Document
Document - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 25, 2020 | Aug. 02, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-12107 | ||
Entity Registrant Name | Abercrombie & Fitch Co. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-1469076 | ||
Entity Address, Address Line One | 6301 Fitch Path | ||
Entity Address, City or Town | New Albany | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43054 | ||
City Area Code | 614 | ||
Local Phone Number | 283-6500 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 Par Value | ||
Trading Symbol | ANF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,094,286,286 | ||
Entity Common Stock, Shares Outstanding | 61,597,673 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for the Annual Meeting of Stockholders, to be held on May 20, 2020 , are incorporated by reference into Part III of this Annual Report on Form 10-K. Portions of the Registrant’s Annual Report on Form 10-K for Fiscal 2018 , filed with the SEC on April 1, 2019 | ||
Entity Central Index Key | 0001018840 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-01 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 3,623,073 | $ 3,590,109 | $ 3,492,690 |
Cost of sales, exclusive of depreciation and amortization | 1,472,155 | 1,430,193 | 1,408,848 |
Gross profit | 2,150,918 | 2,159,916 | 2,083,842 |
Stores and distribution expense | 1,551,243 | 1,536,216 | 1,540,032 |
Marketing, general and administrative expense | 464,615 | 484,863 | 471,914 |
Flagship store exit charges | 47,257 | 5,806 | 2,393 |
Asset impairment, exclusive of flagship store exit charges | 19,135 | 11,580 | 14,391 |
Other operating income, net | (1,400) | (5,915) | (16,938) |
Operating income | 70,068 | 127,366 | 72,050 |
Interest expense, net | 7,737 | 10,999 | 16,889 |
Income before income taxes | 62,331 | 116,367 | 55,161 |
Income tax expense | 17,371 | 37,559 | 44,636 |
Net income | 44,960 | 78,808 | 10,525 |
Less: Net income attributable to noncontrolling interests | $ 5,602 | 4,267 | 3,431 |
Net income attributable to A&F | $ 74,541 | $ 7,094 | |
Net income per share attributable to A&F | |||
Basic | $ 0.61 | $ 1.11 | $ 0.10 |
Diluted | $ 0.60 | $ 1.08 | $ 0.10 |
Weighted-average shares outstanding | |||
Basic | 64,428 | 67,350 | 68,391 |
Diluted | 65,778 | 69,137 | 69,403 |
Dividends declared per share | $ 0.80 | $ 0.80 | $ 0.80 |
Other comprehensive (loss) income | |||
Foreign currency translation, net of tax | $ (5,080) | $ (19,940) | $ 41,180 |
Derivative financial instruments, net of tax | (1,354) | 12,542 | (14,932) |
Other comprehensive (loss) income | (6,434) | (7,398) | 26,248 |
Comprehensive income | 38,526 | 71,410 | 36,773 |
Less: Comprehensive income attributable to noncontrolling interests | 5,602 | 4,267 | 3,431 |
Comprehensive income attributable to A&F | $ 32,924 | $ 67,143 | $ 33,342 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Current assets: | |||||||
Cash and equivalents | $ 671,267 | $ 723,135 | $ 723,135 | $ 675,558 | |||
Receivables | 80,251 | 73,112 | 73,112 | ||||
Inventories | 434,326 | [1] | 437,879 | 437,879 | [1] | ||
Other current assets | 78,905 | 70,514 | 101,824 | ||||
Total current assets | 1,264,749 | 1,304,640 | 1,335,950 | ||||
Property and equipment, net | 665,290 | 648,231 | 694,855 | ||||
Operating Lease, Right-of-Use Asset | 1,230,954 | 1,234,515 | 0 | ||||
Other assets | 388,672 | 370,341 | 354,788 | ||||
Total assets | 3,549,665 | 3,557,727 | 2,385,593 | ||||
Current liabilities: | |||||||
Accounts payable | 219,919 | 226,878 | 226,878 | ||||
Accrued expenses | 302,214 | 280,071 | 293,579 | ||||
Operating Lease, Liability, Current | 282,829 | 280,108 | 0 | ||||
Short-term portion of deferred lease credits | 0 | 19,558 | |||||
Income taxes payable | 10,392 | 18,902 | 18,902 | ||||
Total current liabilities | 815,354 | 805,959 | 558,917 | ||||
Operating Lease, Liability, Noncurrent | 1,252,634 | 1,193,946 | 0 | ||||
Long-term liabilities: | |||||||
Long-term portion of deferred lease credits | 0 | 0 | 76,134 | ||||
Long-term portion of borrowings, net | 231,963 | 250,439 | 250,439 | ||||
Leasehold financing obligations | 0 | 0 | 46,337 | ||||
Other liabilities | 178,536 | 163,927 | 235,145 | ||||
Total long-term liabilities | 1,663,133 | 1,608,312 | 608,055 | ||||
Stockholders’ equity | |||||||
Class A Common Stock - $0.01 par value: 150,000 shares authorized and 103,300 shares issued at each of February 1, 2020 and February 2, 2019 | 1,033 | 1,033 | 1,033 | ||||
Paid-in capital | 404,983 | 405,379 | 405,379 | ||||
Retained earnings | 2,313,745 | 2,343,379 | 2,418,544 | ||||
Accumulated other comprehensive loss, net of tax (“AOCL”) | (108,886) | (102,452) | (102,452) | (95,054) | $ (121,302) | ||
Treasury stock, at average cost: 40,514 and 37,073 shares at February 1, 2020 and February 2, 2019, respectively | (1,552,065) | (1,513,604) | (1,513,604) | ||||
Total Abercrombie & Fitch Co. stockholders’ equity | 1,058,810 | 1,133,735 | 1,208,900 | $ 1,252,471 | $ 1,252,039 | ||
Noncontrolling interests | 12,368 | 9,721 | 9,721 | ||||
Total stockholders’ equity | 1,071,178 | 1,143,456 | 1,218,621 | ||||
Total liabilities and stockholders’ equity | $ 3,549,665 | $ 3,557,727 | $ 2,385,593 | ||||
[1] | Includes $92.3 million and $89.3 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company distribution center, as of February 1, 2020 and February 2, 2019 , respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Stockholders’ equity | ||
Treasury Stock shares, at Average Cost | 40,514 | 37,073 |
Common Stock, shares issued | 103,300 | 103,300 |
Common Class A | ||
Stockholders’ equity | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 150,000 | 150,000 |
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 | Treasury stock | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 8,604 | |||||||
Beginning Balance at Jan. 28, 2017 | $ 1,252,039 | $ 1,033 | $ 396,590 | $ 2,474,703 | $ (1,507,589) | $ (121,302) | ||
Beginning balance, shares outstanding at Jan. 28, 2017 | 67,758 | 35,542 | ||||||
Net income attributable to noncontrolling interests | 3,431 | |||||||
Net income attributable to A&F | 7,094 | 7,094 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 10,525 | |||||||
Dividends ($0.80 per share) | 54,392 | (54,392) | ||||||
Share-based compensation issuances and exercises | (2,114) | [1] | (12,347) | (6,853) | $ 17,086 | |||
Share-based compensation issuances and exercises, shares | 437 | (437) | ||||||
Share-based compensation expense | 22,108 | 22,108 | ||||||
Derivative financial instruments, net of tax | (14,932) | (14,932) | ||||||
Foreign currency translation adjustments, net of tax | 41,180 | 41,180 | ||||||
Distributions to noncontrolling interests, net | (1,943) | (1,943) | ||||||
Ending Balance at Feb. 03, 2018 | 1,252,471 | $ 1,033 | 406,351 | 2,420,552 | $ (1,490,503) | (95,054) | ||
Ending balance, shares outstanding at Feb. 03, 2018 | 68,195 | 35,105 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 10,092 | |||||||
Impact from adoption of the new lease accounting standard (Refer to Note 2, “Summary of Significant Accounting Policies”) | 6,944 | |||||||
Net income attributable to noncontrolling interests | 4,267 | |||||||
Net income attributable to A&F | 74,541 | 74,541 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 78,808 | |||||||
Purchase of common stock | $ 68,670 | |||||||
Purchase of common stock, shares | 68,670 | (2,931) | 2,931 | |||||
Dividends ($0.80 per share) | $ 53,714 | (53,714) | ||||||
Share-based compensation issuances and exercises | (6,937) | [1] | (22,727) | (29,779) | $ 45,569 | |||
Share-based compensation issuances and exercises, shares | 963 | (963) | ||||||
Share-based compensation expense | 21,755 | 21,755 | ||||||
Derivative financial instruments, net of tax | 12,542 | 12,542 | ||||||
Foreign currency translation adjustments, net of tax | (19,940) | (19,940) | ||||||
Distributions to noncontrolling interests, net | (4,638) | (4,638) | ||||||
Ending Balance at Feb. 02, 2019 | 1,208,900 | $ 1,033 | 405,379 | 2,418,544 | $ (1,513,604) | (102,452) | ||
Ending balance, shares outstanding at Feb. 02, 2019 | 66,227 | 37,073 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 9,721 | 9,721 | ||||||
Total stockholders’ equity | 1,218,621 | |||||||
Net income attributable to noncontrolling interests | 5,602 | |||||||
Net income attributable to A&F | 39,358 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 44,960 | |||||||
Purchase of common stock | 63,542 | |||||||
Purchase of common stock, shares | (3,957) | 3,957 | ||||||
Dividends ($0.80 per share) | 51,510 | (51,510) | ||||||
Share-based compensation issuances and exercises | (6,804) | [1] | (14,403) | (17,482) | $ 25,081 | |||
Share-based compensation issuances and exercises, shares | 516 | (516) | ||||||
Share-based compensation expense | 14,007 | |||||||
Derivative financial instruments, net of tax | (1,354) | |||||||
Foreign currency translation adjustments, net of tax | (5,080) | |||||||
Distributions to noncontrolling interests, net | (2,955) | (2,955) | ||||||
Ending Balance at Feb. 01, 2020 | 1,058,810 | $ 1,033 | $ 404,983 | $ 2,313,745 | $ (1,552,065) | $ (108,886) | ||
Ending balance, shares outstanding at Feb. 01, 2020 | 62,786 | 40,514 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (75,165) | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 12,368 | $ 12,368 | ||||||
Total stockholders’ equity | $ 1,071,178 | |||||||
[1] | (1) Classified within other financing activities on the Consolidated Statements of Cash Flows. |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
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 | 12 Months Ended | ||
Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Operating activities | |||
Net income | $ 44,960,000 | $ 78,808,000 | $ 10,525,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 173,625,000 | 178,030,000 | 194,549,000 |
Asset impairment | 22,364,000 | 11,580,000 | 14,391,000 |
Loss on disposal | 6,298,000 | 6,020,000 | 7,460,000 |
Deferred lease credits amortization | 0 | (21,320,000) | (22,149,000) |
Benefit from deferred income taxes | 9,150,000 | 5,946,000 | 37,485,000 |
Share-based compensation | 14,007,000 | 21,755,000 | 22,108,000 |
Changes in assets and liabilities | |||
Inventories | 2,270,000 | (23,820,000) | (18,298,000) |
Accounts payable and accrued expenses | 10,821,000 | 63,155,000 | 13,622,000 |
Increase decrease in operating lease liabilities | 46,442,000 | 0 | 0 |
Income taxes | (5,473,000) | 5,409,000 | 13,698,000 |
Other assets | (20,137,000) | 33,302,000 | 25,185,000 |
Other liabilities | (3,642,000) | (5,932,000) | (10,918,000) |
Net cash provided by operating activities | 300,685,000 | 352,933,000 | 287,658,000 |
Investing activities | |||
Purchases of property and equipment | (202,784,000) | (152,393,000) | (107,001,000) |
Proceeds from sale of property and equipment | 0 | 0 | 203,000 |
Net cash used for investing activities | (202,784,000) | (152,393,000) | (106,798,000) |
Financing activities | |||
Purchases of common stock | (63,542,000) | (68,670,000) | 0 |
Repayments of term loan facility borrowings | (20,000,000) | 0 | (15,000,000) |
Dividends paid | (51,510,000) | (53,714,000) | (54,392,000) |
Other financing activities | (12,821,000) | (9,307,000) | (5,421,000) |
Net cash used for financing activities | (147,873,000) | (131,691,000) | (74,813,000) |
Effect of foreign currency exchange rates on cash | (3,593,000) | (20,975,000) | 24,276,000 |
Net (decrease) increase in cash and equivalents, and restricted cash and equivalents | (53,565,000) | 47,874,000 | 130,323,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 692,264,000 | 745,829,000 | 697,955,000 |
Supplemental information related to non-cash activities | |||
Purchases of property and equipment not yet paid at end of period | 44,199,000 | 17,299,000 | 14,277,000 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 391,753,000 | 0 | 0 |
Supplemental information related to cash activities | |||
Cash paid for interest | 17,514,000 | 14,221,000 | 13,381,000 |
Cash paid for income taxes | 20,717,000 | 24,331,000 | 16,230,000 |
Cash received from income tax refunds | 8,773,000 | 9,631,000 | 27,934,000 |
Operating Lease, Payments | $ 422,850,000 | $ 0 | $ 0 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Feb. 01, 2020 | |
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 global multi-brand omnichannel specialty retailer, whose products are sold primarily through its Company-owned store and digital channels, as well as through various third-party wholesale, franchise and licensing arrangements. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids under the Hollister, Abercrombie & Fitch and abercrombie kids brands . The brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style. The Company primarily has operations in North America, Europe and Asia, among other regions. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 01, 2020 | |
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 financial position, results of operations and cash flows. The Company has interests in an Emirati business venture and in a Kuwaiti 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”) on the Consolidated Statements of Operations and Comprehensive Income and MAF’s portion of equity presented as NCI on the Consolidated Balance Sheets. Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Consolidated Financial Statements and notes thereto, as well as the remainder of this Annual Report on Form 10-K, by the calendar year in which the fiscal year commenced. All references herein to the Company’s fiscal years are as follows: Fiscal year Year ended Number of weeks Fiscal 2017 February 3, 2018 53 Fiscal 2018 February 2, 2019 52 Fiscal 2019 February 1, 2020 52 Fiscal 2020 January 30, 2021 52 Use of estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S. (“GAAP”), 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. Prior period reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation of flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income. Cash and equivalents A summary of cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Cash (1) $ 612,595 $ 633,137 Cash equivalents: (2) Time deposits 58,447 34,440 Money market funds 225 55,558 Cash and equivalents $ 671,267 $ 723,135 (1) Primarily consists of amounts on deposit with financial institutions. (2) Investments with original maturities of less than three months . Restricted cash and equivalents A summary of restricted cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Restricted cash (1) $ 6,631 $ 7,196 Restricted cash equivalents: (2) Money market funds 6,564 6,550 Time deposits 4,601 4,588 U.S. treasury bills 3,201 4,360 Restricted cash and equivalents (3) $ 20,997 $ 22,694 (1) Primarily consists of amounts on deposit 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. (2) Investments with original maturities of less than three months including time deposits, U.S. treasury bills and money market funds. (3) Includes short-term and long-term restricted cash and equivalents of $2.3 million and $18.7 million as of February 1, 2020, respectively, and long-term restricted cash and equivalents of $22.7 million as of February 2, 2019. Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Consolidated Statements of Cash Flows: (in thousands) Location February 1, 2020 February 2, 2019 February 3, 2018 Cash and equivalents Cash and equivalents $ 671,267 $ 723,135 $ 675,558 Long-term restricted cash and equivalents Other assets 18,696 22,694 22,397 Short-term restricted cash and equivalents Other current assets 2,301 — — Cash and equivalents and restricted cash and equivalents $ 692,264 $ 745,829 $ 697,955 Receivables Receivables on the Consolidated Balance Sheets primarily include credit card receivables, lessor construction allowances, value added tax (“VAT”) receivables, trade receivables, income tax 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. Lessor 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. Trade receivables are amounts billed by the Company to wholesale, franchise and licensing partners in the ordinary course of business. Income tax receivables represent refunds of certain tax payments along with net operating loss and credit carryback claims for which the Company expects to receive refunds within the next 12 months. Inventories Inventories on the Consolidated Balance Sheets are valued at the lower of cost and net realizable value on a weighted-average cost basis. The Company reduces the carrying value of inventory through a lower of cost and net realizable value 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. The lower of cost and net realizable value adjustment is based on the Company’s consideration of multiple factors and assumptions including demand forecasts, current sales volumes, expected sell-off activity, composition and aging of inventory, historical recoverability experience and risk of obsolescence from changes in economic conditions or customer preferences. Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each quarter that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink estimate accordingly. Refer to Note 5 , “ INVENTORIES .” The Company’s global sourcing of merchandise is generally negotiated and settled in U.S. Dollars. Other current assets Other current assets on the Consolidated Balance Sheets consists of: prepaid expenses including those related to rent, information technology maintenance and taxes; current store supplies; derivative contracts; short-term restricted cash and other. Property and equipment, net Depreciation of property and equipment is 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 Furniture, 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 are removed from the accounts with any resulting gain or loss included in net income on the Consolidated Statements of Operations and Comprehensive 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. The Company 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. Refer to Note 6 , “ PROPERTY AND EQUIPMENT, NET .” Leases The Company determines if an arrangement is an operating lease at inception. For new operating leases, the Company recognizes an asset for the right to use a leased asset and a liability based on the present value of remaining lease payments over the lease term on the lease commencement date. The commencement date for new leases is when the lessor makes the leased asset available for use by the Company, typically the possession date. As the rates implicit in the Company’s leases are not readily determinable, the Company uses its incremental borrowing rate based on the transactional currency of the operating lease and the lease term for the initial measurement of the operating lease right-of-use asset and liability. For operating leases existing before the adoption of the new lease accounting standard, the Company used its incremental borrowing rate as of the date of adoption, determined using the remaining lease term as of the date of adoption. For operating leases commencing on or after the adoption of the new lease accounting standard, the incremental borrowing rate is determined using the remaining lease term as of the lease commencement date. The Company has elected to combine lease and nonlease components for all current classes of underlying leased assets. The measurement of operating lease right-of-use assets and liabilities includes amounts related to: • Lease payments made prior to the lease commencement date; • Incentives from landlords received by the Company for signing a lease, including construction allowances or deferred lease credits paid to the Company by landlords towards construction and tenant improvement costs, which are presented as a reduction to the right-of-use asset recorded; • Fixed payments related to operating lease components, such as rent escalation payments scheduled at the lease commencement date; • Fixed payments related to nonlease components, such as taxes, insurance, and maintenance costs; and • Unamortized initial direct costs incurred in conjunction with securing a lease, including key money, which are amounts paid directly to a landlord in exchange for securing the lease, and leasehold acquisition costs, which are amounts paid to parties other than the landlord, such as an existing tenant, to secure the desired lease. The measurement of operating lease right-of-use assets and liabilities excludes amounts related to: • Costs expected to be incurred to return a leased asset to its original condition, also referred to as asset retirement obligations, which are classified within other liabilities on the Consolidated Balance Sheets; • Variable payments related to operating lease components, such as contingent rent payments made by the Company based on performance, the expense of which is recognized in the period incurred on the Consolidated Statements of Operations and Comprehensive Income; • Variable payments related to nonlease components, such as taxes, insurance, and maintenance costs, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income; and • Leases not related to Company-operated retail stores with an initial term of 12 months or less, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income. Certain of the Company’s operating leases include options to extend the lease or to terminate the lease. The Company assesses these operating leases and, depending on the facts and circumstances, may or may not include these options in the measurement of the Company’s operating lease right-of-use assets and liabilities. Generally, the Company’s options to extend its operating leases are at the Company’s sole discretion and at the time of lease commencement are not reasonably certain of being exercised. There may be instances in which a lease is being renewed on a month-to-month basis and, in these instances, the Company will recognize lease expense in the period incurred in the Consolidated Statements of Operations and Comprehensive Income until a new agreement has been executed. Upon signing of the renewal agreement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of remaining lease payments over the lease term. Amortization and interest expense related to operating lease right-of-use assets and liabilities are generally calculated on a straight-line basis over the lease term. Amortization and interest expense related to previously impaired operating lease right-of-use assets are calculated on a front-loaded pattern. Depending on the nature of the operating lease, amortization and interest expense is primarily recorded within stores and distribution expense, marketing, general and administrative expense, or flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, the Company does not have any sublease arrangements with any related party or third party. Refer to Note 7 , “ LEASES .” Long-lived asset impairment For the purposes of asset impairment, the Company’s long-lived assets, primarily operating lease right-of-use assets, leasehold improvements, furniture, fixtures and equipment, are grouped with other assets and liabilities at the store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. On at least a quarterly basis, the Company reviews its asset groups for indicators of impairment, which include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions, store closure or relocation decisions, and any other events or changes in circumstances that would indicate the carrying amount of an asset group might not be recoverable. If an asset group displays an indicator of impairment, it is tested for recoverability by comparing the sum of the estimated future undiscounted cash flows attributable to the asset group to the carrying amount of the asset group. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. The key assumptions used in developing these projected cash flows used in the recoverability test include estimates of future sales, gross profit and, to a lesser extent, operating expenses. If the sum of the estimated future undiscounted cash flows attributable to an asset group is less than its carrying amount, and it is determined that the carrying amount of the asset group is not recoverable, the Company determines if there is an impairment loss by comparing the carrying amount of the asset group to its fair value. Fair value of an asset group is based on the highest and best use of the asset group, often using a discounted cash flow model that utilizes Level 3 fair value inputs. The key assumptions used in estimating fair value of an asset group may include discounted estimates of future cash flows from operating the store or comparable market rents. An impairment loss is recognized based on the excess of the carrying amount of the asset group over its fair value. Refer to Note 8 , “ ASSET IMPAIRMENT .” Other assets Other assets on the Consolidated Balance Sheets consist primarily of the Company’s trust-owned life insurance policies held in the irrevocable rabbi trust (the “Rabbi Trust”), deferred tax assets, long-term deposits, intellectual property, long-term restricted cash and equivalents, long-term supplies and various other assets. Rabbi Trust assets The Rabbi Trust includes amounts, restricted in their use, to meet 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 and are included in other assets on the Consolidated Balance Sheets. The change in cash surrender value of the Rabbi Trust is recorded in interest expense, net on the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 9 , “ RABBI TRUST ASSETS .” Intellectual property Intellectual property primarily includes trademark assets associated with the Company’s international operations, consisting of finite-lived and indefinite-lived intangible assets. The Company’s finite-lived intangible assets are amortized over a useful life of 10 to 20 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. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax positions that are not more likely than not to be sustained upon examination as well as related interest and penalties. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect the probable outcome of known tax contingencies. Unfavorable settlement of any particular issue may require use of the Company’s cash. Favorable resolution would be recognized as a reduction to the Company’s effective tax rate in the period of resolution. The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense on the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 11 , “ INCOME TAXES .” 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 other operating income, net; whereas, translation adjustments and gains and losses associated with measuring inter-company loans of a long-term investment nature are reported as an element of other comprehensive income (loss). 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. If the underlying hedged item is no longer probable of occurring, hedge accounting is discontinued. 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 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. 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 exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory transactions with foreign subsidiaries before inventory is sold to third parties. Fluctuations in exchange rates will either increase or decrease the Company’s intercompany 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 conversion of the inventory to cost of sales, exclusive of depreciation and amortization, will result in the reclassification of related derivative gains and losses that are reported in accumulated other comprehensive loss (“AOCL”) into earnings on the Consolidated Balance Sheets. The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets and liabilities, such as cash balances, receivables and payables. Fluctuations in foreign currency exchange rates result in transaction gains and losses being recorded in earnings as monetary assets and liabilities are remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these foreign currency exchange forward contracts because there are no differences in the timing of gain or loss recognition on the hedging instruments and the hedged items. The Company presents its derivative assets and derivative liabilities at their gross fair values within other current assets and accrued liabilities, respectively, on the Consolidated Balance Sheets. However, the Company’s derivative contracts allow net settlements under certain conditions. Refer to Note 15 , “ DERIVATIVE INSTRUMENTS . ” Stockholders’ equity A summary of the Company’s Class A Common Stock (the “Common Stock”), $0.01 par value, and Class B Common Stock, $0.01 par value, follows: (in thousands) February 1, 2020 February 2, 2019 Class A Common Stock Shares authorized 150,000 150,000 Shares issued 103,300 103,300 Shares outstanding 62,786 66,227 Class B Common Stock (1) Shares authorized 106,400 106,400 (1) No shares were issued or outstanding as of each of February 1, 2020 and February 2, 2019 . 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 revenue from product sales when control of the good is transferred to the customer, generally upon pick up at, or shipment from, a Company location. The Company provides shipping and handling services to customers in certain transactions under its digital operations. Revenue associated with the related shipping and handling obligations is deferred until the obligation is fulfilled, typically upon the customer’s receipt of the merchandise. The related shipping and handling costs are classified in stores and distribution expense on the Consolidated Statements of Operations and Comprehensive Income. Revenue is recorded net of estimated returns, associate discounts, promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience among other factors. The sales return reserve is classified in accrued expenses on the Consolidated Balance Sheets. The Company accounts for gift cards sold to customers by recognizing an unearned revenue liability at the time of sale, which prior to Fiscal 2018 was recognized as other operating income, at the earlier of redemption by the customer or when the Company determined the likelihood of redemption to be remote, referred to as gift card breakage. Refer to “ Other operating income, net ,” below. Beginning in Fiscal 2018, gift card breakage is recognized proportionally with gift card redemptions in net sales. Gift cards sold to customers do not expire or lose value over periods of inactivity and the Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company also maintains loyalty programs, which primarily provide customers with the opportunity to earn points toward future merchandise discount rewards with qualifying purchases. The Company accounts for expected future reward redemptions by recognizing an unearned revenue liability as customers accumulate points, which remains until revenue is recognized at the earlier of redemption or expiration. Unearned revenue liabilities related to the Company’s gift card program and loyalty programs are classified in accrued expenses on the Consolidated Balance Sheets and are typically recognized as revenue within a 12-month period. For additional details on the Company’s unearned revenue liabilities related to the Company’s gift card and loyalty programs, refer to Note 3 , “ REVENUE RECOGNITION .” The Company also recognizes revenue under wholesale arrangements, which is generally recognized upon shipment, when control passes to the wholesale partner. Revenue from the Company’s franchise and license arrangements, primarily royalties earned upon sale of merchandise, is generally recognized at the time merchandise is sold to the franchisees’ retail customers or to the licensees’ wholesale customers. The Company does not include tax amounts collected from customers on behalf of third parties, including sales and indirect taxes, in net sales. All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income. For a discussion of the disaggregation of revenue, refer to Note 18 , “ SEGMENT REPORTING . ” Cost of sales, exclusive of depreciation and amortization Cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income, primarily consists of cost incurred to ready inventory for sale, including product costs, freight, and import costs, as well as provisions for reserves for shrink and lower of cost and net realizable value. Gains and losses associated with the effective portion of designated foreign currency exchange forward contracts related to the hedging of inventory purchases are also recognized in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income when the inventory being hedged is sold. The Company’s cost of sales, exclusive of depreciation and amortization, and consequently gross profit, may not be comparable to that of other retailers, as inclusion of certain costs vary across the industry. Some retailers include all costs related to buying, design and distribution operations in cost of sales, while others may include either all or a portion of these costs in selling, general and administrative expenses. Stores and distribution expense Stores and distribution expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of: store payroll; store management; operating lease costs in Fiscal 2019 and rent expense in Fiscal 2018 and Fiscal 2017; utilities and other landlord expenses; depreciation and amortization, except for those amounts included in marketing, general and administrative expense; repairs and maintenance and other store support functions; marketing and other costs related to the Company’s digital operations; shipping and handling costs; and distribution center (“DC”) expense. A summary of shipping and handling costs, which includes costs incurred to store, move and prepare product for shipment and costs incurred to physically move product to our customers across channels, follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Shipping and handling costs $ 224,604 $ 201,614 $ 189,349 Marketing, general and administrative expense Marketing, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of: home office compensation and marketing, except for those departments included in stores and distribution expense; information technology; outside services, such as legal and consulting; depreciation, primarily related to IT and other home office assets; amortization related to trademark assets; costs to design and develop the Company’s merchandise; relocation; recruiting; and travel expenses. Other operating income, net Other operating income, net on the Consolidated Statements of Operations and Comprehensive Income primarily consists of gains and losses resulting from foreign-currency-denominated transactions in Fiscal 2019 and Fiscal 2018 . For Fiscal 2017 , other operating income, net primarily consists of gains and losses resulting from foreign-currency-denominated transactions and gift card breakage, which beginning in Fiscal 2018 was no longer included in other operating income in conjunction with the adoption of the revenue recognition accounting standard. A summary of foreign-currency-denominated transactions, including those related to derivative instruments, follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Foreign-currency-denominated transaction gains $ 348 $ 5, |
REVENUE RECOGNITION (Notes)
REVENUE RECOGNITION (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | REVENUE RECOGNITION Disaggregation of revenue All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income. For information regarding the disaggregation of revenue, refer to Note 18 , “ SEGMENT REPORTING . ” Contract liabilities The following table details certain contract liabilities representing unearned revenue as of February 1, 2020 and February 2, 2019 : (in thousands) February 1, 2020 February 2, 2019 Gift card liability $ 28,844 $ 26,062 Loyalty program liability $ 23,051 $ 19,904 The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for Fiscal 2019 and Fiscal 2018 : (in thousands) Fiscal 2019 Fiscal 2018 Revenue associated with gift card redemptions and gift card breakage $ 70,164 $ 62,865 Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs $ 35,701 $ 36,348 Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition ,” for discussion regarding significant accounting policies related to the Company’s revenue. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Feb. 01, 2020 | |
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 of the Company’s assets and liabilities that are measured at fair value on a recurring basis, were as follows: Assets and Liabilities at Fair Value as of February 1, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 225 $ 58,447 $ — $ 58,672 Derivative instruments (2) — 1,969 — 1,969 Rabbi Trust assets (3) 1 109,048 — 109,049 Restricted cash equivalents (4) 9,765 4,601 — 14,366 Total assets $ 9,991 $ 174,065 $ — $ 184,056 Liabilities: Derivative instruments (2) $ — $ 1,460 $ — $ 1,460 Total liabilities $ — $ 1,460 $ — $ 1,460 Assets and Liabilities at Fair Value as of February 2, 2019 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 55,558 $ 34,440 $ — $ 89,998 Derivative instruments (2) — 2,162 — 2,162 Rabbi Trust assets (3) 5 105,877 — 105,882 Restricted cash equivalents (4) 10,910 4,588 — 15,498 Total assets $ 66,473 $ 147,067 $ — $ 213,540 Liabilities: Derivative instruments (2) $ — $ 332 $ — $ 332 Total liabilities $ — $ 332 $ — $ 332 (1) Level 1 assets consist of investments in money market funds. Level 2 assets consist of time deposits. (2) Level 2 assets and liabilities consist primarily of foreign currency exchange forward contracts. (3) Level 1 assets consist of investments in money market funds. Level 2 assets consist of trust-owned life insurance policies. (4) Level 1 assets consist of investments in U.S. treasury bills and money market funds. Level 2 assets consist of time deposits. The Company’s Level 2 assets and liabilities consist of: • Time deposits, which are valued at cost approximating fair value due to the short-term nature of these investments; • Trust-owned life insurance policies which are valued using the cash surrender value of the life insurance policies; and • Derivative instruments, primarily foreign currency exchange forward contracts, which are valued using quoted market prices of the same or similar instruments, adjusted for counterparty risk. Fair value of borrowings The Company’s borrowings under the Company’s credit facilities are carried at historical cost in the accompanying Consolidated Balance Sheets. The carrying amount and fair value of gross borrowings under the Company’s term loan credit facility were as follows: (in thousands) February 1, 2020 February 2, 2019 Gross borrowings outstanding, carrying amount $ 233,250 $ 253,250 Gross borrowings outstanding, fair value $ 233,979 $ 252,933 No borrowings were outstanding under the Company’s senior secured revolving credit facility as of February 1, 2020 or February 2, 2019 . Refer to Note 12 , “ BORROWINGS ,” for further discussion of the Company’s credit facilities. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Feb. 01, 2020 | |
Inventories, Net [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Inventories consisted of: (in thousands) February 1, 2020 February 2, 2019 Inventories at original cost $ 456,335 $ 458,860 Less: Lower of cost and net realizable value adjustment (14,925 ) (13,951 ) Less: Shrink estimate (7,084 ) (7,030 ) Inventories (1) $ 434,326 $ 437,879 (1) Includes $92.3 million and $89.3 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company distribution center, as of February 1, 2020 and February 2, 2019 , respectively. A summary of the Company’s vendors based on location and the dollar cost of merchandise receipts during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: % of Total Company Merchandise Receipts (1) Location Fiscal 2019 Fiscal 2018 Fiscal 2017 Vietnam 36 % 29 % 24 % China (2) 22 % 36 % 42 % Other (3) 42 % 35 % 34 % Total 100 % 100 % 100 % (1) Calculated as the cost of merchandise receipts from all vendors within a country during the respective fiscal year divided by cost of total merchandise receipts during the respective fiscal year. (2) Only a portion of the Company’s total merchandise sourced from China is subject to the additional U.S. tariffs on imported consumer goods that were effective beginning in Fiscal 2019 . The Company estimates approximately 15% , 25% and 28% of total merchandise receipts were imported to the U.S. from China in Fiscal 2019 , Fiscal 2018 and Fiscal 2017 , respectively. (3) No country included within this category sourced more than 10% of total merchandise receipts during any fiscal year presented above. Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories ,” for discussion regarding significant accounting policies related to the Company’s inventories. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: (in thousands) February 1, 2020 February 2, 2019 Land $ 28,599 $ 36,875 Buildings 230,281 285,014 Furniture, fixtures and equipment 674,885 691,914 Information technology 609,917 557,607 Leasehold improvements 1,138,372 1,229,494 Construction in progress 60,913 26,319 Other 2,000 2,027 Total 2,744,967 2,829,250 Less: Accumulated depreciation (2,079,677 ) (2,134,395 ) Property and equipment, net $ 665,290 $ 694,855 The Company had $34.7 million of construction project assets in property and equipment, net as of February 2, 2019 , related to the construction of buildings in certain lease arrangements where, under the previous lease accounting standard, the Company was deemed to be the owner of the construction project. Upon adoption of the new lease accounting standard, described further in Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements ,” the Company derecognized these construction project assets. Refer to Note 8 , “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 . Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net ,” for discussion regarding significant accounting policies related to the Company’s property and equipment, net. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company has leases related to its Company-operated retail stores as well as for certain of its distribution centers, office space, information technology and equipment. The following table provides a summary of the Company’s operating lease costs for Fiscal 2019 : (in thousands) Fiscal 2019 Single lease cost (1) $ 427,982 Variable lease cost (2) 143,472 Operating lease right-of-use asset impairment (3) 15,812 Total operating lease cost $ 587,266 (1) Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities. Includes $23.3 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” (2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. Includes $20.2 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” (3) Includes $3.2 million of asset charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” As reported under the previous accounting standard, the following table provides a summary of rent expense for Fiscal 2018 and Fiscal 2017 : (in thousands) Fiscal 2018 Fiscal 2017 Store rent expense: Fixed minimum (1) $ 365,229 $ 373,457 Contingent 18,189 14,752 Deferred lease credits amortization (21,320 ) (22,149 ) Total store rent expense 362,098 366,060 Buildings, equipment and other 8,800 9,752 Total rent expense $ 370,898 $ 375,812 (1) Includes lease termination fees of $4.0 million and $2.0 million for Fiscal 2018 and Fiscal 2017 , respectively. Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be a component of operating lease cost. The following table provides the weighted-average remaining lease term of the Company’s operating leases and the weighted-average discount rates used to calculate the Company’s operating lease liabilities as of February 1, 2020 : February 1, 2020 Weighted-average remaining lease term (years) 6.2 Weighted-average discount rate 5.4 % The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, as of February 1, 2020 : (in thousands) February 1, 2020 Fiscal 2020 357,646 Fiscal 2021 325,272 Fiscal 2022 276,796 Fiscal 2023 232,984 Fiscal 2024 166,341 Fiscal 2025 and thereafter 460,955 Total undiscounted operating lease payments $ 1,819,994 Less: Imputed interest (284,531 ) Present value of operating lease liabilities $ 1,535,463 The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for its Company-operated retail stores, of approximately $3.1 million as of February 1, 2020 . As reported under the previous accounting standard, the following table provides a summary of operating lease commitments, including leasehold financing obligations, under noncancelable leases as of February 2, 2019 : (in thousands) February 2, 2019 Fiscal 2019 $ 367,622 Fiscal 2020 304,270 Fiscal 2021 205,542 Fiscal 2022 159,617 Fiscal 2023 128,626 Fiscal 2024 and thereafter 310,003 Total $ 1,475,680 The Company had deferred lease credits as of February 2, 2019 , which were derived from payments received from landlords to wholly or partially offset store construction costs. Upon adoption of the new lease accounting standard, the Company reclassified short-term and long-term portions of deferred lease credits to operating lease right-of-use assets. As reported under the previous accounting standard, the following table provides a summary of deferred lease credits as of February 2, 2019 : (in thousands) February 2, 2019 Deferred lease credits $ 450,295 Amortized deferred lease credits (354,603 ) Total deferred lease credits, net 95,692 Less: short-term portion of deferred lease credits (19,558 ) Long-term portion of deferred lease credits $ 76,134 Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements ,” for further discussion of the new lease accounting standard’s impact on the consolidated financial statements. |
ASSET IMPAIRMENT (Notes)
ASSET IMPAIRMENT (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Asset Impairment [Abstract] | |
Asset Impairment Charges [Text Block] | ASSET IMPAIRMENT Asset impairment charges for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 primarily related to certain of the Company’s underperforming flagship stores. The following table provides additional details related to long-lived asset impairment charges: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Operating lease right-of-use asset impairment (1) $ 15,812 $ — $ — Property and equipment asset impairment 6,552 11,580 14,391 Total asset impairment $ 22,364 $ 11,580 $ 14,391 (1) Includes $3.2 million of operating lease right-of-use asset impairment included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019 . Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset impairment ,” for discussion regarding significant accounting policies related to impairment of the Company’s long-lived assets. |
RABBI TRUST ASSETS
RABBI TRUST ASSETS | 12 Months Ended |
Feb. 01, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
RABBI TRUST ASSETS | RABBI TRUST ASSETS Investments of Rabbi Trust assets consisted of the following as of February 1, 2020 and February 2, 2019 : (in thousands) February 1, 2020 February 2, 2019 Trust-owned life insurance policies (at cash surrender value) $ 109,048 $ 105,877 Money market funds 1 5 Rabbi Trust assets $ 109,049 $ 105,882 Realized gains resulting from the change in cash surrender value of the Rabbi Trust assets for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Realized gains related to Rabbi Trust assets $ 3,172 $ 3,084 $ 3,130 Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Rabbi Trust assets ,” for further discussion related to the Company’s Rabbi Trust assets. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Feb. 01, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of: (in thousands) February 1, 2020 February 2, 2019 Accrued payroll and related costs (1) $ 58,588 $ 65,156 Accrued taxes 38,632 38,490 Other (2) 204,994 189,933 Accrued expenses $ 302,214 $ 293,579 (1) Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll-related costs. (2) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Tax Cuts and Jobs Act of 2017 In December 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law. The Act made broad and significantly complex changes to the U.S. corporate income tax system by, among other things: reducing the U.S. federal corporate income tax rate from 35% to 21%; transitioning U.S. international taxation to a modified territorial tax system; and imposing a mandatory one-time deemed repatriation tax, payable over eight years, on accumulated undistributed foreign subsidiary earnings and profits as of December 31, 2017. Given the significant changes resulting from and complexities associated with the Act, the estimated financial impacts related to the enactment of the Act, for Fiscal 2017 and up to one year from the enactment of the Act, were provisional and subject to further analysis, interpretation and clarification of the Act. The Company updated its interpretations and assumptions, which resulted in changes to these initial estimates during Fiscal 2018. The Company completed its accounting related to the Act in the fourth quarter of Fiscal 2018. As a result of the Company's initial analysis of the impact of the Act, the Company incurred discrete net income tax charges of $19.9 million in Fiscal 2017. In Fiscal 2018, the Company recognized measurement period charges of $3.5 million, primarily due to regulatory guidance issued by the Internal Revenue Service (the “IRS”). As a result of the Company’s initial analysis of the impact of the Act and subsequent measurement period adjustments, the Company incurred discrete net income tax charges in an aggregate amount of $16.5 million , which consisted of: • $23.7 million of tax expense related to the mandatory one-time deemed repatriation tax on accumulated undistributed foreign subsidiary earnings and profits of approximately $385.8 million ; • $5.6 million of tax benefit for the decrease in the Company’s federal deferred tax liability on unremitted foreign earnings; • $6.0 million of net tax benefit for adjustments to deferred taxes resulting from an international tax restructuring of foreign operations completed in response to the Act; • $3.5 million of tax expense related to the remeasurement of the Company’s ending deferred tax assets and deferred tax liabilities at February 3, 2018, as a result of the U.S. federal corporate income tax rate reduction from 35% to 21% ; and, • $0.8 million of tax expense at the state level related to the Company’s decision to repatriate $250 million of the Company’s undistributed foreign earnings to the U.S. in the fourth quarter of Fiscal 2018. Swiss Tax Reform In May 2019, Switzerland voted to approve the Federal Act on Tax Reform and AHV Financing (“Swiss Tax Reform”), effective at the federal level beginning January 2020, which resulted in the abolishment of preferential tax regimes by the cantons. In addition to the abolishment of the preferential tax regimes, the cantons needed to implement new, mandatory tax provisions in their cantonal tax law which were subject to a referendum process as well. As a result of these changes and actions taken by the Company, both of which occurred in the third quarter, the Company increased its deferred income tax assets and liabilities, which are recorded on the Consolidated Balance Sheets within other assets and other liabilities, respectively, by $38.0 million during the third quarter of Fiscal 2019. In the fourth quarter of Fiscal 2019, the canton of Ticino formally enacted the tax reform effective January 1, 2020. As a result, the tax reform entered into force on January 1, 2020. The Company decreased its deferred income tax assets and liabilities by $13.1 million during the fourth quarter of Fiscal 2019 for a net increase of deferred income tax assets and liabilities during Fiscal 2019 of $24.9 million as a result of Swiss Tax Reform. In addition, the Company incurred tax benefits of $2.9 million as a result of Swiss Tax Reform. Swiss Tax Reform did not have a material impact to the Consolidated Statements of Operations and Comprehensive Income or the Company’s cash flows during the period. Components of income taxes Income (loss) before income taxes consisted of: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Domestic (1) $ 17,590 $ 53,858 $ (12,326 ) Foreign 44,741 62,509 67,487 Income before income taxes $ 62,331 $ 116,367 $ 55,161 (1) Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return. Income tax expense consisted of: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Current: Federal $ (2,193 ) $ 7,460 $ (218 ) State 1,893 3,645 1,897 Foreign 8,521 20,508 5,472 Total current $ 8,221 $ 31,613 $ 7,151 Deferred: Federal (1) $ 29,012 $ 5,319 $ 23,620 State (107 ) 1,183 1,457 Foreign (1) (19,755 ) (556 ) 12,408 Total deferred 9,150 5,946 37,485 Income tax expense $ 17,371 $ 37,559 $ 44,636 (1) As a result of Swiss Tax Reform, Fiscal 2019 federal deferred tax expense included charges of $24.9 million and foreign deferred tax expense included benefits of $24.9 million. During Fiscal 2018, the Company repatriated $250 million of the Company’s foreign earnings and profits to the U.S. The Company has determined that the remaining balance of the Company’s undistributed earnings and profits from its foreign subsidiaries are considered indefinitely reinvested outside of the U.S. As a result of both the mandatory one-time deemed repatriation and the adoption of a modified territorial system under the Act, these earnings and profits could be repatriated without incurring additional federal income tax. If additional funds were to be repatriated to the U.S., the Company could incur an insignificant amount of state income taxes and foreign withholding taxes. Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 (1) U.S. federal corporate income tax rate 21.0 % 21.0 % 33.7 % Net change in valuation allowances 8.2 0.7 1.0 Foreign taxation of non-U.S. operations (2) 5.5 (0.9 ) (23.7 ) Write-off of stock basis in subsidiary 3.2 — — Internal Revenue Code Section 162(m) 2.2 1.0 — State income tax, net of U.S. federal income tax effect 1.9 3.6 3.5 Audit and other adjustments to prior years’ accruals, net 0.8 (0.1 ) — Permanent items 0.3 0.2 3.5 Statutory tax rate and law changes due to Swiss Tax Reform (4.6 ) — — Credit for increasing research activities (3.6 ) (1.7 ) (2.3 ) Net income attributable to noncontrolling interests (1.9 ) (0.8 ) (2.1 ) Additional U.S. taxation of non-U.S. operations (1.4 ) 5.1 17.3 Trust-owned life insurance policies (at cash surrender value) (1.1 ) (0.6 ) (1.9 ) Other statutory tax rate and law changes (0.9 ) (0.1 ) (0.3 ) Tax expense (benefit) recognized on share-based compensation expense (3) (0.9 ) 8.3 19.2 Credit items (0.8 ) (0.6 ) (4.2 ) Tax Cuts and Jobs Act of 2017 — (3.0 ) 36.1 Other items, net — 0.2 1.1 Total 27.9 % 32.3 % 80.9 % (1) On December 22, 2017, the Act was signed into law, which reduced the U.S. federal corporate income tax rate from 35% to 21% resulting in a blended U.S. federal income tax rate of 33.7% based on the applicable tax rates before and after January 1, 2018, and the number of days in Fiscal 2017. (2) Prior to 2019, U.S. branch operations in Canada and Puerto Rico were subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items. Effective in 2019, only Puerto Rico continues to be a branch of the U.S. (3) Refer to Note 14 , “ SHARE-BASED COMPENSATION ,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2019, Fiscal 2018, and Fiscal 2017. Historically, prior to the passage of the Tax Cuts and Jobs Act of 2017 (“Act”), the jurisdictional location of pre-tax income (loss) represented a significant component of the Company's effective tax rate as income tax rates outside the U.S. were 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 was amplified on a percentage basis at lower levels of consolidated pretax income (loss) in absolute dollars. As a result of the Act, the U.S. effective tax rate will be generally lower, but the effective tax rate remains dependent on jurisdictional mix. The taxation of non-U.S. operations line items 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 2019, the impact of taxation of non-U.S. operations on the Company's effective income tax rate was primarily related to the Company's Japan subsidiary, along with the Company’s NCI. For Fiscal 2019, the Company’s Japan subsidiary earned pre-tax income of $12.0 million with a jurisdictional effective tax rate of 35.1% . With respect to the NCI, the subsidiary incurred pre-tax income of $5.6 million with no jurisdictional tax effect. The Swiss earnings are subject to U.S. tax and the effect is included in the U.S. taxation of non-U.S. operations above. For Fiscal 2018, the impact of foreign taxation of non-U.S. operations on the Company’s effective income tax rate was primarily related to the Company’s Swiss subsidiary, along with the Company’s NCI. For Fiscal 2018, the Company’s Swiss subsidiary earned pre-tax income of $24.9 million with a jurisdictional effective tax rate of 12.9% . With respect to the NCI, the subsidiaries incurred pre-tax income of $4.3 million with no jurisdictional tax effect. The Swiss earnings are subject to U.S. tax and the effect is included in the U.S. taxation of non-U.S. operations above. For Fiscal 2017, the impact of foreign taxation of non-U.S. operations on the Company’s effective income tax rate was primarily related to the Company’s Swiss and Hong Kong SAR of China subsidiaries, along with the Company’s NCI. For Fiscal 2017, the Company’s Swiss subsidiary earned pre-tax income of $31.6 million with a jurisdictional effective tax rate of 1.2% . For Fiscal 2017, the Company’s Hong Kong SAR of China subsidiary incurred pre-tax losses of $7.4 million with a jurisdictional effective tax rate of negative 3.1% . With respect to the NCI, the subsidiaries incurred pre-tax income of $3.4 million with no jurisdictional tax effect. Components of deferred income tax assets and deferred income tax liabilities The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows: (in thousands) February 1, 2020 February 2, 2019 Deferred income tax assets: Operating lease liabilities (1) $ 370,068 $ — Intangibles, foreign step-up in basis (2) 77,565 52,615 Deferred compensation 19,849 22,341 Accrued expenses and reserves 13,571 12,767 Net operating losses (NOL), tax credit and other carryforwards 13,204 8,195 Rent 2,727 27,299 Prepaid expenses 1,246 — Investments in subsidiaries — 1,988 Other 3,613 1,012 Valuation allowances (8,916 ) (5,402 ) Total deferred income tax assets $ 492,927 $ 120,815 Deferred income tax liabilities: Operating lease right-of-use assets (1) $ (319,005 ) $ — U.S. offset to foreign step-up in basis (2) (77,565 ) (52,615 ) Property, equipment and intangibles (17,236 ) (4,769 ) Inventory (3,537 ) (6,937 ) Store supplies (2,843 ) (2,998 ) U.S. offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (2) (1,654 ) — Prepaid expenses — (2,564 ) Undistributed profits of non-U.S. subsidiaries (587 ) — Other (488 ) (660 ) Total deferred income tax liabilities $ (422,915 ) $ (70,543 ) Net deferred income tax assets (3) $ 70,012 $ 50,272 (1) Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements ,” for further discussion of the new lease accounting standard’s impact on the consolidated financial statements. (2) The deferred tax asset relates to a step-up in basis associated with the intra-entity transfer of intangible assets to Switzerland which are being amortized for Swiss local tax purposes. As this subsidiary’s income is also taxable in the U.S., a corresponding U.S. deferred tax liability was recognized to reflect lower resulting foreign tax credit due to the amortization of the Swiss step-up in basis. Included in the liability section is the remaining portion of deferred tax liabilities which are properly categorized in the table above. (3) This table does not reflect deferred taxes classified within accumulated other comprehensive loss. As of February 1, 2020 , accumulated other comprehensive loss included an insignificant amount of deferred tax liabilities. As of February 2, 2019 , accumulated other comprehensive loss included deferred tax liabilities of $0.3 million . As of February 1, 2020 , the Company had deferred tax assets related to federal, foreign and state NOL and credit carryforwards of $2.0 million , $9.5 million and $1.4 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 2020 and a portion of state NOL will begin to expire in 2023 . Some foreign NOLs have an indefinite carryforward period. The Company believes it is more likely than not that NOLs and credit carryforwards will reduce future years’ tax liabilities in various states and certain foreign jurisdictions less any associated valuation allowance. All valuation allowances and any changes in corresponding deferred tax liabilities have been reflected through the Consolidated Statements of Operations and Comprehensive 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. Changes in assumptions may occur based on new information that becomes available. In such case, the Company will record an adjustment in the period in which a determination is made. Other The amount of uncertain tax positions as of February 1, 2020 , February 2, 2019 and February 3, 2018 , which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, excluding accrued interest and penalties, are as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Uncertain tax positions, beginning of the year $ 478 $ 1,113 $ 1,239 Gross addition for tax positions of the current year 131 151 148 Gross addition (reduction) for tax positions of prior years 1,349 (3 ) (1 ) Reductions of tax positions of prior years for: Lapses of applicable statutes of limitations (151 ) (218 ) (157 ) Settlements during the period (13 ) (16 ) (116 ) Changes in judgment / excess reserve — (549 ) — Uncertain tax positions, end of year $ 1,794 $ 478 $ 1,113 The IRS is currently conducting an examination of the Company’s U.S. federal income tax return for Fiscal 2019 as part of the IRS’ Compliance Assurance Process program. The IRS examinations for Fiscal 2018 and prior years have been completed. 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 change by an immaterial amount due to settlement of audits and expiration of statues 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. Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income taxes ,” for discussion regarding significant accounting policies related to the Company’s income taxes. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Asset-based revolving credit facility On August 7, 2014, the Company, 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. On October 19, 2017, the Company, through its subsidiary A&F Management, entered into a Second Amendment to Credit Agreement (the “ABL Second Amendment”), amending and extending the maturity date of the asset-based revolving credit agreement to October 19, 2022. As amended, the asset-based revolving credit agreement continues to provide for a senior secured credit facility of up to $400 million (the “Amended ABL Facility”). The Amended ABL Facility is subject to a borrowing base, consisting primarily of U.S. inventory, with a letter of credit sub-limit of $50 million and an accordion feature allowing A&F to increase the revolving commitment by up to $100 million subject to specified conditions. The Amended ABL Facility is available for working capital, capital expenditures and other general corporate purposes. The Amended ABL Facility will mature on October 19, 2022 . Obligations under the Amended ABL Facility are unconditionally guaranteed by A&F and certain of its subsidiaries. The Amended 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 Amended 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. At the Company’s option, borrowings under the Amended ABL Facility will bear interest at either (a) an adjusted LIBO rate plus a margin of 1.25% to 1.50% per annum, or (b) an alternate base rate plus a margin of 0.25% to 0.50% per annum. As of February 1, 2020 , the applicable margins with respect to LIBO rate loans and base rate loans, including swing line loans, under the Amended ABL Facility were 1.25% and 0.25% per annum, respectively, and are subject to adjustment each fiscal quarter based on average historical availability during the preceding quarter. The Company is also required to pay a fee of 0.25% per annum on undrawn commitments under the Amended ABL Facility. Customary agency fees and letter of credit fees are also payable in respect of the Amended ABL Facility. As of February 1, 2020 , the Company had not drawn on the Amended ABL Facility, and had availability under the Amended ABL Facility of $272.0 million . In addition, excess availability equal to the greater of 10% of the loan cap or $30 million must be maintained under the Amended ABL Facility. Term loan facility On August 7, 2014, the Company, through its subsidiary A&F Management as the borrower (with A&F and certain other subsidiaries as guarantors), entered into a term loan agreement, which provides for a term loan facility of $300 million (the “Term Loan Facility” and, together with the Amended ABL Facility, the “Credit Facilities”). On June 22, 2018, A&F, through A&F Management, entered into the Second Amendment to Term Loan Credit Agreement (the “Term Loan Second Agreement”), which served to reprice the Term Loan Facility. As permitted under the credit agreement applicable to the Term Loan Facility, among other things, the Term Loan Second Amendment provided for the issuance by A&F Management of refinancing term loans in an aggregate principal amount of $253.3 million in exchange for the term loans then outstanding under the Term Loan Facility, which resulted in the reduction of the applicable margins for term loans by 0.25% . Under the Term Loan Second Amendment, at the Company’s option, borrowings under the Term Loan Facility now bear interest at either (a) an adjusted LIBO rate no lower than 1.00% plus a margin of 3.50% per annum, reduced from a margin of 3.75% per annum, or (b) an alternate base rate plus a margin of 2.50% per annum, reduced from a margin of 2.75% per annum. Deferred financing fees associated with the repricing transaction were not significant. 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 Credit Facilities in Fiscal 2014 of $5.8 million in aggregate, of which $3.2 million was paid to lenders. The Company also recorded deferred financing fees associated with the issuance of the ABL Second Amendment of $0.9 million . The debt discount and deferred financing fees are amortized over the respective contractual terms of the Credit Facilities. The Company’s Term Loan Facility debt is presented on the Consolidated Balance Sheets, net of the unamortized discount and fees. Additional details on borrowings as of February 1, 2020 and February 2, 2019 are as follows: (in thousands) February 1, 2020 February 2, 2019 Long-term portion of borrowings, gross at carrying amount $ 233,250 $ 253,250 Unamortized discount (355 ) (845 ) Unamortized fees (932 ) (1,966 ) Long-term portion of borrowings, net 231,963 250,439 Less: short-term portion of borrowings, net — — Long-term portion of borrowings, net $ 231,963 $ 250,439 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 Company made repayments of $20 million and $15 million in Fiscal 2019 and Fiscal 2017, respectively. The Term Loan Facility is subject to (a) 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 in the credit agreement applicable to the Term Loan Facility, including reinvestment rights, less any voluntary payments made. 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. The final principal installment of $233.3 million on the Term Loan Facility will be due August 7, 2021 . The interest rate on borrowings under the Term Loan Facility was 5.16% as of February 1, 2020 . Representations, warranties and covenants The 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 Amended ABL Facility. The Credit Facilities do not otherwise contain financial maintenance covenants. Both Credit Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances. The Company was in compliance with the covenants under the Credit Facilities as of February 1, 2020 . |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other liabilities consisted of: (in thousands) February 1, 2020 February 2, 2019 Deferred income tax liabilities (1) $ 74,903 $ 58,760 Accrued straight-line rent (2) — 71,341 Other (3) 103,633 105,044 Other liabilities $ 178,536 $ 235,145 (1) Deferred income tax liabilities presented in this table are netted against deferred income tax assets by jurisdiction. For further details on deferred income tax assets and deferred income tax liabilities refer to Note 11 , “ INCOME TAXES .” (2) Upon adoption of the new lease accounting standard in the first quarter of Fiscal 2019, the Company reclassified accrued straight-line rent from other liabilities to operating lease right-of-use assets. (3) Other primarily consists of deferred compensation, asset retirement obligation, the provisional, mandatory one-time deemed repatriation tax on accumulated foreign earnings, net and various other liabilities. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Plans As of February 1, 2020 , the Company had two primary share-based compensation plans: (i) the 2016 Directors LTIP , with 750,000 shares of the Company’s Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, stock appreciation rights, stock options and deferred stock awards to non-associate members of the Company’s Board of Directors; and (ii) the 2016 Associates LTIP , with 9,100,000 shares of the Company’s Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company. The Company also has outstanding shares from four other share-based compensation plans under which the Company granted restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company and restricted stock units, stock options and deferred stock awards to non-associate members of the Company’s Board of Directors in prior years. No new shares may be granted under these previously-authorized plans and any outstanding awards continue in effect in accordance with their respective terms. The 2016 Directors LTIP , a stockholder-approved plan, permits the Company to annually grant awards to non-associate directors, subject to the following limits: • For non-associate directors: awards with an aggregate fair market value on the date of the grant of no more than $300,000 ; • For the non-associate director occupying the role of Non-Executive Chairman of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $500,000 ; and • For the non-associate director occupying the role of Executive Chairman of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $2,500,000 . Under the 2016 Directors LTIP , restricted stock units are subject to a minimum vesting period ending no sooner than the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders held after the grant date. Any stock appreciation rights or stock options granted under this plan have the same minimum vesting period requirements as restricted stock units and, in addition, must have a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Directors LTIP . The 2016 Associates LTIP , a stockholder-approved plan, permits the Company to annually grant one or more types of awards covering up to an aggregate for all awards of 1.0 million of underlying shares of the Company’s Common Stock to any associate of the Company. Under the 2016 Associates LTIP , for restricted stock units that have performance-based vesting, performance must be measured over a period of at least one year and for restricted stock units that do not have performance-based vesting, vesting in full may not occur more quickly than in pro-rata installments over a period of three years from the date of the grant, with the first installment vesting no sooner than the first anniversary of the date of the grant. In addition, any stock options or stock appreciation rights granted under this plan must have a minimum vesting period of one year and a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Associates LTIP . Each of the 2016 Directors LTIP , and the 2016 Associates LTIP , provides for accelerated vesting of awards if there is a change of control and certain other conditions specified in each plan are met. Financial statement impact The following table details share-based compensation expense and the related income tax benefit for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 : (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Share-based compensation expense $ 14,007 $ 21,755 $ 22,108 Income tax benefit associated with share-based compensation expense recognized during the period $ 2,649 $ 4,562 $ 8,012 The following table details discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 : (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Income tax discrete benefits (charges) realized for tax deductions related to the issuance of shares during the period $ 1,156 $ 1,270 $ (3,527 ) Income tax discrete charges realized upon cancellation of stock appreciation rights during the period (611 ) (10,908 ) (7,089 ) Total income tax discrete benefits (charges) related to share-based compensation awards $ 545 $ (9,638 ) $ (10,616 ) The following table details the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting and the exercise of stock appreciation rights for the Fiscal 2019 , Fiscal 2018 and Fiscal 2017 : (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Employee tax withheld upon issuance of shares (1) $ 6,804 $ 6,937 $ 2,114 (1) Classified within other financing activities on the Consolidated Statements of Cash Flows. Restricted stock units The following table summarizes activity for restricted stock units for Fiscal 2019 : Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares (1) 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 February 2, 2019 2,020,030 $ 16.76 801,527 $ 13.28 435,970 $ 21.24 Granted 731,886 22.10 234,984 22.94 115,238 36.24 Adjustments for performance achievement — — (90,616 ) 24.06 (72,497 ) 28.20 Vested (772,258 ) 17.65 — — (18,125 ) 28.20 Forfeited (302,827 ) 16.78 (198,839 ) 13.10 (38,802 ) 29.90 Unvested at February 1, 2020 (2) 1,676,831 $ 18.68 747,056 $ 15.11 421,784 $ 23.05 (1) Includes 259,016 unvested restricted stock units as of February 1, 2020 , subject to vesting requirements related to the achievement of certain performance metrics, such as operating income and net income, for the fiscal year immediately preceding the vesting date. Holders of these restricted stock units have the opportunity to earn back one or more installments of the award if the cumulative performance requirements are met in a subsequent year. (2) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Certain unvested shares related to restricted stock units with performance-based vesting conditions can be achieved at up to 200% of their target vesting amount. The following table details unrecognized compensation cost and the remaining weighted-average period these costs are expected to be recognized for restricted stock units as of February 1, 2020 : (in thousands) Service-based Restricted Performance-based Restricted Market-based Restricted Unrecognized compensation cost $ 19,869 $ 2,857 $ 3,964 Remaining weighted-average period cost is expected to be recognized (years) 1.2 1.0 1.0 Additional information pertaining to restricted stock units for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Service-based restricted stock units: Total grant date fair value of awards granted $ 16,175 $ 17,167 $ 16,920 Total grant date fair value of awards vested $ 13,630 $ 17,100 $ 19,116 Performance-based restricted stock units: Total grant date fair value of awards granted $ 5,391 $ 4,339 $ 4,774 Total grant date fair value of awards vested $ — $ — $ — Market-based restricted stock units: Total grant date fair value of awards granted $ 4,176 $ 4,784 $ 2,793 Total grant date fair value of awards vested $ 511 $ 137 $ — The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 Grant date market price $ 25.34 $ 23.59 $ 11.43 Fair value $ 36.24 $ 33.69 $ 11.79 Assumptions: Price volatility 57 % 54 % 47 % Expected term (years) 2.9 2.9 2.9 Risk-free interest rate 2.2 % 2.4 % 1.5 % Dividend yield 3.2 % 3.4 % 7.0 % Average volatility of peer companies 40.0 % 37.4 % 35.2 % Average correlation coefficient of peer companies 0.2407 0.2709 0.2664 Stock appreciation rights The following table summarizes stock appreciation rights activity for Fiscal 2019 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (years) Outstanding at February 2, 2019 1,041,867 $ 37.81 Granted — — Exercised (43,463 ) 22.41 Forfeited or expired (201,679 ) 32.27 Outstanding at February 1, 2020 796,725 $ 40.06 $ — 2.3 Stock appreciation rights exercisable at February 1, 2020 796,725 $ 40.06 $ — 2.3 Stock appreciation rights expected to become exercisable in the future as of February 1, 2020 — $ — $ — 0.0 Additional information pertaining to stock appreciation rights for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Total grant date fair value of awards exercised $ 626 $ 1,366 $ 2,379 Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-based compensation ,” for discussion regarding significant accounting policies related to share-based compensation. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Feb. 01, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS As of February 1, 2020 , 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 $ 102,043 British pound $ 44,991 Canadian dollar $ 15,429 Japanese yen $ 9,123 (1) Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020 . As of February 1, 2020 , the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows: (in thousands) Notional Amount (1) Chinese yuan $ 21,695 Euro $ 11,019 (1) Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020 . The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Consolidated Balance Sheets as of February 1, 2020 and February 2, 2019 were as follows: (in thousands) Location February 1, 2020 February 2, 2019 Location February 1, 2020 February 2, 2019 Derivatives designated as cash flow hedging instruments Other current assets $ 1,869 $ 2,162 Accrued expenses $ 1,377 $ 15 Derivatives not designated as hedging instruments Other current assets 100 — Accrued expenses 83 317 Total $ 1,969 $ 2,162 $ 1,460 $ 332 Refer to Note 4 , “ FAIR VALUE , ” for further discussion of the determination of the fair value of derivative instruments. Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Gain (loss) recognized in AOCL (1) $ 7,495 $ 18,700 $ (21,810 ) Gain (loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization (2) $ 9,160 $ 4,727 $ (4,303 ) (1) Amount represents the change in fair value of derivative contracts. (2) Amount represents gain (loss) reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization. Substantially all of the unrealized gains or losses related to foreign currency exchange forward contracts designated as cash flow hedging instruments as of February 1, 2020 will be recognized within the Consolidated Statements of Operations and Comprehensive Income over the next twelve months. Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 (Loss) gain recognized in other operating income, net $ (298 ) $ 3,722 $ (3,557 ) Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative instruments ,” for discussion regarding significant accounting policies related to the Company’s derivative instruments. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS For Fiscal 2019 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2019 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 2, 2019 $ (104,887 ) $ 2,435 $ (102,452 ) Other comprehensive (loss) income before reclassifications (5,080 ) 7,495 2,415 Reclassified gain from accumulated other comprehensive loss (1) — (9,160 ) (9,160 ) Tax effect — 311 311 Other comprehensive loss (5,080 ) (1,354 ) (6,434 ) Ending balance at February 1, 2020 $ (109,967 ) $ 1,081 $ (108,886 ) (1) Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. For Fiscal 2018 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2018 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 3, 2018 $ (84,947 ) $ (10,107 ) $ (95,054 ) Other comprehensive (loss) income before reclassifications (19,956 ) 18,700 (1,256 ) Reclassified gain from accumulated other comprehensive loss (1) — (4,727 ) (4,727 ) Tax effect 16 (1,431 ) (1,415 ) Other comprehensive (loss) income after reclassifications (19,940 ) 12,542 (7,398 ) Ending balance at February 2, 2019 $ (104,887 ) $ 2,435 $ (102,452 ) (1) Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. For Fiscal 2017 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2017 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at January 28, 2017 $ (126,127 ) $ 4,825 $ (121,302 ) Other comprehensive income (loss) before reclassifications 42,492 (21,810 ) 20,682 Reclassified loss from accumulated other comprehensive loss (1) — 4,303 4,303 Tax effect (1,312 ) 2,575 1,263 Other comprehensive income (loss) after reclassifications 41,180 (14,932 ) 26,248 Ending balance at February 3, 2018 $ (84,947 ) $ (10,107 ) $ (95,054 ) (1) Amount represents loss reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. |
SAVINGS AND RETIREMENT PLANS
SAVINGS AND RETIREMENT PLANS | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | SAVINGS AND RETIREMENT PLANS The Company maintains the Abercrombie & Fitch Co. Savings and 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 Nonqualified Savings and Supplemental Retirement, comprised 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 to these plans are based on a percentage of associates’ eligible annual compensation. The cost of the Company’s contributions to these plans was $14.8 million , $15.1 million and $14.4 million for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 , respectively. In addition, the Company maintains the Supplemental Executive Retirement Plan which provides retirement income to its former Chief Executive Officer for life, based on averaged compensation before retirement, including base salary and cash incentive compensation. As of February 1, 2020 and February 2, 2019 , the Company has recorded $9.5 million and $9.2 million , respectively, in other liabilities on the Consolidated Balance Sheets related to future Supplemental Executive Retirement Plan distributions. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s two operating segments are brand-based: Hollister and Abercrombie, the latter of which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These operating segments have similar economic characteristics, classes of consumers, products, production and distribution methods, operate in the same regulatory environments, and have been aggregated into one reportable segment. Amounts shown below include net sales from wholesale, franchise and licensing operations, which are not a significant component of total revenue, and are aggregated within their respective operating segment and geographic area. The Company’s net sales by operating segment for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Hollister $ 2,158,514 $ 2,152,538 $ 2,038,598 Abercrombie 1,464,559 1,437,571 1,454,092 Total $ 3,623,073 $ 3,590,109 $ 3,492,690 The Company’s net sales by geographic area for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 United States $ 2,410,802 $ 2,321,700 $ 2,208,618 Europe 753,116 780,918 811,664 Other 459,155 487,491 472,408 Total $ 3,623,073 $ 3,590,109 $ 3,492,690 The Company’s long-lived assets and intellectual property, which primarily relates to trademark assets associated with the Company’s international operations, by geographic area as of February 1, 2020 , February 2, 2019 and February 3, 2018 were as follows: (in thousands) February 1, 2020 February 2, 2019 February 3, 2018 United States $ 1,211,630 $ 505,217 $ 494,132 Europe 462,017 159,266 192,133 Other 246,742 55,480 78,064 Total $ 1,920,389 $ 719,963 $ 764,329 |
FLAGSHIP STORE EXIT CHARGES (No
FLAGSHIP STORE EXIT CHARGES (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Flagship Store Exit Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | FLAGSHIP STORE EXIT CHARGES Global Store Network Optimization Reflecting a continued focus on one of the Company’s key transformation initiatives ‘Global Store Network Optimization,’ the Company continues to pivot away from its large format flagship stores and strives to open smaller, more productive omnichannel focused brand experiences. As a result, the Company has closed certain of its flagship stores and may have additional closures as it executes against this strategy. The Company recognizes charges related to the exit of its flagship stores in flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income. Details of the charges incurred during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 related to this initiative were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Single lease cost (1) $ 23,269 $ — $ — Variable lease cost (2) 20,218 — — Operating lease right-of-use asset impairment 3,229 — — Operating lease cost 46,716 — — Lease termination fees (3) — 3,688 1,996 Asset disposals and other store-closure costs (4) (1,687 ) — 345 Employee severance and other employee transition costs 2,228 2,118 52 Total flagship store exit charges $ 47,257 $ 5,806 $ 2,393 (1) Amount represents accelerated amortization associated with the operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. (2) Amount represents the remeasurement of the lease liability to reflect variable lease costs that became fixed upon decision to close flagship stores. (3) Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be incorporated into the above table as a component of operating lease cost. (4) Amounts represent costs incurred in returning the store to its original condition, including updates to previous accruals for asset retirement obligations and costs to remove inventory and store assets. Future fixed lease payments associated with closed flagship stores are reflected within the short-term and long-term operating lease liabilities on the Consolidated Balance Sheet as of February 1, 2020 . These payments are scheduled to be paid through the fiscal year ending January 30, 2029 (“Fiscal 2028”) and are not expected to exceed $15 million in aggregate in any fiscal year. Refer to Note 7 , “ LEASES ,” for a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows. As the Company continues its ‘Global Store Network Optimization’ efforts, it may incur incremental charges or future cash expenditures not currently contemplated due to events that may occur as a result of, or that are associated with, previously announced flagship store closures and flagship store closures that have not yet been finalized. At this time, the Company is not able to quantify the amount of incremental charges or future cash expenditures that may be incurred in future periods resulting from any potential flagship store closures given the unpredictable nature of lease exit negotiations and ultimate lease renewal decisions. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Feb. 01, 2020 | |
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. The Company’s legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and the Company establishes estimated liabilities for the outcome of litigation where losses are deemed probable and the amount of loss, or range of loss, is reasonably estimable. The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. Based on currently available information, the Company cannot estimate a range of reasonably possible losses in excess of the accrued charges for legal contingencies. In addition, the Company has not established accruals for certain claims and legal proceedings pending against the Company where it is not possible to reasonably estimate the outcome or potential liability, and the Company cannot estimate a range of reasonably possible losses for these legal matters. Actual liabilities may differ from the amounts recorded, due to uncertainties regarding final settlement agreement negotiations, court approvals and the terms of any approval by the courts, and there can be no assurance that final resolution of legal matters will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s assessment of the current exposure could change in the event of the discovery of additional facts. Certain legal matters The Company was a defendant in two separate class action lawsuits filed by former associates of the Company who are represented by the same counsel. The first lawsuit, filed in 2013, alleged failure to indemnify business expenses and a series of derivative claims for compelled patronization, inaccurate wage statements, waiting time penalties, minimum wage violations and unfair competition under California state law on behalf of all non-exempt hourly associates at Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks stores in California. Four subclasses of associates were certified, and the matter was before a U.S. District Court in California. The second lawsuit, filed in 2015, alleged that associates were required to purchase uniforms without reimbursement in violation of federal law, and laws of the states of New York, Florida and Massachusetts, as well as derivative putative state law claims and sought to pursue such claims on a class and collective basis. On December 12, 2017, a U.S. District Court in California granted the parties’ stipulation to transfer and combine the first-filed lawsuit with the second-filed lawsuit then pending before a U.S. District Court in Ohio. Both matters were mediated and the parties signed a settlement with a maximum potential payment of $25.0 million subject to a claim process. On February 16, 2018, a U.S. District Court in Ohio granted preliminary approval of the proposed settlement and ordered that notice of the proposed settlement be given to the absent members of the settlement class. On November 7, 2018 , the U.S. District Court in Ohio granted final approval of the proposed settlement, which resulted in a full and final settlement of all claims in both lawsuits on a class-wide basis for an ultimate settlement amount of approximately $10.1 million , which was paid by the Company in the fourth quarter of Fiscal 2018, based on the actual claims made by members of the class. In addition to the matters discussed above, the Company was a defendant in certain other class action lawsuits filed by former associates of the Company. These lawsuits, assigned to the same judge in a U.S. District Court in California, alleged non-exempt hourly associates of the Company were not properly compensated, in violation of federal and California law, for call-in practices requiring associates to engage in certain pre-shift activities in order to determine whether they should report to work and the Company’s alleged failure to pay reporting time pay and all wages earned at termination. In addition, these lawsuits included derivative claims alleging inaccurate wage statements and unfair competition under California state law on behalf of non-exempt hourly associates. One of these lawsuits was mediated and the parties involved have signed a $9.6 million settlement agreement, which was preliminarily approved by a U.S. District Court in California. On November 20, 2018, the U.S. District Court in California granted final approval of the proposed settlement, which resulted in a full and final settlement of all claims made therein for an ultimate settlement amount of $9.6 million , which was paid by the Company in the fourth quarter of Fiscal 2018. In Fiscal 2018, the Company recognized net charges of $2.6 million in connection with the legal matters discussed above. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized unaudited quarterly financial results for Fiscal 2019 and Fiscal 2018 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 quarterly results. Fiscal Quarter 2019 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 733,972 $ 841,078 $ 863,472 $ 1,184,551 Gross profit (1) $ 444,090 $ 498,633 $ 518,931 $ 689,264 Net (loss) income $ (18,286 ) $ (29,524 ) $ 7,570 $ 85,200 Net (loss) income attributable to A&F (2) $ (19,155 ) $ (31,142 ) $ 6,523 $ 83,132 Net (loss) income per basic share attributable to A&F (3) $ (0.29 ) $ (0.48 ) $ 0.10 $ 1.32 Net (loss) income per diluted share attributable to A&F (3) $ (0.29 ) $ (0.48 ) $ 0.10 $ 1.29 Fiscal Quarter 2018 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 730,899 $ 842,414 $ 861,194 $ 1,155,602 Gross profit (1) $ 442,345 $ 506,895 $ 527,819 $ 682,857 Net (loss) income $ (41,508 ) $ (2,824 ) $ 24,776 $ 98,364 Net (loss) income attributable to A&F (4) $ (42,461 ) $ (3,853 ) $ 23,919 $ 96,936 Net (loss) income per basic share attributable to A&F (3) $ (0.62 ) $ (0.06 ) $ 0.35 $ 1.47 Net (loss) income per diluted share attributable to A&F (3) $ (0.62 ) $ (0.06 ) $ 0.36 $ 1.42 (1) Gross profit is derived from cost of sales, exclusive of depreciation and amortization. (2) Net income (loss) attributable to A&F for Fiscal 2019 included certain items related to asset impairment and flagship store exit charges. These items adversely impacted net income (loss) attributable to A&F by $32.7 million , $8.0 million and $0.8 million for the second, third and fourth quarters of Fiscal 2019, respectively. (3) Net income (loss) per 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 full year. (4) Net income (loss) attributable to A&F for Fiscal 2018 included certain items related to asset impairment, legal charges and discrete tax items related to the Act. These items adversely impacted net income (loss) attributable to A&F by $4.1 million and $8.0 million for the first and second quarters of Fiscal 2018, respectively, and benefited net income (loss) attributable to A&F by $1.5 million and $5.3 million for the third and fourth quarters of Fiscal 2018, respectively. |
SUBSEQUENT EVENT (Notes)
SUBSEQUENT EVENT (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS COVID-19 has caused business disruption beginning in January 2020, with the closure of stores in China and the surrounding area, modified operating hours in certain stores that remained open, and a decline in traffic. In late February 2020, the situation escalated as the scope of COVID-19 worsened beyond the Asia-Pacific region, with Europe and the United States experiencing significant outbreaks. In March 2020, the COVID-19 outbreak was declared to be a global pandemic by the World Health Organization and the Company temporarily closed its Company-operated stores across brands in North America and Europe, effective beginning March 15, 2020 and March 16, 2020, respectively, and expects these stores to remain closed until further notice. The majority of the Company’s stores in the Asia-Pacific region have reopened, although many with temporarily reduced operating hours. The Company plans to follow the guidance of local governments and health organizations to determine when it can reopen these stores and to evaluate whether further store closures in the Asia-Pacific region will be necessary. As the situation continues to evolve rapidly, the Company is not currently able to predict the timing of store reopenings, which may occur on a location-by-location basis. The Company’s robust digital operations across brands remain open to serve the Company’s customers during this unprecedented period of temporary store closures. The Company has seen, and expects to continue to see material reductions in sales across brands and regions as a result of COVID-19. The Company could experience other material impacts as a result of COVID-19, including, but not limited to, charges from potential adjustments of the carrying amount of inventory, asset impairment charges, deferred tax valuation allowances and changes in the effectiveness of the Company’s hedging instruments. The current circumstances are dynamic and the impacts of COVID-19 on the Company’s business operations, including the duration and impact on overall customer demand, cannot be reasonably estimated at this time, although the Company anticipates COVID-19 will have a material adverse impact on its business, results of operations, financial condition and cash flows in Fiscal 2020. As a precautionary measure and to improve its cash position, on March 26, 2020, the Company borrowed $210 million under the Amended ABL Facility, which represented the total amount currently outstanding as of March 26, 2020. As of March 26, 2020, the interest rate on these borrowings was 2.18% with interest payments due monthly. The Amended ABL Facility is further described in Note 12 , “ BORROWINGS .” In addition, in March 2020, the Company withdrew the majority of excess funds from the overfunded Rabbi Trust assets, providing the Company with $50 million of additional cash. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash and Equivalents to Restricted cash and Equivalents [Table Text Block] | Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Consolidated Statements of Cash Flows: (in thousands) Location February 1, 2020 February 2, 2019 February 3, 2018 Cash and equivalents Cash and equivalents $ 671,267 $ 723,135 $ 675,558 Long-term restricted cash and equivalents Other assets 18,696 22,694 22,397 Short-term restricted cash and equivalents Other current assets 2,301 — — Cash and equivalents and restricted cash and equivalents $ 692,264 $ 745,829 $ 697,955 |
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 financial position, results of operations and cash flows. The Company has interests in an Emirati business venture and in a Kuwaiti 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”) on the Consolidated Statements of Operations and Comprehensive Income and MAF’s portion of equity presented as NCI on the Consolidated Balance Sheets. |
Fiscal Year | Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Consolidated Financial Statements and notes thereto, as well as the remainder of this Annual Report on Form 10-K, by the calendar year in which the fiscal year commenced. All references herein to the Company’s fiscal years are as follows: Fiscal year Year ended Number of weeks Fiscal 2017 February 3, 2018 53 Fiscal 2018 February 2, 2019 52 Fiscal 2019 February 1, 2020 52 Fiscal 2020 January 30, 2021 52 |
Use of estimates | Use of estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S. (“GAAP”), 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. |
Reclassification, Policy [Policy Text Block] | Prior period reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation of flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income. |
Cash and equivalents | Cash and equivalents A summary of cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Cash (1) $ 612,595 $ 633,137 Cash equivalents: (2) Time deposits 58,447 34,440 Money market funds 225 55,558 Cash and equivalents $ 671,267 $ 723,135 (1) Primarily consists of amounts on deposit with financial institutions. (2) Investments with original maturities of less than three months . |
Receivables | Receivables Receivables on the Consolidated Balance Sheets primarily include credit card receivables, lessor construction allowances, value added tax (“VAT”) receivables, trade receivables, income tax 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. Lessor 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. Trade receivables are amounts billed by the Company to wholesale, franchise and licensing partners in the ordinary course of business. Income tax receivables represent refunds of certain tax payments along with net operating loss and credit carryback claims for which the Company expects to receive refunds within the next 12 months. |
Inventories | Inventories Inventories on the Consolidated Balance Sheets are valued at the lower of cost and net realizable value on a weighted-average cost basis. The Company reduces the carrying value of inventory through a lower of cost and net realizable value 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. The lower of cost and net realizable value adjustment is based on the Company’s consideration of multiple factors and assumptions including demand forecasts, current sales volumes, expected sell-off activity, composition and aging of inventory, historical recoverability experience and risk of obsolescence from changes in economic conditions or customer preferences. Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each quarter that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink estimate accordingly. Refer to Note 5 , “ INVENTORIES .” The Company’s global sourcing of merchandise is generally negotiated and settled in U.S. Dollars. |
Other current assets | Other current assets Other current assets on the Consolidated Balance Sheets consists of: prepaid expenses including those related to rent, information technology maintenance and taxes; current store supplies; derivative contracts; short-term restricted cash and other. |
Property and equipment | Property and equipment, net Depreciation of property and equipment is 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 Furniture, 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 are removed from the accounts with any resulting gain or loss included in net income on the Consolidated Statements of Operations and Comprehensive 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. The Company 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. Refer to Note 6 , “ PROPERTY AND EQUIPMENT, NET .” |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Long-lived asset impairment For the purposes of asset impairment, the Company’s long-lived assets, primarily operating lease right-of-use assets, leasehold improvements, furniture, fixtures and equipment, are grouped with other assets and liabilities at the store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. On at least a quarterly basis, the Company reviews its asset groups for indicators of impairment, which include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions, store closure or relocation decisions, and any other events or changes in circumstances that would indicate the carrying amount of an asset group might not be recoverable. If an asset group displays an indicator of impairment, it is tested for recoverability by comparing the sum of the estimated future undiscounted cash flows attributable to the asset group to the carrying amount of the asset group. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. The key assumptions used in developing these projected cash flows used in the recoverability test include estimates of future sales, gross profit and, to a lesser extent, operating expenses. If the sum of the estimated future undiscounted cash flows attributable to an asset group is less than its carrying amount, and it is determined that the carrying amount of the asset group is not recoverable, the Company determines if there is an impairment loss by comparing the carrying amount of the asset group to its fair value. Fair value of an asset group is based on the highest and best use of the asset group, often using a discounted cash flow model that utilizes Level 3 fair value inputs. The key assumptions used in estimating fair value of an asset group may include discounted estimates of future cash flows from operating the store or comparable market rents. An impairment loss is recognized based on the excess of the carrying amount of the asset group over its fair value. Refer to Note 8 , “ ASSET IMPAIRMENT .” |
Intangible Assets Disclosure [Text Block] | Intellectual property Intellectual property primarily includes trademark assets associated with the Company’s international operations, consisting of finite-lived and indefinite-lived intangible assets. The Company’s finite-lived intangible assets are amortized over a useful life of 10 to 20 years. |
Restricted cash | Restricted cash and equivalents A summary of restricted cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Restricted cash (1) $ 6,631 $ 7,196 Restricted cash equivalents: (2) Money market funds 6,564 6,550 Time deposits 4,601 4,588 U.S. treasury bills 3,201 4,360 Restricted cash and equivalents (3) $ 20,997 $ 22,694 (1) Primarily consists of amounts on deposit 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. (2) Investments with original maturities of less than three months including time deposits, U.S. treasury bills and money market funds. (3) Includes short-term and long-term restricted cash and equivalents of $2.3 million and $18.7 million as of February 1, 2020, respectively, and long-term restricted cash and equivalents of $22.7 million as of February 2, 2019. Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Consolidated Statements of Cash Flows: (in thousands) Location February 1, 2020 February 2, 2019 February 3, 2018 Cash and equivalents Cash and equivalents $ 671,267 $ 723,135 $ 675,558 Long-term restricted cash and equivalents Other assets 18,696 22,694 22,397 Short-term restricted cash and equivalents Other current assets 2,301 — — Cash and equivalents and restricted cash and equivalents $ 692,264 $ 745,829 $ 697,955 |
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. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax positions that are not more likely than not to be sustained upon examination as well as related interest and penalties. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect the probable outcome of known tax contingencies. Unfavorable settlement of any particular issue may require use of the Company’s cash. Favorable resolution would be recognized as a reduction to the Company’s effective tax rate in the period of resolution. The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense on the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 11 , “ INCOME TAXES .” |
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 other operating income, net; whereas, translation adjustments and gains and losses associated with measuring inter-company loans of a long-term investment nature are reported as an element of other comprehensive income (loss). |
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. If the underlying hedged item is no longer probable of occurring, hedge accounting is discontinued. 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 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. 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 exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory transactions with foreign subsidiaries before inventory is sold to third parties. Fluctuations in exchange rates will either increase or decrease the Company’s intercompany 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 conversion of the inventory to cost of sales, exclusive of depreciation and amortization, will result in the reclassification of related derivative gains and losses that are reported in accumulated other comprehensive loss (“AOCL”) into earnings on the Consolidated Balance Sheets. The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets and liabilities, such as cash balances, receivables and payables. Fluctuations in foreign currency exchange rates result in transaction gains and losses being recorded in earnings as monetary assets and liabilities are remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these foreign currency exchange forward contracts because there are no differences in the timing of gain or loss recognition on the hedging instruments and the hedged items. The Company presents its derivative assets and derivative liabilities at their gross fair values within other current assets and accrued liabilities, respectively, on the Consolidated Balance Sheets. However, the Company’s derivative contracts allow net settlements under certain conditions. Refer to Note 15 , “ DERIVATIVE INSTRUMENTS . ” |
Stockholders' equity | Stockholders’ equity A summary of the Company’s Class A Common Stock (the “Common Stock”), $0.01 par value, and Class B Common Stock, $0.01 par value, follows: (in thousands) February 1, 2020 February 2, 2019 Class A Common Stock Shares authorized 150,000 150,000 Shares issued 103,300 103,300 Shares outstanding 62,786 66,227 Class B Common Stock (1) Shares authorized 106,400 106,400 (1) No shares were issued or outstanding as of each of February 1, 2020 and February 2, 2019 . 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 revenue from product sales when control of the good is transferred to the customer, generally upon pick up at, or shipment from, a Company location. The Company provides shipping and handling services to customers in certain transactions under its digital operations. Revenue associated with the related shipping and handling obligations is deferred until the obligation is fulfilled, typically upon the customer’s receipt of the merchandise. The related shipping and handling costs are classified in stores and distribution expense on the Consolidated Statements of Operations and Comprehensive Income. Revenue is recorded net of estimated returns, associate discounts, promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience among other factors. The sales return reserve is classified in accrued expenses on the Consolidated Balance Sheets. The Company accounts for gift cards sold to customers by recognizing an unearned revenue liability at the time of sale, which prior to Fiscal 2018 was recognized as other operating income, at the earlier of redemption by the customer or when the Company determined the likelihood of redemption to be remote, referred to as gift card breakage. Refer to “ Other operating income, net ,” below. Beginning in Fiscal 2018, gift card breakage is recognized proportionally with gift card redemptions in net sales. Gift cards sold to customers do not expire or lose value over periods of inactivity and the Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company also maintains loyalty programs, which primarily provide customers with the opportunity to earn points toward future merchandise discount rewards with qualifying purchases. The Company accounts for expected future reward redemptions by recognizing an unearned revenue liability as customers accumulate points, which remains until revenue is recognized at the earlier of redemption or expiration. Unearned revenue liabilities related to the Company’s gift card program and loyalty programs are classified in accrued expenses on the Consolidated Balance Sheets and are typically recognized as revenue within a 12-month period. For additional details on the Company’s unearned revenue liabilities related to the Company’s gift card and loyalty programs, refer to Note 3 , “ REVENUE RECOGNITION .” The Company also recognizes revenue under wholesale arrangements, which is generally recognized upon shipment, when control passes to the wholesale partner. Revenue from the Company’s franchise and license arrangements, primarily royalties earned upon sale of merchandise, is generally recognized at the time merchandise is sold to the franchisees’ retail customers or to the licensees’ wholesale customers. The Company does not include tax amounts collected from customers on behalf of third parties, including sales and indirect taxes, in net sales. All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income. For a discussion of the disaggregation of revenue, refer to Note 18 , “ SEGMENT REPORTING . ” |
Cost of sales, exclusive of depreciation and amortization | Cost of sales, exclusive of depreciation and amortization Cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income, primarily consists of cost incurred to ready inventory for sale, including product costs, freight, and import costs, as well as provisions for reserves for shrink and lower of cost and net realizable value. Gains and losses associated with the effective portion of designated foreign currency exchange forward contracts related to the hedging of inventory purchases are also recognized in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income when the inventory being hedged is sold. The Company’s cost of sales, exclusive of depreciation and amortization, and consequently gross profit, may not be comparable to that of other retailers, as inclusion of certain costs vary across the industry. Some retailers include all costs related to buying, design and distribution operations in cost of sales, while others may include either all or a portion of these costs in selling, general and administrative expenses. |
Stores and distribution expense | Stores and distribution expense Stores and distribution expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of: store payroll; store management; operating lease costs in Fiscal 2019 and rent expense in Fiscal 2018 and Fiscal 2017; utilities and other landlord expenses; depreciation and amortization, except for those amounts included in marketing, general and administrative expense; repairs and maintenance and other store support functions; marketing and other costs related to the Company’s digital operations; shipping and handling costs; and distribution center (“DC”) expense. A summary of shipping and handling costs, which includes costs incurred to store, move and prepare product for shipment and costs incurred to physically move product to our customers across channels, follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Shipping and handling costs $ 224,604 $ 201,614 $ 189,349 |
Marketing, general & administrative expense | Marketing, general and administrative expense Marketing, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of: home office compensation and marketing, except for those departments included in stores and distribution expense; information technology; outside services, such as legal and consulting; depreciation, primarily related to IT and other home office assets; amortization related to trademark assets; costs to design and develop the Company’s merchandise; relocation; recruiting; and travel expenses. |
Other operating income, net | Other operating income, net Other operating income, net on the Consolidated Statements of Operations and Comprehensive Income primarily consists of gains and losses resulting from foreign-currency-denominated transactions in Fiscal 2019 and Fiscal 2018 . For Fiscal 2017 , other operating income, net primarily consists of gains and losses resulting from foreign-currency-denominated transactions and gift card breakage, which beginning in Fiscal 2018 was no longer included in other operating income in conjunction with the adoption of the revenue recognition accounting standard. A summary of foreign-currency-denominated transactions, including those related to derivative instruments, follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Foreign-currency-denominated transaction gains $ 348 $ 5,267 $ 6,957 |
Interest Expense | Interest expense, net For Fiscal 2019, interest expense primarily consisted of interest expense on borrowings outstanding under the Company’s Term Loan Facility and interest expense related to certain of the Company’s long-term obligations. For Fiscal 2018 and Fiscal 2017, interest expense primarily consisted of borrowings outstanding under the Company’s Term Loan Facility and interest expense related to landlord financing obligations, which were eliminated along with the related interest expense upon adoption of the new lease accounting standard in Fiscal 2019. For Fiscal 2019 , Fiscal 2018 and Fiscal 2017 interest income primarily consisted of interest income earned on the Company’s investments and cash holdings and realized gains from the Rabbi Trust. A summary of interest expense, net follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Interest expense (1) $ 19,908 $ 22,788 $ 22,973 Interest income (12,171 ) (11,789 ) (6,084 ) Interest expense, net $ 7,737 $ 10,999 $ 16,889 (1) Includes interest expense related to landlord financing obligations of $5.5 million for each of Fiscal 2018 and Fiscal 2017 . Landlord financing obligations were eliminated with the adoption of the new lease accounting standard at the beginning Fiscal 2019 . |
Advertising costs | Advertising costs Advertising costs consist primarily of paid media advertising, direct digital advertising, including e-mail distribution, digital content and in-store photography and signage. Advertising costs related specifically to digital operations are expensed as incurred and the production of in-store photography and signage is expensed when the marketing campaign commences as components of stores and distribution expense. All other advertising costs are expensed as incurred as components of marketing, general and administrative expense. A summary of advertising costs follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Advertising costs $ 134,058 $ 136,553 $ 116,471 |
Leased facilities | Leases The Company determines if an arrangement is an operating lease at inception. For new operating leases, the Company recognizes an asset for the right to use a leased asset and a liability based on the present value of remaining lease payments over the lease term on the lease commencement date. The commencement date for new leases is when the lessor makes the leased asset available for use by the Company, typically the possession date. As the rates implicit in the Company’s leases are not readily determinable, the Company uses its incremental borrowing rate based on the transactional currency of the operating lease and the lease term for the initial measurement of the operating lease right-of-use asset and liability. For operating leases existing before the adoption of the new lease accounting standard, the Company used its incremental borrowing rate as of the date of adoption, determined using the remaining lease term as of the date of adoption. For operating leases commencing on or after the adoption of the new lease accounting standard, the incremental borrowing rate is determined using the remaining lease term as of the lease commencement date. The Company has elected to combine lease and nonlease components for all current classes of underlying leased assets. The measurement of operating lease right-of-use assets and liabilities includes amounts related to: • Lease payments made prior to the lease commencement date; • Incentives from landlords received by the Company for signing a lease, including construction allowances or deferred lease credits paid to the Company by landlords towards construction and tenant improvement costs, which are presented as a reduction to the right-of-use asset recorded; • Fixed payments related to operating lease components, such as rent escalation payments scheduled at the lease commencement date; • Fixed payments related to nonlease components, such as taxes, insurance, and maintenance costs; and • Unamortized initial direct costs incurred in conjunction with securing a lease, including key money, which are amounts paid directly to a landlord in exchange for securing the lease, and leasehold acquisition costs, which are amounts paid to parties other than the landlord, such as an existing tenant, to secure the desired lease. The measurement of operating lease right-of-use assets and liabilities excludes amounts related to: • Costs expected to be incurred to return a leased asset to its original condition, also referred to as asset retirement obligations, which are classified within other liabilities on the Consolidated Balance Sheets; • Variable payments related to operating lease components, such as contingent rent payments made by the Company based on performance, the expense of which is recognized in the period incurred on the Consolidated Statements of Operations and Comprehensive Income; • Variable payments related to nonlease components, such as taxes, insurance, and maintenance costs, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income; and • Leases not related to Company-operated retail stores with an initial term of 12 months or less, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income. Certain of the Company’s operating leases include options to extend the lease or to terminate the lease. The Company assesses these operating leases and, depending on the facts and circumstances, may or may not include these options in the measurement of the Company’s operating lease right-of-use assets and liabilities. Generally, the Company’s options to extend its operating leases are at the Company’s sole discretion and at the time of lease commencement are not reasonably certain of being exercised. There may be instances in which a lease is being renewed on a month-to-month basis and, in these instances, the Company will recognize lease expense in the period incurred in the Consolidated Statements of Operations and Comprehensive Income until a new agreement has been executed. Upon signing of the renewal agreement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of remaining lease payments over the lease term. Amortization and interest expense related to operating lease right-of-use assets and liabilities are generally calculated on a straight-line basis over the lease term. Amortization and interest expense related to previously impaired operating lease right-of-use assets are calculated on a front-loaded pattern. Depending on the nature of the operating lease, amortization and interest expense is primarily recorded within stores and distribution expense, marketing, general and administrative expense, or flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, the Company does not have any sublease arrangements with any related party or third party. Refer to Note 7 , “ LEASES .” |
Share-based compensation | Share-based compensation 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 February 1, 2020 , the Company had sufficient treasury stock available to settle restricted stock units and stock appreciation rights 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 as of which share-based compensation awards remain outstanding, there are not sufficient shares of Common Stock available to be issued under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Directors (as amended effective June 15, 2017, the “ 2016 Directors LTIP ”) and the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates (as amended effective June 12, 2019, the “ 2016 Associates 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 would be 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. 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 awards 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. 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 rights, as appropriate. The Company calculates the volatility as the annualized standard deviation of the differences in the natural logarithms of the weekly closing price of the Common Stock, adjusted for stock splits and dividends. Service-based restricted stock units are expensed on a straight-line basis over the award’s requisite service period. Performance-based restricted stock units subject to graded vesting are expensed on an accelerated attribution basis. Performance share award expense is primarily recognized in the performance period of the award’s requisite service period. Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the award’s requisite service period. Compensation expense for stock appreciation rights is recognized on a straight-line basis over the award’s requisite service period. The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures. 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 issuance 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 differs from the recorded deferred tax asset, the excess tax benefit or deficit associated with the tax deduction is recognized within income tax expense. Refer to Note 14 , “ SHARE-BASED COMPENSATION .” Plans As of February 1, 2020 , the Company had two primary share-based compensation plans: (i) the 2016 Directors LTIP , with 750,000 shares of the Company’s Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, stock appreciation rights, stock options and deferred stock awards to non-associate members of the Company’s Board of Directors; and (ii) the 2016 Associates LTIP , with 9,100,000 shares of the Company’s Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company. The Company also has outstanding shares from four other share-based compensation plans under which the Company granted restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company and restricted stock units, stock options and deferred stock awards to non-associate members of the Company’s Board of Directors in prior years. No new shares may be granted under these previously-authorized plans and any outstanding awards continue in effect in accordance with their respective terms. The 2016 Directors LTIP , a stockholder-approved plan, permits the Company to annually grant awards to non-associate directors, subject to the following limits: • For non-associate directors: awards with an aggregate fair market value on the date of the grant of no more than $300,000 ; • For the non-associate director occupying the role of Non-Executive Chairman of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $500,000 ; and • For the non-associate director occupying the role of Executive Chairman of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $2,500,000 . Under the 2016 Directors LTIP , restricted stock units are subject to a minimum vesting period ending no sooner than the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders held after the grant date. Any stock appreciation rights or stock options granted under this plan have the same minimum vesting period requirements as restricted stock units and, in addition, must have a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Directors LTIP . The 2016 Associates LTIP , a stockholder-approved plan, permits the Company to annually grant one or more types of awards covering up to an aggregate for all awards of 1.0 million of underlying shares of the Company’s Common Stock to any associate of the Company. Under the 2016 Associates LTIP , for restricted stock units that have performance-based vesting, performance must be measured over a period of at least one year and for restricted stock units that do not have performance-based vesting, vesting in full may not occur more quickly than in pro-rata installments over a period of three years from the date of the grant, with the first installment vesting no sooner than the first anniversary of the date of the grant. In addition, any stock options or stock appreciation rights granted under this plan must have a minimum vesting period of one year and a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Associates LTIP . Each of the 2016 Directors LTIP , and the 2016 Associates LTIP , provides for accelerated vesting of awards if there is a change of control and certain other conditions specified in each plan are met. |
Net income per share | Net income per share attributable to A&F Net income per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of Class A Common Stock. Additional information pertaining to net income per share attributable to A&F is as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Shares of Common Stock issued 103,300 103,300 103,300 Weighted-average treasury shares (38,872 ) (35,950 ) (34,909 ) Weighted-average — basic shares 64,428 67,350 68,391 Dilutive effect of share-based compensation awards 1,350 1,787 1,012 Weighted-average — diluted shares 65,778 69,137 69,403 Anti-dilutive shares (1) 1,462 1,838 5,379 (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. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can achieve up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion. |
Recent accounting pronouncements | Recent accounting pronouncements The Company reviews recent accounting pronouncements on a quarterly basis and has excluded discussion of those not applicable to the Company and those not expected to have or that did not have a material impact on the Company’s consolidated financial statements. The following table provides a brief description of certain recent accounting pronouncements the Company has adopted or that the Company believes could impact the consolidated financial statements. Accounting Standards Update (ASU) Description Effect on the Financial Statements or Other Significant Matters Leases (ASU 2016-02) Date of adoption: February 3, 2019 This update supersedes the leasing standard in Accounting Standards Codification (“ASC”) 840, Leases . The new standard requires an entity to recognize lease assets and lease liabilities on the balance sheet and disclose key leasing information that depicts the lease rights and obligations of an entity. The Company adopted this standard using a modified retrospective transition method and elected to not restate comparative periods. In conjunction with the adoption of this standard, the Company elected: - the package of practical expedients which, among other things, allowed the Company to carry forward historical lease classification for leases existing before the date of adoption; and - to combine lease and nonlease components for all current classes of underlying leased assets. However, the Company did not elect the practical expedient to use hindsight when determining the lease term or assessing impairment. Adoption of this standard resulted in the Company’s total assets and total liabilities on the Consolidated Balance Sheet each increasing by approximately $1.2 billion, primarily due to the recognition of operating lease right-of-use assets and liabilities. Certain of these newly-established operating lease right-of-use assets related to previously impaired stores and, therefore, were assessed for impairment upon adoption. To the extent that the initial carrying amount for each such lease right-of-use asset was greater than its fair value, an asset impairment charge was recognized as an adjustment to the opening balance of retained earnings on the date of adoption. The key assumptions used in estimating the fair value of the operating lease right-of-use assets on the date of adoption included comparable market rents and discount rates. The Company recognized a cumulative adjustment decreasing the opening balance of retained earnings by $0.1 billion on the date of adoption. The adoption of this standard did not have a significant impact on the timing or classification of the Company’s Consolidated Statement of Cash Flows, the Company’s liquidity or the Company’s debt covenant compliance under current agreements. Additional information regarding the impact from adoption of the new lease accounting standard and updated accounting policies related to leases is provided further in this Note 2. Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12) Date of adoption: February 3, 2019 This update amends ASC 815, Derivatives and Hedging . The new standard simplifies certain aspects of hedge accounting for both financial and commodity risks to more accurately present the economic effects of an entity’s risk management activities in its financial statements. The Company adopted this standard using a modified retrospective transition approach, while the amended presentation and disclosure standard requires a prospective approach. Upon adoption of this standard, the Company elected to include time value in its assessment of effectiveness for derivative instruments designated as cash flow hedges. Accounting policies related to derivatives have been updated and are provided further in this Note 2. The adoption of this standard did not have a significant impact on the Company’s Consolidated Financial Statements for Fiscal 2019. Intangibles — Goodwill and Other —Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) Date of adoption: February 3, 2019 This update amends ASC 350, Intangibles — Goodwill and Other —Internal-Use Software. The new standard allows companies to defer certain direct costs related to software as a service (“SaaS”) implementation costs and amortize them to operating expense over the term of the related SaaS arrangement. The criteria for determining whether costs associated with SaaS can be capitalized are now the same criteria applied to internal software development costs in order to assess eligibility for deferral. The Company early adopted this standard on a prospective basis and comparative periods have not been restated. The Company capitalized $3.6 million of SaaS implementation costs in Fiscal 2019. Amortization expense related to capitalized SaaS implementation costs was $1.4 million for Fiscal 2019. The following table provides the impact from adoption of the new lease accounting standard on the Company’s Consolidated Balance Sheet: (in thousands) February 2, 2019 (as reported under previous lease accounting standard) Impact from adoption of new lease accounting standard February 3, 2019 (Upon adoption of new lease accounting standard) (1) Assets Current assets: Cash and equivalents $ 723,135 $ — $ 723,135 Receivables 73,112 — 73,112 Inventories 437,879 — 437,879 Other current assets (2) 101,824 (31,310 ) 70,514 Total current assets 1,335,950 (31,310 ) 1,304,640 Property and equipment, net (3) 694,855 (46,624 ) 648,231 Operating lease right-of-use assets (2) — 1,234,515 1,234,515 Other assets (2) (5) 354,788 15,553 370,341 Total assets $ 2,385,593 $ 1,172,134 $ 3,557,727 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 226,878 $ — $ 226,878 Accrued expenses (2) 293,579 (13,508 ) 280,071 Short-term portion of operating lease liabilities (4) — 280,108 280,108 Short-term portion of deferred lease credits (2) 19,558 (19,558 ) — Income taxes payable 18,902 — 18,902 Total current liabilities 558,917 247,042 805,959 Long-term liabilities: Long-term portion of operating lease liabilities (4) — 1,193,946 1,193,946 Long-term portion of borrowings, net 250,439 — 250,439 Long-term portion of deferred lease credits (2) 76,134 (76,134 ) — Leasehold financing obligations (3) 46,337 (46,337 ) — Other liabilities (2) (5) 235,145 (71,218 ) 163,927 Total long-term liabilities 608,055 1,000,257 1,608,312 Stockholders’ equity Class A Common Stock 1,033 — 1,033 Paid-in capital 405,379 — 405,379 Retained earnings (6) 2,418,544 (75,165 ) 2,343,379 Accumulated other comprehensive loss, net of tax (102,452 ) — (102,452 ) Treasury stock, at average cost (1,513,604 ) — (1,513,604 ) Total Abercrombie & Fitch Co. stockholders’ equity 1,208,900 (75,165 ) 1,133,735 Noncontrolling interests 9,721 — 9,721 Total stockholders’ equity 1,218,621 (75,165 ) 1,143,456 Total liabilities and stockholders’ equity $ 2,385,593 $ 1,172,134 $ 3,557,727 (1) Amounts under “Upon adoption on February 3, 2019 (under new lease accounting standard),” are calculated as February 2, 2019 reported balances adjusted for the impact of adoption on the first day of Fiscal 2019, February 3, 2019. (2) Upon adoption, the Company recognized assets for the rights to use its operating leases on the Consolidated Balance Sheet. In conjunction with this recognition, the Company reclassified amounts to operating lease right-of-use assets including: short-term prepaid rent from other current assets; key money, long-term prepaid rent and leasehold acquisition costs from other assets; short-term and long-term portions of deferred lease credits; and accrued rent and accrued straight-line rent from accrued expenses and other liabilities, respectively. (3) Upon adoption, the Company derecognized construction project assets and related leasehold financing obligations that previously failed to qualify for sale and leaseback accounting. In certain instances, these construction project assets had shielded other assets included within their respective asset groups from impairment, as the fair value of the construction project assets had exceeded the carrying values of their respective asset groups. In such instances, the Company recognized impairment of certain leasehold improvements and store assets upon adoption. (4) Upon adoption, the Company recognized operating lease liabilities on the Consolidated Balance Sheet. (5) Upon adoption, the Company established net deferred tax assets for operating lease right-of-use assets and operating lease liabilities. (6) Upon adoption, the Company recognized a cumulative adjustment decreasing the opening balance of retained earnings, primarily related to right-of-use asset impairment charges for certain of the Company’s stores where it was previously determined that the carrying value of assets was not recoverable, partially offset by benefits to retained earnings to establish net deferred tax assets and a net gain resulting from the derecognition of certain leased building assets and related leasehold financing obligations that previously failed to qualify for sale and leaseback accounting. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Revenue recognition The Company recognizes revenue from product sales when control of the good is transferred to the customer, generally upon pick up at, or shipment from, a Company location. The Company provides shipping and handling services to customers in certain transactions under its digital operations. Revenue associated with the related shipping and handling obligations is deferred until the obligation is fulfilled, typically upon the customer’s receipt of the merchandise. The related shipping and handling costs are classified in stores and distribution expense on the Consolidated Statements of Operations and Comprehensive Income. Revenue is recorded net of estimated returns, associate discounts, promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience among other factors. The sales return reserve is classified in accrued expenses on the Consolidated Balance Sheets. The Company accounts for gift cards sold to customers by recognizing an unearned revenue liability at the time of sale, which prior to Fiscal 2018 was recognized as other operating income, at the earlier of redemption by the customer or when the Company determined the likelihood of redemption to be remote, referred to as gift card breakage. Refer to “ Other operating income, net ,” below. Beginning in Fiscal 2018, gift card breakage is recognized proportionally with gift card redemptions in net sales. Gift cards sold to customers do not expire or lose value over periods of inactivity and the Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company also maintains loyalty programs, which primarily provide customers with the opportunity to earn points toward future merchandise discount rewards with qualifying purchases. The Company accounts for expected future reward redemptions by recognizing an unearned revenue liability as customers accumulate points, which remains until revenue is recognized at the earlier of redemption or expiration. Unearned revenue liabilities related to the Company’s gift card program and loyalty programs are classified in accrued expenses on the Consolidated Balance Sheets and are typically recognized as revenue within a 12-month period. For additional details on the Company’s unearned revenue liabilities related to the Company’s gift card and loyalty programs, refer to Note 3 , “ REVENUE RECOGNITION .” The Company also recognizes revenue under wholesale arrangements, which is generally recognized upon shipment, when control passes to the wholesale partner. Revenue from the Company’s franchise and license arrangements, primarily royalties earned upon sale of merchandise, is generally recognized at the time merchandise is sold to the franchisees’ retail customers or to the licensees’ wholesale customers. The Company does not include tax amounts collected from customers on behalf of third parties, including sales and indirect taxes, in net sales. All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income. For a discussion of the disaggregation of revenue, refer to Note 18 , “ SEGMENT REPORTING . ” |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Investments [Table Text Block] | A summary of cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Cash (1) $ 612,595 $ 633,137 Cash equivalents: (2) Time deposits 58,447 34,440 Money market funds 225 55,558 Cash and equivalents $ 671,267 $ 723,135 (1) Primarily consists of amounts on deposit with financial institutions. (2) Investments with original maturities of less than three months . |
Restrictions on Cash and Cash Equivalents [Table Text Block] | A summary of restricted cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) February 1, 2020 February 2, 2019 Restricted cash (1) $ 6,631 $ 7,196 Restricted cash equivalents: (2) Money market funds 6,564 6,550 Time deposits 4,601 4,588 U.S. treasury bills 3,201 4,360 Restricted cash and equivalents (3) $ 20,997 $ 22,694 (1) Primarily consists of amounts on deposit 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. (2) Investments with original maturities of less than three months including time deposits, U.S. treasury bills and money market funds. (3) Includes short-term and long-term restricted cash and equivalents of $2.3 million and $18.7 million as of February 1, 2020, respectively, and long-term restricted cash and equivalents of $22.7 million as of February 2, 2019. Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Consolidated Statements of Cash Flows: (in thousands) Location February 1, 2020 February 2, 2019 February 3, 2018 Cash and equivalents Cash and equivalents $ 671,267 $ 723,135 $ 675,558 Long-term restricted cash and equivalents Other assets 18,696 22,694 22,397 Short-term restricted cash and equivalents Other current assets 2,301 — — Cash and equivalents and restricted cash and equivalents $ 692,264 $ 745,829 $ 697,955 |
Interest Income and Interest Expense Disclosure [Table Text Block] | A summary of interest expense, net follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Interest expense (1) $ 19,908 $ 22,788 $ 22,973 Interest income (12,171 ) (11,789 ) (6,084 ) Interest expense, net $ 7,737 $ 10,999 $ 16,889 |
Schedule of Stock by Class [Table Text Block] | A summary of the Company’s Class A Common Stock (the “Common Stock”), $0.01 par value, and Class B Common Stock, $0.01 par value, follows: (in thousands) February 1, 2020 February 2, 2019 Class A Common Stock Shares authorized 150,000 150,000 Shares issued 103,300 103,300 Shares outstanding 62,786 66,227 Class B Common Stock (1) Shares authorized 106,400 106,400 (1) No shares were issued or outstanding as of each of February 1, 2020 and February 2, 2019 . |
Shipping & Handling Costs [Table Text Block] | A summary of shipping and handling costs, which includes costs incurred to store, move and prepare product for shipment and costs incurred to physically move product to our customers across channels, follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Shipping and handling costs $ 224,604 $ 201,614 $ 189,349 |
Schedule of Weighted Average Number of Shares | Additional information pertaining to net income per share attributable to A&F is as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Shares of Common Stock issued 103,300 103,300 103,300 Weighted-average treasury shares (38,872 ) (35,950 ) (34,909 ) Weighted-average — basic shares 64,428 67,350 68,391 Dilutive effect of share-based compensation awards 1,350 1,787 1,012 Weighted-average — diluted shares 65,778 69,137 69,403 Anti-dilutive shares (1) 1,462 1,838 5,379 (1) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The following table details certain contract liabilities representing unearned revenue as of February 1, 2020 and February 2, 2019 : (in thousands) February 1, 2020 February 2, 2019 Gift card liability $ 28,844 $ 26,062 Loyalty program liability $ 23,051 $ 19,904 The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for Fiscal 2019 and Fiscal 2018 : (in thousands) Fiscal 2019 Fiscal 2018 Revenue associated with gift card redemptions and gift card breakage $ 70,164 $ 62,865 Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs $ 35,701 $ 36,348 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of the Company's Assets and Liabilities measured at Fair Value | The three levels of the hierarchy and the distribution of the Company’s assets and liabilities that are measured at fair value on a recurring basis, were as follows: Assets and Liabilities at Fair Value as of February 1, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 225 $ 58,447 $ — $ 58,672 Derivative instruments (2) — 1,969 — 1,969 Rabbi Trust assets (3) 1 109,048 — 109,049 Restricted cash equivalents (4) 9,765 4,601 — 14,366 Total assets $ 9,991 $ 174,065 $ — $ 184,056 Liabilities: Derivative instruments (2) $ — $ 1,460 $ — $ 1,460 Total liabilities $ — $ 1,460 $ — $ 1,460 Assets and Liabilities at Fair Value as of February 2, 2019 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 55,558 $ 34,440 $ — $ 89,998 Derivative instruments (2) — 2,162 — 2,162 Rabbi Trust assets (3) 5 105,877 — 105,882 Restricted cash equivalents (4) 10,910 4,588 — 15,498 Total assets $ 66,473 $ 147,067 $ — $ 213,540 Liabilities: Derivative instruments (2) $ — $ 332 $ — $ 332 Total liabilities $ — $ 332 $ — $ 332 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The carrying amount and fair value of gross borrowings under the Company’s term loan credit facility were as follows: (in thousands) February 1, 2020 February 2, 2019 Gross borrowings outstanding, carrying amount $ 233,250 $ 253,250 Gross borrowings outstanding, fair value $ 233,979 $ 252,933 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Inventory [Line Items] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of: (in thousands) February 1, 2020 February 2, 2019 Inventories at original cost $ 456,335 $ 458,860 Less: Lower of cost and net realizable value adjustment (14,925 ) (13,951 ) Less: Shrink estimate (7,084 ) (7,030 ) Inventories (1) $ 434,326 $ 437,879 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of: (in thousands) February 1, 2020 February 2, 2019 Land $ 28,599 $ 36,875 Buildings 230,281 285,014 Furniture, fixtures and equipment 674,885 691,914 Information technology 609,917 557,607 Leasehold improvements 1,138,372 1,229,494 Construction in progress 60,913 26,319 Other 2,000 2,027 Total 2,744,967 2,829,250 Less: Accumulated depreciation (2,079,677 ) (2,134,395 ) Property and equipment, net $ 665,290 $ 694,855 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table provides a summary of the Company’s operating lease costs for Fiscal 2019 : (in thousands) Fiscal 2019 Single lease cost (1) $ 427,982 Variable lease cost (2) 143,472 Operating lease right-of-use asset impairment (3) 15,812 Total operating lease cost $ 587,266 (1) Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities. Includes $23.3 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” (2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. Includes $20.2 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” (3) Includes $3.2 million of asset charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” |
Schedule of Rent Expense | As reported under the previous accounting standard, the following table provides a summary of rent expense for Fiscal 2018 and Fiscal 2017 : (in thousands) Fiscal 2018 Fiscal 2017 Store rent expense: Fixed minimum (1) $ 365,229 $ 373,457 Contingent 18,189 14,752 Deferred lease credits amortization (21,320 ) (22,149 ) Total store rent expense 362,098 366,060 Buildings, equipment and other 8,800 9,752 Total rent expense $ 370,898 $ 375,812 (1) Includes lease termination fees of $4.0 million and $2.0 million for Fiscal 2018 and Fiscal 2017 , respectively. Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be a component of operating lease cost. |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As reported under the previous accounting standard, the following table provides a summary of operating lease commitments, including leasehold financing obligations, under noncancelable leases as of February 2, 2019 : (in thousands) February 2, 2019 Fiscal 2019 $ 367,622 Fiscal 2020 304,270 Fiscal 2021 205,542 Fiscal 2022 159,617 Fiscal 2023 128,626 Fiscal 2024 and thereafter 310,003 Total $ 1,475,680 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table provides the weighted-average remaining lease term of the Company’s operating leases and the weighted-average discount rates used to calculate the Company’s operating lease liabilities as of February 1, 2020 : February 1, 2020 Weighted-average remaining lease term (years) 6.2 Weighted-average discount rate 5.4 % The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, as of February 1, 2020 : (in thousands) February 1, 2020 Fiscal 2020 357,646 Fiscal 2021 325,272 Fiscal 2022 276,796 Fiscal 2023 232,984 Fiscal 2024 166,341 Fiscal 2025 and thereafter 460,955 Total undiscounted operating lease payments $ 1,819,994 Less: Imputed interest (284,531 ) Present value of operating lease liabilities $ 1,535,463 |
Schedule Of Deferred Lease Credits [Table Text Block] | As reported under the previous accounting standard, the following table provides a summary of deferred lease credits as of February 2, 2019 : (in thousands) February 2, 2019 Deferred lease credits $ 450,295 Amortized deferred lease credits (354,603 ) Total deferred lease credits, net 95,692 Less: short-term portion of deferred lease credits (19,558 ) Long-term portion of deferred lease credits $ 76,134 |
ASSET IMPAIRMENT (Tables)
ASSET IMPAIRMENT (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Asset Impairment [Abstract] | |
Asset Impairment Charges [Table Text Block] | The following table provides additional details related to long-lived asset impairment charges: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Operating lease right-of-use asset impairment (1) $ 15,812 $ — $ — Property and equipment asset impairment 6,552 11,580 14,391 Total asset impairment $ 22,364 $ 11,580 $ 14,391 (1) Includes $3.2 million of operating lease right-of-use asset impairment included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019 . Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” |
RABBI TRUST ASSETS (Tables)
RABBI TRUST ASSETS (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of Rabbi Trust Assets | Investments of Rabbi Trust assets consisted of the following as of February 1, 2020 and February 2, 2019 : (in thousands) February 1, 2020 February 2, 2019 Trust-owned life insurance policies (at cash surrender value) $ 109,048 $ 105,877 Money market funds 1 5 Rabbi Trust assets $ 109,049 $ 105,882 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of: (in thousands) February 1, 2020 February 2, 2019 Accrued payroll and related costs (1) $ 58,588 $ 65,156 Accrued taxes 38,632 38,490 Other (2) 204,994 189,933 Accrued expenses $ 302,214 $ 293,579 (1) Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll-related costs. (2) Other includes the Company’s gift card and loyalty program liabilities, and expenses incurred but not yet paid primarily related to outside services associated with store and home office operations and construction in progress. Refer to Note 3 , “ REVENUE RECOGNITION .” |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Components of income taxes Income (loss) before income taxes consisted of: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Domestic (1) $ 17,590 $ 53,858 $ (12,326 ) Foreign 44,741 62,509 67,487 Income before income taxes $ 62,331 $ 116,367 $ 55,161 (1) Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return. |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Current: Federal $ (2,193 ) $ 7,460 $ (218 ) State 1,893 3,645 1,897 Foreign 8,521 20,508 5,472 Total current $ 8,221 $ 31,613 $ 7,151 Deferred: Federal (1) $ 29,012 $ 5,319 $ 23,620 State (107 ) 1,183 1,457 Foreign (1) (19,755 ) (556 ) 12,408 Total deferred 9,150 5,946 37,485 Income tax expense $ 17,371 $ 37,559 $ 44,636 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 (1) U.S. federal corporate income tax rate 21.0 % 21.0 % 33.7 % Net change in valuation allowances 8.2 0.7 1.0 Foreign taxation of non-U.S. operations (2) 5.5 (0.9 ) (23.7 ) Write-off of stock basis in subsidiary 3.2 — — Internal Revenue Code Section 162(m) 2.2 1.0 — State income tax, net of U.S. federal income tax effect 1.9 3.6 3.5 Audit and other adjustments to prior years’ accruals, net 0.8 (0.1 ) — Permanent items 0.3 0.2 3.5 Statutory tax rate and law changes due to Swiss Tax Reform (4.6 ) — — Credit for increasing research activities (3.6 ) (1.7 ) (2.3 ) Net income attributable to noncontrolling interests (1.9 ) (0.8 ) (2.1 ) Additional U.S. taxation of non-U.S. operations (1.4 ) 5.1 17.3 Trust-owned life insurance policies (at cash surrender value) (1.1 ) (0.6 ) (1.9 ) Other statutory tax rate and law changes (0.9 ) (0.1 ) (0.3 ) Tax expense (benefit) recognized on share-based compensation expense (3) (0.9 ) 8.3 19.2 Credit items (0.8 ) (0.6 ) (4.2 ) Tax Cuts and Jobs Act of 2017 — (3.0 ) 36.1 Other items, net — 0.2 1.1 Total 27.9 % 32.3 % 80.9 % (1) On December 22, 2017, the Act was signed into law, which reduced the U.S. federal corporate income tax rate from 35% to 21% resulting in a blended U.S. federal income tax rate of 33.7% based on the applicable tax rates before and after January 1, 2018, and the number of days in Fiscal 2017. (2) Prior to 2019, U.S. branch operations in Canada and Puerto Rico were subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items. Effective in 2019, only Puerto Rico continues to be a branch of the U.S. (3) Refer to Note 14 , “ SHARE-BASED COMPENSATION ,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2019, Fiscal 2018, and Fiscal 2017. |
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) February 1, 2020 February 2, 2019 Deferred income tax assets: Operating lease liabilities (1) $ 370,068 $ — Intangibles, foreign step-up in basis (2) 77,565 52,615 Deferred compensation 19,849 22,341 Accrued expenses and reserves 13,571 12,767 Net operating losses (NOL), tax credit and other carryforwards 13,204 8,195 Rent 2,727 27,299 Prepaid expenses 1,246 — Investments in subsidiaries — 1,988 Other 3,613 1,012 Valuation allowances (8,916 ) (5,402 ) Total deferred income tax assets $ 492,927 $ 120,815 Deferred income tax liabilities: Operating lease right-of-use assets (1) $ (319,005 ) $ — U.S. offset to foreign step-up in basis (2) (77,565 ) (52,615 ) Property, equipment and intangibles (17,236 ) (4,769 ) Inventory (3,537 ) (6,937 ) Store supplies (2,843 ) (2,998 ) U.S. offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (2) (1,654 ) — Prepaid expenses — (2,564 ) Undistributed profits of non-U.S. subsidiaries (587 ) — Other (488 ) (660 ) Total deferred income tax liabilities $ (422,915 ) $ (70,543 ) Net deferred income tax assets (3) $ 70,012 $ 50,272 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | The amount of uncertain tax positions as of February 1, 2020 , February 2, 2019 and February 3, 2018 , which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, excluding accrued interest and penalties, are as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Uncertain tax positions, beginning of the year $ 478 $ 1,113 $ 1,239 Gross addition for tax positions of the current year 131 151 148 Gross addition (reduction) for tax positions of prior years 1,349 (3 ) (1 ) Reductions of tax positions of prior years for: Lapses of applicable statutes of limitations (151 ) (218 ) (157 ) Settlements during the period (13 ) (16 ) (116 ) Changes in judgment / excess reserve — (549 ) — Uncertain tax positions, end of year $ 1,794 $ 478 $ 1,113 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | orrowings as of February 1, 2020 and February 2, 2019 are as follows: (in thousands) February 1, 2020 February 2, 2019 Long-term portion of borrowings, gross at carrying amount $ 233,250 $ 253,250 Unamortized discount (355 ) (845 ) Unamortized fees (932 ) (1,966 ) Long-term portion of borrowings, net 231,963 250,439 Less: short-term portion of borrowings, net — — Long-term portion of borrowings, net $ 231,963 $ 250,439 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities consisted of: (in thousands) February 1, 2020 February 2, 2019 Deferred income tax liabilities (1) $ 74,903 $ 58,760 Accrued straight-line rent (2) — 71,341 Other (3) 103,633 105,044 Other liabilities $ 178,536 $ 235,145 (1) Deferred income tax liabilities presented in this table are netted against deferred income tax assets by jurisdiction. For further details on deferred income tax assets and deferred income tax liabilities refer to Note 11 , “ INCOME TAXES .” (2) Upon adoption of the new lease accounting standard in the first quarter of Fiscal 2019, the Company reclassified accrued straight-line rent from other liabilities to operating lease right-of-use assets. (3) Other primarily consists of deferred compensation, asset retirement obligation, the provisional, mandatory one-time deemed repatriation tax on accumulated foreign earnings, net and various other liabilities. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Stock Unit Activity | The following table summarizes activity for restricted stock units for Fiscal 2019 : Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares (1) 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 February 2, 2019 2,020,030 $ 16.76 801,527 $ 13.28 435,970 $ 21.24 Granted 731,886 22.10 234,984 22.94 115,238 36.24 Adjustments for performance achievement — — (90,616 ) 24.06 (72,497 ) 28.20 Vested (772,258 ) 17.65 — — (18,125 ) 28.20 Forfeited (302,827 ) 16.78 (198,839 ) 13.10 (38,802 ) 29.90 Unvested at February 1, 2020 (2) 1,676,831 $ 18.68 747,056 $ 15.11 421,784 $ 23.05 (1) Includes 259,016 unvested restricted stock units as of February 1, 2020 , subject to vesting requirements related to the achievement of certain performance metrics, such as operating income and net income, for the fiscal year immediately preceding the vesting date. Holders of these restricted stock units have the opportunity to earn back one or more installments of the award if the cumulative performance requirements are met in a subsequent year. (2) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Certain unvested shares related to restricted stock units with performance-based vesting conditions can be achieved at up to 200% of their target vesting amount. |
Schedule of Stock Appreciation Rights Activity | The following table summarizes stock appreciation rights activity for Fiscal 2019 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (years) Outstanding at February 2, 2019 1,041,867 $ 37.81 Granted — — Exercised (43,463 ) 22.41 Forfeited or expired (201,679 ) 32.27 Outstanding at February 1, 2020 796,725 $ 40.06 $ — 2.3 Stock appreciation rights exercisable at February 1, 2020 796,725 $ 40.06 $ — 2.3 Stock appreciation rights expected to become exercisable in the future as of February 1, 2020 — $ — $ — 0.0 |
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 2019 , Fiscal 2018 and Fiscal 2017 were as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 Grant date market price $ 25.34 $ 23.59 $ 11.43 Fair value $ 36.24 $ 33.69 $ 11.79 Assumptions: Price volatility 57 % 54 % 47 % Expected term (years) 2.9 2.9 2.9 Risk-free interest rate 2.2 % 2.4 % 1.5 % Dividend yield 3.2 % 3.4 % 7.0 % Average volatility of peer companies 40.0 % 37.4 % 35.2 % Average correlation coefficient of peer companies 0.2407 0.2709 0.2664 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Foreign Exchange Forward Contracts | As of February 1, 2020 , the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows: (in thousands) Notional Amount (1) Chinese yuan $ 21,695 Euro $ 11,019 (1) Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020 . As of February 1, 2020 , 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 $ 102,043 British pound $ 44,991 Canadian dollar $ 15,429 Japanese yen $ 9,123 (1) Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020 . |
Schedule of Locations and Amounts of Derivative Gains (Losses) on the Consolidated Statements of Operations and Comprehensive Income | Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 (Loss) gain recognized in other operating income, net $ (298 ) $ 3,722 $ (3,557 ) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Equity [Abstract] | |||
Schedule of Accumulated Other Comprehensive (Loss) Income | For Fiscal 2019 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2019 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 2, 2019 $ (104,887 ) $ 2,435 $ (102,452 ) Other comprehensive (loss) income before reclassifications (5,080 ) 7,495 2,415 Reclassified gain from accumulated other comprehensive loss (1) — (9,160 ) (9,160 ) Tax effect — 311 311 Other comprehensive loss (5,080 ) (1,354 ) (6,434 ) Ending balance at February 1, 2020 $ (109,967 ) $ 1,081 $ (108,886 ) (1) Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. | For Fiscal 2018 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2018 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 3, 2018 $ (84,947 ) $ (10,107 ) $ (95,054 ) Other comprehensive (loss) income before reclassifications (19,956 ) 18,700 (1,256 ) Reclassified gain from accumulated other comprehensive loss (1) — (4,727 ) (4,727 ) Tax effect 16 (1,431 ) (1,415 ) Other comprehensive (loss) income after reclassifications (19,940 ) 12,542 (7,398 ) Ending balance at February 2, 2019 $ (104,887 ) $ 2,435 $ (102,452 ) (1) Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. | r Fiscal 2017 , the activity in accumulated other comprehensive loss was as follows: Fiscal 2017 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at January 28, 2017 $ (126,127 ) $ 4,825 $ (121,302 ) Other comprehensive income (loss) before reclassifications 42,492 (21,810 ) 20,682 Reclassified loss from accumulated other comprehensive loss (1) — 4,303 4,303 Tax effect (1,312 ) 2,575 1,263 Other comprehensive income (loss) after reclassifications 41,180 (14,932 ) 26,248 Ending balance at February 3, 2018 $ (84,947 ) $ (10,107 ) $ (95,054 ) (1) Amount represents loss reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. |
SEGMENT REPORTING Reconciliatio
SEGMENT REPORTING Reconciliation of Long-lived assets to Consolidated (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 Company’s long-lived assets and intellectual property, which primarily relates to trademark assets associated with the Company’s international operations, by geographic area as of February 1, 2020 , February 2, 2019 and February 3, 2018 were as follows: (in thousands) February 1, 2020 February 2, 2019 February 3, 2018 United States $ 1,211,630 $ 505,217 $ 494,132 Europe 462,017 159,266 192,133 Other 246,742 55,480 78,064 Total $ 1,920,389 $ 719,963 $ 764,329 |
SEGMENT REPORTING Reconciliat_2
SEGMENT REPORTING Reconciliation of Revenue from External Customers to Consolidated (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from External Customer [Line Items] | |
Schedule of Net Sales by Brand [Table Text Block] | The Company’s net sales by operating segment for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Hollister $ 2,158,514 $ 2,152,538 $ 2,038,598 Abercrombie 1,464,559 1,437,571 1,454,092 Total $ 3,623,073 $ 3,590,109 $ 3,492,690 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The Company’s net sales by geographic area for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 United States $ 2,410,802 $ 2,321,700 $ 2,208,618 Europe 753,116 780,918 811,664 Other 459,155 487,491 472,408 Total $ 3,623,073 $ 3,590,109 $ 3,492,690 |
FLAGSHIP STORE EXIT CHARGES (Ta
FLAGSHIP STORE EXIT CHARGES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Details of the charges incurred during Fiscal 2019 , Fiscal 2018 and Fiscal 2017 related to this initiative were as follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Single lease cost (1) $ 23,269 $ — $ — Variable lease cost (2) 20,218 — — Operating lease right-of-use asset impairment 3,229 — — Operating lease cost 46,716 — — Lease termination fees (3) — 3,688 1,996 Asset disposals and other store-closure costs (4) (1,687 ) — 345 Employee severance and other employee transition costs 2,228 2,118 52 Total flagship store exit charges $ 47,257 $ 5,806 $ 2,393 (1) Amount represents accelerated amortization associated with the operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. (2) Amount represents the remeasurement of the lease liability to reflect variable lease costs that became fixed upon decision to close flagship stores. (3) Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be incorporated into the above table as a component of operating lease cost. (4) Amounts represent costs incurred in returning the store to its original condition, including updates to previous accruals for asset retirement obligations and costs to remove inventory and store assets. |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for Fiscal 2019 and Fiscal 2018 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 quarterly results. Fiscal Quarter 2019 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 733,972 $ 841,078 $ 863,472 $ 1,184,551 Gross profit (1) $ 444,090 $ 498,633 $ 518,931 $ 689,264 Net (loss) income $ (18,286 ) $ (29,524 ) $ 7,570 $ 85,200 Net (loss) income attributable to A&F (2) $ (19,155 ) $ (31,142 ) $ 6,523 $ 83,132 Net (loss) income per basic share attributable to A&F (3) $ (0.29 ) $ (0.48 ) $ 0.10 $ 1.32 Net (loss) income per diluted share attributable to A&F (3) $ (0.29 ) $ (0.48 ) $ 0.10 $ 1.29 Fiscal Quarter 2018 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 730,899 $ 842,414 $ 861,194 $ 1,155,602 Gross profit (1) $ 442,345 $ 506,895 $ 527,819 $ 682,857 Net (loss) income $ (41,508 ) $ (2,824 ) $ 24,776 $ 98,364 Net (loss) income attributable to A&F (4) $ (42,461 ) $ (3,853 ) $ 23,919 $ 96,936 Net (loss) income per basic share attributable to A&F (3) $ (0.62 ) $ (0.06 ) $ 0.35 $ 1.47 Net (loss) income per diluted share attributable to A&F (3) $ (0.62 ) $ (0.06 ) $ 0.36 $ 1.42 (1) Gross profit is derived from cost of sales, exclusive of depreciation and amortization. (2) Net income (loss) attributable to A&F for Fiscal 2019 included certain items related to asset impairment and flagship store exit charges. These items adversely impacted net income (loss) attributable to A&F by $32.7 million , $8.0 million and $0.8 million for the second, third and fourth quarters of Fiscal 2019, respectively. (3) Net income (loss) per 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 full year. (4) Net income (loss) attributable to A&F for Fiscal 2018 included certain items related to asset impairment, legal charges and discrete tax items related to the Act. These items adversely impacted net income (loss) attributable to A&F by $4.1 million and $8.0 million for the first and second quarters of Fiscal 2018, respectively, and benefited net income (loss) attributable to A&F by $1.5 million and $5.3 million for the third and fourth quarters of Fiscal 2018, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 01, 2020USD ($)voting_right / shares$ / sharesshares | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($)$ / sharesshares | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($)voting_right / shares$ / sharesshares | Feb. 02, 2019USD ($)$ / sharesshares | Feb. 03, 2018USD ($)shares | Jan. 28, 2017USD ($) | Feb. 03, 2019USD ($) | ||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash | $ 6,631 | $ 7,196 | $ 6,631 | $ 7,196 | ||||||||||
Net sales | $ 1,184,551 | $ 863,472 | $ 841,078 | $ 733,972 | $ 1,155,602 | $ 861,194 | $ 842,414 | $ 730,899 | $ 3,623,073 | $ 3,590,109 | $ 3,492,690 | |||
Common Stock, Shares, Issued | shares | 103,300,000 | 103,300,000 | 103,300,000 | 103,300,000 | ||||||||||
Revenue associated with gift card redemptions and gift card breakage | $ 70,164 | $ 62,865 | ||||||||||||
Cash | $ 612,595 | $ 633,137 | 612,595 | 633,137 | ||||||||||
Money Market Funds, at Carrying Value | 225 | 55,558 | 225 | 55,558 | ||||||||||
Restricted Investments, Noncurrent | 109,048 | 105,877 | 109,048 | 105,877 | ||||||||||
Time Deposits | 58,447 | 34,440 | 58,447 | 34,440 | ||||||||||
Interest Expense | $ 19,908 | 22,788 | 22,973 | |||||||||||
Maturity Period Of Cash Equivalents | 3 months | |||||||||||||
Stores and distribution expense | ||||||||||||||
Shipping and handling costs | $ 224,604 | 201,614 | 189,349 | |||||||||||
Other operating income, net | ||||||||||||||
Foreign currency transaction gain (loss), before tax | 348 | 5,267 | $ 6,957 | |||||||||||
Advertising costs | ||||||||||||||
Advertising expense | $ 134,058 | 136,553 | 116,471 | |||||||||||
Financing Interest Expense | $ 5,500 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment award Target Percentage of Equity Awards Earned | 100.00% | |||||||||||||
Operating Lease Commitments Under Non-Cancelable Leases: | ||||||||||||||
Fiscal 2019 | 367,622 | 367,622 | ||||||||||||
Fiscal 2020 | 304,270 | 304,270 | ||||||||||||
Fiscal 2021 | 205,542 | 205,542 | ||||||||||||
Fiscal 2022 | 159,617 | 159,617 | ||||||||||||
Fiscal 2023 | 128,626 | 128,626 | ||||||||||||
Thereafter | 310,003 | $ 310,003 | ||||||||||||
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 | (38,872,000) | (35,950,000) | (34,909,000) | |||||||||||
Weighted-Average - basic shares (in shares) | shares | 64,428,000 | 67,350,000 | 68,391,000 | |||||||||||
Dilutive effect of share-based compensation awards (in shares) | shares | 1,350,000 | 1,787,000 | 1,012,000 | |||||||||||
Weighted-Average - diluted shares (in shares) | shares | 65,778,000 | 69,137,000 | 69,403,000 | |||||||||||
Anti-Dilutive shares (in shares) | shares | [1] | 1,462,000 | 1,838,000 | 5,379,000 | ||||||||||
Cash and Cash Equivalents, at Carrying Value | 671,267 | 723,135 | $ 671,267 | $ 723,135 | $ 675,558 | $ 723,135 | ||||||||
Restricted Cash and Cash Equivalents | 20,997 | 22,694 | 20,997 | 22,694 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 692,264 | 745,829 | 692,264 | 745,829 | 697,955 | $ 567,632 | ||||||||
Interest Income, Other | (12,171) | (11,789) | (6,084) | |||||||||||
Interest Income (Expense), Net | (7,737) | (10,999) | (16,889) | |||||||||||
Gift card liability | 28,844 | 26,062 | 28,844 | 26,062 | ||||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | 6,944 | |||||||||||||
Restricted Cash and Cash Equivalents, Noncurrent | 18,696 | 22,694 | 18,696 | 22,694 | 22,397 | |||||||||
Restricted Cash and Cash Equivalents, Current | $ 2,301 | $ 0 | $ 2,301 | $ 0 | $ 0 | |||||||||
Common Class A | ||||||||||||||
Stockholders' equity | ||||||||||||||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Common stock, shares outstanding | shares | 62,786,000 | 66,227,000 | 62,786,000 | 66,227,000 | ||||||||||
Common stock, voting rights per share | voting_right / shares | 1 | 1 | ||||||||||||
Common Class B [Member] | ||||||||||||||
Stockholders' equity | ||||||||||||||
Common stock, shares authorized | shares | 106,400,000 | 106,400,000 | 106,400,000 | 106,400,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Common stock, shares outstanding | shares | 0 | 0 | ||||||||||||
Common stock, voting rights per share | voting_right / shares | 3 | 3 | ||||||||||||
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 | |||||||||||||
Fair Value, Recurring [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash Equivalents | [2] | $ 14,366 | $ 15,498 | $ 14,366 | $ 15,498 | |||||||||
Restricted Investments, Noncurrent | [3] | 109,049 | 105,882 | 109,049 | 105,882 | |||||||||
Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | Fair Value, Recurring [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash Equivalents | 4,601 | 4,588 | 4,601 | 4,588 | ||||||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Investments, Noncurrent | [3] | 1 | 1 | |||||||||||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | Fair Value, Recurring [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash Equivalents | 6,564 | 6,550 | 6,564 | 6,550 | ||||||||||
Fair Value, Inputs, Level 1 [Member] | US Treasury Bill Securities [Member] | Fair Value, Recurring [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Restricted Cash Equivalents | $ 3,201 | $ 4,360 | $ 3,201 | $ 4,360 | ||||||||||
[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. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can achieve up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion. | |||||||||||||
[2] | (4) Level 1 assets consist of investments in U.S. treasury bills and money market funds. Level 2 assets consist of time deposits. | |||||||||||||
[3] | (3) Level 1 assets consist of investments in money market funds. Level 2 assets consist of trust-owned life insurance policies. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Impact of Adoption of New Lease Accounting Standards (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cash and Cash Equivalents, at Carrying Value | $ 671,267 | $ 723,135 | $ 723,135 | $ 675,558 | |||
Receivables, Net, Current | 80,251 | 73,112 | 73,112 | ||||
Inventory, Net | 434,326 | [1] | 437,879 | 437,879 | [1] | ||
Other Assets, Current | 78,905 | 70,514 | 101,824 | ||||
Total current assets | 1,264,749 | 1,304,640 | 1,335,950 | ||||
Property, Plant and Equipment, Net | 665,290 | 648,231 | 694,855 | ||||
Operating Lease, Right-of-Use Asset | 1,230,954 | 1,234,515 | 0 | ||||
Other Assets, Noncurrent | 388,672 | 370,341 | 354,788 | ||||
Total assets | 3,549,665 | 3,557,727 | 2,385,593 | ||||
Accounts Payable, Current | 219,919 | 226,878 | 226,878 | ||||
Accrued Liabilities, Current | 302,214 | 280,071 | 293,579 | ||||
Operating Lease, Liability, Current | 282,829 | 280,108 | 0 | ||||
Accrued Income Taxes, Current | 10,392 | 18,902 | 18,902 | ||||
Deferred Rent Credit, Current | 0 | 19,558 | |||||
Liabilities, Current | 815,354 | 805,959 | 558,917 | ||||
Operating Lease, Liability, Noncurrent | 1,252,634 | 1,193,946 | 0 | ||||
Long-term portion of borrowings, net | 231,963 | 250,439 | 250,439 | ||||
Long-term portion of deferred lease credits | 0 | 0 | 76,134 | ||||
Leasehold financing obligations | 0 | 0 | 46,337 | ||||
Other Liabilities, Noncurrent | 178,536 | 163,927 | 235,145 | ||||
Liabilities, Noncurrent | 1,663,133 | 1,608,312 | 608,055 | ||||
Common Stock, Value, Issued | 1,033 | 1,033 | 1,033 | ||||
Additional Paid in Capital, Common Stock | 404,983 | 405,379 | 405,379 | ||||
Retained Earnings | 2,313,745 | 2,343,379 | 2,418,544 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (108,886) | (102,452) | (102,452) | (95,054) | $ (121,302) | ||
Treasury Stock, Value | 1,552,065 | 1,513,604 | 1,513,604 | ||||
Stockholders' Equity Attributable to Parent | 1,058,810 | 1,133,735 | 1,208,900 | $ 1,252,471 | $ 1,252,039 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 12,368 | 9,721 | 9,721 | ||||
Total stockholders’ equity | 1,071,178 | 1,143,456 | 1,218,621 | ||||
Total liabilities and stockholders' equity | $ 3,549,665 | 3,557,727 | $ 2,385,593 | ||||
Accounting Standards Update 2016-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cash and Cash Equivalents, at Carrying Value | 0 | ||||||
Receivables, Net, Current | 0 | ||||||
Inventory, Net | 0 | ||||||
Other Assets, Current | (31,310) | ||||||
Total current assets | (31,310) | ||||||
Property, Plant and Equipment, Net | (46,624) | ||||||
Operating Lease, Right-of-Use Asset | 1,234,515 | ||||||
Other Assets, Noncurrent | 15,553 | ||||||
Total assets | 1,172,134 | ||||||
Accounts Payable, Current | 0 | ||||||
Accrued Liabilities, Current | (13,508) | ||||||
Operating Lease, Liability, Current | 280,108 | ||||||
Accrued Income Taxes, Current | 0 | ||||||
Deferred Rent Credit, Current | (19,558) | ||||||
Liabilities, Current | 247,042 | ||||||
Operating Lease, Liability, Noncurrent | 1,193,946 | ||||||
Long-term portion of borrowings, net | 0 | ||||||
Long-term portion of deferred lease credits | (76,134) | ||||||
Leasehold financing obligations | (46,337) | ||||||
Other Liabilities, Noncurrent | (71,218) | ||||||
Liabilities, Noncurrent | 1,000,257 | ||||||
Common Stock, Value, Issued | 0 | ||||||
Additional Paid in Capital, Common Stock | 0 | ||||||
Retained Earnings | (75,165) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | ||||||
Treasury Stock, Value | 0 | ||||||
Stockholders' Equity Attributable to Parent | (75,165) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | ||||||
Total stockholders’ equity | (75,165) | ||||||
Total liabilities and stockholders' equity | $ 1,172,134 | ||||||
[1] | Includes $92.3 million and $89.3 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company distribution center, as of February 1, 2020 and February 2, 2019 , respectively. |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Revenue Recognition [Abstract] | ||
Gift card liability | $ 28,844 | $ 26,062 |
Loyalty program liability | 23,051 | 19,904 |
Revenue associated with gift card redemptions and gift card breakage | 70,164 | 62,865 |
Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs | $ 35,701 | $ 36,348 |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets and Liabilities by Fair Value by Hierarchy) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | |
ASSETS: | |||
Restricted Investments, Noncurrent | $ 109,048 | $ 105,877 | |
Rabbi Trust assets (3) | 109,049 | 105,882 | |
Time Deposits | 58,447 | 34,440 | |
Fair Value, Recurring [Member] | |||
ASSETS: | |||
Cash Equivalents, at Carrying Value | [1] | 58,672 | 89,998 |
Derivative financial instruments | [2] | 1,969 | 2,162 |
Restricted Investments, Noncurrent | [3] | 109,049 | 105,882 |
Restricted Cash Equivalents | [4] | 14,366 | 15,498 |
Total assets measured at fair value | 184,056 | 213,540 | |
LIABILITIES: | |||
Derivative instruments (2) | [2] | 1,460 | 332 |
Total liabilities measured at fair value | 1,460 | 332 | |
Fair Value, Recurring [Member] | Level 1 [Member] | |||
ASSETS: | |||
Derivative financial instruments | [2] | 0 | 0 |
Restricted Investments, Noncurrent | [3] | 1 | |
Rabbi Trust assets (3) | [3] | 5 | |
Total assets measured at fair value | 9,991 | 66,473 | |
LIABILITIES: | |||
Derivative instruments (2) | [2] | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Level 2 [Member] | |||
ASSETS: | |||
Derivative financial instruments | [2] | 1,969 | 2,162 |
Total assets measured at fair value | 174,065 | 147,067 | |
LIABILITIES: | |||
Derivative instruments (2) | [2] | 1,460 | 332 |
Total liabilities measured at fair value | 1,460 | 332 | |
Fair Value, Recurring [Member] | Level 3 [Member] | |||
ASSETS: | |||
Derivative financial instruments | [2] | 0 | 0 |
Restricted Investments, Noncurrent | [3] | 0 | |
Rabbi Trust assets (3) | [3] | 0 | |
Money market funds | [1],[4] | 0 | 0 |
Total assets measured at fair value | 0 | 0 | |
LIABILITIES: | |||
Derivative instruments (2) | [2] | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 | |
Bank Time Deposits [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | |||
ASSETS: | |||
Restricted Cash Equivalents | 4,601 | 4,588 | |
Trust Owned Life Insurance Policies At Cash Surrender Value [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | |||
ASSETS: | |||
Restricted Investments, Noncurrent | [3] | 105,877 | |
Time Deposits | [1] | 58,447 | 34,440 |
Money Market Funds and U.S. treasury bills [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | |||
ASSETS: | |||
Restricted Cash Equivalents | [4] | 9,765 | 10,910 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | |||
ASSETS: | |||
Cash Equivalents, at Carrying Value | [1] | 225 | 55,558 |
Restricted Cash Equivalents | $ 6,564 | $ 6,550 | |
[1] | (1) Level 1 assets consist of investments in money market funds. Level 2 assets consist of time deposits. | ||
[2] | (2) Level 2 assets and liabilities consist primarily of foreign currency exchange forward contracts. | ||
[3] | (3) Level 1 assets consist of investments in money market funds. Level 2 assets consist of trust-owned life insurance policies. | ||
[4] | (4) Level 1 assets consist of investments in U.S. treasury bills and money market funds. Level 2 assets consist of time deposits. |
FAIR VALUE (Textual) (Details)
FAIR VALUE (Textual) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross borrowings outstanding, carrying amount | $ 233,250 | $ 253,250 |
Gross borrowings outstanding, fair value | $ 233,979 | $ 252,933 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | ||
Inventory [Line Items] | |||||
Inventories at original cost | $ 456,335 | $ 458,860 | |||
Less: Lower of cost and net realizable value adjustment | (14,925) | (13,951) | |||
Less: Shrink estimate | (7,084) | (7,030) | |||
Inventories (1) | 434,326 | [1] | $ 437,879 | 437,879 | [1] |
Inventory in Transit | $ 92,300 | $ 89,300 | |||
[1] | Includes $92.3 million and $89.3 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company distribution center, as of February 1, 2020 and February 2, 2019 , respectively. |
INVENTORIES Sourcing concentrat
INVENTORIES Sourcing concentration risk (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Concentration Risk [Line Items] | |||
Percentage of Inventory Imported to U.S. from China | 15.00% | 25.00% | 28.00% |
CHINA | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Geographic | 22.00% | 36.00% | 42.00% |
Other Locations [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Geographic | 42.00% | 35.00% | 34.00% |
Vietnam [Domain] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Geographic | 36.00% | 29.00% | 24.00% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 |
Property and equipment, net | |||
Land | $ 28,599 | $ 36,875 | |
Buildings | 230,281 | 285,014 | |
Furniture, fixtures and equipment | 674,885 | 691,914 | |
Information technology | 609,917 | 557,607 | |
Leasehold improvements | 1,138,372 | 1,229,494 | |
Construction in progress | 60,913 | 26,319 | |
Other | 2,000 | 2,027 | |
Total | 2,744,967 | 2,829,250 | |
Less: Accumulated depreciation and amortization | (2,079,677) | (2,134,395) | |
Property and equipment, net | $ 665,290 | $ 648,231 | 694,855 |
Construction Project Assets [Member] | |||
Property and equipment, net | |||
Total | $ 34,700 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Nov. 02, 2019 | Feb. 03, 2019 | |||
Leases [Abstract] | |||||||
Lease Termination Fees | $ 4,000 | $ 2,000 | |||||
Fixed minimum (1) | [1] | 365,229 | 373,457 | ||||
Deferred lease credits | 450,295 | ||||||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | ||||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 357,646 | ||||||
LesseeOperatingLeaseLeasesNotYetCommencedLiability | $ 3,100 | ||||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 367,622 | ||||||
Single Lease Cost from Flagship Store Exits | [2] | 23,269 | 0 | 0 | |||
Operating Lease, Cost | [3] | 427,982 | |||||
Variable Lease, Cost | [4] | 143,472 | |||||
Other Asset Impairment Charges | [6] | 15,812 | [5] | 0 | 0 | ||
Lease, Cost | 587,266 | ||||||
Variable Lease Cost from Flagship Store Exits | [7] | 20,218 | 0 | 0 | |||
Operating lease right-of-use asset impairment from Flagship Store Exits | 3,229 | 0 | 0 | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | 304,270 | ||||||
Fiscal 2021 | 205,542 | ||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 159,617 | ||||||
Operating Leases, Future Minimum Payments, Due in Five Years | 128,626 | ||||||
Operating Leases, Future Minimum Payments, Due Thereafter | 310,003 | ||||||
Operating Leases, Future Minimum Payments Due | 1,475,680 | ||||||
Fiscal 2021 | 325,272 | ||||||
Fiscal 2022 | 276,796 | ||||||
Fiscal 2023 | 232,984 | ||||||
Fiscal 2024 | 166,341 | ||||||
Fiscal 2025 and thereafter | 460,955 | ||||||
Total undiscounted operating lease payments | 1,819,994 | ||||||
Less: Imputed interest | (284,531) | ||||||
Operating Lease, Liability | $ 1,535,463 | ||||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% | ||||||
Amortized Deferred Lease Credits Accumulated | (354,603) | ||||||
Deferred Lease Credits Net | 95,692 | ||||||
Less: short-term portion of deferred lease credits | $ 0 | (19,558) | |||||
Long-term portion of deferred lease credits | 0 | 76,134 | $ 0 | ||||
Contingent | 18,189 | 14,752 | |||||
Deferred lease credits amortization | $ 0 | (21,320) | (22,149) | ||||
Total store rent expense | 362,098 | 366,060 | |||||
Buildings, equipment and other | 8,800 | 9,752 | |||||
Total rent expense | $ 370,898 | $ 375,812 | |||||
[1] | Includes lease termination fees of $4.0 million and $2.0 million for Fiscal 2018 and Fiscal 2017 , respectively. Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be a component of operating lease cost. | ||||||
[2] | Amount represents accelerated amortization associated with the operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. | ||||||
[3] | Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities. Includes $23.3 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” | ||||||
[4] | Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. Includes $20.2 million of charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” | ||||||
[5] | Includes $3.2 million of asset charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” | ||||||
[6] | Includes $3.2 million of operating lease right-of-use asset impairment included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019 . Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” | ||||||
[7] | Amount represents the remeasurement of the lease liability to reflect variable lease costs that became fixed upon decision to close flagship stores. |
ASSET IMPAIRMENT (Details)
ASSET IMPAIRMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Asset Impairment [Abstract] | |||||
Other Asset Impairment Charges | [2] | $ 15,812 | [1] | $ 0 | $ 0 |
Tangible Asset Impairment Charges | 6,552 | 11,580 | 14,391 | ||
Asset Impairment Charges | $ 22,364 | $ 11,580 | $ 14,391 | ||
[1] | Includes $3.2 million of asset charges included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019. Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” | ||||
[2] | Includes $3.2 million of operating lease right-of-use asset impairment included in flagship store exit charges on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2019 . Refer to Note 19 , “ FLAGSHIP STORE EXIT CHARGES .” |
RABBI TRUST ASSETS (Schedule o
RABBI TRUST ASSETS (Schedule of Investments) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Restricted Investments, Noncurrent | $ 109,048 | $ 105,877 |
Rabbi Trust assets (3) | $ 109,049 | $ 105,882 |
RABBI TRUST ASSETS (Textual) (
RABBI TRUST ASSETS (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains resulting from change in cash surrender value of insurance policies | $ 3,172 | $ 3,084 | $ 3,130 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 |
Other Assets, Noncurrent Disclosure [Abstract] | |||
Rabbi Trust assets (3) | $ 109,049 | $ 105,882 | |
Other assets | $ 388,672 | $ 370,341 | $ 354,788 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | |
Payables and Accruals [Abstract] | ||||
Accrued payroll and related costs | [1] | $ 58,588 | $ 65,156 | |
Accrued taxes | 38,632 | 38,490 | ||
Other | [2] | 204,994 | 189,933 | |
Accrued expenses | $ 302,214 | $ 280,071 | $ 293,579 | |
[1] | Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll-related costs. | |||
[2] | Other includes the Company’s gift card and loyalty program liabilities, and expenses incurred but not yet paid primarily related to outside services associated with store and home office operations and construction in progress. Refer to Note 3 , “ REVENUE RECOGNITION .” |
INCOME TAXES (Textual) (Detail
INCOME TAXES (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Income Tax Disclosure [Abstract] | |||||
Deferred Tax Liabilities Accumulated Other Comprehensive Income | $ 300 | ||||
Unremitted earnings of subsidiaries operating outside of the U.S. | $ 587 | $ 0 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | [1] | 21.00% | 21.00% | 33.70% | |
Uncertain tax positions | $ 1,794 | $ 478 | $ 1,113 | $ 1,239 | |
State and foreign returns subject to examination, maximum (in years) | 5 years | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 385,800 | ||||
Effective Income Tax Rate Reconciliation, Percent | 27.90% | 32.30% | 80.90% | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 5,600 | $ 4,300 | $ 3,400 | ||
Foreign Tax Authority [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 9,500 | ||||
State and Local Jurisdiction [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 1,400 | ||||
SWITZERLAND | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income (Loss) from Subsidiaries, Net of Tax | $ 24,900 | $ 31,600 | |||
Effective Income Tax Rate Reconciliation, Percent | 12.90% | 1.20% | |||
HONG KONG | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income (Loss) from Subsidiaries, Net of Tax | $ 7,400 | ||||
Effective Income Tax Rate Reconciliation, Percent | 3.10% | ||||
JAPAN | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income (Loss) from Subsidiaries, Net of Tax | $ 12,000 | ||||
Effective Income Tax Rate Reconciliation, Percent | 35.10% | ||||
[1] | Refer to Note 14 , “ SHARE-BASED COMPENSATION ,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2019, Fiscal 2018, and Fiscal 2017. |
INCOME TAXES (Earnings from Co
INCOME TAXES (Earnings from Continuing Operations before taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
Domestic (1) | [1] | $ 17,590 | $ 53,858 | $ (12,326) |
Foreign | 44,741 | 62,509 | 67,487 | |
Income before income taxes | $ 62,331 | $ 116,367 | $ 55,161 | |
[1] | Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return. |
INCOME TAXES (Provisions for I
INCOME TAXES (Provisions for Income Taxes from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current: | |||
Federal | $ (2,193) | $ 7,460 | $ (218) |
State | 1,893 | 3,645 | 1,897 |
Foreign | 8,521 | 20,508 | 5,472 |
Total current income tax | 8,221 | 31,613 | 7,151 |
Deferred: | |||
Federal (1) | 29,012 | 5,319 | 23,620 |
State | (107) | 1,183 | 1,457 |
Foreign (1) | (19,755) | (556) | 12,408 |
Total deferred income tax | 9,150 | 5,946 | 37,485 |
Income tax expense | $ 17,371 | $ 37,559 | $ 44,636 |
INCOME TAXES (Reconciliation o
INCOME TAXES (Reconciliation of Federal Income Tax Rate) (Details) | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal corporate income tax rate | [1] | 21.00% | 21.00% | 33.70% |
Write-off of stock basis in subsidiary | 1.90% | 3.60% | 3.50% | |
Effective Income Tax Reconciliation, Audit and other adjustments to prior years’ accruals, net | 0.80% | (0.10%) | 0.00% | |
Effective Income Tax Rate Reconciliation, Permanent items | 0.30% | 0.20% | 3.50% | |
Effective Income Tax Rate Reconciliation, Swiss Tax Reform | (4.60%) | 0.00% | 0.00% | |
Internal Revenue Code Section 162(m) | 5.50% | (0.90%) | (23.70%) | |
Effective Income Tax Rate Reconciliation, Write-off of stock basis in subsidiary | 3.20% | 0.00% | 0.00% | |
Effective Income tax rate reconciliation, Internal revenue code 162m | 2.20% | 1.00% | 0.00% | |
State income tax, net of U.S. federal income tax effect | [2] | (1.40%) | 5.10% | 17.30% |
Permanent items | 8.20% | 0.70% | 1.00% | |
Credit for increasing research activities | (0.90%) | (0.10%) | (0.30%) | |
Credit items | (0.80%) | (0.60%) | (4.20%) | |
Net change in valuation allowances | 0.00% | (3.00%) | 36.10% | |
Tax deficit recognized on share-based compensation expense (3) | (0.90%) | 8.30% | 19.20% | |
Credit for increasing research activities | (3.60%) | (1.70%) | (2.30%) | |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | (1.90%) | (0.80%) | (2.10%) | |
Trust-owned life insurance policies (at cash surrender value) | (1.10%) | (0.60%) | (1.90%) | |
Other items, net | 0.00% | 0.20% | 1.10% | |
Total | 27.90% | 32.30% | 80.90% | |
[1] | Refer to Note 14 , “ SHARE-BASED COMPENSATION ,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2019, Fiscal 2018, and Fiscal 2017. | |||
[2] | Prior to 2019, U.S. branch operations in Canada and Puerto Rico were subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items. Effective in 2019, only Puerto Rico continues to be a branch of the U.S. |
INCOME TAXES (Deferred Income
INCOME TAXES (Deferred Income Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Income Tax Disclosure [Abstract] | |||
Impact of swiss tax reform | $ 24,900 | ||
DeferredTaxAssetsOperatingLeaseLiabilities | [1] | 370,068 | $ 0 |
Deferred tax asset, intangibles foreign step-up in basis | [2] | 77,565 | 52,615 |
Deferred income tax assets: | |||
Deferred compensation | 19,849 | 22,341 | |
Prepaid expenses | 13,571 | 12,767 | |
Rent | 2,727 | 27,299 | |
DeferredTaxAssetsPrepaidExpenses | 1,246 | 0 | |
Net operating losses (NOL), tax credit and other carryforwards | 13,204 | 8,195 | |
Investments in subsidiaries | 0 | 1,988 | |
Other | 3,613 | 1,012 | |
Valuation allowances | (8,916) | (5,402) | |
Total deferred income tax assets | 492,927 | 120,815 | |
Deferred Tax Liabilities, Leasing Arrangements | (319,005) | 0 | |
Deferred Tax Liability, U.S. offset to foreign step-up in basis | [2] | (77,565) | (52,615) |
Deferred income tax liabilities: | |||
Inventory | (17,236) | (4,769) | |
Property, equipment and intangibles | (3,537) | (6,937) | |
Store supplies | (2,843) | (2,998) | |
DeferredTaxLiability, U.S. offset to foreign deferred tax assets, excluding intangibles | (1,654) | 0 | |
Prepaid expenses | 0 | (2,564) | |
Undistributed profits of non-U.S. subsidiaries | (587) | 0 | |
Other | (488) | (660) | |
Total deferred income tax liabilities | (422,915) | (70,543) | |
Net deferred income tax assets (3) | [3] | $ 70,012 | $ 50,272 |
[1] | Refer to Note 2 , “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements ,” for further discussion of the new lease accounting standard’s impact on the consolidated financial statements. | ||
[2] | The deferred tax asset relates to a step-up in basis associated with the intra-entity transfer of intangible assets to Switzerland which are being amortized for Swiss local tax purposes. As this subsidiary’s income is also taxable in the U.S., a corresponding U.S. deferred tax liability was recognized to reflect lower resulting foreign tax credit due to the amortization of the Swiss step-up in basis. Included in the liability section is the remaining portion of deferred tax liabilities which are properly categorized in the table above. | ||
[3] | This table does not reflect deferred taxes classified within accumulated other comprehensive loss. As of February 1, 2020 , accumulated other comprehensive loss included an insignificant amount of deferred tax liabilities. As of February 2, 2019 , accumulated other comprehensive loss included deferred tax liabilities of $0.3 million . |
INCOME TAXES (Roll Forward of
INCOME TAXES (Roll Forward of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Uncertain tax positions, beginning of the year | $ 478 | $ 1,113 | $ 1,239 |
Gross addition for tax positions of the current year | 131 | 151 | 148 |
Gross addition (reduction) for tax positions of prior years | 1,349 | (3) | (1) |
Reductions of tax positions of prior years for: | |||
Lapses of applicable statutes of limitations | (151) | (218) | (157) |
Settlements during the period | (13) | (16) | (116) |
Changes in judgment / excess reserve | 0 | (549) | 0 |
Uncertain tax positions, end of year | $ 1,794 | $ 478 | $ 1,113 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets, Net operating losses (NOL) and credit carryforwards) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Tax Credit Carryforward [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 385,800 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 587 | $ 0 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 9,500 | |
State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | $ 1,400 |
INCOME TAXES Tax Cuts and Jobs
INCOME TAXES Tax Cuts and Jobs Act of 2017 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act of 2017 Provisional state tax expense related to repatriation | $ 0.8 | ||
Tax Cuts and Jobs Act of 2017 Estimated Discrete Net Income Tax Charges | 16.5 | ||
Tax Cuts And Jobs Act of 2017 Repatriation | 23.7 | ||
Undistributed Earnings of Foreign Subsidiaries | 385.8 | ||
Tax Cuts and Jobs Act of 2017 Benefit From Decrease on Deferred Tax Liability on Unremitted Foreign Earnings | 5.6 | ||
Net tax benefit for adjustments to deferred taxes resulting international tax restructuring in response to the Act | 6 | ||
Tax Cuts and Jobs Act of 2017 Provisional tax expense related to deferred tax remeasurement | $ 3.5 | ||
Effective Income Tax Rate Reconciliation, Percent | 27.90% | 32.30% | 80.90% |
Foreign Earnings Repatriated | $ 250 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | Aug. 07, 2014 | |
Long-Term Borrowings [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 272,000 | |||
Deferred financing fees | $ 5,800 | |||
Borrowings, gross at carrying amount | 233,250 | $ 253,250 | ||
Unamortized fees paid to lenders | $ (3,200) | |||
Short-term portion of borrowings, net of discount and fees | 0 | 0 | ||
Long-term portion of borrowings, net | 231,963 | $ 250,439 | 250,439 | |
Schedule of Future Payments of the Term Loan Facility | ||||
Fiscal 2021 | $ 233,300 | |||
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 | 1.50% | |||
London Interbank Offered Rate (LIBOR) Initial Applicable Margin ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Base Rate Initial Applicable Margin ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
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 | 5.16% | |||
Discount Rate | 1.00% | |||
Borrowings, gross at carrying amount | $ 233,250 | 253,250 | ||
Unamortized discount | (355) | (845) | ||
Unamortized fees paid to lenders | (932) | (1,966) | ||
Borrowings, net | 231,963 | 250,439 | ||
Long-term portion of borrowings, net | 231,963 | 250,439 | ||
ABL Facility [Member] [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Maximum borrowing capacity | $ 400,000 | |||
Maturity date | Oct. 19, 2022 | |||
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 | |||
Amended and Restated Credit Agreement [Member] | ||||
Long-Term Borrowings [Line Items] | ||||
Credit facility, amount outstanding | $ 0 | $ 0 | ||
Base Rate Minimum ABL Facility | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Base Rate Maximum ABL Facility | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.50% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | |
Other Liabilities Disclosure [Abstract] | ||||
Accrued straight-line rent | [1] | $ 0 | $ 71,341 | |
Deferred Tax Liabilities, Other | [2] | 74,903 | 58,760 | |
Other (3) | [3] | 103,633 | 105,044 | |
Other liabilities | $ 178,536 | $ 163,927 | $ 235,145 | |
[1] | Upon adoption of the new lease accounting standard in the first quarter of Fiscal 2019, the Company reclassified accrued straight-line rent from other liabilities to operating lease right-of-use assets. | |||
[2] | Deferred income tax liabilities presented in this table are netted against deferred income tax assets by jurisdiction. For further details on deferred income tax assets and deferred income tax liabilities refer to Note 11 , “ INCOME TAXES .” | |||
[3] | Other primarily consists of deferred compensation, asset retirement obligation, the provisional, mandatory one-time deemed repatriation tax on accumulated foreign earnings, net and various other liabilities. |
SHARE-BASED COMPENSATION (Text
SHARE-BASED COMPENSATION (Textual) (Details) | 12 Months Ended | |||
Feb. 01, 2020USD ($)share_based_compensation_planshares | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Issued, Value, Share-based Payment Arrangement, after Forfeiture | [1] | $ (6,804,000) | $ (6,937,000) | $ (2,114,000) |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | 1,156,000 | 1,270,000 | (3,527,000) | |
Share-based compensation expense | 14,007,000 | 21,755,000 | 22,108,000 | |
Tax benefits related to share-based compensation | $ 2,649,000 | 4,562,000 | 8,012,000 | |
Number of primary share based compensation plans | share_based_compensation_plan | 2 | |||
Number of other share based compensation plans | share_based_compensation_plan | 4 | |||
Share-based Payment Arrangement, Cancellation of Option, Tax Charge | $ (611,000) | (10,908,000) | (7,089,000) | |
Share-based Payment Arrangement, Discrete Income Tax Benefit (Charge) | 545,000 | (9,638,000) | (10,616,000) | |
LTIP Directors 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Market Value Authorized | 300,000 | |||
Non-Executive Chairman [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Market Value Authorized | 500,000 | |||
Non Associate Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Market Value Authorized | $ 2,500,000 | |||
LTIP Associates 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares approved for grant | shares | 1,000,000 | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of award other than options vested during period | $ 626,000 | 1,366,000 | 2,379,000 | |
Service-based Restricted Stock Unit (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of award other than options vested during period | 13,630,000 | 17,100,000 | 19,116,000 | |
Total fair value of restricted stocks | 16,175,000 | 17,167,000 | 16,920,000 | |
Performance-based Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of award other than options vested during period | 0 | 0 | 0 | |
Total fair value of restricted stocks | 5,391,000 | 4,339,000 | 4,774,000 | |
Market-based Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of award other than options vested during period | 511,000 | 137,000 | 0 | |
Total fair value of restricted stocks | $ 4,176,000 | $ 4,784,000 | $ 2,793,000 | |
[1] | (1) Classified within other financing activities on the Consolidated Statements of Cash Flows. |
SHARE-BASED COMPENSATION (SARs
SHARE-BASED COMPENSATION (SARs Assumptions) (Details) | 12 Months Ended |
Feb. 01, 2020$ / shares | |
Stock Appreciation Rights (SARs) [Member] | |
The weighted-average fair value and assumptions (stock appreciation rights) | |
Fair value (in dollars per share) | $ 0 |
SHARE-BASED COMPENSATION (SA_2
SHARE-BASED COMPENSATION (SARS Activity) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding (in shares) | 796,725 | 1,041,867 |
Number of Underlying Shares, Granted (in shares) | 0 | |
Number of Underlying Shares, Exercised (in shares) | (43,463) | |
Number of Underlying Shares, Forfeited or expired (in shares) | (201,679) | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 40.06 | $ 37.81 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 22.41 | |
Weighted-Average Exercise Price, Forfeited or exercised (in dollars per share) | $ 32.27 | |
Aggregate Intrinsic Value, Outstanding | $ 0 | |
Weighted-Average Remaining Contractual Life, Outstanding | 2 years 3 months 18 days | |
Number of Underlying Shares, Stock appreciation rights exercisable (in shares) | 796,725 | |
Weighted-Average Exercise Price, Stock appreciation rights exercisable (in dollars per share) | $ 40.06 | |
Aggregate Intrinsic Value, Stock appreciation rights exercisable | $ 0 | |
Weighted- Average Remaining Contractual Life, Stock appreciation rights exercisable | 2 years 3 months 18 days | |
Number of Underlying Shares, Stock appreciation rights expected to become exercisable (in shares) | 0 | |
Weighted-Average Exercise Price, Stock appreciation rights expected to become exercisable (in dollars per share) | $ 0 | |
Aggregate Intrinsic Value, Stock appreciation rights expected to become exercisable | $ 0 | |
Weighted-Average Remaining Contractual Life, Stock appreciation rights expected to become exercisable | 0 years |
SHARE-BASED COMPENSATION (Rest
SHARE-BASED COMPENSATION (Restricted Stock Unit Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Target percentage of equity awards earned | 100.00% | |||
Service-based restricted stock units [Member] | ||||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 19,869 | $ 2,857 | $ 3,964 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days | 1 year | 1 year | |
Service-based restricted stock units with $1.00 net income requirement [Member] | ||||
Number of Underlying Shares Outstanding [Roll Forward] | ||||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 259,016 | |||
Market-based Restricted Stock Units (RSUs) [Member] | ||||
Number of Underlying Shares Outstanding [Roll Forward] | ||||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 421,784 | 435,970 | ||
Number of Underlying Shares, Granted (in shares) | 115,238 | |||
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | (72,497) | |||
Number of Underlying Shares, Vested (in shares) | (18,125) | |||
Number of Underlying Shares, Forfeited (in shares) | (38,802) | |||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 36.24 | |||
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | 28.20 | |||
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 28.20 | |||
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 29.90 | |||
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $ 23.05 | $ 21.24 | ||
Service-based Restricted Stock Unit (RSUs) [Member] | ||||
Number of Underlying Shares Outstanding [Roll Forward] | ||||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 1,676,831 | 2,020,030 | ||
Number of Underlying Shares, Granted (in shares) | 731,886 | |||
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | 0 | |||
Number of Underlying Shares, Vested (in shares) | (772,258) | |||
Number of Underlying Shares, Forfeited (in shares) | (302,827) | |||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 22.10 | |||
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) | 17.65 | |||
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 16.78 | |||
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $ 18.68 | $ 16.76 | ||
Performance-based Restricted Stock Units (RSUs) [Member] | ||||
Number of Underlying Shares Outstanding [Roll Forward] | ||||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 747,056 | [1] | 801,527 | |
Number of Underlying Shares, Granted (in shares) | 234,984 | |||
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | (90,616) | |||
Number of Underlying Shares, Vested (in shares) | 0 | |||
Number of Underlying Shares, Forfeited (in shares) | (198,839) | |||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 22.94 | |||
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | 24.06 | |||
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 0 | |||
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | 13.10 | |||
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | 15.11 | $ 13.28 | ||
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) | $ 36.24 | $ 33.69 | $ 11.79 | |
[1] | Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Certain unvested shares related to restricted stock units with performance-based vesting conditions can be achieved at up to 200% of their target vesting amount. |
SHARE-BASED COMPENSATION (RSUs
SHARE-BASED COMPENSATION (RSUs Assumptions) (Details) - Market-based Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (in dollars per share) | $ 36.24 | ||
Market Vesting Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date market price (in dollars per share) | 25.34 | $ 23.59 | $ 11.43 |
Fair value (in dollars per share) | $ 36.24 | $ 33.69 | $ 11.79 |
Price volatility | 57.00% | 54.00% | 47.00% |
Expected term (years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Risk-free interest rate | 2.20% | 2.40% | 1.50% |
Dividend yield | 3.20% | 3.40% | 7.00% |
Average volatility of peer companies | 40.00% | 37.40% | 35.20% |
Average correlation coefficient of peer companies | 0.2407 | 0.2709 | 0.2664 |
DERIVATIVE INSTRUMENTS (Outsta
DERIVATIVE INSTRUMENTS (Outstanding Foreign Exchange Forward Contracts) (Details) - Cash Flow Hedging [Member] - Forward Contracts [Member] $ in Thousands | Feb. 01, 2020USD ($) | |
Assets and Liabilities [Member] | China, Yuan Renminbi | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 21,695 | [1] |
Assets and Liabilities [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 11,019 | [1] |
Inter-company Inventory and Accounts Receivables [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 102,043 | [2] |
Inter-company Inventory and Accounts Receivables [Member] | Japan, Yen | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 9,123 | [2] |
Inter-company Inventory and Accounts Receivables [Member] | British Pound [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 44,991 | [2] |
Inter-company Inventory and Accounts Receivables [Member] | Canadian Dollar [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 15,429 | [2] |
[1] | The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Consolidated Balance Sheets as of February 1, 2020 and February 2, 2019 were as follows: (in thousands) Location February 1, 2020 February 2, 2019 Location February 1, 2020 February 2, 2019 Derivatives designated as cash flow hedging instruments Other current assets $ 1,869 $ 2,162 Accrued expenses $ 1,377 $ 15 Derivatives not designated as hedging instruments Other current assets 100 — Accrued expenses 83 317 Total $ 1,969 $ 2,162 $ 1,460 $ 332 Refer to Note 4 , “ FAIR VALUE , ” for further discussion of the determination of the fair value of derivative instruments. Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for Fiscal 2019 , Fiscal 2018 and Fiscal 2017 follows: (in thousands) Fiscal 2019 Fiscal 2018 Fiscal 2017 Gain (loss) recognized in AOCL (1) $ 7,495 $ 18,700 $ (21,810 ) Gain (loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization (2) $ 9,160 $ 4,727 $ (4,303 ) (1) Amount represents the change in fair value of derivative contracts. (2) Amount represents gain (loss) reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization. | |
[2] | Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020 . |
DERIVATIVE INSTRUMENTS (Locati
DERIVATIVE INSTRUMENTS (Location and Amounts of Derivative Fair Values - Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 1,869 | $ 2,162 | ||
Gain/(Loss) | (298) | 3,722 | $ (3,557) | |
Amount of (Loss) Gain Recognized in OCI on Derivative Contracts (Effective Portion) | 7,495 | 18,700 | (21,810) | |
Amount of (Loss) Gain Reclassified from AOCL into Earnings (Effective Portion) | 9,160 | 4,727 | $ (4,303) | |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1,377 | 15 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 100 | 0 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 83 | 317 | ||
Fair Value, Recurring [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Asset | [1] | 1,969 | 2,162 | |
Derivative Liability | [1] | 1,460 | 332 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Asset | [1] | 1,969 | 2,162 | |
Derivative Liability | [1] | $ 1,460 | $ 332 | |
[1] | (2) Level 2 assets and liabilities consist primarily of foreign currency exchange forward contracts. |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | $ (102,452) | $ (95,054) | $ (121,302) | |||
Other comprehensive (loss) income before reclassifications | 2,415 | (1,256) | 20,682 | |||
Reclassified gain from accumulated other comprehensive loss (1) | (9,160) | [1] | (4,727) | [2] | 4,303 | [3] |
Tax effect | 311 | (1,415) | 1,263 | |||
Other comprehensive (loss) income | (6,434) | (7,398) | 26,248 | |||
Ending balance | (108,886) | (102,452) | (95,054) | |||
Derivative Financial Instruments | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | 2,435 | (10,107) | 4,825 | |||
Other comprehensive (loss) income before reclassifications | 7,495 | 18,700 | (21,810) | |||
Reclassified gain from accumulated other comprehensive loss (1) | (9,160) | [1] | (4,727) | [2] | 4,303 | [3] |
Tax effect | 311 | (1,431) | 2,575 | |||
Other comprehensive (loss) income | (1,354) | 12,542 | (14,932) | |||
Ending balance | 1,081 | 2,435 | (10,107) | |||
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | (104,887) | (84,947) | (126,127) | |||
Other comprehensive (loss) income before reclassifications | (5,080) | (19,956) | 42,492 | |||
Reclassified gain from accumulated other comprehensive loss (1) | 0 | [1] | 0 | [2] | 0 | [3] |
Tax effect | 0 | 16 | (1,312) | |||
Other comprehensive (loss) income | (5,080) | (19,940) | 41,180 | |||
Ending balance | $ (109,967) | $ (104,887) | $ (84,947) | |||
[1] | Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. | |||||
[2] | Amount represents gain reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. | |||||
[3] | Amount represents loss reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income. |
SAVINGS AND RETIREMENT PLANS (D
SAVINGS AND RETIREMENT PLANS (Details) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020USD ($)yr | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
SERP Liability | $ 9.5 | $ 9.2 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits, participant age requirement | yr | 21 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 14.8 | $ 15.1 | $ 14.4 |
SEGMENT REPORTING (Segment Inf
SEGMENT REPORTING (Segment Information, by Segment) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,184,551 | $ 863,472 | $ 841,078 | $ 733,972 | $ 1,155,602 | $ 861,194 | $ 842,414 | $ 730,899 | $ 3,623,073 | $ 3,590,109 | $ 3,492,690 |
Number of reportable segments | 1 | ||||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 753,116 | $ 780,918 | $ 811,664 |
SEGMENT REPORTING (Net Sales a
SEGMENT REPORTING (Net Sales and Long-lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Sales | $ 1,184,551 | $ 863,472 | $ 841,078 | $ 733,972 | $ 1,155,602 | $ 861,194 | $ 842,414 | $ 730,899 | $ 3,623,073 | $ 3,590,109 | $ 3,492,690 |
United States | |||||||||||
Net Sales | 2,410,802 | 2,321,700 | 2,208,618 | ||||||||
Europe [Member] | |||||||||||
Net Sales | 753,116 | 780,918 | 811,664 | ||||||||
Other | |||||||||||
Net Sales | $ 459,155 | $ 487,491 | $ 472,408 |
SEGMENT REPORTING (Net Sales b
SEGMENT REPORTING (Net Sales by Brand) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $ 1,184,551 | $ 863,472 | $ 841,078 | $ 733,972 | $ 1,155,602 | $ 861,194 | $ 842,414 | $ 730,899 | $ 3,623,073 | $ 3,590,109 | $ 3,492,690 |
Abercrombie [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 1,464,559 | 1,437,571 | 1,454,092 | ||||||||
Hollister [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $ 2,158,514 | $ 2,152,538 | $ 2,038,598 |
SEGMENT REPORTING Long-lived as
SEGMENT REPORTING Long-lived assets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | $ 1,920,389 | $ 719,963 | $ 764,329 |
United States | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | 1,211,630 | 505,217 | 494,132 |
Europe [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | 462,017 | 159,266 | 192,133 |
Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-Lived Assets | $ 246,742 | $ 55,480 | $ 78,064 |
FLAGSHIP STORE EXIT CHARGES (De
FLAGSHIP STORE EXIT CHARGES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Flagship Store Exit Charges [Abstract] | ||||
Maximum Annual Cash Payments | $ 15,000 | |||
Single Lease Cost from Flagship Store Exits | [1] | 23,269 | $ 0 | $ 0 |
Variable Lease Cost from Flagship Store Exits | [2] | 20,218 | 0 | 0 |
Operating lease right-of-use asset impairment from Flagship Store Exits | 3,229 | 0 | 0 | |
Lease Cost from Flagship Store Exits | 46,716 | 0 | 0 | |
Lease Termination Fees | [3] | 0 | 3,688 | 1,996 |
Property, Plant and Equipment, Disposals | [4] | (1,687) | 0 | 345 |
Severance Costs | 2,228 | 2,118 | 52 | |
Flagship store exit charges | $ 47,257 | $ 5,806 | $ 2,393 | |
[1] | Amount represents accelerated amortization associated with the operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. | |||
[2] | Amount represents the remeasurement of the lease liability to reflect variable lease costs that became fixed upon decision to close flagship stores. | |||
[3] | Under the new lease accounting standard, which the Company adopted on February 3, 2019, similar charges would be incorporated into the above table as a component of operating lease cost. | |||
[4] | Amounts represent costs incurred in returning the store to its original condition, including updates to previous accruals for asset retirement obligations and costs to remove inventory and store assets. |
CONTINGENCIES Contingencies (De
CONTINGENCIES Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation Proposed Settlement, Amount | $ 9.6 | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 25 | |
Proceeds from Legal Settlements | 10.1 | |
Legal Fees | $ (2.6) |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Flagship store exit charges, net of estimated tax effect | $ 32,700 | ||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Net sales | $ 1,184,551 | $ 863,472 | $ 841,078 | $ 733,972 | $ 1,155,602 | $ 861,194 | $ 842,414 | $ 730,899 | 3,623,073 | $ 3,590,109 | $ 3,492,690 | ||||||||
Gross profit | 689,264 | [1] | 518,931 | [1] | 498,633 | [1] | 444,090 | [1] | 682,857 | [1] | 527,819 | [1] | 506,895 | [1] | 442,345 | [1] | 2,150,918 | 2,159,916 | 2,083,842 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 85,200 | 7,570 | (29,524) | (18,286) | 98,364 | 24,776 | (2,824) | (41,508) | $ 44,960 | 78,808 | 10,525 | ||||||||
Net income (loss) attributable to A&F | $ 83,132 | [2] | $ 6,523 | [2] | $ (31,142) | [2] | $ (19,155) | $ 96,936 | [3] | $ 23,919 | [3] | $ (3,853) | [3] | $ (42,461) | [3] | $ 74,541 | $ 7,094 | ||
Net income (loss) per basic share attributable to A&F | $ 1.32 | [4] | $ 0.10 | [4] | $ (0.48) | [4] | $ (0.29) | [4] | $ 1.47 | [4] | $ 0.35 | [4] | $ (0.06) | [4] | $ (0.62) | [4] | $ 0.61 | $ 1.11 | $ 0.10 |
Net income (loss) per diluted share attributable to A&F | $ 1.29 | [4] | $ 0.10 | [4] | $ (0.48) | [4] | $ (0.29) | [4] | $ 1.42 | [4] | $ 0.36 | [4] | $ (0.06) | [4] | $ (0.62) | [4] | $ 0.60 | $ 1.08 | $ 0.10 |
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 | $ (800) | $ (8,000) | $ (5,300) | $ (1,500) | $ (8,000) | $ (4,100) | |||||||||||||
[1] | Gross profit is derived from cost of sales, exclusive of depreciation and amortization. | ||||||||||||||||||
[2] | Net income (loss) attributable to A&F for Fiscal 2019 included certain items related to asset impairment and flagship store exit charges. These items adversely impacted net income (loss) attributable to A&F by $32.7 million , $8.0 million and $0.8 million for the second, third and fourth quarters of Fiscal 2019, respectively. | ||||||||||||||||||
[3] | Net income (loss) attributable to A&F for Fiscal 2018 included certain items related to asset impairment, legal charges and discrete tax items related to the Act. These items adversely impacted net income (loss) attributable to A&F by $4.1 million and $8.0 million for the first and second quarters of Fiscal 2018, respectively, and benefited net income (loss) attributable to A&F by $1.5 million and $5.3 million for the third and fourth quarters of Fiscal 2018, respectively. | ||||||||||||||||||
[4] | Net income (loss) per 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 full year. |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Subsequent Events [Abstract] | |
Line of Credit Facility, Increase (Decrease), Other, Net | $ 210 |
Withdrawal from Rabbi Trust Assets | $ 50 |