This far exceeded our wildest expectations. We're definitely doing it again next year.

It's a lot more pressure this year. There's a lot of expectations and there's a lot of seniors and from Day 1, I think the expectation has been there for us to get back to the state. Hopefully we can get over some of this sickness, these illnesses, and get ourselves back in playing shape.

We didn't have the greatest year. We didn't meet a lot of our expectations, but the one thing you can say about this team is throughout the year we never quit.

Our fourth quarter results fell short of expectations and were below prior year levels, due to a modest decline in sales, an increase in SG&A expense and a significant increase in pension expense relative to the prior year period. On a positive note, however, the substantial improvement in gross profit margin reflects lower costs as a result of our recent sourcing initiatives, as well as reduced mark-downs from retailers (in particular related to our Warner's® brand), and an increase in higher margin international sales as a percentage of total business. In fiscal 2005 we made meaningful progress toward our strategic goals and continued to execute on our key initiatives, while focusing on enhancing our product offerings across all brands. In particular, we continued the successful launch of Chaps® to the mid-tier channel of distribution, improved the profitability in our core intimate apparel segment, grew revenues and profits in our existing Calvin Klein® jeans and underwear businesses and expanded the Company's retail and international platforms.

I think we have expectations that are a lot higher than the level we're playing at right now.

The downgrade reflects expectations for debt reduction in 2006, which — while meaningful — is nevertheless insufficient to improve leverage and other key credit ratios to a level consistent with an 'A' rating level.