reporting of discontinued operations, which revised the threshold for a disposal to qualify as a discontinued operation and required new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation (see Note 3 – Discontinued Operations and Disposals) .

ACQUISITION

ACQUISITION	9 Months Ended
	Oct. 03, 2015
ACQUISITION
ACQUISITION	2. ACQUISITION On February 5, 2014, the Company, through its Kate Spade, LLC and Kate Spade Hong Kong Ltd. subsidiaries, reacquired existing KATE SPADE businesses in Southeast Asia from Globalluxe for a purchase price of $32.3 million, including $2.3 million for working capital and other previously agreed adjustments. The Company’s distribution partner operates the KATE SPADE businesses in Singapore, Malaysia, Indonesia and Thailand through distribution agreements and funded approximately $1.5 million to Globalluxe to acquire operating assets in those regions. Globalluxe and its distribution partners operated six stores and one concession in Hong Kong, one concession in Taiwan, one store in Macau, two stores and one concession in Singapore, two stores in Malaysia, three stores and one concession in Indonesia, and two stores and six concessions in Thailand. Prior to the acquisition from Globalluxe, the Company maintained wholesale distribution to Globalluxe. Following the transaction, the Company maintains wholesale distribution to distributors who operate the businesses in Singapore, Malaysia, Indonesia and Thailand. From the date of the acquisition, the Company directly owned and operated the businesses in Hong Kong, Macau and Taiwan and continued to do so until the conversion of those businesses to a joint venture with Walton Brown in the first quarter of 2015. The allocation of the purchase price to the assets acquired and liabilities assumed was based upon the estimated fair values at the date of acquisition. The excess of the purchase price over the net tangible and identifiable intangible assets was reflected as goodwill. Accordingly, the Company recorded $21.8 million of goodwill, which was reflected in the KATE SPADE International reportable segment until the businesses in Hong Kong, Macau and Taiwan were converted to the joint venture with Walton Brown, at which time $16.0 million of such goodwill was reclassified to Investment in unconsolidated subsidiary. The following table summarizes the estimated fair values of the assets acquired as of the acquisition date: In thousands Assets acquired: Current assets $ Property and equipment, net Goodwill and intangibles, net (a) Other assets Total assets acquired $ (a) In the first quarter of 2015, $16.0 million of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan was reclassified to Investment in unconsolidated subsidiary upon closing of the KS HMT joint venture with Walton Brown (see Note 1 – Basis of Presentation). The following table presents details of the acquired intangible assets: In thousands Useful Life Estimated Fair Value Reacquired distribution rights 1.7 years $ Retail customer list 3 years

DISCONTINUED OPERATIONS AND DIS

DISCONTINUED OPERATIONS AND DISPOSALS	9 Months Ended
	Oct. 03, 2015
DISCONTINUED OPERATIONS AND DISPOSALS
DISCONTINUED OPERATIONS AND DISPOSALS	3. DISCONTINUED OPERATIONS AND DISPOSALS Discontinued Operations The Company completed the sale of Lucky Brand in February of 2014 and substantially completed the wind-down operations of the Juicy Couture business in the second quarter of 2014. The Company recorded pretax (charges) income of $(1.4) million and $131.0 million ($(1.4) million and $128.0 million, after tax) during the nine months ended October 3, 2015 and October 4, 2014, respectively, and $0.1 million and $(2.8) million ($0.1 million and $(5.8) million, after tax) during the three months ended October 3, 2015 and October 4, 2014, respectively, to reflect the estimated difference between the carrying value of the net assets disposed and their estimated fair value, less costs to dispose, including transaction costs. Summarized results of discontinued operations are as follows: Nine Months Ended Three Months Ended October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) In thousands Net sales $ $ $ ) $ Loss before (benefit) provision for income taxes $ ) $ ) $ ) $ ) (Benefit) provision for income taxes ) ) Loss from discontinued operations, net of income taxes $ ) $ ) $ ) $ ) (Loss) gain on disposal of discontinued operations, net of income taxes $ ) $ $ $ ) The Company recorded charges of $3.5 million and $25.4 million during the nine months ended October 3, 2015 and October 4, 2014, respectively, and $2.9 million and $0.3 million during the three months ended October 3, 2015 and October 4, 2014, respectively, related to its streamlining initiatives within Discontinued operations, net of income taxes. Other As discussed in Note 1 – Basis of Presentation, the Company completed substantially all of the closures of its KATE SPADE SATURDAY operations and JACK SPADE retail stores in the second quarter of 2015. Although such dispositions are individually significant, they do not represent a strategic shift in the Company’s operations and are not reflected as discontinued operations. The Company recorded pretax losses of $21.1 million and $20.4 million during the nine months ended October 3, 2015 and October 4, 2014, respectively, and $3.5 million and $6.2 million during the three months ended October 3, 2015 and October 4, 2014, respectively, related to the KATE SPADE SATURDAY and JACK SPADE retail stores that were substantially disposed in the second quarter of 2015.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Oct. 03, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS’ EQUITY Activity for the nine months ended October 3, 2015 in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost accounts was as follows: In thousands Capital in Excess of Par Value Retained Earnings Common Stock in Treasury, at Cost Balance as of January 3, 2015 $ $ $ ) Net loss -- ) -- Exercise of stock options -- ) Restricted shares issued, net of cancellations and shares withheld for taxes -- ) Share-based compensation -- -- Balance as of October 3, 2015 $ $ $ ) Activity for the nine months ended October 4, 2014 in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost accounts was as follows: In thousands Capital in Excess of Par Value Retained Earnings Common Stock in Treasury, at Cost Balance as of December 28, 2013 $ $ $ ) Net income -- -- Exercise of stock options -- ) Restricted shares issued, net of cancellations and shares withheld for taxes -- ) Share-based compensation -- -- Balance as of October 4, 2014 $ $ $ ) Accumulated other comprehensive (loss) income consisted of the following: In thousands October 3, 2015 January 3, 2015 October 4, 2014 Cumulative translation adjustment, net of income taxes of $0 $ ) $ ) $ ) Unrealized gains on cash flow hedging derivatives, net of income taxes of $284, $1,168 and $417, respectively Accumulated other comprehensive loss, net of income taxes $ ) $ ) $ ) The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the nine months ended October 3, 2015: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of January 3, 2015 $ ) $ Other comprehensive loss before reclassification ) ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive loss ) ) Balance as of October 3, 2015 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the nine months ended October 4, 2014: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of December 28, 2013 $ ) $ Other comprehensive (loss) income before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive loss ) ) Balance as of October 4, 2014 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the three months ended October 3, 2015: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of July 4, 2015 $ ) $ Other comprehensive income (loss) before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive income (loss) ) Balance as of October 3, 2015 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the three months ended October 4, 2014: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of July 5, 2014 $ ) $ Other comprehensive (loss) income before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive (loss) income ) Balance as of October 4, 2014 $ ) $

INVENTORIES, NET

INVENTORIES, NET	9 Months Ended
	Oct. 03, 2015
INVENTORIES, NET
INVENTORIES, NET	5. INVENTORIES, NET Inventories, net consisted of the following: In thousands October 3, 2015 January 3, 2015 October 4, 2014 Raw materials and work in process $ $ $ Finished goods Total inventories, net $ $ $

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Oct. 03, 2015
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET	6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: In thousands October 3, 2015 January 3, 2015 October 4, 2014 Land and buildings $ $ $ Machinery and equipment Furniture and fixtures Leasehold improvements Less: Accumulated depreciation and amortization Total property and equipment, net $ $ $ Depreciation and amortization expense on property and equipment for the nine months ended October 3, 2015 and October 4, 2014 was $27.0 million and $26.5 million, respectively, which included depreciation for property and equipment under capital leases of $0.6 million. Depreciation and amortization expense on property and equipment for the three months ended October 3, 2015 and October 4, 2014 was $9.3 million and $9.4 million, respectively, which included depreciation for property and equipment under capital leases of $0.2 million. Property and equipment under capital leases was $9.3 million as of October 3, 2015, January 3, 2015 and October 4, 2014.

GOODWILL AND INTANGIBLES, NET

GOODWILL AND INTANGIBLES, NET	9 Months Ended
	Oct. 03, 2015
GOODWILL AND INTANGIBLES, NET
GOODWILL AND INTANGIBLES, NET	7. GOODWILL AND INTANGIBLES, NET The following tables disclose the carrying value of all intangible assets: In thousands Weighted Average Amortization Period October 3, 2015 January 3, 2015 October 4, 2014 Amortized intangible assets: Gross carrying amount: Owned trademarks (a) -- $ $ $ Customer relationships 12 years Merchandising rights 4 years Reacquired rights 3 years Other 4 years Subtotal Accumulated amortization: Owned trademarks ) ) ) Customer relationships ) ) ) Merchandising rights ) ) ) Reacquired rights ) ) ) Other ) ) ) Subtotal ) ) ) Net: Owned trademarks -- -- Customer relationships Merchandising rights Reacquired rights Other Total amortized intangible assets, net Unamortized intangible assets: Owned trademarks Total intangible assets $ $ $ Goodwill (b) $ $ $ (a) The change in the balance reflected a non-cash impairment charge of $1.5 million related to the TRIFARI trademark recorded in the fourth quarter of 2014. (b) The decrease in the balance primarily reflected the reclassification of $16.0 million of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 - Acquisition). Amortization expense of intangible assets was $6.9 million and $6.5 million for the nine months ended October 3, 2015 and October 4, 2014, respectively, and $2.4 million and $1.9 million for the three months ended October 3, 2015 and October 4, 2014, respectively. The estimated amortization expense for intangible assets for the next five fiscal years is as follows: Fiscal Year Amortization Expense (In millions) 2015 $ 2016 2017 2018 2019 The changes in carrying amount of goodwill for the nine months ended October 3, 2015 were as follows: In thousands KATE SPADE International Adelington Design Group Total Balance as of January 3, 2015 $ $ $ Reclassification of goodwill to Investment in unconsolidated subsidiary (a) ) -- ) Translation adjustment ) Balance as of October 3, 2015 $ $ $ (a) Represents the reclassification of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 – Acquisition). The changes in carrying amount of goodwill for the nine months ended October 4, 2014 were as follows: In thousands KATE SPADE International Adelington Design Group Total Balance as of December 28, 2013 $ $ $ Acquisition of existing KATE SPADE businesses in Southeast Asia -- Translation adjustment ) ) ) Balance as of October 4, 2014 $ $ $ The Company completed its annual goodwill impairment tests as of the first day of the third quarter of 2015. No impairment was recognized as of that date.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 03, 2015
INCOME TAXES
INCOME TAXES	8 . INCOME TAXES During the third quarter of 2015 and 2014, the Company continued to record a full valuation allowance on deferred tax assets in most jurisdictions due to the combination of its history of pretax losses and its inability to carry back tax losses or credits. The Company’s provision for income taxes for the nine and three months ended October 3, 2015, primarily represented increases in deferred tax liabilities for indefinite-lived intangible assets, current tax on operations in certain jurisdictions and an increase in the accrual for interest related to uncertain tax positions. The Company’s benefit for income taxes for the nine and three months ended October 4, 2014 primarily represented an income tax benefit within continuing operations due to the recognition of tax expense within discontinued operations, partially offset by increases in deferred tax liabilities for indefinite-lived intangible assets, current tax on operations in certain jurisdictions and an increase in the accrual for interest related to uncertain tax positions. During the nine and three months ended October 4, 2014, the Company recorded a tax charge of $3.0 million within discontinued operations related to the dispositions of the Lucky Brand business and Juicy Couture IP and recognized an income tax benefit of a corresponding amount within continuing operations as a result of an intra-period allocation. The number of years with open tax audits varies depending upon the tax jurisdiction. The major tax jurisdictions include the US, Japan, United Kingdom and Canada. The Company is no longer subject to US Federal examination by the Internal Revenue Service (“IRS”) for the years before 2010 and, with a few exceptions, this applies to tax examinations by state authorities as well. Although the years before 2010 are considered to be closed, the IRS and other taxing authorities can also subject the Company’s net operating loss carryforwards to further review when such net operating loss carryforwards are utilized. The Company expects a reduction in the liability for unrecognized tax benefits, inclusive of interest and penalties, by an amount between $0.9 million and $3.2 million within the next 12 months due to either settlement or the expiration of the statute of limitations. As of October 3, 2015, uncertain tax positions of $9.2 million exist, which would provide an effective rate impact in the future if subsequently recognized.

DEBT AND LINES OF CREDIT

DEBT AND LINES OF CREDIT	9 Months Ended
	Oct. 03, 2015
DEBT AND LINES OF CREDIT
DEBT AND LINES OF CREDIT	9. DEBT AND LINES OF CREDIT Long-term debt consisted of the following: In thousands October 3, 2015 January 3, 2015 October 4, 2014 Term Loan credit facility, due April 2021 (a) $ $ $ Revolving credit facility -- Capital lease obligations Total debt Less: Short-term borrowings (b) Long-term debt $ $ $ (a) The balance as of October 3, 2015, January 3, 2015 and October 4, 2014 included an unamortized debt discount of $1.6 million, $1.8 million and $1.9 million, respectively. (b) At October 3, 2015, the balance consisted of $4.0 million of Term Loan amortization payments and obligations under capital leases. At January 3, 2015 and October 4, 2014, the balance consisted of $4.0 million of Term Loan amortization payments, outstanding borrowings under the Company’s amended and restated revolving credit facility (as amended to date, the “ABL Facility”) and obligations under capital leases. Senior Notes On April 14, 2014, the Company redeemed $37.2 million aggregate principal amount of its former 10.5% Senior Secured Notes due April 2019 (the “Senior Notes”) at a price equal to 103.0% of their aggregate principal amount, plus accrued interest using cash on hand. On May 12, 2014, the Company redeemed the remaining $334.8 million aggregate principal amount of the Senior Notes at a price equal to 105.25% of their aggregate principal amount, plus accrued interest, with the proceeds from the issuance of term loans in an aggregate principal amount of $400.0 million (collectively, the “Term Loan”). The Company recognized a $16.9 million loss on extinguishment of debt related to these transactions in the second quarter of 2014. Term Loan On April 10, 2014, the Company entered into a term loan credit agreement (the “Term Loan Credit Agreement”), which provides for the Term Loan in an aggregate principal amount of $400.0 million, maturing in April 2021. The Term Loan is subject to amortization payments of $1.0 million per quarter, which commenced on October 1, 2014, with the balance due at maturity. Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to LIBOR (with a floor of 1.0%) plus 3.0% per annum, payable in cash. The Term Loan was funded on May 12, 2014, and the Company used $354.8 million of the net proceeds of $392.0 million from the Term Loan to redeem the Company’s remaining outstanding Senior Notes on May 12, 2014, as discussed above. The Term Loan and other obligations under the Term Loan Credit Agreement are guaranteed by certain of the Company’s restricted subsidiaries (the “Guarantors”), which include (i) all of the Company’s existing material domestic restricted subsidiaries, (ii) all future wholly owned restricted subsidiaries of the Company (other than foreign subsidiaries, CFCs, CFC holding companies and subsidiaries of any of the foregoing and certain immaterial subsidiaries) and (iii) all future non-wholly owned restricted subsidiaries of the Company that guarantee capital markets debt securities or term indebtedness of the Company or any Guarantor. The Term Loan Credit Agreement permits the Company to incur, from time to time, additional incremental term loans under the Term Loan Credit Agreement (subject to obtaining commitments for such term loans) and other pari passu lien indebtedness, subject to an overall limit of $100.0 million plus such additional amount that would cause the Company’s consolidated net total secured debt ratio not to exceed 3.75 to 1.0 on a pro forma basis. Any such incremental term loans and other pari passu lien indebtedness are permitted to share in the collateral described below on a pari passu basis with the Term Loan. The Term Loan may be prepaid, at the Company’s option, in whole or in part, at any time at par plus accrued interest; provided that if the Term Loan is prepaid or refinanced in connection with a repricing transaction within six months after the initial borrowing, a 1.0% penalty is applicable. Subject to certain permitted liens and other exclusions and exceptions, the Term Loan is secured (i) on a first-priority basis by a lien on the Company’s KATE SPADE trademarks and certain related rights owned by the Company and the Guarantors (the “Term Priority Collateral”) and (ii) by a second-priority security interest in the Company’s and the Guarantors’ other assets (the “ABL Priority Collateral” and together with the Term Priority Collateral, the “Collateral”), which secure the Company’s ABL Facility on a first-priority basis. The Term Loan is required to be prepaid in an amount equal to 50.0% of the Company’s Excess Cash Flow (as defined in the Term Loan Credit Agreement) with respect to each fiscal year ending on or after January 2, 2016. The percentage of Excess Cash Flow that must be so applied is reduced to 25.0% if the Company’s consolidated net total debt ratio is less than 2.75 to 1.0 and to 0% if the Company’s consolidated net total debt ratio is less than 2.25 to 1.0. Lenders may elect not to accept mandatory prepayments. The Term Loan Credit Agreement limits the Company’s and restricted subsidiaries’ ability to, among other things, incur indebtedness, make dividend payments or other restricted payments, create liens, sell assets (including securities of the Company’s restricted subsidiaries), permit certain restrictions on dividends and transfers of assets by the Company’s restricted subsidiaries, enter into certain types of transactions with shareholders and affiliates and enter into mergers, consolidations or sales of all or substantially all of the Company’s assets, in each case subject to certain designated exceptions and qualifications. The Term Loan Credit Agreement also contains certain affirmative covenants and events of default that are customary for credit agreements governing term loans. ABL Facility In May 2014, the Company terminated its prior revolving credit agreement and completed a fourth amendment to and restatement of the ABL Facility, which extended the maturity date of the facility to May 2019. Availability under the ABL Facility shall be an amount equal to the lesser of $200.0 million and a borrowing base that is computed monthly and comprised of the Company’s eligible cash, accounts receivable and inventory. The ABL Facility also includes a swingline subfacility of $30.0 million, a multicurrency subfacility of $35.0 million and the option to expand the facility by up to $100.0 million under certain specified conditions. A portion of the ABL Facility up to $125.0 million is available for the issuance of letters of credit, and standby letters of credit may not exceed $40.0 million in the aggregate. The ABL Facility allows two borrowing options: one borrowing option with interest rates based on euro currency rates and a second borrowing option with interest rates based on the alternate base rate, as defined in the ABL Facility, with a spread based on the aggregate availability under the ABL Facility. The ABL Facility is guaranteed by substantially all of the Company’s current domestic subsidiaries, certain of the Company’s future domestic subsidiaries and certain of the Company’s foreign subsidiaries. The ABL Facility is secured by a first-priority lien on substantially all of the assets of the Company and the other borrowers and guarantors (other than certain trademark collateral in which the lenders under the Term Loan Credit Agreement have a first-priority lien, which trademark collateral secures the obligations under the ABL Facility on a second-priority lien basis). The ABL Facility limits the Company’s, and its restricted subsidiaries’ ability to, among other things, incur additional indebtedness, create liens, undergo certain fundamental changes, make investments, sell certain assets, enter into hedging transactions, make restricted payments and pay certain indebtedness, enter into transactions with affiliates, permit certain restrictions on dividends and transfers of assets by the Company’s restricted subsidiaries and enter into sale and leaseback transactions. These covenants are subject to important exceptions and qualifications, and many of the covenants are subject to an exception based on meeting the fixed charge coverage ratio and/or certain minimum availability tests. The ABL Facility also contains representations and warranties (some of which are brought down to the time of each borrowing made), affirmative covenants and events of default that are customary for asset-based revolving credit agreements. In addition, the terms and conditions of the ABL Facility: (i) provide for a decrease in fees and interest rates compared to the Company’s previous asset-based revolving loan facility (including eurocurrency spreads of 1.50% to 2.00% over LIBOR, depending on the level of aggregate availability), (ii) require the Company to maintain pro forma compliance with a fixed charge coverage ratio of 1.0:1.0 on a trailing four-quarter basis if availability under the ABL Facility for three consecutive business days falls below the greater of $15.0 million and 10.0% of the lesser of the aggregate commitments and the borrowing base and (iii) require the Company to apply substantially all cash collections to reduce outstanding borrowings under the ABL Facility if availability under the ABL Facility for three consecutive business days falls below the greater of $20.0 million and 12.5% of the lesser of the aggregate commitments and the borrowing base. The funds available under the ABL Facility may be used for working capital and for general corporate purposes. The Company currently believes that the financial institutions under the ABL Facility are able to fulfill their commitments, although such ability to fulfill commitments will depend on the financial condition of the Company’s lenders at the time of borrowing. As of October 3, 2015, availability under the Company’s ABL Facility was as follows: In thousands Total Facility (a) Borrowing Base (a) Outstanding Borrowings Letters of Credit Issued Available Capacity Excess Capacity (b) Revolving credit facility (a) $ $ $ -- $ $ $ (a) Availability under the ABL Facility is the lesser of $200.0 million or a borrowing base that is computed monthly and comprised of the Company’s eligible cash, accounts receivable and inventory. (b) Excess capacity represents available capacity reduced by the minimum required aggregate borrowing availability under the ABL Facility of $20.0 million. Capital Lease Obligations In the second quarter of 2013, the Company entered into a sale-leaseback agreement for its office building in North Bergen, NJ, which included a sale price of $8.7 million and total lease payments of $26.9 million over a 12-year lease term. The Company’s capital lease obligations of $8.2 million, $8.6 million and $8.7 million as of October 3, 2015, January 3, 2015 and October 4, 2014, respectively, included $0.5 million, $0.5 million and $0.4 million within Short-term borrowings on the accompanying Condensed Consolidated Balance Sheets.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Oct. 03, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	10. FAIR VALUE MEASUREMENTS The Company utilizes the following three level hierarchy that defines the assumptions used to measure certain assets and liabilities at fair value: Level 1 – Quoted market prices in active markets for identical assets or liabilities; Level 2 – Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 – Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. The following table presents the financial assets and liabilities the Company measured at fair value on a recurring basis, based on the fair value hierarchy: Level 2 In thousands October 3, 2015 January 3, 2015 October 4, 2014 Financial Assets: Derivatives $ $ $ Financial Liabilities: Derivatives $ ) $ -- $ -- The fair values of the Company’s Level 2 derivative instruments were primarily based on observable forward exchange rates. Unobservable quantitative inputs used in the valuation of the Company’s derivative instruments included volatilities, discount rates and estimated credit losses. The following table presents the non-financial assets the Company measured at fair value on a non-recurring basis in 2015, based on such fair value hierarchy: Total Losses Net Carrying Value as of Fair Value Measured and Recorded at Reporting Date Using: Nine Months Ended Three Months Ended In thousands October 3, 2015 Level 1 Level 2 Level 3 October 3, 2015 October 3, 2015 Property and equipment $ -- $ -- $ -- $ -- $ $ -- As a result of the Company’s decision to close all KATE SPADE SATURDAY retail operations and JACK SPADE retail stores and no longer directly operate its Company-owned stores in Brazil (see Note 12 – Streamlining Initiatives), the Company determined that a portion of the assets exceeded their fair values, resulting in impairment charges, which were recorded in SG&A on the accompanying Condensed Consolidated Statements of Operations. The following table presents the non-financial assets the Company measured at fair value on a non-recurring basis in 2014, based on such fair value hierarchy: Total Losses Net Carrying Value as of Fair Value Measured and Recorded at Reporting Date Using: Nine Months Ended Three Months Ended In thousands October 4, 2014 Level 1 Level 2 Level 3 October 4, 2014 October 4, 2014 Property and equipment $ $ -- $ -- $ -- $ $ -- The fair values of the Company’s Level 3 Property and equipment are based on either a market approach or an income approach using the Company’s forecasted cash flows over the estimated useful lives of such assets, as appropriate. The fair values and carrying values of the Company’s debt instruments are detailed as follows: October 3, 2015 January 3, 2015 October 4, 2014 In thousands Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Term Loan credit facility, due April 2021 (a) $ $ $ $ $ $ Revolving credit facility (b) -- -- (a) Carrying values include unamortized debt discount. (b) Borrowings under the revolving credit facility bear interest based on market rate; accordingly its fair value approximates its carrying value. The fair values of the Company’s debt instruments were estimated using market observable inputs, including quoted prices in active markets, market indices and interest rate measurements. Within the hierarchy of fair value measurements, these are Level 2 fair values. The fair values of cash and cash equivalents, receivables and accounts payable approximate their carrying values due to the short-term nature of these instruments. As of January 3, 2015, the carrying amount of the Lucky Brand Note was $89.0 million, including initial principal of $85.0 million and accrued payment in kind of $4.0 million. In evaluating its fair value, the Company considered various facts and circumstances, including (i) known changes in market values of comparable instruments in active markets; (ii) the inability to transfer the Lucky Brand Note and the lack of an active market to do so; and (iii) entity specific factors related to the issuer of the Lucky Brand Note including the absence of any factors that would suggest that the counterparty may be unable to meet its obligations under the terms of the Lucky Brand Note. Based on those factors and the inherent subjectivity in evaluating fair value of the Lucky Brand Note and similar instruments, the Company concluded that providing a range of fair value was appropriate. The Company determined the range of fair value of the Lucky Brand Note, including accrued payment in kind, to be between $79.0 million and $89.0 million. The low end of such range was determined using two methods. The Company reviewed the average change in fair value of comparable instruments in active markets and also estimated an implied discount based on the non-transferrable nature of the Lucky Brand Note. The high end of the range considered entity specific circumstances and assumed Lucky Brand LLC would pay the Lucky Brand Note in full. As of October 4, 2014, the estimated fair value of the Lucky Brand Note approximated its carrying value.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Oct. 03, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES Buying/Sourcing Pursuant to a buying/sourcing agency agreement, Li & Fung Limited (“Li & Fung”) currently acts as a global buying/sourcing agent. The Company pays Li & Fung an agency commission based on the cost of product purchases using Li & Fung as its buying/sourcing agent. The Company is obligated to use Li & Fung as its buying/sourcing agent for a minimum value of apparel inventory purchases each year. In the first quarter of 2015, the Company amended its buying/sourcing agency agreement with Li & Fung, which included a reduction of the annual minimum value of inventory purchases and a change in the commission rates for certain products, with an initial term through March 31, 2018. The Company’s agreement with Li & Fung is not exclusive. Leases In connection with the disposition of the Lucky Brand business, LIZ CLAIBORNE Canada retail stores, the LIZ CLAIBORNE branded outlet stores in the US and Puerto Rico and certain Mexx Canada retail stores, an aggregate of 277 store leases were assigned to or assumed by third parties, for which the Company or certain subsidiaries of the Company may remain secondarily liable for the remaining obligations on 140 such leases. As of October 3, 2015, the future aggregate payments under these leases amounted to $100.2 million and extended to various dates through 2025. During the second quarter of 2013, the Company entered into a sale-leaseback agreement for its North Bergen, NJ office with a 12-year term and two five-year renewal options. This leaseback was classified as a capital lease and recorded at fair value. As of October 3, 2015, the estimated future minimum lease payments under the noncancelable capital lease were as follows: In millions 2015 $ 2016 2017 2018 2019 Thereafter Total Less: Amounts representing interest and executory costs ) Net present values Less: Capital lease obligations included in short-term debt ) Long-term capital lease obligations $ Other The Company is a party to several pending legal proceedings and claims. Although the outcome of any such actions cannot be determined with certainty, management is of the opinion that the final outcome of any of these actions should not have a material adverse effect on the Company’s financial position, results of operations, liquidity or cash flows.

STREAMLINING INITIATIVES

STREAMLINING INITIATIVES	9 Months Ended
	Oct. 03, 2015
STREAMLINING INITIATIVES
STREAMLINING INITIATIVES	12. STREAMLINING INITIATIVES 2015 Actions In the second quarter of 2015, the Company announced that it signed a new distribution agreement for its operations in Latin America, including in Brazil, which will leverage the network of its new partner. As part of these actions, the Company completed the closure of its Company-operated stores during the third quarter of 2015 and no longer operates directly in Brazil. The Company recorded charges related to contract terminations, severance, non-cash asset impairment charges and other costs related to these actions. On January 29, 2015, the Company announced that it is focusing its business on kate spade new york. As part of this business model, the Company discontinued KATE SPADE SATURDAY as a standalone business. The Company also announced a new business model for JACK SPADE to leverage the distribution network of its retail partners and expand its e-commerce platform. As part of these actions, KATE SPADE SATURDAY’s Company-owned and three partnered store locations were substantially closed by the end of the second quarter of 2015. The Company also completed the closure of JACK SPADE’s Company-owned stores. These actions resulted in restructuring charges related to contract assignment and termination costs, severance and non-cash asset impairment charges and were substantially completed in the second quarter of 2015. 2014 Actions In connection with the sale of the Juicy Couture IP and former Lucky Brand business, the Board of Directors of the Company approved various changes to its senior management, which resulted in charges related to severance in the first quarter of 2014. As discussed in Note 17 – Share-Based Compensation, the Company’s Compensation Committee approved the continued vesting of unvested options and restricted stock awards without any required service period or the accelerated vesting of such awards for former employees, including former executive officers. In addition, as a result of the reduction of office space in the Company’s former New York office, the Company recorded charges related to contract terminations and other charges in the first quarter of 2014. For the nine and three months ended October 3, 2015 and October 4, 2014 , expenses associated with the Company’s streamlining actions were primarily recorded in SG&A on the accompanying Condensed Consolidated Statements of Operations and impacted reportable segments and Other as follows: Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) KATE SPADE North America $ $ $ $ KATE SPADE International -- -- Adelington Design Group ) Other (a) Total $ $ $ $ (a) Other consists of unallocated corporate restructuring costs and Juicy Couture and Lucky Brand restructuring charges principally related to distribution functions that are not directly attributable to Juicy Couture or Lucky Brand and therefore have not been included in discontinued operations. A summary rollforward of the liability for streamlining initiatives is as follows: In thousands Payroll and Related Costs Contract Termination Costs Asset Write-Downs Other Costs Total Balance at January 3, 2015 $ $ $ -- $ $ 2015 provision (a) 2015 asset write-downs -- -- ) -- ) Translation difference ) -- -- ) ) 2015 spending (a) ) ) -- ) ) Balance at October 3, 2015 (b) $ $ $ -- $ $ (a) Payroll and related costs and spending include $0.3 million of non-cash share-based compensation expense. (b) The balance in other costs at October 3, 2015 includes $3.3 million for a withdrawal liability incurred in 2011 related to a multi-employer pension plan that the Company will pay through June 1, 2016. For the nine months ended October 3, 2015, the Company recorded pretax charges totaling $33.0 million related to these initiatives. The Company expects to pay the remaining accrued streamlining costs in the next 12 months. For the nine months ended October 4, 2014 , the Company recorded pretax charges of $35.0 million related to these initiatives, including $32.6 million of payroll and related costs, $1.3 million of contract termination costs, $0.9 million of asset write-downs and disposals and $0.2 million of other costs. Approximately $7.7 million and $18.2 million of these charges were non-cash during the nine months ended October 3, 2015 and October 4, 2014, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Oct. 03, 2015
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	13. EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share (“EPS”). Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations, net of income taxes ) ) ) Net (loss) income $ ) $ $ $ ) Basic weighted average shares outstanding Stock options and nonvested shares (a) -- -- Diluted weighted average shares outstanding (Loss) earnings per share: Basic (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations $ ) $ $ ) $ ) Net (loss) income $ ) $ $ $ ) Diluted (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations $ ) $ $ ) $ ) Net (loss) income $ ) $ $ $ ) (a) Because the Company incurred a loss from continuing operations for the nine months ended October 3, 2015 and October 4, 2014, approximately 0.9 million and 1.1 million outstanding stock options, respectively, and approximately 2.0 million and 1.7 million outstanding nonvested shares, respectively, were excluded from the computation of diluted loss per share.

ADDITIONAL FINANCIAL INFORMATIO

ADDITIONAL FINANCIAL INFORMATION	9 Months Ended
	Oct. 03, 2015
ADDITIONAL FINANCIAL INFORMATION
ADDITIONAL FINANCIAL INFORMATION	14. ADDITIONAL FINANCIAL INFORMATION Condensed Consolidated Statements of Cash Flows Supplementary Disclosures During the nine months ended October 3, 2015 and October 4, 2014, net income tax (payments) refunds were $(2.6) million and $0.3 million, respectively. The Company received interest payments of $9.4 million for the nine months ended October 3, 2015, including outstanding interest and payment in kind under the Lucky Brand Note. During the nine months ended October 3, 2015 and October 4, 2014, the Company made interest payments of $13.0 million and $29.9 million, respectively. As of October 3, 2015, January 3, 2015 and October 4, 2014, the Company accrued capital expenditures totaling $11.1 million, $9.8 million and $14.2 million, respectively. On February 3, 2014, the Company received a three-year $85.0 million note issued by Lucky Brand LLC, which was reflected in Note Receivable on the accompanying Condensed Consolidated Balance Sheets prior to its redemption in the first quarter of 2015 (see Note 1 – Basis of Presentation). During 2014, the Company made business acquisition payments of $32.3 million related to the reacquisition of the KATE SPADE businesses in Southeast Asia (see Note 2 – Acquisition). Related Party Transactions The Company’s equity in losses of its equity investees was $4.1 million and $1.4 million for the nine months ended October 3, 2015 and October 4, 2014, respectively, and $1.3 million and $1.2 million for the three months ended October 3, 2015 and October 4, 2014, respectively. During the third quarter of 2015, Kate Spade Hong Kong, Limited and Walton Brown each loaned $5.0 million to KSC. As of October 3, 2015, January 3, 2015 and October 4, 2014, the Company recorded $28.3 million, $9.2 million and $8.0 million, respectively, related to its investments in unconsolidated subsidiaries, which was included in Other assets on the accompanying Condensed Consolidated Balance Sheets.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Oct. 03, 2015
SEGMENT REPORTING
SEGMENT REPORTING	15. SEGMENT REPORTING The Company operates its kate spade new york and JACK SPADE brands through one operating segment in North America and four operating segments internationally: Japan, Asia (excluding Japan), Europe and Latin America. The Company’s Adelington Design Group reportable segment is also an operating segment. The three reportable segments described below represent the Company’s activities for which separate financial information is available and which is utilized on a regular basis by the Company’s CODM to evaluate performance and allocate resources. In identifying the Company’s reportable segments, the Company considers its management structure and the economic characteristics, products, customers, sales growth potential and long-term profitability of its operating segments. As such, the Company configured its operations into the following three reportable segments: · KATE SPADE North America segment – consists of the Company’s kate spade new york and JACK SPADE brands in North America. · KATE SPADE International segment – consists of the Company’s kate spade new york and JACK SPADE brands in International markets (principally in Japan, Asia (excluding Japan), Europe and Latin America ). · Adelington Design Group segment – consists of: (i) exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands and (ii) the licensed LIZWEAR and LIZ CLAIBORNE NEW YORK brands. The Company’s Chief Executive Officer has been identified as the CODM. The Company’s measure of segment profitability is Adjusted EBITDA of each reportable segment. Accordingly, the CODM evaluates performance and allocates resources based primarily on Segment Adjusted EBITDA. Segment Adjusted EBITDA excludes: (i) depreciation and amortization; (ii) charges due to streamlining initiatives, brand-exiting activities and acquisition related costs; (iii) losses on asset disposals and impairments; and (iv) the $26.0 million charge incurred in the first quarter of 2015 to terminate contracts with the Company’s former joint venture partner in China. The costs of all corporate departments that serve the respective segment are fully allocated. The Company does not allocate amounts reported below Operating income (loss) to its reportable segments, other than adjusted equity income (loss) in equity method investees. The Company’s definition of Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The accounting policies of the Company’s reportable segments are the same as those described in Note 1 – Basis of Presentation. Sales are reported based on a destination basis. The Company, as licensor, also licenses to third parties the right to produce and market products bearing certain Company-owned trademarks. Dollars in thousands Net Sales % to Total Adjusted EBITDA % of Sales Nine Months Ended October 3, 2015 (39 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Totals $ % Nine Months Ended October 4, 2014 (40 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Other (a) -- -- % ) -- % Totals $ % Dollars in thousands Net Sales % to Total Adjusted EBITDA % of Sales Three Months Ended October 3, 2015 (13 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Totals $ % Three Months Ended October 4, 2014 (13 weeks) KATE SPADE North America $ % $ % KATE SPADE International % ) )% Adelington Design Group % % Other (a) -- -- % ) -- % Totals $ % (a) Other consists of expenses principally related to distribution functions that were included in Juicy Couture and Lucky Brand historical results, but are not directly attributable to those businesses and therefore have not been included in discontinued operations. The following tables provide a reconciliation to (Loss) Income from Continuing Operations: Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) Reportable Segments Adjusted EBITDA: KATE SPADE North America $ $ $ $ KATE SPADE International (a) ) Adelington Design Group Other (b) -- ) -- ) Total Reportable Segments Adjusted EBITDA Depreciation and amortization, net (c) ) ) ) ) Charges due to streamlining initiatives (d) , brand-exiting activities, acquisition related costs and loss on asset disposals and impairments, net ) ) ) ) Joint venture contract termination fee ) -- -- -- Share-based compensation (e) ) ) ) ) Adjusted equity loss included in Reportable Segments Adjusted EBITDA (f) Operating (Loss) Income ) ) Other expense, net (a) ) ) ) ) Loss on settlement of note receivable ) -- -- -- Loss on extinguishment of debt -- ) -- -- Interest expense, net ) ) ) ) Provision (benefit) for income taxes ) ) (Loss) Income from Continuing Operations $ ) $ ) $ $ (a) Amounts include equity in the adjusted losses of the Company’s equity method investees of $3.6 million and $1.4 million for the nine months ended October 3, 2015 and October 4, 2014, respectively and $0.9 million and $1.2 million for the three months ended October 3, 2015 and October 4, 2014, respectively. (b) Other consists of expenses principally related to distribution functions that were included in Juicy Couture and Lucky Brand historical results, but are not directly attributable to those businesses and therefore have not been included in discontinued operations. (c) Excludes amortization included in Interest expense, net. (d) See Note 12 – Streamlining Initiatives for a discussion of streamlining charges. (e) Includes share-based compensation expense of $0.3 million and $17.2 million in the nine months ended October 3, 2015 and October 4, 2014 , respectively, and $0.1 million and $0.3 million in the three months ended October 3, 2015 and October 4, 2014, respectively, that was classified as restructuring. (f) Excludes joint venture restructuring expense included in equity losses of $0.5 million in the nine months ended October 3, 2015 and $0.4 million in the three months ended October 3, 2015. GEOGRAPHIC DATA: Dollars in thousands Net Sales % to Total Nine Months Ended October 3, 2015 (39 weeks) Domestic $ International Totals $ Nine Months Ended October 4, 2014 (40 weeks) Domestic $ International Totals $ Three Months Ended October 3, 2015 (13 weeks) Domestic $ International Totals $ Three Months Ended October 4, 2014 (13 weeks) Domestic $ International Totals $ There were no significant changes in segment assets during the nine months ended October 3, 2015.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Oct. 03, 2015
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	16. DERIVATIVE INSTRUMENTS In order to reduce exposures related to changes in foreign currency exchange rates, the Company uses forward contracts and options and may utilize foreign currency collars and swap contracts for the purpose of hedging the specific exposure to variability in forecasted cash flows associated primarily with inventory purchases mainly by its business in Japan. As of October 3, 2015, the Company had forward contracts maturing through June 2016 to sell 1.7 billion yen for $14.4 million. The Company also had option contracts maturing through December 2016 to sell 2.4 billion yen for $20.7 million. The Company uses foreign currency forward contracts outside the cash flow hedging program to manage currency risk associated with intercompany loans. As of October 3, 2015, the Company had forward contracts to sell 4.0 billion yen for $33.3 million maturing through December 2015. Transaction (losses) gains of $(0.1) million and $1.3 million related to these derivative instruments were reflected within Other expense, net for the nine months ended October 3, 2015 and October 4, 2014, respectively, and $(0.8) million and $2.4 million for the three months ended October 3, 2015 and October 4, 2014, respectively. These transaction gains and losses were substantially offset by transaction gains and losses on the corresponding intercompany loans. The following table summarizes the fair value and presentation in the Condensed Consolidated Financial Statements for derivatives designated as hedging instruments and derivatives not designated as hedging instruments: Foreign Currency Contracts Designated as Hedging Instruments In thousands Asset Derivatives Liability Derivatives Period Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value October 3, 2015 Other current assets $ $ 1,515 Accrued expenses $ $ 93 January 3, 2015 Other current assets Accrued expenses -- -- October 4, 2014 Other current assets Accrued expenses -- -- Foreign Currency Contracts Not Designated as Hedging Instruments In thousands Asset Derivatives Liability Derivatives Period Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value October 3, 2015 Other current assets $ -- $ -- Accrued expenses $ $ 67 January 3, 2015 Other current assets Accrued expenses -- -- October 4, 2014 Other current assets Accrued expenses -- -- The following table summarizes the effect of foreign currency exchange contracts designated as hedging instruments on the Condensed Consolidated Financial Statements: In thousands Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective and Ineffective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective Portion) Amount Recognized in Operations on Derivative (Ineffective Portion) Nine months ended October 3, 2015 $ ) Cost of goods sold $ $ -- Nine months ended October 4, 2014 Cost of goods sold -- Three months ended October 3, 2015 ) Cost of goods sold -- Three months ended October 4, 2014 Cost of goods sold --

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Oct. 03, 2015
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	17. SHARE-BASED COMPENSATION The Company recognizes the cost of all employee share-based awards on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures. The Company issues stock options and restricted shares as well as shares with performance features to employees under share-based compensation plans. Stock options are issued at the current market price, have a three-year vesting period and a contractual term of 7-10 years. Compensation expense for restricted shares, including shares with performance features, is measured at fair value on the date of grant based on the number of shares granted and the quoted market price of the Company’s common stock. Such value is recognized as expense over the vesting period of the award, net of estimated forfeitures. Compensation expense for restricted share units with performance features and a market condition is measured at fair value, subject to the market condition on the date of grant and based on the number of shares expected to vest subject to the performance condition. Such value is recognized as expense over the vesting period of the award, net of estimated forfeitures. Compensation expense related to the Company’s share-based payment awards totaled $19.4 million, which included $0.3 million that was classified as restructuring, for the nine months ended October 3, 2015 and $6.6 million, which included $0.1 million that was classified as restructuring, for the three months ended October 3, 2015. During 2014, the Company’s Compensation Committee approved the continued vesting of unvested options and restricted stock awards without any required service period or the accelerated vesting of such awards for former employees, including former executive officers, upon their separation from the Company. Compensation expense related to the Company’s share-based payment awards totaled $31.8 million, which included $17.2 million that was classified as restructuring, for the nine months ended October 4, 2014 and $5.8 million, which included $0.3 million that was classified as restructuring, for the three months ended October 4, 2014. Stock Options The Company grants stock options to certain domestic and international employees. These options are subject to transfer restrictions and risk of forfeiture until earned by continuing employment. Stock options are issued at the current market price and have a three-year vesting period and a contractual term of 7-10 years. The Company utilizes the Binomial lattice pricing model to estimate the fair value of options granted. The Company believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates and to allow for actual exercise behavior of option holders. Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value of options granted $15.92 Historic volatility 76.5% Weighted-average volatility 58.7% Expected term (in years) 4.2 Dividend yield — Risk-free rate 1.9% Expected annual forfeiture 15.3% Expected volatilities are based on a term structure of implied volatility, which assumes changes in volatility over the life of an option. The Company utilizes historical optionee behavioral data to estimate the option exercise and termination rates that are used in the valuation model. The expected term represents an estimate of the period of time options are expected to remain outstanding. The expected term provided in the above table represents an option weighted-average expected term based on the estimated behavior of distinct groups of employees who received options in 2015. The range of risk-free rates is based on a forward curve of interest rates at the time of option grant. A summary of award activity under stock option plans as of October 3, 2015 and changes therein during the nine month period then ended are as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) Outstanding at January 3, 2015 $ $ Granted Exercised ) Cancelled ) Outstanding at October 3, 2015 $ $ Vested or expected to vest at October 3, 2015 $ $ Exercisable at October 3, 2015 $ $ As of October 3, 2015 , there were approximately 0.3 million nonvested stock options. The weighted average grant date fair value per award for nonvested stock options was $13.22. As of October 3 , 2015 , there was $2.5 million of total unrecognized compensation cost related to nonvested stock options granted under the Company’s stock option plans. That expense is expected to be recognized over a weighted average period of 1.6 years. The total fair value of shares vested during the nine months ended October 3 , 2015 and October 4 , 2014 was $2.3 million and $3.2 million, respectively. Restricted Stock In 2015, the Company granted 105,245 market share units (“MSUs”) to a group of key executives with an aggregate grant date fair value of $4.6 million and which vest 50% on each of the second and third anniversaries of the grant date as part of an annual long-term incentive plan (“LTIP”). The MSUs earned will vary from 30% to 200% of the number of MSUs awarded depending on the actual performance of the Company’s stock price over the vesting periods. The fair value for the MSUs granted was calculated using the Monte Carlo simulation model. For the nine months ended October 3, 2015, the following assumptions were used in determining fair value: Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value $43.35 Expected volatility 43.2% Dividend yield — Risk-free rate 1.1 % to 1.7 % Weighted-average expected annual forfeiture 5.0 % The other portion of the LTIP consists of an award of 243,419 performance shares that vests on the third anniversary of the grant date. The number of performance shares earned will vary from zero to 200% of the number of awards granted depending on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the S&P Mid-Cap 400 Index as well as an earnings-based performance condition. The performance shares have a grant date fair value of $9.1 million that was calculated using a Monte Carlo simulation model. For the nine months ended October 3, 2015, the following assumptions were used in determining fair value: Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value $37.47 Expected volatility 41.6% Dividend yield — Risk-free rate 1.0 % Weighted-average expected annual forfeiture 4.1 % A summary of award activity under restricted stock plans as of October 3, 2015 and changes therein during the nine month period then ended are as follows: Shares Weighted Average Grant Date Fair Value Nonvested stock at January 3, 2015 $ Granted Vested ) Cancelled ) Nonvested stock at October 3, 2015 $ Expected to vest as of October 3, 2015 (a) $ (a) Excludes the potential impact of the performance share multiplier, which will vary from 30% to 200% of the number of MSUs awarded depending on the actual performance of the Company’s stock price over the vesting periods and zero to 200% of the number of LTIP awards granted depending on the Company’s TSR relative to the TSR of the S&P Mid-Cap 400 Index. As of October 3, 2015, there was $44.1 million of total unrecognized compensation cost related to non vested stock awards granted under restricted stock plans. That expense is expected to be recognized over a weighted average period of 2.2 years. The total fair value of shares vested during the nine month periods ended October 3, 2015 and October 4, 2014 was $2.2 million and $6.8 million, respectively.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Oct. 03, 2015
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	18. RECENT ACCOUNTING PRONOUNCEMENTS In July 2015, new accounting guidance on accounting for inventory was issued, which requires entities to measure inventory at the lower of cost and net realizable value. This guidance is effective for interim and annual periods beginning on or after December 15, 2016. The Company is currently evaluating the impact of the adoption of the new accounting guidance on its financial statements. In April 2015, new accounting guidance was issued which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In addition, in August 2015, new accounting guidance was issued to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for interim and annual periods beginning on or after December 15, 2015. The Company will reclassify the carrying value of its debt issuance costs related to the Term Loan from an asset to a liability upon adoption. In January 2015, new accounting guidance was issued which removes the concept of extraordinary items from US GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate presentation (and corresponding earnings per share impact) will no longer be allowed. This guidance is effective for interim and annual periods beginning on or after December 15, 2015. Early adoption is permitted. The adoption of the new guidance will not affect the Company’s financial position, results of operations or cash flows. In May 2014, new accounting guidance on the accounting for revenue recognition was issued, which requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, this guidance was updated, which defers the effective date by one year and permits early adoption for interim and annual periods beginning on or after December 15, 2016. This guidance is effective for interim and annual periods beginning on or after December 15, 2017. The Company is continuing to evaluate the impact of the adoption of the guidance on its financial statements.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Oct. 03, 2015
BASIS OF PRESENTATION
NATURE OF OPERATIONS	NATURE OF OPERATIONS Kate Spade & Company is engaged primarily in the design and marketing of a broad range of accessories and apparel. The Company’s fiscal year ends on the Saturday closest to December 31. The 2015 fiscal year, ending January 2, 2016, reflects a 52-week period, resulting in a 13-week, three-month period and a 39-week, nine-month period for the third quarter. The 2014 fiscal year, ending January 3, 2015, reflects a 53-week period, resulting in a 13-week, three-month period and a 40-week, nine-month period for the third quarter.
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The Condensed Consolidated Financial Statements include the accounts of the Company. All inter-company balances and transactions have been eliminated in consolidation.
USE OF ESTIMATES AND CRITICAL ACCOUNTING POLICIES	USE OF ESTIMATES AND CRITICAL ACCOUNTING POLICIES The Company’s critical accounting policies are those that are most important to the portrayal of its financial condition and results of operations in conformity with US GAAP. These critical accounting policies are applied in a consistent manner throughout all periods presented. The Company’s critical accounting policies are summarized in Note 1 of Notes to Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended January 3, 2015. The application of critical accounting policies requires that the Company make estimates and assumptions about future events and apply judgments that affect the reported amounts of revenues and expenses. Estimates by their nature are based on judgments and available information. Therefore, actual results could materially differ from those estimates under different assumptions and conditions. The Company continues to monitor the critical accounting policies to ensure proper application of current rules and regulations. During the third quarter of 2015, there were no significant changes in the critical accounting policies discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015.
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On January 4, 2015, the first day of the Company’s 2015 fiscal year, the Company adopted new accounting guidance on the reporting of discontinued operations, which revised the threshold for a disposal to qualify as a discontinued operation and required new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation (see Note 3 – Discontinued Operations and Disposals) .

ACQUISITION (Tables)

ACQUISITION (Tables)	9 Months Ended
	Oct. 03, 2015
ACQUISITION
Summary of the estimated fair values of the assets acquired	In thousands Assets acquired: Current assets $ Property and equipment, net Goodwill and intangibles, net (a) Other assets Total assets acquired $ (a) In the first quarter of 2015, $16.0 million of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan was reclassified to Investment in unconsolidated subsidiary upon closing of the KS HMT joint venture with Walton Brown (see Note 1 – Basis of Presentation).
Schedule of the acquired intangible assets	In thousands Useful Life Estimated Fair Value Reacquired distribution rights 1.7 years $ Retail customer list 3 years

DISCONTINUED OPERATIONS AND D28

DISCONTINUED OPERATIONS AND DISPOSALS (Tables)	9 Months Ended
	Oct. 03, 2015
DISCONTINUED OPERATIONS AND DISPOSALS
Summary of results of discontinued operations	Nine Months Ended Three Months Ended October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) In thousands Net sales $ $ $ ) $ Loss before (benefit) provision for income taxes $ ) $ ) $ ) $ ) (Benefit) provision for income taxes ) ) Loss from discontinued operations, net of income taxes $ ) $ ) $ ) $ ) (Loss) gain on disposal of discontinued operations, net of income taxes $ ) $ $ $ )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Oct. 03, 2015
STOCKHOLDERS' EQUITY
Schedule of activity in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost accounts	In thousands Capital in Excess of Par Value Retained Earnings Common Stock in Treasury, at Cost Balance as of January 3, 2015 $ $ $ ) Net loss -- ) -- Exercise of stock options -- ) Restricted shares issued, net of cancellations and shares withheld for taxes -- ) Share-based compensation -- -- Balance as of October 3, 2015 $ $ $ ) In thousands Capital in Excess of Par Value Retained Earnings Common Stock in Treasury, at Cost Balance as of December 28, 2013 $ $ $ ) Net income -- -- Exercise of stock options -- ) Restricted shares issued, net of cancellations and shares withheld for taxes -- ) Share-based compensation -- -- Balance as of October 4, 2014 $ $ $ )
Schedule of accumulated other comprehensive (loss) income	In thousands October 3, 2015 January 3, 2015 October 4, 2014 Cumulative translation adjustment, net of income taxes of $0 $ ) $ ) $ ) Unrealized gains on cash flow hedging derivatives, net of income taxes of $284, $1,168 and $417, respectively Accumulated other comprehensive loss, net of income taxes $ ) $ ) $ )
Schedule of the change in each component of Accumulated other comprehensive (loss) income, net of income taxes	The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the nine months ended October 3, 2015: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of January 3, 2015 $ ) $ Other comprehensive loss before reclassification ) ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive loss ) ) Balance as of October 3, 2015 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the nine months ended October 4, 2014: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of December 28, 2013 $ ) $ Other comprehensive (loss) income before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive loss ) ) Balance as of October 4, 2014 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the three months ended October 3, 2015: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of July 4, 2015 $ ) $ Other comprehensive income (loss) before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive income (loss) ) Balance as of October 3, 2015 $ ) $ The following table presents the change in each component of Accumulated other comprehensive (loss) income, net of income taxes for the three months ended October 4, 2014: In thousands Cumulative Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedging Derivatives Balance as of July 5, 2014 $ ) $ Other comprehensive (loss) income before reclassification ) Amounts reclassified from accumulated other comprehensive income -- ) Net current-period other comprehensive (loss) income ) Balance as of October 4, 2014 $ ) $

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	9 Months Ended
	Oct. 03, 2015
INVENTORIES, NET
Schedule of inventories, net	In thousands October 3, 2015 January 3, 2015 October 4, 2014 Raw materials and work in process $ $ $ Finished goods Total inventories, net $ $ $

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Oct. 03, 2015
PROPERTY AND EQUIPMENT, NET
Schedule of property and equipment, net	In thousands October 3, 2015 January 3, 2015 October 4, 2014 Land and buildings $ $ $ Machinery and equipment Furniture and fixtures Leasehold improvements Less: Accumulated depreciation and amortization Total property and equipment, net $ $ $

GOODWILL AND INTANGIBLES, NET (

GOODWILL AND INTANGIBLES, NET (Tables)	9 Months Ended
	Oct. 03, 2015
GOODWILL AND INTANGIBLES, NET
Schedule of carrying value of all intangible assets	In thousands Weighted Average Amortization Period October 3, 2015 January 3, 2015 October 4, 2014 Amortized intangible assets: Gross carrying amount: Owned trademarks (a) -- $ $ $ Customer relationships 12 years Merchandising rights 4 years Reacquired rights 3 years Other 4 years Subtotal Accumulated amortization: Owned trademarks ) ) ) Customer relationships ) ) ) Merchandising rights ) ) ) Reacquired rights ) ) ) Other ) ) ) Subtotal ) ) ) Net: Owned trademarks -- -- Customer relationships Merchandising rights Reacquired rights Other Total amortized intangible assets, net Unamortized intangible assets: Owned trademarks Total intangible assets $ $ $ Goodwill (b) $ $ $ (a) The change in the balance reflected a non-cash impairment charge of $1.5 million related to the TRIFARI trademark recorded in the fourth quarter of 2014. (b) The decrease in the balance primarily reflected the reclassification of $16.0 million of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 - Acquisition).
Schedule of estimated amortization expense for intangible assets for the next five fiscal years	Fiscal Year Amortization Expense (In millions) 2015 $ 2016 2017 2018 2019
Schedule of changes in carrying amount of goodwill	The changes in carrying amount of goodwill for the nine months ended October 3, 2015 were as follows: In thousands KATE SPADE International Adelington Design Group Total Balance as of January 3, 2015 $ $ $ Reclassification of goodwill to Investment in unconsolidated subsidiary (a) ) -- ) Translation adjustment ) Balance as of October 3, 2015 $ $ $ (a) Represents the reclassification of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 – Acquisition). The changes in carrying amount of goodwill for the nine months ended October 4, 2014 were as follows: In thousands KATE SPADE International Adelington Design Group Total Balance as of December 28, 2013 $ $ $ Acquisition of existing KATE SPADE businesses in Southeast Asia -- Translation adjustment ) ) ) Balance as of October 4, 2014 $ $ $

DEBT AND LINES OF CREDIT (Table

DEBT AND LINES OF CREDIT (Tables)	9 Months Ended
	Oct. 03, 2015
DEBT AND LINES OF CREDIT
Schedule of long-term debt	In thousands October 3, 2015 January 3, 2015 October 4, 2014 Term Loan credit facility, due April 2021 (a) $ $ $ Revolving credit facility -- Capital lease obligations Total debt Less: Short-term borrowings (b) Long-term debt $ $ $ (a) The balance as of October 3, 2015, January 3, 2015 and October 4, 2014 included an unamortized debt discount of $1.6 million, $1.8 million and $1.9 million, respectively. (b) At October 3, 2015, the balance consisted of $4.0 million of Term Loan amortization payments and obligations under capital leases. At January 3, 2015 and October 4, 2014, the balance consisted of $4.0 million of Term Loan amortization payments, outstanding borrowings under the Company’s amended and restated revolving credit facility (as amended to date, the “ABL Facility”) and obligations under capital leases.
Schedule of availability under the Company's ABL Facility	As of October 3, 2015, availability under the Company’s ABL Facility was as follows: In thousands Total Facility (a) Borrowing Base (a) Outstanding Borrowings Letters of Credit Issued Available Capacity Excess Capacity (b) Revolving credit facility (a) $ $ $ -- $ $ $ (a) Availability under the ABL Facility is the lesser of $200.0 million or a borrowing base that is computed monthly and comprised of the Company’s eligible cash, accounts receivable and inventory. (b) Excess capacity represents available capacity reduced by the minimum required aggregate borrowing availability under the ABL Facility of $20.0 million.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Oct. 03, 2015
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities of the Company measured at fair value on recurring basis	Level 2 In thousands October 3, 2015 January 3, 2015 October 4, 2014 Financial Assets: Derivatives $ $ $ Financial Liabilities: Derivatives $ ) $ -- $ --
Schedule of non-financial assets of the Company measured at fair value on non-recurring basis	Total Losses Net Carrying Value as of Fair Value Measured and Recorded at Reporting Date Using: Nine Months Ended Three Months Ended In thousands October 3, 2015 Level 1 Level 2 Level 3 October 3, 2015 October 3, 2015 Property and equipment $ -- $ -- $ -- $ -- $ $ -- The following table presents the non-financial assets the Company measured at fair value on a non-recurring basis in 2014, based on such fair value hierarchy: Total Losses Net Carrying Value as of Fair Value Measured and Recorded at Reporting Date Using: Nine Months Ended Three Months Ended In thousands October 4, 2014 Level 1 Level 2 Level 3 October 4, 2014 October 4, 2014 Property and equipment $ $ -- $ -- $ -- $ $ --
Schedule of fair values and carrying values of the Company's debt instruments	October 3, 2015 January 3, 2015 October 4, 2014 In thousands Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Term Loan credit facility, due April 2021 (a) $ $ $ $ $ $ Revolving credit facility (b) -- -- (a) Carrying values include unamortized debt discount. (b) Borrowings under the revolving credit facility bear interest based on market rate; accordingly its fair value approximates its carrying value.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Oct. 03, 2015
COMMITMENTS AND CONTINGENCIES
Schedule of estimated future minimum lease payments under the noncancelable capital lease	As of October 3, 2015, the estimated future minimum lease payments under the noncancelable capital lease were as follows: In millions 2015 $ 2016 2017 2018 2019 Thereafter Total Less: Amounts representing interest and executory costs ) Net present values Less: Capital lease obligations included in short-term debt ) Long-term capital lease obligations $

STREAMLINING INITIATIVES (Table

STREAMLINING INITIATIVES (Tables)	9 Months Ended
	Oct. 03, 2015
STREAMLINING INITIATIVES
Schedule of expenses associated with the Company's streamlining actions	Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) KATE SPADE North America $ $ $ $ KATE SPADE International -- -- Adelington Design Group ) Other (a) Total $ $ $ $ (a) Other consists of unallocated corporate restructuring costs and Juicy Couture and Lucky Brand restructuring charges principally related to distribution functions that are not directly attributable to Juicy Couture or Lucky Brand and therefore have not been included in discontinued operations.
Summary rollforward of the liability for streamlining initiatives	In thousands Payroll and Related Costs Contract Termination Costs Asset Write-Downs Other Costs Total Balance at January 3, 2015 $ $ $ -- $ $ 2015 provision (a) 2015 asset write-downs -- -- ) -- ) Translation difference ) -- -- ) ) 2015 spending (a) ) ) -- ) ) Balance at October 3, 2015 (b) $ $ $ -- $ $ (a) Payroll and related costs and spending include $0.3 million of non-cash share-based compensation expense. (b) The balance in other costs at October 3, 2015 includes $3.3 million for a withdrawal liability incurred in 2011 related to a multi-employer pension plan that the Company will pay through June 1, 2016.

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Oct. 03, 2015
EARNINGS PER COMMON SHARE
Schedule of computation of basic and diluted earnings per common share	Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations, net of income taxes ) ) ) Net (loss) income $ ) $ $ $ ) Basic weighted average shares outstanding Stock options and nonvested shares (a) -- -- Diluted weighted average shares outstanding (Loss) earnings per share: Basic (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations $ ) $ $ ) $ ) Net (loss) income $ ) $ $ $ ) Diluted (Loss) income from continuing operations $ ) $ ) $ $ (Loss) income from discontinued operations $ ) $ $ ) $ ) Net (loss) income $ ) $ $ $ ) (a) Because the Company incurred a loss from continuing operations for the nine months ended October 3, 2015 and October 4, 2014, approximately 0.9 million and 1.1 million outstanding stock options, respectively, and approximately 2.0 million and 1.7 million outstanding nonvested shares, respectively, were excluded from the computation of diluted loss per share.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Oct. 03, 2015
SEGMENT REPORTING
Schedule of segment reporting information, by segment	Dollars in thousands Net Sales % to Total Adjusted EBITDA % of Sales Nine Months Ended October 3, 2015 (39 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Totals $ % Nine Months Ended October 4, 2014 (40 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Other (a) -- -- % ) -- % Totals $ % Dollars in thousands Net Sales % to Total Adjusted EBITDA % of Sales Three Months Ended October 3, 2015 (13 weeks) KATE SPADE North America $ % $ % KATE SPADE International % % Adelington Design Group % % Totals $ % Three Months Ended October 4, 2014 (13 weeks) KATE SPADE North America $ % $ % KATE SPADE International % ) )% Adelington Design Group % % Other (a) -- -- % ) -- % Totals $ % (a) Other consists of expenses principally related to distribution functions that were included in Juicy Couture and Lucky Brand historical results, but are not directly attributable to those businesses and therefore have not been included in discontinued operations.
Schedule of reconciliation to (Loss) Income from Continuing Operations	Nine Months Ended Three Months Ended In thousands October 3, 2015 (39 Weeks) October 4, 2014 (40 Weeks) October 3, 2015 (13 Weeks) October 4, 2014 (13 Weeks) Reportable Segments Adjusted EBITDA: KATE SPADE North America $ $ $ $ KATE SPADE International (a) ) Adelington Design Group Other (b) -- ) -- ) Total Reportable Segments Adjusted EBITDA Depreciation and amortization, net (c) ) ) ) ) Charges due to streamlining initiatives (d) , brand-exiting activities, acquisition related costs and loss on asset disposals and impairments, net ) ) ) ) Joint venture contract termination fee ) -- -- -- Share-based compensation (e) ) ) ) ) Adjusted equity loss included in Reportable Segments Adjusted EBITDA (f) Operating (Loss) Income ) ) Other expense, net (a) ) ) ) ) Loss on settlement of note receivable ) -- -- -- Loss on extinguishment of debt -- ) -- -- Interest expense, net ) ) ) ) Provision (benefit) for income taxes ) ) (Loss) Income from Continuing Operations $ ) $ ) $ $ (a) Amounts include equity in the adjusted losses of the Company’s equity method investees of $3.6 million and $1.4 million for the nine months ended October 3, 2015 and October 4, 2014, respectively and $0.9 million and $1.2 million for the three months ended October 3, 2015 and October 4, 2014, respectively. (b) Other consists of expenses principally related to distribution functions that were included in Juicy Couture and Lucky Brand historical results, but are not directly attributable to those businesses and therefore have not been included in discontinued operations. (c) Excludes amortization included in Interest expense, net. (d) See Note 12 – Streamlining Initiatives for a discussion of streamlining charges. (e) Includes share-based compensation expense of $0.3 million and $17.2 million in the nine months ended October 3, 2015 and October 4, 2014 , respectively, and $0.1 million and $0.3 million in the three months ended October 3, 2015 and October 4, 2014, respectively, that was classified as restructuring. (f) Excludes joint venture restructuring expense included in equity losses of $0.5 million in the nine months ended October 3, 2015 and $0.4 million in the three months ended October 3, 2015.
Schedule of geographic data	Dollars in thousands Net Sales % to Total Nine Months Ended October 3, 2015 (39 weeks) Domestic $ International Totals $ Nine Months Ended October 4, 2014 (40 weeks) Domestic $ International Totals $ Three Months Ended October 3, 2015 (13 weeks) Domestic $ International Totals $ Three Months Ended October 4, 2014 (13 weeks) Domestic $ International Totals $

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Oct. 03, 2015
DERIVATIVE INSTRUMENTS
Summary of effect of foreign currency exchange contracts on Condensed Consolidated Financial Statements	In thousands Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective and Ineffective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective Portion) Amount Recognized in Operations on Derivative (Ineffective Portion) Nine months ended October 3, 2015 $ ) Cost of goods sold $ $ -- Nine months ended October 4, 2014 Cost of goods sold -- Three months ended October 3, 2015 ) Cost of goods sold -- Three months ended October 4, 2014 Cost of goods sold --
Designated as Hedging Instrument
DERIVATIVE INSTRUMENTS
Summary of fair value and presentation in Condensed Consolidated Financial Statements for derivatives designated as hedging instruments and derivatives not designated as hedging instruments	Foreign Currency Contracts Designated as Hedging Instruments In thousands Asset Derivatives Liability Derivatives Period Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value October 3, 2015 Other current assets $ $ 1,515 Accrued expenses $ $ 93 January 3, 2015 Other current assets Accrued expenses -- -- October 4, 2014 Other current assets Accrued expenses -- -- Foreign Currency Contracts Not Designated as Hedging Instruments In thousands Asset Derivatives Liability Derivatives Period Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value October 3, 2015 Other current assets $ -- $ -- Accrued expenses $ $ 67 January 3, 2015 Other current assets Accrued expenses -- -- October 4, 2014 Other current assets Accrued expenses -- --

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Oct. 03, 2015
SHARE-BASED COMPENSATION
Schedule of valuation assumptions used to estimate fair value of stock options granted using the Binomial lattice pricing model	Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value of options granted $15.92 Historic volatility 76.5% Weighted-average volatility 58.7% Expected term (in years) 4.2 Dividend yield — Risk-free rate 1.9% Expected annual forfeiture 15.3%
Summary of award activity under stock option plans	Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) Outstanding at January 3, 2015 $ $ Granted Exercised ) Cancelled ) Outstanding at October 3, 2015 $ $ Vested or expected to vest at October 3, 2015 $ $ Exercisable at October 3, 2015 $ $
Schedule of valuation assumptions used to determine fair value for the MSUs granted using the Monte Carlo simulation model	Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value $43.35 Expected volatility 43.2% Dividend yield — Risk-free rate 1.1 % to 1.7 % Weighted-average expected annual forfeiture 5.0 %
Schedule of valuation assumptions used to determine fair value of performance share units granted using the Monte Carlo simulation model	Nine Months Ended Valuation Assumptions: October 3, 2015 Weighted-average fair value $37.47 Expected volatility 41.6% Dividend yield — Risk-free rate 1.0 % Weighted-average expected annual forfeiture 4.1 %
Summary of award activity under restricted stock plans	Shares Weighted Average Grant Date Fair Value Nonvested stock at January 3, 2015 $ Granted Vested ) Cancelled ) Nonvested stock at October 3, 2015 $ Expected to vest as of October 3, 2015 (a) $ (a) Excludes the potential impact of the performance share multiplier, which will vary from 30% to 200% of the number of MSUs awarded depending on the actual performance of the Company’s stock price over the vesting periods and zero to 200% of the number of LTIP awards granted depending on the Company’s TSR relative to the TSR of the S&P Mid-Cap 400 Index.

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)

Mar. 04, 2015USD ($)

May. 15, 2014USD ($)

Feb. 05, 2014USD ($)

Feb. 03, 2014USD ($)

Feb. 03, 2014USD ($)

Nov. 06, 2013USD ($)

Oct. 03, 2015USD ($)

Jul. 04, 2015item

Apr. 04, 2015item

Oct. 04, 2014USD ($)

Oct. 03, 2015USD ($)segment

Oct. 04, 2014USD ($)

Jan. 02, 2016

Jan. 03, 2015USD ($)

Apr. 07, 2014USD ($)

Dec. 28, 2013USD ($)

Nov. 19, 2013USD ($)

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Number of reportable segments | segment

3

Net proceeds from settlement of note receivable

$ 75,128,000

Loss on settlement of Lucky Brand Note

9,873,000

Termination and other related costs

26,000,000

Goodwill

$ 48,790,000

$ 68,871,000

$ 48,790,000

$ 68,871,000

$ 64,798,000

$ 49,111,000

Period in fiscal year

91 days

91 days

273 days

280 days

364 days

371 days

Net Sales

$ 277,328,000

$ 250,417,000

$ 813,762,000

$ 740,029,000

Kate Spade Saturdays

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Number of partnered store locations closed | item

3

KS HMT Co Limited

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Goodwill

16,000,000

16,000,000

Net Assets

$ 14,000,000

$ 14,000,000

E-Land Fashion | KS China Co Limited

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Ownership interest in joint venture (as a percent)

60.00%

60.00%

Equity method investment already owned (as a percent)

40.00%

Aggregate payment to acquire interest in joint venture

$ 36,000,000

Payments to acquire additional interest in joint venture

10,000,000

Termination and other related costs

26,000,000

Lane Crawford Joyce Group Member | Kate Spade China and K S H M T Co Limited

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Proceeds received in relation to joint ventures interests

$ 21,000,000

Ownership percentage sold (as a percent)

50.00%

Net Sales

$ 6,400,000

$ 34,000,000

Walton Brown

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Initial period of joint venture operations

10 years

Walton Brown | Kate Spade China and K S H M T Co Limited

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Ownership interest in joint venture (as a percent)

50.00%

50.00%

Walton Brown | Lane Crawford Joyce Group Member

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Number of Joint Ventures | item

2

Juicy Couture Disposal Group

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Cash consideration

$ 8,600,000

Consideration on termination under disposition leases

$ 51,000,000

Net proceeds received from termination under disposition leases

$ 45,800,000

Proceeds previously received from termination under disposition leases

$ 5,000,000

Lucky Brand

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Proceeds from settlement of notes prior to maturity

$ 81

Aggregate amount of principal and interest collected

89

LBD Acquisition | Lucky Brand

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Loss on settlement of Lucky Brand Note

$ 9,900,000

ABG | Juicy Couture

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Purchase price

$ 195,000,000

ABG | Juicy Couture | Minimum

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Guaranteed minimum royalties payment

10,000,000

ABG | Juicy Couture | Maximum

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Additional contingent payment

$ 10,000,000

KATE SPADE International

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Purchase price

$ 32,300,000

Goodwill

$ 47,612,000

67,494,000

$ 47,612,000

67,494,000

$ 63,483,000

$ 47,664,000

Lucky Brand | LBD Acquisition

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Percentage of ownership interest in business sold

100.00%

Sale proceeds of intangible assets under disposal or sale transactions

$ 225,000,000

$ 225,000,000

Cash consideration

$ 140,000,000

$ 140,000,000

Lucky Brand | LBD Acquisition | Lucky Brand Note

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Term of note

3 years

3 years

Net proceeds from settlement of note receivable

$ 85,000,000

$ 85,000,000

Domestic

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Number of Operating Segments | segment

1

Net Sales

223,058,000

192,805,000

$ 650,239,000

572,073,000

International

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Number of Operating Segments | segment

4

Net Sales

$ 54,270,000

$ 57,612,000

$ 163,523,000

$ 167,956,000

ACQUISITION (Details)

ACQUISITION (Details) $ in Thousands	Feb. 05, 2014USD ($)	Oct. 03, 2015USD ($)item	Oct. 04, 2014USD ($)	Jan. 03, 2015USD ($)	Dec. 28, 2013USD ($)
ACQUISITION
Goodwill recorded		$ 48,790	$ 68,871	$ 64,798	$ 49,111
Reclassification of goodwill to Investment in unconsolidated subsidiary		(16,009)	21,836
Globalluxe Kate Spade H K Limited
ACQUISITION
Amount funded by Company's new partner, Valiram Group to acquire operating assets		$ 1,500
Globalluxe Kate Spade H K Limited | HONG KONG
ACQUISITION
Number of stores operated | item		6
Number of concessions operated | item		1
Globalluxe Kate Spade H K Limited | TAIWAN, PROVINCE OF CHINA
ACQUISITION
Number of concessions operated | item		1
Globalluxe Kate Spade H K Limited | MACAU
ACQUISITION
Number of stores operated | item		1
Globalluxe Kate Spade H K Limited | SINGAPORE
ACQUISITION
Number of stores operated | item		2
Number of concessions operated | item		1
Globalluxe Kate Spade H K Limited | MALAYSIA
ACQUISITION
Number of stores operated | item		2
Globalluxe Kate Spade H K Limited | INDONESIA
ACQUISITION
Number of stores operated | item		3
Number of concessions operated | item		1
Globalluxe Kate Spade H K Limited | THAILAND
ACQUISITION
Number of stores operated | item		2
Number of concessions operated | item		6
KATE SPADE International
ACQUISITION
Purchase price	$ 32,300
Working capital and other previously agreed adjustments	2,300
Goodwill recorded		$ 47,612	67,494	$ 63,483	$ 47,664
Reclassification of goodwill to Investment in unconsolidated subsidiary	16,000	$ (16,009)	$ 21,836
Assets acquired:
Current assets	3,549
Property and equipment, net	1,267
Goodwill and intangibles, net	26,592
Other assets	860
Total assets acquired	$ 32,268
KATE SPADE International | Distribution Rights
Assets acquired:
Useful Life	1 year 8 months 12 days
Estimated Fair Value	$ 4,500
KATE SPADE International | Customer Lists
Assets acquired:
Useful Life	3 years
Estimated Fair Value	$ 256
KATE SPADE International | KATE SPADE North America
ACQUISITION
Goodwill recorded	$ 21,800

DISCONTINUED OPERATIONS AND D43

DISCONTINUED OPERATIONS AND DISPOSALS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
DISCONTINUED OPERATIONS
Pretax (charges) income related to disposal of discontinued operations	$ 100	$ (2,800)	$ (1,400)	$ 131,000
Results of discontinued operations
Net sales	(12)	521	175	209,179
(Loss) income before provision for income taxes	(2,680)	(5,970)	(3,468)	(44,913)
Provision for income taxes	(328)	13	(269)	656
(Loss) income from discontinued operations, net of income taxes	(2,352)	(5,983)	(3,199)	(45,569)
(Loss) gain on disposal of discontinued operations, net of income taxes	145	(5,770)	(1,378)	127,973
Charges related to streamlining initiatives of the entity	2,900	300	3,500	25,400
Kate Spade Saturday operations and Jack Spade retail stores | Closures
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Pretax losses from disposal groups	$ 3,500	$ 6,200	$ 21,100	$ 20,400

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
Activity in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost
Balance at the beginning of the period			$ 199,611
Net Income (Loss)	$ 2,303	$ (9,130)	(44,377)	$ 32,636
Balance at the end of the period	173,416	70,166	173,416	70,166
Capital in Excess of Par Value
Activity in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost
Balance at the beginning of the period			199,100	155,984
Share-based compensation			19,440	37,618
Balance at the end of the period	218,540	193,602	218,540	193,602
Retained Earnings
Activity in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost
Balance at the beginning of the period			1,145,643	1,020,633
Net Income (Loss)			(44,377)	32,636
Exercise of stock options			(1,919)	(22,430)
Restricted shares issued, net of cancellations and shares withheld for taxes			(2,451)	(9,171)
Balance at the end of the period	1,096,896	1,021,668	1,096,896	1,021,668
Common Stock in Treasury, at Cost
Activity in the Capital in excess of par value, Retained earnings and Common stock in treasury, at cost
Balance at the beginning of the period			(1,291,583)	(1,364,657)
Exercise of stock options			4,347	63,840
Restricted shares issued, net of cancellations and shares withheld for taxes			1,553	4,384
Balance at the end of the period	$ (1,285,683)	$ (1,296,433)	$ (1,285,683)	$ (1,296,433)

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
Accumulated other comprehensive (loss) Income
Cumulative translation adjustment, net of income taxes of $0					$ (33,287)	$ (32,096)	$ (25,789)
Unrealized gains on cash flow hedging derivatives, net of income taxes of $284, $1,168 and $417, respectively					513	2,110	681
Accumulated other comprehensive loss, net of income taxes	$ (32,774)	$ (25,108)	$ (29,986)	$ (25,108)	(32,774)	(29,986)	(25,108)
Income tax effect on cumulative translation adjustment					0	0	0
Income tax effect on gains on cash flow hedging derivatives					284	1,168	417
Change in each component of Accumulated other comprehensive (loss) income, net of income taxes
Balance at the beginning of the period			(29,986)
Balance at the end of the period	(32,774)	(25,108)	(32,774)	(25,108)
Cumulative Translation Adjustment
Accumulated other comprehensive (loss) Income
Accumulated other comprehensive loss, net of income taxes	(34,310)	(20,374)	(32,096)	(21,862)	(33,287)	(32,096)	(25,789)
Change in each component of Accumulated other comprehensive (loss) income, net of income taxes
Balance at the beginning of the period	(34,310)	(20,374)	(32,096)	(21,862)
Other comprehensive loss before reclassification	1,023	(5,415)	(1,191)	(3,927)
Net current-period other comprehensive income (loss)	1,023	(5,415)	(1,191)	(3,927)
Balance at the end of the period	(33,287)	(25,789)	(33,287)	(25,789)
Unrealized Gains (Losses) on Cash Flow Hedging Derivatives
Accumulated other comprehensive (loss) Income
Accumulated other comprehensive loss, net of income taxes	1,380	251	2,110	983	$ 513	$ 2,110	$ 681
Change in each component of Accumulated other comprehensive (loss) income, net of income taxes
Balance at the beginning of the period	1,380	251	2,110	983
Other comprehensive loss before reclassification	(344)	578	(853)	336
Amounts reclassified from accumulated other comprehensive income	(523)	(148)	(744)	(638)
Net current-period other comprehensive income (loss)	(867)	430	(1,597)	(302)
Balance at the end of the period	$ 513	$ 681	$ 513	$ 681

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
INVENTORIES, NET
Raw materials and work in process	$ 254	$ 538	$ 622
Finished goods	248,153	157,703	220,103
Total inventories, net	$ 248,407	$ 158,241	$ 220,725

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014	Jan. 03, 2015
PROPERTY AND EQUIPMENT, NET
Total property and equipment, gross	$ 317,072	$ 348,811	$ 317,072	$ 348,811	$ 333,212
Less: Accumulated depreciation and amortization	139,739	172,452	139,739	172,452	159,140
Total property and equipment, net	177,333	176,359	177,333	176,359	174,072
Additional disclosures
Depreciation and amortization expense on property and equipment	9,300	9,400	27,000	26,500
Depreciation for property and equipment under capital leases	200	200	600	600
Property and equipment under capital leases	9,300	9,300	9,300	9,300	9,300
Land and buildings
PROPERTY AND EQUIPMENT, NET
Total property and equipment, gross	9,300	9,300	9,300	9,300	9,300
Machinery and equipment
PROPERTY AND EQUIPMENT, NET
Total property and equipment, gross	117,797	155,568	117,797	155,568	140,189
Furniture and fixtures
PROPERTY AND EQUIPMENT, NET
Total property and equipment, gross	69,422	59,422	69,422	59,422	61,694
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Total property and equipment, gross	$ 120,553	$ 124,521	$ 120,553	$ 124,521	$ 122,029

GOODWILL AND INTANGIBLES, NET48

GOODWILL AND INTANGIBLES, NET (Details) - USD ($) $ in Thousands	Feb. 05, 2014	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014	Jul. 04, 2015	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
Amortized intangible assets:
Gross carrying amount								$ 40,199	$ 36,594	$ 37,460
Accumulated amortization								(27,895)	(21,167)	(19,671)
Net								12,304	15,427	17,789
Unamortized intangible assets:
Owned trademarks								74,900	74,900	74,900
Total intangible assets, net								87,204	90,327	92,689
Goodwill		$ 48,790	$ 68,871	$ 68,871	$ 64,798	$ 64,798	$ 49,111	48,790	64,798	68,871
Amortization expense of intangible assets		2,400		1,900		6,900	6,500
Changes in carrying amount of goodwill
Balance at beginning of the period			68,871		64,798	64,798	49,111
Reclassification of goodwill to Investment in unconsolidated subsidiary						(16,009)	21,836
Translation adjustment						1	(2,076)
Balance at end of the period		48,790	64,798	68,871		48,790	68,871
Estimated amortization expense for intangible assets
Fiscal Year 2015								8,000
Fiscal Year 2016								3,300
Fiscal Year 2017								3,000
Fiscal Year 2018								2,300
Fiscal Year 2019								800
Goodwill, Impairment Loss					0
KATE SPADE International
Unamortized intangible assets:
Goodwill		47,612	67,494	67,494	63,483	63,483	47,664	47,612	63,483	67,494
Changes in carrying amount of goodwill
Balance at beginning of the period			67,494		63,483	63,483	47,664
Reclassification of goodwill to Investment in unconsolidated subsidiary	$ 16,000					(16,009)	21,836
Translation adjustment						138	(2,006)
Balance at end of the period		47,612	63,483	67,494		47,612	67,494
Adelington Design Group
Unamortized intangible assets:
Goodwill		1,178	1,377	1,377	1,315	1,315	1,447	1,178	1,315	1,377
Changes in carrying amount of goodwill
Balance at beginning of the period			1,377		$ 1,315	1,315	1,447
Translation adjustment						(137)	(70)
Balance at end of the period		$ 1,178	1,315	$ 1,377		$ 1,178	$ 1,377
Owned trademarks
Amortized intangible assets:
Gross carrying amount								467	467	2,000
Accumulated amortization								(467)	(467)	(400)
Net										1,600
Unamortized intangible assets:
Non-cash impairment charge			$ 1,500
Customer relationships
Amortized intangible assets:
Gross carrying amount								7,168	7,422	7,493
Accumulated amortization								(5,160)	(4,769)	(4,637)
Net								2,008	2,653	2,856
Customer relationships | Weighted Average
Amortized intangible assets:
Amortization Period						12 years
Merchandising rights
Amortized intangible assets:
Gross carrying amount								15,871	12,012	10,322
Accumulated amortization								(5,885)	(4,108)	(3,716)
Net								9,986	7,904	6,606
Merchandising rights | Weighted Average
Amortized intangible assets:
Amortization Period						4 years
Reacquired rights
Amortized intangible assets:
Gross carrying amount								14,371	14,371	15,323
Accumulated amortization								(14,097)	(9,604)	(8,715)
Net								274	4,767	6,608
Reacquired rights | Weighted Average
Amortized intangible assets:
Amortization Period						3 years
Other.
Amortized intangible assets:
Gross carrying amount								2,322	2,322	2,322
Accumulated amortization								(2,286)	(2,219)	(2,203)
Net								$ 36	$ 103	$ 119
Other. | Weighted Average
Amortized intangible assets:
Amortization Period						4 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 04, 2014	Oct. 04, 2014	Oct. 03, 2015
INCOME TAXES
Income tax charge on discontinued operations of Lucky Brand and Juicy Couture	$ 3	$ 3
Expected reduction in the liability for unrecognized tax benefits, inclusive of interest & penalties, within the next 12 months, low end of the range			$ 0.9
Expected reduction in the liability for unrecognized tax benefits, inclusive of interest & penalties, within the next 12 months, high end of the range			3.2
Uncertain tax positions			$ 9.2

DEBT AND LINES OF CREDIT (Detai

DEBT AND LINES OF CREDIT (Details) $ in Thousands	May. 12, 2014USD ($)	Apr. 14, 2014USD ($)	Apr. 10, 2014USD ($)	May. 31, 2014USD ($)item	Jun. 29, 2013USD ($)	Oct. 03, 2015USD ($)	Oct. 04, 2014USD ($)	Jan. 03, 2015USD ($)
DEBT AND LINES OF CREDIT
Total debt						$ 401,613	$ 408,797	$ 410,743
Less: Short-term borrowings						4,499	7,446	10,459
Long-term debt						397,114	401,351	400,284
Amortization payments						4,000
Gains (Losses) on Extinguishment of Debt							(16,914)
Sale Leaseback Agreement for North Bergen, New Jersey Office
Availability under amended facility
Lease term					12 years
10.5% Senior Secured Notes, due April 2019
DEBT AND LINES OF CREDIT
Interest rate (as a percent)		10.50%
Repurchase of aggregate principal amount of debt	$ 334,800	$ 37,200
Repurchase price as percentage of principal amount, plus accrued and unpaid interest		103.00%
Revolving credit facility
DEBT AND LINES OF CREDIT
Total debt							3,000	6,000
Available capacity under amended facility				$ 200,000		200,000
Option to increase borrowing under certain specified conditions				$ 100,000
Number of borrowing options under amended facility | item				2
Availability for number of consecutive business days to apply cash collections to reduce outstanding borrowings, maximum availability under credit facility				3 days
Fixed charge coverage ratio				1
Trailing number of quarters over which fixed charge coverage ratio is required to be maintained | item				4
Availability for number of consecutive business days for which specified fixed charge coverage ratio has to be maintained				3 days
Availability below which specified fixed charge coverage ratio has to be maintained				$ 15,000
Minimum aggregate borrowing availability as a percentage of commitments then in effect below which a specified fixed charge coverage ratio has to be maintained				10.00%
Availability under amended facility
Total Facility				$ 200,000		200,000
Borrowing Base						274,412
Letters of Credit Issued						10,686
Available Capacity						189,314
Excess Capacity						169,314
Revolving credit facility | Maximum
DEBT AND LINES OF CREDIT
Covenant to apply cash collections to reduce outstanding borrowings, maximum availability under credit facility				$ 20,000
Covenant to apply cash collections to reduce outstanding borrowings, maximum availability under credit facility as a percentage of the lesser of the borrowing base and aggregate commitments				12.50%
Letter of Credit [Member]
DEBT AND LINES OF CREDIT
Available capacity under amended facility				$ 125,000
Availability under amended facility
Total Facility				125,000
Standby letters of credit
DEBT AND LINES OF CREDIT
Available capacity under amended facility				40,000
Availability under amended facility
Total Facility				40,000
Multi-currency revolving credit line
DEBT AND LINES OF CREDIT
Available capacity under amended facility				35,000
Availability under amended facility
Total Facility				35,000
Swingline revolving credit line
DEBT AND LINES OF CREDIT
Available capacity under amended facility				30,000
Availability under amended facility
Total Facility				$ 30,000
Euro Currency Credit Line [Member]
DEBT AND LINES OF CREDIT
Variable rate basis				LIBOR
Euro Currency Credit Line [Member] | Minimum
DEBT AND LINES OF CREDIT
Spread on variable rate basis				1.50%
Euro Currency Credit Line [Member] | Maximum
DEBT AND LINES OF CREDIT
Spread on variable rate basis				2.00%
Capital lease obligations
DEBT AND LINES OF CREDIT
Total debt						8,245	8,691	8,585
Availability under amended facility
Total lease payments under sale-leaseback agreement						8,200	8,700	8,600
Short-term borrowings included in capital lease obligations						500	400	500
Capital lease obligations | Sale Leaseback Agreement for North Bergen, New Jersey Office
Availability under amended facility
Sale price of office building under sale-leaseback agreement					$ 8,700
Lease term					12 years
Total lease payments under sale-leaseback agreement					$ 26,900
Term Loan credit facility, due April 2021
DEBT AND LINES OF CREDIT
Total debt						393,368	397,106	396,158
Principal amount of debt			$ 400,000
Unamortized debt discount						1,600	1,900	1,800
Amortization payments						$ 4,000	$ 4,000	$ 4,000
Net proceeds used to redeem the Company's remaining outstanding debt	354,800
Repurchase of aggregate principal amount of debt	$ 392,000
Repurchase price as percentage of principal amount, plus accrued and unpaid interest	105.25%
Quarterly amortization payments			$ 1,000
Floor rate (as a percent)						1.00%
Spread on variable rate basis						3.00%
Additional incremental overall limit						$ 100,000
Refinancing term						6 months
Penalty (as a percentage)						1.00%
Amount required to be prepaid as a percentage of Company's excess cash flow						50.00%
Term Loan credit facility, due April 2021 | Minimum
DEBT AND LINES OF CREDIT
Consolidated net total secured debt ratio used for determining additional amount						1
Term Loan credit facility, due April 2021 | Maximum
DEBT AND LINES OF CREDIT
Consolidated net total secured debt ratio used for determining additional amount						3.75
Consolidated Net Total Debt Ratio Less than 2.75 To 1.0 | Term Loan credit facility, due April 2021
DEBT AND LINES OF CREDIT
Amount required to be prepaid as a percentage of Company's excess cash flow						25.00%
Consolidated net total secured debt ratio						2.75
Consolidated Net Total Debt Ratio Less than 2.25 To 1.0 | Term Loan credit facility, due April 2021
DEBT AND LINES OF CREDIT
Amount required to be prepaid as a percentage of Company's excess cash flow						0.00%
Consolidated net total secured debt ratio						2.25

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Jan. 03, 2015
Assets and liabilities measured at fair value
Property and equipment impairment charge	$ 4,180	$ 336
Fair value on non-recurring basis | Net Carrying Value
Assets and liabilities measured at fair value
Property and equipment		110
Fair value on recurring basis | Fair Value Measured and Recorded at Reporting Date Using: Level 2
Assets and liabilities measured at fair value
Financial Assets: Derivatives	1,515	$ 1,580	$ 3,193
Financial Liabilities: Derivatives	$ (160)

FAIR VALUE MEASUREMENTS (Deta52

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Oct. 04, 2014
Lucky Brand Note
Fair values and carrying values of debt instruments
Initial principal payment		$ 85,000
Accrued Payment In Kind		4,000
Lucky Brand Note | Maximum
Fair values and carrying values of debt instruments
Fair Value		89,000
Lucky Brand Note | Minimum
Fair values and carrying values of debt instruments
Fair Value		79,000
Term Loan credit facility, due April 2021
Fair values and carrying values of debt instruments
Fair Value	$ 391,178	384,786	$ 388,776
Carrying value	$ 393,368	396,158	397,106
Revolving credit facility
Fair values and carrying values of debt instruments
Fair Value		6,000	3,000
Carrying value		$ 6,000	$ 3,000

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	3 Months Ended
	Jun. 29, 2013item	Oct. 03, 2015USD ($)item
Estimated future minimum lease payments under the noncancelable capital lease
2,015		$ 514
2,016		2,089
2,017		2,141
2,018		2,194
2,019		2,247
Thereafter		13,081
Total		22,266
Less: Amounts representing interest and executory costs		(14,021)
Net present values		8,245
Less: Capital lease obligations included in short-term debt		(499)
Long-term capital lease obligations		$ 7,746
Liz Claiborne Canada Retail Stores
Capital lease obligations
Number of store leases assigned to third parties | item		277
Number of leases for which the entity is secondarily liable | item		140
Future aggregate payments under disposition leases		$ 100,200
Sale Leaseback Agreement for North Bergen, New Jersey Office
Capital lease obligations
Lease term	12 years
Number of renewal options under the sale-leaseback transaction | item	2
Term of options under the sale-leaseback transaction	5 years

STREAMLINING INITIATIVES (Detai

STREAMLINING INITIATIVES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
STREAMLINING INITIATIVES
Expenses associated with streamlining actions	$ 7,030	$ 1,134	$ 33,025	$ 34,979
Non cash pretax charges Asset write-downs			7,700	18,200
Roll forward of liability for streamlining initiatives
Balance at the beginning of the period			9,897
2015 provision	7,030	1,134	33,025	34,979
2015 asset write-downs			(7,389)
Translation difference			(10)
2015 spending			(20,960)
Balance at the end of the period	14,563		14,563
Share-based compensation	6,684	5,740	19,440	31,772
KATE SPADE North America
STREAMLINING INITIATIVES
Expenses associated with streamlining actions	4,343	23	17,603	3,178
Roll forward of liability for streamlining initiatives
2015 provision	4,343	23	17,603	3,178
Kate Spade International
STREAMLINING INITIATIVES
Expenses associated with streamlining actions	1,517		9,164
Roll forward of liability for streamlining initiatives
2015 provision	1,517		9,164
Adelington Design Group
STREAMLINING INITIATIVES
Expenses associated with streamlining actions	(29)	6	1,835	222
Roll forward of liability for streamlining initiatives
2015 provision	(29)	6	1,835	222
Other
STREAMLINING INITIATIVES
Expenses associated with streamlining actions	1,199	1,105	4,423	31,579
Roll forward of liability for streamlining initiatives
2015 provision	1,199	1,105	4,423	31,579
Pre Tax Charges
STREAMLINING INITIATIVES
Expenses associated with streamlining actions			33,000
Roll forward of liability for streamlining initiatives
2015 provision			33,000
Payroll and Related Costs
STREAMLINING INITIATIVES
Expenses associated with streamlining actions			12,370
Roll forward of liability for streamlining initiatives
Balance at the beginning of the period			2,080
2015 provision			12,370
Translation difference			(7)
2015 spending			(9,959)
Balance at the end of the period	4,484		4,484
Contract Termination Costs
STREAMLINING INITIATIVES
Expenses associated with streamlining actions			11,206	1,300
Roll forward of liability for streamlining initiatives
Balance at the beginning of the period			987
2015 provision			11,206	1,300
2015 spending			(6,578)
Balance at the end of the period	5,615		5,615
Asset Write Downs and Disposals
STREAMLINING INITIATIVES
Expenses associated with streamlining actions			7,389	900
Roll forward of liability for streamlining initiatives
2015 provision			7,389	900
2015 asset write-downs			(7,389)
Other Costs
STREAMLINING INITIATIVES
Expenses associated with streamlining actions			2,060	200
Roll forward of liability for streamlining initiatives
Balance at the beginning of the period			6,830
2015 provision			2,060	200
Translation difference			(3)
2015 spending			(4,423)
Balance at the end of the period	4,464		4,464
Withdrawal liability incurred	3,300		3,300
Payroll and Related Costs and Spending
Roll forward of liability for streamlining initiatives
Share-based compensation	$ 100	$ (300)	$ 300	$ 17,200

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
Anti-dilutive shares
Loss from continuing operations	$ 4,510	$ 2,623	$ (39,800)	$ (49,768)
(Loss) income from discontinued operations, net of income taxes	(2,207)	(11,753)	(4,577)	82,404
Net (loss) income	$ 2,303	$ (9,130)	$ (44,377)	$ 32,636
Basic weighted average shares outstanding	127,682	126,971	127,611	125,972
Stock options and nonvested shares	436	639
Diluted weighted average shares outstanding	128,118	127,610	127,611	125,972
Basic earnings per share
(Loss) income from continuing operations (in dollars per share)	$ 0.04	$ 0.02	$ (0.31)	$ (0.40)
(Loss) income from discontinued operations (in dollars per share)	(0.02)	(0.09)	(0.04)	0.66
Net (loss) income (in dollars per share)	0.02	(0.07)	(0.35)	0.26
Diluted earnings per share
(Loss) Income from Continuing Operations (in dollars per share)	0.04	0.02	(0.31)	(0.40)
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	(0.02)	(0.09)	(0.04)	0.66
Net income (loss) (in dollars per share)	$ 0.02	$ (0.07)	$ (0.35)	$ 0.26
Shares excluded from computation of diluted loss per share	436	639
Stock options
Anti-dilutive shares
Stock options and nonvested shares		1,100	900	1,100
Diluted earnings per share
Shares excluded from computation of diluted loss per share		1,100	900	1,100
Outstanding nonvested shares
Anti-dilutive shares
Stock options and nonvested shares		1,700	2,000	1,700
Diluted earnings per share
Shares excluded from computation of diluted loss per share		1,700	2,000	1,700

ADDITIONAL FINANCIAL INFORMAT56

ADDITIONAL FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	Feb. 03, 2014	Feb. 03, 2014	Oct. 03, 2015	Oct. 04, 2014	Jan. 03, 2015
Condensed Consolidated Statements of Cash Flows Supplementary Disclosures
Net income tax refunds received				$ 300
Net income tax payments			$ (2,600)
Interest payments			13,000	29,900
Accrued capital expenditures			11,100	$ 14,200	$ 9,800
Interest received			9,400
Net proceeds from settlement of note receivable			$ 75,128
Convertible Notes Payable
Condensed Consolidated Statements of Cash Flows Supplementary Disclosures
Debt conversion, aggregate principal amount					$ 32,300
Lucky Brand Note | Lucky Brand | LBD Acquisition
Condensed Consolidated Statements of Cash Flows Supplementary Disclosures
Term of note	3 years	3 years
Net proceeds from settlement of note receivable	$ 85,000	$ 85,000

ADDITIONAL FINANCIAL INFORMAT57

ADDITIONAL FINANCIAL INFORMATION (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014	Jan. 03, 2015
Related Party Transactions
Equity in (loss) earnings of equity investee	$ 1.3	$ 1.2	$ 4.1	$ 1.4
Investments in equity investees amounted	28.3	$ 8	$ 28.3	$ 8	$ 9.2
KS China Co Limited | Globalluxe Kate Spade H K Limited
Related Party Transactions
Loans to related parties	5
KS China Co Limited | Walton Brown
Related Party Transactions
Loans to related parties	$ 5

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 03, 2015USD ($)	Apr. 04, 2015USD ($)	Oct. 04, 2014USD ($)	Oct. 03, 2015USD ($)segment	Oct. 04, 2014USD ($)
SEGMENT REPORTING
Number of reportable segments | segment				3
Net Sales	$ 277,328		$ 250,417	$ 813,762	$ 740,029
% to Total	100.00%		100.00%	100.00%	100.00%
Adjusted EBITDA	$ 36,633		$ 20,724	$ 102,509	$ 70,030
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	36,633		20,724	102,509	70,030
Depreciation and amortization, net	(11,676)		(11,752)	(34,094)	(34,033)
Charges due to streamlining initiatives, brand-exiting activities, acquisition related costs and loss on asset disposals and impairments, net	(6,871)		(870)	(33,824)	(19,035)
Joint venture contract termination fee		$ (26,000)		(26,000)
Share-based compensation	(6,684)		(5,740)	(19,440)	(31,772)
Adjusted Equity loss (income) included in Reportable Segments Adjusted EBITDA	915		1,185	3,586	1,358
Operating (Loss) Income	12,317		3,547	(7,263)	(13,452)
Other expense, net	(1,560)		(1,805)	(4,778)	(1,717)
Loss on settlement of note receivable				(9,873)
Loss on extinguishment of debt					(16,914)
Interest expense, net	(5,274)		(2,189)	(13,982)	(18,185)
Provision (benefit) for income taxes	973		(3,070)	3,904	(500)
(Loss) Income from Continuing Operations	4,510		2,623	(39,800)	(49,768)
Restructuring expenses	400			500
Significant changes in segment assets				0
Payroll and Related Costs and Spending
Reconciliation to Loss from Continuing Operations
Share-based compensation	(100)		300	$ (300)	(17,200)
Domestic
SEGMENT REPORTING
Number of Operating Segments | segment				1
Net Sales	$ 223,058		$ 192,805	$ 650,239	$ 572,073
% to Total	80.40%		77.00%	79.90%	77.30%
International
SEGMENT REPORTING
Number of Operating Segments | segment				4
Net Sales	$ 54,270		$ 57,612	$ 163,523	$ 167,956
% to Total	19.60%		23.00%	20.10%	22.70%
KATE SPADE North America
SEGMENT REPORTING
Adjusted EBITDA	$ 30,713		$ 21,130	$ 86,566	$ 69,614
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	30,713		21,130	86,566	69,614
KATE SPADE International
SEGMENT REPORTING
Adjusted EBITDA	4,793		(1,346)	13,215	81
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	4,793		(1,346)	13,215	81
Adjusted Equity loss (income) included in Reportable Segments Adjusted EBITDA	(900)		(1,200)	(3,600)	(1,400)
Adelington Design Group
SEGMENT REPORTING
Adjusted EBITDA	1,127		1,030	2,728	1,020
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	1,127		1,030	2,728	1,020
Other
SEGMENT REPORTING
Adjusted EBITDA			(90)		(685)
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA			(90)		(685)
Reportable Segments
SEGMENT REPORTING
Net Sales	$ 277,328		$ 250,417	$ 813,762	$ 740,029
% to Total	100.00%		100.00%	100.00%	100.00%
Reportable Segments | KATE SPADE North America
SEGMENT REPORTING
Net Sales	$ 228,493		$ 192,886	$ 659,809	$ 565,021
% to Total	82.40%		77.00%	81.10%	76.40%
Adjusted EBITDA	$ 30,713		$ 21,130	$ 86,566	$ 69,614
% of Sales	13.40%		11.00%	13.10%	12.30%
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	$ 30,713		$ 21,130	$ 86,566	$ 69,614
Reportable Segments | KATE SPADE International
SEGMENT REPORTING
Net Sales	$ 42,870		$ 50,906	$ 136,056	$ 153,512
% to Total	15.50%		20.30%	16.70%	20.70%
Adjusted EBITDA	$ 4,793		$ (1,346)	$ 13,215	$ 81
% of Sales	11.20%		(2.60%)	9.70%	0.10%
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	$ 4,793		$ (1,346)	$ 13,215	$ 81
Reportable Segments | Adelington Design Group
SEGMENT REPORTING
Net Sales	$ 5,965		$ 6,625	$ 17,897	$ 21,496
% to Total	2.10%		2.70%	2.20%	2.90%
Adjusted EBITDA	$ 1,127		$ 1,030	$ 2,728	$ 1,020
% of Sales	18.90%		15.50%	15.20%	4.70%
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA	$ 1,127		$ 1,030	$ 2,728	$ 1,020
Reportable Segments | Other
SEGMENT REPORTING
Adjusted EBITDA			(90)		(685)
Reconciliation to Loss from Continuing Operations
Adjusted EBITDA			$ (90)		$ (685)

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) $ in Thousands, ¥ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2015USD ($)	Oct. 04, 2014USD ($)	Oct. 03, 2015USD ($)	Oct. 04, 2014USD ($)	Oct. 03, 2015JPY (¥)	Jan. 03, 2015USD ($)
Designated as Hedging Instrument
Asset Derivatives
Asset Derivatives, Notional amount	$ 32,912	$ 22,050	$ 32,912	$ 22,050		$ 39,100
Asset Derivatives, Fair value	1,515	1,233	1,515	1,233		3,066
Liability Derivatives
Liability Derivatives, Notional Amount	2,200		2,200
Liability Derivatives, Fair value	93		93
Not Designated as Hedging Instrument
Asset Derivatives
Asset Derivatives, Notional amount		36,748		36,748		33,350
Asset Derivatives, Fair value		347		347		$ 127
Liability Derivatives
Liability Derivatives, Notional Amount	33,303		33,303
Liability Derivatives, Fair value	67		67
Forward Contracts
DERIVATIVE INSTRUMENTS
Transaction losses related to derivative instruments reflected within Other expense, net	(800)	$ 2,400	(100)	$ 1,300
Forward Contracts | Designated as Hedging Instrument | Short | Contracts maturing through June 2016
DERIVATIVE INSTRUMENTS
Forward contracts to sell foreign currency in exchange of U.S. dollars	14,400		14,400		¥ 1,700
Forward Contracts | Designated as Hedging Instrument | Short | Contracts maturing through December 2016
DERIVATIVE INSTRUMENTS
Forward contracts to sell foreign currency in exchange of U.S. dollars	20,700		20,700		2.4
Forward Contracts | Not Designated as Hedging Instrument | Short
DERIVATIVE INSTRUMENTS
Forward contracts to sell foreign currency in exchange of U.S. dollars	$ 33,300		$ 33,300		¥ 4,000

DERIVATIVE INSTRUMENTS (Detai60

DERIVATIVE INSTRUMENTS (Details 2) - Foreign Exchange Contract - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014
Derivative instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion)	$ (534)	$ 933	$ (1,326)	$ 541
Amount of Gain Reclassified from Accumulated OCI into Operations (Effective Portion)	$ 813	$ 239	$ 1,156	$ 1,028

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015	Oct. 04, 2014	Jan. 03, 2015
SHARE-BASED COMPENSATION
Share-based compensation expense	$ 6,600	$ 5,800	$ 19,400	$ 31,800
Share-based compensation	6,684	5,740	19,440	31,772
Payroll and Related Costs and Spending
SHARE-BASED COMPENSATION
Share-based compensation expense	100	300	300	17,200
Share-based compensation	$ 100	$ (300)	$ 300	17,200
Stock options
SHARE-BASED COMPENSATION
Vesting period			3 years
Valuation Assumptions:
Weighted-average fair value of options granted (in dollars per share)			$ 15.92
Historic volatility (as a percent)			76.50%
Weighted-average volatility (as a percent)			58.70%
Expected term (in years)			4 years 2 months 12 days
Risk-free rate (as a percent)			1.90%
Expected annual forfeiture (as a percent)			15.30%
Shares
Outstanding at the beginning of the period (in shares)			1,030,969
Granted			174,458
Exercised (in shares)			(233,000)
Cancelled/expired (in shares)			(52,714)
Outstanding at end of the period (in shares)	919,713		919,713		1,030,969
Vested or expected to vest at the end of the period (in shares)	880,523		880,523
Exercisable at the end of the period (in shares)	585,373		585,373
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)			$ 11.25
Granted (in dollars per share)			34.29
Exercised (in dollars per share)			10.42
Cancelled/expired (in dollars per share)			21.57
Outstanding at the end of the period (in dollars per share)	$ 15.24		15.24		$ 11.25
Vested or expected to vest at the end of the period (in dollars per share)	14.44		14.44
Exercisable at the end of the period (in dollars per share)	$ 8.02		$ 8.02
Weighted Average Remaining Contractual Term
Outstanding at the end of the period			3 years 8 months 12 days		3 years 10 months 24 days
Vested or expected to vest at the end of the period			3 years 7 months 6 days
Exercisable at the end of the period			2 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)			$ 21,613
Exercised (in dollars)			5,659
Outstanding at the end of the period (in dollars)	$ 7,358		7,358		$ 21,613
Vested or expected to vest at the end of the period (in dollars)	7,357		7,357
Exercisable at the end of the period (in dollars)	$ 7,332		$ 7,332
Additional disclosure
Nonvested stock options outstanding (in shares)	300,000		300,000
Weighted average grant date fair value per award for nonvested stock options (in dollars per share)	$ 13.22		$ 13.22
Total unrecognized compensation cost related to nonvested stock options granted	$ 2,500		$ 2,500
Weighted average recognition period of unrecognized stock-based compensation expense			1 year 7 months 6 days
Fair value of shares vested under stock option plans			$ 2,300	$ 3,200
Stock options | Minimum
SHARE-BASED COMPENSATION
Contractual term			7 years
Stock options | Maximum
SHARE-BASED COMPENSATION
Contractual term			10 years

SHARE-BASED COMPENSATION (Det62

SHARE-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Apr. 04, 2015	Oct. 03, 2015	Oct. 04, 2014	Oct. 03, 2015
Valuation Assumptions:
Weighted-average fair value (in dollars per share)		$ 43.35		$ 43.35
Expected volatility (as a percent)		43.20%
Weighted-average expected annual forfeiture (as a percent)		5.00%
Weighted Average Grant Date Fair Value
Nonvested stock at the end of the period (in dollars per share)		$ 43.35
Minimum
Valuation Assumptions:
Risk-free rate (as a percent)		1.10%
Maximum
Valuation Assumptions:
Risk-free rate (as a percent)		1.70%
Restricted Stock
SHARE-BASED COMPENSATION
Percentage of shares vesting on the second anniversary from the date of grant		50.00%
Percentage of shares vesting on the third anniversary from the date of grant	50.00%
Valuation Assumptions:
Weighted-average fair value (in dollars per share)	$ 45.39	$ 45.39		$ 44.44
Shares
Nonvested stock at the beginning of the period (in shares)	1,719,574	1,719,574
Granted (in shares)		557,984
Vested (in shares)		(107,720)
Cancelled (in shares)		(199,509)
Nonvested stock at the end of the period (in shares)		1,970,329
Expected to vest at the end of the period (in shares)				1,768,101
Weighted Average Grant Date Fair Value
Nonvested stock at the beginning of the period (in dollars per share)	$ 45.39	$ 45.39
Granted (in dollars per share)		37.28
Vested (in dollars per share)		20.47
Cancelled (in dollars per share)		45.57
Nonvested stock at the end of the period (in dollars per share)		$ 44.44
Expected to vest at the end of the period (in dollars per share)				$ 44.66
Additional disclosures
Total unrecognized compensation cost related to nonvested stock awards granted under restricted stock plans				$ 44.1
Weighted average recognition period of unrecognized stock-based compensation expense		2 years 2 months 12 days
Fair value of shares vested under restricted stock plans		$ 2.2	$ 6.8
LTIP Shares | Key Executives
SHARE-BASED COMPENSATION
Aggregate grant date value		$ 4.6
Shares
Granted (in shares)		105,245
Annual Long Term Incentive Awards | Minimum
SHARE-BASED COMPENSATION
Number of shares to be earned as a percentage of target amount		30.00%
Annual Long Term Incentive Awards | Maximum
SHARE-BASED COMPENSATION
Number of shares to be earned as a percentage of target amount		200.00%
Performance Shares
SHARE-BASED COMPENSATION
Aggregate grant date value		$ 9.1
Valuation Assumptions:
Weighted-average fair value (in dollars per share)		$ 37.47		$ 37.47
Expected volatility (as a percent)		41.60%
Risk-free rate (as a percent)		1.00%
Weighted-average expected annual forfeiture (as a percent)		4.10%
Shares
Expected to vest at the end of the period (in shares)				243,419
Weighted Average Grant Date Fair Value
Nonvested stock at the end of the period (in dollars per share)		$ 37.47
Performance Shares | Minimum
Weighted Average Grant Date Fair Value
Number of awards granted depending on the Company's Total Shareholder Return ("TSR") relative to the TSR of the S&P Mid-Cap 400 Index (as a percent)		0.00%
Performance Shares | Maximum
Weighted Average Grant Date Fair Value
Number of awards granted depending on the Company's Total Shareholder Return ("TSR") relative to the TSR of the S&P Mid-Cap 400 Index (as a percent)		200.00%