Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
May. 01, 2016 | May. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PVH CORP. /DE/ | |
Entity Central Index Key | 78,239 | |
Current Fiscal Year End Date | --01-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | May 1, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 80,856,451 | |
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 | |
May. 01, 2016 | May. 03, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 1,817.7 | $ 1,785.1 |
Royalty revenue | 77.1 | 74.2 |
Advertising and other revenue | 23 | 20 |
Total revenue | 1,917.8 | 1,879.3 |
Cost of goods sold (exclusive of depreciation and amortization) | 910.9 | 893.7 |
Gross profit | 1,006.9 | 985.6 |
Selling, general and administrative expenses | 865.2 | 814.9 |
Gain to write-up equity investment in joint venture to fair value | 153.1 | 0 |
Equity in net (loss) income of unconsolidated affiliates | (0.2) | 6.1 |
Income before interest and taxes | 294.6 | 176.8 |
Interest expense | 29.9 | 30.9 |
Interest income | 0.9 | 1.1 |
Income before taxes | 265.6 | 147 |
Income tax expense | 34 | 32.9 |
Net Income | $ 231.6 | $ 114.1 |
Basic net income per common share | $ 2.85 | $ 1.38 |
Diluted net income per common share | 2.83 | 1.37 |
Dividends declared per common share | $ 0.0750 | $ 0.0750 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Net Income | $ 231.6 | $ 114.1 |
Foreign currency translation adjustments, net of tax (benefit) expense | 184.3 | (15.3) |
Amortization of prior service credit related to pension and postretirement plans, net of tax benefit | (0.1) | (0.1) |
Net unrealized and realized loss related to effective hedges, net of tax benefit | (54.9) | (16.9) |
Other comprehensive income (loss) | 129.3 | (32.3) |
Total comprehensive income | $ 360.9 | $ 81.8 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Foreign currency translation adjustments, tax (benefit) expense | $ 0 | $ 0 |
Amortization of prior service credit related to pension and postretirement plans, tax benefit | 0 | 0 |
Net unrealized and realized loss related to effective hedges, tax benefit | $ 5.9 | $ 0.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May. 01, 2016 | Jan. 31, 2016 | May. 03, 2015 |
Current Assets: | |||
Cash and cash equivalents | $ 365.1 | $ 556.4 | $ 419.3 |
Trade receivables, net of allowances for doubtful accounts of $21.1, $18.1 and $18.9 | 661.5 | 657.2 | 733.6 |
Other receivables | 22.8 | 28.7 | 31.8 |
Inventories, net | 1,281.4 | 1,322.3 | 1,173.3 |
Prepaid expenses | 154.5 | 150.5 | 162.6 |
Other | 42.9 | 89.4 | 102.7 |
Total Current Assets | 2,528.2 | 2,804.5 | 2,623.3 |
Property, Plant and Equipment, net | 749.9 | 744.6 | 720.9 |
Goodwill | 3,572.3 | 3,219.3 | 3,261 |
Tradenames | 2,841.2 | 2,802.6 | 2,826.2 |
Other Intangibles, net | 967.5 | 843.8 | 931.4 |
Other Assets, including deferred taxes of $17.1, $12.2 and $17.7 | 226 | 259 | 286.9 |
Total Assets | 10,885.1 | 10,673.8 | 10,649.7 |
Current Liabilities: | |||
Accounts payable | 497.7 | 636.1 | 411.7 |
Accrued expenses | 706.2 | 696.3 | 683 |
Deferred revenue | 23.3 | 32.3 | 22.3 |
Short-term borrowings | 41 | 25.9 | 10.6 |
Current portion of long-term debt | 126.7 | 136.6 | 99.3 |
Total Current Liabilities | 1,394.9 | 1,527.2 | 1,226.9 |
Long-Term Debt | 2,991.6 | 3,031.7 | 3,362.8 |
Other Liabilities, including deferred taxes of $880.1, $836.4 and $893.3 | 1,636.3 | 1,562.6 | 1,615.5 |
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; 83,665,468; 83,545,818 and 83,366,852 shares issued | 83.6 | 83.5 | 83.4 |
Additional paid in capital - common stock | 2,832.9 | 2,822.5 | 2,782.1 |
Retained earnings | 2,786.6 | 2,561.2 | 2,109.2 |
Accumulated other comprehensive loss | (574.9) | (704.2) | (448.8) |
Less: 2,680,402; 2,057,850 and 688,450 shares of common stock held in treasury, at cost | (265.9) | (210.7) | (81.4) |
Total Stockholders' Equity | 4,862.3 | 4,552.3 | 4,444.5 |
Total Liabilities and Stockholders' Equity | $ 10,885.1 | $ 10,673.8 | $ 10,649.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May. 01, 2016 | Jan. 31, 2016 | May. 03, 2015 |
Current Assets: | |||
Allowance for doubtful accounts | $ 21.1 | $ 18.1 | $ 18.9 |
Other Assets: | |||
Other assets, deferred taxes | 17.1 | 12.2 | 17.7 |
Liabilities: | |||
Other liabilities, deferred taxes | $ 880.1 | $ 836.4 | $ 893.3 |
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) | 83,665,468 | 83,545,818 | 83,366,852 |
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) | 2,680,402 | 2,057,850 | 688,450 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
May. 01, 2016 | May. 03, 2015 | ||
OPERATING ACTIVITIES | |||
Net Income | $ 231.6 | $ 114.1 | |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 70.6 | 61 | |
Equity in net (loss) income of unconsolidated affiliates | 0.2 | (6.1) | |
Deferred taxes | 0.5 | (0.6) | |
Stock-based compensation expense | 10.3 | 8.5 | |
Gain to write-up equity investment in joint venture to fair value | (153.1) | 0 | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 12.7 | (28.8) | |
Inventories, net | 90.1 | 83.4 | |
Accounts payable, accrued expenses and deferred revenue | (174) | (194.8) | |
Prepaid expenses | 2.6 | (29.9) | |
Other, net | 17.7 | 53.6 | |
Net cash provided by operating activities | 109.2 | 60.4 | |
INVESTING ACTIVITIES(1) | |||
Business acquisitions, net of cash acquired | (158) | 0 | |
Purchase of property, plant and equipment | (45.9) | (48.5) | |
Contingent purchase price payments | (12.8) | (11.9) | |
Change in restricted cash | 0 | 20.2 | |
Investments in unconsolidated affiliates | (1.5) | (22.4) | |
Net cash used by investing activities | [1] | (218.2) | (62.6) |
FINANCING ACTIVITIES(1) | |||
Net proceeds from short-term borrowings | 15.1 | 2.1 | |
Repayment of 2014 facilities | (51.9) | (49.8) | |
Net proceeds from settlement of awards under stock plans | 0.8 | 3.4 | |
Excess tax benefits from awards under stock plans | 0.1 | 2 | |
Cash dividends | (6.2) | (6.2) | |
Acquisition of treasury shares | (53) | (9.1) | |
Payments of capital lease obligations | (2) | (1.9) | |
Net cash used by financing activities | [1] | (97.1) | (59.5) |
Effect of exchange rate changes on cash and cash equivalents | 14.8 | 1.7 | |
Decrease in cash and cash equivalents | (191.3) | (60) | |
Cash and cash equivalents at beginning of period | 556.4 | 479.3 | |
Cash and cash equivalents at end of period | $ 365.1 | $ 419.3 | |
[1] | See Note 16 for information on Noncash Investing and Financing Transactions. |
GENERAL
GENERAL | 3 Months Ended |
May. 01, 2016 | |
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, 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 5 , “Investments in Unconsolidated Affiliates,” 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 January 31, 2016 . 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 weeks ended May 1, 2016 and May 3, 2015 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 $ 58.3 million and $ 57.5 million in the thirteen weeks ended May 1, 2016 and May 3, 2015 , 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 | 3 Months Ended |
May. 01, 2016 | |
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 | 3 Months Ended |
May. 01, 2016 | |
Notes to Financial Statements [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of TH China The Company acquired on April 13, 2016 the 55% interest in TH Asia, Ltd. (“TH China”), its joint venture for Tommy Hilfiger in China, that it did not already own. Prior to April 13, 2016, the Company’s existing 45% interest in TH China was accounted for under the equity method of accounting. Following the acquisition of the 55% interest, the results of TH China’s operations were consolidated in the Company’s consolidated financial statements. TH China began operating the Tommy Hilfiger wholesale and retail distribution businesses in China in 2011 and licensed from a subsidiary of the Company the Tommy Hilfiger trademarks for use in connection with these businesses. The carrying value of the Company’s existing 45% interest in TH China prior to the acquisition was $ 52.5 million. In connection with the acquisition, this investment was remeasured to a fair value of $ 205.6 million, resulting in the recognition of a pre-tax noncash gain of $ 153.1 million during the first quarter of 2016. Such fair value was estimated based on the fair value of TH China using future operating cash flow projections discounted at a rate of return that accounted for the relative risks of the estimated future cash flows and included an estimated discount for a lack of marketability. The acquisition date fair value of the consideration for the 55% interest that the Company did not already own was $ 266.1 million, consisting of $ 263.3 million paid in cash and the elimination of a $ 2.8 million pre-acquisition receivable owed to the Company by TH China, and is subject to future adjustment for a net working capital settlement. Together with the fair value of the Company’s existing 45% interest, the total fair value of TH China was $ 471.7 million. The estimated fair value of assets acquired and liabilities assumed included net assets of $ 98.6 million (including $ 105.3 million of cash acquired), $ 110.8 million of other intangible assets and $ 262.3 million of goodwill. The goodwill of $262.3 million was assigned to the Company’s Tommy Hilfiger International segment. Goodwill is not expected to be deductible for tax purposes. The other intangible assets of $110.8 million as of April 13, 2016 included reacquired license rights of $ 72.1 million, order backlog of $ 26.3 million and customer relationships of $ 12.4 million, which are subject to amortization on a straight-line basis over 2.7 years, 0.8 years and 10.0 years, respectively. The Company is still in the process of finalizing the valuation of the assets acquired and liabilities assumed; thus, the allocation of the acquisition consideration is subject to change. |
ASSETS HELD FOR SALE (Notes)
ASSETS HELD FOR SALE (Notes) | 3 Months Ended |
May. 01, 2016 | |
Assets Held For Sale [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE During 2015, one of the Company’s European subsidiaries entered into an agreement to sell an owned building in Amsterdam, the Netherlands for € 15.0 million (approximately $ 17.1 million based on the exchange rate in effect on May 1, 2016). The building had a carrying value of $ 15.3 million as of May 1, 2016, including $ 0.8 million of building improvements. The sale is expected to close in the second quarter of 2016. The Company classified the building as held for sale beginning in the fourth quarter of 2015 and ceased recording depreciation on the building at that time. The carrying amounts in the Company’s Consolidated Balance Sheets of $ 15.3 million and $ 14.7 million as of May 1, 2016 and January 31, 2016, respectively, which were determined to be lower than the fair value, less costs to sell, were included in other current assets in the Calvin Klein International segment. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 3 Months Ended |
May. 01, 2016 | |
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 2014 for $ 18.9 million. During the first quarter of 2016, a third party acquired a minority stake in Karl Lagerfeld, diluting the Company’s economic interest to 8% . An employee of the Company, who is also a former executive officer and director, owns approximately 29% 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. PVH 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 PVH Australia its subsidiaries that were operating the Calvin Klein Jeans businesses in Australia and New Zealand. 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 $ 20.8 million to PVH Australia during the thirteen weeks ended May 3, 2015 , which represented its 50% share of the joint venture funding for the period. This investment is being accounted for under the equity method of accounting. CK India The Company acquired a 51% economic interest in a Calvin Klein joint venture in India, Premium Garments Wholesale Trading Private Limited (renamed Calvin Klein Arvind Fashion Private Limited, effective May 19, 2016, “CK India”), in 2013. CK India licenses from a subsidiary of the Company the rights to the Calvin Klein trademarks in India for certain product categories. CK India was consolidated in the Company’s financial statements during 2013. During the first quarter of 2014, Arvind Limited (“Arvind”) purchased the Company’s prior joint venture partners’ shares in CK India and, as a result of the entry into a shareholder agreement with different governing arrangements between the Company and Arvind, the Company no longer was 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 made a payment of $ 1.6 million to CK India during the thirteen weeks ended May 3, 2015 to contribute its 51% share of the joint venture funding for the period. TH 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. TH Brazil licenses from a subsidiary of the Company the rights to the Tommy Hilfiger trademarks in Brazil for certain product categories. This investment is being accounted for under the equity method of accounting. The Company made a payment of $ 1.5 million to TH Brazil during the thirteen weeks ended May 1, 2016 to contribute its 40% share of the joint venture funding for the period. TH China The Company formed TH China as a joint venture in 2010. This investment was accounted for under the equity method of accounting until April 13, 2016, on which date the Company acquired the 55% interest in TH China that it did not already own. Please see Note 3 , “Acquisitions,” for a further discussion. TH 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. Arvind, the Company’s joint venture partner in CK India, is also the Company’s joint venture partner in TH India. Total Investments in Unconsolidated Affiliates Included in other assets in the Company’s Consolidated Balance Sheets as of May 1, 2016 , January 31, 2016 and May 3, 2015 is $95.9 million, $140.7 million (of which $ 52.9 million related to TH China) and $136.1 million (of which $ 46.0 million related to TH China), respectively, related to these investments in unconsolidated affiliates. |
GOODWILL
GOODWILL | 3 Months Ended |
May. 01, 2016 | |
Notes to Financial Statements [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the thirteen weeks ended May 1, 2016 , by segment (please see Note 17 , “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 January 31, 2016 Goodwill, gross $ 728.0 $ 841.5 $ 204.4 $ 1,208.4 $ 237.0 $ 11.9 $ 3,231.2 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 728.0 841.5 204.4 1,208.4 237.0 — 3,219.3 Contingent purchase price payments to Mr. Calvin Klein 7.1 5.2 — — — — 12.3 Acquisition of TH China — — — 262.3 — — 262.3 Currency translation 4.1 20.4 — 53.6 0.3 — 78.4 Balance as of May 1, 2016 Goodwill, gross 739.2 867.1 204.4 1,524.3 237.3 11.9 3,584.2 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 739.2 $ 867.1 $ 204.4 $ 1,524.3 $ 237.3 $ — $ 3,572.3 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 | 3 Months Ended |
May. 01, 2016 | |
Notes to Financial Statements [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company has five qualified defined benefit pension plans as of May 1, 2016 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 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 The Warnaco Group, Inc. (“Warnaco”) in 2013, 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 was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Pension Plans SERP Plans Postretirement Plans Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 5/1/16 5/3/15 5/1/16 5/3/15 5/1/16 5/3/15 Service cost, including plan expenses $ 6.5 $ 7.1 $ 1.3 $ 1.3 $ — $ — Interest cost 7.5 7.1 1.0 0.9 0.2 0.2 Expected return on plan assets (9.0 ) (10.8 ) — — — — Amortization of prior service cost (credit) 0.0 0.0 (0.0 ) (0.0) (0.1 ) (0.1 ) Total $ 5.0 $ 3.4 $ 2.3 $ 2.2 $ 0.1 $ 0.1 Currently, the Company expects to make a contribution of approximately $ 6.4 million to the Pension Plans in 2016. The Company’s actual contributions may differ from planned contributions due to many factors including changes in tax and other benefit laws, or significant differences between expected and actual pension asset performance or interest rates. |
DEBT
DEBT | 3 Months Ended |
May. 01, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings One of the Company’s Asian subsidiaries has yen-denominated short-term lines of credit and overdraft facilities with a number of Japanese banks at various interest rates that provide for borrowings of up to ¥2,200.0 million (approximately $ 20.5 million based on exchange rates in effect on May 1, 2016 ) and are utilized primarily to fund working capital needs. As of May 1, 2016 , the Company had $ 18.6 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at May 1, 2016 was 0.29% . The maximum amount of borrowings outstanding during the thirteen weeks ended May 1, 2016 was $ 18.6 million. One of the Company’s Asian subsidiaries has a won-denominated overdraft facility with a South Korean bank that provides for borrowings of up to ₩3,500.0 million (approximately $ 3.1 million based on exchange rates in effect on May 1, 2016 ) and is utilized primarily to fund working capital needs. Borrowings under this facility are unsecured and bear interest at the South Korean bank three-month certificate of deposit rate plus 1.50% . There were no borrowings outstanding under this facility as of or during the thirteen weeks ended May 1, 2016 . 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 of 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 thirteen weeks ended May 1, 2016 . One of the Company’s European subsidiaries has euro-denominated short-term revolving notes with a number of banks at various interest rates, as well as overdraft facilities, that provide for borrowings of up to €60.0 million (approximately $68.4 million based on exchange rates in effect on May 1, 2016 ) and are used primarily to fund working capital needs. There were no borrowings outstanding under these facilities as of or during the thirteen weeks ended May 1, 2016 . 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 overnight lending rate plus 3.00% . As of May 1, 2016 , the Company had $ 2.6 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at May 1, 2016 was 13.75% . The maximum amount of borrowings outstanding during the thirteen weeks ended May 1, 2016 was $ 3.3 million. One of the Company’s European subsidiaries has a Turkish lira-denominated short-term line of credit facility with a Turkish bank that provides for borrowings of up to lira 3.0 million (approximately $1.1 million based on exchange rates in effect on May 1, 2016 ) and is utilized primarily to fund working capital needs. Borrowings under this facility bear interest at the Turkish overnight lending rate plus 4.00% . As of May 1, 2016 , the Company had $ 0.9 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at May 1, 2016 was 15.50% . The maximum amount of borrowings outstanding during the thirteen weeks ended May 1, 2016 was $ 0.9 million. 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 ₱ 279.8 million (approximately $ 16.3 million based on exchange rates in effect on May 1, 2016 ) and are utilized primarily to fund working capital needs. As of May 1, 2016 , the Company had $ 8.0 million of borrowings outstanding under these facilities. The weighted average interest rate on the funds borrowed at May 1, 2016 was 5.32% . The maximum amount of borrowings outstanding during the thirteen weeks ended May 1, 2016 was $ 13.5 million. One of the Company’s Mexican subsidiaries has a peso-denominated short-term revolving credit facility with a Mexican bank that provides for borrowings of up to ₱ 161.1 million (approximately $ 9.4 million based on exchange rates in effect on May 1, 2016 ) 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 May 1, 2016 , the Company had $ 8.5 million of borrowings outstanding under this facility. The weighted average interest rate on the funds borrowed at May 1, 2016 was 4.37% . The maximum amount of borrowings outstanding during the thirteen weeks ended May 1, 2016 was equal to the maximum amount of borrowings available under this facility. One of the Company’s Latin American subsidiaries has Brazilian real-denominated short-term revolving credit facilities with a number of banks at various interest rates that provide for total available borrowings of R$83.0 million (approximately $23.8 million based on exchange rates in effect on May 1, 2016 ) and are utilized primarily to fund working capital needs. There were no borrowings outstanding under these facilities as of or during the thirteen weeks ended May 1, 2016 . 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. As of May 1, 2016 , the Company had $ 2.4 million of borrowings outstanding under these facilities. The weighted average interest rate on the funds borrowed at May 1, 2016 was 3.20% . The maximum amount of revolving borrowings outstanding under these facilities during the thirteen weeks ended May 1, 2016 was $ 8.0 million. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 5/1/16 5/3/15 Senior secured Term Loan A facility due 2019 $ 1,758.3 $ 1,877.5 Senior secured Term Loan B facility due 2020 571.4 797.7 4 1/2% senior unsecured notes due 2022 689.2 687.6 7 3/4% debentures due 2023 99.4 99.3 Total 3,118.3 3,462.1 Less: Current portion of long-term debt 126.7 99.3 Long-term debt $ 2,991.6 $ 3,362.8 Please see Note 11 , “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of May 1, 2016 and May 3, 2015 . On May 19, 2016 (the “Amendment Date”), the Company entered into an amendment (the “Amendment”) to its existing 2014 Senior Secured Credit Facilities that it had entered into on March 21, 2014, which are discussed below in the section entitled “2014 Senior Secured Credit Facilities.” Among other things, the Amendment provides for an additional $ 582.0 million principal amount of loans under the Term Loan A facility, the repayment of the $ 582.0 million principal amount of outstanding loans under the Term Loan B facility and the termination of the Term Loan B facility as of the Amendment Date. Please see Note 20, “Subsequent Events,” for a further discussion. The following discussion pertains to the Company’s debt as of May 1, 2016 and does not give effect to such amendment and repayment. As of May 1, 2016 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Remainder of 2016 $ 89.5 2017 186.2 2018 198.6 2019 1,291.1 2020 582.0 2021 — Total debt repayments for the next five years exceed the carrying amount of the Company’s term loan facilities as of May 1, 2016 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of May 1, 2016 , after taking into account the effect of the Company’s interest rate swap agreements discussed in the section below entitled “2014 Senior Secured Credit Facilities,” which were in effect as of such date, approximately 65% of the Company’s long-term debt had a fixed interest rate, with the remainder at variable interest rates. 2014 Senior Secured Credit Facilities On March 21, 2014 (the “Restatement Date”), the Company entered into an amendment (the “Prior Amendment”) to the prior facilities (as amended by the Prior Amendment, the “2014 facilities”). The Prior 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 date of the Term Loan B facility remained 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. In connection with entering into the Prior 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 was 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 May 1, 2016 , the Company had $ 2.4 million of outstanding revolving credit borrowings and $29.3 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 thirteen weeks ended May 1, 2016 and May 3, 2015 , the Company made payments of $51.9 million and $ 49.8 million, respectively, on its term loans under the 2014 facilities. As of May 1, 2016 , the Company had total term loans outstanding of $2,329.7 million, net of original issue discounts and debt issuance costs. 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 scheduled 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. 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 that exceeds the voluntary debt payments the Company has made during the applicable year, 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% ). The 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 Prior 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 Prior 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 each of the Company’s fiscal quarters, 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. Under the terms of this agreement, the one-month LIBOR that the Company paid was capped at a rate of 1.50% . Therefore, the maximum amount of interest that the Company paid on the then-outstanding notional amount was at the 1.50% capped rate, plus the current applicable margin. The agreement expired on February 17, 2016. 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. Such agreement remains outstanding with a notional amount of $ 681.7 million as of May 1, 2016 and is now converting a portion of the Company’s variable rate debt obligation under the senior secured credit 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 the Company 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 facilities, or any replacement facility with similar terms, to fixed rate debt. Such agreement remains outstanding with a notional amount of $561.8 million as of May 1, 2016 , and is now converting a portion of the Company’s variable rate debt obligation under the senior secured credit 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. The notional amount of each interest rate swap will be adjusted according to a pre-set schedule during the term of each swap 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. 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. The Company paid $ 16.3 million of fees during 2013 in connection with the issuance of these notes, which are amortized over the term of the notes. The Company may redeem some or all of these notes at any time prior to 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. Substantially all of the Company’s assets have been pledged as collateral to secure the Company’s obligations under its senior secured credit facilities, the 7 3/4% debentures due 2023 and contingent purchase price payments to Mr. Calvin Klein as discussed in Note 6 , “Goodwill.” |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
May. 01, 2016 | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rates for the thirteen weeks ended May 1, 2016 and May 3, 2015 were 12.8% and 22.4% , respectively. The effective income tax rate for the thirteen weeks ended May 1, 2016 was lower than the United States statutory rate due to the benefit of lower tax rates in international jurisdictions where the Company files tax returns. Also contributing to the lower effective income tax rate in the thirteen weeks ended May 1, 2016 was the benefit of certain discrete items, including the lower tax rate applicable to the pre-tax gain recorded to write-up the Company’s existing equity investment in TH China to fair value. The effective income tax rate for the thirteen weeks ended May 3, 2015 was lower than the United States statutory rate due to the benefit of lower tax rates in international jurisdictions where the Company files tax returns. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
May. 01, 2016 | |
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 to hedge against a portion of this exposure. The Company had also entered into an interest rate cap agreement, which expired on February 17, 2016. 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 (“AOCL”). 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 thirteen weeks ended May 1, 2016 and May 3, 2015 . 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) 5/1/16 1/31/16 5/3/15 5/1/16 1/31/16 5/3/15 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 1.0 $ 24.9 $ 58.1 $ 34.0 $ 1.7 $ 8.1 Interest rate contracts — — 0.5 18.4 20.6 13.1 Total contracts designated as cash flow hedges 1.0 24.9 58.6 52.4 22.3 21.2 Undesignated contracts: Foreign currency forward exchange contracts (principally intercompany transactions) 0.3 19.3 16.4 0.6 0.1 0.3 Total undesignated contracts 0.3 19.3 16.4 0.6 0.1 0.3 Total $ 1.3 $ 44.2 $ 75.0 $ 53.0 $ 22.4 $ 21.5 At May 1, 2016 , the notional amount outstanding of foreign currency forward exchange contracts was $943.2 million. Such contracts expire principally between May 2016 and August 2017. The following table summarizes the effect of the Company’s hedges designated as cash flow hedging instruments: (Loss) Gain Recognized in Other Comprehensive Income (Loss) Gain (Loss) Reclassified from AOCL into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 5/1/16 5/3/15 5/1/16 5/3/15 Foreign currency forward exchange contracts (inventory purchases) $ (58.4 ) $ 0.6 Cost of goods sold $ 4.7 $ 20.6 Interest rate contracts (0.1 ) 1.1 Interest expense (2.4 ) (1.1 ) Total $ (58.5 ) $ 1.7 $ 2.3 $ 19.5 A net loss in AOCL on foreign currency forward exchange contracts at May 1, 2016 of $16.9 million is estimated to be reclassified in the next 12 months in the Company’s Consolidated Income Statement to costs of goods sold as the underlying inventory hedged by such forward exchange contracts is sold. In addition, a net loss in AOCL for interest rate contracts at May 1, 2016 of $12.1 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 5/1/16 5/3/15 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ (3.8 ) $ 2.7 The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of May 1, 2016 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
May. 01, 2016 | |
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) 5/1/16 1/31/16 5/3/15 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 $ 1.3 N/A $ 1.3 N/A $ 44.2 N/A $ 44.2 N/A $ 74.5 N/A $ 74.5 Interest rate contracts N/A — N/A — N/A — N/A — N/A 0.5 N/A 0.5 Total Assets N/A $ 1.3 N/A $ 1.3 N/A $ 44.2 N/A $ 44.2 N/A $ 75.0 N/A $ 75.0 Liabilities: Foreign currency forward exchange contracts N/A $ 34.6 N/A $ 34.6 N/A $ 1.8 N/A $ 1.8 N/A $ 8.4 N/A $ 8.4 Interest rate contracts N/A 18.4 N/A 18.4 N/A 20.6 N/A 20.6 N/A 13.1 N/A 13.1 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 2.3 2.3 N/A N/A $ 2.2 2.2 N/A N/A $ 4.0 4.0 Total Liabilities N/A $ 53.0 $ 2.3 $ 55.3 N/A $ 22.4 $ 2.2 $ 24.6 N/A $ 21.5 $ 4.0 $ 25.5 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 will 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 thirteen weeks ended May 1, 2016 and May 3, 2015 : (In millions) Thirteen Weeks Ended 5/1/16 5/3/15 Beginning Balance $ 2.2 $ 4.0 Payments — — Adjustments included in earnings 0.1 0.0 Ending Balance $ 2.3 $ 4.0 Additional information with respect to assumptions used to value the contingent purchase price payment liability as of May 1, 2016 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 $ 0.1 million. A five percentage point increase or decrease in the compounded annual net sales growth rate would change the liability by approximately $ 0.1 million. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. In connection with the Company’s acquisition of the 55% of TH China that it did not already own, the Company’s existing 45% interest in TH China was remeasured to a fair value of $ 205.6 million, resulting in the recognition of a pre-tax noncash gain of $ 153.1 million in the thirteen weeks ended May 1, 2016 . The Company classifies this as a Level 3 measurement. Please see Note 3, “Acquisitions,” for a further discussion. 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 May 1, 2016 , January 31, 2016 and May 3, 2015 was $ 1.8 million, $ 1.9 million and $ 2.8 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 May 1, 2016 , January 31, 2016 and May 3, 2015 were as follows: (In millions) 5/1/16 1/31/16 5/3/15 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 365.1 $ 365.1 $ 556.4 $ 556.4 $ 419.3 $ 419.3 Short-term borrowings 41.0 41.0 25.9 25.9 10.6 10.6 Long-term debt (including portion classified as current) 3,118.3 3,188.1 3,168.3 3,190.5 3,462.1 3,501.1 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts 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. The carrying amounts of long-term debt reflect the unamortized portions of debt issuance costs and the original issue discounts. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
May. 01, 2016 | |
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, performance periods and performance measures, and such other terms and conditions as the plan committee determines. Through May 1, 2016 , 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, 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. 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 a per share exercise price equal to the closing price of the Company’s common stock on the business day immediately preceding the date of grant. Net income for the thirteen weeks ended May 1, 2016 and May 3, 2015 included $ 10.3 million and $ 8.5 million, respectively, of pre-tax expense related to stock-based compensation, with recognized income tax benefits of $ 2.8 million and $ 2.0 million, respectively. Stock options currently outstanding 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 thirteen weeks ended May 1, 2016 and May 3, 2015 : Thirteen Weeks Ended 5/1/16 5/3/15 Weighted average risk-free interest rate 1.44 % 1.54 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 34.67 % 36.32 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 35.64 $ 40.25 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 thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at January 31, 2016 1,443 $ 70.79 Granted 221 99.35 Exercised 12 65.95 Cancelled — — Outstanding at May 1, 2016 1,652 $ 74.65 Exercisable at May 1, 2016 1,199 $ 62.65 RSUs granted to employees in 2016 generally vest in four equal annual installments commencing one year after the date of grant. Outstanding RSUs granted to employees prior to 2016 generally vest in three annual installments of 25% , 25% and 50% commencing two years after the date of grant. Service-based RSUs granted to non-employee directors vest in full one year after the date of grant. The underlying RSU award agreements (excluding agreements for non-employee director awards) generally provide for accelerated vesting upon the award recipient’s retirement (as defined in the 2006 Plan). The fair value of service-based RSUs 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 thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 31, 2016 653 $ 111.61 Granted 308 98.26 Vested 110 105.44 Cancelled 23 113.34 Non-vested at May 1, 2016 828 $ 107.41 The Company granted contingently issuable PSUs to certain of the Company’s senior executives during the first quarter of each of 2013 and 2014. These awards were subject to achievement of an earnings per share 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 two-year performance period has ended and the holders did not earn any shares based on earnings per share growth over the performance period. For the awards granted in the first quarter of 2013, the holders earned an aggregate of 26,000 shares, which were paid out in the first quarter of 2016. For such awards, the Company recorded expense ratably over each applicable vesting period based on fair value and the Company’s expectations of the probable number of shares to be issued. The fair value of these contingently issuable PSUs was 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 did 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 each of 2015 and 2016 subject to a three-year performance period. For such awards, the final number of shares to be earned, if any, is contingent upon the Company’s achievement of goals for the applicable performance period, of which 50% is based upon the Company’s absolute stock price growth during the applicable performance period and 50% is based upon the Company’s total shareholder return during the applicable performance period relative to other companies included in the S&P 500 as of the date of grant. For the awards granted in the second quarter of 2013, the performance period ended on May 5, 2016 and the holders did not earn any shares, as the Company did not achieve the threshold performance level required for payout. 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 2016 and 2015 was established for each grant on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: 2016 2015 Risk-free interest rate 1.04 % 0.90 % Expected Company volatility 28.33 % 29.10 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 87.16 $ 101.23 Certain of the awards granted in the first quarter of 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 12.99% for the restriction of liquidity. PSU activity for the thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per share data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 31, 2016 493 $ 121.41 Granted 76 87.16 Vested 26 114.77 Cancelled 83 125.09 Non-vested at May 1, 2016 460 $ 115.42 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 thirteen weeks ended May 1, 2016 and May 3, 2015 were $ 4.1 million and $ 5.7 million, respectively. Of those amounts, $ 0.1 million and $ 2.0 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 | 3 Months Ended |
May. 01, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income [Text Block] | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in AOCL, net of related taxes, by component for the thirteen weeks ended May 1, 2016 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain (loss) on effective hedges Total Balance, January 31, 2016 $ (730.5 ) $ 0.1 $ 26.2 $ (704.2 ) Other comprehensive income (loss) before reclassifications 184.3 — (52.5 ) 131.8 Less: Amounts reclassified from AOCL — 0.1 2.4 2.5 Other comprehensive income (loss) 184.3 (0.1 ) (54.9 ) 129.3 Balance, May 1, 2016 $ (546.2 ) $ — $ (28.7 ) $ (574.9 ) The following table presents the changes in AOCL, net of related taxes, by component for the thirteen weeks ended May 3, 2015 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain (loss) on effective hedges Total Balance, February 1, 2015 $ (496.2 ) $ 0.4 $ 79.3 $ (416.5 ) Other comprehensive (loss) income before reclassifications (15.3 ) — 2.3 (13.0 ) Less: Amounts reclassified from AOCL — 0.1 19.2 19.3 Other comprehensive loss (15.3 ) (0.1 ) (16.9 ) (32.3 ) Balance, May 3, 2015 $ (511.5 ) $ 0.3 $ 62.4 $ (448.8 ) The following table presents reclassifications out of AOCL to earnings for the thirteen weeks ended May 1, 2016 and May 3, 2015 : Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended 5/1/16 5/3/15 Realized gain (loss) on effective hedges: Foreign currency forward exchange contracts $ 4.7 $ 20.6 Cost of goods sold Interest rate contracts (2.4 ) (1.1 ) Interest expense Less: Tax effect (0.1 ) 0.3 Income tax expense Total, net of tax $ 2.4 $ 19.2 Amortization of retirement liability items: Prior service credit $ 0.1 $ 0.1 Selling, general and administrative expenses Less: Tax effect 0.0 0.0 Income tax expense Total, net of tax $ 0.1 $ 0.1 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
May. 01, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDER'S EQUITY | 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, at any time, without prior notice. During the thirteen weeks ended May 1, 2016, the Company purchased approximately 0.6 million shares of its common stock in open market transactions for $ 50.5 million ( 1.9 million shares for $ 176.7 million since inception) under the program. As of May 1, 2016, the repurchased shares were held as treasury stock and $ 323.3 million of the authorization remained available for future share repurchases. Treasury stock activity also includes shares that were withheld in conjunction with the settlement of vested RSUs, PSUs and restricted stock to satisfy tax withholding requirements. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 3 Months Ended |
May. 01, 2016 | |
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 (In millions, except per share data) 5/1/16 5/3/15 Net income $ 231.6 $ 114.1 Weighted average common shares outstanding for basic net income per common share 81.3 82.6 Weighted average impact of dilutive securities 0.6 0.8 Total shares for diluted net income per common share 81.9 83.4 Basic net income per common share $ 2.85 $ 1.38 Diluted net income per common share $ 2.83 $ 1.37 Potentially dilutive securities excluded from the calculation of diluted net income per common share were as follows: Thirteen Weeks Ended (In millions) 5/1/16 5/3/15 Weighted average potentially dilutive securities 0.9 0.5 Shares underlying contingently issuable awards that have not met the necessary conditions as of the end of a reporting period are not included in the calculation of diluted net income per common share for that period. The Company had contingently issuable awards outstanding that did not meet the performance conditions as of May 1, 2016 and May 3, 2015 and, therefore, were excluded from the calculation of diluted net income per common share for each applicable period. The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.9 million and 0.9 million as of May 1, 2016 and May 3, 2015 , 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 | 3 Months Ended |
May. 01, 2016 | |
Notes to Financial Statements [Abstract] | |
NONCASH INVESTING AND FINANCING TRANSACTIONS | NONCASH INVESTING AND FINANCING TRANSACTIONS During the thirteen weeks ended May 1, 2016 and May 3, 2015 , the Company recorded increases to goodwill of $12.3 million and $11.7 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 thirteen weeks ended May 1, 2016 and May 3, 2015 , the Company paid $12.8 million and $11.9 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. Omitted from purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows for the thirteen weeks ended May 1, 2016 and May 3, 2015 are $ 2.3 million and $ 2.5 million, respectively, of assets acquired through capital leases. During the first quarter of 2016, the Company completed the acquisition of TH China. Included in the acquisition consideration was the elimination of a $ 2.8 million pre-acquisition receivable owed to the Company by TH China. Omitted from acquisition of treasury shares in the Company’s Consolidated Statement of Cash Flows for the thirteen weeks ended May 1, 2016 is $ 2.2 million of shares repurchased under the stock repurchase program for which the trade occurred but remained unsettled as of May 1, 2016 . |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
May. 01, 2016 | |
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 and e-commerce sites operated by key department store customers and pure play e-commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce sites 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, Calvin Klein Collection and Calvin Klein Platinum 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, e-commerce sites operated by key department store customers and pure play e-commerce retailers, franchisees of Calvin Klein, distributors and licensees; (ii) operating retail stores and e-commerce sites 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 and Calvin Klein 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, as well as e-commerce sites operated by key department store customers and pure play e-commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and e-commerce sites 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 and China, primarily to department and specialty stores, e-commerce sites operated by key department store customers and pure play e-commerce retailers, franchisees of Tommy Hilfiger , distributors and licensees; (ii) operating retail stores in Europe, China and Japan and international e-commerce sites, 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, India and Australia. This segment included the Company’s proportionate share of the net income or loss of its investment in an unconsolidated Tommy Hilfiger foreign affiliate in China until April 13, 2016, on which date the Company acquired the remaining interest in the affiliate that it did not already own and began to consolidate the operations as a wholly owned subsidiary of the Company. Please see Note 3, “Acquisitions,” for a further discussion. Heritage Brands Wholesale Segment - This segment consists of the Company’s Heritage Brands Wholesale division. This segment derives revenue primarily from the marketing to department, chain and specialty stores and, to a lesser extent, e-commerce sites operated by key department store customers and pure play e-commerce retailers 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 but continues to sell a limited selection of IZOD Golf apparel in some of its Van Heusen retail stores. The Company also sells Warner’s products on a limited basis in some of its Van Heusen retail stores. The following tables present summarized information by segment: Thirteen Weeks Ended (In millions) 5/1/16 5/3/15 Revenue – Calvin Klein North America Net sales $ 338.8 $ 299.3 Royalty revenue 30.3 29.7 Advertising and other revenue 11.5 9.8 Total 380.6 338.8 Revenue – Calvin Klein International Net sales 316.3 291.6 Royalty revenue 18.6 17.7 Advertising and other revenue 7.2 5.8 Total 342.1 315.1 Revenue – Tommy Hilfiger North America Net sales 321.1 341.5 Royalty revenue 11.0 9.6 Advertising and other revenue 2.5 2.8 Total 334.6 353.9 Revenue – Tommy Hilfiger International Net sales 444.6 400.2 Royalty revenue 11.6 12.1 Advertising and other revenue 1.0 0.9 Total 457.2 413.2 Revenue – Heritage Brands Wholesale Net sales 339.2 367.5 Royalty revenue 5.0 4.6 Advertising and other revenue 0.7 0.6 Total 344.9 372.7 Revenue – Heritage Brands Retail Net sales 57.7 85.0 Royalty revenue 0.6 0.5 Advertising and other revenue 0.1 0.1 Total 58.4 85.6 Total Revenue Net sales 1,817.7 1,785.1 Royalty revenue 77.1 74.2 Advertising and other revenue 23.0 20.0 Total $ 1,917.8 $ 1,879.3 Thirteen Weeks Ended (In millions) 5/1/16 (1) 5/3/15 (1) Income before interest and taxes – Calvin Klein North America $ 38.1 (3)(7) $ 40.4 (8) Income before interest and taxes – Calvin Klein International 52.2 (3)(7) 49.3 (8) Income before interest and taxes – Tommy Hilfiger North America 23.0 (4) 30.3 Income before interest and taxes – Tommy Hilfiger International 183.3 (6) 61.8 Income before interest and taxes – Heritage Brands Wholesale 27.9 (3)(5) 30.3 (8) Income (loss) before interest and taxes – Heritage Brands Retail 2.1 (0.1 ) (9) Loss before interest and taxes – Corporate (2) (32.0 ) (3) (35.2 ) (8) Income before interest and taxes $ 294.6 $ 176.8 (1) Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 and May 3, 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 May 1, 2016 includes costs of $ 7.5 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 0.2 million in Calvin Klein North America; $ 2.6 million in Calvin Klein International; $ 0.4 million in Heritage Brands Wholesale; and $ 4.3 million in corporate expenses not allocated to any reportable segments. (4) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 1.3 million in connection with the licensing to G-III Apparel Group, Ltd. (“G-III”) of the Tommy Hilfiger womenswear wholesale business in the United States and Canada. (5) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 2.6 million related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. (6) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes a noncash gain of $ 153.1 million to write-up the Company’s equity investment in TH China to fair value in connection with the acquisition of the 55% interest in TH China that it did not already own. Partially offsetting the gain are acquisition related costs of $ 24.2 million, principally related to valuation adjustments and amortization of short-lived assets, and a one-time cost of $ 5.9 million recorded on the Company’s equity investment in TH China. Please see Note 3, “Acquisitions,” for a further discussion. (7) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 5.5 million in connection with the restructuring related to the new global creative strategy for Calvin Klein announced in April 2016. Such costs were included in the Company’s segments as follows: $ 2.7 million in Calvin Klein North America; and $ 2.8 million in Calvin Klein International. (8) Income (loss) before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $18.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $3.9 million in Calvin Klein International; $3.6 million in Heritage Brands Wholesale; and $9.2 million in corporate expenses not allocated to any reportable segments. (9) Loss before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $ 0.5 million related to the operation of and exit from the Company’s Izod retail business. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Calvin Klein North America segment and the Tommy Hilfiger 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 | 3 Months Ended |
May. 01, 2016 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company guaranteed to a landlord the payment of rent and related costs by the tenant occupying space previously leased by the Company. The maximum amount guaranteed as of May 1, 2016 was approximately $ 3.5 million, which was subject to exchange rate fluctuation. The Company had the right to seek recourse of approximately $ 2.2 million as of May 1, 2016 , which was subject to exchange rate fluctuation. The guarantee expired on May 19, 2016. The estimated fair value of this guarantee obligation was immaterial as of May 1, 2016 , January 31, 2016 and May 3, 2015 . 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 May 1, 2016 was $ 36.8 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 May 1, 2016 , January 31, 2016 and May 3, 2015 was $ 1.8 million, $ 1.9 million and $ 2.8 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 May 1, 2016 was approximately $ 8.0 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 May 1, 2016 , January 31, 2016 and May 3, 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 | 3 Months Ended |
May. 01, 2016 | |
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. In 2016, the FASB issued final amendments to clarify the implementation guidance related to principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. 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 adoption on the Company’s consolidated financial statements. The FASB issued in June 2014 guidance to clarify accounting for stock-based compensation awards by requiring that a performance target that affects vesting and that can be met after the requisite service period be treated as a performance condition. This guidance was effective for the Company in the first quarter of 2016. The adoption did not have any impact on the Company’s consolidated financial statements. 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 Company elected to early adopt this guidance during the fourth quarter of 2015 on a retrospective basis, which resulted in decreases to other current assets of $ 104.3 million, accrued expenses of $ 0.7 million and other liabilities of $ 95.1 million and an increase to other assets of $ 8.5 million as of May 3, 2015. 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. The Company adopted this guidance during the first quarter of 2016 on a retrospective basis, which resulted in decreases to other current assets of $ 8.1 million and $ 8.1 million as of January 31, 2016 and May 3, 2015 , respectively, and other assets of $ 14.5 million and $ 18.8 million as of January 31, 2016 , and May 3, 2015, respectively, both with corresponding decreases in debt. 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. The guidance became effective in the first quarter of 2016. 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 the adoption on the Company’s consolidated financial statements. The FASB issued in January 2016 an update to accounting guidance for the recognition and measurement of financial instruments. The new guidance requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. The guidance will be effective for the Company in the first quarter of 2018 with limited early application permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. The FASB issued in February 2016 a new accounting standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease liability in the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee’s initial direct costs ( e.g. , commissions). The guidance will be effective for the Company in the first quarter of 2019 with early application permitted. The adoption will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented. The Company is currently evaluating the standard to determine the impact of the adoption on the Company’s consolidated financial statements but expects that it will result in a significant increase to its other assets and other liabilities. The FASB issued in March 2016 an update to accounting guidance to simplify several aspects of the accounting for share-based payment award transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance will be effective for the Company in the first quarter of 2017, with early application permitted. The Company is currently evaluating the standard to determine the impact of the adoption on the Company’s consolidated financial statements. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 3 Months Ended |
May. 01, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On the Amendment Date, the Company entered into the Amendment to the 2014 facilities (as amended by the Amendment, the “2016 facilities”). Among other things, the Amendment provides for an additional $ 582.0 million principal amount of loans under the Term Loan A facility, the repayment of all outstanding loans under the Term Loan B facility and the termination of the Term Loan B facility. In addition, the Amendment extends the maturity of the Term Loan A and the revolving credit facilities from February 13, 2019 to May 19, 2021. On the Amendment Date, the Company borrowed the additional $582.0 million principal amount of loans under the Term Loan A facility made available pursuant to the Amendment and the 2016 facilities and used the proceeds to repay the outstanding $ 582.0 million principal amount of loans under the Term Loan B facility borrowed under the 2014 facilities. On May 19, 2016, the Company announced that it had entered into an agreement with Grupo Axo, S.A.P.I. de C.V. (“Grupo Axo”) to form a joint venture that will license from wholly owned subsidiaries of the Company the rights to operate and manage the distribution of certain Calvin Klein , Tommy Hilfiger , Warner’s , Olga and Speedo brand products in Mexico. The joint venture will be formed by merging the wholly owned subsidiary of the Company that operates the Calvin Klein and Heritage Brands businesses in Mexico with the wholly owned subsidiary of Grupo Axo that distributes Tommy Hilfiger brand products in Mexico. The closing, which is subject to customary closing conditions, including regulatory approval, is expected to occur early in the third quarter of 2016. |
GENERAL (Policies)
GENERAL (Policies) | 3 Months Ended |
May. 01, 2016 | |
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 5 , “Investments in Unconsolidated Affiliates,” for a further discussion. |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
May. 01, 2016 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the thirteen weeks ended May 1, 2016 , by segment (please see Note 17 , “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 January 31, 2016 Goodwill, gross $ 728.0 $ 841.5 $ 204.4 $ 1,208.4 $ 237.0 $ 11.9 $ 3,231.2 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 728.0 841.5 204.4 1,208.4 237.0 — 3,219.3 Contingent purchase price payments to Mr. Calvin Klein 7.1 5.2 — — — — 12.3 Acquisition of TH China — — — 262.3 — — 262.3 Currency translation 4.1 20.4 — 53.6 0.3 — 78.4 Balance as of May 1, 2016 Goodwill, gross 739.2 867.1 204.4 1,524.3 237.3 11.9 3,584.2 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 739.2 $ 867.1 $ 204.4 $ 1,524.3 $ 237.3 $ — $ 3,572.3 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 3 Months Ended |
May. 01, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net benefit cost was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows: Pension Plans SERP Plans Postretirement Plans Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 5/1/16 5/3/15 5/1/16 5/3/15 5/1/16 5/3/15 Service cost, including plan expenses $ 6.5 $ 7.1 $ 1.3 $ 1.3 $ — $ — Interest cost 7.5 7.1 1.0 0.9 0.2 0.2 Expected return on plan assets (9.0 ) (10.8 ) — — — — Amortization of prior service cost (credit) 0.0 0.0 (0.0 ) (0.0) (0.1 ) (0.1 ) Total $ 5.0 $ 3.4 $ 2.3 $ 2.2 $ 0.1 $ 0.1 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
May. 01, 2016 | |
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) 5/1/16 5/3/15 Senior secured Term Loan A facility due 2019 $ 1,758.3 $ 1,877.5 Senior secured Term Loan B facility due 2020 571.4 797.7 4 1/2% senior unsecured notes due 2022 689.2 687.6 7 3/4% debentures due 2023 99.4 99.3 Total 3,118.3 3,462.1 Less: Current portion of long-term debt 126.7 99.3 Long-term debt $ 2,991.6 $ 3,362.8 |
Schedule of Mandatory Long-Term Debt Repayments [Table] | As of May 1, 2016 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Remainder of 2016 $ 89.5 2017 186.2 2018 198.6 2019 1,291.1 2020 582.0 2021 — Total debt repayments for the next five years exceed the carrying amount of the Company’s term loan facilities as of May 1, 2016 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
May. 01, 2016 | |
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) 5/1/16 1/31/16 5/3/15 5/1/16 1/31/16 5/3/15 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 1.0 $ 24.9 $ 58.1 $ 34.0 $ 1.7 $ 8.1 Interest rate contracts — — 0.5 18.4 20.6 13.1 Total contracts designated as cash flow hedges 1.0 24.9 58.6 52.4 22.3 21.2 Undesignated contracts: Foreign currency forward exchange contracts (principally intercompany transactions) 0.3 19.3 16.4 0.6 0.1 0.3 Total undesignated contracts 0.3 19.3 16.4 0.6 0.1 0.3 Total $ 1.3 $ 44.2 $ 75.0 $ 53.0 $ 22.4 $ 21.5 |
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 Income (Loss) Gain (Loss) Reclassified from AOCL into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 5/1/16 5/3/15 5/1/16 5/3/15 Foreign currency forward exchange contracts (inventory purchases) $ (58.4 ) $ 0.6 Cost of goods sold $ 4.7 $ 20.6 Interest rate contracts (0.1 ) 1.1 Interest expense (2.4 ) (1.1 ) Total $ (58.5 ) $ 1.7 $ 2.3 $ 19.5 |
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 5/1/16 5/3/15 Foreign currency forward exchange contracts (principally intercompany transactions) Selling, general and administrative expenses $ (3.8 ) $ 2.7 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
May. 01, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | In connection with the Company’s acquisition of the 55% of TH China that it did not already own, the Company’s existing 45% interest in TH China was remeasured to a fair value of $ 205.6 million, resulting in the recognition of a pre-tax noncash gain of $ 153.1 million in the thirteen weeks ended May 1, 2016 . The Company classifies this as a Level 3 measurement. Please see Note 3, “Acquisitions,” for a further discussion. |
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) 5/1/16 1/31/16 5/3/15 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 $ 1.3 N/A $ 1.3 N/A $ 44.2 N/A $ 44.2 N/A $ 74.5 N/A $ 74.5 Interest rate contracts N/A — N/A — N/A — N/A — N/A 0.5 N/A 0.5 Total Assets N/A $ 1.3 N/A $ 1.3 N/A $ 44.2 N/A $ 44.2 N/A $ 75.0 N/A $ 75.0 Liabilities: Foreign currency forward exchange contracts N/A $ 34.6 N/A $ 34.6 N/A $ 1.8 N/A $ 1.8 N/A $ 8.4 N/A $ 8.4 Interest rate contracts N/A 18.4 N/A 18.4 N/A 20.6 N/A 20.6 N/A 13.1 N/A 13.1 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 2.3 2.3 N/A N/A $ 2.2 2.2 N/A N/A $ 4.0 4.0 Total Liabilities N/A $ 53.0 $ 2.3 $ 55.3 N/A $ 22.4 $ 2.2 $ 24.6 N/A $ 21.5 $ 4.0 $ 25.5 |
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 thirteen weeks ended May 1, 2016 and May 3, 2015 : (In millions) Thirteen Weeks Ended 5/1/16 5/3/15 Beginning Balance $ 2.2 $ 4.0 Payments — — Adjustments included in earnings 0.1 0.0 Ending Balance $ 2.3 $ 4.0 |
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 May 1, 2016 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 $ 0.1 million. A five percentage point increase or decrease in the compounded annual net sales growth rate would change the liability by approximately $ 0.1 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 May 1, 2016 , January 31, 2016 and May 3, 2015 were as follows: (In millions) 5/1/16 1/31/16 5/3/15 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 365.1 $ 365.1 $ 556.4 $ 556.4 $ 419.3 $ 419.3 Short-term borrowings 41.0 41.0 25.9 25.9 10.6 10.6 Long-term debt (including portion classified as current) 3,118.3 3,188.1 3,168.3 3,190.5 3,462.1 3,501.1 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts 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) | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
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 thirteen weeks ended May 1, 2016 and May 3, 2015 : Thirteen Weeks Ended 5/1/16 5/3/15 Weighted average risk-free interest rate 1.44 % 1.54 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 34.67 % 36.32 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 35.64 $ 40.25 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 thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at January 31, 2016 1,443 $ 70.79 Granted 221 99.35 Exercised 12 65.95 Cancelled — — Outstanding at May 1, 2016 1,652 $ 74.65 Exercisable at May 1, 2016 1,199 $ 62.65 | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | RSU activity for the thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 31, 2016 653 $ 111.61 Granted 308 98.26 Vested 110 105.44 Cancelled 23 113.34 Non-vested at May 1, 2016 828 $ 107.41 | |
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 2016 and 2015 was established for each grant on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: 2016 2015 Risk-free interest rate 1.04 % 0.90 % Expected Company volatility 28.33 % 29.10 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 87.16 $ 101.23 | |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Certain of the awards granted in the first quarter of 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 12.99% for the restriction of liquidity. PSU activity for the thirteen weeks ended May 1, 2016 was as follows: (In thousands, except per share data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 31, 2016 493 $ 121.41 Granted 76 87.16 Vested 26 114.77 Cancelled 83 125.09 Non-vested at May 1, 2016 460 $ 115.42 |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
May. 01, 2016 | |
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 AOCL, net of related taxes, by component for the thirteen weeks ended May 1, 2016 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain (loss) on effective hedges Total Balance, January 31, 2016 $ (730.5 ) $ 0.1 $ 26.2 $ (704.2 ) Other comprehensive income (loss) before reclassifications 184.3 — (52.5 ) 131.8 Less: Amounts reclassified from AOCL — 0.1 2.4 2.5 Other comprehensive income (loss) 184.3 (0.1 ) (54.9 ) 129.3 Balance, May 1, 2016 $ (546.2 ) $ — $ (28.7 ) $ (574.9 ) The following table presents the changes in AOCL, net of related taxes, by component for the thirteen weeks ended May 3, 2015 : Foreign currency translation adjustments Retirement liability adjustment Net unrealized and realized gain (loss) on effective hedges Total Balance, February 1, 2015 $ (496.2 ) $ 0.4 $ 79.3 $ (416.5 ) Other comprehensive (loss) income before reclassifications (15.3 ) — 2.3 (13.0 ) Less: Amounts reclassified from AOCL — 0.1 19.2 19.3 Other comprehensive loss (15.3 ) (0.1 ) (16.9 ) (32.3 ) Balance, May 3, 2015 $ (511.5 ) $ 0.3 $ 62.4 $ (448.8 ) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income [Table Text Block] | The following table presents reclassifications out of AOCL to earnings for the thirteen weeks ended May 1, 2016 and May 3, 2015 : Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended 5/1/16 5/3/15 Realized gain (loss) on effective hedges: Foreign currency forward exchange contracts $ 4.7 $ 20.6 Cost of goods sold Interest rate contracts (2.4 ) (1.1 ) Interest expense Less: Tax effect (0.1 ) 0.3 Income tax expense Total, net of tax $ 2.4 $ 19.2 Amortization of retirement liability items: Prior service credit $ 0.1 $ 0.1 Selling, general and administrative expenses Less: Tax effect 0.0 0.0 Income tax expense Total, net of tax $ 0.1 $ 0.1 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended |
May. 01, 2016 | |
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 (In millions, except per share data) 5/1/16 5/3/15 Net income $ 231.6 $ 114.1 Weighted average common shares outstanding for basic net income per common share 81.3 82.6 Weighted average impact of dilutive securities 0.6 0.8 Total shares for diluted net income per common share 81.9 83.4 Basic net income per common share $ 2.85 $ 1.38 Diluted net income per common share $ 2.83 $ 1.37 |
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 (In millions) 5/1/16 5/3/15 Weighted average potentially dilutive securities 0.9 0.5 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
May. 01, 2016 | |
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 (In millions) 5/1/16 5/3/15 Revenue – Calvin Klein North America Net sales $ 338.8 $ 299.3 Royalty revenue 30.3 29.7 Advertising and other revenue 11.5 9.8 Total 380.6 338.8 Revenue – Calvin Klein International Net sales 316.3 291.6 Royalty revenue 18.6 17.7 Advertising and other revenue 7.2 5.8 Total 342.1 315.1 Revenue – Tommy Hilfiger North America Net sales 321.1 341.5 Royalty revenue 11.0 9.6 Advertising and other revenue 2.5 2.8 Total 334.6 353.9 Revenue – Tommy Hilfiger International Net sales 444.6 400.2 Royalty revenue 11.6 12.1 Advertising and other revenue 1.0 0.9 Total 457.2 413.2 Revenue – Heritage Brands Wholesale Net sales 339.2 367.5 Royalty revenue 5.0 4.6 Advertising and other revenue 0.7 0.6 Total 344.9 372.7 Revenue – Heritage Brands Retail Net sales 57.7 85.0 Royalty revenue 0.6 0.5 Advertising and other revenue 0.1 0.1 Total 58.4 85.6 Total Revenue Net sales 1,817.7 1,785.1 Royalty revenue 77.1 74.2 Advertising and other revenue 23.0 20.0 Total $ 1,917.8 $ 1,879.3 Thirteen Weeks Ended (In millions) 5/1/16 (1) 5/3/15 (1) Income before interest and taxes – Calvin Klein North America $ 38.1 (3)(7) $ 40.4 (8) Income before interest and taxes – Calvin Klein International 52.2 (3)(7) 49.3 (8) Income before interest and taxes – Tommy Hilfiger North America 23.0 (4) 30.3 Income before interest and taxes – Tommy Hilfiger International 183.3 (6) 61.8 Income before interest and taxes – Heritage Brands Wholesale 27.9 (3)(5) 30.3 (8) Income (loss) before interest and taxes – Heritage Brands Retail 2.1 (0.1 ) (9) Loss before interest and taxes – Corporate (2) (32.0 ) (3) (35.2 ) (8) Income before interest and taxes $ 294.6 $ 176.8 (1) Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 and May 3, 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 May 1, 2016 includes costs of $ 7.5 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $ 0.2 million in Calvin Klein North America; $ 2.6 million in Calvin Klein International; $ 0.4 million in Heritage Brands Wholesale; and $ 4.3 million in corporate expenses not allocated to any reportable segments. (4) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 1.3 million in connection with the licensing to G-III Apparel Group, Ltd. (“G-III”) of the Tommy Hilfiger womenswear wholesale business in the United States and Canada. (5) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 2.6 million related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. (6) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes a noncash gain of $ 153.1 million to write-up the Company’s equity investment in TH China to fair value in connection with the acquisition of the 55% interest in TH China that it did not already own. Partially offsetting the gain are acquisition related costs of $ 24.2 million, principally related to valuation adjustments and amortization of short-lived assets, and a one-time cost of $ 5.9 million recorded on the Company’s equity investment in TH China. Please see Note 3, “Acquisitions,” for a further discussion. (7) Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $ 5.5 million in connection with the restructuring related to the new global creative strategy for Calvin Klein announced in April 2016. Such costs were included in the Company’s segments as follows: $ 2.7 million in Calvin Klein North America; and $ 2.8 million in Calvin Klein International. (8) Income (loss) before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $18.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $3.9 million in Calvin Klein International; $3.6 million in Heritage Brands Wholesale; and $9.2 million in corporate expenses not allocated to any reportable segments. (9) Loss before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $ 0.5 million related to the operation of and exit from the Company’s Izod retail business. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Calvin Klein North America segment and the Tommy Hilfiger 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) | 3 Months Ended |
May. 01, 2016 | |
Fiscal Period [Line Items] | |
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 | |
May. 01, 2016 | May. 03, 2015 | |
Warehousing and Distribution [Line Items] | ||
Warehousing and Distribution Expense | $ 58.3 | $ 57.5 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Apr. 13, 2016 | May. 01, 2016 | May. 03, 2015 |
Business Acquisition [Line Items] | |||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | $ 0 | |
Tommy Hilfiger China Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||
Business Combination, Step Acquisition, Fair Value of Acquired Interest | $ 266.1 | ||
Business Combination, Step Acquisition Consideration, Cash | 263.3 | ||
Pre-Acquisition Accounts Receivable | 2.8 | ||
Business Combination, Step Acquisition, Total Fair Value | 471.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 98.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 105.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 110.8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill | $ 262.3 | ||
Tommy Hilfiger China Joint Venture [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 45.00% | ||
Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||
Carrying Value Prior To Step Acquisition Remeasurement | $ 52.5 | ||
Equity Method Investments, Fair Value Disclosure | 205.6 | ||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | ||
Licensing Agreements [Member] | Tommy Hilfiger China Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 8 months 12 days | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 72.1 | ||
Order or Production Backlog [Member] | Tommy Hilfiger China Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 months 18 days | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 26.3 | ||
Customer Relationships [Member] | Tommy Hilfiger China Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12.4 |
ASSETS HELD FOR SALE ASSETS HEL
ASSETS HELD FOR SALE ASSETS HELD FOR SALE (Details) € in Millions, $ in Millions | 3 Months Ended | ||
May. 01, 2016EUR (€) | May. 01, 2016USD ($) | May. 03, 2015USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | |||
Proceeds from Sale of Property Held-for-sale | € 15 | $ 17.1 | |
Building and Building Improvements [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Carrying amount of assets held for sale | 15.3 | $ 14.7 | |
Building [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Carrying amount of assets held for sale | $ 0.8 |
INVESTMENTS IN UNCONSOLIDATED42
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
May. 01, 2016 | May. 03, 2015 | May. 04, 2014 | Apr. 13, 2016 | Jan. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire interest in joint venture | $ 1.5 | $ 22.4 | |||
Equity Method Investments | $ 95.9 | 136.1 | $ 140.7 | ||
Karl Lagerfeld Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 8.00% | 10.00% | |||
Payments to acquire interest in joint venture | $ 18.9 | ||||
Equity Method Investment Ownership Percentage By Former Director | 29.00% | ||||
PVH Australia Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Payments to acquire interest in joint venture | 20.8 | ||||
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 | 1.6 | ||||
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 | $ 1.5 | ||||
Tommy Hilfiger China Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 45.00% | ||||
Equity Method Investments | $ 46 | $ 52.9 | |||
Tommy Hilfiger India Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Tommy Hilfiger China Acquisition [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger China Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 3 Months Ended |
May. 01, 2016USD ($) | |
Goodwill and Other Intangible Assets [Line Items] | |
Contingent purchase price payments, percentage of total worldwide net sales | 1.15% |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | $ 3,231.2 |
Accumulated impairment losses, beginning of period | (11.9) |
Goodwill, net, beginning of period | 3,219.3 |
Contingent purchase price payments to Mr. Calvin Klein | 12.3 |
Acquisition of TH China | 262.3 |
Currency translation | 78.4 |
Goodwill, gross, end of period | 3,584.2 |
Accumulated impairment losses, end of period | (11.9) |
Goodwill, net, end of period | 3,572.3 |
Calvin Klein North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 728 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 728 |
Contingent purchase price payments to Mr. Calvin Klein | 7.1 |
Acquisition of TH China | 0 |
Currency translation | 4.1 |
Goodwill, gross, end of period | 739.2 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 739.2 |
Calvin Klein International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 841.5 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 841.5 |
Contingent purchase price payments to Mr. Calvin Klein | 5.2 |
Acquisition of TH China | 0 |
Currency translation | 20.4 |
Goodwill, gross, end of period | 867.1 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 867.1 |
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 |
Acquisition of TH China | 0 |
Currency translation | 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 | 1,208.4 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 1,208.4 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Acquisition of TH China | 262.3 |
Currency translation | 53.6 |
Goodwill, gross, end of period | 1,524.3 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 1,524.3 |
Heritage Brands Wholesale [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 237 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 237 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
Acquisition of TH China | 0 |
Currency translation | 0.3 |
Goodwill, gross, end of period | 237.3 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 237.3 |
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 |
Acquisition of TH China | 0 |
Currency translation | 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 | 12 Months Ended | |
May. 01, 2016USD ($)plans | May. 03, 2015USD ($) | Jan. 29, 2017USD ($) | |
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 | ||
Plan Benefit Payment Activation Age | 65 | ||
Plan Benefit Payment Period | 10 years | ||
Minimum Number of Years of Employment | 10 years | ||
Minimum Age Prior to Employment Termination | 55 | ||
Service cost, including plan expenses | $ 1.3 | $ 1.3 | |
Interest cost | 1 | 0.9 | |
Expected Return on Plan Assets | 0 | 0 | |
Amortization of prior service cost (credit) | 0 | 0 | |
Total | $ 2.3 | 2.2 | |
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 | ||
Service cost, including plan expenses | $ 6.5 | 7.1 | |
Interest cost | 7.5 | 7.1 | |
Expected Return on Plan Assets | (9) | (10.8) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Total | $ 5 | 3.4 | |
Pension Contributions | $ 6.4 | ||
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 | ||
Minimum Number of Years of Employment | 10 years | ||
Minimum Age Prior to Employment Termination | 55 | ||
Service cost, including plan expenses | $ 0 | 0 | |
Interest cost | 0.2 | 0.2 | |
Expected Return on Plan Assets | 0 | 0 | |
Amortization of prior service cost (credit) | (0.1) | (0.1) | |
Total | $ 0.1 | $ 0.1 |
DEBT Yen-Denominated Overdraft
DEBT Yen-Denominated Overdraft Facility (Details) - 3 months ended May. 01, 2016 - Line of credit, Yen-denominated facility [Member] ¥ in Millions, $ in Millions | USD ($) | JPY (¥) | USD ($) |
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | ¥ 2,200 | $ 20.5 | |
Line of credit facility, amount outstanding | $ 18.6 | ||
Short-term debt, weighted average interest rate | 0.29% | 0.29% | |
Maximum amount of borrowings outstanding during the period | $ 18.6 |
DEBT Won-Denominated Overdraft
DEBT Won-Denominated Overdraft Facility (Details) - 3 months ended May. 01, 2016 - Line of credit, Won-denominated facility [Member] ₩ in Millions, $ in Millions | KRW (₩) | USD ($) |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | ₩ 3,500 | $ 3.1 |
Debt instrument, basis spread on variable rate | 1.50% |
DEBT Euro-Denominated Overdraft
DEBT Euro-Denominated Overdraft Facility (Details) - May. 01, 2016 € 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 | $ 68.4 |
DEBT USD-Denominated Line of Cr
DEBT USD-Denominated Line of Credit (Details) - Line Of Credit, USD-Denominated Line of Credit [Member] $ in Millions | 3 Months Ended |
May. 01, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 3.7 |
Debt instrument, basis spread on variable rate | 3.00% |
Line of credit facility, amount outstanding | $ 2.6 |
Short-term debt, weighted average interest rate | 13.75% |
Maximum amount of borrowings outstanding during the period | $ 3.3 |
DEBT Lira-Denominated Overdraft
DEBT Lira-Denominated Overdraft Facility (Details) - 3 months ended May. 01, 2016 - Line of credit, Lira-denominated facility [Member] TRY in Millions, $ in Millions | USD ($) | TRY | USD ($) |
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | TRY 3 | $ 1.1 | |
Line of credit facility, amount outstanding | $ 0.9 | ||
Debt instrument, basis spread on variable rate | 4.00% | ||
Short-term debt, weighted average interest rate | 15.50% | 15.50% | |
Maximum amount of borrowings outstanding during the period | $ 0.9 |
DEBT Peso-Denominated Line of C
DEBT Peso-Denominated Line of Credit (Details) - 3 months ended May. 01, 2016 MXN in Millions, $ in Millions | USD ($) | MXN | USD ($) |
Line of credit, Peso-denominated facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | MXN 279.8 | $ 16.3 | |
Line of credit facility, amount outstanding | $ 8 | ||
Short-term debt, weighted average interest rate | 5.32% | 5.32% | |
Maximum amount of borrowings outstanding during the period | $ 13.5 | ||
Line Of Credit Mexico Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | MXN 161.1 | $ 9.4 | |
Debt instrument, basis spread on variable rate | 0.90% | ||
Line of credit facility, amount outstanding | $ 8.5 | ||
Short-term debt, weighted average interest rate | 4.37% | 4.37% |
DEBT Mexico Revolving Credit Fa
DEBT Mexico Revolving Credit Facility (Details) - Line Of Credit Mexico Facility [Member] MXN in Millions, $ in Millions | 3 Months Ended | |
May. 01, 2016MXN | May. 01, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Short-term debt, weighted average interest rate | 4.37% | 4.37% |
Line of credit facility, maximum borrowing capacity | MXN 161.1 | $ 9.4 |
Debt instrument, basis spread on variable rate | 0.90% | |
Line of credit facility, amount outstanding | $ 8.5 |
DEBT Asia Revolving Credit Faci
DEBT Asia Revolving Credit Facility (Details) - Line of credit, Asia facility [Member] $ in Millions | 3 Months Ended |
May. 01, 2016USD ($) | |
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) - May. 01, 2016 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 | $ 23.8 |
DEBT Senior Secured Credit Faci
DEBT Senior Secured Credit Facilities Revolving Borrowings (Details) - 2014 Facilities [Member] $ in Millions | 3 Months Ended |
May. 01, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, amount outstanding | $ 2.4 |
Short-term debt, weighted average interest rate | 3.20% |
Maximum amount of borrowings outstanding during the period | $ 8 |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) $ in Millions | May. 19, 2016USD ($) | Mar. 21, 2014USD ($) | May. 01, 2016USD ($) | May. 03, 2015USD ($) | Jan. 31, 2016 | Aug. 18, 2014USD ($) | Aug. 03, 2014USD ($) | Aug. 19, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||
Total debt percentage bearing fixed interest rates | 65.00% | |||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Letters of credit outstanding, amount | $ 29.3 | |||||||
Repayment of 2014 facilities | $ 51.9 | $ 49.8 | ||||||
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 | |||||||
2013 Interest Rate Swap [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Notional amount outstanding of foreign currency forward exchange contracts | $ 561.8 | $ 1,228.8 | ||||||
Derivative, fixed interest rate | 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 | $ 681.7 | $ 682.6 | ||||||
Derivative, average fixed interest rate | 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 | $ 514.2 | |||||||
Derivative, cap interest rate | 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 | $ 1,758.3 | $ 1,877.5 | ||||||
2014 Facilities Term Loan B [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Increase in term loan borrowings | 250 | |||||||
Secured Debt | 571.4 | 797.7 | ||||||
Repayment of 2014 facilities | $ 582 | |||||||
2016 Facilities Term Loan A [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Increase in term loan borrowings | $ 582 | |||||||
2014 Facilities [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Paid debt issuance costs | 13.3 | |||||||
Debt modification and extinguishment costs | 8 | |||||||
Deferred debt issuance costs | (5.3) | |||||||
Write-off of deferred debt issuance costs | 3.2 | |||||||
Secured Debt | 2,329.7 | |||||||
Repayment of 2014 facilities | 51.9 | $ 49.8 | ||||||
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 | |||||||
Deferred debt issuance costs | $ (16.3) | |||||||
Senior notes due 2022 [Member] | Senior Notes [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||
Senior Debenture Due 2023 [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Debt instrument, interest rate, stated percentage | 7.75% | |||||||
Debt instrument, face amount | $ 100 | |||||||
Debt instrument, yield to maturity | 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] | 2014 Facilities [Member] | ||||||||
Senior Secured Credit Facilities [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | 25 | |||||||
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 | 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 | 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% | |||||||
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% |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) - USD ($) $ in Millions | May. 01, 2016 | Jan. 31, 2016 | May. 03, 2015 | Mar. 21, 2014 |
Debt Instrument [Line Items] | ||||
Mandatory Long Term Debt Repayment Remainder of 2015 | $ 89.5 | |||
Mandatory Long Term Debt Repayment 2016 | 186.2 | |||
Mandatory Long Term Debt Repayment 2017 | 198.6 | |||
Mandatory Long Term Debt Repayment 2018 | 1,291.1 | |||
Mandatory Long Term Debt Repayment 2019 | 582 | |||
Mandatory Long Term Debt Repayment 2020 | $ 0 | |||
Total debt percentage bearing fixed interest rates | 65.00% | |||
7 3/4% debentures | $ 99.4 | $ 99.3 | ||
Total | 3,118.3 | 3,462.1 | ||
Less: Current portion of long-term debt | 126.7 | $ 136.6 | 99.3 | |
Long-Term Debt | 2,991.6 | $ 3,031.7 | 3,362.8 | |
Senior notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 689.2 | 687.6 | ||
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% | |||
2014 Facilities Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 1,758.3 | 1,877.5 | ||
2014 Facilities Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 571.4 | $ 797.7 | ||
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) | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Income Taxes [Line Items] | ||
Effective Income Tax Rate | 12.80% | 22.40% |
DERIVATIVE FINANCIAL INSTRUME58
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May. 01, 2016 | May. 03, 2015 | May. 01, 2017 | Jan. 31, 2016 | |
Derivative [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized (loss) gain on effective hedges | $ (52.5) | $ 2.3 | ||
Other Current Assets and Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 1.3 | 75 | $ 44.2 | |
Accrued Expenses and Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 53 | 21.5 | 22.4 | |
Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Notional amount outstanding of foreign currency forward exchange contracts | 943.2 | |||
Contracts designated as cash flow hedges [Member] | Other Current Assets and Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 1 | 58.6 | 24.9 | |
Contracts designated as cash flow hedges [Member] | Accrued Expenses and Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 52.4 | 21.2 | 22.3 | |
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 | 1 | 58.1 | 24.9 | |
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 | 34 | 8.1 | 1.7 | |
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 | 0.5 | 0 | |
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 | 18.4 | 13.1 | 20.6 | |
Undesignated contracts [Member] | Other Current Assets and Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.3 | 16.4 | 19.3 | |
Undesignated contracts [Member] | Accrued Expenses and Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.3 | 0.1 | |
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 | 0.3 | 16.4 | 19.3 | |
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 | $ 0.1 | |
Cost of Goods Sold [Member] | Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (16.9) | |||
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 | $ (12.1) | |||
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 | $ (3.8) | 2.7 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized (loss) gain on effective hedges | (58.5) | 1.7 | ||
Gain (loss) reclassified from Accumulated Other Comprehensive Income into Income (Expense) | 2.3 | 19.5 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized (loss) gain on effective hedges | (58.4) | 0.6 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized (loss) gain on effective hedges | (0.1) | 1.1 | ||
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) | 4.7 | 20.6 | ||
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) | $ (2.4) | $ (1.1) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Apr. 13, 2016 | May. 01, 2016 | May. 03, 2015 | 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] | |||||||||
Cash and cash equivalents | $ 365.1 | $ 419.3 | $ 556.4 | $ 479.3 | |||||
Short-term borrowings | 41 | 10.6 | 25.9 | ||||||
Long-term debt (including portion classified as current), carrying amount | 3,118.3 | 3,462.1 | |||||||
Gain to write-up equity investment in joint venture to fair value | 153.1 | 0 | |||||||
Contingent purchase price payments | 12.8 | 11.9 | |||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Contingent purchase price payments, balance | 2.3 | 4 | 2.2 | $ 4 | |||||
Payments | 0 | 0 | |||||||
Adjustments included in earnings | $ 0.1 | 0 | |||||||
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 | $ 0.1 | ||||||||
Effect of five-percentage-point increase or decrease on annual net sales growth rate | 0.1 | ||||||||
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 | ||||||||
Tommy Hilfiger China Acquisition [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||||
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 | $ 1.8 | 2.8 | 1.9 | ||||||
Tommy Hilfiger India Joint Venture [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||
Tommy Hilfiger China Joint Venture [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 45.00% | ||||||||
Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||||
Equity Method Investments, Fair Value Disclosure | $ 205.6 | ||||||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | ||||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Foreign currency forward exchange contracts, assets | $ 1.3 | 74.5 | 44.2 | ||||||
Interest rate contracts, assets | 0 | 0.5 | 0 | ||||||
Total Assets | 1.3 | 75 | 44.2 | ||||||
Foreign currency forward exchange contracts, liabilities | 34.6 | 8.4 | 1.8 | ||||||
Interest rate contracts, liabilities | 18.4 | 13.1 | 20.6 | ||||||
Total Liabilities | 53 | 21.5 | 22.4 | ||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India | 2.3 | 4 | 2.2 | ||||||
Total Liabilities | 2.3 | 4 | 2.2 | ||||||
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents | 365.1 | 419.3 | 556.4 | ||||||
Short-term borrowings | 41 | 10.6 | 25.9 | ||||||
Long-term debt (including portion classified as current), carrying amount | 3,118.3 | 3,462.1 | 3,168.3 | ||||||
Portion at Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Foreign currency forward exchange contracts, assets | 1.3 | 74.5 | 44.2 | ||||||
Interest rate contracts, assets | 0 | 0.5 | 0 | ||||||
Total Assets | 1.3 | 75 | 44.2 | ||||||
Foreign currency forward exchange contracts, liabilities | 34.6 | 8.4 | 1.8 | ||||||
Interest rate contracts, liabilities | 18.4 | 13.1 | 20.6 | ||||||
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India | 2.3 | 4 | 2.2 | ||||||
Total Liabilities | 55.3 | 25.5 | 24.6 | ||||||
Cash and cash equivalents | 365.1 | 419.3 | 556.4 | ||||||
Short-term borrowings | 41 | 10.6 | 25.9 | ||||||
Long-term debt (including portion classified as current), fair value | $ 3,188.1 | $ 3,501.1 | $ 3,190.5 |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK OPTION ACTIVITY (Details) - USD ($) | 3 Months Ended | ||||
May. 01, 2016 | May. 03, 2015 | May. 04, 2014 | Aug. 04, 2013 | May. 05, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reduction in Number of Shares to Be Granted by Each Option Award | 1 | ||||
Stock-based compensation expense | $ 10,300,000 | $ 8,500,000 | |||
Recognized income tax benefits associated with stock based compensation expense | $ 2,800,000 | $ 2,000,000 | |||
Equity Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
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 | 1,443,000 | ||||
Service-based stock options, granted | 221,000 | ||||
Service-based stock options, exercised | 12,000 | ||||
Service-based stock options, cancelled | 0 | ||||
Service-based stock options, outstanding, end of period | 1,652,000 | ||||
Service-based stock options, exercisable | 1,199,000 | ||||
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 70.79 | ||||
Service-based stock options, granted, weighted average price per option | 99.35 | ||||
Service-based stock options, exercised, weighted average price per option | 65.95 | ||||
Service-based stock options, cancelled, weighted average price per option | 0 | ||||
Service-based stock options, outstanding, weighted average price per option, end of period | 74.65 | ||||
Service-based stock options, exercisable, weighted average price per option | $ 62.65 | ||||
Performance Shares (PSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | 3 years | 2 years | 3 years | 2 years |
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period Beyond Performance Period | 1 year | 1 year | |||
Awards Granted in 2016, Holding Period | 1 year | ||||
Black-Scholes-Merton Model [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected term | 6 years 3 months | 6 years 3 months | |||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||||
Weighted average risk-free interest rate | 1.44% | 1.54% | |||
Weighted average Company volatility | 34.67% | 36.32% | |||
Expected annual dividends per share | $ 0.15 | $ 0.15 | |||
Weighted average grant date fair value per option | $ 35.64 | $ 40.25 |
STOCK-BASED COMPENSATION - RSU,
STOCK-BASED COMPENSATION - RSU, RESTRICTED STOCK AND PERFORMANCE SHARE ACTIVITY (Details) - USD ($) | 3 Months Ended | ||||
May. 01, 2016 | May. 03, 2015 | May. 04, 2014 | Aug. 04, 2013 | May. 05, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax deduction associated with stock plan award transactions | $ 4,100,000 | $ 5,700,000 | |||
Excess tax benefits reported, stock plan awards | $ 100,000 | $ 2,000,000 | |||
Reduction in number of shares available to be granted by each stock award | 2 | ||||
Equity Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Non-vested activity [Roll Forward] | |||||
Other than options, non-vested number, beginning of period | 653,000 | ||||
Other than options, granted number | 308,000 | ||||
Other than options, vested number | 110,000 | ||||
Other than options, cancelled number | 23,000 | ||||
Other than options, non-vested number, end of period | 828,000 | ||||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 111.61 | ||||
Other than options, granted, weighted average grant date fair value | 98.26 | ||||
Other than options, vested, weighted average grant date fair value | 105.44 | ||||
Other than options, cancelled, weighted average grant date fair value | 113.34 | ||||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 107.41 | ||||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Beginning vesting term, awards granted prior to 2016 | two years after date of grant | ||||
Restricted Stock Units (RSUs) Granted in 2016 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Beginning vesting term, awards granted in 2016 | one year after date of grant | ||||
Restricted Stock Units (RSUs) Non-Employee Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
First RSU Vesting Installments, Nonemployee Directors, Number of Yrs Following Grant Date | one year after date of grant | ||||
Performance Shares (PSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | 3 years | 2 years | 3 years | 2 years |
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period Beyond Performance Period | 1 year | 1 year | |||
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% | ||||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||||
Restriction of Liquidity Discount | 12.99% | ||||
Non-vested activity [Roll Forward] | |||||
Other than options, non-vested number, beginning of period | 493,000 | ||||
Other than options, granted number | 76,000 | ||||
Other than options, vested number | 26,000 | ||||
Other than options, cancelled number | 83,000 | ||||
Other than options, non-vested number, end of period | 460,000 | ||||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 121.41 | ||||
Other than options, granted, weighted average grant date fair value | 87.16 | ||||
Other than options, vested, weighted average grant date fair value | 114.77 | ||||
Other than options, cancelled, weighted average grant date fair value | 125.09 | ||||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 115.42 | ||||
Awards Granted in 2016, Holding Period | 1 year | ||||
Monte Carlo Model [Member] | Performance Shares (PSUs) [Member] | |||||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||||
Weighted average risk-free interest rate | 1.04% | 0.90% | |||
Weighted average Company volatility | 28.33% | 29.10% | |||
Expected annual dividends per share | $ 0.15 | $ 0.15 | |||
Non-vested activity [Roll Forward] | |||||
Other than options, granted, weighted average grant date fair value | $ 87.16 | $ 101.23 | |||
First Annual Installment [Member] | Restricted Stock Units (RSUs) Granted Prior to 2016 [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) Granted Prior to 2016 [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) Granted Prior to 2016 [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 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May. 01, 2016 | May. 03, 2015 | Jan. 31, 2016 | Feb. 01, 2015 | |
Balance, foreign currency translation adjustments | $ (546.2) | $ (511.5) | $ (730.5) | $ (496.2) |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments | 184.3 | (15.3) | ||
Amounts reclassified from AOCL, foreign currency translation adjustments, net of tax | 0 | 0 | ||
Foreign currency translation adjustments, net of tax expense (benefit) | 184.3 | (15.3) | ||
Balance, retirement liability adjustment | 0 | 0.3 | 0.1 | 0.4 |
Other comprehensive income (loss) before reclassifications, pension and postretirement plans | 0 | 0 | ||
Amounts reclassified from AOCL, retirement liability adjustment | 0.1 | 0.1 | ||
Amortization of prior service credit related to pension and postretirement plans, net of tax benefit | (0.1) | (0.1) | ||
Balance, net unrealized and realized gain (loss) on effective hedges | (28.7) | 62.4 | 26.2 | 79.3 |
Other comprehensive income (loss) before reclassifications, net unrealized and realized (loss) gain on effective hedges | (52.5) | 2.3 | ||
Amounts reclassified from AOCL, net unrealized and realized (loss) gain on effective hedges | 2.4 | 19.2 | ||
Net unrealized and realized loss related to effective hedges, net of tax benefit | (54.9) | (16.9) | ||
Accumulated other comprehensive loss | (574.9) | (448.8) | $ (704.2) | $ (416.5) |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 131.8 | (13) | ||
Amounts reclassified from AOCL, total | 2.5 | 19.3 | ||
Other comprehensive income (loss) | $ 129.3 | $ (32.3) |
ACCUMULATED OTHER COMPREHENSI63
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Amounts reclassified from AOCL, realized gain (loss) on effective hedges, tax effect | $ (0.1) | $ 0.3 |
Amounts reclassified from AOCL, net unrealized and realized (loss) gain on effective hedges | 2.4 | 19.2 |
Amounts reclassified from AOCL, amortization of prior service credit | 0.1 | 0.1 |
Amounts reclassified from AOCL, amortization of prior service credit related to pension and postretirement plan, tax effect | 0 | 0 |
Amounts reclassified from AOCL, retirement liability adjustment | 0.1 | 0.1 |
Amounts reclassified from AOCL, foreign currency translation adjustments, net of tax | 0 | 0 |
Foreign Exchange Forward Inventory Purchases [Member] | ||
Amounts reclassified from AOCL, realized gain (loss) on effective hedges | 4.7 | 20.6 |
Interest Rate Contract [Member] | ||
Amounts reclassified from AOCL, realized gain (loss) on effective hedges | $ (2.4) | $ (1.1) |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 11 Months Ended | |
May. 01, 2016 | May. 01, 2016 | Jun. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 500 | ||
Stock Repurchase Program, Period in Force | 3 years | ||
Stock Repurchase Program, Number of Shares Repurchased | 0.6 | 1.9 | |
Stock Repurchase Program, Amount Purchased During Period | $ 50.5 | $ 176.7 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 323.3 | $ 323.3 |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net Income | $ 231.6 | $ 114.1 |
Weighted average common shares outstanding for basic net income per common share | 81.3 | 82.6 |
Weighted average impact of dilutive securities | 0.6 | 0.8 |
Total shares for diluted net income per common share | 81.9 | 83.4 |
Basic net income per common share | $ 2.85 | $ 1.38 |
Diluted net income per common share | $ 2.83 | $ 1.37 |
Weighted average potentially dilutive securities | 0.9 | 0.5 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | May. 01, 2016 | May. 03, 2015 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of dilutive shares that could be issued upon vesting | 0.9 | 0.9 |
NONCASH INVESTING AND FINANCI67
NONCASH INVESTING AND FINANCING ACTIVITIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May. 01, 2016 | May. 03, 2015 | Apr. 13, 2016 | |
Nonmonetary Transaction [Line Items] | |||
Contingent purchase price payments | $ 12.8 | $ 11.9 | |
Capital Lease Obligations Incurred | 2.3 | 2.5 | |
Treasury Stock, Shares Purchased Not Yet Settled | $ 2.2 | ||
Calvin Klein North America and International Business [Member] | |||
Nonmonetary Transaction [Line Items] | |||
Contingent purchase price payment terms | 45 days | ||
Liabilities incurred related to contingent purchase price payments | $ 12.3 | 11.7 | |
Contingent purchase price payments | $ 12.8 | $ 11.9 | |
Tommy Hilfiger China Acquisition [Member] | |||
Nonmonetary Transaction [Line Items] | |||
Pre-Acquisition Accounts Receivable | $ 2.8 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) $ in Millions | Apr. 13, 2016USD ($) | May. 01, 2016USD ($)segment | May. 03, 2015USD ($) | May. 04, 2014 | |||
Segment Reporting Information [Line Items] | |||||||
Segment Reporting, Number of Reportable Segments | segment | 6 | ||||||
Net sales | $ 1,817.7 | $ 1,785.1 | |||||
Royalty revenue | 77.1 | 74.2 | |||||
Advertising and other revenue | 23 | 20 | |||||
Total revenue | 1,917.8 | 1,879.3 | |||||
Income before interest and taxes | [1] | 294.6 | 176.8 | ||||
Costs Related to Global Creative Strategy for CK | 5.5 | ||||||
Gain to write-up equity investment in joint venture to fair value | 153.1 | 0 | |||||
Equity in net (loss) income of unconsolidated affiliates | (0.2) | 6.1 | |||||
Calvin Klein North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 338.8 | 299.3 | |||||
Royalty revenue | 30.3 | 29.7 | |||||
Advertising and other revenue | 11.5 | 9.8 | |||||
Total revenue | 380.6 | 338.8 | |||||
Income before interest and taxes | [1] | 38.1 | [2],[3] | 40.4 | [4] | ||
Costs Related to Global Creative Strategy for CK | 2.7 | ||||||
Calvin Klein International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 316.3 | 291.6 | |||||
Royalty revenue | 18.6 | 17.7 | |||||
Advertising and other revenue | 7.2 | 5.8 | |||||
Total revenue | 342.1 | 315.1 | |||||
Income before interest and taxes | [1] | 52.2 | [2],[3] | 49.3 | [4] | ||
Costs Related to Global Creative Strategy for CK | 2.8 | ||||||
Tommy Hilfiger North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 321.1 | 341.5 | |||||
Royalty revenue | 11 | 9.6 | |||||
Advertising and other revenue | 2.5 | 2.8 | |||||
Total revenue | 334.6 | 353.9 | |||||
Income before interest and taxes | [1] | 23 | [5] | 30.3 | |||
Costs Incurred In Connection with Licensing Arrangement | 1.3 | ||||||
Tommy Hilfiger International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 444.6 | 400.2 | |||||
Royalty revenue | 11.6 | 12.1 | |||||
Advertising and other revenue | 1 | 0.9 | |||||
Total revenue | 457.2 | 413.2 | |||||
Income before interest and taxes | [1] | 183.3 | [6] | 61.8 | |||
Heritage Brands Wholesale [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 339.2 | 367.5 | |||||
Royalty revenue | 5 | 4.6 | |||||
Advertising and other revenue | 0.7 | 0.6 | |||||
Total revenue | 344.9 | 372.7 | |||||
Income before interest and taxes | [1] | 27.9 | [2],[7] | 30.3 | [4] | ||
Business Exit Costs | 2.6 | ||||||
Heritage Brands Retail [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 57.7 | 85 | |||||
Royalty revenue | 0.6 | 0.5 | |||||
Advertising and other revenue | 0.1 | 0.1 | |||||
Total revenue | 58.4 | 85.6 | |||||
Income before interest and taxes | [1] | 2.1 | (0.1) | [8] | |||
Corporate Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Income before interest and taxes | [1] | (32) | [2] | (35.2) | [4] | ||
Exit of Izod Retail Business [Member] | Heritage Brands Retail [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Exit Costs | 0.5 | ||||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Combination, Integration Related Costs | 7.5 | 18.8 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Combination, Integration Related Costs | 0.2 | 2.1 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein International [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Combination, Integration Related Costs | 2.6 | 3.9 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Heritage Brands Wholesale [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Combination, Integration Related Costs | 0.4 | 3.6 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Corporate Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Combination, Integration Related Costs | $ 4.3 | $ 9.2 | |||||
Tommy Hilfiger China Acquisition [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||
Business Combination, Acquisition Related Costs | $ 24.2 | ||||||
Tommy Hilfiger China Joint Venture [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 45.00% | ||||||
Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||
Business Combination, Cost Related to Equity Investment | $ 5.9 | ||||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | ||||||
Karl Lagerfeld Joint Venture [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 8.00% | 10.00% | |||||
[1] | Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 and May 3, 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 weeks ended May 1, 2016 includes costs of $7.5 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $0.2 million in Calvin Klein North America; $2.6 million in Calvin Klein International; $0.4 million in Heritage Brands Wholesale; and $4.3 million in corporate expenses not allocated to any reportable segments. | ||||||
[3] | Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $5.5 million in connection with the restructuring related to the new global creative strategy for Calvin Klein announced in April 2016. Such costs were included in the Company’s segments as follows: $2.7 million in Calvin Klein North America; and $2.8 million in Calvin Klein International. | ||||||
[4] | Income (loss) before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $18.8 million associated with the Company’s integration of Warnaco and the related restructuring. Such costs were included in the Company’s segments as follows: $2.1 million in Calvin Klein North America; $3.9 million in Calvin Klein International; $3.6 million in Heritage Brands Wholesale; and $9.2 million in corporate expenses not allocated to any reportable segments. | ||||||
[5] | Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $1.3 million in connection with the licensing to G-III Apparel Group, Ltd. (“G-III”) of the Tommy Hilfiger womenswear wholesale business in the United States and Canada. | ||||||
[6] | Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes a noncash gain of $153.1 million to write-up the Company’s equity investment in TH China to fair value in connection with the acquisition of the 55% interest in TH China that it did not already own. Partially offsetting the gain are acquisition related costs of $24.2 million, principally related to valuation adjustments and amortization of short-lived assets, and a one-time cost of $5.9 million recorded on the Company’s equity investment in TH China. Please see Note 3, “Acquisitions,” for a further discussion. | ||||||
[7] | Income before interest and taxes for the thirteen weeks ended May 1, 2016 includes costs of $2.6 million related to the discontinuation of several licensed product lines in the Company’s Heritage Brands dress furnishings business. | ||||||
[8] | Loss before interest and taxes for the thirteen weeks ended May 3, 2015 includes costs of $0.5 million related to the operation of and exit from the Company’s Izod retail business. |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | May. 01, 2016 | Jan. 31, 2016 | May. 03, 2015 |
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3.5 | ||
Guarantee Obligations Recourse | 2.2 | ||
Sale Of Bass [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 36.8 | ||
Guarantees, Fair Value Disclosure | 1.8 | $ 1.9 | $ 2.8 |
PVH Australia and CK India [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 8 |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | May. 03, 2015 | Jan. 31, 2016 |
Presentation of Deferred Income Taxes [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in other current assets | $ 104.3 | |
Decrease in accrued expenses | 0.7 | |
Decrease in other liabilities | 95.1 | |
Increase (decrease) in other assets | 8.5 | |
Presentation of debt issuance costs [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in other current assets | 8.1 | $ 8.1 |
Increase (decrease) in other assets | $ (18.8) | $ (14.5) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | May. 19, 2016 | May. 01, 2016 | May. 03, 2015 | Mar. 21, 2014 |
Subsequent Event [Line Items] | ||||
Repayment of 2014 facilities | $ 51.9 | $ 49.8 | ||
2016 Facilities Term Loan A [Member] | ||||
Subsequent Event [Line Items] | ||||
Increase in term loan borrowings | $ 582 | |||
2014 Facilities Term Loan B [Member] | ||||
Subsequent Event [Line Items] | ||||
Increase in term loan borrowings | $ 250 | |||
Repayment of 2014 facilities | $ 582 |