Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Mar. 14, 2017 | Jul. 31, 2016 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Jan. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MOV | ||
Entity Registrant Name | MOVADO GROUP INC | ||
Entity Central Index Key | 72,573 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 350,678,000 | ||
Common Stock Class Undefined | |||
Entity Common Stock, Shares Outstanding | 16,307,335 | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 6,644,105 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 552,752 | $ 594,923 | $ 586,980 |
Cost of sales | 257,935 | 277,993 | 276,998 | |
Gross profit | 294,817 | 316,930 | 309,982 | |
Selling, general, and administrative | 240,836 | 246,823 | 238,495 | |
Operating income | [2],[3],[4],[5] | 53,981 | 70,107 | 71,487 |
Other expense (Note 6) | (1,282) | |||
Interest expense | (1,464) | (1,109) | (489) | |
Interest income | 219 | 127 | 166 | |
Income before income taxes | 51,454 | 69,125 | 71,164 | |
Provision for income taxes (Note 7) | 16,315 | 23,360 | 19,264 | |
Net income | 35,139 | 45,765 | 51,900 | |
Less: Net income attributed to noncontrolling interests | 78 | 671 | 124 | |
Net income attributed to Movado Group, Inc. | $ 35,061 | $ 45,094 | $ 51,776 | |
Basic income per share: | ||||
Weighted basic average shares outstanding | 23,070 | 23,525 | 25,276 | |
Net income per share attributed to Movado Group, Inc. | $ 1.52 | $ 1.92 | $ 2.05 | |
Diluted income per share: | ||||
Weighted diluted average shares outstanding | 23,267 | 23,774 | 25,581 | |
Net income per share attributed to Movado Group, Inc. | $ 1.51 | $ 1.90 | $ 2.02 | |
Dividends paid per share | $ 0.52 | $ 0.44 | $ 0.40 | |
[1] | The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | |||
[2] | Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations. | |||
[3] | Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017. | |||
[4] | The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | |||
[5] | The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Comprehensive income, net of taxes: | ||||
Net income including noncontrolling interests | $ 35,139 | $ 45,765 | $ 51,900 | |
Net unrealized gain / (loss) on investments, net of tax (benefit) of $30, $(15) and $18, respectively | 8 | (22) | 29 | |
Net change in effective portion of hedging contracts, net of tax (benefit) of $(10), $10 and $0, respectively | (37) | 50 | ||
Gain on available-for-sale securities, net of tax benefit of $0, $0 and $50, respectively | (81) | |||
Foreign currency translation adjustments | [1] | 8,280 | (30,314) | (5,211) |
Comprehensive income including noncontrolling interests | 43,390 | 15,479 | 46,637 | |
Less: Comprehensive income / (loss) attributed to noncontrolling interests | 54 | 734 | (291) | |
Total comprehensive income attributed to Movado Group, Inc. | $ 43,336 | $ 14,745 | $ 46,928 | |
[1] | The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized gain / (loss) on investments, tax (benefit) | $ 30 | $ (15) | $ 18 |
Net change in effective portion of hedging contracts, tax (benefit) | (10) | 10 | 0 |
Gain on available-for-sale securities, tax benefit | $ 0 | $ 0 | $ 50 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 256,279 | $ 228,188 | |
Trade receivables, net | 66,847 | 71,030 | |
Inventories | 153,167 | 162,465 | |
Other current assets | 28,487 | 27,352 | |
Total current assets | 504,780 | 489,035 | |
Property, plant and equipment, net | 34,173 | 38,553 | |
Deferred and non-current income taxes | 24,837 | 20,323 | |
Other non-current assets | 44,012 | 37,259 | |
Total assets | 607,802 | 585,170 | |
Current liabilities: | |||
Loans payable to bank, current | 5,000 | 5,000 | |
Accounts payable | 27,192 | 27,308 | |
Accrued liabilities | 28,241 | 28,570 | |
Accrued payroll and benefits | 6,820 | 11,047 | |
Income taxes payable | 4,149 | 6,257 | |
Total current liabilities | 71,402 | 78,182 | |
Loans payable to bank | 25,000 | 35,000 | |
Deferred and non-current income taxes payable | 3,322 | 2,640 | |
Other non-current liabilities | 34,085 | 28,201 | |
Total liabilities | 133,809 | 144,023 | |
Commitments and contingencies (Note 9) | |||
Equity: | |||
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued | |||
Capital in excess of par value | 185,354 | 178,118 | |
Retained earnings | 415,919 | 392,788 | |
Accumulated other comprehensive income | 76,780 | 68,505 | |
Treasury Stock, 10,869,321 and 10,664,512 shares, respectively, at cost | (204,398) | (199,195) | |
Total Movado Group, Inc. shareholders' equity | 473,993 | 440,552 | |
Noncontrolling interests | 595 | ||
Total equity | 473,993 | 441,147 | |
Total liabilities and equity | 607,802 | 585,170 | |
Common Stock Class Undefined | |||
Equity: | |||
Common Stock | 272 | 270 | |
Total equity | [1] | 272 | 270 |
Class A Common Stock | |||
Equity: | |||
Common Stock | 66 | 66 | |
Total equity | [2] | $ 66 | $ 66 |
[1] | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | ||
[2] | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jan. 31, 2017 | Jan. 31, 2016 |
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Treasury Stock, shares | 10,869,321 | 10,664,512 |
Common Stock Class Undefined | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 27,176,656 | 26,962,656 |
Common Stock, shares outstanding | 27,176,656 | 26,962,656 |
Class A Common Stock | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 6,644,105 | 6,644,105 |
Common Stock, shares outstanding | 6,644,105 | 6,644,105 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | |||
Net income including noncontrolling interests | $ 35,139 | $ 45,765 | $ 51,900 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,507 | 13,156 | 12,469 |
Write-down of inventories | 2,757 | 3,108 | 2,514 |
Transactional losses / (gains) | 2,041 | (2,388) | 2,493 |
Deferred income taxes | (3,753) | (1,817) | 6,316 |
Gain on available-for-sale securities | (131) | ||
Stock-based compensation | 7,281 | 6,123 | 5,753 |
Excess tax expense / (benefit) from stock-based compensation | 265 | 31 | (1,270) |
Impairment of long-term investment | 1,282 | ||
Operating efficiency initiatives and other items | 3,996 | ||
Loss on disposal of fixed assets | 310 | ||
Changes in assets and liabilities: | |||
Trade receivables | 2,878 | (354) | (9,334) |
Inventories | 7,442 | (3,133) | 4,523 |
Other current assets | 512 | 2,808 | (3,323) |
Accounts payable | (401) | 774 | (5,357) |
Accrued liabilities | 244 | (94) | (1,582) |
Accrued payroll and benefits | (4,227) | 6,035 | (9,443) |
Income taxes payable | (2,479) | (746) | 4,300 |
Other non-current assets | (7,569) | 1,864 | (3,954) |
Other non-current liabilities | 5,499 | (848) | 3,722 |
Net cash provided by operating activities | 58,418 | 74,590 | 59,596 |
Cash flows from investing activities: | |||
Capital expenditures | (5,920) | (8,070) | (11,132) |
Trademarks and other intangibles | (328) | (650) | (118) |
Short-term investment | (152) | ||
Long-term investment | (1,200) | ||
Restricted cash deposits | (1,156) | (435) | |
Proceeds from short-term investment | 33,736 | ||
Proceeds from available-for-sale securities | 307 | ||
Net cash (used in) / provided by investing activities | (7,556) | (9,155) | 21,593 |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 3,000 | 50,000 | |
Repayments of bank borrowings | (13,000) | (10,000) | |
Stock options exercised and other changes | (296) | (25) | 291 |
Excess tax (expense) / benefit from stock-based compensation | (265) | (31) | 1,270 |
Stock repurchase | (3,864) | (48,748) | (26,382) |
Purchase of incremental ownership of joint venture | (1,320) | (4,267) | |
Debt issuance cost | (339) | (936) | |
Distribution of noncontrolling interest earnings | (319) | ||
Dividends paid | (11,930) | (10,312) | (10,104) |
Net cash (used in) financing activities | (27,675) | (23,722) | (36,180) |
Effect of exchange rate changes on cash and cash equivalents | 4,904 | (13,377) | (2,816) |
Net increase in cash and cash equivalents | 28,091 | 28,336 | 42,193 |
Cash and cash equivalents at beginning of year | 228,188 | 199,852 | 157,659 |
Cash and cash equivalents at end of year | $ 256,279 | $ 228,188 | $ 199,852 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock Class Undefined | [1] | Class A Common Stock | [2] | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interests | |
Beginning Balance at Jan. 31, 2014 | $ 465,990 | $ 266 | $ 66 | $ 165,342 | $ 316,334 | $ 103,702 | $ (122,406) | $ 2,686 | |||
Net income | 51,900 | 51,776 | 124 | ||||||||
Dividends | (10,104) | (10,104) | |||||||||
Stock options exercised, net of tax | 1,561 | 2 | 2,967 | (1,408) | |||||||
Distribution of noncontrolling interest earnings | (319) | (319) | |||||||||
Stock repurchase | (26,382) | (26,382) | |||||||||
Supplemental executive retirement plan | 93 | 93 | |||||||||
Stock-based compensation expense | 5,753 | 5,753 | |||||||||
Stock donation | 1,056 | 671 | 385 | ||||||||
Net unrealized gain (loss) on investments, net of tax benefit | 29 | 29 | |||||||||
Gain on available-for-sale securities, net of tax benefit | (81) | (81) | |||||||||
Foreign currency translation adjustments | [3] | (5,211) | (4,796) | (415) | |||||||
Ending Balance at Jan. 31, 2015 | 484,285 | 268 | 66 | 174,826 | 358,006 | 98,854 | (149,811) | 2,076 | |||
Net income | 45,765 | 45,094 | 671 | ||||||||
Dividends | (10,312) | (10,312) | |||||||||
Stock options exercised, net of tax | (56) | 2 | 578 | (636) | |||||||
Joint venture incremental share purchase | (5,828) | (3,613) | (2,215) | ||||||||
Stock repurchase | (48,748) | (48,748) | |||||||||
Supplemental executive retirement plan | 204 | 204 | |||||||||
Stock-based compensation expense | 6,123 | 6,123 | |||||||||
Net unrealized gain (loss) on investments, net of tax benefit | (22) | (22) | |||||||||
Net change in effective portion of hedging contracts | 50 | 50 | |||||||||
Foreign currency translation adjustments | [3] | (30,314) | (30,377) | 63 | |||||||
Ending Balance at Jan. 31, 2016 | 441,147 | 270 | 66 | 178,118 | 392,788 | 68,505 | (199,195) | 595 | |||
Net income | 35,139 | 35,061 | 78 | ||||||||
Dividends | (11,930) | (11,930) | |||||||||
Stock options exercised, net of tax | (561) | 2 | 776 | (1,339) | |||||||
Joint venture incremental share purchase | (1,660) | (1,011) | (649) | ||||||||
Stock repurchase | (3,864) | (3,864) | |||||||||
Supplemental executive retirement plan | 190 | 190 | |||||||||
Stock-based compensation expense | 7,281 | 7,281 | |||||||||
Net unrealized gain (loss) on investments, net of tax benefit | 8 | 8 | |||||||||
Net change in effective portion of hedging contracts | (37) | (37) | |||||||||
Foreign currency translation adjustments | [3] | 8,280 | 8,304 | $ (24) | |||||||
Ending Balance at Jan. 31, 2017 | $ 473,993 | $ 272 | $ 66 | $ 185,354 | $ 415,919 | $ 76,780 | $ (204,398) | ||||
[1] | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | ||||||||||
[2] | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. | ||||||||||
[3] | The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Dividends per share | $ 0.52 | $ 0.44 | $ 0.40 |
Stock options exercised, tax benefit | $ 1,270 | ||
Stock options exercised, tax expense | $ 265 | $ 31 | |
Net unrealized gain (loss) on investments, tax | 30 | (15) | 18 |
Net change in effective portion of hedging contracts, tax (benefit) | (10) | 10 | 0 |
Gain on available-for-sale securities, tax benefit | $ 0 | $ 0 | $ 50 |
Common Stock Class Undefined | |||
Common Stock, Voting Rights | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | ||
Class A Common Stock | |||
Common Stock, Voting Rights | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. | ||
Common stock, Conversion basis | Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation as amended. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Organization and Business Movado Group, Inc. (together with its subsidiaries, the “Company”) designs, sources, markets and distributes quality watches with prominent brands in almost every price category comprising the watch industry. In fiscal 2017, the Company marketed nine distinct brands of watches: Coach, Concord, Ebel, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste, Movado, and Tommy Hilfiger. Movado (with the exception of certain Movado collections, including Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third party assemblers and are manufactured using Swiss movements. All of the Company’s products are manufactured using components obtained from third party suppliers. Certain Movado collections of watches, including Movado BOLD, are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Lacoste and Scuderia Ferrari watches are manufactured by independent contractors in Asia. In addition to its sales to trade customers and independent distributors, the Company also operates retail outlet locations throughout the United States, through which it sells discontinued models and factory seconds of all of the Company’s watches. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company uses estimates when accounting for sales discounts, returns, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, contingencies, impairments and asset and liability valuations. Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The financial statements of the Company’s international subsidiaries have been translated into United States dollars by translating balance sheet accounts at year-end exchange rates and statement of operations accounts at average exchange rates for the year. Foreign currency transaction gains and losses are charged or credited to earnings as incurred. Foreign currency translation gains and losses are reflected in the equity section of the Company’s consolidated balance sheets in Accumulated Other Comprehensive Income. The balance of the foreign currency translation adjustment, included in Accumulated Other Comprehensive Income, was $76.6 million and $68.3 million as of January 31, 2017 and 2016, respectively. Cash and Cash Equivalents Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. Trade Receivables Trade receivables as shown on the consolidated balance sheets are net of various allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historical trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The Company’s trade customers include department stores, jewelry store chains and independent jewelers. All of the Company’s watch brands, except ESQ Movado, are also marketed outside the U.S. through a network of independent distributors. Accounts receivable are stated net of doubtful accounts, returns and allowances of $18.9 million (additionally $2.2 million of allowances were recorded in non-current assets), $17.7 million (additionally $1.6 million of allowances were recorded in non-current assets) and $16.6 million (additionally $0.5 million of allowances were recorded in non-current assets) at January 31, 2017, 2016 and 2015, respectively. Accounts receivable are also stated net of co-operative advertising allowances of $7.8 million, $9.8 million, and $13.2 million at January 31, 2017, 2016, and 2015, respectively. Co-operative advertising allowances are credits taken by the customer at a future date on previously executed co-operative advertising. The Company’s concentrations of credit risk arise primarily from accounts receivable related to trade customers during the peak selling seasons. The Company has significant accounts receivable balances due from major national chain and department stores. The Company’s results of operations could be materially adversely affected in the event any of these customers or a group of these customers defaulted on all or a significant portion of their obligations to the Company as a result of financial difficulties. As of January 31, 2017, except for those accounts provided for in the reserve for doubtful accounts, the Company knew of no situations with any of the Company’s major customers which would indicate any such customer’s inability to make its required payments. In fiscal 2017, sales to Signet Jewelers Limited, and their respective affiliates, represented approximately 11.6% of the Company’s total net sales, and approximately 13.3% of the Company’s net sales in the Wholesale segment. Inventories The Company values its inventory at the lower of cost or market. Cost is determined using the average cost method. The Company performs reviews of its on-hand inventory to determine amounts, if any, of inventory that is deemed discontinued, excess, or unsaleable. Inventory classified as discontinued, together with the related component parts which can be assembled into saleable finished goods, is sold primarily through the Company’s outlet stores. When management determines that finished product is unsaleable, could not be sold at net realizable value or that it is economically impractical to build the excess components into watches for sale, a charge is recorded to value those products and components at the lower of cost or market. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation of buildings is provided using the straight-line method based on the useful life of 40 years. Depreciation of furniture and equipment is provided using the straight-line method based on the estimated useful lives of assets, which range from four to ten years. Computer software is amortized using the straight-line method over the useful life of five to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the lease or the estimated useful life of the leasehold improvement. Design fees and tooling costs are amortized using the straight-line method based on the useful life of three years. Upon the disposition of property, plant and equipment, the accumulated depreciation is deducted from the original cost and any gain or loss is reflected in current earnings. Intangibles Intangible assets consist primarily of trademarks and developed technology and are recorded at cost. Trademarks and developed technology are amortized over a range from three to ten years. At January 31, 2017 and 2016, intangible assets at cost were $8.1 million and $7.9 million, respectively, and related accumulated amortization of intangibles was $6.8 million and $6.4 million, respectively. Amortization expense for fiscal 2017, 2016 and 2015 was $0.4 million, $0.3 million and $0.3 million, respectively. Long-Lived Assets The Company periodically reviews the estimated useful lives of its property, plant and equipment and intangible assets based on factors including historical experience, the expected beneficial service period of the asset, the quality and durability of the asset and the Company’s maintenance policy including periodic upgrades. Changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. The Company performs an impairment review of its long-lived assets once events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable. When such a determination has been made, management compares the carrying value of the asset groups with their estimated future undiscounted cash flows. If it is determined that an impairment has occurred, the loss is recognized during that period. The impairment is calculated as the difference between asset carrying values and the fair value of the long-lived assets. Deferred Rent Obligations and Contributions from Landlords The Company accounts for rent expense under non-cancelable operating leases with scheduled rent increases on a straight-line basis over the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease retail store space from the landlords. This is also recorded as a deferred liability. Such amounts are amortized as a reduction of rent expense over the life of the related lease. Capitalized Software Costs The Company capitalizes certain computer software costs after technological feasibility has been established. The costs are amortized utilizing the straight-line method over the economic lives of the related products ranging from two to ten years. Derivative Financial Instruments The Company accounts for its derivative financial instruments in accordance with the accounting guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company also sells to third-party customers in a variety of foreign currencies, most notably the Euro and the British Pound. The Company reduces its exposure to the Swiss franc, Euro and British Pound exchange rate risks through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses forward contracts to further reduce the net exposures to currency fluctuations. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The earnings impact is mostly offset by the effects of currency movements on the underlying hedged transactions. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. The Company does not exclude any designated cash flow hedges from its effectiveness testing. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized as other income in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not designated as qualified hedges and, therefore, changes in the fair value of these derivatives are recognized in earnings in the period they arise, thereby offsetting the current earnings effect resulting from the revaluation of the related foreign currency receivables and liabilities. All of the Company’s derivative instruments have liquid markets to assess fair value. The Company does not enter into any derivative instruments for trading purposes. Revenue Recognition In the Wholesale segment, the Company recognizes its revenues upon transfer of title and risk of loss in accordance with its FOB shipping point terms of sale and after the sales price is fixed and determinable and collectability is reasonably assured. In the Retail segment, transfer of title and risk of loss occurs at the time of register receipt. The Company records estimates for sales returns, volume-based programs and sales and cash discount allowances as a reduction of revenue in the same period that the sales are recorded. These estimates are based upon historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. While returns have historically been within the Company’s expectations and the provisions established, future return rates may differ from those experienced in the past. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. During the fourth quarter of fiscal 2016, the Company announced the launch of two distinct smart watch collections with iOS and Android compatible software apps: Movado Motion and Movado’s BOLD Motion. During the first quarter of fiscal 2017, the Company announced the expansion of its use of smartwatch technology to its licensed brands portfolio, including Coach, HUGO BOSS, Lacoste, Juicy Couture, Tommy Hilfiger, and Scuderia Ferrari. Smart watches contain hardware and software components. Software components consist of both firmware embedded in the physical watch as well as an app that will run on iOS and Android mobile devices. The hardware and software components function together to deliver the watches’ essential functionality. As typical with numerous consumer products containing embedded or companion software, updates to the software will be provided from time to time, when and if available. Updates are generally limited to bug fixes or enhancements that incrementally improve on the existing functionality. Arrangements, including those that combine hardware (watch) with software that function together to deliver the watch’s essential functionality, are considered multiple element arrangements and are subject to the accounting principles applicable to such arrangements. For multiple element arrangements that include smart watches containing software essential to the smart watch’s functionality and undelivered software elements (cloud service updates and app upgrades) that relate to the smart watch’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). Because the Company has neither VSOE nor TPE for the software elements, revenue is allocated to these rights and services based on the Company’s ESPs. ESPs for the software elements reflect the Company’s best estimate of the selling prices if they were sold regularly on a stand-alone basis. The Company has identified multiple deliverables contained in its smart watch collections. The first deliverable is the watch along with the software essential to the functionality of the watch delivered at the time of sale. The second deliverable is the software included free of charge that enables users to sync and view data on the Company’s mobile app. The third deliverable is the embedded right included with the purchase to receive unspecified firmware and software upgrades, when and if available. The Company allocates revenue to all deliverables using the relative selling price method. Amounts allocated to the delivered smart watch collections and the related essential software are recognized at the time of sale, provided the other conditions for revenue recognition have been met. Amounts allocated to the cloud service and app updates are deferred and recognized on a straight-line basis over the estimated two year period the updates are expected to be provided. During the fourth quarter of fiscal 2016, the Company launched its first smart watch collections, followed by additional smart watch launches during fiscal 2017. The smart watches were available in limited quantities and in limited distribution, and, as a result, these deferred amounts were immaterial as of January 31, 2017 and January 31, 2016. Cost of Sales Cost of sales of the Company’s products consist primarily of costs for raw materials, component costs, royalties, depreciation, amortization, assembly costs, design costs and unit overhead costs associated with the Company’s supply chain operations in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing in Switzerland and Asia and minor assembly in Switzerland. Since a substantial amount of the Company’s product costs are incurred in Swiss francs, fluctuations in the U.S. dollar/Swiss franc exchange rate can impact the Company’s cost of goods sold and, therefore, its gross margins. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company has the ability to hedge its Swiss franc purchases using a combination of forward contracts and purchased currency options. Selling, General and Administrative (“SG&A”) Expenses The Company’s SG&A expenses consist primarily of marketing, selling, distribution, general and administrative expenses. Marketing expenditures are based principally on overall strategic considerations relative to maintaining or increasing market share in markets that management considers to be crucial to the Company’s continued success as well as on general economic conditions in the various markets around the world in which the Company sells its products. Marketing expenses include salaries, various forms of media advertising, digital advertising and co-operative advertising with customers and distributors and other point of sale marketing and promotion spending. Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with Baselworld Watch and Jewelry Show, the annual watch and jewelry trade show, and other industry trade shows and operating costs incurred in connection with the Company’s retail business. Sales commissions vary with overall sales levels. Retail selling expenses consist primarily of payroll and related expenses and store occupancy costs. Distribution expenses consist primarily of salaries of distribution staff, rental and other occupancy costs, security, depreciation and amortization of furniture and leasehold improvements and shipping supplies. General and administrative expenses consist primarily of salaries and other employee compensation including performance based compensation, employee benefit plan costs, office rent, management information systems costs, professional fees, bad debts, depreciation and amortization of furniture, computer software and leasehold improvements, patent and trademark expenses and various other general corporate expenses. Warranty Costs All watches sold by the Company come with limited warranties covering the movement against defects in material and workmanship for periods ranging from two to three years from the date of purchase, with the exception of Tommy Hilfiger watches, for which the warranty period is ten years. In addition, the warranty period is five years for the gold plating for Movado watch cases and bracelets. When changes in warranty costs are experienced, the Company will adjust the warranty liability as required. The Company records an estimate for future warranty costs based on historical repair costs. Warranty costs have historically been within the Company’s expectations and the provisions established. Warranty liability for the fiscal years ended January 31, 2017, 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Balance, beginning of year $ 2,556 $ 2,710 $ 2,660 Provision charged to operations 2,092 1,630 2,710 Settlements made (1,920 ) (1,784 ) (2,660 ) Balance, end of year $ 2,728 $ 2,556 $ 2,710 Pre-opening Costs Costs associated with the opening of retail stores are expensed in the period incurred. Marketing The Company expenses the production costs of an advertising campaign at the commencement date of the advertising campaign. Included in marketing expenses are costs associated with co-operative advertising, media advertising, digital advertising, production costs and costs of point of sale materials and displays. These costs are recorded as SG&A expenses. The Company participates in co-operative advertising programs on a voluntary basis and receives a “separately identifiable benefit in exchange for the consideration.” Since the amount of consideration paid to the retailer does not exceed the fair value of the benefit received by the Company, these costs are recorded as SG&A expenses as opposed to being recorded as a reduction of revenue. Marketing expense for fiscal 2017, 2016 and 2015 was $75.7 million, $77.6 million and $74.9 million, respectively. Included in other current assets in the consolidated balance sheets as of January 31, 2017 and 2016 are prepaid advertising costs of $0.5 million and $0.5 million, respectively. These prepaid costs represent advertising costs paid to licensors in advance, pursuant to the Company’s licensing agreements and sponsorships. Shipping and Handling Costs Amounts charged to customers for shipping and handling were $1.9 million, $2.2 million and $2.4 million for fiscal years 2017, 2016 and 2015, respectively. The costs related to shipping and handling were $5.6 million, $6.5 million and $6.3 million for fiscal years 2017, 2016 and 2015, respectively. These amounts incurred by the Company related to shipping and handling are included in net sales and cost of goods sold. Collaborative Arrangement The Company from time to time participates in collaborative arrangements. These types of arrangements typically involve one (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These arrangements usually involve various activities by one or more parties, including design, development, distribution and marketing. Amounts due between partners in the arrangement related to sales and related activities are generally recorded in the Company’s cost of sales while general and administrative activities are recorded as an adjustment to selling, general and administrative expenses. Income Taxes The Company follows the asset and liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and tax rates, in each jurisdiction where the Company operates, and applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. In addition, the amounts of any future tax benefits are reduced by a valuation allowance to the extent such benefits are not expected to be realized on a more-likely-than-not basis. The Company calculates estimated income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax expense along with assessing temporary differences resulting from differing treatment of items for both book and tax purposes. The Company follows guidance for accounting for uncertainty in income taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. This guidance also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. Earnings Per Share The Company presents net income per share on a basic and diluted basis. Basic earnings per share is computed using weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents. The weighted-average number of shares outstanding for basic earnings per share were approximately 23,070,000, 23,525,000 and 25,276,000 for fiscal 2017, 2016 and 2015, respectively. For the fiscal years ended January 31, 2017, 2016 and 2015, the number of shares outstanding for diluted earnings per share were approximately 23,267,000, 23,774,000 and 25,581,000, respectively. For the fiscal years ended January 31, 2017, 2016 and 2015, the number of shares outstanding for diluted earnings per share included approximately 197,000, 249,000 and 305,000 due to potentially dilutive common stock equivalents issuable under the Company’s stock compensation plans. For the fiscal years ended January 31, 2017, 2016 and 2015 approximately 785,000, 637,000 and 102,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. Stock-Based Compensation Under the accounting guidance for share-based payments, the Company utilizes the Black-Scholes option-pricing model which requires that certain assumptions be made to calculate the fair value of each option at the grant date. The expected life of stock option grants is determined using historical data and represents the time period during which the stock option is expected to be outstanding until it is exercised. The risk free interest rate is the yield on the grant date of U.S. Treasury constant maturities with a maturity date closest to the expected life of the stock option. The expected stock price volatility is derived from historical volatility and calculated based on the estimated term structure of the stock option grant. The expected dividend yield is calculated using the Company’s historical average of annualized dividend yields and applied over the expected term of the option. Compensation expense for equity instruments is accrued based on the estimated number of instruments for which the requisite service is expected to be rendered and expensed on a straight-line basis over the vesting term. |
Inventories
Inventories | 12 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 – INVENTORIES Inventories consisted of the following (in thousands): As of January 31, 2017 2016 Finished goods $ 112,297 $ 117,627 Component parts 38,482 41,041 Work-in-process 2,388 3,797 $ 153,167 $ 162,465 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 3 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, consisted of the following (in thousands): As of January 31, 2017 2016 Land and buildings $ 1,490 $ 1,574 Furniture and equipment 59,163 58,617 Computer software 32,077 31,747 Leasehold improvements 32,307 31,646 Design fees and tooling costs 1,787 1,399 126,824 124,983 Less: accumulated depreciation (92,651 ) (86,430 ) $ 34,173 $ 38,553 Depreciation and amortization expense from operations related to property, plant and equipment for fiscal 2017, 2016 and 2015 was $11.9 million, $12.4 million and $11.9 million, respectively, which includes computer software amortization expense for fiscal 2017, 2016 and 2015 of $3.5 million, $3.5 million and $3.0 million, respectively. |
Debt and Lines of Credit
Debt and Lines of Credit | 12 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | NOTE 4 – DEBT AND LINES OF CREDIT On January 30, 2015, the Company, together with Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC (collectively, the “Borrowers”), each a wholly-owned domestic subsidiary of the Company, entered into a Credit Agreement (the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $100.0 million senior secured revolving credit facility (the “Facility”), including a $15.0 million letter of credit sub-facility, that matures on January 30, 2020, with provisions for uncommitted increases of up to $50.0 million in the aggregate, subject to customary terms and conditions. In connection with the Credit Agreement, the Borrowers also entered into a Security and Pledge Agreement dated as of January 30, 2015 in favor of the Agent (the “Security Agreement”). As of January 31, 2017, $30.0 million in loans were drawn under the Facility. Additionally, approximately $0.3 million in letters of credit, which were outstanding under the Borrower’s pre-existing asset-based revolving credit facility that was concurrently terminated when the Credit Agreement became effective, are deemed to be issued and outstanding under the Facility. As of January 31, 2017, availability under the Facility was approximately $69.7 million. Borrowings under the Facility bear interest at rates selected periodically by the Company at LIBOR plus a spread ranging from 1.25% to 1.75% per annum, based on the Company’s consolidated leverage ratio or at a base rate plus a spread ranging from 0.25% to 0.75% per annum based on the Company’s consolidated leverage ratio (as defined in the Credit Agreement). At January 31, 2017, the Company’s spreads were 1.25% over LIBOR and 0.25% over the base rate. The Company has also agreed to pay certain fees and expenses and provide certain indemnities, all of which are customary for such financings. The borrowings under the Facility are joint and several obligations of the Borrowers and are also cross-guaranteed by each Borrower. In addition, pursuant to the Security Agreement, the Borrowers’ obligations under the Facility are secured by first priority liens, subject to permitted liens, on substantially all of the Borrowers’ assets other than certain excluded assets. The Security Agreement contains representations, warranties and covenants, which are customary for pledge and security agreements of this type, relating to the creation and perfection of security interests in favor of the Agent over various categories of the Borrowers’ assets. The Credit Agreement contains affirmative and negative covenants binding on the Borrowers and their subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions). The Borrowers are also subject to a minimum consolidated EBITDA (as defined in the Credit Agreement) test of $50.0 million, measured at the end of each fiscal quarter based on the four most recent fiscal quarters and a consolidated leverage ratio (as defined in the Credit Agreement) covenant not to exceed 2.50 to 1.00, measured as of the last day of each fiscal quarter. As of January 31, 2017, the Company was in compliance with its covenants under the Credit Agreement. The Credit Agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, failure of any representation or warranty to be true in any material respect when made or deemed made, violation of covenants, cross default with material indebtedness, material judgments, material ERISA liability, bankruptcy events, asserted or actual revocation or invalidity of the loan documents, and change of control. As of January 31, 2017, the Company classified $5.0 million of the outstanding balance under the Facility as current based on voluntary payments estimated to be made in the next twelve months, with the remainder classified as long-term debt based on the 2020 maturity date of the Facility and the Company's intent and ability to refinance its obligations thereunder. As of January 31, 2017, Bank of America, N.A. issued two irrevocable standby letters of credit in connection with retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada. As of January 31, 2017, the Company had outstanding letters of credit totaling $0.3 million with expiration dates through May 31, 2017. A Swiss subsidiary of the Company maintains unsecured lines of credit with an unspecified maturity with a Swiss bank. As of January 31, 2017 and 2016, these lines of credit totaled 6.5 million Swiss francs and 5.0 million Swiss francs with a dollar equivalent of $6.6 million and $4.9 million, respectively. As of January 31, 2017 and 2016, there were no borrowings against these lines. As of January 31, 2017, two European banks have guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.2 million, in various foreign currencies, of which $0.6 million is a restricted deposit as it relates to lease agreements. As of January 31, 2016, two European banks have guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.0 million, of which $0.4 million is a restricted deposit as it relates to a lease agreement. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS As of January 31, 2017, the Company’s entire net forward contracts hedging portfolio consisted of 20.0 million Swiss francs equivalent, 5.9 million Euros equivalent and 4.8 million British Pounds equivalent with various expiry dates ranging through July 6, 2017. The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of January 31, 2017 and 2016 (in thousands): Asset Derivatives Liability Derivatives Balance 2017 2016 Balance 2017 2016 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current $ 145 $ 1 Accrued Liabilities $ 211 $ 1,163 Total Derivative Instruments $ 145 $ 1 $ 211 $ 1,163 Asset Derivatives Liability Derivatives Balance 2017 2016 Balance 2017 2016 Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current $ — $ 63 Accrued Liabilities $ — $ — Total Derivative Instruments $ — $ 63 $ — $ — As of January 31, 2017 and 2016, the balance of deferred net gains on derivative financial instruments documented as cash flow hedges included in accumulated other comprehensive income (“AOCI”) were immaterial for both periods, respectively. The maximum length of time the Company hedges its exposure to the fluctuation in future cash flows for forecasted transactions is 24 months. For the fiscal year ended January 31, 2017, the Company reclassified from AOCI to earnings $0.4 million of net gains, net of tax of $0.1 million. For the fiscal year ended January 31, 2016, the amount the Company reclassified from AOCI to earnings was immaterial. No ineffectiveness has been recorded in fiscal years 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Fair Value Measurements | NOTE 6 - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. • Level 3 - Unobservable inputs based on the Company’s assumptions. The guidance requires the use of observable market data if such data is available without undue cost and effort. The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 31, 2017 and 2016 (in thousands): Fair Value at January 31, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 309 $ — $ — $ 309 Short-term investment Other current assets 154 — — 154 SERP assets - employer Other non-current assets 1,091 — — 1,091 SERP assets - employee Other non-current assets 30,831 — — 30,831 Hedge derivatives Other current assets — 145 — 145 Total $ 32,385 $ 145 $ — $ 32,530 Liabilities: SERP liabilities - employee Other non-current liabilities $ 30,831 $ — $ — $ 30,831 Hedge derivatives Accrued liabilities — 211 — 211 Total $ 30,831 $ 211 $ — $ 31,042 Fair Value at January 31, 2016 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 268 $ — $ — $ 268 SERP assets - employer Other non-current assets 1,168 — — 1,168 SERP assets - employee Other non-current assets 24,853 — — 24,853 Hedge derivatives Other current assets — 64 — 64 Total $ 26,289 $ 64 $ — $ 26,353 Liabilities: SERP liabilities - employee Other non-current liabilities $ 24,853 $ — $ — $ 24,853 Hedge derivatives Accrued liabilities — 1,163 — 1,163 Total $ 24,853 $ 1,163 $ — $ 26,016 The fair values of the Company’s available-for-sale securities are based on quoted prices. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 - INCOME TAXES Income before provision for income taxes on a legal entity basis consists of the following (in thousands): 2017 2016 2015 U.S. income before taxes $ 26,299 $ 44,384 $ 34,099 Non-U.S. income before taxes 25,155 24,741 37,065 Income before income taxes $ 51,454 $ 69,125 $ 71,164 The Company conducts business globally and, as a result, is subject to income taxes in the U.S. federal, state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities in many countries, such as Germany, Hong Kong, Switzerland and the United States. The Company is no longer subject to income tax examination for years ended prior to January 31, 2013, with few exceptions. The provision for income taxes for the fiscal years ended January 31, 2017, 2016 and 2015 consists of the following components (in thousands): 2017 2016 2015 Current: U.S. Federal $ 14,079 $ 17,776 $ 8,412 U.S. State and Local 1,117 1,434 770 Non-U.S. 5,091 5,291 3,945 20,287 24,501 13,127 Deferred: U.S. Federal (4,231 ) (1,995 ) 3,763 U.S. State and Local (167 ) (228 ) 420 Non-U.S. 426 1,082 1,954 (3,972 ) (1,141 ) 6,137 Provision for income taxes $ 16,315 $ 23,360 $ 19,264 Significant components of the Company’s deferred income tax assets and liabilities as of January 31, 2017 and 2016 are as follows (in thousands): 2017 Deferred Taxes 2016 Deferred Taxes Assets Liabilities Assets Liabilities Net operating loss carryforwards $ 10,516 $ — $ 9,182 $ — Inventory 3,782 — 3,103 — Unprocessed returns 1,200 — 1,538 — Receivables allowances 1,151 — 847 — Deferred compensation 18,955 — 16,286 — Unrepatriated earnings — 2,956 — 2,877 Capital loss carryforwards 389 216 — Depreciation/amortization — 1,245 — 1,234 Other provisions/accruals 207 — 200 — Miscellaneous 955 — 992 — 37,155 4,201 32,364 4,111 Valuation allowance (8,714 ) — (8,089 ) — Total deferred tax assets and liabilities $ 28,441 $ 4,201 $ 24,275 $ 4,111 As of January 31, 2017, the Company had no U.S. federal net operating loss carryforwards and had U.S. state and foreign net operating loss carryforwards of approximately $9.3 million and $38.1 million, respectively, with expiration dates ranging from 1-19 years and some foreign jurisdictions with an indefinite carryforward period. Of the foreign net operating losses, $15.9 million are related to Switzerland and the remaining is related to Germany and other foreign countries. A valuation allowance is required to be established unless management determines it is more likely than not that the Company will ultimately utilize the tax benefit associated with a deferred tax asset. The Company has U.S. state and foreign valuation allowances of $0.1 million and $8.6 million, respectively, which are primarily related to net operating loss carryforwards. Management will continue to evaluate the appropriate level of valuation allowance on all deferred tax assets considering such factors as prior earnings history, expected future earnings, carryback and carryforward periods, and tax and business strategies that could potentially enhance the likelihood of realization of the deferred tax assets. The recognition of deductible windfall tax benefits related to stock-based compensation is prohibited until realized through a reduction to income taxes payable. Shortfall tax expenses of $0.3 million and $0.0 million and windfall tax benefit of $1.3 million, were recorded in additional paid-in-capital during fiscal years 2017, 2016 and 2015, respectively. The provision for income taxes differs from the U.S. federal statutory rate due to the following (in thousands): Fiscal Year Ended January 31, 2017 2016 2015 Provision for income taxes at the U.S. statutory rate $ 18,009 $ 24,194 $ 24,906 Lower effective non-U.S. income tax rate (4,725 ) (4,463 ) (7,257 ) Change in valuation allowance 828 986 1,298 U.S. tax provided on earnings of non-U.S. subsidiaries 541 1,029 639 Change in liabilities for uncertain tax positions, net 215 (98 ) 179 State and local taxes, net of federal benefit 617 1,234 693 (Benefit) provided on intercompany transactions — — (1,652 ) Other, net 830 478 458 Total provision for income taxes $ 16,315 $ 23,360 $ 19,264 The effective tax rate for fiscal 2017 was 31.7%, primarily as a result of foreign profits being taxed in lower taxing jurisdictions offset by no tax benefit being recognized on certain earnings of foreign subsidiaries and U.S. tax provided on earnings of non-U.S. subsidiaries. The effective tax rate for fiscal 2016 was 33.8% primarily as a result of foreign profits being taxed in lower taxing jurisdictions offset by U.S. tax provided on earnings of non-U.S. subsidiaries. The effective tax rate for fiscal 2015 was 27.1%, primarily as a result of foreign profits being taxed in lower taxing jurisdictions and the recognition of a tax benefit related to intercompany profit in certain jurisdictions. The Company performs a quarterly assessment reviewing its global cash projections and investment needs, and considers such factors as projected future results, continued need for investment in the overseas business as well as cash needs in the U.S., among other countries. The Company has recorded a federal income tax liability of $3.0 million related to $12.7 million of pre-2013 foreign earnings which have been earmarked for future repatriation. This deferred tax liability is net of the estimated foreign tax credits that would be generated upon repatriation of such earnings. A deferred tax liability has not been recorded for the remaining undistributed foreign earnings of approximately $307 million, because the Company intends to permanently reinvest such earnings in its foreign operations. It is not practicable to estimate the amount of tax that may be payable on the eventual distribution of these earnings. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (exclusive of interest) for the fiscal years ended January 31, 2017, 2016 and 2015 are as follows (in thousands): 2017 2016 2015 Beginning balance $ 2,481 $ 2,657 $ 2,740 Additions for tax positions taken in the current year 142 175 128 Lapse of statute of limitations — (311 ) (34 ) Non U.S. currency exchange fluctuations (4 ) (40 ) (177 ) Ending balance $ 2,619 $ 2,481 $ 2,657 Included in the balances at January 31, 2017, January 31, 2016 and January 31, 2015 are $2.6 million, $2.4 million, and $2.5 million of unrecognized tax benefits which would impact the Company’s effective tax rate, if recognized. Interest and penalties, if any, related to unrecognized tax benefits are recorded as income tax expense in the consolidated statement of operations. As of January 31, 2017, January 31, 2016 and January 31, 2015, the Company had $0.7 million, $0.6 million and $0.7 million, respectively of accrued interest (net of tax benefit) and penalties related to unrecognized tax benefits. During fiscal years 2017, 2016 and 2015, the Company accrued $0.1 million, $0.1 million and $0.1 million of interest (net of tax benefit) and penalties. It is reasonably possible that within the next 12 months unrecognized tax benefits could decrease by up to $0.6 million, exclusive of interest and penalties, due to the closure of audit periods in multiple taxing jurisdictions. We expect that the majority of the decrease would impact the Company’s effective tax rate, if recognized. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2017 | |
Leases [Abstract] | |
Leases | NOTE 8 – LEASES The Company leases office, distribution, retail and manufacturing facilities, and office equipment under operating leases, which expire at various dates through February 2027. Certain leases include renewal options and the payment of real estate taxes and other occupancy costs. Some leases also contain rent escalation clauses (step rents) that require additional rent amounts in the later years of the term. Rent expense for leases with step rents is recognized on a straight-line basis over the minimum lease term. Likewise, capital funding and other lease concessions that are occasionally provided to the Company are recorded as deferred rent and amortized on a straight-line basis over the minimum lease term as adjustments to rent expense. Rent expense for equipment and distribution, factory and office facilities under operating leases was approximately $14.2 million, $13.5 million and $13.5 million in fiscal 2017, 2016 and 2015, respectively. Minimum annual rentals under noncancelable operating leases as of January 31, 2017, excluding real estate taxes and operating costs, are as follows (in thousands): Fiscal Year Ending January 31, 2018 $ 13,097 2019 9,013 2020 5,301 2021 3,558 2022 3,282 Thereafter 13,288 $ 47,539 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES The Company has minimum commitments related to the Company’s license agreements and endorsement agreements with brand ambassadors. The Company sources, distributes, advertises and sells watches pursuant to its exclusive license agreements with unaffiliated licensors. Royalty amounts under the license agreements are generally based on a stipulated percentage of revenues, although most of these agreements contain provisions for the payment of minimum annual royalty amounts. The license agreements have various terms and some have additional renewal options, provided that minimum sales levels are achieved. Additionally, the license agreements require the Company to pay minimum annual advertising amounts. As of January 31, 2017, the total amount of the Company’s minimum commitments related to its license agreements and endorsement agreements was $116.8 million. The Company had outstanding purchase obligations of $68.8 million with suppliers at the end of fiscal 2017 primarily for raw materials, finished watches and packaging in the normal course of business. These purchase obligation amounts do not represent total anticipated purchases but represent only amounts to be paid for items required to be purchased under agreements that are enforceable, legally binding and specify minimum quantity, price and term. The Company believes that income tax reserves are adequate; however, amounts asserted by taxing authorities could be greater or less than amounts accrued and reflected in the consolidated balance sheet. Accordingly, the Company could record adjustments to the amounts for federal, state, and foreign liabilities in the future as the Company revises estimates or settles or otherwise resolves the underlying matters. In the ordinary course of business, the Company may take new positions that could increase or decrease unrecognized tax benefits in future periods. As of January 31, 2017, the Company recorded $1.0 million in restricted cash deposits in other current assets on the Company’s Consolidated Balance Sheet, related to a certain vendor agreement. In December 2016, U.S. Customs and Border Protection (“U.S. Customs”) issued an audit report concerning the methodology used by the Company to allocate the cost of certain watch styles imported into the U.S. among the component parts of those watches for tariff purposes. The report disputes the reasonableness of the Company’s historical allocation formulas and proposes an alternative methodology that would imply approximately $5.1 million in underpaid duties over the five-year period covered by the statute of limitations. The Company believes that U.S. Customs’ alternative duty methodology and estimate are not consistent with the Company’s facts and circumstances and is disputing U.S. Customs’ position. On February 24, 2017, the Company provided U.S. Customs with supplemental analyses and information supporting the Company’s historical allocation formulas and requested a meeting to discuss that information. Although the Company disagrees with U.S. Customs’ position, it cannot predict with any certainty the outcome of this matter. The Company intends to continue to work with U.S. Customs to reach a mutually-satisfactory resolution. The Company is involved in legal proceedings and claims from time to time, in the ordinary course of its business. Legal reserves are recorded in accordance with the accounting guidance for contingencies. Contingencies are inherently unpredictable and it is possible that results of operations, balance sheets or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, such matters. For those legal proceedings and claims for which the Company believes that it is probable and reasonably estimable that a loss may result, the Company records a reserve for the potential loss. For proceedings and claims where the Company believes it is reasonably possible that a loss may result that is materially in excess of amounts accrued for the matter, the Company either discloses an estimate of such possible loss or range of loss or includes a statement that such an estimate cannot be made. As of January 31, 2017, the Company is party to legal proceedings and contingencies, the resolution of which is not expected to materially affect its financial condition, future results of operations beyond the amounts accrued, or cash flows. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 10 – STOCK-BASED COMPENSATION Under the Company’s Employee Stock Option Plan, as amended and restated as of April 4, 2013 (the “Plan”), the Compensation Committee of the Board of Directors, which consists of four of the Company’s non-employee directors, has the authority to grant incentive stock options and nonqualified stock options, as well as stock appreciation rights and stock awards, for up to 11,000,000 shares of common stock. Options granted to participants under the Plan generally become exercisable in equal installments over three or five years and remain exercisable until the tenth anniversary of the date of grant. The option price may not be less than the fair market value of the stock at the time the options are granted. The weighted-average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock option grants during fiscal 2017 were: expected term of 6.0 years; risk-free interest rate of 1.42%; expected volatility of 47.81% and dividend yield of 1.01%. The weighted-average grant date fair value of options granted during the fiscal year ended January 31, 2017 was $11.17. The weighted-average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock option grants during fiscal 2016 were: expected term of 5.0 years; risk-free interest rate of 1.34%; expected volatility of 48.77% and dividend yield of 0.81%. The weighted-average grant date fair value of options granted during the fiscal year ended January 31, 2016 was $12.31. The weighted-average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock option grants during fiscal 2015 were: expected term of 5.0 years; risk-free interest rate of 1.64%; expected volatility of 51.13% and dividend yield of 0.68%. The weighted-average grant date fair value of options granted during the fiscal year ended January 31, 2015 was $17.99. Total compensation expense for stock option grants recognized during the fiscal years ended January 31, 2017, 2016 and 2015 was approximately $1.3 million, net of tax of $0.8 million and $1.1 million, net of tax of $0.6 million and $1.2 million, net of tax of $0.7 million, respectively. Expense related to stock option compensation is recognized on a straight-line basis over the vesting term. As of January 31, 2017, there was approximately $2.1 million of unrecognized compensation cost related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 1.8 years. Total consideration received for stock option exercises during the fiscal years ended January 31, 2017, 2016 and 2015 was approximately $1.0 million, $0.6 million and $1.7 million, respectively. The windfall tax expense realized on these exercises in fiscal 2017 was approximately $0.1 million. Transactions for stock options under the Plan since fiscal 2014 are summarized as follows: Outstanding Weighted- January 31, 2014 599,406 $ 26.24 Options granted 116,880 $ 41.71 Options exercised (86,066 ) $ 19.75 Options cancelled (14,000 ) $ 26.59 January 31, 2015 616,220 $ 30.08 Options granted 126,880 $ 30.36 Options exercised (28,450 ) $ 21.49 Options cancelled (15,050 ) $ 33.32 January 31, 2016 699,600 $ 30.41 Options granted 200,346 $ 26.97 Options exercised (40,588 ) $ 25.68 Options cancelled — $ — January 31, 2017 859,358 $ 29.83 The total fair value of stock options exercised for the fiscal years ended January 31, 2017, 2016 and 2015 was approximately $0.2 million, $0.2 million and $1.6 million, respectively. The total fair value of the stock options vested for the fiscal years ended January 31, 2017 and 2016 was approximately $2.0 million and $2.9 million, respectively. There were no stock options vested for the fiscal year ended January 31, 2015. The following table summarizes outstanding and exercisable stock options as of January 31, 2017: Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $21.03 - $24.02 93,750 3.4 $ 22.09 68,750 $ 22.29 $24.03 - $27.02 183,612 5.2 $ 26.59 183,612 $ 26.59 $27.03 - $30.02 175,346 9.2 $ 27.74 — $ — $30.03 - $33.02 293,570 5.6 $ 30.98 196,040 $ 31.28 $33.03 - $42.02 29,780 7.4 $ 40.52 19,853 $ 40.52 $42.03 - $45.02 83,300 7.2 $ 42.12 14,000 $ 42.12 859,358 5.7 $ 29.83 482,255 $ 28.91 The total intrinsic value of outstanding stock options as of January 31, 2017, 2016 and 2015 was approximately $0.6 million, $0.3 million and $0.2 million, respectively. The total intrinsic value of exercisable stock options as of January 31, 2017, 2016 and 2015 was approximately $0.4 million, $0.3 million and $0.2 million, respectively. Under the Plan, the Company has the ability to grant stock awards to employees. Stock awards generally vest three to five years from the date of grant. Expense for these grants is recognized on a straight-line basis over the vesting period. The fair value of stock awards is equal to the closing price of the Company’s publicly-traded common stock on the grant date. For fiscal years 2017, 2016 and 2015, compensation expense for stock awards was approximately $3.2 million, net of tax of $2.0 million, $2.7 million, net of tax of $1.7 million and $2.4 million, net of tax of $1.5 million, respectively. Current accounting guidance requires forfeitures to be estimated at the time of grant in order to estimate the amount of share-based awards that will ultimately vest and thus, current period compensation expense has been adjusted for estimated forfeitures based on historical data. As of January 31, 2017, there was approximately $5.1 million of unrecognized compensation cost related to unvested stock awards. These costs are expected to be recognized over a weighted-average period of 1.7 years. Transactions for stock award units under the Plan since fiscal 2014 are summarized as follows: Number of Stock Award Weighted- January 31, 2014 303,170 $ 24.84 Units granted 164,122 $ 41.32 Units vested (118,368 ) $ 18.66 Units forfeited (11,568 ) $ 33.58 January 31, 2015 337,356 $ 34.72 Units granted 136,310 $ 29.48 Units vested (83,578 ) $ 29.99 Units forfeited (15,490 ) $ 35.70 January 31, 2016 374,598 $ 33.83 Units granted 187,777 $ 27.76 Units vested (170,010 ) $ 31.85 Units forfeited (11,207 ) $ 34.50 January 31, 2017 381,158 $ 31.71 Upon the vesting of a stock award, shares equal to the number of underlying stock award units are issued from the pool of authorized shares. The total fair value of stock award units that vested during fiscal 2017, 2016 and 2015 was approximately $4.8 million, $2.5 million, and $4.9 million, respectively. The windfall tax expense realized on the vested stock awards for fiscal 2017 was $0.2 million. The weighted-average grant date fair values for stock awards for fiscal 2017, 2016, and 2015 were $27.76, $29.48 and $41.32, respectively. Unvested stock award units had a total fair value of approximately $10.3 million, $9.6 million, and $8.1 million for fiscal 2017, 2016 and 2015, respectively. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2017 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Other Employee Benefit Plans | NOTE 11 – OTHER EMPLOYEE BENEFIT PLANS The Company maintains an Employee Savings Plan under Section 401(k) of the Internal Revenue Code. In addition, the Company maintains defined contribution employee benefit plans for its employees located in Switzerland. Company contributions and expenses of administering the plans were $3.1 million, $2.9 million and $3.3 million in fiscal 2017, 2016 and 2015, respectively. The Company maintains a defined contribution Deferred Compensation Plan (also known as a supplemental employee retirement plan or SERP). The SERP provides eligible executives with supplemental retirement benefits in addition to amounts received under the Company’s other retirement plans. The Company makes a matching contribution, up to either 5% or 10% of the executive’s salary, which vests in equal annual installments over five years. During fiscal 2017, 2016 and 2015, the Company recorded expenses related to the SERP of $0.9 million, which includes $0.3 million related to the retirement of the Company’s former Vice Chairman and Chief Operating Officer, $0.4 million and $0.5 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jan. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income at January 31, consisted of the following (in thousands): Currency Translation Available- Hedging Total Balance, January 31, 2016 $ 68,265 $ 189 $ 51 $ 68,505 Other comprehensive income / (loss) before 8,389 8 (408 ) 7,989 Amounts reclassified from (85 ) — 371 286 Net current-period other 8,304 8 (37 ) 8,275 Balance, January 31, 2017 $ 76,569 $ 197 $ 14 $ 76,780 Currency Translation Available- Hedging Total Balance, January 31, 2015 $ 98,642 $ 211 $ 1 $ 98,854 Other comprehensive (loss) / (30,377 ) (22 ) 50 (30,349 ) Amounts reclassified from — — — — Net current-period other (30,377 ) (22 ) 50 (30,349 ) Balance, January 31, 2016 $ 68,265 $ 189 $ 51 $ 68,505 (1) Amounts in fiscal 2017 and 2016 were reclassified to earnings in the Consolidated Statements of Operations. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | NOTE 13 – SEGMENT AND GEOGRAPHIC INFORMATION The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance. The Company conducts its business in two operating segments: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of watches of quality luxury brands and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Retail segment includes the Company’s retail outlet locations. The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all non-U.S. Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 23.1%, 8.9%, 8.1% and 6.3%, respectively, of the Company’s total net sales for fiscal 2017. For fiscal 2016, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 21.2%, 10.5%, 7.4% and 6.1%, respectively, of the Company’s total net sales. For fiscal 2015, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.9%, 11.4%, 7.1% and 8.0%, respectively, of the Company’s total net sales. Substantially all of the Company’s International assets are located in Switzerland and Hong Kong. Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (3) 2017 2016 2015 Wholesale: Luxury brands category $ 205,396 $ 219,012 $ 212,684 Licensed brands category 265,137 297,227 294,316 After-sales service and all other 13,911 13,770 15,260 Total Wholesale 484,444 530,009 522,260 Retail 68,308 64,914 64,720 Consolidated total $ 552,752 $ 594,923 $ 586,980 Operating Income 2017 2016 2015 Wholesale $ 41,773 $ 58,242 $ 58,236 Retail 12,208 11,865 13,251 Consolidated total $ 53,981 $ 70,107 $ 71,487 Total Assets Capital Expenditures 2017 2016 2017 2016 2015 Wholesale $ 584,518 $ 562,547 $ 5,666 $ 5,902 $ 9,321 Retail 23,284 22,623 254 2,168 1,811 Consolidated total $ 607,802 $ 585,170 $ 5,920 $ 8,070 $ 11,132 Depreciation and Amortization 2017 2016 2015 Wholesale $ 9,875 $ 11,561 $ 11,053 Retail 1,632 1,595 1,416 Consolidated total $ 11,507 $ 13,156 $ 12,469 Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (3) Operating Income 2017 2016 2015 2017 2016 2015 United States $ 296,311 $ 326,206 $ 320,425 $ 16,917 $ 29,867 $ 18,811 International 256,441 268,717 266,555 37,064 40,240 52,676 Consolidated total $ 552,752 $ 594,923 $ 586,980 $ 53,981 $ 70,107 $ 71,487 Total Assets Property, Plant and Equipment, Net 2017 2016 2017 2016 United States $ 207,246 $ 215,053 $ 19,197 $ 24,517 International 400,556 370,117 14,976 14,036 Consolidated total $ 607,802 $ 585,170 $ 34,173 $ 38,553 (1) Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017. (2) Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations. ( 3 ) The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. ( 4 ) The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. ( 5 ) The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | NOTE 14 - QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents unaudited selected interim operating results of the Company for fiscal 2017 and 2016 (in thousands, except per share amounts): Quarter 1 st 2 nd 3 rd 4 th Fiscal 2017 Net sales $ 114,063 $ 128,086 $ 179,818 $ 130,785 Gross profit $ 61,317 $ 70,263 $ 98,550 $ 64,687 Income before income taxes $ 5,060 $ 9,796 $ 29,501 $ 7,097 Net income $ 3,337 $ 6,355 $ 20,215 $ 5,232 Net income attributed to Movado Group, Inc. $ 3,308 $ 6,306 $ 20,215 $ 5,232 Basic income per share: Net income attributed to Movado Group, Inc. $ 0.14 $ 0.27 $ 0.88 $ 0.23 Diluted income per share: Net income attributed to Movado Group, Inc. $ 0.14 $ 0.27 $ 0.87 $ 0.22 Fiscal 2016 Net sales $ 120,461 $ 145,569 $ 185,629 $ 143,264 Gross profit $ 62,449 $ 79,038 $ 100,092 $ 75,351 Income before income taxes $ 6,776 $ 18,013 $ 33,152 $ 11,184 Net income $ 3,641 $ 11,933 $ 21,910 $ 8,282 Net income attributed to Movado Group, Inc. $ 3,622 $ 12,053 $ 21,532 $ 7,888 Basic income per share: Net income attributed to Movado Group, Inc. $ 0.15 $ 0.51 $ 0.93 $ 0.34 Diluted income per share: Net income attributed to Movado Group, Inc. $ 0.15 $ 0.50 $ 0.92 $ 0.34 As each quarter is calculated as a discrete period, the sum of the four quarters may not equal the calculated full year amount. This is in accordance with prescribed reporting requirements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION The following is provided as supplemental information to the consolidated statements of cash flows (in thousands): Fiscal Year Ended January 31, 2017 2016 2015 Cash paid during the year for: Interest $ 1,121 $ 797 $ 226 Income taxes, net $ 22,768 $ 22,500 $ 12,493 Supplemental disclosures of non-cash investing activities: Additions to property, plant and equipment included in accrued liabilities $ 4 $ — $ 127 |
Net Income Attributed to Movado
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest | 12 Months Ended |
Jan. 31, 2017 | |
Net Income Attributable To Group And Transfers To Noncontrolling Interest [Abstract] | |
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest | NOTE 16 – NET INCOME ATTRIBUTED TO MOVADO GROUP, INC. AND TRANSFERS TO NONCONTROLLING INTEREST For Fiscal Year Ended January 31, 2017 2016 2015 Net income attributed to Movado Group, Inc. $ 35,061 $ 45,094 $ 51,776 Transfers to the noncontrolling interest Decrease in Movado Group, Inc.’s paid in capital for purchase of joint venture common shares (1,011 ) (3,613 ) — Net transfers to noncontrolling interest (1,011 ) (3,613 ) — Change from net income attributed to Movado Group, Inc. and transfers to noncontrolling interest $ 34,050 $ 41,481 $ 51,776 On August 4, 2016, Movado Group, Inc. and Majorelle Limited, an English company (“Majorelle”), voluntarily terminated the joint venture agreement they had entered into on January 30, 2013 (the “JV Agreement”) relating to MGS Distribution Limited, an English company (“MGS”). Under the JV Agreement, the Company and Majorelle owned 90% and 10%, respectively, of the issued and outstanding shares of MGS which had been formed to distribute the Company’s licensed watch brands in the United Kingdom. In connection with the mutual agreement to terminate the JV Agreement, the Company acquired the remaining shares in MGS from Majorelle, for the purchase price of $1.7 million, thereby increasing its ownership interest in MGS to 100%. Since August 4, 2016, the Company has accounted for MGS as a wholly-owned subsidiary. On January 6, 2016, Movado Group, Inc. and Financiere TWC SA (“TWC”), a French company with established distribution, marketing and sales operations in France and Germany, terminated the joint venture agreement they entered into on August 31, 2005 (the “JV Agreement”) relating to MGI-TWC B.V., a Dutch holding company that wholly owns MGI-TWC SAS, a French corporation, and MGI-TWC GmbH, a German corporation (collectively, the “Subsidiaries”). Under the JV Agreement, the Company and TWC controlled 51% and 49%, respectively, of MGI-TWC B.V. On January 6, 2016 the JV Agreement was terminated in connection with the acquisition by the Company of the outstanding 49% ownership interest in MGI-TWC B.V, for the purchase price of $5.6 million. Since that date, the Company has accounted for the Subsidiaries as wholly-owned entities. The Subsidiaries continue to be responsible for the marketing, distribution and sale in France and Germany of the Company's licensed HUGO BOSS, Lacoste, Scuderia Ferrari and Tommy Hilfiger brands, as well as future brands licensed to the Company, subject to the terms of the applicable license agreements. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Treasury Stock | NOTE 17 – TREASURY STOCK On March 31, 2016, the Board approved a share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock from time to time, depending on market conditions, share price and other factors. The Company may purchase shares of its common stock through open market purchases, repurchase programs, block trades or otherwise. This authorization expires on September 30, 2017. During the fiscal year ended January 31, 2017, the Company repurchased a total of 157,499 shares of its common stock at a total cost of approximately $3.9 million, or an average of $24.54 per share, which included 35,000 shares repurchased from the Movado Group Foundation at a total cost of approximately $1.0 million, or an average of $29.03 per share. During the fiscal year ended January 31, 2016, under a previously issued share repurchase program, the Company repurchased a total of 1,858,939 shares of its common stock at a total cost of approximately $48.7 million, or an average of $26.22 per share, which included 28,000 shares repurchased from the Movado Group Foundation at a total cost of approximately $0.8 million, or an average of $27.33 per share. There were 47,310 and 21,076 shares of common stock repurchased during the fiscal year ended January 31, 2017 and 2016, respectively, as a result of the surrender of shares in connection with the vesting of certain stock awards. At the election of an employee, shares having an aggregate value on the vesting date equal to the employee’s withholding tax obligation may be surrendered to the Company. |
Accounting Changes and Recent A
Accounting Changes and Recent Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Accounting Changes and Recent Accounting Pronouncements | NOTE 18 – ACCOUNTING CHANGES AND RECENT ACCOUNTING PRONOUNCEMENTS On April 15, 2015, FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. Under application of this guidance, if a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. A customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. The Company prospectively adopted the provisions of ASU 2015-05 during the first quarter of fiscal 2017, which had no material impact on the Company’s financial position, results of operations or cash flows. On January 5, 2017, FASB issued ASU 2017-01, “Business Combinations: Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. On November 17, 2016, FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash,” which addresses diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company has evaluated the effect of adopting this pronouncement, and plans to adopt the provisions of ASU 2016-18 retrospectively during the first quarter of fiscal 2019. Adopting this pronouncement will affect the presentation of restricted cash on the Company’s Statements of Cash Flows. On October 24, 2016, FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory,” which requires the tax effects of intercompany transactions to be recognized currently. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. On August 26, 2016, FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. On March 30, 2016, FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2016, although early adoption is permitted. The Company will adopt this guidance beginning in the first quarter of fiscal 2018. The Company will apply the change in the presentation on the cash flow statement retrospectively. In addition, the guidance allows for a policy election to account for forfeitures as they occur and the Company will continue to apply its policy of estimating forfeiture rates. The impact on the Company’s financial statements will be dependent on the timing of award vesting or exercises, the tax rate and the intrinsic value when awards vest or are exercised. On February 25, 2016, FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize most leases on the balance sheet. This change is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. The Company is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. On January 5, 2016, FASB issued ASU 2016-01, “Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities,” which enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. For public companies, the amendment is effective for annual periods beginning after December 15, 2017. Early adoption is permitted for only certain portions of the new guidance. The Company is evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. On July 22, 2015, FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which affects reporting entities that measure inventory using first-in, first-out or average cost. Specifically, the guidance requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption will not have a material impact on the Company’s consolidated financial statements. On May 28, 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This pronouncement affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, FASB deferred the effective date of the guidance. The new revenue standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and allows either a full retrospective adoption to all periods presented or a modified retrospective adoption approach with the cumulative effect of initial application of the revised guidance recognized at the date of initial application. Early adoption is permitted for periods beginning after December 15, 2016. On March 30, 2016, FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and accounting for licenses of intellectual property. On May 9, 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. The Company is assessing the impact of the guidance on its customer agreements by reviewing its current accounting policies and practices to identify potential differences that would result from applying the new requirements to its existing agreements, including evaluation of its performance obligations, return policy, customer payments and principal versus agent consideration. The Company will continue evaluating the impact, if any, on changes to the business processes, systems and controls to support recognition and disclosure under the new guidance. The Company is still evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. The Company expects to adopt the new guidance in the beginning of fiscal 2019. |
Operating Efficiency Initiative
Operating Efficiency Initiatives and Other Items | 12 Months Ended |
Jan. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Operating Efficiency Initiatives and Other Items | NOTE 19 – OPERATING EFFICIENCY INITIATIVES AND OTHER ITEMS In fiscal 2016, the Company commenced an initiative to achieve greater operating efficiencies and streamline its operations, primarily at certain of its foreign subsidiaries. In the first quarter of fiscal 2016, the Company recorded $2.7 million of pre-tax expenses primarily for severance, occupancy charges, and fixed assets. In the fourth quarter of fiscal 2016, the Company recorded an additional pre-tax charge of $1.3 million primarily related to severance and the write-off of unamortized shop-in-shops with no expected future value. The Company substantially completed the actions under this initiative as of January 31, 2016. A summary roll forward of costs related to the operating efficiency initiatives and other items is as follows (in thousands): Balance at January 31, 2016 Foreign exchange Non-cash adjustments Cash payments Accrued balance at January 31, 2017 Severance $ 631 $ 174 $ (78 ) $ (649 ) $ 78 Occupancy charges 359 129 (2 ) (156 ) 330 Total $ 990 $ 303 $ (80 ) $ (805 ) $ 408 |
Other Charges
Other Charges | 12 Months Ended |
Jan. 31, 2017 | |
Operating Expenses [Abstract] | |
Other Charges | NOTE 20 – OTHER CHARGES During the first quarter of fiscal 2017, the Company recorded $1.8 million in compensation related expenses in the United States location of the Wholesale segment associated with the retirement of the Company’s former Vice Chairman and Chief Operating Officer. The Company substantially completed all of the payments related to this charge as of January 31, 2017. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jan. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 21 – SUBSEQUENT EVENT On March 20, 2017, the Company announced cost savings initiatives to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability. The cost savings initiatives include a reduction in the Company’s workforce predominantly impacting the Company’s North American and Swiss operations. The Company expects to realize approximately $12.0 million of savings in fiscal 2018 and estimates approximately $15.0 million in on-going annual pre-tax savings from these initiatives, with the majority being in general and administrative expenses. The Company expects to record a pre-tax charge in connection with the completion of these initiatives in a range of approximately $7.0 to $10.0 million predominantly in the first quarter of fiscal 2018 with the balance throughout the remainder of the fiscal year. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II MOVADO GROUP, INC. VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Net provision Currency Net write-offs Balance at Year ended January 31, 2017: Doubtful accounts $ 4,274 $ 1,739 $ 52 $ (566 ) $ 5,499 Returns 10,856 30,075 10 (29,293 ) 11,648 Other sales allowances 4,179 8,749 (19 ) (8,950 ) 3,959 Total $ 19,309 $ 40,563 $ 43 $ (38,809 ) $ 21,106 Year ended January 31, 2016: Doubtful accounts $ 3,247 $ 2,251 $ (190 ) $ (1,034 ) $ 4,274 Returns 8,736 27,433 (147 ) (25,166 ) 10,856 Other sales allowances 5,068 6,459 (65 ) (7,283 ) 4,179 Total $ 17,051 $ 36,143 $ (402 ) $ (33,483 ) $ 19,309 Year ended January 31, 2015: Doubtful accounts $ 3,315 $ 1,188 $ (132 ) $ (1,124 ) $ 3,247 Returns 16,323 25,194 (87 ) (32,694 ) 8,736 Other sales allowances 3,462 6,372 (105 ) (4,661 ) 5,068 Total $ 23,100 $ 32,754 $ (324 ) $ (38,479 ) $ 17,051 Description Balance at Net provision Currency Adjustments Balance at Year ended January 31, 2017: Deferred tax asset valuation (1) $ 8,089 $ 716 $ 100 $ (191 ) $ 8,714 Year ended January 31, 2016: Deferred tax asset valuation (2) $ 8,307 $ 986 $ (636 ) $ (568 ) $ 8,089 Year ended January 31, 2015: Deferred tax asset valuation (3) $ 7,798 $ 1,281 $ (801 ) $ 29 $ 8,307 (1) The detail of adjustments is as follows: (2) The detail of adjustments is as follows: Prior year adjustments $ 89 Prior year adjustments $ 177 Reversal due to legal entity elimination (280 ) Expired tax losses (745 ) $ (191 ) $ (568 ) (3) The detail of adjustments is as follows: Prior year adjustments and tax rate changes $ 29 |
Significant Accounting Polici32
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Business | Organization and Business Movado Group, Inc. (together with its subsidiaries, the “Company”) designs, sources, markets and distributes quality watches with prominent brands in almost every price category comprising the watch industry. In fiscal 2017, the Company marketed nine distinct brands of watches: Coach, Concord, Ebel, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste, Movado, and Tommy Hilfiger. Movado (with the exception of certain Movado collections, including Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third party assemblers and are manufactured using Swiss movements. All of the Company’s products are manufactured using components obtained from third party suppliers. Certain Movado collections of watches, including Movado BOLD, are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Lacoste and Scuderia Ferrari watches are manufactured by independent contractors in Asia. In addition to its sales to trade customers and independent distributors, the Company also operates retail outlet locations throughout the United States, through which it sells discontinued models and factory seconds of all of the Company’s watches. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company uses estimates when accounting for sales discounts, returns, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, contingencies, impairments and asset and liability valuations. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The financial statements of the Company’s international subsidiaries have been translated into United States dollars by translating balance sheet accounts at year-end exchange rates and statement of operations accounts at average exchange rates for the year. Foreign currency transaction gains and losses are charged or credited to earnings as incurred. Foreign currency translation gains and losses are reflected in the equity section of the Company’s consolidated balance sheets in Accumulated Other Comprehensive Income. The balance of the foreign currency translation adjustment, included in Accumulated Other Comprehensive Income, was $76.6 million and $68.3 million as of January 31, 2017 and 2016, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. |
Trade Receivables | Trade Receivables Trade receivables as shown on the consolidated balance sheets are net of various allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historical trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The Company’s trade customers include department stores, jewelry store chains and independent jewelers. All of the Company’s watch brands, except ESQ Movado, are also marketed outside the U.S. through a network of independent distributors. Accounts receivable are stated net of doubtful accounts, returns and allowances of $18.9 million (additionally $2.2 million of allowances were recorded in non-current assets), $17.7 million (additionally $1.6 million of allowances were recorded in non-current assets) and $16.6 million (additionally $0.5 million of allowances were recorded in non-current assets) at January 31, 2017, 2016 and 2015, respectively. Accounts receivable are also stated net of co-operative advertising allowances of $7.8 million, $9.8 million, and $13.2 million at January 31, 2017, 2016, and 2015, respectively. Co-operative advertising allowances are credits taken by the customer at a future date on previously executed co-operative advertising. The Company’s concentrations of credit risk arise primarily from accounts receivable related to trade customers during the peak selling seasons. The Company has significant accounts receivable balances due from major national chain and department stores. The Company’s results of operations could be materially adversely affected in the event any of these customers or a group of these customers defaulted on all or a significant portion of their obligations to the Company as a result of financial difficulties. As of January 31, 2017, except for those accounts provided for in the reserve for doubtful accounts, the Company knew of no situations with any of the Company’s major customers which would indicate any such customer’s inability to make its required payments. In fiscal 2017, sales to Signet Jewelers Limited, and their respective affiliates, represented approximately 11.6% of the Company’s total net sales, and approximately 13.3% of the Company’s net sales in the Wholesale segment. |
Inventories | Inventories The Company values its inventory at the lower of cost or market. Cost is determined using the average cost method. The Company performs reviews of its on-hand inventory to determine amounts, if any, of inventory that is deemed discontinued, excess, or unsaleable. Inventory classified as discontinued, together with the related component parts which can be assembled into saleable finished goods, is sold primarily through the Company’s outlet stores. When management determines that finished product is unsaleable, could not be sold at net realizable value or that it is economically impractical to build the excess components into watches for sale, a charge is recorded to value those products and components at the lower of cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation of buildings is provided using the straight-line method based on the useful life of 40 years. Depreciation of furniture and equipment is provided using the straight-line method based on the estimated useful lives of assets, which range from four to ten years. Computer software is amortized using the straight-line method over the useful life of five to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the lease or the estimated useful life of the leasehold improvement. Design fees and tooling costs are amortized using the straight-line method based on the useful life of three years. Upon the disposition of property, plant and equipment, the accumulated depreciation is deducted from the original cost and any gain or loss is reflected in current earnings. |
Intangibles | Intangibles Intangible assets consist primarily of trademarks and developed technology and are recorded at cost. Trademarks and developed technology are amortized over a range from three to ten years. At January 31, 2017 and 2016, intangible assets at cost were $8.1 million and $7.9 million, respectively, and related accumulated amortization of intangibles was $6.8 million and $6.4 million, respectively. Amortization expense for fiscal 2017, 2016 and 2015 was $0.4 million, $0.3 million and $0.3 million, respectively. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the estimated useful lives of its property, plant and equipment and intangible assets based on factors including historical experience, the expected beneficial service period of the asset, the quality and durability of the asset and the Company’s maintenance policy including periodic upgrades. Changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. The Company performs an impairment review of its long-lived assets once events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable. When such a determination has been made, management compares the carrying value of the asset groups with their estimated future undiscounted cash flows. If it is determined that an impairment has occurred, the loss is recognized during that period. The impairment is calculated as the difference between asset carrying values and the fair value of the long-lived assets. |
Deferred Rent Obligations and Contributions from Landlords | Deferred Rent Obligations and Contributions from Landlords The Company accounts for rent expense under non-cancelable operating leases with scheduled rent increases on a straight-line basis over the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease retail store space from the landlords. This is also recorded as a deferred liability. Such amounts are amortized as a reduction of rent expense over the life of the related lease. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain computer software costs after technological feasibility has been established. The costs are amortized utilizing the straight-line method over the economic lives of the related products ranging from two to ten years. |
Derivative Financial Instruments | Derivative Financial Instruments The Company accounts for its derivative financial instruments in accordance with the accounting guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company also sells to third-party customers in a variety of foreign currencies, most notably the Euro and the British Pound. The Company reduces its exposure to the Swiss franc, Euro and British Pound exchange rate risks through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses forward contracts to further reduce the net exposures to currency fluctuations. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The earnings impact is mostly offset by the effects of currency movements on the underlying hedged transactions. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. The Company does not exclude any designated cash flow hedges from its effectiveness testing. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized as other income in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not designated as qualified hedges and, therefore, changes in the fair value of these derivatives are recognized in earnings in the period they arise, thereby offsetting the current earnings effect resulting from the revaluation of the related foreign currency receivables and liabilities. All of the Company’s derivative instruments have liquid markets to assess fair value. The Company does not enter into any derivative instruments for trading purposes. |
Revenue Recognition | Revenue Recognition In the Wholesale segment, the Company recognizes its revenues upon transfer of title and risk of loss in accordance with its FOB shipping point terms of sale and after the sales price is fixed and determinable and collectability is reasonably assured. In the Retail segment, transfer of title and risk of loss occurs at the time of register receipt. The Company records estimates for sales returns, volume-based programs and sales and cash discount allowances as a reduction of revenue in the same period that the sales are recorded. These estimates are based upon historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. While returns have historically been within the Company’s expectations and the provisions established, future return rates may differ from those experienced in the past. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. During the fourth quarter of fiscal 2016, the Company announced the launch of two distinct smart watch collections with iOS and Android compatible software apps: Movado Motion and Movado’s BOLD Motion. During the first quarter of fiscal 2017, the Company announced the expansion of its use of smartwatch technology to its licensed brands portfolio, including Coach, HUGO BOSS, Lacoste, Juicy Couture, Tommy Hilfiger, and Scuderia Ferrari. Smart watches contain hardware and software components. Software components consist of both firmware embedded in the physical watch as well as an app that will run on iOS and Android mobile devices. The hardware and software components function together to deliver the watches’ essential functionality. As typical with numerous consumer products containing embedded or companion software, updates to the software will be provided from time to time, when and if available. Updates are generally limited to bug fixes or enhancements that incrementally improve on the existing functionality. Arrangements, including those that combine hardware (watch) with software that function together to deliver the watch’s essential functionality, are considered multiple element arrangements and are subject to the accounting principles applicable to such arrangements. For multiple element arrangements that include smart watches containing software essential to the smart watch’s functionality and undelivered software elements (cloud service updates and app upgrades) that relate to the smart watch’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). Because the Company has neither VSOE nor TPE for the software elements, revenue is allocated to these rights and services based on the Company’s ESPs. ESPs for the software elements reflect the Company’s best estimate of the selling prices if they were sold regularly on a stand-alone basis. The Company has identified multiple deliverables contained in its smart watch collections. The first deliverable is the watch along with the software essential to the functionality of the watch delivered at the time of sale. The second deliverable is the software included free of charge that enables users to sync and view data on the Company’s mobile app. The third deliverable is the embedded right included with the purchase to receive unspecified firmware and software upgrades, when and if available. The Company allocates revenue to all deliverables using the relative selling price method. Amounts allocated to the delivered smart watch collections and the related essential software are recognized at the time of sale, provided the other conditions for revenue recognition have been met. Amounts allocated to the cloud service and app updates are deferred and recognized on a straight-line basis over the estimated two year period the updates are expected to be provided. During the fourth quarter of fiscal 2016, the Company launched its first smart watch collections, followed by additional smart watch launches during fiscal 2017. The smart watches were available in limited quantities and in limited distribution, and, as a result, these deferred amounts were immaterial as of January 31, 2017 and January 31, 2016. |
Cost of Sales | Cost of Sales Cost of sales of the Company’s products consist primarily of costs for raw materials, component costs, royalties, depreciation, amortization, assembly costs, design costs and unit overhead costs associated with the Company’s supply chain operations in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing in Switzerland and Asia and minor assembly in Switzerland. Since a substantial amount of the Company’s product costs are incurred in Swiss francs, fluctuations in the U.S. dollar/Swiss franc exchange rate can impact the Company’s cost of goods sold and, therefore, its gross margins. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company has the ability to hedge its Swiss franc purchases using a combination of forward contracts and purchased currency options. |
Selling, General and Administrative ("SG&A") Expenses | Selling, General and Administrative (“SG&A”) Expenses The Company’s SG&A expenses consist primarily of marketing, selling, distribution, general and administrative expenses. Marketing expenditures are based principally on overall strategic considerations relative to maintaining or increasing market share in markets that management considers to be crucial to the Company’s continued success as well as on general economic conditions in the various markets around the world in which the Company sells its products. Marketing expenses include salaries, various forms of media advertising, digital advertising and co-operative advertising with customers and distributors and other point of sale marketing and promotion spending. Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with Baselworld Watch and Jewelry Show, the annual watch and jewelry trade show, and other industry trade shows and operating costs incurred in connection with the Company’s retail business. Sales commissions vary with overall sales levels. Retail selling expenses consist primarily of payroll and related expenses and store occupancy costs. Distribution expenses consist primarily of salaries of distribution staff, rental and other occupancy costs, security, depreciation and amortization of furniture and leasehold improvements and shipping supplies. General and administrative expenses consist primarily of salaries and other employee compensation including performance based compensation, employee benefit plan costs, office rent, management information systems costs, professional fees, bad debts, depreciation and amortization of furniture, computer software and leasehold improvements, patent and trademark expenses and various other general corporate expenses. |
Warranty Costs | Warranty Costs All watches sold by the Company come with limited warranties covering the movement against defects in material and workmanship for periods ranging from two to three years from the date of purchase, with the exception of Tommy Hilfiger watches, for which the warranty period is ten years. In addition, the warranty period is five years for the gold plating for Movado watch cases and bracelets. When changes in warranty costs are experienced, the Company will adjust the warranty liability as required. The Company records an estimate for future warranty costs based on historical repair costs. Warranty costs have historically been within the Company’s expectations and the provisions established. Warranty liability for the fiscal years ended January 31, 2017, 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Balance, beginning of year $ 2,556 $ 2,710 $ 2,660 Provision charged to operations 2,092 1,630 2,710 Settlements made (1,920 ) (1,784 ) (2,660 ) Balance, end of year $ 2,728 $ 2,556 $ 2,710 |
Pre-opening Costs | Pre-opening Costs Costs associated with the opening of retail stores are expensed in the period incurred. |
Marketing | Marketing The Company expenses the production costs of an advertising campaign at the commencement date of the advertising campaign. Included in marketing expenses are costs associated with co-operative advertising, media advertising, digital advertising, production costs and costs of point of sale materials and displays. These costs are recorded as SG&A expenses. The Company participates in co-operative advertising programs on a voluntary basis and receives a “separately identifiable benefit in exchange for the consideration.” Since the amount of consideration paid to the retailer does not exceed the fair value of the benefit received by the Company, these costs are recorded as SG&A expenses as opposed to being recorded as a reduction of revenue. Marketing expense for fiscal 2017, 2016 and 2015 was $75.7 million, $77.6 million and $74.9 million, respectively. Included in other current assets in the consolidated balance sheets as of January 31, 2017 and 2016 are prepaid advertising costs of $0.5 million and $0.5 million, respectively. These prepaid costs represent advertising costs paid to licensors in advance, pursuant to the Company’s licensing agreements and sponsorships. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling were $1.9 million, $2.2 million and $2.4 million for fiscal years 2017, 2016 and 2015, respectively. The costs related to shipping and handling were $5.6 million, $6.5 million and $6.3 million for fiscal years 2017, 2016 and 2015, respectively. These amounts incurred by the Company related to shipping and handling are included in net sales and cost of goods sold. |
Collaborative Arrangement | Collaborative Arrangement The Company from time to time participates in collaborative arrangements. These types of arrangements typically involve one (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These arrangements usually involve various activities by one or more parties, including design, development, distribution and marketing. Amounts due between partners in the arrangement related to sales and related activities are generally recorded in the Company’s cost of sales while general and administrative activities are recorded as an adjustment to selling, general and administrative expenses. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and tax rates, in each jurisdiction where the Company operates, and applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. In addition, the amounts of any future tax benefits are reduced by a valuation allowance to the extent such benefits are not expected to be realized on a more-likely-than-not basis. The Company calculates estimated income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax expense along with assessing temporary differences resulting from differing treatment of items for both book and tax purposes. The Company follows guidance for accounting for uncertainty in income taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. This guidance also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. |
Earnings Per Share | Earnings Per Share The Company presents net income per share on a basic and diluted basis. Basic earnings per share is computed using weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents. The weighted-average number of shares outstanding for basic earnings per share were approximately 23,070,000, 23,525,000 and 25,276,000 for fiscal 2017, 2016 and 2015, respectively. For the fiscal years ended January 31, 2017, 2016 and 2015, the number of shares outstanding for diluted earnings per share were approximately 23,267,000, 23,774,000 and 25,581,000, respectively. For the fiscal years ended January 31, 2017, 2016 and 2015, the number of shares outstanding for diluted earnings per share included approximately 197,000, 249,000 and 305,000 due to potentially dilutive common stock equivalents issuable under the Company’s stock compensation plans. For the fiscal years ended January 31, 2017, 2016 and 2015 approximately 785,000, 637,000 and 102,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. |
Stock-Based Compensation | Stock-Based Compensation Under the accounting guidance for share-based payments, the Company utilizes the Black-Scholes option-pricing model which requires that certain assumptions be made to calculate the fair value of each option at the grant date. The expected life of stock option grants is determined using historical data and represents the time period during which the stock option is expected to be outstanding until it is exercised. The risk free interest rate is the yield on the grant date of U.S. Treasury constant maturities with a maturity date closest to the expected life of the stock option. The expected stock price volatility is derived from historical volatility and calculated based on the estimated term structure of the stock option grant. The expected dividend yield is calculated using the Company’s historical average of annualized dividend yields and applied over the expected term of the option. Compensation expense for equity instruments is accrued based on the estimated number of instruments for which the requisite service is expected to be rendered and expensed on a straight-line basis over the vesting term. |
Accounting Changes and Recent Accounting Pronouncements | On April 15, 2015, FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. Under application of this guidance, if a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. A customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. The Company prospectively adopted the provisions of ASU 2015-05 during the first quarter of fiscal 2017, which had no material impact on the Company’s financial position, results of operations or cash flows. On January 5, 2017, FASB issued ASU 2017-01, “Business Combinations: Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. On November 17, 2016, FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash,” which addresses diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company has evaluated the effect of adopting this pronouncement, and plans to adopt the provisions of ASU 2016-18 retrospectively during the first quarter of fiscal 2019. Adopting this pronouncement will affect the presentation of restricted cash on the Company’s Statements of Cash Flows. On October 24, 2016, FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory,” which requires the tax effects of intercompany transactions to be recognized currently. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. On August 26, 2016, FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. On March 30, 2016, FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2016, although early adoption is permitted. The Company will adopt this guidance beginning in the first quarter of fiscal 2018. The Company will apply the change in the presentation on the cash flow statement retrospectively. In addition, the guidance allows for a policy election to account for forfeitures as they occur and the Company will continue to apply its policy of estimating forfeiture rates. The impact on the Company’s financial statements will be dependent on the timing of award vesting or exercises, the tax rate and the intrinsic value when awards vest or are exercised. On February 25, 2016, FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize most leases on the balance sheet. This change is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. The Company is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. On January 5, 2016, FASB issued ASU 2016-01, “Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities,” which enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. For public companies, the amendment is effective for annual periods beginning after December 15, 2017. Early adoption is permitted for only certain portions of the new guidance. The Company is evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. On July 22, 2015, FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which affects reporting entities that measure inventory using first-in, first-out or average cost. Specifically, the guidance requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption will not have a material impact on the Company’s consolidated financial statements. On May 28, 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This pronouncement affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, FASB deferred the effective date of the guidance. The new revenue standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and allows either a full retrospective adoption to all periods presented or a modified retrospective adoption approach with the cumulative effect of initial application of the revised guidance recognized at the date of initial application. Early adoption is permitted for periods beginning after December 15, 2016. On March 30, 2016, FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and accounting for licenses of intellectual property. On May 9, 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. The Company is assessing the impact of the guidance on its customer agreements by reviewing its current accounting policies and practices to identify potential differences that would result from applying the new requirements to its existing agreements, including evaluation of its performance obligations, return policy, customer payments and principal versus agent consideration. The Company will continue evaluating the impact, if any, on changes to the business processes, systems and controls to support recognition and disclosure under the new guidance. The Company is still evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. The Company expects to adopt the new guidance in the beginning of fiscal 2019. |
Significant Accounting Polici33
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Warranty Liability | Warranty liability for the fiscal years ended January 31, 2017, 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Balance, beginning of year $ 2,556 $ 2,710 $ 2,660 Provision charged to operations 2,092 1,630 2,710 Settlements made (1,920 ) (1,784 ) (2,660 ) Balance, end of year $ 2,728 $ 2,556 $ 2,710 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): As of January 31, 2017 2016 Finished goods $ 112,297 $ 117,627 Component parts 38,482 41,041 Work-in-process 2,388 3,797 $ 153,167 $ 162,465 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, at cost, consisted of the following (in thousands): As of January 31, 2017 2016 Land and buildings $ 1,490 $ 1,574 Furniture and equipment 59,163 58,617 Computer software 32,077 31,747 Leasehold improvements 32,307 31,646 Design fees and tooling costs 1,787 1,399 126,824 124,983 Less: accumulated depreciation (92,651 ) (86,430 ) $ 34,173 $ 38,553 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value and Presentation of Derivatives | The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of January 31, 2017 and 2016 (in thousands): Asset Derivatives Liability Derivatives Balance 2017 2016 Balance 2017 2016 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current $ 145 $ 1 Accrued Liabilities $ 211 $ 1,163 Total Derivative Instruments $ 145 $ 1 $ 211 $ 1,163 Asset Derivatives Liability Derivatives Balance 2017 2016 Balance 2017 2016 Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current $ — $ 63 Accrued Liabilities $ — $ — Total Derivative Instruments $ — $ 63 $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 31, 2017 and 2016 (in thousands): Fair Value at January 31, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 309 $ — $ — $ 309 Short-term investment Other current assets 154 — — 154 SERP assets - employer Other non-current assets 1,091 — — 1,091 SERP assets - employee Other non-current assets 30,831 — — 30,831 Hedge derivatives Other current assets — 145 — 145 Total $ 32,385 $ 145 $ — $ 32,530 Liabilities: SERP liabilities - employee Other non-current liabilities $ 30,831 $ — $ — $ 30,831 Hedge derivatives Accrued liabilities — 211 — 211 Total $ 30,831 $ 211 $ — $ 31,042 Fair Value at January 31, 2016 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 268 $ — $ — $ 268 SERP assets - employer Other non-current assets 1,168 — — 1,168 SERP assets - employee Other non-current assets 24,853 — — 24,853 Hedge derivatives Other current assets — 64 — 64 Total $ 26,289 $ 64 $ — $ 26,353 Liabilities: SERP liabilities - employee Other non-current liabilities $ 24,853 $ — $ — $ 24,853 Hedge derivatives Accrued liabilities — 1,163 — 1,163 Total $ 24,853 $ 1,163 $ — $ 26,016 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Provision for Income Taxes | Income before provision for income taxes on a legal entity basis consists of the following (in thousands): 2017 2016 2015 U.S. income before taxes $ 26,299 $ 44,384 $ 34,099 Non-U.S. income before taxes 25,155 24,741 37,065 Income before income taxes $ 51,454 $ 69,125 $ 71,164 |
Schedule of Income Taxes Provision for Continuing Operations | The provision for income taxes for the fiscal years ended January 31, 2017, 2016 and 2015 consists of the following components (in thousands): 2017 2016 2015 Current: U.S. Federal $ 14,079 $ 17,776 $ 8,412 U.S. State and Local 1,117 1,434 770 Non-U.S. 5,091 5,291 3,945 20,287 24,501 13,127 Deferred: U.S. Federal (4,231 ) (1,995 ) 3,763 U.S. State and Local (167 ) (228 ) 420 Non-U.S. 426 1,082 1,954 (3,972 ) (1,141 ) 6,137 Provision for income taxes $ 16,315 $ 23,360 $ 19,264 |
Schedule of Significant Components of Deferred Income Tax Assets and Liabilities | Significant components of the Company’s deferred income tax assets and liabilities as of January 31, 2017 and 2016 are as follows (in thousands): 2017 Deferred Taxes 2016 Deferred Taxes Assets Liabilities Assets Liabilities Net operating loss carryforwards $ 10,516 $ — $ 9,182 $ — Inventory 3,782 — 3,103 — Unprocessed returns 1,200 — 1,538 — Receivables allowances 1,151 — 847 — Deferred compensation 18,955 — 16,286 — Unrepatriated earnings — 2,956 — 2,877 Capital loss carryforwards 389 216 — Depreciation/amortization — 1,245 — 1,234 Other provisions/accruals 207 — 200 — Miscellaneous 955 — 992 — 37,155 4,201 32,364 4,111 Valuation allowance (8,714 ) — (8,089 ) — Total deferred tax assets and liabilities $ 28,441 $ 4,201 $ 24,275 $ 4,111 |
Schedule of Income Taxes Provision for Continuing Operations by Applying U.S. Federal Statutory Rate | The provision for income taxes differs from the U.S. federal statutory rate due to the following (in thousands): Fiscal Year Ended January 31, 2017 2016 2015 Provision for income taxes at the U.S. statutory rate $ 18,009 $ 24,194 $ 24,906 Lower effective non-U.S. income tax rate (4,725 ) (4,463 ) (7,257 ) Change in valuation allowance 828 986 1,298 U.S. tax provided on earnings of non-U.S. subsidiaries 541 1,029 639 Change in liabilities for uncertain tax positions, net 215 (98 ) 179 State and local taxes, net of federal benefit 617 1,234 693 (Benefit) provided on intercompany transactions — — (1,652 ) Other, net 830 478 458 Total provision for income taxes $ 16,315 $ 23,360 $ 19,264 |
Schedule of Reconciliation of Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (exclusive of interest) for the fiscal years ended January 31, 2017, 2016 and 2015 are as follows (in thousands): 2017 2016 2015 Beginning balance $ 2,481 $ 2,657 $ 2,740 Additions for tax positions taken in the current year 142 175 128 Lapse of statute of limitations — (311 ) (34 ) Non U.S. currency exchange fluctuations (4 ) (40 ) (177 ) Ending balance $ 2,619 $ 2,481 $ 2,657 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Leases [Abstract] | |
Schedule of Minimum Annual Rentals under Noncancelable Operating Leases | Minimum annual rentals under noncancelable operating leases as of January 31, 2017, excluding real estate taxes and operating costs, are as follows (in thousands): Fiscal Year Ending January 31, 2018 $ 13,097 2019 9,013 2020 5,301 2021 3,558 2022 3,282 Thereafter 13,288 $ 47,539 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Transactions for Stock Options Under Plan | Transactions for stock options under the Plan since fiscal 2014 are summarized as follows: Outstanding Weighted- January 31, 2014 599,406 $ 26.24 Options granted 116,880 $ 41.71 Options exercised (86,066 ) $ 19.75 Options cancelled (14,000 ) $ 26.59 January 31, 2015 616,220 $ 30.08 Options granted 126,880 $ 30.36 Options exercised (28,450 ) $ 21.49 Options cancelled (15,050 ) $ 33.32 January 31, 2016 699,600 $ 30.41 Options granted 200,346 $ 26.97 Options exercised (40,588 ) $ 25.68 Options cancelled — $ — January 31, 2017 859,358 $ 29.83 |
Schedule of Outstanding and Exercisable Stock Options | The following table summarizes outstanding and exercisable stock options as of January 31, 2017: Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $21.03 - $24.02 93,750 3.4 $ 22.09 68,750 $ 22.29 $24.03 - $27.02 183,612 5.2 $ 26.59 183,612 $ 26.59 $27.03 - $30.02 175,346 9.2 $ 27.74 — $ — $30.03 - $33.02 293,570 5.6 $ 30.98 196,040 $ 31.28 $33.03 - $42.02 29,780 7.4 $ 40.52 19,853 $ 40.52 $42.03 - $45.02 83,300 7.2 $ 42.12 14,000 $ 42.12 859,358 5.7 $ 29.83 482,255 $ 28.91 |
Schedule of Transactions for Restricted Stock Units Under Plan | Transactions for stock award units under the Plan since fiscal 2014 are summarized as follows: Number of Stock Award Weighted- January 31, 2014 303,170 $ 24.84 Units granted 164,122 $ 41.32 Units vested (118,368 ) $ 18.66 Units forfeited (11,568 ) $ 33.58 January 31, 2015 337,356 $ 34.72 Units granted 136,310 $ 29.48 Units vested (83,578 ) $ 29.99 Units forfeited (15,490 ) $ 35.70 January 31, 2016 374,598 $ 33.83 Units granted 187,777 $ 27.76 Units vested (170,010 ) $ 31.85 Units forfeited (11,207 ) $ 34.50 January 31, 2017 381,158 $ 31.71 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income at January 31, consisted of the following (in thousands): Currency Translation Available- Hedging Total Balance, January 31, 2016 $ 68,265 $ 189 $ 51 $ 68,505 Other comprehensive income / (loss) before 8,389 8 (408 ) 7,989 Amounts reclassified from (85 ) — 371 286 Net current-period other 8,304 8 (37 ) 8,275 Balance, January 31, 2017 $ 76,569 $ 197 $ 14 $ 76,780 Currency Translation Available- Hedging Total Balance, January 31, 2015 $ 98,642 $ 211 $ 1 $ 98,854 Other comprehensive (loss) / (30,377 ) (22 ) 50 (30,349 ) Amounts reclassified from — — — — Net current-period other (30,377 ) (22 ) 50 (30,349 ) Balance, January 31, 2016 $ 68,265 $ 189 $ 51 $ 68,505 (1) Amounts in fiscal 2017 and 2016 were reclassified to earnings in the Consolidated Statements of Operations. |
Segment and Geographic Inform42
Segment and Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Data | Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (3) 2017 2016 2015 Wholesale: Luxury brands category $ 205,396 $ 219,012 $ 212,684 Licensed brands category 265,137 297,227 294,316 After-sales service and all other 13,911 13,770 15,260 Total Wholesale 484,444 530,009 522,260 Retail 68,308 64,914 64,720 Consolidated total $ 552,752 $ 594,923 $ 586,980 Operating Income 2017 2016 2015 Wholesale $ 41,773 $ 58,242 $ 58,236 Retail 12,208 11,865 13,251 Consolidated total $ 53,981 $ 70,107 $ 71,487 Total Assets Capital Expenditures 2017 2016 2017 2016 2015 Wholesale $ 584,518 $ 562,547 $ 5,666 $ 5,902 $ 9,321 Retail 23,284 22,623 254 2,168 1,811 Consolidated total $ 607,802 $ 585,170 $ 5,920 $ 8,070 $ 11,132 Depreciation and Amortization 2017 2016 2015 Wholesale $ 9,875 $ 11,561 $ 11,053 Retail 1,632 1,595 1,416 Consolidated total $ 11,507 $ 13,156 $ 12,469 |
Geographic Segment Data | Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (3) Operating Income 2017 2016 2015 2017 2016 2015 United States $ 296,311 $ 326,206 $ 320,425 $ 16,917 $ 29,867 $ 18,811 International 256,441 268,717 266,555 37,064 40,240 52,676 Consolidated total $ 552,752 $ 594,923 $ 586,980 $ 53,981 $ 70,107 $ 71,487 Total Assets Property, Plant and Equipment, Net 2017 2016 2017 2016 United States $ 207,246 $ 215,053 $ 19,197 $ 24,517 International 400,556 370,117 14,976 14,036 Consolidated total $ 607,802 $ 585,170 $ 34,173 $ 38,553 (1) Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017. (2) Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations. ( 3 ) The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. ( 4 ) The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. ( 5 ) The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Quarterly Financial Data (Una43
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Selected Interim Operating Results | The following table presents unaudited selected interim operating results of the Company for fiscal 2017 and 2016 (in thousands, except per share amounts): Quarter 1 st 2 nd 3 rd 4 th Fiscal 2017 Net sales $ 114,063 $ 128,086 $ 179,818 $ 130,785 Gross profit $ 61,317 $ 70,263 $ 98,550 $ 64,687 Income before income taxes $ 5,060 $ 9,796 $ 29,501 $ 7,097 Net income $ 3,337 $ 6,355 $ 20,215 $ 5,232 Net income attributed to Movado Group, Inc. $ 3,308 $ 6,306 $ 20,215 $ 5,232 Basic income per share: Net income attributed to Movado Group, Inc. $ 0.14 $ 0.27 $ 0.88 $ 0.23 Diluted income per share: Net income attributed to Movado Group, Inc. $ 0.14 $ 0.27 $ 0.87 $ 0.22 Fiscal 2016 Net sales $ 120,461 $ 145,569 $ 185,629 $ 143,264 Gross profit $ 62,449 $ 79,038 $ 100,092 $ 75,351 Income before income taxes $ 6,776 $ 18,013 $ 33,152 $ 11,184 Net income $ 3,641 $ 11,933 $ 21,910 $ 8,282 Net income attributed to Movado Group, Inc. $ 3,622 $ 12,053 $ 21,532 $ 7,888 Basic income per share: Net income attributed to Movado Group, Inc. $ 0.15 $ 0.51 $ 0.93 $ 0.34 Diluted income per share: Net income attributed to Movado Group, Inc. $ 0.15 $ 0.50 $ 0.92 $ 0.34 |
Supplemental Cash Flow Inform44
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Information to Consolidated Statements of Cash Flows | The following is provided as supplemental information to the consolidated statements of cash flows (in thousands): Fiscal Year Ended January 31, 2017 2016 2015 Cash paid during the year for: Interest $ 1,121 $ 797 $ 226 Income taxes, net $ 22,768 $ 22,500 $ 12,493 Supplemental disclosures of non-cash investing activities: Additions to property, plant and equipment included in accrued liabilities $ 4 $ — $ 127 |
Net Income Attributed to Mova45
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Net Income Attributable To Group And Transfers To Noncontrolling Interest [Abstract] | |
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest | For Fiscal Year Ended January 31, 2017 2016 2015 Net income attributed to Movado Group, Inc. $ 35,061 $ 45,094 $ 51,776 Transfers to the noncontrolling interest Decrease in Movado Group, Inc.’s paid in capital for purchase of joint venture common shares (1,011 ) (3,613 ) — Net transfers to noncontrolling interest (1,011 ) (3,613 ) — Change from net income attributed to Movado Group, Inc. and transfers to noncontrolling interest $ 34,050 $ 41,481 $ 51,776 |
Operating Efficiency Initiati46
Operating Efficiency Initiatives and Other Items (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Costs Related to Operating Efficiency Initiatives and Other Items | A summary roll forward of costs related to the operating efficiency initiatives and other items is as follows (in thousands): Balance at January 31, 2016 Foreign exchange Non-cash adjustments Cash payments Accrued balance at January 31, 2017 Severance $ 631 $ 174 $ (78 ) $ (649 ) $ 78 Occupancy charges 359 129 (2 ) (156 ) 330 Total $ 990 $ 303 $ (80 ) $ (805 ) $ 408 |
Significant Accounting Polici47
Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017USD ($)Brandsshares | Jan. 31, 2016USD ($)shares | Jan. 31, 2015USD ($)shares | |
Significant Accounting Policies [Line Items] | |||
Number of brand the company marketed | Brands | 9 | ||
Accumulated other comprehensive income, foreign currency translation adjustment | $ 76.6 | $ 68.3 | |
Maturity date | 3 months | ||
Accounts receivable, net of doubtful accounts, returns and allowances | $ 18.9 | 17.7 | $ 16.6 |
Additional allowances of accounts receivable recorded in non-current assets | 2.2 | 1.6 | 0.5 |
Accounts receivable net of co operative advertising allowances | 7.8 | 9.8 | 13.2 |
Intangible assets at cost | 8.1 | 7.9 | |
Accumulated amortization of intangibles | 6.8 | 6.4 | |
Amortization expense | $ 0.4 | 0.3 | 0.3 |
Deferred revenue expected to be recognized, period | 2 years | ||
Marketing expenses | $ 75.7 | 77.6 | 74.9 |
Prepaid advertising cost included in other current asset | 0.5 | 0.5 | |
Shipping and handling customers charges | 1.9 | 2.2 | 2.4 |
Shipping, handling and transportation costs | $ 5.6 | $ 6.5 | $ 6.3 |
Weighted basic average shares outstanding | shares | 23,070,000 | 23,525,000 | 25,276,000 |
Number of shares outstanding for diluted earnings per share | shares | 23,267,000 | 23,774,000 | 25,581,000 |
Number of shares included in outstanding for diluted earnings per share | shares | 197,000 | 249,000 | 305,000 |
Dilutive common stock equivalents were excluded from the computation of dilutive earnings per share | shares | 785,000 | 637,000 | 102,000 |
Tommy Hilfiger Watches | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 10 years | ||
Movado Watch Cases And Bracelets | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 5 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 2 years | ||
Minimum | Trademarks and Developed Technology | |||
Significant Accounting Policies [Line Items] | |||
Intangible Asset, Useful Life | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 3 years | ||
Maximum | Trademarks and Developed Technology | |||
Significant Accounting Policies [Line Items] | |||
Intangible Asset, Useful Life | 10 years | ||
Building | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 40 years | ||
Furniture and equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 4 years | ||
Furniture and equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 10 years | ||
Computer software | |||
Significant Accounting Policies [Line Items] | |||
Amortization expense | $ 3.5 | $ 3.5 | $ 3 |
Computer software | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 5 years | ||
Computer software | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 10 years | ||
Design Fees and Tooling Cost | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 3 years | ||
Capitalized Software Cost | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 2 years | ||
Capitalized Software Cost | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property Plant And Equipment Useful Life | 10 years | ||
Signet Jewelers Limited | Total net sales | |||
Significant Accounting Policies [Line Items] | |||
Percentage of sales represented approximately | 11.60% | ||
Wholesale | Signet Jewelers Limited | Total net sales | |||
Significant Accounting Policies [Line Items] | |||
Percentage of sales represented approximately | 13.30% |
Significant Accounting Polici48
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of warranty liability | |||
Balance, beginning of year | $ 2,556 | $ 2,710 | $ 2,660 |
Provision charged to operations | 2,092 | 1,630 | 2,710 |
Settlements made | (1,920) | (1,784) | (2,660) |
Balance, end of year | $ 2,728 | $ 2,556 | $ 2,710 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Inventory Net [Abstract] | ||
Finished goods | $ 112,297 | $ 117,627 |
Component parts | 38,482 | 41,041 |
Work-in-process | 2,388 | 3,797 |
Inventories | $ 153,167 | $ 162,465 |
Property, Plant and Equipment50
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 126,824 | $ 124,983 |
Less: accumulated depreciation | (92,651) | (86,430) |
Property, plant and equipment, net | 34,173 | 38,553 |
Land and buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,490 | 1,574 |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 59,163 | 58,617 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,077 | 31,747 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,307 | 31,646 |
Design fees and tooling costs | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,787 | $ 1,399 |
Property, Plant and Equipment51
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 11,507 | $ 13,156 | $ 12,469 |
Amortization expense | 400 | 300 | 300 |
Property, Plant and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 11,900 | 12,400 | 11,900 |
Computer software | |||
Property Plant And Equipment [Line Items] | |||
Amortization expense | $ 3,500 | $ 3,500 | $ 3,000 |
Debt and Lines of Credit (Detai
Debt and Lines of Credit (Details Textual) | 12 Months Ended | ||||
Jan. 31, 2017USD ($)CreditFacilityBankSubsidiary | Jan. 31, 2017CHF (SFr)CreditFacilityBankSubsidiary | Jan. 31, 2016USD ($)BankSubsidiary | Jan. 31, 2016CHF (SFr)BankSubsidiary | Jan. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Outstanding balance under facility, current | $ 5,000,000 | $ 5,000,000 | |||
Number of issued standby letter of credit | CreditFacility | 2 | 2 | |||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Consolidated Earnings Before Interest Tax Depreciation And Amortization | $ 50,000,000 | ||||
Secured Debt | Credit Agreement Due on January 30, 2020 | |||||
Debt Instrument [Line Items] | |||||
Letter of credit outstanding amount | $ 300,000 | ||||
Secured Debt | Credit Agreement Due on January 30, 2020 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 2.50% | 2.50% | |||
Unsecured Debt | Swiss subsidiary | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 6,600,000 | SFr 6,500,000 | 4,900,000 | SFr 5,000,000 | |
Outstanding borrowing amount | $ 0 | $ 0 | |||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Uncommitted increase to borrowing capacity | 50,000,000 | ||||
Credit facility matures date | Jan. 30, 2020 | ||||
Loan drawn under the facility | $ 30,000,000 | ||||
Line of credit facility remaining borrowing capacity | 69,700,000 | ||||
Outstanding balance under facility, current | $ 5,000,000 | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 1.25% | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 1.25% | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 1.75% | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 0.25% | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 0.25% | ||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on January 30, 2020 | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin rate | 0.75% | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility matures date | May 31, 2017 | ||||
Outstanding borrowing amount | $ 300,000 | ||||
Letter of Credit | Secured Debt | Credit Agreement Due on January 30, 2020 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||
Line of Credit | Unsecured Debt | Swiss subsidiary | |||||
Debt Instrument [Line Items] | |||||
Number of European banks guaranteed obligations to third parties | Bank | 2 | 2 | 2 | 2 | |
Number of foreign subsidiaries under guaranteed obligation | Subsidiary | 2 | 2 | 2 | 2 | |
Guaranteed obligations to third parties | $ 1,200,000 | $ 1,000,000 | |||
Restricted deposit relates to lease agreement | $ 600,000 | $ 400,000 |
Derivative Financial Instrume53
Derivative Financial Instruments (Details Textual) - 12 months ended Jan. 31, 2017 $ in Millions | USD ($) | CHF (SFr) | EUR (€) | GBP (£) |
Derivatives Fair Value [Line Items] | ||||
Maximum length of time hedged in cash flow hedge | 24 months | |||
Net change in effective portion of hedging contracts | $ 0.4 | |||
Net change in effective portion of hedging contracts, tax | $ 0.1 | |||
Foreign Exchange Forward | ||||
Derivatives Fair Value [Line Items] | ||||
Net forward contracts hedging portfolio | SFr 20,000,000 | € 5,900,000 | £ 4,800,000 | |
Maximum | ||||
Derivatives Fair Value [Line Items] | ||||
Expiry dates ranging | Jul. 6, 2017 |
Derivative Financial Instrume54
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Designated as Hedging Instrument | ||
Fair value and presentation of derivatives | ||
Asset Derivatives | $ 63 | |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Fair value and presentation of derivatives | ||
Asset Derivatives | 63 | |
Not Designated as Hedging Instrument | ||
Fair value and presentation of derivatives | ||
Asset Derivatives | $ 145 | 1 |
Liability Derivatives | 211 | 1,163 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Fair value and presentation of derivatives | ||
Asset Derivatives | 145 | 1 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | ||
Fair value and presentation of derivatives | ||
Liability Derivatives | $ 211 | $ 1,163 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Assets: | ||
Total assets measured at fair value | $ 32,530 | $ 26,353 |
Liabilities: | ||
Total liabilities measured at fair value | 31,042 | 26,016 |
Other Current Assets | Available-for-sale securities | ||
Assets: | ||
Total assets measured at fair value | 309 | 268 |
Other Current Assets | Short-term investment | ||
Assets: | ||
Total assets measured at fair value | 154 | |
Other Current Assets | Hedge derivatives-Assets | ||
Assets: | ||
Total assets measured at fair value | 145 | 64 |
Other non-current assets | SERP assets - employer | ||
Assets: | ||
Total assets measured at fair value | 1,091 | 1,168 |
Other non-current assets | SERP assets - employee | ||
Assets: | ||
Total assets measured at fair value | 30,831 | 24,853 |
Other non-current liabilities | SERP liabilities - employee | ||
Liabilities: | ||
Total liabilities measured at fair value | 30,831 | 24,853 |
Accrued Liabilities | Hedge derivatives-Liabilities | ||
Liabilities: | ||
Total liabilities measured at fair value | 211 | 1,163 |
Level 1 | ||
Assets: | ||
Total assets measured at fair value | 32,385 | 26,289 |
Liabilities: | ||
Total liabilities measured at fair value | 30,831 | 24,853 |
Level 1 | Other Current Assets | Available-for-sale securities | ||
Assets: | ||
Total assets measured at fair value | 309 | 268 |
Level 1 | Other Current Assets | Short-term investment | ||
Assets: | ||
Total assets measured at fair value | 154 | |
Level 1 | Other non-current assets | SERP assets - employer | ||
Assets: | ||
Total assets measured at fair value | 1,091 | 1,168 |
Level 1 | Other non-current assets | SERP assets - employee | ||
Assets: | ||
Total assets measured at fair value | 30,831 | 24,853 |
Level 1 | Other non-current liabilities | SERP liabilities - employee | ||
Liabilities: | ||
Total liabilities measured at fair value | 30,831 | 24,853 |
Level 2 | ||
Assets: | ||
Total assets measured at fair value | 145 | 64 |
Liabilities: | ||
Total liabilities measured at fair value | 211 | 1,163 |
Level 2 | Other Current Assets | Hedge derivatives-Assets | ||
Assets: | ||
Total assets measured at fair value | 145 | 64 |
Level 2 | Accrued Liabilities | Hedge derivatives-Liabilities | ||
Liabilities: | ||
Total liabilities measured at fair value | $ 211 | $ 1,163 |
Fair Value Measurements (Deta56
Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2017 | Jul. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Cost method investments, carrying value | $ 0 | $ 1,300,000 |
Other than temporary impairment charge | 1,282,000 | |
Other Expense | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Other than temporary impairment charge | $ 1,300,000 | |
Short-term investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value, investment | The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of a percent calculated annually |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. income before taxes | $ 26,299 | $ 44,384 | $ 34,099 | ||||||||
Non-U.S. income before taxes | 25,155 | 24,741 | 37,065 | ||||||||
Income before income taxes | $ 7,097 | $ 29,501 | $ 9,796 | $ 5,060 | $ 11,184 | $ 33,152 | $ 18,013 | $ 6,776 | $ 51,454 | $ 69,125 | $ 71,164 |
Income Tax (Details 1)
Income Tax (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Current: | |||
U.S. Federal | $ 14,079 | $ 17,776 | $ 8,412 |
U.S. State and Local | 1,117 | 1,434 | 770 |
Non-U.S. | 5,091 | 5,291 | 3,945 |
Total current | 20,287 | 24,501 | 13,127 |
Deferred: | |||
U.S. Federal | (4,231) | (1,995) | 3,763 |
U.S. State and Local | (167) | (228) | 420 |
Non-U.S. | 426 | 1,082 | 1,954 |
Total deferred | (3,972) | (1,141) | 6,137 |
Provision for income taxes | $ 16,315 | $ 23,360 | $ 19,264 |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Deferred Taxes Assets | ||
Net operating loss carryforwards, Assets | $ 10,516 | $ 9,182 |
Inventory, Assets | 3,782 | 3,103 |
Unprocessed returns, Assets | 1,200 | 1,538 |
Receivables allowances, Assets | 1,151 | 847 |
Deferred compensation, Assets | 18,955 | 16,286 |
Capital loss carryforwards, Assets | 389 | 216 |
Other provisions/accruals, Assets | 207 | 200 |
Miscellaneous, Assets | 955 | 992 |
Total, Assets | 37,155 | 32,364 |
Valuation allowance, Assets | (8,714) | (8,089) |
Total deferred tax assets and liabilities | 28,441 | 24,275 |
Deferred Taxes Liabilities | ||
Unrepatriated earnings, Liabilities | 2,956 | 2,877 |
Depreciation / amortization, Liabilities | 1,245 | 1,234 |
Total, Liabilities | 4,201 | 4,111 |
Total deferred tax assets and liabilities | $ 4,201 | $ 4,111 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Tax expense (benefits) recorded in additional paid in capital | $ 300,000 | $ 0 | $ 1,300,000 |
Effective tax rate for continuing operations | 31.70% | 33.80% | 27.10% |
Deferred tax liabilities | $ 4,201,000 | $ 4,111,000 | |
Deferred tax liabilities, undistributed foreign earnings | 2,956,000 | 2,877,000 | |
Unrecognized tax benefits which would impact the Company's effective tax rate | 2,600,000 | 2,400,000 | $ 2,500,000 |
Accrued interest and penalties net of tax benefits | 700,000 | 600,000 | 700,000 |
Accrued interest and penalties net of tax benefits | 100,000 | $ 100,000 | $ 100,000 |
Domestic Country | |||
Income Tax Contingency [Line Items] | |||
Operating Loss carryforwards | 0 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating Loss carryforwards | 9,300,000 | ||
Operating loss carryforwards, valuation allowance | 100,000 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating Loss carryforwards | 38,100,000 | ||
Operating loss carryforwards, valuation allowance | 8,600,000 | ||
Deferred tax liabilities | 3,000,000 | ||
Pre-2013 foreign earnings earmarked for future repatriation | 12,700,000 | ||
Deferred tax liabilities, undistributed foreign earnings | 307,000,000 | ||
Swiss subsidiary | |||
Income Tax Contingency [Line Items] | |||
Operating Loss carryforwards | $ 15,900,000 | ||
Minimum | |||
Income Tax Contingency [Line Items] | |||
Expiration periods | 1 year | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Expiration periods | 19 years | ||
Possible decrease in unrecognized tax benefits within the next 12 months | $ 600,000 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of income taxes provision / (benefit) for continuing operations by applying U.S. federal statutory rate | |||
Provision for income taxes at the U.S. statutory rate | $ 18,009 | $ 24,194 | $ 24,906 |
Lower effective non-U.S. income tax rate | (4,725) | (4,463) | (7,257) |
Change in valuation allowance | 828 | 986 | 1,298 |
U.S. tax provided on earnings of non-U.S. subsidiaries | 541 | 1,029 | 639 |
Change in liabilities for uncertain tax positions, net | 215 | (98) | 179 |
State and local taxes, net of federal benefit | 617 | 1,234 | 693 |
(Benefit) provided on intercompany transactions | (1,652) | ||
Other, net | 830 | 478 | 458 |
Provision for income taxes | $ 16,315 | $ 23,360 | $ 19,264 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of reconciliation of beginning and ending amounts of gross unrecognized tax benefits | |||
Beginning balance | $ 2,481 | $ 2,657 | $ 2,740 |
Additions for tax positions taken in the current year | 142 | 175 | 128 |
Lapse of statute of limitations | (311) | (34) | |
Non U.S. currency exchange fluctuations | (4) | (40) | (177) |
Ending balance | $ 2,619 | $ 2,481 | $ 2,657 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Leases [Abstract] | |||
Operating lease expiration period | 2027-02 | ||
Rent expense from continuing operations | $ 14.2 | $ 13.5 | $ 13.5 |
Leases (Details)
Leases (Details) $ in Thousands | Jan. 31, 2017USD ($) |
Minimum annual rentals under non-cancelable operating leases | |
2,018 | $ 13,097 |
2,019 | 9,013 |
2,020 | 5,301 |
2,021 | 3,558 |
2,022 | 3,282 |
Thereafter | 13,288 |
Total operating leases | $ 47,539 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jan. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Amount of minimum commitments related to license agreements and endorsement agreements | $ 116.8 | |
Outstanding purchase obligations with supplier | 68.8 | |
Underpaid duty charges due to alternative duty methodology | $ 5.1 | |
Underpaid duty methodology period covered by statute of limitation | 5 years | |
Other Current Assets | ||
Loss Contingencies [Line Items] | ||
Restricted cash deposits | $ 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) | Apr. 04, 2013 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 6 years | 5 years | 5 years | |
Risk-free interest rate | 1.42% | 1.34% | 1.64% | |
Expected volatility | 47.81% | 48.77% | 51.13% | |
Dividend yield | 1.01% | 0.81% | 0.68% | |
Weighted-average grant date fair value of options granted | $ 11.17 | $ 12.31 | $ 17.99 | |
Compensation expense | $ 1,300,000 | $ 1,100,000 | $ 1,200,000 | |
Compensation expense, net of tax | 800,000 | 600,000 | 700,000 | |
Unrecognized compensation cost related to unvested stock options | $ 2,100,000 | |||
Weighted-average period | 1 year 9 months 18 days | |||
Cash received for stock option exercises | $ 1,000,000 | 600,000 | 1,700,000 | |
Realized tax expense | 100,000 | |||
Fair value of stock options exercised | 200,000 | 200,000 | 1,600,000 | |
Fair value of the stock options vested | 2,000,000 | 2,900,000 | 0 | |
Intrinsic value of outstanding stock options | 600,000 | 300,000 | 200,000 | |
Intrinsic value of exercisable stock options | 400,000 | 300,000 | 200,000 | |
Stock Award Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | 3,200,000 | 2,700,000 | 2,400,000 | |
Compensation expense, net of tax | $ 2,000,000 | 1,700,000 | 1,500,000 | |
Weighted-average period | 1 year 8 months 12 days | |||
Unrecognized compensation cost | $ 5,100,000 | |||
Fair value of stock award units vested | $ 4,800,000 | $ 2,500,000 | $ 4,900,000 | |
Units granted, Weighted Average Grant Date Fair Value | $ 27.76 | $ 29.48 | $ 41.32 | |
Fair value of unvested stock award units | $ 10,300,000 | $ 9,600,000 | $ 8,100,000 | |
Realized tax expense on vested stock awards | $ 200,000 | |||
Employee Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock shares | 11,000,000 | |||
Minimum | Stock Award Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock awards vesting period | 3 years | |||
Minimum | Employee Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted to participants exercisable period | 3 years | |||
Maximum | Stock Award Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock awards vesting period | 5 years | |||
Maximum | Employee Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted to participants exercisable period | 5 years |
Stock-Based Compensation (Det67
Stock-Based Compensation (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of transactions for stock options under Plan | |||
Outstanding Option Beginning Balance | 699,600 | 616,220 | 599,406 |
Options granted | 200,346 | 126,880 | 116,880 |
Options exercised | (40,588) | (28,450) | (86,066) |
Options cancelled | (15,050) | (14,000) | |
Outstanding Option Ending Balance | 859,358 | 699,600 | 616,220 |
Weighted Average Exercise Price, Beginning Balance | $ 30.41 | $ 30.08 | $ 26.24 |
Options granted, Weighted Average Exercise Price | 26.97 | 30.36 | 41.71 |
Options exercised, Weighted Average Exercise Price | 25.68 | 21.49 | 19.75 |
Options cancelled, Weighted Average Exercise Price | 33.32 | 26.59 | |
Weighted Average Exercise Price, Ending Balance | $ 29.83 | $ 30.41 | $ 30.08 |
Stock-Based Compensation (Det68
Stock-Based Compensation (Details 1) | 12 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Schedule of outstanding and exercisable stock options | |
Number Outstanding | shares | 859,358 |
Weighted-Average Remaining Contractual Life (years) | 5 years 8 months 12 days |
Outstanding stock options, weighted Average Exercise Price | $ 29.83 |
Number Exercisable | shares | 482,255 |
Exercisable stock options, Weighted-Average Exercise Price | $ 28.91 |
Range One | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 21.03 |
Maximum Range of Exercise Price | $ 24.02 |
Number Outstanding | shares | 93,750 |
Weighted-Average Remaining Contractual Life (years) | 3 years 4 months 24 days |
Outstanding stock options, weighted Average Exercise Price | $ 22.09 |
Number Exercisable | shares | 68,750 |
Exercisable stock options, Weighted-Average Exercise Price | $ 22.29 |
Range Two | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 24.03 |
Maximum Range of Exercise Price | $ 27.02 |
Number Outstanding | shares | 183,612 |
Weighted-Average Remaining Contractual Life (years) | 5 years 2 months 12 days |
Outstanding stock options, weighted Average Exercise Price | $ 26.59 |
Number Exercisable | shares | 183,612 |
Exercisable stock options, Weighted-Average Exercise Price | $ 26.59 |
Range Three | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 27.03 |
Maximum Range of Exercise Price | $ 30.02 |
Number Outstanding | shares | 175,346 |
Weighted-Average Remaining Contractual Life (years) | 9 years 2 months 12 days |
Outstanding stock options, weighted Average Exercise Price | $ 27.74 |
Range Four | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 30.03 |
Maximum Range of Exercise Price | $ 33.02 |
Number Outstanding | shares | 293,570 |
Weighted-Average Remaining Contractual Life (years) | 5 years 7 months 6 days |
Outstanding stock options, weighted Average Exercise Price | $ 30.98 |
Number Exercisable | shares | 196,040 |
Exercisable stock options, Weighted-Average Exercise Price | $ 31.28 |
Range Five | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 33.03 |
Maximum Range of Exercise Price | $ 42.02 |
Number Outstanding | shares | 29,780 |
Weighted-Average Remaining Contractual Life (years) | 7 years 4 months 24 days |
Outstanding stock options, weighted Average Exercise Price | $ 40.52 |
Number Exercisable | shares | 19,853 |
Exercisable stock options, Weighted-Average Exercise Price | $ 40.52 |
Range Six | |
Schedule of outstanding and exercisable stock options | |
Minimum Range of Exercise Price | 42.03 |
Maximum Range of Exercise Price | $ 45.02 |
Number Outstanding | shares | 83,300 |
Weighted-Average Remaining Contractual Life (years) | 7 years 2 months 12 days |
Outstanding stock options, weighted Average Exercise Price | $ 42.12 |
Number Exercisable | shares | 14,000 |
Exercisable stock options, Weighted-Average Exercise Price | $ 42.12 |
Stock-Based Compensation (Det69
Stock-Based Compensation (Details 2) - Stock Award Units - $ / shares | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Number of Stock Award Units | |||
Stock Award Units, Beginning Balance | 374,598 | 337,356 | 303,170 |
Units granted | 187,777 | 136,310 | 164,122 |
Units vested | (170,010) | (83,578) | (118,368) |
Units forfeited | (11,207) | (15,490) | (11,568) |
Stock Award Units, Ending Balance | 381,158 | 374,598 | 337,356 |
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value, Beginning Balance | $ 33.83 | $ 34.72 | $ 24.84 |
Units granted, Weighted Average Grant Date Fair Value | 27.76 | 29.48 | 41.32 |
Units vested, Weighted Average Grant Date Fair Value | 31.85 | 29.99 | 18.66 |
Units forfeited, Weighted Average Grant Date Fair Value | 34.50 | 35.70 | 33.58 |
Weighted Average Grant Date Fair Value Ending Balance | $ 31.71 | $ 33.83 | $ 34.72 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Contributions and expenses of administering the Employee benefit plans | $ 3.1 | $ 2.9 | $ 3.3 |
Matching contribution | 5 years | ||
Expenses related to the SERP | $ 0.9 | $ 0.4 | $ 0.5 |
Former Vice Chairman and Chief Operating Officer | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation related expenses associated with retirement | $ 0.3 | ||
Share-Based Compensation Award, Tranche One | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Matching contribution, annual vesting percentage | 5.00% | ||
Share-Based Compensation Award, Tranche Two | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Matching contribution, annual vesting percentage | 10.00% |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 440,552 | ||
Other comprehensive income / (loss) before reclassifications | 7,989 | $ (30,349) | |
Amounts reclassified from accumulated other comprehensive income | [1] | 286 | |
Net current-period other comprehensive income / (loss) | 8,275 | (30,349) | |
Ending Balance | 473,993 | 440,552 | |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 68,265 | 98,642 | |
Other comprehensive income / (loss) before reclassifications | 8,389 | (30,377) | |
Amounts reclassified from accumulated other comprehensive income | [1] | (85) | |
Net current-period other comprehensive income / (loss) | 8,304 | (30,377) | |
Ending Balance | 76,569 | 68,265 | |
Available-for-sale securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 189 | 211 | |
Other comprehensive income / (loss) before reclassifications | 8 | (22) | |
Net current-period other comprehensive income / (loss) | 8 | (22) | |
Ending Balance | 197 | 189 | |
Hedging Contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 51 | 1 | |
Other comprehensive income / (loss) before reclassifications | (408) | 50 | |
Amounts reclassified from accumulated other comprehensive income | [1] | 371 | |
Net current-period other comprehensive income / (loss) | (37) | 50 | |
Ending Balance | 14 | 51 | |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 68,505 | 98,854 | |
Ending Balance | $ 76,780 | $ 68,505 | |
[1] | Amounts in fiscal 2017 and 2016 were reclassified to earnings in the Consolidated Statements of Operations. |
Segment and Geographic Inform72
Segment and Geographic Information (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2017USD ($)SegmentLocation | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of operating segments | Segment | 2 | ||||||||||||||
Number of geographic locations | Location | 2 | ||||||||||||||
Operating efficiency initiatives and other items | $ 1,300 | $ 2,700 | $ 3,996 | ||||||||||||
Net sales | $ 130,785 | $ 179,818 | $ 128,086 | $ 114,063 | $ 143,264 | $ 185,629 | $ 145,569 | $ 120,461 | $ 552,752 | [1] | 594,923 | [1] | $ 586,980 | [1] | |
Unallocated corporate expenses | 25,500 | 27,000 | 19,300 | ||||||||||||
Profits related to the company's supply chain operations | 40,000 | 44,500 | 47,100 | ||||||||||||
Intersegment Eliminations | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 289,200 | 309,100 | 305,100 | ||||||||||||
Former Vice Chairman and Chief Operating Officer | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax charges related to vesting of stock awards and compensation on retirement | 300 | ||||||||||||||
Wholesale | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating efficiency initiatives and other items | 4,000 | ||||||||||||||
Net sales | [1] | 484,444 | 530,009 | 522,260 | |||||||||||
United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | [1] | 296,311 | $ 326,206 | $ 320,425 | |||||||||||
United States | Wholesale | Former Vice Chairman and Chief Operating Officer | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax charges related to vesting of stock awards and compensation on retirement | $ 1,800 | ||||||||||||||
Geographic Concentration Risk | Europe | Total net sales | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
International Operations Contribution | 23.10% | 21.20% | 18.90% | ||||||||||||
Geographic Concentration Risk | the Americas (excluding the United States) | Total net sales | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
International Operations Contribution | 8.90% | 10.50% | 11.40% | ||||||||||||
Geographic Concentration Risk | Middle East | Total net sales | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
International Operations Contribution | 8.10% | 7.40% | 7.10% | ||||||||||||
Geographic Concentration Risk | Asia | Total net sales | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
International Operations Contribution | 6.30% | 6.10% | 8.00% | ||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Segment and Geographic Inform73
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |||||
Operating segment data | |||||||||||||||
Net sales | $ 130,785 | $ 179,818 | $ 128,086 | $ 114,063 | $ 143,264 | $ 185,629 | $ 145,569 | $ 120,461 | $ 552,752 | [1] | $ 594,923 | [1] | $ 586,980 | [1] | |
Operating Income | [2],[3],[4],[5] | 53,981 | 70,107 | 71,487 | |||||||||||
Total Assets | 607,802 | 585,170 | 607,802 | 585,170 | |||||||||||
Capital Expenditures | 5,920 | 8,070 | 11,132 | ||||||||||||
Depreciation and Amortization | 11,507 | 13,156 | 12,469 | ||||||||||||
Wholesale | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | [1] | 484,444 | 530,009 | 522,260 | |||||||||||
Operating Income | [2],[3],[4],[5] | 41,773 | 58,242 | 58,236 | |||||||||||
Total Assets | 584,518 | 562,547 | 584,518 | 562,547 | |||||||||||
Capital Expenditures | 5,666 | 5,902 | 9,321 | ||||||||||||
Depreciation and Amortization | 9,875 | 11,561 | 11,053 | ||||||||||||
Wholesale | Luxury brands category | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | [1] | 205,396 | 219,012 | 212,684 | |||||||||||
Wholesale | Licensed brands category | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | [1] | 265,137 | 297,227 | 294,316 | |||||||||||
Wholesale | After-sales service and all other | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | [1] | 13,911 | 13,770 | 15,260 | |||||||||||
Retail | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | [1] | 68,308 | 64,914 | 64,720 | |||||||||||
Operating Income | [2],[3],[4],[5] | 12,208 | 11,865 | 13,251 | |||||||||||
Total Assets | $ 23,284 | $ 22,623 | 23,284 | 22,623 | |||||||||||
Capital Expenditures | 254 | 2,168 | 1,811 | ||||||||||||
Depreciation and Amortization | $ 1,632 | $ 1,595 | $ 1,416 | ||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | ||||||||||||||
[2] | Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations. | ||||||||||||||
[3] | Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017. | ||||||||||||||
[4] | The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | ||||||||||||||
[5] | The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Segment and Geographic Inform74
Segment and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 130,785 | $ 179,818 | $ 128,086 | $ 114,063 | $ 143,264 | $ 185,629 | $ 145,569 | $ 120,461 | $ 552,752 | [1] | $ 594,923 | [1] | $ 586,980 | [1] | |
Operating Income | [2],[3],[4],[5] | 53,981 | 70,107 | 71,487 | |||||||||||
Total Assets | 607,802 | 585,170 | 607,802 | 585,170 | |||||||||||
Property, Plant and Equipment, Net | 34,173 | 38,553 | 34,173 | 38,553 | |||||||||||
United States | |||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | [1] | 296,311 | 326,206 | 320,425 | |||||||||||
Operating Income | [2],[3],[4],[5] | 16,917 | 29,867 | 18,811 | |||||||||||
Total Assets | 207,246 | 215,053 | 207,246 | 215,053 | |||||||||||
Property, Plant and Equipment, Net | 19,197 | 24,517 | 19,197 | 24,517 | |||||||||||
International | |||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | [1] | 256,441 | 268,717 | 266,555 | |||||||||||
Operating Income | [2],[3],[4],[5] | 37,064 | 40,240 | $ 52,676 | |||||||||||
Total Assets | 400,556 | 370,117 | 400,556 | 370,117 | |||||||||||
Property, Plant and Equipment, Net | $ 14,976 | $ 14,036 | $ 14,976 | $ 14,036 | |||||||||||
[1] | The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | ||||||||||||||
[2] | Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations. | ||||||||||||||
[3] | Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017. | ||||||||||||||
[4] | The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. | ||||||||||||||
[5] | The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Quarterly Financial Data (Una75
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||||
Unaudited selected interim operating results | ||||||||||||||
Net sales | $ 130,785 | $ 179,818 | $ 128,086 | $ 114,063 | $ 143,264 | $ 185,629 | $ 145,569 | $ 120,461 | $ 552,752 | [1] | $ 594,923 | [1] | $ 586,980 | [1] |
Gross profit | 64,687 | 98,550 | 70,263 | 61,317 | 75,351 | 100,092 | 79,038 | 62,449 | 294,817 | 316,930 | 309,982 | |||
Income before income taxes | 7,097 | 29,501 | 9,796 | 5,060 | 11,184 | 33,152 | 18,013 | 6,776 | 51,454 | 69,125 | 71,164 | |||
Net income | 5,232 | 20,215 | 6,355 | 3,337 | 8,282 | 21,910 | 11,933 | 3,641 | 35,139 | 45,765 | 51,900 | |||
Net income attributed to Movado Group, Inc. | $ 5,232 | $ 20,215 | $ 6,306 | $ 3,308 | $ 7,888 | $ 21,532 | $ 12,053 | $ 3,622 | $ 35,061 | $ 45,094 | $ 51,776 | |||
Basic income per share: | ||||||||||||||
Net income attributed to Movado Group, Inc. | $ 0.23 | $ 0.88 | $ 0.27 | $ 0.14 | $ 0.34 | $ 0.93 | $ 0.51 | $ 0.15 | $ 1.52 | $ 1.92 | $ 2.05 | |||
Diluted income per share: | ||||||||||||||
Net income attributed to Movado Group, Inc. | $ 0.22 | $ 0.87 | $ 0.27 | $ 0.14 | $ 0.34 | $ 0.92 | $ 0.50 | $ 0.15 | $ 1.51 | $ 1.90 | $ 2.02 | |||
[1] | The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
Supplemental Cash Flow Inform76
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Cash paid during the year for: | |||
Interest | $ 1,121 | $ 797 | $ 226 |
Income taxes, net | 22,768 | $ 22,500 | 12,493 |
Supplemental disclosures of non-cash investing activities: | |||
Additions to property, plant and equipment included in accrued liabilities | $ 4 | $ 127 |
Net Income Attributed to Mova77
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of net income attributable to non controlling interest | |||||||||||
Net income attributed to Movado Group, Inc. | $ 5,232 | $ 20,215 | $ 6,306 | $ 3,308 | $ 7,888 | $ 21,532 | $ 12,053 | $ 3,622 | $ 35,061 | $ 45,094 | $ 51,776 |
Transfers to the noncontrolling interest | |||||||||||
Decrease in Movado Group, Inc.’s paid in capital for purchase of joint venture common shares | (1,011) | (3,613) | |||||||||
Net transfers to noncontrolling interest | (1,011) | (3,613) | |||||||||
Change from net income attributed to Movado Group, Inc. and transfers to noncontrolling interest | $ 34,050 | $ 41,481 | $ 51,776 |
Net Income Attributed to Mova78
Net Income Attributed to Movado Group, Inc. and Transfers to Noncontrolling Interest (Details Textual) - USD ($) $ in Millions | Aug. 04, 2016 | Jan. 06, 2016 | Jan. 30, 2013 | Jan. 31, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership controlled | 51.00% | |||
Percentage increase in ownership interest | 49.00% | |||
Co-venturer | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership controlled | 49.00% | |||
Purchase price | $ 5.6 | |||
JV Agreement | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Agreement termination date | Aug. 4, 2016 | |||
JV Agreement | Co-venturer | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership controlled | 10.00% | |||
JV Agreement | MGS Distribution Limited | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Joint venture termination description | On August 4, 2016, Movado Group, Inc. and Majorelle Limited, an English company (“Majorelle”), voluntarily terminated the joint venture agreement they had entered into on January 30, 2013 (the “JV Agreement”) relating to MGS Distribution Limited, an English company (“MGS”). | |||
Percentage of ownership controlled | 90.00% | |||
Ownership interest in wholly-owned entity | 100.00% | |||
JV Agreement | MGS Distribution Limited | Majorelle | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Purchase price | $ 1.7 |
Treasury Stock (Details Textual
Treasury Stock (Details Textual) - USD ($) | Mar. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program expiration date | Sep. 30, 2017 | |||
Stock repurchase program, number of shares repurchased | 157,499 | 1,858,939 | ||
Stock repurchase program, total cost of shares repurchased | $ 3,864,000 | $ 48,748,000 | $ 26,382,000 | |
Stock repurchase program, average per share price of shares repurchased | $ 24.54 | $ 26.22 | ||
Surrender of Shares by Employee | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares repurchased | 47,310 | 21,076 | ||
Maximum | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized | $ 50,000,000 | |||
Movado Group Foundation | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares repurchased | 35,000 | 28,000 | ||
Stock repurchase program, total cost of shares repurchased | $ 1,000,000 | $ 800,000 | ||
Stock repurchase program, average per share price of shares repurchased | $ 29.03 | $ 27.33 |
Operating Efficiency Initiati80
Operating Efficiency Initiatives and Other Items (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | |
Restructuring And Related Activities [Abstract] | ||||
Operating efficiency initiatives and other items | $ 1,300 | $ 2,700 | $ 3,996 | |
Operating efficiency initiatives and other items, completion date | Jan. 31, 2016 |
Operating Efficiency Initiati81
Operating Efficiency Initiatives and Other Items (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance at January 31, 2016 | $ 990 |
Foreign exchange | 303 |
Non-cash adjustments | (80) |
Cash payments | (805) |
Accrued balance at January 31, 2017 | 408 |
Severance | |
Restructuring Cost And Reserve [Line Items] | |
Balance at January 31, 2016 | 631 |
Foreign exchange | 174 |
Non-cash adjustments | (78) |
Cash payments | (649) |
Accrued balance at January 31, 2017 | 78 |
Occupancy charges | |
Restructuring Cost And Reserve [Line Items] | |
Balance at January 31, 2016 | 359 |
Foreign exchange | 129 |
Non-cash adjustments | (2) |
Cash payments | (156) |
Accrued balance at January 31, 2017 | $ 330 |
Other Charges (Details Textual)
Other Charges (Details Textual) $ in Millions | 3 Months Ended |
Apr. 30, 2016USD ($) | |
Wholesale | Chief Operating Officer | |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |
Compensation related expenses associated with retirement | $ 1.8 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - USD ($) $ in Millions | Mar. 20, 2017 | Jan. 31, 2018 | Apr. 30, 2017 |
Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Expected pre-tax cost savings to be realized | $ 12 | ||
Scenario, Forecast | Minimum | |||
Subsequent Event [Line Items] | |||
Pre-tax charge in connection with completion of cost saving initiatives | $ 7 | ||
Scenario, Forecast | Maximum | |||
Subsequent Event [Line Items] | |||
Pre-tax charge in connection with completion of cost saving initiatives | $ 10 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Expected annualized pre-tax cost savings | $ 15 |
Valuation and Qualifying Acco84
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Valuation and qualifying accounts and reserves | |||
Balance at beginning of year | $ 19,309 | $ 17,051 | $ 23,100 |
Net provision charged to operations | 40,563 | 36,143 | 32,754 |
Currency revaluation | 43 | (402) | (324) |
Net write-offs | (38,809) | (33,483) | (38,479) |
Adjustments | (191) | (568) | 29 |
Balance at end of year | 21,106 | 19,309 | 17,051 |
Doubtful Accounts | |||
Valuation and qualifying accounts and reserves | |||
Balance at beginning of year | 4,274 | 3,247 | 3,315 |
Net provision charged to operations | 1,739 | 2,251 | 1,188 |
Currency revaluation | 52 | (190) | (132) |
Net write-offs | (566) | (1,034) | (1,124) |
Balance at end of year | 5,499 | 4,274 | 3,247 |
Returns | |||
Valuation and qualifying accounts and reserves | |||
Balance at beginning of year | 10,856 | 8,736 | 16,323 |
Net provision charged to operations | 30,075 | 27,433 | 25,194 |
Currency revaluation | 10 | (147) | (87) |
Net write-offs | (29,293) | (25,166) | (32,694) |
Balance at end of year | 11,648 | 10,856 | 8,736 |
Other Sales Allowances | |||
Valuation and qualifying accounts and reserves | |||
Balance at beginning of year | 4,179 | 5,068 | 3,462 |
Net provision charged to operations | 8,749 | 6,459 | 6,372 |
Currency revaluation | (19) | (65) | (105) |
Net write-offs | (8,950) | (7,283) | (4,661) |
Balance at end of year | 3,959 | 4,179 | 5,068 |
Deferred Tax Asset Valuation | |||
Valuation and qualifying accounts and reserves | |||
Balance at beginning of year | 8,089 | 8,307 | 7,798 |
Net provision charged to operations | 716 | 986 | 1,281 |
Currency revaluation | 100 | (636) | (801) |
Adjustments | (191) | (568) | 29 |
Balance at end of year | $ 8,714 | $ 8,089 | $ 8,307 |
Valuation and Qualifying Acco85
Valuation and Qualifying Accounts (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |||
Prior year adjustments | $ 89 | $ 177 | |
Reversal due to legal entity elimination | (280) | ||
Expired tax losses | (745) | ||
Adjustments | $ (191) | $ (568) | $ 29 |