Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Apr. 30, 2017 | May 30, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PVH CORP. /DE/ | |
Entity Central Index Key | 78,239 | |
Current Fiscal Year End Date | --02-04 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 77,845,986 | |
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 | ||
Apr. 30, 2017 | May 01, 2016 | ||
Income Statement [Abstract] | |||
Net sales | [1] | $ 1,875 | $ 1,817.7 |
Royalty revenue | [1] | 87.3 | 77.1 |
Advertising and other revenue | [1] | 26.7 | 23 |
Total revenue | [1] | 1,989 | 1,917.8 |
Cost of goods sold (exclusive of depreciation and amortization) | 908.2 | 910.9 | |
Gross profit | 1,080.8 | 1,006.9 | |
Selling, general and administrative expenses | 968 | 865.2 | |
Gain to write-up equity investment in joint venture to fair value | 0 | 153.1 | |
Equity in net income (loss) of unconsolidated affiliates | 0.4 | (0.2) | |
Income before interest and taxes | 113.2 | 294.6 | |
Interest expense | 30.4 | 29.9 | |
Interest income | 1.7 | 0.9 | |
Income before taxes | 84.5 | 265.6 | |
Income tax expense | 14.4 | 34 | |
Net Income | 70.1 | 231.6 | |
Less: Net loss attributable to redeemable non-controlling interest | (0.3) | 0 | |
Net income attributable to PVH Corp. | $ 70.4 | $ 231.6 | |
Basic net income per common share attributable to PVH Corp. | $ 0.90 | $ 2.85 | |
Diluted net income per common share attributable to PVH Corp. | 0.89 | 2.83 | |
Dividends declared per common share | $ 0.0750 | $ 0.0750 | |
[1] | Revenue was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Net income | $ 70.1 | $ 231.6 |
Foreign currency translation adjustments | 76.3 | 184.2 |
Net unrealized and realized loss related to effective cash flow hedges, net of tax | (11.6) | (54.9) |
Net loss on net investment hedge, net of tax | (5.3) | 0 |
Total other comprehensive income | 59.4 | 129.3 |
Comprehensive income | 129.5 | 360.9 |
Less: Comprehensive loss attributable to redeemable non-controlling interest | (0.3) | 0 |
Comprehensive income attributable to PVH Corp. | $ 129.8 | $ 360.9 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Net unrealized and realized loss related to effective hedges, tax expense (benefit) | $ 2.5 | $ (5.9) |
Net loss on net investment hedge, tax benefit | $ 3.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2017 | Jan. 29, 2017 | May 01, 2016 |
Current Assets: | |||
Cash and cash equivalents | $ 490.9 | $ 730.1 | $ 365.1 |
Trade receivables, net of allowances for doubtful accounts of $17.7, $15.0 and $21.1 | 688.1 | 616 | 661.5 |
Other receivables | 24.4 | 25.4 | 22.8 |
Inventories, net | 1,253.8 | 1,317.9 | 1,281.4 |
Prepaid expenses | 150.1 | 133.2 | 154.5 |
Other | 47.9 | 57 | 42.9 |
Total Current Assets | 2,655.2 | 2,879.6 | 2,528.2 |
Property, Plant and Equipment, net | 751.6 | 759.9 | 749.9 |
Goodwill | 3,545.4 | 3,469.9 | 3,572.3 |
Tradenames | 2,803.4 | 2,783.4 | 2,841.2 |
Other Intangibles, net | 814.6 | 826.6 | 967.5 |
Other Assets, including deferred taxes of $17.2, $17.4 and $17.1 | 342.1 | 348.5 | 226 |
Total Assets | 10,912.3 | 11,067.9 | 10,885.1 |
Current Liabilities: | |||
Accounts payable | 546.7 | 682.6 | 497.7 |
Accrued expenses | 760.8 | 832.4 | 706.2 |
Deferred revenue | 28.2 | 30.7 | 23.3 |
Short-term borrowings | 42.5 | 19.1 | 41 |
Current portion of long-term debt | 0 | 0 | 126.7 |
Total Current Liabilities | 1,378.2 | 1,564.8 | 1,394.9 |
Long-Term Debt | 3,157.1 | 3,197.3 | 2,991.6 |
Other Liabilities, including deferred taxes of $846.8, $877.7 and $880.1 | 1,498.6 | 1,499.3 | 1,636.3 |
Redeemable Non-Controlling Interest | 3.4 | 2 | 0 |
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; 84,070,992; 83,923,184 and 83,665,468 shares issued | 84.1 | 83.9 | 83.6 |
Additional paid in capital - common stock | 2,878 | 2,866.2 | 2,832.9 |
Retained earnings | 3,161.7 | 3,098 | 2,786.6 |
Accumulated other comprehensive loss | (651.4) | (710.8) | (574.9) |
Less: 6,052,199; 5,371,660 and 2,680,402 shares of common stock held in treasury, at cost | (597.4) | (532.8) | (265.9) |
Total Stockholders' Equity | 4,875 | 4,804.5 | 4,862.3 |
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity | $ 10,912.3 | $ 11,067.9 | $ 10,885.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 30, 2017 | Jan. 29, 2017 | May 01, 2016 |
Current Assets: | |||
Allowance for doubtful accounts | $ 17.7 | $ 15 | $ 21.1 |
Other Assets: | |||
Other assets, deferred taxes | 17.2 | 17.4 | 17.1 |
Liabilities: | |||
Other liabilities, deferred taxes | $ 846.8 | $ 877.7 | $ 880.1 |
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) | 84,070,992 | 83,923,184 | 83,665,468 |
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) | 6,052,199 | 5,371,660 | 2,680,402 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | ||
OPERATING ACTIVITIES | |||
Net Income | $ 70.1 | $ 231.6 | |
Adjustments to reconcile to net cash (used) provided by operating activities: | |||
Depreciation and amortization | 77.2 | 70.6 | |
Equity in net (income) loss of unconsolidated affiliates | (0.4) | 0.2 | |
Deferred taxes | (34.2) | 0.5 | |
Stock-based compensation expense | 8.7 | 10.3 | |
Settlement loss on retirement plans | 9.4 | 0 | |
Gain to write-up equity investment in joint venture to fair value | 0 | (153.1) | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (67.7) | 12.7 | |
Inventories, net | 72.6 | 90.1 | |
Accounts payable, accrued expenses and deferred revenue | (197.9) | (174) | |
Prepaid expenses | (15.7) | 2.6 | |
Other, net | 33 | 17.8 | |
Net cash (used) provided by operating activities | (44.9) | 109.3 | |
INVESTING ACTIVITIES(1) | |||
Business acquisitions, net of cash acquired | (28.1) | (158) | |
Purchase of property, plant and equipment | (68.4) | (45.9) | |
Contingent purchase price payments | (12.5) | (12.8) | |
Investments in unconsolidated affiliates | (1.2) | (1.5) | |
Payment received on advance to unconsolidated affiliate | 6.3 | 0 | |
Net cash used by investing activities | [1] | (103.9) | (218.2) |
FINANCING ACTIVITIES(1) | |||
Net proceeds from short-term borrowings | 23.4 | 15.1 | |
Repayment of 2016/2014 facilities | (50) | (51.9) | |
Net proceeds from settlement of awards under stock plans | 2.3 | 0.8 | |
Cash dividends | (5.9) | (6.2) | |
Acquisition of treasury shares | (64.6) | (53) | |
Payments of capital lease obligations | (1.2) | (2) | |
Contributions from non-controlling interest | 1.7 | 0 | |
Net cash used by financing activities | [1] | (94.3) | (97.2) |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | 14.8 | |
Decrease in cash and cash equivalents | (239.2) | (191.3) | |
Cash and cash equivalents at beginning of period | 730.1 | 556.4 | |
Cash and cash equivalents at end of period | $ 490.9 | $ 365.1 | |
[1] | See Note 17 for information on Noncash Investing and Financing Transactions. |
GENERAL
GENERAL | 3 Months Ended |
Apr. 30, 2017 | |
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 , Olga and, as of March 30, 2017, True&Co., which are owned, and Speedo , which is licensed, as well as various other owned, licensed and private label brands. The Company designs and markets branded dress shirts, neckwear, sportswear, jeanswear, performance apparel, intimate apparel, underwear, swim products, handbags, accessories, 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 and common law 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 6 , “ Investments in Unconsolidated Affiliates ,” for a further discussion. During the second quarter of 2016, the Company and Arvind Limited (“Arvind”) formed a joint venture in Ethiopia, PVH Arvind Manufacturing Private Limited Company (“PVH Ethiopia”), in which the Company owns a 75% interest. PVH Ethiopia is consolidated and the minority shareholder’s proportionate share ( 25% ) of the equity in this joint venture is accounted for as a redeemable non-controlling interest. Please see Note 5 , “Redeemable Non-Controlling Interest,” for a further discussion. The Company’s fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 of each calendar year and are designated by the calendar year in which the fiscal year commences. References to a year are to the Company’s fiscal year, unless the context requires otherwise. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not contain all disclosures required by accounting principles generally accepted in the United States for complete financial statements. Reference is made to the Company’s audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended January 29, 2017 . 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 April 30, 2017 and May 1, 2016 are not necessarily indicative of those for a full fiscal year due, in part, to seasonal factors. The data contained in these consolidated financial statements are unaudited and are subject to year-end adjustments. However, in the opinion of management, all known adjustments (which consist 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, which are subject to exchange rate fluctuations, totaled $ 60.8 million and $ 58.3 million in the thirteen weeks ended April 30, 2017 and May 1, 2016 , respectively, excluding costs related to the consolidation of the Company’s warehouse and distribution network in North America incurred in the thirteen weeks ended April 30, 2017 . 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 |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
INVENTORIES | INVENTORIES Inventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value. 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 net realizable value. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Apr. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of True & Co. The Company acquired on March 30, 2017 True & Co., a direct-to-consumer intimate apparel digital commerce retailer. This acquisition enables the Company to participate further in the fast-growing online channel and provides a platform to increase innovation, data-driven decisions and speed in the way it serves its consumers across its channels of distribution. The acquisition date fair value of the consideration paid was $ 28.5 million. The estimated fair value of assets acquired and liabilities assumed included net assets of $ 0.8 million (including $ 0.4 million of cash acquired) and $ 27.7 million of goodwill. The goodwill of $ 27.7 million was assigned as of the acquisition date to the Company’s Calvin Klein North America, Calvin Klein International and Heritage Brands Wholesale segments in the amounts of $ 7.2 million, $ 6.3 million and $ 14.2 million, respectively, which are the Company’s reporting units that are expected to benefit from the synergies of the combination. For those reporting units that had not been assigned any of the assets acquired or liabilities assumed in the acquisition, the amount of goodwill assigned was determined by calculating the estimated fair value of such reporting units before the acquisition and their estimated fair values after the acquisition. Goodwill is not expected to be deductible for tax purposes. 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. Acquisition of TH China The Company acquired on April 13, 2016 the 55% of the ownership interests in TH Asia, Ltd. (“TH China”), its former joint venture for Tommy Hilfiger in China, that it did not already own (the “TH China acquisition”). Prior to April 13, 2016, the Company accounted for its 45% interest in TH China under the equity method of accounting. Since the completion of the TH China acquisition, the results of TH China’s operations have been 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 held a license from a subsidiary of the Company for the Tommy Hilfiger trademarks for use in connection with these businesses. The carrying value of the Company’s 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 using future operating cash flow projections that were discounted at a rate of 14.4% , which accounted for the relative risks of the estimated future cash flows. Such fair value also included an estimated discount for a lack of marketability of 10.0% . The Company classified this as a Level 3 fair value measurement due to the use of these significant unobservable inputs. The acquisition date fair value of the consideration for the 55% interest that the Company did not already own was $ 265.8 million, consisting of $ 263.0 million paid in cash and the elimination of a $ 2.8 million pre-acquisition receivable owed to the Company by TH China. Together with the fair value of the Company’s 45% interest, the total fair value of TH China was $ 471.4 million. The estimated fair value of assets acquired and liabilities assumed included net assets of $ 102.2 million (including $ 105.3 million of cash acquired), $ 110.6 million of other intangible assets and $ 258.6 million of goodwill. The goodwill of $ 258.6 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 $ 110.6 million included reacquired license rights of $ 72.0 million, order backlog of $ 26.2 million and customer relationships of $ 12.4 million. The Company finalized the purchase price allocation during the fourth quarter of 2016. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Apr. 30, 2017 | |
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 a building in Amsterdam, the Netherlands. The Company classified the building as held for sale in the fourth quarter of 2015 and ceased recording depreciation on the building at that time. The building had a carrying value of $ 15.3 million as of May 1, 2016 , which was determined to be lower than the fair value, less costs to sell, and was included in other current assets in the Calvin Klein International segment. The Company completed the sale of the building in the second quarter of 2016. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 3 Months Ended |
Apr. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES Karl Lagerfeld The Company owns an economic interest of approximately 8% in the parent company of the Karl Lagerfeld brand (“Karl Lagerfeld”). The Company has significant influence with respect to this investment, which is being accounted for under the equity method of accounting. PVH Australia The Company owns a 50% economic interest in a joint venture, PVH Brands Australia Pty. Limited (“PVH Australia”). PVH Australia licenses from subsidiaries of the Company the rights to distribute and sell certain CALVIN KLEIN , Tommy Hilfiger and Van Heusen brand products in Australia, New Zealand and, in the cases of CALVIN KLEIN and Tommy Hilfiger , other island nations in the South Pacific. Additionally, subsidiaries of PVH Australia license other trademarks for certain product categories. This investment is being accounted for under the equity method of accounting. The Company received a $ 1.5 million dividend from PVH Australia during the first quarter of 2017 . Gazal The Company acquired approximately 10% of the outstanding capital stock of Gazal Corporation Limited (“Gazal”), which is listed on the Australian Securities Exchange, during the third quarter of 2016 for approximately $ 9.2 million. The Company has significant influence with respect to this investment, which is being accounted for under the equity method of accounting. Gazal is also the Company’s joint venture partner in PVH Australia. CK India The Company owns a 51% economic interest in a joint venture, Calvin Klein Arvind Fashion Private Limited (“CK India”). CK India licenses from a subsidiary of the Company the rights to the CALVIN KLEIN trademarks in India for certain product categories. The Company is not deemed to hold a controlling interest in the joint venture. This investment is being accounted for under the equity method of accounting. TH Brazil The Company owns a 40% economic interest in a joint venture, Tommy Hilfiger do Brasil S.A. (“TH Brazil”). 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 first quarter of 2016 to contribute its 40% share of the joint venture funding for the period. The Company issued a note receivable due April 2, 2017 to TH Brazil during the third quarter of 2016 for $ 12.5 million, of which $ 6.2 million was repaid in the fourth quarter of 2016 and the remaining balance, including accrued interest, was repaid in the first quarter of 2017. TH India The Company owns a 50% economic interest in a joint venture, Tommy Hilfiger Arvind Fashion Private Limited (“TH India”). TH India licenses from a subsidiary of the Company 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 PVH Ethiopia and in CK India, is also the Company’s joint venture partner in TH India. The Company made a payment of $ 1.2 million to TH India during the first quarter of 2017 to contribute its 50% share of the joint venture funding for the period. PVH Mexico The Company and Grupo Axo, S.A.P.I. de C.V. (“Grupo Axo”) formed a joint venture (“PVH Mexico”) in the fourth quarter of 2016, in which the Company owns a 49% economic interest. PVH Mexico licenses from certain wholly owned subsidiaries of the Company the rights to distribute and sell certain CALVIN KLEIN , Tommy Hilfiger , Warner’s , Olga and Speedo brand products in Mexico. PVH Mexico was formed by merging the Company’s wholly owned subsidiary that principally operated and managed the Calvin Klein business in Mexico (the “Mexico business”) with a wholly owned subsidiary of Grupo Axo that distributes certain Tommy Hilfiger brand products in Mexico. In connection with the formation of PVH Mexico, the Company deconsolidated the Mexico business and began accounting for its 49% interest under the equity method of accounting in the fourth quarter of 2016. Total Investments in Unconsolidated Affiliates Included in other assets in the Company’s Consolidated Balance Sheets as of April 30, 2017 , January 29, 2017 and May 1, 2016 was $ 182.0 million, $ 180.0 million (of which $ 7.0 million was related to the note receivable, including accrued interest, due from TH Brazil) and $ 95.9 million, respectively, related to these investments in unconsolidated affiliates. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 3 Months Ended |
Apr. 30, 2017 | |
Redeemable Non-Controlling Interest [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | REDEEMABLE NON-CONTROLLING INTEREST During the second quarter of 2016, the Company and Arvind formed PVH Ethiopia, in which the Company owns a 75 % interest. The Company has consolidated the joint venture in its consolidated financial statements. PVH Ethiopia was formed to operate a manufacturing facility that produces finished products for the Company for distribution primarily in the United States. The manufacturing facility began operations in the first half of 2017. The shareholders agreement governing the joint venture (the “Shareholders Agreement”) contains a put option under which Arvind can require the Company to purchase all of its shares in the joint venture during various future periods as specified in the Shareholders Agreement. The first such period immediately precedes the ninth anniversary of the date of incorporation of PVH Ethiopia. The Shareholders Agreement also contains call options under which the Company can require Arvind to sell to the Company (i) all or a portion of its shares during various future periods as specified in the Shareholders Agreement; (ii) all of its shares in the event of a change of control of Arvind; or (iii) all of its shares in the event that Arvind ceases to hold at least ten percent of the outstanding shares. The Company’s first call option referred to in clause (i) immediately follows the fifth anniversary of the date of incorporation of PVH Ethiopia. The put and call prices are the fair market value of the shares on the redemption date based upon a multiple of the joint venture’s earnings before interest, taxes, depreciation and amortization for the prior 12 months, less the joint venture’s net debt. The fair value of the redeemable non-controlling interest (“RNCI”) as of the date of formation of the joint venture was $ 0.1 million. The carrying amount of the RNCI is adjusted to equal the redemption amount at the end of each reporting period, provided that this amount at the end of each reporting period cannot be lower than the initial fair value adjusted for the minority shareholder’s share of net income or loss. Any adjustment to the redemption amount of the RNCI is determined after attribution of net income of the RNCI and will be recognized immediately in retained earnings of the Company, since it is probable that the RNCI will become redeemable in the future based on the passage of time. The carrying amount of the RNCI, which is also its fair value, increased to $ 3.4 million as of April 30, 2017 from $ 2.0 million as of January 29, 2017 , principally attributable to additional contributions of $ 1.7 million made by Arvind during the first quarter of 2017 for its proportionate share of the joint venture funding. |
GOODWILL
GOODWILL | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the thirteen weeks ended April 30, 2017 , by segment (please see Note 18 , “ Segment Data ,” for a further discussion of the Company’s reportable segments), 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 29, 2017 Goodwill, gross $ 739.4 $ 864.5 $ 204.4 $ 1,425.8 $ 235.8 $ 11.9 $ 3,481.8 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 739.4 864.5 204.4 1,425.8 235.8 — 3,469.9 Contingent purchase price payments to Mr. Calvin Klein 7.8 5.4 — — — — 13.2 True & Co. acquisition 7.2 6.3 — — 14.2 — 27.7 Currency translation and other (0.7 ) 6.9 — 28.4 — — 34.6 Balance as of April 30, 2017 Goodwill, gross 753.7 883.1 204.4 1,454.2 250.0 11.9 3,557.3 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 753.7 $ 883.1 $ 204.4 $ 1,454.2 $ 250.0 $ — $ 3,545.4 The goodwill acquired in the True & Co. acquisition was assigned as of the acquisition date to the Company’s reporting units that are expected to benefit from the synergies of the combination. For those reporting units that had not been assigned any of the assets acquired or liabilities assumed in the acquisition, the amount of goodwill assigned was determined by calculating the estimated fair value of such reporting units before the acquisition and their estimated fair values after the acquisition. The Company is required to make contingent purchase price payments to Mr. Calvin Klein in connection with the Company’s acquisition 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 |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company has five qualified defined benefit pension plans as of April 30, 2017 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. As a result of the Company’s acquisition of The Warnaco Group, Inc. (“Warnaco”), the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of this plan, which is unfunded. Both of the Company’s postretirement health care and life insurance benefit plans are frozen. 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 Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 4/30/17 5/1/16 4/30/17 5/1/16 Service cost, including plan expenses $ 6.9 $ 6.5 $ 1.2 $ 1.3 Interest cost 6.4 7.5 1.0 1.0 Expected return on plan assets (9.7 ) (9.0 ) — — Loss on settlement 9.4 — — — Total $ 13.0 $ 5.0 $ 2.2 $ 2.3 Net benefit cost related to the Company’s Postretirement Plans was immaterial for the thirteen weeks ended April 30, 2017 and May 1, 2016 . Currently, the Company does not expect to make any material contributions to the Pension Plans in 2017. 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. During the first quarter of 2017, the Company completed the purchase of a group annuity using assets from the Pension Plans. Under the group annuity, the accrued pension obligations for approximately 4,000 select retiree participants who have deferred vested benefits under the Pension Plans were transferred to an insurer. As a result, the Company recognized a loss of $ 9.4 million, which was recorded in selling, general and administrative expenses in the Company’s Consolidated Income Statement for the thirteen weeks ended April 30, 2017 . The amount of the pension benefit obligation settled was $ 65.3 million. |
DEBT
DEBT | 3 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings The Company has the ability to draw revolving borrowings under its senior secured credit facilities, as discussed in the section entitled “2016 Senior Secured Credit Facilities” below. As of April 30, 2017 , the Company had $ 20.8 million of borrowings outstanding under these facilities. The weighted average interest rate on the funds borrowed as of April 30, 2017 was 4.39 %. The maximum amount of revolving borrowings outstanding under these facilities during the thirteen weeks ended April 30, 2017 was $ 33.6 million. Additionally, the Company has the availability to borrow under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies. These facilities provided for borrowings of up to $ 92.4 million based on exchange rates in effect on April 30, 2017 and are utilized primarily to fund working capital needs. As of April 30, 2017 , the Company had $ 21.7 million outstanding under these facilities. The weighted average interest rate on the funds borrowed as of April 30, 2017 was approximately 2.50 %. The maximum amount of borrowings outstanding under these facilities during the thirteen weeks ended April 30, 2017 was $ 23.5 million. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 4/30/17 1/29/17 5/1/16 Senior secured Term Loan A facility due 2021 $ 1,990.5 $ 2,039.9 $ 1,758.3 Senior secured Term Loan B facility — — 571.4 4 1/2% senior unsecured notes due 2022 690.8 690.4 689.2 7 3/4% debentures due 2023 99.5 99.5 99.4 3 5/8% senior unsecured euro notes due 2024 376.3 367.5 — Total 3,157.1 3,197.3 3,118.3 Less: Current portion of long-term debt — — 126.7 Long-term debt $ 3,157.1 $ 3,197.3 $ 2,991.6 Please see Note 12 , “ Fair Value Measurements ,” for the fair value of the Company’s long-term debt as of April 30, 2017 , January 29, 2017 and May 1, 2016 . As of April 30, 2017 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount Remainder of 2017 $ — 2018 18.7 2019 220.1 2020 234.7 2021 1,525.8 2022 700.0 Total debt repayments for the next five years exceed the carrying amount of the Company’s Term Loan A facility and 4 1/2% senior unsecured notes due 2022 as of April 30, 2017 because the carrying amounts reflect the unamortized portions of debt issuance costs and the original issue discounts. As of April 30, 2017 , after taking into account the effect of the Company’s interest rate swap agreement discussed in the section below entitled “2016 Senior Secured Credit Facilities,” which was 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 Company entered into an amendment to its senior secured credit facilities (as amended, the “2014 facilities”). The 2014 facilities consisted of a $ 1,986.3 million United States dollar-denominated Term Loan A facility, a $ 1,188.6 million United States dollar-denominated Term Loan B facility 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, British pound sterling, Japanese yen or Swiss francs. On May 19, 2016, the Company amended the 2014 facilities, as discussed in the following section. 2016 Senior Secured Credit Facilities On May 19, 2016 (the “Amendment Date”), the Company entered into an amendment (the “Amendment”) to the 2014 facilities (as amended by the Amendment, the “2016 facilities”). Among other things, the Amendment provided for (i) the Company to borrow an additional $ 582.0 million principal amount of loans under the Term Loan A facility, (ii) the repayment of all outstanding loans under the Term Loan B facility with the proceeds of the additional loans under the Term Loan A facility, and (iii) the termination of the Term Loan B facility. In addition, the Amendment extended the maturity of the Term Loan A and the revolving credit facilities from February 13, 2019 to May 19, 2021. The 2016 facilities consist of a $ 2,347.4 million United States dollar-denominated Term Loan A facility and the 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, British pound sterling, Japanese yen or Swiss francs. In connection with entering into the Amendment, the Company paid debt issuance costs of $ 10.9 million (of which $ 4.6 million was expensed as debt modification costs and $ 6.3 million is being amortized over the term of the related debt agreement) and recorded debt extinguishment costs of $ 11.2 million to write-off previously capitalized debt issuance costs. The revolving credit facilities also include amounts available for letters of credit. As of April 30, 2017 , the Company had $ 20.8 million of outstanding revolving credit borrowings and $ 22.6 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 loans under the Term Loan A 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 2016 facilities) would not exceed 3 to 1 after giving pro forma effect to the incurrence of such increase. The lenders under the 2016 facilities are not required to provide commitments with respect to such additional facilities or increased commitments. The terms of the Term Loan A facility require the Company to make quarterly repayments of amounts outstanding under the 2016 facilities, which commenced with the calendar quarter ended June 30, 2016. Such amounts equal 5.00% per annum of the principal amount outstanding on the Amendment Date for the first eight calendar quarters following the Amendment Date, 7.50% per annum of the principal amount for the four calendar quarters thereafter and 10.00% per annum of the principal amount for the remaining calendar quarters, in each case paid in equal installments and in each case subject to certain customary adjustments, with the balance due on the maturity date of the Term Loan A facility. The Company made payments of $ 50.0 million and $ 51.9 million during the thirteen weeks ended April 30, 2017 and May 1, 2016 , respectively, on its term loans under the 2016 and 2014 facilities. As a result of the voluntary repayments made by the Company, as of April 30, 2017 , the Company is not required to make a long-term debt repayment until December 2018. The Company’s obligations under the 2016 facilities are guaranteed by substantially all of its existing and future direct and indirect United States subsidiaries, with certain exceptions. Obligations of the European borrower under the 2016 facilities are guaranteed by the Company, substantially all of the Company’s existing and future direct and indirect United States subsidiaries (with certain exceptions) and Tommy Hilfiger Europe B.V., one of the Company’s wholly owned subsidiaries. The Company and its United States subsidiary guarantors have pledged certain of their assets as security for the obligations under the 2016 facilities. The outstanding borrowings under the 2016 facilities are prepayable at any time without penalty (other than customary breakage costs). The terms of the 2016 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 its net leverage ratio during the relevant fiscal period. The United States dollar-denominated borrowings under the 2016 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% or (b) an adjusted Eurocurrency rate, calculated in a manner set forth in the 2016 facilities. The Canadian dollar-denominated borrowings under the 2016 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 2016 facilities. The borrowings under the 2016 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 2016 facilities. 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. 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 and the revolving credit facilities is subject to adjustment based upon the Company’s net leverage ratio. The 2016 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 the Company’s assets and those of certain of the Company’s subsidiaries, as security for the obligations under the 2016 facilities; and a change in control (as defined in the 2016 facilities). 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, including the 2016 facilities, to fixed rate debt. Such agreement remains outstanding with a notional amount of $ 849.4 million as of April 30, 2017 , and is now converting a portion of the Company’s variable rate debt obligation under the 2016 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 to fixed rate debt and applied to debt incurred under its then outstanding facilities and, subsequently, to the 2014 facilities and the 2016 facilities. Under the terms of the agreement for the then-outstanding notional amount, the Company’s exposure to fluctuations in the one-month LIBOR was eliminated and the Company paid a fixed rate of 0.604% , plus the current applicable margin. The agreement expired on August 17, 2016. The notional amount of any outstanding interest rate swap will be adjusted according to a pre-set schedule during the term of the applicable 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 2016 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 its 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 2016 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 its other debt. If the Company were 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 The Company has outstanding $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 that 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. 3 5/8% Euro Senior Notes Due 2024 On June 20, 2016, the Company issued € 350.0 million euro-denominated principal amount of 3 5/8% senior notes due July 15, 2024. Interest on the notes is payable in euros. The Company paid € 6.4 million (approximately $ 7.3 million based on exchange rates in effect on the payment date) of fees during the second quarter of 2016 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 April 15, 2024 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 April 15, 2024 at their principal amount plus any accrued and unpaid interest. 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 7 , “ Goodwill .” |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rates for the thirteen weeks ended April 30, 2017 and May 1, 2016 were 17.0 % and 12.8% , respectively. The effective income tax rate for the thirteen weeks ended April 30, 2017 was lower than the United States statutory rate due to the benefit of overall lower tax rates in certain international jurisdictions where the Company files tax returns. 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 overall lower tax rates in certain 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 equity investment in TH China to fair value prior to the acquisition closing. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows associated with certain international inventory purchases. 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 term loans under the 2016 facilities. The Company has entered into interest rate swap agreements to hedge against a portion of this exposure. Please see Note 9 , “ Debt ,” for a further discussion of the Company’s 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 April 30, 2017 and May 1, 2016 . Net Investment Hedge The Company has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, during the second quarter of 2016, the Company designated the carrying amount of its € 350.0 million euro-denominated principal amount of 3 5/8% senior notes due 2024 (the “foreign currency borrowings”) that it had issued in the United States as a net investment hedge of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. Please see Note 9 , “ Debt ,” for a further discussion of the Company’s foreign currency borrowings. The Company records the foreign currency borrowings at carrying value in its Consolidated Balance Sheets. The carrying value of the foreign currency borrowings is remeasured at the end of each reporting period to reflect changes in the foreign currency exchange spot rate. Since the foreign currency borrowings are designated as a net investment hedge, such remeasurement is recorded in equity as a component of AOCL. The fair value and the carrying value of the foreign currency borrowings designated as a net investment hedge were $ 398.8 million and $ 376.3 million, respectively, as of April 30, 2017 and $ 384.1 million and $ 367.5 million, respectively, as of January 29, 2017 . The Company evaluates the effectiveness of its net investment hedge as of the beginning of each quarter. No amounts were excluded from effectiveness testing. There was no ineffective portion of the net investment hedge during the thirteen weeks ended April 30, 2017 . Undesignated Contracts 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 transactions and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying intercompany balances. In addition, the Company has exposure to changes in foreign currency exchange rates related to the translation of the earnings of its subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, beginning in the second quarter of 2016, the Company entered into several foreign currency option contracts. These contracts represent the Company’s purchase of euro put/United States dollar call options and Chinese yuan renminbi put/United States dollar call options. The Company’s foreign currency option contracts are also undesignated contracts. As such, the changes in the fair value of these foreign currency option contracts are recognized immediately in earnings. This mitigates the effect of a strengthening United States dollar against the euro and Chinese yuan renminbi on the reporting of the Company’s euro-denominated and Chinese yuan renminbi-denominated earnings, respectively. The Company does not use derivative or non-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) Assets (Classified in Other Current Assets and Other Assets) Liabilities (Classified in Accrued Expenses and Other Liabilities) 4/30/17 1/29/17 5/1/16 4/30/17 1/29/17 5/1/16 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 18.7 $ 25.1 $ 1.0 $ 7.1 $ 2.6 $ 34.0 Interest rate contracts — — — 4.0 7.1 18.4 Total contracts designated as cash flow hedges 18.7 25.1 1.0 11.1 9.7 52.4 Undesignated contracts: Foreign currency forward exchange contracts 0.6 0.8 0.3 0.9 0.0 0.6 Foreign currency option contracts 1.7 3.2 — — — — Total undesignated contracts 2.3 4.0 0.3 0.9 0.0 0.6 Total $ 21.0 $ 29.1 $ 1.3 $ 12.0 $ 9.7 $ 53.0 At April 30, 2017 , the notional amount outstanding of foreign currency forward exchange contracts and foreign currency option contracts was $ 1,032.4 million and $ 150.0 million, respectively. Such contracts expire principally between May 2017 and September 2018. The following table summarizes the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: (Loss) Gain Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 4/30/17 5/1/16 4/30/17 5/1/16 Foreign currency forward exchange contracts (inventory purchases) $ (7.8 ) $ (58.4 ) Cost of goods sold $ 4.4 $ 4.7 Interest rate contracts 0.8 (0.1 ) Interest expense (2.3 ) (2.4 ) Foreign currency borrowings (net investment hedge) (8.6 ) — N/A — — Total $ (15.6 ) $ (58.5 ) $ 2.1 $ 2.3 A net gain in AOCL on foreign currency forward exchange contracts at April 30, 2017 of $ 19.8 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 April 30, 2017 of $ 4.0 million is estimated to be reclassified to interest expense within the next 12 months. Amounts recognized in AOCL for foreign currency borrowings would be recognized in earnings only upon the sale or liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in selling, general and administrative expenses in its Consolidated Income Statements: (In millions) Gain (Loss) Recognized in Income (Expense) Thirteen Weeks Ended 4/30/17 5/1/16 Foreign currency forward exchange contracts $ 0.2 $ (3.8 ) Foreign currency option contracts (2.6 ) — The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of April 30, 2017 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Financial Accounting Standards Board (“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) 4/30/17 1/29/17 5/1/16 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 $ 19.3 N/A $ 19.3 N/A $ 25.9 N/A $ 25.9 N/A $ 1.3 N/A $ 1.3 Foreign currency option contracts N/A 1.7 N/A 1.7 N/A 3.2 N/A 3.2 N/A N/A N/A N/A Total Assets N/A $ 21.0 N/A $ 21.0 N/A $ 29.1 N/A $ 29.1 N/A $ 1.3 N/A $ 1.3 Liabilities: Foreign currency forward exchange contracts N/A $ 8.0 N/A $ 8.0 N/A $ 2.6 N/A $ 2.6 N/A $ 34.6 N/A $ 34.6 Interest rate contracts N/A 4.0 N/A 4.0 N/A 7.1 N/A 7.1 N/A 18.4 N/A 18.4 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 1.7 1.7 N/A N/A $ 1.6 1.6 N/A N/A $ 2.3 2.3 Total Liabilities N/A $ 12.0 $ 1.7 $ 13.7 N/A $ 9.7 $ 1.6 $ 11.3 N/A $ 53.0 $ 2.3 $ 55.3 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 value of the interest rate contracts is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. The fair value of the foreign currency option contracts is estimated based on external valuation models, which use the original strike price, current foreign currency exchange rates, the implied volatility in foreign currency exchange rates and length of time to expiration as inputs. 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 six consecutive 12-month periods. 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, $ 0.6 million, $ 0.4 million and $ 0.2 million during 2016, 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 April 30, 2017 and May 1, 2016 : (In millions) Thirteen Weeks Ended 4/30/17 5/1/16 Beginning Balance $ 1.6 $ 2.2 Payments — — Adjustments included in earnings 0.1 0.1 Ending Balance $ 1.7 $ 2.3 Additional information with respect to assumptions used to value the contingent purchase price payment liability as of April 30, 2017 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 or the compounded annual net sales growth rate would result in an immaterial change to the liability. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt as of April 30, 2017 , January 29, 2017 and May 1, 2016 were as follows: (In millions) 4/30/17 1/29/17 5/1/16 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 490.9 $ 490.9 $ 730.1 $ 730.1 $ 365.1 $ 365.1 Short-term borrowings 42.5 42.5 19.1 19.1 41.0 41.0 Long-term debt (including portion classified as current) 3,157.1 3,214.3 3,197.3 3,248.7 3,118.3 3,188.1 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 |
Apr. 30, 2017 | |
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 certain other prior stock option plans. These other plans terminated upon the 2006 Plan’s initial stockholder approval in June 2006. 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; (vii) performance share units (“PSUs”); and (viii) 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 April 30, 2017 , 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. Net income for the thirteen weeks ended April 30, 2017 and May 1, 2016 included $ 8.7 million and $ 10.3 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $ 2.7 million and $ 2.8 million, respectively. During the thirteen weeks ended April 30, 2017, the Company adopted an update to accounting guidance that simplifies several aspects of accounting for share-based payment award transactions, which resulted in the Company’s election to recognize forfeitures as they occur rather than continue to estimate expected forfeitures in determining compensation expense. This accounting change was applied on a modified retrospective basis and resulted in a cumulative-effect adjustment to decrease beginning retained earnings by $ 0.8 million, with an offsetting increase to additional paid in capital of $ 1.1 million and an increase to deferred tax assets of $ 0.3 million. Please see Note 20, “Recent Accounting Guidance,” for a further discussion. 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 April 30, 2017 and May 1, 2016 were $ 5.5 million and $ 4.1 million, respectively. As a result of the Company’s adoption of the update discussed above, the Company recognized $ 0.1 million of tax deficiencies related to share-based payments in its provision for income taxes for the thirteen weeks ended April 30, 2017. Prior to the adoption of this update, the Company recognized excess tax benefits or tax deficiencies in equity as a component of additional paid in capital. Stock Options 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 2006 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 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 April 30, 2017 and May 1, 2016 : Thirteen Weeks Ended 4/30/17 5/1/16 Weighted average risk-free interest rate 2.10 % 1.44 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 29.46 % 34.67 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 33.50 $ 35.64 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. The Company will continue to evaluate the appropriateness of utilizing such method. Service-based stock option activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at January 29, 2017 1,466 $ 75.74 Granted 142 101.94 Exercised 33 63.83 Cancelled 4 106.75 Outstanding at April 30, 2017 1,571 $ 78.28 Exercisable at April 30, 2017 1,133 $ 68.45 Restricted Stock Units RSUs granted to employees since 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 RSUs is equal to the closing price of the Company’s common stock on the date of grant and is expensed over the RSUs’ vesting periods. RSU activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 29, 2017 812 $ 105.96 Granted 373 102.52 Vested 173 108.03 Cancelled 25 105.44 Non-vested at April 30, 2017 987 $ 104.31 Performance Share Units The Company granted contingently issuable PSUs to certain of the Company’s senior executives during 2015, 2016 and 2017 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. The Company records expense ratably over the applicable vesting period 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 thirteen weeks ended April 30, 2017 and May 1, 2016 was established for each grant on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: 2017 2016 Risk-free interest rate 1.49 % 1.04 % Expected Company volatility 31.29 % 28.33 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 96.81 $ 87.16 Certain of the awards granted in the thirteen weeks ended April 30, 2017 and May 1, 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 12.67% and 12.99% , respectively, for the restriction of liquidity. PSU activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 29, 2017 125 $ 92.32 Granted 72 96.81 Vested — — Cancelled — — Non-vested at April 30, 2017 197 $ 93.97 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Apr. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in AOCL, net of related taxes, by component for the thirteen weeks ended April 30, 2017 : Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance, January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 71.0 (1) (8.5 ) 62.5 Less: Amounts reclassified from AOCL — 3.1 3.1 Other comprehensive income (loss) 71.0 (11.6 ) 59.4 Balance, April 30, 2017 $ (666.7 ) $ 15.3 $ (651.4 ) (1) Foreign currency translation adjustments included a net loss on net investment hedge of $ 5.3 million. 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 Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance, January 31, 2016 $ (730.4 ) $ 26.2 $ (704.2 ) Other comprehensive income (loss) before reclassifications 184.2 (52.5 ) 131.7 Less: Amounts reclassified from AOCL — 2.4 2.4 Other comprehensive income (loss) 184.2 (54.9 ) 129.3 Balance, May 1, 2016 $ (546.2 ) $ (28.7 ) $ (574.9 ) The following table presents reclassifications out of AOCL to earnings for the thirteen weeks ended April 30, 2017 and May 1, 2016 : Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended 4/30/17 5/1/16 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 4.4 $ 4.7 Cost of goods sold Interest rate contracts (2.3 ) (2.4 ) Interest expense Less: Tax effect (1.0 ) (0.1 ) Income tax expense Total, net of tax $ 3.1 $ 2.4 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Apr. 30, 2017 | |
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. On March 21, 2017, the Board of Directors authorized a $ 750.0 million increase to the program and extended the program to June 3, 2020. 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 by the Board of Directors, 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 April 30, 2017 and May 1, 2016 , the Company purchased 0.6 million shares and 0.6 million shares, respectively, of its common stock under the program in open market transactions for $ 59.7 million and $50.5 million, respectively. As of April 30, 2017 , the repurchased shares were held as treasury stock and $ 749.1 million of the authorization remained available for future share repurchases. Treasury stock activity also includes shares that were withheld principally in conjunction with the settlement of vested restricted stock, RSUs and PSUs to satisfy tax withholding requirements. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 3 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [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) 4/30/17 5/1/16 Net income attributable to PVH Corp. $ 70.4 $ 231.6 Weighted average common shares outstanding for basic net income per common share 78.2 81.3 Weighted average impact of dilutive securities 0.8 0.6 Total shares for diluted net income per common share 79.0 81.9 Basic net income per common share attributable to PVH Corp. $ 0.90 $ 2.85 Diluted net income per common share attributable to PVH Corp. $ 0.89 $ 2.83 Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended (In millions) 4/30/17 5/1/16 Weighted average potentially dilutive securities 1.0 0.9 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 April 30, 2017 and May 1, 2016 and, therefore, were excluded from the calculation of diluted net income per common share for the thirteen weeks ended April 30, 2017 and May 1, 2016 . The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.4 million and 0.9 million as of April 30, 2017 and May 1, 2016 , 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 |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
NONCASH INVESTING AND FINANCING TRANSACTIONS | NONCASH INVESTING AND FINANCING TRANSACTIONS The Company recorded increases to goodwill of $ 13.2 million and $12.3 million during the thirteen weeks ended April 30, 2017 and May 1, 2016 , 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 April 30, 2017 and May 1, 2016 , the Company paid $ 12.5 million and $ 12.8 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 April 30, 2017 and May 1, 2016 were $ 0.5 million and $ 2.3 million, respectively, of assets acquired through capital leases. Omitted from acquisition of treasury shares in the Company’s Consolidated Statement of Cash Flows for the thirteen weeks ended May 1, 2016 were $ 2.2 million of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of May 1, 2016 . The Company completed during the first quarter of 2016 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. |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
Apr. 30, 2017 | |
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 digital commerce sites operated by key department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and digital 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 205 W39 NYC (formerly Calvin Klein Collection ) and CK Calvin Klein (formerly Calvin Klein Platinum ) for a broad array of products and retail services in North America. This segment also includes, since December 2016, the Company’s proportionate share of the net income or loss of its investment in its unconsolidated Calvin Klein foreign affiliate in Mexico. 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, digital commerce sites operated by key department store customers and pure play digital commerce retailers, franchisees of CALVIN KLEIN, distributors and licensees; (ii) operating retail stores and digital 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 , CALVIN KLEIN 205 W39 NYC and CK 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 digital commerce sites operated by these department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in North America, and digital 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. This segment also includes, since December 2016, the Company’s proportionate share of the net income or loss of its investment in its unconsolidated Tommy Hilfiger foreign affiliate in Mexico. 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, digital commerce sites operated by key department store customers and pure play digital commerce retailers, franchisees of Tommy Hilfiger , distributors and licensees; (ii) operating retail stores in Europe, China and Japan and international digital 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 TH China until April 13, 2016, on which date the Company began to consolidate the operations as a wholly owned subsidiary of the Company in conjunction with the TH China acquisition. 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, digital commerce sites operated by select wholesale partners and pure play digital commerce retailers in North America of (i) dress shirts and neckwear 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 derives revenue from Company operated digital commerce sites in the United States through SpeedoUSA .com and, since March 30, 2017, TrueandCo .com. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated Heritage Brands foreign affiliates in Australia and, since December 2016, in Mexico. 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 throughout the United States and Canada, which primarily sell apparel, accessories and related products . A majority of the Company’s Heritage Brands stores offer a broad selection of Van Heusen men’s and women’s apparel with limited selections of IZOD Golf , Warner’s and Speedo brand products, some of which feature multiple brand names on the door signage. The following tables present summarized information by segment: Thirteen Weeks Ended (In millions) 4/30/17 (1) 5/1/16 (1) Revenue – Calvin Klein North America Net sales $ 330.1 $ 338.8 Royalty revenue 35.1 30.3 Advertising and other revenue 10.2 11.5 Total 375.4 380.6 Revenue – Calvin Klein International Net sales 354.8 316.3 Royalty revenue 19.6 18.6 Advertising and other revenue 6.0 7.2 Total 380.4 342.1 Revenue – Tommy Hilfiger North America Net sales 298.1 321.1 Royalty revenue 16.5 11.0 Advertising and other revenue 3.9 2.5 Total 318.5 334.6 Revenue – Tommy Hilfiger International Net sales 507.8 444.6 Royalty revenue 10.1 11.6 Advertising and other revenue 5.6 1.0 Total 523.5 457.2 Revenue – Heritage Brands Wholesale Net sales 326.8 339.2 Royalty revenue 5.0 5.0 Advertising and other revenue 0.9 0.7 Total 332.7 344.9 Revenue – Heritage Brands Retail Net sales 57.4 57.7 Royalty revenue 1.0 0.6 Advertising and other revenue 0.1 0.1 Total 58.5 58.4 Total Revenue Net sales 1,875.0 1,817.7 Royalty revenue 87.3 77.1 Advertising and other revenue 26.7 23.0 Total $ 1,989.0 $ 1,917.8 (1) Revenue was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. Thirteen Weeks Ended (In millions) 4/30/17 (2) 5/1/16 (2) Income before interest and taxes – Calvin Klein North America $ 41.9 $ 38.1 (8)(9) Income before interest and taxes – Calvin Klein International 51.6 52.2 (8)(9) (Loss) income before interest and taxes – Tommy Hilfiger North America (18.8 ) (3)(5) 23.0 Income before interest and taxes – Tommy Hilfiger International 52.1 (4)(5) 183.3 (10) Income before interest and taxes – Heritage Brands Wholesale 30.3 27.9 (8) Income before interest and taxes – Heritage Brands Retail 1.5 2.1 Loss before interest and taxes – Corporate (1) (45.4 ) (6)(7) (32.0 ) (8) Income before interest and taxes $ 113.2 $ 294.6 (1) Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld and Gazal and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, actuarial gains and losses from the Company’s pension and other postretirement plans (which are generally recorded in the fourth quarter) and gains and losses from changes in the fair value of foreign currency option contracts. (2) Income (loss) before interest and taxes was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. (3) (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 7.0 million related to the relocation of the Company’s Tommy Hilfiger office in New York, including noncash depreciation expense. (4) Income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 6.9 million related to the TH China acquisition, primarily consisting of amortization of short-lived assets. (5) (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 54.2 million associated with the agreements entered into on March 20, 2017 for a transaction to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”). The transaction establishes a new strategic partnership with Li & Fung to provide services to the Company and also provides for the termination of the Company’s non-exclusive buying agency agreement with Li & Fung. Such costs were included in the Company’s segments as follows: $ 31.3 million in Tommy Hilfiger North America; and $ 22.9 million in Tommy Hilfiger International. (6) Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 1.8 million associated with the consolidation of the Company’s warehouse and distribution network in North America. (7) Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 8, “Retirement and Benefit Plans,” for a further discussion. (8) Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 included costs of $ 7.5 million associated with the 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. (9) Income before interest and taxes for the thirteen weeks ended May 1, 2016 included costs of $ 5.5 million associated with the restructuring related to the new global creative strategy for CALVIN KLEIN . 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. (10) Income before interest and taxes for the thirteen weeks ended May 1, 2016 included 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 TH China acquisition. Partially offsetting the gain were acquisition related costs of $ 24.2 million, principally consisting of 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. 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, the Calvin Klein North America segment and the Tommy Hilfiger North America segment. |
GUARANTEES
GUARANTEES | 3 Months Ended |
Apr. 30, 2017 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company is deemed to have guaranteed lease payments for substantially all G. H. Bass & Co. (“Bass”) retail stores included in the sale of substantially all of the assets of the Company’s Bass business in the fourth quarter of 2013 pursuant to the terms of noncancelable leases expiring on various dates through 2022 . These obligations deemed to be guaranteed include minimum rent payments and relate to leases that commenced prior to the sale of the Bass assets. In certain instances, the Company’s obligations remain in effect when an option is exercised to extend the term of the lease. The maximum amount deemed to have been guaranteed for all leases as of April 30, 2017 was $ 21.6 million and the Company has the right to seek recourse from the buyer of the Bass assets for the full amount. The liability for the guaranteed lease payments as of April 30, 2017 , January 29, 2017 and May 1, 2016 was $ 1.0 million, $ 1.1 million and $ 1.8 million, respectively, which was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. 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 April 30, 2017 was approximately $ 11.9 million, which is subject to exchange rate fluctuation. The guarantees are in effect for the entire terms of the respective obligations. The liability for these guarantee obligations was immaterial as of April 30, 2017 , January 29, 2017 and May 1, 2016 . 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 |
Apr. 30, 2017 | |
Notes to Financial Statements [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance The FASB issued in July 2015 an update to accounting guidance to simplify the measurement of inventory. The update 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 update does not apply to inventory measured using last-in, first-out or the retail inventory methods. Previously, all inventory was measured at the lower of cost or market. The Company adopted this update in the first quarter of 2017 and it did not have a material impact on the Company’s consolidated financial statements. The FASB issued in March 2016 an update to accounting guidance to simplify several aspects of accounting for share-based payment award transactions, including the accounting for forfeitures, income taxes and statutory tax withholding requirements, as well as classification of these transactions in the statement of cash flows. The Company adopted this update in the first quarter of 2017. With respect to accounting for forfeitures, the Company has elected to recognize forfeitures as they occur rather than continue to estimate expected forfeitures in determining compensation expense. This accounting change was applied on a modified retrospective basis and resulted in a cumulative-effect adjustment to decrease beginning retained earnings by $ 0.8 million, with an offsetting increase to additional paid in capital of $ 1.1 million and an increase to deferred tax assets of $ 0.3 million. With respect to the accounting for income taxes, this update requires, on a prospective basis, recognition of excess tax benefits and tax deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or exercise date) in the provision for income taxes as a discrete item in the quarterly period in which they occur. Prior to the adoption of this update, the Company recognized excess tax benefits or tax deficiencies in equity as a component of additional paid in capital. During the thirteen weeks ended April 30, 2017, the Company recognized in income tax expense a discrete tax expense of $ 0.1 million related to tax deficiencies. In addition, excess tax benefits are now classified as an operating activity in the Company’s Consolidated Statements of Cash Flows instead of as a financing activity, and such classification has been applied on a retrospective basis to all periods presented. As a result, excess tax benefits of $ 0.1 million for the first quarter of 2016 was reclassified from financing activities to operating activities. The update also requires that the value of shares withheld from employees upon vesting of stock awards in order to satisfy any applicable tax withholding requirements are presented within financing activities in the Company’s Consolidated Statements of Cash Flows, which is consistent with the Company’s historical presentation, and therefore had no impact to the Company. Accounting Guidance Issued But Not Adopted as of April 30, 2017 The FASB issued in May 2014 guidance that supersedes most of the current revenue recognition requirements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 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 several amendments to clarify various aspects of the implementation guidance. The new standard is required to be applied retrospectively to each prior reporting period (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized as an adjustment to opening retained earnings at the date of initial adoption (modified retrospective method). The Company formed a global, cross-functional project team to analyze the impacts of the guidance across all of its revenue streams. This included review of current accounting policies and practices to identify potential differences that would result from applying the guidance. The majority of the Company’s revenue is generated from sales of finished products, which will continue to be recognized when control is transferred to the customer. The Company’s assessment included an evaluation of the impact that the guidance will have on the Company’s accounting for royalty and advertising revenue, loyalty programs and gift cards. Under the guidance, the Company’s royalty and advertising revenue will continue to be recognized over time. However, the Company is still assessing the impact of decisions reached by the FASB Transition Resource Group in November 2016 on the treatment of minimum guarantees in licensing arrangements, which may affect the timing of the Company’s recognition of royalty and advertising revenue. For loyalty programs, the Company records costs associated with such programs ratably as a cost of goods sold based on enrolled customers’ spending. Under the guidance, the revenue associated with loyalty awards will be initially deferred when the loyalty awards are earned and recognized, along with the related cost of goods sold, as the loyalty awards are redeemed or expire. Revenue for the unredeemed portion of gift cards, which is currently recognized when the likelihood of redemption becomes remote, will be recognized under the guidance proportionately over the estimated customer redemption period, subject to the constraint that it must be highly probable that a significant reversal of revenue will not occur. While the Company’s assessment of the impacts of the guidance is still in process, the adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements. The Company plans to adopt the standard in the first quarter of 2018 using the modified retrospective method. The FASB issued in January 2016 an update to accounting guidance for the recognition and measurement of financial instruments. The update 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 update will be effective for the Company in the first quarter of 2018 with limited early adoption permitted. The adoption is not expected to have any impact on the Company’s consolidated financial statements as the Company does not currently have such investments. 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 most 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 adoption 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 its consolidated financial statements but expects that the standard will result in a significant increase to its other assets and other liabilities. The FASB issued in August 2016 an update to accounting guidance to clarify and provide specific guidance on how certain cash receipts and cash payments are classified in the statement of cash flows with the objective of reducing existing diversity in practice with respect to these items. Among the types of cash flows addressed are payments for costs related to debt prepayments or extinguishments, payments of contingent consideration after a business combination and distributions from equity method investees. The update will be effective for the Company in the first quarter of 2018, with early adoption permitted. Retrospective adoption is required. Upon adoption, contingent purchase price payments that are currently classified as cash flows from investing activities will be classified as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Otherwise, the adoption of the update is not expected to have a material impact on the Company’s consolidated financial statements. The FASB issued in October 2016 an update to accounting guidance to simplify income tax accounting on intercompany sales or transfers of assets other than inventory. The existing guidance requires entities to defer the income tax effect of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized. The update requires companies to immediately recognize in their income statement the income tax effects of an intercompany sale or transfer of an asset other than inventory. The update will be effective for the Company in the first quarter of 2018, with early adoption permitted as of the beginning of an annual period. Entities are required to apply the update using a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. As of April 30, 2017, the Company had deferred charges of $ 7.5 million related to intercompany sales and transfers of assets recorded in other assets. Upon adoption of this update, other assets will be reduced by the then current amount of deferred charges with a corresponding adjustment to opening retained earnings. The FASB issued in November 2016 an update to accounting guidance to clarify and provide specific guidance on the cash flow classifications and presentation of changes in restricted cash. The update requires that restricted cash be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown in the statement of cash flows. The update will be effective for the Company in the first quarter of 2018, with early adoption permitted. Retrospective adoption is required. The adoption is not expected to have a material impact on the Company’s Consolidated Statement of Cash Flows. The FASB issued in January 2017 an update to accounting guidance to revise the definition of a business. The update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of identifiable assets, the set of assets would not represent a business. Also, in order to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. Under the update, fewer sets of assets are expected to be considered businesses. The update will be effective for the Company in the first quarter of 2018, with early adoption permitted. The Company will apply the update to applicable transactions after the adoption date. The impact on the Company’s consolidated financial statements will depend on the facts and circumstances of any specific future transactions. The FASB issued in January 2017 an update to the accounting guidance to simplify the testing for goodwill impairment. The update eliminates the requirement to calculate the implied fair value of goodwill to measure the amount of impairment loss, if any, under the second step of the current goodwill impairment test. Under the update, the goodwill impairment loss would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The update will be effective for the Company in the first quarter of 2020, with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. Prospective adoption is required. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. The FASB issued in March 2017 an update to the accounting guidance to change the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires employers to report the service cost component of pension and postretirement net benefit cost in the same line item as other compensation costs arising from services rendered by the employees during the applicable period. The other components of net benefit cost are required to be presented in the income statement separately from the service component and outside a subtotal of income from operations, if one is presented. Additionally, only the service cost component of net benefit cost is eligible for capitalization, when applicable. The update will be effective for the Company in the first quarter of 2018, with early adoption permitted. Retrospective adoption is required for the presentation updates and prospective adoption is required for the capitalization update. The update will impact the presentation of net periodic pension cost and net periodic postretirement benefit cost within income before interest and taxes in the Company’s Consolidated Income Statements. Otherwise, the adoption of this update will not have a material impact on the Company’s consolidated financial statements. |
OTHER COMMENTS
OTHER COMMENTS | 3 Months Ended |
Apr. 30, 2017 | |
Other Comments [Abstract] | |
OTHER COMMENTS | OTHER COMMENTS Wuxi Jinmao Foreign Trade Co., Ltd. (“Wuxi”), one of the Company’s finished goods inventory suppliers, has a wholly owned subsidiary with which the Company entered into a loan agreement in 2016. Under the agreement, Wuxi’s subsidiary borrowed a principal amount of $ 13.8 million for the development and operation of a fabric mill. Principal payments are due in semi-annual installments through November 29, 2026. The outstanding principal balance of the loan bears interest at a rate of (i) 4.50% per annum until the sixth anniversary of the closing date of the loan and (ii) LIBOR plus 4.00% thereafter. The outstanding balance, including accrued interest, was $ 13.9 million as of both April 30, 2017 and January 29, 2017 and was included in other assets in the Company’s Consolidated Balance Sheets. |
GENERAL (Policies)
GENERAL (Policies) | 3 Months Ended |
Apr. 30, 2017 | |
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 6 , “ Investments in Unconsolidated Affiliates ,” for a further discussion. |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the thirteen weeks ended April 30, 2017 , by segment (please see Note 18 , “ Segment Data ,” for a further discussion of the Company’s reportable segments), 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 29, 2017 Goodwill, gross $ 739.4 $ 864.5 $ 204.4 $ 1,425.8 $ 235.8 $ 11.9 $ 3,481.8 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 739.4 864.5 204.4 1,425.8 235.8 — 3,469.9 Contingent purchase price payments to Mr. Calvin Klein 7.8 5.4 — — — — 13.2 True & Co. acquisition 7.2 6.3 — — 14.2 — 27.7 Currency translation and other (0.7 ) 6.9 — 28.4 — — 34.6 Balance as of April 30, 2017 Goodwill, gross 753.7 883.1 204.4 1,454.2 250.0 11.9 3,557.3 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 753.7 $ 883.1 $ 204.4 $ 1,454.2 $ 250.0 $ — $ 3,545.4 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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 Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 4/30/17 5/1/16 4/30/17 5/1/16 Service cost, including plan expenses $ 6.9 $ 6.5 $ 1.2 $ 1.3 Interest cost 6.4 7.5 1.0 1.0 Expected return on plan assets (9.7 ) (9.0 ) — — Loss on settlement 9.4 — — — Total $ 13.0 $ 5.0 $ 2.2 $ 2.3 Net benefit cost related to the Company’s Postretirement Plans was immaterial for the thirteen weeks ended April 30, 2017 and May 1, 2016 . |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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) 4/30/17 1/29/17 5/1/16 Senior secured Term Loan A facility due 2021 $ 1,990.5 $ 2,039.9 $ 1,758.3 Senior secured Term Loan B facility — — 571.4 4 1/2% senior unsecured notes due 2022 690.8 690.4 689.2 7 3/4% debentures due 2023 99.5 99.5 99.4 3 5/8% senior unsecured euro notes due 2024 376.3 367.5 — Total 3,157.1 3,197.3 3,118.3 Less: Current portion of long-term debt — — 126.7 Long-term debt $ 3,157.1 $ 3,197.3 $ 2,991.6 |
Schedule of Mandatory Long-Term Debt Repayments [Table] | As of April 30, 2017 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount Remainder of 2017 $ — 2018 18.7 2019 220.1 2020 234.7 2021 1,525.8 2022 700.0 Total debt repayments for the next five years exceed the carrying amount of the Company’s Term Loan A facility and 4 1/2% senior unsecured notes due 2022 as of April 30, 2017 because the carrying amounts reflect the unamortized portions of debt issuance costs and the original issue discounts. |
DERIVATIVE FINANCIAL INSTRUME33
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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) Assets (Classified in Other Current Assets and Other Assets) Liabilities (Classified in Accrued Expenses and Other Liabilities) 4/30/17 1/29/17 5/1/16 4/30/17 1/29/17 5/1/16 Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 18.7 $ 25.1 $ 1.0 $ 7.1 $ 2.6 $ 34.0 Interest rate contracts — — — 4.0 7.1 18.4 Total contracts designated as cash flow hedges 18.7 25.1 1.0 11.1 9.7 52.4 Undesignated contracts: Foreign currency forward exchange contracts 0.6 0.8 0.3 0.9 0.0 0.6 Foreign currency option contracts 1.7 3.2 — — — — Total undesignated contracts 2.3 4.0 0.3 0.9 0.0 0.6 Total $ 21.0 $ 29.1 $ 1.3 $ 12.0 $ 9.7 $ 53.0 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table summarizes the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: (Loss) Gain Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Income (Expense) (In millions) Location Amount Thirteen Weeks Ended 4/30/17 5/1/16 4/30/17 5/1/16 Foreign currency forward exchange contracts (inventory purchases) $ (7.8 ) $ (58.4 ) Cost of goods sold $ 4.4 $ 4.7 Interest rate contracts 0.8 (0.1 ) Interest expense (2.3 ) (2.4 ) Foreign currency borrowings (net investment hedge) (8.6 ) — N/A — — Total $ (15.6 ) $ (58.5 ) $ 2.1 $ 2.3 |
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 undesignated contracts recognized in selling, general and administrative expenses in its Consolidated Income Statements: (In millions) Gain (Loss) Recognized in Income (Expense) Thirteen Weeks Ended 4/30/17 5/1/16 Foreign currency forward exchange contracts $ 0.2 $ (3.8 ) Foreign currency option contracts (2.6 ) — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Fair Value Measurements [Abstract] | |
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) 4/30/17 1/29/17 5/1/16 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 $ 19.3 N/A $ 19.3 N/A $ 25.9 N/A $ 25.9 N/A $ 1.3 N/A $ 1.3 Foreign currency option contracts N/A 1.7 N/A 1.7 N/A 3.2 N/A 3.2 N/A N/A N/A N/A Total Assets N/A $ 21.0 N/A $ 21.0 N/A $ 29.1 N/A $ 29.1 N/A $ 1.3 N/A $ 1.3 Liabilities: Foreign currency forward exchange contracts N/A $ 8.0 N/A $ 8.0 N/A $ 2.6 N/A $ 2.6 N/A $ 34.6 N/A $ 34.6 Interest rate contracts N/A 4.0 N/A 4.0 N/A 7.1 N/A 7.1 N/A 18.4 N/A 18.4 Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India N/A N/A $ 1.7 1.7 N/A N/A $ 1.6 1.6 N/A N/A $ 2.3 2.3 Total Liabilities N/A $ 12.0 $ 1.7 $ 13.7 N/A $ 9.7 $ 1.6 $ 11.3 N/A $ 53.0 $ 2.3 $ 55.3 |
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 April 30, 2017 and May 1, 2016 : (In millions) Thirteen Weeks Ended 4/30/17 5/1/16 Beginning Balance $ 1.6 $ 2.2 Payments — — Adjustments included in earnings 0.1 0.1 Ending Balance $ 1.7 $ 2.3 |
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 April 30, 2017 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 or the compounded annual net sales growth rate would result in an immaterial change to the liability. |
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 April 30, 2017 , January 29, 2017 and May 1, 2016 were as follows: (In millions) 4/30/17 1/29/17 5/1/16 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 490.9 $ 490.9 $ 730.1 $ 730.1 $ 365.1 $ 365.1 Short-term borrowings 42.5 42.5 19.1 19.1 41.0 41.0 Long-term debt (including portion classified as current) 3,157.1 3,214.3 3,197.3 3,248.7 3,118.3 3,188.1 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 (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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 April 30, 2017 and May 1, 2016 : Thirteen Weeks Ended 4/30/17 5/1/16 Weighted average risk-free interest rate 2.10 % 1.44 % Weighted average expected option term (in years) 6.25 6.25 Weighted average Company volatility 29.46 % 34.67 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per option $ 33.50 $ 35.64 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. The Company will continue to evaluate the appropriateness of utilizing such method. |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Service-based stock option activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per option data) Options Weighted Average Exercise Price Per Option Outstanding at January 29, 2017 1,466 $ 75.74 Granted 142 101.94 Exercised 33 63.83 Cancelled 4 106.75 Outstanding at April 30, 2017 1,571 $ 78.28 Exercisable at April 30, 2017 1,133 $ 68.45 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | RSU activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 29, 2017 812 $ 105.96 Granted 373 102.52 Vested 173 108.03 Cancelled 25 105.44 Non-vested at April 30, 2017 987 $ 104.31 |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | The fair value of the awards granted in the thirteen weeks ended April 30, 2017 and May 1, 2016 was established for each grant on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: 2017 2016 Risk-free interest rate 1.49 % 1.04 % Expected Company volatility 31.29 % 28.33 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 96.81 $ 87.16 Certain of the awards granted in the thirteen weeks ended April 30, 2017 and May 1, 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 12.67% and 12.99% , respectively, for the restriction of liquidity. |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | PSU activity for the thirteen weeks ended April 30, 2017 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 29, 2017 125 $ 92.32 Granted 72 96.81 Vested — — Cancelled — — Non-vested at April 30, 2017 197 $ 93.97 |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents the changes in AOCL, net of related taxes, by component for the thirteen weeks ended April 30, 2017 : Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance, January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 71.0 (1) (8.5 ) 62.5 Less: Amounts reclassified from AOCL — 3.1 3.1 Other comprehensive income (loss) 71.0 (11.6 ) 59.4 Balance, April 30, 2017 $ (666.7 ) $ 15.3 $ (651.4 ) (1) Foreign currency translation adjustments included a net loss on net investment hedge of $ 5.3 million. 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 Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance, January 31, 2016 $ (730.4 ) $ 26.2 $ (704.2 ) Other comprehensive income (loss) before reclassifications 184.2 (52.5 ) 131.7 Less: Amounts reclassified from AOCL — 2.4 2.4 Other comprehensive income (loss) 184.2 (54.9 ) 129.3 Balance, May 1, 2016 $ (546.2 ) $ (28.7 ) $ (574.9 ) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents reclassifications out of AOCL to earnings for the thirteen weeks ended April 30, 2017 and May 1, 2016 : Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements Thirteen Weeks Ended 4/30/17 5/1/16 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 4.4 $ 4.7 Cost of goods sold Interest rate contracts (2.3 ) (2.4 ) Interest expense Less: Tax effect (1.0 ) (0.1 ) Income tax expense Total, net of tax $ 3.1 $ 2.4 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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) 4/30/17 5/1/16 Net income attributable to PVH Corp. $ 70.4 $ 231.6 Weighted average common shares outstanding for basic net income per common share 78.2 81.3 Weighted average impact of dilutive securities 0.8 0.6 Total shares for diluted net income per common share 79.0 81.9 Basic net income per common share attributable to PVH Corp. $ 0.90 $ 2.85 Diluted net income per common share attributable to PVH Corp. $ 0.89 $ 2.83 |
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 as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended (In millions) 4/30/17 5/1/16 Weighted average potentially dilutive securities 1.0 0.9 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
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) 4/30/17 (1) 5/1/16 (1) Revenue – Calvin Klein North America Net sales $ 330.1 $ 338.8 Royalty revenue 35.1 30.3 Advertising and other revenue 10.2 11.5 Total 375.4 380.6 Revenue – Calvin Klein International Net sales 354.8 316.3 Royalty revenue 19.6 18.6 Advertising and other revenue 6.0 7.2 Total 380.4 342.1 Revenue – Tommy Hilfiger North America Net sales 298.1 321.1 Royalty revenue 16.5 11.0 Advertising and other revenue 3.9 2.5 Total 318.5 334.6 Revenue – Tommy Hilfiger International Net sales 507.8 444.6 Royalty revenue 10.1 11.6 Advertising and other revenue 5.6 1.0 Total 523.5 457.2 Revenue – Heritage Brands Wholesale Net sales 326.8 339.2 Royalty revenue 5.0 5.0 Advertising and other revenue 0.9 0.7 Total 332.7 344.9 Revenue – Heritage Brands Retail Net sales 57.4 57.7 Royalty revenue 1.0 0.6 Advertising and other revenue 0.1 0.1 Total 58.5 58.4 Total Revenue Net sales 1,875.0 1,817.7 Royalty revenue 87.3 77.1 Advertising and other revenue 26.7 23.0 Total $ 1,989.0 $ 1,917.8 (1) Revenue was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. Thirteen Weeks Ended (In millions) 4/30/17 (2) 5/1/16 (2) Income before interest and taxes – Calvin Klein North America $ 41.9 $ 38.1 (8)(9) Income before interest and taxes – Calvin Klein International 51.6 52.2 (8)(9) (Loss) income before interest and taxes – Tommy Hilfiger North America (18.8 ) (3)(5) 23.0 Income before interest and taxes – Tommy Hilfiger International 52.1 (4)(5) 183.3 (10) Income before interest and taxes – Heritage Brands Wholesale 30.3 27.9 (8) Income before interest and taxes – Heritage Brands Retail 1.5 2.1 Loss before interest and taxes – Corporate (1) (45.4 ) (6)(7) (32.0 ) (8) Income before interest and taxes $ 113.2 $ 294.6 (1) Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld and Gazal and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, actuarial gains and losses from the Company’s pension and other postretirement plans (which are generally recorded in the fourth quarter) and gains and losses from changes in the fair value of foreign currency option contracts. (2) Income (loss) before interest and taxes was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. (3) (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 7.0 million related to the relocation of the Company’s Tommy Hilfiger office in New York, including noncash depreciation expense. (4) Income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 6.9 million related to the TH China acquisition, primarily consisting of amortization of short-lived assets. (5) (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 54.2 million associated with the agreements entered into on March 20, 2017 for a transaction to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”). The transaction establishes a new strategic partnership with Li & Fung to provide services to the Company and also provides for the termination of the Company’s non-exclusive buying agency agreement with Li & Fung. Such costs were included in the Company’s segments as follows: $ 31.3 million in Tommy Hilfiger North America; and $ 22.9 million in Tommy Hilfiger International. (6) Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 1.8 million associated with the consolidation of the Company’s warehouse and distribution network in North America. (7) Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $ 9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 8, “Retirement and Benefit Plans,” for a further discussion. (8) Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 included costs of $ 7.5 million associated with the 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. (9) Income before interest and taxes for the thirteen weeks ended May 1, 2016 included costs of $ 5.5 million associated with the restructuring related to the new global creative strategy for CALVIN KLEIN . 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. (10) Income before interest and taxes for the thirteen weeks ended May 1, 2016 included 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 TH China acquisition. Partially offsetting the gain were acquisition related costs of $ 24.2 million, principally consisting of 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. 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, the Calvin Klein North America segment and the Tommy Hilfiger North America segment. |
GENERAL (Details)
GENERAL (Details) | 3 Months Ended |
Apr. 30, 2017 | |
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 | |
Apr. 30, 2017 | May 01, 2016 | |
Warehousing and Distribution [Line Items] | ||
Warehousing and Distribution Expense | $ 60.8 | $ 58.3 |
GENERAL Redeemable Non-Controll
GENERAL Redeemable Non-Controlling Interest (Details) - Ethiopia Joint Venture [Member] | Apr. 30, 2017 |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 75.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Mar. 30, 2017 | Apr. 13, 2016 | Apr. 30, 2017 | May 01, 2016 |
Business Acquisition [Line Items] | ||||
Fair Value Inputs Discount Rate | 15.00% | |||
Gain to write-up equity investment in joint venture to fair value | $ 0 | $ 153.1 | ||
Goodwill | 27.7 | |||
Calvin Klein North America [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 7.2 | |||
Calvin Klein International [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 6.3 | |||
Heritage Brands Wholesale [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 14.2 | |||
True&Co. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid to acquire business | $ 28.5 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 0.8 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 0.4 | |||
Goodwill | 27.7 | |||
True&Co. Acquisition [Member] | Calvin Klein North America [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 7.2 | |||
True&Co. Acquisition [Member] | Calvin Klein International [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 6.3 | |||
True&Co. Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 14.2 | |||
Tommy Hilfiger China Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | |||
Fair value of acquired interest not already owned | $ 265.8 | |||
Cash paid to acquire business | 263 | |||
Pre-Acquisition Accounts Receivable | 2.8 | |||
Business Combination, Step Acquisition, Total Fair Value | 471.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 102.2 | |||
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 | 110.6 | |||
Goodwill | 258.6 | |||
Tommy Hilfiger China Acquisition [Member] | Licensing Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 72 | |||
Tommy Hilfiger China Acquisition [Member] | Order or Production Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 26.2 | |||
Tommy Hilfiger China Acquisition [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12.4 | |||
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] | ||||
Carrying Value Prior To Step Acquisition Remeasurement | $ 52.5 | |||
Fair Value Inputs Discount Rate | 14.40% | |||
Fair Value Inputs, Discount for Lack of Marketability | 10.00% | |||
Equity Method Investments, Fair Value Disclosure | $ 205.6 | |||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) $ in Millions | May 01, 2016USD ($) |
Building and Building Improvements [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying amount of assets held for sale | $ 15.3 |
INVESTMENTS IN UNCONSOLIDATED44
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Apr. 30, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | May 01, 2016 | Aug. 02, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Interest in Joint Venture | $ 1.2 | $ 1.5 | |||
Repayment of Notes Receivable from Related Parties | 6.3 | 0 | |||
Equity Method Investments | $ 182 | $ 180 | 95.9 | ||
Karl Lagerfeld Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 8.00% | ||||
PVH Australia Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Proceeds from Equity Method Investment, Distribution | $ 1.5 | ||||
Gazal Corporation Limited [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Payments to Acquire Interest in Joint Venture | $ 9.2 | ||||
Calvin Klein India Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||
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 | ||||
Note receivable, current | 7 | $ 12.5 | |||
Repayment of Notes Receivable from Related Parties | $ 6.2 | ||||
Tommy Hilfiger India Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Payments to Acquire Interest in Joint Venture | $ 1.2 | ||||
PVH Mexico Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 49.00% |
REDEEMABLE NON-CONTROLLING IN45
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 30, 2017 | May 01, 2016 | Jan. 29, 2017 | Jun. 29, 2016 | |
Noncontrolling Interest [Line Items] | ||||
Redeemable Non-Controlling Interest | $ 3.4 | $ 0 | $ 2 | |
Contributions from non-controlling interest | $ 1.7 | $ 0 | ||
Ethiopia Joint Venture [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 75.00% | |||
Redeemable Noncontrolling Interest, Equity, Fair Value | $ 0.1 | |||
Redeemable Non-Controlling Interest | $ 3.4 | $ 2 | ||
Contributions from non-controlling interest | $ 1.7 |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2017USD ($) | |
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 | $ 3,481.8 |
Accumulated impairment losses, beginning of period | (11.9) |
Goodwill, net, beginning of period | 3,469.9 |
Contingent purchase price payments to Mr. Calvin Klein | 13.2 |
True & Co. acquisition | 27.7 |
Currency translation and other | 34.6 |
Goodwill, gross, end of period | 3,557.3 |
Accumulated impairment losses, end of period | (11.9) |
Goodwill, net, end of period | 3,545.4 |
Calvin Klein North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 739.4 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 739.4 |
Contingent purchase price payments to Mr. Calvin Klein | 7.8 |
True & Co. acquisition | 7.2 |
Currency translation and other | (0.7) |
Goodwill, gross, end of period | 753.7 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 753.7 |
Calvin Klein International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 864.5 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 864.5 |
Contingent purchase price payments to Mr. Calvin Klein | 5.4 |
True & Co. acquisition | 6.3 |
Currency translation and other | 6.9 |
Goodwill, gross, end of period | 883.1 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 883.1 |
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 |
True & Co. acquisition | 0 |
Currency translation and other | 0 |
Goodwill, gross, end of period | 204.4 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 204.4 |
Tommy Hilfiger International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 1,425.8 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 1,425.8 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
True & Co. acquisition | 0 |
Currency translation and other | 28.4 |
Goodwill, gross, end of period | 1,454.2 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 1,454.2 |
Heritage Brands Wholesale [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of period | 235.8 |
Accumulated impairment losses, beginning of period | 0 |
Goodwill, net, beginning of period | 235.8 |
Contingent purchase price payments to Mr. Calvin Klein | 0 |
True & Co. acquisition | 14.2 |
Currency translation and other | 0 |
Goodwill, gross, end of period | 250 |
Accumulated impairment losses, end of period | 0 |
Goodwill, net, end of period | 250 |
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 |
True & Co. acquisition | 0 |
Currency translation and other | 0 |
Goodwill, gross, end of period | 11.9 |
Accumulated impairment losses, end of period | (11.9) |
Goodwill, net, end of period | $ 0 |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2017USD ($) | May 01, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Loss on settlement | $ 9.4 | $ 0 |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Retiree Participants | 4,000 | |
Number of Noncontributory Defined Benefit Pension Plans | 5 | |
Service cost, including plan expenses | $ 6.9 | 6.5 |
Interest cost | 6.4 | 7.5 |
Expected return on plan assets | (9.7) | (9) |
Loss on settlement | 9.4 | 0 |
Total | $ 13 | 5 |
Vesting Period Non-Contributory Defined Benefit Pension Plans | 5 years | |
Defined Benefit Plan, Accumulated Benefit Obligation Settled | $ 65.3 | |
SERP Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of Noncontributory Defined Benefit Pension 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 | $ 1.2 | 1.3 |
Interest cost | 1 | 1 |
Expected return on plan assets | 0 | 0 |
Loss on settlement | 0 | 0 |
Total | $ 2.2 | $ 2.3 |
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 | 2 |
DEBT Short-Term Lines of Credit
DEBT Short-Term Lines of Credit, Overdraft Facilities and Short-Term Revolving Credit Facilities (Details) - Lines of Credit, Foreign Facilities [Member] $ in Millions | 3 Months Ended |
Apr. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 92.4 |
Line of credit facility, amount outstanding | 21.7 |
Maximum amount of borrowings outstanding during the period | $ 23.5 |
Short-term debt, weighted average interest rate | 2.50% |
DEBT Senior Secured Credit Faci
DEBT Senior Secured Credit Facilities Revolving Borrowings (Details) - 2016 Facilities [Member] $ in Millions | 3 Months Ended |
Apr. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, amount outstanding | $ 20.8 |
Short-term debt, weighted average interest rate | 4.39% |
Maximum amount of borrowings outstanding during the period | $ 33.6 |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) € in Millions, $ in Millions | May 19, 2016USD ($) | Apr. 30, 2017USD ($) | Jul. 31, 2016EUR (€) | Jul. 31, 2016USD ($) | May 01, 2016USD ($) | Mar. 31, 2019 | Feb. 02, 2014USD ($) | Mar. 31, 2018 | Mar. 31, 2021 | Feb. 16, 2018 | Aug. 17, 2016 | Apr. 30, 2017EUR (€) | Apr. 30, 2017USD ($) | Jan. 29, 2017USD ($) | Jun. 20, 2016EUR (€) | May 19, 2016EUR (€) | May 19, 2016USD ($) | Aug. 03, 2014USD ($) | Mar. 21, 2014EUR (€) | Mar. 21, 2014USD ($) | Aug. 19, 2013USD ($) | Dec. 20, 2012USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Percentage of long-term debt at fixed interest rates | 65.00% | 65.00% | ||||||||||||||||||||
Repayment of 2016/2014 facilities | $ 50 | $ 51.9 | ||||||||||||||||||||
Term Loan A Repayment Percentage Quarters Following Amendment | 7.50% | 5.00% | 10.00% | |||||||||||||||||||
Long-term debt (including portion classified as current), carrying amount | 3,118.3 | $ 3,157.1 | $ 3,197.3 | |||||||||||||||||||
Long-term Debt, Current Maturities | 126.7 | 0 | 0 | |||||||||||||||||||
Long-term Debt, Excluding Current Maturities | 2,991.6 | 3,157.1 | 3,197.3 | |||||||||||||||||||
2016 Interest Rate Swap [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | $ 849.4 | $ 682.6 | ||||||||||||||||||||
Derivative, Basis Spread on Variable Rate | 1.924% | 1.924% | ||||||||||||||||||||
Derivative agreement term | 2 years | |||||||||||||||||||||
2013 Interest Rate Swap [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | $ 1,228.8 | |||||||||||||||||||||
Derivative, Basis Spread on Variable Rate | 0.604% | |||||||||||||||||||||
Derivative agreement term | 3 years | |||||||||||||||||||||
Senior Debenture Due 2023 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Senior Notes | 99.4 | $ 99.5 | 99.5 | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | ||||||||||||||||||||
Debt instrument, face amount | $ 100 | |||||||||||||||||||||
Senior notes due 2022 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Payments of Debt Issuance Costs | $ 16.3 | |||||||||||||||||||||
Senior Notes | 689.2 | $ 690.8 | 690.4 | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||||||||||||||||||
Debt instrument, face amount | $ 700 | |||||||||||||||||||||
Senior Notes Due 2024 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Payments of Debt Issuance Costs | € 6.4 | $ 7.3 | ||||||||||||||||||||
Senior Notes | 0 | $ 376.3 | 367.5 | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | ||||||||||||||||||||
Debt instrument, face amount | € | € 350 | € 350 | ||||||||||||||||||||
United States of America, Dollars | Unites States federal fund rate [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||||||||||||||
2016 Facilities Term Loan A [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase in term loan borrowings | $ 582 | |||||||||||||||||||||
Secured Debt | 1,758.3 | $ 1,990.5 | 2,039.9 | |||||||||||||||||||
2016 Facilities Term Loan A [Member] | United States of America, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Secured Debt | 2,347.4 | |||||||||||||||||||||
2016 Facilities Term Loan A [Member] | United States of America, Dollars | Base rate loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||||||||||||||
2016 Facilities Term Loan A [Member] | United States of America, Dollars | One month adjusted Eurocurrency rate loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||||||||||||
2016 Facilities [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt modification and extinguishment costs | $ 4.6 | |||||||||||||||||||||
Deferred Debt Issuance Costs | 6.3 | |||||||||||||||||||||
Write off of deferred debt issuance costs | 11.2 | |||||||||||||||||||||
Payments of Debt Issuance Costs | $ 10.9 | |||||||||||||||||||||
Letters of credit outstanding, amount | 22.6 | |||||||||||||||||||||
Repayment of 2016/2014 facilities | $ 50 | |||||||||||||||||||||
Maximum amount of commitment increase | $ 1,350 | |||||||||||||||||||||
2016 Facilities [Member] | United States of America, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 475 | |||||||||||||||||||||
2016 Facilities [Member] | United States Dollars or Canadian Dollars [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25 | |||||||||||||||||||||
2016 Facilities [Member] | Euro, British Pound, Japanese Yen and Swiss Francs [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 185.9 | |||||||||||||||||||||
2016 Facilities [Member] | Canada, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||||||||||||
2014 Facilities Term Loan A [Member] | United States of America, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Secured Debt | $ 1,986.3 | |||||||||||||||||||||
2014 Facilities Term Loan B [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Secured Debt | 571.4 | 0 | $ 0 | |||||||||||||||||||
2014 Facilities Term Loan B [Member] | United States of America, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Secured Debt | 1,188.6 | |||||||||||||||||||||
2014 Facilities [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayment of 2016/2014 facilities | $ 51.9 | |||||||||||||||||||||
2014 Facilities [Member] | United States of America, Dollars | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 475 | |||||||||||||||||||||
2014 Facilities [Member] | United States Dollars or Canadian Dollars [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25 | |||||||||||||||||||||
2014 Facilities [Member] | Euro, British Pound, Japanese Yen and Swiss Francs [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 185.9 | |||||||||||||||||||||
2016 Facilities [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit facility, amount outstanding | $ 20.8 |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Debt Instrument [Line Items] | ||
Repayment of 2016/2014 facilities | $ 50 | $ 51.9 |
Mandatory Long Term Debt Repayment Remainder of 2017 | 0 | |
Mandatory Long Term Debt Repayment 2018 | 18.7 | |
Mandatory Long Term Debt Repayment 2019 | 220.1 | |
Mandatory Long Term Debt Repayment 2020 | 234.7 | |
Mandatory Long Term Debt Repayment 2021 | 1,525.8 | |
Mandatory Long Term Debt Repayment 2022 | $ 700 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Income Taxes [Line Items] | ||
Effective Income Tax Rate | 17.00% | 12.80% |
DERIVATIVE FINANCIAL INSTRUME53
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2017USD ($) | May 01, 2016USD ($) | May 06, 2018USD ($) | Apr. 30, 2017EUR (€) | Apr. 30, 2017USD ($) | Jan. 29, 2017USD ($) | Jun. 20, 2016EUR (€) | |
Derivative [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | $ (8.5) | $ (52.5) | |||||
Foreign Exchange Forward Inventory Purchases [Member] | Cost of Goods Sold [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||||||
Foreign Currency Forward Exchange Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 1,032.4 | ||||||
Foreign Currency Forward Exchange Contracts [Member] | Cost of Goods Sold [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 19.8 | ||||||
Foreign Currency Option Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 150 | ||||||
Interest Rate Contract [Member] | Interest Expense [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (4) | ||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||||||
Designated contracts [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | $ (15.6) | (58.5) | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 2.1 | 2.3 | |||||
Designated contracts [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||||
Derivative [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | (7.8) | (58.4) | |||||
Designated contracts [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Cost of Goods Sold [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 4.4 | 4.7 | |||||
Designated contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 0.8 | (0.1) | |||||
Designated contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | |||||||
Derivative [Line Items] | |||||||
Gain (loss) reclassified from Accumulated Other Comprehensive Income into Income (Expense) | (2.3) | (2.4) | |||||
Designated contracts [Member] | Cash Flow Hedging [Member] | Net Investment Hedge [Member] | |||||||
Derivative [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | (8.6) | 0 | |||||
Undesignated contracts [Member] | Foreign Currency Option Contract [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (2.6) | 0 | |||||
Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 0.2 | (3.8) | |||||
Other Current Assets and Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 1.3 | 21 | $ 29.1 | ||||
Other Current Assets and Other Assets [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 1 | 18.7 | 25.1 | ||||
Other Current Assets and Other Assets [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 1 | 18.7 | 25.1 | ||||
Other Current Assets and Other Assets [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | ||||
Other Current Assets and Other Assets [Member] | Undesignated contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0.3 | 2.3 | 4 | ||||
Other Current Assets and Other Assets [Member] | Undesignated contracts [Member] | Foreign Currency Option Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 1.7 | 3.2 | ||||
Other Current Assets and Other Assets [Member] | Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0.3 | 0.6 | 0.8 | ||||
Accrued Expenses and Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 53 | 12 | 9.7 | ||||
Accrued Expenses and Other Liabilities [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 52.4 | 11.1 | 9.7 | ||||
Accrued Expenses and Other Liabilities [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 34 | 7.1 | 2.6 | ||||
Accrued Expenses and Other Liabilities [Member] | Designated contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 18.4 | 4 | 7.1 | ||||
Accrued Expenses and Other Liabilities [Member] | Undesignated contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.9 | 0 | ||||
Accrued Expenses and Other Liabilities [Member] | Undesignated contracts [Member] | Foreign Currency Option Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||
Accrued Expenses and Other Liabilities [Member] | Undesignated contracts [Member] | Foreign Exchange Forward Principally Intercompany Transactions [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0.6 | 0.9 | 0 | ||||
Senior Notes Due 2024 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € | € 350 | € 350 | |||||
Long-term Debt, Fair Value | 398.8 | 384.1 | |||||
Senior Notes | $ 0 | $ 376.3 | $ 367.5 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2017 | May 01, 2016 | Jan. 29, 2017 | Jan. 31, 2016 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Foreign currency forward exchange contracts, assets | $ 19.3 | $ 1.3 | $ 25.9 | ||||
Foreign currency option contracts, assets | 1.7 | 3.2 | |||||
Total Assets | 21 | 1.3 | 29.1 | ||||
Foreign currency forward exchange contracts, liabilities | 8 | 34.6 | 2.6 | ||||
Interest rate contracts, liabilities | 4 | 18.4 | 7.1 | ||||
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India | 1.7 | 2.3 | 1.6 | ||||
Total Liabilities | 13.7 | 55.3 | 11.3 | ||||
Cash and cash equivalents | 490.9 | 365.1 | 730.1 | $ 556.4 | |||
Short-term borrowings | 42.5 | 41 | 19.1 | ||||
Long-term debt (including portion classified as current), carrying amount | 3,157.1 | 3,118.3 | 3,197.3 | ||||
Contingent purchase price payments | 12.5 | 12.8 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Contingent purchase price payments, balance | 1.7 | 2.3 | 1.6 | 2.2 | |||
Payments | 0 | 0 | |||||
Adjustments included in earnings | $ 0.1 | 0.1 | |||||
Compounded Annual Net Sales Growth Rate | 35.00% | ||||||
Fair Value Inputs Discount Rate | 15.00% | ||||||
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 | $ 0.6 | $ 0.4 | $ 0.2 | ||
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 India Joint Venture [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Reported Value Measurement [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Cash and cash equivalents | $ 490.9 | 365.1 | 730.1 | ||||
Short-term borrowings | 42.5 | 41 | 19.1 | ||||
Long-term debt (including portion classified as current), carrying amount | 3,157.1 | 3,118.3 | 3,197.3 | ||||
Estimate of Fair Value Measurement [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Cash and cash equivalents, fair value | 490.9 | 365.1 | 730.1 | ||||
Short-term borrowings, fair value | 42.5 | 41 | 19.1 | ||||
Long-term debt (including portion classified as current), fair value | 3,214.3 | 3,188.1 | 3,248.7 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Foreign currency forward exchange contracts, assets | 19.3 | 1.3 | 25.9 | ||||
Foreign currency option contracts, assets | 1.7 | 3.2 | |||||
Total Assets | 21 | 1.3 | 29.1 | ||||
Foreign currency forward exchange contracts, liabilities | 8 | 34.6 | 2.6 | ||||
Interest rate contracts, liabilities | 4 | 18.4 | 7.1 | ||||
Total Liabilities | 12 | 53 | 9.7 | ||||
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 | 1.7 | 2.3 | 1.6 | ||||
Total Liabilities | $ 1.7 | $ 2.3 | $ 1.6 |
STOCK-BASED COMPENSATION STOCK
STOCK-BASED COMPENSATION STOCK BASED COMPENSATION Stock Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 8.7 | $ 10.3 |
Recognized income tax benefits associated with stock based compensation expense | 2.7 | 2.8 |
Tax deduction associated with stock plan award transactions | 5.5 | $ 4.1 |
Tax deficiencies reported, stock plan awards | $ 0.1 |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK OPTION ACTIVITY (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years | |
Reduction in Number of Shares to Be Granted by Each Option Award | 1 | |
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 | 1,466,000 | |
Service-based stock options, granted | 142,000 | |
Service-based stock options, exercised | 33,000 | |
Service-based stock options, cancelled | 4,000 | |
Service-based stock options, outstanding, end of period | 1,571,000 | |
Service-based stock options, exercisable | 1,133,000 | |
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 75.74 | |
Service-based stock options, granted, weighted average price per option | 101.94 | |
Service-based stock options, exercised, weighted average price per option | 63.83 | |
Service-based stock options, cancelled, weighted average price per option | 106.75 | |
Service-based stock options, outstanding, weighted average price per option, end of period | 78.28 | |
Service-based stock options, exercisable, weighted average price per option | $ 68.45 | |
Black-Scholes-Merton Model [Member] | ||
Assumptions used to estimate fair value of service-based stock options [Abstract] | ||
Weighted average risk-free interest rate | 2.10% | 1.44% |
Weighted average expected term (in years) | 6 years 3 months | 6 years 3 months |
Weighted average Company volatility | 29.46% | 34.67% |
Expected annual dividends per share | $ 0.15 | $ 0.15 |
Weighted average grant date fair value per option | $ 33.50 | $ 35.64 |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (800,000) | |
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,100,000 | |
Accounting Standards Update 2016-09 [Member] | Other Assets [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 300,000 |
STOCK-BASED COMPENSATION - RSU,
STOCK-BASED COMPENSATION - RSU, RESTRICTED STOCK AND PERFORMANCE SHARE ACTIVITY (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available to be granted by a restricted stock award, RSU or PSU | 2 | ||
Restricted Stock Units (RSUs) Granted Since 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) 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) 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 | 3 years |
Percentage of Final Number of Shares Based Upon the Company's Absolute Stock Price Growth | 50.00% | ||
Percent of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50.00% | ||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 125,000 | ||
Other than options, granted number | 72,000 | ||
Other than options, vested number | 0 | ||
Other than options, cancelled number | 0 | ||
Other than options, non-vested number, end of period | 197,000 | ||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 92.32 | ||
Other than options, granted, weighted average grant date fair value | 96.81 | ||
Other than options, vested, weighted average grant date fair value | 0 | ||
Other than options, cancelled, weighted average grant date fair value | 0 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 93.97 | ||
Awards Granted in 2016, Holding Period | 1 year | ||
Performance Shares (PSUs) [Member] | Monte Carlo Model [Member] | |||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||
Restriction of Liquidity Discount | 12.67% | 12.99% | |
Weighted average risk-free interest rate | 1.49% | 1.04% | |
Weighted average Company volatility | 31.29% | 28.33% | |
Expected annual dividends per share | $ 0.15 | $ 0.15 | |
Non-vested activity [Roll Forward] | |||
Other than options, granted, weighted average grant date fair value | $ 96.81 | $ 87.16 | |
Restricted Stock Units (RSUs) [Member] | |||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 812,000 | ||
Other than options, granted number | 373,000 | ||
Other than options, vested number | 173,000 | ||
Other than options, cancelled number | 25,000 | ||
Other than options, non-vested number, end of period | 987,000 | ||
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 105.96 | ||
Other than options, granted, weighted average grant date fair value | 102.52 | ||
Other than options, vested, weighted average grant date fair value | 108.03 | ||
Other than options, cancelled, weighted average grant date fair value | 105.44 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 104.31 | ||
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 COMPREHENSI58
ACCUMULATED OTHER COMPREHENSIVE LOSS CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 30, 2017 | May 01, 2016 | Jan. 29, 2017 | Jan. 31, 2016 | |
Balance, foreign currency translation adjustments, net of tax | $ (666.7) | $ (546.2) | $ (737.7) | $ (730.4) |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments | 71 | 184.2 | ||
Amounts reclassified from AOCL, foreign currency translation adjustments, net of tax | 0 | 0 | ||
Foreign currency translation adjustments, net of tax | 71 | 184.2 | ||
Balance, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 15.3 | (28.7) | 26.9 | 26.2 |
Other comprehensive income (loss) before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | (8.5) | (52.5) | ||
Amounts reclassified from AOCL, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 3.1 | 2.4 | ||
Net unrealized and realized loss related to effective cash flow hedges, net of tax | (11.6) | (54.9) | ||
Accumulated other comprehensive loss | (651.4) | (574.9) | $ (710.8) | $ (704.2) |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 62.5 | 131.7 | ||
Amounts reclassified from AOCL, total, net of tax | 3.1 | 2.4 | ||
Total other comprehensive income | 59.4 | 129.3 | ||
Net loss on net investment hedge, net of tax | $ (5.3) | $ 0 |
ACCUMULATED OTHER COMPREHENSI59
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Amounts reclassified from AOCL, realized gain (loss) on effective cash flow hedges, tax effect | $ (1) | $ (0.1) |
Amounts reclassified from AOCL, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 3.1 | 2.4 |
Foreign Exchange Forward Inventory Purchases [Member] | ||
Amounts reclassified from AOCL, realized gain (loss) on effective cash flow hedges | 4.4 | 4.7 |
Interest Rate Contract [Member] | ||
Amounts reclassified from AOCL, realized gain (loss) on effective cash flow hedges | $ (2.3) | $ (2.4) |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Stock Repurchase Program [Member] - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Apr. 30, 2017 | May 01, 2016 | Mar. 21, 2017 | Jun. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 750 | $ 500 | ||
Stock Repurchase Program, Period in Force | 5 years | |||
Stock Repurchase Program, Number of Shares Repurchased | 0.6 | 0.6 | ||
Stock Repurchase Program, Amount Purchased During Period | $ 59.7 | $ 50.5 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 749.1 |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to PVH Corp. | $ 70.4 | $ 231.6 |
Weighted average common shares outstanding for basic net income per common share | 78.2 | 81.3 |
Weighted average impact of dilutive securities | 0.8 | 0.6 |
Total shares for diluted net income per common share | 79 | 81.9 |
Basic net income per common share attributable to PVH Corp. | $ 0.90 | $ 2.85 |
Diluted net income per common share attributable to PVH Corp. | $ 0.89 | $ 2.83 |
Weighted average potentially dilutive securities | 1 | 0.9 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Apr. 30, 2017 | May 01, 2016 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of Dilutive Shares That Could Be Issued Upon Vesting | 0.4 | 0.9 |
NONCASH INVESTING AND FINANCI63
NONCASH INVESTING AND FINANCING ACTIVITIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | Apr. 13, 2016 | |
Nonmonetary Transaction [Line Items] | |||
Contingent purchase price payments | $ 12.5 | $ 12.8 | |
Capital Lease Obligations Incurred | $ 0.5 | 2.3 | |
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 | $ 13.2 | 12.3 | |
Contingent purchase price payments | $ 12.5 | $ 12.8 | |
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 ($) | Apr. 30, 2017USD ($) | May 01, 2016USD ($) | |||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Number of Reportable Segments | 6 | |||||
Revenue: | ||||||
Net sales | [1] | $ 1,875 | $ 1,817.7 | |||
Royalty revenue | [1] | 87.3 | 77.1 | |||
Advertising and other revenue | [1] | 26.7 | 23 | |||
Total revenue | [1] | 1,989 | 1,917.8 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 113.2 | 294.6 | |||
Settlement loss on retirement plans | (9.4) | 0 | ||||
Costs Related to Global Creative Strategy for CK | 5.5 | |||||
Gain to write-up equity investment in joint venture to fair value | 0 | 153.1 | ||||
Calvin Klein North America [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 330.1 | 338.8 | |||
Royalty revenue | [1] | 35.1 | 30.3 | |||
Advertising and other revenue | [1] | 10.2 | 11.5 | |||
Total revenue | [1] | 375.4 | 380.6 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 41.9 | 38.1 | [3],[4] | ||
Costs Related to Global Creative Strategy for CK | 2.7 | |||||
Calvin Klein International [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 354.8 | 316.3 | |||
Royalty revenue | [1] | 19.6 | 18.6 | |||
Advertising and other revenue | [1] | 6 | 7.2 | |||
Total revenue | [1] | 380.4 | 342.1 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 51.6 | 52.2 | [3],[4] | ||
Costs Related to Global Creative Strategy for CK | 2.8 | |||||
Tommy Hilfiger North America [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 298.1 | 321.1 | |||
Royalty revenue | [1] | 16.5 | 11 | |||
Advertising and other revenue | [1] | 3.9 | 2.5 | |||
Total revenue | [1] | 318.5 | 334.6 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | (18.8) | [5],[6] | 23 | ||
Tommy Hilfiger Office Relocation Expense | 7 | |||||
Tommy Hilfiger International [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 507.8 | 444.6 | |||
Royalty revenue | [1] | 10.1 | 11.6 | |||
Advertising and other revenue | [1] | 5.6 | 1 | |||
Total revenue | [1] | 523.5 | 457.2 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 52.1 | [5],[7] | 183.3 | [8] | |
Heritage Brands Wholesale [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 326.8 | 339.2 | |||
Royalty revenue | [1] | 5 | 5 | |||
Advertising and other revenue | [1] | 0.9 | 0.7 | |||
Total revenue | [1] | 332.7 | 344.9 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 30.3 | 27.9 | [3] | ||
Heritage Brands Retail [Member] | ||||||
Revenue: | ||||||
Net sales | [1] | 57.4 | 57.7 | |||
Royalty revenue | [1] | 1 | 0.6 | |||
Advertising and other revenue | [1] | 0.1 | 0.1 | |||
Total revenue | [1] | 58.5 | 58.4 | |||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | 1.5 | 2.1 | |||
Corporate Segment [Member] | ||||||
Earnings before interest and taxes: | ||||||
Income (loss) before interest and taxes | [2] | (45.4) | [9],[10] | (32) | [3] | |
Settlement loss on retirement plans | 9.4 | |||||
Consolidation of North America warehouse and distirbution network [Member] | Corporate Segment [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Exit Costs | 1.8 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 7.5 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein North America [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 0.2 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Calvin Klein International [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 2.6 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Heritage Brands Wholesale [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 0.4 | |||||
Warnaco acquisition [Member] | Warnaco Integration Costs [Member] | Corporate Segment [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 4.3 | |||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Integration Related Costs | 6.9 | |||||
Business Combination, Acquisition Related Costs | 24.2 | |||||
Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | ||||||
Earnings before interest and taxes: | ||||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | |||||
Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||
Earnings before interest and taxes: | ||||||
Business Combination, Cost Related to Equity Investment | $ 5.9 | |||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | |||||
Li & Fung Trading Limited [Member] | ||||||
Earnings before interest and taxes: | ||||||
Loss on Contract Termination | 54.2 | |||||
Li & Fung Trading Limited [Member] | Tommy Hilfiger North America [Member] | ||||||
Earnings before interest and taxes: | ||||||
Loss on Contract Termination | 31.3 | |||||
Li & Fung Trading Limited [Member] | Tommy Hilfiger International [Member] | ||||||
Earnings before interest and taxes: | ||||||
Loss on Contract Termination | $ 22.9 | |||||
[1] | Revenue was impacted by the strengthening of the United States dollar against foreign 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 Part I, Item 2 of this report for a further discussion. | |||||
[2] | Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld and Gazal and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, actuarial gains and losses from the Company’s pension and other postretirement plans (which are generally recorded in the fourth quarter) and gains and losses from changes in the fair value of foreign currency option contracts. | |||||
[3] | Income (loss) before interest and taxes for the thirteen weeks ended May 1, 2016 included costs of $7.5 million associated with the 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 included costs of $5.5 million associated with the restructuring related to the new global creative strategy for CALVIN KLEIN. 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. | |||||
[5] | (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $54.2 million associated with the agreements entered into on March 20, 2017 for a transaction to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”). The transaction establishes a new strategic partnership with Li & Fung to provide services to the Company and also provides for the termination of the Company’s non-exclusive buying agency agreement with Li & Fung. Such costs were included in the Company’s segments as follows: $31.3 million in Tommy Hilfiger North America; and $22.9 million in Tommy Hilfiger International. | |||||
[6] | (Loss) income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $7.0 million related to the relocation of the Company’s Tommy Hilfiger office in New York, including noncash depreciation expense. | |||||
[7] | Income before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $6.9 million related to the TH China acquisition, primarily consisting of amortization of short-lived assets. | |||||
[8] | Income before interest and taxes for the thirteen weeks ended May 1, 2016 included 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 TH China acquisition. Partially offsetting the gain were acquisition related costs of $24.2 million, principally consisting of 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. | |||||
[9] | Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $1.8 million associated with the consolidation of the Company’s warehouse and distribution network in North America. | |||||
[10] | Loss before interest and taxes for the thirteen weeks ended April 30, 2017 included costs of $9.4 million related to the noncash settlement of certain of the Company’s benefit obligations related to its Pension Plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer. Please see Note 8, “Retirement and Benefit Plans,” for a further discussion. |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2023 | Apr. 30, 2017 | Jan. 29, 2017 | May 01, 2016 | |
Sale Of Bass [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Expiration Year of Bass Guarantee | 2,022 | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 21.6 | |||
Guarantor Obligations, Current Carrying Value | 1 | $ 1.1 | $ 1.8 | |
PVH Australia and CK India [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 11.9 |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustments to Provision for Income Taxes, Tax Deficiency from Share-Based Compensation | $ 0.1 | |
Accounting For Share Based Payment Award Transactions [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustments to Provision for Income Taxes, Tax Deficiency from Share-Based Compensation | 0.1 | |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 0.1 | |
Presentation of Deferred Income Taxes Related to Intercompany Sales and Transfers of Assets Other Than Inventory | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction in Other Assets Had Company Early Adopted Guidance | 7.5 | |
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.8) | |
Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1.1 | |
Other Assets [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0.3 |
OTHER COMMENTS Additional Infor
OTHER COMMENTS Additional Information (Details) - Wuxi Jinmao Foreign Trade Co. [Member] - USD ($) $ in Millions | 48 Months Ended | 72 Months Ended | ||
Nov. 29, 2026 | Nov. 28, 2022 | Apr. 30, 2017 | Nov. 29, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan Receivable from Supplier | $ 13.9 | $ 13.8 | ||
Loans Receivable, Fixed Interest Rate | 4.50% | |||
Loans Receivable, Basis Spread on Variable Rate, During Period | 4.00% |