Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Nov. 01, 2015 | Dec. 02, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PVH CORP. /DE/ | |
Entity Central Index Key | 78,239 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Nov. 1, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 81,946,098 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Income Statements
Consolidated Income Statements - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |||
Income Statement [Abstract] | ||||||
Net sales | $ 2,040.9 | [1] | $ 2,114 | $ 5,591.9 | [1] | $ 5,876 |
Royalty revenue | 97.4 | [1] | 89.3 | 247 | [1] | 224 |
Advertising and other revenue | 26.2 | [1] | 29.8 | 68.9 | [1] | 72.4 |
Total revenue | 2,164.5 | [1] | 2,233.1 | 5,907.8 | [1] | 6,172.4 |
Cost of goods sold (exclusive of depreciation and amortization) | 1,063.5 | 1,065.6 | 2,819.1 | 2,917 | ||
Gross profit | 1,101 | 1,167.5 | 3,088.7 | 3,255.4 | ||
Selling, general and administrative expenses | 853.8 | 892.9 | 2,519.2 | 2,647.8 | ||
Debt modification and extinguishment costs | 0 | 0 | 0 | 93.1 | ||
Equity in net income of unconsolidated affiliates | 6.4 | 5.3 | 15 | 9.2 | ||
Income before interest and taxes | 253.6 | [2] | 279.9 | 584.5 | [2] | 523.7 |
Interest expense | 28.4 | 33.6 | 88.5 | 110.7 | ||
Interest income | 1 | 1.5 | 3.3 | 4.2 | ||
Income before taxes | 226.2 | 247.8 | 499.3 | 417.2 | ||
Income tax expense | 4.3 | 22.1 | 61.1 | 29.8 | ||
Net Income | 221.9 | 225.7 | 438.2 | 387.4 | ||
Less: Net loss attributable to redeemable non-controlling interest | 0 | 0 | 0 | (0.1) | ||
Net income attributable to PVH Corp. | $ 221.9 | $ 225.7 | $ 438.2 | $ 387.5 | ||
Basic net income per common share attributable to PVH Corp. | $ 2.69 | $ 2.74 | $ 5.31 | $ 4.71 | ||
Diluted net income per common share attributable to PVH Corp. | 2.67 | 2.71 | 5.26 | 4.66 | ||
Dividends declared per common share | $ 0.0375 | $ 0.0375 | $ 0.1500 | $ 0.1500 | ||
[1] | Revenue for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. | |||||
[2] | Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Net Income | $ 221.9 | $ 225.7 | $ 438.2 | $ 387.4 |
Foreign currency translation adjustments, net of tax expense (benefit) | (10) | (217.6) | (150.1) | (207.4) |
Amortization of prior service credit related to pension and postretirement plans, net of tax (benefit) | (0.1) | (0.2) | (0.2) | (0.4) |
Net unrealized and realized (loss) gain related to effective hedges, net of tax (benefit) expense | (25.2) | 28.5 | (48.4) | 36.5 |
Comprehensive income | 186.6 | 36.4 | 239.5 | 216.1 |
Less: Comprehensive income attributable to redeemable non-controlling interest | 0 | 0 | 0 | 0.5 |
Total comprehensive income attributable to PVH Corp. | $ 186.6 | $ 36.4 | $ 239.5 | $ 215.6 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Foreign currency translation adjustments, tax expense (benefit) | $ 0 | $ 1.2 | $ (0.4) | $ (2.1) |
Amortization of prior service credit related to pension and postretirement plans, tax (benefit) | 0 | (0.1) | (0.1) | (0.3) |
Net unrealized and realized (loss) gain related to effective hedges, tax (benefit) expense | $ (8.6) | $ 1.3 | $ (9.1) | $ 1.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Nov. 01, 2015 | Feb. 01, 2015 | Nov. 02, 2014 |
Current Assets: | |||
Cash and cash equivalents | $ 369.9 | $ 479.3 | $ 365.1 |
Trade receivables, net of allowances for doubtful accounts of $17.6, $19.0 and $19.8 | 824.3 | 705.7 | 879.7 |
Other receivables | 41.9 | 37.5 | 31 |
Inventories, net | 1,332 | 1,257.3 | 1,239.9 |
Prepaid expenses | 138.7 | 141.1 | 177.9 |
Other, including deferred taxes of $85.2, $115.4 and $86.5 | 151.4 | 280.3 | 173.1 |
Total Current Assets | 2,858.2 | 2,901.2 | 2,866.7 |
Property, Plant and Equipment, net | 731.8 | 725.7 | 707.6 |
Goodwill | 3,237.1 | 3,259.1 | 3,435 |
Tradenames | 2,810.4 | 2,833.4 | 2,930.9 |
Other Intangibles, net | 874.4 | 948.2 | 995.5 |
Other Assets, including deferred taxes of $14.0, $7.1 and $32.8 | 293.5 | 264.2 | 330 |
Total Assets | 10,805.4 | 10,931.8 | 11,265.7 |
Current Liabilities: | |||
Accounts payable | 495.3 | 565.3 | 476.2 |
Accrued expenses, including deferred taxes of $0.0, $0.5 and $0.0 | 703.4 | 724.3 | 745.6 |
Deferred revenue | 16 | 31.2 | 17.7 |
Short-term borrowings | 27.6 | 8.5 | 39.9 |
Current portion of long-term debt | 124.1 | 99.3 | 99.3 |
Total Current Liabilities | 1,366.4 | 1,428.6 | 1,378.7 |
Long-Term Debt | 3,215.5 | 3,438.7 | 3,618.7 |
Other Liabilities, including deferred taxes of $951.7, $1,004.3 and $1,102.5 | 1,677.9 | 1,700.2 | 1,684.5 |
Stockholders' Equity: | |||
Preferred stock, par value $100 per share; 150,000 total shares authorized | 0 | 0 | 0 |
Common stock, par value $1 per share; 240,000,000 shares authorized; 83,491,141; 83,116,062 and 83,044,291 shares issued | 83.5 | 83.1 | 83 |
Additional paid in capital - common stock | 2,809.9 | 2,768.7 | 2,752.3 |
Retained earnings | 2,427 | 2,001.3 | 1,949.8 |
Accumulated other comprehensive loss | (615.2) | (416.5) | (129.6) |
Less: 1,409,747; 603,482 and 598,814 shares of common stock held in treasury, at cost | (159.6) | (72.3) | (71.7) |
Total Stockholders' Equity | 4,545.6 | 4,364.3 | 4,583.8 |
Total Liabilities and Stockholders' Equity | $ 10,805.4 | $ 10,931.8 | $ 11,265.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Nov. 01, 2015 | Feb. 01, 2015 | Nov. 02, 2014 |
Current Assets: | |||
Allowance for doubtful accounts | $ 17.6 | $ 19 | $ 19.8 |
Other current assets, deferred taxes | 85.2 | 115.4 | 86.5 |
Other Assets: | |||
Other assets, deferred taxes | 14 | 7.1 | 32.8 |
Liabilities: | |||
Accrued expenses, deferred taxes | 0 | 0.5 | 0 |
Other liabilities, deferred taxes | $ 951.7 | $ 1,004.3 | $ 1,102.5 |
Stockholders' Equity: | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 83,491,141 | 83,116,062 | 83,044,291 |
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 | $ 100 |
Preferred stock, shares authorized (in shares) | 150,000 | 150,000 | 150,000 |
Shares of common stock held in treasury, at cost (in shares) | 1,409,747 | 603,482 | 598,814 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | ||
OPERATING ACTIVITIES | |||
Net Income | $ 438.2 | $ 387.4 | |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 187 | 181.4 | |
Equity in net income of unconsolidated affiliates | (15) | (9.2) | |
Deferred taxes | (15.6) | (33.7) | |
Stock-based compensation expense | 31.4 | 37.3 | |
Impairment of long-lived assets | 2.8 | 4.8 | |
Debt modification and extinguishment costs | 0 | 93.1 | |
Net gain on deconsolidation of subsidiaries and joint venture | 0 | (8) | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (132.3) | (168.8) | |
Inventories, net | (94.1) | 4.4 | |
Accounts payable, accrued expenses and deferred revenue | (90.9) | (177.5) | |
Prepaid expenses | (0.3) | (45.1) | |
Employer pension contributions | (1.5) | (2.7) | |
Other, net | 78.4 | 60.5 | |
Net cash provided by operating activities | 388.1 | 323.9 | |
INVESTING ACTIVITIES(1) | |||
Business acquisitions | 0 | (14.7) | |
Purchase of property, plant and equipment | (169) | (173.5) | |
Contingent purchase price payments | (35) | (35.5) | |
Decrease in restricted cash | 20.2 | 9.7 | |
Investments in unconsolidated affiliates | (26.6) | (26.2) | |
Net cash used by investing activities | [1] | (210.4) | (240.2) |
FINANCING ACTIVITIES(1) | |||
Net proceeds from short-term borrowings | 19.1 | 31.6 | |
Redemption of 7 3/8% senior notes, including make whole premium | 0 | (667.6) | |
Proceeds from 2014 facilities, net of related fees | 0 | 586.7 | |
Repayment of 2014 facilities | (200.5) | (244.7) | |
Net proceeds from settlement of awards under stock plans | 5.7 | 9.5 | |
Excess tax benefits from awards under stock plans | 5 | 9.3 | |
Cash dividends | (12.5) | (12.5) | |
Acquisition of treasury shares | (87.3) | (10.5) | |
Payments of capital lease obligations | (5.6) | (6.6) | |
Net cash used by financing activities | [1] | (276.1) | (304.8) |
Effect of exchange rate changes on cash and cash equivalents | (11) | (7) | |
Decrease in cash and cash equivalents | (109.4) | (228.1) | |
Cash and cash equivalents at beginning of period | 479.3 | 593.2 | |
Cash and cash equivalents at end of period | $ 369.9 | $ 365.1 | |
[1] | See Note 17 for information on noncash investing and financing transactions. |
GENERAL
GENERAL | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
GENERAL | GENERAL PVH Corp. and its consolidated subsidiaries (collectively, the “Company”) constitute a global apparel company whose brand portfolio consists of nationally and internationally recognized brand names, including Calvin Klein , Tommy Hilfiger , Van Heusen , IZOD , ARROW , Warner’s and Olga , which are owned, and Speedo , which is licensed in perpetuity for North America and the Caribbean, as well as various other owned, licensed and private label brands. The Company designs and markets branded dress shirts, neckwear, sportswear, jeanswear, underwear, intimate apparel, swim products, handbags, footwear and other related products, and licenses its owned brands over a broad range of products. References to the aforementioned and other brand names are to registered trademarks owned by the Company or licensed to the Company by third parties and are identified by italicizing the brand name. The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 4, “Investments in Unconsolidated Affiliates,” for a further discussion. As a result of the acquisition of The Warnaco Group, Inc. (“Warnaco”) in 2013, the Company acquired a majority interest in a joint venture in India that was consolidated and accounted for as a redeemable non-controlling interest during 2013. The redeemable non-controlling interest represented the minority shareholders’ proportionate share ( 49% ) of the equity in that entity. During the first quarter of 2014, in connection with the sale of the minority shareholders’ interests to a third party, the Company and the new shareholder entered into a shareholders agreement with different governing arrangements between the Company and the new shareholder as compared to the arrangements with the prior minority shareholders. Based on the new arrangements, the Company no longer is deemed to hold a controlling interest and the joint venture was deconsolidated. As a result, since the first quarter of 2014, the Company’s investment in the joint venture has been accounted for using the equity method of accounting. Please see Note 5, “Redeemable Non-Controlling Interest,” for a further discussion. The Company’s fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 of each calendar year and are designated by the calendar year in which the fiscal year commences. References to a year are to the Company’s fiscal year, unless the context requires otherwise. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not contain all disclosures required by accounting principles generally accepted in the United States for complete financial statements. Reference is made to the Company’s audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended February 1, 2015 . The preparation of interim financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from these estimates. The results of operations for the thirteen and thirty-nine weeks ended November 1, 2015 and November 2, 2014 are not necessarily indicative of those for a full fiscal year due, in part, to seasonal factors. The data contained in these financial statements are unaudited and are subject to year-end adjustments. However, in the opinion of management, all known adjustments (which consist only of normal recurring accruals) have been made to present fairly the consolidated operating results for the unaudited periods. The Company records warehousing and distribution expenses as a component of selling, general and administrative expenses in its Consolidated Income Statements. Warehousing and distribution expenses totaled $ 62.5 million and $ 64.9 million in the thirteen weeks ended November 1, 2015 and November 2, 2014 , respectively, and totaled $ 173.2 million and $ 191.3 million in the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , respectively. Certain reclassifications have been made to the consolidated financial statements for the prior year periods to present that information on a basis consistent with the current year. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
INVENTORIES | INVENTORIES Inventories are comprised principally of finished goods and are stated at the lower of cost or market. Cost for principally all wholesale inventories in North America and certain wholesale and retail inventories in Asia and Latin America is determined using the first-in, first-out method. Cost for all other inventories is determined using the weighted average cost method. The Company reviews current business trends, inventory aging and discontinued merchandise categories to determine adjustments that it estimates will be needed to liquidate existing clearance inventories and record inventories at the lower of cost or market. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of Russia Franchisee During the first quarter of 2014, the Company acquired for $ 4.3 million two Tommy Hilfiger stores in Russia from a former Tommy Hilfiger franchisee. This transaction was accounted for as a business combination. Acquisition of Ireland Franchisee During the first quarter of 2014, the Company acquired for $ 3.1 million six Tommy Hilfiger stores in Ireland from a former Tommy Hilfiger franchisee. This transaction was accounted for as a business combination. Acquisition of Calvin Klein Performancewear Retail Businesses in Hong Kong and China During the third quarter of 2014, the Company acquired for $ 6.7 million the Calvin Klein performancewear retail businesses in Hong Kong and China from a former Calvin Klein sublicensee. This transaction was accounted for as a business combination. The Company finalized the adjustment to the purchase price during 2015. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 9 Months Ended |
Nov. 01, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES Karl Lagerfeld The Company acquired a 10% economic interest in Kingdom Holding 1 B.V., the parent company of the Karl Lagerfeld brand, (“Karl Lagerfeld”) during the first quarter of 2014 for $ 18.9 million. An employee of the Company, who is also a former director, owns approximately 35% of Karl Lagerfeld. The Company has significant influence as defined under FASB guidance with respect to this investment, which is being accounted for under the equity method of accounting. Calvin Klein, Tommy Hilfiger and Heritage Brands Australia The Company formed a joint venture, PVH Brands Australia Pty. Limited (“PVH Australia”), in 2013 in which the Company owns a 50% economic interest. The joint venture licenses from a subsidiary of the Company the rights to distribute and sell certain Calvin Klein brand products in Australia, New Zealand and other island nations in the South Pacific. As part of the transaction, the Company contributed to the joint venture its subsidiaries that were operating the Calvin Klein Jeans businesses in Australia and New Zealand. In connection with this contribution, which took place on the first day of 2014, the Company deconsolidated the contributed subsidiaries and recognized a net gain of $ 2.1 million during the first quarter of 2014, which was recorded in selling, general and administrative expenses. The gain was measured as the difference between the fair value of the Company’s 50% interest in PVH Australia and the carrying value of the net assets and cash contributed. The fair value of PVH Australia was determined by a third party valuation firm using the discounted cash flow method, based on net sales projections for the Calvin Klein business in Australia, New Zealand, and other island nations in the South Pacific and was discounted using a rate of return that accounted for the relative risks of the estimated future cash flows. During the first quarter of 2015, the Company completed a transaction in which the Tommy Hilfiger and Van Heusen trademarks in Australia were licensed for certain product categories to subsidiaries of PVH Australia for use in Australia, New Zealand and, in the case of Tommy Hilfiger , other island nations in the South Pacific. The Tommy Hilfiger trademarks had previously been licensed to a third party and the Van Heusen trademarks had previously been licensed to the Company’s joint venture partner in PVH Australia. The Company made net payments of $21.0 million and $ 7.3 million to PVH Australia during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , respectively, representing its 50% share of the joint venture funding. This investment is being accounted for under the equity method of accounting. Calvin Klein India The Company acquired a 51% economic interest in a Calvin Klein joint venture in India, Premium Garments Wholesale Trading Private Limited (“CK India”), as part of the Warnaco acquisition. The joint venture licenses from a Company subsidiary the rights to the Calvin Klein trademarks in India for certain product categories. Beginning with the first quarter of 2014, this investment has been accounted for under the equity method of accounting. Please see Note 5, “Redeemable Non-Controlling Interest,” for a further discussion. The Company made payments of $ 4.0 million to CK India during the thirty-nine weeks ended November 1, 2015 to contribute its 51% share of the joint venture funding. Tommy Hilfiger Brazil The Company formed a joint venture, Tommy Hilfiger do Brasil S.A. (“TH Brazil”), in Brazil in 2012 in which the Company owns a 40% economic interest. The joint venture licenses from a Company subsidiary the rights to the Tommy Hilfiger trademarks in Brazil for certain product categories. The Company made a payment of $ 1.6 million to TH Brazil during the thirty-nine weeks ended November 1, 2015 to contribute its 40% share of the joint venture funding. This investment is being accounted for under the equity method of accounting. Tommy Hilfiger China The Company formed a joint venture, TH Asia Ltd., in China in 2010 in which the Company owns a 45% economic interest. The joint venture began operating the Tommy Hilfiger wholesale and retail distribution businesses in China in 2011. The joint venture licenses from a Company subsidiary the Tommy Hilfiger trademarks for use in connection with these businesses. This investment is being accounted for under the equity method of accounting. Tommy Hilfiger India The Company acquired in 2011 a 50% economic interest in a company that has since been renamed Tommy Hilfiger Arvind Fashion Private Limited (“TH India”). TH India licenses from a Company subsidiary the rights to the Tommy Hilfiger trademarks in India for certain product categories. This investment is being accounted for under the equity method of accounting. Included in other assets in the Company’s Consolidated Balance Sheets as of November 1, 2015 , February 1, 2015 and November 2, 2014 is $143.1 million, $108.3 million and $113.7 million, respectively, related to these investments in unconsolidated affiliates. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 9 Months Ended |
Nov. 01, 2015 | |
Redeemable Non-Controlling Interest Disclosure [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | REDEEMABLE NON-CONTROLLING INTEREST CK India was consolidated in the Company’s financial statements during 2013. During the first quarter of 2014, Arvind Limited, the Company’s joint venture partner in TH India, purchased the Company’s prior joint venture partners’ shares in CK India and, as a result of the entry into a shareholders agreement with different governing arrangements between the Company and Arvind Limited as compared to the arrangements with the prior minority shareholders, the Company no longer is deemed to hold a controlling interest in the joint venture. CK India was deconsolidated as a result and the Company began reporting its 51% interest as an equity method investment in the first quarter of 2014. The Company recognized a net gain of $5.9 million in connection with the deconsolidation of CK India during the first quarter of 2014 that was recorded in selling, general and administrative expenses in the Company’s Consolidated Income Statements. The gain was measured as the difference between the fair value of the Company’s 51% interest in CK India and the carrying value. The fair value of CK India was determined by a third party valuation firm using the discounted cash flow method, based on net sales projections for the Calvin Klein business in India and was discounted using a rate of return that accounted for the relative risks of the estimated future cash flows. Please see Note 4, “Investments in Unconsolidated Affiliates,” for a further discussion. |
GOODWILL
GOODWILL | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the thirty-nine weeks ended November 1, 2015 , by segment (please see Note 18, “Segment Data,” for a further discussion), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of February 1, 2015 Goodwill, gross $ 705.4 $ 859.6 $ 204.4 $ 1,251.4 $ 238.3 $ 11.9 $ 3,271.0 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 705.4 859.6 204.4 1,251.4 238.3 — 3,259.1 Contingent purchase price payments to Mr. Calvin Klein 23.5 15.1 — — — — 38.6 Currency translation and other (4.3 ) (24.0 ) — (31.6 ) (0.7 ) — (60.6 ) Balance as of November 1, 2015 Goodwill, gross 724.6 850.7 204.4 1,219.8 237.6 11.9 3,249.0 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 724.6 $ 850.7 $ 204.4 $ 1,219.8 $ 237.6 $ — $ 3,237.1 The Company is required to make contingent purchase price payments to Mr. Calvin Klein in connection with the Company’s acquisition in 2003 of all of the issued and outstanding stock of Calvin Klein, Inc. and certain affiliated companies (collectively, “Calvin Klein”). Such payments are based on 1.15% of total worldwide net sales, as defined in the acquisition agreement (as amended), of products bearing any of the Calvin Klein brands and are required to be made with respect to sales made through February 12, 2018. A significant portion of the sales on which the payments to Mr. Klein are made are wholesale sales by the Company and its licensees and other partners to retailers. |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company has five qualified defined benefit pension plans as of November 1, 2015 covering substantially all employees resident in the United States who meet certain age and service requirements. The plans provide monthly benefits upon retirement generally based on career average compensation and years of credited service. Vesting in plan benefits generally occurs after five years of service. The Company refers to these five noncontributory plans as its “Pension Plans.” The Company also acquired as part of the Warnaco acquisition a defined benefit pension plan for certain of Warnaco’s former employees in Europe. This plan was not considered to be material for disclosure purposes for any period presented. The Company also has for certain members of Tommy Hilfiger’s domestic senior management a supplemental executive retirement plan, which is an unfunded non-qualified supplemental defined benefit pension plan. Such plan is frozen and, as a result, participants do not accrue additional benefits. In addition, the Company has a capital accumulation program, which is an unfunded non-qualified supplemental defined benefit plan. Under the individual participants’ agreements, the participants in this plan will receive a predetermined amount during the 10 years following the attainment of age 65 , provided that prior to the termination of employment with the Company, the participant has been in the plan for at least 10 years and has attained age 55 . The Company also has for certain employees resident in the United States who meet certain age and service requirements an unfunded non-qualified supplemental defined benefit pension plan, which provides benefits for compensation in excess of Internal Revenue Service earnings limits and requires payments to vested employees upon, or shortly after, employment termination or retirement. The Company refers to these three noncontributory plans as its “SERP Plans.” The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States. Retirees contribute to the cost of this plan, which is unfunded. During 2002, the postretirement plan was amended to eliminate the Company contribution, which partially subsidized benefits, for active participants who, as of January 1, 2003, had not attained age 55 and 10 years of service. As a result of the Company’s acquisition of Warnaco, the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of this plan, which is unfunded. This plan was frozen on January 1, 2014. The Company refers to these two plans as its “Postretirement Plans.” Net benefit cost related to the Pension Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Service cost, including plan expenses $ 7.7 $ 4.9 $ 23.0 $ 14.7 Interest cost 7.0 7.2 20.9 21.4 Expected return on plan assets (10.7 ) (10.8 ) (31.9 ) (32.6 ) Total $ 4.0 $ 1.3 $ 12.0 $ 3.5 Net benefit cost related to the SERP Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Service cost, including plan expenses $ 1.4 $ 1.1 $ 4.2 $ 3.3 Interest cost 0.9 1.1 2.7 3.1 Amortization of prior service credit (0.0 ) (0.1 ) (0.0 ) (0.1 ) Total $ 2.3 $ 2.1 $ 6.9 $ 6.3 Net benefit cost related to the Postretirement Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Interest cost $ 0.2 $ 0.2 $ 0.5 $ 0.6 Amortization of prior service credit (0.1 ) (0.2 ) (0.3 ) (0.6 ) Total $ 0.1 $ 0.0 $ 0.2 $ 0.0 The Company made contributions of $ 1.5 million to the Pension Plans in the thirty-nine weeks ended November 1, 2015 and does not expect to make additional contributions to the Pension Plans during the remainder of 2015. |
DEBT
DEBT | 9 Months Ended |
Nov. 01, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings One of the Company’s Asian subsidiaries has a yen-denominated overdraft facility with a Japanese bank that provides for borrowings of up to ¥1,000.0 million (approximately $8.3 million based on exchange rates in effect on November 1, 2015 ) and is utilized primarily to fund working capital needs. Borrowings under this facility are unsecured and bear interest at the one-month Japanese interbank borrowing rate plus 0.30% . Such facility renews automatically unless the Company gives notice of termination. As of November 1, 2015 , the Company had $8.3 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at November 1, 2015 was 0.43% . The maximum amount of borrowings outstanding during the thirty-nine weeks ended November 1, 2015 was equal to the maximum amount of borrowings available under this facility. One of the Company’s European subsidiaries has short-term revolving notes with a number of banks at various interest rates, as well as euro-denominated overdraft facilities, that provide for borrowings of up to €60.0 million (approximately $66.1 million based on exchange rates in effect on November 1, 2015 ). These facilities are used primarily to fund working capital needs. There were no borrowings outstanding under these facilities as of or during the thirty-nine weeks ended November 1, 2015 . One of the Company’s European subsidiaries has a United States dollar-denominated short-term line of credit facility with a Turkish bank that provides for borrowings of up to $ 3.7 million and is utilized primarily to fund working capital needs. Borrowings under this facility bear interest at the Turkish Central Bank lending rate plus 0.50% . As of November 1, 2015 , the Company had $ 2.6 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at November 1, 2015 was 12.77% . The maximum amount of borrowings outstanding during the thirty-nine weeks ended November 1, 2015 was $ 3.3 million. One of the Company’s European subsidiaries has Turkish lira-denominated short-term line of credit facilities with a number of Turkish banks that provide for borrowings of up to lira 6.0 million (approximately $2.1 million based on exchange rates in effect on November 1, 2015 ) and are utilized primarily to fund working capital needs. Borrowings under these facilities bear interest at the Turkish Central Bank lending rate plus 1.25% . There were no borrowings outstanding under these facilities as of or during the thirty-nine weeks ended November 1, 2015 . One of the Company’s Mexican subsidiaries has peso-denominated short-term line of credit facilities with a number of banks at various interest rates that provide for borrowings of up to ₱ 267.1 million (approximately $ 16.1 million based on exchange rates in effect on November 1, 2015 ) and are utilized primarily to fund working capital needs. As of November 1, 2015 , the Company had $ 7.0 million of borrowings outstanding under these facilities. The weighted average interest rate on the funds borrowed at November 1, 2015 was 4.71% . The maximum amount of borrowings outstanding during the thirty-nine weeks ended November 1, 2015 was $ 7.0 million. One of the Company’s Mexican subsidiaries has a United States dollar-denominated short-term revolving credit facility with a Mexican bank that provides for borrowings up to $ 10.0 million and is utilized primarily to fund working capital needs. Borrowings under this facility bear interest at the Interbank Equilibrium Interest Rate plus 0.90% . As of November 1, 2015 , the Company had $ 9.7 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at November 1, 2015 was 4.33% . The maximum amount of borrowings outstanding during the thirty-nine weeks ended November 1, 2015 was $ 9.7 million. One of the Company’s Asian subsidiaries has a United States dollar-denominated short-term revolving credit facility with a bank that provides for borrowings up to $10.0 million and is utilized primarily to fund working capital needs. Borrowings under this facility bear interest at the one-month London interbank borrowing rate (“LIBOR”) plus 1.50% . At the end of each month, amounts outstanding under this facility may be carried forward for additional one-month periods for up to one year. This facility is subject to certain terms and conditions and may be terminated at any time at the discretion of the bank. There were no borrowings outstanding under this facility as of or during the thirty-nine weeks ended November 1, 2015 . One of the Company’s Latin American subsidiaries has Brazilian real-denominated short-term revolving credit facilities with a number of banks that provide for total available borrowings of R$83.0 million (approximately $21.4 million based on exchange rates in effect on November 1, 2015 ) and are utilized primarily to fund working capital needs. Borrowings under these facilities bear interest at various interest rates. There were no borrowings outstanding under these facilities as of or during the thirty-nine weeks ended November 1, 2015 . The Company also has the ability to draw revolving borrowings under its senior secured credit facilities as discussed in the section entitled “2014 Senior Secured Credit Facilities” below. There were no borrowings outstanding under these facilities as of November 1, 2015 . The maximum amount of revolving borrowings outstanding under these facilities during the thirty-nine weeks ended November 1, 2015 was $ 151.2 million. In addition, the Company has certain other facilities under which there were no borrowings outstanding as of or during the thirty-nine weeks ended November 1, 2015 . Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 11/1/15 11/2/14 Senior secured Term Loan A facility due 2019 $ 1,832.2 $ 1,929.9 Senior secured Term Loan B facility due 2020 707.7 988.4 4 1/2% senior unsecured notes due 2022 700.0 700.0 7 3/4% debentures due 2023 99.7 99.7 Total 3,339.6 3,718.0 Less: Current portion of long-term debt 124.1 99.3 Long-term debt $ 3,215.5 $ 3,618.7 As of November 1, 2015 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Remainder of 2015 $ 24.8 2016 136.6 2017 186.2 2018 198.6 2019 1,291.1 2020 711.6 Total debt repayments for the next five years exceed the carrying balance of the Company’s term loan facilities as of November 1, 2015 because the carrying balance reflects a portion of the original issue discount. As of November 1, 2015 , after taking into account the effect of the Company’s interest rate swap and cap agreements discussed in the section below entitled “2014 Senior Secured Credit Facilities,” which were in effect as of such date, approximately 70% of the Company’s long-term debt had a fixed or capped rate, with the remainder at uncapped variable rates. 2013 Senior Secured Credit Facilities On February 13, 2013, simultaneously with and related to the closing of the Warnaco acquisition, the Company entered into senior secured credit facilities (the “2013 facilities”), the proceeds of which were used to fund a portion of the acquisition, repay all outstanding borrowings under the Company’s prior facilities and repay all of Warnaco’s previously outstanding long-term debt. The 2013 facilities consisted of a $1,700.0 million United States dollar-denominated Term Loan A facility (recorded net of an original issue discount of $7.3 million as of the acquisition date), a $1,375.0 million United States dollar-denominated Term Loan B facility (recorded net of an original issue discount of $6.9 million as of the acquisition date) and senior secured revolving credit facilities in an aggregate principal amount of $750.0 million (based on the applicable exchange rates on February 13, 2013), consisting of (a) a $475.0 million United States dollar-denominated revolving credit facility, (b) a $25.0 million United States dollar-denominated revolving credit facility available in United States dollars or Canadian dollars and (c) a €185.9 million euro-denominated revolving credit facility available in euro, pounds sterling, Japanese yen or Swiss francs. On March 21, 2014, the Company amended and restated the 2013 facilities, as discussed in the following section. 2014 Senior Secured Credit Facilities On March 21, 2014 (the “Restatement Date”), the Company entered into an amendment (the “Amendment”) to the 2013 facilities (as amended by the Amendment, the “2014 facilities”). The Amendment provided for an additional $350.0 million principal amount of loans under the Term Loan A facility and an additional $250.0 million principal amount of loans under the Term Loan B facility and extended the maturity of the Term Loan A and the revolving credit facilities from February 13, 2018 to February 13, 2019. The maturity of the Term Loan B facility remains at February 13, 2020. On the Restatement Date, the Company borrowed the additional principal amounts described above and used the proceeds to redeem all of its outstanding 7 3/8% senior notes, as discussed below in the section entitled “7 3/8% Senior Notes Due 2020.” In connection with entering into the Amendment, the Company paid debt issuance costs of $13.3 million (of which $8.0 million was expensed as debt modification and extinguishment costs and $5.3 million is being amortized over the term of the related debt agreement) and recorded additional debt modification and extinguishment costs of $3.2 million to write-off previously capitalized debt issuance costs. The 2014 facilities consist of a $1,986.3 million United States dollar-denominated Term Loan A facility (recorded net of an original issue discount of $7.8 million), a $1,188.6 million United States dollar-denominated Term Loan B facility (recorded net of an original issue discount of $5.7 million) and senior secured revolving credit facilities consisting of (a) a $475.0 million United States dollar-denominated revolving credit facility, (b) a $25.0 million United States dollar-denominated revolving credit facility available in United States dollars or Canadian dollars and (c) a €185.9 million euro-denominated revolving credit facility available in euro, pounds sterling, Japanese yen or Swiss francs. The revolving credit facilities also include amounts available for letters of credit. As of November 1, 2015 , the Company had no outstanding revolving credit borrowings and $31.1 million of outstanding letters of credit. A portion of each of the United States dollar-denominated revolving credit facilities is also available for the making of swingline loans. The issuance of such letters of credit and the making of any swingline loan reduces the amount available under the applicable revolving credit facility. So long as certain conditions are satisfied, the Company may add one or more term loan facilities or increase the commitments under the revolving credit facilities by an aggregate amount not to exceed the sum of (1) the sum of (x) $1,350.0 million plus (y) the aggregate amount of all voluntary prepayments of term loans under the facilities and the revolving credit facilities (to the extent, in the case of voluntary prepayments of loans under the revolving credit facilities, there is an equivalent permanent reduction of the revolving commitments) plus (z) an amount equal to the aggregate revolving commitments of any defaulting lender (to the extent the commitments with respect thereto have been terminated) and (2) an additional unlimited amount as long as the ratio of the Company’s senior secured net debt to consolidated adjusted earnings before interest, taxes, depreciation and amortization (in each case calculated as set forth in the documentation relating to the 2014 facilities) would not exceed 3 to 1 after giving pro forma effect to the incurrence of such increase. The lenders under the 2014 facilities are not required to provide commitments with respect to such additional facilities or increased commitments. During the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , the Company made payments of $200.5 million and $ 244.7 million, respectively, on its term loans under the 2014 facilities. As of November 1, 2015 , the Company had total term loans outstanding of $2,539.9 million, net of original issue discounts. The terms of each of Term Loan A and Term Loan B contain a mandatory quarterly repayment schedule. Due to previous voluntary payments, the Company is not required to make any additional mandatory payments under Term Loan B prior to maturity. Obligations of the Company under the 2014 facilities are guaranteed by substantially all of the Company’s existing and future direct and indirect United States subsidiaries, with certain exceptions. Obligations of the European Borrower under the 2014 facilities are guaranteed by the Company, substantially all of its existing and future direct and indirect domestic subsidiaries (with certain exceptions) and Tommy Hilfiger Europe B.V., a wholly owned subsidiary of the Company organized in the Netherlands. The Company and its domestic subsidiary guarantors have pledged certain of their assets as security for the obligations under the 2014 facilities. The outstanding borrowings under the 2014 facilities are prepayable at any time without penalty (other than customary breakage costs). The terms of the 2014 facilities require the Company to repay certain amounts outstanding thereunder with (a) net cash proceeds of the incurrence of certain indebtedness, (b) net cash proceeds of certain asset sales or other dispositions (including as a result of casualty or condemnation) that exceed certain thresholds, to the extent such proceeds are not reinvested or committed to be reinvested in the business in accordance with customary reinvestment provisions, and (c) a percentage of excess cash flow, which percentage is based upon the Company’s net leverage ratio during the relevant fiscal period. The United States dollar-denominated borrowings under the 2014 facilities bear interest at a rate equal to an applicable margin plus, as determined at the Company’s option, either (a) a base rate determined by reference to the greater of (i) the prime rate, (ii) the United States federal funds rate plus 1/2 of 1.00% and (iii) a one-month adjusted Eurocurrency rate plus 1.00% (provided, that, with respect to the Term Loan B facility, in no event will the base rate be deemed to be less than 1.75% ) or (b) an adjusted Eurocurrency rate, calculated in a manner set forth in the 2014 facilities (provided that, with respect to the Term Loan B facility, in no event will the adjusted Eurocurrency rate be deemed to be less than 0.75% ). Canadian dollar-denominated borrowings under the 2014 facilities bear interest at a rate equal to an applicable margin plus, as determined at the Company’s option, either (a) a Canadian prime rate determined by reference to the greater of (i) the rate of interest per annum that Royal Bank of Canada establishes at its main office in Toronto, Ontario as the reference rate of interest in order to determine interest rates for loans in Canadian dollars to its Canadian borrowers and (ii) the sum of (x) the average of the rates per annum for Canadian dollar bankers’ acceptances having a term of one month that appears on the display referred to as “CDOR Page” of Reuters Monitor Money Rate Services as of 10:00 a.m. (Toronto time) on the date of determination, as reported by the administrative agent (and if such screen is not available, any successor or similar service as may be selected by the administrative agent), and (y) 0.75% , or (b) an adjusted Eurocurrency rate, calculated in a manner set forth in the Amendment. The borrowings under the 2014 facilities in currencies other than United States dollars or Canadian dollars bear interest at a rate equal to an applicable margin plus an adjusted Eurocurrency rate, calculated in a manner set forth in the Amendment. The current applicable margin with respect to the Term Loan A facility and each revolving credit facility is 1.50% for adjusted Eurocurrency rate loans and 0.50% for base rate loans, respectively. The current applicable margin with respect to the Term Loan B facility is 2.50% for adjusted Eurocurrency rate loans and 1.50% for base rate loans, respectively. After the date of delivery of the compliance certificate and financial statements with respect to the Company’s fiscal quarter ending November 1, 2015 , the applicable margin for borrowings under the Term Loan A facility, the Term Loan B facility and the revolving credit facilities is subject to adjustment based upon the Company’s net leverage ratio. The 2014 facilities contain customary events of default, including but not limited to nonpayment; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; cross-default to material indebtedness; certain material judgments; certain events related to the Employee Retirement Income Security Act of 1974, as amended; certain events related to certain of the guarantees by the Company and certain of its subsidiaries, and certain pledges of its assets and those of certain of its subsidiaries, as security for the obligations under the 2014 facilities; and a change in control (as defined in the 2014 facilities). During the second quarter of 2014, the Company entered into an interest rate cap agreement for an 18-month term commencing on August 18, 2014. The agreement was designed with the intended effect of capping the interest rate on an initial notional amount of $514.2 million of the Company’s variable rate debt obligation under the 2014 facilities, or any replacement facility with similar terms. Such agreement remains outstanding with a notional amount of $ 617.0 million as of November 1, 2015 . Under the terms of this agreement, the one-month LIBOR that the Company will pay is capped at a rate of 1.50% . Therefore, the maximum amount of interest that the Company will pay on the then-outstanding notional amount will be at the 1.50% capped rate, plus the current applicable margin. During the second quarter of 2014, the Company entered into an interest rate swap agreement for a two-year term commencing on February 17, 2016. The agreement was designed with the intended effect of converting an initial notional amount of $682.6 million of the Company’s variable rate debt obligation under the 2014 facilities, or any replacement facility with similar terms, to fixed rate debt. Under the terms of the agreement for the then-outstanding notional amount, the Company’s exposure to fluctuations in the one-month LIBOR is eliminated and it will pay a weighted average fixed rate of 1.924% , plus the current applicable margin. During the second quarter of 2013, the Company entered into an interest rate swap agreement for a three-year term commencing on August 19, 2013. The agreement was designed with the intended effect of converting an initial notional amount of $1,228.8 million of the Company’s variable rate debt obligation under its previously outstanding 2013 facilities, or any replacement facility with similar terms, to fixed rate debt. Such agreement remains outstanding with a notional amount of $860.0 million as of November 1, 2015 , and is now converting a portion of the Company’s variable rate debt obligation under the 2014 facilities to fixed rate debt. Under the terms of the agreement for the then-outstanding notional amount, the Company’s exposure to fluctuations in the one-month LIBOR is eliminated and it will pay a fixed rate of 0.604% , plus the current applicable margin. In addition, the Company entered into an interest rate swap agreement for a three-year term commencing on June 6, 2011. The agreement was designed with the intended effect of converting an initial notional amount of $632.0 million of the Company’s variable rate debt obligation under its previously outstanding 2011 facilities, or any replacement facility with similar terms, to fixed rate debt. The agreement expired on June 6, 2014. The notional amount of each interest rate swap and cap will be adjusted according to a pre-set schedule during the term of each swap and cap agreement such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the Term Loan A facility is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps and cap. The 2014 facilities also contain covenants that restrict the Company’s ability to finance future operations or capital needs, to take advantage of other business opportunities that may be in its interest or to satisfy its obligations under its other outstanding debt. These covenants restrict the Company’s ability to, among other things: • incur or guarantee additional debt or extend credit; • make restricted payments, including paying dividends or making distributions on, or redeeming or repurchasing, the Company’s capital stock or certain debt; • make acquisitions and investments; • dispose of assets; • engage in transactions with affiliates; • enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; • create liens on the Company’s assets or engage in sale/leaseback transactions; and • effect a consolidation or merger, or sell, transfer, or lease all or substantially all of the Company’s assets. The 2014 facilities require the Company to comply with certain financial covenants, including minimum interest coverage and maximum net leverage. A breach of any of these operating or financial covenants would result in a default under the applicable facility. If an event of default occurs and is continuing, the lenders could elect to declare all amounts then outstanding, together with accrued interest, to be immediately due and payable which would result in acceleration of the Company’s other debt. If the Company was unable to repay any such borrowings when due, the lenders could proceed against their collateral, which also secures some of the Company’s other indebtedness. 4 1/2% Senior Notes Due 2022 On December 20, 2012, the Company issued $700.0 million principal amount of 4 1/2% senior notes due December 15, 2022 in connection with the Warnaco acquisition. Subject to certain conditions, the Company may redeem up to 35% of these notes prior to December 15, 2015 with the net cash proceeds of certain equity offerings without having to pay a penalty or “make whole” premium. The Company may redeem some or all of these notes at any time prior to December 15, 2017 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after December 15, 2017 at specified redemption prices plus any accrued and unpaid interest. The Company’s ability to pay cash dividends and make other restricted payments is limited, in each case, over specified amounts as defined in the indenture governing the notes. 7 3/4% Debentures Due 2023 The Company has outstanding $100.0 million of debentures due November 15, 2023 with a yield to maturity of 7.80% . The debentures accrue interest at the rate of 7 3/4% . Pursuant to the indenture governing the debentures, the Company must maintain a certain level of stockholders’ equity in order to pay cash dividends and make other restricted payments, as defined in the indenture governing the debentures. 7 3/8% Senior Notes Due 2020 On May 6, 2010, the Company issued $600.0 million principal amount of 7 3/8% senior notes due May 15, 2020. On March 24, 2014, in connection with the amendment and restatement of the 2013 facilities discussed above in the section entitled “2014 Senior Secured Credit Facilities,” the Company redeemed all of its outstanding 7 3/8% senior notes and, pursuant to the indenture under which the notes were issued, paid a “make whole” premium of $67.6 million to the holders of the notes. The Company also recorded costs of $14.3 million to write-off previously capitalized debt issuance costs associated with these notes. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Nov. 01, 2015 | |
Income Taxes [Line Items] | |
INCOME TAXES | INCOME TAXES The effective income tax rates for the thirteen weeks ended November 1, 2015 and November 2, 2014 were 1.9% and 8.9% , respectively. The effective income tax rates for the thirty-nine weeks ended November 1, 2015 and November 2, 2014 were 12.2% and 7.1% , respectively. The effective income tax rates for the thirteen and thirty-nine weeks ended November 1, 2015 were lower than the United States statutory rate principally due to the benefit of lower tax rates in certain international jurisdictions where the Company files tax returns and the benefit of discrete items. The benefit of discrete items for the thirteen and thirty-nine weeks ended November 1, 2015 included the favorable impact on certain liabilities for uncertain tax positions from the expiration of applicable statutes of limitation. The effective income tax rates for the thirteen and thirty-nine weeks ended November 2, 2014 were lower than the United States statutory rate principally due to the benefit of lower tax rates in certain international jurisdictions where the Company files tax returns, the recognition of foreign tax credits generated from Warnaco integration activities and the benefit of discrete items. The benefit of discrete items for the thirteen and thirty-nine weeks ended November 2, 2014 included the favorable impact on certain liabilities for uncertain tax positions from the expiration of applicable statutes of limitation. The benefit of discrete items for the thirty-nine weeks ended November 2, 2014 also included the favorable resolution in the second quarter of 2014 of uncertain tax positions approximating $ 24.0 million in international jurisdictions, and of an uncertain tax position approximating $ 6.0 million related to European and United States transfer pricing arrangements. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company has exposure to changes in foreign currency exchange rates related to certain anticipated cash flows principally associated with certain international inventory purchases and certain intercompany transactions. The Company periodically uses foreign currency forward exchange contracts to hedge against a portion of this exposure. The Company also has exposure to interest rate volatility related to its senior secured term loan facilities. The Company has entered into interest rate swap agreements and an interest rate cap agreement to hedge against a portion of this exposure. Please see Note 8, “Debt,” for a further discussion of the Company’s 2014 facilities and these agreements. The Company records the foreign currency forward exchange contracts and interest rate contracts at fair value in its Consolidated Balance Sheets, and does not net the related assets and liabilities. Changes in fair value of the foreign currency forward exchange contracts associated with certain international inventory purchases and the interest rate contracts that are designated as effective hedging instruments (collectively referred to as “cash flow hedges”) are recorded in equity as a component of accumulated other comprehensive (loss) income (“AOCI”). The cash flows from such hedges are presented in the same category in the Company’s Consolidated Statements of Cash Flows as the items being hedged. No amounts were excluded from effectiveness testing. There was no ineffective portion of cash flow hedges during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 . In addition, the Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”), including all of the foreign currency forward exchange contracts related to intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts related to intercompany loans are largely offset by the remeasurement of the underlying intercompany loan balances. The Company does not use derivative financial instruments for trading or speculative purposes. The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: (In millions) Asset Derivatives (Classified in Other Current Assets and Other Assets) Liability Derivatives (Classified in Accrued Expenses and Other Liabilities) 11/1/15 11/2/14 11/1/15 11/2/14 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 21.2 $ 36.3 $ 3.7 $ 0.1 Interest rate contracts 0.1 2.6 18.1 9.9 Total contracts designated as cash flow hedges 21.3 38.9 21.8 10.0 Undesignated contracts: Foreign currency forward exchange contracts (principally intercompany transactions) 17.6 13.0 0.6 0.3 Total undesignated contracts 17.6 13.0 0.6 0.3 Total $ 38.9 $ 51.9 $ 22.4 $ 10.3 At November 1, 2015 , the notional amount outstanding of foreign currency forward exchange contracts was $894.0 million. Such contracts expire principally between November 2015 and January 2017. The following table summarizes the effect of the Company’s hedges designated as cash flow hedging instruments: (Loss) Gain Recognized in Other Comprehensive (Loss) Income Gain (Loss) Reclassified from AOCI into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Foreign currency forward exchange contracts (inventory purchases) $ (3.2 ) $ 36.9 Cost of goods sold $ 26.8 $ 2.9 Interest rate contracts (4.7 ) (5.7 ) Interest expense (0.9 ) (1.5 ) Total $ (7.9 ) $ 31.2 $ 25.9 $ 1.4 Thirty-Nine Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Foreign currency forward exchange contracts (inventory purchases) $ 20.5 $ 38.1 Cost of goods sold $ 74.9 $ (2.6 ) Interest rate contracts (6.2 ) (8.0 ) Interest expense (3.1 ) (5.1 ) Total $ 14.3 $ 30.1 $ 71.8 $ (7.7 ) A net gain in AOCI on foreign currency forward exchange contracts at November 1, 2015 of $44.1 million is estimated to be reclassified in the next 12 months in the Company’s Consolidated Income Statements to costs of goods sold as the underlying inventory is purchased and sold. In addition, a net loss in AOCI for interest rate contracts at November 1, 2015 of $8.9 million is estimated to be reclassified to interest expense within the next 12 months. The following table summarizes the effect of the Company’s foreign currency forward exchange undesignated contracts: (In millions) (Loss) Gain Recognized in Income Thirteen Weeks Ended Location 11/1/15 11/2/14 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ (1.6 ) $ 13.2 Thirty-Nine Weeks Ended Location 11/1/15 11/2/14 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ 2.9 $ 12.9 The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of November 1, 2015 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FASB guidance for fair value measurements defines fair value 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. It also establishes a three level hierarchy that prioritizes the inputs used to measure fair value. The three levels of the hierarchy are defined as follows: Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. Level 3 – Unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: (In millions) 11/1/15 2/1/15 11/2/14 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 38.8 N/A $ 38.8 N/A $ 110.4 N/A $ 110.4 N/A $ 49.3 N/A $ 49.3 Interest rate contracts N/A 0.1 N/A 0.1 N/A 0.6 N/A 0.6 N/A 2.6 N/A 2.6 Total Assets N/A $ 38.9 N/A $ 38.9 N/A $ 111.0 N/A $ 111.0 N/A $ 51.9 N/A $ 51.9 Liabilities: Foreign currency forward exchange contracts N/A $ 4.3 N/A $ 4.3 N/A $ 1.3 N/A $ 1.3 N/A $ 0.4 N/A $ 0.4 Interest rate contracts N/A 18.1 N/A 18.1 N/A 15.3 N/A 15.3 N/A 9.9 N/A 9.9 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 3.6 3.6 N/A N/A $ 4.0 4.0 N/A N/A $ 5.1 5.1 Total Liabilities N/A $ 22.4 $ 3.6 $ 26.0 N/A $ 16.6 $ 4.0 $ 20.6 N/A $ 10.3 $ 5.1 $ 15.4 The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair values of the interest rate contracts are based on observable interest rate yield curves and represent the expected discounted cash flows underlying the financial instruments. Pursuant to the agreement governing the reacquisition of the rights in India to the Tommy Hilfiger trademarks (which the Company entered into in September 2011 in connection with its acquisition of its 50% ownership of TH India), the Company is required to make annual contingent purchase price payments based on a percentage of sales of Tommy Hilfiger products in India in excess of an agreed upon threshold during each of five consecutive 12-month periods (extended to a sixth consecutive 12-month period if the aggregate payments for the five 12-month periods are not at least $ 15.0 million, which appears will likely be the case). Such payments are subject to a $ 25.0 million aggregate maximum and are due within 60 days following each one-year period. The Company made annual contingent purchase price payments of $0.6 million, $ 0.6 million, $ 0.4 million and $ 0.2 million during 2015, 2014, 2013 and 2012, respectively. The Company is required to remeasure this liability at fair value on a recurring basis and classifies this as a Level 3 measurement. The fair value of such liability was determined using the discounted cash flow method, based on net sales projections for the Tommy Hilfiger apparel and accessories businesses in India, and was discounted using rates of return that account for the relative risks of the estimated future cash flows. Excluding the initial recognition of the liability for the contingent purchase price payments and payments made to reduce the liability, changes in the fair value are included within selling, general and administrative expenses in the Company’s Consolidated Income Statements. The following table presents the change in the Level 3 contingent purchase price payment liability during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 : (In millions) Thirty-Nine Weeks Ended 11/1/15 11/2/14 Beginning Balance $ 4.0 $ 4.2 Payments (0.6 ) (0.6 ) Adjustments included in earnings 0.2 1.5 Ending Balance $ 3.6 $ 5.1 Additional information with respect to assumptions used to value the contingent purchase price payment liability as of November 1, 2015 is as follows: Unobservable Inputs Amount Approximate compounded annual net sales growth rate 35.0 % Approximate discount rate 15.0 % A five percentage point increase or decrease in the discount rate would change the liability by approximately $ 0.5 million. A five percentage point increase or decrease in the compounded annual net sales growth rate would change the liability by approximately $ 0.5 million. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. The following table shows the fair value of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a nonrecurring basis (consisting of property, plant and equipment) during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments Level 1 Level 2 Level 3 November 1, 2015 N/A N/A $ — $ — $ 2.8 November 2, 2014 N/A N/A $ — $ — $ 4.8 Long-lived assets with a carrying amount of $ 2.8 million were written down to a fair value of zero during the thirty-nine weeks ended November 1, 2015 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using current sales trends and market participant assumptions. The impairment charge of $ 2.8 million was included in selling, general and administrative expenses, of which $ 2.0 million was recorded in the Calvin Klein North America segment, $ 0.5 million was recorded in the Calvin Klein International segment and $ 0.3 million was recorded in the Tommy Hilfiger International segment. Long-lived assets with a carrying amount of $ 4.8 million were written down to a fair value of zero during the thirty-nine weeks ended November 2, 2014 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using current sales trends and market participant assumptions. The impairment charge of $ 4.8 million was included in selling, general and administrative expenses, of which $ 0.1 million was recorded in the Calvin Klein North America segment, $ 3.4 million was recorded in the Tommy Hilfiger North America segment and $ 1.3 million was recorded in the Heritage Brands Retail segment. In connection with the sale of substantially all of the assets of the Company’s G. H. Bass & Co. (“Bass”) business in the fourth quarter of 2013, the Company guaranteed lease payments for substantially all Bass retail stores included in the sale pursuant to the terms of noncancelable leases expiring on various dates through 2022 . These guarantees include minimum rent payments and relate to leases that commenced prior to the sale of the Bass assets. In certain instances, the Company’s guarantee remains in effect when an option is exercised to extend the term of the lease. The estimated fair value of these guarantee obligations as of November 1, 2015 , February 1, 2015 and November 2, 2014 was $ 2.1 million, $ 3.0 million and $ 3.2 million, respectively, which was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. The Company classifies these as Level 3 measurements. The fair value of such guarantee obligations was determined using the discounted cash flow method, based on the guaranteed lease payments, the estimated probability of lease extensions and estimates of the risk of default by the buyer of the Bass assets, and was discounted using rates of return that account for the relative risks of the estimated future cash flows. The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt as of November 1, 2015 , February 1, 2015 and November 2, 2014 were as follows: (In millions) 11/1/15 2/1/15 11/2/14 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 369.9 $ 369.9 $ 479.3 $ 479.3 $ 365.1 $ 365.1 Short-term borrowings 27.6 27.6 8.5 8.5 39.9 39.9 Long-term debt (including portion classified as current) 3,339.6 3,370.1 3,538.0 3,567.7 3,718.0 3,729.6 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying values due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Nov. 01, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock-based awards under its 2006 Stock Incentive Plan (the “2006 Plan”). The 2006 Plan replaced the Company’s 2003 Stock Option Plan (the “2003 Plan”) and certain other prior stock option plans. The 2003 Plan and these other plans terminated upon the 2006 Plan’s initial stockholder approval in June 2006, other than with respect to outstanding options, which continued to be governed by the applicable prior plan. Only awards under the 2003 Plan continue to be outstanding insofar as these prior plans are concerned. Shares issued as a result of stock-based compensation transactions generally have been funded with the issuance of new shares of the Company’s common stock. The Company may grant the following types of incentive awards under the 2006 Plan (i) non-qualified stock options (“NQs”); (ii) incentive stock options (“ISOs”); (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock units (“RSUs”); (vi) performance shares and performance share units (“PSUs”); and (vii) other stock-based awards. Each award granted under the 2006 Plan is subject to an award agreement that incorporates, as applicable, the exercise price, the term of the award, the periods of restriction, the number of shares to which the award pertains, applicable performance period(s) and performance measure(s), and such other terms and conditions as the plan committee determines. Through November 1, 2015 , the Company has granted under the 2006 Plan (i) service-based NQs, RSUs and restricted stock; (ii) contingently issuable PSUs; and (iii) RSUs that are intended to satisfy the performance-based condition for deductibility under Section 162(m) of the Internal Revenue Code. According to the terms of the 2006 Plan, for purposes of determining the number of shares available for grant, with the exception of the Warnaco employee replacement awards discussed below, each share underlying a stock option award reduces the number available by one share and each share underlying a restricted stock award, RSU or PSU reduces the number available by two shares. Each share underlying a Warnaco employee replacement stock option, restricted stock, RSU or PSU reduces the number available by one share. The per share exercise price of options granted under the 2006 Plan cannot be less than the closing price of the common stock on the date of grant (the business day prior to the date of grant for awards granted prior to September 21, 2006). The Company currently has service-based NQs outstanding under the 2003 Plan. Such stock options were granted with an exercise price equal to the closing price of the Company’s common stock on the business day immediately preceding the date of grant. Under the terms of the merger agreement in connection with the Warnaco acquisition, each outstanding award of stock options, restricted stock and restricted stock units made by Warnaco was assumed by the Company and converted into an award of the same type, and subject to the same terms and conditions, but payable in shares of Company common stock. The replacement stock options are generally exercisable in three equal annual installments commencing one year after the date of original grant and the replacement RSUs and restricted stock awards generally vest three years after the date of original grant, principally on a cliff basis. The Company accounted for the replacement awards as a modification of the existing awards. As such, a new fair value was assigned to the awards, a portion of which was included as part of the merger consideration. The merger consideration of $39.8 million was determined by multiplying the estimated fair value of the Warnaco awards outstanding at the effective time of the Warnaco acquisition, net of the estimated value of awards to be forfeited, by the proportionate amount of the vesting period that had lapsed as of the acquisition date. The remaining fair value, net of estimated forfeitures, is being expensed over the awards’ remaining vesting periods. Net income for the thirty-nine weeks ended November 1, 2015 and November 2, 2014 included $ 31.4 million and $ 37.3 million, respectively, of pre-tax expense related to stock-based compensation, with recognized income tax benefits of $ 7.9 million and $ 9.5 million, respectively. Stock options currently outstanding, with the exception of the Warnaco employee replacement awards discussed above, are generally exercisable in four equal annual installments commencing one year after the date of grant. The vesting of such options outstanding is also generally accelerated upon retirement (as defined in the applicable plan). Such options are granted with a 10 -year term. The Company estimates the fair value of stock options granted at the date of grant using the Black-Scholes-Merton model. The estimated fair value of the options, net of estimated forfeitures, is expensed over the options’ vesting periods. The following summarizes the assumptions used to estimate the fair value of service-based stock options granted during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 : Thirty-Nine Weeks Ended 11/1/15 11/2/14 Weighted average risk-free interest rate 1.54 % 2.15 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 36.26 % 44.12 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 40.20 $ 56.21 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected option term. The expected option term represents the weighted average period of time that options granted are expected to be outstanding, based on vesting schedules and the contractual term of the options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected option term. Expected dividends are based on the Company’s common stock cash dividend rate at the date of grant. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving option grants, mainly due to acquisitions. The Company will continue to evaluate the appropriateness of utilizing such method. Service-based stock option activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at February 1, 2015 1,472 $ 64.14 Granted 175 107.18 Exercised 114 49.72 Cancelled 17 107.29 Outstanding at November 1, 2015 1,516 $ 69.71 Exercisable at November 1, 2015 1,132 $ 55.54 RSUs granted to employees, with the exception of the Warnaco employee replacement awards, generally vest in three annual installments of 25% , 25% and 50% commencing two years after the date of grant. Service-based RSUs granted to non-employee directors vest in full one year after the date of grant. The underlying RSU award agreements (excluding agreements for non-employee director awards made during or after 2010) generally provide for accelerated vesting upon the award recipient’s retirement (as defined in the 2006 Plan). The fair value of service-based RSUs, with the exception of the Warnaco employee replacement awards, is equal to the closing price of the Company’s common stock on the date of grant and is expensed, net of estimated forfeitures, over the RSUs’ vesting periods. RSU activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 1, 2015 640 $ 107.42 Granted 302 104.65 Vested 200 86.75 Cancelled 66 112.99 Non-vested at November 1, 2015 676 $ 111.74 The Company’s restricted stock awards consist solely of awards to Warnaco employees that were replaced with Company restricted stock as of the effective time of the Warnaco acquisition. The fair value of restricted stock with respect to awards for which the vesting period had not lapsed as of the acquisition date was equal to the closing price of the Company’s common stock on February 12, 2013 and is expensed, net of forfeitures, over the vesting period. Restricted stock activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per share data) Restricted Stock Weighted Average Grant Date Fair Value Per Share Non-vested at February 1, 2015 20 $ 120.72 Granted — — Vested 17 120.72 Cancelled 1 120.72 Non-vested at November 1, 2015 2 $ 120.72 The Company granted contingently issuable PSUs to certain of the Company’s senior executives during the first quarter of each of 2012, 2013 and 2014. These awards were (are) subject to achievement of an earnings per share and, in the case of the awards made in 2012, a return on equity goal for the two-year performance period beginning with the year of grant and a service period of one year beyond the certification of performance. For the awards granted in the first quarter of 2014, the final number of shares that will be earned, if any, is contingent upon the Company’s achievement of goals for the performance period based on earnings per share growth during the performance cycle. For the awards granted in the first quarter of 2013, the two-year performance period has ended and the holders earned an aggregate of 26,000 shares, which will vest and be paid out subject to and following the additional one-year service period. The holders of the awards granted in the first quarter of 2012 earned an aggregate of 54,000 shares, which were paid out in the first quarter of 2015. For such awards, the Company records expense ratably over each applicable vesting period based on fair value and the Company’s current expectations of the probable number of shares that will ultimately be issued. The fair value of these contingently issuable PSUs is equal to the closing price of the Company’s common stock on the date of grant, reduced for the present value of any dividends expected to be paid on the Company’s common stock during the performance cycle, as these contingently issuable PSUs do not accrue dividends prior to the completion of the performance cycle. The Company granted contingently issuable PSUs to certain of the Company’s executives during the second quarter of 2013 and to certain of the Company’s senior executives during the first quarter of 2015 subject to a performance period of three years. For the awards granted in the second quarter of 2013 and the first quarter of 2015, the final number of shares that will be earned, if any, is contingent upon the Company’s achievement of goals for the applicable performance period, of which 50% is based upon the Company’s absolute stock price growth during the applicable performance period and 50% is based upon the Company’s total shareholder return during the applicable performance period relative to other companies included in the S&P 500 as of the date of grant. The Company records expense ratably over the applicable vesting period, net of estimated forfeitures, regardless of whether the market condition is satisfied because the awards are subject to market conditions. The fair value of the awards granted in the first quarter of 2015 was established on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: Risk-free interest rate 0.90 % Expected Company volatility 29.10 % Expected annual dividends per share $ 0.15 Grant date fair value per PSU $ 101.23 PSU activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 1, 2015 553 $ 119.95 Granted 46 101.23 Vested 54 88.52 Cancelled 51 122.15 Non-vested at November 1, 2015 494 $ 121.42 The Company receives a tax deduction for certain transactions associated with its stock plan awards. The actual income tax benefits realized from these transactions for the thirty-nine weeks ended November 1, 2015 and November 2, 2014 were $ 10.8 million and $ 15.8 million, respectively. Of those amounts, $ 5.0 million and $ 9.3 million, respectively, were reported as excess tax benefits. Excess tax benefits arise when the actual tax benefit resulting from a stock plan award transaction exceeds the tax benefit associated with the grant date fair value of the related stock award. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 9 Months Ended |
Nov. 01, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income [Text Block] | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents the changes in AOCI, net of related taxes, by component for the thirty-nine weeks ended November 1, 2015 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain on effective hedges Total Balance, February 1, 2015 $ (496.2 ) $ 0.4 $ 79.3 $ (416.5 ) Other comprehensive (loss) income before reclassifications (150.1 ) — 22.1 (128.0 ) Less: Amounts reclassified from AOCI — 0.2 70.5 70.7 Other comprehensive loss (150.1 ) (0.2 ) (48.4 ) (198.7 ) Balance, November 1, 2015 $ (646.3 ) $ 0.2 $ 30.9 $ (615.2 ) The following table presents the changes in AOCI, net of related taxes, by component for the thirty-nine weeks ended November 2, 2014 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized (loss) gain on effective hedges Total Balance, February 2, 2014 $ 50.1 $ 1.0 $ (8.8 ) $ 42.3 Other comprehensive (loss) income before reclassifications (210.0 ) — 30.6 (179.4 ) Less: Amounts reclassified from AOCI (2.0 ) 0.4 (5.9 ) (7.5 ) Other comprehensive (loss) income (208.0 ) (0.4 ) 36.5 (171.9 ) Balance, November 2, 2014 $ (157.9 ) $ 0.6 $ 27.7 $ (129.6 ) The following table presents reclassifications out of AOCI to earnings for the thirteen and thirty-nine weeks ended November 1, 2015 and November 2, 2014 : Amount Reclassified from AOCI Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended Thirty-Nine Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Realized gain (loss) on effective hedges: Foreign currency forward exchange contracts $ 26.8 $ 2.9 $ 74.9 $ (2.6 ) Cost of goods sold Interest rate contracts (0.9 ) (1.5 ) (3.1 ) (5.1 ) Interest expense Less: Tax effect 0.7 (0.7 ) 1.3 (1.8 ) Income tax expense Total, net of tax $ 25.2 $ 2.1 $ 70.5 $ (5.9 ) Amortization of retirement liability items: Prior service credit $ 0.1 $ 0.3 $ 0.3 $ 0.7 Selling, general and administrative expenses Less: Tax effect 0.0 0.1 0.1 0.3 Income tax expense Total, net of tax $ 0.1 $ 0.2 $ 0.2 $ 0.4 Foreign currency translation adjustments: Deconsolidation of foreign subsidiaries and joint venture $ — $ — $ — $ (2.0 ) Selling, general and administrative expenses Less: Tax effect — — — — Income tax expense Total, net of tax $ — $ — $ — $ (2.0 ) |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Nov. 01, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY The Company’s Board of Directors authorized a $ 500.0 million three-year stock repurchase program effective June 3, 2015. Repurchases under the program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as the Company deems appropriate. Purchases are made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, restrictions under the Company’s debt arrangements, trading restrictions under the Company’s insider trading policy, and other relevant factors. The program may be modified, including to increase or decrease the repurchase limitation or extend, suspend, or terminate the program, by the Company at any time, without prior notice. During the thirty-nine weeks ended November 1, 2015, the Company purchased approximately 0.7 million shares of its common stock in open market transactions for $ 75.4 million under the program. As of November 1, 2015, the repurchased shares were held as treasury stock and $ 424.6 million of the authorization remained available for future share repurchases. Treasury stock activity also includes shares that were withheld in conjunction with the settlement of vested RSUs, PSUs and restricted stock to satisfy tax withholding requirements. |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
EXIT ACTIVITY COSTS | EXIT ACTIVITY COSTS Izod Retail Exit Costs In connection with the Company’s exit in 2015 of the Izod retail business, the Company incurred certain costs related to severance and termination benefits, long-lived asset and goodwill impairments and lease/contract terminations. Such costs were as follows: (In millions) Total Expected to be Incurred Incurred During the Thirteen Weeks Ended 11/1/15 Incurred During the Thirty-Nine Weeks Ended 11/1/15 Cumulative Incurred To Date Severance, termination benefits and other costs $ 8.5 $ 0.2 $ 5.8 $ 8.2 Long-lived asset and goodwill impairments 17.7 — — 17.7 Lease/contract termination and related costs 5.7 0.4 5.7 5.7 Total $ 31.9 $ 0.6 $ 11.5 $ 31.6 The above charges relate to selling, general and administrative expenses of the Heritage Brands Retail segment. Please see Note 18, “Segment Data” for a further discussion of the Company’s reportable segments. The liabilities at November 1, 2015 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/1/15 Costs Incurred During the Thirty-Nine Weeks Ended 11/1/15 Costs Paid During the Thirty-Nine Weeks Ended 11/1/15 Liability at 11/1/15 Severance, termination benefits and other costs $ 2.3 $ 5.8 $ 6.1 $ 2.0 Lease/contract termination and related costs — 5.7 5.6 0.1 Total $ 2.3 $ 11.5 $ 11.7 $ 2.1 Warnaco Integration Costs In connection with the Company’s acquisition of Warnaco during the first quarter of 2013 and the related integration, the Company incurred certain costs related to severance and termination benefits, inventory liquidations and lease/contract terminations. Such costs were as follows: (In millions) Total Expected to be Incurred Incurred During the Thirteen Weeks Ended 11/1/15 Incurred During the Thirty-Nine Weeks Ended 11/1/15 Cumulative Incurred To Date Severance, termination benefits and other costs $ 171.9 $ 4.3 $ 13.1 $ 168.3 Inventory liquidation costs 36.1 — — 36.1 Lease/contract termination and related costs 70.3 0.3 1.1 68.4 Total $ 278.3 $ 4.6 $ 14.2 $ 272.8 Of the charges for severance and termination benefits, lease/contract termination and other costs incurred during the thirty-nine weeks ended November 1, 2015 , $ 3.3 million relate to selling, general and administrative expenses of the Calvin Klein North America segment, $ 1.4 million relate to selling, general and administrative expenses of the Calvin Klein International segment, $ 4.2 million relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $ 5.3 million relate to corporate expenses not allocated to any reportable segment. The remaining charges for severance and termination benefits, lease/contract termination and other costs expected to be incurred relate principally to the aforementioned segments and corporate expenses not allocated to any reportable segment. Please see Note 18, “Segment Data” for a further discussion of the Company’s reportable segments. The liabilities at November 1, 2015 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/1/15 Costs Incurred During the Thirty-Nine Weeks Ended 11/1/15 Costs Paid During the Thirty-Nine Weeks Ended 11/1/15 Liability at 11/1/15 Severance, termination benefits and other costs $ 14.0 $ 13.1 $ 21.5 $ 5.6 Lease/contract termination and related costs 7.6 1.1 7.6 1.1 Total $ 21.6 $ 14.2 $ 29.1 $ 6.7 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE The Company computed its basic and diluted net income per common share as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions, except per share data) 11/1/15 11/2/14 11/1/15 11/2/14 Net income attributable to PVH Corp. $ 221.9 $ 225.7 $ 438.2 $ 387.5 Weighted average common shares outstanding for basic net income per common share 82.4 82.4 82.6 82.3 Weighted average impact of dilutive securities 0.7 0.9 0.7 0.9 Total shares for diluted net income per common share 83.1 83.3 83.3 83.2 Basic net income per common share attributable to PVH Corp. $ 2.69 $ 2.74 $ 5.31 $ 4.71 Diluted net income per common share attributable to PVH Corp. $ 2.67 $ 2.71 $ 5.26 $ 4.66 Potentially dilutive securities excluded from the calculation of diluted net income per common share were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Weighted average potentially dilutive securities 0.6 0.4 0.6 0.4 Shares underlying contingently issuable awards that have not met the necessary conditions as of the end of a reporting period are not included in the calculation of diluted net income per common share for that period. The Company had contingently issuable awards outstanding that did not meet the performance conditions as of November 1, 2015 and November 2, 2014 and, therefore, were excluded from the calculation of diluted net income per common share for the thirteen and thirty-nine weeks ended November 1, 2015 and November 2, 2014 . The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.8 million and 1.0 million as of November 1, 2015 and November 2, 2014 , respectively. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above. |
NONCASH INVESTING AND FINANCING
NONCASH INVESTING AND FINANCING TRANSACTIONS | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
NONCASH INVESTING AND FINANCING TRANSACTIONS | NONCASH INVESTING AND FINANCING TRANSACTIONS During the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , the Company recorded increases to goodwill of $38.6 million and $38.5 million, respectively, related to liabilities incurred for contingent purchase price payments to Mr. Calvin Klein. Such amounts are not due or paid in cash until 45 days subsequent to the Company’s applicable quarter end. As such, during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , the Company paid $34.4 million and $34.9 million, respectively, in cash related to contingent purchase price payments to Mr. Calvin Klein that were recorded as additions to goodwill during the periods the liabilities were incurred. During the first quarter of 2014, the Company recorded a loss of $ 17.5 million to write-off previously capitalized debt issuance costs in connection with the amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8 % senior notes due 2020. Omitted from purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows for the thirty-nine weeks ended November 1, 2015 and November 2, 2014 are $ 4.1 million and $ 3.3 million, respectively, of assets acquired through capital leases. Omitted from investments in unconsolidated affiliates in the Company’s Consolidated Statement of Cash Flows for the thirty-nine weeks ended November 2, 2014 are noncash increases in the investment balances related to the Company’s Calvin Klein Australia joint venture and Calvin Klein India joint venture of $ 3.7 million and $ 6.2 million, respectively, resulting from the deconsolidation of these entities. Please see Note 4, “Investments in Unconsolidated Affiliates,” and Note 5, “Redeemable Non-Controlling Interest,” for further discussions. |
SEGMENT DATA
SEGMENT DATA | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages its operations through its operating divisions, which are presented as six reportable segments: (i) Calvin Klein North America; (ii) Calvin Klein International; (iii) Tommy Hilfiger North America; (iv) Tommy Hilfiger International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail. Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in North America, primarily to department and specialty stores; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce websites in North America, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the brand names Calvin Klein Collection , Calvin Klein (platinum label) and Calvin Klein (white label) for a broad array of products and retail services in North America. Calvin Klein International Segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale principally in Europe, Asia and Brazil, primarily to department and specialty stores, franchisees of Calvin Klein, distributors and licensees; (ii) operating retail stores and e-commerce websites in Europe, Asia and Brazil, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the brand names Calvin Klein Collection , Calvin Klein (platinum label) and Calvin Klein (white label) for a broad array of products and retail services outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Calvin Klein foreign affiliates in Australia and India. Tommy Hilfiger North America Segment - This segment consists of the Company’s Tommy Hilfiger North America division. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale in North America, primarily to department stores, principally Macy’s, Inc. and Hudson’s Bay Company; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce websites in North America, which sell Tommy Hilfiger branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products in North America. Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. This segment derives revenue principally from (i) marketing Tommy Hilfiger branded apparel and related products at wholesale principally in Europe, primarily to department and specialty stores, franchisees of Tommy Hilfiger , distributors and licensees; (ii) operating retail stores in Europe and Japan and international e-commerce websites, which sell Tommy Hilfiger branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Tommy Hilfiger brand name for a broad array of products outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in unconsolidated Tommy Hilfiger foreign affiliates in Brazil, China, India and Australia. Heritage Brands Wholesale Segment - This segment consists of the Company’s Heritage Brands Wholesale division. This segment derives revenue primarily from the marketing to department, chain and specialty stores in North America of (i) dress shirts, neckwear and underwear under various owned and licensed brand names, including several private label brands; (ii) men’s sportswear principally under the brand names Van Heusen , IZOD and ARROW ; (iii) swimwear, fitness apparel, swim accessories and related products under the brand name Speedo ; and (iv) women’s intimate apparel under the brand names Warner’s and Olga . This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated Heritage Brands foreign affiliate in Australia. Heritage Brands Retail Segment - This segment consists of the Company’s Heritage Brands Retail division. This segment derives revenue principally from operating retail stores, primarily located in outlet centers in North America, which primarily sell apparel, accessories and related products under the brand names Van Heusen and IZOD. The Company exited the Izod retail business in the third quarter of 2015. The following tables present summarized information by segment: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 (1) 11/2/14 11/1/15 (1) 11/2/14 Revenue – Calvin Klein North America Net sales $ 420.1 $ 404.2 $ 1,037.0 $ 1,038.8 Royalty revenue 43.9 38.6 103.1 87.7 Advertising and other revenue 13.8 15.8 34.7 35.7 Total 477.8 458.6 1,174.8 1,162.2 Revenue – Calvin Klein International Net sales 308.8 328.4 865.2 913.4 Royalty revenue 21.0 20.5 57.0 56.9 Advertising and other revenue 6.5 8.7 19.6 23.6 Total 336.3 357.6 941.8 993.9 Revenue – Tommy Hilfiger North America Net sales 416.5 421.7 1,142.8 1,162.9 Royalty revenue 13.4 10.0 32.9 22.3 Advertising and other revenue 4.0 3.4 9.4 7.4 Total 433.9 435.1 1,185.1 1,192.6 Revenue – Tommy Hilfiger International Net sales 439.1 478.3 1,239.5 1,424.0 Royalty revenue 13.6 14.9 38.0 42.4 Advertising and other revenue 1.0 1.3 2.8 3.4 Total 453.7 494.5 1,280.3 1,469.8 Revenue – Heritage Brands Wholesale Net sales 384.0 393.8 1,059.5 1,079.8 Royalty revenue 4.9 4.6 14.3 12.7 Advertising and other revenue 0.8 0.5 2.2 1.9 Total 389.7 398.9 1,076.0 1,094.4 Revenue – Heritage Brands Retail Net sales 72.4 87.6 247.9 257.1 Royalty revenue 0.6 0.7 1.7 2.0 Advertising and other revenue 0.1 0.1 0.2 0.4 Total 73.1 88.4 249.8 259.5 Total Revenue Net sales 2,040.9 2,114.0 5,591.9 5,876.0 Royalty revenue 97.4 89.3 247.0 224.0 Advertising and other revenue 26.2 29.8 68.9 72.4 Total $ 2,164.5 $ 2,233.1 $ 5,907.8 $ 6,172.4 (1) Revenue for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 (1) 11/2/14 11/1/15 (1) 11/2/14 Income before interest and taxes – Calvin Klein North America $ 80.2 (3) $ 76.5 (8) $ 166.7 (4) $ 172.9 (9) Income before interest and taxes – Calvin Klein International 61.5 (3) 50.4 (8) 145.5 (4) 97.8 (9)(10) Income before interest and taxes – Tommy Hilfiger North America 57.1 75.4 146.2 180.9 Income before interest and taxes – Tommy Hilfiger International 68.6 80.1 169.3 205.4 Income before interest and taxes – Heritage Brands Wholesale 25.3 (3)(5) 33.5 (8) 72.9 (4)(5) 84.4 (9) Income (loss) before interest and taxes – Heritage Brands Retail 0.5 (6) (1.9 ) (2.3 ) (6) (3.8 ) Loss before interest and taxes – Corporate (2) (39.6 ) (3) (34.1 ) (8) (113.8 ) (4)(7) (213.9 ) (9)(11) Income before interest and taxes $ 253.6 $ 279.9 $ 584.5 $ 523.7 (1) Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. (2) Includes corporate expenses not allocated to any reportable segments, as well as the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure and actuarial gains and losses from the Company’s pension and other postretirement plans (which are generally recorded in the fourth quarter). (3) Income (loss) before interest and taxes for the thirteen weeks ended November 1, 2015 includes costs of $18.9 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 2.7 million in Calvin Klein North America; $ 3.9 million in Calvin Klein International; $ 1.4 million in Heritage Brands Wholesale; and $ 10.9 million in corporate expenses not allocated to any reportable segments. (4) Income (loss) before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes costs of $50.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 5.6 million in Calvin Klein North America; $ 7.6 million in Calvin Klein International; $ 7.1 million in Heritage Brands Wholesale; and $ 30.5 million in corporate expenses not allocated to any reportable segments. (5) Income before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $ 13.1 million and $16.4 million, respectively, principally related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. (6) Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $ 2.8 million and $ 9.1 million, respectively, related to the operation of and exit from the Company’s Izod retail business. (7) Loss before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes a one-time gain of $ 2.2 million recorded in connection with the Company’s 10% economic interest in Karl Lagerfeld. (8) Income (loss) before interest and taxes for the thirteen weeks ended November 2, 2014 includes costs of $29.1 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $13.2 million in Calvin Klein International; $4.7 million in Heritage Brands Wholesale; and $9.1 million in corporate expenses not allocated to any reportable segments. (9) Income (loss) before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $ 105.7 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 10.8 million in Calvin Klein North America; $ 36.5 million in Calvin Klein International; $ 13.0 million in Heritage Brands Wholesale; and $ 45.4 million in corporate expenses not allocated to any reportable segments. (10) Income before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes a net gain of $ 8.0 million associated with the deconsolidation of certain Calvin Klein subsidiaries in Australia and the Company’s previously consolidated Calvin Klein joint venture in India. Please refer to Note 4, “Investments in Unconsolidated Affiliates” and Note 5, “Redeemable Non-Controlling Interest” for further discussions. (11) Loss before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $ 93.1 million associated with the Company’s amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8% senior notes due 2020. Please refer to Note 8, “Debt,” for a further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment and the Calvin Klein North America segment. |
GUARANTEES
GUARANTEES | 9 Months Ended |
Nov. 01, 2015 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company guaranteed to a landlord the payment of rent and related costs by the tenant currently occupying space previously leased by the Company. The maximum amount guaranteed as of November 1, 2015 was approximately $ 3.7 million, which is subject to exchange rate fluctuation. The Company has the right to seek recourse of approximately $ 2.3 million as of November 1, 2015 , which is subject to exchange rate fluctuation. The guarantee expires on May 19, 2016. The estimated fair value of this guarantee obligation was immaterial as of November 1, 2015 , February 1, 2015 and November 2, 2014 . In connection with the sale of substantially all of the assets of the Company’s Bass business in the fourth quarter of 2013, the Company guaranteed lease payments for substantially all Bass retail stores included in the sale pursuant to the terms of noncancelable leases expiring on various dates through 2022. These guarantees include minimum rent payments and relate to leases that commenced prior to the sale of the Bass assets. In certain instances, the Company’s guarantee remains in effect when an option is exercised to extend the term of the lease. The maximum amount guaranteed for all leases as of November 1, 2015 was $ 42.3 million and the Company has the right to seek recourse from the buyer of the Bass assets for the full amount. The estimated fair value of these guarantee obligations as of November 1, 2015 , February 1, 2015 and November 2, 2014 was $ 2.1 million, $ 3.0 million and $ 3.2 million, respectively, which was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. Please see Note 11, “Fair Value Measurements,” for a further discussion. In connection with the Company’s investments in PVH Australia and CK India, the Company has guaranteed a portion of the entities’ debt and other obligations. The maximum amount guaranteed as of November 1, 2015 was approximately $ 7.8 million, which is subject to exchange rate fluctuation. The guarantees are in effect for the entire terms of the respective obligations. The estimated fair value of these guarantee obligations was immaterial as of November 1, 2015 . The Company has certain other guarantees whereby it guaranteed the payment of amounts on behalf of certain other parties, none of which are material individually or in the aggregate. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 9 Months Ended |
Nov. 01, 2015 | |
Notes to Financial Statements [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE The FASB issued in May 2014 guidance that supersedes most of the current revenue recognition requirements. The core principle of the new 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. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. In August 2015, the FASB approved a one year delay to the required adoption date of the standard, which makes it effective for the Company no later than the first quarter of 2018, with adoption in 2017 permitted. The new standard is required to be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has not yet selected a transition method and is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. The FASB issued in April 2015 an update to accounting guidance related to debt issuance costs. The guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. This guidance is effective for the Company in the first quarter of 2016, with early adoption permitted. Retrospective application of the new guidance is required. Had the Company early adopted this guidance, other current assets/other assets would have been lower by $ 24.2 million, $ 28.3 million and $ 29.8 million with corresponding decreases in debt as of November 1, 2015 , February 1, 2015 and November 2, 2014 , respectively. The FASB issued in April 2015 an update to accounting guidance related to retirement benefits. This guidance provides a practical expedient which allows a company with fiscal years that do not fall on a calendar month-end to measure defined benefit plan assets and obligations using the month end that is closest to the company’s fiscal year end. If elected, this guidance should be applied consistently from year to year for all plans. This guidance will be effective for the Company in the first quarter of 2016, with early adoption permitted. Prospective application is required. The Company does not currently anticipate changing its measurement date under this guidance. The FASB issued in July 2015 an update to accounting guidance to simplify the measurement of inventory. Currently, all inventory is measured at the lower of cost or market. The new guidance requires an entity to measure inventory within the scope of the guidance at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The new guidance does not apply to inventory measured using last-in, first-out or the retail inventory methods. This guidance will be effective for the Company in the first quarter of 2017, with early adoption permitted. Prospective application is required. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. The FASB issued in September 2015 an update to accounting guidance to simplify the accounting for business combinations. The guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The updated guidance eliminates the requirement to retrospectively account for these adjustments and restate prior period financial statements. The guidance will be effective for the Company in the first quarter of 2016, with early adoption permitted. Prospective application is required. The adoption will have an impact on the Company’s consolidated financial statements if it is the acquirer in a business combination that includes measurement-period adjustments. The FASB issued in November 2015 an update to accounting guidance to simplify the presentation of deferred income taxes. The guidance requires an entity to classify all deferred tax liabilities and assets as noncurrent in the balance sheet. The guidance will be effective for the Company in the first quarter of 2017, with early adoption permitted. This guidance may be applied either prospectively or retrospectively. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. |
GENERAL (Policies)
GENERAL (Policies) | 9 Months Ended |
Nov. 01, 2015 | |
General [Abstract] | |
Fiscal Period | The Company’s fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 of each calendar year and are designated by the calendar year in which the fiscal year commences. |
Consolidation, Policy [Text Block] | The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 4, “Investments in Unconsolidated Affiliates,” for a further discussion. As a result of the acquisition of The Warnaco Group, Inc. (“Warnaco”) in 2013, the Company acquired a majority interest in a joint venture in India that was consolidated and accounted for as a redeemable non-controlling interest during 2013. The redeemable non-controlling interest represented the minority shareholders’ proportionate share ( 49% ) of the equity in that entity. During the first quarter of 2014, in connection with the sale of the minority shareholders’ interests to a third party, the Company and the new shareholder entered into a shareholders agreement with different governing arrangements between the Company and the new shareholder as compared to the arrangements with the prior minority shareholders. Based on the new arrangements, the Company no longer is deemed to hold a controlling interest and the joint venture was deconsolidated. As a result, since the first quarter of 2014, the Company’s investment in the joint venture has been accounted for using the equity method of accounting. Please see Note 5, “Redeemable Non-Controlling Interest,” for a further discussion. |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the thirty-nine weeks ended November 1, 2015 , by segment (please see Note 18, “Segment Data,” for a further discussion), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of February 1, 2015 Goodwill, gross $ 705.4 $ 859.6 $ 204.4 $ 1,251.4 $ 238.3 $ 11.9 $ 3,271.0 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 705.4 859.6 204.4 1,251.4 238.3 — 3,259.1 Contingent purchase price payments to Mr. Calvin Klein 23.5 15.1 — — — — 38.6 Currency translation and other (4.3 ) (24.0 ) — (31.6 ) (0.7 ) — (60.6 ) Balance as of November 1, 2015 Goodwill, gross 724.6 850.7 204.4 1,219.8 237.6 11.9 3,249.0 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 724.6 $ 850.7 $ 204.4 $ 1,219.8 $ 237.6 $ — $ 3,237.1 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net benefit cost related to the Pension Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Service cost, including plan expenses $ 7.7 $ 4.9 $ 23.0 $ 14.7 Interest cost 7.0 7.2 20.9 21.4 Expected return on plan assets (10.7 ) (10.8 ) (31.9 ) (32.6 ) Total $ 4.0 $ 1.3 $ 12.0 $ 3.5 Net benefit cost related to the SERP Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Service cost, including plan expenses $ 1.4 $ 1.1 $ 4.2 $ 3.3 Interest cost 0.9 1.1 2.7 3.1 Amortization of prior service credit (0.0 ) (0.1 ) (0.0 ) (0.1 ) Total $ 2.3 $ 2.1 $ 6.9 $ 6.3 Net benefit cost related to the Postretirement Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Interest cost $ 0.2 $ 0.2 $ 0.5 $ 0.6 Amortization of prior service credit (0.1 ) (0.2 ) (0.3 ) (0.6 ) Total $ 0.1 $ 0.0 $ 0.2 $ 0.0 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying amounts of the Company’s long-term debt were as follows: (In millions) 11/1/15 11/2/14 Senior secured Term Loan A facility due 2019 $ 1,832.2 $ 1,929.9 Senior secured Term Loan B facility due 2020 707.7 988.4 4 1/2% senior unsecured notes due 2022 700.0 700.0 7 3/4% debentures due 2023 99.7 99.7 Total 3,339.6 3,718.0 Less: Current portion of long-term debt 124.1 99.3 Long-term debt $ 3,215.5 $ 3,618.7 |
Schedule of Mandatory Long-Term Debt Repayments [Table] | As of November 1, 2015 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Remainder of 2015 $ 24.8 2016 136.6 2017 186.2 2018 198.6 2019 1,291.1 2020 711.6 Total debt repayments for the next five years exceed the carrying balance of the Company’s term loan facilities as of November 1, 2015 because the carrying balance reflects a portion of the original issue discount. |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: (In millions) Asset Derivatives (Classified in Other Current Assets and Other Assets) Liability Derivatives (Classified in Accrued Expenses and Other Liabilities) 11/1/15 11/2/14 11/1/15 11/2/14 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 21.2 $ 36.3 $ 3.7 $ 0.1 Interest rate contracts 0.1 2.6 18.1 9.9 Total contracts designated as cash flow hedges 21.3 38.9 21.8 10.0 Undesignated contracts: Foreign currency forward exchange contracts (principally intercompany transactions) 17.6 13.0 0.6 0.3 Total undesignated contracts 17.6 13.0 0.6 0.3 Total $ 38.9 $ 51.9 $ 22.4 $ 10.3 |
Schedule of Derivative Instruments, (Loss) Gain in Statement of Financial Performance [Table Text Block] | The following table summarizes the effect of the Company’s hedges designated as cash flow hedging instruments: (Loss) Gain Recognized in Other Comprehensive (Loss) Income Gain (Loss) Reclassified from AOCI into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Foreign currency forward exchange contracts (inventory purchases) $ (3.2 ) $ 36.9 Cost of goods sold $ 26.8 $ 2.9 Interest rate contracts (4.7 ) (5.7 ) Interest expense (0.9 ) (1.5 ) Total $ (7.9 ) $ 31.2 $ 25.9 $ 1.4 Thirty-Nine Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Foreign currency forward exchange contracts (inventory purchases) $ 20.5 $ 38.1 Cost of goods sold $ 74.9 $ (2.6 ) Interest rate contracts (6.2 ) (8.0 ) Interest expense (3.1 ) (5.1 ) Total $ 14.3 $ 30.1 $ 71.8 $ (7.7 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the effect of the Company’s foreign currency forward exchange undesignated contracts: (In millions) (Loss) Gain Recognized in Income Thirteen Weeks Ended Location 11/1/15 11/2/14 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ (1.6 ) $ 13.2 Thirty-Nine Weeks Ended Location 11/1/15 11/2/14 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ 2.9 $ 12.9 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Fair Value Measurements [Abstract] | ||
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table shows the fair value of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a nonrecurring basis (consisting of property, plant and equipment) during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 , and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments Level 1 Level 2 Level 3 November 1, 2015 N/A N/A $ — $ — $ 2.8 November 2, 2014 N/A N/A $ — $ — $ 4.8 Long-lived assets with a carrying amount of $ 2.8 million were written down to a fair value of zero during the thirty-nine weeks ended November 1, 2015 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using current sales trends and market participant assumptions. The impairment charge of $ 2.8 million was included in selling, general and administrative expenses, of which $ 2.0 million was recorded in the Calvin Klein North America segment, $ 0.5 million was recorded in the Calvin Klein International segment and $ 0.3 million was recorded in the Tommy Hilfiger International segment. Long-lived assets with a carrying amount of $ 4.8 million were written down to a fair value of zero during the thirty-nine weeks ended November 2, 2014 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using current sales trends and market participant assumptions. The impairment charge of $ 4.8 million was included in selling, general and administrative expenses, of which $ 0.1 million was recorded in the Calvin Klein North America segment, $ 3.4 million was recorded in the Tommy Hilfiger North America segment and $ 1.3 million was recorded in the Heritage Brands Retail segment. | |
Impairment of long-lived assets | $ 2.8 | $ 4.8 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: (In millions) 11/1/15 2/1/15 11/2/14 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 38.8 N/A $ 38.8 N/A $ 110.4 N/A $ 110.4 N/A $ 49.3 N/A $ 49.3 Interest rate contracts N/A 0.1 N/A 0.1 N/A 0.6 N/A 0.6 N/A 2.6 N/A 2.6 Total Assets N/A $ 38.9 N/A $ 38.9 N/A $ 111.0 N/A $ 111.0 N/A $ 51.9 N/A $ 51.9 Liabilities: Foreign currency forward exchange contracts N/A $ 4.3 N/A $ 4.3 N/A $ 1.3 N/A $ 1.3 N/A $ 0.4 N/A $ 0.4 Interest rate contracts N/A 18.1 N/A 18.1 N/A 15.3 N/A 15.3 N/A 9.9 N/A 9.9 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 3.6 3.6 N/A N/A $ 4.0 4.0 N/A N/A $ 5.1 5.1 Total Liabilities N/A $ 22.4 $ 3.6 $ 26.0 N/A $ 16.6 $ 4.0 $ 20.6 N/A $ 10.3 $ 5.1 $ 15.4 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents the change in the Level 3 contingent purchase price payment liability during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 : (In millions) Thirty-Nine Weeks Ended 11/1/15 11/2/14 Beginning Balance $ 4.0 $ 4.2 Payments (0.6 ) (0.6 ) Adjustments included in earnings 0.2 1.5 Ending Balance $ 3.6 $ 5.1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block] | Additional information with respect to assumptions used to value the contingent purchase price payment liability as of November 1, 2015 is as follows: Unobservable Inputs Amount Approximate compounded annual net sales growth rate 35.0 % Approximate discount rate 15.0 % A five percentage point increase or decrease in the discount rate would change the liability by approximately $ 0.5 million. A five percentage point increase or decrease in the compounded annual net sales growth rate would change the liability by approximately $ 0.5 million. | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt as of November 1, 2015 , February 1, 2015 and November 2, 2014 were as follows: (In millions) 11/1/15 2/1/15 11/2/14 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 369.9 $ 369.9 $ 479.3 $ 479.3 $ 365.1 $ 365.1 Short-term borrowings 27.6 27.6 8.5 8.5 39.9 39.9 Long-term debt (including portion classified as current) 3,339.6 3,370.1 3,538.0 3,567.7 3,718.0 3,729.6 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying values due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Table Of Weighted Average Black Scholes Fair Value Assumptions [Table Text Block] | The following summarizes the assumptions used to estimate the fair value of service-based stock options granted during the thirty-nine weeks ended November 1, 2015 and November 2, 2014 : Thirty-Nine Weeks Ended 11/1/15 11/2/14 Weighted average risk-free interest rate 1.54 % 2.15 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 36.26 % 44.12 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 40.20 $ 56.21 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected option term. The expected option term represents the weighted average period of time that options granted are expected to be outstanding, based on vesting schedules and the contractual term of the options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected option term. Expected dividends are based on the Company’s common stock cash dividend rate at the date of grant. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving option grants, mainly due to acquisitions. The Company will continue to evaluate the appropriateness of utilizing such method. | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Service-based stock option activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at February 1, 2015 1,472 $ 64.14 Granted 175 107.18 Exercised 114 49.72 Cancelled 17 107.29 Outstanding at November 1, 2015 1,516 $ 69.71 Exercisable at November 1, 2015 1,132 $ 55.54 | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | RSU activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 1, 2015 640 $ 107.42 Granted 302 104.65 Vested 200 86.75 Cancelled 66 112.99 Non-vested at November 1, 2015 676 $ 111.74 | |
Schedule of Restricted Stock Activity [Table Text Block] | Restricted stock activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except per share data) Restricted Stock Weighted Average Grant Date Fair Value Per Share Non-vested at February 1, 2015 20 $ 120.72 Granted — — Vested 17 120.72 Cancelled 1 120.72 Non-vested at November 1, 2015 2 $ 120.72 | |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | The fair value of the awards granted in the first quarter of 2015 was established on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: Risk-free interest rate 0.90 % Expected Company volatility 29.10 % Expected annual dividends per share $ 0.15 Grant date fair value per PSU $ 101.23 | |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | PSU activity for the thirty-nine weeks ended November 1, 2015 was as follows: (In thousands, except PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 1, 2015 553 $ 119.95 Granted 46 101.23 Vested 54 88.52 Cancelled 51 122.15 Non-vested at November 1, 2015 494 $ 121.42 |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income [Table Text Block] | The following table presents the changes in AOCI, net of related taxes, by component for the thirty-nine weeks ended November 1, 2015 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain on effective hedges Total Balance, February 1, 2015 $ (496.2 ) $ 0.4 $ 79.3 $ (416.5 ) Other comprehensive (loss) income before reclassifications (150.1 ) — 22.1 (128.0 ) Less: Amounts reclassified from AOCI — 0.2 70.5 70.7 Other comprehensive loss (150.1 ) (0.2 ) (48.4 ) (198.7 ) Balance, November 1, 2015 $ (646.3 ) $ 0.2 $ 30.9 $ (615.2 ) The following table presents the changes in AOCI, net of related taxes, by component for the thirty-nine weeks ended November 2, 2014 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized (loss) gain on effective hedges Total Balance, February 2, 2014 $ 50.1 $ 1.0 $ (8.8 ) $ 42.3 Other comprehensive (loss) income before reclassifications (210.0 ) — 30.6 (179.4 ) Less: Amounts reclassified from AOCI (2.0 ) 0.4 (5.9 ) (7.5 ) Other comprehensive (loss) income (208.0 ) (0.4 ) 36.5 (171.9 ) Balance, November 2, 2014 $ (157.9 ) $ 0.6 $ 27.7 $ (129.6 ) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income [Table Text Block] | The following table presents reclassifications out of AOCI to earnings for the thirteen and thirty-nine weeks ended November 1, 2015 and November 2, 2014 : Amount Reclassified from AOCI Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended Thirty-Nine Weeks Ended 11/1/15 11/2/14 11/1/15 11/2/14 Realized gain (loss) on effective hedges: Foreign currency forward exchange contracts $ 26.8 $ 2.9 $ 74.9 $ (2.6 ) Cost of goods sold Interest rate contracts (0.9 ) (1.5 ) (3.1 ) (5.1 ) Interest expense Less: Tax effect 0.7 (0.7 ) 1.3 (1.8 ) Income tax expense Total, net of tax $ 25.2 $ 2.1 $ 70.5 $ (5.9 ) Amortization of retirement liability items: Prior service credit $ 0.1 $ 0.3 $ 0.3 $ 0.7 Selling, general and administrative expenses Less: Tax effect 0.0 0.1 0.1 0.3 Income tax expense Total, net of tax $ 0.1 $ 0.2 $ 0.2 $ 0.4 Foreign currency translation adjustments: Deconsolidation of foreign subsidiaries and joint venture $ — $ — $ — $ (2.0 ) Selling, general and administrative expenses Less: Tax effect — — — — Income tax expense Total, net of tax $ — $ — $ — $ (2.0 ) |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Exit of Izod Retail Business [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | In connection with the Company’s exit in 2015 of the Izod retail business, the Company incurred certain costs related to severance and termination benefits, long-lived asset and goodwill impairments and lease/contract terminations. Such costs were as follows: (In millions) Total Expected to be Incurred Incurred During the Thirteen Weeks Ended 11/1/15 Incurred During the Thirty-Nine Weeks Ended 11/1/15 Cumulative Incurred To Date Severance, termination benefits and other costs $ 8.5 $ 0.2 $ 5.8 $ 8.2 Long-lived asset and goodwill impairments 17.7 — — 17.7 Lease/contract termination and related costs 5.7 0.4 5.7 5.7 Total $ 31.9 $ 0.6 $ 11.5 $ 31.6 The above charges relate to selling, general and administrative expenses of the Heritage Brands Retail segment. Please see Note 18, “Segment Data” for a further discussion of the Company’s reportable segments. |
Schedule Of Restructuring Accrued Liabilities Costs Incurred And Paid [Table Text Block] | The liabilities at November 1, 2015 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/1/15 Costs Incurred During the Thirty-Nine Weeks Ended 11/1/15 Costs Paid During the Thirty-Nine Weeks Ended 11/1/15 Liability at 11/1/15 Severance, termination benefits and other costs $ 2.3 $ 5.8 $ 6.1 $ 2.0 Lease/contract termination and related costs — 5.7 5.6 0.1 Total $ 2.3 $ 11.5 $ 11.7 $ 2.1 |
Warnaco Integration Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | In connection with the Company’s acquisition of Warnaco during the first quarter of 2013 and the related integration, the Company incurred certain costs related to severance and termination benefits, inventory liquidations and lease/contract terminations. Such costs were as follows: (In millions) Total Expected to be Incurred Incurred During the Thirteen Weeks Ended 11/1/15 Incurred During the Thirty-Nine Weeks Ended 11/1/15 Cumulative Incurred To Date Severance, termination benefits and other costs $ 171.9 $ 4.3 $ 13.1 $ 168.3 Inventory liquidation costs 36.1 — — 36.1 Lease/contract termination and related costs 70.3 0.3 1.1 68.4 Total $ 278.3 $ 4.6 $ 14.2 $ 272.8 Of the charges for severance and termination benefits, lease/contract termination and other costs incurred during the thirty-nine weeks ended November 1, 2015 , $ 3.3 million relate to selling, general and administrative expenses of the Calvin Klein North America segment, $ 1.4 million relate to selling, general and administrative expenses of the Calvin Klein International segment, $ 4.2 million relate to selling, general and administrative expenses of the Heritage Brands Wholesale segment and $ 5.3 million relate to corporate expenses not allocated to any reportable segment. The remaining charges for severance and termination benefits, lease/contract termination and other costs expected to be incurred relate principally to the aforementioned segments and corporate expenses not allocated to any reportable segment. Please see Note 18, “Segment Data” for a further discussion of the Company’s reportable segments. |
Schedule Of Restructuring Accrued Liabilities Costs Incurred And Paid [Table Text Block] | The liabilities at November 1, 2015 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/1/15 Costs Incurred During the Thirty-Nine Weeks Ended 11/1/15 Costs Paid During the Thirty-Nine Weeks Ended 11/1/15 Liability at 11/1/15 Severance, termination benefits and other costs $ 14.0 $ 13.1 $ 21.5 $ 5.6 Lease/contract termination and related costs 7.6 1.1 7.6 1.1 Total $ 21.6 $ 14.2 $ 29.1 $ 6.7 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The Company computed its basic and diluted net income per common share as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions, except per share data) 11/1/15 11/2/14 11/1/15 11/2/14 Net income attributable to PVH Corp. $ 221.9 $ 225.7 $ 438.2 $ 387.5 Weighted average common shares outstanding for basic net income per common share 82.4 82.4 82.6 82.3 Weighted average impact of dilutive securities 0.7 0.9 0.7 0.9 Total shares for diluted net income per common share 83.1 83.3 83.3 83.2 Basic net income per common share attributable to PVH Corp. $ 2.69 $ 2.74 $ 5.31 $ 4.71 Diluted net income per common share attributable to PVH Corp. $ 2.67 $ 2.71 $ 5.26 $ 4.66 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Potentially dilutive securities excluded from the calculation of diluted net income per common share were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 11/2/14 11/1/15 11/2/14 Weighted average potentially dilutive securities 0.6 0.4 0.6 0.4 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 9 Months Ended |
Nov. 01, 2015 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present summarized information by segment: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 (1) 11/2/14 11/1/15 (1) 11/2/14 Revenue – Calvin Klein North America Net sales $ 420.1 $ 404.2 $ 1,037.0 $ 1,038.8 Royalty revenue 43.9 38.6 103.1 87.7 Advertising and other revenue 13.8 15.8 34.7 35.7 Total 477.8 458.6 1,174.8 1,162.2 Revenue – Calvin Klein International Net sales 308.8 328.4 865.2 913.4 Royalty revenue 21.0 20.5 57.0 56.9 Advertising and other revenue 6.5 8.7 19.6 23.6 Total 336.3 357.6 941.8 993.9 Revenue – Tommy Hilfiger North America Net sales 416.5 421.7 1,142.8 1,162.9 Royalty revenue 13.4 10.0 32.9 22.3 Advertising and other revenue 4.0 3.4 9.4 7.4 Total 433.9 435.1 1,185.1 1,192.6 Revenue – Tommy Hilfiger International Net sales 439.1 478.3 1,239.5 1,424.0 Royalty revenue 13.6 14.9 38.0 42.4 Advertising and other revenue 1.0 1.3 2.8 3.4 Total 453.7 494.5 1,280.3 1,469.8 Revenue – Heritage Brands Wholesale Net sales 384.0 393.8 1,059.5 1,079.8 Royalty revenue 4.9 4.6 14.3 12.7 Advertising and other revenue 0.8 0.5 2.2 1.9 Total 389.7 398.9 1,076.0 1,094.4 Revenue – Heritage Brands Retail Net sales 72.4 87.6 247.9 257.1 Royalty revenue 0.6 0.7 1.7 2.0 Advertising and other revenue 0.1 0.1 0.2 0.4 Total 73.1 88.4 249.8 259.5 Total Revenue Net sales 2,040.9 2,114.0 5,591.9 5,876.0 Royalty revenue 97.4 89.3 247.0 224.0 Advertising and other revenue 26.2 29.8 68.9 72.4 Total $ 2,164.5 $ 2,233.1 $ 5,907.8 $ 6,172.4 (1) Revenue for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 11/1/15 (1) 11/2/14 11/1/15 (1) 11/2/14 Income before interest and taxes – Calvin Klein North America $ 80.2 (3) $ 76.5 (8) $ 166.7 (4) $ 172.9 (9) Income before interest and taxes – Calvin Klein International 61.5 (3) 50.4 (8) 145.5 (4) 97.8 (9)(10) Income before interest and taxes – Tommy Hilfiger North America 57.1 75.4 146.2 180.9 Income before interest and taxes – Tommy Hilfiger International 68.6 80.1 169.3 205.4 Income before interest and taxes – Heritage Brands Wholesale 25.3 (3)(5) 33.5 (8) 72.9 (4)(5) 84.4 (9) Income (loss) before interest and taxes – Heritage Brands Retail 0.5 (6) (1.9 ) (2.3 ) (6) (3.8 ) Loss before interest and taxes – Corporate (2) (39.6 ) (3) (34.1 ) (8) (113.8 ) (4)(7) (213.9 ) (9)(11) Income before interest and taxes $ 253.6 $ 279.9 $ 584.5 $ 523.7 (1) Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. (2) Includes corporate expenses not allocated to any reportable segments, as well as the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure and actuarial gains and losses from the Company’s pension and other postretirement plans (which are generally recorded in the fourth quarter). (3) Income (loss) before interest and taxes for the thirteen weeks ended November 1, 2015 includes costs of $18.9 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 2.7 million in Calvin Klein North America; $ 3.9 million in Calvin Klein International; $ 1.4 million in Heritage Brands Wholesale; and $ 10.9 million in corporate expenses not allocated to any reportable segments. (4) Income (loss) before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes costs of $50.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 5.6 million in Calvin Klein North America; $ 7.6 million in Calvin Klein International; $ 7.1 million in Heritage Brands Wholesale; and $ 30.5 million in corporate expenses not allocated to any reportable segments. (5) Income before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $ 13.1 million and $16.4 million, respectively, principally related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. (6) Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $ 2.8 million and $ 9.1 million, respectively, related to the operation of and exit from the Company’s Izod retail business. (7) Loss before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes a one-time gain of $ 2.2 million recorded in connection with the Company’s 10% economic interest in Karl Lagerfeld. (8) Income (loss) before interest and taxes for the thirteen weeks ended November 2, 2014 includes costs of $29.1 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $13.2 million in Calvin Klein International; $4.7 million in Heritage Brands Wholesale; and $9.1 million in corporate expenses not allocated to any reportable segments. (9) Income (loss) before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $ 105.7 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 10.8 million in Calvin Klein North America; $ 36.5 million in Calvin Klein International; $ 13.0 million in Heritage Brands Wholesale; and $ 45.4 million in corporate expenses not allocated to any reportable segments. (10) Income before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes a net gain of $ 8.0 million associated with the deconsolidation of certain Calvin Klein subsidiaries in Australia and the Company’s previously consolidated Calvin Klein joint venture in India. Please refer to Note 4, “Investments in Unconsolidated Affiliates” and Note 5, “Redeemable Non-Controlling Interest” for further discussions. (11) Loss before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $ 93.1 million associated with the Company’s amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8% senior notes due 2020. Please refer to Note 8, “Debt,” for a further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment and the Calvin Klein North America segment. |
GENERAL (Details)
GENERAL (Details) | 9 Months Ended | |
Nov. 01, 2015 | Feb. 02, 2014 | |
Fiscal Period [Line Items] | ||
Redeemable non-controlling interest ownership percentage | 49.00% | |
Fiscal Year Minimum Week Period | 1 year | |
Fiscal Year Maximum Weeks Period | 1 year 7 days |
GENERAL Warehousing and Distrib
GENERAL Warehousing and Distribution (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Warehousing and Distribution [Line Items] | ||||
Warehousing and Distribution Expense | $ 62.5 | $ 64.9 | $ 173.2 | $ 191.3 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Millions | 3 Months Ended | |
Nov. 02, 2014USD ($) | May. 04, 2014USD ($) | |
Russian Franchisee [Member] | ||
Business Acquisition [Line Items] | ||
Number of Stores | 2 | |
Cash | $ 4.3 | |
Ireland Franchisee [Member] | ||
Business Acquisition [Line Items] | ||
Number of Stores | 6 | |
Cash | $ 3.1 | |
Calvin Klein Performancewear Business [Member] | ||
Business Acquisition [Line Items] | ||
Cash | $ 6.7 |
INVESTMENTS IN UNCONSOLIDATED42
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May. 04, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | Feb. 01, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net gain on deconsolidation of subsidiaries and joint venture | $ 0 | $ 8 | ||
Payments to acquire interest in joint venture | 26.6 | 26.2 | ||
Equity Method Investments | $ 143.1 | 113.7 | $ 108.3 | |
Karl Lagerfeld Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 10.00% | |||
Payments to acquire interest in joint venture | $ 18.9 | |||
Equity Method Investment Ownership Percentage By Former Director | 35.00% | |||
PVH Australia Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Net gain on deconsolidation of subsidiaries and joint venture | $ 2.1 | |||
Payments to acquire interest in joint venture | $ 21 | $ 7.3 | ||
Calvin Klein India Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 51.00% | |||
Payments to acquire interest in joint venture | $ 4 | |||
Tommy Hilfiger Brazil Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Payments to acquire interest in joint venture | $ 1.6 | |||
Tommy Hilfiger China Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 45.00% | |||
Tommy Hilfiger India Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% |
REDEEMABLE NON-CONTROLLING IN43
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
May. 04, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Non-controlling Interest [Line Items] | |||
Net gain on deconsolidation of subsidiaries and joint venture | $ 0 | $ 8 | |
Calvin Klein India Joint Venture [Member] | |||
Non-controlling Interest [Line Items] | |||
Equity Method Investment, Ownership Percentage | 51.00% | ||
Net gain on deconsolidation of subsidiaries and joint venture | $ 5.9 |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 9 Months Ended |
Nov. 01, 2015USD ($) | |
Goodwill and Other Intangible Assets [Line Items] | |
Contingent Purchase Price Payments Percentage | 1.15% |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | $ 3,271 |
Accumulated impairment losses, beginning of period | (11.9) |
Goodwill, net, beginning of period | 3,259.1 |
Contingent purchase price payments to Mr. Calvin Klein | 38.6 |
Currency translation and other | (60.6) |
Goodwill, gross, end of period | 3,249 |
Accumulated impairment losses, end of period | (11.9) |
Goodwill, net, end of period | 3,237.1 |
Calvin Klein North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 705.4 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 705.4 |
Contingent purchase price payments to Mr. Calvin Klein | 23.5 |
Currency translation and other | (4.3) |
Goodwill, gross, end of period | 724.6 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 724.6 |
Calvin Klein International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 859.6 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 859.6 |
Contingent purchase price payments to Mr. Calvin Klein | 15.1 |
Currency translation and other | (24) |
Goodwill, gross, end of period | 850.7 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 850.7 |
Tommy Hilfiger North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 204.4 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 204.4 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Currency translation and other | 0 |
Goodwill, gross, end of period | 204.4 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 204.4 |
Tommy Hilfiger International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 1,251.4 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 1,251.4 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Currency translation and other | (31.6) |
Goodwill, gross, end of period | 1,219.8 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 1,219.8 |
Heritage Brands Wholesale [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 238.3 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 238.3 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Currency translation and other | (0.7) |
Goodwill, gross, end of period | 237.6 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 237.6 |
Heritage Brands Retail [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 11.9 |
Accumulated impairment losses, beginning of period | (11.9) |
Goodwill, net, beginning of period | 0 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Currency translation and other | 0 |
Goodwill, gross, end of period | 11.9 |
Accumulated impairment losses, end of period | (11.9) |
Goodwill, net, end of period | $ 0 |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 01, 2015USD ($)plans | Nov. 02, 2014USD ($) | Nov. 01, 2015USD ($)plans | Nov. 02, 2014USD ($) | Jan. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension Contributions | $ 1.5 | $ 2.7 | |||
SERP Plans [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of Noncontributory Defined Benefit Pension Plans | plans | 3 | 3 | |||
Plan Benefit Payment Activation Age | 65 | 65 | |||
Plan Benefit Payment Period | 10 years | ||||
Minimum Number of Years of Employment | 10 years | ||||
Minimum Age Prior to Employment Termination | 55 | 55 | |||
Service cost, including plan expenses | $ 1.4 | $ 1.1 | $ 4.2 | 3.3 | |
Interest cost | 0.9 | 1.1 | 2.7 | 3.1 | |
Amortization of prior service credit | 0 | (0.1) | 0 | (0.1) | |
Total | $ 2.3 | 2.1 | $ 6.9 | 6.3 | |
Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of Noncontributory Defined Benefit Pension Plans | plans | 5 | 5 | |||
Service cost, including plan expenses | $ 7.7 | 4.9 | $ 23 | 14.7 | |
Interest cost | 7 | 7.2 | 20.9 | 21.4 | |
Expected return on plan assets | (10.7) | (10.8) | (31.9) | (32.6) | |
Total | $ 4 | 1.3 | $ 12 | 3.5 | |
Pension Contributions | $ 1.5 | ||||
Vesting Period Non-Contributory Defined Benefit Pension Plans | 5 years | ||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of Noncontributory Defined Benefit Pension Plans | plans | 2 | 2 | |||
Minimum Number of Years of Employment | 10 years | ||||
Minimum Age Prior to Employment Termination | 55 | 55 | |||
Interest cost | $ 0.2 | 0.2 | $ 0.5 | 0.6 | |
Amortization of prior service credit | (0.1) | (0.2) | (0.3) | (0.6) | |
Total | $ 0.1 | $ 0 | $ 0.2 | $ 0 |
DEBT Yen-Denominated Overdraft
DEBT Yen-Denominated Overdraft Facility (Details) - Line of credit, Yen-denominated facility [Member] ¥ in Millions, $ in Millions | 9 Months Ended | |
Nov. 01, 2015JPY (¥) | Nov. 01, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | ¥ 1,000 | $ 8.3 |
Debt instrument, basis spread on variable rate | 0.30% | |
Line of credit facility, amount outstanding | $ 8.3 | |
Short-term debt, weighted average interest rate | 0.43% | 0.43% |
DEBT Euro-Denominated Overdraft
DEBT Euro-Denominated Overdraft Facility (Details) - Nov. 01, 2015 € in Millions, $ in Millions | EUR (€) | USD ($) |
Line of credit, Euro-denominated facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | € 60 | $ 66.1 |
DEBT USD-Denominated Line of Cr
DEBT USD-Denominated Line of Credit (Details) - Line Of Credit, USD-Denominated Line of Credit [Member] $ in Millions | 9 Months Ended |
Nov. 01, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 3.7 |
Debt instrument, basis spread on variable rate | 0.50% |
Line of credit facility, amount outstanding | $ 2.6 |
Short-term debt, weighted average interest rate | 12.77% |
Maximum amount of borrowings outstanding during the period | $ 3.3 |
DEBT Lira-Denominated Overdraft
DEBT Lira-Denominated Overdraft Facility (Details) - 9 months ended Nov. 01, 2015 - Line of credit, Lira-denominated facility [Member] TRY in Millions, $ in Millions | TRY | USD ($) |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | TRY 6 | $ 2.1 |
Debt instrument, basis spread on variable rate | 1.25% |
DEBT Peso-Denominated Line of C
DEBT Peso-Denominated Line of Credit (Details) - 9 months ended Nov. 01, 2015 - Line of credit, Peso-denominated facility [Member] MXN in Millions, $ in Millions | USD ($) | MXN | USD ($) |
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | MXN 267.1 | $ 16.1 | |
Line of credit facility, amount outstanding | $ 7 | ||
Short-term debt, weighted average interest rate | 4.71% | 4.71% | |
Maximum amount of borrowings outstanding during the period | $ 7 |
DEBT Mexico Revolving Credit Fa
DEBT Mexico Revolving Credit Facility (Details) - Line Of Credit Mexico Facility [Member] $ in Millions | 9 Months Ended |
Nov. 01, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Short-term debt, weighted average interest rate | 4.33% |
Maximum amount of borrowings outstanding during the period | $ 9.7 |
Line of credit facility, maximum borrowing capacity | $ 10 |
Debt instrument, basis spread on variable rate | 0.90% |
Line of credit facility, amount outstanding | $ 9.7 |
DEBT Asia Revolving Credit Faci
DEBT Asia Revolving Credit Facility (Details) - Line of credit, Asia facility [Member] $ in Millions | 9 Months Ended |
Nov. 01, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 10 |
Debt instrument, basis spread on variable rate | 1.50% |
DEBT Brazil Revolving Credit Fa
DEBT Brazil Revolving Credit Facility (Details) - Nov. 01, 2015 BRL in Millions, $ in Millions | BRL | USD ($) |
Line of credit, Brazil facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | BRL 83 | $ 21.4 |
DEBT Senior Secured Credit Faci
DEBT Senior Secured Credit Facilities Revolving Borrowings (Details) $ in Millions | 9 Months Ended |
Nov. 01, 2015USD ($) | |
2014 Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Maximum amount of borrowings outstanding during the period | $ 151.2 |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) € in Millions, $ in Millions | Mar. 24, 2014USD ($) | Mar. 21, 2014USD ($) | May. 06, 2010USD ($) | Nov. 01, 2015USD ($) | Nov. 02, 2014USD ($) | May. 04, 2014USD ($) | Feb. 03, 2013USD ($) | Nov. 01, 2015USD ($) | Nov. 02, 2014USD ($) | Feb. 01, 2015 | Aug. 18, 2014USD ($) | Aug. 19, 2013USD ($) | Feb. 13, 2013EUR (€) | Feb. 13, 2013USD ($) | Jun. 06, 2011USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Total debt percentage bearing fixed interest rates | 70.00% | 70.00% | |||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt modification and extinguishment costs | $ 0 | $ 0 | $ 0 | $ 93.1 | |||||||||||
Deferred debt issuance costs | $ 17.5 | ||||||||||||||
Letters of credit outstanding, amount | $ 31.1 | 31.1 | |||||||||||||
Repayment of 2014/2013 facilities | 200.5 | 244.7 | |||||||||||||
Carry forward period revolving credit facility | 1 month | ||||||||||||||
Cost of funds index rate period | 3 months | ||||||||||||||
Carry forward period borrowings maximum | 1 year | ||||||||||||||
Won-denominated short term credit facility lender | 1 | ||||||||||||||
2011 Interest Rate Swap [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Notional amount outstanding of foreign currency forward exchange contracts | $ 632 | ||||||||||||||
Derivative agreement term | 3 years | ||||||||||||||
2013 Interest Rate Swap [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Notional amount outstanding of foreign currency forward exchange contracts | $ 860 | $ 860 | $ 1,228.8 | ||||||||||||
Derivative, fixed interest rate | 0.604% | 0.604% | |||||||||||||
Derivative agreement term | 3 years | ||||||||||||||
2016 Interest Rate Swap [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Notional amount outstanding of foreign currency forward exchange contracts | $ 682.6 | $ 682.6 | |||||||||||||
Derivative, average fixed interest rate | 1.924% | 1.924% | |||||||||||||
Derivative agreement term | 2 years | ||||||||||||||
2014 Interest Rate Cap [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Notional amount outstanding of foreign currency forward exchange contracts | $ 617 | $ 617 | $ 514.2 | ||||||||||||
Derivative, cap interest rate | 1.50% | 1.50% | |||||||||||||
Derivative agreement term | 18 months | ||||||||||||||
2014 Facilities Term Loan A [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Increase In Term Loan Borrowings | $ 350 | ||||||||||||||
Secured Debt | $ 1,832.2 | $ 1,929.9 | $ 1,832.2 | $ 1,929.9 | |||||||||||
2014 Facilities Term Loan B [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Increase In Term Loan Borrowings | 250 | ||||||||||||||
Secured Debt | 707.7 | $ 988.4 | 707.7 | 988.4 | |||||||||||
2013 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 750 | ||||||||||||||
2014 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Payments of financing costs | 13.3 | ||||||||||||||
Debt modification and extinguishment costs | 8 | ||||||||||||||
Payment of fees associated with issuance of 4 1/2% senior notes | (5.3) | ||||||||||||||
Secured Debt | $ 2,539.9 | 2,539.9 | |||||||||||||
Deferred debt issuance costs | 3.2 | ||||||||||||||
Repayment of 2014/2013 facilities | 200.5 | $ 244.7 | |||||||||||||
Maximum Amount Of Commitment Increase | $ 1,350 | ||||||||||||||
Senior notes due 2022 [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 700 | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 35.00% | ||||||||||||||
Senior notes due 2022 [Member] | Senior Notes [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | |||||||||||||
Senior Notes due 2020 [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 600 | ||||||||||||||
Payments of Debt Extinguishment Costs | $ 67.6 | ||||||||||||||
Deferred debt issuance costs | $ 14.3 | ||||||||||||||
Senior Notes due 2020 [Member] | Senior Notes [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 7.375% | 7.375% | |||||||||||||
Senior Debenture Due 2023 [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 7.75% | 7.75% | |||||||||||||
Debt instrument, face amount | $ 100 | $ 100 | |||||||||||||
Debt instrument, yield to maturity | 7.80% | 7.80% | |||||||||||||
One month adjusted Eurocurrency rate loan [Member] | United States of America, Dollars | 2014 Facilities Term Loan B [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||
United States Dollars and Canadian Dollars [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Number of revolving credit facilities | 1 | ||||||||||||||
United States Dollars and Canadian Dollars [Member] | 2013 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | 25 | ||||||||||||||
United States Dollars and Canadian Dollars [Member] | 2014 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | 25 | ||||||||||||||
Euro, British Pound, Japanese Yen and Swiss Francs | 2013 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 185.9 | ||||||||||||||
Euro, British Pound, Japanese Yen and Swiss Francs | 2014 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | 185.9 | ||||||||||||||
United States of America, Dollars | Unites States federal fund rate [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||||||
United States of America, Dollars | 2013 Facilities Term Loan A [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Original issue discount | 7.3 | ||||||||||||||
Secured Debt | 1,700 | ||||||||||||||
United States of America, Dollars | 2013 Facilities Term Loan B [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Original issue discount | 6.9 | ||||||||||||||
Secured Debt | 1,375 | ||||||||||||||
United States of America, Dollars | 2014 Facilities Term Loan A [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Original issue discount | 7.8 | ||||||||||||||
Secured Debt | 1,986.3 | ||||||||||||||
United States of America, Dollars | 2014 Facilities Term Loan B [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Original issue discount | 5.7 | ||||||||||||||
Secured Debt | 1,188.6 | ||||||||||||||
United States of America, Dollars | 2013 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 475 | ||||||||||||||
United States of America, Dollars | 2014 Facilities [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 475 | ||||||||||||||
United States of America, Dollars | Base rate loan [Member] | 2014 Facilities Term Loan A [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||||||
United States of America, Dollars | Base rate loan [Member] | 2014 Facilities Term Loan B [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||||
United States of America, Dollars | Base rate loan [Member] | 2014 Facilities Term Loan B [Member] | Minimum [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 1.75% | 1.75% | |||||||||||||
United States of America, Dollars | One month adjusted Eurocurrency rate loan [Member] | 2014 Facilities Term Loan A [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||||
United States of America, Dollars | Eurocurrency rate loan [Member] | 2014 Facilities Term Loan B [Member] | Minimum [Member] | |||||||||||||||
Senior Secured Credit Facilities [Abstract] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 0.75% | 0.75% |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Nov. 01, 2015 | Feb. 01, 2015 | Nov. 02, 2014 | Mar. 21, 2014 | |
Debt Instrument [Line Items] | ||||
Mandatory Long Term Debt Repayment Remainder of 2015 | $ 24.8 | |||
Mandatory Long Term Debt Repayment 2016 | 136.6 | |||
Mandatory Long Term Debt Repayment 2017 | 186.2 | |||
Mandatory Long Term Debt Repayment 2018 | 198.6 | |||
Mandatory Long Term Debt Repayment 2019 | 1,291.1 | |||
Mandatory Long Term Debt Repayment 2020 | $ 711.6 | |||
Total debt percentage bearing fixed interest rates | 70.00% | |||
7 3/4% debentures | $ 99.7 | $ 99.7 | ||
Total | 3,339.6 | 3,718 | ||
Less: Current portion of long-term debt | 124.1 | $ 99.3 | 99.3 | |
Long-Term Debt | $ 3,215.5 | $ 3,438.7 | 3,618.7 | |
Senior notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 35.00% | |||
Senior Notes | $ 700 | 700 | ||
Senior Debenture Due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.75% | |||
Senior Notes [Member] | Senior notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.50% | |||
Senior Notes [Member] | Senior Notes due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.375% | |||
2014 Facilities Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 1,832.2 | 1,929.9 | ||
2014 Facilities Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 707.7 | $ 988.4 | ||
United States of America, Dollars | 2014 Facilities Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 1,986.3 | |||
United States of America, Dollars | 2014 Facilities Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 1,188.6 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate | 1.90% | 8.90% | 12.20% | 7.10% | |
Uncertain Tax Positions, International Jurisdictions [Member] | |||||
Income Taxes [Line Items] | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 24 | ||||
European and US Transfer Pricing Arrangements [Member] | |||||
Income Taxes [Line Items] | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 6 |
DERIVATIVE FINANCIAL INSTRUME58
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2016 | |
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized (loss) gain on effective hedges | $ 22.1 | $ 30.6 | |||
Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 38.9 | $ 51.9 | 38.9 | 51.9 | |
Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 22.4 | 10.3 | 22.4 | 10.3 | |
Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Notional amount outstanding of foreign currency forward exchange contracts | 894 | 894 | |||
Contracts designated as cash flow hedges [Member] | Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 21.3 | 38.9 | 21.3 | 38.9 | |
Contracts designated as cash flow hedges [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 21.8 | 10 | 21.8 | 10 | |
Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 21.2 | 36.3 | 21.2 | 36.3 | |
Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 3.7 | 0.1 | 3.7 | 0.1 | |
Contracts designated as cash flow hedges [Member] | Interest Rate Contract [Member] | Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.1 | 2.6 | 0.1 | 2.6 | |
Contracts designated as cash flow hedges [Member] | Interest Rate Contract [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 18.1 | 9.9 | 18.1 | 9.9 | |
Undesignated contracts [Member] | Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 17.6 | 13 | 17.6 | 13 | |
Undesignated contracts [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.3 | 0.6 | 0.3 | |
Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | Other Current Assets and Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 17.6 | 13 | 17.6 | 13 | |
Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.3 | $ 0.6 | 0.3 | |
Cost of Goods Sold [Member] | Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 44.1 | ||||
Cost of Goods Sold [Member] | Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Loss Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||||
Interest Expense [Member] | Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (8.9) | ||||
Derivative Instruments, Loss Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, (Loss) Gain, Net | (1.6) | 13.2 | $ 2.9 | 12.9 | |
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized (loss) gain on effective hedges | (7.9) | 31.2 | 14.3 | 30.1 | |
Gain (loss) reclassified from Accumulated Other Comprehensive Income into Income (Expense) | 25.9 | 1.4 | 71.8 | (7.7) | |
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized (loss) gain on effective hedges | (3.2) | 36.9 | 20.5 | 38.1 | |
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized (loss) gain on effective hedges | (4.7) | (5.7) | (6.2) | (8) | |
Cash Flow Hedging [Member] | Cost of Goods Sold [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) reclassified from Accumulated Other Comprehensive Income into Income (Expense) | 26.8 | 2.9 | 74.9 | (2.6) | |
Cash Flow Hedging [Member] | Interest Expense [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) reclassified from Accumulated Other Comprehensive Income into Income (Expense) | $ (0.9) | $ (1.5) | $ (3.1) | $ (5.1) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | 60 Months Ended | |||||
Nov. 01, 2015 | Nov. 02, 2014 | Jan. 29, 2023 | Jan. 31, 2016 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jul. 01, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 | ||||||
Impairment of long-lived assets | 2.8 | 4.8 | ||||||
Cash and cash equivalents | 369.9 | 365.1 | $ 479.3 | $ 593.2 | ||||
Short-term borrowings | 27.6 | 39.9 | 8.5 | |||||
Long-term debt (including portion classified as current), carrying amount | 3,339.6 | 3,718 | ||||||
Contingent purchase price payments | 35 | 35.5 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Contingent purchase price payments, balance | 3.6 | 5.1 | 4 | 4.2 | ||||
Payments | (0.6) | (0.6) | ||||||
Adjustments included in earnings | $ 0.2 | 1.5 | ||||||
Compounded Annual Net Sales Growth Rate | 35.00% | |||||||
Fair Value Inputs Discount Rate | 15.00% | |||||||
Effect of five-percentage-point increase or decrease in discount rate on liability | $ 0.5 | |||||||
Effect of five-percentage-point increase or decrease on annual net sales growth rate | 0.5 | |||||||
Tommy Hilfiger India License [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent Consideration Limit | $ 25 | |||||||
Contingent purchase price payments | $ 0.6 | 0.6 | $ 0.4 | $ 0.2 | ||||
Contingent Payments, Threshold for Extension | $ 15 | |||||||
Tommy Hilfiger India License [Member] | Initial Term [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent purchase price payment terms | 5 years | |||||||
Tommy Hilfiger India License [Member] | Extended Term [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent purchase price payment terms | 6 years | |||||||
Tommy Hilfiger India License [Member] | Due Within [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent purchase price payment terms | 60 days | |||||||
Tommy Hilfiger India License [Member] | Period Length [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent purchase price payment terms | 1 year | |||||||
Tommy Hilfiger India License [Member] | Period Length, Months [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Contingent purchase price payment terms | 12 months | |||||||
Portion at Fair Value Measurement [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency forward exchange contracts, assets | $ 38.8 | 49.3 | 110.4 | |||||
Interest rate contracts, assets | 0.1 | 2.6 | 0.6 | |||||
Total Assets | 38.9 | 51.9 | 111 | |||||
Foreign currency forward exchange contracts, liabilities | 4.3 | 0.4 | 1.3 | |||||
Interest rate contracts, liabilities | 18.1 | 9.9 | 15.3 | |||||
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India | 3.6 | 5.1 | 4 | |||||
Total Liabilities | 26 | 15.4 | 20.6 | |||||
Cash and cash equivalents | 369.9 | 365.1 | 479.3 | |||||
Short-term borrowings | 27.6 | 39.9 | 8.5 | |||||
Long-term debt (including portion classified as current), fair value | 3,370.1 | 3,729.6 | 3,567.7 | |||||
Carrying amount | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Cash and cash equivalents | 369.9 | 365.1 | 479.3 | |||||
Short-term borrowings | 27.6 | 39.9 | 8.5 | |||||
Long-term debt (including portion classified as current), carrying amount | 3,339.6 | 3,718 | 3,538 | |||||
Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Long-Lived Assets | 2.8 | 4.8 | ||||||
Impairment of long-lived assets | 2.8 | 4.8 | ||||||
Sale Of Bass [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Expiration Year of Bass Guarantee | 2,022 | |||||||
Guarantees, Fair Value Disclosure | 2.1 | 3.2 | 3 | |||||
Calvin Klein North America [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Impairment of long-lived assets | 2 | 0.1 | ||||||
Calvin Klein International [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Impairment of long-lived assets | 0.5 | |||||||
Tommy Hilfiger North America [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Impairment of long-lived assets | 3.4 | |||||||
Tommy Hilfiger International [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Impairment of long-lived assets | $ 0.3 | |||||||
Heritage Brands Retail [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Impairment of long-lived assets | 1.3 | |||||||
Tommy Hilfiger India Joint Venture [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||
Fair Value, Inputs, Level 2 [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency forward exchange contracts, assets | $ 38.8 | 49.3 | 110.4 | |||||
Interest rate contracts, assets | 0.1 | 2.6 | 0.6 | |||||
Total Assets | 38.9 | 51.9 | 111 | |||||
Foreign currency forward exchange contracts, liabilities | 4.3 | 0.4 | 1.3 | |||||
Interest rate contracts, liabilities | 18.1 | 9.9 | 15.3 | |||||
Total Liabilities | 22.4 | 10.3 | 16.6 | |||||
Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | ||||||
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India | 3.6 | 5.1 | 4 | |||||
Total Liabilities | 3.6 | 5.1 | $ 4 | |||||
Fair Value, Inputs, Level 3 [Member] | Long-lived Assets, Other [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK OPTION ACTIVITY (Details) - USD ($) | Feb. 13, 2013 | May. 01, 2016 | May. 03, 2015 | May. 04, 2014 | Aug. 04, 2013 | May. 05, 2013 | Apr. 29, 2012 | Nov. 01, 2015 | Nov. 02, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Reduction in Number of Shares to Be Granted by Each Option Award | 1 | ||||||||
Warnaco employee replacement stock awards | $ 39,800,000 | ||||||||
Stock-based compensation expense | $ 31,400,000 | $ 37,300,000 | |||||||
Tax benefits realized, stock plan awards | $ 7,900,000 | $ 9,500,000 | |||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Expected term | 6 years 3 months | 6 years 3 months | |||||||
Equity Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Beginning vesting term | one year after date of grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||
Service-based stock option activity [Roll Forward] | |||||||||
Service-based stock options, outstanding, beginning of period | 1,472,000 | 1,472,000 | |||||||
Service-based stock options, granted | 175,000 | ||||||||
Service-based stock options, exercised | 114,000 | ||||||||
Service-based stock options, cancelled | 17,000 | ||||||||
Service-based stock options, outstanding, end of period | 1,516,000 | ||||||||
Service-based stock options, exercisable | 1,132,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||||||
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 64.14 | $ 64.14 | |||||||
Service-based stock options, granted, weighted average price per option | 107.18 | ||||||||
Service-based stock options, exercised, weighted average price per option | 49.72 | ||||||||
Service-based stock options, cancelled, weighted average price per option | 107.29 | ||||||||
Service-based stock options, outstanding, weighted average price per option, end of period | 69.71 | ||||||||
Service-based stock options, exercisable, weighted average price per option | $ 55.54 | ||||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Contingently issuable performance share awards, performance period | 4 years | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Other than options, vested number | 200,000 | ||||||||
Beginning vesting term | three years after date of grant | ||||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | ||||||||
Performance Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Other than options, vested number | 26,000 | 54,000 | 54,000 | ||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | 2 years | 3 years | 2 years | 2 years | ||||
Contingently issuable performance share awards, service period | 1 year | 1 year | 1 year | ||||||
Warnaco acquisition [Member] | Equity Option [Member] | |||||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | ||||||||
Black-Scholes-Merton Model [Member] | |||||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Risk-free interest rate | 1.54% | 2.15% | |||||||
Expected Company volatility | 36.26% | 44.12% | |||||||
Expected annual dividends per share | $ 0.15 | $ 0.15 | |||||||
Estimated fair value per option | $ 40.20 | $ 56.21 |
STOCK-BASED COMPENSATION - RSU,
STOCK-BASED COMPENSATION - RSU, RESTRICTED STOCK AND PERFORMANCE SHARE ACTIVITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
May. 01, 2016 | Nov. 01, 2015 | May. 03, 2015 | May. 04, 2014 | Aug. 04, 2013 | May. 05, 2013 | Apr. 29, 2012 | Nov. 01, 2015 | Nov. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 10,800,000 | $ 15,800,000 | |||||||
Reduction in number of shares available to be granted by each stock award | 2 | 2 | |||||||
First RSU Vesting Installments, Employees, Number of Yrs Following Grant Date | two years after date of grant | ||||||||
First RSU Vesting Installments, Nonemployee Directors, Number of Yrs Following Grant Date, Awards Prior to 2010 | one year after date of grant | ||||||||
Percentage of Final Number of Shares Based Upon the Company's Absolute Stock Price Growth | 50.00% | ||||||||
Percent of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50.00% | ||||||||
Non-vested activity [Roll Forward] | |||||||||
Tax benefits realized, stock plan awards | $ 7,900,000 | 9,500,000 | |||||||
Excess tax benefits reported, stock plan awards | $ 5,000,000 | $ 9,300,000 | |||||||
Equity Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contingently issuable performance share awards, performance period | 4 years | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | ||||||||
Non-vested activity [Roll Forward] | |||||||||
Other than options, non-vested number, beginning of period | 640,000 | 640,000 | |||||||
Other than options, granted number | 302,000 | ||||||||
Other than options, vested number | 200,000 | ||||||||
Other than options, cancelled number | 66,000 | ||||||||
Other than options, non-vested number, end of period | 676,000 | 676,000 | |||||||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 107.42 | $ 107.42 | |||||||
Other than options, granted, weighted average grant date fair value | 104.65 | ||||||||
Other than options, vested, weighted average grant date fair value | 86.75 | ||||||||
Other than options, cancelled, weighted average grant date fair value | 112.99 | ||||||||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 111.74 | $ 111.74 | |||||||
Restricted Stock [Member] | |||||||||
Non-vested activity [Roll Forward] | |||||||||
Other than options, non-vested number, beginning of period | 20,000 | 20,000 | |||||||
Other than options, granted number | 0 | ||||||||
Other than options, vested number | 17,000 | ||||||||
Other than options, cancelled number | 1,000 | ||||||||
Other than options, non-vested number, end of period | 2,000 | 2,000 | |||||||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 120.72 | $ 120.72 | |||||||
Other than options, granted, weighted average grant date fair value | 0 | ||||||||
Other than options, vested, weighted average grant date fair value | 120.72 | ||||||||
Other than options, cancelled, weighted average grant date fair value | 120.72 | ||||||||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 120.72 | $ 120.72 | |||||||
Performance Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | 2 years | 3 years | 2 years | 2 years | ||||
Contingently issuable performance share awards, service period | 1 year | 1 year | 1 year | ||||||
Non-vested activity [Roll Forward] | |||||||||
Other than options, non-vested number, beginning of period | 553,000 | 553,000 | |||||||
Other than options, granted number | 46,000 | ||||||||
Other than options, vested number | 26,000 | 54,000 | 54,000 | ||||||
Other than options, cancelled number | 51,000 | ||||||||
Other than options, non-vested number, end of period | 494,000 | 494,000 | |||||||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 119.95 | $ 119.95 | |||||||
Other than options, granted, weighted average grant date fair value | 101.23 | ||||||||
Other than options, vested, weighted average grant date fair value | 88.52 | ||||||||
Other than options, cancelled, weighted average grant date fair value | 122.15 | ||||||||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 121.42 | $ 121.42 | |||||||
Monte Carlo Model [Member] | |||||||||
Assumptions used to estimate fair value of service-based stock options and performance share units [Abstract] | |||||||||
Risk-free interest rate | 0.90% | ||||||||
Expected Company volatility | 29.10% | ||||||||
Expected annual dividends per share | $ 0.15 | ||||||||
Estimated fair value per option | $ 101.23 | ||||||||
Warnaco acquisition [Member] | Equity Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contingently issuable performance share awards, performance period | 3 years | ||||||||
First Annual Installment [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSU vesting, granted to employees in installments | 25.00% | ||||||||
Second Annual Installment [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSU vesting, granted to employees in installments | 25.00% | ||||||||
Third Annual Installment [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSU vesting, granted to employees in installments | 50.00% |
ACCUMULATED OTHER COMPREHENSI62
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | Feb. 01, 2015 | Feb. 02, 2014 | |
Balance, foreign currency translation adjustments | $ (646.3) | $ (157.9) | $ (646.3) | $ (157.9) | $ (496.2) | $ 50.1 |
Other comprehensive (loss) income before reclassifications, foreign currency translation adjustments | (150.1) | (210) | ||||
Amounts reclassified from AOCI, foreign currency translation adjustments, net of tax | 0 | 0 | 0 | (2) | ||
Foreign currency translation adjustments, net of tax expense (benefit) | (150.1) | (208) | ||||
Balance, retirement liability adjustment | 0.2 | 0.6 | 0.2 | 0.6 | 0.4 | 1 |
Other comprehensive (loss) income before reclassifications, pension and postretirement plans | 0 | 0 | ||||
Amounts reclassified from AOCI, retirement liability adjustment | 0.1 | 0.2 | 0.2 | 0.4 | ||
Amortization of prior service credit related to pension and postretirement plans, net of tax (benefit) | (0.1) | (0.2) | (0.2) | (0.4) | ||
Balance, net unrealized and realized (loss) gain on effective hedges | 30.9 | 27.7 | 30.9 | 27.7 | 79.3 | (8.8) |
Other comprehensive (loss) income before reclassifications, net unrealized and realized (loss) gain on effective hedges | 22.1 | 30.6 | ||||
Amounts reclassified from AOCI, net unrealized and realized (loss) gain on effective hedges | 25.2 | 2.1 | 70.5 | (5.9) | ||
Net unrealized and realized (loss) gain related to effective hedges, net of tax (benefit) expense | (25.2) | 28.5 | (48.4) | 36.5 | ||
Accumulated other comprehensive loss | $ (615.2) | $ (129.6) | (615.2) | (129.6) | $ (416.5) | $ 42.3 |
Other Comprehensive (Loss) Income, Before Reclassifications, Net of Tax | (128) | (179.4) | ||||
Amounts reclassified from AOCI, total | 70.7 | (7.5) | ||||
Other comprehensive (loss) income | $ (198.7) | $ (171.9) |
ACCUMULATED OTHER COMPREHENSI63
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Amounts reclassified from AOCI, realized gain (loss) on effective hedges, tax effect | $ 0.7 | $ (0.7) | $ 1.3 | $ (1.8) |
Amounts reclassified from AOCI, net unrealized and realized (loss) gain on effective hedges | 25.2 | 2.1 | 70.5 | (5.9) |
Amounts reclassified from AOCI, amortization of prior service credit | 0.1 | 0.3 | 0.3 | 0.7 |
Amounts reclassified from AOCI, amortization of prior service credit related to pension and postretirement plan, tax effect | 0 | 0.1 | 0.1 | 0.3 |
Amounts reclassified from AOCI, retirement liability adjustment | 0.1 | 0.2 | 0.2 | 0.4 |
Amounts reclassified from AOCI, foreign currency translation adjustments | 0 | 0 | 0 | (2) |
Amounts reclassified from AOCI, foreign currency translation adjustments, tax effect | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, foreign currency translation adjustments, net of tax | 0 | 0 | 0 | (2) |
Foreign Exchange Forward Inventory Purchases [Member] | ||||
Amounts reclassified from AOCI, realized gain (loss) on effective hedges | 26.8 | 2.9 | 74.9 | (2.6) |
Interest Rate Contract [Member] | ||||
Amounts reclassified from AOCI, realized gain (loss) on effective hedges | $ (0.9) | $ (1.5) | $ (3.1) | $ (5.1) |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Nov. 01, 2015 | Jun. 03, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 500 | |
Stock Repurchase Program, Period in Force | 3 years | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 0.7 | |
Stock Repurchase Program, Amount Purchased During Period | $ 75.4 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 424.6 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Nov. 01, 2015USD ($) | Nov. 01, 2015USD ($) | |
Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | $ 278.3 | $ 278.3 |
Total costs incurred | 4.6 | 14.2 |
Restructuring and Related Cost, Cost Incurred to Date | 272.8 | 272.8 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 21.6 | |
Total costs paid | 29.1 | |
Total liability, end of period | 6.7 | 6.7 |
Exit of Izod Retail Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 31.9 | 31.9 |
Total costs incurred | 0.6 | 11.5 |
Restructuring and Related Cost, Cost Incurred to Date | 31.6 | 31.6 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 2.3 | |
Total costs paid | 11.7 | |
Total liability, end of period | 2.1 | 2.1 |
Severance, termination benefits and other costs [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 171.9 | 171.9 |
Total costs incurred | 4.3 | 13.1 |
Restructuring and Related Cost, Cost Incurred to Date | 168.3 | 168.3 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 14 | |
Total costs paid | 21.5 | |
Total liability, end of period | 5.6 | 5.6 |
Severance, termination benefits and other costs [Member] | Exit of Izod Retail Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 8.5 | 8.5 |
Total costs incurred | 0.2 | 5.8 |
Restructuring and Related Cost, Cost Incurred to Date | 8.2 | 8.2 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 2.3 | |
Total costs paid | 6.1 | |
Total liability, end of period | 2 | 2 |
Inventory liquidation costs[Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 36.1 | 36.1 |
Total costs incurred | 0 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 36.1 | 36.1 |
Lease/contract termination and related costs [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 70.3 | 70.3 |
Total costs incurred | 0.3 | 1.1 |
Restructuring and Related Cost, Cost Incurred to Date | 68.4 | 68.4 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 7.6 | |
Total costs paid | 7.6 | |
Total liability, end of period | 1.1 | 1.1 |
Lease/contract termination and related costs [Member] | Exit of Izod Retail Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 5.7 | 5.7 |
Total costs incurred | 0.4 | 5.7 |
Restructuring and Related Cost, Cost Incurred to Date | 5.7 | 5.7 |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 0 | |
Total costs paid | 5.6 | |
Total liability, end of period | 0.1 | 0.1 |
Long Lived Asset and goodwill Impairments [Member] | Exit of Izod Retail Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 17.7 | 17.7 |
Total costs incurred | 0 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | $ 17.7 | 17.7 |
Calvin Klein North America [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs incurred | 3.3 | |
Calvin Klein International [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs incurred | 1.4 | |
Heritage Brands Wholesale [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs incurred | 4.2 | |
Corporate Segment [Member] | Warnaco Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs incurred | $ 5.3 |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to PVH Corp. | $ 221.9 | $ 225.7 | $ 438.2 | $ 387.5 |
Weighted average common shares outstanding for basic net income per common share | 82.4 | 82.4 | 82.6 | 82.3 |
Weighted average impact of dilutive securities | 0.7 | 0.9 | 0.7 | 0.9 |
Total shares for diluted net income per common share | 83.1 | 83.3 | 83.3 | 83.2 |
Basic net income per common share attributable to PVH Corp. | $ 2.69 | $ 2.74 | $ 5.31 | $ 4.71 |
Diluted net income per common share attributable to PVH Corp. | $ 2.67 | $ 2.71 | $ 5.26 | $ 4.66 |
Weighted average potentially dilutive securities | 0.6 | 0.4 | 0.6 | 0.4 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Nov. 01, 2015 | Nov. 02, 2014 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of dilutive shares that could be issued upon vesting | 0.8 | 1 |
NONCASH INVESTING AND FINANCI68
NONCASH INVESTING AND FINANCING ACTIVITIES (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 13, 2013 | May. 04, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | Feb. 01, 2015 |
Nonmonetary Transaction [Line Items] | |||||
Contingent purchase price payments | $ 35 | $ 35.5 | |||
Deferred debt issuance costs | $ 17.5 | ||||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | ||
Warnaco employee replacement stock awards | $ 39.8 | ||||
Capital Lease Obligations Incurred | $ 4.1 | $ 3.3 | |||
Calvin Klein licensing business [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Contingent purchase price payment terms | 45 days | ||||
Calvin Klein North America and International Business [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Liabilities incurred related to contingent purchase price payments | $ 38.6 | 38.5 | |||
Contingent purchase price payments | $ 34.4 | 34.9 | |||
Calvin Klein Australia [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Increase In Investment Balances Related to Deconsolidation of Joint Ventures | 3.7 | ||||
Calvin Klein India Joint Venture [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Increase In Investment Balances Related to Deconsolidation of Joint Ventures | $ 6.2 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Nov. 01, 2015USD ($) | Nov. 02, 2014USD ($) | Nov. 01, 2015USD ($)segment | Nov. 02, 2014USD ($) | |||||
Segment Reporting Information [Line Items] | ||||||||
Segment Reporting, Number of Reportable Segments | segment | 6 | |||||||
Net sales | $ 2,040.9 | [1] | $ 2,114 | $ 5,591.9 | [1] | $ 5,876 | ||
Royalty revenue | 97.4 | [1] | 89.3 | 247 | [1] | 224 | ||
Advertising and other revenue | 26.2 | [1] | 29.8 | 68.9 | [1] | 72.4 | ||
Total revenue | 2,164.5 | [1] | 2,233.1 | 5,907.8 | [1] | 6,172.4 | ||
Income before interest and taxes | 253.6 | [2] | 279.9 | 584.5 | [2] | 523.7 | ||
Equity in net income of unconsolidated affiliates | 6.4 | 5.3 | 15 | 9.2 | ||||
Net gain on deconsolidation of subsidiaries and joint venture | 0 | 8 | ||||||
Debt modification and extinguishment costs | 0 | 0 | 0 | 93.1 | ||||
Calvin Klein North America [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 420.1 | [1] | 404.2 | 1,037 | [1] | 1,038.8 | ||
Royalty revenue | 43.9 | [1] | 38.6 | 103.1 | [1] | 87.7 | ||
Advertising and other revenue | 13.8 | [1] | 15.8 | 34.7 | [1] | 35.7 | ||
Total revenue | 477.8 | [1] | 458.6 | 1,174.8 | [1] | 1,162.2 | ||
Income before interest and taxes | 80.2 | [2],[3] | 76.5 | [4] | 166.7 | [2],[5] | 172.9 | [6] |
Calvin Klein International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 308.8 | [1] | 328.4 | 865.2 | [1] | 913.4 | ||
Royalty revenue | 21 | [1] | 20.5 | 57 | [1] | 56.9 | ||
Advertising and other revenue | 6.5 | [1] | 8.7 | 19.6 | [1] | 23.6 | ||
Total revenue | 336.3 | [1] | 357.6 | 941.8 | [1] | 993.9 | ||
Income before interest and taxes | 61.5 | [2],[3] | 50.4 | [4] | 145.5 | [2],[5] | 97.8 | [6],[7] |
Net gain on deconsolidation of subsidiaries and joint venture | 8 | |||||||
Tommy Hilfiger North America [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 416.5 | [1] | 421.7 | 1,142.8 | [1] | 1,162.9 | ||
Royalty revenue | 13.4 | [1] | 10 | 32.9 | [1] | 22.3 | ||
Advertising and other revenue | 4 | [1] | 3.4 | 9.4 | [1] | 7.4 | ||
Total revenue | 433.9 | [1] | 435.1 | 1,185.1 | [1] | 1,192.6 | ||
Income before interest and taxes | 57.1 | [2] | 75.4 | 146.2 | [2] | 180.9 | ||
Tommy Hilfiger International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 439.1 | [1] | 478.3 | 1,239.5 | [1] | 1,424 | ||
Royalty revenue | 13.6 | [1] | 14.9 | 38 | [1] | 42.4 | ||
Advertising and other revenue | 1 | [1] | 1.3 | 2.8 | [1] | 3.4 | ||
Total revenue | 453.7 | [1] | 494.5 | 1,280.3 | [1] | 1,469.8 | ||
Income before interest and taxes | 68.6 | [2] | 80.1 | 169.3 | [2] | 205.4 | ||
Heritage Brands Wholesale [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 384 | [1] | 393.8 | 1,059.5 | [1] | 1,079.8 | ||
Royalty revenue | 4.9 | [1] | 4.6 | 14.3 | [1] | 12.7 | ||
Advertising and other revenue | 0.8 | [1] | 0.5 | 2.2 | [1] | 1.9 | ||
Total revenue | 389.7 | [1] | 398.9 | 1,076 | [1] | 1,094.4 | ||
Income before interest and taxes | 25.3 | [2],[3],[8] | 33.5 | [4] | 72.9 | [2],[5],[8] | 84.4 | [6] |
Business Exit Costs | 13.1 | 16.4 | ||||||
Heritage Brands Retail [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 72.4 | [1] | 87.6 | 247.9 | [1] | 257.1 | ||
Royalty revenue | 0.6 | [1] | 0.7 | 1.7 | [1] | 2 | ||
Advertising and other revenue | 0.1 | [1] | 0.1 | 0.2 | [1] | 0.4 | ||
Total revenue | 73.1 | [1] | 88.4 | 249.8 | [1] | 259.5 | ||
Income before interest and taxes | 0.5 | [2],[9] | (1.9) | (2.3) | [2],[9] | (3.8) | ||
Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income before interest and taxes | (39.6) | [2],[3] | (34.1) | [4] | (113.8) | [2],[5],[10] | (213.9) | [6],[11] |
Equity in net income of unconsolidated affiliates | 2.2 | |||||||
Debt modification and extinguishment costs | 93.1 | |||||||
Warnaco Integration Costs [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 4.6 | 14.2 | ||||||
Warnaco Integration Costs [Member] | Calvin Klein North America [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 3.3 | |||||||
Warnaco Integration Costs [Member] | Calvin Klein International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 1.4 | |||||||
Warnaco Integration Costs [Member] | Heritage Brands Wholesale [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 4.2 | |||||||
Warnaco Integration Costs [Member] | Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 5.3 | |||||||
Exit of Izod Retail Business [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total costs incurred | 0.6 | 11.5 | ||||||
Exit of Izod Retail Business [Member] | Heritage Brands Retail [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Exit Costs | 2.8 | 9.1 | ||||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Integration Related Costs | 18.9 | 29.1 | 50.8 | 105.7 | ||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein North America [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Integration Related Costs | 2.7 | 2.1 | 5.6 | 10.8 | ||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Integration Related Costs | 3.9 | 13.2 | 7.6 | 36.5 | ||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Heritage Brands Wholesale [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Integration Related Costs | 1.4 | 4.7 | 7.1 | 13 | ||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Integration Related Costs | $ 10.9 | $ 9.1 | $ 30.5 | $ 45.4 | ||||
Karl Lagerfeld Joint Venture [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | ||||||
[1] | Revenue for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. | |||||||
[2] | Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 was significantly impacted by the strengthening of the United States dollar against other currencies in which the Company transacts significant levels of business. Please see section entitled “Results of Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this report for a further discussion. | |||||||
[3] | Income (loss) before interest and taxes for the thirteen weeks ended November 1, 2015 includes costs of $18.9 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.7 million in Calvin Klein North America; $3.9 million in Calvin Klein International; $1.4 million in Heritage Brands Wholesale; and $10.9 million in corporate expenses not allocated to any reportable segments. | |||||||
[4] | Income (loss) before interest and taxes for the thirteen weeks ended November 2, 2014 includes costs of $29.1 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $13.2 million in Calvin Klein International; $4.7 million in Heritage Brands Wholesale; and $9.1 million in corporate expenses not allocated to any reportable segments. | |||||||
[5] | Income (loss) before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes costs of $50.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $5.6 million in Calvin Klein North America; $7.6 million in Calvin Klein International; $7.1 million in Heritage Brands Wholesale; and $30.5 million in corporate expenses not allocated to any reportable segments. | |||||||
[6] | Income (loss) before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $105.7 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $10.8 million in Calvin Klein North America; $36.5 million in Calvin Klein International; $13.0 million in Heritage Brands Wholesale; and $45.4 million in corporate expenses not allocated to any reportable segments. | |||||||
[7] | Income before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes a net gain of $8.0 million associated with the deconsolidation of certain Calvin Klein subsidiaries in Australia and the Company’s previously consolidated Calvin Klein joint venture in India. Please refer to Note 4, “Investments in Unconsolidated Affiliates” and Note 5, “Redeemable Non-Controlling Interest” for further discussions. | |||||||
[8] | Income before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $13.1 million and $16.4 million, respectively, principally related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. | |||||||
[9] | Income (loss) before interest and taxes for the thirteen and thirty-nine weeks ended November 1, 2015 includes costs of $2.8 million and $9.1 million, respectively, related to the operation of and exit from the Company’s Izod retail business. | |||||||
[10] | Loss before interest and taxes for the thirty-nine weeks ended November 1, 2015 includes a one-time gain of $2.2 million recorded in connection with the Company’s 10% economic interest in Karl Lagerfeld. | |||||||
[11] | Loss before interest and taxes for the thirty-nine weeks ended November 2, 2014 includes costs of $93.1 million associated with the Company’s amendment and restatement of the 2013 facilities and the related redemption of its 7 3/8% senior notes due 2020. Please refer to Note 8, “Debt,” for a further discussion. |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | Nov. 01, 2015 | Feb. 01, 2015 | Nov. 02, 2014 |
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3.7 | ||
Guarantee Obligations Recourse | 2.3 | ||
Sale Of Bass [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 42.3 | ||
Guarantees, Fair Value Disclosure | 2.1 | $ 3 | $ 3.2 |
PVH Australia and CK India [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 7.8 |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | Nov. 01, 2015 | Feb. 01, 2015 | Nov. 02, 2014 |
Accounting Policies [Abstract] | |||
Unamortized debt issuance expense | $ 24.2 | $ 28.3 | $ 29.8 |