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Calvin Klein royalty revenue to increase 6-7%, PVH
22 Apr '10
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Impact of the Proposed Tommy Hilfiger Acquisition
It is currently anticipated that the Company's acquisition of Tommy Hilfiger will close early in the second quarter of 2010. The Company currently expects the Tommy Hilfiger transaction to be immediately accretive to earnings per share before one-time cash integration costs and transaction expenses. The Company currently estimates earnings accretion of $0.20 to $0.25 per share in its 2010 fiscal year, which excludes one-time cash integration costs and transaction expenses. The Company currently estimates earnings accretion of $0.75 to $1.00 per share in its 2011 fiscal year.
Non-GAAP Exclusions:
The discussions in this release that refer to non-GAAP amounts exclude the following:
• Pre-tax costs of $25.9 million incurred in 2009 (of which $4.7 million was incurred in the first quarter) in connection with the Company's restructuring initiatives announced in the fourth quarter of 2008, including the shutdown of the Company's domestic production of machine-made neckwear, a realignment of the Company's global sourcing organization, reductions in warehousing capacity, lease termination fees for the majority of the Company's Calvin Klein specialty retail stores and other initiatives to reduce corporate and administrative expenses.
• Estimated pre-tax costs of $60.0 million related to the proposed acquisition of Tommy Hilfiger that will be incurred principally in the first quarter of 2010 regardless of whether the acquisition is consummated.
• The tax benefit of the above pre-tax costs, and a net tax benefit of $29.6 million that was recorded primarily in the third quarter of 2009, related principally to the lapse of the statute of limitations with respect to certain previously unrecognized tax positions. Taxes are estimated on the Company's restructuring and other costs at the Company's normalized tax rate before discrete items.
It is currently anticipated that the Company's acquisition of Tommy Hilfiger will close early in the second quarter of 2010. The Company currently expects the Tommy Hilfiger transaction to be immediately accretive to earnings per share before one-time cash integration costs and transaction expenses. The Company currently estimates earnings accretion of $0.20 to $0.25 per share in its 2010 fiscal year, which excludes one-time cash integration costs and transaction expenses. The Company currently estimates earnings accretion of $0.75 to $1.00 per share in its 2011 fiscal year.
Non-GAAP Exclusions:
The discussions in this release that refer to non-GAAP amounts exclude the following:
• Pre-tax costs of $25.9 million incurred in 2009 (of which $4.7 million was incurred in the first quarter) in connection with the Company's restructuring initiatives announced in the fourth quarter of 2008, including the shutdown of the Company's domestic production of machine-made neckwear, a realignment of the Company's global sourcing organization, reductions in warehousing capacity, lease termination fees for the majority of the Company's Calvin Klein specialty retail stores and other initiatives to reduce corporate and administrative expenses.
• Estimated pre-tax costs of $60.0 million related to the proposed acquisition of Tommy Hilfiger that will be incurred principally in the first quarter of 2010 regardless of whether the acquisition is consummated.
• The tax benefit of the above pre-tax costs, and a net tax benefit of $29.6 million that was recorded primarily in the third quarter of 2009, related principally to the lapse of the statute of limitations with respect to certain previously unrecognized tax positions. Taxes are estimated on the Company's restructuring and other costs at the Company's normalized tax rate before discrete items.
Phillips-Van Heusen Corporation
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