See the attached schedule of “Other Operating Data” for the reconciliation of adjusted operating earnings and the Company's statements regarding the use of this non-GAAP financial measure.
Other Items: The Company recorded other income of $32.5 million in the first quarter of fiscal year 2008 which represents a one-time pension curtailment gain as a result of the Company's decision to freeze pension and retirement benefits as of December 31, 2007.
In addition, the Company recorded other income of approximately $4.2 million in the first quarter of fiscal year 2007 which represents proceeds it received from its investment in an Internet retailer.
In December 2006, the Company completed both the purchase of the minority interest and the sale of Kate Spade LLC for pretax net cash proceeds of approximately $62.1 million. The Company's financial statements reflect Kate Spade LLC as discontinued operations for all periods presented.