SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549 _____________ FORM 11-K ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (Mark One): ýANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the fiscal year endedDecember 31, 2006 OR oTRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the transition period from __________ to __________ Commission file number 1-724 A.Full title of the plan and the address of the plan, if different from that of the issuer named below:PVH Associates Investment Plan for Hourly Associates and PVH Associates Investment Plan for Salaried Associates B.Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:Phillips-Van Heusen Corporation, 200 Madison Avenue, New York, New York 10016     SIGNATURES The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLANS    Date:  June 27, 2007 By /s/  Pamela N. Hootkin Pamela N. Hootkin, Member of Administrative Committee    Financial Statements  Years ended December 31, 2006 and 2005  Contents  Phillips-Van Heusen Corporation Associates Investment Plan For Hourly Associates  Page  Report of Independent Registered Public Accounting Firm F-1
Financial Statements Statements of Net Assets Available for Benefits F-2 Statements of Changes in Net Assets Available for Benefits F-3 Notes to Financial Statements F-4
Supplemental Schedule Schedule H, Line 4i--Schedule of Investments Held at Year End F-14   Phillips-Van Heusen Corporation Associates Investment Plan For Salaried Associates Page  Report of Independent Registered Public Accounting Firm F-15
Financial Statements Statements of Net Assets Available for Benefits F-16 Statements of Changes in Net Assets Available for Benefits F-17 Notes to Financial Statements F-18
Supplemental Schedule Schedule H, Line 4i--Schedule of Investments Held at Year End F-28    Report of Independent Registered Public Accounting Firm  Administrative Committee of the Plan Phillips-Van Heusen Corporation Associates Investment Plan for Hourly Associates  We have audited the accompanying statement of net assets available for benefits of the Phillips-Van Heusen Corporation Associates Investment Plan for Hourly Associates as of December 31, 2006 and 2005, and the related statement of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with the auditing standards of the Public Company Accounting Oversights Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plans internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the plans internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes ex­amining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.  In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005, and the changes in its net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States.  Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole.  The accompanying supplemental schedule of investments held at year end as of December 31, 2006, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  This supplemental schedule is the responsibility of the Plans management.  The supplemental schedule has been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.   /S/ SPIELMAN KOENIGSBERG & PARKER, LLP  June 22, 2007       F-1  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, 2006 and 2005    20062005AssetsInvestments, at fair value:Investment in Phillips-Van HeusenCorporation Associates InvestmentPlans Master Trust$ 9,391,798Investments held by Wells Fargo Bank:Stable Return Fund$ 1,435,105Mutual Funds5,139,766Investment in Phillips-Van HeusenCorporation Associates InvestmentPlans Master Trust2,844,336Adjustment to contract value from fairvalue for interest in common/collectivetrust relating to fully benefit-responsiveinvestment contracts21,09819,556Participant loans receivable320,613511,489Contributions receivable21,32743,225Total Assets9,754,8369,993,477LiabilitiesMiscellaneous payables524-Total Liabilities524-Net assets available for benefits$ 9,754,312$ 9,993,477      The accompanying notes are an integral part of these financial statements  F-2  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
STATEMENT OF CHANGES IN NET 
ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, 2006 and 2005   20062005AdditionsContributions:Employer, net of forfeitures$    348,764$     391,674Employees788,476840,453Interest and investment income188,052170,023Loan interest29,12722,130Master trust investment income1,422,977-Adjustment to contract value from fair valuefor interest in common/collective trust relatingto fully benefit-responsive investment contracts21,09819,556Transfer from Phillips-Van Heusen AssociatesInvestment Plan for Salaried Associates12,183-Total additions2,810,6771,443,836DeductionsPayments to participants3,344,988685,187Transfer to Phillips-Van Heusen AssociatesInvestment Plan for Salaried Associates31,259-Total deductions3,376,247685,187Net realized and unrealized appreciationof investments326,405669,955Net (decrease) increase in net assets available for benefits(239,165)1,428,604Net assets available for benefits at beginning of year9,993,4778,564,873Net assets available for benefits at end of year$9,754,312$9,993,477  The accompanying notes are an integral part of these financial statements  F-3  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS
For the Years Ended December 31, 2006 and 2005      1. Description of the Plan  The following description of the Phillips-Van Heusen Corporation (the Company) Associates Investment Plan for Hourly Associates (the Plan) provides only general information.  Participants should refer to the Plan Document for a more complete description of the Plans provisions.  Change in Trustee and Recordkeeper  Effective November 3, 2006, the Plans Trustee changed from Wells Fargo Bank (the Predecessor Trustee) to Nationwide Trust Company (the Trustee or Successor Trustee), and the Plans Recordkeeper changed from Wells Fargo Retirement Plan Solutions to The 401(k) Company.  Master Trust  The Phillips-Van Heusen Corporation Associates Investment Plans Master Trust (the Master Trust) was established for the investment of the Phillips-Van Heusen Stock Fund (the PVH Stock Fund).  Effective with the change in Recordkeeper and Trustee on November 3, 2006, all of the investments of the Companys Associates Investment Plan for Hourly Employees and the Associates Investment Plan for Salaried Employees were combined into the new Master Trust held by the Nationwide Trust Company.  General  The Plan is a defined contribution plan covering hourly production, warehouse, distribution, leased employees and U.S. retail field employees of the Company, who are at least age 21 or older, have completed at least three consecutive months of service and are regularly scheduled to work at least 20 hours per week. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).   F-4  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS    Contributions  Participants may contribute up to 25% of pre-tax annual compensation, limited to $15,000 and $14,000 per annum in 2006 and 2005 respectively.  In addition, pursuant to EGTRRA of 2001, all participants who have attained the age of 50 before the close of the plan year are eligible to make catch-up contributions up to $5,000 for the plan year ended December 31, 2006.  The Company matches 100% of the first 2% of eligible compensation that a participant contributed to the Plan plus 25% of the next 4% of eligible compensation contributed by the participant.  Participant Accounts  Each participants account is credited with the participants contributions and allocations of (a) the Companys contributions and (b) Plan earnings.  Forfeited balances of terminated participants nonvested accounts are used to reduce future Company contributions.  Vesting  Amounts attributable to employee contributions and the allocated earnings thereon are immediately vested.  Participants become 25%, 50%, 75% and 100% vested in Company contributions after two, three, four and five years of service, respectively.  Upon death, permanent disability or reaching age 65, participants or their beneficiaries become 100% vested in Company contributions.  Investment Options  Upon enrollment in the Plan, a participant may direct employee or Company contributions into any one of four pre-mixed asset allocation models or any of 10 individual investment options.  A participant may contribute a maximum of 25% of employee contributions into the PVH Stock Fund.    F-5  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS      Participant Loans Receivable  Participants may borrow from the Plan, with certain restrictions, using their vested account balance as collateral.  The minimum loan amount is $1,000 and the maximum loan amount is the lesser of (i) $50,000 reduced by the participants highest outstanding loan balance during the previous 12 months, or (ii) 50% of the vested value of the participants account. Interest is fixed for the term of the loan at the prime rate plus 1%.  Loan repayments are made through payroll deductions which may be specified for a term of 1 to 5 years or up to 15 years for the purchase of a primary residence. At December 31, 2006, total outstanding participant loans outstanding totaled $320,613, with maturity dates through 2012 at interest rates ranging from 5% to 9.25%.  Forfeitures  Contributions made on behalf of non-vested or partially vested employees who have terminated are retained by the Plan and are used to reduce the Companys future matching contributions.  Payment of Benefits  Participants electing final distributions will receive payment in the form of a lump sum amount equal to the value of their vested account unless the participant notifies the Company of their intent to receive all or a portion of their balance attributable to the PVH Stock Fund paid in the form of shares of the Companys Common Stock.  Plan Termination  Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.  In the event of Plan termination, participants will become 100% vested in their accounts.     F-6  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS    2. Significant Accounting Policies  The accounting records of the Plan are maintained on the accrual basis.  Substantially all administrative expenses are paid by the Company.  In accordance with the Rules and Regulations of the Department of Labor, investments are included in the accompanying financial statements at market value as determined by quoted market prices or at fair value as determined by the trustee.  Purchases and sales of securities are reflected on a trade date basis.  All assets of the Plan are held by the Trustee in the Master Trust and are segregated from the assets of the Company.  The Plan shares in the Master Trust interest and investment income based upon its participants shares of the Master Trust net assets available for benefits.  The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates. In December 2005, the Financial Accounting Standards Board (FSAB) issued FASB Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (FSP).  This FSP requires investments in benefit-responsive investment contracts be presented at fair value.  However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.  The Plan invests in investment contracts though a common/collective trust.  As required by the FSP, the Statement of Net Assets Available for Benefits presents the fair value of the investments in the common/collective trust as well as the adjustment of the investment in the common/collective trust from fair value to contract value relating to the investment contracts.  The Statement of Changes in Net Assets Available for Benefits is prepared on a contact value basis.  The result of the implementation of the FSP was an adjustment from fair value to contract value in the amount of $21,098 and $19,556 as of December 31, 2006 and 2005, respectively.   F-7  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS     3. Transactions with Parties-in-Interest  During the years ended December 31, 2006 and 2005, the Master Trust purchased 53,146 and 47,988 shares, respectively, of the Companys common stock and received $138,106 and $153,906, respectively, from the Company as payment of dividends on its common stock. The AIP Master Trust also sold 152,495 and 160,053 shares of the Companys common stockduring the years ended December 31, 2006 and 2005, respectively.  4. Assets of the Plan  Investments that represent 5% or more of the fair value of the Plans net assets at the end of the plan year are as follows:  20062005Investment in Phillips-Van HeusenCorporation Associates InvestmentPlans Master Trust$   9,391,798$  2,844,336Dodge & Cox Balanced*1,283,331Dreyfus Appreciation#1,207,303Wells Fargo Stable Return Fund (S)*1,435,105Wells Fargo Advantage Small CapValue Fund (Z)*600,404Wells Fargo Advantage Total ReturnBond (Adm)#628,267Wells Fargo S&P 500 Index Fund (G)#988,751Shares of registered companies representingless than 5%431,710* Investment became part of the Master Trust at the end of the plan year.#  Investment not offered at the end of the plan year.   F-8  PHILLIPS-VAN HEUSEN CORPORATION
ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES
NOTES TO FINANCIAL STATEMENTS      During 2006** and 2005, the Plans investments (including investments purchased, sold, as well as held during the year) appreciated in fair value as determined by quoted market prices as follows:  Net Realized and Unrealized Appreciation in Fair Value of Investments  2006**2005Common stockPVH Stock Fund$      -$499,455Shares of registered investment companies326,405170,500$326,405$669,955   ** Represents appreciation for the period January 1, 2006 through November 2, 2006 of investments not in the Master Trust.  See below for Master Trust information.    F-9  PHILLIPS-VAN HEUSEN CORPORATION PENSION PLAN ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES NOTES TO FINANCIAL STATEMENTS      5. Interest in the Master Trust  Effective November 3, 2006, the plans investments, with the exception of participant loans, are held in a Master Trust with the assets of the Associates Plan for Salaried Associates.  The assets of the Master Trust are held by Nationwide Trust Company.  The plan participates in the Master Trust for the investment of the pooled assets of various funds.  Each participating plan has an undivided interest in the Master Trust.  Income and assets of the Master Trust are allocated to the Plan based on participant balances.The assets of the Master Trust at December 31, 2006 consist of the following:  2006Cash$           27,724Receivable from investments sold86,852Payable for investments purchased(86,852)Other payable(9,619)Investments, at market value:Common Collective Trust22,338,688Mutual Funds86,595,356Common Stock42,951,591Money Market Funds1,195,213Total Master Trust Investments$ 153,098,953Plans beneficial interest$     9,391,798Plans percentage interest6%   F-10  PHILLIPS-VAN HEUSEN CORPORATION PENSION PLAN ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES NOTES TO FINANCIAL STATEMENTS      Net investment income for the Master Trust through December 31, 2006 is as follows:  2006Net appreciation (depreciation) in fair value of investments determined by quoted market prices:Common Stock$ 16,261,622Mutual Funds and Common Collective Trust(883,605)15,378,017Interest and dividend income3,941,060Total master trust investment income$ 19,319,077    6. Income Tax Status  The Plan has received a determination letter from the Internal Revenue Service dated September 2, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation.  Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification.  The plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax-exempt.  F-11  PHILLIPS-VAN HEUSEN CORPORATION PENSION PLAN ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES NOTES TO FINANCIAL STATEMENTS  7. Reconciliation of Financial Statements to Form 5500  The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at December 31, 2006: Net assets available for benefits per the financial statements$9,754,312Less adjustment to contract value21,098Net assets available for benefits per the Form 5500$9,733,214   F-12     SUPPLEMENTAL SCHEDULE    EIN: 13-1166910 Plan No: 012  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR HOURLY ASSOCIATES  SCHEDULE H, LINE 4i--SCHEDULE OF INVESTMENTS AT YEAR END  For the Year Ended December 31, 2006  Identity of HolderDescription of InvestmentCurrent ValueNationwide Trust CompanyCash$          2,727Nationwide Trust CompanyCash Management Trust ofAmerica; 85,424.950 shares85,425Nationwide Trust CompanySEI Stable Asset Fund;148,178.610 shares144,377Nationwide Trust CompanyState Street S&P 500 Index:16,378.745 shares617,741Nationwide Trust CompanyWells Fargo Stable Return;30,526.472 shares1,203,029Nationwide Trust CompanyAmerican Beacon Large Cap Value33,987.093 shares774,226Nationwide Trust CompanyBond Fund of America49,094.715 shares653,942Nationwide Trust CompanyDodge & Cox Balanced Fund;10,468.642 shares911,609Nationwide Trust CompanyGrowth Fund of America;21,783.914 shares711,463Nationwide Trust CompanyHartford HLS Small Cap Growth;7,043.303 shares146,078Nationwide Trust CompanyThornburg International Value;18,924.301 shares548,994Nationwide Trust CompanyWells Fargo Advantage Small Cap;16,778.523 shares522,315Nationwide Trust CompanyPhillip-Van Heusen Corp. Common Stock;61,189.373 shares3,069,871Total investments held byNationwide Trust Co., FSB$ 9,391,798    F-14  Report of Independent Registered Public Accounting Firm  Administrative Committee of the Plan Phillips-Van Heusen Corporation Associates Investment Plan for Salaried Associates  We have audited the accompanying statements of net assets available for benefits of the Phillips-Van Heusen Corporation Associates Investment Plan for Salaried Associates as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversights Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plans internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the plans internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes ex­amining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.  In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005 and the changes in its net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States.  Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole.  The accompanying supplemental schedule of investments held at year end as of December 31, 2006 is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  This supplemental schedule is the responsibility of the Plans management. The supplemental schedule has been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion is fairly stated in all material respects in relation to the financial statements taken as a whole.    /S/ SPIELMAN KOENIGSBERG & PARKER, LLP   June 22, 2007    F-15  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS  December 31, 2006 and 2005  20062005AssetsInvestments, at fair value:Investment in Phillips-Van HeusenCorporation Associates Investment PlansMaster Trust$ 143,707,155$               -Investments held by Wells Fargo Bank:Stable Return Fund11,890,792Mutual Funds73,542,816Investment in Phillips-Van HeusenCorporation Associates InvestmentPlans Master Trust29,777,423Adjustment to contract value from fairvalue for interest in common/collectivetrust relating to fully benefit-responsiveinvestment contracts220,145162,034Participant loans receivable1,773,2101,789,881Contributions receivable443,086379,825Total Assets146,143,596117,542,771LiabilitiesMiscellaneous payables9,277-Total liabilities9,277-Net assets available for benefits$ 146,134,319$ 117,542,771     The accompanying notes are an integral part of these financial statements  F-16  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS  For the Years Ended December 31, 2006 and 2005  20062005AdditionsContributions:Employer, net of forfeitures$     3,288,623$    3,035,467Employees8,723,9487,837,210Rollovers273,473397,583Interest and investment income2,130,9083,004,984Transfer from Phillips-Van Heusen AssociatesInvestment Plan for Hourly Associates31,259Loan interest129,24298,438Master trust investment income17,896,100Adjustment to contract value from fair valuefor interest in common/collective trust relatingto fully benefit-responsive investment contracts220,145162,034Total additions32,693,69814,535,716DeductionsPayments to participants10,377,0376,846,759Transfer to Phillips-Van Heusen AssociatesInvestment Plan for Hourly Associates12,183-Total deductions10,389,2206,846,759Net realized and unrealized appreciation of investments6,287,0707,537,324Net increase in net assets available for benefits28,591,54815,226,281Net assets available for benefits at beginning of year117,542,771102,316,490Net assets available for benefits at end of year$ 146,134,319$ 117,542,771  The accompanying notes are an integral part of these financial statements  F-17  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS  For the Years Ended December 31, 2006 and 2005   1. Description of the Plan  The following description of the Phillips-Van Heusen Corporation (the Company) Associates Investment Plan for Salaried Associates (the Plan) provides only general information. Participants should refer to the Plan Document for a more complete description of the Plans provisions.  Change in Trustee and Recordkeeper  Effective November 3, 2006, the Plans Trustee changed from Wells Fargo Bank (the Predecessor Trustee) to Nationwide Trust Company (the Trustee or Successor Trustee), and the Plans Recordkeeper changed from Wells Fargo Retirement Plan Solutions to The 401(k) Company.  Master Trust  The Phillips-Van Heusen Corporation Associates Investment Plans Master Trust (the Master Trust) was established for the investment of the Phillips-Van Heusen Stock Fund (the PVH Stock Fund).  Effective with the change in Recordkeeper and Trustee on November 3, 2006, all of the investments of the Companys Associates Investment Plan for Hourly Employees and the Associates Investment Plan for Salaried Employees were combined into the new Master Trust held by the Nationwide Trust Company.  General  The Plan is a defined contribution plan covering salaried or clerical employees of the Company who are at least age 21 or older, have completed at least three consecutive months of service and are regularly scheduled to work at least 20 hours per week.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).    F-18  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS     Contributions  Participants may contribute up to 25% of pre-tax annual compensation, limited to $15,000 and $14,000 per annum in 2006 and 2005, respectively.  In addition, pursuant to EGTRRA of 2001, all participants who have attained the age of 50 before the close of the plan year are eligible to make catch-up contributions up to $5,000 for the plan year ended December 31, 2006.  The Company matches 100% of the first 2% of eligible compensation that a participant contributed to the Plan plus 25% of the next 4% of eligible compensation contributed by the participant.  Participant Accounts  Each participants account is credited with the participants contributions and allocations of (a) the Companys contributions and (b) Plan earnings.  Forfeited balances of terminated participants nonvested accounts are used to reduce future Company contributions.  Vesting  Amounts attributed to employee contributions and the allocated earnings thereon are immediately vested.  Participants become 25%, 50%, 75% and 100% vested in Company contributions and the allocated earnings thereon after two, three, four and five years of service, respectively.  Upon death, permanent disability, or reaching age 65, participants or their beneficiaries become 100% vested in Company contributions.  Investment Options  Upon enrollment in the Plan, a participant may direct employee or Company contributions into any one of four pre-mixed asset allocation models or any of 10 individual investment options .  A participant may contribute a maximum of 25% of employee contributions into the PVH Stock Fund.   F-19  PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS     Participant Loans Receivable  Participants may borrow from the Plan, with certain restrictions, using their vested account balance as collateral. The minimum loan amount is $1,000 and the maximum loan amount is the lesser of (i) $50,000 reduced by the participants highest outstanding loan balance during the previous 12 months, or (ii) 50% of the vested value of the participants account. Interest is fixed for the term of the loan at the prime rate plus 1%. Loan repayments are made through payroll deductions, which may be specified for a term of 1 to 5 years or up to 15 years for the purchase of a primary residence. At December 31, 2006, participant loans outstanding totaled $1,773,210, with maturity dates through 2021 at interest rates ranging from 5% to 10.5%.   Forfeitures  Contributions made on behalf of non-vested or partially vested employees who have terminated are retained by the Plan and are used to reduce the Companys future matching contributions.  Payment of Benefits  Participants electing final distributions will receive payment in the form of a lump sum amount equal to the value of their vested account unless the participant notifies the Company of their intent to receive all or a portion of their balance attributable to the PVH Stock Fund paid in the form of shares of the Companys Common Stock.  Plan Termination  Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.  F-20    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS  2. Significant Accounting Policies  The accounting records of the Plan are maintained on the accrual basis.  Substantially all administrative expenses are paid by the Company.  In accordance with the Rules and Regulations of the Department of Labor, investments are included in the accompanying financial statements at market value as determined by quoted market price or at fair value as determined by the trustee. Purchase and sales of securities are reflected on a trade date basis.  All assets of the Plan are held by the Trustee and are segregated from the assets of the Company.  The Master Trust holds the investments in The PVH Stock Fund.  The Plan shares in the Master Trust interest and investment income based upon its participants shares of the Master Trust net assets available for benefits.  The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. In December 2005, the Financial Accounting Standards Board (FSAB) issued FASB Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (FSP).  This FSP requires investments in benefit-responsive investment contracts be presented at fair value.  However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.  The Plan invests in investment contracts though a common/collective trust.  As required by the FSP, the Statement of Net Assets Available for Benefits presents the fair value of the investments in the common/collective trust as well as the adjustment of the investment in the common/collective trust from fair value to contract value relating to the investment contracts.  The Statement of Changes in Net Assets Available for Benefits is prepared on a contact value basis.  The result of the implementation of the FSP was an adjustment from fair value to contract value in the amount of $220,145 and $162,034 as of December 31, 2006 and 2005, respectively.   F-21    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS    3. Transactions with Parties-in-Interest  During the years ended December 31, 2006 and 2005, the Master Trust purchased 53,146 and 47,988 shares, respectively, of the Companys common stock and received $138,106 and $153,906, respectively, from the Company as payment of dividends on its common stock. The AIP Master Trust also sold 152,495 and 160,053 shares of the Companys common stockduring the years ended December 31, 2006 and 2005, respectively.  4 Assets of the Plan  Investments that represent 5% or more of the fair value of the Plans net assets at the end of the plan year are as follows:   20062005Investment in Phillips-Van HeusenCorporation Associates InvestmentPlans Master Trust143,707,155$29,777,423Dodge & Cox Balanced*18,753,093Dreyfus Appreciation#16,995,799Oakmark International#7,723,406Wells Fargo Stable Return Fund (S)*11,890,792Wells Fargo Advantage Small CapValue Fund (Z)*12,188,812Wells Fargo Advantage Total ReturnBond (Adm)#5,900,260Wells Fargo S&P 500 Index Fund (G)#8,624,725Shares of registered companies representingless than 5%3,356,721* Investment became part of the Master Trust at the end of the plan year.#  Investment not offered at the end of the plan year.   F-22    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS    During 2006 and 2005, the Plans investments (including investments purchased, sold, as well as held during the year) appreciated in fair value as determined by quoted market prices as follows:   Net Realized and UnrealizedAppreciation in Fair Value of Investments2006**2005Common stockPVH Stock Fund$         -$5,293,289Shares of registered investmentcompanies6,287,0702,244,035$6,287,070$7,537,324   ** Appreciation for the period January 1, 2006 through November 2, 2006 of investments not in the Master Trust.  See below for Master Trust information.  F-23    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS     5. Interest in the Master Trust  Effective November 3, 2006, the plans investments, with the exception of participant loans, are held in a Master Trust with the assets of the Associates Plan for Hourly Associates.  The assets of the Master Trust are held by Nationwide Trust Company.  The plan participates in the Master Trust for the investment of the pooled assets of various funds.  Each participating plan has an undivided interest in the Master Trust.  Income and assets of the Master Trust are allocated to the Plan based on participant balances.The assets of the Master Trust at December 31, 2006 consist of the following:  2006Cash$          27,724Receivable from investments sold86,852Payable for investments purchased(86,852)Other Payable(9,619)Investments, at market value:Common Collective Trust22,338,688Mutual Funds86,595,356Common Stock42,951,591Money Market Funds1,195,213Total Master Trust Investments$  153,098,953Plans beneficial interest$  143,707,155Plans percentage interest94%  F-24    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS    Net investment income for the Master Trust through December 31, 2006 is as follows:  2006Net appreciation (depreciation) in fair value ofinvestments determined by quoted market prices:Common Stock$    16,261,622Mutual Funds and Common Collective Trust(883,605)15,378,017Interest and dividend income3,941,060Total master trust investment income$    19,319,077  6. Income Tax Status  The Plan has received a determination letter from the Internal Revenue Service dated September 2, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation.  Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification.  The plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax-exempt.      F-25    PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  NOTES TO FINANCIAL STATEMENTS    7. Reconciliation of Financial Statements to Form 5500The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at December 31, 2006:  Net assets available for benefits per the financialstatements$146,134,319Less adjustment to contract value220,145Net assets available for benefits per the Form 5500$145,914,174                          F-26                        SUPPLEMENTAL SCHEDULE      EIN: 13-1166910 Plan No: 007 PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR SALARIED ASSOCIATES  SCHEDULE H, LINE 4i--SCHEDULE OF INVESTMENTS HELD AT YEAR END  For the Year Ended December 31, 2006  Identity of HolderDescription of InvestmentCurrent ValueNationwide Trust CompanyCash$        24,997Nationwide Trust CompanyFederated Capital Reserves3.770 shares4Nationwide Trust CompanyCash Management Trust of America1,109,784.090 shares1,109,784Nationwide Trust CompanySEI Stable Asset Fund;1,546,011.800 shares1,506,365Nationwide Trust CompanyState Street S&P 500 Index:167,394.624 shares6,313,456Nationwide Trust CompanyWells Fargo Stable Return;318,546.585 shares12,553,720Nationwide Trust CompanyAmerican Beacon Large Cap Value;709,773.633 shares16,168,643Nationwide Trust CompanyBond Fund of America;758,368.144 shares10,101,464Nationwide Trust CompanyDodge & Cox Balanced Fund;165,650.583 shares14,424,853Nationwide Trust CompanyGrowth Fund of America;417,983.897 shares13,651,354Nationwide Trust CompanyHartford HLS Small Cap Growth;118,493.468 shares2,457,554Nationwide Trust CompanyLazard Funds Emerging Markets;0.056 shares1Nationwide Trust CompanyPhoenix Real Estate Securities;0.030 shares1Nationwide Trust CompanyThornburg International Value;526,450.657 shares15,272,333Nationwide Trust CompanyWells Fargo Advantage Small Cap;329,281.243 shares10,250,525Nationwide Trust CompanyPhillip-Van Heusen Corp. Common Stock;794,931.627 shares39,881,720Due to broker(9,619)Total investments held byNationwide Trust Co., FSB$ 143,707,155  F-28      EXHIBIT INDEX   Exhibit No.23.1Consent of Independent Auditors (Associates Investment Plan for Hourly Associates)23.2Consent of Independent Auditors (Associates Investment Plan for Salaried Associates)