a. 1. Comment on the principles of consolidation.

2. Does it appear that there is a 100% ownership in all consolidated subsidiaries?

b. Comment on the use of estimates.

c. Would you expect an impairment in marketable securities?

d. What type of ‘‘special item'' would be costs on early extinguishment debt?

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PERRY ELLIS INTERNATIONAL, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For The Years Ended January 31, (Amounts in thousands, except per share data) 2009 2008 2007 Revenues Net sales 825,868 25,429 851,297 573,046 278,251 S838.465 25,401 863,866 572,232 291,634 S 807,616 Royalty income Total revenues Cost of sales Gross pofit Operating expenses 829,842 554,046 275,796 Selling, general, and administrative expenses 236,840 14,784 22.299 273.923 4,328 215,873 13,278 204,883 11,608 Depreciation and amortization Impairment on long-lived assets Total operating expenses 229,151 62,483 216.491 59,305 2,963 Operating income Costs on early extinguishment of debt Impairment on marketab le securities Interest expense (Loss) income before minority interest and income tax 2,797 17.491 17.594 44,889 931 15,785 S 28,173 35,228 508 12,311 S 22.409 (15,960) DrOviSion Minority interest Income tax (benefit) provision Net (loss) income Net (loss) income per share 612 S (12,890) Basic Diluted S (0.89) S (0.89) S 1.92 S 1.80 $ 1.55 $ 1,45