Jones (JNY) 10-Q 28 Apr 10 2010 Q1 Quarterly report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	3 Months Ended Apr. 03, 2010	3 Months Ended Apr. 04, 2009	12 Months Ended Dec. 31, 2009
CURRENT ASSETS
Cash and cash equivalents	222.2	194.3	333.4
Accounts receivable	441.4	479.4	303.1
Inventories, primarily finished goods	353.6	473.9	375
Prepaid and refundable income taxes	0.2	11.7	0
Deferred taxes	30.4	29.6	28.1
Prepaid expenses and other current assets	35.1	47.4	25.6
TOTAL CURRENT ASSETS	1082.9	1236.3	1065.2
PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation and amortization of $544.8, $470.1 and $539.4	231.7	270.1	239
GOODWILL	46.8	160.7	40.1
OTHER INTANGIBLES, at cost, less accumulated amortization	584.5	590.3	559.8
PREPAID AND REFUNDABLE INCOME TAXES	0	0	4.7
DEFERRED TAXES	0	15.5	3.9
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATES	39.7	19.4	42.1
OTHER ASSETS	69.7	36.9	70.2
TOTAL ASSETS	2055.3	2329.2	2,025
CURRENT LIABILITIES
Short-term borrowings	0	9	0
Current portion of long-term debt	0	250	0
Current portion of capital lease obligations	2.3	2.9	2.6
Accounts payable	160.4	149.6	185.3
Income taxes payable	11.3	0	11.8
Accrued employee compensation and benefits	27.5	23.8	42.7
Accrued expenses and other current liabilities	77.3	85.7	81.7
TOTAL CURRENT LIABILITIES	278.8	521	324.1
NONCURRENT LIABILITIES
Long-term debt	499.5	499.5	499.5
Obligations under capital leases	26.5	28.8	26.9
Deferred taxes	9.3	0	0
Income taxes payable	8.4	21.2	0
Other noncurrent liabilities	97.1	77.7	82
TOTAL NONCURRENT LIABILITIES	640.8	627.2	608.4
TOTAL LIABILITIES	919.6	1148.2	932.5
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock, $.01 par value - shares authorized 1.0; none issued	0	0	0
Common stock, $.01 par value - shares authorized 200.0; issued 158.5, 156.8 and 156.8	1.6	1.6	1.6
Additional paid-in capital	1367.8	1353.9	1360.3
Retained earnings	1599.3	1664.1	1564.4
Accumulated other comprehensive loss	-6.9	-12.3	-7.6
Treasury stock, 71.4 shares for all periods, at cost	-1826.3	-1826.3	-1826.3
TOTAL JONES STOCKHOLDERS' EQUITY	1135.5	1,181	1092.4
Noncontrolling interest	0.2	0	0.1
TOTAL EQUITY	1135.7	1,181	1092.5
TOTAL LIABILITIES AND EQUITY	2055.3	2329.2	$2,025

Parenthetical Data To The Conso

Parenthetical Data To The Consolidated Balance Sheets (USD $)
In Millions	Apr. 03, 2010	Dec. 31, 2009	Apr. 04, 2009
ASSETS
PROPERTY, PLANT AND EQUIPMENT,accumulated depreciation and amortization	544.8	539.4	470.1
EQUITY
Preferred stock, par value	0.01	0.01	0.01
Preferred stock, shares authorized	1	1	1
Preferred stock, shares issued	0	0	0
Common stock, par value	0.01	0.01	0.01
Common stock, shares authorized	200	200	200
Common stock, shares issued	158.5	156.8	156.8
Treasury stock, shares	71.4	71.4	71.4

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Apr. 03, 2010	3 Months Ended Apr. 04, 2009
Income Statement [Abstract]
Net sales	876.1	879.4
Licensing income	11	11.5
Other revenues	0.2	0.2
Total revenues	887.3	891.1
Cost of goods sold	561.1	597.8
Gross profit	326.2	293.3
Selling, general and administrative expenses	249.9	279.6
Operating income	76.3	13.7
Interest income	0.4	0.9
Interest expense and financing costs	12.4	13.8
Equity in loss of unconsolidated affiliate	-1.8	-0.3
Income before provision for income taxes	62.5	0.5
Provision for income taxes	23.1	0.2
Net income	39.4	0.3
Less: income attributable to noncontrolling interest	0.2	0
Income attributable to Jones	39.2	0.3
Earnings per common share
Basic	0.46	$0
Earnings per common share
Diluted	0.45	$0
Weighted average common share and share equivalents outstanding
Basic	82	81.7
Diluted	82.4	81.7
Dividends on common stock	0.05	0.05

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) (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, 2008	83.4
Beginning Balance at Dec. 31, 2008		1.5	1350.7	$1,668	-11.7	-1826.3	$0	1182.2
Comprehensive (loss) income:
Net income	0	0	0	0.3	0	0	0	0.3
Change in fair value of cash flow hedges	0	0	0	0	0.1	0	0	0.1
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	0	0	0	-0.2	0	0	-0.2
Foreign currency translation adjustments	0	0	0	0	-0.5	0	0	-0.5
Total comprehensive (loss) income								-0.3
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 expense in connection with employee stock options and restricted stock	0	0.1	4.1	0	0	0	0	4.2
Tax effects from vesting of restricted stock	0	0	-0.9	0	0	0	0	-0.9
Dividends on common stock ($0.05 per share)	0	0	0	-4.2	0	0	0	-4.2
Ending Balance, Shares at Apr. 04, 2009	85.4
Ending Balance at Apr. 04, 2009		1.6	1353.9	1664.1	-12.3	-1826.3	0	1,181
Beginning Balance, Shares at Dec. 31, 2009	85.4
Beginning Balance at Dec. 31, 2009		1.6	1360.3	1564.4	-7.6	-1826.3	0.1	1092.5
Comprehensive (loss) income:
Net income	0	0	0	39.2	0	0	0.2	39.4
Change in fair value of cash flow hedges	0	0	0	0	-0.1	0	0	-0.1
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	0	0	0	0.1	0	0	0.1
Foreign currency translation adjustments	0	0	0	0	0.7	0	0	0.7
Total comprehensive (loss) income								40.1
Issuance of restricted stock to employees, net of forfeitures (in shares)	1.7
Issuance of restricted stock to employees, net of forfeitures		0	0	0	0	0	0	0
Amortization expense in connection with employee stock options and restricted stock	0	0	9.2	0	0	0	0	9.2
Distributions to noncontrolling interest	0	0	0	0	0	0	-0.1	-0.1
Tax effects from vesting of restricted stock	0	0	-1.6	0	0	0	0	-1.6
Tax effects of expired employee stock options	0	0	-0.1	0	0	0	0	-0.1
Dividends on common stock ($0.05 per share)	0	0	0	-4.3	0	0	0	-4.3
Ending Balance, Shares at Apr. 03, 2010	87.1
Ending Balance at Apr. 03, 2010		1.6	1367.8	1599.3	-6.9	-1826.3	0.2	1135.7

1_Parenthetical Data To The Con

Parenthetical Data To The Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Apr. 03, 2010	3 Months Ended Apr. 04, 2009
Statement of Stockholders' Equity [Abstract]
Tax provision on reclassification adjustment for hedge gains and losses included in net income	$0	0.1
Dividends on common stock	0.05	0.05

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Apr. 03, 2010	3 Months Ended Apr. 04, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	39.4	0.3
Adjustments to reconcile net income to net cash used in operating activities, net of acquisitions:
Amortization expense in connection with employee stock options and restricted stock	9.2	4.2
Depreciation and other amortization	20.9	18.6
Impairment losses on property, plant and equipment	0.7	20.4
Equity in loss of unconsolidated affiliate	1.8	0.3
(Recovery of) provision for losses on accounts receivable	-0.3	1.9
Deferred taxes	11.1	(3)
Other items, net	0.2	0.6
Changes in operating assets and liabilities:
Accounts receivable	-136.2	(111)
Inventories	23	35.4
Prepaid expenses and other current assets	-9.2	-4.9
Other assets	-2.7	-1.3
Accounts payable	-25.2	-81.7
Income taxes payable/prepaid income taxes	10.8	4.6
Accrued expenses and other current liabilities	-23.3	-17.7
Other liabilities	-6.4	(6)
Total adjustments	-125.6	-139.6
Net cash used in operating activities	-86.2	-139.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	-8.7	-8.3
Acquisition of Moda Nicola International, LLC	-11.5	0
Net cash used in investing activities	-20.2	-8.3
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in short-term borrowings	0	9
Dividends paid	-4.3	-4.2
Principal payments on capitalized leases	-0.7	-0.9
Distributions to noncontrolling interest	-0.1	0
Net cash (used in) provided by financing activities	-5.1	3.9
EFFECT OF EXCHANGE RATES ON CASH	0.3	-0.3
NET DECREASE IN CASH AND CASH EQUIVALENTS	-111.2	(144)
CASH AND CASH EQUIVALENTS, BEGINNING	333.4	338.3
CASH AND CASH EQUIVALENTS, ENDING	222.2	194.3

BASIS OF PRESENTATION

BASIS OF PRESENTATION
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
Basis Of Presentation	BASIS OF PRESENTATION The consolidated financial statements include the accounts of Jones Apparel Group, Inc. and its subsidiaries. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the requirements of Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the footnotes thereto included within our Annual Report on Form 10-K. In our opinion, the information presented reflects all adjustments necessary for a fair statement of interim results. All such adjustments are of a normal and recurring nature. The foregoing interim results are not necessarily indicative of the results of operations for the full year ending December 31, 2010.

EARNINGS PER SHARE

EARNINGS PER SHARE
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
(LOSS) EARNINGS PER SHARE	EARNINGS PER SHARE The computation of basic and diluted earnings per share is as follows: Fiscal Quarter Ended April 3, 2010 April 4, 2009 (In millions except per share amounts) Net income $ 39.4 $ 0.3 Less: income Less: income attributable to noncontrolling interest 0.2 - Income attributable to Jones 39.2 0.3 Less: income allocated to participating securities 1.7 - Income available to common stockholders of Jones $ 37.5 $ 0.3 Weighted-average common shares outstanding - basic 82.0 81.7 Effect of dilutive employee stock options and restricted stock 0.4 - Weighted-average common shares and share equivalents outstanding - diluted 82.4 81.7 Earnings per share attributable to Jones Basic $ 0.46 $ 0.00 Diluted 0.45 0.00

ACQUISITIONS

ACQUISITIONS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
Acquisitions	ACQUISITIONS On February 4, 2010, we acquired 100% of the membership interests in Moda Nicola International, LLC ("Moda"), a privately held designer, marketer and wholesaler of women's contemporary eveningwear and sportswear, and owner of the Robert Rodriguez Collection, for $35.8 million. Under the terms of the agreement, we made an initial cash payment of $11.5 million to the selling members of Moda. We deferred $5.5 million of the purchase price, with payment subject to a working capital adjustment and an indemnification holding period as set forth in the acquisition agreement. The selling members of Moda are also entitled to receive future cash payments upon achievement of certain financial targets set within the agreement for the years 2011 through 2014. We have recorded a contingent consideration liability for $18.8 million, based on projected revenues and gross margins of the acquired business and a discount factor based on an estimated weighted average cost of capital. We pursued the acquisition of Moda to increase our presence in the contemporary apparel market and to further develop a business portfolio with significant growth opportunities. Moda will be reported as part of our wholesale better apparel segment. The following table summarizes the fair values of the assets acquired and liabilities assumed from Moda on February 4, 2010. (In millions) Amortization life (in months) Fair Value Current assets $ 3.2 Property, plant and equipment 0.2 Intangible assets: Goodwill 6.7 Customer relationships 120 7.9 Trademarks 240 17.0 Covenants not to compete 59 0.2 Order backlog 3 1.7 Total assets acquired 36.9 Current liabilities (1.1 ) Total purchase price $ 35.8 The fair value of receivables acquired from Moda was $2.2 million, with gross contractual amounts receivable amounting to $2.7 million. The acquisition resulted in the recognition of $6.7 million of goodwill, which is expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the acquisition, such as manufacturing and supply chain work process improvements and the elimination of redundant corporate overhead for shared services and governance, the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as footwear. The following table provides total revenues and results of operations from the acquired Moda business included in our results since the acquisition. Fiscal Quarter Ended April 3, 2010 (In millions) Total revenues $ 4.4 Loss before provision for taxes (0.7 ) The following table provides pro forma total revenues and results of operations for the fiscal quarters ended April 3, 2010 and April 4, 2009 as if Moda had been acquired on January 1, 2009. The unaudited pro forma results reflect certain adjustments related to the acquisition, such as amortization expense on assets acquired from Moda resulting from the fair valuation of assets acquired. The pro fo

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
ACCOUNTS RECEIVABLE AND SIGNIFICANT CUSTOMERS	ACCOUNTS RECEIVABLE Accounts receivable consist of thefollowing: (In millions) April 3, 2010 April 4, 2009 December 31, 2009 Trade accounts receivable $ 476.4 $ 514.0 $ 327.9 Allowances for doubtful accounts, returns, discounts and co-op advertising (35.0 ) (34.6 ) (24.8 ) $ 441.4 $ 479.4 $ 303.1 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 $35.1 million, $50.1 million and $40.7 million at April 3, 2010, April 4, 2009 and December 31, 2009, respectively. Net revenues from GRI amounted to $15.1 million and $12.3 million for the fiscal quarters ended April 3, 2010 and April 4, 2009, respectively. On April 23, 2009, we converted $10.0 million of the 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.

ACCRUED RESTRUCTURING COSTS

ACCRUED RESTRUCTURING COSTS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
ACCRUED RESTRUCTURING COSTS	ACCRUED RESTRUCTURING COSTS 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. These closings were substantially complete by the end of February 2008. Prior to 2009, we had recorded $7.4 million of one-time termination benefits and associated employee costs for approximately 440 employees and $0.9 million of lease obligations as selling, general and administrative expenses in our wholesale jeanswear segment. During the fiscal quarter ended April 4, 2009, we recorded $1.9 million of additional lease obligation costs as selling, general and administrative expenses in our wholesale jeanswear segment relating to one of the warehouse facilities. During the fiscal quarter ended April 3, 2010, we reversed $1.3 million of lease obligation costs as selling, general and administrative (SGA) expenses in our wholesale jeanswear segment relating to a sublease of one of the warehouse facilities. 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, 2009 $ 0.9 $ 0.3 $ 1.2 Additions - 1.9 1.9 Payments and reductions (0.2 ) (0.4 ) (0.6 ) Balance, April 4, 2009 $ 0.7 $ 1.8 $ 2.5 Balance, January 1, 2010 $ - $ 2.0 $ 2.0 Net reversal - (1.3 ) (1.3 ) Payments and reductions - (0.2 ) (0.2 ) Balance, April 3, 2010 $ - $ 0.5 $ 0.5 During the fiscal quarter ended April 4, 2009, $0.2 million of the termination benefits accrual were utilized (relating to partial or full severance for one employee). The net accrual of $0.5 million at April 3, 2010 is reported as $0.1 million of accrued expenses and other current liabilities and $0.4 million of other noncurrent liabilities. The net accrual of $2.5 million at April 4, 2009 is reported as $1.8 million of accrued expenses and other current liabilities and $0.7 million of other noncurrent liabilities. Other Restructurings Retail Stores. We have decided to close approximately 270 underperforming retail locations by the end of 2010, of which 160 have closed as of April 3, 2010. Total termination benefits and associated employee costs are expected to be $4.7 million for approximately 1,200 employees, including both store employees and administrative support personnel. Of this amount, we recorded $0.1 million and $3.1 million for the fiscal quarters ended April 3, 2010 and April 4, 2009, respectively. We also recorded $0.7 million and $20.4 million of impairment losses on leasehold improvements and furniture and fixtures located in the stores to be closed for the fiscal quarters ended April 3, 2010 and April 4, 2009, respectively. These costs are reported as SGA expenses in the retail segment. Jewelry. During 2009, we decided to discontinue the domestic manufacturing, product development and

GOODWILL

GOODWILL
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL The following table presents, by segment and in total, changes in the carrying amount of goodwill for the fiscal quarter ended April 3, 2010. There were no changes to our goodwill balances for the fiscal quarter ended April 4, 2009. (In millions) Wholesale Better Apparel Wholesale Jeanswear Wholesale Footwear Accessories Retail Total Balance, January 1, 2010 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 Addition from acquisition of Moda 6.7 - - - 6.7 Balance, April 3, 2010 Goodwill 46.8 519.2 813.2 120.6 1,499.8 Accumulated impairment losses - (519.2 ) (813.2 ) (120.6 ) (1,453.0 ) Net goodwill $ 46.8 $ - $ - $ - $ 46.8

FAIR VALUES

FAIR VALUES
	3 Months Ended Apr. 03, 2010
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 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. 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 We have certain financial assets and liabilities that are required to be measured at fair value. These include: the assets and liabilities of the Jones Apparel Group, Inc. Deferred Compensation Plan (the Rabbi Trust), which represent deferred employee compensation invested in mutual funds and which fall within Level 1 of the fair value hierarchy; deferred director fees, which represent phantom units of our common stock that have a fair value based on the market price of our common stock and which fall within Level 1 of the fair value hierarchy; foreign currency forward contracts, which have fair values based on observable inputs including foreign exchange forward and spot rates and which fall within Level 2 of the fair value hierarchy; and contingent consideration recorded as a result of the acquisition of Moda, which has a fair value based on our projection of revenues and gross margins for the acquired business and a discount factor based on our weighted average cost of capital, and which falls within Level 3 of the fair value hierarchy. 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 April 4, 2009 and April 3, 2010. (In millions) Description Classification Total Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs

CREDIT FACILITIES

CREDIT FACILITIES
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
Credit Facilities	CREDIT FACILITIES We have a secured revolving credit agreement expiring on March 13, 2012 (the "Credit Facility") with several lending institutions to borrow an aggregate principal amount of up to $650 million. Under the 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 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 Credit Facility, or based on Eurocurrency rates, each with a margin that depends on the availability remaining under the Credit Facility. The Credit Facility contains customary events of default. Availability under the 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 April 3, 2010, we had no cash borrowings and $34.1 million of letters of credit outstanding, and our remaining availability was $473.9 million. If availability under the Credit Facility falls below a stated level, we will be required to comply with a minimum fixed charge coverage ratio. The 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 Credit Facility is secured by a first priority lien on substantially all of our personal property.

DERIVATIVES

DERIVATIVES
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
DERIVATIVES	DERIVATIVES We 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 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 forward and spot rates 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 are classified as cash flow hedges. The contracts outstanding at April 3, 2010 mature at various dates through August 2010. (In millions) April 3, 2010 April 4, 2009 Notional amount Fair value - other current liabilities Notional amount Fair value - other current liabilities Canadian Dollar - U.S. Dollar $ 5.0 $ 0.2 $ 6.7 $ - 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 Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income Derivative type Fiscal Quarter Ended April 3, 2010 Fiscal Quarter Ended April 4, 2009 Location of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income Fiscal Quarter EndedApril 3, 2010 Fiscal Quarter Ended April 4, 2009 Foreign currency forward contracts $ (0.1 ) $ 0.1 Cost of sales $ (0.1 ) $ 0.3 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 April 3, 2010 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material.

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
STATEMENT OF CASH FLOWS	STATEMENT OF CASH FLOWS Fiscal Quarter Ended April 3, 2010 April 4, 2009 (In millions) Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 2.3 $ 1.6 Net income tax payments (refunds) 0.2 (2.1 ) Supplemental disclosures of non-cash investing and financing activities: Restricted stock issued to employees 27.5 7.0

EQUITY METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
EQUITY-METHOD INVESTMENTS	EQUITY METHOD INVESTMENTS 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.

PENSION PLANS

PENSION PLANS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
EMPLOYEE BENEFIT PLANS	PENSION PLANS Components of Net Periodic Benefit Cost (In millions) Fiscal Quarter Ended April 3, 2010 April 4, 2009 Interest cost $ 0.7 $ 0.7 Expected return on plan assets (0.6 ) (0.6 ) Amortization of net loss 0.4 0.4 Net periodic benefit cost $ 0.5 $ 0.5 Employer Contributions During the fiscal quarter ended April 3, 2010, we contributed $0.8 million to our defined benefit pension plans. We anticipate contributing $5.0 million during 2010. We previously participated in a multi-employer defined benefit plan that covered union employees at a distribution center that has been closed. As a result of closing this facility, in March 2009 we paid a partial withdrawal liability payment of $2.4 million.

SEGMENT INFORMATION

SEGMENT INFORMATION
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION	SEGMENT 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 e-commerce web sites, and income and expenses related to trademarks, licenses and general corporate functions are reported under "licensing, other and eliminations." We define segment income 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 the fiscal quarters ended April 3, 2010 and April 4, 2009. We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, we do not represent that these segments, if operated independently, would report the operating profit and other financial information shown below. (In millions) Wholesale Better Apparel Wholesale Jeanswear Wholesale Footwear Accessories Retail Licensing, Other Eliminations Consolidated For the fiscal quarter ended April 3, 2010 Revenues from external customers $ 284.3 $ 219.8 $ 230.3 $ 141.9 $ 11.0 $ 887.3 Intersegment revenues 35.5 1.2 12.1 - (48.8 ) - Total revenues 319.8 221.0 242.4 141.9 (37.8 ) 887.3 Segment income (loss) $ 57.2 $ 36.9 $ 24.2 $ (22.7 ) $ (19.3 ) 76.3 Net interest expense (12.0 ) Equity in loss of unconsolidated affiliate (1.8 ) Income before provision for income taxes $ 62.5 For the fiscal quarter ended April 4, 2009 Revenues from external customers $ 291.8 $ 228.2 $ 218.4 $ 141.2 $ 11.5 $ 891.1 Intersegment revenues 39.2 1.0 18.5 - (58.7 ) - Total revenues 331.0 229.2 236.9 141.2 (47.2 ) 891.1 Segment income (loss) $ 49.6 $ 17.3 $ 15.9 $ (58.4 ) $ (10.7 ) 13.7 Net interest expense (12.9 ) Equity in loss of unconsolidated affiliate (0.3 ) Income before provision for income taxes $ 0.5

SUPPLEMENTAL CONDENSED FINANCIA

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
SUPPLEMENTAL PRO FORMA CONDENSED FINANCIAL INFORMATION	SUPPLEMENTAL 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 Apparel Group, USA, Inc. ("Jones USA"), Jones Apparel Group Holdings, Inc. ("Jones Holdings") and JAG Footwear, Accessories and Retail Corporation ("JAG Footwear"). 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, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. 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 or JAG Footwear to Jones. Condensed Consolidating Balance Sheets (In millions) April 3, 2010 December 31, 2009 Issuers Others Elim- inations Cons- olidated Issuers Others Elim- inations Cons- olidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 212.0 $ 10.2 $ - $ 222.2 $ 322.1 $ 11.3 $ - $ 333.4 Accounts receivable 298.0 143.4 - 441.4 189.5 113.6 - 303.1 Inventories 261.7 92.0 (0.1 ) 353.6 259.7 115.1 0.2 375.0 Prepaid and refundable income taxes - - 0.2 0.2 0.7 0.1 (0.8 ) - Deferred taxes 15.7 14.7 - 30.4 13.3 14.8 - 28.1 Prepaid expenses and other current assets 24.8 10.3 - 35.1 18.2 7.4 - 25.6 TOTAL CURRENT ASSETS 812.2 270.6 0.1 1,082.9 803.5 262.3 (0.6 ) 1,065.2 Property, plant and equipment - net 89.9 141.8 - 231.7 93.4 145.6 - 239.0 Due from affiliates - 1,400.3 (1,400.3 ) - - 1,382.9 (1,382.9 ) - Goodwill 46.8 - - 46.8 40.1 - - 40.1 Other intangibles - net 8.8 575.7 - 584.5 0.5 559.3 - 559.8 Prepaid and refundable income taxes - - - - 5.4 - (0.7 ) 4.7 Deferred taxes 84.6 - (84.6 ) - 83.3 - (79.4 ) 3.9 Investments in and loans to subsidiaries 2,170.3 39.7 (2,170.3 ) 39.7 2,125.2 42.1 (2,125.2 ) 42.1 Other assets 58.2 11.5 - 69.7 60.2 10.0 - 70.2 TOTAL ASSETS $ 3,270.8 $ 2,439.6 $ (3,655.1 ) $ 2,055.3 $ 3,211.6 $ 2,402.2 $ (3,588.8 ) $ 2,025.0 LIABILITIES AND EQUITY CURRENT LIABILITIES: Current portion of capital

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS
	3 Months Ended Apr. 03, 2010
Notes to Financial Statements [Abstract]
New Accounting Standards	NEW ACCOUNTING STANDARDS In February 2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855) - Amendments to Certain Recognition and Disclosure Requirements." ASU 2010-09 requires an entity that is an SEC filer to evaluate subsequent events through the date that the financial statements are issued and removes the requirement that an SEC filer disclose the date through which subsequent events have been evaluated. ASC 2010-09 was effective upon issuance. The adoption of this standard had no effect on our results of operation or our financial position. In April 2010, the FASB issued ASU 2010-13, "Compensation - Stock Compensation (Topic 718) - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades." ASU 2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity's equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The adoption of this standard will not have an effect on our results of operation or our financial position.

Document Information

Document Information
	3 Months Ended Apr. 03, 2010
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-04-03

Entity Information

Entity Information (USD $)
	3 Months Ended Apr. 03, 2010	Apr. 27, 2010	Jul. 04, 2009
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		87,133,436
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1