Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2020 | Mar. 19, 2020 | Aug. 04, 2019 | |
Document and Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 2, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-07572 | ||
Entity Registrant Name | PVH CORP. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1166910 | ||
Entity Address, Address Line One | 200 Madison Avenue, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10016 | ||
City Area Code | 212 | ||
Local Phone Number | 381-3500 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | PVH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,921,209,861 | ||
Entity Common Stock, Shares Outstanding | 70,883,444 | ||
Entity Central Index Key | 0000078239 | ||
Current Fiscal Year End Date | --02-02 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||
Total revenue | [1],[2] | $ 9,909 | $ 9,656.8 | $ 8,914.8 |
Cost of goods sold (exclusive of depreciation and amortization) | 4,520.6 | 4,348.5 | 4,020.4 | |
Gross profit | 5,388.4 | 5,308.3 | 4,894.4 | |
Selling, general and administrative expenses | 4,715.2 | 4,432.8 | 4,245.2 | |
Non-service related pension and postretirement cost | 90 | 5.1 | 3 | |
Debt modification and extinguishment costs | 5.2 | 0 | 23.9 | |
Other noncash loss, net | 28.9 | 0 | 0 | |
Equity in net income of unconsolidated affiliates | 9.6 | 21.3 | 10.1 | |
Income before interest and taxes | [3] | 558.7 | 891.7 | 632.4 |
Interest expense | 120 | 120.8 | 128.5 | |
Interest income | 5.3 | 4.7 | 6.3 | |
Income before taxes | 444 | 775.6 | 510.2 | |
Income tax expense (benefit) | 28.9 | 31 | (25.9) | |
Net income | 415.1 | 744.6 | 536.1 | |
Less: Net loss attributable to redeemable non-controlling interest | (2.2) | (1.8) | (1.7) | |
Net income attributable to PVH Corp. | $ 417.3 | $ 746.4 | $ 537.8 | |
Basic net income per common share attributable to PVH Corp. | $ 5.63 | $ 9.75 | $ 6.93 | |
Diluted net income per common share attributable to PVH Corp. | $ 5.60 | $ 9.65 | $ 6.84 | |
Net sales | ||||
Total revenue | $ 9,400 | $ 9,154.2 | $ 8,439.4 | |
Royalty revenue | ||||
Total revenue | 379.9 | 375.9 | 366.3 | |
Advertising and other revenue | ||||
Total revenue | $ 129.1 | $ 126.7 | $ 109.1 | |
[1] | Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. | |||
[2] | No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . | |||
[3] | Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Net income | $ 415.1 | $ 744.6 | $ 536.1 |
Foreign currency translation adjustments | (157.8) | (361.3) | 561.3 |
Net unrealized and realized (loss) gain related to effective cash flow hedges, net of tax | (4.1) | 101.8 | (99.1) |
Net gain (loss) on net investment hedges, net of tax | 29.7 | 73.1 | (70.8) |
Total other comprehensive (loss) income | (132.2) | (186.4) | 391.4 |
Comprehensive income | 282.9 | 558.2 | 927.5 |
Less: Comprehensive loss attributable to redeemable non-controlling interest | (2.2) | (1.8) | (1.7) |
Comprehensive income attributable to PVH Corp. | $ 285.1 | $ 560 | $ 929.2 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Net unrealized and realized (loss) gain related to effective cash flow hedges, tax (benefit) expense | $ (1) | $ 3.2 | $ 0.1 |
Net gain (loss) on net investment hedges, tax expense (benefit) | $ 9.6 | $ 22.5 | $ (28.7) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 503.4 | $ 452 | ||
Trade receivables, net of allowances for doubtful accounts of $21.1 and $21.6 | 741.4 | 777.8 | ||
Other receivables | 23.7 | 26 | ||
Inventories, net | 1,615.7 | 1,732.4 | ||
Prepaid expenses | 159.9 | 168.7 | ||
Other | 112.9 | 81.7 | ||
Assets held for sale | 237.2 | 0 | ||
Total Current Assets | 3,394.2 | 3,238.6 | ||
Property, Plant and Equipment, net | [1] | 1,026.8 | 984.5 | |
Operating Lease, Right-of-Use Asset | 1,675.8 | 0 | ||
Goodwill | 3,677.6 | 3,670.5 | ||
Tradenames | 2,830.2 | 2,863.7 | ||
Other Intangibles, net | 650.5 | 705.5 | ||
Other Assets, including deferred taxes of $40.3 and $40.5 | 375.9 | 400.9 | ||
Total Assets | [4] | 13,631 | [2],[3] | 11,863.7 |
Current Liabilities: | ||||
Accounts payable | 882.8 | 924.2 | ||
Accrued expenses | 929.6 | 891.6 | ||
Deferred revenue | 64.7 | 65.3 | ||
Current portion of operating lease liabilities | 363.5 | 0 | ||
Short-term borrowings | 49.6 | 12.8 | ||
Current portion of long-term debt | 13.8 | 0 | ||
Liabilities related to assets held for sale | 57.1 | 0 | ||
Total Current Liabilities | 2,361.1 | 1,893.9 | ||
Long-Term Portion of Operating Lease Liabilities | 1,532 | 0 | ||
Long-Term Debt | 2,693.9 | 2,819.4 | ||
Other Liabilities, including deferred taxes of $558.1 and $565.2 | 1,234.5 | 1,322.4 | ||
Redeemable Non-Controlling Interest | (2) | 0.2 | ||
Stockholders' Equity: | ||||
Preferred stock, par value $100 per share; 150,000 total shares authorized | 0 | 0 | ||
Common stock, par value $1 per share; 240,000,000 shares authorized; 85,890,276 and 85,446,141 shares issued | 85.9 | 85.4 | ||
Additional paid in capital - common stock | 3,075.4 | 3,017.3 | ||
Retained earnings | 4,753 | 4,350.1 | ||
Accumulated other comprehensive loss | (640.1) | (507.9) | ||
Less: 13,597,113 and 10,042,510 shares of common stock held in treasury, at cost | (1,462.7) | (1,117.1) | ||
Total Stockholders' Equity | 5,811.5 | 5,827.8 | ||
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity | $ 13,631 | $ 11,863.7 | ||
[1] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. | |||
[2] | Identifiable assets in 2019 included the impact of the Australia acquisition. Please see Note 3, “Acquisitions,” for a further discussion. | |||
[3] | Identifiable assets include the impact related to the adoption of accounting guidance for leases in 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. Please see Note 17, “Leases,” for further discussion. | |||
[4] | Identifiable assets included the impact of changes in foreign currency exchange rates. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Current Assets: | ||
Allowance for doubtful accounts | $ 21.1 | $ 21.6 |
Other Assets: | ||
Other assets, deferred taxes | 40.3 | 40.5 |
Liabilities: | ||
Other liabilities, deferred taxes | $ 558.1 | $ 565.2 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares authorized (in shares) | 150,000 | 150,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 85,890,276 | 85,446,141 |
Shares of common stock held in treasury, at cost (in shares) | 13,597,113 | 10,042,510 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||||
OPERATING ACTIVITIES | ||||||
Net income | $ 415.1 | $ 744.6 | $ 536.1 | |||
Adjustments to reconcile to net cash provided by operating activities: | ||||||
Depreciation and amortization | 323.8 | 334.8 | 324.9 | |||
Equity in net income of unconsolidated affiliates | (9.6) | (21.3) | (10.1) | |||
Deferred taxes | (72.9) | [1] | (113.3) | [1] | (224.6) | |
Stock-based compensation expense | 56.1 | 56.2 | 44.9 | |||
Impairment of long-lived assets | 109.9 | [2] | 17.9 | 7.5 | ||
Actuarial loss on retirement and benefit plans | 97.8 | 15 | 2.5 | |||
Settlement loss on retirement plans | 0 | 0 | 9.4 | |||
Debt modification and extinguishment costs | 5.2 | 0 | 23.9 | |||
Other noncash loss, net | 28.9 | 0 | 0 | |||
Changes in operating assets and liabilities: | ||||||
Trade receivables, net | (17.1) | (151.4) | 3.3 | |||
Other receivables | 1 | 10.7 | (11.7) | |||
Inventories, net | 121.4 | (212.1) | (163.5) | |||
Accounts payable, accrued expenses and deferred revenue | 47.8 | 112.9 | 185.9 | |||
Prepaid expenses | (14.4) | 8.5 | (41) | |||
Employer pension contributions | (0.7) | (10) | (0.3) | |||
Contingent purchase price payments to Mr. Calvin Klein | 0 | (15.9) | (55.6) | |||
Other, net | (72) | 75.9 | 12.6 | |||
Net cash provided by operating activities | 1,020.3 | 852.5 | 644.2 | |||
INVESTING ACTIVITIES | ||||||
Acquisitions, net of cash acquired | (192.4) | (15.9) | (40.1) | |||
Purchase of property, plant and equipment | (345.2) | (379.5) | (358.1) | |||
Proceeds from sale of building | 59.4 | 0 | 3.4 | |||
Investments to unconsolidated affiliates | (27.7) | 0 | (14.2) | |||
Payment received on advance to unconsolidated affiliate | 0 | 0 | 6.3 | |||
Net cash used by investing activities | [3] | (505.9) | (395.4) | (402.7) | ||
FINANCING ACTIVITIES | ||||||
Proceeds from 2019 facilities, net of related fees | 1,639.8 | 0 | 0 | |||
Net (payments on) proceeds from short-term borrowings | (12.1) | (6.7) | 0.4 | |||
Repayments of Secured Debt | (1,649.3) | 0 | 0 | |||
Repayments of 2019 facilities | (70.6) | 0 | 0 | |||
Net proceeds from settlement of awards under stock plans | 2.5 | 20.4 | 30 | |||
Cash dividends | (11.3) | (11.6) | (11.9) | |||
Acquisition of treasury shares | (345.1) | (325.2) | (259.1) | |||
Payments of finance lease obligations | (5.5) | (5.4) | (5.1) | |||
Tommy Hilfiger India contingent purchase price payments | 0 | 0 | (0.8) | |||
Contributions from non-controlling interest | 0 | 0 | 1.7 | |||
Net cash used by financing activities | [2] | (451.6) | (478.5) | (509) | ||
Effect of exchange rate changes on cash and cash equivalents | (11.4) | (20.5) | 31.3 | |||
(Decrease) increase in cash and cash equivalents | 51.4 | (41.9) | (236.2) | |||
Cash and cash equivalents at beginning of year | 452 | 493.9 | 730.1 | |||
Cash and cash equivalents at end of year | 503.4 | 452 | 493.9 | |||
Senior Notes Due 2027 [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Proceeds from 3 1/8% senior notes, net of related fees | 0 | 0 | 701.6 | |||
Senior notes due 2022 [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Repayments of Secured Debt | 0 | 0 | (715.8) | |||
2016 and 2014 facilities [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Repayments of Secured Debt | 0 | $ (150) | $ (250) | |||
Perpetual License Rights [Member] | ||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||
Impairment of long-lived assets | 116.4 | |||||
Fair Value, Nonrecurring [Member] | Perpetual License Rights [Member] | ||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||
Impairment of long-lived assets | $ 116.4 | |||||
[1] | Includes the impact of the U.S. Tax Legislation in 2018 and 2017 and the impact of the 2019 Dutch Tax Plan in 2018. Please see Note 10 for further information. | |||||
[2] | Noncash impairment charge of $ 116.4 million related to the sale of the Speedo North America business is included in Other noncash loss, net. Please see Note 4 for further information. | |||||
[3] | Please see Note 20 for information on noncash investing and financing transactions. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital - Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Redeemable Non-controlling Interest [Member] | Total Stockholders' Equity | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ 2 | |||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2016-09 [Member] | $ 1.1 | $ (0.8) | $ 0.3 | |||||||
Balance at Jan. 29, 2017 | $ 0 | $ 83.9 | 2,866.2 | 3,098 | $ (710.8) | $ (532.8) | 4,804.5 | |||
Balance (in shares) at Jan. 29, 2017 | 83,923,184 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to PVH Corp. | $ 537.8 | 537.8 | 537.8 | |||||||
Foreign currency translation adjustments | 561.3 | 561.3 | 561.3 | |||||||
Net unrealized and realized (loss) gain related to effective cash flow hedges, net of tax | (99.1) | (99.1) | (99.1) | |||||||
Net gain (loss) on net investment hedges, net of tax | (70.8) | (70.8) | (70.8) | |||||||
Comprehensive income attributable to PVH Corp. | 929.2 | 929.2 | ||||||||
Reclassification related to the adoption of accounting guidance for certain tax effects in connection with the U.S. Tax Legislation | 2.1 | (2.1) | [1] | 0 | ||||||
Settlement of awards under stock plans (in shares) | 927,895 | |||||||||
Settlement of awards under stock plans | $ 1 | 29 | 30 | |||||||
Stock-based compensation expense | 44.9 | 44.9 | ||||||||
Cash dividends ($0.15 per share) | (11.9) | (11.9) | ||||||||
Acquisition of treasury shares during period | (260.6) | (260.6) | ||||||||
Contributions from the minority shareholder | 1.7 | 1.7 | ||||||||
Net loss attributable to redeemable non-controlling interest | (1.7) | (1.7) | ||||||||
Balance at Feb. 04, 2018 | 0 | $ 84.9 | 2,941.2 | 3,625.2 | (321.5) | (793.4) | 5,536.4 | |||
Balance (in shares) at Feb. 04, 2018 | 84,851,079 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | 2 | |||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2014-09 [Member] | (1.9) | (1.9) | ||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2016-16 [Member] | (8) | (8) | ||||||||
Net income attributable to PVH Corp. | 746.4 | 746.4 | 746.4 | |||||||
Foreign currency translation adjustments | (361.3) | (361.3) | (361.3) | |||||||
Net unrealized and realized (loss) gain related to effective cash flow hedges, net of tax | 101.8 | 101.8 | 101.8 | |||||||
Net gain (loss) on net investment hedges, net of tax | 73.1 | 73.1 | 73.1 | |||||||
Comprehensive income attributable to PVH Corp. | 560 | 560 | ||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance for revenue recognition | Accounting Standards Update 2014-09 [Member] | ||||||||||
Settlement of awards under stock plans (in shares) | 595,062 | |||||||||
Settlement of awards under stock plans | $ 0.5 | 19.9 | 20.4 | |||||||
Stock-based compensation expense | 56.2 | 56.2 | ||||||||
Cash dividends ($0.15 per share) | (11.6) | (11.6) | ||||||||
Acquisition of treasury shares during period | (323.7) | (323.7) | ||||||||
Contributions from the minority shareholder | 0 | |||||||||
Net loss attributable to redeemable non-controlling interest | (1.8) | (1.8) | ||||||||
Balance at Feb. 03, 2019 | $ 5,827.8 | 0 | $ 85.4 | 3,017.3 | 4,350.1 | (507.9) | (1,117.1) | 5,827.8 | ||
Balance (in shares) at Feb. 03, 2019 | 85,446,141 | 85,446,141 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ 0.2 | 0.2 | ||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2016-02 [Member] | (3.1) | (3.1) | ||||||||
Net income attributable to PVH Corp. | 417.3 | 417.3 | 417.3 | |||||||
Foreign currency translation adjustments | (157.8) | (157.8) | (157.8) | |||||||
Net unrealized and realized (loss) gain related to effective cash flow hedges, net of tax | (4.1) | (4.1) | (4.1) | |||||||
Net gain (loss) on net investment hedges, net of tax | 29.7 | 29.7 | 29.7 | |||||||
Comprehensive income attributable to PVH Corp. | 285.1 | 285.1 | ||||||||
Settlement of awards under stock plans (in shares) | 444,135 | |||||||||
Settlement of awards under stock plans | $ 0.5 | 2 | 2.5 | |||||||
Stock-based compensation expense | 56.1 | 56.1 | ||||||||
Cash dividends ($0.15 per share) | (11.3) | (11.3) | ||||||||
Acquisition of treasury shares during period | (345.6) | (345.6) | ||||||||
Contributions from the minority shareholder | 0 | |||||||||
Net loss attributable to redeemable non-controlling interest | (2.2) | (2.2) | ||||||||
Balance at Feb. 02, 2020 | $ 5,811.5 | $ 0 | $ 85.9 | $ 3,075.4 | $ 4,753 | $ (640.1) | $ (1,462.7) | $ 5,811.5 | ||
Balance (in shares) at Feb. 02, 2020 | 85,890,276 | 85,890,276 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ (2) | $ (2) | ||||||||
[1] | The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Net unrealized and realized (loss) gain related to effective cash flow hedges, tax (benefit) expense | $ (1) | $ 3.2 | $ 0.1 |
Net gain (loss) on net investment hedges, tax expense (benefit) | $ 9.6 | $ 22.5 | $ (28.7) |
Cash dividends paid, per share | $ 0.15 | $ 0.15 | $ 0.15 |
Acquisition of treasury shares during period, number of shares repurchased | 3,554,603 | 2,370,193 | 2,300,657 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 02, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business — PVH Corp. and its consolidated subsidiaries (collectively, the “Company”) constitute a global apparel company with a brand portfolio consisting of nationally and internationally recognized trademarks, including TOMMY HILFIGER, CALVIN KLEIN, Van Heusen, IZOD, ARROW, Warner’s, Olga , True&Co. and Geoffrey Beene , which are owned, as well as various other owned, licensed and, to a lesser extent, private label brands . The Company also licenses Speedo for North America and the Caribbean in perpetuity from Speedo International Limited. The Company entered into a definitive agreement on January 9, 2020 to sell its Speedo North America business to Pentland Group PLC (“Pentland”), the parent company of Speedo International Limited, (the “Speedo transaction”). The Company will deconsolidate the net assets of the Speedo North America business and no longer license the Speedo trademark upon closing of the sale, which is expected to occur in the first quarter of 2020, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which was received early in the first quarter of 2020. The Company designs and markets branded dress shirts, neckwear, sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, swim products, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of product categories and for use in numerous discrete jurisdictions. Principles of Consolidation — The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 6 , “ Investments in Unconsolidated Affiliates ,” for further discussion. The Company and Arvind Limited (“Arvind”) have a joint venture in Ethiopia, PVH Arvind Manufacturing Private Limited Company (“PVH Ethiopia”), in which the Company owns a 75% interest. PVH Ethiopia is consolidated and the minority shareholder’s proportionate share ( 25% ) of the equity in this joint venture is accounted for as a redeemable non-controlling interest. Please see Note 7 , “ Redeemable Non-Controlling Interest ,” for further discussion. Use of Estimates — The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from the estimates. Fiscal Year — The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to February 1. References to a year are to the Company’s fiscal year, unless the context requires otherwise. Results for 2019 , 2018 and 2017 represent the 52 weeks ended February 2, 2020 , 52 weeks ended February 3, 2019 and 53 weeks ended February 4, 2018 , respectively. Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents also includes amounts due from third party credit card processors for the settlement of customer debit and credit card transactions that are collectible in one week or less. The Company’s cash and cash equivalents at February 2, 2020 consisted principally of bank deposits and investments in money market funds. Accounts Receivable — Trade receivables, as presented in the Company’s Consolidated Balance Sheets, are net of returns and allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectibility based on historic trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. Costs associated with allowable customer markdowns and operational chargebacks, net of the expected recoveries, are part of the provision for allowances included in accounts receivable. These provisions result from seasonal negotiations, historical experience, and an evaluation of current market conditions. Goodwill and Other Intangible Assets — The Company assesses the recoverability of goodwill annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed two-step quantitative goodwill impairment test. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the fair value of a reporting unit is estimated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as used when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2019 annual goodwill impairment test, the Company elected to bypass the qualitative assessment for all reporting units and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2019 yielded estimated fair values in excess of the carrying amounts for all of the Company’s reporting units and therefore the second step of the quantitative goodwill impairment test was not required. The reporting unit with the least excess fair value had an estimated fair value that exceeded its carrying amount by 15% . No impairment of goodwill resulted from the Company’s annual impairment test in 2019. In the fourth quarter of 2019, the Speedo transaction was a triggering event that indicated that the amount of goodwill allocated to the Heritage Brands Wholesale reporting unit, the reporting unit that includes the Speedo North America business, could be impaired, prompting the need for the Company to perform an interim goodwill impairment test for this reporting unit. No goodwill impairment resulted from this interim test. For the 2018 annual goodwill impairment test, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2018 yielded estimated fair values in excess of the carrying amounts for the Company’s reporting units, all of which had fair values in excess of the carrying amounts by more than 50% , and therefore the second step of the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2018. Indefinite-lived intangible assets not subject to amortization are tested for impairment annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed quantitative impairment test for its indefinite-lived intangible assets. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. When performing the quantitative test, an impairment loss is recognized if the carrying amount of the asset exceeds the fair value of the asset, which is generally determined using the estimated discounted cash flows associated with the asset’s use. Intangible assets with finite lives are amortized over their estimated useful lives and are tested for impairment along with other long-lived assets when events and circumstances indicate that the assets might be impaired. For the 2019 annual impairment test of all indefinite-lived intangible assets, except for the Australia reacquired perpetual license rights, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Australia reacquired perpetual license rights, since only a few months had passed since the acquisition on May 31, 2019 and the business had performed better than initially expected, the Company determined qualitatively that it was not more likely than not that the fair value of these reacquired perpetual license rights were less than the carrying amount and concluded that the quantitative impairment test was not required. The fair values of all of the Company’s indefinite-lived intangible assets substantially exceed their carrying amounts, with the exception of the Company’s perpetual license right related to its Speedo North America business, which had a fair value that exceeded its carrying amount by 3% at the testing date. In the fourth quarter of 2019, the Speedo transaction was a triggering event that prompted the need for the Company to perform an interim impairment test of this perpetual license right. As a result of this interim test, the perpetual license right was determined to be impaired and an impairment charge of $ 116.4 million was recorded in other noncash loss, net in the Company’s Consolidated Income Statement. Please see Note 4 , “ Assets Held For Sale ,” for further discussion. For the 2018 annual impairment test of all indefinite-lived intangible assets, except for the Geoffrey Beene tradename, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Geoffrey Beene tradename, since only a few months had passed since the acquisition on April 20, 2018 and there had not been any significant changes in the business, the Company determined qualitatively that it was not more likely than not that the fair value of this tradename was less than the carrying amount and concluded that the quantitative impairment test was not required. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2018. Asset Impairments — The Company reviews for impairment of long-lived assets (excluding goodwill and other indefinite-lived intangible assets) when events and circumstances indicate that the assets might be impaired. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value. Please see Note 12 , “ Fair Value Measurements ,” for further discussion. Inventories — Inventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value, except for certain retail inventories in North America that are stated at the lower of cost or market using the retail inventory method. Cost for substantially all wholesale inventories in North America and certain wholesale and retail inventories in Asia is determined using the first-in, first-out method. Cost for all other inventories is determined using the weighted average cost method. The Company reviews current business trends, inventory aging and discontinued merchandise categories to determine adjustments that it estimates will be needed to liquidate existing clearance inventories and record inventories at either the lower of cost or net realizable value or the lower of cost or market using the retail inventory method, as applicable. Property, Plant and Equipment — Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is generally provided over the estimated useful lives of the related assets on a straight-line basis. The range of useful lives is principally as follows: Buildings and building improvements — 15 to 40 years; machinery, software and equipment — 2 to 10 years; furniture and fixtures — 2 to 10 years; and fixtures located in shop-in-shop/concession locations and their related costs — 3 to 4 years. Leasehold improvements are depreciated using the straight-line method over the lesser of the term of the related lease or the estimated useful life of the asset. In certain circumstances, contractual renewal options are considered when determining the term of the related lease. Major additions and improvements that extend the useful life of the asset are capitalized, and repairs and maintenance are charged to operations in the period incurred. Depreciation expense totaled $ 275.0 million, $ 263.9 million and $ 252.2 million in 2019 , 2018 and 2017 , respectively. Cloud Computing Arrangements — The Company incurs costs to implement cloud computing arrangements that are hosted by a third party vendor. Implementation costs incurred during the application development stage of a project are capitalized and amortized over the term of the hosting arrangement on a straight-line basis. The Company capitalized $ 16.6 million of costs incurred in 2019 to implement cloud computing arrangements, primarily related to digital and consumer data platforms. Amortization expense totaled $ 0.9 million in 2019. Cloud computing costs of $ 15.7 million were included in prepaid expenses and other assets in the Company’s Consolidated Balance Sheet as of February 2, 2020. The Company’s policy for accounting for implementation costs incurred in a cloud computing arrangement that is a service contract reflects changes made in 2019 following the adoption of the updated cloud computing guidance. Please see the section “ Recently Adopted Accounting Guidance ” below for further discussion. Leases — The Company leases retail locations, warehouses, distribution centers, showrooms, office space and a factory in Ethiopia, as well as certain equipment and other assets. The Company recognizes right-of-use assets and lease liabilities at the lease commencement date based on the present value of fixed lease payments over the expected lease term. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and long-term portion of operating lease liabilities in the Company’s Consolidated Balance Sheet. Finance leases are included in property, plant and equipment, net, accrued expenses and other liabilities in the Company’s Consolidated Balance Sheet. Please see Note 17 , “ Leases ,” and the section “ Recently Adopted Accounting Guidance ” below for further discussion. Revenue Recognition — Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Please see Note 2 , “ Revenue ,” for further discussion. Cost of Goods Sold and Selling, General and Administrative Expenses — Costs associated with the production and procurement of product are included in cost of goods sold, including inbound freight costs, purchasing and receiving costs, inspection costs and other product procurement related charges, as well as the amounts recognized on foreign currency forward exchange contracts as the underlying inventory hedged by such forward exchange contracts is sold. Generally, all other expenses, excluding non-service related pension and post retirement (income) costs, interest and income taxes, are included in selling, general and administrative (“SG&A”) expenses, including warehousing and distribution expenses, as the predominant expenses associated therewith are general and administrative in nature, including rent, utilities, payroll and depreciation and amortization. Warehousing and distribution expenses, which are subject to exchange rate fluctuations, totaled $ 351.4 million, $ 307.7 million and $ 272.6 million in 2019 , 2018 and 2017 , respectively. Shipping and Handling Fees — Shipping and handling fees that are billed to customers are included in net sales. Shipping and handling costs incurred by the Company are recorded in SG&A expenses. Advertising — Advertising costs are expensed as incurred and are included in SG&A expenses. Advertising expenses, which are subject to exchange rate fluctuations, totaled $ 509.7 million, $526.0 million and $501.3 million in 2019 , 2018 and 2017 , respectively. Prepaid advertising expenses recorded in prepaid expenses and other assets totaled $ 5.9 million and $7.3 million at February 2, 2020 and February 3, 2019 , respectively. Costs associated with cooperative advertising programs, under which the Company shares the cost of a customer’s advertising expenditures, are treated as a reduction of revenue. Sales Taxes — The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. Income Taxes — Deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. Significant judgment is required in assessing the timing and amount of deductible and taxable items, evaluating tax positions and determining the income tax provision. The Company recognizes income tax benefits only when it is more likely than not that the tax position will be fully sustained upon review by taxing authorities, including resolution of related appeals or litigation processes, if any. If the recognition threshold is met, the Company measures the tax benefit at the largest amount with a greater than 50 percent likelihood of being realized upon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize any portion of that benefit in the financial statements. When the outcome of these tax matters changes, the change in estimate impacts the provision for income taxes in the period that such a determination is made. The Company recognizes interest and penalties related to unrecognized tax benefits in the Company’s income tax provision. The United States Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Legislation”) was enacted on December 22, 2017. The U.S. Tax Legislation is comprehensive and significantly revised the United States tax code. Please see Note 10 , “ Income Taxes ,” for further discussion of the U.S. Tax Legislation. Financial Instruments — The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows primarily associated with certain international inventory purchases. The Company uses foreign currency forward exchange contracts to hedge against a portion of this exposure. The Company also has exposure to interest rate volatility related to its secured term loan facilities. The Company enters into interest rate swap agreements to hedge against a portion of this exposure. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the interest rate swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. Changes in fair value of the foreign currency forward exchange contracts primarily associated with certain international inventory purchases and the interest rate swap agreements that are designated as effective hedging instruments (collectively referred to as “cash flow hedges”) are recorded in equity as a component of accumulated other comprehensive loss (“AOCL”). The Company also has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company designates certain foreign currency borrowings issued in the United States as a net investment hedge of its investments in certain of its foreign subsidiaries that use a functional currency other than the United States dollar. Changes in fair value of the foreign currency borrowings designated as net investment hedges are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its net investment hedges at inception and as of the beginning of each quarter. The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”). Undesignated contracts include all of the foreign currency forward exchange contracts related to intercompany transactions and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying intercompany balances. Undesignated contracts also include foreign currency option contracts previously used by the Company to hedge against changes in foreign currency exchange rates related to the translation of the earnings of the Company’s subsidiaries that use a functional currency other than the United States dollar. The fair value of the foreign currency option contracts was estimated based on external valuation models, which used the original strike price, then current foreign currency exchange rates, the implied volatility in foreign currency exchange rates at the time and length of time to expiration as inputs. All foreign currency option contracts expired in 2017. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. Cash flows from the Company’s hedges are presented in the Consolidated Statements of Cash Flows in the same category as the items being hedged. Please see Note 11 , “ Derivative Financial Instruments ,” for further discussion. Foreign Currency Translation and Transactions — The consolidated financial statements of the Company are prepared in United States dollars. If the functional currency of a foreign subsidiary is not the United States dollar, assets and liabilities are translated to United States dollars at the closing exchange rate in effect at the applicable balance sheet date and revenue and expenses are translated to United States dollars at the average exchange rate for the applicable period. Gains and losses on the revaluation of intercompany loans made between foreign subsidiaries that are of a long-term investment nature are included in AOCL. Gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity, not including inventory purchases, are principally included in SG&A expenses and totaled a loss (gain) of $ 16.2 million, $ 17.3 million and $ (10.2) million in 2019 , 2018 and 2017 , respectively. Balance Sheet Classification of Early Settlements of Long-Term Obligations — The Company classifies obligations settled after the balance sheet date but prior to the issuance of the consolidated financial statements based on the contractual payment terms of the underlying agreements. Pension and Benefit Plans — Employee pension benefits earned during the year, as well as interest on the projected benefit obligations or accumulated benefit obligations, are accrued quarterly. The expected return on plan assets is recognized quarterly and determined at the beginning of the year by applying the expected long-term rate of return on assets to the actual fair value of plan assets adjusted for expected benefit payments, contributions and plan expenses. Actuarial gains and losses are recognized in the Company’s operating results in the year in which they occur. These gains and losses include the difference between the actual return on plan assets and the expected return that was recognized quarterly, as well as the change in the projected benefit obligation caused by actual experience and updated actuarial assumptions differing from those assumptions used to record service and interest cost throughout the year. Actuarial gains and losses are measured at least annually at the end of the Company’s fiscal year and, as such, are generally recorded during the fourth quarter of each year. The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 13 , “ Retirement and Benefit Plans ,” for further discussion of the Company’s pension and benefit plans. Stock-Based Compensation — The Company recognizes all share-based payments to employees and non-employee directors, net of actual forfeitures, as compensation expense in the consolidated financial statements based on their grant date fair values. Please see Note 14 , “Stock-Based Compensation,” for further discussion. Recently Adopted Accounting Guidance — The Financial Accounting Standards Board (“FASB”) issued in February 2016 new guidance on leases. The new guidance, among other changes, requires lessees to recognize a right-of-use asset and a lease liability in the balance sheet for most leases, but retains an expense recognition model similar to the previous guidance. The lease liability is measured at the present value of the fixed lease payments over the lease term and the right-of-use asset is measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee’s initial direct costs. The guidance also requires additional quantitative and qualitative disclosures. The Company adopted the guidance in the first quarter of 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. The effects of the adoption on the Company’s Consolidated Balance Sheet as of February 3, 2019 were as follows: (In millions) As Reported 2/3/19 Adjustments Adjusted 2/3/19 Assets Prepaid expenses $ 168.7 $ (21.3 ) $ 147.4 Operating Lease Right-of-Use Assets — 1,708.2 1,708.2 Other Assets 400.9 (10.3 ) 390.6 Liabilities Accrued expenses 891.6 (17.0 ) 874.6 Current portion of operating lease liabilities — 350.5 350.5 Long-Term Portion of Operating Lease Liabilities — 1,514.1 1,514.1 Other Liabilities 1,322.4 (167.9 ) 1,154.5 Stockholders’ Equity Retained earnings 4,350.1 (3.1 ) 4,347.0 The Company also elected the package of practical expedients permitted under the transition guidance, which allows the Company not to reassess whether any existing contracts are or contain a lease, the lease classification for any existing leases, and the capitalization of initial direct costs for any existing leases, as of the adoption date. The Company’s accounting for finance leases (formerly called capital leases) remains substantially unchanged. The adoption of the guidance did not have a material impact on the Company’s results of operations or cash flows. Please see Note 17 , “ Leases ,” for additional disclosures required by the guidance. The FASB issued in August 2017 an update to accounting guidance to simplify the application of hedge accounting in certain situations and allow companies to better align their hedge accounting with their risk management activities. The update eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same income statement line as the hedged item. The update also simplifies the requirements for hedge documentation and effectiveness assessments and amends the presentation and disclosure requirements. The Company adopted this update in the first quarter of 2019 using a modified retrospective approach, except for the presentation and disclosure guidance, which is being applied on a prospective basis, as required. The adoption of this update did not have any impact on the Company’s consolidated financial statements. The FASB issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. The update aligns the requirements for capitalizing implementation costs incurred under such arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. Under previous accounting guidance, the Company generally expensed the implementation costs incurred in connection with a cloud computing arrangement that is a service contract. The Company early adopted this update in the first quarter of 2019 using a prospective approach and, as a result, has capitalized $ 16.6 million of costs incurred in 2019 to implement cloud computing arrangements, primarily related to digital and consumer data platforms. Such costs were included in prepaid expenses and other assets in the Company’s Consolidated Balance Sheet. Accounting Guidance Issued But Not Adopted as of February 2, 2020 — The FASB issued in June 2016 an update to accounting guidance that introduces a new impairment model used to measure credit losses for certain financial assets measured at amortized cost, including trade and other receivables. This update requires entities to record an allowance for credit losses using a forward-looking expected loss impairment model that considers historical experience, current conditions, and reasonable and supportable fo |
REVENUE
REVENUE | 12 Months Ended |
Feb. 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company generates revenue primarily from sales of finished products under its owned and licensed trademarks through its wholesale and retail operations. The Company also generates royalty and advertising revenue from licensing the rights to its trademarks to third parties. Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Product Sales The Company generates revenue from the wholesale distribution of its products to traditional retailers (including for sale through their digital commerce sites), pure play digital commerce retailers, franchisees, licensees and distributors. Revenue is recognized upon transfer of control of goods to the customer, which generally occurs when title to goods is passed and risk of loss transfers to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon receipt of goods by the customer. Payment is typically due within 30 to 90 days. The amount of revenue recognized is net of returns, sales allowances and other discounts that the Company offers to its wholesale customers. The Company estimates returns based on an analysis of historical experience and specific customer arrangements and estimates sales allowances and other discounts based on seasonal negotiations, historical experience and an evaluation of current market conditions. The Company also generates revenue from the retail distribution of its products through its freestanding stores, shop-in-shop/concession locations and digital commerce sites. Revenue is recognized at the point of sale in the stores and shop-in-shop/concession locations and upon estimated time of delivery for sales through the Company’s digital commerce sites, at which point control of the products passes to the customer. The amount of revenue recognized is net of returns, which are estimated based on an analysis of historical experience. Costs associated with coupons are recorded as a reduction of revenue at the time of coupon redemption. The Company excludes from revenue taxes collected from customers and remitted to government authorities related to sales of the Company’s products. Shipping and handling costs that are billed to customers are included in net sales. Customer Loyalty Programs The Company uses loyalty programs that offer customers of its retail businesses specified amounts off of future purchases for a specified period of time after certain levels of spending are achieved. Customers that are enrolled in the programs earn loyalty points for each purchase made. Loyalty points earned under the customer loyalty programs provide the customer a material right to acquire additional products and give rise to the Company having a separate performance obligation. For each transaction where a customer earns loyalty points, the Company allocates revenue between the products purchased and the loyalty points earned based on the relative standalone selling prices. Revenue allocated to loyalty points is recorded as deferred revenue until the loyalty points are redeemed or expire. Gift Cards The Company sells gift cards to customers in its retail stores. The Company does not charge administrative fees on gift cards nor do they expire. Gift card purchases by a customer are prepayments for products to be provided by the Company in the future and are therefore considered to be performance obligations of the Company. Upon the purchase of a gift card by a customer, the Company records deferred revenue for the cash value of the gift card. Deferred revenue is relieved and revenue is recognized when the gift card is redeemed by the customer. The portion of gift cards that the Company does not expect to be redeemed (referred to as “breakage”) is recognized proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur, if the Company determines that it does not have a legal obligation to remit the value of such unredeemed gift cards to any jurisdiction. License Agreements The Company generates royalty and advertising revenue from licensing the rights to access its trademarks to third parties, including the Company’s joint ventures. The license agreements are generally exclusive to a territory or product category, have terms in excess of one year and, in most cases, include renewal options. In exchange for providing these rights, the license agreements require the licensees to pay the Company a royalty and, in certain agreements, an advertising fee. In both cases, the Company generally receives the greater of (i) a sales-based percentage fee and (ii) a contractual minimum fee for each annual performance period under the license agreement. In addition to the rights to access its trademarks, the Company provides ongoing support to its licensees over the term of the agreements. As such, the Company’s license agreements are licenses of symbolic intellectual property and, therefore, revenue is recognized over time. For license agreements where the sales-based percentage fee exceeds the contractual minimum fee, the Company recognizes revenues as the licensed products are sold as reported to the Company by its licensees. For license agreements where the sales-based percentage fee does not exceed the contractual minimum fee, the Company recognizes the contractual minimum fee as revenue ratably over the contractual period. Under the terms of the license agreements, payments are generally due quarterly from the licensees. The Company records deferred revenue when amounts are received or receivable from the licensee in advance of the recognition of revenue. As of February 2, 2020 , the contractual minimum fees on the portion of all license agreements not yet satisfied totaled $ 1.2 billion, of which the Company expects to recognize $ 291.5 million as revenue in 2020, $242.4 million in 2021 and $ 684.2 million thereafter. Deferred Revenue Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the years ended February 2, 2020 and February 3, 2019 , were as follows: (In millions) 2019 2018 Deferred revenue balance at beginning of period $ 65.3 $ 39.2 Impact of adopting the new revenue standard — 15.6 Net additions to deferred revenue during the period 60.3 61.3 Reductions in deferred revenue for revenue recognized during the period (1) (60.9 ) (50.8 ) Deferred revenue balance at end of period $ 64.7 $ 65.3 (1) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period, as adjusted in 2018 for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred during the period. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $ 10.3 million and $ 2.3 million as of February 2, 2020 and February 3, 2019 , respectively. Optional Exemptions The Company elected not to disclose the remaining performance obligations for contracts that have an original expected term of one year or less and expected sales-based percentage fees for the portion of all license agreements not yet satisfied. Please see Note 21 , “ Segment Data ,” for information on the disaggregation of revenue by segment and distribution channel. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Feb. 02, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS TH CSAP Acquisition The Company acquired on July 1, 2019 the Tommy Hilfiger retail business in Central and Southeast Asia from the Company’s previous licensee in that market (the “TH CSAP acquisition”). As a result of the TH CSAP acquisition, the Company now operates directly the Tommy Hilfiger retail business in the Central and Southeast Asia market. The acquisition date fair value of the consideration paid was $ 74.3 million. The estimated fair value of the assets acquired consisted of $ 63.9 million of goodwill and $ 10.4 million of other net assets. The goodwill of $ 63.9 million was assigned as of the acquisition date to the Company’s Tommy Hilfiger International segment, which is the Company’s reporting unit that is expected to benefit from the synergies of the combination. Goodwill is not expected to be deductible for tax purposes. The Company is still in the process of finalizing the valuation of the assets acquired; thus, the allocation of the acquisition consideration is subject to change. Australia Acquisition The Company acquired on May 31, 2019 the approximately 78% ownership interests in Gazal Corporation Limited (“Gazal”) that it did not already own (the “Australia acquisition”). Prior to the Australia acquisition, the Company and Gazal jointly owned and managed a joint venture, PVH Brands Australia Pty. Limited (“PVH Australia”), with each owning a 50% interest. PVH Australia licensed and operated businesses in Australia, New Zealand and other parts of Oceania under the TOMMY HILFIGER , CALVIN KLEIN and Van Heusen brands, along with other owned and licensed brands. PVH Australia came under the Company’s full control as a result of the acquisition. The Company now operates directly those businesses. Prior to May 31, 2019, the Company accounted for its approximately 22% interest in Gazal and its 50% interest in PVH Australia under the equity method of accounting. Following the completion of the Australia acquisition, the results of Gazal and PVH Australia have been consolidated in the Company’s consolidated financial statements. Gain on Previously Held Equity Investments The carrying values of the Company’s approximately 22% interest in Gazal and 50% interest in PVH Australia prior to the acquisition were $ 16.5 million and $ 41.9 million, respectively. In connection with the acquisition, these investments were remeasured to fair values of $ 40.1 million and $ 131.4 million, respectively, resulting in the recognition of an aggregate noncash gain of $ 113.1 million during the second quarter of 2019, which was included in other noncash loss, net in the Company’s Consolidated Income Statement. The fair value of the Company’s investment in Gazal was determined using the trading price of Gazal’s common stock, which was listed on the Australian Securities Exchange, on the date of the acquisition. The Company classified this as a Level 1 fair value measurement due to the use of an unadjusted quoted price in an active market. The fair value of Gazal included the fair value of Gazal’s 50% interest in PVH Australia. As such, the Company derived the fair value of its investment in PVH Australia from the fair value of Gazal by adjusting for (i) Gazal’s non-operating assets and net debt position and (ii) the estimated future operating cash flows of Gazal’s standalone operations, which were discounted at a rate of 12.5% to account for the relative risks of the estimated future cash flows. The Company classified this as a Level 3 fair value measurement due to the use of significant unobservable inputs. Mandatorily Redeemable Non-Controlling Interest Pursuant to the terms of the acquisition agreement, key members of Gazal and PVH Australia management exchanged a portion of their interests in Gazal for approximately 6% of the outstanding shares in the previously wholly owned subsidiary of the Company that acquired 100% of the ownership interests in the Australia business. The Company is obligated to purchase this 6% interest within two years of the acquisition closing in two tranches as follows: tranche 1 – 50% of the shares one year after the closing , but the holders had the option to defer half of this tranche to tranche 2; and tranche 2 – all remaining shares two years after the closing . With respect to tranche 1, the holders elected not to defer their shares to tranche 2 and as a result the Company is obligated to purchase all of the tranche 1 shares in the second quarter of 2020. The purchase price for the tranche 1 and tranche 2 shares is based on a multiple of the subsidiary’s adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) less net debt as of the end of the measurement year, and the multiple varies depending on the level of EBITDA compared to a target. The Company recognized a liability of $ 26.2 million for the fair value of the 6% interest on the date of the acquisition, which is being accounted for as a mandatorily redeemable non-controlling interest. The fair value of the liability was determined using a Monte Carlo simulation model, which utilizes inputs, including the volatility of financial results, in order to model the probability of different outcomes. The Company classified this as a Level 3 fair value measurement due to the use of significant unobservable inputs. In subsequent periods, the liability for the mandatorily redeemable non-controlling interest is adjusted each reporting period to its redemption value based on conditions that exist as of each subsequent balance sheet date. The Company reflects any adjustment in the redemption value in interest expense in the Company’s Consolidated Income Statement. The Company recorded a loss of $ 8.6 million in interest expense during 2019 in connection with the remeasurement of the mandatorily redeemable non-controlling interest to its redemption value, which for tranche 1 reflects the amount expected to be paid under the conditions specified in the terms of the acquisition agreement and for tranche 2 reflects the amount that would be paid under the conditions specified in the terms of the acquisition agreement if settlement had occurred as of February 2, 2020. The liability for the mandatorily redeemable non-controlling interest was $ 33.8 million as of February 2, 2020 based on exchange rates in effect on that date, of which $ 16.9 million was included in accrued expenses and $ 16.9 million was included in other liabilities in the Company’s Consolidated Balance Sheet. Fair Value of the Acquisition The acquisition date fair value of the business acquired was $ 324.6 million, consisting of: (In millions) Cash consideration $ 124.7 Fair value of the Company’s investment in PVH Australia 131.4 Fair value of the Company’s investment in Gazal 40.1 Fair value of mandatorily redeemable non-controlling interest 26.2 Elimination of pre-acquisition receivable owed to the Company 2.2 Total acquisition date fair value of the business acquired $ 324.6 Allocation of the Acquisition Date Fair Value The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: (In millions) Cash and cash equivalents $ 6.6 Trade receivables 15.1 Inventories 89.9 Prepaid expenses 1.3 Other current assets 3.5 Assets held for sale 58.8 Property, plant and equipment 18.4 Goodwill 65.9 Intangible assets 222.2 Operating lease right-of-use assets 56.4 Total assets acquired 538.1 Accounts payable 14.4 Accrued expenses 22.5 Short-term borrowings 50.5 Current portion of operating lease liabilities 10.9 Long-term portion of operating lease liabilities 43.9 Deferred tax liability 69.6 Other liabilities 1.7 Total liabilities assumed 213.5 Total acquisition date fair value of the business acquired $ 324.6 Prior to the closing of the Australia acquisition, Gazal had entered into an agreement to sell an office building and warehouse to a third party and, as such, the building was classified as held for sale on the acquisition date. The building was subsequently sold to a third party and leased back to the Company in June 2019. Please see Note 17, “ Leases ,” for further discussion of this sale-leaseback transaction. The goodwill of $ 65.9 million was assigned as of the acquisition date to the Company’s Tommy Hilfiger International and Calvin Klein International segments in the amounts of $ 56.8 million and $ 9.1 million, respectively, which include the Company’s reporting units that are expected to benefit from the synergies of the combination. Goodwill will not be deductible for tax purposes. The other intangible assets of $ 222.2 million consisted of reacquired perpetual license rights of $ 204.9 million, which are indefinite lived, order backlog of $ 0.3 million, which was amortized on a straight-line basis over 0.5 years, and customer relationships of $ 17.0 million, which are being amortized on a straight-line basis over 10.0 years. The Company is still in the process of finalizing the valuation of the assets and liabilities assumed; thus, the allocation of the acquisition date fair value is subject to change. Acquisition of the Geoffrey Beene Tradename The Company acquired on April 20, 2018 the Geoffrey Beene tradename from Geoffrey Beene, LLC (“Geoffrey Beene”). Prior to the acquisition, the Company licensed the rights to design, market and distribute Geoffrey Beene dress shirts and neckwear from Geoffrey Beene. The tradename was acquired for $ 17.0 million, consisting of $ 15.9 million paid in cash, $ 0.7 million of royalties prepaid to Geoffrey Beene by the Company under the license agreement, and $ 0.4 million of liabilities assumed by the Company. The transaction was accounted for as an asset acquisition. Acquisition of the Wholesale and Concessions Businesses in Belgium and Luxembourg The Company acquired on September 1, 2017 the Tommy Hilfiger and Calvin Klein wholesale and concessions businesses in Belgium and Luxembourg from a former agent (the “Belgian acquisition”). As a result of the Belgian acquisition, the Company now operates directly the Tommy Hilfiger and Calvin Klein businesses in this region. The acquisition date fair value of the consideration paid was $ 12.0 million. The estimated fair value of assets acquired and liabilities assumed consisted of $ 12.4 million of goodwill and $ 0.4 million of other net liabilities. The goodwill of $ 12.4 million was assigned as of the acquisition date to the Company’s Tommy Hilfiger International and Calvin Klein International segments in the amounts of $ 11.1 million and $ 1.3 million, respectively, which are the Company’s reporting units that are expected to benefit from the synergies of the combination. Goodwill is not deductible for tax purposes. The Company finalized the purchase price allocation in 2018. Acquisition of True & Co. The Company acquired on March 30, 2017 True & Co., a direct-to-consumer intimate apparel digital-centric retailer. This acquisition enabled the Company to participate further in the fast-growing online channel and provided a platform to increase innovation, data-driven decisions and speed in the way it serves its consumers across its channels of distribution. The acquisition date fair value of the consideration paid was $ 28.5 million. The estimated fair value of assets acquired and liabilities assumed consisted of $ 20.9 million of goodwill and $ 7.6 million of other net assets (including $ 7.3 million of deferred tax assets and $ 0.4 million of cash acquired). The goodwill of $ 20.9 million was assigned as of the acquisition date to the Company’s Calvin Klein North America, Calvin Klein International and Heritage Brands Wholesale segments in the amounts of $ 5.4 million, $ 4.8 million and $ 10.7 million, respectively, which include the Company’s reporting units that are expected to benefit from the synergies of the combination. For those reporting units that had not been assigned any of the assets acquired or liabilities assumed in the acquisition, the amount of goodwill assigned was determined by calculating the estimated fair value of such reporting units before and after the acquisition. Goodwill is not deductible for tax purposes. The Company finalized the purchase price allocation in 2017. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Feb. 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, was as follows: (In millions) 2019 2018 Land $ 1.0 $ 1.0 Buildings and building improvements 53.2 54.8 Machinery, software and equipment 871.7 697.6 Furniture and fixtures 586.0 540.0 Shop-in-shops/concession locations 209.8 230.9 Leasehold improvements 849.0 790.3 Construction in progress 35.5 83.9 Property, plant and equipment, gross 2,606.2 2,398.5 Less: Accumulated depreciation (1,579.4 ) (1,414.0 ) Property, plant and equipment, net $ 1,026.8 $ 984.5 The increase in Machinery, software and equipment in 2019 primarily relates to software and other equipment that was placed into service in 2019 in connection with the Company’s upgrade of and enhancements to its systems and digital commerce platforms. Construction in progress at February 2, 2020 and February 3, 2019 represents costs incurred for machinery, software and equipment, furniture and fixtures, and leasehold improvements not yet placed in use. Construction in progress at February 2, 2020 and February 3, 2019 principally related to upgrades and enhancements to operating, supply chain and logistics systems. Interest costs capitalized in construction in progress were immaterial during 2019 , 2018 and 2017 . |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Feb. 02, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES Included in other assets in the Company’s Consolidated Balance Sheets was $ 176.3 million as of February 2, 2020 and $ 207.1 million as of February 3, 2019 related to the following investments in unconsolidated affiliates: PVH Legwear The Company and a wholly owned subsidiary of the Company’s former Heritage Brands socks and hosiery licensee formed a joint venture, PVH Legwear LLC (“PVH Legwear”) in 2019, in which the Company owns a 49% economic interest. PVH Legwear was formed in order to consolidate the Company’s socks and hosiery businesses for all Company brands in the United States and Canada. PVH Legwear licenses from subsidiaries of the Company the rights to distribute and sell in these countries TOMMY HILFIGER , CALVIN KLEIN , IZOD , Van Heusen and Warner’s socks and hosiery beginning in December 2019. Additionally, PVH Legwear sells socks and hosiery under other owned and licensed trademarks. This investment is being accounted for under the equity method of accounting. The Company made payments of $ 27.7 million to PVH Legwear during 2019 to contribute its share of the joint venture funding. Gazal and PVH Australia Prior to May 31, 2019, the Company held an approximately 22% ownership interest in Gazal and a 50% ownership interest in PVH Australia. These investments were accounted for under the equity method of accounting until the closing of the Australia acquisition on May 31, 2019, on which date the Company derecognized its equity investments in Gazal and PVH Australia and began to consolidate the operations of Gazal and PVH Australia in its financial statements. Please see Note 3, “Acquisitions,” for further discussion. The Company received dividends of $ 6.4 million, $ 7.6 million and $ 3.7 million from Gazal and PVH Australia during 2019 , 2018 , and 2017 respectively. CK India The Company acquired a 51% economic interest in a joint venture, Calvin Klein Arvind Fashion Private Limited (“CK India”) in 2013. The Company sold 1% of its interest for $ 0.4 million in 2017, decreasing its economic interest in CK India to 50% . Prior to the sale, the Company was not deemed to hold a controlling interest in CK India as the shareholders agreement provided the partners with equal rights. This investment is being accounted for under the equity method of accounting. CK India licenses from a subsidiary of the Company the rights to the CALVIN KLEIN trademarks in India for certain product categories. The Company made payments of $ 1.6 million to CK India during 2017 to contribute its share of the joint venture funding. TH India The Company owns a 50% economic interest in a joint venture, Tommy Hilfiger Arvind Fashion Private Limited (“TH India”). TH India licenses from a subsidiary of the Company the rights to the TOMMY HILFIGER trademarks in India for certain product categories. This investment is being accounted for under the equity method of accounting. Arvind, the Company’s joint venture partner in PVH Ethiopia and CK India, is also the Company’s joint venture partner in TH India. The Company made payments of $ 2.7 million to TH India during 2017 to contribute its share of the joint venture funding. TH Brazil The Company acquired a 40% economic interest in a joint venture, Tommy Hilfiger do Brasil S.A. (“TH Brazil”) in 2012. The Company acquired an approximately 1% additional interest for $ 0.3 million in 2017, increasing its economic interest in TH Brazil to approximately 41% . TH Brazil licenses from a subsidiary of the Company the rights to the TOMMY HILFIGER trademarks in Brazil for certain product categories. This investment is being accounted for under the equity method of accounting. The Company made payments of $ 2.5 million to TH Brazil during 2017 to contribute its share of the joint venture funding. The Company issued a note receivable to TH Brazil in 2016 for $ 12.5 million, of which $ 6.2 million was repaid in 2016 and the remaining balance, including accrued interest, was repaid in 2017. PVH Mexico The Company and Grupo Axo, S.A.P.I. de C.V. formed a joint venture (“PVH Mexico”) in 2016 in which the Company owns a 49% economic interest. PVH Mexico licenses from certain subsidiaries of the Company the rights to distribute and sell certain TOMMY HILFIGER , CALVIN KLEIN , Warner’s , Olga and Speedo brand products in Mexico. This investment is being accounted for under the equity method of accounting. The Company received dividends of $ 7.2 million from PVH Mexico during 2019. Karl Lagerfeld The Company owns an economic interest of approximately 8% in Karl Lagerfeld Holding B.V. (“Karl Lagerfeld”). The Company is deemed to have significant influence with respect to this investment, which is being accounted for under the equity method of accounting. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 12 Months Ended |
Feb. 02, 2020 | |
Redeemable Non-Controlling Interest Disclosure [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | REDEEMABLE NON-CONTROLLING INTEREST The Company and Arvind formed PVH Ethiopia, in which the Company owns a 75% interest, during 2016. The Company consolidates PVH Ethiopia in its consolidated financial statements. PVH Ethiopia was formed to operate a manufacturing facility that produces finished products for the Company for distribution primarily in the United States. The manufacturing facility began operations in 2017. The shareholders agreement governing PVH Ethiopia (the “Shareholders Agreement”) contains a put option under which Arvind can require the Company to purchase all of its shares in the joint venture during various future periods as specified in the Shareholders Agreement. The first such period immediately precedes the ninth anniversary of PVH Ethiopia’s date of incorporation. The Shareholders Agreement also contains call options under which the Company can require Arvind to sell to the Company (i) all or a portion of its shares during various future periods as specified in the Shareholders Agreement; (ii) all of its shares in the event of a change of control of Arvind; or (iii) all of its shares in the event that Arvind ceases to hold at least 10% of the outstanding shares. The Company’s first call option referred to in clause (i) immediately follows the fifth anniversary of the date of incorporation of PVH Ethiopia. The put and call prices are the fair market value of the shares on the redemption date based upon a multiple of PVH Ethiopia’s EBITDA for the prior 12 months, less PVH Ethiopia’s net debt. The fair value of the redeemable non-controlling interest (“RNCI”) as of the date of formation of PVH Ethiopia was $ 0.1 million. The carrying amount of the RNCI is adjusted to equal the redemption amount at the end of each reporting period, provided that this amount at the end of each reporting period cannot be lower than the initial fair value adjusted for the minority shareholder’s share of net income or loss. Any adjustment to the redemption amount of the RNCI is determined after attribution of net income or loss of the RNCI and will be recognized immediately in retained earnings of the Company, since it is probable that the RNCI will become redeemable in the future based on the passage of time. The carrying amount of the RNCI as of February 2, 2020 was $ (2.0) million, which is greater than the redemption amount. The carrying amount decreased from $ 0.2 million as of February 3, 2019 as a result of a net loss attributable to the RNCI for 2019 of $ 2.2 million. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Feb. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by segment (please see Note 21 , “ Segment Data ,” for further discussion of the Company’s reportable segments), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of February 4, 2018 Goodwill, gross $ 780.2 $ 942.0 $ 204.4 $ 1,661.6 $ 246.5 $ 11.9 $ 3,846.6 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.2 942.0 204.4 1,661.6 246.5 — 3,834.7 Contingent purchase price payments to Mr. Calvin Klein 1.0 0.7 — — — — 1.7 Currency translation (0.9 ) (33.2 ) — (131.8 ) — — (165.9 ) Balance as of February 3, 2019 Goodwill, gross 780.3 909.5 204.4 1,529.8 246.5 11.9 3,682.4 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.3 909.5 204.4 1,529.8 246.5 — 3,670.5 Australia acquisition — 9.1 — 56.8 — — 65.9 TH CSAP acquisition — — — 63.9 — — 63.9 Reclassification of goodwill to assets held for sale — — — — (48.1 ) — (48.1 ) Currency translation 0.1 (22.5 ) — (52.2 ) — — (74.6 ) Balance as of February 2, 2020 Goodwill, gross 780.4 896.1 204.4 1,598.3 198.4 11.9 3,689.5 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 780.4 $ 896.1 $ 204.4 $ 1,598.3 $ 198.4 $ — $ 3,677.6 The goodwill acquired in the Australia and TH CSAP acquisitions was assigned as of the respective acquisition dates to the Company’s reporting units that are expected to benefit from the synergies of the combinations. The Company reclassified $ 48.1 million of goodwill to assets held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020 in connection with the Speedo transaction. Please see Note 4 , “Assets Held For Sale,” for further discussion. The Company was required to make contingent purchase price payments to Mr. Calvin Klein in connection with the Company’s acquisition of all of the issued and outstanding stock of Calvin Klein, Inc. and certain affiliated companies. Such payments were based on 1.15 % of total worldwide net sales (as defined in the acquisition agreement, as amended), of products bearing any of the CALVIN KLEIN brands and were required to be made with respect to sales made through February 12, 2018. A significant portion of the sales on which the payments to Mr. Klein were made were wholesale sales by the Company and its licensees and other partners to retailers. All payments due to Mr. Klein under the agreement have been made. The Company’s other intangible assets consisted of the following: 2019 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization: Customer relationships (1)(2) $ 289.9 $ (189.2 ) $ 100.7 $ 307.4 $ (186.1 ) $ 121.3 Reacquired license rights 502.5 (161.9 ) 340.6 523.8 (154.4 ) 369.4 Total intangible assets subject to amortization 792.4 (351.1 ) 441.3 831.2 (340.5 ) 490.7 Indefinite-lived intangible assets: Tradenames 2,830.2 — 2,830.2 2,863.7 — 2,863.7 Perpetual license right (2) — — — 203.8 — 203.8 Reacquired perpetual license rights (1) 209.2 — 209.2 11.0 — 11.0 Total indefinite-lived intangible assets 3,039.4 — 3,039.4 3,078.5 — 3,078.5 Total other intangible assets $ 3,831.8 $ (351.1 ) $ 3,480.7 $ 3,909.7 $ (340.5 ) $ 3,569.2 The gross carrying amount and accumulated amortization of certain intangible assets include the impact of changes in foreign currency exchange rates. (1) The change from February 3, 2019 to February 2, 2020 included intangible assets recorded in connection with the Australia acquisition. The intangible assets as of the acquisition date included reacquired perpetual license rights of $ 204.9 million, which are indefinite-lived, and customer relationships of $ 17.0 million, which are being amortized on a straight-line basis over 10.0 years, both of which were subject to exchange rate fluctuations after the acquisition date. (2) The change from February 3, 2019 to February 2, 2020 included the intangible assets of the Company’s Speedo North America business, consisting of customer relationships of $ 7.9 million and a perpetual license right of $ 203.8 million. The Company recorded a $ 116.4 million noncash impairment charge related to the Speedo perpetual license right in the fourth quarter of 2019 in connection with the Speedo transaction. The remaining perpetual license right of $ 87.4 million and the customer relationships of $ 7.9 million were reclassified to assets held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020. Please see Note 4 , “Assets Held For Sale,” for further discussion. Amortization expense related to the Company’s intangible assets subject to amortization was $ 39.7 million and $62.8 million for 2019 and 2018 , respectively. The decrease is primarily related to the reacquired license rights recorded in connection with the acquisition of the 55% ownership interests in the Company’s former joint venture for TOMMY HILFIGER in China that it did not already own (the “TH China acquisition”), which became fully amortized in 2018. Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the next five years related to the Company’s intangible assets subject to amortization as of February 2, 2020 is expected to be as follows: (In millions) Fiscal Year Amount 2020 $ 36.8 2021 36.6 2022 34.3 2023 24.0 2024 23.6 |
DEBT
DEBT | 12 Months Ended |
Feb. 02, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings The Company has the ability to draw revolving borrowings under its senior unsecured credit facilities, as discussed in the section entitled “2019 Senior Unsecured Credit Facilities” below. The Company had no borrowings outstanding under these facilities as of February 2, 2020 . The maximum amount of revolving borrowings outstanding under these facilities during 2019 was $ 378.4 million. The Company had $ 7.8 million outstanding under its prior senior secured credit facilities as of February 3, 2019 as discussed in the section entitled “2016 Senior Secured Credit Facilities” below. The weighted average interest rate on the funds borrowed as of February 3, 2019 was 4.45 %. Additionally, the Company has the availability to borrow under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies. These facilities, which now include a facility in Australia as a result of the Australia acquisition, provided for borrowings of up to $ 132.0 million based on exchange rates in effect on February 2, 2020 and are utilized primarily to fund working capital needs. The Company had $ 49.6 million and $ 5.1 million outstanding under these facilities as of February 2, 2020 and February 3, 2019 , respectively. The $ 49.6 million of borrowings outstanding as of February 2, 2020 included borrowings under the facility in Australia. The weighted average interest rate on funds borrowed as of February 2, 2020 and February 3, 2019 was 2.56 % and 0.21 %, respectively. The maximum amount of borrowings outstanding under these facilities during 2019 was $ 99.5 million. Commercial Paper The Company established on November 5, 2019 an unsecured commercial paper note program in the United States primarily to fund working capital needs. The program enables the Company to issue, from time to time, unsecured commercial paper notes with maturities that vary but do not exceed 397 days from the date of issuance. The Company had no borrowings outstanding under the commercial paper note program as of February 2, 2020 . The maximum amount of borrowings outstanding under the program during 2019 was $ 370.0 million. The commercial paper program allows for borrowings of up to $ 675.0 million to the extent that the Company has borrowing capacity under its United States dollar-denominated revolving credit facility, as discussed in the section entitled “2019 Senior Unsecured Credit Facilities” below. Accordingly, the combined aggregate amount of (i) borrowings outstanding under the commercial paper note program and (ii) the revolving borrowings outstanding under the United States dollar-denominated revolving credit facility at any one time cannot exceed $ 675.0 million. The maximum aggregate amount of borrowings outstanding under the commercial paper program and the United States dollar-denominated revolving credit facility during 2019 was $ 567.0 million, which reflects a brief period of higher aggregate borrowings at the time that the Company launched the commercial paper program. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 2019 2018 Senior unsecured Term Loan A facilities due 2024 (1)(2) $ 1,569.5 $ — Senior secured Term Loan A facility due 2021 — 1,643.8 7 3/4% debentures due 2023 99.7 99.6 3 5/8% senior unsecured euro notes due 2024 (2) 382.9 396.5 3 1/8% senior unsecured euro notes due 2027 (2) 655.6 679.5 Total 2,707.7 2,819.4 Less: Current portion of long-term debt 13.8 — Long-term debt $ 2,693.9 $ 2,819.4 (1) The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was $ 1,029.6 million and € 493.8 million, respectively, as of February 2, 2020 . (2) The carrying amount of the Company’s euro-denominated Term Loan A facility and senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. Please see Note 12 , “ Fair Value Measurements ,” for the fair value of the Company’s long-term debt as of February 2, 2020 and February 3, 2019 . As of February 2, 2020 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount (1) 2020 13.8 2021 39.0 2022 102.9 2023 223.4 2024 1,682.9 (1) A portion of the Company’s mandatory long-term debt repayments are denominated in euro and subject to changes in the exchange rate of the United States dollar against the euro. Total debt repayments for the next five years exceed the total carrying amount of the Company’s Term Loan A facilities, 7 3/4% debentures due 2023 and 3 5/8% senior euro notes due 2024 as of February 2, 2020 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of February 2, 2020 , after taking into account the effect of the Company’s interest rate swap agreements discussed in the section entitled “2019 Senior Unsecured Credit Facilities,” which were in effect as of such date, approximately 55 % of the Company’s long-term debt had fixed interest rates, with the remainder at variable interest rates. 2016 Senior Secured Credit Facilities On May 19, 2016, the Company entered into an amendment to its senior secured credit facilities (as amended, the “2016 facilities”). The Company replaced the 2016 facilities with new senior unsecured credit facilities on April 29, 2019 as discussed in the section entitled “2019 Senior Unsecured Credit Facilities” below. The 2016 facilities, as of the date they were replaced, consisted of a $ 2,347.4 million United States dollar-denominated Term Loan A facility and senior secured revolving credit facilities consisting of (i) a $ 475.0 million United States dollar-denominated revolving credit facility, (ii) a $ 25.0 million United States dollar-denominated revolving credit facility available in United States dollars and Canadian dollars and (iii) a € 185.9 million euro-denominated revolving credit facility available in euro, British pound sterling, Japanese yen and Swiss francs. 2019 Senior Unsecured Credit Facilities The Company refinanced the 2016 facilities on April 29, 2019 (the “Closing Date”) by entering into senior unsecured credit facilities (the “2019 facilities”), the proceeds of which, along with cash on hand, were used to repay all of the outstanding borrowings under the 2016 facilities, as well as the related debt issuance costs. The 2019 facilities consist of a $ 1,093.2 million United States dollar-denominated Term Loan A facility (the “USD TLA facility”), a € 500.0 million euro-denominated Term Loan A facility (the “Euro TLA facility” and together with the USD TLA facility, the “TLA facilities”) and senior unsecured revolving credit facilities consisting of (i) a $ 675.0 million United States dollar-denominated revolving credit facility, (ii) a CAD $ 70.0 million Canadian dollar-denominated revolving credit facility available in United States dollars or Canadian dollars, (iii) a € 200.0 million euro-denominated revolving credit facility available in euro, British pound sterling, Japanese yen, Swiss francs, Australian dollars and other agreed foreign currencies and (iv) a $ 50.0 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars. The 2019 facilities are due on April 29, 2024. In connection with the refinancing of the senior credit facilities, the Company paid debt issuance costs of $ 10.4 million (of which $ 3.5 million was expensed as debt modification costs and $ 6.9 million is being amortized over the term of the debt agreement) and recorded debt extinguishment costs of $ 1.7 million to write off previously capitalized debt issuance costs. Each of the senior unsecured revolving facilities, except for the $ 50.0 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars, also include amounts available for letters of credit and have a portion available for the making of swingline loans. The issuance of such letters of credit and the making of any swingline loan reduces the amount available under the applicable revolving credit facility. So long as certain conditions are satisfied, the Company may add one or more senior unsecured term loan facilities or increase the commitments under the senior unsecured revolving credit facilities by an aggregate amount not to exceed $ 1,500.0 million. The lenders under the 2019 facilities are not required to provide commitments with respect to such additional facilities or increased commitments. The Company had loans outstanding of $ 1,569.5 million, net of debt issuance costs and based on applicable exchange rates, under the TLA facilities and $ 20.3 million of outstanding letters of credit under the senior unsecured revolving credit facilities as of February 2, 2020 . The Company had no borrowings outstanding under the senior unsecured revolving credit facilities as of February 2, 2020 . The terms of the TLA facilities require the Company to make quarterly repayments of amounts outstanding under the 2019 facilities, which commenced with the calendar quarter ended September 30, 2019. Such required repayment amounts equal 2.50% per annum of the principal amount outstanding on the Closing Date for the first eight calendar quarters following the Closing Date, 5.00% per annum of the principal amount outstanding on the Closing Date for the four calendar quarters thereafter and 7.50% per annum of the principal amount outstanding on the Closing Date for the remaining calendar quarters, in each case paid in equal installments and in each case subject to certain customary adjustments, with the balance due on the maturity date of the TLA facilities. The outstanding borrowings under the 2019 facilities are prepayable at any time without penalty (other than customary breakage costs). Any voluntary repayments made by the Company would reduce the future required repayment amounts. The Company made payments of $ 70.6 million on its term loans under the 2019 facilities and repaid the 2016 facilities in connection with the refinancing of the senior credit facilities during 2019. The Company made payments of $ 150.0 million and $ 250.0 million during 2018 and 2017, respectively, on its term loans under the 2016 facilities. The United States dollar-denominated borrowings under the 2019 facilities bear interest at a rate equal to an applicable margin plus, as determined at the Company's option, either (a) a base rate determined by reference to the greater of (i) the prime rate, (ii) the United States federal funds effective rate plus 1/2 of 1.00% and (iii) a one-month reserve adjusted Eurocurrency rate plus 1.00% or (b) an adjusted Eurocurrency rate, calculated in a manner set forth in the 2019 facilities. The Canadian dollar-denominated borrowings under the 2019 facilities bear interest at a rate equal to an applicable margin plus, as determined at the Company’s option, either (a) a Canadian prime rate determined by reference to the greater of (i) the rate of interest per annum that Royal Bank of Canada establishes as the reference rate of interest in order to determine interest rates for loans in Canadian dollars to its Canadian borrowers and (ii) the average of the rates per annum for Canadian dollar bankers' acceptances having a term of one month or (b) an adjusted Eurocurrency rate, calculated in a manner set forth in the 2019 facilities. Borrowings available in Hong Kong dollars under the 2019 facilities bear interest at a rate equal to an applicable margin plus an adjusted Eurocurrency rate, calculated in a manner set forth in the 2019 facilities. The borrowings under the 2019 facilities in currencies other than United States dollars, Canadian dollars or Hong Kong dollars bear interest at a rate equal to an applicable margin plus an adjusted Eurocurrency rate, calculated in a manner set forth in the 2019 facilities. The current applicable margin with respect to the TLA facilities and each revolving credit facility is 1.375% for adjusted Eurocurrency rate loans and 0.375% for base rate or Canadian prime rate loans. The applicable margin for borrowings under the TLA facilities and the revolving credit facilities is subject to adjustment (i) after the date of delivery of the compliance certificate and financial statements, with respect to each of the Company’s fiscal quarters, based upon the Company’s net leverage ratio or (ii) after the date of delivery of notice of a change in the Company’s public debt rating by Standard & Poor’s or Moody’s. The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for the outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during 2019, 2018 and 2017: (Dollars in millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of February 2, 2020 Fixed Rate Expiration Date August 2019 February 2020 $ 50.0 $ — 1.1975% February 2022 June 2019 February 2020 50.0 — 1.409% February 2022 June 2019 June 2019 50.0 50.0 1.719% July 2021 January 2019 February 2020 50.0 — 2.4187% February 2021 November 2018 February 2019 139.2 126.6 2.8645% February 2021 October 2018 February 2019 115.7 103.3 2.9975% February 2021 June 2018 August 2018 50.0 50.0 2.6825% February 2021 June 2017 February 2018 306.5 56.5 1.566% February 2020 July 2014 February 2016 682.6 — 1.924% February 2018 The notional amounts of the outstanding interest rate swaps that commenced in February 2018 and February 2019 are adjusted according to pre-set schedules during the terms of the swap agreements such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the USD TLA facility is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps. The 2019 facilities contain customary events of default, including but not limited to nonpayment; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; cross-default to material indebtedness; certain material judgments; certain events related to the Employee Retirement Income Security Act of 1974, as amended; and a change in control (as defined in the 2019 facilities). The 2019 facilities require the Company to comply with customary affirmative, negative and financial covenants, including minimum interest coverage and maximum net leverage. A breach of any of these operating or financial covenants would result in a default under the 2019 facilities. If an event of default occurs and is continuing, the lenders could elect to declare all amounts then outstanding, together with accrued interest, to be immediately due and payable, which would result in acceleration of the Company’s other debt. 4 1/2% Senior Notes Due 2022 The Company had outstanding $700.0 million principal amount of 4 1/2% senior notes due December 15, 2022. The Company redeemed these notes on January 5, 2018 in connection with the issuance of € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027, as discussed below. The Company paid a premium of $ 15.8 million to the holders of these notes in connection with the redemption and recorded debt extinguishment costs of $ 8.1 million to write-off previously capitalized debt issuance costs associated with these notes during 2017. 7 3/4% Debentures Due 2023 The Company has outstanding $100.0 million of debentures due November 15, 2023 that accrue interest at the rate of 7 3/4% . Pursuant to the indenture governing the debentures, the Company must maintain a certain level of stockholders’ equity in order to pay cash dividends and make other restricted payments, as defined in the indenture governing the debentures. The debentures are not redeemable at the Company’s option prior to maturity. The 7 3/4% debentures due 2023 include a “negative lien” covenant that generally requires the debentures to be secured on an equal and ratable basis with secured indebtedness of the Company, as well as limits the Company’s ability to engage in sale/leaseback transactions. 3 5/8% Euro Senior Notes Due 2024 The Company has outstanding € 350.0 million euro-denominated principal amount of 3 5/8% senior notes due July 15, 2024. Interest on the notes is payable in euros. The Company may redeem some or all of these notes at any time prior to April 15, 2024 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after April 15, 2024 at their principal amount plus any accrued and unpaid interest. The Company’s ability to create liens on the Company’s assets or engage in sale/leaseback transactions is restricted as set forth in the indenture governing the notes. 3 1/8% Euro Senior Notes Due 2027 The Company issued on December 21, 2017 € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027. Interest on the notes is payable in euros. The Company paid € 8.7 million (approximately $ 10.3 million based on exchange rates in effect on the payment date) of fees during 2017 in connection with the issuance of these notes, which are amortized over the term of the notes. The Company may redeem some or all of these notes at any time prior to September 15, 2027 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after September 15, 2027 at their principal amount plus any accrued and unpaid interest. The Company’s ability to create liens on the Company’s assets or engage in sale/leaseback transactions is restricted as set forth in the indenture governing the notes. As of February 2, 2020 , the Company was in compliance with all applicable financial and non-financial covenants under its financing arrangements. Interest paid was $ 108.3 million, $114.6 million and $120.2 million during 2019 , 2018 and 2017 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of (loss) income before income taxes were as follows: (In millions) 2019 2018 2017 Domestic $ (441.2 ) $ (5.3 ) $ (102.0 ) Foreign 885.2 780.9 612.2 Total $ 444.0 $ 775.6 $ 510.2 The domestic loss before benefit for income taxes in 2019, 2018 and 2017 is primarily attributable to the domestic portion of certain charges incurred in 2019, 2018 and 2017. Please see Note 21 , “Segment Data,” for further discussion of these costs. Taxes paid were $ 133.0 million, $138.4 million and $164.6 million in 2019 , 2018 and 2017 , respectively. The provision (benefit) for income taxes attributable to income consisted of the following: (In millions) 2019 2018 2017 Federal: Current $ (30.4 ) $ (30.5 ) $ 51.7 Deferred (52.6 ) (1) (53.2 ) (2) (198.3 ) (2) State and local: Current 4.3 4.6 3.5 Deferred (16.5 ) 9.6 (7.8 ) Foreign: Current 127.9 170.2 143.5 Deferred (3.8 ) (1) (69.7 ) (3) (18.5 ) Total $ 28.9 $ 31.0 $ (25.9 ) (1) Includes a $ 27.8 million benefit related to the write-off of deferred tax liabilities in connection with the pre-tax noncash impairment of the Speedo perpetual license right, primarily in the United States. Please see Note 4, “Assets Held For Sale,” for further discussion. (2) Includes a $24.7 million benefit in 2018 and a $52.8 million benefit in 2017 related to the U.S. Tax Legislation. (3) Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. The provision (benefit) for income taxes for the years 2019 , 2018 and 2017 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income as follows: 2019 2018 2017 Statutory federal income tax rate (1) 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal income tax benefit (2.4 )% 0.5 % (1.1 )% Effects of international jurisdictions, including foreign tax credits (15.7 )% (9.5 )% (20.3 )% Change in estimates for uncertain tax positions (11.8 )% (2) (3.7 )% (7.5 )% Change in valuation allowance 1.8 % (5.3 )% (3) 11.0 % (4) One-time transition tax due to U.S. Tax Legislation — % — % 34.0 % Remeasurement due to U.S. Tax Legislation — % 0.2 % (51.9 )% Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) 10.0 % 1.9 % — % Tax on Speedo transaction basis difference 2.3 % — % — % Excess tax benefits related to stock-based compensation (0.2 )% (0.6 )% (2.8 )% (5) Other, net 1.5 % (0.5 )% (0.2 )% Effective income tax rate 6.5 % 4.0 % (5.1 )% (1) The United States statutory federal income tax rate changed from 35.0% to 21.0% , effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7% . (2) Includes the settlement of a multi-year audit from an international jurisdiction. (3) Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. (5) Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer. The Company files income tax returns in more than 40 international jurisdictions each year. A substantial amount of the Company’s earnings are in international jurisdictions, particularly in the Netherlands and Hong Kong SAR, where income tax rates, coupled with special rates levied on income from certain of the Company’s jurisdictional activities, continue to be lower than the United States statutory income tax rate. The effects of international jurisdictions, including foreign tax credits, reflected in the above table for 2019 , 2018 and 2017 included those taxes at statutory income tax rates and at special rates levied on income from certain jurisdictional activities. The Company expects to benefit from these special rates until 2022. The U.S. Tax Legislation enacted on December 22, 2017 significantly revised the United States tax code by, among other things, (i) reducing the corporate income tax rate from 35.0% to 21.0% , effective January 1, 2018, (ii) imposing a one-time transition tax on earnings of foreign subsidiaries deemed to be repatriated, (iii) implementing a modified territorial tax system, (iv) introducing a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations (known as “GILTI”) and a beneficial tax rate to be applied against foreign derived intangible income (known as “FDII”) and (v) introducing a base erosion anti-abuse tax measure (known as “BEAT”) that taxes certain payments between United States corporations and their subsidiaries. The Company recorded a provisional net tax benefit of $52.8 million in the fourth quarter of 2017 in connection with the U.S. Tax Legislation, consisting of a $265.0 million benefit primarily from the remeasurement of the Company’s net deferred tax liabilities to the lower United States corporate income tax rate, partially offset by a $38.5 million valuation allowance on the Company’s foreign tax credits and a $173.7 million transition tax on undistributed post-1986 earnings and profits of foreign subsidiaries deemed to be repatriated. The Company finalized its accounting related to the impacts of the U.S. Tax Legislation on the one-time transition tax liability, deferred taxes, valuation allowances, state tax considerations, and any remaining outside basis differences in the Company’s foreign subsidiaries during 2018. The analysis resulted in the Company recording an additional net tax benefit of $24.7 million to adjust the provisional net tax benefit recorded in the fourth quarter of 2017 during the measurement period allowed by the Securities and Exchange Commission. The net tax benefit included the release of a $26.3 million valuation allowance on the Company’s foreign tax credits, partially offset by a $1.6 million expense related to the remeasurement of the Company’s net deferred tax liabilities. The GILTI provisions of the U.S. Tax Legislation impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations for tax years beginning after December 31, 2017. The guidance indicated that companies must make a policy election to either record deferred taxes for basis differences expected to reverse as a result of the GILTI provisions in future years or treat any taxes on GILTI inclusions as period costs when incurred. The Company completed its analysis of the tax effects of the GILTI provisions in 2018 and elected to account for these tax effects as period costs when incurred. The components of deferred income tax assets and liabilities were as follows: (In millions) 2019 2018 Gross deferred tax assets Tax loss and credit carryforwards $ 232.5 $ 230.1 Operating lease liabilities 407.6 — Employee compensation and benefits 110.9 83.1 Inventories 39.7 26.8 Accounts receivable 20.3 17.1 Accrued expenses 26.5 30.2 Other, net — 13.8 Subtotal 837.5 401.1 Valuation allowances (69.8 ) (62.6 ) Total gross deferred tax assets, net of valuation allowances $ 767.7 $ 338.5 Gross deferred tax liabilities Intangibles $ (860.6 ) $ (825.3 ) Operating lease right-of-use assets (357.2 ) — Property, plant and equipment (46.2 ) (33.6 ) Derivative financial instruments (12.8 ) (4.3 ) Other, net (8.7 ) — Total gross deferred tax liabilities $ (1,285.5 ) $ (863.2 ) Net deferred tax liability $ (517.8 ) $ (524.7 ) At the end of 2019, the Company had on a tax-effected basis approximately $ 238.9 million of net operating loss and tax credit carryforwards available to offset future taxable income in various jurisdictions. This included net operating loss carryforwards of approximately $ 2.8 million and $ 47.1 million for federal and various state and local jurisdictions, respectively, and $ 15.5 million for various foreign jurisdictions. The Company also had federal and state tax credit and other carryforwards of $ 173.5 million. The carryforwards expire principally between 2020 and 2039. Prior to the enactment of the U.S. Tax Legislation, the Company's undistributed foreign earnings were considered permanently reinvested and, as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the U.S. Tax Legislation, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the U.S. Tax Legislation were deemed to have been repatriated and, as a result, the Company recorded a one-time transition tax of $173.7 million in 2017. The Company's intent is to reinvest indefinitely substantially all of its foreign earnings outside of the United States. However, if the Company decides at a later date to repatriate these earnings to the United States, the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding tax and United States state income taxes. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation. Uncertain tax positions activity for each of the last three years was as follows: (In millions) 2019 2018 2017 Balance at beginning of year $ 248.3 $ 297.1 $ 245.6 Increases related to prior year tax positions 7.7 13.9 15.4 Decreases related to prior year tax positions (15.8 ) (24.9 ) (10.3 ) Increases related to current year tax positions 18.2 25.5 79.7 Lapses in statute of limitations (36.0 ) (54.7 ) (46.3 ) Effects of foreign currency translation (2.5 ) (8.6 ) 13.0 Balance at end of year $ 219.9 $ 248.3 $ 297.1 The entire amount of uncertain tax positions as of February 2, 2020 , if recognized, would reduce the future effective tax rate under current accounting guidance. Interest and penalties related to uncertain tax positions are recorded in the Company’s income tax provision. Interest and penalties recognized in the Company’s Consolidated Income Statements for 2019 , 2018 and 2017 totaled a benefit of $ 15.0 million, an expense of $12.1 million and an expense of $0.9 million, respectively. Interest and penalties accrued in the Company’s Consolidated Balance Sheets as of February 2, 2020 and February 3, 2019 totaled $ 25.2 million and $44.1 million, respectively. The Company recorded its liabilities for uncertain tax positions principally in accrued expenses and other liabilities in its Consolidated Balance Sheets. The Company files income tax returns in the United States and in various foreign, state and local jurisdictions. Most examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through 2006. It is reasonably possible that a reduction of uncertain tax positions in a range of $ 20.0 million to $ 40.0 million may occur within 12 months of February 2, 2020 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Feb. 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows associated with certain international inventory purchases. The Company uses foreign currency forward exchange contracts to hedge against a portion of this exposure. The Company also has exposure to interest rate volatility related to its term loans under the 2019 facilities. The Company has entered into interest rate swap agreements to hedge against a portion of this exposure. Please see Note 9 , “ Debt ,” for further discussion of the 2019 facilities and these agreements. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward exchange contracts associated with certain international inventory purchases and the interest rate swap agreements are designated as effective hedging instruments (collectively, “cash flow hedges”). The changes in the fair value of the cash flow hedges are recorded in equity as a component of AOCL. No amounts were excluded from effectiveness testing. Net Investment Hedges The Company has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company designated the carrying amounts of its € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due 2027 and € 350.0 million euro-denominated principal amount of 3 5/8% senior notes due 2024 (collectively, “foreign currency borrowings”), that it had issued in the United States, as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. Please see Note 9 , “ Debt ,” for further discussion of the Company’s foreign currency borrowings. The Company records the foreign currency borrowings at carrying value in its Consolidated Balance Sheets. The carrying value of the foreign currency borrowings is remeasured at the end of each reporting period to reflect changes in the foreign currency exchange spot rate. Since the foreign currency borrowings are designated as net investment hedges, such remeasurement is recorded in equity as a component of AOCL. The fair value and the carrying value of the foreign currency borrowings designated as net investment hedges were $ 1,178.6 million and $ 1,038.5 million, respectively, as of February 2, 2020 and $ 1,098.3 million and $ 1,076.0 million, respectively, as of February 3, 2019 . The Company evaluates the effectiveness of its net investment hedges at inception and at the beginning of each quarter thereafter. No amounts were excluded from effectiveness testing. Undesignated Contracts The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”), including all of the foreign currency forward exchange contracts related to intercompany transactions and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying intercompany balances. In addition, the Company has exposure to changes in foreign currency exchange rates related to the translation of the earnings of its subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company entered into several foreign currency option contracts during 2017. These contracts represented the Company’s purchase of euro put/United States dollar call options and Chinese yuan renminbi put/United States dollar call options. All foreign currency option contracts expired in 2017. The Company’s foreign currency option contracts were also undesignated contracts. As such, the changes in the fair value of these foreign currency option contracts were immediately recognized in earnings. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. The cash flows from the Company’s hedges are presented in the same category in the Company’s Consolidated Statements of Cash Flows as the items being hedged. The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: (In millions) Assets Liabilities 2019 2018 2019 2018 Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 21.4 $ 0.4 $ 24.0 $ 0.7 $ 1.2 $ 0.1 $ 3.5 $ 0.7 Interest rate swap agreements 0.1 — 1.4 — 5.5 0.4 1.2 1.6 Total contracts designated as cash flow hedges 21.5 0.4 25.4 0.7 6.7 0.5 4.7 2.3 Undesignated contracts: Foreign currency forward exchange contracts 1.5 — 0.1 — 0.9 — 2.0 — Total $ 23.0 $ 0.4 $ 25.5 $ 0.7 $ 7.6 $ 0.5 $ 6.7 $ 2.3 The notional amount outstanding of foreign currency forward exchange contracts was $ 1,308.1 million at February 2, 2020 . Such contracts expire principally between February 2020 and June 2021. The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain (Loss) Recognized in Other Comprehensive (Loss) Income (In millions) 2019 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 22.4 $ 97.1 $ (122.0 ) Interest rate swap agreements (5.8 ) (2.6 ) 3.2 Foreign currency borrowings (net investment hedges) 39.3 95.6 (99.5 ) Total $ 55.9 $ 190.1 $ (218.3 ) Amount of Gain (Loss) Reclassified from AOCL into Income (Expense), Consolidated Income Statement Location, and Total Amount of Consolidated Income Statement Line Item (In millions) Amount Reclassified Location Total Income Statement Amount 2019 2018 2017 2019 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 23.1 $ (11.6 ) $ (13.6 ) Cost of goods sold $ 4,520.6 $ 4,348.5 $ 4,020.4 Interest rate swap agreements (1.4 ) 1.1 (6.2 ) Interest expense 120.0 120.8 128.5 Total $ 21.7 $ (10.5 ) $ (19.8 ) A net gain in AOCL on foreign currency forward exchange contracts at February 2, 2020 of $ 29.5 million is estimated to be reclassified in the next 12 months in the Company’s Consolidated Income Statement to costs of goods sold as the underlying inventory hedged by such forward exchange contracts is sold. In addition, a net loss in AOCL for interest rate swap agreements at February 2, 2020 of $ 5.4 million is estimated to be reclassified to interest expense within the next 12 months. Amounts recognized in AOCL for foreign currency borrowings would be recognized in earnings only upon the sale or substantially complete liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Income Statements: Gain (Loss) Recognized in Income (Expense) (In millions) 2019 2018 2017 Foreign currency forward exchange contracts $ 3.4 $ (1.5 ) $ (4.6 ) Foreign currency option contracts — — (4.3 ) The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of February 2, 2020 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Feb. 02, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy prioritizes the inputs used to measure fair value as follows: Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. Level 3 – Unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: (In millions) 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 23.3 N/A $ 23.3 N/A $ 24.8 N/A $ 24.8 Interest rate swap agreements N/A 0.1 N/A 0.1 N/A 1.4 N/A 1.4 Total Assets N/A $ 23.4 N/A $ 23.4 N/A $ 26.2 N/A $ 26.2 Liabilities: Foreign currency forward exchange contracts N/A $ 2.2 N/A $ 2.2 N/A $ 6.2 N/A $ 6.2 Interest rate swap agreements N/A 5.9 N/A 5.9 N/A 2.8 N/A 2.8 Total Liabilities N/A $ 8.1 N/A $ 8.1 N/A $ 9.0 N/A $ 9.0 The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the interest rate swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. The following table shows the fair values of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a non-recurring basis (consisting of operating lease right-of-use assets, property, plant and equipment, and other intangible assets) during 2019 , 2018 and 2017, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments 2019 Level 1 Level 2 Level 3 Operating lease right-of-use assets N/A N/A $ 14.5 $ 14.5 $ 83.0 Property, plant and equipment, net N/A N/A — — 26.9 Other intangible assets, net N/A N/A 87.4 87.4 116.4 2018 Property, plant and equipment, net N/A N/A 0.6 0.6 17.9 2017 Property, plant and equipment, net N/A N/A 0.6 0.6 7.5 Operating lease right-of-use assets with a carrying amount of $ 97.5 million were written down to a fair value of $ 14.5 million during 2019 primarily as a result of the closure during the first quarter of 2019 of the Company’s TOMMY HILFIGER flagship and anchor stores in the United States (the “TH U.S. store closures”) and the closure during the first quarter of 2019 of the Company’s CALVIN KLEIN flagship store on Madison Avenue in New York, New York in connection with the Calvin Klein restructuring (as defined in Note 18 , “Exit Activity Costs”). Please see Note 18 for further discussion of the Calvin Klein restructuring costs. The fair value of the Company’s operating lease right-of-use assets was determined based on the discounted cash flows of estimated sublease income using market participant assumptions. Property, plant and equipment with a carrying amount of $ 26.9 million was written down to a fair value of zero during 2019 primarily in connection with the TH U.S. store closures, the closure of the Company’s CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ), and the financial performance in certain of the Company’s retail stores and shop-in-shops, including certain CALVIN KLEIN stores affected by the realignment of the Calvin Klein creative direction globally. Please see Note 18 , “Exit Activity Costs,” for further discussion of the Calvin Klein restructuring costs. The fair value of the Company’s property, plant and equipment was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The Company’s perpetual license right for the Speedo trademark with a carrying amount of $ 203.8 million was written down to a fair value of $ 87.4 million in the fourth quarter of 2019 in connection with the Speedo transaction. Please see Note 4 , “ Assets Held For Sale ,” for further discussion. The $ 226.3 million of impairment charges in 2019 was recorded in the Company’s Consolidated Income Statement, of which $ 109.9 million was included in SG&A expenses and $ 116.4 million was included in other noncash loss, net. The $ 226.3 million of impairment charges was recorded to the Company’s segments as follows: $ 118.6 million in the Heritage Brands Wholesale segment, $ 50.0 million in the Tommy Hilfiger North America segment, $ 37.4 million in the Calvin Klein North America segment, $ 13.1 million in the Calvin Klein International segment, $ 4.0 million in the Tommy Hilfiger International segment, $ 0.1 million in the Heritage Brands Retail segment and $ 3.1 million was recorded in corporate expenses not allocated to any reportable segments. Property, plant and equipment with a carrying amount of $18.5 million was written down to a fair value of $0.6 million during 2018 in connection with the financial performance in certain of the Company’s retail stores and shop-in-shops, and the closure of the CALVIN KLEIN 205 W39 NYC brand. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. Fair value of the Company’s retail stores and shop-in-shops was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $17.9 million impairment charge was included in SG&A expenses, of which $8.5 million was recorded in the Calvin Klein International segment, $5.1 million was recorded in the Calvin Klein North America segment, $2.5 million was recorded in the Heritage Brands Wholesale segment, $1.6 million was recorded in the Tommy Hilfiger International segment and $0.2 million was recorded in the Tommy Hilfiger North America segment. Property, plant and equipment with a carrying amount of $8.1 million was written down to a fair value of $0.6 million during 2017 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $7.5 million impairment charge was included in SG&A expenses, of which $3.4 million was recorded in the Calvin Klein International segment, $1.9 million was recorded in the Tommy Hilfiger International segment, $1.8 million was recorded in the Calvin Klein North America segment and $0.4 million was recorded in the Tommy Hilfiger North America segment. The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows: (In millions) 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 503.4 $ 503.4 $ 452.0 $ 452.0 Short-term borrowings 49.6 49.6 12.8 12.8 Long-term debt (including portion classified as current) 2,707.7 2,869.7 2,819.4 2,853.7 |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 12 Months Ended |
Feb. 02, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company, as of February 2, 2020 , has five noncontributory qualified defined benefit pension plans covering substantially all employees resident in the United States who meet certain age and service requirements. The plans provide monthly benefits upon retirement generally based on career average compensation and years of credited service. Vesting in plan benefits generally occurs after five years of service. The Company refers to these five plans as its “Pension Plans.” The Company also has three noncontributory unfunded non-qualified supplemental defined benefit pension plans, including: – A plan for certain current and former members of Tommy Hilfiger’s domestic senior management. The plan is frozen and, as a result, participants do not accrue additional benefits. – A capital accumulation program for certain current and former senior executives. Under the individual participants’ agreements, the participants in the program will receive a predetermined amount during the ten years following the attainment of age 65 , provided that prior to the termination of employment with the Company, the participant has been in the plan for at least ten years and has attained age 55 . – A plan for certain employees resident in the United States who meet certain age and service requirements that provides benefits for compensation in excess of Internal Revenue Service earnings limits and requires payments to vested employees upon, or shortly after, employment termination or retirement. The Company refers to these three plans as its “SERP Plans.” The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States. As a result of the Company’s acquisition of The Warnaco Group, Inc. (“Warnaco”), the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of the applicable plan, both of which are unfunded and frozen. The Company refers to these two plans as its “Postretirement Plans.” Reconciliations of the changes in the projected benefit obligation (Pension Plans and SERP Plans) and the accumulated benefit obligation (Postretirement Plans) were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2019 2018 2019 2018 Balance at beginning of year $ 651.0 $ 648.0 $ 99.2 $ 96.9 $ 8.4 $ 10.5 Service cost, net of plan expenses 31.2 31.4 5.8 5.8 — — Interest cost 27.9 26.0 4.3 3.9 0.3 0.4 Benefit payments (29.2 ) (26.0 ) (7.9 ) (6.1 ) — — Benefit payments, net of retiree contributions — — — — (1.0 ) (1.4 ) Actuarial loss (gain) 149.2 (28.4 ) 23.1 (1.3 ) 0.5 (1.1 ) Balance at end of year $ 830.1 $ 651.0 $ 124.5 $ 99.2 $ 8.2 $ 8.4 The actuarial losses in 2019 were due principally to decreases in the discount rates. The actuarial gains in 2018 were due principally to increases in the discount rates. Reconciliations of the fair value of the assets held by the Pension Plans and the funded status were as follows: (In millions) 2019 2018 Fair value of plan assets at beginning of year $ 636.8 $ 660.6 Actual return, net of plan expenses 112.9 (7.8 ) Benefit payments (29.2 ) (26.0 ) Company contributions 0.7 10.0 Fair value of plan assets at end of year $ 721.2 $ 636.8 Funded status at end of year $ (108.9 ) $ (14.2 ) Amounts recognized in the Company’s Consolidated Balance Sheets were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2019 2018 2019 2018 Non-current assets $ 1.7 $ 1.8 $ — $ — $ — $ — Current liabilities — — (9.3 ) (7.4 ) (1.1 ) (1.1 ) Non-current liabilities (110.6 ) (16.0 ) (115.2 ) (91.8 ) (7.1 ) (7.3 ) Net amount recognized $ (108.9 ) $ (14.2 ) $ (124.5 ) $ (99.2 ) $ (8.2 ) $ (8.4 ) The components of net benefit cost recognized were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ 33.5 $ 33.7 $ 27.3 $ 5.8 $ 5.8 $ 4.5 $ — $ — $ — Interest cost 27.9 26.0 25.7 4.3 3.9 3.8 0.3 0.4 0.4 Actuarial loss (gain) 74.2 17.4 (3.9 ) 23.1 (1.3 ) 6.1 0.5 (1.1 ) 0.3 Expected return on plan assets (40.3 ) (40.3 ) (38.6 ) — — — — — — Amortization of prior service cost — 0.1 0.1 — — — — — — Curtailment gain — — (0.3 ) — — — — — — Settlement loss — — 9.4 — — — — — — Total $ 95.3 $ 36.9 $ 19.7 $ 33.2 $ 8.4 $ 14.4 $ 0.8 $ (0.7 ) $ 0.7 The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost in the Company’s Consolidated Income Statements. The actuarial losses in 2019 were due principally to decreases in the discount rates. For the Pension Plans, these losses were partially offset by an actuarial gain as a result of the difference between the actual and expected returns on plan assets. In 2017, the Company completed the purchase of a group annuity using assets from the Pension Plans. Under the group annuity, the accrued pension obligations for approximately 4,000 retiree participants who had deferred vested benefits under the Pension Plans were transferred to an insurer. As a result, the Company recognized a loss of $ 9.4 million, which was recorded in non-service related pension and postretirement cost in the Company’s Consolidated Income Statement for 2017. The amount of the pension benefit obligation settled was $ 65.3 million. Amortization of prior service cost recognized in other comprehensive (loss) income for Pension Plans, SERP Plans, and Postretirement Plans was immaterial during 2019 , 2018 and 2017 . Pre-tax amounts in AOCL that had not yet been recognized as components of net benefit cost in the Pension Plans, SERP Plans and Postretirement Plans were immaterial as of February 2, 2020 and February 3, 2019 . Pre-tax amounts in AOCL as of February 2, 2020 expected to be recognized as components of net benefit cost in 2020 in the Pension Plans, SERP Plans and Postretirement Plans were immaterial. The accumulated benefit obligation (Pension Plans and SERP Plans) were as follows: Pension Plans SERP Plans (In millions) 2019 2018 2019 2018 Accumulated benefit obligation $ 751.3 $ 598.9 $ 99.9 $ 81.5 In 2019, three of the Company’s Pension Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. In 2018, three of the Company’s Pension Plans had projected benefit obligations in excess of plan assets and two of the Company’s Pension Plans had accumulated benefit obligations in excess of plan assets. The balances were as follows: (In millions, except plan count) 2019 2018 Number of plans with projected benefit obligations in excess of plan assets 3 3 Aggregate projected benefit obligation $ 811.9 $ 634.7 Aggregate fair value of related plan assets $ 701.3 $ 618.8 Number of plans with accumulated benefit obligations in excess of plan assets 3 2 Aggregate accumulated benefit obligation $ 733.3 $ 38.5 Aggregate fair value of related plan assets $ 701.3 $ 38.0 In 2019 and 2018, all of the Company’s SERP Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets as the plans are unfunded. Significant weighted average rate assumptions used in determining the projected and accumulated benefit obligations at the end of each year and benefit cost in the following year were as follows: 2019 2018 2017 Discount rate (applies to Pension Plans and SERP Plans) 3.15 % 4.35 % 4.08 % Discount rate (applies to Postretirement Plans) 2.70 % 4.16 % 3.91 % Rate of increase in compensation levels (applies to Pension Plans) 4.23 % 4.24 % 4.24 % Expected long-term rate of return on assets (applies to Pension Plans) 6.25 % 6.50 % 6.25 % To develop the expected long-term rate of return on assets assumption, the Company considered the historical level of the risk premium associated with the asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation. The assets of the Pension Plans are invested with the objective of being able to meet current and future benefit payment needs, while managing future contributions. The investment policy aims to earn a reasonable rate of return while minimizing the risk of large losses. Assets are diversified by asset class in order to reduce volatility of overall results from year to year and to take advantage of various investment opportunities. The assets of the Pension Plans are diversified among United States equities, international equities, fixed income investments and cash. The strategic target allocation for the majority of the Pension Plans as of February 2, 2020 was approximately 40% United States equities, 20% international equities and 40% fixed income investments and cash. Equity securities primarily include investments in large-, mid- and small-cap companies located in the United States and abroad. Fixed income securities include corporate bonds of companies from diversified industries, municipal bonds, collective funds and United States Treasury bonds. Actual investment allocations may vary from the Company’s target investment allocations due to prevailing market conditions. In accordance with the fair value hierarchy described in Note 12 , “ Fair Value Measurements ,” the following tables show the fair value of the total assets of the Pension Plans for each major category as of February 2, 2020 and February 3, 2019 : (In millions) Fair Value Measurements as of February 2, 2020 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 182.2 $ 182.2 $ — $ — International equities (2) 10.7 10.7 — — United States equity fund (3) 66.3 — 66.3 — International equity funds (4) 135.1 65.4 69.7 — Fixed income securities: Government securities (5) 74.0 — 74.0 — Corporate securities (5) 225.9 — 225.9 — Short-term investment funds (6) 18.6 — 18.6 — Total return mutual fund (7) 6.9 6.9 — — Subtotal $ 719.7 $ 265.2 $ 454.5 $ — Other assets and liabilities (8) 1.5 Total $ 721.2 (In millions) Fair Value Measurements as of February 3, 2019 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 170.9 $ 170.9 $ — $ — International equities (2) 12.2 12.2 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 126.5 60.3 66.2 — Fixed income securities: Government securities (5) 70.3 — 70.3 — Corporate securities (5) 173.7 — 173.7 — Short-term investment funds (6) 16.7 — 16.7 — Total return mutual fund (7) 6.3 6.3 — — Subtotal $ 635.5 $ 249.7 $ 385.8 $ — Other assets and liabilities (8) 1.3 Total $ 636.8 (1) The Company uses third party pricing services to determine the fair values of the financial instruments held by the pension plans. The Company obtains an understanding of the pricing services' valuation methodologies and related inputs and validates a sample of prices by reviewing prices from other sources. The Company has not adjusted any prices received from the third party pricing services. (2) Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. (3) Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. (4) Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. (5) Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. (6) Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. (7) Valued at the net asset value of this fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities. (8) This category includes other pension assets and liabilities such as pending trades and accrued income. The Company believes that there are no significant concentrations of risk within the plan assets as of February 2, 2020 . Currently, the Company does not expect to make material contributions to the Pension Plans in 2020. The Company’s actual contributions may differ from planned contributions due to many factors, including changes in tax and other laws, as well as significant differences between expected and actual pension asset performance or interest rates. The expected benefit payments associated with the Pension Plans and SERP Plans, and expected benefit payments, net of retiree contributions, associated with the Postretirement Plans are as follows: (In millions) Fiscal Year Pension Plans SERP Plans Postretirement Plans 2020 $ 37.2 $ 9.2 $ 1.0 2021 39.0 10.1 1.0 2022 41.1 13.3 0.9 2023 42.3 12.2 0.8 2024 44.2 10.0 0.7 2025-2029 240.6 59.1 2.7 A 1% change in the assumed medical health care cost trend rate for the Postretirement Plans would not have a material impact on the Company’s net benefit cost for 2019 or the accumulated benefit obligation at February 2, 2020 . The Company has savings and retirement plans and a supplemental savings plan for the benefit of its eligible employees in the United States who elect to participate. The Company matches a portion of employee contributions to the plans. The Company also has defined contribution plans for certain employees associated with certain businesses acquired in the Tommy Hilfiger, Warnaco and Australia acquisitions, whereby the Company pays a percentage of the contribution for the employee. The Company’s contributions to these plans were $ 29.9 million, $25.4 million and $22.1 million in 2019 , 2018 and 2017 , respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Feb. 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock-based awards under its 2006 Stock Incentive Plan (the “2006 Plan”). Shares issued as a result of stock-based compensation transactions generally have been funded with the issuance of new shares of the Company’s common stock. The Company may grant the following types of incentive awards under the 2006 Plan: (i) non-qualified stock options (“stock options”); (ii) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock units (“RSUs”); (vi) performance shares; (vii) performance share units (“PSUs”); and (viii) other stock-based awards. Each award granted under the 2006 Plan is subject to an award agreement that incorporates, as applicable, the exercise price, the term of the award, the periods of restriction, the number of shares to which the award pertains, performance periods and performance measures, and such other terms and conditions as the plan committee determines. Awards granted under the 2006 Plan are classified as equity awards, which are recorded in stockholders’ equity in the Company’s Consolidated Balance Sheets. Through February 2, 2020 , the Company has granted under the 2006 Plan (i) service-based stock options, RSUs and restricted stock; and (ii) contingently issuable PSUs and RSUs. There was no restricted stock outstanding as of February 2, 2020 . According to the terms of the 2006 Plan, for purposes of determining the number of shares available for grant, each share underlying a stock option award reduces the number available by one share and each share underlying an RSU or PSU award reduces the number available by two shares. Total shares available for grant at February 2, 2020 amounted to 3.9 million shares. Net income for 2019 , 2018 and 2017 included $ 56.1 million, $56.2 million and $44.9 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $ 6.9 million, $ 8.9 million and $ 8.8 million, respectively. The Company adopted in 2017 an update to accounting guidance that simplifies several aspects of accounting for share-based payment award transactions, which resulted in the Company’s election to recognize forfeitures as they occur rather than continue to estimate expected forfeitures in determining compensation expense. This accounting change was applied on a modified retrospective basis and resulted in a cumulative-effect adjustment to decrease 2017 beginning retained earnings by $ 0.8 million, with an offsetting increase to additional paid in capital of $ 1.1 million and an increase to deferred tax assets of $ 0.3 million. The Company receives a tax deduction for certain transactions associated with its stock-based plan awards. The actual income tax benefits realized from these transactions in 2019 , 2018 and 2017 were $ 8.8 million, $ 13.2 million and $27.2 million, respectively. The tax benefits realized included discrete net excess tax benefits of $ 0.9 million, $ 4.9 million and $15.4 million recognized in the Company’s provision for income taxes during 2019 , 2018 and 2017 , respectively. Stock Options Stock options granted to employees are generally exercisable in four equal annual installments commencing one year after the date of grant . The underlying stock option award agreements generally provide for accelerated vesting upon the award recipient’s retirement (as defined in the 2006 Plan). Such stock options are granted with a 10 -year term and the per share exercise price cannot be less than the closing price of the common stock on the date of grant. The Company estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton model. The estimated fair value of the stock options granted is expensed over the stock options’ vesting periods. The following summarizes the assumptions used to estimate the fair value of stock options granted during 2019 , 2018 and 2017 and the resulting weighted average grant date fair value per stock option: 2019 2018 2017 Weighted average risk-free interest rate 2.15 % 2.78 % 2.10 % Weighted average expected stock option term (in years) 6.25 6.25 6.25 Weighted average Company volatility 29.88 % 26.92 % 29.46 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 37.14 $ 51.66 $ 33.50 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. Expected dividends are based on the Company’s common stock cash dividend rate at the date of grant. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. Stock option activity for the year was as follows: (In thousands, except years and per stock option data) Stock Options Weighted Average Exercise Price Per Stock Option Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at February 3, 2019 791 $ 107.81 6.1 $ 6,568 Granted 169 111.92 Exercised 31 77.92 Cancelled 27 119.83 Outstanding at February 2, 2020 902 $ 109.25 5.9 $ 871 Exercisable at February 2, 2020 589 $ 106.11 4.7 $ 871 The aggregate grant date fair value of stock options granted during 2019 , 2018 and 2017 was $ 6.3 million, $ 4.4 million and $ 4.8 million, respectively. The aggregate grant date fair value of stock options that vested during 2019 , 2018 and 2017 was $ 6.5 million, $ 6.5 million and $ 7.2 million, respectively. The aggregate intrinsic value of stock options exercised during 2019, 2018 and 2017 was $ 1.3 million, $10.9 million and $56.9 million, respectively. At February 2, 2020 , there was $ 4.4 million of unrecognized pre-tax compensation expense related to non-vested stock options, which is expected to be recognized over a weighted average period of 1.8 years. RSUs RSUs granted to employees since 2016 generally vest in four equal annual installments commencing one year after the date of grant. Outstanding RSUs granted to employees prior to 2016 generally vest in three annual installments of 25% , 25% and 50% commencing two years after the date of grant. Service-based RSUs granted to non-employee directors vest in full one year after the date of grant. The underlying RSU award agreements (excluding agreements for non-employee director awards) generally provide for accelerated vesting upon the award recipient’s retirement (as defined in the 2006 Plan). The fair value of RSUs is equal to the closing price of the Company’s common stock on the date of grant and is expensed over the RSUs’ vesting periods. RSU activity for the year was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 3, 2019 847 $ 122.97 Granted 612 110.03 Vested 350 116.25 Cancelled 113 123.93 Non-vested at February 2, 2020 996 $ 117.28 The aggregate grant date fair value of RSUs granted during 2019 , 2018 and 2017 was $ 67.3 million, $ 53.5 million and $46.0 million, respectively. The aggregate grant date fair value of RSUs vested during 2019 , 2018 and 2017 was $ 40.7 million, $35.1 million and $28.7 million, respectively. At February 2, 2020 , there was $ 73.7 million of unrecognized pre-tax compensation expense related to non-vested RSUs, which is expected to be recognized over a weighted average period of 1.8 years. PSUs Contingently issuable PSUs granted to certain of the Company’s senior executives since 2015 are subject to a three-year performance period. For such awards, the final number of shares to be earned, if any, is contingent upon the Company’s achievement of goals for the applicable performance period, of which 50% is based upon the Company’s absolute stock price growth during the applicable performance period and 50% is based upon the Company’s total shareholder return during the applicable performance period relative to other companies included in the S&P 500 as of the date of grant. For awards granted in 2016, the three-year performance period ended during 2019 and holders of the awards earned an aggregate of 67,000 shares, which was between the threshold and target levels. The Company records expense ratably over the applicable vesting period regardless of whether the market condition is satisfied because the awards are subject to market conditions. The fair value of the awards granted was established for each grant on the grant date using the Monte Carlo simulation model. The following summarizes the assumptions used to estimate the fair value of PSUs granted during 2019 , 2018 and 2017 and the resulting weighted average grant date fair value per PSU: 2019 2018 2017 Risk-free interest rate 2.13 % 2.62 % 1.49 % Expected Company volatility 30.25 % 29.78 % 31.29 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 119.46 $ 159.53 $ 96.81 For certain of the awards granted, the after-tax portion of the award is subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 6.20% in 2019, 7.09% in 2018 and 12.67% in 2017 for the restriction of liquidity, which was calculated using the Chaffe model. PSU activity for the year was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 3, 2019 194 $ 106.76 Granted at target 72 119.46 Reduction due to market condition achieved below target 10 87.16 Vested 67 87.16 Cancelled 8 117.27 Non-vested at February 2, 2020 181 $ 119.63 The aggregate grant date fair value of PSUs granted during 2019 , 2018 and 2017 was $ 8.6 million, $7.0 million and $7.0 million, respectively. The aggregate grant date fair value of PSUs that vested during 2019 and 2018 was $ 6.7 million and $4.6 million, respectively. No PSUs vested in 2017. PSUs in the above table are subject to market conditions. As such, the non-vested PSUs are reflected at the target level, which is consistent with how expense will be recorded, regardless of the numbers of shares that will actually be earned. At February 2, 2020 , there was $ 2.4 million of unrecognized pre-tax compensation expense related to non-vested PSUs, which is expected to be recognized over a weighted average period of 2.1 years. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 02, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The Company’s Board of Directors has authorized over time since 2015 an aggregate $ 2.0 billion stock repurchase program through June 3, 2023. Repurchases under the program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as the Company deems appropriate. Purchases are made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, trading restrictions under the Company’s insider trading policy and other relevant factors. The program may be modified by the Board of Directors, including to increase or decrease the repurchase limitation or extend, suspend, or terminate the program, at any time, without prior notice. During 2019 , 2018 and 2017 , the Company purchased 3.4 million shares, 2.2 million shares and 2.2 million shares, respectively, of its common stock under the program in open market transactions for $ 325.0 million, $ 300.1 million and $ 250.4 million, respectively. As of February 2, 2020 , the repurchased shares were held as treasury stock and $ 683.3 million of the authorization remained available for future share repurchases. Treasury stock activity also includes shares that were withheld in conjunction with the settlement of RSUs and PSUs to satisfy tax withholding requirements. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Feb. 02, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in AOCL, net of related taxes, by component: (In millions) Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance at January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 490.5 (1)(2) (116.0 ) 374.5 Less: Amounts reclassified from AOCL — (16.9 ) (16.9 ) Other comprehensive income (loss) 490.5 (99.1 ) 391.4 Impact of the U.S. Tax Legislation (4) (2.2 ) 0.1 (2.1 ) Balance at February 4, 2018 $ (249.4 ) $ (72.1 ) $ (321.5 ) Other comprehensive (loss) income before reclassifications (288.2 ) (1)(3) 92.0 (196.2 ) Less: Amounts reclassified from AOCL — (9.8 ) (9.8 ) Other comprehensive (loss) income (288.2 ) 101.8 (186.4 ) Balance at February 3, 2019 $ (537.6 ) $ 29.7 $ (507.9 ) Other comprehensive (loss) income before reclassifications (128.1 ) (1)(3) 15.9 (112.2 ) Less: Amounts reclassified from AOCL — 20.0 20.0 Other comprehensive loss (128.1 ) (4.1 ) (132.2 ) Balance at February 2, 2020 $ (665.7 ) $ 25.6 $ (640.1 ) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $ 29.7 million, $ 73.1 million and $ (70.8) million in 2019, 2018 and 2017, respectively. (2) Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. (3) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (4) The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. The following table presents reclassifications from AOCL to earnings: (In millions) Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements 2019 2018 2017 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) 23.1 (11.6 ) (13.6 ) Cost of goods sold Interest rate swap agreements (1.4 ) 1.1 (6.2 ) Interest expense Less: Tax effect 1.7 (0.7 ) (2.9 ) Income tax expense (benefit) Total, net of tax $ 20.0 $ (9.8 ) $ (16.9 ) |
LEASES
LEASES | 12 Months Ended |
Feb. 02, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases approximately 1,830 Company-operated freestanding retail store locations across more than 35 countries, generally with initial lease terms of three to ten years . The Company also leases warehouses, distribution centers, showrooms, office space and a factory in Ethiopia, generally with initial lease terms of ten to 20 years , as well as certain equipment and other assets, generally with initial lease terms of one to five years . Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company's leases. The Company's incremental borrowing rates are based on the term of the lease, the economic environment of the lease, and the effect of collateralization. Certain leases include one or more renewal options, generally for the same period as the initial term of the lease. The exercise of lease renewal options is generally at the Company’s sole discretion and, as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Leases generally provide for payments of nonlease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. For lease agreements entered into or modified after February 3, 2019 , the Company accounts for lease components and nonlease components together as a single lease component and, as such, includes fixed payments of nonlease components in the measurement of the right-of-use assets and lease liabilities. Variable lease payments, such as percentage rentals based on location sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants. In conjunction with the Australia acquisition in May 2019, the Company acquired an office building and warehouse owned by Gazal. Prior to the acquisition, Gazal had entered into an agreement with a third party to sell the building and as such, the building was classified as held for sale and recorded at its fair value less estimated costs to sell on the acquisition date. Please see Note 3 , “ Acquisitions ,” for further discussion. In June 2019, the Company completed the sale of the office building and warehouse for $ 59.4 million, incurring costs of $ 1.0 million, and leased back the building without an option to repurchase. No gain or loss was recognized on the transaction. The lease is classified as an operating lease with an initial lease term of five years and includes three options to renew for a period of five years each. Exercise of these renewal options is not reasonably certain and as a result, the Company recognized an operating lease right-of-use asset and operating lease liability based on the initial term of the lease. The components of the net lease cost were as follows: (In millions) Line Item in the Company’s Consolidated Income Statement 2019 Finance lease cost: Amortization of right-of-use-assets SG&A expenses (depreciation and amortization) $ 5.3 Interest on lease liabilities Interest expense 0.5 Total finance lease cost 5.8 Operating lease cost SG&A expenses 459.5 Short-term lease cost SG&A expenses 25.9 Variable lease cost SG&A expenses 143.8 Less: sublease income SG&A expenses (0.4 ) Total net lease cost $ 634.6 Supplemental balance sheet information related to leases was as follows: (In millions) Line Item in the Company’s Consolidated Balance Sheet 2019 Right-of-use assets: Operating lease Operating lease right-of-use assets $ 1,675.8 Finance lease Property, plant and equipment, net 12.6 $ 1,688.4 Current lease liabilities: Operating lease Current portion of operating lease liabilities $ 363.5 Finance lease Accrued expenses 4.6 $ 368.1 Other lease liabilities: Operating lease Long-term portion of operating lease liabilities $ 1,532.0 Finance lease Other liabilities 9.9 $ 1,541.9 Supplemental cash flow information related to leases was as follows: (In millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 472.8 Operating cash flows from finance leases 0.5 Financing cash flows from finance leases 5.5 Non-cash transactions: Right-of-use assets obtained in exchange for new operating lease liabilities 441.3 Right-of-use assets obtained in exchange for new finance lease liabilities 3.6 The following summarizes the weighted average remaining lease term and weighted average discount rate related to the Company’s right-of-use assets and lease liabilities recorded on the balance sheet: 2019 Weighted average remaining lease term (years): Operating leases 6.84 Finance leases 4.37 Weighted average discount rate: Operating leases 4.25 % Finance leases 3.11 % At February 2, 2020 , the maturities of the Company’s lease liabilities were as follows: (In millions) Finance Leases Operating Leases Total 2020 $ 5.1 $ 436.2 $ 441.3 2021 4.5 399.2 403.7 2022 2.5 323.5 326.0 2023 1.0 244.2 245.2 2024 0.5 187.1 187.6 Thereafter 2.3 622.5 624.8 Total lease payments $ 15.9 $ 2,212.7 $ 2,228.6 Less: Interest (1.4 ) (317.2 ) (318.6 ) Total lease liabilities $ 14.5 $ 1,895.5 $ 1,910.0 The Company’s lease liabilities exclude $ 45.0 million of future lease payment obligations related to leases for two new warehouses and various retail store leases that were entered into but did not commence as of February 2, 2020 . These leases commence between February 2020 and September 2020 with initial lease terms of five to ten years . Disclosures Related to Periods Prior to Adoption of the New Lease Accounting Guidance The Company adopted the update to accounting guidance related to leases in 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. As a result, disclosures related to periods prior to adoption are presented under the previous accounting guidance. At February 3, 2019 , minimum annual rental commitments under noncancelable leases were as follows: (In millions) Capital Leases Operating Leases Total 2019 $ 5.6 $ 402.4 $ 408.0 2020 4.4 371.9 376.3 2021 3.8 314.0 317.8 2022 1.8 255.0 256.8 2023 0.6 189.9 190.5 Thereafter 2.5 618.7 621.2 Total minimum lease payments $ 18.7 $ 2,151.9 $ 2,170.6 Less: Amount representing interest (2.2 ) Present value of net minimum capital lease payments $ 16.5 Aggregate future minimum rentals to be received under noncancelable capital and operating subleases were $ 0.6 million and $ 0.2 million, respectively, at February 3, 2019 . Rent expense was as follows: (In millions) 2018 2017 Minimum $ 465.3 $ 455.2 Percentage and other 128.6 103.0 Less: Sublease rental income (1.4 ) (1.8 ) Total $ 592.5 $ 556.4 The gross book value of assets under finance leases, which were classified within property, plant and equipment in the Company’s Consolidated Balance Sheet, amounted to $ 37.0 million as of February 3, 2019 . Accumulated amortization related to assets under finance leases amounted to $ 21.6 million as of February 3, 2019 . The Company includes amortization of assets under finance leases in depreciation and amortization expense. The Company did not incur any expense in percentage rentals under finance leases during 2018 or 2017 . |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 12 Months Ended |
Feb. 02, 2020 | |
EXIT ACTIVITY COSTS [Abstract] | |
EXIT ACTIVITY COSTS | EXIT ACTIVITY COSTS Calvin Klein Restructuring Costs The Company announced on January 10, 2019 a restructuring in connection with strategic changes for its Calvin Klein business (the “Calvin Klein restructuring”). The strategic changes included (i) the closure of the CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ), (ii) the closure of the flagship store on Madison Avenue in New York, New York, (iii) the restructuring of the Calvin Klein creative and design teams globally, and (iv) the consolidation of operations for the men’s Calvin Klein Sportswear and Calvin Klein Jeans businesses. In connection with the Calvin Klein restructuring, the Company recorded pre-tax costs during 2019 and 2018 as shown in the following table. All expected costs related to this restructuring were incurred by the end of 2019. (In millions) Costs Incurred During 2018 Costs Incurred During 2019 Cumulative Costs Incurred Severance, termination benefits and other employee costs $ 27.3 $ 25.6 $ 52.9 Long-lived asset impairments (1) 6.9 38.2 45.1 Contract termination and other costs 4.3 26.2 30.5 Inventory markdowns 2.2 12.9 15.1 Total $ 40.7 $ 102.9 $ 143.6 (1) Includes the impact of the closure of the flagship store on Madison Avenue in New York, New York in the first quarter of 2019. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and contract termination and other costs incurred during 2019, $59.5 million relate to SG&A expenses of the Calvin Klein North America segment and $30.5 million relate to SG&A expenses of the Calvin Klein International segment. Of the charges for inventory markdowns incurred during 2019, $6.5 million relate to cost of goods sold of the Calvin Klein North America segment and $6.4 million relate to cost of goods sold of the Calvin Klein International segment. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and contract termination and other costs incurred during 2018, $18.9 million relate to SG&A expenses of the Calvin Klein North America segment and $19.6 million relate to SG&A expenses of the Calvin Klein International segment. The charges for inventory markdowns incurred during 2018 were recorded in cost of goods sold of the Company’s Calvin Klein International segment. Please see Note 21 , “ Segment Data ,” for further discussion of the Company’s reportable segments. Please see Note 12 , “ Fair Value Measurements ,” for further discussion of the long-lived asset impairments recorded during 2019 and 2018. The liabilities at February 2, 2020 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/3/19 Costs Incurred During 2019 Costs Paid During 2019 Liability at 2/2/20 Severance, termination benefits and other employee costs $ 25.8 $ 25.6 $ 44.9 $ 6.5 Contract termination and other costs 2.3 26.2 27.3 1.2 Total $ 28.1 $ 51.8 $ 72.2 $ 7.7 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Feb. 02, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE The Company computed its basic and diluted net income per common share as follows: (In millions, except per share data) 2019 2018 2017 Net income attributable to PVH Corp. $ 417.3 $ 746.4 $ 537.8 Weighted average common shares outstanding for basic net income per common share 74.2 76.5 77.6 Weighted average impact of dilutive securities 0.4 0.8 1.0 Total shares for diluted net income per common share 74.6 77.3 78.6 Basic net income per common share attributable to PVH Corp. $ 5.63 $ 9.75 $ 6.93 Diluted net income per common share attributable to PVH Corp. $ 5.60 $ 9.65 $ 6.84 Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: (In millions) 2019 2018 2017 Weighted average potentially dilutive securities 1.1 0.4 0.5 Shares underlying contingently issuable awards that have not met the necessary conditions as of the end of a reporting period are not included in the calculation of diluted net income per common share for that period. The Company had contingently issuable PSU awards outstanding that did not meet the performance conditions as of February 2, 2020 , February 3, 2019 and February 4, 2018 and, therefore, were excluded from the calculation of diluted net income per common share for each applicable year. The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.3 million, 0.3 million and 0.1 million as of February 2, 2020 , February 3, 2019 and February 4, 2018 , respectively. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above. |
NONCASH INVESTING AND FINANCING
NONCASH INVESTING AND FINANCING TRANSACTIONS | 12 Months Ended |
Feb. 02, 2020 | |
Noncash Investing and Financing Transactions [Abstract] | |
NONCASH INVESTING AND FINANCING TRANSACTIONS | NONCASH INVESTING AND FINANCING TRANSACTIONS Omitted from the Company’s Consolidated Statement of Cash Flows for 2019 were capital expenditures related to property, plant and equipment of $ 39.5 million, which will not be paid until 2020. The Company paid $43.7 million in cash during 2019 related to property, plant and equipment that was acquired in 2018 . This amount was omitted from the Company’s Consolidated Statement of Cash Flows for 2018 . The Company paid $41.9 million in cash during 2018 related to property, plant and equipment that was acquired in 2017 . This amount was omitted from the Company’s Consolidated Statement of Cash Flows for 2017 . The Company completed the Australia acquisition during 2019. Omitted from the Company’s Consolidated Statement of Cash Flows for 2019 was the following noncash acquisition consideration: (i) the issuance to key members of Gazal and PVH Australia management of approximately 6% of the outstanding shares in the subsidiary of the Company that holds 100% of the ownership interests in the Australia business, for which the Company recognized a $ 26.2 million liability on the date of the acquisition and (ii) the elimination of a $ 2.2 million pre-acquisition receivable owed to the Company by PVH Australia. In connection with the acquisition, the Company also remeasured its previously held equity investments in Gazal and PVH Australia to fair value, resulting in noncash increases of $ 23.6 million and $ 89.5 million, respectively, to these equity investment balances. Subsequent to the acquisition, the Company recorded a loss of $ 8.6 million during 2019 resulting from the remeasurement of the liability for the 6% interest issued to key members of Gazal and PVH Australia management to its redemption value as of February 2, 2020. The liability was $ 33.8 million as of February 2, 2020 based on exchange rates in effect on that date. Omitted from acquisition of treasury shares in the Company’s Consolidated Statements of Cash Flows for 2019 and 2017 were $ 0.5 million and $ 1.5 million, respectively, of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of the end of the respective periods. The Company recorded a loss of $ 1.7 million during 2019 to write-off previously capitalized debt issuance costs in connection with the refinancing of its senior credit facilities. Omitted from purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows for 2018 and 2017 were $6.0 million and $3.6 million, respectively, of assets acquired through finance leases. Please see Note 17, “Leases,” for supplemental noncash transactions information related to finance leases during 2019. The Company completed the acquisition of the Geoffrey Beene tradename during 2018. Omitted from acquisitions, net of cash acquired in the Company’s Consolidated Statement of Cash Flows for 2018 was $0.7 million of acquisition consideration related to royalties prepaid to Geoffrey Beene by the Company under the prior license agreement and $0.4 million of liabilities assumed by the Company. The Company recorded a loss of $ 8.1 million during 2017 to write-off previously capitalized debt issuance costs in connection with the early redemption of its 4 1/2% senior notes due 2022. |
SEGMENT DATA
SEGMENT DATA | 12 Months Ended |
Feb. 02, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages its operations through its operating divisions, which are presented as six reportable segments: (i) Tommy Hilfiger North America; (ii) Tommy Hilfiger International; (iii) Calvin Klein North America; (iv) Calvin Klein International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail. Tommy Hilfiger North America Segment - This segment consists of the Company’s Tommy Hilfiger North America division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale in the United States and Canada, primarily to department stores, warehouse clubs, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sell TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad array of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated foreign affiliate in Mexico relating to the affiliate’s Tommy Hilfiger business and, since December 2019, the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear affiliate relating to the affiliate’s Tommy Hilfiger business. Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale principally in Europe, Asia, and since May 31, 2019, Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia (including the TH CSAP acquisition) and, since May 31, 2019, Australia, which sell TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad array of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated Tommy Hilfiger foreign affiliates in Brazil and India. This segment included the Company’s proportionate share of the net income or loss of its investment in PVH Australia relating to its Tommy Hilfiger business until May 31, 2019, on which date the Company completed the Australia acquisition and began to consolidate the operations of PVH Australia into its financial statements. Please see Note 3 , “ Acquisitions ,” for further discussion. Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing CALVIN KLEIN branded apparel and related products at wholesale in the United States and Canada, primarily to warehouse clubs, department and specialty stores, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers, and digital commerce sites in the United States and Canada, which sell CALVIN KLEIN branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the CALVIN KLEIN brand names for a broad array of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated foreign affiliate in Mexico relating to the affiliate’s Calvin Klein business and, since December 2019, the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear affiliate relating to the affiliate’s Calvin Klein business. Calvin Klein International Segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing CALVIN KLEIN branded apparel and related products at wholesale principally in Europe, Asia, Brazil and, since May 31, 2019, Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia, Brazil and since May 31, 2019, Australia, which sell CALVIN KLEIN branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the CALVIN KLEIN brand names for a broad array of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its unconsolidated Calvin Klein foreign affiliate in India. This segment included the Company’s proportionate share of the net income or loss of its investment in PVH Australia relating to its Calvin Klein business until May 31, 2019, on which date the Company completed the Australia acquisition and began to consolidate the operations of PVH Australia into its financial statements. Please see Note 3 , “ Acquisitions ,” for further discussion. Heritage Brands Wholesale Segment - This segment consists of the Company’s Heritage Brands Wholesale division. This segment derives revenue primarily from the marketing to department, chain and specialty stores, warehouse clubs, and mass market, off-price and independent retailers (in stores and online), as well as pure play digital commerce retailers in North America of (i) men’s dress shirts and neckwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear principally under the brand names Van Heusen , IZOD, and ARROW ; (iii) women’s intimate apparel under the Warner’s, Olga and True&Co. brand; and (iv) men’s, women’s and children’s swimwear, pool and deck footwear, and swim-related products and accessories under the Speedo trademark. On January 9, 2020, the Company entered into a definitive agreement to sell its Speedo North America business to Pentland. The Speedo transaction is expected to close in the first quarter of 2020, subject to customary closing conditions. This segment also derives revenue from Company operated digital commerce sites in the United States for Speedo , True&Co ., Van Heusen , and IZOD , as well as the Company’s styleBureau .com site. In addition, since May 31, 2019, this segment derives revenue from the Heritage Brands business in Australia. As well, this segment includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated foreign affiliate in Mexico relating to the affiliate’s Heritage Brands business and, since December 2019, the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear affiliate relating to the affiliate’s Heritage Brands business. This segment included the Company’s proportionate share of the net income or loss of its investment in PVH Australia relating to its Heritage Brands business until May 31, 2019, on which date the Company completed the Australia acquisition and began to consolidate the operations of PVH Australia into its financial statements. Please see Note 3 , “ Acquisitions ,” for further discussion. Heritage Brands Retail Segment - This segment consists of the Company’s Heritage Brands Retail division. This segment derives revenue principally from operating retail stores, primarily located in outlet centers throughout the United States and Canada, which primarily sell apparel, accessories and related products . All of the Company’s Heritage Brands stores offer a broad selection of Van Heusen men’s and women’s apparel, along with various of the Company’s dress shirt and neckwear offerings, and IZOD and Warner’s products. The majority of these stores feature multiple brand names on the store signage, with the remaining stores operating under the Van Heusen name. The Company’s revenue by segment was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Revenue – Tommy Hilfiger North America Net sales $ 1,540.2 $ 1,574.3 $ 1,482.2 Royalty revenue 84.1 76.2 68.9 Advertising and other revenue 23.6 18.7 16.7 Total 1,647.9 1,669.2 1,567.8 Revenue – Tommy Hilfiger International Net sales 2,994.2 2,599.7 2,268.0 Royalty revenue 49.8 52.7 47.8 Advertising and other revenue 19.8 22.9 9.6 Total 3,063.8 2,675.3 2,325.4 Revenue – Calvin Klein North America Net sales 1,467.0 1,599.9 1,511.3 Royalty revenue 148.9 143.6 146.4 Advertising and other revenue 53.8 49.8 50.1 Total 1,669.7 1,793.3 1,707.8 Revenue – Calvin Klein International Net sales 1,896.7 1,827.9 1,645.0 Royalty revenue 74.1 78.9 80.0 Advertising and other revenue 27.3 31.1 28.8 Total 1,998.1 1,937.9 1,753.8 Revenue – Heritage Brands Wholesale Net sales 1,248.5 1,293.2 1,274.4 Royalty revenue 19.2 20.5 19.5 Advertising and other revenue 4.2 3.7 3.5 Total 1,271.9 1,317.4 1,297.4 Revenue – Heritage Brands Retail Net sales 253.4 259.2 258.5 Royalty revenue 3.8 4.0 3.7 Advertising and other revenue 0.4 0.5 0.4 Total 257.6 263.7 262.6 Total Revenue Net sales 9,400.0 9,154.2 8,439.4 Royalty revenue 379.9 375.9 366.3 Advertising and other revenue 129.1 126.7 109.1 Total (2) $ 9,909.0 $ 9,656.8 $ 8,914.8 (1) Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . The Company’s revenue by distribution channel was as follows: (In millions) 2019 2018 2017 Wholesale net sales $ 5,066.9 $ 4,969.6 $ 4,504.3 Retail net sales 4,333.1 4,184.6 3,935.1 Net sales 9,400.0 9,154.2 8,439.4 Royalty revenue 379.9 375.9 366.3 Advertising and other revenue 129.1 126.7 109.1 Total $ 9,909.0 $ 9,656.8 $ 8,914.8 The Company has not disclosed net sales by product category as it is impracticable to do so. The Company’s income before interest and taxes by segment was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Income before interest and taxes – Tommy Hilfiger North America $ 93.5 (3)(4) $ 233.8 $ 97.0 (12)(13)(14) Income before interest and taxes – Tommy Hilfiger International 468.2 (5) 377.1 (10) 221.5 (10)(12)(13) Income before interest and taxes – Calvin Klein North America 99.8 (3)(6) 166.7 (11) 184.0 Income before interest and taxes – Calvin Klein International 153.3 (3)(5)(6) 211.5 (11) 226.5 (Loss) Income before interest and taxes – Heritage Brands Wholesale (84.9 ) (5)(7) 83.3 96.7 Income before interest and taxes – Heritage Brands Retail 3.0 7.4 7.6 Loss before interest and taxes – Corporate (2) (174.2 ) (5)(8)(9) (188.1 ) (200.9 ) (15)(16) Income before interest and taxes $ 558.7 $ 891.7 $ 632.4 (1) Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investments in Gazal (prior to the Australia acquisition closing) and Karl Lagerfeld, and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans, and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $ 97.8 million, $ 15.0 million and $ 2.5 million in 2019 , 2018 and 2017 , respectively. (3) Income before interest and taxes for 2019 included costs of $ 59.8 million in connection with agreements the Company entered into in 2019 to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses (the “Socks and Hosiery transaction”) in order to consolidate the socks and hosiery businesses for all Company brands in North America in a newly formed joint venture, PVH Legwear, which began operations in December 2019, and to bring in-house the international Calvin Klein socks and hosiery wholesale businesses. Such costs were included in the Company’s segments as follows: $ 7.5 million in Tommy Hilfiger North America, $ 25.5 million in Calvin Klein North America and $ 26.8 million in Calvin Klein International. (4) Income before interest and taxes for 2019 included costs of $ 54.9 million incurred in connection with the TH U.S. store closures, primarily consisting of noncash lease asset impairments. Please see Note 12 , “ Fair Value Measurements ,” for further discussion. (5) Income (loss) before interest and taxes for 2019 included costs of $ 19.3 million in connection with the Australia and TH CSAP acquisitions, primarily consisting of noncash valuation adjustments, and one-time costs of $ 2.1 million recorded on the Company’s equity investments in Gazal and PVH Australia prior to the Australia acquisition closing. Such costs were included in the Company’s segments as follows: $ 11.1 million in Tommy Hilfiger International, $ 6.0 million in Calvin Klein International, $ 1.8 million in Heritage Brands Wholesale and $ 2.5 million in corporate expenses not allocated to any reportable segments. Please see Note 3, “ Acquisitions ,” for further discussion. (6) Income before interest and taxes for 2019 included costs of $ 102.9 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 66.0 million in Calvin Klein North America and $ 36.9 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. (7) Loss before interest and taxes for 2019 included a noncash loss of $ 142.0 million in connection with the Speedo transaction. Please see Note 4, “Assets Held For Sale,” for further discussion. (8) Loss before interest and taxes for 2019 included a noncash gain of $ 113.1 million to write up the Company’s equity investments in Gazal and PVH Australia to fair value in connection with the Australia acquisition. Please see Note 3 , “ Acquisitions ,” for further discussion. (9) Loss before interest and taxes for 2019 included costs of $ 6.2 million related to the refinancing of the Company’s senior credit facilities. Please see Note 9 , “ Debt ,” for further discussion. (10) Income before interest and taxes for 2018 and 2017 included costs of $ 23.6 million and $ 26.9 million, respectively, associated with the TH China acquisition, primarily consisting of noncash amortization of short-lived assets. (11) Income before interest and taxes for 2018 included costs of $ 40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 18.9 million in Calvin Klein North America and $ 21.8 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. (12) Income before interest and taxes for 2017 included costs of $ 82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $ 34.7 million in Tommy Hilfiger North America and $ 48.2 million in Tommy Hilfiger International. (13) Income before interest and taxes for 2017 included costs of $ 54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). Such costs were included in the Company’s segments as follows: $ 31.3 million in Tommy Hilfiger North America and $ 22.9 million in Tommy Hilfiger International. (14) Income before interest and taxes for 2017 included costs of $ 19.2 million associated with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense. (15) Loss before interest and taxes for 2017 included costs of $ 23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 9 , “ Debt ,” for further discussion. (16) Loss before interest and taxes for 2017 included costs of $ 9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 13 , “ Retirement and Benefit Plans ,” for further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America Segment. The Company’s identifiable assets, depreciation and amortization, and identifiable capital expenditures by segment were as follows: (In millions) 2019 2018 2017 Identifiable Assets (1)(2)(3) Tommy Hilfiger North America $ 1,599.0 $ 1,330.5 $ 1,276.5 Tommy Hilfiger International 4,888.6 3,949.3 4,047.3 Calvin Klein North America 1,932.3 1,817.9 1,836.9 Calvin Klein International 3,428.9 3,114.9 3,138.0 Heritage Brands Wholesale 1,075.3 1,178.1 1,123.5 Heritage Brands Retail 128.4 86.6 81.6 Corporate 578.5 386.4 381.9 Total $ 13,631.0 $ 11,863.7 $ 11,885.7 Depreciation and Amortization Tommy Hilfiger North America $ 40.6 $ 37.9 $ 45.1 Tommy Hilfiger International (4) 119.7 133.9 124.5 Calvin Klein North America 38.6 41.5 43.8 Calvin Klein International 91.9 90.6 83.1 Heritage Brands Wholesale 15.1 14.9 14.3 Heritage Brands Retail 6.2 5.6 5.3 Corporate 11.7 10.4 8.8 Total $ 323.8 $ 334.8 $ 324.9 Identifiable Capital Expenditures (5) Tommy Hilfiger North America (6) $ 41.7 $ 56.1 $ 82.0 Tommy Hilfiger International 139.6 143.9 126.7 Calvin Klein North America 30.3 36.0 36.8 Calvin Klein International 83.3 102.7 96.6 Heritage Brands Wholesale 18.6 15.8 8.0 Heritage Brands Retail 6.5 8.5 4.2 Corporate 21.0 18.3 10.1 Total $ 341.0 $ 381.3 $ 364.4 (1) Identifiable assets included the impact of changes in foreign currency exchange rates. (2) Identifiable assets include the impact related to the adoption of accounting guidance for leases in 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. Please see Note 17, “Leases,” for further discussion. (3) Identifiable assets in 2019 included the impact of the Australia acquisition. Please see Note 3, “Acquisitions,” for a further discussion. (4) Depreciation and amortization in 2018 and 2017 included $ 24.6 million and $ 26.8 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition, which became fully amortized in 2018. (5) Capital expenditures in 2019 included $ 39.5 million of accruals that will not be paid until 2020. Capital expenditures in 2018 included $ 43.7 million of accruals that were not paid until 2019 . Capital expenditures in 2017 included $ 41.9 million of accruals that were not paid until 2018 . (6) Capital expenditures in 2017 included expenditures related to the relocation of the Company’s Tommy Hilfiger office in New York, New York. Property, plant and equipment, net based on the location where such assets are held, was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Domestic $ 525.8 $ 500.5 $ 449.2 Canada 25.3 28.8 30.0 Europe 375.6 362.7 325.5 Asia-Pacific (2) 87.6 73.4 73.8 Other foreign 12.5 19.1 21.3 Total $ 1,026.8 $ 984.5 $ 899.8 (1) Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. (2) The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. Revenue, based on location of origin, was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Domestic $ 4,275.0 $ 4,481.3 $ 4,290.1 Canada 505.5 528.8 512.2 Europe 3,657.3 3,362.1 2,907.2 Asia-Pacific (2) 1,353.4 1,163.7 1,059.3 Other foreign 117.8 120.9 146.0 Total $ 9,909.0 $ 9,656.8 $ 8,914.8 (1) Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Feb. 02, 2020 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company is deemed to have guaranteed lease payments for substantially all G. H. Bass & Co. (“Bass”) retail stores included in the 2013 sale of substantially all of the assets of the Company’s Bass business pursuant to the terms of noncancelable leases expiring on various dates through 2022 . The obligations deemed to be guaranteed include minimum rent payments and relate to leases that commenced prior to the sale of the Bass assets. In certain instances, the Company’s obligations remain in effect when an option is exercised to extend the term of the lease. The maximum amount deemed to have been guaranteed for all leases as of February 2, 2020 was $ 3.4 million and the Company has the right to seek recourse from the buyer of the Bass assets for the full amount. The liability for the guaranteed lease payments was immaterial as of February 2, 2020 and February 3, 2019 . The Company has guaranteed a portion of the debt of one of its joint ventures in India. The maximum amount guaranteed as of February 2, 2020 was approximately $ 11.2 million based on exchange rates in effect on that date. The guarantee is in effect for the entire term of the debt. The liability for this guarantee obligation was immaterial as of February 2, 2020 and February 3, 2019 . The Company has guaranteed to a financial institution the repayment of store security deposits in Japan paid to landlords on behalf of the Company. The amount guaranteed as of February 2, 2020 was approximately $ 5.3 million based on exchange rates in effect on that date. The Company has the right to seek recourse from the landlords for the full amount. The guarantees expire between 2022 and 2025. The liability for these guarantee obligations was immaterial as of February 2, 2020 and February 3, 2019 . |
OTHER COMMENTS
OTHER COMMENTS | 12 Months Ended |
Feb. 02, 2020 | |
Other Comments [Abstract] | |
OTHER COMMENTS | OTHER COMMENTS Included in accrued expenses in the Company’s Consolidated Balance Sheets were certain incentive compensation accruals of $ 41.1 million and $ 99.4 million as of February 2, 2020 and February 3, 2019 , respectively. The Company’s asset retirement liabilities are included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets and relate to the Company’s obligation to dismantle or remove leasehold improvements from leased office, retail store or warehouse locations at the end of a lease term in order to restore a facility to a condition specified in the lease agreement. The Company records the fair value of the liability for asset retirement obligations in the period in which it is legally or contractually incurred. Upon initial recognition of the asset retirement liability, an asset retirement cost is capitalized by increasing the carrying amount of the asset by the same amount as the liability. In periods subsequent to initial measurement, the asset retirement cost is recognized as expense through depreciation over the asset’s useful life. Changes in the liability for the asset retirement obligations are recognized for the passage of time and revisions to either the timing or the amount of estimated cash flows. Accretion expense is recognized in SG&A expenses for the impacts of increasing the discounted fair value to its estimated settlement value. The following table presents the activity related to the Company’s asset retirement liabilities, included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets, for each of the last two years: (In millions) 2019 2018 Balance at beginning of year $ 32.3 $ 27.1 Business acquisitions 1.4 — Liabilities incurred 3.9 7.4 Liabilities settled (payments) (2.2 ) (1.7 ) Accretion expense 0.4 0.4 Revisions in estimated cash flows 0.4 (0.1 ) Currency translation adjustment (0.5 ) (0.8 ) Balance at end of year $ 35.7 $ 32.3 The Company is a party to certain litigation which, in management’s judgment, based in part on the opinions of legal counsel, will not have a material adverse effect on the Company’s financial position. Wuxi Jinmao Foreign Trade Co., Ltd. (“Wuxi”), one of the Company’s finished goods inventory suppliers, has a wholly owned subsidiary with which the Company entered into a loan agreement in 2016. Under the agreement, Wuxi’s subsidiary borrowed a principal amount of $ 13.8 million for the development and operation of a fabric mill. Principal payments are due in semi-annual installments beginning March 31, 2018 through September 30, 2026. The outstanding principal balance of the loan bears interest at a rate of (i) 4.50% per annum until the sixth anniversary of the closing date of the loan and (ii) LIBOR plus 4.00% thereafter. The Company received principal payments of $ 0.4 million and $ 0.2 million during 2019 and 2018, respectively. The outstanding balance, including accrued interest, was $ 13.4 million and $ 13.8 million as of February 2, 2020 and February 3, 2019 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 02, 2020 | |
Subsequent Event [Line Items] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS (UNAUDITED) On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and recommended containment and mitigation measures. COVID-19 continues to spread globally. Virus-related concerns, reduced travel, temporary store closures and government-imposed restrictions have resulted in sharply reduced traffic and consumer spending trends and sales stoppages in the Company’s retail stores in virtually all key markets during the first quarter of 2020. The Company’s wholesale customers and licensees have been similarly impacted, which in turn negatively impacts the Company. In addition, the Company’s supply chain and the supply chains of its licensees had been disrupted and may experience future disruptions as a result of either closed factories or factories operating with reduced workforces. The disruption is expected to be temporary but there is significant uncertainty about the duration and extent of the impact of the COVID-19 outbreak. The related financial impact cannot be reasonably estimated at this time. However, the Company expects a significant negative impact to its business, financial condition, cash flows and results of operations in 2020, which may include non-cash asset impairments, excess inventory and difficulty collecting trade receivables, among other things. As a result, the Company has increased the aggregate borrowings outstanding under its senior unsecured revolving credit facilities, other short-term revolving credit facilities and unsecured commercial paper note program to approximately $ 930.0 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Feb. 02, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS (In millions) Column A Column B Column C Column D Column E Additions Charged to Costs and Expenses Additions Charged to Other Accounts Balance at Beginning of Period Balance at End of Period Description Deductions (1) Year Ended February 2, 2020 Allowance for doubtful accounts $ 21.6 $ 5.7 $ — $ 6.2 (2) $ 21.1 Allowance/accrual for operational chargebacks and customer markdowns 226.8 529.3 — 535.9 220.2 Valuation allowance for deferred income tax assets 62.6 17.1 — 9.9 69.8 Year Ended February 3, 2019 Allowance for doubtful accounts $ 21.1 $ 14.2 $ — $ 13.7 (2) $ 21.6 Allowance/accrual for operational chargebacks and customer markdowns 271.0 403.8 — 448.0 226.8 Valuation allowance for deferred income tax assets 106.3 12.9 — 56.6 (3) 62.6 Year Ended February 4, 2018 Allowance for doubtful accounts $ 15.0 $ 7.5 $ — $ 1.4 (2) $ 21.1 Allowance/accrual for operational chargebacks and customer markdowns 289.5 498.2 — 516.7 271.0 Valuation allowance for deferred income tax assets 43.9 64.3 (4) 1.9 3.8 106.3 (1) Includes changes due to foreign currency translation. (2) Principally accounts written off as uncollectible, net of recoveries. (3) Includes the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $ 38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 02, 2020 | |
Accounting Policies [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases — The Company leases retail locations, warehouses, distribution centers, showrooms, office space and a factory in Ethiopia, as well as certain equipment and other assets. The Company recognizes right-of-use assets and lease liabilities at the lease commencement date based on the present value of fixed lease payments over the expected lease term. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and long-term portion of operating lease liabilities in the Company’s Consolidated Balance Sheet. Finance leases are included in property, plant and equipment, net, accrued expenses and other liabilities in the Company’s Consolidated Balance Sheet. Please see Note 17 , “ Leases ,” and the section “ Recently Adopted Accounting Guidance ” below for further discussion. |
Short-term Leases [Policy Text Block] | Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company's leases. The Company's incremental borrowing rates are based on the term of the lease, the economic environment of the lease, and the effect of collateralization. Certain leases include one or more renewal options, generally for the same period as the initial term of the lease. The exercise of lease renewal options is generally at the Company’s sole discretion and, as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation — The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 6 , “ Investments in Unconsolidated Affiliates ,” for further discussion. The Company and Arvind Limited (“Arvind”) have a joint venture in Ethiopia, PVH Arvind Manufacturing Private Limited Company (“PVH Ethiopia”), in which the Company owns a 75% interest. PVH Ethiopia is consolidated and the minority shareholder’s proportionate share ( 25% ) of the equity in this joint venture is accounted for as a redeemable non-controlling interest. Please see Note 7 , “ Redeemable Non-Controlling Interest ,” for further discussion. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates — The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from the estimates. |
Fiscal Period [Policy Text Block] | Fiscal Year — The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to February 1. References to a year are to the Company’s fiscal year, unless the context requires otherwise. Results for 2019 , 2018 and 2017 represent the 52 weeks ended February 2, 2020 , 52 weeks ended February 3, 2019 and 53 weeks ended February 4, 2018 , respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents also includes amounts due from third party credit card processors for the settlement of customer debit and credit card transactions that are collectible in one week or less. The Company’s cash and cash equivalents at February 2, 2020 consisted principally of bank deposits and investments in money market funds. |
Accounts Receivable [Policy Text Block] | Accounts Receivable — Trade receivables, as presented in the Company’s Consolidated Balance Sheets, are net of returns and allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectibility based on historic trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. Costs associated with allowable customer markdowns and operational chargebacks, net of the expected recoveries, are part of the provision for allowances included in accounts receivable. These provisions result from seasonal negotiations, historical experience, and an evaluation of current market conditions. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets — The Company assesses the recoverability of goodwill annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed two-step quantitative goodwill impairment test. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the fair value of a reporting unit is estimated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as used when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2019 annual goodwill impairment test, the Company elected to bypass the qualitative assessment for all reporting units and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2019 yielded estimated fair values in excess of the carrying amounts for all of the Company’s reporting units and therefore the second step of the quantitative goodwill impairment test was not required. The reporting unit with the least excess fair value had an estimated fair value that exceeded its carrying amount by 15% . No impairment of goodwill resulted from the Company’s annual impairment test in 2019. In the fourth quarter of 2019, the Speedo transaction was a triggering event that indicated that the amount of goodwill allocated to the Heritage Brands Wholesale reporting unit, the reporting unit that includes the Speedo North America business, could be impaired, prompting the need for the Company to perform an interim goodwill impairment test for this reporting unit. No goodwill impairment resulted from this interim test. For the 2018 annual goodwill impairment test, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2018 yielded estimated fair values in excess of the carrying amounts for the Company’s reporting units, all of which had fair values in excess of the carrying amounts by more than 50% , and therefore the second step of the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2018. Indefinite-lived intangible assets not subject to amortization are tested for impairment annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed quantitative impairment test for its indefinite-lived intangible assets. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. When performing the quantitative test, an impairment loss is recognized if the carrying amount of the asset exceeds the fair value of the asset, which is generally determined using the estimated discounted cash flows associated with the asset’s use. Intangible assets with finite lives are amortized over their estimated useful lives and are tested for impairment along with other long-lived assets when events and circumstances indicate that the assets might be impaired. For the 2019 annual impairment test of all indefinite-lived intangible assets, except for the Australia reacquired perpetual license rights, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Australia reacquired perpetual license rights, since only a few months had passed since the acquisition on May 31, 2019 and the business had performed better than initially expected, the Company determined qualitatively that it was not more likely than not that the fair value of these reacquired perpetual license rights were less than the carrying amount and concluded that the quantitative impairment test was not required. The fair values of all of the Company’s indefinite-lived intangible assets substantially exceed their carrying amounts, with the exception of the Company’s perpetual license right related to its Speedo North America business, which had a fair value that exceeded its carrying amount by 3% at the testing date. In the fourth quarter of 2019, the Speedo transaction was a triggering event that prompted the need for the Company to perform an interim impairment test of this perpetual license right. As a result of this interim test, the perpetual license right was determined to be impaired and an impairment charge of $ 116.4 million was recorded in other noncash loss, net in the Company’s Consolidated Income Statement. Please see Note 4 , “ Assets Held For Sale ,” for further discussion. For the 2018 annual impairment test of all indefinite-lived intangible assets, except for the Geoffrey Beene tradename, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Geoffrey Beene tradename, since only a few months had passed since the acquisition on April 20, 2018 and there had not been any significant changes in the business, the Company determined qualitatively that it was not more likely than not that the fair value of this tradename was less than the carrying amount and concluded that the quantitative impairment test was not required. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2018. |
Impairment or Disposal of Long-Lived Intangible Assets, Impairment, Policy [Policy Text Block] | Asset Impairments — The Company reviews for impairment of long-lived assets (excluding goodwill and other indefinite-lived intangible assets) when events and circumstances indicate that the assets might be impaired. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value. Please see Note 12 , “ Fair Value Measurements ,” for further discussion. |
Inventory, Policy [Policy Text Block] | Inventories — Inventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value, except for certain retail inventories in North America that are stated at the lower of cost or market using the retail inventory method. Cost for substantially all wholesale inventories in North America and certain wholesale and retail inventories in Asia is determined using the first-in, first-out method. Cost for all other inventories is determined using the weighted average cost method. The Company reviews current business trends, inventory aging and discontinued merchandise categories to determine adjustments that it estimates will be needed to liquidate existing clearance inventories and record inventories at either the lower of cost or net realizable value or the lower of cost or market using the retail inventory method, as applicable. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment — Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is generally provided over the estimated useful lives of the related assets on a straight-line basis. The range of useful lives is principally as follows: Buildings and building improvements — 15 to 40 years; machinery, software and equipment — 2 to 10 years; furniture and fixtures — 2 to 10 years; and fixtures located in shop-in-shop/concession locations and their related costs — 3 to 4 |
Cloud Computing Arrangements, Policy [Policy Text Block] | Cloud Computing Arrangements — The Company incurs costs to implement cloud computing arrangements that are hosted by a third party vendor. Implementation costs incurred during the application development stage of a project are capitalized and amortized over the term of the hosting arrangement on a straight-line basis. The Company capitalized $ 16.6 million of costs incurred in 2019 to implement cloud computing arrangements, primarily related to digital and consumer data platforms. Amortization expense totaled $ 0.9 million in 2019. Cloud computing costs of $ 15.7 million were included in prepaid expenses and other assets in the Company’s Consolidated Balance Sheet as of February 2, 2020. The Company’s policy for accounting for implementation costs incurred in a cloud computing arrangement that is a service contract reflects changes made in 2019 following the adoption of the updated cloud computing guidance. Please see the section “ Recently Adopted Accounting Guidance ” below for further discussion. |
Lease, Policy [Policy Text Block] (Deprecated 2017-01-31) | Leases generally provide for payments of nonlease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. For lease agreements entered into or modified after February 3, 2019 , the Company accounts for lease components and nonlease components together as a single lease component and, as such, includes fixed payments of nonlease components in the measurement of the right-of-use assets and lease liabilities. Variable lease payments, such as percentage rentals based on location sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition — Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Please see Note 2 , “ Revenue ,” for further discussion. |
Cost of Sales and Selling, General and Administrative Expenses, Policy [Policy Text Block] | Cost of Goods Sold and Selling, General and Administrative Expenses — Costs associated with the production and procurement of product are included in cost of goods sold, including inbound freight costs, purchasing and receiving costs, inspection costs and other product procurement related charges, as well as the amounts recognized on foreign currency forward exchange contracts as the underlying inventory hedged by such forward exchange contracts is sold. Generally, all other expenses, excluding non-service related pension and post retirement (income) costs, interest and income taxes, are included in selling, general and administrative (“SG&A”) expenses, including warehousing and distribution expenses, as the predominant expenses associated therewith are general and administrative in nature, including rent, utilities, payroll and depreciation and amortization. Warehousing and distribution expenses, which are subject to exchange rate fluctuations, totaled $ 351.4 million, $ 307.7 million and $ 272.6 million in 2019 , 2018 and 2017 , respectively. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees — Shipping and handling fees that are billed to customers are included in net sales. Shipping and handling costs incurred by the Company are recorded in SG&A expenses. |
Advertising Cost [Policy Text Block] | Advertising — Advertising costs are expensed as incurred and are included in SG&A expenses. Advertising expenses, which are subject to exchange rate fluctuations, totaled $ 509.7 million, $526.0 million and $501.3 million in 2019 , 2018 and 2017 , respectively. Prepaid advertising expenses recorded in prepaid expenses and other assets totaled $ 5.9 million and $7.3 million at February 2, 2020 and February 3, 2019 , respectively. Costs associated with cooperative advertising programs, under which the Company shares the cost of a customer’s advertising expenditures, are treated as a reduction of revenue. |
Cooperative Advertising Policy [Policy Text Block] | Costs associated with cooperative advertising programs, under which the Company shares the cost of a customer’s advertising expenditures, are treated as a reduction of revenue. |
Revenue Recognition Accounting Policy, Excise and Sales Taxes [Policy Text Block] | Sales Taxes — The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. |
Income Tax, Policy [Policy Text Block] | Income Taxes — Deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. Significant judgment is required in assessing the timing and amount of deductible and taxable items, evaluating tax positions and determining the income tax provision. The Company recognizes income tax benefits only when it is more likely than not that the tax position will be fully sustained upon review by taxing authorities, including resolution of related appeals or litigation processes, if any. If the recognition threshold is met, the Company measures the tax benefit at the largest amount with a greater than 50 percent likelihood of being realized upon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize any portion of that benefit in the financial statements. When the outcome of these tax matters changes, the change in estimate impacts the provision for income taxes in the period that such a determination is made. The Company recognizes interest and penalties related to unrecognized tax benefits in the Company’s income tax provision. The United States Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Legislation”) was enacted on December 22, 2017. The U.S. Tax Legislation is comprehensive and significantly revised the United States tax code. Please see Note 10 , “ Income Taxes ,” for further discussion of the U.S. Tax Legislation. |
Derivatives, Policy [Policy Text Block] | Financial Instruments — The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows primarily associated with certain international inventory purchases. The Company uses foreign currency forward exchange contracts to hedge against a portion of this exposure. The Company also has exposure to interest rate volatility related to its secured term loan facilities. The Company enters into interest rate swap agreements to hedge against a portion of this exposure. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the interest rate swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. Changes in fair value of the foreign currency forward exchange contracts primarily associated with certain international inventory purchases and the interest rate swap agreements that are designated as effective hedging instruments (collectively referred to as “cash flow hedges”) are recorded in equity as a component of accumulated other comprehensive loss (“AOCL”). The Company also has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company designates certain foreign currency borrowings issued in the United States as a net investment hedge of its investments in certain of its foreign subsidiaries that use a functional currency other than the United States dollar. Changes in fair value of the foreign currency borrowings designated as net investment hedges are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its net investment hedges at inception and as of the beginning of each quarter. The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”). Undesignated contracts include all of the foreign currency forward exchange contracts related to intercompany transactions and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying intercompany balances. Undesignated contracts also include foreign currency option contracts previously used by the Company to hedge against changes in foreign currency exchange rates related to the translation of the earnings of the Company’s subsidiaries that use a functional currency other than the United States dollar. The fair value of the foreign currency option contracts was estimated based on external valuation models, which used the original strike price, then current foreign currency exchange rates, the implied volatility in foreign currency exchange rates at the time and length of time to expiration as inputs. All foreign currency option contracts expired in 2017. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. Cash flows from the Company’s hedges are presented in the Consolidated Statements of Cash Flows in the same category as the items being hedged. Please see Note 11 , “ Derivative Financial Instruments |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions — The consolidated financial statements of the Company are prepared in United States dollars. If the functional currency of a foreign subsidiary is not the United States dollar, assets and liabilities are translated to United States dollars at the closing exchange rate in effect at the applicable balance sheet date and revenue and expenses are translated to United States dollars at the average exchange rate for the applicable period. Gains and losses on the revaluation of intercompany loans made between foreign subsidiaries that are of a long-term investment nature are included in AOCL. Gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity, not including inventory purchases, are principally included in SG&A expenses and totaled a loss (gain) of $ 16.2 million, $ 17.3 million and $ (10.2) million in 2019 , 2018 and 2017 |
Debt, Policy [Policy Text Block] | Balance Sheet Classification of Early Settlements of Long-Term Obligations — The Company classifies obligations settled after the balance sheet date but prior to the issuance of the consolidated financial statements based on the contractual payment terms of the underlying agreements. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Benefit Plans — Employee pension benefits earned during the year, as well as interest on the projected benefit obligations or accumulated benefit obligations, are accrued quarterly. The expected return on plan assets is recognized quarterly and determined at the beginning of the year by applying the expected long-term rate of return on assets to the actual fair value of plan assets adjusted for expected benefit payments, contributions and plan expenses. Actuarial gains and losses are recognized in the Company’s operating results in the year in which they occur. These gains and losses include the difference between the actual return on plan assets and the expected return that was recognized quarterly, as well as the change in the projected benefit obligation caused by actual experience and updated actuarial assumptions differing from those assumptions used to record service and interest cost throughout the year. Actuarial gains and losses are measured at least annually at the end of the Company’s fiscal year and, as such, are generally recorded during the fourth quarter of each year. The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 13 , “ Retirement and Benefit Plans ,” for further discussion of the Company’s pension and benefit plans. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation — The Company recognizes all share-based payments to employees and non-employee directors, net of actual forfeitures, as compensation expense in the consolidated financial statements based on their grant date fair values. Please see Note 14 , “Stock-Based Compensation,” for further discussion. |
Recently Adopted Accounting Guidance [Policy Text Block] | Recently Adopted Accounting Guidance — The Financial Accounting Standards Board (“FASB”) issued in February 2016 new guidance on leases. The new guidance, among other changes, requires lessees to recognize a right-of-use asset and a lease liability in the balance sheet for most leases, but retains an expense recognition model similar to the previous guidance. The lease liability is measured at the present value of the fixed lease payments over the lease term and the right-of-use asset is measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee’s initial direct costs. The guidance also requires additional quantitative and qualitative disclosures. The Company adopted the guidance in the first quarter of 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. The effects of the adoption on the Company’s Consolidated Balance Sheet as of February 3, 2019 were as follows: (In millions) As Reported 2/3/19 Adjustments Adjusted 2/3/19 Assets Prepaid expenses $ 168.7 $ (21.3 ) $ 147.4 Operating Lease Right-of-Use Assets — 1,708.2 1,708.2 Other Assets 400.9 (10.3 ) 390.6 Liabilities Accrued expenses 891.6 (17.0 ) 874.6 Current portion of operating lease liabilities — 350.5 350.5 Long-Term Portion of Operating Lease Liabilities — 1,514.1 1,514.1 Other Liabilities 1,322.4 (167.9 ) 1,154.5 Stockholders’ Equity Retained earnings 4,350.1 (3.1 ) 4,347.0 The Company also elected the package of practical expedients permitted under the transition guidance, which allows the Company not to reassess whether any existing contracts are or contain a lease, the lease classification for any existing leases, and the capitalization of initial direct costs for any existing leases, as of the adoption date. The Company’s accounting for finance leases (formerly called capital leases) remains substantially unchanged. The adoption of the guidance did not have a material impact on the Company’s results of operations or cash flows. Please see Note 17 , “ Leases ,” for additional disclosures required by the guidance. The FASB issued in August 2017 an update to accounting guidance to simplify the application of hedge accounting in certain situations and allow companies to better align their hedge accounting with their risk management activities. The update eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same income statement line as the hedged item. The update also simplifies the requirements for hedge documentation and effectiveness assessments and amends the presentation and disclosure requirements. The Company adopted this update in the first quarter of 2019 using a modified retrospective approach, except for the presentation and disclosure guidance, which is being applied on a prospective basis, as required. The adoption of this update did not have any impact on the Company’s consolidated financial statements. The FASB issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. The update aligns the requirements for capitalizing implementation costs incurred under such arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. Under previous accounting guidance, the Company generally expensed the implementation costs incurred in connection with a cloud computing arrangement that is a service contract. The Company early adopted this update in the first quarter of 2019 using a prospective approach and, as a result, has capitalized $ 16.6 million of costs incurred in 2019 to implement cloud computing arrangements, primarily related to digital and consumer data platforms. Such costs were included in prepaid expenses and other assets in the Company’s Consolidated Balance Sheet. |
Accounting Guidance Issued Not Yet Adopted [Policy Text Block] | Accounting Guidance Issued But Not Adopted as of February 2, 2020 — The FASB issued in June 2016 an update to accounting guidance that introduces a new impairment model used to measure credit losses for certain financial assets measured at amortized cost, including trade and other receivables. This update requires entities to record an allowance for credit losses using a forward-looking expected loss impairment model that considers historical experience, current conditions, and reasonable and supportable forecasts that affect collectibility, rather than the incurred loss model required under existing guidance. The update will be effective for the Company in the first quarter of 2020. Entities are required to apply the update using a modified-retrospective approach with a cumulative effect adjustment to opening retained earnings in the period of adoption. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements. The FASB issued in December 2019 an update to accounting guidance to simplify the accounting for income taxes by eliminating certain exceptions to the existing guidance and clarifying and amending certain guidance to reduce diversity in practice. The update eliminates certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The update also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The update will be effective for the Company in the first quarter of 2021, with early adoption permitted. Most amendments in the update are required to be adopted using a prospective approach, while other amendments must be adopted using a modified-retrospective approach or retrospective approach. The Company is currently evaluating the update to determine the impact of the adoption on the Company’s consolidated financial statements. |
ASSETS HELD FOR SALE (Policies)
ASSETS HELD FOR SALE (Policies) | 12 Months Ended |
Feb. 02, 2020 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale [Text Block] | ASSETS HELD FOR SALE The Company entered into a definitive agreement on January 9, 2020 to sell its Speedo North America business to Pentland, the parent company of Speedo International Limited, for $ 170.0 million in cash, subject to a working capital adjustment. Speedo International Limited licenses the Speedo trademark to a subsidiary of the Company for perpetual use in North America and the Caribbean. The Company will deconsolidate the net assets of the Speedo business and no longer license the Speedo trademark upon closing of the sale, which is expected to occur in the first quarter of 2020, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which was received early in the first quarter of 2020. The Company classified the assets and liabilities of the Speedo North America business as held for sale and recorded a pre-tax noncash loss of $ 142.0 million during the fourth quarter of 2019 (including a $ 116.4 million noncash impairment charge related to the Speedo perpetual license right) to reduce the carrying value of the Speedo North America business to its estimated fair value, less costs to sell. The estimated fair value, less costs to sell, reflects the amount of consideration the Company expects to receive upon closing of the transaction, inclusive of the working capital adjustment. The loss was recorded in other noncash loss, net in the Company’s Consolidated Income Statement. The loss will be remeasured in connection with the closing of the transaction and will be impacted by changes to the net assets of the Speedo North America business subsequent to February 2, 2020. The noncash impairment charge related to the Speedo perpetual license right was recorded to write down its carrying value of $ 203.8 million to a fair value of $ 87.4 million, which was implied by the expected amount of consideration to be received upon closing of the transaction. The Company classified this as a Level 3 fair value measurement due to the use of significant unobservable inputs. The Speedo transaction was also a triggering event that prompted the need for the Company to perform an interim goodwill impairment test for its Heritage Brands Wholesale reporting unit. No goodwill impairment resulted from this interim test. The assets and liabilities of the Speedo North America business classified as held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020 were included in the Heritage Brands Wholesale segment and consisted of the following: (In millions) Assets held for sale: Trade receivables $ 48.8 Inventories, net 54.3 Prepaid expenses 0.6 Other current assets 0.6 Property, plant and equipment, net 6.1 Operating lease right-of-use assets 9.0 Goodwill 48.1 Other intangibles, net (1) 95.3 Allowance for reduction of assets held for sale (25.6 ) Total assets held for sale $ 237.2 Liabilities related to assets held for sale: Accounts payable $ 38.7 Accrued expenses 5.4 Current portion of operating lease liabilities 0.6 Long-term portion of operating lease liabilities 10.6 Other liabilities 1.8 Total liabilities related to assets held for sale $ 57.1 (1) Other intangibles, net includes a perpetual license right of $ 87.4 million and customer relationships of $ 7.9 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue Disclosure [Table Text Block] | Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the years ended February 2, 2020 and February 3, 2019 , were as follows: (In millions) 2019 2018 Deferred revenue balance at beginning of period $ 65.3 $ 39.2 Impact of adopting the new revenue standard — 15.6 Net additions to deferred revenue during the period 60.3 61.3 Reductions in deferred revenue for revenue recognized during the period (1) (60.9 ) (50.8 ) Deferred revenue balance at end of period $ 64.7 $ 65.3 (1) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period, as adjusted in 2018 for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred during the period. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $ 10.3 million and $ 2.3 million as of February 2, 2020 and February 3, 2019 , respectively. |
ACQUISITIONS Allocation of Acqu
ACQUISITIONS Allocation of Acquisition Consideration (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: (In millions) Cash and cash equivalents $ 6.6 Trade receivables 15.1 Inventories 89.9 Prepaid expenses 1.3 Other current assets 3.5 Assets held for sale 58.8 Property, plant and equipment 18.4 Goodwill 65.9 Intangible assets 222.2 Operating lease right-of-use assets 56.4 Total assets acquired 538.1 Accounts payable 14.4 Accrued expenses 22.5 Short-term borrowings 50.5 Current portion of operating lease liabilities 10.9 Long-term portion of operating lease liabilities 43.9 Deferred tax liability 69.6 Other liabilities 1.7 Total liabilities assumed 213.5 Total acquisition date fair value of the business acquired $ 324.6 |
ACQUISITIONS Fair Value of Acqu
ACQUISITIONS Fair Value of Acquisition Consideration (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Business Combinations [Abstract] | |
Acquisition Consideration [Table Text Block] | The acquisition date fair value of the business acquired was $ 324.6 million, consisting of: (In millions) Cash consideration $ 124.7 Fair value of the Company’s investment in PVH Australia 131.4 Fair value of the Company’s investment in Gazal 40.1 Fair value of mandatorily redeemable non-controlling interest 26.2 Elimination of pre-acquisition receivable owed to the Company 2.2 Total acquisition date fair value of the business acquired $ 324.6 |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Assets Held For Sale [Abstract] | |
Schedule of Assets Held for Sale [Table Text Block] | The assets and liabilities of the Speedo North America business classified as held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020 were included in the Heritage Brands Wholesale segment and consisted of the following: (In millions) Assets held for sale: Trade receivables $ 48.8 Inventories, net 54.3 Prepaid expenses 0.6 Other current assets 0.6 Property, plant and equipment, net 6.1 Operating lease right-of-use assets 9.0 Goodwill 48.1 Other intangibles, net (1) 95.3 Allowance for reduction of assets held for sale (25.6 ) Total assets held for sale $ 237.2 Liabilities related to assets held for sale: Accounts payable $ 38.7 Accrued expenses 5.4 Current portion of operating lease liabilities 0.6 Long-term portion of operating lease liabilities 10.6 Other liabilities 1.8 Total liabilities related to assets held for sale $ 57.1 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, at cost, was as follows: (In millions) 2019 2018 Land $ 1.0 $ 1.0 Buildings and building improvements 53.2 54.8 Machinery, software and equipment 871.7 697.6 Furniture and fixtures 586.0 540.0 Shop-in-shops/concession locations 209.8 230.9 Leasehold improvements 849.0 790.3 Construction in progress 35.5 83.9 Property, plant and equipment, gross 2,606.2 2,398.5 Less: Accumulated depreciation (1,579.4 ) (1,414.0 ) Property, plant and equipment, net $ 1,026.8 $ 984.5 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill, by segment (please see Note 21 , “ Segment Data ,” for further discussion of the Company’s reportable segments), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of February 4, 2018 Goodwill, gross $ 780.2 $ 942.0 $ 204.4 $ 1,661.6 $ 246.5 $ 11.9 $ 3,846.6 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.2 942.0 204.4 1,661.6 246.5 — 3,834.7 Contingent purchase price payments to Mr. Calvin Klein 1.0 0.7 — — — — 1.7 Currency translation (0.9 ) (33.2 ) — (131.8 ) — — (165.9 ) Balance as of February 3, 2019 Goodwill, gross 780.3 909.5 204.4 1,529.8 246.5 11.9 3,682.4 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.3 909.5 204.4 1,529.8 246.5 — 3,670.5 Australia acquisition — 9.1 — 56.8 — — 65.9 TH CSAP acquisition — — — 63.9 — — 63.9 Reclassification of goodwill to assets held for sale — — — — (48.1 ) — (48.1 ) Currency translation 0.1 (22.5 ) — (52.2 ) — — (74.6 ) Balance as of February 2, 2020 Goodwill, gross 780.4 896.1 204.4 1,598.3 198.4 11.9 3,689.5 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 780.4 $ 896.1 $ 204.4 $ 1,598.3 $ 198.4 $ — $ 3,677.6 The goodwill acquired in the Australia and TH CSAP acquisitions was assigned as of the respective acquisition dates to the Company’s reporting units that are expected to benefit from the synergies of the combinations. The Company reclassified $ 48.1 million of goodwill to assets held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020 in connection with the Speedo transaction. Please see Note 4 , “Assets Held For Sale,” for further discussion. |
Schedule of Intangible Assets [Table Text Block] | The Company’s other intangible assets consisted of the following: 2019 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization: Customer relationships (1)(2) $ 289.9 $ (189.2 ) $ 100.7 $ 307.4 $ (186.1 ) $ 121.3 Reacquired license rights 502.5 (161.9 ) 340.6 523.8 (154.4 ) 369.4 Total intangible assets subject to amortization 792.4 (351.1 ) 441.3 831.2 (340.5 ) 490.7 Indefinite-lived intangible assets: Tradenames 2,830.2 — 2,830.2 2,863.7 — 2,863.7 Perpetual license right (2) — — — 203.8 — 203.8 Reacquired perpetual license rights (1) 209.2 — 209.2 11.0 — 11.0 Total indefinite-lived intangible assets 3,039.4 — 3,039.4 3,078.5 — 3,078.5 Total other intangible assets $ 3,831.8 $ (351.1 ) $ 3,480.7 $ 3,909.7 $ (340.5 ) $ 3,569.2 The gross carrying amount and accumulated amortization of certain intangible assets include the impact of changes in foreign currency exchange rates. |
Schedule of Expected Amortization Expense [Table Text Block] | Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the next five years related to the Company’s intangible assets subject to amortization as of February 2, 2020 is expected to be as follows: (In millions) Fiscal Year Amount 2020 $ 36.8 2021 36.6 2022 34.3 2023 24.0 2024 23.6 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying amounts of the Company’s long-term debt were as follows: (In millions) 2019 2018 Senior unsecured Term Loan A facilities due 2024 (1)(2) $ 1,569.5 $ — Senior secured Term Loan A facility due 2021 — 1,643.8 7 3/4% debentures due 2023 99.7 99.6 3 5/8% senior unsecured euro notes due 2024 (2) 382.9 396.5 3 1/8% senior unsecured euro notes due 2027 (2) 655.6 679.5 Total 2,707.7 2,819.4 Less: Current portion of long-term debt 13.8 — Long-term debt $ 2,693.9 $ 2,819.4 (1) The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was $ 1,029.6 million and € 493.8 million, respectively, as of February 2, 2020 . (2) |
Schedule of Mandatory Long-Term Debt Repayments [Table Text Block] | As of February 2, 2020 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount (1) 2020 13.8 2021 39.0 2022 102.9 2023 223.4 2024 1,682.9 (1) A portion of the Company’s mandatory long-term debt repayments are denominated in euro and subject to changes in the exchange rate of the United States dollar against the euro. Total debt repayments for the next five years exceed the total carrying amount of the Company’s Term Loan A facilities, 7 3/4% debentures due 2023 and 3 5/8% senior euro notes due 2024 as of February 2, 2020 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. |
Schedule of Interest Rate Swap Agreements [Table Text Block] | The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for the outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during 2019, 2018 and 2017: (Dollars in millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of February 2, 2020 Fixed Rate Expiration Date August 2019 February 2020 $ 50.0 $ — 1.1975% February 2022 June 2019 February 2020 50.0 — 1.409% February 2022 June 2019 June 2019 50.0 50.0 1.719% July 2021 January 2019 February 2020 50.0 — 2.4187% February 2021 November 2018 February 2019 139.2 126.6 2.8645% February 2021 October 2018 February 2019 115.7 103.3 2.9975% February 2021 June 2018 August 2018 50.0 50.0 2.6825% February 2021 June 2017 February 2018 306.5 56.5 1.566% February 2020 July 2014 February 2016 682.6 — 1.924% February 2018 The notional amounts of the outstanding interest rate swaps that commenced in February 2018 and February 2019 are adjusted according to pre-set schedules during the terms of the swap agreements such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the USD TLA facility is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The domestic and foreign components of (loss) income before income taxes were as follows: (In millions) 2019 2018 2017 Domestic $ (441.2 ) $ (5.3 ) $ (102.0 ) Foreign 885.2 780.9 612.2 Total $ 444.0 $ 775.6 $ 510.2 The domestic loss before benefit for income taxes in 2019, 2018 and 2017 is primarily attributable to the domestic portion of certain charges incurred in 2019, 2018 and 2017. Please see Note 21 , “Segment Data,” for further discussion of these costs. |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes attributable to income consisted of the following: (In millions) 2019 2018 2017 Federal: Current $ (30.4 ) $ (30.5 ) $ 51.7 Deferred (52.6 ) (1) (53.2 ) (2) (198.3 ) (2) State and local: Current 4.3 4.6 3.5 Deferred (16.5 ) 9.6 (7.8 ) Foreign: Current 127.9 170.2 143.5 Deferred (3.8 ) (1) (69.7 ) (3) (18.5 ) Total $ 28.9 $ 31.0 $ (25.9 ) (1) Includes a $ 27.8 million benefit related to the write-off of deferred tax liabilities in connection with the pre-tax noncash impairment of the Speedo perpetual license right, primarily in the United States. Please see Note 4, “Assets Held For Sale,” for further discussion. (2) Includes a $24.7 million benefit in 2018 and a $52.8 million benefit in 2017 related to the U.S. Tax Legislation. (3) Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision (benefit) for income taxes for the years 2019 , 2018 and 2017 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income as follows: 2019 2018 2017 Statutory federal income tax rate (1) 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal income tax benefit (2.4 )% 0.5 % (1.1 )% Effects of international jurisdictions, including foreign tax credits (15.7 )% (9.5 )% (20.3 )% Change in estimates for uncertain tax positions (11.8 )% (2) (3.7 )% (7.5 )% Change in valuation allowance 1.8 % (5.3 )% (3) 11.0 % (4) One-time transition tax due to U.S. Tax Legislation — % — % 34.0 % Remeasurement due to U.S. Tax Legislation — % 0.2 % (51.9 )% Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) 10.0 % 1.9 % — % Tax on Speedo transaction basis difference 2.3 % — % — % Excess tax benefits related to stock-based compensation (0.2 )% (0.6 )% (2.8 )% (5) Other, net 1.5 % (0.5 )% (0.2 )% Effective income tax rate 6.5 % 4.0 % (5.1 )% (1) The United States statutory federal income tax rate changed from 35.0% to 21.0% , effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7% . (2) Includes the settlement of a multi-year audit from an international jurisdiction. (3) Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. (5) Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer. |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities were as follows: (In millions) 2019 2018 Gross deferred tax assets Tax loss and credit carryforwards $ 232.5 $ 230.1 Operating lease liabilities 407.6 — Employee compensation and benefits 110.9 83.1 Inventories 39.7 26.8 Accounts receivable 20.3 17.1 Accrued expenses 26.5 30.2 Other, net — 13.8 Subtotal 837.5 401.1 Valuation allowances (69.8 ) (62.6 ) Total gross deferred tax assets, net of valuation allowances $ 767.7 $ 338.5 Gross deferred tax liabilities Intangibles $ (860.6 ) $ (825.3 ) Operating lease right-of-use assets (357.2 ) — Property, plant and equipment (46.2 ) (33.6 ) Derivative financial instruments (12.8 ) (4.3 ) Other, net (8.7 ) — Total gross deferred tax liabilities $ (1,285.5 ) $ (863.2 ) Net deferred tax liability $ (517.8 ) $ (524.7 ) |
Summary of Income Tax Contingencies [Table Text Block] | Uncertain tax positions activity for each of the last three years was as follows: (In millions) 2019 2018 2017 Balance at beginning of year $ 248.3 $ 297.1 $ 245.6 Increases related to prior year tax positions 7.7 13.9 15.4 Decreases related to prior year tax positions (15.8 ) (24.9 ) (10.3 ) Increases related to current year tax positions 18.2 25.5 79.7 Lapses in statute of limitations (36.0 ) (54.7 ) (46.3 ) Effects of foreign currency translation (2.5 ) (8.6 ) 13.0 Balance at end of year $ 219.9 $ 248.3 $ 297.1 The entire amount of uncertain tax positions as of February 2, 2020 , if recognized, would reduce the future effective tax rate under current accounting guidance. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: (In millions) Assets Liabilities 2019 2018 2019 2018 Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 21.4 $ 0.4 $ 24.0 $ 0.7 $ 1.2 $ 0.1 $ 3.5 $ 0.7 Interest rate swap agreements 0.1 — 1.4 — 5.5 0.4 1.2 1.6 Total contracts designated as cash flow hedges 21.5 0.4 25.4 0.7 6.7 0.5 4.7 2.3 Undesignated contracts: Foreign currency forward exchange contracts 1.5 — 0.1 — 0.9 — 2.0 — Total $ 23.0 $ 0.4 $ 25.5 $ 0.7 $ 7.6 $ 0.5 $ 6.7 $ 2.3 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain (Loss) Recognized in Other Comprehensive (Loss) Income (In millions) 2019 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 22.4 $ 97.1 $ (122.0 ) Interest rate swap agreements (5.8 ) (2.6 ) 3.2 Foreign currency borrowings (net investment hedges) 39.3 95.6 (99.5 ) Total $ 55.9 $ 190.1 $ (218.3 ) Amount of Gain (Loss) Reclassified from AOCL into Income (Expense), Consolidated Income Statement Location, and Total Amount of Consolidated Income Statement Line Item (In millions) Amount Reclassified Location Total Income Statement Amount 2019 2018 2017 2019 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 23.1 $ (11.6 ) $ (13.6 ) Cost of goods sold $ 4,520.6 $ 4,348.5 $ 4,020.4 Interest rate swap agreements (1.4 ) 1.1 (6.2 ) Interest expense 120.0 120.8 128.5 Total $ 21.7 $ (10.5 ) $ (19.8 ) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Income Statements: Gain (Loss) Recognized in Income (Expense) (In millions) 2019 2018 2017 Foreign currency forward exchange contracts $ 3.4 $ (1.5 ) $ (4.6 ) Foreign currency option contracts — — (4.3 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: (In millions) 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 23.3 N/A $ 23.3 N/A $ 24.8 N/A $ 24.8 Interest rate swap agreements N/A 0.1 N/A 0.1 N/A 1.4 N/A 1.4 Total Assets N/A $ 23.4 N/A $ 23.4 N/A $ 26.2 N/A $ 26.2 Liabilities: Foreign currency forward exchange contracts N/A $ 2.2 N/A $ 2.2 N/A $ 6.2 N/A $ 6.2 Interest rate swap agreements N/A 5.9 N/A 5.9 N/A 2.8 N/A 2.8 Total Liabilities N/A $ 8.1 N/A $ 8.1 N/A $ 9.0 N/A $ 9.0 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis and Recorded Impairment [Table Text Block] | The following table shows the fair values of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a non-recurring basis (consisting of operating lease right-of-use assets, property, plant and equipment, and other intangible assets) during 2019 , 2018 and 2017, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments 2019 Level 1 Level 2 Level 3 Operating lease right-of-use assets N/A N/A $ 14.5 $ 14.5 $ 83.0 Property, plant and equipment, net N/A N/A — — 26.9 Other intangible assets, net N/A N/A 87.4 87.4 116.4 2018 Property, plant and equipment, net N/A N/A 0.6 0.6 17.9 2017 Property, plant and equipment, net N/A N/A 0.6 0.6 7.5 Operating lease right-of-use assets with a carrying amount of $ 97.5 million were written down to a fair value of $ 14.5 million during 2019 primarily as a result of the closure during the first quarter of 2019 of the Company’s TOMMY HILFIGER flagship and anchor stores in the United States (the “TH U.S. store closures”) and the closure during the first quarter of 2019 of the Company’s CALVIN KLEIN flagship store on Madison Avenue in New York, New York in connection with the Calvin Klein restructuring (as defined in Note 18 , “Exit Activity Costs”). Please see Note 18 for further discussion of the Calvin Klein restructuring costs. The fair value of the Company’s operating lease right-of-use assets was determined based on the discounted cash flows of estimated sublease income using market participant assumptions. Property, plant and equipment with a carrying amount of $ 26.9 million was written down to a fair value of zero during 2019 primarily in connection with the TH U.S. store closures, the closure of the Company’s CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ), and the financial performance in certain of the Company’s retail stores and shop-in-shops, including certain CALVIN KLEIN stores affected by the realignment of the Calvin Klein creative direction globally. Please see Note 18 , “Exit Activity Costs,” for further discussion of the Calvin Klein restructuring costs. The fair value of the Company’s property, plant and equipment was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The Company’s perpetual license right for the Speedo trademark with a carrying amount of $ 203.8 million was written down to a fair value of $ 87.4 million in the fourth quarter of 2019 in connection with the Speedo transaction. Please see Note 4 , “ Assets Held For Sale ,” for further discussion. The $ 226.3 million of impairment charges in 2019 was recorded in the Company’s Consolidated Income Statement, of which $ 109.9 million was included in SG&A expenses and $ 116.4 million was included in other noncash loss, net. The $ 226.3 million of impairment charges was recorded to the Company’s segments as follows: $ 118.6 million in the Heritage Brands Wholesale segment, $ 50.0 million in the Tommy Hilfiger North America segment, $ 37.4 million in the Calvin Klein North America segment, $ 13.1 million in the Calvin Klein International segment, $ 4.0 million in the Tommy Hilfiger International segment, $ 0.1 million in the Heritage Brands Retail segment and $ 3.1 million was recorded in corporate expenses not allocated to any reportable segments. Property, plant and equipment with a carrying amount of $18.5 million was written down to a fair value of $0.6 million during 2018 in connection with the financial performance in certain of the Company’s retail stores and shop-in-shops, and the closure of the CALVIN KLEIN 205 W39 NYC brand. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. Fair value of the Company’s retail stores and shop-in-shops was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $17.9 million impairment charge was included in SG&A expenses, of which $8.5 million was recorded in the Calvin Klein International segment, $5.1 million was recorded in the Calvin Klein North America segment, $2.5 million was recorded in the Heritage Brands Wholesale segment, $1.6 million was recorded in the Tommy Hilfiger International segment and $0.2 million was recorded in the Tommy Hilfiger North America segment. Property, plant and equipment with a carrying amount of $8.1 million was written down to a fair value of $0.6 million during 2017 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $7.5 million impairment charge was included in SG&A expenses, of which $3.4 million was recorded in the Calvin Klein International segment, $1.9 million was recorded in the Tommy Hilfiger International segment, $1.8 million was recorded in the Calvin Klein North America segment and $0.4 million was recorded in the Tommy Hilfiger North America segment. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows: (In millions) 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 503.4 $ 503.4 $ 452.0 $ 452.0 Short-term borrowings 49.6 49.6 12.8 12.8 Long-term debt (including portion classified as current) 2,707.7 2,869.7 2,819.4 2,853.7 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Accumulated and Projected Benefit Obligations [Table Text Block] | Reconciliations of the changes in the projected benefit obligation (Pension Plans and SERP Plans) and the accumulated benefit obligation (Postretirement Plans) were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2019 2018 2019 2018 Balance at beginning of year $ 651.0 $ 648.0 $ 99.2 $ 96.9 $ 8.4 $ 10.5 Service cost, net of plan expenses 31.2 31.4 5.8 5.8 — — Interest cost 27.9 26.0 4.3 3.9 0.3 0.4 Benefit payments (29.2 ) (26.0 ) (7.9 ) (6.1 ) — — Benefit payments, net of retiree contributions — — — — (1.0 ) (1.4 ) Actuarial loss (gain) 149.2 (28.4 ) 23.1 (1.3 ) 0.5 (1.1 ) Balance at end of year $ 830.1 $ 651.0 $ 124.5 $ 99.2 $ 8.2 $ 8.4 The actuarial losses in 2019 were due principally to decreases in the discount rates. The actuarial gains in 2018 were due principally to increases in the discount rates. |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | Reconciliations of the fair value of the assets held by the Pension Plans and the funded status were as follows: (In millions) 2019 2018 Fair value of plan assets at beginning of year $ 636.8 $ 660.6 Actual return, net of plan expenses 112.9 (7.8 ) Benefit payments (29.2 ) (26.0 ) Company contributions 0.7 10.0 Fair value of plan assets at end of year $ 721.2 $ 636.8 Funded status at end of year $ (108.9 ) $ (14.2 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Amounts recognized in the Company’s Consolidated Balance Sheets were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2019 2018 2019 2018 Non-current assets $ 1.7 $ 1.8 $ — $ — $ — $ — Current liabilities — — (9.3 ) (7.4 ) (1.1 ) (1.1 ) Non-current liabilities (110.6 ) (16.0 ) (115.2 ) (91.8 ) (7.1 ) (7.3 ) Net amount recognized $ (108.9 ) $ (14.2 ) $ (124.5 ) $ (99.2 ) $ (8.2 ) $ (8.4 ) |
Schedule of Net Benefit Costs [Table Text Block] | The components of net benefit cost recognized were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ 33.5 $ 33.7 $ 27.3 $ 5.8 $ 5.8 $ 4.5 $ — $ — $ — Interest cost 27.9 26.0 25.7 4.3 3.9 3.8 0.3 0.4 0.4 Actuarial loss (gain) 74.2 17.4 (3.9 ) 23.1 (1.3 ) 6.1 0.5 (1.1 ) 0.3 Expected return on plan assets (40.3 ) (40.3 ) (38.6 ) — — — — — — Amortization of prior service cost — 0.1 0.1 — — — — — — Curtailment gain — — (0.3 ) — — — — — — Settlement loss — — 9.4 — — — — — — Total $ 95.3 $ 36.9 $ 19.7 $ 33.2 $ 8.4 $ 14.4 $ 0.8 $ (0.7 ) $ 0.7 The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost in the Company’s Consolidated Income Statements. The actuarial losses in 2019 were due principally to decreases in the discount rates. For the Pension Plans, these losses were partially offset by an actuarial gain as a result of the difference between the actual and expected returns on plan assets. In 2017, the Company completed the purchase of a group annuity using assets from the Pension Plans. Under the group annuity, the accrued pension obligations for approximately 4,000 retiree participants who had deferred vested benefits under the Pension Plans were transferred to an insurer. As a result, the Company recognized a loss of $ 9.4 million, which was recorded in non-service related pension and postretirement cost in the Company’s Consolidated Income Statement for 2017. The amount of the pension benefit obligation settled was $ 65.3 million. |
Schedule of Accumulated Benefit Obligations [Table Text Block] | The accumulated benefit obligation (Pension Plans and SERP Plans) were as follows: Pension Plans SERP Plans (In millions) 2019 2018 2019 2018 Accumulated benefit obligation $ 751.3 $ 598.9 $ 99.9 $ 81.5 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block] | In 2019, three of the Company’s Pension Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. In 2018, three of the Company’s Pension Plans had projected benefit obligations in excess of plan assets and two of the Company’s Pension Plans had accumulated benefit obligations in excess of plan assets. The balances were as follows: (In millions, except plan count) 2019 2018 Number of plans with projected benefit obligations in excess of plan assets 3 3 Aggregate projected benefit obligation $ 811.9 $ 634.7 Aggregate fair value of related plan assets $ 701.3 $ 618.8 Number of plans with accumulated benefit obligations in excess of plan assets 3 2 Aggregate accumulated benefit obligation $ 733.3 $ 38.5 Aggregate fair value of related plan assets $ 701.3 $ 38.0 In 2019 and 2018, all of the Company’s SERP Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets as the plans are unfunded. |
Defined Benefit Plan, Assumptions [Table Text Block] | Significant weighted average rate assumptions used in determining the projected and accumulated benefit obligations at the end of each year and benefit cost in the following year were as follows: 2019 2018 2017 Discount rate (applies to Pension Plans and SERP Plans) 3.15 % 4.35 % 4.08 % Discount rate (applies to Postretirement Plans) 2.70 % 4.16 % 3.91 % Rate of increase in compensation levels (applies to Pension Plans) 4.23 % 4.24 % 4.24 % Expected long-term rate of return on assets (applies to Pension Plans) 6.25 % 6.50 % 6.25 % To develop the expected long-term rate of return on assets assumption, the Company considered the historical level of the risk premium associated with the asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation. |
Schedule of Allocation of Plan Assets [Table Text Block] | In accordance with the fair value hierarchy described in Note 12 , “ Fair Value Measurements ,” the following tables show the fair value of the total assets of the Pension Plans for each major category as of February 2, 2020 and February 3, 2019 : (In millions) Fair Value Measurements as of February 2, 2020 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 182.2 $ 182.2 $ — $ — International equities (2) 10.7 10.7 — — United States equity fund (3) 66.3 — 66.3 — International equity funds (4) 135.1 65.4 69.7 — Fixed income securities: Government securities (5) 74.0 — 74.0 — Corporate securities (5) 225.9 — 225.9 — Short-term investment funds (6) 18.6 — 18.6 — Total return mutual fund (7) 6.9 6.9 — — Subtotal $ 719.7 $ 265.2 $ 454.5 $ — Other assets and liabilities (8) 1.5 Total $ 721.2 (In millions) Fair Value Measurements as of February 3, 2019 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 170.9 $ 170.9 $ — $ — International equities (2) 12.2 12.2 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 126.5 60.3 66.2 — Fixed income securities: Government securities (5) 70.3 — 70.3 — Corporate securities (5) 173.7 — 173.7 — Short-term investment funds (6) 16.7 — 16.7 — Total return mutual fund (7) 6.3 6.3 — — Subtotal $ 635.5 $ 249.7 $ 385.8 $ — Other assets and liabilities (8) 1.3 Total $ 636.8 (1) The Company uses third party pricing services to determine the fair values of the financial instruments held by the pension plans. The Company obtains an understanding of the pricing services' valuation methodologies and related inputs and validates a sample of prices by reviewing prices from other sources. The Company has not adjusted any prices received from the third party pricing services. (2) Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. (3) Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. (4) Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. (5) Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. (6) Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. (7) Valued at the net asset value of this fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities. (8) This category includes other pension assets and liabilities such as pending trades and accrued income. |
Schedule of Expected Benefit Payments [Table Text Block] | The expected benefit payments associated with the Pension Plans and SERP Plans, and expected benefit payments, net of retiree contributions, associated with the Postretirement Plans are as follows: (In millions) Fiscal Year Pension Plans SERP Plans Postretirement Plans 2020 $ 37.2 $ 9.2 $ 1.0 2021 39.0 10.1 1.0 2022 41.1 13.3 0.9 2023 42.3 12.2 0.8 2024 44.2 10.0 0.7 2025-2029 240.6 59.1 2.7 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Table Of Weighted Average Black Scholes Fair Value Assumptions [Table Text Block] | The following summarizes the assumptions used to estimate the fair value of stock options granted during 2019 , 2018 and 2017 and the resulting weighted average grant date fair value per stock option: 2019 2018 2017 Weighted average risk-free interest rate 2.15 % 2.78 % 2.10 % Weighted average expected stock option term (in years) 6.25 6.25 6.25 Weighted average Company volatility 29.88 % 26.92 % 29.46 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 37.14 $ 51.66 $ 33.50 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. Expected dividends are based on the Company’s common stock cash dividend rate at the date of grant. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Stock option activity for the year was as follows: (In thousands, except years and per stock option data) Stock Options Weighted Average Exercise Price Per Stock Option Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at February 3, 2019 791 $ 107.81 6.1 $ 6,568 Granted 169 111.92 Exercised 31 77.92 Cancelled 27 119.83 Outstanding at February 2, 2020 902 $ 109.25 5.9 $ 871 Exercisable at February 2, 2020 589 $ 106.11 4.7 $ 871 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSU activity for the year was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 3, 2019 847 $ 122.97 Granted 612 110.03 Vested 350 116.25 Cancelled 113 123.93 Non-vested at February 2, 2020 996 $ 117.28 |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | The fair value of the awards granted was established for each grant on the grant date using the Monte Carlo simulation model. The following summarizes the assumptions used to estimate the fair value of PSUs granted during 2019 , 2018 and 2017 and the resulting weighted average grant date fair value per PSU: 2019 2018 2017 Risk-free interest rate 2.13 % 2.62 % 1.49 % Expected Company volatility 30.25 % 29.78 % 31.29 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 119.46 $ 159.53 $ 96.81 For certain of the awards granted, the after-tax portion of the award is subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 6.20% in 2019, 7.09% in 2018 and 12.67% in 2017 for the restriction of liquidity, which was calculated using the Chaffe model. |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | PSU activity for the year was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 3, 2019 194 $ 106.76 Granted at target 72 119.46 Reduction due to market condition achieved below target 10 87.16 Vested 67 87.16 Cancelled 8 117.27 Non-vested at February 2, 2020 181 $ 119.63 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents the changes in AOCL, net of related taxes, by component: (In millions) Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance at January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 490.5 (1)(2) (116.0 ) 374.5 Less: Amounts reclassified from AOCL — (16.9 ) (16.9 ) Other comprehensive income (loss) 490.5 (99.1 ) 391.4 Impact of the U.S. Tax Legislation (4) (2.2 ) 0.1 (2.1 ) Balance at February 4, 2018 $ (249.4 ) $ (72.1 ) $ (321.5 ) Other comprehensive (loss) income before reclassifications (288.2 ) (1)(3) 92.0 (196.2 ) Less: Amounts reclassified from AOCL — (9.8 ) (9.8 ) Other comprehensive (loss) income (288.2 ) 101.8 (186.4 ) Balance at February 3, 2019 $ (537.6 ) $ 29.7 $ (507.9 ) Other comprehensive (loss) income before reclassifications (128.1 ) (1)(3) 15.9 (112.2 ) Less: Amounts reclassified from AOCL — 20.0 20.0 Other comprehensive loss (128.1 ) (4.1 ) (132.2 ) Balance at February 2, 2020 $ (665.7 ) $ 25.6 $ (640.1 ) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $ 29.7 million, $ 73.1 million and $ (70.8) million in 2019, 2018 and 2017, respectively. (2) Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. (3) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (4) The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents reclassifications from AOCL to earnings: (In millions) Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements 2019 2018 2017 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) 23.1 (11.6 ) (13.6 ) Cost of goods sold Interest rate swap agreements (1.4 ) 1.1 (6.2 ) Interest expense Less: Tax effect 1.7 (0.7 ) (2.9 ) Income tax expense (benefit) Total, net of tax $ 20.0 $ (9.8 ) $ (16.9 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended | |
Feb. 02, 2020 | Feb. 03, 2019 | |
Leases [Abstract] | ||
Lease, Cost [Table Text Block] | The components of the net lease cost were as follows: (In millions) Line Item in the Company’s Consolidated Income Statement 2019 Finance lease cost: Amortization of right-of-use-assets SG&A expenses (depreciation and amortization) $ 5.3 Interest on lease liabilities Interest expense 0.5 Total finance lease cost 5.8 Operating lease cost SG&A expenses 459.5 Short-term lease cost SG&A expenses 25.9 Variable lease cost SG&A expenses 143.8 Less: sublease income SG&A expenses (0.4 ) Total net lease cost $ 634.6 | |
Schedule of Supplemental Balance Sheet Information [Table Text Block] | Supplemental balance sheet information related to leases was as follows: (In millions) Line Item in the Company’s Consolidated Balance Sheet 2019 Right-of-use assets: Operating lease Operating lease right-of-use assets $ 1,675.8 Finance lease Property, plant and equipment, net 12.6 $ 1,688.4 Current lease liabilities: Operating lease Current portion of operating lease liabilities $ 363.5 Finance lease Accrued expenses 4.6 $ 368.1 Other lease liabilities: Operating lease Long-term portion of operating lease liabilities $ 1,532.0 Finance lease Other liabilities 9.9 $ 1,541.9 | |
Schedule of Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases was as follows: (In millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 472.8 Operating cash flows from finance leases 0.5 Financing cash flows from finance leases 5.5 Non-cash transactions: Right-of-use assets obtained in exchange for new operating lease liabilities 441.3 Right-of-use assets obtained in exchange for new finance lease liabilities 3.6 | |
Schedule of Weight Average Remaining Lease Term and Weighted Average Discount Rate [Table Text Block] | The following summarizes the weighted average remaining lease term and weighted average discount rate related to the Company’s right-of-use assets and lease liabilities recorded on the balance sheet: 2019 Weighted average remaining lease term (years): Operating leases 6.84 Finance leases 4.37 Weighted average discount rate: Operating leases 4.25 % Finance leases 3.11 % | |
Lessee, Operating and Finance Lease, Liability, Maturity [Table Text Block] | At February 2, 2020 , the maturities of the Company’s lease liabilities were as follows: (In millions) Finance Leases Operating Leases Total 2020 $ 5.1 $ 436.2 $ 441.3 2021 4.5 399.2 403.7 2022 2.5 323.5 326.0 2023 1.0 244.2 245.2 2024 0.5 187.1 187.6 Thereafter 2.3 622.5 624.8 Total lease payments $ 15.9 $ 2,212.7 $ 2,228.6 Less: Interest (1.4 ) (317.2 ) (318.6 ) Total lease liabilities $ 14.5 $ 1,895.5 $ 1,910.0 | |
Schedule of Future Minimum Lease Payments Operating and Capital Leases [Table Text Block] | At February 3, 2019 , minimum annual rental commitments under noncancelable leases were as follows: (In millions) Capital Leases Operating Leases Total 2019 $ 5.6 $ 402.4 $ 408.0 2020 4.4 371.9 376.3 2021 3.8 314.0 317.8 2022 1.8 255.0 256.8 2023 0.6 189.9 190.5 Thereafter 2.5 618.7 621.2 Total minimum lease payments $ 18.7 $ 2,151.9 $ 2,170.6 Less: Amount representing interest (2.2 ) Present value of net minimum capital lease payments $ 16.5 | |
Operating and Capital Leases, Rent Expense [Table Text Block] | Rent expense was as follows: (In millions) 2018 2017 Minimum $ 465.3 $ 455.2 Percentage and other 128.6 103.0 Less: Sublease rental income (1.4 ) (1.8 ) Total $ 592.5 $ 556.4 |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | In connection with the Calvin Klein restructuring, the Company recorded pre-tax costs during 2019 and 2018 as shown in the following table. All expected costs related to this restructuring were incurred by the end of 2019. (In millions) Costs Incurred During 2018 Costs Incurred During 2019 Cumulative Costs Incurred Severance, termination benefits and other employee costs $ 27.3 $ 25.6 $ 52.9 Long-lived asset impairments (1) 6.9 38.2 45.1 Contract termination and other costs 4.3 26.2 30.5 Inventory markdowns 2.2 12.9 15.1 Total $ 40.7 $ 102.9 $ 143.6 (1) Includes the impact of the closure of the flagship store on Madison Avenue in New York, New York in the first quarter of 2019. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and contract termination and other costs incurred during 2019, $59.5 million relate to SG&A expenses of the Calvin Klein North America segment and $30.5 million relate to SG&A expenses of the Calvin Klein International segment. Of the charges for inventory markdowns incurred during 2019, $6.5 million relate to cost of goods sold of the Calvin Klein North America segment and $6.4 million relate to cost of goods sold of the Calvin Klein International segment. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and contract termination and other costs incurred during 2018, $18.9 million relate to SG&A expenses of the Calvin Klein North America segment and $19.6 million relate to SG&A expenses of the Calvin Klein International segment. The charges for inventory markdowns incurred during 2018 were recorded in cost of goods sold of the Company’s Calvin Klein International segment. Please see Note 21 , “ Segment Data |
Schedule of Restructuring Accrued Liabilities Costs Incurred And Paid [Table Text Block] | The liabilities at February 2, 2020 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/3/19 Costs Incurred During 2019 Costs Paid During 2019 Liability at 2/2/20 Severance, termination benefits and other employee costs $ 25.8 $ 25.6 $ 44.9 $ 6.5 Contract termination and other costs 2.3 26.2 27.3 1.2 Total $ 28.1 $ 51.8 $ 72.2 $ 7.7 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The Company computed its basic and diluted net income per common share as follows: (In millions, except per share data) 2019 2018 2017 Net income attributable to PVH Corp. $ 417.3 $ 746.4 $ 537.8 Weighted average common shares outstanding for basic net income per common share 74.2 76.5 77.6 Weighted average impact of dilutive securities 0.4 0.8 1.0 Total shares for diluted net income per common share 74.6 77.3 78.6 Basic net income per common share attributable to PVH Corp. $ 5.63 $ 9.75 $ 6.93 Diluted net income per common share attributable to PVH Corp. $ 5.60 $ 9.65 $ 6.84 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: (In millions) 2019 2018 2017 Weighted average potentially dilutive securities 1.1 0.4 0.5 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s revenue by segment was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Revenue – Tommy Hilfiger North America Net sales $ 1,540.2 $ 1,574.3 $ 1,482.2 Royalty revenue 84.1 76.2 68.9 Advertising and other revenue 23.6 18.7 16.7 Total 1,647.9 1,669.2 1,567.8 Revenue – Tommy Hilfiger International Net sales 2,994.2 2,599.7 2,268.0 Royalty revenue 49.8 52.7 47.8 Advertising and other revenue 19.8 22.9 9.6 Total 3,063.8 2,675.3 2,325.4 Revenue – Calvin Klein North America Net sales 1,467.0 1,599.9 1,511.3 Royalty revenue 148.9 143.6 146.4 Advertising and other revenue 53.8 49.8 50.1 Total 1,669.7 1,793.3 1,707.8 Revenue – Calvin Klein International Net sales 1,896.7 1,827.9 1,645.0 Royalty revenue 74.1 78.9 80.0 Advertising and other revenue 27.3 31.1 28.8 Total 1,998.1 1,937.9 1,753.8 Revenue – Heritage Brands Wholesale Net sales 1,248.5 1,293.2 1,274.4 Royalty revenue 19.2 20.5 19.5 Advertising and other revenue 4.2 3.7 3.5 Total 1,271.9 1,317.4 1,297.4 Revenue – Heritage Brands Retail Net sales 253.4 259.2 258.5 Royalty revenue 3.8 4.0 3.7 Advertising and other revenue 0.4 0.5 0.4 Total 257.6 263.7 262.6 Total Revenue Net sales 9,400.0 9,154.2 8,439.4 Royalty revenue 379.9 375.9 366.3 Advertising and other revenue 129.1 126.7 109.1 Total (2) $ 9,909.0 $ 9,656.8 $ 8,914.8 (1) Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . The Company’s revenue by distribution channel was as follows: (In millions) 2019 2018 2017 Wholesale net sales $ 5,066.9 $ 4,969.6 $ 4,504.3 Retail net sales 4,333.1 4,184.6 3,935.1 Net sales 9,400.0 9,154.2 8,439.4 Royalty revenue 379.9 375.9 366.3 Advertising and other revenue 129.1 126.7 109.1 Total $ 9,909.0 $ 9,656.8 $ 8,914.8 The Company has not disclosed net sales by product category as it is impracticable to do so. The Company’s income before interest and taxes by segment was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Income before interest and taxes – Tommy Hilfiger North America $ 93.5 (3)(4) $ 233.8 $ 97.0 (12)(13)(14) Income before interest and taxes – Tommy Hilfiger International 468.2 (5) 377.1 (10) 221.5 (10)(12)(13) Income before interest and taxes – Calvin Klein North America 99.8 (3)(6) 166.7 (11) 184.0 Income before interest and taxes – Calvin Klein International 153.3 (3)(5)(6) 211.5 (11) 226.5 (Loss) Income before interest and taxes – Heritage Brands Wholesale (84.9 ) (5)(7) 83.3 96.7 Income before interest and taxes – Heritage Brands Retail 3.0 7.4 7.6 Loss before interest and taxes – Corporate (2) (174.2 ) (5)(8)(9) (188.1 ) (200.9 ) (15)(16) Income before interest and taxes $ 558.7 $ 891.7 $ 632.4 (1) Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investments in Gazal (prior to the Australia acquisition closing) and Karl Lagerfeld, and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans, and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $ 97.8 million, $ 15.0 million and $ 2.5 million in 2019 , 2018 and 2017 , respectively. (3) Income before interest and taxes for 2019 included costs of $ 59.8 million in connection with agreements the Company entered into in 2019 to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses (the “Socks and Hosiery transaction”) in order to consolidate the socks and hosiery businesses for all Company brands in North America in a newly formed joint venture, PVH Legwear, which began operations in December 2019, and to bring in-house the international Calvin Klein socks and hosiery wholesale businesses. Such costs were included in the Company’s segments as follows: $ 7.5 million in Tommy Hilfiger North America, $ 25.5 million in Calvin Klein North America and $ 26.8 million in Calvin Klein International. (4) Income before interest and taxes for 2019 included costs of $ 54.9 million incurred in connection with the TH U.S. store closures, primarily consisting of noncash lease asset impairments. Please see Note 12 , “ Fair Value Measurements ,” for further discussion. (5) Income (loss) before interest and taxes for 2019 included costs of $ 19.3 million in connection with the Australia and TH CSAP acquisitions, primarily consisting of noncash valuation adjustments, and one-time costs of $ 2.1 million recorded on the Company’s equity investments in Gazal and PVH Australia prior to the Australia acquisition closing. Such costs were included in the Company’s segments as follows: $ 11.1 million in Tommy Hilfiger International, $ 6.0 million in Calvin Klein International, $ 1.8 million in Heritage Brands Wholesale and $ 2.5 million in corporate expenses not allocated to any reportable segments. Please see Note 3, “ Acquisitions ,” for further discussion. (6) Income before interest and taxes for 2019 included costs of $ 102.9 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 66.0 million in Calvin Klein North America and $ 36.9 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. (7) Loss before interest and taxes for 2019 included a noncash loss of $ 142.0 million in connection with the Speedo transaction. Please see Note 4, “Assets Held For Sale,” for further discussion. (8) Loss before interest and taxes for 2019 included a noncash gain of $ 113.1 million to write up the Company’s equity investments in Gazal and PVH Australia to fair value in connection with the Australia acquisition. Please see Note 3 , “ Acquisitions ,” for further discussion. (9) Loss before interest and taxes for 2019 included costs of $ 6.2 million related to the refinancing of the Company’s senior credit facilities. Please see Note 9 , “ Debt ,” for further discussion. (10) Income before interest and taxes for 2018 and 2017 included costs of $ 23.6 million and $ 26.9 million, respectively, associated with the TH China acquisition, primarily consisting of noncash amortization of short-lived assets. (11) Income before interest and taxes for 2018 included costs of $ 40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 18.9 million in Calvin Klein North America and $ 21.8 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. (12) Income before interest and taxes for 2017 included costs of $ 82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $ 34.7 million in Tommy Hilfiger North America and $ 48.2 million in Tommy Hilfiger International. (13) Income before interest and taxes for 2017 included costs of $ 54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). Such costs were included in the Company’s segments as follows: $ 31.3 million in Tommy Hilfiger North America and $ 22.9 million in Tommy Hilfiger International. (14) Income before interest and taxes for 2017 included costs of $ 19.2 million associated with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense. (15) Loss before interest and taxes for 2017 included costs of $ 23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 9 , “ Debt ,” for further discussion. (16) Loss before interest and taxes for 2017 included costs of $ 9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 13 , “ Retirement and Benefit Plans ,” for further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America Segment. The Company’s identifiable assets, depreciation and amortization, and identifiable capital expenditures by segment were as follows: (In millions) 2019 2018 2017 Identifiable Assets (1)(2)(3) Tommy Hilfiger North America $ 1,599.0 $ 1,330.5 $ 1,276.5 Tommy Hilfiger International 4,888.6 3,949.3 4,047.3 Calvin Klein North America 1,932.3 1,817.9 1,836.9 Calvin Klein International 3,428.9 3,114.9 3,138.0 Heritage Brands Wholesale 1,075.3 1,178.1 1,123.5 Heritage Brands Retail 128.4 86.6 81.6 Corporate 578.5 386.4 381.9 Total $ 13,631.0 $ 11,863.7 $ 11,885.7 Depreciation and Amortization Tommy Hilfiger North America $ 40.6 $ 37.9 $ 45.1 Tommy Hilfiger International (4) 119.7 133.9 124.5 Calvin Klein North America 38.6 41.5 43.8 Calvin Klein International 91.9 90.6 83.1 Heritage Brands Wholesale 15.1 14.9 14.3 Heritage Brands Retail 6.2 5.6 5.3 Corporate 11.7 10.4 8.8 Total $ 323.8 $ 334.8 $ 324.9 Identifiable Capital Expenditures (5) Tommy Hilfiger North America (6) $ 41.7 $ 56.1 $ 82.0 Tommy Hilfiger International 139.6 143.9 126.7 Calvin Klein North America 30.3 36.0 36.8 Calvin Klein International 83.3 102.7 96.6 Heritage Brands Wholesale 18.6 15.8 8.0 Heritage Brands Retail 6.5 8.5 4.2 Corporate 21.0 18.3 10.1 Total $ 341.0 $ 381.3 $ 364.4 (1) Identifiable assets included the impact of changes in foreign currency exchange rates. (2) Identifiable assets include the impact related to the adoption of accounting guidance for leases in 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. Please see Note 17, “Leases,” for further discussion. (3) Identifiable assets in 2019 included the impact of the Australia acquisition. Please see Note 3, “Acquisitions,” for a further discussion. (4) Depreciation and amortization in 2018 and 2017 included $ 24.6 million and $ 26.8 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition, which became fully amortized in 2018. (5) Capital expenditures in 2019 included $ 39.5 million of accruals that will not be paid until 2020. Capital expenditures in 2018 included $ 43.7 million of accruals that were not paid until 2019 . Capital expenditures in 2017 included $ 41.9 million of accruals that were not paid until 2018 . (6) Capital expenditures in 2017 included expenditures related to the relocation of the Company’s Tommy Hilfiger office in New York, New York. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Property, plant and equipment, net based on the location where such assets are held, was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Domestic $ 525.8 $ 500.5 $ 449.2 Canada 25.3 28.8 30.0 Europe 375.6 362.7 325.5 Asia-Pacific (2) 87.6 73.4 73.8 Other foreign 12.5 19.1 21.3 Total $ 1,026.8 $ 984.5 $ 899.8 (1) Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. (2) The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. Revenue, based on location of origin, was as follows: (In millions) 2019 (1) 2018 (1) 2017 (1) Domestic $ 4,275.0 $ 4,481.3 $ 4,290.1 Canada 505.5 528.8 512.2 Europe 3,657.3 3,362.1 2,907.2 Asia-Pacific (2) 1,353.4 1,163.7 1,059.3 Other foreign 117.8 120.9 146.0 Total $ 9,909.0 $ 9,656.8 $ 8,914.8 (1) Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. |
OTHER COMMENTS (Tables)
OTHER COMMENTS (Tables) | 12 Months Ended |
Feb. 02, 2020 | |
Other Comments [Abstract] | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following table presents the activity related to the Company’s asset retirement liabilities, included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets, for each of the last two years: (In millions) 2019 2018 Balance at beginning of year $ 32.3 $ 27.1 Business acquisitions 1.4 — Liabilities incurred 3.9 7.4 Liabilities settled (payments) (2.2 ) (1.7 ) Accretion expense 0.4 0.4 Revisions in estimated cash flows 0.4 (0.1 ) Currency translation adjustment (0.5 ) (0.8 ) Balance at end of year $ 35.7 $ 32.3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||
Significant Accounting Policies | ||||
Fiscal year, minimum number of weeks | 52 Weeks | 53 Weeks | ||
Fiscal year, maximum number of weeks | 52 Weeks | |||
Cash equivalents, maturity, maximum months | 3 months | |||
Cash and cash equivalents also include Receivables, Credit Card, Third Party Intermediaries collectible in | one week | |||
Percentage of goodwill fair value in excess of carrying amount | 15.00% | 50.00% | ||
Warehousing and distribution expenses | $ 351.4 | $ 307.7 | $ 272.6 | |
Advertising expense | 509.7 | 526 | 501.3 | |
Prepaid Advertising | $ 5.9 | 7.3 | ||
Percent likelihood that tax position will be fully sustained | 50.00% | |||
Foreign currency transaction loss (gain) | $ 16.2 | 17.3 | (10.2) | |
Asset Impairment Charges | $ 109.9 | [1] | $ 17.9 | $ 7.5 |
Ethiopia Joint Venture [Member] | ||||
Significant Accounting Policies | ||||
Non-Controlling Interest, Ownership Percentage by Parent | 75.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% | |||
Perpetual License Rights [Member] | ||||
Significant Accounting Policies | ||||
Percentage of Fair Value in Excess of Carrying Amount | 3.00% | |||
Asset Impairment Charges | $ 116.4 | |||
Perpetual License Rights [Member] | Fair Value, Nonrecurring [Member] | ||||
Significant Accounting Policies | ||||
Asset Impairment Charges | 116.4 | |||
Accounting Standards Update 2018-15 [Member] | ||||
Significant Accounting Policies | ||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, before Accumulated Amortization | 16.6 | |||
Hosting Arrangement, Service Contract, Implementation Cost, Expense, Amortization | 0.9 | |||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, after Accumulated Amortization | $ 15.7 | |||
[1] | Noncash impairment charge of $ 116.4 million related to the sale of the Speedo North America business is included in Other noncash loss, net. Please see Note 4 for further information. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 275 | $ 263.9 | $ 252.2 |
Buildings and building improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 15 years | ||
Buildings and building improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 40 years | ||
Machinery, software and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 2 years | ||
Machinery, software and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 10 years | ||
Furniture and fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 2 years | ||
Furniture and fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 10 years | ||
Shop-in-shops [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 3 years | ||
Shop-in-shops [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Impact of New Lease Standard on Balance Sheet Line Items (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Item Effected [Line Items] | ||
Prepaid expenses | $ 168.7 | |
Other Assets | $ 375.9 | 400.9 |
Operating Lease, Right-of-Use Asset | 1,675.8 | 0 |
Accrued expenses | 929.6 | 891.6 |
Current portion of operating lease liabilities | 363.5 | 0 |
Long-Term Portion of Operating Lease Liabilities | 1,532 | 0 |
Total lease liabilities | 1,895.5 | |
Other Liabilities | 1,234.5 | 1,322.4 |
Retained earnings | $ (4,753) | (4,350.1) |
Accounting Standards Update 2016-02 [Member] | ||
Item Effected [Line Items] | ||
Prepaid expenses | (21.3) | |
Other Assets | (10.3) | |
Operating Lease, Right-of-Use Asset | 1,700 | |
Accrued expenses | (17) | |
Current portion of operating lease liabilities | 350.5 | |
Long-Term Portion of Operating Lease Liabilities | 1,514.1 | |
Total lease liabilities | 1,900 | |
Other Liabilities | (167.9) | |
Retained earnings | 3.1 | |
Pro Forma [Member] | ||
Item Effected [Line Items] | ||
Prepaid expenses | 147.4 | |
Other Assets | 390.6 | |
Operating Lease, Right-of-Use Asset | 1,708.2 | |
Accrued expenses | 874.6 | |
Current portion of operating lease liabilities | 350.5 | |
Long-Term Portion of Operating Lease Liabilities | 1,514.1 | |
Total lease liabilities | 1,900 | |
Other Liabilities | 1,154.5 | |
Retained earnings | $ (4,347) |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | ||
Deferred Revenue [Line Items] | |||
Payment terms, due from customer | Payment is typically due within 30 to 90 days. | ||
Long-term deferred revenue liabilities (included in Other Liabilities) | $ 10.3 | $ 2.3 | |
Movement in Deferred Revenue [Roll Forward] | |||
Deferred revenue, beginning balance | 65.3 | 39.2 | |
Impact of adopting the new revenue standard | 0 | 15.6 | |
Net additions to deferred revenue during the period | 60.3 | 61.3 | |
Reductions in deferred revenue for revenue recognized during the period | (60.9) | [1] | (50.8) |
Deferred revenue, ending balance | $ 64.7 | $ 65.3 | |
[1] | Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period, as adjusted in 2018 for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred during the period. |
REVENUE Revenue, Remaining Perf
REVENUE Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Feb. 02, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 291.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 242.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 684.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Jul. 01, 2019 | May 31, 2019 | Apr. 20, 2018 | Sep. 01, 2017 | Mar. 30, 2017 | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 3,677.6 | $ 3,670.5 | $ 3,834.7 | |||||
Tommy Hilfiger International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 1,598.3 | 1,529.8 | 1,661.6 | |||||
Calvin Klein North America [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 780.4 | 780.3 | 780.2 | |||||
Calvin Klein International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 896.1 | 909.5 | 942 | |||||
Heritage Brands Wholesale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 198.4 | $ 246.5 | $ 246.5 | |||||
TH CSAP Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid to acquire business | $ 74.3 | |||||||
Goodwill | 63.9 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Assets | 10.4 | |||||||
TH CSAP Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 63.9 | |||||||
Goodwill | $ 63.9 | |||||||
Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid to acquire business | $ 124.7 | |||||||
Goodwill | 65.9 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 324.6 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 6.6 | |||||||
Gain to write-up equity investments in joint ventures to fair value | 113.1 | |||||||
Pre-Acquisition Accounts Receivable | 2.2 | |||||||
Goodwill | 65.9 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 222.2 | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.00% | |||||||
Business Ownership Percentage | 100.00% | |||||||
Mandatorily Redeemable Non-Controlling Interest to be Purchased | 50.00% | |||||||
Tranche 1 Effective Period | one year after the closing | |||||||
Tranche 2 Effective Period | two years after the closing | |||||||
Total acquisition date fair value of the business acquired | $ 324.6 | |||||||
Australia Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 56.8 | |||||||
Goodwill | 9.1 | |||||||
Australia Acquisition [Member] | Calvin Klein North America [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 0 | |||||||
Australia Acquisition [Member] | Calvin Klein International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 9.1 | |||||||
Goodwill | $ 56.8 | |||||||
Australia Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 0 | |||||||
Australia Acquisition [Member] | Order Backlog [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 months | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 0.3 | |||||||
Australia Acquisition [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 17 | |||||||
Geoffrey Beene Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived Intangible Assets Acquired | $ 17 | |||||||
Payments to Acquire Intangible Assets | 15.9 | |||||||
Noncash Or Part Noncash Acquisition, Prepaid Royalties Assumed | 0.7 | |||||||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 0.4 | |||||||
Belgian Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid to acquire business | $ 12 | |||||||
Goodwill | 12.4 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | (0.4) | |||||||
Belgian Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 11.1 | |||||||
Belgian Acquisition [Member] | Calvin Klein International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1.3 | |||||||
True & Co Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid to acquire business | $ 28.5 | |||||||
Goodwill | 20.9 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 7.6 | |||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 7.3 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 0.4 | |||||||
True & Co Acquisition [Member] | Calvin Klein North America [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 5.4 | |||||||
True & Co Acquisition [Member] | Calvin Klein International [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 4.8 | |||||||
True & Co Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 10.7 | |||||||
Gazal Corporation Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 22.00% | |||||||
Gazal Corporation Limited [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 78.00% | |||||||
Equity Method Investments, Carrying Value Prior To Step Acquisition Remeasurement | $ 16.5 | |||||||
Gain to write-up equity investments in joint ventures to fair value | $ 23.6 | |||||||
PVH Australia [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||
PVH Australia [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity Method Investments, Carrying Value Prior To Step Acquisition Remeasurement | $ 41.9 | |||||||
Gain to write-up equity investments in joint ventures to fair value | 89.5 | |||||||
Fair Value, Inputs, Level 1 [Member] | Gazal Corporation Limited [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 40.1 | |||||||
Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Fair Value | 26.2 | |||||||
Noncontrolling Interest, Change in Redemption Value | (8.6) | |||||||
Redeemable Noncontrolling Interest, Equity, Common, Redemption Value | 33.8 | |||||||
Fair Value, Inputs, Level 3 [Member] | PVH Australia [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 131.4 | |||||||
Measurement Input, Discount Rate [Member] | Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value Input | 12.50% | |||||||
Accrued Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Fair Value | $ 16.9 | |||||||
Reacquired License Rights [Member] | Australia Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 204.9 | |||||||
Perpetual License Rights [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of Fair Value in Excess of Carrying Amount | 3.00% |
ACQUISITIONS Fair Value of Ac_2
ACQUISITIONS Fair Value of Acquisition Consideration (Details) - Australia Acquisition [Member] $ in Millions | May 31, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 124.7 |
Elimination of pre-acquisition receivable owed to the Company | 2.2 |
Total acquisition date fair value of the business acquired | 324.6 |
Fair Value, Inputs, Level 1 [Member] | Gazal Corporation Limited [Member] | |
Business Acquisition [Line Items] | |
Fair value of the Company's investment in PVH Australia | 40.1 |
Fair Value, Inputs, Level 3 [Member] | |
Business Acquisition [Line Items] | |
Fair value of mandatorily redeemable non-controlling interest | 26.2 |
Fair Value, Inputs, Level 3 [Member] | PVH Australia [Member] | |
Business Acquisition [Line Items] | |
Fair value of the Company's investment in PVH Australia | $ 131.4 |
ACQUISITIONS Allocation of Ac_2
ACQUISITIONS Allocation of Acquisition Consideration (Details) - USD ($) $ in Millions | Feb. 02, 2020 | May 31, 2019 | Feb. 03, 2019 | Feb. 04, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,677.6 | $ 3,670.5 | $ 3,834.7 | |
Australia Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 6.6 | |||
Trade receivables | 15.1 | |||
Inventories | 89.9 | |||
Prepaid expenses | 1.3 | |||
Other current assets | 3.5 | |||
Assets held for sale | 58.8 | |||
Property, plant and equipment | 18.4 | |||
Goodwill | 65.9 | |||
Intangible assets | 222.2 | |||
Operating lease right-of-use assets | 56.4 | |||
Total assets acquired | 538.1 | |||
Accounts payable | 14.4 | |||
Accrued expenses | 22.5 | |||
Short-term borrowings | 50.5 | |||
Current portion of operating lease liabilities | 10.9 | |||
Long-term portion of operating lease liabilities | 43.9 | |||
Deferred tax liability | 69.6 | |||
Other liabilities | 1.7 | |||
Total liabilities assumed | 213.5 | |||
Total acquisition date fair value of the business acquired | $ 324.6 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||
Long Lived Assets Held-for-sale [Line Items] | ||||
Impairment of long-lived assets | $ 109.9 | [1] | $ 17.9 | $ 7.5 |
Speedo Transaction [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Expected proceeds from divestiture of businesses | 170 | |||
Noncash loss to write-down assets held for sale | 142 | |||
Customer-Related Intangible Assets [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Intangible Assets | 7.9 | |||
Perpetual License Rights [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Impairment of long-lived assets | 116.4 | |||
Disposal Group, Including Discontinued Operation, Intangible Assets | 87.4 | |||
Fair Value, Nonrecurring [Member] | Perpetual License Rights [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Impairment of long-lived assets | 116.4 | |||
Long-lived assets, carrying amount | 203.8 | |||
Total Assets, Fair Value | $ 87.4 | |||
[1] | Noncash impairment charge of $ 116.4 million related to the sale of the Speedo North America business is included in Other noncash loss, net. Please see Note 4 for further information. |
ASSETS HELD FOR SALE Assets and
ASSETS HELD FOR SALE Assets and Liabilities Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Millions | Feb. 02, 2020USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | ||
Trade receivables | $ 48.8 | |
Inventories, net | 54.3 | |
Prepaid expenses | 0.6 | |
Other current assets | 0.6 | |
Property, plan and equipment, net | 6.1 | |
Operating lease right-of-use assets | 9 | |
Other intangibles, net | 95.3 | [1] |
Allowance for reduction of assets held for sale | (25.6) | |
Total assets held for sale | 237.2 | |
Accounts payable | 38.7 | |
Accrued expenses | 5.4 | |
Current portion of operating lease liabilities | 0.6 | |
Long-term portion of operating lease liabilities | 10.6 | |
Other liabilities | 1.8 | |
Total liabilities related to assets held for sale | $ 57.1 | |
[1] | (1) Other intangibles, net includes a perpetual license right of $ 87.4 million and customer relationships of $ 7.9 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 2,606.2 | $ 2,398.5 | ||
Less: Accumulated depreciation | (1,579.4) | (1,414) | ||
Property, plant and equipment, net | [1] | 1,026.8 | 984.5 | $ 899.8 |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 1 | 1 | ||
Buildings and building improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 53.2 | 54.8 | ||
Machinery, software and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 871.7 | 697.6 | ||
Furniture and fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 586 | 540 | ||
Shop-in-shops/concession locations [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 209.8 | 230.9 | ||
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 849 | 790.3 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 35.5 | $ 83.9 | ||
[1] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | May 31, 2019 | Oct. 29, 2017 | Aug. 02, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Payment received on advance to unconsolidated affiliate | $ 0 | $ 0 | $ 6.3 | ||||
Payments made to unconsolidated affiliates | 27.7 | 0 | 14.2 | ||||
Investments in Unconsolidated Affiliates | $ 176.3 | 207.1 | |||||
PVH Legwear Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||
Payments made to unconsolidated affiliates | $ 27.7 | ||||||
PVH Australia Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Gazal and PVH Australia [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Dividends received from unconsolidated affiliates | $ 6.4 | $ 7.6 | $ 3.7 | ||||
Gazal Corporation Limited [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 22.00% | ||||||
Calvin Klein India Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 51.00% | |||||
Equity Method Investment, Change in Ownership Percentage | (1.00%) | ||||||
Proceeds from Equity Method Investment, Sale of Ownership Percentage | $ 0.4 | ||||||
Payments made to unconsolidated affiliates | 1.6 | ||||||
Tommy Hilfiger India Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Payments made to unconsolidated affiliates | 2.7 | ||||||
Tommy Hilfiger Brazil Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 41.00% | 40.00% | |||||
Notes Receivable, Related Parties | $ 12.5 | ||||||
Payment received on advance to unconsolidated affiliate | $ 6.2 | ||||||
Payments made to unconsolidated affiliates | $ 2.5 | ||||||
Tommy Hilfiger Brazil Joint Venture [Member] | Change In Ownership Percentage of Equity Method Investment [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Change in Ownership Percentage | 1.00% | ||||||
Payments made to unconsolidated affiliates | $ 0.3 | ||||||
PVH Mexico Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||
Dividends received from unconsolidated affiliates | $ 7.2 | ||||||
Karl Lagerfeld [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 8.00% |
REDEEMABLE NON-CONTROLLING IN_2
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jun. 29, 2016 | |
Non-controlling Interest [Line Items] | ||||
Redeemable Non-Controlling Interest | $ (2) | $ 0.2 | ||
Contributions from non-controlling interest | $ 0 | 0 | $ 1.7 | |
Ethiopia Joint Venture [Member] | ||||
Non-controlling Interest [Line Items] | ||||
Non-Controlling Interest, Ownership Percentage by Parent | 75.00% | |||
Redeemable Non-Controlling Interest, Equity, Fair Value | $ 0.1 | |||
Redeemable Non-Controlling Interest | $ (2) | $ 0.2 | ||
Net loss attributable to redeemable non-controlling interest | $ 2.2 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Millions | Sep. 01, 2017 | Mar. 30, 2017 | Feb. 02, 2020 | Feb. 03, 2019 |
Goodwill [Line Items] | ||||
Contingent purchase price payments, percentage of total worldwide net sales | 1.15% | |||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | $ 3,682.4 | $ 3,846.6 | ||
Accumulated impairment losses, beginning of period | (11.9) | (11.9) | ||
Goodwill, net, beginning of period | 3,670.5 | 3,834.7 | ||
Contingent purchase price payments to Mr. Calvin Klein | 1.7 | |||
Currency translation | (74.6) | (165.9) | ||
Goodwill, gross, end of period | 3,689.5 | 3,682.4 | ||
Accumulated impairment losses, end of period | (11.9) | (11.9) | ||
Goodwill, net, end of period | 3,677.6 | 3,670.5 | ||
Reclassification of goodwill to assets held for sale | 48.1 | |||
Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 780.3 | 780.2 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 780.3 | 780.2 | ||
Contingent purchase price payments to Mr. Calvin Klein | 1 | |||
Currency translation | 0.1 | (0.9) | ||
Goodwill, gross, end of period | 780.4 | 780.3 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 780.4 | 780.3 | ||
Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 909.5 | 942 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 909.5 | 942 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0.7 | |||
Currency translation | (22.5) | (33.2) | ||
Goodwill, gross, end of period | 896.1 | 909.5 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 896.1 | 909.5 | ||
Tommy Hilfiger North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 204.4 | 204.4 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 204.4 | 204.4 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | |||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 204.4 | 204.4 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 204.4 | 204.4 | ||
Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 1,529.8 | 1,661.6 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 1,529.8 | 1,661.6 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | |||
Currency translation | (52.2) | (131.8) | ||
Goodwill, gross, end of period | 1,598.3 | 1,529.8 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 1,598.3 | 1,529.8 | ||
Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 246.5 | 246.5 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 246.5 | 246.5 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | |||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 198.4 | 246.5 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 198.4 | 246.5 | ||
Reclassification of goodwill to assets held for sale | 48.1 | |||
Heritage Brands Retail [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 11.9 | 11.9 | ||
Accumulated impairment losses, beginning of period | (11.9) | (11.9) | ||
Goodwill, net, beginning of period | 0 | 0 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | |||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 11.9 | 11.9 | ||
Accumulated impairment losses, end of period | (11.9) | (11.9) | ||
Goodwill, net, end of period | 0 | $ 0 | ||
Australia Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 65.9 | |||
Australia Acquisition [Member] | Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 0 | |||
Australia Acquisition [Member] | Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 9.1 | |||
Australia Acquisition [Member] | Tommy Hilfiger North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 0 | |||
Australia Acquisition [Member] | Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 56.8 | |||
Australia Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 0 | |||
Australia Acquisition [Member] | Heritage Brands Retail [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 0 | |||
TH CSAP Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 63.9 | |||
TH CSAP Acquisition [Member] | Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 63.9 | |||
True & Co Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | $ 20.9 | |||
True & Co Acquisition [Member] | Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 5.4 | |||
True & Co Acquisition [Member] | Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 4.8 | |||
True & Co Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | $ 10.7 | |||
Belgian Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | $ 12.4 | |||
Belgian Acquisition [Member] | Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | 1.3 | |||
Belgian Acquisition [Member] | Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | $ 11.1 | |||
Perpetual License Rights [Member] | Fair Value, Nonrecurring [Member] | ||||
Goodwill [Line Items] | ||||
Long-Lived Assets | $ 203.8 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |||
Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 792.4 | $ 831.2 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (351.1) | (340.5) | |||
Finite-Lived Intangible Assets, Net | 441.3 | 490.7 | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 3,039.4 | 3,078.5 | |||
Asset Impairment Charges | 109.9 | [1] | 17.9 | $ 7.5 | |
Intangible Assets, Gross (Excluding Goodwill) | 3,831.8 | 3,909.7 | |||
Intangible Assets, Accumulated Amortization | (351.1) | (340.5) | |||
Intangible Assets, Net (Excluding Goodwill) | 3,480.7 | 3,569.2 | |||
Amortization of Intangible Assets | 39.7 | 62.8 | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||||
2020 | 36.8 | ||||
2021 | 36.6 | ||||
2022 | 34.3 | ||||
2023 | 24 | ||||
2024 | 23.6 | ||||
Tradenames [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 2,830.2 | 2,863.7 | |||
Perpetual License Rights [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | [2] | 0 | 203.8 | ||
Reacquired Perpetual License Rights [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | [3] | 209.2 | 11 | ||
Customer Relationships [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 289.9 | 307.4 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (189.2) | (186.1) | |||
Finite-Lived Intangible Assets, Net | [2],[3] | 100.7 | 121.3 | ||
Reacquired License Rights [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 502.5 | 523.8 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (161.9) | (154.4) | |||
Finite-Lived Intangible Assets, Net | 340.6 | $ 369.4 | |||
Perpetual License Rights [Member] | |||||
Intangible Assets [Line Items] | |||||
Asset Impairment Charges | 116.4 | ||||
Disposal Group, Including Discontinued Operation, Intangible Assets | 87.4 | ||||
Perpetual License Rights [Member] | Fair Value, Nonrecurring [Member] | |||||
Intangible Assets [Line Items] | |||||
Asset Impairment Charges | 116.4 | ||||
Customer-Related Intangible Assets [Member] | |||||
Intangible Assets [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Intangible Assets | 7.9 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||
Intangible Assets [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Intangible Assets | [4] | $ 95.3 | |||
[1] | Noncash impairment charge of $ 116.4 million related to the sale of the Speedo North America business is included in Other noncash loss, net. Please see Note 4 for further information. | ||||
[2] | The change from February 3, 2019 to February 2, 2020 included the intangible assets of the Company’s Speedo North America business, consisting of customer relationships of $ 7.9 million and a perpetual license right of $ 203.8 million. The Company recorded a $ 116.4 million noncash impairment charge related to the Speedo perpetual license right in the fourth quarter of 2019 in connection with the Speedo transaction. The remaining perpetual license right of $ 87.4 million and the customer relationships of $ 7.9 million were reclassified to assets held for sale in the Company’s Consolidated Balance Sheet as of February 2, 2020. Please see Note 4 , “Assets Held For Sale,” for further discussion. | ||||
[3] | The change from February 3, 2019 to February 2, 2020 included intangible assets recorded in connection with the Australia acquisition. The intangible assets as of the acquisition date included reacquired perpetual license rights of $ 204.9 million, which are indefinite-lived, and customer relationships of $ 17.0 | ||||
[4] | (1) Other intangibles, net includes a perpetual license right of $ 87.4 million and customer relationships of $ 7.9 |
DEBT Short-Term Lines of Credit
DEBT Short-Term Lines of Credit, Overdraft Facilities, Senior Secured Credit Facilities and Short-Term Revolving Credit Facilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Apr. 01, 2020 | Apr. 29, 2019 | Feb. 03, 2019 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, amount outstanding | $ 930 | |||
2016 Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, amount outstanding | $ 7.8 | |||
Short-term debt, weighted average interest rate | 4.45% | |||
2019 Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount of borrowings outstanding during the period | $ 378.4 | |||
Line of Credit Foreign Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, aggregate maximum borrowing capacity | 132 | |||
Line of credit facility, amount outstanding | $ 49.6 | $ 5.1 | ||
Short-term debt, weighted average interest rate | 2.56% | 0.21% | ||
Maximum amount of borrowings outstanding during the period | $ 99.5 | |||
Commercial Paper [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount of borrowings outstanding during the period | $ 370 | |||
Debt Instrument, Term | 397 days | |||
United States of America, Dollars | Commercial Paper and 2019 Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount of borrowings outstanding during the period | $ 567 | |||
Commercial Paper and 2019 Facilities [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, aggregate maximum borrowing capacity | $ 675 |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) $ in Millions | Feb. 02, 2020USD ($) | [1] |
Debt Instrument [Line Items] | ||
Mandatory long-term debt repayment, 2020 | $ 13.8 | |
Mandatory long-term debt repayment, 2021 | 39 | |
Mandatory long-term debt repayment, 2022 | 102.9 | |
Mandatory long-term debt repayment, 2023 | 223.4 | |
Mandatory long-term debt repayment, 2024 | $ 1,682.9 | |
[1] | A portion of the Company’s mandatory long-term debt repayments are denominated in euro and subject to changes in the exchange rate of the United States dollar against the euro. |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) € in Millions, $ in Millions, $ in Millions | Apr. 29, 2019USD ($) | Jan. 05, 2018USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 02, 2020USD ($) | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | Feb. 04, 2018EUR (€) | Jun. 30, 2021 | Apr. 01, 2020USD ($) | Feb. 02, 2020EUR (€) | Apr. 29, 2019EUR (€) | Apr. 29, 2019CAD ($) | May 19, 2016USD ($) | May 19, 2016EUR (€) | ||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, carrying amount | $ 2,707.7 | $ 2,819.4 | |||||||||||||||
Long-term Debt, Current Maturities | 13.8 | 0 | |||||||||||||||
Long-term Debt, Excluding Current Maturities | $ 2,693.9 | 2,819.4 | |||||||||||||||
Percentage of long-term debt at fixed interest rates | 55.00% | 55.00% | |||||||||||||||
Debt modification and extinguishment costs | $ 5.2 | 0 | $ 23.9 | ||||||||||||||
Line of Credit, Current | $ 930 | ||||||||||||||||
Repayments of Unsecured Debt | 70.6 | 0 | 0 | ||||||||||||||
Repayment of senior senior secured credit facilities | 1,649.3 | 0 | 0 | ||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 108.3 | 114.6 | 120.2 | ||||||||||||||
Senior notes due 2022 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Write-off of deferred debt issuance costs | $ 8.1 | ||||||||||||||||
Repayment of senior senior secured credit facilities | 0 | 0 | 715.8 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||||||||
Debt instrument, face amount | $ 700 | ||||||||||||||||
Payment of Debt Extinguishment Costs | $ 15.8 | ||||||||||||||||
Senior Debenture Due 2023 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Senior Notes | 99.7 | 99.6 | |||||||||||||||
Long-term Debt, Gross | $ 100 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||||||||||
Senior Notes Due 2024 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Senior Notes | [1] | $ 382.9 | 396.5 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | |||||||||||||||
Debt instrument, face amount | € | € 350 | ||||||||||||||||
Senior Notes Due 2027 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Senior Notes | [1] | $ 655.6 | 679.5 | ||||||||||||||
Payments of Debt Issuance Costs | 10.3 | € 8.7 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | |||||||||||||||
Debt instrument, face amount | € | € 600 | ||||||||||||||||
United States of America, Dollars | United States Federal Funds Rate [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||||||||
United States of America, Dollars | One Month Adjusted Eurocurrency Rate Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||||||||
2019 Facilities [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Letters of Credit Outstanding, Amount | $ 20.3 | ||||||||||||||||
2016 Facilities [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit, Current | 7.8 | ||||||||||||||||
2019 Facilities USD Term Loan A [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured Debt | $ 1,093.2 | ||||||||||||||||
Long-term Debt, Gross | 1,029.6 | ||||||||||||||||
2019 Facilities Euro Term Loan A [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured Debt | € | € 500 | ||||||||||||||||
Long-term Debt, Gross | € | € 493.8 | ||||||||||||||||
2019 Facilities [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum Amount of Commitment Increase | 1,500 | ||||||||||||||||
Payments of Debt Issuance Costs | 10.4 | ||||||||||||||||
Debt modification and extinguishment costs | 3.5 | ||||||||||||||||
Deferred Debt Issuance Costs | 6.9 | ||||||||||||||||
Write-off of deferred debt issuance costs | 1.7 | ||||||||||||||||
2019 Facilities [Member] | United States Dollars and Canadian Dollars [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 70 | ||||||||||||||||
2019 Facilities [Member] | Euro, British Pound, Japanese Yen, Swiss Francs, Australian dollars and other foreign currencies [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 200 | ||||||||||||||||
2019 Facilities [Member] | United States Dollars and Hong Kong Dollars [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 50 | ||||||||||||||||
2019 Facilities Term Loan A [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unsecured Debt | 1,569.5 | [1],[2] | 0 | ||||||||||||||
Term Loan A Repayment Percentage Quarters Following Refinance | 7.50% | 5.00% | 2.50% | ||||||||||||||
Repayments of Unsecured Debt | $ 70.6 | ||||||||||||||||
2019 Facilities Term Loan A [Member] | Base Rate [Member] | United States Dollars or Euros [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | ||||||||||||||||
2019 Facilities Term Loan A [Member] | One Month Adjusted Eurocurrency Rate Loan [Member] | United States Dollars or Euros [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||||||||||||||
2016 Facilities Term Loan A [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Secured Debt | $ 0 | 1,643.8 | $ 2,347.4 | ||||||||||||||
Repayment of senior senior secured credit facilities | $ 150 | $ 250 | |||||||||||||||
2016 Facilities [Member] | United States of America, Dollars | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | 475 | ||||||||||||||||
2016 Facilities [Member] | United States Dollars and Canadian Dollars [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25 | ||||||||||||||||
2016 Facilities [Member] | Euro, British Pound, Japanese Yen and Swiss Francs [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 185.9 | ||||||||||||||||
[1] | The carrying amount of the Company’s euro-denominated Term Loan A facility and senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. | ||||||||||||||||
[2] | The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was $ 1,029.6 million and € 493.8 million, respectively, as of February 2, 2020 . |
DEBT Interest Rate Swap Agreeme
DEBT Interest Rate Swap Agreements (Details) - USD ($) $ in Millions | Feb. 28, 2020 | Feb. 18, 2020 | Feb. 02, 2020 | Jun. 28, 2019 | Feb. 19, 2019 | Aug. 06, 2018 | Feb. 20, 2018 | Feb. 16, 2018 | Feb. 17, 2016 |
2020 Interest Rate Swap - 2 Year Term - August 2019 Designation [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 1.1975% | ||||||||
Derivative, Notional Amount | $ 50 | $ 0 | |||||||
2020 Interest Rate Swap - 2 Year Term - June 2019 Designation [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 1.409% | ||||||||
Derivative, Notional Amount | $ 50 | $ 0 | |||||||
2019 Interest Rate Swap - 2 Year Term - June 2019 Designation [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 1.719% | ||||||||
Derivative, Notional Amount | $ 50 | $ 50 | |||||||
2020 Interest Rate Swap - 1 Year Term [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 2.4187% | ||||||||
Derivative, Notional Amount | $ 50 | $ 0 | |||||||
2019 Interest Rate Swap - 2 Year Term - November 2018 Designation [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 2.8645% | ||||||||
Derivative, Notional Amount | $ 126.6 | $ 139.2 | |||||||
2019 Interest Rate Swap - 2 Year Term - October 2018 Designation [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 2.9975% | ||||||||
Derivative, Notional Amount | $ 103.3 | $ 115.7 | |||||||
2018 Interest Rate Swap - 30 Month Term [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 2.6825% | ||||||||
Derivative, Notional Amount | $ 50 | $ 50 | |||||||
2018 Interest Rate Swap 2 Year Term [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 1.566% | ||||||||
Derivative, Notional Amount | $ 56.5 | $ 306.5 | |||||||
2016 Interest Rate Swap [Member] | |||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 1.924% | ||||||||
Derivative, Notional Amount | $ 0 | $ 682.6 |
INCOME TAXES Domestic and Forei
INCOME TAXES Domestic and Foreign Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (441.2) | $ (5.3) | $ (102) |
Foreign | 885.2 | 780.9 | 612.2 |
Income before taxes | $ 444 | $ 775.6 | $ 510.2 |
INCOME TAXES Current and Deferr
INCOME TAXES Current and Deferred Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||||
Income Tax Disclosure [Abstract] | ||||||
Net tax benefit from write-off of deferred tax liabilities | $ 27.8 | |||||
Net Tax Benefit related to the U.S. Tax Legislation | $ 24.7 | $ 52.8 | ||||
Net Tax Benefit related to the 2019 Dutch Tax Plan | 41.1 | |||||
Income Taxes Paid, Net [Abstract] | ||||||
Income taxes paid | 133 | 138.4 | 164.6 | |||
Federal: | ||||||
Current | (30.4) | (30.5) | 51.7 | |||
Deferred | (52.6) | [1] | (53.2) | [2] | (198.3) | [2] |
State and local: | ||||||
Current | 4.3 | 4.6 | 3.5 | |||
Deferred | (16.5) | 9.6 | (7.8) | |||
Foreign: | ||||||
Current | 127.9 | 170.2 | 143.5 | |||
Deferred | (3.8) | [1] | (69.7) | [3] | (18.5) | |
Total | $ 28.9 | $ 31 | $ (25.9) | |||
[1] | Includes a $ 27.8 million benefit related to the write-off of deferred tax liabilities in connection with the pre-tax noncash impairment of the Speedo perpetual license right, primarily in the United States. Please see Note 4, “Assets Held For Sale,” for further discussion. | |||||
[2] | Includes a $24.7 million benefit in 2018 and a $52.8 million benefit in 2017 related to the U.S. Tax Legislation. | |||||
[3] | Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. |
INCOME TAXES Tax Rate Reconcili
INCOME TAXES Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |||||
Income Tax Disclosure [Abstract] | ||||||||
Statutory federal income tax rate | [1] | 21.00% | 21.00% | 33.70% | 35.00% | |||
State and local income taxes, net of federal income tax benefit | (2.40%) | 0.50% | (1.10%) | |||||
Effects of international jurisdictions, including foreign tax credits | (15.70%) | (9.50%) | (20.30%) | |||||
Change in estimates for uncertain tax positions | (11.80%) | [2] | (3.70%) | (7.50%) | ||||
Change in valuation allowance | 1.80% | (5.30%) | [3] | 11.00% | [4] | |||
One-time transition tax due to U.S. Tax Legislation | 0.00% | 0.00% | 34.00% | |||||
Remeasurement due to U.S. Tax Legislation | 0.00% | 0.20% | (51.90%) | |||||
Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) | 10.00% | 1.90% | 0.00% | |||||
Tax on Speedo transaction basis difference | 2.30% | 0.00% | 0.00% | |||||
Excess tax benefits related to stock-based compensation | (0.20%) | (0.60%) | (2.80%) | [5] | ||||
Other, net | 1.50% | (0.50%) | (0.20%) | |||||
Effective income tax rate | 6.50% | 4.00% | (5.10%) | |||||
Net Tax Benefit related to the 2019 Dutch Tax Plan | $ 41.1 | |||||||
Net Tax Benefit related to the U.S. Tax Legislation | 24.7 | $ 52.8 | ||||||
Remeasurement of net deferred tax liabilities to lower United States statutory rate due to U.S. Tax Legislation | (1.6) | 265 | ||||||
Valuation allowance recognized on foreign tax credits resulting from U.S. Tax Legislation | 38.5 | |||||||
Valuation allowance released on foreign tax credits resulting from U.S. Tax Legislation | $ (26.3) | |||||||
Transition tax on undistributed foreign earnings resulting from U.S. Tax Legislation | $ 173.7 | |||||||
International Tax Jurisdictions | 40 | |||||||
[1] | The United States statutory federal income tax rate changed from 35.0% to 21.0% , effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7% . | |||||||
[2] | Includes the settlement of a multi-year audit from an international jurisdiction. | |||||||
[3] | Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. | |||||||
[4] | Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. | |||||||
[5] | Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer. |
INCOME TAXES Deferred Tax Asset
INCOME TAXES Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Gross Deferred Tax Assets [Abstract] | ||
Tax loss and credit carryforwards | $ 232.5 | $ 230.1 |
Operating Lease Liabilities | 407.6 | 0 |
Employee compensation and benefits | 110.9 | 83.1 |
Inventories | 39.7 | 26.8 |
Accounts receivable | 20.3 | 17.1 |
Accrued expenses | 26.5 | 30.2 |
Other, net | 0 | 13.8 |
Subtotal | 837.5 | 401.1 |
Valuation allowances | (69.8) | (62.6) |
Total gross deferred tax assets, net of valuation allowances | 767.7 | 338.5 |
Gross Deferred Tax Liabilities [Abstract] | ||
Intangibles | (860.6) | (825.3) |
Operating lease right-of-use assets | (357.2) | 0 |
Property, plant and equipment | (46.2) | (33.6) |
Derivative financial instruments | (12.8) | (4.3) |
Deferred Tax Liabilities, Other | (8.7) | 0 |
Deferred Tax Liabilities, Gross | 1,285.5 | 863.2 |
Total gross deferred tax liabilities | (517.8) | $ (524.7) |
Other Data: | ||
Net operating loss carryforwards | 238.9 | |
Domestic Tax Authority [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 2.8 | |
State and Local Jurisdiction [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 47.1 | |
Foreign Tax Authority [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 15.5 | |
Federal State And Local Jurisdiction [Member] | ||
Other Data: | ||
Tax credit and other carryforwards | $ 173.5 |
INCOME TAXES Unrecognized Tax B
INCOME TAXES Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 248.3 | $ 297.1 | $ 245.6 |
Increases related to prior year tax positions | 7.7 | 13.9 | 15.4 |
Decreases related to prior year tax positions | (15.8) | (24.9) | (10.3) |
Increases related to current year tax positions | 18.2 | 25.5 | 79.7 |
Lapses in statute of limitations | (36) | (54.7) | (46.3) |
Effects of foreign currency translation | (2.5) | (8.6) | |
Effects of foreign currency translation | 13 | ||
Balance at end of year | 219.9 | 248.3 | 297.1 |
Other Uncertain Tax Position Data: | |||
Interest and Penalties - (Benefit) Expense | (15) | 12.1 | $ 0.9 |
Interest and penalties accrued in balance sheets | 25.2 | $ 44.1 | |
Minimum [Member] | |||
Other Uncertain Tax Position Data: | |||
Reasonably possible reduction in uncertain tax positions within 12 months, range | 20 | ||
Maximum [Member] | |||
Other Uncertain Tax Position Data: | |||
Reasonably possible reduction in uncertain tax positions within 12 months, range | $ 40 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Feb. 02, 2020USD ($) | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | Feb. 02, 2020EUR (€) | ||
Derivative [Line Items] | |||||
Cost of Goods Sold | $ 4,520.6 | $ 4,348.5 | $ 4,020.4 | ||
Interest expense | 120 | 120.8 | 128.5 | ||
Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 23 | 25.5 | |||
Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.4 | 0.7 | |||
Accrued Expenses [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 7.6 | 6.7 | |||
Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.5 | 2.3 | |||
Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Long-term debt, fair value | 1,178.6 | 1,098.3 | |||
Long-term debt, carrying amount | 1,038.5 | 1,076 | |||
Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 1,308.1 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1.5 | 0.1 | |||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Accrued Expenses [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.9 | 2 | |||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | 0 | |||
Cost of Sales [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Net Gain (Loss) Reclassification from AOCL to Income (Expense), Estimate of time to transfer | 12 months | ||||
Derivative Instruments, Net Gain (Loss) Reclassification from AOCL to Income (Expense), Estimated Net Amount to be Transferred | $ (29.5) | ||||
Interest Expense [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Net Gain (Loss) Reclassification from AOCL to Income (Expense), Estimate of time to transfer | 12 months | ||||
Derivative Instruments, Net Gain (Loss) Reclassification from AOCL to Income (Expense), Estimated Net Amount to be Transferred | $ (5.4) | ||||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) Recognized in Income (Expense), Net | 3.4 | (1.5) | (4.6) | ||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign currency option contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) Recognized in Income (Expense), Net | 0 | 0 | (4.3) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 55.9 | 190.1 | (218.3) | ||
Derivative Instruments, Gain (Loss) Reclassified from AOCL into Income (Expense), Effective Portion, Net | 21.7 | (10.5) | (19.8) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 21.5 | 25.4 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.4 | 0.7 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Accrued Expenses [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 6.7 | 4.7 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.5 | 2.3 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | (5.8) | (2.6) | 3.2 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.1 | 1.4 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Accrued Expenses [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 5.5 | 1.2 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.4 | 1.6 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 39.3 | 95.6 | (99.5) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 22.4 | 97.1 | (122) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 21.4 | 24 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.4 | 0.7 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Accrued Expenses [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 1.2 | 3.5 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.1 | 0.7 | |||
Cash Flow Hedging [Member] | Cost of Sales [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from AOCL into Income (Expense), Effective Portion, Net | 23.1 | (11.6) | (13.6) | ||
Cash Flow Hedging [Member] | Interest Expense [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from AOCL into Income (Expense), Effective Portion, Net | (1.4) | 1.1 | $ (6.2) | ||
Senior Notes Due 2027 [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | € | € 600 | ||||
Long-term debt, carrying amount | [1] | $ 655.6 | 679.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | |||
Senior Notes Due 2024 [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | € | € 350 | ||||
Long-term debt, carrying amount | [1] | $ 382.9 | $ 396.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | |||
[1] | The carrying amount of the Company’s euro-denominated Term Loan A facility and senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | $ 109.9 | [1] | $ 17.9 | $ 7.5 | |
Cash and cash equivalents | 503.4 | 452 | 493.9 | $ 730.1 | |
Short-term borrowings | 49.6 | 12.8 | |||
Long-term debt, carrying amount | 2,707.7 | 2,819.4 | |||
Fair Value, Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign currency forward exchange contracts, assets | 23.3 | 24.8 | |||
Interest rate swap agreements, assets | 0.1 | 1.4 | |||
Total Assets, Fair Value | 23.4 | 26.2 | |||
Foreign currency forward exchange contracts, liabilities | 2.2 | 6.2 | |||
Interest rate swap agreements, liabilities | 5.9 | 2.8 | |||
Total Liabilities | 8.1 | 9 | |||
Operating lease right-of-use assets [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived assets, carrying amount | 97.5 | ||||
Impairment of long-lived assets | 83 | ||||
Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived assets, carrying amount | 26.9 | 18.5 | 8.1 | ||
Impairment of long-lived assets | 26.9 | 17.9 | 7.5 | ||
Total Assets, Fair Value | 0 | 0.6 | 0.6 | ||
Perpetual License Rights [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 116.4 | ||||
Perpetual License Rights [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived assets, carrying amount | 203.8 | ||||
Impairment of long-lived assets | 116.4 | ||||
Total Assets, Fair Value | 87.4 | ||||
Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 226.3 | ||||
Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | 503.4 | 452 | |||
Short-term borrowings | 49.6 | 12.8 | |||
Long-term debt, carrying amount | 2,707.7 | 2,819.4 | |||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents, fair value | 503.4 | 452 | |||
Short-term borrowings, fair value | 49.6 | 12.8 | |||
Long-term debt, fair value | 2,869.7 | 2,853.7 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign currency forward exchange contracts, assets | 23.3 | 24.8 | |||
Interest rate swap agreements, assets | 0.1 | 1.4 | |||
Total Assets, Fair Value | 23.4 | 26.2 | |||
Foreign currency forward exchange contracts, liabilities | 2.2 | 6.2 | |||
Interest rate swap agreements, liabilities | 5.9 | 2.8 | |||
Total Liabilities | 8.1 | 9 | |||
Fair Value, Inputs, Level 3 [Member] | Operating lease right-of-use assets [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total Assets, Fair Value | 14.5 | ||||
Tommy Hilfiger North America [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 50 | 0.2 | 0.4 | ||
Tommy Hilfiger International [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 4 | 1.6 | 1.9 | ||
Heritage Brands Retail [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 0.1 | ||||
Corporate [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 3.1 | ||||
Calvin Klein North America [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 37.4 | 5.1 | 1.8 | ||
Calvin Klein International [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 13.1 | 8.5 | $ 3.4 | ||
Heritage Brands Wholesale [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 118.6 | $ 2.5 | |||
Selling, General and Administrative Expenses [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | 109.9 | ||||
Other noncash loss, net [Member] | Perpetual License Rights [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of long-lived assets | $ 116.4 | ||||
[1] | Noncash impairment charge of $ 116.4 million related to the sale of the Speedo North America business is included in Other noncash loss, net. Please see Note 4 for further information. |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020USD ($)plans | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions to saving and retirement plans, supplemental savings plan and defined contribution plan | $ | $ 29.9 | $ 25.4 | $ 22.1 |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Noncontributory Defined Benefit Pension Plans | 5 | ||
Non-contributory defined benefit pension plans, vesting period | 5 years | ||
SERP Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Noncontributory Defined Benefit Pension Plans | 3 | ||
Plan Benefit Payment Period | 10 years | ||
Plan benefit payment activation age | 65 | ||
Minimum age prior to employment termination | 55 | ||
Minimum Number of Years of Employment | 10 years | ||
Postretirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Noncontributory Defined Benefit Pension Plans | 2 |
RETIREMENT AND BENEFIT PLANS Be
RETIREMENT AND BENEFIT PLANS Benefit Obligations (Details) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020USD ($) | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlement loss on retirement plans | $ 0 | $ 0 | $ (9.4) |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Actuarial loss (gain) | (97.8) | (15) | $ (2.5) |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Retiree Participants | 4,000 | ||
Settlement loss on retirement plans | $ 9.4 | ||
Defined Benefit Plan, Lump Sum Settlement Payment (included in benefit payments) | 65.3 | ||
Accumulated benefit obligation | 751.3 | 598.9 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 651 | 648 | |
Service cost, net of plan expenses | 31.2 | 31.4 | |
Interest cost | 27.9 | 26 | 25.7 |
Benefit payments | (29.2) | (26) | |
Benefit payments, net of retiree contributions | 0 | 0 | |
Actuarial loss (gain) | 149.2 | (28.4) | |
Balance at end of year | 830.1 | 651 | 648 |
SERP Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 99.9 | 81.5 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 99.2 | 96.9 | |
Service cost, net of plan expenses | 5.8 | 5.8 | |
Interest cost | 4.3 | 3.9 | 3.8 |
Benefit payments | (7.9) | (6.1) | |
Benefit payments, net of retiree contributions | 0 | 0 | |
Actuarial loss (gain) | 23.1 | (1.3) | |
Balance at end of year | 124.5 | 99.2 | 96.9 |
Postretirement Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 8.4 | 10.5 | |
Service cost, net of plan expenses | 0 | 0 | |
Interest cost | 0.3 | 0.4 | 0.4 |
Benefit payments | 0 | 0 | |
Benefit payments, net of retiree contributions | (1) | (1.4) | |
Actuarial loss (gain) | 0.5 | (1.1) | |
Balance at end of year | $ 8.2 | $ 8.4 | $ 10.5 |
RETIREMENT AND BENEFIT PLANS Fa
RETIREMENT AND BENEFIT PLANS Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | $ 636.8 | [1] | $ 660.6 | |
Actual return, net of plan expenses | 112.9 | (7.8) | ||
Benefit payments | (29.2) | (26) | ||
Company contributions | 0.7 | 10 | ||
Fair value of plan assets at end of year | [1] | 721.2 | 636.8 | |
Funded status at end of year | $ (108.9) | (14.2) | ||
United States Equities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 40.00% | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | $ 170.9 | ||
Fair value of plan assets at end of year | [1],[2] | 182.2 | 170.9 | |
United States Equities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 170.9 | ||
Fair value of plan assets at end of year | [1],[2] | 182.2 | 170.9 | |
United States Equities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | 0 | 0 | |
United States Equities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | $ 0 | 0 | |
International Equities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 20.00% | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | $ 12.2 | ||
Fair value of plan assets at end of year | [1],[2] | 10.7 | 12.2 | |
International Equities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 12.2 | ||
Fair value of plan assets at end of year | [1],[2] | 10.7 | 12.2 | |
International Equities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | 0 | 0 | |
International Equities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | $ 0 | 0 | |
Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 40.00% | |||
United States equity fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | $ 58.9 | ||
Fair value of plan assets at end of year | [1],[3] | 66.3 | 58.9 | |
United States equity fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 0 | ||
Fair value of plan assets at end of year | [1],[3] | 0 | 0 | |
United States equity fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 58.9 | ||
Fair value of plan assets at end of year | [1],[3] | 66.3 | 58.9 | |
United States equity fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 0 | ||
Fair value of plan assets at end of year | [1],[3] | 0 | 0 | |
International Equity Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 126.5 | ||
Fair value of plan assets at end of year | [1],[4] | 135.1 | 126.5 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 60.3 | ||
Fair value of plan assets at end of year | [1],[4] | 65.4 | 60.3 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 66.2 | ||
Fair value of plan assets at end of year | [1],[4] | 69.7 | 66.2 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 0 | ||
Fair value of plan assets at end of year | [1],[4] | 0 | 0 | |
Government Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 70.3 | ||
Fair value of plan assets at end of year | [1],[5] | 74 | 70.3 | |
Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 70.3 | ||
Fair value of plan assets at end of year | [1],[5] | 74 | 70.3 | |
Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Corporate Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 173.7 | ||
Fair value of plan assets at end of year | [1],[5] | 225.9 | 173.7 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 173.7 | ||
Fair value of plan assets at end of year | [1],[5] | 225.9 | 173.7 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Short-term Investment Funds [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 16.7 | ||
Fair value of plan assets at end of year | [1],[6] | 18.6 | 16.7 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 0 | ||
Fair value of plan assets at end of year | [1],[6] | 0 | 0 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 16.7 | ||
Fair value of plan assets at end of year | [1],[6] | 18.6 | 16.7 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 0 | ||
Fair value of plan assets at end of year | [1],[6] | 0 | 0 | |
Total Return Mutual Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 6.3 | ||
Fair value of plan assets at end of year | [1],[7] | 6.9 | 6.3 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 6.3 | ||
Fair value of plan assets at end of year | [1],[7] | 6.9 | 6.3 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 0 | ||
Fair value of plan assets at end of year | [1],[7] | 0 | 0 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 0 | ||
Fair value of plan assets at end of year | [1],[7] | 0 | 0 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 635.5 | ||
Fair value of plan assets at end of year | [1] | 719.7 | 635.5 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 249.7 | ||
Fair value of plan assets at end of year | [1] | 265.2 | 249.7 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 385.8 | ||
Fair value of plan assets at end of year | [1] | 454.5 | 385.8 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 0 | ||
Fair value of plan assets at end of year | [1] | 0 | 0 | |
Defined Benefit Plan, Other Assets and Liabilities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[8] | 1.3 | ||
Fair value of plan assets at end of year | [1],[8] | $ 1.5 | $ 1.3 | |
[1] | The Company uses third party pricing services to determine the fair values of the financial instruments held by the pension plans. The Company obtains an understanding of the pricing services' valuation methodologies and related inputs and validates a sample of prices by reviewing prices from other sources. The Company has not adjusted any prices received from the third party pricing services. | |||
[2] | Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. | |||
[3] | Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. | |||
[4] | Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. | |||
[5] | Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. | |||
[6] | Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. | |||
[7] | Valued at the net asset value of this fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities | |||
[8] | This category includes other pension assets and liabilities such as pending trades and accrued income. |
RETIREMENT AND BENEFIT PLANS Am
RETIREMENT AND BENEFIT PLANS Amounts Recognized in Balance Sheets (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Pension Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | $ 1.7 | $ 1.8 |
Current liabilities | 0 | 0 |
Non-current liabilities | (110.6) | (16) |
Net amount recognized | (108.9) | (14.2) |
SERP Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (9.3) | (7.4) |
Non-current liabilities | (115.2) | (91.8) |
Net amount recognized | (124.5) | (99.2) |
Postretirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (1.1) | (1.1) |
Non-current liabilities | (7.1) | (7.3) |
Net amount recognized | $ (8.2) | $ (8.4) |
RETIREMENT AND BENEFIT PLANS Ne
RETIREMENT AND BENEFIT PLANS Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | $ 33.5 | $ 33.7 | $ 27.3 |
Interest cost | 27.9 | 26 | 25.7 |
Actuarial loss (gain) | 74.2 | 17.4 | (3.9) |
Expected return on plan assets | (40.3) | (40.3) | (38.6) |
Amortization of prior service cost | 0 | 0.1 | 0.1 |
Curtailment gain | 0 | 0 | (0.3) |
Settlement loss | 0 | 0 | 9.4 |
Total | 95.3 | 36.9 | 19.7 |
SERP Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | 5.8 | 5.8 | 4.5 |
Interest cost | 4.3 | 3.9 | 3.8 |
Actuarial loss (gain) | 23.1 | (1.3) | 6.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total | 33.2 | 8.4 | 14.4 |
Postretirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | 0 | 0 | 0 |
Interest cost | 0.3 | 0.4 | 0.4 |
Actuarial loss (gain) | 0.5 | (1.1) | 0.3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total | $ 0.8 | $ (0.7) | $ 0.7 |
RETIREMENT AND BENEFIT PLANS Ac
RETIREMENT AND BENEFIT PLANS Accumulated and Projected Benefit Obligations in Excess of Plan Assets (Details) $ in Millions | Feb. 02, 2020USD ($) | Feb. 03, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of plans with projected benefit obligations in excess of plan assets | 3 | 3 |
Aggregate projected benefit obligation | $ 811.9 | $ 634.7 |
Aggregate fair value of related plan assets | $ 701.3 | $ 618.8 |
Number of plans with accumulated benefit obligations in excess of plan assets | 3 | 2 |
Aggregate accumulated benefit obligation | $ 733.3 | $ 38.5 |
Aggregate fair value of related plan assets | $ 701.3 | $ 38 |
RETIREMENT AND BENEFIT PLANS We
RETIREMENT AND BENEFIT PLANS Weighted Average Rate Assumptions (Details) | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Pension and SERP Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate | 3.15% | 4.35% | 4.08% |
Postretirement Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate | 2.70% | 4.16% | 3.91% |
Pension Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Rate of increase in compensation levels | 4.23% | 4.24% | 4.24% |
Expected long-term rate of return on assets | 6.25% | 6.50% | 6.25% |
RETIREMENT AND BENEFIT PLANS Ex
RETIREMENT AND BENEFIT PLANS Expected Future Benefit Payments (Details) $ in Millions | Feb. 02, 2020USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2020 | $ 37.2 |
2021 | 39 |
2022 | 41.1 |
2023 | 42.3 |
2024 | 44.2 |
2025-2029 | 240.6 |
SERP Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2020 | 9.2 |
2021 | 10.1 |
2022 | 13.3 |
2023 | 12.2 |
2024 | 10 |
2025-2029 | 59.1 |
Postretirement Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2020 | 1 |
2021 | 1 |
2022 | 0.9 |
2023 | 0.8 |
2024 | 0.7 |
2025-2029 | $ 2.7 |
STOCK-BASED COMPENSATION Stock
STOCK-BASED COMPENSATION Stock Incentive Plan (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3.9 | |||
Stock-based compensation expense | $ 56.1 | $ 56.2 | $ 44.9 | |
Recognized income tax benefits associated with stock-based compensation expense | 6.9 | 8.9 | 8.8 | |
Tax deduction associated with stock plan award transactions | 8.8 | 13.2 | 27.2 | |
Net excess tax benefit from awards under stock plans | $ 0.9 | $ 4.9 | $ 15.4 | |
Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1.1 | |||
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.8) | |||
Other Assets [Member] | Accounting Standards Update 2016-09 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0.3 |
STOCK-BASED COMPENSATION Stoc_2
STOCK-BASED COMPENSATION Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in Number of Shares Available to be Granted by Each Option Award | 1 | ||
Vesting period (in years) | 4 years | ||
Beginning vesting term | one year after the date of grant | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Unrecognized pre-tax compensation expense | $ 4,400,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 1 year 9 months 18 days | ||
Service-based stock option activity [Roll Forward] | |||
Service-based stock options, outstanding, beginning of period | 791,000 | ||
Service-based stock options, granted | 169,000 | ||
Service-based stock options, exercised | 31,000 | ||
Service-based stock options, cancelled | 27,000 | ||
Service-based stock options, outstanding, end of period | 902,000 | 791,000 | |
Service-based stock options, exercisable | 589,000 | ||
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 107.81 | ||
Service-based stock options, granted, weighted average price per option | 111.92 | ||
Service-based stock options, exercised, weighted average price per option | 77.92 | ||
Service-based stock options, cancelled, weighted average price per option | 119.83 | ||
Service-based stock options, outstanding, weighted average price per option, end of period | 109.25 | $ 107.81 | |
Service-based stock options, exercisable, weighted average price per option | $ 106.11 | ||
Service-based stock options, outstanding, weighted average remaining contractual life (in years), end of period | 5 years 10 months 24 days | 6 years 1 month 6 days | |
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 4 years 8 months 12 days | ||
Service-based stock options, outstanding, aggregate intrinsic value, beginning of period | $ 6,568,000 | ||
Service-based stock options, outstanding, aggregate intrinsic value, end of period | 871,000 | $ 6,568,000 | |
Service-based stock options, exercisable, aggregate intrinsic value | 871,000 | ||
Options, additional disclosures: | |||
Service-based stock options, granted, aggregate grant date fair value | 6,300,000 | 4,400,000 | $ 4,800,000 |
Service-based stock options, vested, aggregate grant date fair value | 6,500,000 | 6,500,000 | 7,200,000 |
Service-based stock options, exercised, total intrinsic value of options | $ 1,300,000 | $ 10,900,000 | $ 56,900,000 |
Black-Scholes-Merton Model [Member] | |||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||
Weighted average risk-free interest rate | 2.15% | 2.78% | 2.10% |
Weighted average expected stock option term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average Company volatility | 29.88% | 26.92% | 29.46% |
Expected annual dividends per share | $ 0.15 | $ 0.15 | $ 0.15 |
Weighted average grant date fair value per stock option | $ 37.14 | $ 51.66 | $ 33.50 |
STOCK-BASED COMPENSATION - RSU
STOCK-BASED COMPENSATION - RSU and PSU Activity (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in Number of Shares Available to be Granted by Each RSU or PSU award | 2 | ||
Restricted Stock Units (RSUs) Granted Since 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Beginning vesting term, awards granted in 2016 | one year after the date of grant | ||
Restricted Stock Units (RSUs) Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
First RSU Vesting Installments, Nonemployee Directors, Number of Yrs Following Grant Date | one year after the date of grant | ||
Performance Share Units (PSU) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 194,000 | ||
Other than options, granted number | 72,000 | ||
Other than options, change due to market condition achieved above target number | 10,000 | ||
Other than options, vested number | 67,000 | ||
Other than options, cancelled number | 8,000 | ||
Other than options, non-vested number, end of period | 181,000 | 194,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 106.76 | ||
Weighted average grant date fair value | 119.46 | ||
Other than options, vested, weighted average grant date fair value | 87.16 | ||
Other than options, change due to market condition achieved above target, weighted average grant date fair value | 87.16 | ||
Other than options, cancelled, weighted average grant date fair value | 117.27 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 119.63 | $ 106.76 | |
Other than options, granted, aggregate grant date fair value | $ 8,600,000 | $ 7,000,000 | $ 7,000,000 |
Other than options, vested, aggregate grant date fair value | 6,700,000 | $ 4,600,000 | |
Unrecognized pre-tax compensation expense | $ 2,400,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 2 years 1 month 6 days | ||
Percentage of Final Number of Shares Based Upon the Company's Absolute Stock Price Growth | 50.00% | ||
Percent of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50.00% | ||
Restricted Stock Units (RSUs) [Member] | |||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 847,000 | ||
Other than options, granted number | 612,000 | ||
Other than options, vested number | 350,000 | ||
Other than options, cancelled number | 113,000 | ||
Other than options, non-vested number, end of period | 996,000 | 847,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 122.97 | ||
Weighted average grant date fair value | 110.03 | ||
Other than options, vested, weighted average grant date fair value | 116.25 | ||
Other than options, cancelled, weighted average grant date fair value | 123.93 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 117.28 | $ 122.97 | |
Other than options, granted, aggregate grant date fair value | $ 67,300,000 | $ 53,500,000 | 46,000,000 |
Other than options, vested, aggregate grant date fair value | 40,700,000 | $ 35,100,000 | $ 28,700,000 |
Unrecognized pre-tax compensation expense | $ 73,700,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 1 year 9 months 18 days | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Beginning vesting term, awards granted prior to 2016 | two years after the date of grant | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | First Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 25.00% | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | Second Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 25.00% | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | Third Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 50.00% | ||
Monte Carlo model [Member] | Performance Share Units (PSU) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction of Liquidity Discount | 6.20% | 7.09% | 12.67% |
Risk-free interest rate | 2.13% | 2.62% | 1.49% |
Expected Company volatility | 30.25% | 29.78% | 31.29% |
Expected annual dividends per share | $ 0.15 | $ 0.15 | $ 0.15 |
Non-vested activity [Roll Forward] | |||
Weighted average grant date fair value | $ 119.46 | $ 159.53 | $ 96.81 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Equity [Abstract] | |||
Cash dividends paid, per share | $ 0.15 | $ 0.15 | $ 0.15 |
STOCKHOLDERS' EQUITY Stock Repu
STOCKHOLDERS' EQUITY Stock Repurchase Program (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Repurchased | 3,554,603 | 2,370,193 | 2,300,657 |
Stock Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||
Stock Repurchase Program, Number of Shares Repurchased | 3,400,000 | 2,200,000 | 2,200,000 |
Stock Repurchase Program, Amount Purchased During Period | $ 325 | $ 300.1 | $ 250.4 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 683.3 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |||||
Net gain (loss) on net investment hedges, net of tax | $ (29.7) | $ (73.1) | $ 70.8 | ||||
Change in accumulated other comprehensive loss | |||||||
Balance at beginning of year | (507.9) | ||||||
Other comprehensive (loss) income | (132.2) | (186.4) | 391.4 | ||||
Balance at end of year | (640.1) | (507.9) | |||||
Foreign currency translation adjustments | |||||||
Net gain (loss) on net investment hedges, net of tax | 29.7 | 73.1 | (70.8) | ||||
Change in accumulated other comprehensive loss | |||||||
Balance at beginning of year | (537.6) | (249.4) | (737.7) | ||||
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (128.1) | [2] | (288.2) | [2] | 490.5 | [3] |
Less: Amounts reclassified from AOCL, net of tax | 0 | 0 | 0 | ||||
Other comprehensive (loss) income | (128.1) | (288.2) | 490.5 | ||||
Impact of the U.S. Tax Legislation | [4] | (2.2) | |||||
Balance at end of year | (665.7) | (537.6) | (249.4) | ||||
Net unrealized and realized gain (loss) on effective cash flow hedges | |||||||
Change in accumulated other comprehensive loss | |||||||
Balance at beginning of year | 29.7 | (72.1) | 26.9 | ||||
Other comprehensive (loss) income before reclassifications, net of tax | 15.9 | 92 | (116) | ||||
Less: Amounts reclassified from AOCL, net of tax | 20 | (9.8) | (16.9) | ||||
Other comprehensive (loss) income | (4.1) | 101.8 | (99.1) | ||||
Impact of the U.S. Tax Legislation | [4] | 0.1 | |||||
Balance at end of year | 25.6 | 29.7 | (72.1) | ||||
Total | |||||||
Net gain (loss) on net investment hedges, net of tax | (29.7) | (73.1) | 70.8 | ||||
Change in accumulated other comprehensive loss | |||||||
Balance at beginning of year | (507.9) | (321.5) | (710.8) | ||||
Other comprehensive (loss) income before reclassifications, net of tax | (112.2) | (196.2) | 374.5 | ||||
Less: Amounts reclassified from AOCL, net of tax | 20 | (9.8) | (16.9) | ||||
Other comprehensive (loss) income | (132.2) | (186.4) | 391.4 | ||||
Impact of the U.S. Tax Legislation | [4] | (2.1) | |||||
Balance at end of year | $ (640.1) | $ (507.9) | $ (321.5) | ||||
[1] | Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $ 29.7 million, $ 73.1 million and $ (70.8) million in 2019, 2018 and 2017, respectively. | ||||||
[2] | Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. | ||||||
[3] | Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. | ||||||
[4] | The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Net gain (loss) on net investment hedges, net of tax | $ (29.7) | $ (73.1) | $ 70.8 |
Income tax expense (benefit) | |||
Reclassification from AOCL, Current Period, Tax | 1.7 | (0.7) | (2.9) |
Foreign Exchange Forward Inventory Purchases [Member] | Cost of Sales [Member] | |||
Reclassification from AOCL, Current Period, before Tax | 23.1 | (11.6) | (13.6) |
Interest Rate Swap [Member] | Interest Expense [Member] | |||
Reclassification from AOCL, Current Period, before Tax | (1.4) | 1.1 | (6.2) |
Net unrealized and realized gain (loss) on effective cash flow hedges | |||
Reclassification from AOCL, Current Period, Net of Tax | $ 20 | $ (9.8) | $ (16.9) |
LEASES (Details)
LEASES (Details) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020USD ($)stores | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lessee Lease Agreeements Signed but Not Yet Commenced Payments Due | $ 45 | ||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Proceeds from Sale of Buildings | $ 59.4 | $ 0 | $ 3.4 |
Sale Leaseback Transaction, Transaction Costs, Investing Activities | $ 1 | ||
Renewal Options | 3 | ||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 10 months 2 days | ||
Minimum | 465.3 | 455.2 | |
Operating Leases, Rent Expense, Contingent Rentals | 128.6 | 103 | |
Less: Sublease rental income | (1.4) | (1.8) | |
Total Rent Expense | 592.5 | $ 556.4 | |
Capital Leases, Future Minimum Payments, Net Present Value [Abstract] | |||
2019 | 5.6 | ||
2020 | 4.4 | ||
2021 | 3.8 | ||
2022 | 1.8 | ||
2023 | 0.6 | ||
Thereafter | 2.5 | ||
Total minimum lease payments | 18.7 | ||
Less: Amount representing interest | (2.2) | ||
Present value of net minimum capital lease payments | 16.5 | ||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2019 | 402.4 | ||
2020 | 371.9 | ||
2021 | 314 | ||
2022 | 255 | ||
2023 | 189.9 | ||
Thereafter | 618.7 | ||
Total minimum lease payments | 2,151.9 | ||
Operating and Capital Leases, Total Future Minimum Payments [Abstract] | |||
2019 | $ 441.3 | 408 | |
2020 | 376.3 | ||
2021 | 317.8 | ||
2022 | 256.8 | ||
2023 | 190.5 | ||
Thereafter | 621.2 | ||
Total minimum lease payments | $ 2,170.6 | ||
Finance Lease, Weighted Average Remaining Lease Term | 4 years 4 months 13 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.25% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 3.11% | ||
Company-operated free-standing retail store locations [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of Stores | 1,830 | ||
Number of Countries in which Entity Operates | stores | 35 | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years | ||
Maximum [Member] | Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Maximum [Member] | Warehouses, distribution centers, showrooms, office space, and Ethiopia factory [Member] [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 20 years | ||
Maximum [Member] | Company-operated free-standing retail store locations [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | ||
Minimum [Member] | Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Minimum [Member] | Warehouses, distribution centers, showrooms, office space, and Ethiopia factory [Member] [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Minimum [Member] | Company-operated free-standing retail store locations [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 3 years |
LEASES Additional Information (
LEASES Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Operating and Capital Leased Assets [Line Items] | ||
Minimum | $ 465.3 | $ 455.2 |
Total minimum lease payments | 2,170.6 | |
Capital leases, aggregate future minimum rentals to be received | 0.6 | |
Operating leases, aggregate future minimum rentals to be received | 0.2 | |
Assets under capital lease, gross book value | 37 | |
Accumulated amortization of assets under capital leases | 21.6 | |
Operating Leases, Rent Expense, Contingent Rentals | 128.6 | 103 |
Operating Leases, Rent Expense, Sublease Rentals | 1.4 | 1.8 |
Total Rent Expense | $ 592.5 | $ 556.4 |
LEASES Components of Net Lease
LEASES Components of Net Lease Cost (Details) $ in Millions | 12 Months Ended |
Feb. 02, 2020USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 5.3 |
Interest on lease liabilities | 0.5 |
Total finance lease cost | 5.8 |
Operating Lease, Cost | 459.5 |
Short-term Lease, Cost | 25.9 |
Variable Lease, Cost | 143.8 |
Less: sublease income | (0.4) |
Total net lease cost | $ 634.6 |
LEASES Supplemental Balance She
LEASES Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 1,675.8 | $ 0 |
Finance Lease, Right-of-Use Asset | 12.6 | |
Lease, Right-of-Use Asset | 1,688.4 | |
Current portion of operating lease liabilities | 363.5 | 0 |
Current portion of finance lease liabilities | 4.6 | |
Lease, Liability, Current | 368.1 | |
Long-Term Portion of Operating Lease Liabilities | 1,532 | $ 0 |
Long-Term Portion of Finance Lease Liabilities | 9.9 | |
Lease, Liability, Noncurrent | $ 1,541.9 |
LEASES Supplemental Cash Flow I
LEASES Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 12 Months Ended |
Feb. 02, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 472.8 |
Operating cash floes from finance leases | 0.5 |
Financing cash flows from finance leases | 5.5 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 441.3 |
Right-of-use asset obtained in exchange for new finance lease liabilities | $ 3.6 |
LEASES Maturities of Lease Liab
LEASES Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Leases [Abstract] | ||
2020, Operating | $ 436.2 | |
2021, Operating | 399.2 | |
2022, Operating | 323.5 | |
2023, Operating | 244.2 | |
2024, Operating | 187.1 | |
Thereafter, Operating | 622.5 | |
Total lease payments, Operating | 2,212.7 | |
Less: Interest, Operating | (317.2) | |
Operating Lease, Liability | 1,895.5 | |
2020, Finance | 5.1 | |
2021, Finance | 4.5 | |
2022, Finance | 2.5 | |
2023, Finance | 1 | |
2024, Finance | 0.5 | |
Thereafter, Finance | 2.3 | |
Total lease payments, Finance | 15.9 | |
Less: Interest, Finance | (1.4) | |
Total lease liabilities, Finance | 14.5 | |
2020, Total | 441.3 | $ 408 |
2021, Total | 403.7 | |
2022, Total | 326 | |
2023, Total | 245.2 | |
2024, Total | 187.6 | |
Thereafter, Total | 624.8 | |
Total lease payments, Total | 2,228.6 | |
Less: Interest, Total | (318.6) | |
Total lease liabilities, Total | $ 1,910 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) - Calvin Klein Restructuring [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | ||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | $ 28.1 | ||
Exit activity costs incurred | 102.9 | $ 40.7 | |
Restructuring and Related Costs, Incurred Costs Excluding Long-Lived Asset Impairments and Inventory Markdowns | 51.8 | ||
Exit activity costs paid | 72.2 | ||
Total liability, end of period | 7.7 | 28.1 | |
Restructuring and Related Cost, Cost Incurred to Date | 143.6 | ||
Severance, termination benefits and other employee costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 25.8 | ||
Exit activity costs incurred | 25.6 | 27.3 | |
Exit activity costs paid | 44.9 | ||
Total liability, end of period | 6.5 | 25.8 | |
Restructuring and Related Cost, Cost Incurred to Date | 52.9 | ||
Long-lived asset impairments [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | [1] | 38.2 | 6.9 |
Restructuring and Related Cost, Cost Incurred to Date | [1] | 45.1 | |
Lease/contract termination and other costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 2.3 | ||
Exit activity costs incurred | 26.2 | 4.3 | |
Exit activity costs paid | 27.3 | ||
Total liability, end of period | 1.2 | 2.3 | |
Restructuring and Related Cost, Cost Incurred to Date | 30.5 | ||
Inventory markdowns [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 12.9 | 2.2 | |
Restructuring and Related Cost, Cost Incurred to Date | 15.1 | ||
Calvin Klein North America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total costs expected to be incurred | 59.5 | ||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 66 | 18.9 | |
Calvin Klein North America [Member] | Exit activity costs excluding inventory markdowns | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 18.9 | ||
Calvin Klein North America [Member] | Inventory markdowns [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 6.5 | ||
Calvin Klein International [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total costs expected to be incurred | 30.5 | ||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 36.9 | $ 21.8 | |
Calvin Klein International [Member] | Exit activity costs excluding inventory markdowns | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 19.6 | ||
Calvin Klein International [Member] | Inventory markdowns [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | $ 6.4 | ||
[1] | Includes the impact of the closure of the flagship store on Madison Avenue in New York, New York in the first quarter of 2019. |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to PVH Corp. | $ 417.3 | $ 746.4 | $ 537.8 |
Weighted average common shares outstanding for basic net income per common share | 74.2 | 76.5 | 77.6 |
Weighted average impact of dilutive securities | 0.4 | 0.8 | 1 |
Total shares for diluted net income per common share | 74.6 | 77.3 | 78.6 |
Basic net income per common share attributable to PVH Corp. | $ 5.63 | $ 9.75 | $ 6.93 |
Diluted net income per common share attributable to PVH Corp. | $ 5.60 | $ 9.65 | $ 6.84 |
Weighted average potentially dilutive securities | 1.1 | 0.4 | 0.5 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Number Of Potentially Dilutive Shares That Could Be Issued Upon Vesting | 0.3 | 0.3 | 0.1 |
NONCASH INVESTING AND FINANCI_2
NONCASH INVESTING AND FINANCING TRANSACTIONS (Details) - USD ($) $ in Millions | May 31, 2019 | Apr. 20, 2018 | Jan. 05, 2018 | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 |
Nonmonetary Transaction [Line Items] | ||||||
Capital Expenditures Incurred but Not yet Paid | $ 39.5 | $ 43.7 | $ 41.9 | |||
Lease Obligation Incurred | $ 6 | 3.6 | ||||
Treasury Stock, Shares Purchased Not Yet Settled | 0.5 | $ 1.5 | ||||
Australia Acquisition [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.00% | |||||
Business Ownership Percentage | 100.00% | |||||
Pre-Acquisition Accounts Receivable | $ 2.2 | |||||
Gain to write-up equity investments in joint ventures to fair value | 113.1 | |||||
Geoffrey Beene Acquisition [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Noncash Or Part Noncash Acquisition, Prepaid Royalties Assumed | $ 0.7 | |||||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 0.4 | |||||
Gazal Corporation Limited [Member] | Australia Acquisition [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Gain to write-up equity investments in joint ventures to fair value | 23.6 | |||||
PVH Australia [Member] | Australia Acquisition [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Gain to write-up equity investments in joint ventures to fair value | 89.5 | |||||
2016 Facilities [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Write-off of deferred debt issuance costs | 1.7 | |||||
Senior notes due 2022 [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Write-off of deferred debt issuance costs | $ 8.1 | |||||
Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | ||||||
Nonmonetary Transaction [Line Items] | ||||||
Redeemable Noncontrolling Interest, Equity, Common, Redemption Value | 33.8 | |||||
Redeemable Noncontrolling Interest, Equity, Common, Fair Value | $ 26.2 | |||||
Noncontrolling Interest, Change in Redemption Value | $ (8.6) |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Thousands | May 31, 2019 | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||||
Segment Reporting Information [Line Items] | ||||||||
Number of Reportable Segments | 6 | |||||||
Percentage of company's revenue by one single customer | 10.00% | 10.00% | 10.00% | |||||
Revenue: | ||||||||
Total revenue | [1],[2] | $ 9,909,000 | $ 9,656,800 | $ 8,914,800 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 558,700 | 891,700 | 632,400 | ||||
Settlement loss on retirement plans | 0 | 0 | (9,400) | |||||
Actuarial loss on retirement and benefit plans | (97,800) | (15,000) | (2,500) | |||||
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 82,900 | |||||||
Amortization of Intangible Assets | 39,700 | 62,800 | ||||||
Debt modification and extinguishment costs | 5,200 | 0 | 23,900 | |||||
Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 1,647,900 | 1,669,200 | 1,567,800 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 93,500 | [4],[5] | 233,800 | 97,000 | [6],[7],[8] | ||
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 34,700 | |||||||
Tommy Hilfiger Office Relocation Expense | 19,200 | |||||||
Tommy Hilfiger Store Closures | 54,900 | |||||||
Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 3,063,800 | 2,675,300 | 2,325,400 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 468,200 | [9] | 377,100 | [10] | 221,500 | [6],[7],[10] | |
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 48,200 | |||||||
Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 1,669,700 | 1,793,300 | 1,707,800 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 99,800 | [5],[11] | 166,700 | [12] | 184,000 | ||
Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 1,998,100 | 1,937,900 | 1,753,800 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 153,300 | [5],[9],[11] | 211,500 | [12] | 226,500 | ||
Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 1,271,900 | 1,317,400 | 1,297,400 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | (84,900) | [9],[13] | 83,300 | 96,700 | |||
Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [1] | 257,600 | 263,700 | 262,600 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 3,000 | 7,400 | 7,600 | ||||
Corporate [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3],[14] | (174,200) | [9],[15],[16] | (188,100) | (200,900) | [17],[18] | ||
Settlement loss on retirement plans | 9,400 | |||||||
Actuarial loss on retirement and benefit plans | 97,800 | 15,000 | 2,500 | |||||
Debt modification and extinguishment costs | 6,200 | 23,900 | ||||||
Li & Fung Trading Limited [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 54,200 | |||||||
Li & Fung Trading Limited [Member] | Tommy Hilfiger North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 31,300 | |||||||
Li & Fung Trading Limited [Member] | Tommy Hilfiger International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 22,900 | |||||||
Calvin Klein Restructuring [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | 102,900 | 40,700 | ||||||
Calvin Klein Restructuring [Member] | Calvin Klein North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | 66,000 | 18,900 | ||||||
Calvin Klein Restructuring [Member] | Calvin Klein International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | 36,900 | 21,800 | ||||||
Australia and TH CSAP Acquisitions [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Acquisition Related Costs | 19,300 | |||||||
Australia and TH CSAP Acquisitions [Member] | Tommy Hilfiger International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Acquisition Related Costs | 11,100 | |||||||
Australia and TH CSAP Acquisitions [Member] | Calvin Klein International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Acquisition Related Costs | 6,000 | |||||||
Australia and TH CSAP Acquisitions [Member] | Heritage Brands Wholesale [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Acquisition Related Costs | 1,800 | |||||||
Australia and TH CSAP Acquisitions [Member] | Corporate [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Acquisition Related Costs | 2,500 | |||||||
Australia Acquisition [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Gain to write-up equity investments in joint ventures to fair value | $ 113,100 | |||||||
Australia Acquisition [Member] | Corporate [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Gain to write-up equity investments in joint ventures to fair value | 113,100 | |||||||
Australia Acquisition [Member] | Gazal and PVH Australia [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Combination, Costs Related to Equity Investment | 2,100 | |||||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Amortization of Intangible Assets | 23,600 | 26,900 | ||||||
Socks and hosiery transaction [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 59,800 | |||||||
Socks and hosiery transaction [Member] | Tommy Hilfiger North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 7,500 | |||||||
Socks and hosiery transaction [Member] | Calvin Klein North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 25,500 | |||||||
Socks and hosiery transaction [Member] | Calvin Klein International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Loss on Contract Termination | 26,800 | |||||||
Net sales | ||||||||
Revenue: | ||||||||
Total revenue | 9,400,000 | 9,154,200 | 8,439,400 | |||||
Net sales | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,540,200 | 1,574,300 | 1,482,200 | |||||
Net sales | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 2,994,200 | 2,599,700 | 2,268,000 | |||||
Net sales | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,467,000 | 1,599,900 | 1,511,300 | |||||
Net sales | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,896,700 | 1,827,900 | 1,645,000 | |||||
Net sales | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,248,500 | 1,293,200 | 1,274,400 | |||||
Net sales | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 253,400 | 259,200 | 258,500 | |||||
Royalty revenue | ||||||||
Revenue: | ||||||||
Total revenue | 379,900 | 375,900 | 366,300 | |||||
Royalty revenue | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 84,100 | 76,200 | 68,900 | |||||
Royalty revenue | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 49,800 | 52,700 | 47,800 | |||||
Royalty revenue | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 148,900 | 143,600 | 146,400 | |||||
Royalty revenue | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 74,100 | 78,900 | 80,000 | |||||
Royalty revenue | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 19,200 | 20,500 | 19,500 | |||||
Royalty revenue | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 3,800 | 4,000 | 3,700 | |||||
Advertising and other revenue | ||||||||
Revenue: | ||||||||
Total revenue | 129,100 | 126,700 | 109,100 | |||||
Advertising and other revenue | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 23,600 | 18,700 | 16,700 | |||||
Advertising and other revenue | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 19,800 | 22,900 | 9,600 | |||||
Advertising and other revenue | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 53,800 | 49,800 | 50,100 | |||||
Advertising and other revenue | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 27,300 | 31,100 | 28,800 | |||||
Advertising and other revenue | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 4,200 | 3,700 | 3,500 | |||||
Advertising and other revenue | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 400 | $ 500 | $ 400 | |||||
Speedo Transaction [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Noncash loss to write-down assets held for sale | $ 142,000 | |||||||
[1] | Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. | |||||||
[2] | No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . | |||||||
[3] | Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. | |||||||
[4] | Income before interest and taxes for 2019 included costs of $ 54.9 million incurred in connection with the TH U.S. store closures, primarily consisting of noncash lease asset impairments. Please see Note 12 , “ Fair Value Measurements ,” for further discussion. | |||||||
[5] | Income before interest and taxes for 2019 included costs of $ 59.8 million in connection with agreements the Company entered into in 2019 to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses (the “Socks and Hosiery transaction”) in order to consolidate the socks and hosiery businesses for all Company brands in North America in a newly formed joint venture, PVH Legwear, which began operations in December 2019, and to bring in-house the international Calvin Klein socks and hosiery wholesale businesses. Such costs were included in the Company’s segments as follows: $ 7.5 million in Tommy Hilfiger North America, $ 25.5 million in Calvin Klein North America and $ 26.8 | |||||||
[6] | Income before interest and taxes for 2017 included costs of $ 54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). Such costs were included in the Company’s segments as follows: $ 31.3 million in Tommy Hilfiger North America and $ 22.9 million in Tommy Hilfiger International. | |||||||
[7] | Income before interest and taxes for 2017 included costs of $ 82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $ 34.7 million in Tommy Hilfiger North America and $ 48.2 million in Tommy Hilfiger International. | |||||||
[8] | Income before interest and taxes for 2017 included costs of $ 19.2 | |||||||
[9] | Income (loss) before interest and taxes for 2019 included costs of $ 19.3 million in connection with the Australia and TH CSAP acquisitions, primarily consisting of noncash valuation adjustments, and one-time costs of $ 2.1 million recorded on the Company’s equity investments in Gazal and PVH Australia prior to the Australia acquisition closing. Such costs were included in the Company’s segments as follows: $ 11.1 million in Tommy Hilfiger International, $ 6.0 million in Calvin Klein International, $ 1.8 million in Heritage Brands Wholesale and $ 2.5 million in corporate expenses not allocated to any reportable segments. Please see Note 3, “ Acquisitions ,” for further discussion. | |||||||
[10] | Income before interest and taxes for 2018 and 2017 included costs of $ 23.6 million and $ 26.9 | |||||||
[11] | Income before interest and taxes for 2019 included costs of $ 102.9 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 66.0 million in Calvin Klein North America and $ 36.9 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs ,” for further discussion. | |||||||
[12] | Income before interest and taxes for 2018 included costs of $ 40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 18.9 million in Calvin Klein North America and $ 21.8 million in Calvin Klein International. Please see Note 18 , “ Exit Activity Costs | |||||||
[13] | Loss before interest and taxes for 2019 included a noncash loss of $ 142.0 million in connection with the Speedo transaction. Please see Note 4, “Assets Held For Sale,” for further discussion. | |||||||
[14] | Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investments in Gazal (prior to the Australia acquisition closing) and Karl Lagerfeld, and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans, and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $ 97.8 million, $ 15.0 million and $ 2.5 million in 2019 , 2018 and 2017 , respectively. | |||||||
[15] | Loss before interest and taxes for 2019 included a noncash gain of $ 113.1 million to write up the Company’s equity investments in Gazal and PVH Australia to fair value in connection with the Australia acquisition. Please see Note 3 , “ Acquisitions ,” for further discussion. | |||||||
[16] | Loss before interest and taxes for 2019 included costs of $ 6.2 million related to the refinancing of the Company’s senior credit facilities. Please see Note 9 , “ Debt ,” for further discussion. | |||||||
[17] | Loss before interest and taxes for 2017 included costs of $ 23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 9 , “ Debt ,” for further discussion. | |||||||
[18] | Loss before interest and taxes for 2017 included costs of $ 9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 13 , “ Retirement and Benefit Plans ,” for further discussion. |
SEGMENT DATA Revenue by Distrib
SEGMENT DATA Revenue by Distribution Channel (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1],[2] | $ 9,909 | $ 9,656.8 | $ 8,914.8 |
Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,400 | 9,154.2 | 8,439.4 | |
Net sales | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,066.9 | 4,969.6 | 4,504.3 | |
Net sales | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,333.1 | 4,184.6 | 3,935.1 | |
Royalty revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 379.9 | 375.9 | 366.3 | |
Advertising and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 129.1 | $ 126.7 | $ 109.1 | |
[1] | Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. | |||
[2] | No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . |
SEGMENT DATA Assets, Depreciati
SEGMENT DATA Assets, Depreciation and Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | |||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | [3] | $ 13,631 | [1],[2] | $ 11,863.7 | $ 11,885.7 | ||
Depreciation and Amortization | 323.8 | 334.8 | 324.9 | ||||
Identifiable capital expenditures | [4] | 341 | 381.3 | 364.4 | |||
Capital expenditures incurred but not yet paid | 39.5 | 43.7 | 41.9 | ||||
Operating Lease, Right-of-Use Asset | 1,675.8 | 0 | |||||
Operating Lease, Liability | 1,895.5 | ||||||
Retained earnings | (4,753) | (4,350.1) | |||||
Property, plant and equipment, net | [5] | 1,026.8 | 984.5 | 899.8 | |||
Total revenue | [6],[7] | 9,909 | 9,656.8 | 8,914.8 | |||
Tommy Hilfiger North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 1,599 | 1,330.5 | 1,276.5 | ||||
Depreciation and Amortization | 40.6 | 37.9 | 45.1 | ||||
Identifiable capital expenditures | 41.7 | 56.1 | 82 | [8] | |||
Total revenue | [6] | 1,647.9 | 1,669.2 | 1,567.8 | |||
Tommy Hilfiger International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 4,888.6 | 3,949.3 | 4,047.3 | ||||
Depreciation and Amortization | 119.7 | 133.9 | [9] | 124.5 | [9] | ||
Identifiable capital expenditures | 139.6 | 143.9 | 126.7 | ||||
Total revenue | [6] | 3,063.8 | 2,675.3 | 2,325.4 | |||
Calvin Klein North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 1,932.3 | 1,817.9 | 1,836.9 | ||||
Depreciation and Amortization | 38.6 | 41.5 | 43.8 | ||||
Identifiable capital expenditures | 30.3 | 36 | 36.8 | ||||
Total revenue | [6] | 1,669.7 | 1,793.3 | 1,707.8 | |||
Calvin Klein International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 3,428.9 | 3,114.9 | 3,138 | ||||
Depreciation and Amortization | 91.9 | 90.6 | 83.1 | ||||
Identifiable capital expenditures | 83.3 | 102.7 | 96.6 | ||||
Total revenue | [6] | 1,998.1 | 1,937.9 | 1,753.8 | |||
Heritage Brands Wholesale [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 1,075.3 | 1,178.1 | 1,123.5 | ||||
Depreciation and Amortization | 15.1 | 14.9 | 14.3 | ||||
Identifiable capital expenditures | 18.6 | 15.8 | 8 | ||||
Total revenue | [6] | 1,271.9 | 1,317.4 | 1,297.4 | |||
Heritage Brands Retail [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 128.4 | 86.6 | 81.6 | ||||
Depreciation and Amortization | 6.2 | 5.6 | 5.3 | ||||
Identifiable capital expenditures | 6.5 | 8.5 | 4.2 | ||||
Total revenue | [6] | 257.6 | 263.7 | 262.6 | |||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Identifiable Assets | 578.5 | 386.4 | 381.9 | ||||
Depreciation and Amortization | 11.7 | 10.4 | 8.8 | ||||
Identifiable capital expenditures | 21 | 18.3 | 10.1 | ||||
Domestic [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Property, plant and equipment, net | 525.8 | 500.5 | 449.2 | ||||
Total revenue | 4,275 | 4,481.3 | 4,290.1 | ||||
Canada [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Property, plant and equipment, net | 25.3 | 28.8 | 30 | ||||
Total revenue | 505.5 | 528.8 | 512.2 | ||||
Europe [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Property, plant and equipment, net | 375.6 | 362.7 | 325.5 | ||||
Total revenue | 3,657.3 | 3,362.1 | 2,907.2 | ||||
Asia [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Property, plant and equipment, net | 87.6 | [10] | 73.4 | 73.8 | |||
Total revenue | 1,353.4 | [11] | 1,163.7 | 1,059.3 | |||
Other foreign [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Property, plant and equipment, net | 12.5 | 19.1 | 21.3 | ||||
Total revenue | $ 117.8 | 120.9 | 146 | ||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Amortization | 24.6 | $ 26.8 | |||||
Accounting Standards Update 2016-02 [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | 1,700 | ||||||
Operating Lease, Liability | 1,900 | ||||||
Retained earnings | $ 3.1 | ||||||
[1] | Identifiable assets in 2019 included the impact of the Australia acquisition. Please see Note 3, “Acquisitions,” for a further discussion. | ||||||
[2] | Identifiable assets include the impact related to the adoption of accounting guidance for leases in 2019 using the modified retrospective approach applied as of the period of adoption with a cumulative-effect adjustment to opening retained earnings and as such, prior periods have not been restated. Upon adoption, the Company (i) recognized operating lease right-of-use assets of $ 1.7 billion and lease liabilities of $ 1.9 billion, (ii) recorded a cumulative-effect adjustment to retained earnings of $ 3.1 million and (iii) recorded other reclassification adjustments within its Consolidated Balance Sheet related to, among other things, deferred rent. Please see Note 17, “Leases,” for further discussion. | ||||||
[3] | Identifiable assets included the impact of changes in foreign currency exchange rates. | ||||||
[4] | Capital expenditures in 2019 included $ 39.5 million of accruals that will not be paid until 2020. Capital expenditures in 2018 included $ 43.7 million of accruals that were not paid until 2019 . Capital expenditures in 2017 included $ 41.9 million of accruals that were not paid until 2018 . | ||||||
[5] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. | ||||||
[6] | Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. | ||||||
[7] | No single customer accounted for more than 10% of the Company’s revenue in 2019 , 2018 or 2017 . | ||||||
[8] | Capital expenditures in 2017 included expenditures related to the relocation of the Company’s Tommy Hilfiger office in New York, New York. | ||||||
[9] | Depreciation and amortization in 2018 and 2017 included $ 24.6 million and $ 26.8 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition, which became fully amortized in 2018. | ||||||
[10] | The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. | ||||||
[11] | The Company completed the Australia acquisition in the second quarter of 2019. Please see Note 3 , “ Acquisitions ,” for further discussion. |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 29, 2023 | Feb. 02, 2020 | |
Sale Of Bass [Member] | ||
Guarantor Obligations [Line Items] | ||
Expiration Year of Bass Guarantee | 2022 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3.4 | |
CK India [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 11.2 | |
PVH Japan [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 5.3 |
OTHER COMMENTS Accruals (Detail
OTHER COMMENTS Accruals (Details) - USD ($) $ in Millions | Feb. 02, 2020 | Feb. 03, 2019 |
Accrued Bonuses | $ 41.1 | $ 99.4 |
OTHER COMMENTS Asset Retirement
OTHER COMMENTS Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2020 | Feb. 03, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of year | $ 32.3 | $ 27.1 |
Business acquisitions | 1.4 | 0 |
Liabilities incurred | 3.9 | 7.4 |
Liabilities settled (payments) | (2.2) | (1.7) |
Accretion expense | 0.4 | 0.4 |
Revisions in estimated cash flows | 0.4 | (0.1) |
Currency translation adjustment | (0.5) | (0.8) |
Balance at end of year | $ 35.7 | $ 32.3 |
OTHER COMMENTS Additional Infor
OTHER COMMENTS Additional Information (Details) - Wuxi Jinmao Foreign Trade Co. [Member] - USD ($) $ in Millions | 12 Months Ended | 46 Months Ended | 72 Months Ended | ||
Feb. 02, 2020 | Feb. 03, 2019 | Sep. 30, 2026 | Nov. 28, 2022 | Nov. 29, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan Receivable from Supplier | $ 13.4 | $ 13.8 | $ 13.8 | ||
Loans Receivable, Fixed Interest Rate | 4.50% | ||||
Loans Receivable, Basis Spread on Variable Rate, During Period | 4.00% | ||||
Proceeds from Collection of Loan Receivable from Supplier | $ 0.4 | $ 0.2 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Jul. 01, 2019 | May 31, 2019 | Apr. 01, 2020 | Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 |
Subsequent Event [Line Items] | |||||||
Line of Credit, Current | $ 930 | ||||||
Cash and cash equivalents | $ 503.4 | $ 452 | $ 493.9 | $ 730.1 | |||
Australia Acquisition [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash consideration | $ 124.7 | ||||||
TH CSAP Acquisition [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash consideration | $ 74.3 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 02, 2020 | Feb. 03, 2019 | Feb. 04, 2018 | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Valuation allowance released on foreign tax credits resulting from U.S. Tax Legislation | $ (26.3) | |||||
Valuation allowance recognized on foreign tax credits resulting from U.S. Tax Legislation | $ 38.5 | |||||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | $ 21.6 | 21.1 | 15 | |||
Additions Charged to Costs and Expenses | 5.7 | 14.2 | 7.5 | |||
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [1],[2] | 6.2 | 13.7 | 1.4 | ||
Balance at End of Period | 21.1 | 21.6 | 21.1 | |||
Allowance or Accrual for Operational Chargebacks and Customer Markdowns [Member] | ||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | 226.8 | 271 | 289.5 | |||
Additions Charged to Costs and Expenses | 529.3 | 403.8 | 498.2 | |||
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [1] | 535.9 | 448 | 516.7 | ||
Balance at End of Period | 220.2 | 226.8 | 271 | |||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | 62.6 | 106.3 | 43.9 | |||
Additions Charged to Costs and Expenses | 17.1 | 12.9 | 64.3 | [3] | ||
Additions Charged to Other Accounts | 0 | 0 | 1.9 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [1] | 9.9 | 56.6 | [4] | 3.8 | |
Balance at End of Period | $ 69.8 | $ 62.6 | $ 106.3 | |||
[1] | Includes changes due to foreign currency translation. | |||||
[2] | Principally accounts written off as uncollectible, net of recoveries. | |||||
[3] | Includes the recognition of a $ 38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. | |||||
[4] | Includes the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. |