Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
CURRENT ASSETS | ||
Cash and cash equivalents | 333.4 | 338.3 |
Accounts receivable | 303.1 | 370.2 |
Inventories, primarily finished goods | 375 | 509.5 |
Prepaid and refundable income taxes | 0 | 16.9 |
Deferred taxes | 28.1 | 28 |
Prepaid expenses and other current assets | 25.6 | 42.6 |
TOTAL CURRENT ASSETS | 1065.2 | 1305.5 |
PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation and amortization | 239 | 301 |
GOODWILL | 40.1 | 160.7 |
OTHER INTANGIBLES, less accumulated amortization | 559.8 | 590.8 |
PREPAID AND REFUNDABLE INCOME TAXES | 4.7 | 0 |
DEFERRED TAXES | 3.9 | 14.2 |
INVESTMENTS IN AND LOANS TO UNCONSOLIDATED AFFILIATES | 42.1 | 19.6 |
OTHER ASSETS | 70.2 | 35.7 |
TOTAL ASSETS | 2,025 | 2427.5 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 0 | 250 |
Current portion of capital lease obligations | 2.6 | 3.1 |
Accounts payable | 185.3 | 231.4 |
Income taxes payable | 11.8 | 0.1 |
Accrued employee compensation and benefits | 42.7 | 30 |
Accrued restructuring and severance payments | 9.7 | 13 |
Accrued expenses and other current liabilities | 72 | 84.3 |
TOTAL CURRENT LIABILITIES | 324.1 | 611.9 |
NONCURRENT LIABILITIES | ||
Long-term debt | 499.5 | 499.5 |
Obligations under capital leases | 26.9 | 29.4 |
Income taxes | 0 | 20.8 |
Other | 82 | 83.7 |
TOTAL NONCURRENT LIABILITIES | 608.4 | 633.4 |
TOTAL LIABILITIES | 932.5 | 1245.3 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value - shares authorized 1.0; none issued | 0 | 0 |
Common stock, $.01 par value - shares authorized 200.0; issued 156.8 and 154.8 | 1.6 | 1.5 |
Additional paid-in capital | 1360.3 | 1350.7 |
Retained earnings | 1564.4 | 1,668 |
Accumulated other comprehensive loss | -7.6 | -11.7 |
Treasury stock, 71.4 shares for both periods, at cost | -1826.3 | -1826.3 |
TOTAL JONES STOCKHOLDERS’ EQUITY | 1092.4 | 1182.2 |
Noncontrolling interest | 0.1 | 0 |
TOTAL EQUITY | 1092.5 | 1182.2 |
TOTAL LIABILITIES AND EQUITY | $2,025 | 2427.5 |
Parenthetical Data To The Conso
Parenthetical Data To The Consolidated Balance Sheets (USD $) | ||
Share data in Millions | Dec. 31, 2009
| Dec. 31, 2008
|
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock - shares authorized | 200 | 200 |
Common stock, shares issued | 156.8 | 154.8 |
Treasury stock, shares | 71.4 | 71.4 |
Consolidated Statements of Oper
Consolidated Statements of Operations (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Income Statement [Abstract] | |||
Net sales | 3279.7 | 3562.6 | 3793.3 |
Licensing income | 46.8 | 52.1 | 52 |
Other revenues | 0.9 | 1.7 | 3.2 |
Total revenues | 3327.4 | 3616.4 | 3848.5 |
Cost of goods sold | 2181.5 | 2440.2 | 2609.1 |
Gross profit | 1145.9 | 1176.2 | 1239.4 |
Selling, general and administrative expenses | 1008.7 | 1069.2 | 1100.4 |
Trademark impairments | 28.7 | 25.2 | 88 |
Goodwill impairment | 120.6 | 813.2 | 78 |
Operating loss | -12.1 | -731.4 | (27) |
Interest income | 2.8 | 7.5 | 3.7 |
Interest expense and financing costs | 55.6 | 49.1 | 51.5 |
Loss and costs associated with repurchase of 4.250% Senior Notes | 1.5 | 0 | 0 |
Gain on sale of interest in Australian joint venture | 0 | 0.8 | 8.2 |
Equity in (loss) earnings of unconsolidated affiliates | -3.7 | -0.7 | 8.1 |
Loss from continuing operations before provision (benefit) for income taxes | -70.1 | -772.9 | -58.5 |
Provision (benefit) for income taxes | 16.2 | -6.6 | -104.4 |
(Loss) income from continuing operations | -86.3 | -766.3 | 45.9 |
Income from discontinued operations, including gain on sale of Barneys, net of tax | 0 | 0.9 | 265.2 |
Net (loss) income | -86.3 | -765.4 | 311.1 |
Less: income attributable to noncontrolling interest | 0.3 | 0 | 0 |
(Loss) income attributable to Jones | -86.6 | -765.4 | 311.1 |
Basic earnings per share | |||
(Loss) income from continuing operations attributable to Jones | -1.02 | -9.05 | 0.45 |
Income from discontinued operations attributable to Jones | $0 | 0.01 | 2.62 |
Basic (loss) earnings per share attributable to Jones | -1.02 | -9.04 | 3.07 |
Diluted earnings per share | |||
(Loss) income from continuing operations attributable to Jones | -1.02 | -9.05 | 0.45 |
Income from discontinued operations attributable to Jones | $0 | 0.01 | 2.58 |
Diluted (loss) earnings per share attributable to Jones | -1.02 | -9.04 | 3.03 |
Weighted Average Number of Shares [Abstract] | |||
Basic Weighted average common shares outstanding | 81.7 | 82.9 | 99.9 |
Diluted Weighted average common shares outstanding | 81.7 | 82.9 | 101.3 |
Dividends declared per share | 0.2 | 0.56 | 0.56 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (USD $) | ||||||||
In Millions | Capital Units [Member]
| Common Stock [Member]
| Additional Paid-in Capital [Member]
| Retained Earnings [Member]
| Accumulated Other Comprehensive Income [Member]
| Treasury Stock [Member]
| Noncontrolling Interest [Member]
| Total
|
Beginning Balance, Shares at Dec. 31, 2006 | 107.9 | |||||||
Beginning Balance at Dec. 31, 2006 | 1.5 | $1,320 | 2226.4 | -5.9 | -1330.4 | $0 | 2211.6 | |
Comprehensive income: | ||||||||
Net (loss) income | 0 | 0 | 0 | 311.1 | 0 | 0 | 0 | 311.1 |
Pension and postretirement liability adjustments, net of tax | 0 | 0 | 0 | 0 | 2.9 | 0 | 0 | 2.9 |
Change in fair value of cash flow hedges, net of tax | 0 | 0 | 0 | 0 | -2.5 | 0 | 0 | -2.5 |
Reclassification adjustment for hedge gains and losses included in net (loss) income, net of tax | 0 | 0 | 0 | 0 | 0.5 | 0 | 0 | 0.5 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | 7.6 | 0 | 0 | 7.6 |
Total comprehensive (loss) income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 319.6 |
Effect of sale of Barneys | 0 | 0 | -6.8 | 0 | -0.5 | 0 | 0 | -7.3 |
Forfeitures of restricted stock by employees, net of issuances (in shares) | -0.2 | |||||||
Forfeitures of restricted stock by employees, net of issuances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Amortization of employee stock options and restricted stock | 0 | 0 | 14 | 0 | 0 | 0 | 0 | 14 |
Exercise of employee stock options | 0 | 11.1 | 0 | 0 | 0 | 0 | 11.1 | |
Exercise of employee stock options (in shares) | 0.6 | |||||||
Tax effects from exercise of employee stock options and vesting of restricted stock | 0 | 0 | 1.4 | 0 | 0 | 0 | 0 | 1.4 |
Other | 0 | 0 | 0 | 0.5 | 0 | 0 | 0 | 0.5 |
Dividends on common stock | 0 | 0 | 0 | -57.2 | 0 | 0 | 0 | -57.2 |
Treasury stock acquired | 0 | 0 | 0 | 0 | -496.9 | 0 | -496.9 | |
Treasury stock acquired (in shares) | (23) | |||||||
Ending Balance, Shares at Dec. 31, 2007 | 85.3 | |||||||
Ending Balance at Dec. 31, 2007 | 1.5 | 1339.7 | 2480.8 | 2.1 | -1827.3 | 0 | 1996.8 | |
Comprehensive income: | ||||||||
Net (loss) income | 0 | 0 | 0 | -765.4 | 0 | 0 | 0 | -765.4 |
Pension and postretirement liability adjustments, net of tax | 0 | 0 | 0 | 0 | -5.7 | 0 | 0 | -5.7 |
Change in fair value of cash flow hedges, net of tax | 0 | 0 | 0 | 0 | 0.6 | 0 | 0 | 0.6 |
Reclassification adjustment for hedge gains and losses included in net (loss) income, net of tax | 0 | 0 | 0 | 0 | 0.7 | 0 | 0 | 0.7 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | -9.4 | 0 | 0 | -9.4 |
Total comprehensive (loss) income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -779.2 |
Issuance of restricted stock to employees, net of forfeitures (in shares) | 1.3 | |||||||
Issuance of restricted stock to employees, net of forfeitures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Amortization of employee stock options and restricted stock | 0 | 0 | 12.3 | 0 | 0 | 0 | 0 | 12.3 |
Exercise of employee stock options | 0 | 0 | 0.1 | 0 | 0 | 0 | 0 | 0.1 |
Tax effects from exercise of employee stock options and vesting of restricted stock | 0 | 0 | -1.4 | 0 | 0 | 0 | 0 | -1.4 |
Dividends on common stock | 0 | 0 | 0 | -47.4 | 0 | 0 | 0 | -47.4 |
Treasury stock acquired | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |
Treasury stock acquired (in shares) | -3.2 | |||||||
Ending Balance, Shares at Dec. 31, 2008 | 83.4 | |||||||
Ending Balance at Dec. 31, 2008 | 1.5 | 1350.7 | 1,668 | -11.7 | -1826.3 | 0 | 1182.2 | |
Comprehensive income: | ||||||||
Net (loss) income | 0 | 0 | 0 | -86.6 | 0 | 0 | 0.3 | -86.3 |
Pension and postretirement liability adjustments, net of tax | 0 | 0 | 0 | 0 | -0.6 | 0 | 0 | -0.6 |
Change in fair value of cash flow hedges, net of tax | 0 | 0 | 0 | 0 | -0.7 | 0 | 0 | -0.7 |
Reclassification adjustment for hedge gains and losses included in net (loss) income, net of tax | 0 | 0 | 0 | 0 | 0.4 | 0 | 0 | 0.4 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 5 |
Total comprehensive (loss) income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -82.2 |
Issuance of restricted stock to employees, net of forfeitures (in shares) | 2 | |||||||
Issuance of restricted stock to employees, net of forfeitures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Amortization of employee stock options and restricted stock | 0 | 0.1 | 12.9 | 0 | 0 | 0 | 0 | 13 |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | -0.2 | -0.2 |
Tax effects from exercise of employee stock options and vesting of restricted stock | 0 | 0 | -1.1 | 0 | 0 | 0 | 0 | -1.1 |
Tax effects of expired employee stock options | 0 | 0 | -2.2 | 0 | 0 | 0 | 0 | -2.2 |
Dividends on common stock | 0 | 0 | 0 | (17) | 0 | 0 | 0 | (17) |
Ending Balance, Shares at Dec. 31, 2009 | 85.4 | |||||||
Ending Balance at Dec. 31, 2009 | 1.6 | 1360.3 | 1564.4 | -7.6 | -1826.3 | 0.1 | 1092.5 |
Parenthetical Data To The Stock
Parenthetical Data To The Stockholders' Equity (USD $) | |||
In Millions, except Per Share data | 1/1/2009 - 12/31/2009
| 1/1/2008 - 12/31/2008
| 1/1/2007 - 12/31/2007
|
Statement of Stockholders' Equity [Abstract] | |||
Tax benefit (provision) on pension and postretirement liabilty adjustments | 0.3 | 3.6 | -1.7 |
Tax benefit (provision) on change in fair value of cash flow hedges | 0.4 | -0.6 | 1.8 |
Tax provision (benefit) on reclassification adjustment for hedge gains and losses included in net (income) loss. | -0.2 | 0.3 | 0.4 |
Dividends declared per share | 0.2 | 0.56 | 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | -86.3 | -765.4 | 311.1 |
Less: income from discontinued operations, net of tax | 0 | -0.9 | -265.2 |
(Loss) income from continuing operations | -86.3 | -766.3 | 45.9 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Loss and costs associated with repurchase of 4.250% Senior Notes | 1.5 | 0 | 0 |
Impairment losses on property, plant and equipment | 24.4 | 0.9 | 2.1 |
Trademark impairments | 28.7 | 25.2 | 88 |
Goodwill impairment | 120.6 | 813.2 | 78 |
Amortization of employee stock options and restricted stock | 13 | 12.3 | 14 |
Depreciation and other amortization | 78.7 | 80.8 | 76.5 |
Gain on sale of interest in Australian joint venture | 0 | -0.8 | -8.2 |
Equity in loss (earnings) of unconsolidated affiliates | 3.7 | 0.7 | -8.1 |
Dividends received from unconsolidated affiliates | 0 | 0 | 2.6 |
Provision for losses on accounts receivable | 1.7 | 10.3 | 0.2 |
Deferred taxes | 10.7 | (5) | 8.7 |
Write-off of deferred financing fees | 4.4 | 1.1 | 0 |
Losses on sales of property, plant and equipment | 0.7 | 2.7 | 4 |
Other items, net | 0.6 | -0.4 | -1.8 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 56.3 | -45.2 | 22.5 |
Inventories | 136.9 | 11.1 | 9.6 |
Prepaid expenses and other current assets | 9.5 | 22.2 | 1.2 |
Accounts payable | -46.8 | 8.6 | -55.5 |
Income taxes payable/prepaid income taxes | 0.6 | 12.8 | -171.7 |
Accrued expenses and other current liabilities | -4.6 | -15.9 | 4.9 |
Other assets and liabilities | -5.3 | 7.2 | 6.6 |
Total adjustments | 435.3 | 941.8 | 73.6 |
Net cash provided by operating activities of continuing operations | 349 | 175.5 | 119.5 |
Net cash provided by operating activities of discontinued operations | 0 | 0 | 39 |
Net cash provided by operating activities | 349 | 175.5 | 158.5 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sale of Barneys, net of cash sold and selling costs | 0 | 0 | 845.5 |
Proceeds from sale of interest in Australian joint venture | 0 | 0.8 | 20.7 |
Investment in GRI Group Limited | -15.2 | -20.2 | 0 |
Costs related to acquisition of Rachel Roy Fashions, Inc. | 0 | -0.2 | 0 |
Capital expenditures | (30) | -71.2 | -111.2 |
Proceeds from sale of Mexican operations | 0 | 5.9 | 0 |
Proceeds from sales of property, plant and equipment | 0 | 0.5 | 3 |
Net cash (used in) provided by investing activities of continuing operations | -45.2 | -84.4 | 758 |
Net cash used in investing activities of discontinued operations | 0 | 0 | -40.5 |
Net cash (used in) provided by investing activities | -45.2 | -84.4 | 717.5 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of 4.250% Senior Notes | -237.7 | 0 | 0 |
Redemption at maturity of 4.250% Senior Notes | -7.5 | 0 | 0 |
Payment of consent fees | -12.9 | 0 | 0 |
Costs associated with consent fees and repurchase of notes | -1.8 | 0 | 0 |
Costs related to secured revolving credit agreement | -30.1 | 0 | 0 |
Net repayment under credit facilities | 0 | 0 | (100) |
Purchases of treasury stock | 0 | 1 | -496.9 |
Proceeds from exercise of employee stock options | 0 | 0.1 | 11.1 |
Dividends paid | (17) | -47.4 | -57.2 |
Net cash transferred to discontinued operations | 0 | 0 | -21.7 |
Principal payments on capital leases | -3.1 | -4.8 | -4.1 |
Excess tax benefits from share-based payment arrangement | 0 | 0 | 2.4 |
Other | -0.2 | -0.3 | 0 |
Net cash used in financing activities of continuing operations | -310.3 | -51.4 | -666.4 |
Net cash provided by financing activities of discontinued operations | 0 | 0 | 17.9 |
Net cash used in financing activities | -310.3 | -51.4 | -648.5 |
EFFECT OF EXCHANGE RATES ON CASH | 1.6 | -4.2 | 3.8 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -4.9 | 35.5 | 231.3 |
CASH AND CASH EQUIVALENTS, BEGINNING, including $7.2 reported under assets held for sale in 2007 | 338.3 | 302.8 | 71.5 |
CASH AND CASH EQUIVALENTS, ENDING | 333.4 | 338.3 | 302.8 |
1_Parenthetical Data To The Con
Parenthetical Data To The Consolidated Statements of Cash Flows (USD $) | |||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
| Dec. 31, 2007
|
Statement of Cash Flows [Abstract] | |||
CASH AND CASH EQUIVALENTS, BEGINNING, reported under assets held for sale | $0 | $0 | 7.2 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Summary of Accounting Policies | SUMMARY OF ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of Jones Apparel Group, Inc. and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The results of operations of acquired companies are included in our operating results from the respective dates of acquisition. We also have a 25% interest in GRI, which is accounted for under the equity method of accounting. We design, contract for the manufacture of and market a broad range of women's collection sportswear, suits and dresses, casual sportswear and jeanswear for women and children, and women's footwear and accessories. We sell our products through a broad array of distribution channels, including better specialty and department stores and mass merchandisers, primarily in the United States and Canada. We also operate our own network of retail and factory outlet stores, as well as several e-commerce web sites. In addition, we license the use of several of our brand names to select manufacturers and distributors of women's and men's apparel and accessories worldwide. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. On September 6, 2007, we completed the sale of Barneys to an affiliate of Istithmar PJSC. The results of operations of Barneys for all periods have been reported as discontinued operations. We classify as discontinued operations for all periods presented any component of our business that we believe is probable of being sold or has been sold that has operations and cash flows that are clearly distinguishable operationally and for financial reporting purposes. For those components, we have no significant continuing involvement after disposal and their operations and cash flows are eliminated from our ongoing operations. Sales of significant components of our business not classified as discontinued operations are reported as a component of income from continuing operations. Credit Risk Financial instruments which potentially subject us to concentration of credit risk consist principally of cash investments and accounts receivable. We place our cash and cash equivalents in investment-grade, highly-liquid U.S. government agency and corporate money market accounts. We perform ongoing credit evaluations of our customers' financial condition and, generally, require no collateral from our customers. The allowance for non-collection of accounts receivable is based upon the expected collectibility of all accounts receivable. Derivative Financial Instruments Our primary objectives for holding derivative financial instruments are to manage foreign currency and interest rate risks. We do not use financial instruments for trading or other speculative purposes. W |
Sheet1
(LOSS) EARNINGS PER SHARE | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(LOSS) EARNINGS PER SHARE | (LOSS) EARNINGS PER SHARE The computation of basic and diluted (loss) earnings per share is as follows: Year Ended December 31, 2009 2008 2007 (In millions except per share amounts) (Loss) income from continuing operations $ (86.3 ) $ (766.3 ) $ 45.9 Less: income from continuing operations attributable to noncontrolling interest 0.3 - - (Loss) income from continuing operations attributable to Jones (86.6 ) (766.3 ) 45.9 Less: (loss) income from continuing operations allocated to participating securities (3.6 ) (16.0 ) 0.5 (Loss) income from continuing operations available to common stockholders of Jones (83.0 ) (750.3 ) 45.4 Income from discontinued operations - 0.9 265.2 Less: income from discontinued operations allocated to participating securities - - 3.6 Income from discontinued operations available to common stockholders of Jones - 0.9 261.6 (Loss) income available to common stockholders of Jones $ (83.0 ) $ (749.4 ) $ 307.0 Weighted-average common shares outstanding - basic 81.7 82.9 99.9 Effect of dilutive employee stock options - - 1.4 Weighted-average common shares and share equivalents outstanding - diluted 81.7 82.9 101.3 (Loss) earnings per share - basic (Loss) income from continuing operations attributable to Jones $ (1.02 ) $ (9.05 ) $ 0.45 Income from discontinued operations attributable to Jones - 0.01 2.62 Basic (loss) earnings per share attributable to Jones $ (1.02 ) $ (9.04 ) $ 3.07 (Loss) earnings per share - diluted (Loss) income from continuing operations attributable to Jones $ (1.02 ) $ (9.05 ) $ 0.45 Income from discontinued operations attributable to Jones - 0.01 2.58 Diluted (loss) earnings per share attributable to Jones $ (1.02 ) $ (9.04 ) $ 3.03 |
ACCOUNTS RECEIVABLE AND SIGNIFI
ACCOUNTS RECEIVABLE AND SIGNIFICANT CUSTOMERS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CUSTOMERS | ACCOUNTS RECEIVABLE AND SIGNIFICANT CUSTOMERS Accounts receivable consist of thefollowing: December 31, 2009 2008 (In millions) Trade accounts receivable $ 327.9 $ 397.6 Allowances for doubtful accounts, returns, discounts and co-op advertising (24.8 ) (27.4 ) $ 303.1 $ 370.2 A significant portion of our sales are to retailers throughout the United States and Canada. We have one significant customer in our wholesale better apparel, wholesale jeanswear and wholesale footwear and accessories operating segments. Macy's, Inc. accounted for approximately 21%, 21% and 20% of consolidated gross revenues for 2009, 2008 and 2007, respectively, and accounted for approximately and 17% of accounts receivable at both December 31, 2009 and 2008. Due to our 25% ownership interest in GRI, GRI is deemed to be a related party. Included in accounts receivable are amounts due from GRI in the amount of $40.7 million and $43.3 million at December 31, 2009 and 2008, respectively. Net revenues from GRI amounted to $47.0 million and $61.1 million for 2009 and 2008, respectively. On April 23, 2009, we converted $10.0 million of outstanding GRI accounts receivable to a three-year interest-bearing convertible note. GRI has the option, during the 90-day period that begins when the audited financial statements for the GRI fiscal year ending January 31, 2011 become available (or such shorter period that ends on the maturity date of the note), to convert the note into common shares of GRI at a conversion rate based on the greater of eight times the net income of GRI for such fiscal year, or an appraised value determined as of that date. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 6, 2007, we completed the sale of Barneys to an affiliate of Istithmar PJSC. In 2007, we recognized a net after-tax gain on the sale of $254.2 million. In 2008, we reached final settlement on certain liabilities remaining from the sale, resulting in an additional after-tax gain of $0.9 million. The results of operations of Barneys have been reported as discontinued operations in all periods. Operating results of Barneys, which were formerly included in our retail segment, are summarized as follows: Year Ended December 31, 2009 2008 2007 (In millions) Total revenues $ - $ - $ 452.1 Income from operations of Barneys before provision for income taxes $ - $ - $ 22.0 Provision for income taxes - - 11.0 Income from operations of Barneys - - 11.0 Gain on sale of Barneys before provision for income taxes (1) - 1.5 389.1 Provision for income taxes - 0.6 134.9 Gain on sale of Barneys - 0.9 254.2 Income from discontinued operations $ - $ 0.9 $ 265.2 (1) Net of $247.4 million of goodwill allocated to Barneys in 2007. We allocated $5.5 million of interest expense in 2007 to discontinued operations based on the weighted-average monthly borrowing rate under our senior credit facilities applied to the average net monthly balance of funds that had been advanced to Barneys. |
ACCRUED RESTRUCTURING COSTS
ACCRUED RESTRUCTURING COSTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
ACCRUED RESTRUCTURING COSTS | ACCRUED RESTRUCTURING COSTS Manufacturing Restructuring On September 12, 2006, we announced the closing of certain El Paso, Texas and Mexican operations related to the decision by Polo to discontinue the Polo Jeans Company product line (the "manufacturing restructuring"), which we produced for Polo subsequent to the sale of the Polo Jeans Company business to Polo in February 2006. In connection with the closings, we incurred $6.9 million of one-time termination benefits and associated employee costs for 1,838 employees and $1.0 million of other costs. Of this amount, $2.3 million has been recorded as an SGA expense and $5.6 million was recorded as cost of sales in the wholesale jeanswear segment. At that time, we also determined the estimated fair value of the property, plant and equipment employed in Mexico was less than its carrying value. As a result, we recorded an impairment loss of $8.6 million, which was reported as cost of sales in the wholesale jeanswear segment in 2006. The closings were substantially completed by the end of March 2007. On May 8, 2008, we sold the Mexican operations for $5.9 million, resulting in a gain of $0.2 million. The details of the manufacturing restructuring accruals are as follows: (In millions) One-time termination benefits Other associated costs Total manufacturing restructuring Balance, January 1, 2007 $ 2.8 $ 0.6 $ 3.4 Additions 1.1 0.5 1.6 Payments and reductions (3.6 ) (0.2 ) (3.8 ) Balance, December 31, 2007 0.3 0.9 1.2 Reversals (0.2 ) (0.4 ) (0.6 ) Payments and reductions (0.1 ) (0.4 ) (0.5 ) Balance, December 31, 2008 - 0.1 0.1 Reversals - (0.1 ) (0.1 ) Balance, December 31, 2009 $ - $ - $ - During 2008 and 2007, $0.1 million and $3.6 million of the termination benefits accrual were utilized (relating to severance for three and 123 employees, respectively). The net accrual of $0.1 million at December 31, 2008 is reported as accrued restructuring and severance payments. Moderate Apparel Restructuring In connection with the exit from and reorganization of certain moderate apparel product lines, we decided to close certain New York offices, and on October 9, 2007, we announced the closing of warehouse facilities in Goose Creek, South Carolina. We recorded $7.2 million of one-time termination benefits and associated employee costs for approximately 440 employees and $4.2 million of lease obligations as SGA expenses in our wholesale jeanswear segment. These closings were substantially complete by the end of February 2008. The details of the moderate apparel restructuring accruals are as follows: (In millions) One-time termination benefits Lease obligations Total moderate apparel restructuring Balance, January 1, 2007 $ - $ - $ - Additions 7.9 - 7.9 Payments and reductions (2.2 ) - (2.2 ) Balance, December 31, 2007 5.7 - 5.7 (Reversals) additions (0.5 ) 0.9 0.4 Payments and reductions |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
PROPERTY PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Major classes of property, plant and equipment are asfollows: December 31, 2009 2008 Usefullives(years) (In millions) Land and buildings $ 73.1 $ 73.0 10 - 20 Leasehold improvements 246.9 261.6 1 - 18 Machinery, equipment and software 385.2 365.7 3 - 10 Furniture and fixtures 66.0 70.9 5 - 8 Construction in progress 7.2 14.1 - 778.4 785.3 Less: accumulated depreciation and amortization 539.4 484.3 $ 239.0 $ 301.0 Depreciation and amortization expense relating to property, plant and equipment (including capitalized leases) reflected in results from continuing operations was $67.5 million, $76.3 million and $74.4 million in 2009, 2008 and 2007, respectively. At December 31, 2009, we had outstanding commitments of approximately $9.2 million relating primarily to the construction or remodeling of retail store locations and distribution centers. We capitalized approximately $0.5 million of interest in 2007 as part of the cost of major capital projects and capitalized no interest in 2008 or 2009. Included in property, plant and equipment are the following capitalized leases: December 31, 2009 2008 Useful lives (years) (In millions) Buildings $ 37.8 $ 37.8 10 - 20 Machinery and equipment 14.0 13.9 3 - 5 51.8 51.7 Less: accumulated amortization 25.4 21.7 $ 26.4 $ 30.0 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. Accounting rules require that we test at least annually for possible goodwill impairment. We perform our test in the fourth fiscal quarter of each year using a discounted cash flow analysis that requires that certain assumptions and estimates be made regarding industry economic factors and future profitability and cash flows. As a result of the 2007 impairment analysis, we determined that the remaining goodwill balance existing in our wholesale jeanswear segment was impaired as a result of decreases in projected revenues and profitability for certain brands. Accordingly, we recorded an impairment charge of $78.0 million. As a result of the 2008 impairment analysis, we determined that the goodwill balance existing in our wholesale footwear and accessories segment was impaired as a result of decreases in projected revenues and profitability for the segment. Accordingly, we recorded an impairment charge of $813.2 million. As a result of the 2009 impairment analysis, we determined that the goodwill balance existing in our retail segment was impaired as a result of decreases in projected revenues and profitability for the segment. Accordingly, we recorded an impairment charge of $120.6 million. The changes in the carrying amount of goodwill for 2008 and 2009, by segment and in total, are as follows: (In millions) Wholesale Better Apparel Wholesale Jeanswear Wholesale Footwear Accessories Retail Total Balance, January 1, 2008 Goodwill $ 40.1 $ 519.2 $ 813.2 $ 120.6 $ 1,493.1 Accumulated impairment losses - (519.2 ) - - (519.2 ) Net goodwill 40.1 - 813.2 120.6 973.9 Impairment loss - - (813.2 ) - (813.2 ) Balance, December 13, 2008 Goodwill 40.1 519.2 813.2 120.6 1,493.1 Accumulated impairment losses - (519.2 ) (813.2 ) - (1,332.4 ) Net goodwill 40.1 - - 120.6 160.7 Impairment loss - - - (120.6 ) (120.6 ) Balance, December 13, 2009 Goodwill 40.1 519.2 813.2 120.6 1,493.1 Accumulated impairment losses - (519.2 ) (813.2 ) (120.6 ) (1,453.0 ) Net goodwill $ 40.1 $ - $ - $ - $ 40.1 We also perform our annual impairment test for indefinite-lived trademarks during the fourth fiscal quarter of the year. As a result of the 2007 impairment analysis, we recorded trademark impairment charges of $7.5 million as a result of decreases in projected revenues for certain brands. We also recorded trademark impairment charges of $80.5 million in 2007 as a result of our decision to discontinue or significantly reduce the scale of certain brands. As a result of the 2008 impairment analysis, we recorded trademark impairment charges of $25.2 million as a result of decreases in projected rev |
FAIR VALUES
FAIR VALUES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
FAIR VALUES | FAIR VALUES ASC Subtopic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements, and details the disclosures that are required for items measured at fair value. We currently do not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. We are permitted to choose to measure many financial instruments and certain other items at fair value, although we did not elect the fair value measurement option for any of our financial assets or liabilities. We have several financial instruments that must be measured under the fair value standard, including derivatives, the assets and liabilities of the Jones Apparel Group, Inc. Deferred Compensation Plan (the Rabbi Trust) and deferred director fees that are valued based on the quoted market price of our common stock. Our financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows: Level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date; Level 2 - inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3 - unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing assets or liabilities based on the best information available. Assets and Liabilities Measured at Fair Value on a Recurring Basis In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis at December 31, 2009 and 2008. (In millions) Classification Total Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Description December 31, 2009: Rabbi Trust assets Other current assets $ 7.8 $ 7.8 $ - $ - Total assets $ 7.8 $ 7.8 $ - $ - Rabbi Trust liabilities Accrued employee compensation and benefits $ 7.8 $ 7.8 $ - $ - Derivatives Accrued expenses and other current liabilities 0.2 - 0.2 - Deferred director fees Accrued expenses and other current liabilities 1.1 1.1 - - Total liabilities $ 9.1 $ 8.9 $ 0.2 $ - December 31, 2008: Rabbi Trust assets |
CREDIT FACILITIES
CREDIT FACILITIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Credit Facilities | CREDIT FACILITIES Prior to May 2009, we had a revolving credit agreement with several lending institutions to borrow an aggregate principal amount of up to $600 million (which was reduced by amendment from $750 million on January 5, 2009). This agreement could be used for letters of credit or cash borrowings. In May 2009, we replaced this revolving credit facility and our C$10.0 million unsecured line of credit in Canada with a new three-year $650 million secured revolving credit agreement (the "New Credit Facility"). Under the New Credit Facility, up to the entire amount of the facility is available for cash borrowings, with up to $400 million available for trade letters of credit and up to $50 million for standby letters of credit, and a subfacility available to our Canadian subsidiaries of up to $25 million for letters of credit and borrowings. Borrowings under the New Credit Facility may be used to refinance existing indebtedness and for general corporate purposes in the ordinary course of business. Such borrowings bear interest either based on the alternate base rate, as defined in the New Credit Facility, or based on Eurocurrency rates, each with a margin that depends on the availability remaining under the New Credit Facility. The New Credit Facility contains customary events of default. We wrote off $4.4 million of deferred financing costs related to our prior credit agreement as a result of a change in the composition of participating lending institutions, which is reported as interest expense and financing costs. We wrote off $1.1 million of deferred financing fees in 2008 related to modifications made to prior revolving credit agreements as a result of reductions made to the borrowing capacity of those agreements, which is reported as interest expense and financing costs. Availability under the New Credit Facility is determined in reference to a borrowing base consisting of a percentage of eligible inventory, accounts receivable, credit card receivables and licensee receivables, minus reserves determined by the joint collateral agents. At December 31, 2009, we had no cash borrowings and $35.5 million of letters of credit outstanding, and our remaining availability was $360.8 million. If availability under the New Credit Facility falls below a stated level, we will be required to comply with a minimum fixed charge coverage ratio. The New Credit Facility also contains affirmative and negative covenants that, among other things, will limit or restrict our ability to (1) incur indebtedness, (2) create liens, (3) merge, consolidate, liquidate or dissolve, (4) make investments (including acquisitions), loans or advances, (5) sell assets, (6) enter into sale and leaseback transactions, (7) enter into swap agreements, (8) make certain restricted payments (including dividends and other payments in respect of capital stock), (9) enter into transactions with affiliates, (10) enter into restrictive agreements, and (11) amend material documents. The New Credit Facility is secured by a first priority lien on substantially all of our personal property. The weighted-average interest rate for our credit facilities was 6.75% and 4.8% at |
LONG-TERM DEBT
LONG-TERM DEBT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of thefollowing: December 31, 2009 2008 (In millions) 4.250% Senior Notes due 2009 $ - $ 250.0 5.125% Senior Notes due 2014, net of unamortized discount of $0.1 and $0.1 249.9 249.9 6.125% Senior Notes due 2034, net of unamortized discount of $0.4 and $0.4 249.6 249.6 499.5 749.5 Less current portion - 250.0 $ 499.5 $ 499.5 Long-term debt maturities during the next five years amount to $250.0 million in 2014. All of our notes contain certain covenants, including, among others, restrictions on liens, sale-leaseback transactions and additional secured debt, and pay interest semiannually. The weighted-average interest rate of our long-term debt was 5.6% and 5.2% at December 31, 2009 and 2008, respectively. On April 1, 2009, we commenced a cash tender offer to purchase any and all of our outstanding 4.250% Senior Notes due 2009 (the "2009 Notes"), as well as a consent solicitation to amend the indenture governing our outstanding 2009 Notes, our 5.125% Senior Notes due 2014 and our 6.125% Senior Notes due 2034 (collectively, the "Notes"). The purpose of the consent solicitation was to receive the consent of holders of at least a majority in principal amount of the Notes outstanding for proposed amendments to the Indenture to provide for a carveout to the lien covenant, for liens incurred in connection with the New Credit Facility. We received the required consents on April 15, 2009; consequently, the Amendments became operative upon payment of the consent fee to each validly consenting holder of the Notes, and are binding on all holders, including non-consenting holders of Notes. The consideration for each $1,000 principal amount of 2009 Notes validly tendered and not withdrawn pursuant to the tender offer was $980, and the consent fee for each $1,000 principal amount of Notes with respect to which holders validly delivered and did not revoke their consent pursuant to the consent solicitation was $20. Under the tender offer, we repurchased a total of $242.5 million of our outstanding 2009 Notes for a payment of $237.7 million, and we paid $12.9 million in consent fees to holders of the Notes and $1.8 million of related costs, resulting in a loss on debt extinguishment of $1.5 million. Of the consent fees paid, a net $7.1 million relates to the remaining outstanding Notes and will be amortized over the life of the remaining related Notes as additional interest expense. On November 15, 2009, we redeemed the remaining $7.5 million outstanding 2009 Notes at maturity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss is comprised of thefollowing: December 31, 2009 2008 (In millions) Foreign currency translation adjustments $ 7.2 $ 2.2 Pension and postretirement liability adjustments (14.7 ) (14.1 ) Unrealized gains (losses) on hedge contracts (0.1 ) 0.2 $ (7.6 ) $ (11.7 ) |
DERIVATIVES
DERIVATIVES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
DERIVATIVES | DERIVATIVES ASC Topic 815, "Derivatives and Hedging," establishes accounting and reporting standards for derivative instruments. Specifically, ASC Topic 815 requires us to recognize all derivatives as either assets or liabilities on the balance sheet and to measure those instruments at fair value. Additionally, the fair value adjustments will affect either stockholders' equity or net income, depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use foreign currency forward contracts for the specific purpose of hedging the exposure to variability in forecasted cash flows associated primarily with inventory purchases. These instruments are designated as cash flow hedges as the principal terms of the forward exchange contracts are the same as the underlying forecasted foreign currency cash flows. Therefore, changes in the fair value of the forward contracts should be highly effective in offsetting changes in the expected foreign currency cash flows, and accordingly, changes in the fair value of forward exchange contracts are recorded in accumulated other comprehensive income, net of related tax effects, with the corresponding asset or liability recorded in the balance sheet. Amounts recorded in accumulated other comprehensive income are reflected in current-period earnings when the hedged transaction affects earnings. Fair values are calculated by comparing each hedging agreement's contractual exchange rate with the currency exchange spot rate at the reporting date. The following summarizes the U.S. Dollar notional amount and the fair value of our Canadian foreign currency forward exchange contracts, which we have classified as cash flow hedges. The contracts outstanding at December 31, 2009 mature at various dates through May 2010. (In millions) December 31, 2009 December 31, 2008 Notional amount Fair value - other current liabilities Notional amount Fair value - other current assets Canadian Dollar - U.S. Dollar $ 8.6 $ 0.2 $ 10.5 $ 0.1 The effect of our cash flow hedges on the statement of operations was as follows: (In millions) Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income Location of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income Derivative type 2009 2008 2007 2009 2008 2007 Foreign exchange contracts $ (1.1 ) $ 1.2 $ (3.8 ) Cost of sales $ (0.6 ) $ (1.0 ) $ (0.6 ) Since the derivatives we use in our risk management strategies are highly effective hedges because all the critical terms of the derivative instruments match those of the hedged item, we record no ineffectiveness related to our cash flow hedges. If foreign currency exchange rates do not change from their December 31, 2009 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material. The actual amounts that will be reclassified to earnings over the next 12 months could vary, h |
OBLIGATIONS UNDER CAPITAL LEASE
OBLIGATIONS UNDER CAPITAL LEASES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
OBLIGATIONS UNDER CAPITAL LEASES | OBLIGATIONS UNDER CAPITAL LEASES Obligations under capital leases consist of the following: December 31, 2009 2008 (In millions) Warehouses, office facilities and equipment $ 29.5 $ 32.5 Less: current portion 2.6 3.1 Obligations under capital leases - noncurrent $ 26.9 $ 29.4 We lease an office facility in Bristol, Pennsylvania under a 20-year net lease that runs until July 2018 and requires minimum annual rent payments of approximately $1.1 million. The building was capitalized at $12.2 million, which approximated the present value of the minimum lease payments. We also lease various equipment under two- to five-year leases at an aggregate annualized rental of $1.8 million. The equipment was capitalized at $7.4 million, which approximated the present value of the minimum lease payments. In 2003, we entered into a sale-leaseback agreement for our Virginia warehouse facility. This transaction resulted in a net gain of $7.5 million that has been deferred and is being amortized over the lease term, which runs until March 2023 and requires minimum annual rent payments of $2.4 million. The building was capitalized at $25.6 million, which approximated the present value of the minimum lease payments. The following is a schedule by year of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments as of December 31, 2009: Year Ending December 31, (In millions) 2010 $ 4.5 2011 3.5 2012 3.6 2013 3.6 2014 3.7 Later years 24.8 Total minimum lease payments 43.7 Less: amount representing interest 14.2 Present value of net minimum lease payments $ 29.5 |
COMMON STOCK
COMMON STOCK | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
COMMON STOCK | COMMON STOCK The Board of Directors has authorized several programs to repurchase our common stock from time to time in open market transactions. We repurchased $496.9 million of our common stock during 2007 and no amounts in 2008 or 2009. As of December 31, 2009, $304.1 million of Board authorized repurchases was still available. We may make additional share repurchases in the future depending on, among other things, market conditions and our financial condition, although any such repurchases will be subject to limitations under our current revolving credit agreement. Our Board of Directors has authorized our common stock repurchases as a tax-effective means to enhance shareholder value and distribute cash to shareholders and, to a lesser extent, to offset the impact of dilution resulting from the issuance of employee stock options and shares of restricted stock. We believe that we have sufficient sources of funds to repurchase shares without significantly impacting our short-term or long-term liquidity. In authorizing future share repurchase programs, our Board of Directors gives careful consideration to our projected cash flows, our existing capital resources and repurchase limitations under our current revolving credit agreement. On September 6, 2007, we entered into an accelerated stock repurchase ("ASR") agreement with Goldman, Sachs Co. ("Goldman") to repurchase $400 million of our outstanding common stock. Purchases under the ASR were subject to collar provisions that established minimum and maximum numbers of shares based generally on the volume-weighted average price of our common stock during the term of the ASR program. We received an initial delivery of 15.5 million shares on September 11, 2007 and a second delivery of 2.4 million shares on October 18, 2007. Final settlement of the ASR program was scheduled for no later than July 19, 2008 and could occur earlier at the option of Goldman or later under certain circumstances. On June 5, 2008, Goldman informed us that it had concluded the ASR. As a result, we received a final delivery of 3.2 million shares on June 10, 2008, bringing the aggregate number of shares received under the ASR program to 21.1 million shares. No cash was required to complete the final delivery of shares. The combined average price for the shares delivered under the ASR was $19.00 per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (a) CONTINGENT LIABILITIES. We have been named as a defendant in various actions and proceedings, including actions brought by certain employees whose employment has been terminated arising from our ordinary business activities. Although the amount of any liability that could arise with respect to these actions cannot be accurately predicted, in our opinion, any such liability will not have a material adverse effect on our financial position or results of operations. (b) ROYALTIES. We have an exclusive licenses to produce and sell women's footwear under the Dockers(R) Women trademark in the United States (including its territories and possessions) and infants', toddlers' and boys' footwear (excluding girls' footwear) under the Dockers(R) and Dockers(R) Premium trademarks in the United States (including its territories and possessions) pursuant to agreements with Levi Strauss Co. which expire on December 31, 2011. The agreements require us to pay a percentage of net sales against guaranteed minimum royalty and advertising payments as set forth in the agreement. Minimum payments under these agreements amount to $0.8 million and $0.9 million for 2010 and 2011, respectively. We have an exclusive license to produce, market and distribute costume jewelry in the United States, Canada, Mexico and Japan under the Givenchy trademark pursuant to an agreement with Givenchy, which expires on December 31, 2011. The agreement requires us to pay a percentage of net sales against guaranteed minimum royalty and advertising payments as set forth in the agreement. Minimum payments under this agreement amount to $0.7 million per year. We have an exclusive license with New Balance Athletic Shoe, Inc. and its affiliate New Balance Licensing, LLC to create and distribute a fashion-lifestyle footwear collection that brings together New Balance's innovative performance and materials technology with Nine West's fashion styling. The agreement, which expires December 31, 2010, requires us to pay a percentage of net sales as set forth in the agreement. No minimum payments are required under this agreement. In January 2010, we entered into a sub-license agreement with VCJS LLC ("VCJS") to design, develop, produce and distribute in the United States, Mexico and Canada Jessica Simpson jeanswear under the Jessica Simpson (signature) trademark which VCJS licenses from With You, Inc. ("WYI"). The agreement, which expires on December 31, 2014 (October 15, 2014 if the master license between WYI and VCJS is not renewed), requires us to pay a percentage of net sales against guaranteed minimum royalty and pooled marketing fee payments as set forth in the agreement. Minimum payments under these agreements amount to $0.1 million, $0.4 million, $0.7 million, $0.8 million and $1.1 million for 2010, 2011, 2012, 2013 and 2014, respectively. (c) LEASES. Total rent expense charged to continuing operations for 2009, 2008 and 2007 was as follows. Year Ended December 31, 2009 2008 2007 (In millions) Minimum rent $ 121.5 $ 130.2 $ 130.9 Contingent rent |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
STATEMENT OF CASH FLOWS | STATEMENT OF CASH FLOWS Year Ended December 31, 2009 2008 2007 (In millions) Supplemental disclosures of cashflow information for continuing operations: Cash paid (received) during the year for: Interest $ 43.9 $ 45.6 $ 52.1 Net income tax (refunds) payments (1.9 ) (16.0 ) 67.7 Supplemental disclosures of non-cash investing and financing activities for continuing operations: Property acquired through capital lease financing 0.1 4.0 4.1 Restricted stock issued to employees 7.3 20.3 19.2 |
INCOME TAXES
INCOME TAXES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | INCOME TAXES The following summarizes the (benefit) provision for income taxes for continuing operations: Year Ended December 31, 2009 2008 2007 (In millions) Current: Federal $ (5.2 ) $ (15.3 ) $ (123.5 ) State and local 4.9 9.2 5.2 Foreign 5.8 4.5 5.2 5.5 (1.6 ) (113.1 ) Deferred: Federal 13.0 2.5 11.3 State and local 1.0 (5.7 ) (3.0 ) Foreign (3.3 ) (1.8 ) 0.4 10.7 (5.0 ) 8.7 Provision (benefit) for income taxes $ 16.2 $ (6.6 ) $ (104.4 ) The domestic and foreign components of loss before (benefit) provision for income taxes from continuing operations are as follows: Year Ended December 31, 2009 2008 2007 (In millions) Loss from continuing operations before provision (benefit) for income taxes United States $ (54.1 ) $ (770.6 ) $ (73.0 ) Foreign (16.0 ) (2.3 ) 14.5 $ (70.1 ) $ (772.9 ) $ (58.5 ) The provision (benefit) for income taxes from continuing operations on adjusted historical income differs from the amounts computed by applying the applicable Federal statutory rates due to the following: Year Ended December 31, 2009 2008 2007 (In millions) Benefit for Federal income taxes at the statutory rate $ (24.5 ) $ (270.5 ) $ (20.5 ) State and local income taxes, net offederal benefit 3.3 2.2 0.4 Foreign income tax difference (2.1 ) (4.8 ) (4.2 ) Nondeductible goodwill impairment 41.3 265.8 27.3 Change in deferred balance - fixed assets (2.3 ) - - Valuation allowances 0.6 - (107.2 ) Other items, net (0.1 ) 0.7 (0.2 ) Provision (benefit) for income taxes $ 16.2 $ (6.6 ) $ (104.4 ) We have not provided for U.S. Federal and foreign withholding taxes on $27.2 million of foreign subsidiary undistributed earnings as of December 31, 2009. Such earnings are intended to be reinvested indefinitely. The following is a summary of the significant components of our deferred tax assets and liabilities: December 31, 2009 2008 (In millions) Deferred tax assets (liabilities): Nondeductible accruals and allowances $ 51.7 $ 58.0 Depreciation 14.8 15.3 Intangible asset valuation and amortization (87.6 ) (73.2 ) Loss and credit carryforwards 42.5 34.4 Amortization of stock-based compensation 12.4 13.2 Deferred compensation 2.6 2.2 Inventory valuation (7.8 ) (10.9 ) Inventory overhead 0.1 1.1 Pension 8.4 7.4 Gain on sale-leaseback transaction 2.4 2.7 Prepaid expenses (2.0 ) |
STOCK OPTIONS AND RESTRICTED ST
STOCK OPTIONS AND RESTRICTED STOCK | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
STOCK OPTIONS AND RESTRICTED STOCK | STOCK OPTIONS AND RESTRICTED STOCK Under the Jones Apparel Group, Inc. 2009 Long Term Incentive Plan, we may grant stock options and other awards from time to time to key employees, officers, directors, advisors and independent consultants to us or to any of our subsidiaries. In general, options become exercisable over either a three-year or five-year period from the grant date and expire 10 years after the date of grant for options granted on or before May 28, 2003 and seven years after the date of grant thereafter. In certain cases for non-employee directors, options become exercisable six months after the grant date. Shares available for future option and restricted stock grants at December 31, 2009 and 2008 totaled 2.5 million and 4.2 million, respectively. Our policy is to issue new shares upon the exercise of options and, when possible, to offset these new shares by repurchasing shares in the open market. We currently have no plans to repurchase any shares in 2010. Compensation cost recorded for stock-based employee compensation awards (including awards to non-employee directors) reflected in continuing operations as an SGA expense was $13.0 million, $12.3 million and $14.0 million for 2009, 2008 and 2007, respectively. The total tax benefit recognized for the compensation cost recorded for stock-based employee compensation awards for 2009, 2008 and 2007 totaled $4.6 million, $4.1 million and $2.4 million, respectively. Total compensation cost for continuing operations related to unvested awards not yet recognized at December 31, 2009 was $7.6 million, which is expected to be amortized over a weighted-average period of approximately 16 months. Cash received from option exercises for 2008 and 2007 was $0.1 million and $11.1 million, respectively. No options were exercised in 2009. The following tables summarize information about stock option transactions and related information (options in millions): 2009 2008 2007 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding, January 1 7.0 $32.73 7.6 $32.44 9.4 $31.43 Exercised - - - - (0.6 ) 19.61 Cancelled (0.3 ) 33.22 (0.3 ) 34.21 (1.0 ) 32.46 Expired (0.5 ) 31.54 (0.3 ) 24.37 (0.2 ) 23.60 Outstanding, December 31 6.2 $32.79 7.0 $32.73 7.6 $32.44 Exercisable, December 31 6.1 $32.74 6.8 $32.61 7.2 $32.20 2009 2008 2007 Weighted-average contractual term (in years) of: Options outstanding at end of year 1.6 2.5 3.4 Options exercisable at end of year 1.6 2.5 3.3 Intrinsic value (in millions) of: Options outstanding at end of year $0.3 $0.1 $0.3 Options exercisable at end of year $0.3 $0.1 $0.3 Options exercised during the year - - $6.8 Fair value (in millions) of options vested during the year $2.1 $2.2 $3.0 The fair value of each option award is estimated on the date of the grant using the Black-Scholes-Merton option pricing model. Expe |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Contribution Plan We maintain the Jones Apparel Group, Inc. Retirement Plan (the "Jones Plan") under Section 401(k) of the Internal Revenue Code (the "Code"). Employees not covered by a collective bargaining agreement and meeting certain other requirements are eligible to participate in the Jones Plan. Under the Jones Plan, participants may elect to have up to 50% of their salary (subject to limitations imposed by the Code) deferred and deposited with a qualified trustee, who in turn invests the money in a variety of investment vehicles as selected by each participant. All employee contributions into the Jones Plan are 100% vested. We have elected to make the Jones Plan a "Safe Harbor Plan" under Section 401(k)(12) of the Code. As a result of this election, we make a fully-vested safe harbor matching contribution for all eligible participants amounting to 100% of the first 3% of the participant's salary deferred and 50% of the next 2% of salary deferred, subject to maximums set by the Department of the Treasury. We may, at our sole discretion, contribute additional amounts to all employees on a pro rata basis. We contributed approximately $7.0 million, $7.1 million and $6.9 million to our defined contribution plan from continuing operations during 2009, 2008 and 2007, respectively. Defined Benefit Plans We maintain several defined benefit plans, including the Pension Plan for Associates of Nine West Group Inc. (the "Cash Balance Plan") and The Napier Company Retirement Plan for certain associates of Victoria (the "Napier Plan"). The Cash Balance Plan expresses retirement benefits as an account balance which increases each year through interest credits, with service credits frozen as of February 15, 1999. All benefits under the Napier Plan are frozen at the amounts earned by the participants as of December 31, 1995. Our funding policy is to contribute at least the minimum amount to meet the funding ratio requirements of the Pension Protection Act, which began to phase in during 2008. We plan to contribute $5.7 million to our defined benefit plans in 2010. The measurement date for all plans is December 31. Obligations and Funded Status Year Ended December 31, 2009 2008 (In millions) Change in benefit obligation Benefit obligation, beginning of year $ 40.3 $ 39.0 Interest cost 2.7 2.6 Actuarial loss (gain) - effect of assumption changes 4.1 1.5 Settlements - 0.8 Benefits paid (3.3 ) (3.6 ) Benefit obligation, end of year 43.8 40.3 Change in plan assets Fair value of plan assets, beginning of year 26.4 34.6 Actual return on plan assets 3.7 (6.8 ) Employer contribution 1.5 2.2 Benefits paid (3.3 ) (3.6 ) Fair value of plan assets, end of year 28.3 26.4 Underfunded status at end of year $ (15.5 ) $ (13.9 ) Amounts Recognized on the Balance Sheet December 31, 2009 2008 (In millions) Noncurrent liabilities |
EQUITY-METHOD INVESTMENTS
EQUITY-METHOD INVESTMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EQUITY-METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS We had two joint ventures formed with HCL Technologies Limited ("HCL") to provide us with computer consulting, programming and associated support services. HCL is a global technology and software services company offering a suite of services targeted at technology vendors, software product companies and organizations. We had a 49% ownership interest in each joint venture, which operated under the names HCL Jones Technologies, LLC and HCL Jones Technologies (Bermuda), Ltd. The agreement under which the joint ventures were established terminated in January 2008. We had a 50% ownership interest in a joint venture with Sutton Development Pty. Ltd. ("Sutton") to operate retail locations in Australia, which operated under the name Nine West Australia Pty Ltd. We sold our interest in this joint venture to Sutton on December 3, 2007 for $20.7 million, which resulted in a pre-tax gain of $8.2 million. The sales price was subject to certain working capital adjustments, which resulted in additional sales proceeds and pre-tax gain of $0.8 million in 2008. On June 20, 2008, we acquired a 10% equity interest in GRI, an international accessories and apparel brand management and retail-distribution network, for $20.2 million. On June 24, 2009, we increased our equity interest to 25% for an additional $15.2 million. The selling shareholders of GRI are entitled to receive an additional cash payment equaling 60% of the amount of GRI's fiscal year 2011 net income that exceeds a certain threshold. GRI is the exclusive licensee of several of our brands in Asia, including Nine West, Anne Klein New York, AK Anne Klein, Easy Spirit, Enzo Angiolini and Joan David. GRI also distributes other women's apparel, shoes and accessory brands. See "Accounts Receivable" for additional information regarding GRI. |
BUSINESS SEGMENT AND GEOGRAPHIC
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION | BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION We identify operating segments based on, among other things, differences in products sold and the way our management organizes the components of our business for purposes of allocating resources and assessing performance. Our operations are comprised of four reportable segments: wholesale better apparel, wholesale jeanswear, wholesale footwear and accessories, and retail. Segment revenues are generated from the sale of apparel, footwear and accessories through wholesale channels and our own retail locations. The wholesale segments include wholesale operations with third party department and other retail stores and our own retail stores, the retail segment includes operations by our own stores, and income and expenses related to trademarks, licenses and general corporate functions are reported under "licensing, other and eliminations." We define segment profit as operating income before net interest expense, goodwill impairment charges, gains or losses on sales of subsidiaries, equity in earnings of unconsolidated affiliates and income taxes. Summarized below are our revenues and income by reportable segment for 2009, 2008 and 2007. (In millions) Wholesale Better Apparel Wholesale Jeanswear Wholesale Footwear Accessories Retail Licensing, Other Eliminations Consolidated For the year ended December 31, 2009 Revenues from external customers $ 922.8 $ 828.9 $ 839.6 $ 689.3 $ 46.8 $ 3,327.4 Intersegment revenues 133.7 2.0 56.4 - (192.1 ) - Total revenues 1,056.5 830.9 896.0 689.3 (145.3 ) 3,327.4 Segment income (loss) $ 112.1 $ 65.7 $ 61.4 $ (71.4 ) $ (59.3 ) 108.5 Net interest expense (52.8 ) Goodwill impairment (120.6 ) Loss and costs associated with repurchase of 4.250% Senior Notes (1.5 ) Equity in loss of unconsolidated affiliate (3.7 ) Loss from continuing operations before benefit for income taxes $ (70.1 ) Depreciation and amortization $ 13.7 $ 1.3 $ 7.9 $ 21.4 $ 47.4 $ 91.7 For the year ended December 31, 2008 Revenues from external customers $ 1,098.7 $ 796.5 $ 938.3 $ 730.2 $ 52.7 $ 3,616.4 Intersegment revenues 146.5 3.8 81.8 - (232.1 ) - Total revenues 1,245.2 800.3 1,020.1 730.2 (179.4 ) 3,616.4 Segment income (loss) $ 122.3 $ 18.8 $ 56.4 $ (54.3 ) $ (61.6 ) 81.6 Net interest expense (41.6 ) Goodwill impairment (813.2 ) Gain on sale of Mexican operations and interest in Australian joint venture 1.0 Equity in loss of unconsolidated affiliates (0.7 ) Loss from continuing operations before benefit for income taxes $ (772.9 ) Depreciation and amortization $ 7.4 $ 4.2 $ 8.7 $ 26.2 $ 46.6 $ 93.1 For the year ended December 31, 2007 Revenues from external customers 1,101.0 985.0 955.8 753.7 53.0 3,848.5 Intersegment revenues 155.8 10.7 72.6 - (239. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On February 4, 2010, we announced that we had acquired 100% of the membership interests of Moda Nicola International, LLC ("MNI"), owner of the Robert Rodriguez Collection, a privately held designer, marketer and wholesaler of women's contemporary eveningwear and sportswear. The initial estimated purchase price was $17.0 million, subject to certain holdback provisions and working capital adjustments. Under the terms of the agreement, the selling members of MNI are entitled to receive future cash payments upon achievement of certain financial targets set within the agreement. This acquisition will be reported as part of our wholesale better apparel segment. We have evaluated subsequent events through February 16, 2010, the date on which these financial statements were issued. |
UNAUDITED CONSOLIDATED FINANCIA
UNAUDITED CONSOLIDATED FINANCIAL INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Unaudited Consolidated Financial Information | UNAUDITED CONSOLIDATED FINANCIAL INFORMATION Unaudited interim consolidated financial information for thetwo years ended December 31, 2009 is summarized as follows: (In millions except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2009 Net sales $ 879.4 $ 793.4 $ 843.9 $ 762.8 Total revenues 891.1 803.9 855.7 776.7 Gross profit 293.3 282.1 304.4 266.1 Operating income (loss)(1) 13.7 42.1 60.9 (128.8 ) Net income (loss) 0.3 13.1 30.6 (130.3 ) Basic earnings (loss) per share $ 0.00 $ 0.15 $ 0.36 $ (1.53 ) Diluted earnings (loss) per share 0.00 0.15 0.36 (1.53 ) Dividends declared per share $ 0.05 $ 0.05 $ 0.05 $ 0.05 2008 Net sales $ 963.4 $ 820.2 $ 948.6 $ 830.5 Total revenues 975.4 829.4 964.7 846.9 Gross profit 320.7 282.4 323.3 249.9 Operating income (loss)(2) 39.9 25.5 51.8 (848.6 ) Income (loss) from continuing operations 19.5 10.6 26.3 (822.8 ) Income (loss) from discontinued operations - - 1.0 (0.1 ) Net income (loss) 19.5 10.6 27.3 (822.9 ) Basic earnings (loss) per share from continuing operations $ 0.23 $ 0.12 $ 0.32 $ (9.86 ) Basic earnings per share from discontinued operations - - 0.01 - Basic earnings (loss) per share 0.23 0.12 0.33 (9.86 ) Diluted earnings (loss) per share from continuing operations $ 0.23 $ 0.12 $ 0.32 $ (9.86 ) Diluted earnings per share from discontinued operations - - 0.01 - Diluted earnings (loss) per share 0.23 0.12 0.33 (9.86 ) Dividends declared per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 Quarterly figures may not add to full yeardue to rounding. (1) Includes goodwill impairment of $120.6 million and trademark impairments of $28.7 million in the fourth fiscal quarter of 2009. (2) Includes goodwill impairment of $813.2 million and trademark impairments of $25.2 million in the fourth fiscal quarter of 2008. |
SUPPLEMENTAL PRO FORMA CONDENSE
SUPPLEMENTAL PRO FORMA CONDENSED FINANCIAL INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SUPPLEMENTAL PRO FORMA CONDENSED FINANCIAL INFORMATION | SUPPLEMENTAL PRO FORMA CONDENSED FINANCIAL INFORMATION Certain of our subsidiaries function as co-issuers (fully and unconditionally guaranteed on a joint and several basis) of the outstanding debt of Jones Apparel Group, Inc. ("Jones"), including Jones USA, Jones Apparel Group Holdings, Inc. ("Jones Holdings"), Nine West Footwear Corporation ("Nine West") and Jones Retail Corporation ("Jones Retail"). The following condensed consolidating balance sheets, statements of operations and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, Nine West and Jones Retail, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings, Nine West or Jones Retail to Jones. Effective January 1, 2010, Nine West merged into Jones Retail, which then changed its name to JAG Footwear, Accessories and Retail Corporation. Condensed Consolidating Balance Sheets (In millions) December 31, 2009 December 31, 2008 Issuers Others Elim- inations Cons- olidated Issuers Others Elim- inations Cons- olidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 322.1 $ 11.3 $ - $ 333.4 $ 318.4 $ 19.9 $ - $ 338.3 Accounts receivable 189.5 113.6 - 303.1 219.7 150.5 - 370.2 Inventories 259.7 115.1 0.2 375.0 339.3 170.6 (0.4 ) 509.5 Prepaid and refundable income taxes 0.7 0.1 (0.8 ) - 15.0 0.2 1.7 16.9 Deferred taxes 13.3 14.8 - 28.1 12.5 16.7 (1.2 ) 28.0 Prepaid expenses and other current assets 18.2 7.4 - 25.6 34.7 7.9 - 42.6 TOTAL CURRENT ASSETS 803.5 262.3 (0.6 ) 1,065.2 939.6 365.8 0.1 1,305.5 Property, plant and equipment - net 93.4 145.6 - 239.0 135.4 165.6 - 301.0 Due from affiliates - 1,382.9 (1,382.9 ) - - 1,154.6 (1,154.6 ) - Goodwill 40.1 - - 40.1 160.7 - - 160.7 Other intangibles - net 0.5 559.3 - 559.8 0.5 590.3 - 590.8 Prepaid and refundable income taxes 5.4 - (0.7 ) 4.7 - - - - Deferred taxes 83.3 - (79.4 ) 3.9 73.7 - (59.5 ) 14.2 Investments in and loans to subsidiaries 2,125.2 42.1 (2,125.2 ) 42.1 1,866.2 19.6 (1,866.2 ) 19.6 Other assets 60.2 10.0 - 70.2 25.9 10.0 (0.2 ) 35.7 TOTAL ASSETS $ 3, |
SCHEDULE II: VALUATION AND QUAL
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II JONES APPAREL GROUP, INC. VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2007, 2008 AND 2009 (In Millions) Column A Column B Column C Column D Column E Additions Balance at beginning of period Charged against revenues or to costs and expenses Charged to other accounts Deductions Balance at end of period Accounts receivable allowances Allowance for doubtful accounts For the year ended December 31: 2007 $2.5 $0.2 $- $0.7 (1) $2.0 2008 2.0 10.3 (0.1) (2) 9.4 (1) 2.8 2009 2.8 1.7 - 1.3 (1) 3.2 Allowance for sales returns For the year ended December 31: 2007 6.8 27.4 0.3 (2) 26.7 (3) 7.8 2008 7.8 31.9 (0.4) (2) 31.3 (3) 8.0 2009 8.0 24.2 0.2 (2) 26.7 (3) 5.7 Allowance for sales discounts For the year ended December 31: 2007 11.3 90.0 - 92.0 (3) 9.3 2008 9.3 84.1 - 85.4 (3) 8.0 2009 8.0 71.2 - 73.0 (3) 6.2 Allowance for co-op advertising For the year ended December 31: 2007 10.0 25.7 0.1 (2) 26.4 (3) 9.4 2008 9.4 26.2 (0.2) (2) 26.8 (3) 8.6 2009 8.6 21.6 0.1 (2) 20.6 (3) 9.7 Deferred tax valuation allowance For the year ended December 31: 2007 112.4 1.2 - 108.4 (4) 5.2 2008 5.2 - - - 5.2 2009 5.2 0.6 - - 5.8 _________________________ (1) Doubtful accounts written off against accounts receivable. (2) Represents effects of foreign currency translation. (3) Deductions taken by customers written off against accounts receivable. (4) Deferred tax asset written off against the deferred tax valuation allowance. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | ||
12 Months Ended
Dec. 31, 2009 | Feb. 15, 2010
| |
Entity [Text Block] | ||
Entity Registrant Name | JONES APPAREL GROUP INC | |
Entity Central Index Key | 0000874016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $832,272,057 | |
Entity Common Stock, Shares Outstanding | 87,191,271 |