Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 23, 2016 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ABERCROMBIE & FITCH CO /DE/ | ||
Entity Central Index Key | 1,018,840 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 30, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 67,585,850 | ||
Entity Public Float | $ 1,366,862,497 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 3,518,680 | $ 3,744,030 | $ 4,116,897 |
Cost of sales, exclusive of depreciation and amortization | 1,361,137 | 1,430,460 | 1,541,462 |
Gross profit | 2,157,543 | 2,313,570 | 2,575,435 |
Stores and distribution expense | 1,604,214 | 1,703,051 | 1,907,687 |
Marketing, general and administrative expense | 470,321 | 458,820 | 481,784 |
Restructuring (benefit) charge | (1,598) | 8,431 | 81,500 |
Asset impairment | 18,209 | 44,988 | 46,715 |
Other operating income, net | (6,441) | (15,239) | (23,074) |
Operating income | 72,838 | 113,519 | 80,823 |
Interest expense, net | 18,248 | 14,365 | 7,546 |
Income before taxes | 54,590 | 99,154 | 73,277 |
Income tax expense | 16,031 | 47,333 | 18,649 |
Net income | 38,559 | 51,821 | 54,628 |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to A&F | $ 35,576 | $ 51,821 | $ 54,628 |
Net income per share attributable to A&F | |||
Basic | $ 0.52 | $ 0.72 | $ 0.71 |
Diluted | $ 0.51 | $ 0.71 | $ 0.69 |
Weighted-average shares outstanding | |||
Basic | 68,880 | 71,785 | 77,157 |
Diluted | 69,417 | 72,937 | 78,666 |
Dividends declared per share | $ 0.80 | $ 0.80 | $ 0.80 |
Other comprehensive loss | |||
Foreign currency translation | $ (22,516) | $ (77,929) | $ (12,683) |
Derivative financial instruments, net of tax | (8,523) | 15,266 | 5,054 |
Other comprehensive loss | (31,039) | (62,663) | (7,629) |
Comprehensive income (loss) | 7,520 | (10,842) | 46,999 |
Comprehensive income attributable to noncontrolling interests | 2,983 | 0 | 0 |
Comprehensive income (loss) attributable to A&F | $ 4,537 | $ (10,842) | $ 46,999 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and equivalents | $ 588,578 | $ 520,708 |
Receivables | 56,868 | 52,910 |
Inventories, net | 436,701 | 460,794 |
Deferred income taxes, net | 0 | 13,986 |
Other current assets | 96,833 | 116,574 |
Total current assets | 1,178,980 | 1,164,972 |
Property and equipment, net | 894,178 | 967,001 |
Other assets | 359,881 | 373,194 |
Total assets | 2,433,039 | 2,505,167 |
Current liabilities: | ||
Accounts payable | 184,175 | 141,685 |
Accrued expenses | 321,237 | 282,736 |
Short-term portion of deferred lease credits | 23,303 | 26,629 |
Income taxes payable | 5,988 | 32,804 |
Short-term portion of borrowings, net | 0 | 2,102 |
Total current liabilities | 534,703 | 485,956 |
Long-term liabilities: | ||
Long-term portion of deferred lease credits | 89,256 | 106,393 |
Long-term portion of borrowings, net | 286,235 | 291,310 |
Leasehold financing obligations | 47,440 | 50,521 |
Other liabilities | 179,683 | 181,286 |
Total long-term liabilities | 602,614 | 629,510 |
Stockholders' equity | ||
Class A Common Stock - $0.01 par value: 150,000 shares authorized and 103,300 shares issued at each of January 30, 2016 and January 31, 2015 | 1,033 | 1,033 |
Paid-in capital | 407,029 | 434,137 |
Retained earnings | 2,530,196 | 2,550,673 |
Accumulated other comprehensive loss, net of tax | (114,619) | (83,580) |
Treasury stock, at average cost: 35,952 and 33,948 shares at January 30, 2016 and January 31, 2015, respectively | (1,532,576) | (1,512,562) |
Total Abercrombie & Fitch Co. stockholders' equity | 1,295,722 | 1,389,701 |
Noncontrolling interests | 4,659 | 0 |
Total stockholders' equity | 1,291,063 | 1,389,701 |
Total liabilities and stockholders' equity | $ 2,433,039 | $ 2,505,167 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Stockholders' equity | ||
Treasury Stock shares, at Average Cost | 35,952,000 | 33,948,000 |
Common Stock, shares issued | 103,300,000 | 103,300,000 |
Common Class A | ||
Stockholders' equity | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Paid-in capital | Noncontrolling interest | Retained earnings | Accumulated other comprehensive loss | Treasury stock |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | ||||||
Beginning Balance at Feb. 02, 2013 | $ 1,818,268 | $ 1,033 | $ 403,271 | $ 2,567,261 | $ (13,288) | $ (1,140,009) | |
Beginning balance, shares outstanding at Feb. 02, 2013 | 78,445 | 24,855 | |||||
Net income attributable to noncontrolling interests | 0 | ||||||
Net income attributable to A&F | 54,628 | 54,628 | |||||
Purchase of common stock | (115,806) | $ (115,806) | |||||
Purchase of common stock, shares | (2,383) | 2,383 | |||||
Dividends | (61,923) | (61,923) | |||||
Share-based compensation issuances and exercises | (7,757) | (19,363) | (3,696) | $ 15,302 | |||
Share-based compensation issuances and exercises, shares | 340 | (340) | |||||
Tax effect of share-based compensation issuances and exercises | (3,804) | (3,804) | |||||
Share-based compensation expense | 53,516 | 53,516 | |||||
Net change in unrealized gains or losses on derivative financial instruments | 5,054 | 5,054 | |||||
Foreign currency translation | (12,683) | (12,683) | |||||
Ending Balance at Feb. 01, 2014 | 1,729,493 | $ 1,033 | 433,620 | 2,556,270 | (20,917) | $ (1,240,513) | |
Ending balance, shares outstanding at Feb. 01, 2014 | 76,402 | 26,898 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | ||||||
Net income attributable to noncontrolling interests | 0 | ||||||
Net income attributable to A&F | 51,821 | 51,821 | |||||
Purchase of common stock | (285,038) | $ (285,038) | |||||
Purchase of common stock, shares | (7,324) | 7,324 | |||||
Dividends | (57,362) | (57,362) | |||||
Share-based compensation issuances and exercises | (4,951) | (17,884) | (56) | $ 12,989 | |||
Share-based compensation issuances and exercises, shares | 274 | (274) | |||||
Tax effect of share-based compensation issuances and exercises | (4,626) | (4,626) | |||||
Share-based compensation expense | 23,027 | 23,027 | |||||
Net change in unrealized gains or losses on derivative financial instruments | 15,266 | 15,266 | |||||
Foreign currency translation | (77,929) | (77,929) | |||||
Ending Balance at Jan. 31, 2015 | 1,389,701 | $ 1,033 | 434,137 | 2,550,673 | (83,580) | $ (1,512,562) | |
Ending balance, shares outstanding at Jan. 31, 2015 | 69,352 | 33,948 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | |||||
Total Abercrombie & Fitch Co. stockholders' equity | 1,389,701 | ||||||
Net income attributable to noncontrolling interests | 2,983 | ||||||
Net income attributable to A&F | 35,576 | 35,576 | |||||
Purchase of common stock | (50,033) | $ (50,033) | |||||
Purchase of common stock, shares | (2,461) | 2,461 | |||||
Dividends | (55,145) | (55,145) | |||||
Share-based compensation issuances and exercises | (8,109) | (37,220) | (908) | $ 30,019 | |||
Share-based compensation issuances and exercises, shares | 457 | (457) | |||||
Tax effect of share-based compensation issuances and exercises | (18,247) | (18,247) | |||||
Share-based compensation expense | 28,359 | 28,359 | |||||
Net change in unrealized gains or losses on derivative financial instruments | (8,523) | (8,523) | |||||
Foreign currency translation | (22,516) | (22,516) | |||||
Contributions from noncontrolling interests, net | 1,676 | 1,676 | |||||
Ending Balance at Jan. 30, 2016 | 1,291,063 | $ 1,033 | $ 407,029 | $ 2,530,196 | $ (114,619) | $ (1,532,576) | |
Ending balance, shares outstanding at Jan. 30, 2016 | 67,348 | 35,952 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 4,659 | $ 4,659 | |||||
Total Abercrombie & Fitch Co. stockholders' equity | $ 1,295,722 |
Consolidated Statement of Stoc6
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends declared (in dollars per share) | $ 0.80 | $ 0.80 | $ 0.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating activities | |||
Net income | $ 38,559 | $ 51,821 | $ 54,628 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 213,680 | 226,421 | 235,240 |
Asset impairment | 18,209 | 47,084 | 84,655 |
Loss on disposal | 11,082 | 5,794 | 16,909 |
Amortization of deferred lease credits | (28,619) | (38,437) | (45,895) |
Provision for (Benefit from) deferred income taxes | 7,469 | 1,676 | (41,263) |
Share-based compensation | 28,359 | 23,027 | 53,516 |
Changes in assets and liabilities | |||
Inventories, net | 21,253 | 62,854 | (103,304) |
Accounts payable and accrued expenses | 51,050 | (37,394) | (73,749) |
Lessor construction allowances | 11,082 | 13,182 | 20,523 |
Income taxes | (45,027) | (34,659) | (55,456) |
Other assets | 7,967 | 6,888 | 44,138 |
Other liabilities | (25,123) | (15,777) | (14,449) |
Net cash provided by operating activities | 309,941 | 312,480 | 175,493 |
Investing activities | |||
Purchases of property and equipment | (143,199) | (174,624) | (163,924) |
Proceeds from sale of property and equipment | 11,109 | 0 | 0 |
Other investing activities | 9,523 | (450) | (9,937) |
Net cash used for investing activities | (122,567) | (175,074) | (173,861) |
Financing activities | |||
Purchase of treasury stock | (50,033) | (285,038) | (115,806) |
Repayments of borrowings | (6,000) | (195,750) | (15,000) |
Proceeds from borrowings | 0 | 357,000 | 150,000 |
Other financing activities | 4,303 | (303) | 1,898 |
Dividends paid | (55,145) | (57,362) | (61,923) |
Net cash used for financing activities | (106,875) | (181,453) | (40,831) |
Effect of exchange rates on cash | (12,629) | (35,361) | (4,190) |
Net increase (decrease) in cash and equivalents | 67,870 | (79,408) | (43,389) |
Cash and equivalents, beginning of period | 520,708 | 600,116 | 643,505 |
Cash and equivalents, end of period | 588,578 | 520,708 | 600,116 |
Significant non-cash investing activities | |||
Change in accrual for construction in progress | 12,859 | 6,525 | 10,820 |
Supplemental information | |||
Cash paid for interest | 16,060 | 18,609 | 4,565 |
Cash paid for income taxes, net of refunds | $ 48,702 | $ 74,685 | $ 116,312 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a specialty retailer that operates stores and direct-to-consumer operations. Through these channels, the Company sells a broad array of products, including: casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters and outerwear; personal care products; and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. The Company operates stores in North America, Europe, Asia and the Middle East and direct-to-consumer operations in North America, Europe and Asia that serve its customers throughout the world. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its assets, liabilities, results of operations and cash flows. The Company has interests in a United Arab Emirates business venture and in a Kuwait business venture with Majid al Futtaim Fashion L.L.C. ("MAF"), each of which meets the definition of a variable interest entity (“VIE”). The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with MAF's portion of net income presented as net income attributable to noncontrolling interests ("NCI") in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) and MAF's portion of equity presented as NCI in the Consolidated Balance Sheets. The fifty-two week periods ended January 30, 2016 and January 31, 2015 include the correction of certain immaterial errors relating to prior periods. Amounts recorded out-of-period for the fifty-two week period ended January 30, 2016 included a reduction to pre-tax income of $2.0 million and an unrelated tax benefit of $3.2 million . The effect of these corrections increased net income attributable to A&F for the fifty-two weeks ended January 30, 2016 by $1.6 million . Amounts recorded out-of-period for the fifty-two week period ended January 31, 2015 included a reduction to pre-tax income of $2.9 million and an unrelated tax benefit of $0.4 million . The effect of these corrections decreased net income attributable to A&F for the fifty-two weeks ended January 31, 2015 by $2.2 million . The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to “Fiscal 2015 ” represent the fifty-two week fiscal year ended January 30, 2016 ; to “Fiscal 2014 ” represent the fifty-two week fiscal year ended January 31, 2015 ; and to “Fiscal 2013 ” represent the fifty-two week fiscal year ended February 1, 2014 . In addition, all references herein to “Fiscal 2016 ” represent the fifty-two week fiscal year that will end on January 28, 2017 . Use of estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. Cash and equivalents Cash and equivalents include amounts on deposit with financial institutions, United States treasury bills, and other investments, primarily held in money market accounts, with original maturities of less than three months . Restricted cash Any cash that is legally restricted from use is recorded in Other Assets on the Consolidated Balance Sheets. The restricted cash balance was $20.6 million and $14.8 million on January 30, 2016 and January 31, 2015 , respectively. Restricted cash includes various cash deposits with international banks that are used as collateral for customary non-debt banking commitments and deposits into trust accounts to conform to standard insurance security requirements. Receivables Receivables primarily include credit card receivables, construction allowances, value added tax (“VAT”) receivables and other tax credits or refunds. As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit card receivables. Construction allowances are recorded for certain store lease agreements for improvements completed by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those goods are sold. Inventories, net Inventories are valued at the lower of cost or market on a weighted-average cost basis. The Company reduces the carrying value of inventory through a lower of cost or market adjustment, the impact of which is reflected in cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income (Loss). The lower of cost or market reserve is based on an analysis of historical experience, composition and aging of the inventory and management's judgment regarding future demand and market conditions. Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each period that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink reserve accordingly. See Note 4, “ INVENTORIES, NET, ” for further discussion. Other current assets Other current assets include prepaid rent, current store supplies, derivative contracts and other prepaids. Property and equipment Depreciation and amortization of property and equipment are computed for financial reporting purposes on a straight-line basis using the following service lives: Category of Property and Equipment Service Lives Information technology 3 - 7 years Furnitures, fixtures and equipment 3 - 15 years Leasehold improvements 3 - 15 years Other property and equipment 3 - 20 years Buildings 30 years Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter. The cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets are capitalized. Long-lived assets, primarily comprised of leasehold improvements, furniture, fixtures and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. These include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, other than temporary adverse market conditions and store closure or relocation decisions. On at least a quarterly basis, the Company reviews for indicators of impairment at the individual store level, the lowest level for which cash flows are identifiable. Stores that display an indicator of impairment are subjected to an impairment assessment. The Company’s impairment assessment requires management to make assumptions and judgments related, but not limited, to management's expectations for future operations and projected cash flows. The key assumptions used in the Company's undiscounted future cash flow models include sales, gross margin and, to a lesser extent, operating expenses. An impairment loss would be recognized when these undiscounted future cash flows are less than carrying amount of the asset group. In the circumstance of impairment, the loss would be measured as the excess of the carrying amount of the asset group over its fair value. The key assumptions used in estimating the fair value of impaired assets may include projected cash flows and discount rate. See Note 5, “ PROPERTY AND EQUIPMENT, NET, ” for further discussion. The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years. Income taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary differences are expected to reverse. Inherent in the determination of the Company's income tax liability and related deferred income tax balances are certain judgments and interpretations of enacted tax law and published guidance with respect to applicability to the Company's operations. The Company is subject to audit by taxing authorities, usually several years after tax returns have been filed, and the taxing authorities may have differing interpretations of tax laws. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt income, the settlement of tax audits and changes in tax legislation and/or regulations. At the beginning of the fourth quarter of Fiscal 2015, the Company restructured its international operations to support its omnichannel initiatives. As a result of the restructuring, the Company no longer believes that future net income as of the date of the restructuring will be indefinitely reinvested and as such is providing a deferred U.S. income tax liability for the additional taxes due upon a future repatriation. See Note 10, “ INCOME TAXES, ” for a discussion regarding the Company’s policies for uncertain tax positions. Foreign currency translation and transactions The functional currencies of the Company’s foreign subsidiaries are generally the respective local currencies in the countries in which they operate. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars (the reporting currency) at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in foreign currencies are translated into U.S. Dollars at historical exchange rates. Revenues and expenses denominated in foreign currencies are translated into U.S. Dollars at the monthly average exchange rate for the period. Gains and losses resulting from foreign currency transactions are included in the results of operations; whereas, translation adjustments and inter-company loans of a long-term investment nature are reported as an element of Other Comprehensive Income (Loss). Foreign currency transactions resulted in a loss of $1.5 million for Fiscal 2015 , a loss of $2.0 million for Fiscal 2014 and a gain of $2.9 million for Fiscal 2013 . Derivative instruments See Note 14, “ DERIVATIVE INSTRUMENTS. ” Stockholders’ equity At January 30, 2016 and January 31, 2015 , there were 150.0 million shares of A&F’s Class A Common Stock, $0.01 par value, authorized, of which 67.3 million and 69.4 million were outstanding at January 30, 2016 and January 31, 2015 , respectively, and 106.4 million shares of Class B Common Stock, $0.01 par value, authorized, of which none were outstanding at January 30, 2016 and January 31, 2015 . Holders of Class A Common Stock generally have identical rights to holders of Class B Common Stock, except holders of Class A Common Stock are entitled to one vote per share while holders of Class B Common Stock are entitled to three votes per share on all matters submitted to a vote of stockholders. Revenue recognition The Company recognizes store sales at the time the customer takes possession of the merchandise. Direct-to-consumer sales are recorded based on an estimated date for customer receipt of merchandise, which is based on shipping terms and historical delivery transit times. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as net sales and the related direct shipping and handling costs are classified as stores and distribution expense in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Sales are recorded net of an allowance for estimated returns, associate discounts, and promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience. The sales return reserve was $8.9 million , $9.5 million and $8.0 million at January 30, 2016 , January 31, 2015 and February 1, 2014 , respectively. The Company sells gift cards in its stores and through direct-to-consumer operations. The Company accounts for gift cards sold to customers by recognizing a liability at the time of sale. Gift cards sold to customers do not expire or lose value over periods of inactivity. The liability remains on the Company’s books until the Company recognizes income from gift cards. Income from gift cards is recognized at the earlier of redemption by the customer (recognized as net sales) or when the Company determines that the likelihood of redemption is remote, referred to as gift card breakage (recognized as other operating income). The Company determines the probability of the gift card being redeemed to be remote based on historical redemption patterns. The gift card liability was $36.4 million and $36.9 million at January 30, 2016 and January 31, 2015 , respectively. The Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company recognized in other operating income gift card breakage of $4.7 million , $5.8 million and $8.8 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The Company does not include tax amounts collected as part of the sales transaction in its net sales results. Cost of sales, exclusive of depreciation and amortization Cost of sales, exclusive of depreciation and amortization, is primarily comprised of cost incurred to ready inventory for sale, including product costs, freight, and import cost, as well as provisions for reserves for shrink and lower of cost or market. Gains and losses associated with foreign currency exchange contracts related to hedging of inventory purchases are also recognized in cost of sales, exclusive of depreciation and amortization when the inventory being hedged is sold. Stores and distribution expense Stores and distribution expense includes store payroll, store management, rent, utilities and other landlord expenses, depreciation and amortization, repairs and maintenance and other store support functions, as well as direct-to-consumer expense and distribution center (“DC”) expense. Shipping and handling costs, including costs incurred to store, move and prepare merchandise for shipment, and costs incurred to physically move merchandise to customers, associated with direct-to-consumer operations, were $115.0 million , $108.1 million and $93.4 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Handling costs, including costs incurred to store, move and prepare merchandise for shipment to stores, were $44.5 million , $52.2 million and $53.9 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. These amounts are recorded in stores and distribution expense in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Costs incurred to physically move merchandise to stores is recorded in cost of sales, exclusive of depreciation and amortization in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Marketing, general & administrative expense Marketing, general and administrative expense includes: photography and social media; store marketing; home office compensation, except for those departments included in stores and distribution expense; information technology; outside services such as legal and consulting; relocation; recruiting; samples; and travel expenses. Restructuring charge Restructuring charge consists of exit costs and other costs associated with the reorganization of the Company's operations, including employee termination costs, lease contract termination costs, impairment of assets, and any other qualifying exit costs. Costs associated with exit or disposal activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company's best estimates. Other operating income, net Other operating income, net included income of $2.2 million , $10.2 million and $9.0 million related to insurance recoveries for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively; and income of $4.7 million , $5.8 million and $8.8 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively, related to gift card balances whose likelihood of redemption has been determined to be remote. Advertising costs Advertising costs are comprised of in-store photography, e-mail distribution and other digital direct advertising and other media advertising and are reported on the Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising costs related specifically to direct-to-consumer operations are expensed as incurred as a component of stores and distribution expense. The production of in-store photography and signage are expensed when the marketing campaign commences as a component of marketing, general and administrative expense. All other advertising costs are expensed as incurred as a component of marketing, general and administrative expense. The Company recognized $80.7 million , $84.6 million and $68.1 million in advertising expense in Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Leased facilities The Company leases property for its stores under operating leases. Lease agreements may contain construction allowances, rent escalation clauses and/or contingent rent provisions. Annual store rent is comprised of a fixed minimum amount and/or contingent rent based on a percentage of sales. For construction allowances, the Company records a deferred lease credit on the Consolidated Balance Sheets and amortizes the deferred lease credit as a reduction of rent expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) over the term of the lease. For scheduled rent escalation clauses during the lease term, the Company records minimum rental expense on a straight-line basis over the term of the lease on the Consolidated Statements of Operations and Comprehensive Income (Loss). The difference between rent expense and the amounts paid under the lease, less amounts attributable to the repayment of construction allowances recorded as deferred rent, is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. The term over which the Company amortizes construction allowances and minimum rental expenses on a straight-line basis begins on the date of initial possession, which is generally when the Company enters the space and begins construction. Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets, and the corresponding rent expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) on a ratable basis over the measurement period when it is determined that achieving the specified levels during the fiscal year is probable. In addition, most leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. A summary of rent expense follows: (in thousands) 2015 2014 2013 Store rent: Fixed minimum (1) $ 404,836 $ 432,794 $ 464,937 Contingent 10,161 8,886 8,624 Deferred lease credits amortization (28,619 ) (38,437 ) (45,899 ) Total store rent expense 386,378 403,243 427,662 Buildings, equipment and other 3,849 4,619 4,987 Total rent expense $ 390,227 $ 407,862 $ 432,649 (1) Includes lease termination fees of $3.3 million , $12.4 million and $39.2 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Fiscal 2015 includes a benefit of $1.6 million related to better than expected lease exit terms associated with the closure of the Gilly Hicks stand-alone stores. Fiscal 2014 and Fiscal 2013 include lease termination fees of $6.8 million and $39.1 million , respectively, related to the Gilly Hicks restructuring. At January 30, 2016 , the Company was committed to non-cancelable leases with remaining terms of one to 15 years. Excluded from the obligations below are portions of lease terms that are currently cancelable at the Company's discretion without condition. While included in the obligations below, in many instances the Company has options to terminate certain leases if stated sales volume levels are not met or the Company ceases operations in a given country, which may be subject to lease termination policies. A summary of operating lease commitments, including leasehold financing obligations, under non-cancelable leases follows: (in thousands) Fiscal 2016 $ 388,501 Fiscal 2017 $ 327,244 Fiscal 2018 $ 240,877 Fiscal 2019 $ 193,747 Fiscal 2020 $ 155,732 Thereafter $ 423,303 Leasehold financing obligations In certain lease arrangements, the Company is involved in the construction of a building and is deemed to be the owner of the construction project. In those instances, the Company records an asset for the amount of the total project costs, including the portion funded by the landlord, and an amount related to the value attributed to the pre-existing leased building in property and equipment, net, and a corresponding financing obligation in leasehold financing obligations, on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company allocates a portion of its rent obligation to the assets which are owned for accounting purposes as a reduction of the financing obligation and interest expense. As of January 30, 2016 and January 31, 2015 , the Company had $47.4 million and $50.5 million , respectively, of long-term liabilities related to leasehold financing obligations. Total interest expense related to landlord financing obligations was $5.3 million , $6.2 million and $6.6 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Store pre-opening expenses Pre-opening expenses related to new store openings are expensed as incurred and are reflected as a component of "stores and distribution expense." Design and development costs Costs to design and develop the Company’s merchandise are expensed as incurred and are reflected as a component of “marketing, general and administrative expense.” Net income per share Net income per basic and diluted share is computed based on the weighted-average number of outstanding shares of common stock. The following table presents weighted-average shares outstanding and anti-dilutive shares: (in thousands) 2015 2014 2013 Shares of common stock issued 103,300 103,300 103,300 Weighted-average treasury shares (34,420 ) (31,515 ) (26,143 ) Weighted-average — basic shares 68,880 71,785 77,157 Dilutive effect of share-based compensation awards 537 1,152 1,509 Weighted-average — diluted shares 69,417 72,937 78,666 Anti-dilutive shares (1) 8,967 6,144 4,630 (1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income per diluted share because the impact would have been anti-dilutive. Share-based compensation See Note 13, “ SHARE-BASED COMPENSATION .” Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could affect the Company's financial statements: Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Standards adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs This standard amends ASC 835, Interest—Imputation of Interest. The amendment provides guidance on the financial statement presentation of debt issuance costs as a direct reduction of a liability when associated with a liability. February 1, 2015 The adoption of this guidance impacted the Company's consolidated financial statements by approximately $0.6 million. ASU 2015-15, Simplifying the Presentation of Debt Issuance Costs This standard amends ASC 835, Interest—Imputation of Interest. The amendment provides guidance on the financial statement presentation of debt issuance costs associated with line-of-credit arrangements as an asset regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. August 2, 2015 The adoption of this guidance did not have any impact on the Company's consolidated financial statements. ASU 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes This standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. November 1, 2015 The adoption of this standard resulted in the prospective reclassification of all current deferred tax assets and liabilities to noncurrent in the Company's consolidated balance sheet. Standards not yet adopted ASU 2014-09, Revenue from Contracts with Customers This standard supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)." The new ASC guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. February 4, 2018 The Company is currently evaluating the potential impact of this standard. ASU 2014-15 , Presentation of Financial Statements—Going Concern This standard requires, for each annual and interim reporting period, an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. January 30, 2016* The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. ASU 2015-11, Simplifying the Measurement of Inventory This standard amends ASC 330, Inventory . This amendment applies to inventory measured using first-in, first-out (FIFO) or average cost. Under this amendment, inventory should be measured at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 29, 2017* The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. ASU 2016-02, Leases This standard supersedes the leasing requirements in "Leases (Topic 840)." The new ASC guidance requires an entity to recognize lease assets and lease liabilities, classified as operating leases, on the balance sheet and disclose key leasing information that depicts the lease rights and obligations of an entity. Febuary 4, 2019* The Company is currently evaluating the potential impact of this standard. * Early adoption is permitted. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is 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. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows: • Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date. • Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly. • Level 3—inputs to the valuation methodology are unobservable. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The three levels of the hierarchy and the distribution within it of the Company’s assets and liabilities, measured at fair value on a recurring basis, were as follows: Assets and Liabilities at Fair Value as of January 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 311,349 $ — $ — $ 311,349 Derivative financial instruments — 4,166 — 4,166 Total assets measured at fair value $ 311,349 $ 4,166 $ — $ 315,515 Assets and Liabilities at Fair Value as of January 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 122,047 $ — $ — $ 122,047 Derivative financial instruments — 10,293 — 10,293 Total assets measured at fair value $ 122,047 $ 10,293 $ — $ 132,340 The level 2 assets and liabilities consist of derivative financial instruments, primarily forward foreign currency exchange contracts. The fair value of forward foreign currency exchange contracts is determined by using quoted market prices of the same or similar instruments, adjusted for counterparty risk. Disclosures of Fair Value of Other Assets and Liabilities: The Company’s borrowings under the Company's credit facilities are carried at historical cost in the accompanying Consolidated Balance Sheets. For disclosure purposes, the Company estimated the fair value of borrowings outstanding based on market rates for similar types of debt. The inputs used to value the borrowings outstanding are considered to be Level 2 instruments. The carrying amount and fair value of the Company's term loan facility were as follows: (in thousands) January 30, 2016 January 31, 2015 Gross borrowings outstanding, carrying amount $ 293,250 $ 299,250 Gross borrowings outstanding, fair value $ 284,453 $ 295,135 No borrowings were outstanding under the Company's asset-based revolving credit facility as of January 30, 2016 and January 31, 2015 . See Note 11, " BORROWINGS, " for further discussion of the Company's credit facilities. |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Jan. 30, 2016 | |
Inventories, Net [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES, NET Inventories, net consisted of: (in thousands) January 30, 2016 January 31, 2015 Inventories $ 466,918 $ 484,865 Less: Lower of cost or market reserve (19,616 ) (12,707 ) Less: Shrink reserve (10,601 ) (11,364 ) Inventories, net $ 436,701 $ 460,794 The inventory balance, net of reserves, included inventory in transit from vendors of $71.7 million and $56.1 million at January 30, 2016 and January 31, 2015 , respectively. Inventory in transit is considered to be merchandise owned by the Company that has not yet been received at a Company distribution center. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: (in thousands) January 30, 2016 January 31, 2015 Land $ 37,451 $ 37,473 Buildings 287,081 286,820 Furniture, fixtures and equipment 682,013 653,929 Information technology 479,269 427,879 Leasehold improvements 1,283,613 1,338,206 Construction in progress 19,875 49,836 Other 3,135 3,107 Total $ 2,792,437 $ 2,797,250 Less: Accumulated depreciation and amortization (1,898,259 ) (1,830,249 ) Property and equipment, net $ 894,178 $ 967,001 Long-lived assets, primarily comprised of property and equipment, are tested for impairment periodically or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Factors used in the evaluation include, but are not limited to, management’s plans for future operations, recent operating results, and undiscounted projected cash flows. Fair value of the Company's store-related assets is determined at the individual store level, primarily using a discounted cash flow model that utilizes Level 3 inputs. The estimation of future cash flows from operating activities requires significant estimates of factors that include future sales, gross margin performance and operating expenses. In instances where the discounted cash flow analysis indicates a negative value at the store level, the market exit price based on historical experience, and other comparable market data where applicable, is used to determine the fair value by asset type. In Fiscal 2015, the Company incurred non-cash asset impairment charges of $18.2 million as it was determined that the carrying value of certain assets would not be recoverable and exceeded fair value. The asset impairment charges primarily related to the Company's Abercrombie & Fitch flagship store in Hong Kong. In Fiscal 2014, the Company incurred non-cash asset impairment charges of $45.0 million , excluding impairment charges incurred in connection with the Gilly Hicks restructuring, as it was determined that the carrying value of certain assets would not be recoverable and exceeded fair value. The asset impairment charges primarily related to the Company's Abercrombie & Fitch flagship store locations in Tokyo, Japan and Seoul, Korea, as well as nine abercrombie kids stores and nine Hollister stores. Additionally, in connection with the Company's plan to sell its corporate aircraft, the asset was classified as available-for-sale and the Company incurred charges of approximately $11.3 million to record the expected loss on the disposal of the asset. The fair value of the Company's corporate aircraft was determined using a market approach utilizing level 2 inputs. In Fiscal 2013, the Company incurred non-cash asset impairment charges of $46.7 million , excluding impairment charges incurred in connection with the Gilly Hicks restructuring, as a result of the impact of sales trends on the profitability of a number of stores identified in the third quarter of Fiscal 2013 as well as fiscal year-end review of store-related long-lived assets. The non-cash asset impairment charges primarily related to 23 Abercrombie & Fitch stores, four abercrombie kids stores, and 70 Hollister stores. In addition, the Company incurred charges of $37.9 million related to the Gilly Hicks restructuring. The Company had $37.3 million and $40.1 million of construction project assets in property and equipment, net at January 30, 2016 and January 31, 2015 , respectively, related to the construction of buildings in certain lease arrangements where the Company is deemed to be the owner of the construction project. |
RABBI TRUST ASSETS
RABBI TRUST ASSETS | 12 Months Ended |
Jan. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
RABBI TRUST ASSETS | RABBI TRUST ASSETS Investments of Rabbi Trust assets consisted of the following: (in thousands) January 30, 2016 January 31, 2015 Rabbi Trust assets: Trust-owned life insurance policies (at cash surrender value) $ 96,567 $ 93,424 Money market funds 23 24 Total Rabbi Trust assets $ 96,590 $ 93,448 The irrevocable rabbi trust (the “Rabbi Trust”) is intended to be used as a source of funds to match respective funding obligations to participants in the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan I, the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan II and the Supplemental Executive Retirement Plan. The Rabbi Trust assets primarily consist of trust-owned life insurance policies which are recorded at cash surrender value. The change in cash surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in realized gains of $3.1 million , $3.2 million and $2.6 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively, recorded in interest expense, net on the Consolidated Statements of Operations and Comprehensive Income (Loss). The Rabbi Trust assets are included in other assets on the Consolidated Balance Sheets and are restricted in their use as noted above. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Jan. 30, 2016 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of: (in thousands) January 30, 2016 January 31, 2015 Rabbi Trust $ 96,590 $ 93,448 Deferred tax assets 89,677 96,999 Long-term deposits 64,098 64,415 Intellectual property 28,057 27,943 Long-term supplies 25,475 31,565 Restricted cash 20,581 14,835 Prepaid income tax on intercompany items 7,344 9,968 Other 28,059 34,021 Other assets $ 359,881 $ 373,194 Long-term supplies include, but are not limited to, hangers, frames, sign holders, security tags, back-room supplies and construction materials. Intellectual property primarily includes trademark assets associated with the Company's international operations, consisting of finite-lived and indefinite-lived intangible assets of approximately $ 14.4 million and $13.7 million , respectively, as of January 30, 2016 , and finite-lived and indefinite-lived intangible assets of approximately $15.3 million and $12.6 million , respectively, as of January 31, 2015 . The Company's finite-lived intangible assets are amortized over a useful life of 10 to 20 years. Restricted cash includes various cash deposits with international banks that are used as collateral for customary non-debt banking commitments and deposits into trust accounts to conform to standard insurance security requirements. Other includes prepaid leases and various other assets. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of: (in thousands) January 30, 2016 January 31, 2015 Accrued payroll and related costs $ 60,464 $ 56,384 Gift card liability 36,384 36,936 Accrued taxes 37,203 34,629 Construction in progress 43,129 30,661 Accrued rent 24,739 25,607 Other 119,318 98,519 Accrued expenses $ 321,237 $ 282,736 Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll related costs. Other accrued expenses include expenses incurred but not yet paid related to outside services associated with store and home office operations. |
DEFERRED LEASE CREDITS
DEFERRED LEASE CREDITS | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Lease Credits [Abstract] | |
DEFERRED LEASE CREDITS | DEFERRED LEASE CREDITS Deferred lease credits are derived from payments received from landlords to wholly or partially offset store construction costs and are classified between current and long-term liabilities. The amounts, which are amortized over the respective terms of the related leases, consisted of the following: (in thousands) January 30, 2016 January 31, 2015 Deferred lease credits $ 472,279 $ 490,452 Amortized deferred lease credits (359,720 ) (357,430 ) Total deferred lease credits, net 112,559 133,022 Less: short-term portion of deferred lease credits (23,303 ) (26,629 ) Long-term portion of deferred lease credits $ 89,256 $ 106,393 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before taxes was comprised of: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Domestic $ 8,412 $ 100,115 $ 37,325 Foreign 46,178 (961 ) 35,952 Total $ 54,590 $ 99,154 $ 73,277 Domestic income above includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties, including those related to international direct-to-consumer operations and interest through October 31, 2015. The provision for tax expense consisted of: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Current: Federal $ (3,124 ) $ 21,287 $ 52,579 State (434 ) 1,944 (4,988 ) Foreign 12,120 28,614 17,851 8,562 51,845 65,442 Deferred: Federal 9,224 8,971 (36,732 ) State 3,297 1,783 (4,606 ) Foreign (5,052 ) (15,266 ) (5,455 ) 7,469 (4,512 ) (46,793 ) Total provision $ 16,031 $ 47,333 $ 18,649 Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: Fiscal 2015 Fiscal 2014 Fiscal 2013 U.S. Federal income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of U.S. federal income tax effect 4.6 4.3 (4.1 ) Foreign taxation of non-U.S. operations (10.2 ) 5.4 2.0 U.S. taxation of non-U.S. operations 20.0 — — Net change in valuation allowances (8.7 ) 6.6 0.1 Audit and other adjustments to prior years' accruals (8.7 ) (1.3 ) (5.6 ) Statutory tax rate and law changes 4.2 0.2 — Permanent items (4.6 ) (1.1 ) — Credit items (2.3 ) (1.2 ) (2.8 ) Other items, net 0.1 (0.2 ) 0.9 Total 29.4 % 47.7 % 25.5 % The jurisdictional location of pre-tax income (loss) may represent a significant component of the Company's effective tax rate as income tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate. Furthermore, the impact of changes in the jurisdictional location of pre-tax income (loss) on the Company's effective tax rate will be greater at lower levels of consolidated pre-tax income (loss). The taxation of non-U.S. operations line item in the table above excludes items related to the Company's non-U.S. operations reported separately in the appropriate corresponding line items. For Fiscal 2015, the impact of taxation of non-U.S. operations on the Company's effective income tax rate was primarily related to the Company's subsidiaries in Australia, Switzerland and Hong Kong. For Fiscal 2015, the Company's Australian subsidiary incurred pre-tax losses of $4.9 million , with no jurisdictional tax effect, related to the closure of the Company’s Australian operations. For Fiscal 2015, the Company’s Swiss subsidiary earned pre-tax income of $1.9 million with a jurisdictional effective tax rate of negative 745% . The Swiss jurisdictional effective tax rate included the impact of the Company’s omnichannel restructuring as well as the release of a valuation allowance. For Fiscal 2015, the Company's subsidiary in Hong Kong incurred pre-tax losses of $6.8 million with a jurisdictional effective tax rate of 15.8% , slightly below the statutory tax rate of 16.5% . For Fiscal 2014, the impact of taxation of non-U.S. operations on the Company's effective income tax rate was primarily related to the Company's Australian and Swiss subsidiaries. For Fiscal 2014, the Company's Australian subsidiary incurred pre-tax losses of $8.4 million with a jurisdictional effective tax rate of negative 5.6% . The Australian jurisdictional effective tax rate included the impact of the closure of the Company's Australian operations. For Fiscal 2014, the Company's Swiss subsidiary incurred pretax losses of $2.6 million with a jurisdictional effective tax rate of negative 218.4% . The Swiss jurisdictional effective tax rate included the impact of the establishment of a valuation allowance. For Fiscal 2013, the impact of taxation of non-U.S. operations on the Company's effective income tax rate was primarily related to the Company's Japanese subsidiary. For Fiscal 2013, the Company's Japanese subsidiary reported $3.4 million of pretax income with a jurisdictional effective tax rate of 127.8% , which included the impact of discrete tax items. The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows: (in thousands) January 30, 2016 January 31, 2015 Deferred tax assets: Deferred compensation $ 62,679 $ 83,157 Accrued expenses and reserves 19,862 17,695 Rent 36,929 38,881 Net operating losses (NOL) and credit carryforwards 14,248 14,897 Investments in subsidiaries 2,895 — Other 619 1,403 Valuation allowances (1,643 ) (6,730 ) Total deferred tax assets $ 135,589 $ 149,303 Deferred tax liabilities: Property, equipment and intangibles $ (20,708 ) $ (16,059 ) Inventory (9,480 ) (11,332 ) Store supplies (6,054 ) (7,046 ) Prepaid expenses (3,653 ) (2,438 ) Undistributed net income of non-U.S. subsidiaries (4,390 ) — Other (1,011 ) (1,424 ) Total deferred tax liabilities (45,296 ) (38,299 ) Net deferred income tax assets $ 90,293 $ 111,004 Accumulated other comprehensive (loss) is shown net of deferred tax assets and deferred tax liabilities, resulting in a deferred tax liability of $1.7 million and a deferred tax liability of $1.6 million as of January 30, 2016 and January 31, 2015 , respectively. Accordingly, these deferred taxes are not reflected in the table above. As of January 30, 2016 , the Company had deferred tax assets related to foreign and state NOL of $13.2 million and $0.2 million , respectively, that could be utilized to reduce future years’ tax liabilities. If not utilized, a portion of the foreign NOL carryovers will begin to expire in 2017 and a portion of state NOL will begin to expire in 2021. Some foreign NOL have an indefinite carryforward period. As of January 30, 2016 , the Company had deferred tax assets related to state credit carryforwards of $0.9 million , net of valuation allowances that could be utilized to reduce future years’ tax liabilities. If not utilized, the credit carryforwards will begin to expire in 2017. The utilization of credit carryforwards may be limited in a given year. The Company believes it is more likely than not that NOL and credit carryforwards would reduce future years’ tax liabilities in various states and certain foreign jurisdictions less any associated valuation allowance. All valuation allowances have been reflected through the Consolidated Statements of Operations and Comprehensive (Loss) Income. No other valuation allowances have been provided for deferred tax assets because management believes that it is more likely than not that the full amount of the net deferred tax assets will be realized in the future. While the Company does not expect material adjustments to the total amount of valuation allowances within the next 12 months, changes in assumptions may occur based on the information then currently available. In such case, the Company will record an adjustment in the period in which a determination is made. A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Uncertain tax positions, beginning of the year $ 3,212 $ 4,182 $ 11,116 Gross addition for tax positions of the current year 13 152 449 Gross addition for tax positions of prior years 598 33 30 Reductions of tax positions of prior years for: Lapses of applicable statutes of limitations (986 ) (348 ) (2,880 ) Settlements during the period (64 ) (4 ) (3,936 ) Changes in judgment/ excess reserve (318 ) (803 ) (597 ) Uncertain tax positions, end of year $ 2,455 $ 3,212 $ 4,182 The amount of the above uncertain tax positions at January 30, 2016 , January 31, 2015 and February 1, 2014 , which would impact the Company’s effective tax rate if recognized, was $2.5 million , $3.2 million and $4.2 million , respectively. The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense. During Fiscal 2015 , the Company recognized a $0.9 million benefit related to net interest and penalties, compared to a $0.2 million benefit recognized during Fiscal 2014 . Interest and penalties of $0.5 million were accrued at the end of Fiscal 2015 , compared to $1.4 million accrued at the end of Fiscal 2014 . The Internal Revenue Service (“IRS”) is currently conducting an examination of the Company’s U.S. federal income tax return for Fiscal 2015 as part of the IRS’ Compliance Assurance Process program. The IRS examinations for Fiscal 2014 and prior years have been completed and settled. State and foreign returns are generally subject to examination for a period of three to five years after the filing of the respective return. The Company has various state and foreign income tax returns in the process of examination, administrative appeals or litigation. The outcome of the examinations is not expected to have a material impact on the Company's financial statements. The Company believes that some of these audits and negotiations will conclude within the next 12 months and that it is reasonably possible the amount of uncertain income tax positions, including interest, may decrease in the range of $1.3 million to $1.8 million due to settlements of audits and expiration of statutes of limitations. The Company does not expect material adjustments to the total amount of uncertain tax positions within the next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur. As of January 30, 2016 , a provision for U.S. income tax has not been recorded on approximately $126.6 million of unremitted net income generated through the third quarter of Fiscal 2015 of non-U.S. subsidiaries that the Company has determined to be indefinitely reinvested outside the U.S. The potential U.S. deferred income tax liability if the foreign net income were to be repatriated in the future, net of any foreign income or withholding taxes previously paid, is approximately $25 million . Unremitted net income of $20.8 million generated after October 31, 2015 is not considered to be invested indefinitely, and the Company has recorded $4.4 million of deferred U.S. income taxes on this net income. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Asset-Based Revolving Credit Facility On August 7, 2014, A&F, through its subsidiary Abercrombie & Fitch Management Co. ("A&F Management") as the lead borrower (with A&F and certain other subsidiaries as borrowers or guarantors), entered into an asset-based revolving credit agreement. The agreement, as amended, provides for a senior secured revolving credit facility of up to $400 million (the "ABL Facility"), subject to a borrowing base, with a letter of credit sub-limit of $100 million and an accordion feature allowing A&F to increase the revolving commitment by up to $100 million subject to specified conditions. The ABL Facility is available for working capital, capital expenditures and other general corporate purposes. The ABL Facility will mature on August 7, 2019 . Obligations under the ABL Facility are unconditionally guaranteed by A&F and certain of its subsidiaries. The ABL Facility is secured by a first-priority security interest in certain working capital of the borrowers and guarantors consisting of inventory, accounts receivable and certain other assets. The ABL Facility is also secured by a second-priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets, intellectual property, stock of subsidiaries and certain after-acquired material real property. Amounts borrowed under the ABL Facility bear interest, at the Company's option, at either an adjusted LIBOR rate plus a margin of 1.25% to 1.75% per annum, or an alternate base rate plus a margin of 0.25% to 0.75% per annum. The initial applicable margins with respect to LIBOR loans and base rate loans, including swing line loans, under the ABL Facility are 1.50% and 0.50% per annum, respectively, and are subject to adjustment each fiscal quarter based on average historical excess availability during the preceding quarter. The Company is also required to pay a fee of 0.25% per annum on undrawn commitments under the ABL Facility. Customary agency fees and letter of credit fees are also payable in respect of the ABL Facility. No borrowings were outstanding under the ABL Facility as of January 30, 2016 . Term Loan Facility A&F, through its subsidiary A&F Management as the borrower (with A&F and certain other subsidiaries as guarantors), also entered into a term loan agreement on August 7, 2014, which, as amended, provides for a term loan facility of $300 million (the "Term Loan Facility" and, together with the ABL Facility, the "2014 Credit Facilities"). A portion of the proceeds of the Term Loan Facility was used to repay the outstanding balance of approximately $127.5 million under the Company's 2012 Term Loan Agreement, to repay outstanding borrowings of approximately $60 million under the Company's 2011 Credit Agreement and to pay fees and expenses associated with the transaction. The Term Loan Facility was issued at a 1.0% discount. In addition, the Company recorded deferred financing fees associated with the issuance of the 2014 Credit Facilities of $5.8 million in aggregate, of which $3.2 million was paid to lenders. The Company is amortizing the debt discount and deferred financing fees over the respective contractual terms of the 2014 Credit Facilities. The Company's Term Loan debt is presented in the Consolidated Balance Sheets, net of the unamortized discount and fees paid to lenders. Net borrowings as of January 30, 2016 and January 31, 2015 were as follows: (in thousands) January 30, 2016 January 31, 2015 Borrowings, gross at carrying amount $ 293,250 $ 299,250 Unamortized discount (1,929 ) (2,786 ) Unamortized fees paid to lenders (5,086 ) (3,052 ) Borrowings, net 286,235 293,412 Less: short-term portion of borrowings, net of discount and fees — (2,102 ) Long-term portion of borrowings, net $ 286,235 $ 291,310 The Term Loan Facility will mature on August 7, 2021 and amortizes at a rate equal to 0.25% of the original principal amount per quarter, beginning with the fourth quarter of Fiscal 2014. The Term Loan Facility is subject to (a) beginning in 2016, an annual mandatory prepayment in an amount equal to 0% to 50% of the Company's excess cash flows in the preceding fiscal year, depending on the Company's leverage ratio and (b) certain other mandatory prepayments upon receipt by the Company of proceeds of certain debt issuances, asset sales and casualty events, subject to certain exceptions specified therein, including reinvestment rights. The Company was not required to make any mandatory prepayments under the Term Loan Facility in Fiscal 2016. A summary of future minimum payments under the Term Loan facility is as follows: (in thousands) Fiscal 2016 (1) $ — Fiscal 2017 $ 3,000 Fiscal 2018 $ 3,000 Fiscal 2019 $ 3,000 Fiscal 2020 $ 3,000 Thereafter $ 281,250 (1) The Company prepaid its regularly scheduled Fiscal 2016 principal payments in January 2016. All obligations under the Term Loan Facility are unconditionally guaranteed by A&F and certain of its subsidiaries. The Term Loan Facility is secured by a first-priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets, intellectual property, stock of subsidiaries and certain after-acquired material real property. The Term Loan Facility is also secured by a second-priority security interest in certain working capital of the borrowers and guarantors consisting of inventory, accounts receivable and certain other assets, with certain exceptions. At the Company's option, borrowings under the Term Loan Facility will bear interest at either (a) an adjusted LIBOR rate no lower than 1.00% plus a margin of 3.75% per annum or (b) an alternate base rate plus a margin of 2.75% per annum. Customary agency fees are also payable in respect of the Term Loan Facility. The interest rate on borrowings under the Term Loan Facility was 4.75% as of January 30, 2016 . Representations, Warranties and Covenants The 2014 Credit Facilities contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of A&F and its subsidiaries to incur indebtedness (including guarantees), grant liens, make investments, pay dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers, dispose of certain assets or change the nature of their business. In addition, excess availability equal to the greater of 10% of the loan cap or $30 million must be maintained under the ABL Facility. The 2014 Credit Facilities do not otherwise contain financial maintenance covenants. The Company was in compliance with the covenants under the 2014 Credit Facilities as of January 30, 2016 . |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other liabilities consisted of: (in thousands) January 30, 2016 January 31, 2015 Accrued straight-line rent $ 90,445 $ 99,108 Deferred compensation 48,058 56,244 Other 41,180 25,934 Other liabilities $ 179,683 $ 181,286 Deferred compensation includes the Supplemental Executive Retirement Plan (the “SERP”), the Abercrombie & Fitch Co. Savings and Retirement Plan and the Abercrombie & Fitch Nonqualified Savings and Supplemental Retirement Plan, all further discussed in Note 17, “ SAVINGS AND RETIREMENT PLANS ,” as well as deferred Board of Directors compensation and other accrued retirement benefits. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Financial Statement Impact The Company recognized share-based compensation expense of $28.4 million , $23.0 million and $53.5 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The Company also recognized $10.6 million , $8.6 million and $20.3 million in tax benefits related to share-based compensation for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The fair value of share-based compensation awards is recognized as compensation expense primarily on a straight-line basis over the awards’ requisite service period, net of estimated forfeitures, with the exception of performance share awards. Performance share award expense is primarily recognized in the performance period of the awards' requisite service period. For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation expense is recognized. A current tax deduction arises upon the vesting of restricted stock units and performance share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic value. If the tax deduction is greater than the recorded deferred tax asset, the tax benefit associated with any excess deduction is considered an excess tax benefit and is recognized as additional paid-in capital. If the tax deduction is less than the recorded deferred tax asset, the resulting difference, or shortfall, is first charged to additional paid-in capital, to the extent of the windfall pool of excess tax benefits, with any remainder recognized as tax expense. The Company’s windfall pool of excess tax benefits as of January 30, 2016 , is sufficient to fully absorb any shortfall which may develop associated with awards currently outstanding. The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures and for changes to the estimate of expected award forfeitures. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. The effect of adjustments for forfeitures was $5.6 million , $2.6 million and $2.3 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The Company issues shares of Common Stock from treasury stock upon exercise of stock options and stock appreciation rights and vesting of restricted stock units, including those converted from performance share awards. As of January 30, 2016 , the Company had sufficient treasury stock available to settle stock options, stock appreciation rights, restricted stock units and performance share awards outstanding. Settlement of stock awards in Common Stock also requires that the Company have sufficient shares available in stockholder-approved plans at the applicable time. In the event, at each reporting date during which share-based compensation awards remain outstanding, there are not sufficient shares of Common Stock available to be issued under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan (the “2007 LTIP”) and the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan (the “2005 LTIP”), or under a successor or replacement plan, the Company may be required to designate some portion of the outstanding awards to be settled in cash, which would result in liability classification of such awards. The fair value of liability-classified awards is re-measured each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered. Plans As of January 30, 2016 , the Company had two primary share-based compensation plans: the 2005 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company and non-associate members of the Company's Board of Directors, and the 2007 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company. The Company also has four other share-based compensation plans under which it granted stock options and restricted stock units to associates of the Company and non-associate members of the the Company's Board of Directors in prior years. The 2007 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 2.0 million of underlying shares of the Company's Common Stock for each type of award, per eligible participant, plus any unused annual limit from prior years. The 2005 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 250,000 of underlying shares of the Company's Common Stock for each award type to any associate of the Company (other than the Chief Executive Officer (the "CEO")) who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, at the time of the grant, plus any unused annual limit from prior years. In addition, any non-associate director of the Company is eligible to receive awards under the 2005 LTIP. Under both plans, stock appreciation rights and restricted stock units vest primarily over four years for associates, while performance share awards are primarily earned and vest over the performance period. Under the 2005 LTIP, restricted stock units typically vest after approximately one year for non-associate directors of the Company. Under both plans, stock options have a ten -year term and stock appreciation rights have up to a ten -year term, subject to forfeiture under the terms of the plans. The plans provide for accelerated vesting if there is a change of control and certain additional conditions are met as defined in the plans. Stock Options The following table summarizes stock option activity for Fiscal 2015 : Number of Underlying Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 328,100 $ 64.64 Granted — — Exercised — — Forfeited or expired (57,100 ) 72.16 Outstanding at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8 Stock options exercisable at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8 The Company did not grant any stock options during Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . The total intrinsic value of stock options exercised was insignificant during Fiscal 2015 , Fiscal 2014 , and Fiscal 2013 . The grant date fair value of stock options that vested was insignificant during Fiscal 2015 , Fiscal 2014 , and Fiscal 2013 . As of January 30, 2016 , there was no unrecognized compensation cost related to currently outstanding stock options. Stock Appreciation Rights The following table summarizes stock appreciation rights activity for Fiscal 2015 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 8,953,675 $ 40.28 Granted 715,858 21.71 Exercised (1,550,000 ) 22.23 Forfeited or expired (2,818,418 ) 36.58 Outstanding at January 30, 2016 5,301,115 $ 45.02 $ 2,827,754 3.6 Stock appreciation rights exercisable at January 30, 2016 4,288,337 $ 48.75 $ 11,657 2.3 Stock appreciation rights expected to become exercisable in the future as of January 30, 2016 897,471 $ 29.73 $ 2,352,008 8.6 The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock appreciation rights and expected future stock price volatility over the expected term. Estimates of expected terms, which represent the expected periods of time the Company believes stock appreciation rights will be outstanding, are based on historical experience. Estimates of expected future stock price volatility are based on the volatility of the Company's Common Stock price for the most recent historical period equal to the expected term of the stock appreciation right, as appropriate. The Company calculates the volatility as the annualized standard deviation of the differences in the natural logarithms of the weekly stock closing price, adjusted for stock splits and dividends. The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during Fiscal 2015 , Fiscal 2014 and Fiscal 2013 were as follows: Executive Officers All Other Associates 2015 2014 2013 2015 2014 2013 Grant date market price $ 22.46 $ 35.08 $ 46.57 $ 22.42 $ 37.05 $ 43.86 Exercise price $ 22.46 $ 35.49 $ 46.57 $ 22.42 $ 37.22 $ 43.86 Fair value $ 9.11 $ 12.85 $ 20.34 $ 8.00 $ 12.92 $ 16.17 Assumptions: Price volatility 49 % 49 % 61 % 49 % 50 % 53 % Expected term (years) 6.1 4.9 4.7 4.3 4.1 4.1 Risk-free interest rate 1.5 % 1.6 % 0.7 % 4.2 % 1.4 % 0.7 % Dividend yield 1.7 % 2.0 % 1.8 % 1.7 % 1.9 % 1.8 % Compensation expense for stock appreciation rights is recognized on a straight-line basis over the awards’ requisite service period, net of forfeitures. As of January 30, 2016 , there was $12.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock appreciation rights. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 16 months . The total intrinsic value of stock appreciation rights exercised during Fiscal 2015 , Fiscal 2014 and Fiscal 2013 was $4.3 million , $1.5 million and $8.5 million , respectively. The grant date fair value of stock appreciation rights that vested during Fiscal 2015 , Fiscal 2014 and Fiscal 2013 was $4.9 million , $7.4 million and $83.7 million , respectively. Restricted Stock Units The following table summarizes activity for restricted stock units for Fiscal 2015 : Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Unvested at January 31, 2015 1,566,272 $ 37.84 205,420 $ 32.06 36,374 $ 40.13 Granted 1,117,321 20.68 113,331 20.10 113,337 19.04 Adjustments for performance achievement — — (28,250 ) 36.14 — — Vested (637,837 ) 37.01 (48,668 ) 38.24 — — Forfeited (374,159 ) 31.37 (56,333 ) 29.05 (32,000 ) 21.07 Unvested at January 30, 2016 1,671,597 $ 28.13 185,500 $ 23.42 117,711 $ 25.00 Fair value of both service-based and performance-based restricted stock units is calculated using the market price of the underlying common stock on the date of grant reduced for anticipated dividend payments on unvested shares. In determining fair value, the Company does not take into account performance-based vesting requirements. Performance-based vesting requirements are taken into account in determining the number of awards expected to vest. For market-based restricted stock units, fair value is calculated using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company's total stockholder return measured against the total stockholder return of a select group of peer companies over a three-year period. For an award with performance-based or market-based vesting requirements, the number of shares that ultimately vest can vary from 0% to 200% of target depending on the level of achievement of performance criteria. Unvested shares related to restricted stock units with performance vesting conditions are reflected at 100% of their target vesting amount in the table above. Service-based restricted stock units are expensed on a straight-line basis over the total requisite service period, net of forfeitures. Performance-based restricted stock units subject to graded vesting are expensed on an accelerated attribution basis, net of forfeitures. Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the requisite service period, net of forfeitures. As of January 30, 2016 , there was $47.1 million , $3.1 million , and $1.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to service-based, performance-based and market-based restricted stock units, respectively. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 15 months , 13 months , and 12 months for service-based, performance-based and market-based restricted stock units, respectively. Additional information pertaining to restricted stock units for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 follows: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Service-based restricted stock units: Total grant date fair value of awards granted $ 23,101 $ 33,075 $ 23,192 Total grant date fair value of awards vested 23,608 17,078 14,535 Performance-based restricted stock units: Total grant date fair value of awards granted $ 2,278 $ 4,709 $ 10,814 Total grant date fair value of awards vested 1,861 515 515 Market-based restricted stock units: Total grant date fair value of awards granted $ 2,158 $ 3,756 $ — Total grant date fair value of awards vested — — — The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during Fiscal 2015 and Fiscal 2014 were as follows: Fiscal 2015 Fiscal 2014 Grant date market price $ 22.46 $ 36.20 Fair value $ 19.04 $ 40.42 Assumptions: Price volatility 45 % 49 % Expected term (years) 2.8 2.7 Risk-free interest rate 0.9 % 0.8 % Dividend yield 3.5 % 2.2 % Average volatility of peer companies 34.0 % 36.0 % Average correlation coefficient of peer companies 0.3288 0.3704 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes. In order to qualify for hedge accounting treatment, a derivative instrument must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The extent to which a hedging instrument has been, and is expected to continue to be, effective at offsetting changes in fair value or cash flows is assessed and documented at least quarterly. Any hedge ineffectiveness is reported in current period earnings and hedge accounting is discontinued if it is determined that the derivative instrument is not highly effective. For derivative instruments that either do not qualify for hedge accounting or are not designated as hedges, all changes in the fair value of the derivative instrument are recognized in earnings. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative instrument is recorded as a component of other comprehensive income (loss) (“OCI”) and recognized in earnings when the hedged cash flows affect earnings. The ineffective portion of the derivative instrument gain or loss is recognized in current period earnings. The effectiveness of the hedge is assessed based on changes in the fair value attributable to changes in spot prices. The changes in the fair value of the derivative instrument related to the changes in the difference between the spot price and the forward price are excluded from the assessment of hedge effectiveness and are also recognized in current period earnings. If the cash flow hedge relationship is terminated, the derivative instrument gains or losses that are deferred in OCI will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, or a two -month period thereafter, the derivative instrument gains or losses are immediately recognized in earnings. The Company uses derivative instruments, primarily forward contracts designated as cash flow hedges, to hedge the foreign currency exposure associated with forecasted foreign-currency-denominated inter-company inventory sales to foreign subsidiaries and the related settlement of the foreign-currency-denominated inter-company receivables. Fluctuations in exchange rates will either increase or decrease the Company’s inter-company equivalent cash flows and affect the Company’s U.S. Dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date. These forward contracts typically have a maximum term of twelve months . The sale of the inventory to the Company’s customers will result in the reclassification of related derivative gains and losses that are reported in accumulated other comprehensive loss ("AOCL"). Substantially all of the unrealized gains or losses related to designated cash flow hedges as of January 30, 2016 will be recognized in cost of sales, exclusive of depreciation and amortization over the next twelve months. The Company presents its derivative assets and derivative liabilities at their gross fair values on the Consolidated Balance Sheets. However, our master netting and other similar arrangements allow net settlements under certain conditions. As of January 30, 2016 , the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated intercompany inventory sales, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both: (in thousands) Notional Amount (1) Euro $ 94,700 British pound $ 22,029 Canadian dollar $ 8,617 (1) Amounts are reported in U.S. Dollars equivalent as of January 30, 2016 . The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in exchange rates result in transaction gains/(losses) being recorded in earnings as U.S. GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these instruments because there are no differences in the timing of gain or loss recognition on the hedging instrument and the hedged item. As of January 30, 2016 , the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: (in thousands) Notional Amount (1) Euro $ 8,714 Switzerland franc $ 3,933 (1) Amounts are reported in U.S. Dollars equivalent as of January 30, 2016 . The location and amounts of derivative fair values on the Consolidated Balance Sheets as of January 30, 2016 and January 31, 2015 were as follows: Asset Derivatives Liability Derivatives (in thousands) Location January 30, 2016 January 31, 2015 Location January 30, 2016 January 31, 2015 Derivatives designated as hedging instruments: Foreign currency exchange forward contracts Other current assets $ 4,097 $ 10,283 Accrued expenses $ — $ — Derivatives not designated as hedging instruments: Foreign currency exchange forward contracts Other current assets $ 69 $ 10 Accrued expenses $ — $ — Total Other current assets $ 4,166 $ 10,293 Accrued expenses $ — $ — Refer to Note 3, “ FAIR VALUE, ” for further discussion of the determination of the fair value of derivative instruments. The location and amounts of derivative gains and losses for Fiscal 2015 and Fiscal 2014 on the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: Fiscal 2015 Fiscal 2014 (in thousands) Location Gain/(Loss) Gain/(Loss) Derivatives not designated as hedging instruments: Foreign currency exchange forward contracts Other operating income, net $ 751 $ 2,537 Effective Portion Ineffective Portion and Amount Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (1) Location of Gain (Loss) Reclassified from AOCL into Earnings Amount of Gain (Loss) Reclassified from AOCL into Earnings (2) Location of Gain Recognized in Earnings on Derivative Contracts Amount of Gain Recognized in Earnings on Derivative Contracts (3) (in thousands) January 30, January 31, January 30, January 31, January 30, January 31, Derivatives in cash flow hedging relationships: Foreign currency exchange forward contracts $ 7,204 $ 16,572 Cost of sales, exclusive of depreciation and amortization $ 15,596 $ 440 Other operating income, net $ 242 $ 215 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (2) The amount represents the reclassification from AOCL into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. (3) The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE LOSS The activity in accumulated other comprehensive loss for Fiscal 2015 was as follows: Fiscal 2015 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance at January 31, 2015 $ 13,100 $ (96,680 ) $ (83,580 ) Other comprehensive income (loss) before reclassifications 7,204 (22,623 ) (15,419 ) Reclassified from accumulated other comprehensive (loss) income (1) (15,596 ) — (15,596 ) Tax effect on other comprehensive income (loss) (131 ) 107 (24 ) Other comprehensive income (loss) (8,523 ) (22,516 ) (31,039 ) Ending balance at January 30, 2016 $ 4,577 $ (119,196 ) $ (114,619 ) (1) For Fiscal 2015 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). Additionally, a foreign currency translation loss related to the Company's dissolution of its Australian operations was reclassified to other operating income, net. The activity in accumulated other comprehensive loss for Fiscal 2014 was as follows: Fiscal 2014 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance February 1, 2014 $ (2,166 ) $ (18,751 ) $ (20,917 ) Other comprehensive income (loss) before reclassifications 16,572 (76,891 ) (60,319 ) Reclassified from accumulated other comprehensive (loss) income (1) (440 ) — (440 ) Tax effect on other comprehensive income (loss) (866 ) (1,038 ) (1,904 ) Other comprehensive income (loss) 15,266 (77,929 ) (62,663 ) Ending balance at January 31, 2015 $ 13,100 $ (96,680 ) $ (83,580 ) (1) For Fiscal 2014 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). The activity in accumulated other comprehensive loss for Fiscal 2013 was as follows: Fiscal 2013 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance February 2, 2013 $ (7,220 ) $ (6,068 ) $ (13,288 ) Other comprehensive income (loss) before reclassifications 6,435 (12,683 ) (6,248 ) Reclassified from accumulated other comprehensive (loss) income (1) (857 ) — (857 ) Tax effect on other comprehensive income (loss) (524 ) — (524 ) Other comprehensive income (loss) 5,054 (12,683 ) (7,629 ) Ending balance at February 1, 2014 $ (2,166 ) $ (18,751 ) $ (20,917 ) (1) For Fiscal 2013 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
GILLY HICKS RESTRUCTURING
GILLY HICKS RESTRUCTURING | 12 Months Ended |
Jan. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
GILLY HICKS RESTRUCTURING | GILLY HICKS RESTRUCTURING As previously announced, on November 1, 2013, A&F’s Board of Directors approved the closure of the Company’s 24 stand-alone Gilly Hicks stores. The Company substantially completed the store closures in the first quarter of Fiscal 2014. Below is a summary of the aggregate pre-tax charges incurred through January 30, 2016 related to the closure of the Gilly Hicks branded stores: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Total Lease terminations and store closure (benefits) costs $ (1,598 ) $ 5,998 $ 42,667 $ 47,067 Asset impairment — 2,096 37,940 40,036 Other — 337 893 1,230 Total (benefits) charges $ (1,598 ) $ 8,431 $ 81,500 $ 88,333 Costs associated with exit or disposal activities are recorded when the liability is incurred. During Fiscal 2015, the Company's liability related to the Gilly Hicks restructuring decreased from approximately $6.0 million to approximately $2.1 million , as of January 30, 2016 , as a result of lease termination benefits and cash payments applied against the liability. |
SAVINGS AND RETUREMENT PLANS
SAVINGS AND RETUREMENT PLANS | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | SAVINGS AND RETIREMENT PLANS The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. associates are eligible to participate in this plan if they are at least 21 years of age. In addition, the Company maintains the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement, composed of two sub-plans (Plan I and Plan II). Plan I contains contributions made through December 31, 2004, while Plan II contains contributions made on and after January 1, 2005. Participation in these plans is based on service and compensation. The Company’s contributions are based on a percentage of associates’ eligible annual compensation. The cost of the Company’s contributions to these plans was $15.4 million , $13.8 million and $18.3 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Brand | The following table provides the Company's net sales by operating segment for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Abercrombie $ 1,640,992 $ 1,771,299 $ 1,893,955 Hollister 1,877,688 1,947,869 2,127,816 Other (1) — 24,862 95,126 Total $ 3,518,680 $ 3,744,030 $ 4,116,897 (1) Represents net sales from the Company's Gilly Hicks operations. See Note 16, "GILLY HICKS RESTRUCTURING," for additional information on the Company's exit from Gilly Hicks branded stores. |
Schedule of Net Sales and Long-Lived Assets, by Geographical Areas | The following table provides the Company’s net sales by geographic area for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 United States $ 2,282,040 $ 2,408,427 $ 2,659,089 Europe 832,923 959,981 1,116,781 Other 403,717 375,622 341,027 Total $ 3,518,680 $ 3,744,030 $ 4,116,897 |
SEGMENT REPORTING | SEGMENT REPORTING During the first quarter of Fiscal 2015 , the Company substantially completed its transition to a branded organizational structure. In conjunction with the change, the Company determined its brand-based operating segments to be Abercrombie, which includes the Company's Abercrombie & Fitch and abercrombie kids brands, and Hollister. These operating segments have similar economic characteristics, class of consumers, products and production and distribution methods, and have been aggregated into one reportable segment. The following table provides the Company's net sales by operating segment for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Abercrombie $ 1,640,992 $ 1,771,299 $ 1,893,955 Hollister 1,877,688 1,947,869 2,127,816 Other (1) — 24,862 95,126 Total $ 3,518,680 $ 3,744,030 $ 4,116,897 (1) Represents net sales from the Company's Gilly Hicks operations. See Note 16, "GILLY HICKS RESTRUCTURING," for additional information on the Company's exit from Gilly Hicks branded stores. The following table provides the Company’s net sales by geographic area for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 United States $ 2,282,040 $ 2,408,427 $ 2,659,089 Europe 832,923 959,981 1,116,781 Other 403,717 375,622 341,027 Total $ 3,518,680 $ 3,744,030 $ 4,116,897 The following table provides the Company’s long-lived assets by geographic area for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 United States $ 548,983 $ 556,967 $ 580,610 Europe 263,977 332,435 446,345 Other 109,275 105,542 135,373 Total $ 922,235 $ 994,944 $ 1,162,328 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jan. 30, 2016 | |
Contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | CONTINGENCIES The Company is a defendant in lawsuits and other adversary proceedings arising in the ordinary course of business. Legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and the Company establishes reserves for the outcome of litigation where losses are deemed probable and reasonably estimable. The Company’s assessment of the current exposure could change in the event of the discovery of additional facts with respect to legal matters pending against the Company or determinations by judges, juries, administrative agencies or other finders of fact that are not in accordance with the Company’s evaluation of claims. As of January 30, 2016 , the Company had accrued charges of approximately $19 million for certain legal contingencies. In addition, there are certain claims and legal proceedings pending against the Company for which accruals have not been established. Actual liabilities may exceed the amounts reserved, and there can be no assurance that final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized unaudited quarterly financial results for Fiscal 2015 and Fiscal 2014 are presented below. See “RESULTS OF OPERATIONS,” in “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS,” of this Annual Report on Form 10-K for information regarding items included below that could affect comparability between quarter results. (in thousands, except per share amounts) Fiscal Quarter 2015 First Second Third Fourth Net sales $ 709,422 $ 817,756 $ 878,572 $ 1,112,930 Gross profit $ 411,549 $ 509,862 $ 559,787 $ 676,345 Net income (loss) $ (63,246 ) $ 612 $ 42,285 $ 58,908 Net income (loss) attributable to A&F (2)(4) $ (63,246 ) $ (810 ) $ 41,891 $ 57,741 Net income (loss) per diluted share attributable to A&F (1) $ (0.91 ) $ (0.01 ) $ 0.60 $ 0.85 (in thousands, except per share amounts) Fiscal Quarter 2014 First Second Third Fourth Net sales $ 822,428 $ 890,605 $ 911,453 $ 1,119,544 Gross profit $ 511,659 $ 552,956 $ 567,070 $ 681,885 Net income (loss) $ (23,671 ) $ 12,877 $ 18,227 $ 44,388 Net income (loss) attributable to A&F (3)(5) $ (23,671 ) $ 12,877 $ 18,227 $ 44,388 Net income (loss) per diluted share attributable to A&F (1) $ (0.32 ) $ 0.17 $ 0.25 $ 0.63 (1) Net income (loss) per diluted share for each of the quarters was computed using the weighted average number of shares outstanding during the quarter while the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of the quarters may not equal the total for the year. (2) Net income (loss) attributable to A&F for Fiscal 2015 included certain items related to inventory write-down, asset impairment, legal settlement charges, store fixture disposal, the Company’s profit improvement initiative, lease termination and store closure costs and restructuring. These items adversely impacted in net income (loss) attributable to A&F by $26.1 million , $9.4 million and $16.0 million for the first, second and fourth quarters of Fiscal 2015, respectively, and increased net income attributable to A&F by $9.0 million for the third quarter of Fiscal 2015. (3) Net income (loss) attributable to A&F for Fiscal 2014 included certain items related to asset impairment, the Company’s profit improvement initiative, lease termination and store closure costs, restructuring and corporate governance matters. These items adversely impacted net income (loss) attributable to A&F by $10.7 million , $1.2 million , $12.2 million and $36.4 million for the first, second, third and fourth quarters of Fiscal 2015, respectively. (4) Net income (loss) attributable to A&F for Fiscal 2015 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period resulted in a decrease in net income attributable to A&F of $2.6 million and $1.9 million for the second and fourth quarters of Fiscal 2015, respectively, and an increase in net income attributable to A&F of $1.2 million for the third quarter of Fiscal 2015. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. (5) Net income (loss) attributable to A&F for Fiscal 2014 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period adversely impacted net income (loss) attributable to A&F by $0.9 million , $0.9 million , $0.8 million and $0.1 million for the first, second, third and fourth quarters of Fiscal 2014, respectively. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its assets, liabilities, results of operations and cash flows. The Company has interests in a United Arab Emirates business venture and in a Kuwait business venture with Majid al Futtaim Fashion L.L.C. ("MAF"), each of which meets the definition of a variable interest entity (“VIE”). The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with MAF's portion of net income presented as net income attributable to noncontrolling interests ("NCI") in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) and MAF's portion of equity presented as NCI in the Consolidated Balance Sheets. The fifty-two week periods ended January 30, 2016 and January 31, 2015 include the correction of certain immaterial errors relating to prior periods. Amounts recorded out-of-period for the fifty-two week period ended January 30, 2016 included a reduction to pre-tax income of $2.0 million and an unrelated tax benefit of $3.2 million . The effect of these corrections increased net income attributable to A&F for the fifty-two weeks ended January 30, 2016 by $1.6 million . Amounts recorded out-of-period for the fifty-two week period ended January 31, 2015 included a reduction to pre-tax income of $2.9 million and an unrelated tax benefit of $0.4 million . The effect of these corrections decreased net income attributable to A&F for the fifty-two weeks ended January 31, 2015 by $2.2 million . The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. |
Fiscal Year | Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to “Fiscal 2015 ” represent the fifty-two week fiscal year ended January 30, 2016 ; to “Fiscal 2014 ” represent the fifty-two week fiscal year ended January 31, 2015 ; and to “Fiscal 2013 ” represent the fifty-two week fiscal year ended February 1, 2014 . In addition, all references herein to “Fiscal 2016 ” represent the fifty-two week fiscal year that will end on January 28, 2017 . |
Use of estimates | Use of estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. |
Cash and equivalents | Cash and equivalents Cash and equivalents include amounts on deposit with financial institutions, United States treasury bills, and other investments, primarily held in money market accounts, with original maturities of less than three months . |
Restricted cash | Restricted cash Any cash that is legally restricted from use is recorded in Other Assets on the Consolidated Balance Sheets. The restricted cash balance was $20.6 million and $14.8 million on January 30, 2016 and January 31, 2015 , respectively. Restricted cash includes various cash deposits with international banks that are used as collateral for customary non-debt banking commitments and deposits into trust accounts to conform to standard insurance security requirements. |
Receivables | Receivables Receivables primarily include credit card receivables, construction allowances, value added tax (“VAT”) receivables and other tax credits or refunds. As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit card receivables. Construction allowances are recorded for certain store lease agreements for improvements completed by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those goods are sold. |
Inventories, net | Inventories, net Inventories are valued at the lower of cost or market on a weighted-average cost basis. The Company reduces the carrying value of inventory through a lower of cost or market adjustment, the impact of which is reflected in cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income (Loss). The lower of cost or market reserve is based on an analysis of historical experience, composition and aging of the inventory and management's judgment regarding future demand and market conditions. Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each period that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink reserve accordingly. See Note 4, “ INVENTORIES, NET, ” for further discussion. |
Other current assets | Other current assets Other current assets include prepaid rent, current store supplies, derivative contracts and other prepaids. |
Property and equipment | Property and equipment Depreciation and amortization of property and equipment are computed for financial reporting purposes on a straight-line basis using the following service lives: Category of Property and Equipment Service Lives Information technology 3 - 7 years Furnitures, fixtures and equipment 3 - 15 years Leasehold improvements 3 - 15 years Other property and equipment 3 - 20 years Buildings 30 years Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter. The cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets are capitalized. Long-lived assets, primarily comprised of leasehold improvements, furniture, fixtures and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. These include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, other than temporary adverse market conditions and store closure or relocation decisions. On at least a quarterly basis, the Company reviews for indicators of impairment at the individual store level, the lowest level for which cash flows are identifiable. Stores that display an indicator of impairment are subjected to an impairment assessment. The Company’s impairment assessment requires management to make assumptions and judgments related, but not limited, to management's expectations for future operations and projected cash flows. The key assumptions used in the Company's undiscounted future cash flow models include sales, gross margin and, to a lesser extent, operating expenses. An impairment loss would be recognized when these undiscounted future cash flows are less than carrying amount of the asset group. In the circumstance of impairment, the loss would be measured as the excess of the carrying amount of the asset group over its fair value. The key assumptions used in estimating the fair value of impaired assets may include projected cash flows and discount rate. See Note 5, “ PROPERTY AND EQUIPMENT, NET, ” for further discussion. The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years. |
Income taxes | Income taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary differences are expected to reverse. Inherent in the determination of the Company's income tax liability and related deferred income tax balances are certain judgments and interpretations of enacted tax law and published guidance with respect to applicability to the Company's operations. The Company is subject to audit by taxing authorities, usually several years after tax returns have been filed, and the taxing authorities may have differing interpretations of tax laws. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt income, the settlement of tax audits and changes in tax legislation and/or regulations. At the beginning of the fourth quarter of Fiscal 2015, the Company restructured its international operations to support its omnichannel initiatives. As a result of the restructuring, the Company no longer believes that future net income as of the date of the restructuring will be indefinitely reinvested and as such is providing a deferred U.S. income tax liability for the additional taxes due upon a future repatriation. See Note 10, “ INCOME TAXES, ” for a discussion regarding the Company’s policies for uncertain tax positions. |
Foreign currency translation and transactions | Foreign currency translation and transactions The functional currencies of the Company’s foreign subsidiaries are generally the respective local currencies in the countries in which they operate. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars (the reporting currency) at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in foreign currencies are translated into U.S. Dollars at historical exchange rates. Revenues and expenses denominated in foreign currencies are translated into U.S. Dollars at the monthly average exchange rate for the period. Gains and losses resulting from foreign currency transactions are included in the results of operations; whereas, translation adjustments and inter-company loans of a long-term investment nature are reported as an element of Other Comprehensive Income (Loss). Foreign currency transactions resulted in a loss of $1.5 million for Fiscal 2015 , a loss of $2.0 million for Fiscal 2014 and a gain of $2.9 million for Fiscal 2013 |
Derivative instruments | DERIVATIVE INSTRUMENTS The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes. In order to qualify for hedge accounting treatment, a derivative instrument must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The extent to which a hedging instrument has been, and is expected to continue to be, effective at offsetting changes in fair value or cash flows is assessed and documented at least quarterly. Any hedge ineffectiveness is reported in current period earnings and hedge accounting is discontinued if it is determined that the derivative instrument is not highly effective. For derivative instruments that either do not qualify for hedge accounting or are not designated as hedges, all changes in the fair value of the derivative instrument are recognized in earnings. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative instrument is recorded as a component of other comprehensive income (loss) (“OCI”) and recognized in earnings when the hedged cash flows affect earnings. The ineffective portion of the derivative instrument gain or loss is recognized in current period earnings. The effectiveness of the hedge is assessed based on changes in the fair value attributable to changes in spot prices. The changes in the fair value of the derivative instrument related to the changes in the difference between the spot price and the forward price are excluded from the assessment of hedge effectiveness and are also recognized in current period earnings. If the cash flow hedge relationship is terminated, the derivative instrument gains or losses that are deferred in OCI will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, or a two -month period thereafter, the derivative instrument gains or losses are immediately recognized in earnings. The Company uses derivative instruments, primarily forward contracts designated as cash flow hedges, to hedge the foreign currency exposure associated with forecasted foreign-currency-denominated inter-company inventory sales to foreign subsidiaries and the related settlement of the foreign-currency-denominated inter-company receivables. Fluctuations in exchange rates will either increase or decrease the Company’s inter-company equivalent cash flows and affect the Company’s U.S. Dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date. These forward contracts typically have a maximum term of twelve months . The sale of the inventory to the Company’s customers will result in the reclassification of related derivative gains and losses that are reported in accumulated other comprehensive loss ("AOCL"). Substantially all of the unrealized gains or losses related to designated cash flow hedges as of January 30, 2016 will be recognized in cost of sales, exclusive of depreciation and amortization over the next twelve months. |
Stockholders' equity | Stockholders’ equity At January 30, 2016 and January 31, 2015 , there were 150.0 million shares of A&F’s Class A Common Stock, $0.01 par value, authorized, of which 67.3 million and 69.4 million were outstanding at January 30, 2016 and January 31, 2015 , respectively, and 106.4 million shares of Class B Common Stock, $0.01 par value, authorized, of which none were outstanding at January 30, 2016 and January 31, 2015 . Holders of Class A Common Stock generally have identical rights to holders of Class B Common Stock, except holders of Class A Common Stock are entitled to one vote per share while holders of Class B Common Stock are entitled to three votes per share on all matters submitted to a vote of stockholders. |
Revenue recognition | Revenue recognition The Company recognizes store sales at the time the customer takes possession of the merchandise. Direct-to-consumer sales are recorded based on an estimated date for customer receipt of merchandise, which is based on shipping terms and historical delivery transit times. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as net sales and the related direct shipping and handling costs are classified as stores and distribution expense in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Sales are recorded net of an allowance for estimated returns, associate discounts, and promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience. The sales return reserve was $8.9 million , $9.5 million and $8.0 million at January 30, 2016 , January 31, 2015 and February 1, 2014 , respectively. The Company sells gift cards in its stores and through direct-to-consumer operations. The Company accounts for gift cards sold to customers by recognizing a liability at the time of sale. Gift cards sold to customers do not expire or lose value over periods of inactivity. The liability remains on the Company’s books until the Company recognizes income from gift cards. Income from gift cards is recognized at the earlier of redemption by the customer (recognized as net sales) or when the Company determines that the likelihood of redemption is remote, referred to as gift card breakage (recognized as other operating income). The Company determines the probability of the gift card being redeemed to be remote based on historical redemption patterns. The gift card liability was $36.4 million and $36.9 million at January 30, 2016 and January 31, 2015 , respectively. The Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company recognized in other operating income gift card breakage of $4.7 million , $5.8 million and $8.8 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The Company does not include tax amounts collected as part of the sales transaction in its net sales results. |
Cost of sales, exclusive of depreciation and amortization | Cost of sales, exclusive of depreciation and amortization Cost of sales, exclusive of depreciation and amortization, is primarily comprised of cost incurred to ready inventory for sale, including product costs, freight, and import cost, as well as provisions for reserves for shrink and lower of cost or market. Gains and losses associated with foreign currency exchange contracts related to hedging of inventory purchases are also recognized in cost of sales, exclusive of depreciation and amortization when the inventory being hedged is sold. |
Stores and distribution expense | Stores and distribution expense Stores and distribution expense includes store payroll, store management, rent, utilities and other landlord expenses, depreciation and amortization, repairs and maintenance and other store support functions, as well as direct-to-consumer expense and distribution center (“DC”) expense. Shipping and handling costs, including costs incurred to store, move and prepare merchandise for shipment, and costs incurred to physically move merchandise to customers, associated with direct-to-consumer operations, were $115.0 million , $108.1 million and $93.4 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Handling costs, including costs incurred to store, move and prepare merchandise for shipment to stores, were $44.5 million , $52.2 million and $53.9 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. These amounts are recorded in stores and distribution expense in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Costs incurred to physically move merchandise to stores is recorded in cost of sales, exclusive of depreciation and amortization in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). |
Marketing, general & administrative expense | Marketing, general & administrative expense Marketing, general and administrative expense includes: photography and social media; store marketing; home office compensation, except for those departments included in stores and distribution expense; information technology; outside services such as legal and consulting; relocation; recruiting; samples; and travel expenses. |
Restructuring charge | Restructuring charge Restructuring charge consists of exit costs and other costs associated with the reorganization of the Company's operations, including employee termination costs, lease contract termination costs, impairment of assets, and any other qualifying exit costs. Costs associated with exit or disposal activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company's best estimates. |
Other operating income, net | Other operating income, net Other operating income, net included income of $2.2 million , $10.2 million and $9.0 million related to insurance recoveries for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively; and income of $4.7 million , $5.8 million and $8.8 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively, related to gift card balances whose likelihood of redemption has been determined to be remote. |
Advertising costs | Advertising costs Advertising costs are comprised of in-store photography, e-mail distribution and other digital direct advertising and other media advertising and are reported on the Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising costs related specifically to direct-to-consumer operations are expensed as incurred as a component of stores and distribution expense. The production of in-store photography and signage are expensed when the marketing campaign commences as a component of marketing, general and administrative expense. All other advertising costs are expensed as incurred as a component of marketing, general and administrative expense. The Company recognized $80.7 million , $84.6 million and $68.1 million in advertising expense in Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. |
Leased facilities | Leased facilities The Company leases property for its stores under operating leases. Lease agreements may contain construction allowances, rent escalation clauses and/or contingent rent provisions. Annual store rent is comprised of a fixed minimum amount and/or contingent rent based on a percentage of sales. For construction allowances, the Company records a deferred lease credit on the Consolidated Balance Sheets and amortizes the deferred lease credit as a reduction of rent expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) over the term of the lease. For scheduled rent escalation clauses during the lease term, the Company records minimum rental expense on a straight-line basis over the term of the lease on the Consolidated Statements of Operations and Comprehensive Income (Loss). The difference between rent expense and the amounts paid under the lease, less amounts attributable to the repayment of construction allowances recorded as deferred rent, is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. The term over which the Company amortizes construction allowances and minimum rental expenses on a straight-line basis begins on the date of initial possession, which is generally when the Company enters the space and begins construction. Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets, and the corresponding rent expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) on a ratable basis over the measurement period when it is determined that achieving the specified levels during the fiscal year is probable. In addition, most leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. A summary of rent expense follows: (in thousands) 2015 2014 2013 Store rent: Fixed minimum (1) $ 404,836 $ 432,794 $ 464,937 Contingent 10,161 8,886 8,624 Deferred lease credits amortization (28,619 ) (38,437 ) (45,899 ) Total store rent expense 386,378 403,243 427,662 Buildings, equipment and other 3,849 4,619 4,987 Total rent expense $ 390,227 $ 407,862 $ 432,649 (1) Includes lease termination fees of $3.3 million , $12.4 million and $39.2 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Fiscal 2015 includes a benefit of $1.6 million related to better than expected lease exit terms associated with the closure of the Gilly Hicks stand-alone stores. Fiscal 2014 and Fiscal 2013 include lease termination fees of $6.8 million and $39.1 million , respectively, related to the Gilly Hicks restructuring. At January 30, 2016 , the Company was committed to non-cancelable leases with remaining terms of one to 15 years. Excluded from the obligations below are portions of lease terms that are currently cancelable at the Company's discretion without condition. While included in the obligations below, in many instances the Company has options to terminate certain leases if stated sales volume levels are not met or the Company ceases operations in a given country, which may be subject to lease termination policies. A summary of operating lease commitments, including leasehold financing obligations, under non-cancelable leases follows: (in thousands) Fiscal 2016 $ 388,501 Fiscal 2017 $ 327,244 Fiscal 2018 $ 240,877 Fiscal 2019 $ 193,747 Fiscal 2020 $ 155,732 Thereafter $ 423,303 |
Leasehold financing obligations | Leasehold financing obligations In certain lease arrangements, the Company is involved in the construction of a building and is deemed to be the owner of the construction project. In those instances, the Company records an asset for the amount of the total project costs, including the portion funded by the landlord, and an amount related to the value attributed to the pre-existing leased building in property and equipment, net, and a corresponding financing obligation in leasehold financing obligations, on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company allocates a portion of its rent obligation to the assets which are owned for accounting purposes as a reduction of the financing obligation and interest expense. As of January 30, 2016 and January 31, 2015 , the Company had $47.4 million and $50.5 million , respectively, of long-term liabilities related to leasehold financing obligations. Total interest expense related to landlord financing obligations was $5.3 million , $6.2 million and $6.6 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. |
Store pre-opening expenses | Store pre-opening expenses Pre-opening expenses related to new store openings are expensed as incurred and are reflected as a component of "stores and distribution expense." |
Design and development costs | Design and development costs Costs to design and develop the Company’s merchandise are expensed as incurred and are reflected as a component of “marketing, general and administrative expense.” |
Net income per share | Net income per share Net income per basic and diluted share is computed based on the weighted-average number of outstanding shares of common stock. The following table presents weighted-average shares outstanding and anti-dilutive shares: (in thousands) 2015 2014 2013 Shares of common stock issued 103,300 103,300 103,300 Weighted-average treasury shares (34,420 ) (31,515 ) (26,143 ) Weighted-average — basic shares 68,880 71,785 77,157 Dilutive effect of share-based compensation awards 537 1,152 1,509 Weighted-average — diluted shares 69,417 72,937 78,666 Anti-dilutive shares (1) 8,967 6,144 4,630 (1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income per diluted share because the impact would have been anti-dilutive. |
Share-based compensation | The fair value of share-based compensation awards is recognized as compensation expense primarily on a straight-line basis over the awards’ requisite service period, net of estimated forfeitures, with the exception of performance share awards. Performance share award expense is primarily recognized in the performance period of the awards' requisite service period. For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation expense is recognized. A current tax deduction arises upon the vesting of restricted stock units and performance share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic value. If the tax deduction is greater than the recorded deferred tax asset, the tax benefit associated with any excess deduction is considered an excess tax benefit and is recognized as additional paid-in capital. If the tax deduction is less than the recorded deferred tax asset, the resulting difference, or shortfall, is first charged to additional paid-in capital, to the extent of the windfall pool of excess tax benefits, with any remainder recognized as tax expense. The Company’s windfall pool of excess tax benefits as of January 30, 2016 , is sufficient to fully absorb any shortfall which may develop associated with awards currently outstanding. The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures and for changes to the estimate of expected award forfeitures. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. The effect of adjustments for forfeitures was $5.6 million , $2.6 million and $2.3 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. The Company issues shares of Common Stock from treasury stock upon exercise of stock options and stock appreciation rights and vesting of restricted stock units, including those converted from performance share awards. As of January 30, 2016 , the Company had sufficient treasury stock available to settle stock options, stock appreciation rights, restricted stock units and performance share awards outstanding. Settlement of stock awards in Common Stock also requires that the Company have sufficient shares available in stockholder-approved plans at the applicable time. In the event, at each reporting date during which share-based compensation awards remain outstanding, there are not sufficient shares of Common Stock available to be issued under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan (the “2007 LTIP”) and the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan (the “2005 LTIP”), or under a successor or replacement plan, the Company may be required to designate some portion of the outstanding awards to be settled in cash, which would result in liability classification of such awards. The fair value of liability-classified awards is re-measured each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered. Plans As of January 30, 2016 , the Company had two primary share-based compensation plans: the 2005 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company and non-associate members of the Company's Board of Directors, and the 2007 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company. The Company also has four other share-based compensation plans under which it granted stock options and restricted stock units to associates of the Company and non-associate members of the the Company's Board of Directors in prior years. The 2007 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 2.0 million of underlying shares of the Company's Common Stock for each type of award, per eligible participant, plus any unused annual limit from prior years. The 2005 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 250,000 of underlying shares of the Company's Common Stock for each award type to any associate of the Company (other than the Chief Executive Officer (the "CEO")) who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, at the time of the grant, plus any unused annual limit from prior years. In addition, any non-associate director of the Company is eligible to receive awards under the 2005 LTIP. Under both plans, stock appreciation rights and restricted stock units vest primarily over four years for associates, while performance share awards are primarily earned and vest over the performance period. Under the 2005 LTIP, restricted stock units typically vest after approximately one year for non-associate directors of the Company. Under both plans, stock options have a ten -year term and stock appreciation rights have up to a ten -year term, subject to forfeiture under the terms of the plans. The plans provide for accelerated vesting if there is a change of control and certain additional conditions are met as defined in the plans. |
Recent accounting pronouncements | Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could affect the Company's financial statements: Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Standards adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs This standard amends ASC 835, Interest—Imputation of Interest. The amendment provides guidance on the financial statement presentation of debt issuance costs as a direct reduction of a liability when associated with a liability. February 1, 2015 The adoption of this guidance impacted the Company's consolidated financial statements by approximately $0.6 million. ASU 2015-15, Simplifying the Presentation of Debt Issuance Costs This standard amends ASC 835, Interest—Imputation of Interest. The amendment provides guidance on the financial statement presentation of debt issuance costs associated with line-of-credit arrangements as an asset regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. August 2, 2015 The adoption of this guidance did not have any impact on the Company's consolidated financial statements. ASU 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes This standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. November 1, 2015 The adoption of this standard resulted in the prospective reclassification of all current deferred tax assets and liabilities to noncurrent in the Company's consolidated balance sheet. Standards not yet adopted ASU 2014-09, Revenue from Contracts with Customers This standard supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)." The new ASC guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. February 4, 2018 The Company is currently evaluating the potential impact of this standard. ASU 2014-15 , Presentation of Financial Statements—Going Concern This standard requires, for each annual and interim reporting period, an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. January 30, 2016* The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. ASU 2015-11, Simplifying the Measurement of Inventory This standard amends ASC 330, Inventory . This amendment applies to inventory measured using first-in, first-out (FIFO) or average cost. Under this amendment, inventory should be measured at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 29, 2017* The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. ASU 2016-02, Leases This standard supersedes the leasing requirements in "Leases (Topic 840)." The new ASC guidance requires an entity to recognize lease assets and lease liabilities, classified as operating leases, on the balance sheet and disclose key leasing information that depicts the lease rights and obligations of an entity. Febuary 4, 2019* The Company is currently evaluating the potential impact of this standard. * Early adoption is permitted. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Rent Expense | A summary of rent expense follows: (in thousands) 2015 2014 2013 Store rent: Fixed minimum (1) $ 404,836 $ 432,794 $ 464,937 Contingent 10,161 8,886 8,624 Deferred lease credits amortization (28,619 ) (38,437 ) (45,899 ) Total store rent expense 386,378 403,243 427,662 Buildings, equipment and other 3,849 4,619 4,987 Total rent expense $ 390,227 $ 407,862 $ 432,649 (1) Includes lease termination fees of $3.3 million , $12.4 million and $39.2 million for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 , respectively. Fiscal 2015 includes a benefit of $1.6 million related to better than expected lease exit terms associated with the closure of the Gilly Hicks stand-alone stores. Fiscal 2014 and Fiscal 2013 include lease termination fees of $6.8 million and $39.1 million , respectively, related to the Gilly Hicks restructuring. |
Schedule of Operating Lease Commitments Under Non-Cancelable Leases | A summary of operating lease commitments, including leasehold financing obligations, under non-cancelable leases follows: (in thousands) Fiscal 2016 $ 388,501 Fiscal 2017 $ 327,244 Fiscal 2018 $ 240,877 Fiscal 2019 $ 193,747 Fiscal 2020 $ 155,732 Thereafter $ 423,303 |
Schedule of Weighted Average Number of Shares | The following table presents weighted-average shares outstanding and anti-dilutive shares: (in thousands) 2015 2014 2013 Shares of common stock issued 103,300 103,300 103,300 Weighted-average treasury shares (34,420 ) (31,515 ) (26,143 ) Weighted-average — basic shares 68,880 71,785 77,157 Dilutive effect of share-based compensation awards 537 1,152 1,509 Weighted-average — diluted shares 69,417 72,937 78,666 Anti-dilutive shares (1) 8,967 6,144 4,630 (1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income per diluted share because the impact would have been anti-dilutive. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The carrying amount and fair value of the Company's term loan facility were as follows: (in thousands) January 30, 2016 January 31, 2015 Gross borrowings outstanding, carrying amount $ 293,250 $ 299,250 Gross borrowings outstanding, fair value $ 284,453 $ 295,135 |
Schedule of the Company's Assets and Liabilities measured at Fair Value | The three levels of the hierarchy and the distribution within it of the Company’s assets and liabilities, measured at fair value on a recurring basis, were as follows: Assets and Liabilities at Fair Value as of January 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 311,349 $ — $ — $ 311,349 Derivative financial instruments — 4,166 — 4,166 Total assets measured at fair value $ 311,349 $ 4,166 $ — $ 315,515 Assets and Liabilities at Fair Value as of January 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 122,047 $ — $ — $ 122,047 Derivative financial instruments — 10,293 — 10,293 Total assets measured at fair value $ 122,047 $ 10,293 $ — $ 132,340 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Inventory [Line Items] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net consisted of: (in thousands) January 30, 2016 January 31, 2015 Inventories $ 466,918 $ 484,865 Less: Lower of cost or market reserve (19,616 ) (12,707 ) Less: Shrink reserve (10,601 ) (11,364 ) Inventories, net $ 436,701 $ 460,794 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of: (in thousands) January 30, 2016 January 31, 2015 Land $ 37,451 $ 37,473 Buildings 287,081 286,820 Furniture, fixtures and equipment 682,013 653,929 Information technology 479,269 427,879 Leasehold improvements 1,283,613 1,338,206 Construction in progress 19,875 49,836 Other 3,135 3,107 Total $ 2,792,437 $ 2,797,250 Less: Accumulated depreciation and amortization (1,898,259 ) (1,830,249 ) Property and equipment, net $ 894,178 $ 967,001 |
RABBI TRUST ASSETS (Tables)
RABBI TRUST ASSETS (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of Rabbi Trust Assets | Investments of Rabbi Trust assets consisted of the following: (in thousands) January 30, 2016 January 31, 2015 Rabbi Trust assets: Trust-owned life insurance policies (at cash surrender value) $ 96,567 $ 93,424 Money market funds 23 24 Total Rabbi Trust assets $ 96,590 $ 93,448 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of: (in thousands) January 30, 2016 January 31, 2015 Rabbi Trust $ 96,590 $ 93,448 Deferred tax assets 89,677 96,999 Long-term deposits 64,098 64,415 Intellectual property 28,057 27,943 Long-term supplies 25,475 31,565 Restricted cash 20,581 14,835 Prepaid income tax on intercompany items 7,344 9,968 Other 28,059 34,021 Other assets $ 359,881 $ 373,194 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of: (in thousands) January 30, 2016 January 31, 2015 Accrued payroll and related costs $ 60,464 $ 56,384 Gift card liability 36,384 36,936 Accrued taxes 37,203 34,629 Construction in progress 43,129 30,661 Accrued rent 24,739 25,607 Other 119,318 98,519 Accrued expenses $ 321,237 $ 282,736 |
DEFERRED LEASE CREDITS (Tables)
DEFERRED LEASE CREDITS (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Lease Credits [Abstract] | |
Schedule of Deferred Lease Credits | The amounts, which are amortized over the respective terms of the related leases, consisted of the following: (in thousands) January 30, 2016 January 31, 2015 Deferred lease credits $ 472,279 $ 490,452 Amortized deferred lease credits (359,720 ) (357,430 ) Total deferred lease credits, net 112,559 133,022 Less: short-term portion of deferred lease credits (23,303 ) (26,629 ) Long-term portion of deferred lease credits $ 89,256 $ 106,393 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before taxes was comprised of: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Domestic $ 8,412 $ 100,115 $ 37,325 Foreign 46,178 (961 ) 35,952 Total $ 54,590 $ 99,154 $ 73,277 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for tax expense consisted of: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Current: Federal $ (3,124 ) $ 21,287 $ 52,579 State (434 ) 1,944 (4,988 ) Foreign 12,120 28,614 17,851 8,562 51,845 65,442 Deferred: Federal 9,224 8,971 (36,732 ) State 3,297 1,783 (4,606 ) Foreign (5,052 ) (15,266 ) (5,455 ) 7,469 (4,512 ) (46,793 ) Total provision $ 16,031 $ 47,333 $ 18,649 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: Fiscal 2015 Fiscal 2014 Fiscal 2013 U.S. Federal income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of U.S. federal income tax effect 4.6 4.3 (4.1 ) Foreign taxation of non-U.S. operations (10.2 ) 5.4 2.0 U.S. taxation of non-U.S. operations 20.0 — — Net change in valuation allowances (8.7 ) 6.6 0.1 Audit and other adjustments to prior years' accruals (8.7 ) (1.3 ) (5.6 ) Statutory tax rate and law changes 4.2 0.2 — Permanent items (4.6 ) (1.1 ) — Credit items (2.3 ) (1.2 ) (2.8 ) Other items, net 0.1 (0.2 ) 0.9 Total 29.4 % 47.7 % 25.5 % |
Schedule of Deferred Tax Assets and Liabilities | The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows: (in thousands) January 30, 2016 January 31, 2015 Deferred tax assets: Deferred compensation $ 62,679 $ 83,157 Accrued expenses and reserves 19,862 17,695 Rent 36,929 38,881 Net operating losses (NOL) and credit carryforwards 14,248 14,897 Investments in subsidiaries 2,895 — Other 619 1,403 Valuation allowances (1,643 ) (6,730 ) Total deferred tax assets $ 135,589 $ 149,303 Deferred tax liabilities: Property, equipment and intangibles $ (20,708 ) $ (16,059 ) Inventory (9,480 ) (11,332 ) Store supplies (6,054 ) (7,046 ) Prepaid expenses (3,653 ) (2,438 ) Undistributed net income of non-U.S. subsidiaries (4,390 ) — Other (1,011 ) (1,424 ) Total deferred tax liabilities (45,296 ) (38,299 ) Net deferred income tax assets $ 90,293 $ 111,004 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Uncertain tax positions, beginning of the year $ 3,212 $ 4,182 $ 11,116 Gross addition for tax positions of the current year 13 152 449 Gross addition for tax positions of prior years 598 33 30 Reductions of tax positions of prior years for: Lapses of applicable statutes of limitations (986 ) (348 ) (2,880 ) Settlements during the period (64 ) (4 ) (3,936 ) Changes in judgment/ excess reserve (318 ) (803 ) (597 ) Uncertain tax positions, end of year $ 2,455 $ 3,212 $ 4,182 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Net borrowings as of January 30, 2016 and January 31, 2015 were as follows: (in thousands) January 30, 2016 January 31, 2015 Borrowings, gross at carrying amount $ 293,250 $ 299,250 Unamortized discount (1,929 ) (2,786 ) Unamortized fees paid to lenders (5,086 ) (3,052 ) Borrowings, net 286,235 293,412 Less: short-term portion of borrowings, net of discount and fees — (2,102 ) Long-term portion of borrowings, net $ 286,235 $ 291,310 |
Schedule of Future Payments of the Term Loan Facility | A summary of future minimum payments under the Term Loan facility is as follows: (in thousands) Fiscal 2016 (1) $ — Fiscal 2017 $ 3,000 Fiscal 2018 $ 3,000 Fiscal 2019 $ 3,000 Fiscal 2020 $ 3,000 Thereafter $ 281,250 (1) The Company prepaid its regularly scheduled Fiscal 2016 principal payments in January 2016. |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities consisted of: (in thousands) January 30, 2016 January 31, 2015 Accrued straight-line rent $ 90,445 $ 99,108 Deferred compensation 48,058 56,244 Other 41,180 25,934 Other liabilities $ 179,683 $ 181,286 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for Fiscal 2015 : Number of Underlying Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 328,100 $ 64.64 Granted — — Exercised — — Forfeited or expired (57,100 ) 72.16 Outstanding at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8 Stock options exercisable at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8 |
Schedule of Stock Appreciation Rights Activity | The following table summarizes stock appreciation rights activity for Fiscal 2015 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 8,953,675 $ 40.28 Granted 715,858 21.71 Exercised (1,550,000 ) 22.23 Forfeited or expired (2,818,418 ) 36.58 Outstanding at January 30, 2016 5,301,115 $ 45.02 $ 2,827,754 3.6 Stock appreciation rights exercisable at January 30, 2016 4,288,337 $ 48.75 $ 11,657 2.3 Stock appreciation rights expected to become exercisable in the future as of January 30, 2016 897,471 $ 29.73 $ 2,352,008 8.6 |
Schedule of Weighted-Average Estimated Fair Value and Assumptions of Stock Appreciation Rights | The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during Fiscal 2015 , Fiscal 2014 and Fiscal 2013 were as follows: Executive Officers All Other Associates 2015 2014 2013 2015 2014 2013 Grant date market price $ 22.46 $ 35.08 $ 46.57 $ 22.42 $ 37.05 $ 43.86 Exercise price $ 22.46 $ 35.49 $ 46.57 $ 22.42 $ 37.22 $ 43.86 Fair value $ 9.11 $ 12.85 $ 20.34 $ 8.00 $ 12.92 $ 16.17 Assumptions: Price volatility 49 % 49 % 61 % 49 % 50 % 53 % Expected term (years) 6.1 4.9 4.7 4.3 4.1 4.1 Risk-free interest rate 1.5 % 1.6 % 0.7 % 4.2 % 1.4 % 0.7 % Dividend yield 1.7 % 2.0 % 1.8 % 1.7 % 1.9 % 1.8 % |
Schedule of Restricted Stock Unit Activity | The following table summarizes activity for restricted stock units for Fiscal 2015 : Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Unvested at January 31, 2015 1,566,272 $ 37.84 205,420 $ 32.06 36,374 $ 40.13 Granted 1,117,321 20.68 113,331 20.10 113,337 19.04 Adjustments for performance achievement — — (28,250 ) 36.14 — — Vested (637,837 ) 37.01 (48,668 ) 38.24 — — Forfeited (374,159 ) 31.37 (56,333 ) 29.05 (32,000 ) 21.07 Unvested at January 30, 2016 1,671,597 $ 28.13 185,500 $ 23.42 117,711 $ 25.00 |
Market-based Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Weighted-Average Estimated Fair Value and Assumptions of Market-based Restricted Stock Units | The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during Fiscal 2015 and Fiscal 2014 were as follows: Fiscal 2015 Fiscal 2014 Grant date market price $ 22.46 $ 36.20 Fair value $ 19.04 $ 40.42 Assumptions: Price volatility 45 % 49 % Expected term (years) 2.8 2.7 Risk-free interest rate 0.9 % 0.8 % Dividend yield 3.5 % 2.2 % Average volatility of peer companies 34.0 % 36.0 % Average correlation coefficient of peer companies 0.3288 0.3704 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Foreign Exchange Forward Contracts | As of January 30, 2016 , the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated intercompany inventory sales, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both: (in thousands) Notional Amount (1) Euro $ 94,700 British pound $ 22,029 Canadian dollar $ 8,617 (1) Amounts are reported in U.S. Dollars equivalent as of January 30, 2016 . As of January 30, 2016 , the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: (in thousands) Notional Amount (1) Euro $ 8,714 Switzerland franc $ 3,933 (1) Amounts are reported in U.S. Dollars equivalent as of January 30, 2016 . |
Schedule of Locations and Amounts of Derivative Fair Values on the Consolidated Balance Sheets | The location and amounts of derivative fair values on the Consolidated Balance Sheets as of January 30, 2016 and January 31, 2015 were as follows: Asset Derivatives Liability Derivatives (in thousands) Location January 30, 2016 January 31, 2015 Location January 30, 2016 January 31, 2015 Derivatives designated as hedging instruments: Foreign currency exchange forward contracts Other current assets $ 4,097 $ 10,283 Accrued expenses $ — $ — Derivatives not designated as hedging instruments: Foreign currency exchange forward contracts Other current assets $ 69 $ 10 Accrued expenses $ — $ — Total Other current assets $ 4,166 $ 10,293 Accrued expenses $ — $ — |
Schedule of Locations and Amounts of Derivative Gains (Losses) on the Consolidated Statements of Operations and Comprehensive Income | The location and amounts of derivative gains and losses for Fiscal 2015 and Fiscal 2014 on the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: Fiscal 2015 Fiscal 2014 (in thousands) Location Gain/(Loss) Gain/(Loss) Derivatives not designated as hedging instruments: Foreign currency exchange forward contracts Other operating income, net $ 751 $ 2,537 Effective Portion Ineffective Portion and Amount Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (1) Location of Gain (Loss) Reclassified from AOCL into Earnings Amount of Gain (Loss) Reclassified from AOCL into Earnings (2) Location of Gain Recognized in Earnings on Derivative Contracts Amount of Gain Recognized in Earnings on Derivative Contracts (3) (in thousands) January 30, January 31, January 30, January 31, January 30, January 31, Derivatives in cash flow hedging relationships: Foreign currency exchange forward contracts $ 7,204 $ 16,572 Cost of sales, exclusive of depreciation and amortization $ 15,596 $ 440 Other operating income, net $ 242 $ 215 |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Equity [Abstract] | |||
Schedule of Accumulated Other Comprehensive (Loss) Income | The activity in accumulated other comprehensive loss for Fiscal 2015 was as follows: Fiscal 2015 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance at January 31, 2015 $ 13,100 $ (96,680 ) $ (83,580 ) Other comprehensive income (loss) before reclassifications 7,204 (22,623 ) (15,419 ) Reclassified from accumulated other comprehensive (loss) income (1) (15,596 ) — (15,596 ) Tax effect on other comprehensive income (loss) (131 ) 107 (24 ) Other comprehensive income (loss) (8,523 ) (22,516 ) (31,039 ) Ending balance at January 30, 2016 $ 4,577 $ (119,196 ) $ (114,619 ) (1) For Fiscal 2015 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). Additionally, a foreign currency translation loss related to the Company's dissolution of its Australian operations was reclassified to other operating income, net. | The activity in accumulated other comprehensive loss for Fiscal 2014 was as follows: Fiscal 2014 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance February 1, 2014 $ (2,166 ) $ (18,751 ) $ (20,917 ) Other comprehensive income (loss) before reclassifications 16,572 (76,891 ) (60,319 ) Reclassified from accumulated other comprehensive (loss) income (1) (440 ) — (440 ) Tax effect on other comprehensive income (loss) (866 ) (1,038 ) (1,904 ) Other comprehensive income (loss) 15,266 (77,929 ) (62,663 ) Ending balance at January 31, 2015 $ 13,100 $ (96,680 ) $ (83,580 ) (1) For Fiscal 2014 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | (1) For Fiscal 2014 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). The activity in accumulated other comprehensive loss for Fiscal 2013 was as follows: Fiscal 2013 (in thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Total Beginning balance February 2, 2013 $ (7,220 ) $ (6,068 ) $ (13,288 ) Other comprehensive income (loss) before reclassifications 6,435 (12,683 ) (6,248 ) Reclassified from accumulated other comprehensive (loss) income (1) (857 ) — (857 ) Tax effect on other comprehensive income (loss) (524 ) — (524 ) Other comprehensive income (loss) 5,054 (12,683 ) (7,629 ) Ending balance at February 1, 2014 $ (2,166 ) $ (18,751 ) $ (20,917 ) (1) For Fiscal 2013 , a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
GILLY HICKS RESTRUCTURING (Tabl
GILLY HICKS RESTRUCTURING (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of pre-tax charges incurred to-date related to the closure of the Gilly Hicks stores | Below is a summary of the aggregate pre-tax charges incurred through January 30, 2016 related to the closure of the Gilly Hicks branded stores: (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 Total Lease terminations and store closure (benefits) costs $ (1,598 ) $ 5,998 $ 42,667 $ 47,067 Asset impairment — 2,096 37,940 40,036 Other — 337 893 1,230 Total (benefits) charges $ (1,598 ) $ 8,431 $ 81,500 $ 88,333 Costs associated with exit or disposal activities are recorded when the liability is incurred. During Fiscal 2015, the Company's liability related to the Gilly Hicks restructuring decreased from approximately $6.0 million to approximately $2.1 million , as of January 30, 2016 , as a result of lease termination benefits and cash payments applied against the liability. |
SEGMENT REPORTING Reconciliatio
SEGMENT REPORTING Reconciliation of Long-lived assets to Consolidated (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The following table provides the Company’s long-lived assets by geographic area for Fiscal 2015 , Fiscal 2014 and Fiscal 2013 . (in thousands) Fiscal 2015 Fiscal 2014 Fiscal 2013 United States $ 548,983 $ 556,967 $ 580,610 Europe 263,977 332,435 446,345 Other 109,275 105,542 135,373 Total $ 922,235 $ 994,944 $ 1,162,328 |
QUARTERLY FINANCIAL DATA (UNA45
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for Fiscal 2015 and Fiscal 2014 are presented below. See “RESULTS OF OPERATIONS,” in “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS,” of this Annual Report on Form 10-K for information regarding items included below that could affect comparability between quarter results. (in thousands, except per share amounts) Fiscal Quarter 2015 First Second Third Fourth Net sales $ 709,422 $ 817,756 $ 878,572 $ 1,112,930 Gross profit $ 411,549 $ 509,862 $ 559,787 $ 676,345 Net income (loss) $ (63,246 ) $ 612 $ 42,285 $ 58,908 Net income (loss) attributable to A&F (2)(4) $ (63,246 ) $ (810 ) $ 41,891 $ 57,741 Net income (loss) per diluted share attributable to A&F (1) $ (0.91 ) $ (0.01 ) $ 0.60 $ 0.85 (in thousands, except per share amounts) Fiscal Quarter 2014 First Second Third Fourth Net sales $ 822,428 $ 890,605 $ 911,453 $ 1,119,544 Gross profit $ 511,659 $ 552,956 $ 567,070 $ 681,885 Net income (loss) $ (23,671 ) $ 12,877 $ 18,227 $ 44,388 Net income (loss) attributable to A&F (3)(5) $ (23,671 ) $ 12,877 $ 18,227 $ 44,388 Net income (loss) per diluted share attributable to A&F (1) $ (0.32 ) $ 0.17 $ 0.25 $ 0.63 (1) Net income (loss) per diluted share for each of the quarters was computed using the weighted average number of shares outstanding during the quarter while the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of the quarters may not equal the total for the year. (2) Net income (loss) attributable to A&F for Fiscal 2015 included certain items related to inventory write-down, asset impairment, legal settlement charges, store fixture disposal, the Company’s profit improvement initiative, lease termination and store closure costs and restructuring. These items adversely impacted in net income (loss) attributable to A&F by $26.1 million , $9.4 million and $16.0 million for the first, second and fourth quarters of Fiscal 2015, respectively, and increased net income attributable to A&F by $9.0 million for the third quarter of Fiscal 2015. (3) Net income (loss) attributable to A&F for Fiscal 2014 included certain items related to asset impairment, the Company’s profit improvement initiative, lease termination and store closure costs, restructuring and corporate governance matters. These items adversely impacted net income (loss) attributable to A&F by $10.7 million , $1.2 million , $12.2 million and $36.4 million for the first, second, third and fourth quarters of Fiscal 2015, respectively. (4) Net income (loss) attributable to A&F for Fiscal 2015 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period resulted in a decrease in net income attributable to A&F of $2.6 million and $1.9 million for the second and fourth quarters of Fiscal 2015, respectively, and an increase in net income attributable to A&F of $1.2 million for the third quarter of Fiscal 2015. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. (5) Net income (loss) attributable to A&F for Fiscal 2014 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period adversely impacted net income (loss) attributable to A&F by $0.9 million , $0.9 million , $0.8 million and $0.1 million for the first, second, third and fourth quarters of Fiscal 2014, respectively. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016USD ($)voting_right / shares$ / sharesshares | Jan. 31, 2015USD ($)$ / sharesshares | Feb. 01, 2014USD ($)shares | ||
Accounting Policies [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount, Pre-Tax | $ 2,000 | $ 2,900 | ||
Maturity Period Of Cash Equivalents | 3 months | |||
Restricted cash | ||||
Restricted cash | $ 20,581 | 14,835 | ||
Foreign currency translation and transactions: | ||||
Foreign currency transaction gain (loss), before tax | 1,500 | 2,000 | $ (2,900) | |
Revenue recognition | ||||
Estimated reserve for sales returns | 8,900 | 9,500 | 8,000 | |
Gift card liability | 36,384 | 36,936 | ||
Operating income for gift card breakage | 4,700 | 5,800 | 8,800 | |
Stores and distribution expense | ||||
Handling costs | 44,500 | 52,200 | 53,900 | |
Other operating income, net | ||||
Insurance Recoveries | 2,200 | 10,200 | 9,000 | |
Advertising costs | ||||
Advertising expense | 80,700 | 84,600 | 68,100 | |
Leases | ||||
Fixed minimum(1) | [1] | 404,836 | 432,794 | 464,937 |
Contingent | 10,161 | 8,886 | 8,624 | |
Deferred lease credits amortization | (28,619) | (38,437) | (45,899) | |
Total store rent expense | 386,378 | 403,243 | 427,662 | |
Buildings, equipment and other | 3,849 | 4,619 | 4,987 | |
Total rent expense | 390,227 | 407,862 | 432,649 | |
Lease Termination Fees | 3,300 | 12,400 | 39,200 | |
Leasehold financing obligations | 47,440 | 50,521 | ||
Financing Interest Expense | 5,300 | $ 6,200 | $ 6,600 | |
Operating Lease Commitments Under Non-Cancelable Leases: | ||||
Fiscal 2,016 | 388,501 | |||
Fiscal 2,017 | 327,244 | |||
Fiscal 2,018 | 240,877 | |||
Fiscal 2,019 | 193,747 | |||
Fiscal 2,020 | 155,732 | |||
Thereafter | $ 423,303 | |||
Weighted Average Shares Outstanding: | ||||
Shares of Common Stock issued (in shares) | shares | 103,300,000 | 103,300,000 | 103,300,000 | |
Treasury shares (in shares) | shares | (34,420,000) | (31,515,000) | (26,143,000) | |
Weighted-Average - basic shares (in shares) | shares | 68,880,000 | 71,785,000 | 77,157,000 | |
Dilutive effect of share-based compensation awards (in shares) | shares | 537,000 | 1,152,000 | 1,509,000 | |
Weighted-Average - diluted shares (in shares) | shares | 69,417,000 | 72,937,000 | 78,666,000 | |
Anti-Dilutive shares (in shares) | shares | [2] | 8,967,000 | 6,144,000 | 4,630,000 |
Quantifying Misstatement in Current Year Financial Statements, Amount, Tax Expense Correction | $ 3,200 | $ 400 | ||
Direct-to-Consumer Operations [Member] | ||||
Stores and distribution expense | ||||
Shipping and handling costs | $ 115,000 | $ 108,100 | $ 93,400 | |
Common Class A | ||||
Stockholders' equity | ||||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding | shares | 67,300,000 | 69,400,000 | ||
Common stock, voting rights per share | voting_right / shares | 1 | |||
Common Class B [Member] | ||||
Stockholders' equity | ||||
Common stock, shares authorized | shares | 106,400,000 | 106,400,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding | shares | 0 | 0 | ||
Common stock, voting rights per share | voting_right / shares | 3 | |||
Minimum [Member] | ||||
Leases | ||||
Committed Non-cancelable Leases with Remaining Terms, Number of Years | 1 year | |||
Maximum [Member] | ||||
Leases | ||||
Committed Non-cancelable Leases with Remaining Terms, Number of Years | 15 years | |||
Building [Member] | ||||
Property and equipment | ||||
Useful life | 30 years | |||
Leasehold Improvements and Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property and equipment | ||||
Useful life | 3 years | |||
Leasehold Improvements and Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property and equipment | ||||
Useful life | 15 years | |||
Information Technology [Member] | Minimum [Member] | ||||
Property and equipment | ||||
Useful life | 3 years | |||
Information Technology [Member] | Maximum [Member] | ||||
Property and equipment | ||||
Useful life | 7 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property and equipment | ||||
Useful life | 3 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property and equipment | ||||
Useful life | 15 years | |||
Other Property and Equipment [Member] | Minimum [Member] | ||||
Property and equipment | ||||
Useful life | 3 years | |||
Other Property and Equipment [Member] | Maximum [Member] | ||||
Property and equipment | ||||
Useful life | 20 years | |||
Internal-use Software [Member] | Maximum [Member] | ||||
Property and equipment | ||||
Useful life | 7 years | |||
Gilly Hicks [Member] | Facility Closing [Member] | ||||
Leases | ||||
Lease Termination Fees | $ (1,600) | $ 6,800 | $ 39,100 | |
[1] | (1) Includes lease termination fees of $3.3 million, $12.4 million and $39.2 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Fiscal 2015 includes a benefit of $1.6 million related to better than expected lease exit terms associated with the closure of the Gilly Hicks stand-alone stores. Fiscal 2014 and Fiscal 2013 include lease termination fees of $6.8 million and $39.1 million, respectively, related to the Gilly Hicks restructuring. | |||
[2] | (1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income per diluted share because the impact would have been anti-dilutive. |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets and Liabilities by Fair Value by Hierarchy) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Borrowings, gross at carrying amount | $ 293,250 | $ 299,250 |
Gross borrowings outstanding, fair value | 284,453 | 295,135 |
Fair Value, Measurements, Recurring [Member] | ||
ASSETS: | ||
Money market funds | 311,349 | 122,047 |
Derivative financial instruments | 4,166 | 10,293 |
Total assets measured at fair value | 315,515 | 132,340 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
ASSETS: | ||
Money market funds | 311,349 | 122,047 |
Derivative financial instruments | 0 | 0 |
Total assets measured at fair value | 311,349 | 122,047 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
ASSETS: | ||
Money market funds | 0 | 0 |
Derivative financial instruments | 4,166 | 10,293 |
Total assets measured at fair value | 4,166 | 10,293 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
ASSETS: | ||
Money market funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
FAIR VALUE (Textual) (Details)
FAIR VALUE (Textual) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross borrowings outstanding, carrying amount | $ 293,250 | $ 299,250 |
Gross borrowings outstanding, fair value | $ 284,453 | $ 295,135 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Inventory [Line Items] | ||
Inventories | $ 466,918 | $ 484,865 |
Lower of cost or market reserve | 19,616 | (12,707) |
Shrink reserve | 10,601 | (11,364) |
Inventories, net | 436,701 | 460,794 |
Other Inventory, in Transit, Gross | $ 71,700 | $ 56,100 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016USD ($)store | Jan. 31, 2015USD ($)store | Feb. 01, 2014USD ($)store | |
Property and equipment, net | |||
Land | $ 37,451 | $ 37,473 | |
Buildings | 287,081 | 286,820 | |
Furniture, fixtures and equipment | 682,013 | 653,929 | |
Information technology | 479,269 | 427,879 | |
Leasehold improvements | 1,283,613 | 1,338,206 | |
Construction in progress | 19,875 | 49,836 | |
Other | 3,135 | 3,107 | |
Total | 2,792,437 | 2,797,250 | |
Less: Accumulated depreciation and amortization | (1,898,259) | (1,830,249) | |
Property and equipment, net | 894,178 | 967,001 | |
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset impairment | $ 18,209 | $ 44,988 | $ 46,715 |
Abercrombie & Fitch [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | store | 1 | 2 | 23 |
Abercrombie Kids [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | store | 9 | 4 | |
Hollister [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | store | 9 | 70 | |
Corporate Aircraft [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset impairment | $ 11,300 | ||
Gilly Hicks [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset impairment | $ 37,900 | ||
Construction Project Assets [Member] | |||
Property and equipment, net | |||
Total | $ 37,300 | $ 40,100 |
RABBI TRUST ASSETS (Schedule o
RABBI TRUST ASSETS (Schedule of Investments) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Rabbi Trust assets: | ||
Rabbi Trust assets | $ 96,590 | $ 93,448 |
Trust-owned life insurance policies (at cash surrender value) | ||
Rabbi Trust assets: | ||
Rabbi Trust assets | 96,567 | 93,424 |
Money market funds | ||
Rabbi Trust assets: | ||
Rabbi Trust assets | $ 23 | $ 24 |
RABBI TRUST ASSETS (Textual) (
RABBI TRUST ASSETS (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains resulting from change in cash surrender value of insurance policies | $ 3.1 | $ 3.2 | $ 2.6 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Rabbi Trust | $ 96,590 | $ 93,448 |
Deferred tax assets | 89,677 | 96,999 |
Long-term deposits | 64,098 | 64,415 |
Intellectual property | 28,057 | 27,943 |
Long-term supplies | 25,475 | 31,565 |
Restricted cash | 20,581 | 14,835 |
Prepaid income tax on intercompany items | 7,344 | 9,968 |
Other | 28,059 | 34,021 |
Other assets | 359,881 | 373,194 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 14,400 | 15,300 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 13,700 | $ 12,600 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related costs | $ 60,464 | $ 56,384 |
Gift card liability | 36,384 | 36,936 |
Accrued taxes | 37,203 | 34,629 |
Construction in progress | 43,129 | 30,661 |
Accrued rent | 24,739 | 25,607 |
Other | 119,318 | 98,519 |
Accrued expenses | $ 321,237 | $ 282,736 |
DEFERRED LEASE CREDITS (Details
DEFERRED LEASE CREDITS (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Amortized amounts over the life of related leases | ||
Deferred lease credits | $ 472,279 | $ 490,452 |
Amortized deferred lease credits | (359,720) | (357,430) |
Total deferred lease credits, net | 112,559 | 133,022 |
Less: short-term portion of deferred lease credits | (23,303) | (26,629) |
Long-term portion of deferred lease credits | $ 89,256 | $ 106,393 |
INCOME TAXES (Textual) (Detail
INCOME TAXES (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Liabilities Accumulated Other Comprehensive Income | $ 1,700 | $ 1,600 | ||
Unremitted earnings of subsidiaries operating outside of the U.S. | $ 4,390 | $ 0 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% | |
Undistributed Earnings of Foreign Subsidiaries - Not Indefinitely Invested | $ 20,800 | |||
Uncertain tax positions | 2,455 | $ 3,212 | $ 4,182 | $ 11,116 |
Tax benefit related to net interest and penalties recognized | 900 | 200 | ||
Interest and penalties accrued | $ 500 | $ 1,400 | ||
State and foreign returns subject to examination, minimum (in years) | 3 years | |||
State and foreign returns subject to examination, maximum (in years) | 5 years | |||
Undistributed Earnings of Foreign Subsidiaries | $ 126,600 | |||
Effective Income Tax Rate Reconciliation, Percent | 29.40% | 47.70% | 25.50% | |
Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 1,300 | |||
Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,800 | |||
AUSTRALIA | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income (Loss) from Subsidiaries, Net of Tax | 4,900 | $ 8,400 | ||
Effective Income Tax Rate Reconciliation, Percent | 5.60% | |||
SWITZERLAND | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income (Loss) from Subsidiaries, Net of Tax | $ 1,900 | $ 2,600 | ||
Effective Income Tax Rate Reconciliation, Percent | 745.00% | 218.40% | ||
HONG KONG | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income (Loss) from Subsidiaries, Net of Tax | $ 6,800 | |||
U.S. Federal income tax rate | 16.50% | |||
Effective Income Tax Rate Reconciliation, Percent | 15.80% | |||
JAPAN | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income (Loss) from Subsidiaries, Net of Tax | $ 3,400 | |||
Effective Income Tax Rate Reconciliation, Percent | 127.80% |
INCOME TAXES (Earnings from Co
INCOME TAXES (Earnings from Continuing Operations before taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 8,412 | $ 100,115 | $ 37,325 |
Foreign | 46,178 | (961) | 35,952 |
Income before taxes | $ 54,590 | $ 99,154 | $ 73,277 |
INCOME TAXES (Provisions for I
INCOME TAXES (Provisions for Income Taxes from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ (3,124) | $ 21,287 | $ 52,579 |
State | (434) | 1,944 | (4,988) |
Foreign | 12,120 | 28,614 | 17,851 |
Total current income tax | 8,562 | 51,845 | 65,442 |
Deferred: | |||
Federal | 9,224 | 8,971 | (36,732) |
State | 3,297 | 1,783 | (4,606) |
Foreign | (5,052) | (15,266) | (5,455) |
Total deferred income tax | 7,469 | (4,512) | (46,793) |
Total provision | $ 16,031 | $ 47,333 | $ 18,649 |
INCOME TAXES (Reconciliation o
INCOME TAXES (Reconciliation of Federal Income Tax Rate) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income tax, net of U.S. federal income tax effect | 4.60% | 4.30% | (4.10%) |
Foreign taxation of non-U.S. operations | (10.20%) | 5.40% | 2.00% |
U.S. taxation of non-U.S. operations | 20.00% | 0.00% | 0.00% |
Net change in valuation allowances | (8.70%) | 6.60% | 0.10% |
Audit and other adjustments to prior years' accruals | (8.70%) | (1.30%) | (5.60%) |
Statutory tax rate and law changes | 4.20% | 0.20% | 0.00% |
Permanent items | (4.60%) | (1.10%) | 0.00% |
Credit items | (2.30%) | (1.20%) | (2.80%) |
Other items, net | 0.10% | (0.20%) | 0.90% |
Total | 29.40% | 47.70% | 25.50% |
INCOME TAXES (Deferred Income
INCOME TAXES (Deferred Income Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Deferred compensation | $ 62,679 | $ 83,157 |
Accrued expenses and reserves | 19,862 | 17,695 |
Rent | 36,929 | 38,881 |
Net operating losses (NOL) and credit carryforwards | 14,248 | 14,897 |
Investments in subsidiaries | 2,895 | 0 |
Other | 619 | 1,403 |
Valuation allowances | (1,643) | (6,730) |
Total deferred tax assets | 135,589 | 149,303 |
Deferred tax liabilities: | ||
Property, equipment and intangibles | (20,708) | (16,059) |
Inventory | (9,480) | (11,332) |
Store supplies | (6,054) | (7,046) |
Prepaid expenses | (3,653) | (2,438) |
Undistributed net income of non-U.S. subsidiaries | (4,390) | 0 |
Other | (1,011) | (1,424) |
Total deferred tax liabilities | (45,296) | (38,299) |
Net deferred income tax assets | $ 90,293 | $ 111,004 |
INCOME TAXES (Roll Forward of
INCOME TAXES (Roll Forward of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Uncertain tax positions, beginning of the year | $ 3,212 | $ 4,182 | $ 11,116 |
Gross addition for tax positions of the current year | 13 | 152 | 449 |
Gross addition for tax positions of prior years | 598 | 33 | 30 |
Reductions of tax positions of prior years for: | |||
Lapses of applicable statutes of limitations | (986) | (348) | (2,880) |
Settlements during the period | (64) | (4) | (3,936) |
Changes in judgment/ excess reserve | (318) | (803) | (597) |
Uncertain tax positions, end of year | $ 2,455 | $ 3,212 | $ 4,182 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets, Net operating losses (NOL) and credit carryforwards) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Tax Credit Carryforward [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 126,600 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 25,000 | |
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 14,248 | $ 14,897 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 4,390 | $ 0 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 13,200 | |
State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 200 | |
State Credit Carryover [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | $ 900 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Aug. 07, 2014 | |
Long-Term Borrowings [Line Items] | |||
Maximum borrowing capacity | $ 100,000 | ||
Basis spread on variable rate | 0.25% | ||
Deferred financing fees | $ 5,800 | ||
Borrowings, gross at carrying amount | $ 293,250 | $ 299,250 | |
Unamortized fees paid to lenders | (3,200) | ||
Short-term portion of borrowings, net of discount and fees | 0 | (2,102) | |
Long-term portion of borrowings, net | 286,235 | 291,310 | |
Schedule of Future Payments of the Term Loan Facility | |||
Fiscal 2016(1) | 0 | ||
Fiscal 2,017 | 3,000 | ||
Fiscal 2,018 | 3,000 | ||
Fiscal 2,019 | 3,000 | ||
Fiscal 2,020 | 3,000 | ||
Thereafter | $ 281,250 | ||
Minimum [Member] | |||
Long-Term Borrowings [Line Items] | |||
Term Loan Facility, mandatory prepayment terms - percentage of excess cash flows | 0.00% | ||
Maximum [Member] | |||
Long-Term Borrowings [Line Items] | |||
Term Loan Facility, mandatory prepayment terms - percentage of excess cash flows | 50.00% | ||
London Interbank Offered Rate (LIBOR) Minimum ABL Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
London Interbank Offered Rate (LIBOR) Maximum ABL Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
London Interbank Offered Rate (LIBOR) Initial Applicable Margin ABL Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Base Rate Initial Applicable Margin ABL Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) Term Loan Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
Term Loan Facility, interest rate floor | 1.00% | ||
Base Rate Term Loan Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Term Loan Facility [Member] [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Maximum borrowing capacity | $ 300,000 | ||
Maturity date | Aug. 7, 2021 | ||
Term Loan Facility, quarterly repayments as percent of original principal | 0.25% | ||
Interest rate on borrowings | 4.75% | ||
Fair Value Inputs, Discount Rate | 1.00% | ||
Borrowings, gross at carrying amount | $ 293,250 | 299,250 | |
Unamortized discount | (1,929) | (2,786) | |
Unamortized fees paid to lenders | (5,086) | (3,052) | |
Borrowings, net | 286,235 | 293,412 | |
Long-term portion of borrowings, net | 286,235 | 291,310 | |
ABL Facility [Member] [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Maximum borrowing capacity | $ 400,000 | ||
Maturity date | Aug. 7, 2019 | ||
ABL Facility, unused capacity, commitment fee percentage | 0.25% | ||
Schedule of Future Payments of the Term Loan Facility | |||
ABL Facility, covenant terms, minimum percentage of loan cap amount | 10.00% | ||
ABL Facility, covenant terms, minimum remaining borrowing capacity | $ 30,000 | ||
Term Loan Agreement [Member] | |||
Long-Term Borrowings [Line Items] | |||
Credit facility, amount outstanding | 127,500 | ||
Amended and Restated Credit Agreement [Member] | |||
Long-Term Borrowings [Line Items] | |||
Credit facility, amount outstanding | $ 0 | $ 0 | $ 60,000 |
Base Rate Maximum ABL Facility [Domain] | |||
Long-Term Borrowings [Line Items] | |||
Basis spread on variable rate | 0.75% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued straight-line rent | $ 90,445 | $ 99,108 |
Deferred compensation | 48,058 | 56,244 |
Other | 41,180 | 25,934 |
Other liabilities | $ 179,683 | $ 181,286 |
SHARE-BASED COMPENSATION (Text
SHARE-BASED COMPENSATION (Textual) (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016USD ($)share_based_compensation_planshares | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 28,359 | $ 23,027 | $ 53,516 |
Tax benefits related to share-based compensation | 10,600 | 8,600 | 20,300 |
Effects of adjustments for forfeitures | $ 5,600 | 2,600 | 2,300 |
Number of primary share based compensation plans | share_based_compensation_plan | 2 | ||
Number of other share based compensation plans | share_based_compensation_plan | 4 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
Total intrinsic value of award exercised | 0 | ||
Grant date fair value of stock options vested during period | 0 | ||
Employee Stock Option [Member] | Associate [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
Total intrinsic value of award exercised | $ 4,300 | 1,500 | 8,500 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 12,200 | ||
Unrecognized compensation cost, weighted-average period of recognition | 16 months | ||
Grant date fair value of award other than options vested during period | $ 4,900 | 7,400 | 83,700 |
Service-based Restricted Stock Unit (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 47,100 | ||
Unrecognized compensation cost, weighted-average period of recognition | 15 months | ||
Grant date fair value of award other than options vested during period | $ 23,608 | 17,078 | 14,535 |
Total fair value of restricted stocks | 23,101 | 33,075 | 23,192 |
Performance-based Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 3,100 | ||
Unrecognized compensation cost, weighted-average period of recognition | 13 months | ||
Grant date fair value of award other than options vested during period | $ 1,861 | 515 | 515 |
Total fair value of restricted stocks | 2,278 | 4,709 | 10,814 |
Market-based Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 1,600 | ||
Unrecognized compensation cost, weighted-average period of recognition | 12 months | ||
Grant date fair value of award other than options vested during period | $ 0 | 0 | 0 |
Total fair value of restricted stocks | $ 2,158 | $ 3,756 | $ 0 |
2005 LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved for grant | shares | 250,000 | ||
2005 LTIP [Member] | Non Associate Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
2007 LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved for grant | shares | 2,000,000 |
SHARE-BASED COMPENSATION (Stoc
SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |
Jan. 30, 2016 | Feb. 01, 2014 | |
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Beginning Balance (in shares) | 328,100 | |
Number of Underlying Shares, Exercised (in shares) | 0 | |
Number of Underlying Shares, Forfeited or expired (in shares) | (57,100) | |
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 271,000 | |
Weighted Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) | $ 64.64 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Forfeited or expired (in dollars per share) | 72.16 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | $ 63.05 | |
Aggregate Intrinsic Value, Outstanding | $ 354,740 | |
Weighted- Average Remaining Contractual Life, Outstanding | 1 year 9 months | |
Number of Underlying Shares, Stock options exercisable (in shares) | 271,000 | |
Weighted-Average Exercise Price, Stock options exercisable (in dollars per share) | $ 63.05 | |
Aggregate Intrinsic Value, Stock options exercisable | $ 354,740 | |
Weighted-Average Remaining Contractual Life, Stock options exercisable | 1 year 9 months | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 |
SHARE-BASED COMPENSATION (SARs
SHARE-BASED COMPENSATION (SARs Assumptions) (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Fair value (in dollars per share) | $ 21.71 | ||
Other Executive Officers [Member] | |||
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Grant date market price (in dollars per share) | 22.46 | $ 35.08 | $ 46.57 |
Exercise price (in dollars per share) | 22.46 | 35.49 | 46.57 |
Fair value (in dollars per share) | $ 9.11 | $ 12.85 | $ 20.34 |
Assumptions: | |||
Price volatility | 49.00% | 49.00% | 61.00% |
Expected term (years) | 6 years 1 month | 4 years 11 months | 4 years 8 months |
Risk-free interest rate | 1.50% | 1.60% | 0.70% |
Dividend yield | 1.70% | 2.00% | 1.80% |
All Other Associates [Member] | |||
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Grant date market price (in dollars per share) | $ 22.42 | $ 37.05 | $ 43.86 |
Exercise price (in dollars per share) | 22.42 | 37.22 | 43.86 |
Fair value (in dollars per share) | $ 8 | $ 12.92 | $ 16.17 |
Assumptions: | |||
Price volatility | 49.00% | 50.00% | 53.00% |
Expected term (years) | 4 years 4 months | 4 years 1 month | 4 years 1 month |
Risk-free interest rate | 4.20% | 1.40% | 0.70% |
Dividend yield | 1.70% | 1.90% | 1.80% |
SHARE-BASED COMPENSATION (SA68
SHARE-BASED COMPENSATION (SARS Activity) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding (in shares) | 5,301,115 | 8,953,675 |
Number of Underlying Shares, Granted (in shares) | 715,858 | |
Number of Underlying Shares, Exercised (in shares) | (1,550,000) | |
Number of Underlying Shares, Forfeited or expired (in shares) | (2,818,418) | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 45.02 | $ 40.28 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | 21.71 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 22.23 | |
Weighted-Average Exercise Price, Forfeited or exercised (in dollars per share) | $ 36.58 | |
Aggregate Intrinsic Value, Outstanding | $ 2,827,754 | |
Weighted-Average Remaining Contractual Life, Outstanding | 3 years 7 months | |
Number of Underlying Shares, Stock appreciation rights exercisable (in shares) | 4,288,337 | |
Weighted-Average Exercise Price, Stock appreciation rights exercisable (in dollars per share) | $ 48.75 | |
Aggregate Intrinsic Value, Stock appreciation rights exercisable | $ 11,657 | |
Weighted- Average Remaining Contractual Life, Stock appreciation rights exercisable | 2 years 4 months | |
Number of Underlying Shares, Stock appreciation rights expected to become exercisable (in shares) | 897,471 | |
Weighted-Average Exercise Price, Stock appreciation rights expected to become exercisable (in dollars per share) | $ 29.73 | |
Aggregate Intrinsic Value, Stock appreciation rights expected to become exercisable | $ 2,352,008 | |
Weighted-Average Remaining Contractual Life, Stock appreciation rights expected to become exercisable | 8 years 7 months |
SHARE-BASED COMPENSATION (Rest
SHARE-BASED COMPENSATION (Restricted Stock Unit Activity) (Details) - $ / shares | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 100.00% | |
Market-based Restricted Stock Units (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 117,711 | 36,374 |
Number of Underlying Shares, Granted (in shares) | 113,337 | |
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | 0 | |
Number of Underlying Shares, Vested (in shares) | 0 | |
Number of Underlying Shares, Forfeited (in shares) | (32,000) | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 19.04 | |
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | 0 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 0 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 21.07 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $ 25 | $ 40.13 |
Service-based Restricted Stock Unit (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 1,671,597 | 1,566,272 |
Number of Underlying Shares, Granted (in shares) | 1,117,321 | |
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | 0 | |
Number of Underlying Shares, Vested (in shares) | (637,837) | |
Number of Underlying Shares, Forfeited (in shares) | (374,159) | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 20.68 | |
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | 0 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 37.01 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 31.37 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $ 28.13 | $ 37.84 |
Performance-based Restricted Stock Units (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 185,500 | 205,420 |
Number of Underlying Shares, Granted (in shares) | 113,331 | |
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | (28,250) | |
Number of Underlying Shares, Vested (in shares) | (48,668) | |
Number of Underlying Shares, Forfeited (in shares) | (56,333) | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 20.10 | |
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | 36.14 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 38.24 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 29.05 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $ 23.42 | $ 32.06 |
Minimum [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 0.00% | |
Minimum [Member] | Performance-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 0.00% | |
Maximum [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 200.00% | |
Maximum [Member] | Performance-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 200.00% | |
Market Vesting Conditions [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 19.04 | $ 40.42 |
SHARE-BASED COMPENSATION (RSUs
SHARE-BASED COMPENSATION (RSUs Assumptions) (Details) - Market-based Restricted Stock Units (RSUs) [Member] | 12 Months Ended | |
Jan. 30, 2016$ / shares | Jan. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value (in dollars per share) | $ 19.04 | |
Market Vesting Conditions [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date market price (in dollars per share) | 22.46 | $ 36.20 |
Fair value (in dollars per share) | $ 19.04 | $ 40.42 |
Price volatility | 45.00% | 49.00% |
Expected term (years) | 2 years 9 months | 2 years 8 months |
Risk-free interest rate | 0.90% | 0.80% |
Dividend yield | 3.50% | 2.20% |
Average volatility of peer companies | 34.00% | 36.00% |
Average correlation coefficient of peer companies | 0.3288 | 0.3704 |
DERIVATIVE INSTRUMENTS (Textual
DERIVATIVE INSTRUMENTS (Textual) (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Derivatives (Textuals) [Abstract] | |
Additional time period in which forecasted transaction is not expected to occur | 2 months |
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months |
DERIVATIVE INSTRUMENTS (Outsta
DERIVATIVE INSTRUMENTS (Outstanding Foreign Exchange Forward Contracts) (Details) - Cash Flow Hedging [Member] - Forward Contracts [Member] $ in Thousands | Jan. 30, 2016USD ($) | [1] |
Assets and Liabilities [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,714 | |
Assets and Liabilities [Member] | Switzerland, Francs | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 3,933 | |
Inter-company Inventory and Accounts Receivables [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 94,700 | |
Inter-company Inventory and Accounts Receivables [Member] | British Pound [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 22,029 | |
Inter-company Inventory and Accounts Receivables [Member] | Canadian Dollar [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,617 | |
[1] | Amounts are reported in U.S. Dollars equivalent as of January 30, 2016. |
DERIVATIVE INSTRUMENTS (Locati
DERIVATIVE INSTRUMENTS (Location and Amounts of Derivative Fair Values - Balance Sheet) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | $ 4,166 | $ 10,293 |
Liability Derivatives | 0 | 0 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | 4,097 | 10,283 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | 69 | 10 |
Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Liability Derivatives | 0 | 0 |
Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Liability Derivatives | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS (Loca74
DERIVATIVE INSTRUMENTS (Location and Amounts of Derivative Fair Values - Statements of Operations and Comprehensive Income) (Details) - Foreign Exchange Forward Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | ||
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (Effective Portion) | [1] | $ 7,204 | $ 16,572 |
Other Operating Income, Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) | 751 | 2,537 | |
Other Operating Income, Net | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [2] | 242 | 215 |
Cost of Goods Sold | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | [3] | $ 15,596 | $ 440 |
[1] | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | ||
[2] | The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. | ||
[3] | The amount represents the reclassification from AOCL into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. |
ACCUMULATED OTHER COMPREHENSI75
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | $ (83,580) | $ (20,917) | $ (13,288) | |||
Other comprehensive income (loss) before reclassifications | (15,419) | (60,319) | (6,248) | |||
Reclassified from accumulated other comprehensive (loss) income(1) | (15,596) | [1] | (440) | [2] | (857) | [3] |
Tax effect on other comprehensive income (loss) | (24) | (1,904) | (524) | |||
Other comprehensive loss | (31,039) | (62,663) | (7,629) | |||
Ending balance | (114,619) | (83,580) | (20,917) | |||
Derivative Financial Instruments | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | 13,100 | (2,166) | (7,220) | |||
Other comprehensive income (loss) before reclassifications | 7,204 | 16,572 | 6,435 | |||
Reclassified from accumulated other comprehensive (loss) income(1) | (15,596) | [1] | (440) | [2] | (857) | [3] |
Tax effect on other comprehensive income (loss) | (131) | (866) | (524) | |||
Other comprehensive loss | (8,523) | 15,266 | 5,054 | |||
Ending balance | 4,577 | 13,100 | (2,166) | |||
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | (96,680) | (18,751) | (6,068) | |||
Other comprehensive income (loss) before reclassifications | (22,623) | (76,891) | (12,683) | |||
Reclassified from accumulated other comprehensive (loss) income(1) | 0 | [1] | 0 | [2] | 0 | [3] |
Tax effect on other comprehensive income (loss) | 107 | (1,038) | 0 | |||
Other comprehensive loss | (22,516) | (77,929) | (12,683) | |||
Ending balance | $ (119,196) | $ (96,680) | $ (18,751) | |||
[1] | (1) For Fiscal 2015, a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | |||||
[2] | (1) For Fiscal 2014, a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | |||||
[3] | (1) For Fiscal 2013, a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
GILLY HICKS RESTRUCTURING (Deta
GILLY HICKS RESTRUCTURING (Details) $ in Thousands | 12 Months Ended | 27 Months Ended | |||
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | Jan. 30, 2016USD ($) | Nov. 01, 2013store | |
Non-Cash Charges [Abstract] | |||||
Asset impairment | $ 18,209 | $ 44,988 | $ 46,715 | ||
Restructuring Reserve [Roll Forward] | |||||
Accrued liability as of January 31, 2015 | 6,000 | ||||
Accrued liability as of January 30, 2016 | 2,100 | 6,000 | $ 2,100 | ||
Gilly Hicks Restructuring (Textuals) [Abstract] | |||||
Restructuring (benefit) charge | (1,598) | 8,431 | 81,500 | ||
Gilly Hicks [Member] | |||||
Non-Cash Charges [Abstract] | |||||
Asset impairment | 37,900 | ||||
Gilly Hicks [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of Stores | store | 24 | ||||
Cash Charges [Abstract] | |||||
Lease terminations and store closure (benefits) costs | (1,598) | (5,998) | (42,667) | (47,067) | |
Non-Cash Charges [Abstract] | |||||
Asset impairment | 0 | 2,096 | 37,940 | 40,036 | |
Other Restructuring Costs | 0 | 337 | 893 | 1,230 | |
Restructuring and Related Cost, Incurred Cost | $ (1,598) | $ (8,431) | $ (81,500) | $ (88,333) |
SAVINGS AND RETUREMENT PLANS (D
SAVINGS AND RETUREMENT PLANS (Details) - Supplemental Employee Retirement Plan [Member] $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($)yr | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits, participant age requirement | yr | 21 | ||
Defined Benefit Plan, Contributions by Employer | $ | $ 15.4 | $ 13.8 | $ 18.3 |
SEGMENT REPORTING (Segment Inf
SEGMENT REPORTING (Segment Information, by Segment) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | 1 | ||||||||||
Net Sales | $ 1,112,930 | $ 878,572 | $ 817,756 | $ 709,422 | $ 1,119,544 | $ 911,453 | $ 890,605 | $ 822,428 | $ 3,518,680 | $ 3,744,030 | $ 4,116,897 |
Depreciation and amortization | 213,680 | 226,421 | 235,240 | ||||||||
Operating Income | 72,838 | 113,519 | 80,823 | ||||||||
Total Assets | $ 2,433,039 | $ 2,505,167 | 2,433,039 | 2,505,167 | |||||||
Capital Expenditures | 143,199 | 174,624 | 163,924 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 832,923 | $ 959,981 | $ 1,116,781 |
SEGMENT REPORTING (Net Sales a
SEGMENT REPORTING (Net Sales and Long-lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net Sales | $ 1,112,930 | $ 878,572 | $ 817,756 | $ 709,422 | $ 1,119,544 | $ 911,453 | $ 890,605 | $ 822,428 | $ 3,518,680 | $ 3,744,030 | $ 4,116,897 |
United States | |||||||||||
Net Sales | 2,282,040 | 2,408,427 | 2,659,089 | ||||||||
Europe [Member] | |||||||||||
Net Sales | 832,923 | 959,981 | 1,116,781 | ||||||||
Other | |||||||||||
Net Sales | $ 403,717 | $ 375,622 | $ 341,027 |
SEGMENT REPORTING (Net Sales b
SEGMENT REPORTING (Net Sales by Brand) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $ 1,112,930 | $ 878,572 | $ 817,756 | $ 709,422 | $ 1,119,544 | $ 911,453 | $ 890,605 | $ 822,428 | $ 3,518,680 | $ 3,744,030 | $ 4,116,897 |
Abercrombie [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 1,640,992 | 1,771,299 | 1,893,955 | ||||||||
Hollister [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 1,877,688 | 1,947,869 | 2,127,816 | ||||||||
Gilly Hicks [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $ 0 | $ 24,862 | $ 95,126 |
SEGMENT REPORTING Long-lived as
SEGMENT REPORTING Long-lived assets (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | $ 922,235 | $ 994,944 | $ 1,162,328 |
United States | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | 548,983 | 556,967 | 580,610 |
Europe [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | 263,977 | 332,435 | 446,345 |
Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | $ 109,275 | $ 105,542 | $ 135,373 |
CONTINGENCIES Contingencies (De
CONTINGENCIES Contingencies (Details) $ in Millions | Jan. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency Accrual | $ 19 |
QUARTERLY FINANCIAL DATA (UNA83
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Net sales | $ 1,112,930 | $ 878,572 | $ 817,756 | $ 709,422 | $ 1,119,544 | $ 911,453 | $ 890,605 | $ 822,428 | $ 3,518,680 | $ 3,744,030 | $ 4,116,897 | ||||||||
Gross profit | 676,345 | 559,787 | 509,862 | 411,549 | 681,885 | 567,070 | 552,956 | 511,659 | 2,157,543 | 2,313,570 | 2,575,435 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 58,908 | [1] | 42,285 | [2] | 612 | [3] | (63,246) | [4] | 44,388 | 18,227 | 12,877 | (23,671) | 38,559 | 51,821 | 54,628 | ||||
Net income (loss) attributable to A&F | $ 57,741 | [1] | $ 41,891 | [2] | $ (810) | [3] | $ (63,246) | [4] | $ 44,388 | [1] | $ 18,227 | [2] | $ 12,877 | [3] | $ (23,671) | [4] | $ 35,576 | $ 51,821 | $ 54,628 |
Net income (loss) per diluted share attributable to A&F | $ 0.85 | [1],[5] | $ 0.60 | [2],[5] | $ (0.01) | [3],[5] | $ (0.91) | [4],[5] | $ 0.63 | [5] | $ 0.25 | [5] | $ 0.17 | [5] | $ (0.32) | [5] | $ 0.51 | $ 0.71 | $ 0.69 |
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | $ 16,000 | $ 9,000 | $ 9,400 | $ 26,100 | $ 36,400 | $ 12,200 | $ 1,200 | $ 10,700 | |||||||||||
Increase (decrease) in net income related to correction of errors | $ 1,900 | $ 1,200 | $ 2,600 | $ 100 | $ 800 | $ 900 | $ 900 | $ 1,600 | $ 2,200 | ||||||||||
[1] | (5) Net income (loss) attributable to A&F for Fiscal 2014 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period adversely impacted net income (loss) attributable to A&F by $0.9 million, $0.9 million, $0.8 million and $0.1 million for the first, second, third and fourth quarters of Fiscal 2014, respectively. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. | ||||||||||||||||||
[2] | (4) Net income (loss) attributable to A&F for Fiscal 2015 included the correction of certain errors relating to prior periods. The impact of the amounts recorded out-of-period resulted in a decrease in net income attributable to A&F of $2.6 million and $1.9 million for the second and fourth quarters of Fiscal 2015, respectively, and an increase in net income attributable to A&F of $1.2 million for the third quarter of Fiscal 2015. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. | ||||||||||||||||||
[3] | (3) Net income (loss) attributable to A&F for Fiscal 2014 included certain items related to asset impairment, the Company’s profit improvement initiative, lease termination and store closure costs, restructuring and corporate governance matters. These items adversely impacted net income (loss) attributable to A&F by $10.7 million, $1.2 million, $12.2 million and $36.4 million for the first, second, third and fourth quarters of Fiscal 2015, respectively. | ||||||||||||||||||
[4] | (2) Net income (loss) attributable to A&F for Fiscal 2015 included certain items related to inventory write-down, asset impairment, legal settlement charges, store fixture disposal, the Company’s profit improvement initiative, lease termination and store closure costs and restructuring. These items adversely impacted in net income (loss) attributable to A&F by $26.1 million, $9.4 million and $16.0 million for the first, second and fourth quarters of Fiscal 2015, respectively, and increased net income attributable to A&F by $9.0 million for the third quarter of Fiscal 2015. | ||||||||||||||||||
[5] | (1) Net income (loss) per diluted share for each of the quarters was computed using the weighted average number of shares outstanding during the quarter while the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of the quarters may not equal the total for the year. |