Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2019 | Mar. 18, 2019 | Aug. 05, 2018 | |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | PVH CORP. /DE/ | ||
Entity Central Index Key | 0000078239 | ||
Current Fiscal Year End Date | --02-03 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 3, 2019 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 75,146,409 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 11,484,972,142 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||
Total revenue | [1],[2] | $ 9,656.8 | $ 8,914.8 | $ 8,203.1 |
Cost of goods sold (exclusive of depreciation and amortization) | 4,348.5 | 4,020.4 | 3,832.8 | |
Gross profit | 5,308.3 | 4,894.4 | 4,370.3 | |
Selling, general and administrative expenses | 4,432.8 | 4,245.2 | 3,677.9 | |
Non-service related pension and postretirement cost (income) | 5.1 | 3 | (41.2) | |
Debt modification and extinguishment costs | 0 | 23.9 | 15.8 | |
Other noncash gain, net | 0 | 0 | 71.3 | |
Equity in net income of unconsolidated affiliates | 21.3 | 10.1 | 0.1 | |
Income before interest and taxes | [3] | 891.7 | 632.4 | 789.2 |
Interest expense | 120.8 | 128.5 | 120.9 | |
Interest income | 4.7 | 6.3 | 5.9 | |
Income before taxes | 775.6 | 510.2 | 674.2 | |
Income tax expense (benefit) | 31 | (25.9) | 125.5 | |
Net income | 744.6 | 536.1 | 548.7 | |
Less: Net loss attributable to redeemable non-controlling interest | (1.8) | (1.7) | (0.3) | |
Net income attributable to PVH Corp. | $ 746.4 | $ 537.8 | $ 549 | |
Basic net income per common share attributable to PVH Corp. | $ 9.75 | $ 6.93 | $ 6.84 | |
Diluted net income per common share attributable to PVH Corp. | $ 9.65 | $ 6.84 | $ 6.79 | |
Net sales | ||||
Total revenue | $ 9,154.2 | $ 8,439.4 | $ 7,791.4 | |
Royalty revenue | ||||
Total revenue | 375.9 | 366.3 | 320.6 | |
Advertising and other revenue | ||||
Total revenue | $ 126.7 | $ 109.1 | $ 91.1 | |
[1] | No single customer accounted for more than 10% of the Company’s revenue in 2018, 2017 or 2016. | |||
[2] | Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. | |||
[3] | Income (loss) before interest and taxes was impacted by fluctuations 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 Item 7 of this report for further discussion. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Net income | $ 744.6 | $ 536.1 | $ 548.7 |
Foreign currency translation adjustments | (361.3) | 561.3 | (21.4) |
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax | 101.8 | (99.1) | 0.7 |
Net gain (loss) on net investment hedges, net of tax | 73.1 | (70.8) | 14.1 |
Total other comprehensive (loss) income | (186.4) | 391.4 | (6.6) |
Comprehensive income | 558.2 | 927.5 | 542.1 |
Less: Comprehensive loss attributable to redeemable non-controlling interest | (1.8) | (1.7) | (0.3) |
Comprehensive income attributable to PVH Corp. | $ 560 | $ 929.2 | $ 542.4 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Net unrealized and realized (loss) gain related to effective cash flow hedges, tax expense (benefit) | $ 3.2 | $ 0.1 | $ 1.2 |
Net (loss) gain on net investment hedges, tax (benefit) expense | $ 22.5 | $ (28.7) | $ 8.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 | |
Current Assets: | |||
Cash and cash equivalents | $ 452 | $ 493.9 | |
Trade receivables, net of allowances for doubtful accounts of $21.6 and $21.1 | 777.8 | 658.5 | |
Other receivables | 26 | 37.9 | |
Inventories, net | 1,732.4 | 1,591.3 | |
Prepaid expenses | 168.7 | 184.5 | |
Other | 81.7 | 64.7 | |
Total Current Assets | 3,238.6 | 3,030.8 | |
Property, Plant and Equipment, net | [1] | 984.5 | 899.8 |
Goodwill | 3,670.5 | 3,834.7 | |
Tradenames | 2,863.7 | 2,928.4 | |
Other Intangibles, net | 705.5 | 798.2 | |
Other Assets, including deferred taxes of $40.5 and $25.4 | 400.9 | 393.8 | |
Total Assets | [2] | 11,863.7 | 11,885.7 |
Current Liabilities: | |||
Accounts payable | 924.2 | 889.8 | |
Accrued expenses | 891.6 | 923.1 | |
Deferred revenue | 65.3 | 39.2 | |
Short-term borrowings | 12.8 | 19.5 | |
Current portion of long-term debt | 0 | 0 | |
Total Current Liabilities | 1,893.9 | 1,871.6 | |
Long-Term Debt | 2,819.4 | 3,061.3 | |
Other Liabilities, including deferred taxes of $565.2 and $663.0 | 1,322.4 | 1,414.4 | |
Redeemable Non-Controlling Interest | 0.2 | 2 | |
Stockholders' Equity: | |||
Preferred stock, par value $100 per share; 150,000 total shares authorized | 0 | 0 | |
Common stock, par value $1 per share; 240,000,000 shares authorized; 85,446,141 and 84,851,079 shares issued | 85.4 | 84.9 | |
Additional paid in capital - common stock | 3,017.3 | 2,941.2 | |
Retained earnings | 4,350.1 | 3,625.2 | |
Accumulated other comprehensive loss | (507.9) | (321.5) | |
Less: 10,042,510 and 7,672,317 shares of common stock held in treasury, at cost | (1,117.1) | (793.4) | |
Total Stockholders' Equity | 5,827.8 | 5,536.4 | |
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity | $ 11,863.7 | $ 11,885.7 | |
[1] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. | ||
[2] | Identifiable assets included the impact of changes in foreign currency exchange rates. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 |
Current Assets: | ||
Allowance for doubtful accounts | $ 21.6 | $ 21.1 |
Other Assets: | ||
Other assets, deferred taxes | 40.5 | 25.4 |
Liabilities: | ||
Other liabilities, deferred taxes | $ 565.2 | $ 663 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares authorized (in shares) | 150,000 | 150,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 85,446,141 | 84,851,079 |
Shares of common stock held in treasury, at cost (in shares) | 10,042,510 | 7,672,317 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||||
OPERATING ACTIVITIES | ||||||
Net income | $ 744.6 | $ 536.1 | $ 548.7 | |||
Adjustments to reconcile to net cash provided by operating activities: | ||||||
Depreciation and amortization | 334.8 | 324.9 | 321.8 | |||
Equity in net income of unconsolidated affiliates | (21.3) | (10.1) | (0.1) | |||
Deferred taxes | (113.3) | [1] | (224.6) | [1] | 1.3 | |
Stock-based compensation expense | 56.2 | 44.9 | 38.2 | |||
Impairment of long-lived assets | 17.9 | 7.5 | 10.1 | |||
Actuarial loss (gain) on retirement and benefit plans | 15 | 2.5 | (39.1) | |||
Settlement loss on retirement plans | 0 | 9.4 | 0 | |||
Debt modification and extinguishment costs | 0 | 23.9 | 15.8 | |||
Gain to write-up equity investment in joint venture to fair value | 0 | 0 | (153.1) | |||
Net loss on deconsolidation of subsidiary | 0 | 0 | 81.8 | |||
Changes in operating assets and liabilities: | ||||||
Trade receivables, net | (151.4) | 3.3 | 22.3 | |||
Other receivables | 10.7 | (11.7) | 4.2 | |||
Inventories, net | (212.1) | (163.5) | 2.2 | |||
Accounts payable, accrued expenses and deferred revenue | 112.9 | 185.9 | 166.9 | |||
Prepaid expenses | 8.5 | (41) | 19.2 | |||
Employer pension contributions | (10) | (0.3) | (100) | |||
Contingent purchase price payments to Mr. Calvin Klein | (15.9) | (55.6) | (53.1) | |||
Other, net | 75.9 | 12.6 | 15.5 | |||
Net cash provided by operating activities | 852.5 | 644.2 | 902.6 | |||
INVESTING ACTIVITIES | ||||||
Acquisitions, net of cash acquired | (15.9) | (40.1) | (157.7) | |||
Purchase of property, plant and equipment | (379.5) | (358.1) | (246.6) | |||
Proceeds from sale of building | 0 | 3.4 | 16.7 | |||
Investments in and advance to unconsolidated affiliates | 0 | (14.2) | (32) | |||
Payment received on advance to unconsolidated affiliate | 0 | 6.3 | 6.2 | |||
Loan to a supplier | 0 | 0 | (13.8) | |||
Net cash used by investing activities | [2] | (395.4) | (402.7) | (427.2) | ||
FINANCING ACTIVITIES | ||||||
Net (payments on) proceeds from short-term borrowings | (6.7) | 0.4 | (6.8) | |||
Net proceeds from settlement of awards under stock plans | 20.4 | 30 | 13.1 | |||
Cash dividends | (11.6) | (11.9) | (12.2) | |||
Acquisition of treasury shares | (325.2) | (259.1) | (322.1) | |||
Payments of capital lease obligations | (5.4) | (5.1) | (7) | |||
Tommy Hilfiger India contingent purchase price payments | 0 | (0.8) | (0.6) | |||
Contributions from non-controlling interest | 0 | 1.7 | 2.2 | |||
Net cash used by financing activities | [2] | (478.5) | (509) | (304.7) | ||
Effect of exchange rate changes on cash and cash equivalents | (20.5) | 31.3 | 3 | |||
(Decrease) increase in cash and cash equivalents | (41.9) | (236.2) | 173.7 | |||
Cash and cash equivalents at beginning of year | 493.9 | 730.1 | 556.4 | |||
Cash and cash equivalents at end of year | 452 | 493.9 | 730.1 | |||
Senior Notes Due 2027 [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Proceeds from issuance of long-term debt, net of related fees | 0 | 701.6 | 0 | |||
Senior notes due 2022 [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Repayments of secured debt | 0 | (715.8) | 0 | |||
Senior Notes Due 2024 [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Proceeds from issuance of long-term debt, net of related fees | 0 | 0 | 389.6 | |||
2016 Facilities [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Proceeds from issuance of long-term debt, net of related fees | 0 | 0 | 571.1 | |||
2014 Facilities Term Loan B [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Repayments of secured debt | 0 | 0 | (582) | |||
2016 and 2014 facilities [Member] | ||||||
FINANCING ACTIVITIES | ||||||
Repayments of secured debt | $ (150) | $ (250) | $ (350) | |||
[1] | Includes the impact of the U.S. Tax Legislation in 2018 and 2017 and the impact of the 2019 Dutch Tax Plan in 2018. Please see Note 9 for further information. | |||||
[2] | Please see Note 19 for information on noncash investing and financing transactions. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital - Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Redeemable Non-controlling Interest [Member] | Total Stockholders' Equity | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ 0 | |||||||||
Balance at Jan. 31, 2016 | $ 0 | $ 83.5 | $ 2,822.5 | $ 2,561.2 | $ (704.2) | $ (210.7) | $ 4,552.3 | |||
Balance (in shares) at Jan. 31, 2016 | 83,545,818 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to PVH Corp. | $ 549 | 549 | 549 | |||||||
Foreign currency translation adjustments | (21.4) | (21.4) | (21.4) | |||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax | 0.7 | 0.7 | 0.7 | |||||||
Net gain (loss) on net investment hedges, net of tax | 14.1 | 14.1 | 14.1 | |||||||
Comprehensive income attributable to PVH Corp. | 542.4 | 542.4 | ||||||||
Settlement of awards under stock plans (in shares) | 377,366 | |||||||||
Settlement of awards under stock plans | $ 0.4 | 12.7 | 13.1 | |||||||
Tax deficiency from awards under stock plans | (7.2) | (7.2) | (7.2) | |||||||
Stock-based compensation expense | 38.2 | 38.2 | ||||||||
Cash dividends ($0.15 per share) | (12.2) | (12.2) | ||||||||
Acquisition of treasury shares during period | (315.1) | (322.1) | (322.1) | |||||||
Acquisition date fair value of redeemable non-controlling interest | 0.1 | |||||||||
Contributions from the minority shareholder | 2.2 | 2.2 | ||||||||
Net loss attributable to redeemable non-controlling interest | (0.3) | (0.3) | ||||||||
Balance at Jan. 29, 2017 | 0 | $ 83.9 | 2,866.2 | 3,098 | (710.8) | (532.8) | 4,804.5 | |||
Balance (in shares) at Jan. 29, 2017 | 83,923,184 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | 2 | |||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2016-09 [Member] | 1.1 | (0.8) | 0.3 | |||||||
Net income attributable to PVH Corp. | 537.8 | 537.8 | 537.8 | |||||||
Foreign currency translation adjustments | 561.3 | 561.3 | 561.3 | |||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax | (99.1) | (99.1) | (99.1) | |||||||
Net gain (loss) on net investment hedges, net of tax | (70.8) | (70.8) | (70.8) | |||||||
Comprehensive income attributable to PVH Corp. | 929.2 | 929.2 | ||||||||
Reclassification related to the adoption of accounting guidance for certain tax effects in connection with the U.S. Tax Legislation | 2.1 | (2.1) | [1] | 0 | ||||||
Settlement of awards under stock plans (in shares) | 927,895 | |||||||||
Settlement of awards under stock plans | $ 1 | 29 | 30 | |||||||
Stock-based compensation expense | 44.9 | 44.9 | ||||||||
Cash dividends ($0.15 per share) | (11.9) | (11.9) | ||||||||
Acquisition of treasury shares during period | (250.4) | (260.6) | (260.6) | |||||||
Contributions from the minority shareholder | 1.7 | 1.7 | ||||||||
Net loss attributable to redeemable non-controlling interest | (1.7) | (1.7) | ||||||||
Balance at Feb. 04, 2018 | $ 5,536.4 | 0 | $ 84.9 | 2,941.2 | 3,625.2 | (321.5) | (793.4) | 5,536.4 | ||
Balance (in shares) at Feb. 04, 2018 | 84,851,079 | 84,851,079 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ 2 | 2 | ||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2014-09 [Member] | (1.9) | (1.9) | ||||||||
Cumulative-effect adjustment related to the adoption of accounting guidance | Accounting Standards Update 2016-16 [Member] | (8) | (8) | ||||||||
Net income attributable to PVH Corp. | 746.4 | 746.4 | 746.4 | |||||||
Foreign currency translation adjustments | (361.3) | (361.3) | (361.3) | |||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax | 101.8 | 101.8 | 101.8 | |||||||
Net gain (loss) on net investment hedges, net of tax | 73.1 | 73.1 | 73.1 | |||||||
Comprehensive income attributable to PVH Corp. | 560 | 560 | ||||||||
Settlement of awards under stock plans (in shares) | 595,062 | |||||||||
Settlement of awards under stock plans | $ 0.5 | 19.9 | 20.4 | |||||||
Stock-based compensation expense | 56.2 | 56.2 | ||||||||
Cash dividends ($0.15 per share) | (11.6) | (11.6) | ||||||||
Acquisition of treasury shares during period | (300.1) | (323.7) | (323.7) | |||||||
Contributions from the minority shareholder | 0 | |||||||||
Net loss attributable to redeemable non-controlling interest | (1.8) | (1.8) | ||||||||
Balance at Feb. 03, 2019 | $ 5,827.8 | $ 0 | $ 85.4 | $ 3,017.3 | $ 4,350.1 | $ (507.9) | $ (1,117.1) | $ 5,827.8 | ||
Balance (in shares) at Feb. 03, 2019 | 85,446,141 | 85,446,141 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Redeemable Non-Controlling Interest | $ 0.2 | $ 0.2 | ||||||||
[1] | The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Net unrealized and realized gain (loss) related to effective cash flow hedges, tax expense | $ 3.2 | $ 0.1 | $ 1.2 |
Net gain (loss) on net investment hedges, tax expense (benefit) | $ 22.5 | $ (28.7) | $ 8.6 |
Cash dividends paid, per share | $ 0.15 | $ 0.15 | $ 0.15 |
Acquisition of treasury shares during period, number of shares repurchased | 2,370,193 | 2,300,657 | 3,313,810 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 03, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business — PVH Corp. and its consolidated subsidiaries (collectively, the “Company”) constitute a global apparel company with a brand portfolio consisting of nationally and internationally recognized trademarks, including TOMMY HILFIGER, CALVIN KLEIN, Van Heusen, IZOD, ARROW, Warner’s, Olga , True&Co. and Geoffrey Beene , which are owned, and Speedo , which is licensed in perpetuity for North America and the Caribbean, as well as various other owned, licensed and private label brands . The Company designs and markets branded dress shirts, neckwear, sportswear, jeanswear, performance apparel, intimate apparel, underwear, swimwear, swim products, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of products categories and for use in numerous discrete jurisdictions. Principles of Consolidation — The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion. The Company and Arvind Limited (“Arvind”) have 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 6 , “ Redeemable Non-Controlling Interest ,” for further discussion. Use of Estimates — The preparation of the consolidated 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 consolidated financial statements and accompanying notes. Actual results could differ materially from the estimates. Fiscal Year — The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to February 1. References to a year are to the Company’s fiscal year, unless the context requires otherwise. Results for 2018 , 2017 and 2016 represent the 52 weeks ended February 3, 2019 , 53 weeks ended February 4, 2018 and 52 weeks ended January 29, 2017 , respectively. Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents also includes amounts due from third party credit card processors for the settlement of customer debit and credit card transactions that are collectible in one week or less. The Company’s cash and cash equivalents at February 3, 2019 consisted principally of bank deposits and investments in money market funds. Accounts Receivable — Trade receivables, as presented in the Company’s Consolidated Balance Sheets, are net of returns and allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectibility based on historic trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. Costs associated with allowable customer markdowns and operational chargebacks, net of the expected recoveries, are part of the provision for allowances included in accounts receivable. These provisions result from seasonal negotiations, historical experience, and an evaluation of current market conditions. Goodwill and Other Intangible Assets — The Company assesses the recoverability of goodwill annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed two-step quantitative goodwill impairment test. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the fair value of a reporting unit is estimated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as used when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2018 annual goodwill impairment test, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2018 yielded estimated fair values in excess of the carrying amounts for the Company’s reporting units, all of which had fair values in excess of the carrying amounts by more than 50% , and therefore the second step of the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2018. For the 2017 annual goodwill impairment test, the Company elected to first assess qualitative factors to determine whether it was more likely than not that the fair value of any reporting unit was less than its carrying amount as a basis for determining whether it was necessary to perform the two-step goodwill impairment test. In evaluating whether it was more likely than not that the fair value of any reporting unit was less than its carrying amount, the Company assessed relevant events and circumstances including the change in the Company’s market capitalization and its implied impact on reporting unit fair value, industry and market conditions, a change in the Company’s weighted average cost of capital, macroeconomic conditions, trends in product costs and financial performance of the Company’s businesses. After assessing these events and circumstances, the Company determined that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount and concluded that the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2017. Indefinite-lived intangible assets not subject to amortization are tested for impairment annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed quantitative impairment test for its indefinite-lived intangible assets. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. When performing the quantitative test, an impairment loss is recognized if the carrying amount of the asset exceeds the fair value of the asset, which is generally determined using the estimated discounted cash flows associated with the asset’s use. Intangible assets with finite lives are amortized over their estimated useful lives and are tested for impairment along with other long-lived assets when events and circumstances indicate that the assets might be impaired. For the 2018 annual impairment test of all indefinite-lived intangible assets, except for the Geoffrey Beene tradename, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Geoffrey Beene tradename, since only a few months had passed since the acquisition on April 20, 2018 and there had not been any significant changes in the business, the Company determined qualitatively that it was not more likely than not that the fair value of this tradename was less than the carrying amount and concluded that the quantitative impairment test was not required. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2018. For the 2017 annual impairment test of certain indefinite-lived intangible assets, the Company elected to first assess qualitative factors to determine whether it was more likely than not that the fair value of any asset was less than its carrying amount. In performing this evaluation, the Company assessed relevant events and circumstances including industry and market conditions, a change in the Company’s weighted average cost of capital, macroeconomic conditions, trends in product costs and financial performance of the Company’s businesses. After assessing these events and circumstances, the Company determined that it was not more likely than not that the fair values of these certain indefinite-lived intangible assets were less than their carrying amounts and concluded that the quantitative impairment test was not required. For certain other indefinite-lived intangible assets impairment tests, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2017. Asset Impairments — The Company reviews for impairment of long-lived assets (excluding goodwill and other indefinite-lived intangible assets) when events and circumstances indicate that the assets might be impaired. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value. Please see Note 11 , “ Fair Value Measurements ,” for further discussion. Inventories — Inventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value, except for certain retail inventories in North America that are stated at the lower of cost or market using the retail inventory method. Cost for substantially all wholesale inventories in North America and certain wholesale inventories in Asia 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 either the lower of cost or net realizable value or the lower of cost or market using the retail inventory method, as applicable. Property, Plant and Equipment — Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is generally provided over the estimated useful lives of the related assets on a straight-line basis. The range of useful lives is principally as follows: Buildings and building improvements — 15 to 40 years; machinery, software and equipment — 2 to 10 years; furniture and fixtures — 2 to 10 years; and fixtures located in third party customer locations (“shop-in-shops”) and their related costs — 3 to 4 years. Leasehold improvements are depreciated using the straight-line method over the lesser of the term of the related lease or the estimated useful life of the asset. In certain circumstances, contractual renewal options are considered when determining the term of the related lease. Major additions and improvements that extend the useful life of the asset are capitalized, and repairs and maintenance are charged to operations in the period incurred. Depreciation expense totaled $ 263.9 million, $ 252.2 million and $ 228.4 million in 2018 , 2017 and 2016 , respectively. Cloud Computing Arrangements — The Company incurs costs to implement cloud computing arrangements that are hosted by a third party vendor. Generally, these arrangements are service contracts that do not provide the Company with the right to take possession of the software or the ability to run the software on its own hardware or contract with another party, other than the vendor, to host the software. As such, the costs incurred to implement the Company’s cloud computing arrangements have generally been expensed as incurred. The Financial Accounting Standards Board (“FASB”) issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. As described below in the section “ Accounting Guidance Issued But Not Adopted as of February 3, 2019 ,” the updated guidance aligns the requirements for capitalizing implementation costs incurred under cloud computing arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company will early adopt the new cloud computing guidance in the first quarter of 2019 using the prospective approach. Leases — The Company leases retail locations, warehouses, distribution centers, showrooms, office space and equipment. Assets held under capital leases are included in property, plant and equipment and are amortized over the lesser of the term of the related lease or the estimated useful life of the asset. The Company accounts for rent expense under noncancelable operating leases with scheduled rent increases and rent holidays on a straight-line basis over the lease term. The Company determines the lease term at the inception of a lease, and where renewal options are reasonably assured of being exercised because of the significant economic penalty that exists for not exercising those options, they are included in the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. For certain retail store leases that require variable lease payments based on sales, when sales at those locations exceed a stated base amount, additional rent expense is recognized when the liability is probable. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease space from the landlords. Such amounts are amortized as a reduction of rent expense over the life of the related lease. The FASB issued in February 2016 new guidance on leases. As described below in the section “ Accounting Guidance Issued But Not Adopted as of February 3, 2019 ,” the new guidance, among other changes, will require lessees to recognize a right-of-use asset and a lease liability in the balance sheet for most leases, but retains an expense recognition model similar to the current guidance. The Company will adopt the new lease guidance in the first quarter of 2019. Revenue Recognition — Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Revenue from the Company’s wholesale distribution of its products is generally recognized at the time title to the goods is passed and the risk of loss is transferred to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon receipt of goods by the customer. Revenue from the Company’s retail distribution of its products is recognized at the point of sale in its free-standing stores and shop-in-shop/concession locations and upon estimated time of delivery for sales through the Company’s digital commerce sites, at which point control of the products passes to the customer. The amount of revenue is recognized net of estimated returns, sales allowances and discounts offered to its customers. The Company estimates returns based on an analysis of historical experience and specific customer arrangements and estimates sales allowances and other discounts based on seasonal negotiations, historical experience and an evaluation of current market conditions. Royalty and advertising revenue from the Company’s license agreements, which are licenses of symbolic intellectual property, is recognized over time. For license agreements where the sales-based percentage fee exceeds the contractual minimum fee, the Company recognizes revenue as the licensed products are sold as reported to the Company by its licensees. For license agreements where the sales-based percentage fee does not exceed the contractual minimum fee, the Company recognizes the contractual minimum fee as revenue ratably over the contractual period. The Company sells gift cards to customers in its retail stores. The Company does not charge administrative fees on gift cards nor do they expire. Upon the purchase of a gift card by a customer, the Company records deferred revenue for the cash value of the gift card. Deferred revenue is relieved and revenue is recognized when the gift card is redeemed by the customer. The portion of gift cards that the Company does not expect to be redeemed (referred to as “breakage”) is recognized proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur, if the Company determines that it does not have a legal obligation to remit the value of such unredeemed gift cards to any jurisdiction. Gift card breakage was immaterial in each of the last three years. Certain of the Company’s retail operations use sales incentive programs, such as customer loyalty programs and the issuance of coupons. The Company’s loyalty programs offer customers of its retail businesses specified amounts off of future purchases for a specified period of time after certain levels of spending are achieved. Customers that are enrolled in the programs earn loyalty points for each purchase made. For each transaction where a customer earns loyalty points, the Company allocates revenue between the products purchased and the loyalty points earned based on the relative standalone selling prices. Revenue allocated to loyalty points is recorded as deferred revenue until the loyalty points are redeemed or expire. Costs associated with coupons are recorded as a reduction of revenue at the time of coupon redemption. The Company’s revenue recognition policy reflects changes made in 2018 following the adoption of the updated revenue recognition guidance. Please see the section “ Recently Adopted Accounting Guidance ” below for further discussion. Cost of Goods Sold and Selling, General and Administrative Expenses — Costs associated with the production and procurement of product are included in cost of goods sold, including inbound freight costs, purchasing and receiving costs, inspection costs and other product procurement related charges. Shipping and handling costs incurred by the Company associated with digital commerce transactions are also included in cost of goods sold, as well as the amounts recognized on foreign currency forward exchange contracts as the underlying inventory hedged by such forward exchange contracts is sold. Generally, all other expenses, excluding non-service related pension and post retirement (income) costs, interest and income taxes, are included in selling, general and administrative (“SG&A”) expenses, including warehousing and distribution expenses, as the predominant expenses associated therewith are general and administrative in nature, including rent, utilities, payroll and depreciation and amortization. Warehousing and distribution expenses, which are subject to exchange rate fluctuations, totaled $ 307.7 million, $ 272.6 million and $ 246.5 million in 2018 , 2017 and 2016 , respectively. Shipping and Handling Fees — Shipping and handling fees that are billed to customers are included in net sales, with costs recorded in cost of goods sold. Shipping and handling costs that occur after control of goods has been transferred to the customer and that are not billed to the customer are accounted for as fulfillment costs in SG&A expenses. Advertising — Advertising costs are expensed as incurred and are included in SG&A expenses. Advertising expenses, which are subject to exchange rate fluctuations, totaled $ 526.0 million, $501.3 million and $416.3 million in 2018 , 2017 and 2016 , respectively. Prepaid advertising expenses recorded in prepaid expenses and other assets totaled $ 7.3 million and $3.9 million at February 3, 2019 and February 4, 2018 , respectively. Costs associated with cooperative advertising programs, under which the Company shares the cost of a customer’s advertising expenditures, are treated as a reduction of revenue. Sales Taxes — The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. Income Taxes — Deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. Significant judgment is required in assessing the timing and amount of deductible and taxable items, evaluating tax positions and determining the income tax provision. The Company recognizes income tax benefits only when it is more likely than not that the tax position will be fully sustained upon review by taxing authorities, including resolution of related appeals or litigation processes, if any. If the recognition threshold is met, the Company measures the tax benefit at the largest amount with a greater than 50 percent likelihood of being realized upon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize any portion of that benefit in the financial statements. When the outcome of these tax matters changes, the change in estimate impacts the provision for income taxes in the period that such a determination is made. The Company recognizes interest and penalties related to unrecognized tax benefits in the Company’s income tax provision. The United States Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Legislation”) was enacted on December 22, 2017. The U.S. Tax Legislation is comprehensive and significantly revised the United States tax code. Please see Note 9 , “ Income Taxes ,” for further discussion of the U.S. Tax Legislation. Financial Instruments — The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows primarily associated with certain international inventory purchases. The Company 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 secured term loan facility. The Company enters into interest rate swap agreements to hedge against a portion of this exposure. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. 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 swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. Changes in fair value of the foreign currency forward exchange contracts primarily associated with certain international inventory purchases and the interest rate swap agreements 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”). Any ineffectiveness in such cash flow hedges is immediately recognized in earnings. The Company also 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, the Company designates certain foreign currency borrowings issued in the United States as a net investment hedge of its investments in certain of its foreign subsidiaries that use a functional currency other than the United States dollar. Changes in fair value of the foreign currency borrowings designated as net investment hedges are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its net investment hedges as of the beginning of each quarter. Any ineffectiveness in such net investment hedges is immediately recognized in earnings. The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”). Undesignated contracts include 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. Undesignated contracts also include foreign currency option contracts previously used by the Company to hedge against changes in foreign currency exchange rates related to the translation of the earnings of the Company’s subsidiaries that use a functional currency other than the United States dollar. The fair value of the foreign currency option contracts was estimated based on external valuation models, which used the original strike price, then current foreign currency exchange rates, the implied volatility in foreign currency exchange rates at the time and length of time to expiration as inputs. All foreign currency option contracts expired in 2017. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. Cash flows from the Company’s hedges are presented in the Consolidated Statements of Cash Flows in the same category as the items being hedged. Please see Note 10 , “ Derivative Financial Instruments ,” for further discussion. Foreign Currency Translation and Transactions — The consolidated financial statements of the Company are prepared in United States dollars. If the functional currency of a foreign subsidiary is not the United States dollar, assets and liabilities are translated to United States dollars at the closing exchange rate in effect at the applicable balance sheet date and revenue and expenses are translated to United States dollars at the average exchange rate for the applicable period. Gains and losses on the revaluation of intercompany loans made between foreign subsidiaries that are of a long-term investment nature are included in AOCL. Gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity, not including inventory purchases, are principally included in SG&A expenses and totaled a loss (gain) of $ 17.3 million, $ (10.2) million and $ 4.7 million in 2018 , 2017 and 2016 , respectively. Balance Sheet Classification of Early Settlements of Long-Term Obligations — The Company classifies obligations settled after the balance sheet date but prior to the issuance of the consolidated financial statements based on the contractual payment terms of the underlying agreements. Pension and Benefit Plans — Employee pension benefits earned during the year, as well as interest on the projected benefit obligations or accumulated benefit obligations, are accrued quarterly. The expected return on plan assets is recognized quarterly and determined by applying the expected long-term rate of return on assets to the actual fair value of plan assets adjusted for expected benefit payments, contributions and plan expenses. Actuarial gains and losses are recognized in the Company’s operating results in the year in which they occur. These gains and losses include the difference between the actual return on plan assets and the expected return that was recognized quarterly, as well as the change in the projected benefit obligation caused by actual experience and updated actuarial assumptions differing from those assumptions used to record service and interest cost throughout the year. Actuarial gains and losses are measured at least annually at the end of the Company’s fiscal year and, as such, are generally recorded during the fourth quarter of each year. The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 12 , “ Retirement and Benefit Plans ,” for further discussion of the Company’s pension and benefit plans. Stock-Based Compensation — The Company recognizes all share-based payments to employees and non-employee directors, net of actual forfeitures, as compensation expense in the consolidated financial statements based on their grant date fair values. Please see Note 13 , “Stock-Based Compensation,” for further discussion. Recently Adopted Accounting Guidance — The FASB issued in May 2014 guidance that superseded most of the previous 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 under the new guidance. The majority of the Company’s revenue is generated from sales of finished products, which continues to be recognized when control of the product is transferred to the customer. Under the guidance, the Company’s royalty and advertising revenue continues to be recognized over time, however, the timing of the recognition of revenue among quarters was affected for certain of the Company’s license agreements. For loyalty progra |
REVENUE
REVENUE | 12 Months Ended |
Feb. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company generates revenue primarily from sales of finished products under its owned and licensed trademarks through its wholesale and retail operations. The Company also generates royalty and advertising revenue from licensing the rights to its trademarks to third parties. Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Product Sales The Company generates revenue from the wholesale distribution of its products to traditional retailers (including for sale through their digital commerce sites), pure play digital commerce retailers, franchisees, licensees and distributors. Revenue is recognized upon transfer of control of goods to the customer, which generally occurs when title to goods is passed and risk of loss transfers to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon receipt of goods by the customer. Payment is typically due within 30 to 90 days. The amount of revenue recognized is net of returns, sales allowances and other discounts that the Company offers to its wholesale customers. The Company estimates returns based on an analysis of historical experience and specific customer arrangements and estimates sales allowances and other discounts based on seasonal negotiations, historical experience and an evaluation of current market conditions. The Company also generates revenue from the retail distribution of its products through its free-standing stores, shop-in-shop/concession locations and digital commerce sites. Revenue is recognized at the point of sale in the stores and shop-in-shop/concession locations and upon estimated time of delivery for sales through the Company’s digital commerce sites, at which point control of the products passes to the customer. The amount of revenue recognized is net of returns, which are estimated based on an analysis of historical experience. The Company excludes from revenue taxes collected from customers and remitted to government authorities related to sales of the Company’s products. Shipping and handling costs that are billed to customers are included in net sales, with costs recorded in cost of goods sold. Shipping and handling costs that occur after control of goods has been transferred to the customer and that are not billed to the customer are accounted for as fulfillment costs. Customer Loyalty Programs The Company uses loyalty programs that offer customers of its retail businesses specified amounts off of future purchases for a specified period of time after certain levels of spending are achieved. Customers that are enrolled in the programs earn loyalty points for each purchase made. Loyalty points earned under the customer loyalty programs provide the customer a material right to acquire additional products and give rise to the Company having a separate performance obligation. For each transaction where a customer earns loyalty points, the Company allocates revenue between the products purchased and the loyalty points earned based on the relative standalone selling prices. Revenue allocated to loyalty points is recorded as deferred revenue until the loyalty points are redeemed or expire. Gift Cards The Company sells gift cards to customers in its retail stores. Gift card purchases by a customer are prepayments for products to be provided by the Company in the future and are therefore considered to be performance obligations of the Company. Upon the purchase of a gift card by a customer, the Company records deferred revenue for the cash value of the gift card. Deferred revenue is relieved and revenue is recognized when the gift card is redeemed by the customer. The portion of gift cards that the Company does not expect to be redeemed (referred to as “breakage”) is recognized proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur, if the Company determines that it does not have a legal obligation to remit the value of such unredeemed gift cards to any jurisdiction. License Agreements The Company generates royalty and advertising revenue from licensing the rights to access its trademarks to third parties, including the Company’s joint ventures. The license agreements are generally exclusive to a territory or product category, have terms in excess of one year and, in most cases, include renewal options. In exchange for providing these rights, the license agreements require the licensees to pay the Company a royalty and, in certain agreements, an advertising fee. In both cases, the Company generally receives the greater of (i) a sales-based percentage fee and (ii) a contractual minimum fee for each annual performance period under the license agreement. In addition to the rights to access its trademarks, the Company provides ongoing support to its licensees over the term of the agreements. As such, the Company’s license agreements are licenses of symbolic intellectual property and, therefore, revenue is recognized over time. For license agreements where the sales-based percentage fee exceeds the contractual minimum fee, the Company recognizes revenues as the licensed products are sold as reported to the Company by its licensees. For license agreements where the sales-based percentage fee does not exceed the contractual minimum fee, the Company recognizes the contractual minimum fee as revenue ratably over the contractual period. Under the terms of the license agreements, payments are generally due quarterly from the licensees. The Company records deferred revenue when amounts are received or receivable from the licensee in advance of the recognition of revenue. As of February 3, 2019 , the contractual minimum fees related to future periods for all license agreements totaled $ 1.300 billion, of which the Company expects to recognize $ 292.8 million in 2019, $235.7 million in 2020 and $ 771.8 million thereafter. Deferred Revenue Changes in deferred revenue related to customer loyalty programs, gift cards and license agreements for the year ended February 3, 2019 were as follows: (In millions) 2018 Deferred revenue balance at February 4, 2018 $ 39.2 Impact of adopting the new revenue standard (1) 15.6 Net additions to deferred revenue during the period 61.3 Reductions in deferred revenue for revenue recognized during the period (2) (50.8 ) Deferred revenue balance at February 3, 2019 $ 65.3 (1) Please see Note 1, “Summary of Significant Accounting Policies,” for further discussion of the adoption of the new revenue standard. (2) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at February 4, 2018, as adjusted for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred after February 4, 2018. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $ 2.3 million and $ 3.9 million as of February 3, 2019 and February 4, 2018 , respectively. Optional Exemptions The Company elected not to disclose the remaining performance obligations for contracts that have an original expected term of one year or less ( e.g. , backlog of customer orders) and expected sales-based percentage fees for the portion of all license agreements not yet satisfied. Please see Note 20 , “ Segment Data ,” for information on the disaggregation of revenue by segment and distribution channel. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Feb. 03, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of the Geoffrey Beene Tradename The Company acquired on April 20, 2018 the Geoffrey Beene tradename from Geoffrey Beene, LLC (“Geoffrey Beene”). Prior to the acquisition, the Company had licensed the rights to design, market and distribute Geoffrey Beene dress shirts and neckwear from Geoffrey Beene. The tradename was acquired for $ 17.0 million, consisting of $ 15.9 million paid in cash, $ 0.7 million of royalties prepaid to Geoffrey Beene by the Company under the license agreement, and $ 0.4 million of liabilities assumed by the Company. The transaction was accounted for as an asset acquisition. Acquisition of the Wholesale and Concessions Businesses in Belgium and Luxembourg The Company acquired on September 1, 2017 the Tommy Hilfiger and Calvin Klein wholesale and concessions businesses in Belgium and Luxembourg from a former agent (the “Belgian acquisition”). As a result of the Belgian acquisition, the Company now operates directly the Tommy Hilfiger and Calvin Klein businesses in this region. The acquisition date fair value of the consideration paid was $ 12.0 million. The estimated fair value of assets acquired and liabilities assumed consisted of $ 12.4 million of goodwill and $ 0.4 million of other net liabilities. The goodwill of $ 12.4 million was assigned as of the acquisition date to the Company’s Tommy Hilfiger International and Calvin Klein International segments in the amounts of $ 11.1 million and $ 1.3 million, respectively, which are the Company’s reporting units that are expected to benefit from the synergies of the combination. Goodwill is not deductible for tax purposes. The Company finalized the purchase price allocation in 2018. Acquisition of True & Co. The Company acquired on March 30, 2017 True & Co., a direct-to-consumer intimate apparel digital commerce retailer. This acquisition enabled the Company to participate further in the fast-growing online channel and provided 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 consisted of $ 20.9 million of goodwill and $ 7.6 million of other net assets (including $ 7.3 million of deferred tax assets and $ 0.4 million of cash acquired). The goodwill of $ 20.9 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 $ 5.4 million, $ 4.8 million and $ 10.7 million, respectively, which include 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 and after the acquisition. Goodwill is not deductible for tax purposes. The Company finalized the purchase price allocation in 2017. 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. As a result of the TH China acquisition, the Company now operates directly the Tommy Hilfiger business in this market. 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 during 2016 of a pre-tax noncash gain of $ 153.1 million. 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. The total fair value of TH China (at 100% ) was $ 471.4 million. The estimated fair value of assets acquired and liabilities assumed consisted of $ 258.6 million of goodwill, $ 110.6 million of other intangible assets and $ 102.2 million of other net assets (including $ 105.3 million of cash acquired). The goodwill of $ 258.6 million was assigned as of the acquisition date to the Company’s Tommy Hilfiger International segment. Goodwill is not deductible for tax purposes. The other intangible assets of $ 110.6 million consisted of 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 2016. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Feb. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, was as follows: (In millions) 2018 2017 Land $ 1.0 $ 1.0 Buildings and building improvements 54.8 55.3 Machinery, software and equipment 697.6 609.5 Furniture and fixtures 540.0 494.9 Shop-in-shops 230.9 208.6 Leasehold improvements 790.3 724.5 Construction in progress 83.9 35.9 Property, plant and equipment, gross 2,398.5 2,129.7 Less: Accumulated depreciation (1,414.0 ) (1,229.9 ) Property, plant and equipment, net $ 984.5 $ 899.8 Construction in progress at February 3, 2019 and February 4, 2018 represents costs incurred for machinery, software and equipment, furniture and fixtures, and leasehold improvements not yet placed in use. Construction in progress at February 3, 2019 and February 4, 2018 principally related to upgrades and enhancements to operating, supply chain and logistics systems. Interest costs capitalized in construction in progress were immaterial during 2018 , 2017 and 2016 . |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Feb. 03, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES Included in other assets in the Company’s Consolidated Balance Sheets was $ 207.1 million as of February 3, 2019 and $ 208.4 million as of February 4, 2018 related to the following investments in unconsolidated affiliates: 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 TOMMY HILFIGER , CALVIN KLEIN and Van Heusen brand products in Australia, New Zealand and, in the cases of TOMMY HILFIGER and CALVIN KLEIN , other island nations in the South Pacific. Additionally, subsidiaries of PVH Australia sell apparel and related products under other owned and licensed trademarks. This investment is being accounted for under the equity method of accounting. The Company received dividends of $ 6.3 million, $ 3.1 million and $ 1.5 million from PVH Australia during 2018 , 2017 and 2016 , respectively. Gazal The Company acquired approximately 10% of the outstanding capital stock of Gazal Corporation Limited (“Gazal”), which is listed on the Australian Securities Exchange, in 2016 for $ 9.2 million. The Company acquired additional capital stock of Gazal for $ 7.5 million in 2017. The Company’s current ownership interest in Gazal is approximately 22% . The Company is deemed to have significant influence with respect to this investment, which is being accounted for under the equity method of accounting. Gazal is the Company’s joint venture partner in PVH Australia. The Company received dividends of $ 1.3 million and $ 0.6 million from Gazal during 2018 and 2017 , respectively. CK India The Company acquired a 51% economic interest in a joint venture, Calvin Klein Arvind Fashion Private Limited (“CK India”) in 2013. The Company sold 1% of its interest for $ 0.4 million in 2017, decreasing its economic interest in CK India to 50% . Prior to the sale, the Company was not deemed to hold a controlling interest in CK India as the shareholders agreement provided the partners with equal rights. This investment is being accounted for under the equity method of accounting. CK India licenses from a subsidiary of the Company the rights to the CALVIN KLEIN trademarks in India for certain product categories. The Company made payments of $ 1.6 million and $ 1.5 million to CK India during 2017 and 2016 , respectively, to contribute its share of the joint venture funding. 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 CK India, is also the Company’s joint venture partner in TH India. The Company made payments of $ 2.7 million to TH India during 2017 to contribute its share of the joint venture funding. TH Brazil The Company acquired a 40% economic interest in a joint venture, Tommy Hilfiger do Brasil S.A. (“TH Brazil”) in 2012. The Company acquired an approximately 1% additional interest for $ 0.3 million in 2017, increasing its economic interest in TH Brazil to approximately 41% . 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 payments of $ 2.5 million and $ 1.5 million to TH Brazil during 2017 and 2016 , respectively, to contribute its share of the joint venture funding. The Company issued a note receivable to TH Brazil in 2016 for $ 12.5 million, of which $ 6.2 million was repaid in 2016 and the remaining balance, including accrued interest, was repaid in 2017. PVH Mexico The Company and Grupo Axo, S.A.P.I. de C.V. (“Grupo Axo”) formed a joint venture (“PVH Mexico”) in 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 TOMMY HILFIGER , CALVIN KLEIN , 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 (the “Mexico deconsolidation”) and began accounting for its 49% interest under the equity method of accounting in 2016. In connection with the Mexico deconsolidation, the Company recorded a pre-tax noncash loss of $ 81.8 million in 2016 (including $ 56.7 million related to foreign currency translation adjustment losses previously recorded in AOCL) to write down the net assets of the Mexico business to fair value. The loss was included in other noncash gain, net in the Company’s Consolidated Income Statement for 2016. The fair value of the net assets of $ 64.3 million was estimated as the fair value of the 49% interest in PVH Mexico that the Company acquired upon its formation, based on future operating cash flow projections that were discounted at a rate of 15.0% , 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 Company made payments of $ 7.3 million to PVH Mexico during 2016 to contribute its share of the joint venture funding. Karl Lagerfeld The Company owns an economic interest of approximately 8% in Karl Lagerfeld Holding B.V. (“Karl Lagerfeld”). The Company is deemed to have significant influence with respect to this investment, which is being accounted for under the equity method of accounting. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 12 Months Ended |
Feb. 03, 2019 | |
Redeemable Non-Controlling Interest Disclosure [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | REDEEMABLE NON-CONTROLLING INTEREST The Company and Arvind formed PVH Ethiopia, in which the Company owns a 75% interest, during 2016. The Company consolidates PVH Ethiopia 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 2017. The shareholders agreement governing PVH Ethiopia (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 10% 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 PVH Ethiopia’s earnings before interest, taxes, depreciation and amortization for the prior 12 months, less PVH Ethiopia’s net debt. The fair value of the redeemable non-controlling interest (“RNCI”) as of the date of formation of PVH Ethiopia 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 or loss 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, decreased to $ 0.2 million as of February 3, 2019 from $ 2.0 million as of February 4, 2018 , resulting from a net loss attributable to the RNCI for 2018 of $ 1.8 million. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Feb. 03, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by segment (please see Note 20 , “ Segment Data ,” for 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 34.2 23.1 — — — — 57.3 True & Co. acquisition 5.4 4.8 — — 10.7 — 20.9 Belgian acquisition — 1.3 — 11.1 — — 12.4 Currency translation 1.2 48.3 — 224.7 — — 274.2 Balance as of February 4, 2018 Goodwill, gross 780.2 942.0 204.4 1,661.6 246.5 11.9 3,846.6 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.2 942.0 204.4 1,661.6 246.5 — 3,834.7 Contingent purchase price payments to Mr. Calvin Klein 1.0 0.7 — — — — 1.7 Currency translation (0.9 ) (33.2 ) — (131.8 ) — — (165.9 ) Balance as of February 3, 2019 Goodwill, gross 780.3 909.5 204.4 1,529.8 246.5 11.9 3,682.4 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 780.3 $ 909.5 $ 204.4 $ 1,529.8 $ 246.5 $ — $ 3,670.5 The Company was 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. Such payments were 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 were 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 were made were wholesale sales by the Company and its licensees and other partners to retailers. All payments due to Mr. Klein under the agreement have been made. All payments are subject to audit, as per the terms of the acquisition agreement. The Company’s other intangible assets consisted of the following: 2018 2017 (In millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization: Customer relationships $ 307.4 $ (186.1 ) $ 121.3 $ 324.7 $ (169.4 ) $ 155.3 Reacquired license rights 523.8 (154.4 ) 369.4 550.7 (124.4 ) 426.3 Total intangible assets subject to amortization 831.2 (340.5 ) 490.7 875.4 (293.8 ) 581.6 Indefinite-lived intangible assets: Tradenames 2,863.7 — 2,863.7 2,928.4 — 2,928.4 Perpetual license rights 203.8 — 203.8 204.7 — 204.7 Reacquired perpetual license rights 11.0 — 11.0 11.9 — 11.9 Total indefinite-lived intangible assets 3,078.5 — 3,078.5 3,145.0 — 3,145.0 Total other intangible assets $ 3,909.7 $ (340.5 ) $ 3,569.2 $ 4,020.4 $ (293.8 ) $ 3,726.6 The gross carrying amount and accumulated amortization of certain intangible assets include the impact of changes in foreign currency exchange rates. Amortization expense related to the Company’s intangible assets subject to amortization was $ 62.8 million and $65.0 million for 2018 and 2017 , respectively. Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the next five years related to the Company’s intangible assets subject to amortization as of February 3, 2019 is expected to be as follows: (In millions) Fiscal Year Amount 2019 $ 39.0 2020 39.0 2021 38.7 2022 36.5 2023 23.3 |
DEBT
DEBT | 12 Months Ended |
Feb. 03, 2019 | |
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. The Company had $ 7.8 million outstanding under these facilities as of February 3, 2019 . The weighted average interest rate on funds borrowed as of February 3, 2019 was 4.45% . The maximum amount of revolving borrowings outstanding under these facilities during 2018 was $ 274.4 million. The Company had no borrowings outstanding under these facilities as of February 4, 2018 . 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 $ 101.9 million based on exchange rates in effect on February 3, 2019 and are utilized primarily to fund working capital needs. The Company had $ 5.1 million and $ 19.5 million outstanding under these facilities as of February 3, 2019 and February 4, 2018 , respectively. The weighted average interest rate on funds borrowed as of February 3, 2019 and February 4, 2018 was 0.21 % and 1.19 %, respectively. The maximum amount of borrowings outstanding under these facilities during 2018 was $ 38.6 million. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 2018 2017 Senior secured Term Loan A facility due 2021 $ 1,643.8 $ 1,792.1 7 3/4% debentures due 2023 99.6 99.5 3 5/8% senior unsecured euro notes due 2024 (1) 396.5 430.8 3 1/8% senior unsecured euro notes due 2027 (1) 679.5 738.9 Total 2,819.4 3,061.3 Less: Current portion of long-term debt — — Long-term debt $ 2,819.4 $ 3,061.3 (1) The carrying amount of the Company’s senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. Please see Note 11 , “ Fair Value Measurements ,” for the fair value of the Company’s long-term debt as of February 3, 2019 and February 4, 2018 . As of February 3, 2019 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount 2019 $ — 2020 123.5 2021 1,525.8 2022 — 2023 100.0 Total debt repayments for the next five years exceed the total carrying amount of the Company’s Term Loan A facility and 7 3/4% debentures due 2023 as of February 3, 2019 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of February 3, 2019 , after taking into account the effect of the Company’s interest rate swap agreements discussed in the section entitled “2016 Senior Secured Credit Facilities,” which were in effect as of such date, approximately 50 % of the Company’s long-term debt had fixed interest rates, with the remainder at variable interest rates. 2016 Senior Secured Credit Facilities The Company has senior secured credit facilities due May 19, 2021 (the “2016 facilities”) that consist of a $ 2,347.4 million United States dollar-denominated Term Loan A facility and senior secured revolving credit facilities consisting of (i) a $ 475.0 million United States dollar-denominated revolving credit facility, (ii) a $ 25.0 million United States dollar-denominated revolving credit facility available in United States dollars and Canadian dollars and (iii) a € 185.9 million euro-denominated revolving credit facility available in euro, British pound sterling, Japanese yen and Swiss francs. The senior secured revolving credit facilities also include amounts available for 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 senior secured 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 senior secured revolving credit facilities (to the extent, in the case of voluntary prepayments of loans under the senior secured 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 Company had prior senior secured credit facilities (the “2014 facilities”) that were amended by the 2016 facilities on May 19, 2016 (the “Amendment Date”). Among other things, this 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 previously outstanding 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. 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 Company had loans outstanding of $ 1,643.8 million, net of original issue discounts and debt issuance costs, under the Term Loan A facility, $ 7.8 million of borrowings outstanding under the senior secured revolving credit facilities and $ 20.4 million of outstanding letters of credit under the senior secured revolving credit facilities as of February 3, 2019 . 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 $ 150.0 million, $ 250.0 million and $ 350.0 million during 2018 , 2017 and 2016 , respectively, on its term loans under the 2016 facilities and 2014 facilities. As a result of the voluntary repayments the Company has made to date, it is not required to make a long-term debt repayment until June 2020. 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, PVH B.V., 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 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 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 Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for the outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during 2018, 2017 and 2016: (In millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of February 3, 2019 Fixed Rate Expiration Date January 2019 February 2020 $ 50.0 $ — 2.4187% February 2021 November 2018 February 2019 139.2 — 2.8645% February 2021 October 2018 February 2019 115.7 — 2.9975% February 2021 June 2018 August 2018 50.0 50.0 2.6825% February 2021 June 2017 February 2018 306.5 181.5 1.566% February 2020 July 2014 February 2016 682.6 — 1.924% February 2018 The notional amounts of the outstanding interest rate swap that commenced in February 2018 and the interest rate swaps that will commence in February 2019 will be adjusted according to pre-set schedules during the terms of the swap agreements such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the 2016 facilities is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps. 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). 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 2016 facilities. 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 the Company’s collateral, which also secures some of its other indebtedness. 4 1/2% Senior Notes Due 2022 The Company had outstanding $700.0 million principal amount of 4 1/2% senior notes due December 15, 2022. The Company redeemed these notes on January 5, 2018 in connection with the issuance of € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027, as discussed below. The Company paid a premium of $ 15.8 million to the holders of these notes in connection with the redemption and recorded debt extinguishment costs of $ 8.1 million to write-off previously capitalized debt issuance costs associated with these notes during 2017. 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. The debentures are not redeemable at the Company’s option prior to maturity. 3 5/8% Euro Senior Notes Due 2024 The Company issued on June 20, 2016 € 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 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. The Company’s ability to create liens on the Company’s assets or engage in sale/leaseback transactions is restricted as defined in the indenture governing the notes. 3 1/8% Euro Senior Notes Due 2027 The Company issued on December 21, 2017 € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027. Interest on the notes is payable in euros. The Company paid € 8.7 million (approximately $ 10.3 million based on exchange rates in effect on the payment date) of fees during 2017 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 September 15, 2027 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 September 15, 2027 at their principal amount plus any accrued and unpaid interest. The Company’s ability to create liens on the Company’s assets or engage in sale/leaseback transactions is restricted as defined in the indenture governing the notes. Substantially all of the Company’s assets have been pledged as collateral to secure the Company’s obligations under its 2016 facilities and the 7 3/4% debentures due 2023. As of February 3, 2019 , the Company was in compliance with all applicable financial and non-financial covenants under its financing arrangements. Interest paid was $ 114.6 million, $120.2 million and $109.8 million during 2018 , 2017 and 2016 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of (loss) income before (benefit) provision for income taxes were as follows: (In millions) 2018 2017 2016 Domestic $ (5.3 ) $ (102.0 ) $ 60.9 Foreign 780.9 612.2 613.3 Total $ 775.6 $ 510.2 $ 674.2 The domestic loss before benefit for income taxes in 2018 and 2017 is primarily attributable to the domestic portion of certain non-recurring charges incurred in 2018 and 2017. Please see Note 20, “Segment Data,” for further discussion of these costs. Taxes paid were $ 138.4 million, $164.6 million and $85.3 million in 2018 , 2017 and 2016 , respectively. The provision (benefit) for income taxes attributable to income consisted of the following: (In millions) 2018 2017 2016 Federal: Current $ (30.5 ) $ 51.7 $ (2.7 ) Deferred (53.2 ) (1) (198.3 ) (1) (9.3 ) State and local: Current 4.6 3.5 (2.4 ) Deferred 9.6 (7.8 ) (0.9 ) Foreign: Current 170.2 143.5 129.3 Deferred (69.7 ) (2) (18.5 ) 11.5 Total $ 31.0 $ (25.9 ) $ 125.5 (1) Includes a $ 24.7 million benefit in 2018 and a $ 52.8 million benefit in 2017 related to the U.S. Tax Legislation. (2) Includes a $ 41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. The provision (benefit) for income taxes for the years 2018 , 2017 and 2016 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income as follows: 2018 2017 2016 Statutory federal income tax rate (1) 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal income tax benefit 0.5 % (1.1 )% 0.4 % Effects of international jurisdictions, including foreign tax credits (9.5 )% (2) (20.3 )% (12.9 )% Change in estimates for uncertain tax positions (3.7 )% (7.5 )% (3.7 )% Change in valuation allowance (5.3 )% (3) 11.0 % (4) (0.1 )% One-time transition tax due to U.S. Tax Legislation — % 34.0 % — % Remeasurement due to U.S. Tax Legislation 0.2 % (51.9 )% — % Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) 1.9 % — % — % Excess tax benefits related to stock-based compensation (0.6 )% (2.8 )% (5) — % Other, net (0.5 )% (0.2 )% (0.1 )% Effective income tax rate 4.0 % (5.1 )% 18.6 % (1) The United States statutory federal income tax rate changed from 35.0% to 21.0% , effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7% . (2) Includes a $ 41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the 2019 Dutch Tax Plan. (3) Includes the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $ 38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. (5) Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer. The Company files income tax returns in more than 40 international jurisdictions each year. Most of the international jurisdictions in which the Company files tax returns had lower statutory tax rates than the United States statutory tax rate in 2016 and in 2017 prior to the effective date of the U.S. Tax Legislation. A substantial amount of the Company’s earnings comes from international operations, particularly in the Netherlands and Hong Kong, where income tax rates, coupled with special rates levied on income from certain of our jurisdictional activities, continue to be lower than the United States statutory income tax rate after giving effect to the U.S. Tax Legislation, and reduced the Company’s consolidated effective income tax rate during 2018 , 2017 and 2016 . The effects of international jurisdictions, including foreign tax credits, reflected in the above table for 2018 , 2017 and 2016 included those taxes at statutory income tax rates and at special rates levied on income from certain jurisdictional activities. The Company expects to benefit from these special rates until 2022. The U.S. Tax Legislation enacted on December 22, 2017 significantly revised the United States tax code by, among other things, (i) reducing the corporate income tax rate from 35.0% to 21.0% , effective January 1, 2018, (ii) imposing a one-time transition tax on earnings of foreign subsidiaries deemed to be repatriated, (iii) implementing a modified territorial tax system, (iv) introducing a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations (known as “GILTI”) and a beneficial tax rate to be applied against foreign derived intangible income (known as “FDII”) and (v) introducing a base erosion anti-abuse tax measure (known as “BEAT”) that taxes certain payments between United States corporations and their subsidiaries. The Company recorded a provisional net tax benefit of $ 52.8 million in the fourth quarter of 2017 in connection with the U.S. Tax Legislation, consisting of a $ 265.0 million benefit primarily from the remeasurement of the Company’s net deferred tax liabilities to the lower United States corporate income tax rate, partially offset by a $ 38.5 million valuation allowance on the Company’s foreign tax credits and a $ 173.7 million transition tax on undistributed post-1986 earnings and profits of foreign subsidiaries deemed to be repatriated. The Company finalized its accounting related to the impacts of the U.S. Tax Legislation on the one-time transition tax liability, deferred taxes, valuation allowances, state tax considerations, and any remaining outside basis differences in the Company’s foreign subsidiaries during 2018. The analysis resulted in the Company recording an additional net tax benefit of $ 24.7 million to adjust the provisional net tax benefit recorded in the fourth quarter of 2017, during the measurement period allowed by the Securities and Exchange Commission. The net tax benefit included the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits, partially offset by a $ 1.6 million expense related to the remeasurement of the Company’s net deferred tax liabilities. The GILTI provisions of the U.S. Tax Legislation impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations for tax years beginning after December 31, 2017. The guidance indicates that companies must make a policy election to either record deferred taxes for basis differences expected to reverse as a result of the GILTI provisions in future years or treat any taxes on GILTI inclusions as period costs when incurred. The Company has completed its analysis of the tax effects of the GILTI provisions and has elected to account for these tax effects as period costs when incurred. The components of deferred income tax assets and liabilities were as follows: (In millions) 2018 2017 Gross deferred tax assets Tax loss and credit carryforwards $ 230.1 $ 247.0 Employee compensation and benefits 83.1 72.2 Inventories 26.8 22.1 Accounts receivable 17.1 17.6 Accrued expenses 30.2 25.5 Derivative financial instruments — 18.3 Other, net 13.8 8.7 Subtotal 401.1 411.4 Valuation allowances (62.6 ) (106.3 ) Total gross deferred tax assets, net of valuation allowances $ 338.5 $ 305.1 Gross deferred tax liabilities Intangibles $ (825.3 ) $ (898.9 ) Property, plant and equipment (33.6 ) (43.8 ) Derivative financial instruments (4.3 ) — Total gross deferred tax liabilities $ (863.2 ) $ (942.7 ) Net deferred tax liability $ (524.7 ) $ (637.6 ) At the end of 2018, the Company had on a tax effected basis approximately $ 240.4 million of net operating loss and tax credit carryforwards available to offset future taxable income in various jurisdictions. This included net operating loss carryforwards of approximately $ 3.2 million and $ 48.2 million for federal and various state and local jurisdictions, respectively, and $ 11.7 million for various foreign jurisdictions. The Company also had federal and state tax credit and other carryforwards of $ 177.3 million. The carryforwards expire principally between 2019 and 2038. Prior to the enactment of the U.S. Tax Legislation, the Company's undistributed foreign earnings were considered permanently reinvested and, as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the U.S. Tax Legislation, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the U.S. Tax Legislation were deemed to have been repatriated and, as a result, the Company recorded a one-time transition tax of $ 173.7 million in 2017. The Company's intent is to reinvest indefinitely substantially all of its foreign earnings outside of the United States. However, if the Company decides at a later date to repatriate these earnings to the United States, the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding tax and United States state income taxes. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation. Uncertain tax positions activity for each of the last three years was as follows: (In millions) 2018 2017 2016 Balance at beginning of year $ 297.1 $ 245.6 $ 226.8 Increases related to prior year tax positions 13.9 15.4 2.8 Decreases related to prior year tax positions (24.9 ) (10.3 ) (9.9 ) Increases related to current year tax positions 25.5 79.7 52.0 Lapses in statute of limitations (54.7 ) (46.3 ) (24.4 ) Effects of foreign currency translation (8.6 ) 13.0 (1.7 ) Balance at end of year $ 248.3 $ 297.1 $ 245.6 The entire amount of uncertain tax positions as of February 3, 2019 , if recognized, would reduce the future effective tax rate under current accounting guidance. Interest and penalties related to uncertain tax positions are recorded in the Company’s income tax provision. Interest and penalties recognized in the Company’s Consolidated Income Statements for the years 2018 , 2017 and 2016 totaled an expense of $ 12.1 million, $0.9 million and $1.0 million, respectively. Interest and penalties accrued in the Company’s Consolidated Balance Sheets as of February 3, 2019 , February 4, 2018 and January 29, 2017 totaled $ 44.1 million, $29.8 million and $27.8 million, respectively. The Company recorded its liabilities for uncertain tax positions principally in accrued expenses and other liabilities in its Consolidated Balance Sheets. The Company files income tax returns in the United States and in various foreign, state and local jurisdictions. Most examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through 2006. It is reasonably possible that a reduction of uncertain tax positions in a range of $ 40.0 million to $ 65.0 million may occur within 12 months of February 3, 2019 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Feb. 03, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 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 8 , “ Debt ,” for further discussion of the 2016 facilities and these agreements. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward exchange contracts associated with certain international inventory purchases and the interest rate swap agreements are designated as effective hedging instruments (collectively referred to as “cash flow hedges”). The changes in the fair value of the cash flow hedges are recorded in equity as a component of AOCL. No amounts were excluded from effectiveness testing. There was no ineffective portion of the cash flow hedges during 2018, 2017 and 2016. Net Investment Hedges 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, the Company designated the carrying amounts of its € 600.0 million euro-denominated principal amount of 3 1/8% senior notes due 2027 and € 350.0 million euro-denominated principal amount of 3 5/8% senior notes due 2024 (collectively referred to as the “foreign currency borrowings”), that it had issued in the United States, as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. Please see Note 8 , “ Debt ,” for 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 net investment hedges, 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 net investment hedges were $ 1,098.3 million and $ 1,076.0 million, respectively, as of February 3, 2019 and $ 1,226.7 million and $ 1,169.7 million, respectively, as of February 4, 2018 . The Company evaluates the effectiveness of its net investment hedges at inception and at the beginning of each quarter thereafter. No amounts were excluded from effectiveness testing. There was no ineffective portion of the net investment hedges during 2018, 2017 and 2016. 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, the Company entered into several foreign currency option contracts during 2017 and 2016. These contracts represented the Company’s purchase of euro put/United States dollar call options and Chinese yuan renminbi put/United States dollar call options. All foreign currency option contracts expired in 2017. The Company’s foreign currency option contracts were also undesignated contracts. As such, the changes in the fair value of these foreign currency option contracts were immediately recognized in earnings. This mitigated, to an extent, the effect of any strengthening of the 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 cash flows from the Company’s hedges are presented in the same category in the Company’s Consolidated Statements of Cash Flows as the items being hedged. The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: (In millions) Assets Liabilities 2018 2017 2018 2017 Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 24.0 $ 0.7 $ 0.9 $ 0.1 $ 3.5 $ 0.7 $ 62.4 $ 4.1 Interest rate swap agreements 1.4 0.0 1.1 1.3 1.2 1.6 0.1 — Total contracts designated as cash flow hedges 25.4 0.7 2.0 1.4 4.7 2.3 62.5 4.1 Undesignated contracts: Foreign currency forward exchange contracts 0.1 — 0.5 — 2.0 — 0.9 — Total $ 25.5 $ 0.7 $ 2.5 $ 1.4 $ 6.7 $ 2.3 $ 63.4 $ 4.1 The notional amount outstanding of foreign currency forward exchange contracts was $ 1,183.6 million at February 3, 2019 . Such contracts expire principally between February 2019 and June 2020. The following table summarizes the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain (Loss) Recognized in Other Comprehensive (Loss) Income (Loss) Gain Reclassified from AOCL into (Expense) Income (In millions) Location Amount 2018 2017 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 97.1 $ (122.0 ) Cost of goods sold $ (11.6 ) $ (13.6 ) Interest rate swap agreements (2.6 ) 3.2 Interest expense 1.1 (6.2 ) Foreign currency borrowings (net investment hedges) 95.6 (99.5 ) N/A — — Total $ 190.1 $ (218.3 ) $ (10.5 ) $ (19.8 ) A net gain in AOCL on foreign currency forward exchange contracts at February 3, 2019 of $ 32.1 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 gain in AOCL for interest rate swap agreements at February 3, 2019 of $ 0.2 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 substantially complete liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Income Statements: Loss Recognized in Expense (In millions) 2018 2017 Foreign currency forward exchange contracts $ (1.5 ) $ (4.6 ) Foreign currency option contracts — (4.3 ) The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of February 3, 2019 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Feb. 03, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy prioritizes the inputs used to measure fair value 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) 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 24.8 N/A $ 24.8 N/A $ 1.5 N/A $ 1.5 Interest rate swap agreements N/A 1.4 N/A 1.4 N/A 2.4 N/A 2.4 Total Assets N/A $ 26.2 N/A $ 26.2 N/A $ 3.9 N/A $ 3.9 Liabilities: Foreign currency forward exchange contracts N/A $ 6.2 N/A $ 6.2 N/A $ 67.4 N/A $ 67.4 Interest rate swap agreements N/A 2.8 N/A 2.8 N/A 0.1 N/A 0.1 Total Liabilities N/A $ 9.0 N/A $ 9.0 N/A $ 67.5 N/A $ 67.5 The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the interest rate swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. Pursuant to the agreement governing the reacquisition of the rights in India to the TOMMY HILFIGER trademarks (which the Company entered into in September 2011), the Company was required to make annual contingent purchase price payments, with the final payment made in 2017. The Company was required to remeasure this liability at fair value on a recurring basis and classified this as a Level 3 measurement. The following table presents the change in the Level 3 contingent purchase price payment liability during 2017 : (In millions) 2017 Beginning Balance $ 1.6 Payments (0.8 ) Adjustments included in earnings (0.8 ) Ending Balance $ — There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. The following table shows the fair value of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a non-recurring basis (consisting of property, plant and equipment) during 2018 , 2017 and 2016, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments Level 1 Level 2 Level 3 2018 N/A N/A $ 0.6 $ 0.6 $ 17.9 2017 N/A N/A 0.6 0.6 7.5 2016 N/A N/A 0.4 0.4 10.1 Long-lived assets with a carrying amount of $18.5 million were written down to a fair value of $0.6 million during 2018 in connection with the financial performance in certain of the Company’s retail stores and shop-in-shops, and the closure of the CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ). Please see Note 17 , “ Exit Activity Costs ,” for further discussion. Fair value of the Company’s retail stores and shop-in-shops was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $17.9 million impairment charge was included in SG&A expenses, of which $0.2 million was recorded in the Tommy Hilfiger North America segment, $1.6 million was recorded in the Tommy Hilfiger International segment, $5.1 million was recorded in the Calvin Klein North America segment, $8.5 million was recorded in the Calvin Klein International segment and $2.5 million was recorded in the Heritage Brands Wholesale segment. Long-lived assets with a carrying amount of $8.1 million were written down to a fair value of $0.6 million during 2017 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $7.5 million impairment charge was included in SG&A expenses, of which $0.4 million was recorded in the Tommy Hilfiger North America segment, $1.9 million was recorded in the Tommy Hilfiger International segment, $1.8 million was recorded in the Calvin Klein North America segment and $3.4 million was recorded in the Calvin Klein International segment. Long-lived assets with a carrying amount of $10.5 million were written down to a fair value of $0.4 million during 2016 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $10.1 million impairment charge was included in SG&A expenses, of which $1.4 million was recorded in the Tommy Hilfiger North America segment, $4.0 million was recorded in the Tommy Hilfiger International segment, $1.0 million was recorded in the Calvin Klein North America segment and $3.7 million was recorded in the Calvin Klein International segment. The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows: (In millions) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 452.0 $ 452.0 $ 493.9 $ 493.9 Short-term borrowings 12.8 12.8 19.5 19.5 Long-term debt 2,819.4 2,853.7 3,061.3 3,140.9 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 year. 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. |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 12 Months Ended |
Feb. 03, 2019 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company, as of February 3, 2019 , has five noncontributory qualified defined benefit pension plans 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 plans as its “Pension Plans.” The Company also has three noncontributory unfunded non-qualified supplemental defined benefit pension plans, including: – A plan for certain current and former members of Tommy Hilfiger’s domestic senior management. The plan is frozen and, as a result, participants do not accrue additional benefits. – A capital accumulation program for certain current and former senior executives. Under the individual participants’ agreements, the participants in the program will receive a predetermined amount during the ten 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 ten years and has attained age 55 . – A plan for certain employees resident in the United States who meet certain age and service requirements that 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 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. 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 the applicable plan, both of which are unfunded and frozen. The Company refers to these two plans as its “Postretirement Plans.” Reconciliations of the changes in the projected benefit obligation (Pension Plans and SERP Plans) and the accumulated benefit obligation (Postretirement Plans) were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2018 2017 2018 2017 Balance at beginning of year $ 648.0 $ 627.5 $ 96.9 $ 87.6 $ 10.5 $ 11.4 Service cost, net of plan expenses 31.4 26.3 5.8 4.5 — — Interest cost 26.0 25.7 3.9 3.8 0.4 0.4 Benefit payments (26.0 ) (29.4 ) (6.1 ) (5.1 ) — — Benefit payments, net of retiree contributions — — — — (1.4 ) (1.6 ) Plan curtailments — (0.3 ) — — — — Plan settlements — (65.3 ) — — — — Actuarial (gain) loss (28.4 ) 63.5 (1.3 ) 6.1 (1.1 ) 0.3 Balance at end of year $ 651.0 $ 648.0 $ 99.2 $ 96.9 $ 8.4 $ 10.5 The actuarial gains in 2018 were due principally to increases in the discount rates. The actuarial losses in 2017 were due principally to decreases in the discount rates. In 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 retiree participants who had 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 non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statement for 2017. The amount of the pension benefit obligation settled was $ 65.3 million. Reconciliations of the fair value of the assets held by the Pension Plans and the funded status were as follows: (In millions) 2018 2017 Fair value of plan assets at beginning of year $ 660.6 $ 659.5 Actual return, net of plan expenses (7.8 ) 95.5 Benefit payments (26.0 ) (29.4 ) Plan settlements — (65.3 ) Company contributions 10.0 0.3 Fair value of plan assets at end of year $ 636.8 $ 660.6 Funded status at end of year $ (14.2 ) $ 12.6 Amounts recognized in the Company’s Consolidated Balance Sheets were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2018 2017 2018 2017 Non-current assets $ 1.8 $ 19.1 $ — $ — $ — $ — Current liabilities — — (7.4 ) (7.4 ) (1.1 ) (1.4 ) Non-current liabilities (16.0 ) (6.5 ) (91.8 ) (89.5 ) (7.3 ) (9.1 ) Net amount recognized $ (14.2 ) $ 12.6 $ (99.2 ) $ (96.9 ) $ (8.4 ) $ (10.5 ) The components of net benefit cost recognized were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 33.7 $ 27.3 $ 25.2 $ 5.8 $ 4.5 $ 4.4 $ — $ — $ — Interest cost 26.0 25.7 29.8 3.9 3.8 3.9 0.4 0.4 0.5 Actuarial loss (gain) 17.4 (3.9 ) (35.4 ) (1.3 ) 6.1 (0.7 ) (1.1 ) 0.3 (3.0 ) Expected return on plan assets (40.3 ) (38.6 ) (35.9 ) — — — — — — Amortization of prior service cost (credit) 0.1 0.1 0.0 — (0.0 ) (0.1 ) — — (0.3 ) Curtailment gain — (0.3 ) — — — — — — — Settlement loss — 9.4 — — — — — — — Total $ 36.9 $ 19.7 $ (16.3 ) $ 8.4 $ 14.4 $ 7.5 $ (0.7 ) $ 0.7 $ (2.8 ) The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 1, “Summary of Significant Accounting Policies,” for further discussion of the updated guidance related to the presentation of net benefit cost. The actuarial gains in 2018 were due principally to increases in the discount rates. For the Pension Plans, these gains were more than offset by the actuarial loss as a result of the difference between the actual and expected returns on plan assets. Amortization of prior service credits recognized in other comprehensive (loss) income for Pension Plans, SERP Plans, and Postretirement Plans was immaterial during 2018 , 2017 and 2016 . Pre-tax amounts in AOCL that had not yet been recognized as components of net benefit cost in the Pension Plans, SERP Plans and Postretirement Plans were immaterial as of February 3, 2019 and February 4, 2018 . Pre-tax amounts in AOCL as of February 3, 2019 expected to be recognized as components of net benefit cost in 2019 in the Pension Plans, SERP Plans and Postretirement Plans were immaterial. The accumulated benefit obligation (Pension Plans and SERP Plans) were as follows: Pension Plans SERP Plans (In millions) 2018 2017 2018 2017 Accumulated benefit obligation $ 598.9 $ 595.6 $ 81.5 $ 79.6 In 2018, three of the Company’s Pension Plans had projected benefit obligations in excess of plan assets and two of the Company’s Pension Plans had accumulated benefit obligations in excess of plan assets. In 2017, two of the Company’s Pension Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. The balances were as follows: (In millions, except plan count) 2018 2017 Number of plans with projected benefit obligations in excess of plan assets 3 2 Aggregate projected benefit obligation $ 634.7 $ 41.6 Aggregate fair value of related plan assets $ 618.8 $ 35.1 Number of plans with accumulated benefit obligations in excess of plan assets 2 2 Aggregate accumulated benefit obligation $ 38.5 $ 37.4 Aggregate fair value of related plan assets $ 38.0 $ 35.1 In 2018 and 2017, all of the Company’s SERP Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets as the plans are unfunded. Significant weighted average rate assumptions used in determining the projected and accumulated benefit obligations at the end of each year and benefit cost in the following year were as follows: 2018 2017 2016 Discount rate (applies to Pension Plans and SERP Plans) 4.35 % 4.08 % 4.59 % Discount rate (applies to Postretirement Plans) 4.16 % 3.91 % 4.04 % Rate of increase in compensation levels (applies to Pension Plans) 4.24 % 4.24 % 4.27 % Expected long-term rate of return on assets (applies to Pension Plans) 6.50 % 6.25 % 6.50 % To develop the expected long-term rate of return on assets assumption, the Company considered the historical level of the risk premium associated with the asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation. The assets of the Pension Plans are invested with the objective of being able to meet current and future benefit payment needs, while managing future contributions. The investment policy aims to earn a reasonable rate of return while minimizing the risk of large losses. Assets are diversified by asset class in order to reduce volatility of overall results from year to year and to take advantage of various investment opportunities. The assets of the Pension Plans are diversified among United States equities, international equities, fixed income investments and cash. The strategic target allocation for the majority of the Pension Plans as of February 3, 2019 was approximately 40% United States equities, 20% international equities and 40% fixed income investments and cash. Equity securities primarily include investments in large-, mid- and small-cap companies located in the United States and abroad. Fixed income securities include corporate bonds of companies from diversified industries, municipal bonds, collective funds and United States Treasury bonds. Actual investment allocations may vary from the Company’s target investment allocations due to prevailing market conditions. In accordance with the fair value hierarchy described in Note 11 , “ Fair Value Measurements ,” the following tables show the fair value of the total assets of the Pension Plans for each major category as of February 3, 2019 and February 4, 2018 : (In millions) Fair Value Measurements as of February 3, 2019 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 170.9 $ 170.9 $ — $ — International equities (2) 12.2 12.2 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 126.5 60.3 66.2 — Fixed income securities: Government securities (5) 70.3 — 70.3 — Corporate securities (5) 173.7 — 173.7 — Short-term investment funds (6) 16.7 — 16.7 — Total return mutual fund (7) 6.3 6.3 — — Subtotal $ 635.5 $ 249.7 $ 385.8 $ — Other assets and liabilities (8) 1.3 Total $ 636.8 (In millions) Fair Value Measurements as of February 4, 2018 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 179.8 $ 179.8 $ — $ — International equities (2) 13.0 13.0 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 140.0 65.6 74.4 — Fixed income securities: Government securities (5) 58.1 — 58.1 — Corporate securities (5) 183.3 — 183.3 — Short-term investment funds (6) 18.4 — 18.4 — Total return mutual fund (7) 6.6 6.6 — — Subtotal $ 658.1 $ 265.0 $ 393.1 $ — Other assets and liabilities (8) 2.5 Total $ 660.6 (1) The Company uses third party pricing services to determine the fair values of the financial instruments held by the Pension Plans. The Company obtains an understanding of the pricing services’ valuation methodologies and related inputs and validates a sample of prices provided by the pricing services by reviewing prices from other pricing sources and analyzing pricing data in certain instances. The Company has not adjusted any prices received from the third party pricing services. (2) Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. (3) Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. (4) Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. (5) Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. (6) Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. (7) Valued at the net asset value of the fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities. (8) This category includes other pension assets and liabilities such as pending trades and accrued income. The Company believes that there are no significant concentrations of risk within the plan assets as of February 3, 2019 . Currently, the Company does not expect to make material contributions to the Pension Plans in 2019. The Company’s actual contributions may differ from planned contributions due to many factors, including changes in tax and other laws, as well as significant differences between expected and actual pension asset performance or interest rates. The expected benefit payments associated with the Pension Plans and SERP Plans, and expected benefit payments, net of retiree contributions, associated with the Postretirement Plans are as follows: (In millions) Fiscal Year Pension Plans SERP Plans Postretirement Plans 2019 $ 25.5 $ 7.4 $ 1.1 2020 26.1 8.3 1.0 2021 27.0 8.8 1.0 2022 28.1 11.6 0.9 2023 29.1 10.6 0.8 2024-2028 164.1 51.1 3.1 A 1% change in the assumed medical health care cost trend rate for the Postretirement Plans would not have a material impact on the Company’s net benefit cost for 2018 or the accumulated benefit obligation at February 3, 2019 . The Company has savings and retirement plans and a supplemental savings plan for the benefit of its eligible employees in the United States who elect to participate. The Company matches a portion of employee contributions to the plans. The Company also has a defined contribution plan for certain employees associated with certain businesses acquired in the Tommy Hilfiger acquisition, whereby the Company pays a percentage of the contribution for the employee. The Company’s contributions to these plans were $ 25.4 million, $22.1 million and $19.7 million in 2018 , 2017 and 2016 , respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Feb. 03, 2019 | |
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”). 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 (“stock options”); (ii) incentive stock options; (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. Awards granted under the 2006 Plan are classified as equity awards, which are recorded in stockholders’ equity in the Company’s Consolidated Balance Sheets. Through February 3, 2019 , the Company has granted under the 2006 Plan (i) service-based stock options, RSUs and restricted stock; and (ii) contingently issuable PSUs and RSUs. All restricted stock granted by the Company was fully vested at the end of 2015. 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 an RSU or PSU award reduces the number available by two shares. Total shares available for grant at February 3, 2019 amounted to 5.1 million shares. Net income for 2018 , 2017 and 2016 included $ 56.2 million, $44.9 million and $38.2 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $ 8.9 million, $ 8.8 million and $ 11.5 million, respectively. The Company adopted in 2017 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 2017 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. The Company receives a tax deduction for certain transactions associated with its stock-based plan awards. The actual income tax benefits realized from these transactions in 2018 , 2017 and 2016 were $ 13.2 million, $ 27.2 million and $6.6 million, respectively. The tax benefits realized in 2018 and 2017 included discrete net excess tax benefits of $ 4.9 million and $ 15.4 million, respectively, which were recognized in the Company’s provision for income taxes. Prior to the Company’s adoption in 2017 of the update to accounting guidance for share-based payment award transactions, the Company recognized excess tax benefits or tax deficiencies in equity as a component of additional paid in capital. Such amount was a net excess tax deficiency of $ 7.2 million in 2016. Stock Options Stock options granted to employees are generally exercisable in four equal annual installments commencing one year after the date of grant. The underlying stock option award agreements generally provide for accelerated vesting upon the award recipient’s retirement (as defined in the 2006 Plan). Such stock options are granted with a 10-year term and the per share exercise price cannot be less than the closing price of the common stock on the date of grant. The Company estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton model. The estimated fair value of the stock options granted is expensed over the stock options’ vesting periods. The following summarizes the assumptions used to estimate the fair value of stock options granted during 2018 , 2017 and 2016 and the resulting weighted average grant date fair value per stock option: 2018 2017 2016 Weighted average risk-free interest rate 2.78 % 2.10 % 1.45 % Weighted average expected stock option term (in years) 6.25 6.25 6.25 Weighted average Company volatility 26.92 % 29.46 % 34.54 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 51.66 $ 33.50 $ 35.62 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 stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock 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 stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. Stock option activity for the year was as follows: (In thousands, except years and per stock option data) Stock Options Weighted Average Exercise Price Per Stock Option Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at February 4, 2018 921 $ 102.18 6.6 $ 45,020 Granted 86 158.53 Exercised 200 103.04 Cancelled 16 116.31 Outstanding at February 3, 2019 791 $ 107.81 6.1 $ 6,568 Exercisable at February 3, 2019 463 $ 102.05 4.9 $ 4,833 The aggregate grant date fair value of stock options granted during 2018 , 2017 and 2016 was $ 4.4 million, $ 4.8 million and $ 8.4 million, respectively. The aggregate grant date fair value of stock options that vested during 2018 , 2017 and 2016 was $ 6.5 million, $ 7.2 million and $ 6.9 million, respectively. The aggregate intrinsic value of stock options exercised during 2018, 2017 and 2016 was $ 10.9 million, $56.9 million and $6.9 million, respectively. At February 3, 2019 , there was $ 4.4 million of unrecognized pre-tax compensation expense related to non-vested stock options, which is expected to be recognized over a weighted average period of 1.1 years. RSUs 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 year was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 4, 2018 917 $ 103.90 Granted 339 157.85 Vested 328 107.10 Cancelled 81 117.28 Non-vested at February 3, 2019 847 $ 122.97 The aggregate grant date fair value of RSUs granted during 2018 , 2017 and 2016 was $ 53.5 million, $ 46.0 million and $38.8 million, respectively. The aggregate grant date fair value of RSUs vested during 2018 , 2017 and 2016 was $ 35.1 million, $28.7 million and $17.3 million, respectively. At February 3, 2019 , there was $ 61.6 million of unrecognized pre-tax compensation expense related to non-vested RSUs, which is expected to be recognized over a weighted average period of 1.7 years. PSUs Contingently issuable PSUs granted to certain of the Company’s senior executives since 2015 are subject to a three-year performance period. For such awards, the final number of shares to be earned, if any, is contingent upon the Company’s achievement of goals for the applicable performance period, of which 50% is based upon the Company’s absolute stock price growth during the applicable performance period and 50% is based upon the Company’s total shareholder return during the applicable performance period relative to other companies included in the S&P 500 as of the date of grant. For awards granted in 2015, the three-year performance period ended during 2018. Holders of the awards earned an aggregate of 78,000 shares, which was between the target and maximum levels. 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 was established for each grant on the grant date using the Monte Carlo simulation model. The following summarizes the assumptions used to estimate the fair value of PSUs granted during 2018 , 2017 and 2016 and the resulting weighted average grant date fair value per PSU: 2018 2017 2016 Risk-free interest rate 2.62 % 1.49 % 1.04 % Expected Company volatility 29.78 % 31.29 % 28.33 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 159.53 $ 96.81 $ 87.16 Certain of the awards granted in 2018 , 2017 and 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 7.09% in 2018, 12.67% in 2017 and 12.99% in 2016 for the restriction of liquidity, which was calculated using the Chaffe model. PSU activity for the year was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 4, 2018 197 $ 93.97 Granted at target 44 159.53 Change due to market condition achieved above target 32 101.23 Vested 78 101.23 Cancelled 1 143.65 Non-vested at February 3, 2019 194 $ 106.76 The aggregate grant date fair value of PSUs granted during 2018 , 2017 and 2016 was $ 7.0 million, $7.0 million and $6.9 million, respectively. The aggregate grant date fair value of PSUs that vested during 2018 and 2016 was $ 4.6 million and $3.0 million, respectively. No PSUs vested in 2017. PSUs in the above table are subject to market conditions. As such, the non-vested PSUs are reflected at the target level, which is consistent with how expense will be recorded, regardless of the numbers of shares that will actually be earned. At February 3, 2019 , there was $ 3.8 million of unrecognized pre-tax compensation expense related to non-vested PSUs, which is expected to be recognized over a weighted average period of 0.7 years. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 03, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' 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. On March 26, 2019, the Board of Directors authorized a further $ 750.0 million increase to the program and extended it to June 3, 2023. 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 2018 , 2017 and 2016 , the Company purchased 2.2 million, 2.2 million and 3.2 million shares, respectively, of its common stock under the program in open market transactions for $ 300.1 million, $ 250.4 million and $ 315.1 million, respectively. As of February 3, 2019 , the repurchased shares were held as treasury stock and $ 258.3 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 restricted stock, RSUs and PSUs to satisfy tax withholding requirements. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Feb. 03, 2019 | |
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: (In millions) Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance at January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 490.5 (1)(2) (116.0 ) 374.5 Less: Amounts reclassified from AOCL — (16.9 ) (16.9 ) Other comprehensive income (loss) 490.5 (99.1 ) 391.4 Impact of the U.S. Tax Legislation (4) (2.2 ) 0.1 (2.1 ) Balance at February 4, 2018 $ (249.4 ) $ (72.1 ) $ (321.5 ) Other comprehensive (loss) income before reclassifications (288.2 ) (1)(3) 92.0 (196.2 ) Less: Amounts reclassified from AOCL — (9.8 ) (9.8 ) Other comprehensive (loss) income (288.2 ) 101.8 (186.4 ) Balance at February 3, 2019 $ (537.6 ) $ 29.7 $ (507.9 ) The following table presents reclassifications from AOCL to earnings: (In millions) Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements 2018 2017 Realized (loss) gain on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ (11.6 ) $ (13.6 ) Cost of goods sold Interest rate swap agreements 1.1 (6.2 ) Interest expense Less: Tax effect (0.7 ) (2.9 ) Income tax expense (benefit) Total, net of tax $ (9.8 ) $ (16.9 ) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $ 73.1 million and $( 70.8 ) million in 2018 and 2017, respectively. (2) Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. (3) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (4) The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
LEASES
LEASES | 12 Months Ended |
Feb. 03, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases retail locations, warehouses, distribution centers, showrooms, office space, equipment and a factory in Ethiopia. The leases, excluding equipment leases, generally provide for the payment of real estate taxes and certain other occupancy expenses. Retail location leases generally are renewable and provide for the payment of percentage rentals based on location sales and other costs associated with the leased property. At February 3, 2019 , minimum annual rental commitments under noncancelable leases were as follows: (In millions) Capital Leases Operating Leases Total 2019 $ 5.6 $ 402.4 $ 408.0 2020 4.4 371.9 376.3 2021 3.8 314.0 317.8 2022 1.8 255.0 256.8 2023 0.6 189.9 190.5 Thereafter 2.5 618.7 621.2 Total minimum lease payments $ 18.7 $ 2,151.9 $ 2,170.6 Less: Amount representing interest (2.2 ) Present value of net minimum capital lease payments $ 16.5 The Company’s retail location leases represent $ 1,425.3 million of the total minimum lease payments. The Company’s administrative offices and showrooms located in New York and New Jersey represent $ 374.5 million of the total minimum lease payments. The Company’s Europe headquarters and showrooms, the largest of which are located in Amsterdam, the Netherlands, represent $ 141.1 million of the total minimum lease payments. Aggregate future minimum rentals to be received under noncancelable capital and operating subleases were $ 0.6 million and $ 0.2 million, respectively, at February 3, 2019 . Rent expense was as follows: (In millions) 2018 2017 2016 Minimum $ 465.3 $ 455.2 $ 421.8 Percentage and other 128.6 103.0 90.9 Less: Sublease rental income (1.4 ) (1.8 ) (4.9 ) Total $ 592.5 $ 556.4 $ 507.8 The gross book value of assets under capital leases, which are classified within property, plant and equipment in the Company’s Consolidated Balance Sheets, amounted to $ 37.0 million and $34.5 million as of February 3, 2019 and February 4, 2018 , respectively. Accumulated amortization related to assets under capital leases amounted to $ 21.6 million and $18.8 million as of February 3, 2019 and February 4, 2018 , respectively. The Company includes amortization of assets under capital leases in depreciation and amortization expense. The Company did not incur any expense in percentage rentals under capital leases during 2018 or 2017 . |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 12 Months Ended |
Feb. 03, 2019 | |
EXIT ACTIVITY COSTS [Abstract] | |
EXIT ACTIVITY COSTS | EXIT ACTIVITY COSTS Calvin Klein Restructuring Costs The Company announced on January 10, 2019 a restructuring in connection with strategic changes for its Calvin Klein business (the “Calvin Klein restructuring”). The strategic changes include (i) the closure of the CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ), (ii) the closure of the flagship store on Madison Avenue in New York, New York, (iii) the restructuring of the Calvin Klein creative and design teams globally, and (iv) the consolidation of operations for the men’s Calvin Klein Sportswear and Calvin Klein Jeans businesses. In connection with the Calvin Klein restructuring, the Company recorded pre-tax costs during 2018 and expects to incur total costs as follows: (In millions) Total Costs Expected to be Incurred Costs Incurred During 2018 Severance, termination benefits and other employee costs $ 65.7 $ 27.3 Long-lived asset impairments 55.0 (1) 6.9 Lease/contract termination and other costs 45.0 4.3 Inventory markdowns 5.0 2.2 Total $ 170.7 $ 40.7 (1) Includes the estimated impact of the closure of the flagship store on Madison Avenue in New York, New York, which will be accounted for as an asset impairment following the Company’s adoption of the new lease accounting guidance in the first quarter of 2019. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and lease/contract termination and other costs incurred during 2018, $18.9 million relate to SG&A expenses of the Calvin Klein North America segment and $19.6 million relate to SG&A expenses of the Calvin Klein International segment. The charges for inventory markdowns incurred during 2018 were recorded in cost of goods sold of the Company’s Calvin Klein International segment. The Company expects to incur total costs of $170.7 million through the end of 2019 in connection with the restructuring activities, of which approximately $80 million is estimated to relate to the Calvin Klein North America segment and approximately $90 million is estimated to relate to the Calvin Klein International segment. Please see Note 20 , “ Segment Data ,” for further discussion of the Company’s reportable segments. Please see Note 11 , “ Fair Value Measurements ,” for further discussion of the long-lived asset impairments recorded during 2018. The liabilities at February 3, 2019 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/4/18 Costs Incurred During 2018 Costs Paid During 2018 Liability at 2/3/19 Severance, termination benefits and other employee costs $ — $ 27.3 $ 1.5 $ 25.8 Lease/contract termination and other costs — 4.3 2.0 2.3 Total $ — $ 31.6 $ 3.5 $ 28.1 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Feb. 03, 2019 | |
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: (In millions, except per share data) 2018 2017 2016 Net income attributable to PVH Corp. $ 746.4 $ 537.8 $ 549.0 Weighted average common shares outstanding for basic net income per common share 76.5 77.6 80.2 Weighted average impact of dilutive securities 0.8 1.0 0.7 Total shares for diluted net income per common share 77.3 78.6 80.9 Basic net income per common share attributable to PVH Corp. $ 9.75 $ 6.93 $ 6.84 Diluted net income per common share attributable to PVH Corp. $ 9.65 $ 6.84 $ 6.79 Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: (In millions) 2018 2017 2016 Weighted average potentially dilutive securities 0.4 0.5 0.8 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 February 3, 2019 , February 4, 2018 and January 29, 2017 and, therefore, were excluded from the calculation of diluted net income per common share for each applicable year. The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.3 million, 0.1 million and 0.3 million as of February 3, 2019 , February 4, 2018 and January 29, 2017 , 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 | 12 Months Ended |
Feb. 03, 2019 | |
Noncash Investing and Financing Transactions [Abstract] | |
NONCASH INVESTING AND FINANCING TRANSACTIONS | NONCASH INVESTING AND FINANCING TRANSACTIONS Omitted from the Company’s Consolidated Statement of Cash Flows for 2018 were capital expenditures related to property, plant and equipment of $ 43.7 million, which will not be paid until 2019. The Company paid $41.9 million in cash during 2018 related to property, plant and equipment that was acquired in 2017 . This amount was omitted from the Company’s Consolidated Statement of Cash Flows for 2017 . The Company paid $35.6 million in cash during 2017 related to property, plant and equipment that was acquired in 2016 . This amount was omitted from the Company’s Consolidated Statement of Cash Flows for 2016 . Omitted from purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows for 2018 , 2017 and 2016 were $ 6.0 million, $3.6 million and $6.8 million, respectively, of assets acquired through capital leases. The Company completed the acquisition of the Geoffrey Beene tradename during 2018. Omitted from acquisitions, net of cash acquired in the Company’s Consolidated Statement of Cash Flows for 2018 was $ 0.7 million of acquisition consideration related to royalties prepaid to Geoffrey Beene by the Company under the prior license agreement and $ 0.4 million of liabilities assumed by the Company. Omitted from acquisition of treasury shares in the Company’s Consolidated Statement of Cash Flows for 2017 were $ 1.5 million of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of February 4, 2018. The Company recorded a loss of $ 8.1 million during 2017 to write-off previously capitalized debt issuance costs in connection with the early redemption of its 4 1/2% senior notes due 2022. The Company recorded a loss of $ 11.2 million during 2016 to write-off previously capitalized debt issuance costs in connection with the amendment of its credit facilities. The Company completed the TH China acquisition during 2016. Included in the acquisition consideration was the elimination of a $ 2.8 million pre-acquisition receivable owed to the Company by TH China. Omitted from investments in unconsolidated affiliates in the Company’s Consolidated Statement of Cash Flows for 2016 was a noncash increase in the investment balance related to the Company’s PVH Mexico joint venture of $ 64.3 million resulting from the deconsolidation of the Mexico business during 2016. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion. |
SEGMENT DATA
SEGMENT DATA | 12 Months Ended |
Feb. 03, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages its operations through its operating divisions, which are presented as six reportable segments: (i) Tommy Hilfiger North America; (ii) Tommy Hilfiger International; (iii) Calvin Klein North America; (iv) Calvin Klein International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail. 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 the United States and Canada, primarily to department stores, warehouse clubs, and off-price and independent retailers, as well as digital commerce sites operated by the 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 a digital commerce site in the United States, 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 names for a broad array of product categories 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 foreign affiliate in Mexico relating to the affiliate’s Tommy Hilfiger business. 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, China and Japan, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores and concession locations 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 names for a broad array of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated Tommy Hilfiger foreign affiliates in Brazil and India and its unconsolidated foreign affiliate in Australia relating to the affiliate’s Tommy Hilfiger business. 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 further discussion. 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 the United States and Canada, primarily to warehouse clubs, department and specialty stores, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers, and digital commerce sites in the United States and Canada, 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 CALVIN KLEIN brand names for a broad array of product categories 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 foreign affiliate in Mexico relating to the affiliate’s Calvin Klein business. 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, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations 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 CALVIN KLEIN brand names for a broad array of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated foreign affiliate in Australia relating to the affiliate’s Calvin Klein business and its unconsolidated Calvin Klein foreign affiliate in India. 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, warehouse clubs, and mass market, off-price and independent retailers, as well as digital commerce sites operated by select wholesale partners and pure play digital commerce retailers in North America of (i) men’s 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, ARROW and DKNY ; (iii) men’s, women’s and children’s swimwear, pool and deck footwear, and swim-related products and accessories under the Speedo trademark; and (iv) women’s intimate apparel under the Warner’s , Olga and True&Co. brands. Additionally, this segment derives revenue from Company operated digital commerce sites in the United States through SpeedoUSA .com, TrueAndCo .com, VanHeusen .com, IZOD .com and styleBureau .com. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated foreign affiliates in Australia and, since December 2016, in Mexico relating to the affiliates’ Heritage Brands businesses. 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, along with a limited selection of the Company’s dress shirt and neckwear offerings, and IZOD Golf , Warner’s and, to a lesser extent, Speedo products. The majority of these stores feature multiple brand names on the store signage, with the remaining stores operating under the Van Heusen name. The Company’s revenue by segment was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Revenue – Tommy Hilfiger North America Net sales $ 1,574.3 $ 1,482.2 $ 1,502.4 Royalty revenue 76.2 68.9 48.9 Advertising and other revenue 18.7 16.7 12.0 Total 1,669.2 1,567.8 1,563.3 Revenue – Tommy Hilfiger International Net sales 2,599.7 2,268.0 1,899.4 Royalty revenue 52.7 47.8 44.5 Advertising and other revenue 22.9 9.6 3.6 Total 2,675.3 2,325.4 1,947.5 Revenue – Calvin Klein North America Net sales 1,599.9 1,511.3 1,513.0 Royalty revenue 143.6 146.4 131.7 Advertising and other revenue 49.8 50.1 45.2 Total 1,793.3 1,707.8 1,689.9 Revenue – Calvin Klein International Net sales 1,827.9 1,645.0 1,346.2 Royalty revenue 78.9 80.0 72.9 Advertising and other revenue 31.1 28.8 26.2 Total 1,937.9 1,753.8 1,445.3 Revenue – Heritage Brands Wholesale Net sales 1,293.2 1,274.4 1,271.6 Royalty revenue 20.5 19.5 20.3 Advertising and other revenue 3.7 3.5 3.9 Total 1,317.4 1,297.4 1,295.8 Revenue – Heritage Brands Retail Net sales 259.2 258.5 258.8 Royalty revenue 4.0 3.7 2.3 Advertising and other revenue 0.5 0.4 0.2 Total 263.7 262.6 261.3 Total Revenue Net sales 9,154.2 8,439.4 7,791.4 Royalty revenue 375.9 366.3 320.6 Advertising and other revenue 126.7 109.1 91.1 Total (2) $ 9,656.8 $ 8,914.8 $ 8,203.1 (1) Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. (2) No single customer accounted for more than 10% of the Company’s revenue in 2018 , 2017 or 2016 . The Company’s revenue by distribution channel was as follows: (In millions) 2018 2017 2016 Wholesale net sales $ 4,969.6 $ 4,504.3 $ 4,195.9 Retail net sales 4,184.6 3,935.1 3,595.5 Net sales 9,154.2 8,439.4 7,791.4 Royalty revenue 375.9 366.3 320.6 Advertising and other revenue 126.7 109.1 91.1 Total $ 9,656.8 $ 8,914.8 $ 8,203.1 The Company has not disclosed net sales by product category as it is impracticable to do so. The Company’s income before interest and taxes by segment was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Income before interest and taxes – Tommy Hilfiger North America $ 233.8 $ 97.0 (5)(6)(7) $ 135.8 (11) Income before interest and taxes – Tommy Hilfiger International 377.1 (3) 221.5 (3)(5)(6) 328.3 (12)(13) Income before interest and taxes – Calvin Klein North America 166.7 (4) 184.0 123.9 (14) Income before interest and taxes – Calvin Klein International 211.5 (4) 226.5 209.6 Income before interest and taxes – Heritage Brands Wholesale 83.3 96.7 90.2 Income before interest and taxes – Heritage Brands Retail 7.4 7.6 8.8 Loss before interest and taxes – Corporate (2) (188.1 ) (200.9 ) (8)(9)(10) (107.4 ) (15) Income before interest and taxes $ 891.7 $ 632.4 $ 789.2 (1) Income (loss) before interest and taxes was impacted by fluctuations 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 Item 7 of this report for 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 investments in Gazal and Karl Lagerfeld 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, certain digital investments, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial (losses) gains on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $( 15.0 ) million, $( 2.5 ) million and $ 39.1 million in 2018 , 2017 and 2016 , respectively. (3) Income before interest and taxes for 2018 and 2017 included costs of $ 23.6 million and $ 26.9 million, respectively, associated with the TH China acquisition, primarily consisting of noncash amortization of short-lived assets. Please see Note 3 , “ Acquisitions ,” for further discussion. (4) Income before interest and taxes for 2018 included costs of $ 40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 18.9 million in Calvin Klein North America and $ 21.8 million in Calvin Klein International. Please see Note 17 , “ Exit Activity Costs ,” for further discussion. (5) Income before interest and taxes for 2017 included costs of $ 82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $ 34.7 million in Tommy Hilfiger North America and $ 48.2 million in Tommy Hilfiger International. (6) Income before interest and taxes for 2017 included costs of $ 54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). 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. (7) Income before interest and taxes for 2017 included costs of $ 19.2 million associated with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense. (8) Loss before interest and taxes for 2017 included costs of $ 23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 8 , “ Debt ,” for further discussion. (9) Loss before interest and taxes for 2017 included net costs of $ 8.0 million associated with the consolidation within the Company’s warehouse and distribution network in North America, which included a $ 3.1 million gain on the sale of a warehouse and distribution center. (10) Loss before interest and taxes for 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 12 , “ Retirement and Benefit Plans ,” for further discussion. (11) Income before interest and taxes for 2016 included costs of $ 11.0 million associated with the early termination of the previous license agreement for the Tommy Hilfiger men’s tailored clothing business in North America (the “TH men’s tailored license termination”) in order to consolidate with Peerless Clothing International, Inc. the Company’s men’s tailored businesses for all of its brands in North America. (12) Income before interest and taxes for 2016 included a gain of $ 18.1 million associated with a payment made to the Company to exit a TOMMY HILFIGER flagship store in Europe. (13) Income before interest and taxes for 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 $ 76.9 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 further discussion. (14) Income before interest and taxes for 2016 included a noncash loss of $ 81.8 million related to the Mexico deconsolidation, including $ 56.7 million related to foreign currency translation adjustment losses previously recorded in AOCL. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion. (15) Loss before interest and taxes for 2016 included costs of $ 15.8 million related to the Company’s amendment of its 2014 facilities. Please see Note 8 , “ Debt ,” for further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America Segment. The Company’s identifiable assets by segment were as follows: (In millions) 2018 2017 2016 Identifiable Assets (1) Tommy Hilfiger North America $ 1,330.5 $ 1,276.5 $ 1,229.8 Tommy Hilfiger International 3,949.3 4,047.3 3,481.3 Calvin Klein North America 1,817.9 1,836.9 1,752.1 Calvin Klein International 3,114.9 3,138.0 2,821.0 Heritage Brands Wholesale 1,178.1 1,123.5 1,203.5 Heritage Brands Retail 86.6 81.6 75.5 Corporate (2) 386.4 381.9 504.7 Total $ 11,863.7 $ 11,885.7 $ 11,067.9 Depreciation and Amortization Tommy Hilfiger North America $ 37.9 $ 45.1 $ 35.3 Tommy Hilfiger International (3) 133.9 124.5 139.2 Calvin Klein North America 41.5 43.8 47.6 Calvin Klein International 90.6 83.1 70.5 Heritage Brands Wholesale 14.9 14.3 15.6 Heritage Brands Retail 5.6 5.3 5.4 Corporate 10.4 8.8 8.2 Total $ 334.8 $ 324.9 $ 321.8 Identifiable Capital Expenditures (4) Tommy Hilfiger North America (5) $ 56.1 $ 82.0 $ 26.9 Tommy Hilfiger International 143.9 126.7 82.0 Calvin Klein North America 36.0 36.8 39.3 Calvin Klein International 102.7 96.6 79.5 Heritage Brands Wholesale 15.8 8.0 14.1 Heritage Brands Retail 8.5 4.2 7.0 Corporate 18.3 10.1 8.9 Total $ 381.3 $ 364.4 $ 257.7 (1) Identifiable assets included the impact of changes in foreign currency exchange rates. (2) The changes in Corporate identifiable assets in 2017 were primarily due to changes in cash and cash equivalents. (3) Depreciation and amortization in 2018, 2017 and 2016 included $ 24.6 million, $ 26.8 million and $ 47.1 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition. Please see Note 3 , “ Acquisitions ,” for further discussion. (4) Capital expenditures in 2018 included $ 43.7 million of accruals that will not be paid until 2019. Capital expenditures in 2017 included $ 41.9 million of accruals that were not paid until 2018 . Capital expenditures in 2016 included $ 35.6 million of accruals that were not paid until 2017 . (5) The increase in Tommy Hilfiger North America capital expenditures in 2017 was primarily driven by the relocation of the Tommy Hilfiger office in New York. Property, plant and equipment, net based on the location where such assets are held, was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Domestic $ 500.5 $ 449.2 $ 412.8 Canada 28.8 30.0 31.0 Europe 362.7 325.5 230.5 Asia 73.4 73.8 66.8 Other foreign 19.1 21.3 18.8 Total $ 984.5 $ 899.8 $ 759.9 (1) Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. Revenue, based on location of origin, was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Domestic $ 4,481.3 $ 4,290.1 $ 4,226.6 Canada 528.8 512.2 484.5 Europe 3,362.1 2,907.2 2,372.7 Asia 1,163.7 1,059.3 910.4 Other foreign (2) 120.9 146.0 208.9 Total $ 9,656.8 $ 8,914.8 $ 8,203.1 (1) Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. (2) Other foreign revenue in 2017 included the revenue reduction resulting from the Mexico deconsolidation in the fourth quarter of 2016. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion of the Mexico deconsolidation. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Feb. 03, 2019 | |
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 2013 sale of substantially all of the assets of the Company’s Bass business 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 February 3, 2019 was $ 9.0 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 was immaterial as of February 3, 2019 and February 4, 2018 . The Company has guaranteed a portion of the respective debt and other obligations of its joint venture in Australia and one of its joint ventures in India. The maximum amount guaranteed as of February 3, 2019 was approximately $ 11.0 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 February 3, 2019 and February 4, 2018 . The Company has guaranteed to a financial institution the repayment of a store security deposit in Japan paid to a landlord on behalf of the Company. The amount guaranteed as of February 3, 2019 was approximately $ 4.6 million, which is subject to exchange rate fluctuation. The Company has the right to seek recourse from the landlord for the full amount. The guarantee expires on March 28, 2022. The liability for this guarantee obligation was immaterial as of February 3, 2019 . The Company has guaranteed the payment of amounts on behalf of certain other parties, none of which are material individually or in the aggregate. |
OTHER COMMENTS
OTHER COMMENTS | 12 Months Ended |
Feb. 03, 2019 | |
Other Comments [Abstract] | |
OTHER COMMENTS | OTHER COMMENTS Included in accrued expenses in the Company’s Consolidated Balance Sheets were certain incentive compensation accruals of $ 99.4 million and $ 108.9 million as of February 3, 2019 and February 4, 2018 , respectively. The Company’s asset retirement liabilities are included in other liabilities in the Company’s Consolidated Balance Sheets and relate to the Company’s obligation to dismantle or remove leasehold improvements from leased office, retail store or warehouse locations at the end of a lease term in order to restore a facility to a condition specified in the lease agreement. The Company records the fair value of the liability for asset retirement obligations in the period in which it is legally or contractually incurred. Upon initial recognition of the asset retirement liability, an asset retirement cost is capitalized by increasing the carrying amount of the asset by the same amount as the liability. In periods subsequent to initial measurement, the asset retirement cost is recognized as expense through depreciation over the asset’s useful life. Changes in the liability for the asset retirement obligations are recognized for the passage of time and revisions to either the timing or the amount of estimated cash flows. Accretion expense is recognized in SG&A expenses for the impacts of increasing the discounted fair value to its estimated settlement value. The following table presents the activity related to the Company’s asset retirement liabilities, included in other liabilities in the Company’s Consolidated Balance Sheets, for each of the last two years: (In millions) 2018 2017 Balance at beginning of year $ 27.1 $ 21.8 Liabilities incurred 7.4 4.1 Liabilities settled (payments) (1.7 ) (1.0 ) Accretion expense 0.4 0.5 Revisions in estimated cash flows (0.1 ) 0.3 Currency translation adjustment (0.8 ) 1.4 Balance at end of year $ 32.3 $ 27.1 The Company is a party to certain litigation which, in management’s judgment, based in part on the opinions of legal counsel, will not have a material adverse effect on the Company’s financial position. 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 beginning March 31, 2018 through September 30, 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 Company received principal payments of $ 0.2 million during 2018. The outstanding balance, including accrued interest, was $ 13.8 million and $ 14.0 million as of February 3, 2019 and February 4, 2018 , respectively, and was included in other assets in the Company’s Consolidated Balance Sheets. One of the Company’s European subsidiaries completed the sale of a building during 2016 for € 15.0 million (approximately $ 16.7 million based on the exchange rate in effect on that date) and recorded a gain of $ 1.5 million, which represented the excess of the proceeds, less costs to sell, over the carrying value on that date. The gain was recorded in SG&A expenses in the Company’s Consolidated Income Statement during 2016 and was included in the Calvin Klein International segment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 03, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS (UNAUDITED) The Company entered into on February 20, 2019 a definitive agreement to acquire the approximately 78% interest in Gazal that it does not already own. The Company, along with Gazal, jointly own and manage a joint venture, PVH Australia, which will come under the Company's full ownership as a result of this acquisition. The aggregate net purchase price for the shares being acquired is approximately A$ 124 million (approximately $ 90 million based on the current exchange rate in effect), after taking into account the divestiture to a third party of an office building and warehouse owned by Gazal. The closing is subject to customary conditions, including shareholder and court approvals, and is expected to occur in the second quarter of 2019. The Company entered into on March 25, 2019 a definitive agreement to acquire the Tommy Hilfiger retail business in Hong Kong and certain other countries in Central and Southeast Asia from the Company’s current licensee in those markets, Dickson Concepts (International) Limited. The purchase price is estimated to be approximately $ 75 million. The closing is subject to customary conditions and is expected to occur in the second quarter of 2019. The Company will be closing its TOMMY HILFIGER flagship and anchor stores in the United States in the first quarter of 2019. The Company expects to incur pre-tax costs of approximately $ 60 million during 2019, primarily consisting of severance, noncash asset impairments and lease and other contract termination costs. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Feb. 03, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS (In millions) Column A Column B Column C Column D Column E Additions Charged to Costs and Expenses Additions Charged to Other Accounts Balance at Beginning of Period Balance at End of Period Description Deductions (1) Year Ended February 3, 2019 Allowance for doubtful accounts $ 21.1 $ 14.2 $ — $ 13.7 (2) $ 21.6 Allowance/accrual for operational chargebacks and customer markdowns 271.0 403.8 — 448.0 226.8 Valuation allowance for deferred income tax assets 106.3 12.9 — 56.6 (3) 62.6 Year Ended February 4, 2018 Allowance for doubtful accounts $ 15.0 $ 7.5 $ — $ 1.4 (2) $ 21.1 Allowance/accrual for operational chargebacks and customer markdowns 289.5 498.2 — 516.7 271.0 Valuation allowance for deferred income tax assets 43.9 64.3 (4) 1.9 3.8 106.3 Year Ended January 29, 2017 Allowance for doubtful accounts $ 18.1 $ 6.1 $ — $ 9.2 (2) $ 15.0 Allowance/accrual for operational chargebacks and customer markdowns 291.9 551.0 — 553.4 (5) 289.5 Valuation allowance for deferred income tax assets 43.8 6.0 — 5.9 43.9 (1) Includes changes due to foreign currency translation. (2) Principally accounts written off as uncollectible, net of recoveries. (3) Includes the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $ 38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. (5) Includes the impact of the Mexico deconsolidation. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 03, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation — The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Income Statements include its proportionate share of the net income or loss of these entities. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion. The Company and Arvind Limited (“Arvind”) have 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 6 , “ Redeemable Non-Controlling Interest ,” for further discussion. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates — The preparation of the consolidated 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 consolidated financial statements and accompanying notes. Actual results could differ materially from the estimates. |
Fiscal Period [Policy Text Block] | Fiscal Year — The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to February 1. References to a year are to the Company’s fiscal year, unless the context requires otherwise. Results for 2018 , 2017 and 2016 represent the 52 weeks ended February 3, 2019 , 53 weeks ended February 4, 2018 and 52 weeks ended January 29, 2017 , respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents also includes amounts due from third party credit card processors for the settlement of customer debit and credit card transactions that are collectible in one week or less. The Company’s cash and cash equivalents at February 3, 2019 consisted principally of bank deposits and investments in money market funds. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable — Trade receivables, as presented in the Company’s Consolidated Balance Sheets, are net of returns and allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectibility based on historic trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. Costs associated with allowable customer markdowns and operational chargebacks, net of the expected recoveries, are part of the provision for allowances included in accounts receivable. These provisions result from seasonal negotiations, historical experience, and an evaluation of current market conditions. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets — The Company assesses the recoverability of goodwill annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed two-step quantitative goodwill impairment test. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the fair value of a reporting unit is estimated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as used when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2018 annual goodwill impairment test, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. The Company’s annual goodwill impairment test during 2018 yielded estimated fair values in excess of the carrying amounts for the Company’s reporting units, all of which had fair values in excess of the carrying amounts by more than 50% , and therefore the second step of the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2018. For the 2017 annual goodwill impairment test, the Company elected to first assess qualitative factors to determine whether it was more likely than not that the fair value of any reporting unit was less than its carrying amount as a basis for determining whether it was necessary to perform the two-step goodwill impairment test. In evaluating whether it was more likely than not that the fair value of any reporting unit was less than its carrying amount, the Company assessed relevant events and circumstances including the change in the Company’s market capitalization and its implied impact on reporting unit fair value, industry and market conditions, a change in the Company’s weighted average cost of capital, macroeconomic conditions, trends in product costs and financial performance of the Company’s businesses. After assessing these events and circumstances, the Company determined that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount and concluded that the quantitative goodwill impairment test was not required. No impairment of goodwill resulted from the Company’s annual impairment test in 2017. Indefinite-lived intangible assets not subject to amortization are tested for impairment annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. The Company assesses qualitative factors to determine whether it is necessary to perform a more detailed quantitative impairment test for its indefinite-lived intangible assets. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. When performing the quantitative test, an impairment loss is recognized if the carrying amount of the asset exceeds the fair value of the asset, which is generally determined using the estimated discounted cash flows associated with the asset’s use. Intangible assets with finite lives are amortized over their estimated useful lives and are tested for impairment along with other long-lived assets when events and circumstances indicate that the assets might be impaired. For the 2018 annual impairment test of all indefinite-lived intangible assets, except for the Geoffrey Beene tradename, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. For the Geoffrey Beene tradename, since only a few months had passed since the acquisition on April 20, 2018 and there had not been any significant changes in the business, the Company determined qualitatively that it was not more likely than not that the fair value of this tradename was less than the carrying amount and concluded that the quantitative impairment test was not required. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2018. For the 2017 annual impairment test of certain indefinite-lived intangible assets, the Company elected to first assess qualitative factors to determine whether it was more likely than not that the fair value of any asset was less than its carrying amount. In performing this evaluation, the Company assessed relevant events and circumstances including industry and market conditions, a change in the Company’s weighted average cost of capital, macroeconomic conditions, trends in product costs and financial performance of the Company’s businesses. After assessing these events and circumstances, the Company determined that it was not more likely than not that the fair values of these certain indefinite-lived intangible assets were less than their carrying amounts and concluded that the quantitative impairment test was not required. For certain other indefinite-lived intangible assets impairment tests, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate fair value. No impairment of indefinite-lived intangible assets resulted from the Company’s annual impairment tests in 2017. |
Impairment or Disposal of Long-Lived Intangible Assets, Impairment, Policy [Policy Text Block] | Asset Impairments — The Company reviews for impairment of long-lived assets (excluding goodwill and other indefinite-lived intangible assets) when events and circumstances indicate that the assets might be impaired. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value. Please see Note 11 , “ Fair Value Measurements ,” for further discussion. |
Inventory, Policy [Policy Text Block] | Inventories — Inventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value, except for certain retail inventories in North America that are stated at the lower of cost or market using the retail inventory method. Cost for substantially all wholesale inventories in North America and certain wholesale inventories in Asia 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 either the lower of cost or net realizable value or the lower of cost or market using the retail inventory method, as applicable. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment — Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is generally provided over the estimated useful lives of the related assets on a straight-line basis. The range of useful lives is principally as follows: Buildings and building improvements — 15 to 40 years; machinery, software and equipment — 2 to 10 years; furniture and fixtures — 2 to 10 years; and fixtures located in third party customer locations (“shop-in-shops”) and their related costs — 3 to 4 years. Leasehold improvements are depreciated using the straight-line method over the lesser of the term of the related lease or the estimated useful life of the asset. In certain circumstances, contractual renewal options are considered when determining the term of the related lease. Major additions and improvements that extend the useful life of the asset are capitalized, and repairs and maintenance are charged to operations in the period incurred. |
Cloud Computing Arrangements, Policy [Policy Text Block] | Cloud Computing Arrangements — The Company incurs costs to implement cloud computing arrangements that are hosted by a third party vendor. Generally, these arrangements are service contracts that do not provide the Company with the right to take possession of the software or the ability to run the software on its own hardware or contract with another party, other than the vendor, to host the software. As such, the costs incurred to implement the Company’s cloud computing arrangements have generally been expensed as incurred. The Financial Accounting Standards Board (“FASB”) issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. As described below in the section “ Accounting Guidance Issued But Not Adopted as of February 3, 2019 ,” the updated guidance aligns the requirements for capitalizing implementation costs incurred under cloud computing arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company will early adopt the new cloud computing guidance in the first quarter of 2019 using the prospective approach. |
Lease, Policy [Policy Text Block] (Deprecated 2017-01-31) | Leases — The Company leases retail locations, warehouses, distribution centers, showrooms, office space and equipment. Assets held under capital leases are included in property, plant and equipment and are amortized over the lesser of the term of the related lease or the estimated useful life of the asset. The Company accounts for rent expense under noncancelable operating leases with scheduled rent increases and rent holidays on a straight-line basis over the lease term. The Company determines the lease term at the inception of a lease, and where renewal options are reasonably assured of being exercised because of the significant economic penalty that exists for not exercising those options, they are included in the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. For certain retail store leases that require variable lease payments based on sales, when sales at those locations exceed a stated base amount, additional rent expense is recognized when the liability is probable. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease space from the landlords. Such amounts are amortized as a reduction of rent expense over the life of the related lease. The FASB issued in February 2016 new guidance on leases. As described below in the section “ Accounting Guidance Issued But Not Adopted as of February 3, 2019 ,” the new guidance, among other changes, will require lessees to recognize a right-of-use asset and a lease liability in the balance sheet for most leases, but retains an expense recognition model similar to the current guidance. The Company will adopt the new lease guidance in the first quarter of 2019. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition — Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Revenue from the Company’s wholesale distribution of its products is generally recognized at the time title to the goods is passed and the risk of loss is transferred to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon receipt of goods by the customer. Revenue from the Company’s retail distribution of its products is recognized at the point of sale in its free-standing stores and shop-in-shop/concession locations and upon estimated time of delivery for sales through the Company’s digital commerce sites, at which point control of the products passes to the customer. The amount of revenue is recognized net of estimated returns, sales allowances and discounts offered to its customers. The Company estimates returns based on an analysis of historical experience and specific customer arrangements and estimates sales allowances and other discounts based on seasonal negotiations, historical experience and an evaluation of current market conditions. Royalty and advertising revenue from the Company’s license agreements, which are licenses of symbolic intellectual property, is recognized over time. For license agreements where the sales-based percentage fee exceeds the contractual minimum fee, the Company recognizes revenue as the licensed products are sold as reported to the Company by its licensees. For license agreements where the sales-based percentage fee does not exceed the contractual minimum fee, the Company recognizes the contractual minimum fee as revenue ratably over the contractual period. The Company sells gift cards to customers in its retail stores. The Company does not charge administrative fees on gift cards nor do they expire. Upon the purchase of a gift card by a customer, the Company records deferred revenue for the cash value of the gift card. Deferred revenue is relieved and revenue is recognized when the gift card is redeemed by the customer. The portion of gift cards that the Company does not expect to be redeemed (referred to as “breakage”) is recognized proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur, if the Company determines that it does not have a legal obligation to remit the value of such unredeemed gift cards to any jurisdiction. Gift card breakage was immaterial in each of the last three years. Certain of the Company’s retail operations use sales incentive programs, such as customer loyalty programs and the issuance of coupons. The Company’s loyalty programs offer customers of its retail businesses specified amounts off of future purchases for a specified period of time after certain levels of spending are achieved. Customers that are enrolled in the programs earn loyalty points for each purchase made. For each transaction where a customer earns loyalty points, the Company allocates revenue between the products purchased and the loyalty points earned based on the relative standalone selling prices. Revenue allocated to loyalty points is recorded as deferred revenue until the loyalty points are redeemed or expire. Costs associated with coupons are recorded as a reduction of revenue at the time of coupon redemption. The Company’s revenue recognition policy reflects changes made in 2018 following the adoption of the updated revenue recognition guidance. Please see the section “ Recently Adopted Accounting Guidance ” below for further discussion. |
Cost of Sales and Selling, General and Administrative Expenses, Policy [Policy Text Block] | Cost of Goods Sold and Selling, General and Administrative Expenses — Costs associated with the production and procurement of product are included in cost of goods sold, including inbound freight costs, purchasing and receiving costs, inspection costs and other product procurement related charges. Shipping and handling costs incurred by the Company associated with digital commerce transactions are also included in cost of goods sold, as well as the amounts recognized on foreign currency forward exchange contracts as the underlying inventory hedged by such forward exchange contracts is sold. Generally, all other expenses, excluding non-service related pension and post retirement (income) costs, interest and income taxes, are included in selling, general and administrative (“SG&A”) expenses, including warehousing and distribution expenses, as the predominant expenses associated therewith are general and administrative in nature, including rent, utilities, payroll and depreciation and amortization. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees — Shipping and handling fees that are billed to customers are included in net sales, with costs recorded in cost of goods sold. Shipping and handling costs that occur after control of goods has been transferred to the customer and that are not billed to the customer are accounted for as fulfillment costs in SG&A expenses. |
Advertising Costs, Policy [Policy Text Block] | Advertising — Advertising costs are expensed as incurred and are included in SG&A expenses. |
Cooperative Advertising Policy [Policy Text Block] | Costs associated with cooperative advertising programs, under which the Company shares the cost of a customer’s advertising expenditures, are treated as a reduction of revenue. |
Revenue Recognition Accounting Policy, Excise and Sales Taxes [Policy Text Block] | Sales Taxes — The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. |
Income Tax, Policy [Policy Text Block] | Income Taxes — Deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. Significant judgment is required in assessing the timing and amount of deductible and taxable items, evaluating tax positions and determining the income tax provision. The Company recognizes income tax benefits only when it is more likely than not that the tax position will be fully sustained upon review by taxing authorities, including resolution of related appeals or litigation processes, if any. If the recognition threshold is met, the Company measures the tax benefit at the largest amount with a greater than 50 percent likelihood of being realized upon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize any portion of that benefit in the financial statements. When the outcome of these tax matters changes, the change in estimate impacts the provision for income taxes in the period that such a determination is made. The Company recognizes interest and penalties related to unrecognized tax benefits in the Company’s income tax provision. The United States Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Legislation”) was enacted on December 22, 2017. The U.S. Tax Legislation is comprehensive and significantly revised the United States tax code. Please see Note 9 , “ Income Taxes ,” for further discussion of the U.S. Tax Legislation. |
Derivatives, Policy [Policy Text Block] | Financial Instruments — The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows primarily associated with certain international inventory purchases. The Company 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 secured term loan facility. The Company enters into interest rate swap agreements to hedge against a portion of this exposure. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. 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 swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. Changes in fair value of the foreign currency forward exchange contracts primarily associated with certain international inventory purchases and the interest rate swap agreements 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”). Any ineffectiveness in such cash flow hedges is immediately recognized in earnings. The Company also 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, the Company designates certain foreign currency borrowings issued in the United States as a net investment hedge of its investments in certain of its foreign subsidiaries that use a functional currency other than the United States dollar. Changes in fair value of the foreign currency borrowings designated as net investment hedges are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its net investment hedges as of the beginning of each quarter. Any ineffectiveness in such net investment hedges is immediately recognized in earnings. The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”). Undesignated contracts include 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. Undesignated contracts also include foreign currency option contracts previously used by the Company to hedge against changes in foreign currency exchange rates related to the translation of the earnings of the Company’s subsidiaries that use a functional currency other than the United States dollar. The fair value of the foreign currency option contracts was estimated based on external valuation models, which used the original strike price, then current foreign currency exchange rates, the implied volatility in foreign currency exchange rates at the time and length of time to expiration as inputs. All foreign currency option contracts expired in 2017. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. Cash flows from the Company’s hedges are presented in the Consolidated Statements of Cash Flows in the same category as the items being hedged. Please see Note 10 , “ Derivative Financial Instruments ,” for further discussion. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions — The consolidated financial statements of the Company are prepared in United States dollars. If the functional currency of a foreign subsidiary is not the United States dollar, assets and liabilities are translated to United States dollars at the closing exchange rate in effect at the applicable balance sheet date and revenue and expenses are translated to United States dollars at the average exchange rate for the applicable period. Gains and losses on the revaluation of intercompany loans made between foreign subsidiaries that are of a long-term investment nature are included in AOCL. Gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity, not including inventory purchases, are principally included in SG&A expenses and totaled a loss (gain) of $ 17.3 million, $ (10.2) million and $ 4.7 million in 2018 , 2017 and 2016 , respectively |
Debt, Policy [Policy Text Block] | Balance Sheet Classification of Early Settlements of Long-Term Obligations — The Company classifies obligations settled after the balance sheet date but prior to the issuance of the consolidated financial statements based on the contractual payment terms of the underlying agreements. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Benefit Plans — Employee pension benefits earned during the year, as well as interest on the projected benefit obligations or accumulated benefit obligations, are accrued quarterly. The expected return on plan assets is recognized quarterly and determined by applying the expected long-term rate of return on assets to the actual fair value of plan assets adjusted for expected benefit payments, contributions and plan expenses. Actuarial gains and losses are recognized in the Company’s operating results in the year in which they occur. These gains and losses include the difference between the actual return on plan assets and the expected return that was recognized quarterly, as well as the change in the projected benefit obligation caused by actual experience and updated actuarial assumptions differing from those assumptions used to record service and interest cost throughout the year. Actuarial gains and losses are measured at least annually at the end of the Company’s fiscal year and, as such, are generally recorded during the fourth quarter of each year. The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 12 , “ Retirement and Benefit Plans ,” for further discussion of the Company’s pension and benefit plans. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation — The Company recognizes all share-based payments to employees and non-employee directors, net of actual forfeitures, as compensation expense in the consolidated financial statements based on their grant date fair values. Please see Note 13 , “Stock-Based Compensation,” for further discussion. |
Recently Adopted Accounting Guidance [Policy Text Block] | Recently Adopted Accounting Guidance — The FASB issued in May 2014 guidance that superseded most of the previous 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 under the new guidance. The majority of the Company’s revenue is generated from sales of finished products, which continues to be recognized when control of the product is transferred to the customer. Under the guidance, the Company’s royalty and advertising revenue continues to be recognized over time, however, the timing of the recognition of revenue among quarters was affected for certain of the Company’s license agreements. For loyalty programs, the Company previously recorded 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 is deferred initially when the loyalty awards are earned, and recognized, along with the related cost of goods sold, as the loyalty awards are redeemed or, if not redeemed, as they expire. Revenue for the unredeemed portion of gift cards, which was previously recognized when the likelihood of redemption became remote, is now recognized under the guidance proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur. The Company adopted the guidance in the first quarter of 2018 by applying a modified retrospective approach to all contracts. As a result of the adoption, the Company recognized the cumulative effect of initially applying the guidance as a $ 1.9 million decrease to opening retained earnings with offsetting increases to deferred revenue and accrued expenses of $ 1.5 million and $ 0.4 million, respectively. Additionally, at the time of adoption, the Company reclassified the liabilities related to loyalty awards and the unredeemed portion of gift cards of $ 7.2 million and $ 6.9 million, respectively, from accrued expenses to deferred revenue in the Company’s Consolidated Balance Sheet. Otherwise, the adoption of the guidance did not have a material impact on the Company’s consolidated financial statements as of and for the fiscal year ended February 3, 2019 , including the Company’s Consolidated Income Statement and Consolidated Balance Sheet, or on any individual caption therein. Please see Note 2, “Revenue,” for further discussion. 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 revises certain presentation and disclosure requirements. The Company adopted this update in the first quarter of 2018 and it did not have any impact on the Company’s consolidated financial statements as the Company does not currently have such investments. 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 Company adopted this update in the first quarter of 2018 on a retrospective basis. As a result, contingent purchase price payments to Mr. Calvin Klein of $ 55.6 million and $ 53.1 million were reclassified from investing activities to operating activities, consistent with the current period classification under the update, and contingent purchase price payments related to the reacquisition of the rights in India to the TOMMY HILFIGER trademarks of $ 0.8 million and $ 0.6 million were reclassified from investing activities to financing activities in the Company’s Consolidated Statements of Cash Flows for the fiscal years ended February 4, 2018 and January 29, 2017, respectively. Otherwise, the adoption of the update did not have a material impact on the Company’s Consolidated Statements of Cash Flows, as the Company’s historical presentation of cash receipts and cash payments has been consistent with this guidance. 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. Previous guidance required entities to defer the income tax effect of intercompany transfers of assets until the asset was sold to an outside party or otherwise recognized. The update requires companies to recognize immediately in their income statement the income tax effects of an intercompany sale or transfer of an asset other than inventory. The Company adopted this update in the first quarter of 2018 using a modified retrospective approach, resulting in a cumulative-effect adjustment to decrease opening retained earnings by $ 8.0 million, with a corresponding decrease in other assets. The FASB issued in November 2016 an update to accounting guidance to clarify and provide specific guidance on the cash flow classification 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 Company adopted this update in the first quarter of 2018 and it did not have any impact on the Company’s Consolidated Statements of Cash Flows, as the Company does not currently have any restricted cash. 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 similar 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 Company adopted this update in the first quarter of 2018. This updated guidance was applied to applicable transactions after the adoption date and did not have a material impact on the Company’s consolidated financial statements. The FASB issued in March 2017 an update to accounting guidance to change the income statement presentation of net periodic pension and postretirement benefit cost. The update requires employers to report the service cost component of net periodic benefit cost in the same income statement line item as other compensation costs arising from services rendered by the employees during the applicable period. The other components of net periodic 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 periodic benefit cost is eligible for capitalization, when applicable. The Company adopted this update in the first quarter of 2018 on a retrospective basis. As a result, the Company reclassified $ 3.0 million and $ (41.2) million from SG&A expenses to non-service related pension and postretirement cost (income) within income before interest and taxes in the Company’s Consolidated Income Statements for the fiscal years ended February 4, 2018 and January 29, 2017, respectively. Otherwise, the adoption of the update did not have a material impact on the Company’s consolidated financial statements. The FASB issued in January 2018 guidance related to the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the U.S. Tax Legislation. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations for tax years beginning after December 31, 2017. The guidance indicates that companies must make a policy election to either record deferred taxes for basis differences expected to reverse as a result of the GILTI provisions in future years or treat any taxes on GILTI inclusions as period costs when incurred. The Company has completed its analysis of the tax effects of the GILTI provisions and has elected to account for these tax effects as period costs when incurred. |
Accounting Guidance Issued Not Yet Adopted [Policy Text Block] | Accounting Guidance Issued But Not Adopted as of February 3, 2019 — The FASB issued in February 2016 new guidance on leases. The new guidance, among other changes, will require lessees to recognize a right-of-use asset and a lease liability in the balance sheet for most leases, but retains an expense recognition model similar to the current guidance. 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 also requires additional quantitative and qualitative disclosures. The guidance will be effective for the Company in the first quarter of 2019. Entities are required to adopt the guidance using a modified retrospective approach, with the option to apply the guidance either at the beginning of the earliest period presented or at the beginning of the period in which it is adopted. The Company formed a global, cross-functional project team to implement the new guidance and analyze its impacts. The Company has collected relevant data for all of its leases and has implemented changes needed to its policies, processes and internal controls as a result of the guidance. To facilitate the adoption and the related reporting requirements, the Company selected a global lease management and accounting software, which has been implemented globally. The Company will adopt the guidance in the first quarter of 2019 using the modified retrospective approach applied as of the period of adoption, with no restatement of prior periods, and will elect the package of practical expedients permitted under the transition guidance. Upon adoption, the Company expects to recognize right-of-use assets of approximately $ 1.7 billion and lease liabilities of approximately $ 1.8 billion with an immaterial adjustment to opening retained earnings in its Consolidated Balance Sheet. The Company does not expect there to be a material impact on the Company’s results of operations. The FASB issued in August 2017 an update to accounting guidance to simplify the application of hedge accounting in certain situations and allow companies to better align their hedge accounting with their risk management activities. The update eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same income statement line as the hedged item. The update also simplifies the requirements for hedge documentation and effectiveness assessments and amends the presentation and disclosure requirements. The update will be effective for the Company in the first quarter of 2019. Entities are required to adopt the update using a modified retrospective approach, except for the presentation and disclosure guidance, which is required to be applied on a prospective basis. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements. The FASB issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. The update aligns the requirements for capitalizing implementation costs incurred under such arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. Under current accounting guidance, the Company generally expenses the implementation costs incurred in connection with a cloud computing arrangement that is a service contract. The update will be effective for the Company in the first quarter of 2020, with early adoption permitted. Entities have the option of adopting the guidance using either a prospective or retrospective approach. The Company intends to adopt the update in the first quarter of 2019 using the prospective approach. The Company will apply the update to applicable implementation costs incurred after the adoption date and the impact on the Company’s consolidated financial statements will depend on the nature and amount of such costs. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue Disclosure [Table Text Block] | Changes in deferred revenue related to customer loyalty programs, gift cards and license agreements for the year ended February 3, 2019 were as follows: (In millions) 2018 Deferred revenue balance at February 4, 2018 $ 39.2 Impact of adopting the new revenue standard (1) 15.6 Net additions to deferred revenue during the period 61.3 Reductions in deferred revenue for revenue recognized during the period (2) (50.8 ) Deferred revenue balance at February 3, 2019 $ 65.3 (1) Please see Note 1, “Summary of Significant Accounting Policies,” for further discussion of the adoption of the new revenue standard. (2) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at February 4, 2018, as adjusted for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred after February 4, 2018. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $ 2.3 million and $ 3.9 million as of February 3, 2019 and February 4, 2018 , respectively. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, at cost, was as follows: (In millions) 2018 2017 Land $ 1.0 $ 1.0 Buildings and building improvements 54.8 55.3 Machinery, software and equipment 697.6 609.5 Furniture and fixtures 540.0 494.9 Shop-in-shops 230.9 208.6 Leasehold improvements 790.3 724.5 Construction in progress 83.9 35.9 Property, plant and equipment, gross 2,398.5 2,129.7 Less: Accumulated depreciation (1,414.0 ) (1,229.9 ) Property, plant and equipment, net $ 984.5 $ 899.8 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill, by segment (please see Note 20 , “ Segment Data ,” for 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 34.2 23.1 — — — — 57.3 True & Co. acquisition 5.4 4.8 — — 10.7 — 20.9 Belgian acquisition — 1.3 — 11.1 — — 12.4 Currency translation 1.2 48.3 — 224.7 — — 274.2 Balance as of February 4, 2018 Goodwill, gross 780.2 942.0 204.4 1,661.6 246.5 11.9 3,846.6 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net 780.2 942.0 204.4 1,661.6 246.5 — 3,834.7 Contingent purchase price payments to Mr. Calvin Klein 1.0 0.7 — — — — 1.7 Currency translation (0.9 ) (33.2 ) — (131.8 ) — — (165.9 ) Balance as of February 3, 2019 Goodwill, gross 780.3 909.5 204.4 1,529.8 246.5 11.9 3,682.4 Accumulated impairment losses — — — — — (11.9 ) (11.9 ) Goodwill, net $ 780.3 $ 909.5 $ 204.4 $ 1,529.8 $ 246.5 $ — $ 3,670.5 |
Schedule of Intangible Assets [Table Text Block] | The Company’s other intangible assets consisted of the following: 2018 2017 (In millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization: Customer relationships $ 307.4 $ (186.1 ) $ 121.3 $ 324.7 $ (169.4 ) $ 155.3 Reacquired license rights 523.8 (154.4 ) 369.4 550.7 (124.4 ) 426.3 Total intangible assets subject to amortization 831.2 (340.5 ) 490.7 875.4 (293.8 ) 581.6 Indefinite-lived intangible assets: Tradenames 2,863.7 — 2,863.7 2,928.4 — 2,928.4 Perpetual license rights 203.8 — 203.8 204.7 — 204.7 Reacquired perpetual license rights 11.0 — 11.0 11.9 — 11.9 Total indefinite-lived intangible assets 3,078.5 — 3,078.5 3,145.0 — 3,145.0 Total other intangible assets $ 3,909.7 $ (340.5 ) $ 3,569.2 $ 4,020.4 $ (293.8 ) $ 3,726.6 The gross carrying amount and accumulated amortization of certain intangible assets include the impact of changes in foreign currency exchange rates. |
Schedule of Expected Amortization Expense [Table Text Block] | Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the next five years related to the Company’s intangible assets subject to amortization as of February 3, 2019 is expected to be as follows: (In millions) Fiscal Year Amount 2019 $ 39.0 2020 39.0 2021 38.7 2022 36.5 2023 23.3 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
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) 2018 2017 Senior secured Term Loan A facility due 2021 $ 1,643.8 $ 1,792.1 7 3/4% debentures due 2023 99.6 99.5 3 5/8% senior unsecured euro notes due 2024 (1) 396.5 430.8 3 1/8% senior unsecured euro notes due 2027 (1) 679.5 738.9 Total 2,819.4 3,061.3 Less: Current portion of long-term debt — — Long-term debt $ 2,819.4 $ 3,061.3 (1) The carrying amount of the Company’s senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
Schedule of Mandatory Long-Term Debt Repayments [Table Text Block] | As of February 3, 2019 , the Company’s mandatory long-term debt repayments for the next five years were as follows: (In millions) Fiscal Year Amount 2019 $ — 2020 123.5 2021 1,525.8 2022 — 2023 100.0 Total debt repayments for the next five years exceed the total carrying amount of the Company’s Term Loan A facility and 7 3/4% debentures due 2023 as of February 3, 2019 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. |
Schedule of Interest Rate Swap Agreements [Table Text Block] | The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for the outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during 2018, 2017 and 2016: (In millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of February 3, 2019 Fixed Rate Expiration Date January 2019 February 2020 $ 50.0 $ — 2.4187% February 2021 November 2018 February 2019 139.2 — 2.8645% February 2021 October 2018 February 2019 115.7 — 2.9975% February 2021 June 2018 August 2018 50.0 50.0 2.6825% February 2021 June 2017 February 2018 306.5 181.5 1.566% February 2020 July 2014 February 2016 682.6 — 1.924% February 2018 The notional amounts of the outstanding interest rate swap that commenced in February 2018 and the interest rate swaps that will commence in February 2019 will be adjusted according to pre-set schedules during the terms of the swap agreements such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the 2016 facilities is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The domestic and foreign components of (loss) income before (benefit) provision for income taxes were as follows: (In millions) 2018 2017 2016 Domestic $ (5.3 ) $ (102.0 ) $ 60.9 Foreign 780.9 612.2 613.3 Total $ 775.6 $ 510.2 $ 674.2 The domestic loss before benefit for income taxes in 2018 and 2017 is primarily attributable to the domestic portion of certain non-recurring charges incurred in 2018 and 2017. Please see Note 20, “Segment Data,” for further discussion of these costs. |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes attributable to income consisted of the following: (In millions) 2018 2017 2016 Federal: Current $ (30.5 ) $ 51.7 $ (2.7 ) Deferred (53.2 ) (1) (198.3 ) (1) (9.3 ) State and local: Current 4.6 3.5 (2.4 ) Deferred 9.6 (7.8 ) (0.9 ) Foreign: Current 170.2 143.5 129.3 Deferred (69.7 ) (2) (18.5 ) 11.5 Total $ 31.0 $ (25.9 ) $ 125.5 (1) Includes a $ 24.7 million benefit in 2018 and a $ 52.8 million benefit in 2017 related to the U.S. Tax Legislation. (2) Includes a $ 41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision (benefit) for income taxes for the years 2018 , 2017 and 2016 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income as follows: 2018 2017 2016 Statutory federal income tax rate (1) 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal income tax benefit 0.5 % (1.1 )% 0.4 % Effects of international jurisdictions, including foreign tax credits (9.5 )% (2) (20.3 )% (12.9 )% Change in estimates for uncertain tax positions (3.7 )% (7.5 )% (3.7 )% Change in valuation allowance (5.3 )% (3) 11.0 % (4) (0.1 )% One-time transition tax due to U.S. Tax Legislation — % 34.0 % — % Remeasurement due to U.S. Tax Legislation 0.2 % (51.9 )% — % Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) 1.9 % — % — % Excess tax benefits related to stock-based compensation (0.6 )% (2.8 )% (5) — % Other, net (0.5 )% (0.2 )% (0.1 )% Effective income tax rate 4.0 % (5.1 )% 18.6 % (1) The United States statutory federal income tax rate changed from 35.0% to 21.0% , effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7% . (2) Includes a $ 41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the 2019 Dutch Tax Plan. (3) Includes the release of a $ 26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. (4) Includes the recognition of a $ 38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. (5) Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer. |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities were as follows: (In millions) 2018 2017 Gross deferred tax assets Tax loss and credit carryforwards $ 230.1 $ 247.0 Employee compensation and benefits 83.1 72.2 Inventories 26.8 22.1 Accounts receivable 17.1 17.6 Accrued expenses 30.2 25.5 Derivative financial instruments — 18.3 Other, net 13.8 8.7 Subtotal 401.1 411.4 Valuation allowances (62.6 ) (106.3 ) Total gross deferred tax assets, net of valuation allowances $ 338.5 $ 305.1 Gross deferred tax liabilities Intangibles $ (825.3 ) $ (898.9 ) Property, plant and equipment (33.6 ) (43.8 ) Derivative financial instruments (4.3 ) — Total gross deferred tax liabilities $ (863.2 ) $ (942.7 ) Net deferred tax liability $ (524.7 ) $ (637.6 ) |
Summary of Income Tax Contingencies [Table Text Block] | Uncertain tax positions activity for each of the last three years was as follows: (In millions) 2018 2017 2016 Balance at beginning of year $ 297.1 $ 245.6 $ 226.8 Increases related to prior year tax positions 13.9 15.4 2.8 Decreases related to prior year tax positions (24.9 ) (10.3 ) (9.9 ) Increases related to current year tax positions 25.5 79.7 52.0 Lapses in statute of limitations (54.7 ) (46.3 ) (24.4 ) Effects of foreign currency translation (8.6 ) 13.0 (1.7 ) Balance at end of year $ 248.3 $ 297.1 $ 245.6 The entire amount of uncertain tax positions as of February 3, 2019 , if recognized, would reduce the future effective tax rate under current accounting guidance. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 Liabilities 2018 2017 2018 2017 Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 24.0 $ 0.7 $ 0.9 $ 0.1 $ 3.5 $ 0.7 $ 62.4 $ 4.1 Interest rate swap agreements 1.4 0.0 1.1 1.3 1.2 1.6 0.1 — Total contracts designated as cash flow hedges 25.4 0.7 2.0 1.4 4.7 2.3 62.5 4.1 Undesignated contracts: Foreign currency forward exchange contracts 0.1 — 0.5 — 2.0 — 0.9 — Total $ 25.5 $ 0.7 $ 2.5 $ 1.4 $ 6.7 $ 2.3 $ 63.4 $ 4.1 |
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: Gain (Loss) Recognized in Other Comprehensive (Loss) Income (Loss) Gain Reclassified from AOCL into (Expense) Income (In millions) Location Amount 2018 2017 2018 2017 Foreign currency forward exchange contracts (inventory purchases) $ 97.1 $ (122.0 ) Cost of goods sold $ (11.6 ) $ (13.6 ) Interest rate swap agreements (2.6 ) 3.2 Interest expense 1.1 (6.2 ) Foreign currency borrowings (net investment hedges) 95.6 (99.5 ) N/A — — Total $ 190.1 $ (218.3 ) $ (10.5 ) $ (19.8 ) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Income Statements: Loss Recognized in Expense (In millions) 2018 2017 Foreign currency forward exchange contracts $ (1.5 ) $ (4.6 ) Foreign currency option contracts — (4.3 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Fair Value Disclosures [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) 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 24.8 N/A $ 24.8 N/A $ 1.5 N/A $ 1.5 Interest rate swap agreements N/A 1.4 N/A 1.4 N/A 2.4 N/A 2.4 Total Assets N/A $ 26.2 N/A $ 26.2 N/A $ 3.9 N/A $ 3.9 Liabilities: Foreign currency forward exchange contracts N/A $ 6.2 N/A $ 6.2 N/A $ 67.4 N/A $ 67.4 Interest rate swap agreements N/A 2.8 N/A 2.8 N/A 0.1 N/A 0.1 Total Liabilities N/A $ 9.0 N/A $ 9.0 N/A $ 67.5 N/A $ 67.5 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents the change in the Level 3 contingent purchase price payment liability during 2017 : (In millions) 2017 Beginning Balance $ 1.6 Payments (0.8 ) Adjustments included in earnings (0.8 ) Ending Balance $ — | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis and Recorded Impairment [Table Text Block] | The following table shows the fair value of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a non-recurring basis (consisting of property, plant and equipment) during 2018 , 2017 and 2016, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value Total Impairments Level 1 Level 2 Level 3 2018 N/A N/A $ 0.6 $ 0.6 $ 17.9 2017 N/A N/A 0.6 0.6 7.5 2016 N/A N/A 0.4 0.4 10.1 Long-lived assets with a carrying amount of $18.5 million were written down to a fair value of $0.6 million during 2018 in connection with the financial performance in certain of the Company’s retail stores and shop-in-shops, and the closure of the CALVIN KLEIN 205 W39 NYC brand (formerly Calvin Klein Collection ). Please see Note 17 , “ Exit Activity Costs ,” for further discussion. Fair value of the Company’s retail stores and shop-in-shops was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $17.9 million impairment charge was included in SG&A expenses, of which $0.2 million was recorded in the Tommy Hilfiger North America segment, $1.6 million was recorded in the Tommy Hilfiger International segment, $5.1 million was recorded in the Calvin Klein North America segment, $8.5 million was recorded in the Calvin Klein International segment and $2.5 million was recorded in the Heritage Brands Wholesale segment. Long-lived assets with a carrying amount of $8.1 million were written down to a fair value of $0.6 million during 2017 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $7.5 million impairment charge was included in SG&A expenses, of which $0.4 million was recorded in the Tommy Hilfiger North America segment, $1.9 million was recorded in the Tommy Hilfiger International segment, $1.8 million was recorded in the Calvin Klein North America segment and $3.4 million was recorded in the Calvin Klein International segment. Long-lived assets with a carrying amount of $10.5 million were written down to a fair value of $0.4 million during 2016 in connection with the financial performance in certain of the Company’s retail stores. Fair value was determined based on the estimated discounted future cash flows associated with the assets using sales trends and market participant assumptions. The $10.1 million impairment charge was included in SG&A expenses, of which $1.4 million was recorded in the Tommy Hilfiger North America segment, $4.0 million was recorded in the Tommy Hilfiger International segment, $1.0 million was recorded in the Calvin Klein North America segment and $3.7 million was recorded in the Calvin Klein International segment. | |
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 were as follows: (In millions) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 452.0 $ 452.0 $ 493.9 $ 493.9 Short-term borrowings 12.8 12.8 19.5 19.5 Long-term debt 2,819.4 2,853.7 3,061.3 3,140.9 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 year. 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. |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Accumulated and Projected Benefit Obligations [Table Text Block] | Reconciliations of the changes in the projected benefit obligation (Pension Plans and SERP Plans) and the accumulated benefit obligation (Postretirement Plans) were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2018 2017 2018 2017 Balance at beginning of year $ 648.0 $ 627.5 $ 96.9 $ 87.6 $ 10.5 $ 11.4 Service cost, net of plan expenses 31.4 26.3 5.8 4.5 — — Interest cost 26.0 25.7 3.9 3.8 0.4 0.4 Benefit payments (26.0 ) (29.4 ) (6.1 ) (5.1 ) — — Benefit payments, net of retiree contributions — — — — (1.4 ) (1.6 ) Plan curtailments — (0.3 ) — — — — Plan settlements — (65.3 ) — — — — Actuarial (gain) loss (28.4 ) 63.5 (1.3 ) 6.1 (1.1 ) 0.3 Balance at end of year $ 651.0 $ 648.0 $ 99.2 $ 96.9 $ 8.4 $ 10.5 The actuarial gains in 2018 were due principally to increases in the discount rates. The actuarial losses in 2017 were due principally to decreases in the discount rates. In 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 retiree participants who had 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 non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statement for 2017. The amount of the pension benefit obligation settled was $ 65.3 million. |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | Reconciliations of the fair value of the assets held by the Pension Plans and the funded status were as follows: (In millions) 2018 2017 Fair value of plan assets at beginning of year $ 660.6 $ 659.5 Actual return, net of plan expenses (7.8 ) 95.5 Benefit payments (26.0 ) (29.4 ) Plan settlements — (65.3 ) Company contributions 10.0 0.3 Fair value of plan assets at end of year $ 636.8 $ 660.6 Funded status at end of year $ (14.2 ) $ 12.6 |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Amounts recognized in the Company’s Consolidated Balance Sheets were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2018 2017 2018 2017 Non-current assets $ 1.8 $ 19.1 $ — $ — $ — $ — Current liabilities — — (7.4 ) (7.4 ) (1.1 ) (1.4 ) Non-current liabilities (16.0 ) (6.5 ) (91.8 ) (89.5 ) (7.3 ) (9.1 ) Net amount recognized $ (14.2 ) $ 12.6 $ (99.2 ) $ (96.9 ) $ (8.4 ) $ (10.5 ) |
Schedule of Net Benefit Costs [Table Text Block] | The components of net benefit cost recognized were as follows: Pension Plans SERP Plans Postretirement Plans (In millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 33.7 $ 27.3 $ 25.2 $ 5.8 $ 4.5 $ 4.4 $ — $ — $ — Interest cost 26.0 25.7 29.8 3.9 3.8 3.9 0.4 0.4 0.5 Actuarial loss (gain) 17.4 (3.9 ) (35.4 ) (1.3 ) 6.1 (0.7 ) (1.1 ) 0.3 (3.0 ) Expected return on plan assets (40.3 ) (38.6 ) (35.9 ) — — — — — — Amortization of prior service cost (credit) 0.1 0.1 0.0 — (0.0 ) (0.1 ) — — (0.3 ) Curtailment gain — (0.3 ) — — — — — — — Settlement loss — 9.4 — — — — — — — Total $ 36.9 $ 19.7 $ (16.3 ) $ 8.4 $ 14.4 $ 7.5 $ (0.7 ) $ 0.7 $ (2.8 ) The service cost component of net benefit cost is recorded in SG&A expenses and the other components of net benefit cost are recorded in non-service related pension and postretirement cost (income) in the Company’s Consolidated Income Statements. Please see Note 1, “Summary of Significant Accounting Policies,” for further discussion of the updated guidance related to the presentation of net benefit cost. The actuarial gains in 2018 were due principally to increases in the discount rates. For the Pension Plans, these gains were more than offset by the actuarial loss as a result of the difference between the actual and expected returns on plan assets. |
Schedule of Accumulated Benefit Obligations [Table Text Block] | The accumulated benefit obligation (Pension Plans and SERP Plans) were as follows: Pension Plans SERP Plans (In millions) 2018 2017 2018 2017 Accumulated benefit obligation $ 598.9 $ 595.6 $ 81.5 $ 79.6 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | In 2018, three of the Company’s Pension Plans had projected benefit obligations in excess of plan assets and two of the Company’s Pension Plans had accumulated benefit obligations in excess of plan assets. In 2017, two of the Company’s Pension Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. The balances were as follows: (In millions, except plan count) 2018 2017 Number of plans with projected benefit obligations in excess of plan assets 3 2 Aggregate projected benefit obligation $ 634.7 $ 41.6 Aggregate fair value of related plan assets $ 618.8 $ 35.1 Number of plans with accumulated benefit obligations in excess of plan assets 2 2 Aggregate accumulated benefit obligation $ 38.5 $ 37.4 Aggregate fair value of related plan assets $ 38.0 $ 35.1 In 2018 and 2017, all of the Company’s SERP Plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets as the plans are unfunded. |
Schedule of Assumptions Used [Table Text Block] | Significant weighted average rate assumptions used in determining the projected and accumulated benefit obligations at the end of each year and benefit cost in the following year were as follows: 2018 2017 2016 Discount rate (applies to Pension Plans and SERP Plans) 4.35 % 4.08 % 4.59 % Discount rate (applies to Postretirement Plans) 4.16 % 3.91 % 4.04 % Rate of increase in compensation levels (applies to Pension Plans) 4.24 % 4.24 % 4.27 % Expected long-term rate of return on assets (applies to Pension Plans) 6.50 % 6.25 % 6.50 % To develop the expected long-term rate of return on assets assumption, the Company considered the historical level of the risk premium associated with the asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation. |
Schedule of Allocation of Plan Assets [Table Text Block] | In accordance with the fair value hierarchy described in Note 11 , “ Fair Value Measurements ,” the following tables show the fair value of the total assets of the Pension Plans for each major category as of February 3, 2019 and February 4, 2018 : (In millions) Fair Value Measurements as of February 3, 2019 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 170.9 $ 170.9 $ — $ — International equities (2) 12.2 12.2 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 126.5 60.3 66.2 — Fixed income securities: Government securities (5) 70.3 — 70.3 — Corporate securities (5) 173.7 — 173.7 — Short-term investment funds (6) 16.7 — 16.7 — Total return mutual fund (7) 6.3 6.3 — — Subtotal $ 635.5 $ 249.7 $ 385.8 $ — Other assets and liabilities (8) 1.3 Total $ 636.8 (In millions) Fair Value Measurements as of February 4, 2018 (1) Asset Category Total Quoted Prices In Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Equity securities: United States equities (2) $ 179.8 $ 179.8 $ — $ — International equities (2) 13.0 13.0 — — United States equity fund (3) 58.9 — 58.9 — International equity funds (4) 140.0 65.6 74.4 — Fixed income securities: Government securities (5) 58.1 — 58.1 — Corporate securities (5) 183.3 — 183.3 — Short-term investment funds (6) 18.4 — 18.4 — Total return mutual fund (7) 6.6 6.6 — — Subtotal $ 658.1 $ 265.0 $ 393.1 $ — Other assets and liabilities (8) 2.5 Total $ 660.6 (1) The Company uses third party pricing services to determine the fair values of the financial instruments held by the Pension Plans. The Company obtains an understanding of the pricing services’ valuation methodologies and related inputs and validates a sample of prices provided by the pricing services by reviewing prices from other pricing sources and analyzing pricing data in certain instances. The Company has not adjusted any prices received from the third party pricing services. (2) Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. (3) Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. (4) Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. (5) Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. (6) Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. (7) Valued at the net asset value of the fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities. (8) This category includes other pension assets and liabilities such as pending trades and accrued income. |
Schedule of Expected Benefit Payments [Table Text Block] | The expected benefit payments associated with the Pension Plans and SERP Plans, and expected benefit payments, net of retiree contributions, associated with the Postretirement Plans are as follows: (In millions) Fiscal Year Pension Plans SERP Plans Postretirement Plans 2019 $ 25.5 $ 7.4 $ 1.1 2020 26.1 8.3 1.0 2021 27.0 8.8 1.0 2022 28.1 11.6 0.9 2023 29.1 10.6 0.8 2024-2028 164.1 51.1 3.1 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
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 stock options granted during 2018 , 2017 and 2016 and the resulting weighted average grant date fair value per stock option: 2018 2017 2016 Weighted average risk-free interest rate 2.78 % 2.10 % 1.45 % Weighted average expected stock option term (in years) 6.25 6.25 6.25 Weighted average Company volatility 26.92 % 29.46 % 34.54 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 51.66 $ 33.50 $ 35.62 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 stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock 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 stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity for the year was as follows: (In thousands, except years and per stock option data) Stock Options Weighted Average Exercise Price Per Stock Option Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at February 4, 2018 921 $ 102.18 6.6 $ 45,020 Granted 86 158.53 Exercised 200 103.04 Cancelled 16 116.31 Outstanding at February 3, 2019 791 $ 107.81 6.1 $ 6,568 Exercisable at February 3, 2019 463 $ 102.05 4.9 $ 4,833 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | RSU activity for the year was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 4, 2018 917 $ 103.90 Granted 339 157.85 Vested 328 107.10 Cancelled 81 117.28 Non-vested at February 3, 2019 847 $ 122.97 |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | The fair value of the awards granted was established for each grant on the grant date using the Monte Carlo simulation model. The following summarizes the assumptions used to estimate the fair value of PSUs granted during 2018 , 2017 and 2016 and the resulting weighted average grant date fair value per PSU: 2018 2017 2016 Risk-free interest rate 2.62 % 1.49 % 1.04 % Expected Company volatility 29.78 % 31.29 % 28.33 % Expected annual dividends per share $ 0.15 $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 159.53 $ 96.81 $ 87.16 Certain of the awards granted in 2018 , 2017 and 2016 are subject to a holding period of one year after the vesting date. For such awards, the grant date fair value was discounted 7.09% in 2018, 12.67% in 2017 and 12.99% in 2016 for the restriction of liquidity, which was calculated using the Chaffe model. |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | PSU activity for the year was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 4, 2018 197 $ 93.97 Granted at target 44 159.53 Change due to market condition achieved above target 32 101.23 Vested 78 101.23 Cancelled 1 143.65 Non-vested at February 3, 2019 194 $ 106.76 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents the changes in AOCL, net of related taxes, by component: (In millions) Foreign currency translation adjustments Net unrealized and realized gain (loss) on effective cash flow hedges Total Balance at January 29, 2017 $ (737.7 ) $ 26.9 $ (710.8 ) Other comprehensive income (loss) before reclassifications 490.5 (1)(2) (116.0 ) 374.5 Less: Amounts reclassified from AOCL — (16.9 ) (16.9 ) Other comprehensive income (loss) 490.5 (99.1 ) 391.4 Impact of the U.S. Tax Legislation (4) (2.2 ) 0.1 (2.1 ) Balance at February 4, 2018 $ (249.4 ) $ (72.1 ) $ (321.5 ) Other comprehensive (loss) income before reclassifications (288.2 ) (1)(3) 92.0 (196.2 ) Less: Amounts reclassified from AOCL — (9.8 ) (9.8 ) Other comprehensive (loss) income (288.2 ) 101.8 (186.4 ) Balance at February 3, 2019 $ (537.6 ) $ 29.7 $ (507.9 ) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents reclassifications from AOCL to earnings: (In millions) Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Income Statements 2018 2017 Realized (loss) gain on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ (11.6 ) $ (13.6 ) Cost of goods sold Interest rate swap agreements 1.1 (6.2 ) Interest expense Less: Tax effect (0.7 ) (2.9 ) Income tax expense (benefit) Total, net of tax $ (9.8 ) $ (16.9 ) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $ 73.1 million and $( 70.8 ) million in 2018 and 2017, respectively. (2) Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. (3) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (4) The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Operating and Capital Leases [Table Text Block] | At February 3, 2019 , minimum annual rental commitments under noncancelable leases were as follows: (In millions) Capital Leases Operating Leases Total 2019 $ 5.6 $ 402.4 $ 408.0 2020 4.4 371.9 376.3 2021 3.8 314.0 317.8 2022 1.8 255.0 256.8 2023 0.6 189.9 190.5 Thereafter 2.5 618.7 621.2 Total minimum lease payments $ 18.7 $ 2,151.9 $ 2,170.6 Less: Amount representing interest (2.2 ) Present value of net minimum capital lease payments $ 16.5 |
Operating and Capital Leases, Rent Expense [Table Text Block] | Rent expense was as follows: (In millions) 2018 2017 2016 Minimum $ 465.3 $ 455.2 $ 421.8 Percentage and other 128.6 103.0 90.9 Less: Sublease rental income (1.4 ) (1.8 ) (4.9 ) Total $ 592.5 $ 556.4 $ 507.8 |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | In connection with the Calvin Klein restructuring, the Company recorded pre-tax costs during 2018 and expects to incur total costs as follows: (In millions) Total Costs Expected to be Incurred Costs Incurred During 2018 Severance, termination benefits and other employee costs $ 65.7 $ 27.3 Long-lived asset impairments 55.0 (1) 6.9 Lease/contract termination and other costs 45.0 4.3 Inventory markdowns 5.0 2.2 Total $ 170.7 $ 40.7 (1) Includes the estimated impact of the closure of the flagship store on Madison Avenue in New York, New York, which will be accounted for as an asset impairment following the Company’s adoption of the new lease accounting guidance in the first quarter of 2019. Of the charges for severance, termination benefits and other employee costs, long-lived asset impairments and lease/contract termination and other costs incurred during 2018, $18.9 million relate to SG&A expenses of the Calvin Klein North America segment and $19.6 million relate to SG&A expenses of the Calvin Klein International segment. The charges for inventory markdowns incurred during 2018 were recorded in cost of goods sold of the Company’s Calvin Klein International segment. The Company expects to incur total costs of $170.7 million through the end of 2019 in connection with the restructuring activities, of which approximately $80 million is estimated to relate to the Calvin Klein North America segment and approximately $90 million is estimated to relate to the Calvin Klein International segment. Please see Note 20 , “ Segment Data ,” for further discussion of the Company’s reportable segments. |
Schedule of Restructuring Accrued Liabilities Costs Incurred And Paid [Table Text Block] | The liabilities at February 3, 2019 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows: (In millions) Liability at 2/4/18 Costs Incurred During 2018 Costs Paid During 2018 Liability at 2/3/19 Severance, termination benefits and other employee costs $ — $ 27.3 $ 1.5 $ 25.8 Lease/contract termination and other costs — 4.3 2.0 2.3 Total $ — $ 31.6 $ 3.5 $ 28.1 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
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: (In millions, except per share data) 2018 2017 2016 Net income attributable to PVH Corp. $ 746.4 $ 537.8 $ 549.0 Weighted average common shares outstanding for basic net income per common share 76.5 77.6 80.2 Weighted average impact of dilutive securities 0.8 1.0 0.7 Total shares for diluted net income per common share 77.3 78.6 80.9 Basic net income per common share attributable to PVH Corp. $ 9.75 $ 6.93 $ 6.84 Diluted net income per common share attributable to PVH Corp. $ 9.65 $ 6.84 $ 6.79 |
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: (In millions) 2018 2017 2016 Weighted average potentially dilutive securities 0.4 0.5 0.8 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s revenue by segment was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Revenue – Tommy Hilfiger North America Net sales $ 1,574.3 $ 1,482.2 $ 1,502.4 Royalty revenue 76.2 68.9 48.9 Advertising and other revenue 18.7 16.7 12.0 Total 1,669.2 1,567.8 1,563.3 Revenue – Tommy Hilfiger International Net sales 2,599.7 2,268.0 1,899.4 Royalty revenue 52.7 47.8 44.5 Advertising and other revenue 22.9 9.6 3.6 Total 2,675.3 2,325.4 1,947.5 Revenue – Calvin Klein North America Net sales 1,599.9 1,511.3 1,513.0 Royalty revenue 143.6 146.4 131.7 Advertising and other revenue 49.8 50.1 45.2 Total 1,793.3 1,707.8 1,689.9 Revenue – Calvin Klein International Net sales 1,827.9 1,645.0 1,346.2 Royalty revenue 78.9 80.0 72.9 Advertising and other revenue 31.1 28.8 26.2 Total 1,937.9 1,753.8 1,445.3 Revenue – Heritage Brands Wholesale Net sales 1,293.2 1,274.4 1,271.6 Royalty revenue 20.5 19.5 20.3 Advertising and other revenue 3.7 3.5 3.9 Total 1,317.4 1,297.4 1,295.8 Revenue – Heritage Brands Retail Net sales 259.2 258.5 258.8 Royalty revenue 4.0 3.7 2.3 Advertising and other revenue 0.5 0.4 0.2 Total 263.7 262.6 261.3 Total Revenue Net sales 9,154.2 8,439.4 7,791.4 Royalty revenue 375.9 366.3 320.6 Advertising and other revenue 126.7 109.1 91.1 Total (2) $ 9,656.8 $ 8,914.8 $ 8,203.1 (1) Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. (2) No single customer accounted for more than 10% of the Company’s revenue in 2018 , 2017 or 2016 . The Company’s revenue by distribution channel was as follows: (In millions) 2018 2017 2016 Wholesale net sales $ 4,969.6 $ 4,504.3 $ 4,195.9 Retail net sales 4,184.6 3,935.1 3,595.5 Net sales 9,154.2 8,439.4 7,791.4 Royalty revenue 375.9 366.3 320.6 Advertising and other revenue 126.7 109.1 91.1 Total $ 9,656.8 $ 8,914.8 $ 8,203.1 The Company has not disclosed net sales by product category as it is impracticable to do so. The Company’s income before interest and taxes by segment was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Income before interest and taxes – Tommy Hilfiger North America $ 233.8 $ 97.0 (5)(6)(7) $ 135.8 (11) Income before interest and taxes – Tommy Hilfiger International 377.1 (3) 221.5 (3)(5)(6) 328.3 (12)(13) Income before interest and taxes – Calvin Klein North America 166.7 (4) 184.0 123.9 (14) Income before interest and taxes – Calvin Klein International 211.5 (4) 226.5 209.6 Income before interest and taxes – Heritage Brands Wholesale 83.3 96.7 90.2 Income before interest and taxes – Heritage Brands Retail 7.4 7.6 8.8 Loss before interest and taxes – Corporate (2) (188.1 ) (200.9 ) (8)(9)(10) (107.4 ) (15) Income before interest and taxes $ 891.7 $ 632.4 $ 789.2 (1) Income (loss) before interest and taxes was impacted by fluctuations 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 Item 7 of this report for 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 investments in Gazal and Karl Lagerfeld 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, certain digital investments, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial (losses) gains on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $( 15.0 ) million, $( 2.5 ) million and $ 39.1 million in 2018 , 2017 and 2016 , respectively. (3) Income before interest and taxes for 2018 and 2017 included costs of $ 23.6 million and $ 26.9 million, respectively, associated with the TH China acquisition, primarily consisting of noncash amortization of short-lived assets. Please see Note 3 , “ Acquisitions ,” for further discussion. (4) Income before interest and taxes for 2018 included costs of $ 40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $ 18.9 million in Calvin Klein North America and $ 21.8 million in Calvin Klein International. Please see Note 17 , “ Exit Activity Costs ,” for further discussion. (5) Income before interest and taxes for 2017 included costs of $ 82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $ 34.7 million in Tommy Hilfiger North America and $ 48.2 million in Tommy Hilfiger International. (6) Income before interest and taxes for 2017 included costs of $ 54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). 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. (7) Income before interest and taxes for 2017 included costs of $ 19.2 million associated with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense. (8) Loss before interest and taxes for 2017 included costs of $ 23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 8 , “ Debt ,” for further discussion. (9) Loss before interest and taxes for 2017 included net costs of $ 8.0 million associated with the consolidation within the Company’s warehouse and distribution network in North America, which included a $ 3.1 million gain on the sale of a warehouse and distribution center. (10) Loss before interest and taxes for 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 12 , “ Retirement and Benefit Plans ,” for further discussion. (11) Income before interest and taxes for 2016 included costs of $ 11.0 million associated with the early termination of the previous license agreement for the Tommy Hilfiger men’s tailored clothing business in North America (the “TH men’s tailored license termination”) in order to consolidate with Peerless Clothing International, Inc. the Company’s men’s tailored businesses for all of its brands in North America. (12) Income before interest and taxes for 2016 included a gain of $ 18.1 million associated with a payment made to the Company to exit a TOMMY HILFIGER flagship store in Europe. (13) Income before interest and taxes for 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 $ 76.9 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 further discussion. (14) Income before interest and taxes for 2016 included a noncash loss of $ 81.8 million related to the Mexico deconsolidation, including $ 56.7 million related to foreign currency translation adjustment losses previously recorded in AOCL. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion. (15) Loss before interest and taxes for 2016 included costs of $ 15.8 million related to the Company’s amendment of its 2014 facilities. Please see Note 8 , “ Debt ,” for further discussion. Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America Segment. The Company’s identifiable assets by segment were as follows: (In millions) 2018 2017 2016 Identifiable Assets (1) Tommy Hilfiger North America $ 1,330.5 $ 1,276.5 $ 1,229.8 Tommy Hilfiger International 3,949.3 4,047.3 3,481.3 Calvin Klein North America 1,817.9 1,836.9 1,752.1 Calvin Klein International 3,114.9 3,138.0 2,821.0 Heritage Brands Wholesale 1,178.1 1,123.5 1,203.5 Heritage Brands Retail 86.6 81.6 75.5 Corporate (2) 386.4 381.9 504.7 Total $ 11,863.7 $ 11,885.7 $ 11,067.9 Depreciation and Amortization Tommy Hilfiger North America $ 37.9 $ 45.1 $ 35.3 Tommy Hilfiger International (3) 133.9 124.5 139.2 Calvin Klein North America 41.5 43.8 47.6 Calvin Klein International 90.6 83.1 70.5 Heritage Brands Wholesale 14.9 14.3 15.6 Heritage Brands Retail 5.6 5.3 5.4 Corporate 10.4 8.8 8.2 Total $ 334.8 $ 324.9 $ 321.8 Identifiable Capital Expenditures (4) Tommy Hilfiger North America (5) $ 56.1 $ 82.0 $ 26.9 Tommy Hilfiger International 143.9 126.7 82.0 Calvin Klein North America 36.0 36.8 39.3 Calvin Klein International 102.7 96.6 79.5 Heritage Brands Wholesale 15.8 8.0 14.1 Heritage Brands Retail 8.5 4.2 7.0 Corporate 18.3 10.1 8.9 Total $ 381.3 $ 364.4 $ 257.7 (1) Identifiable assets included the impact of changes in foreign currency exchange rates. (2) The changes in Corporate identifiable assets in 2017 were primarily due to changes in cash and cash equivalents. (3) Depreciation and amortization in 2018, 2017 and 2016 included $ 24.6 million, $ 26.8 million and $ 47.1 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition. Please see Note 3 , “ Acquisitions ,” for further discussion. (4) Capital expenditures in 2018 included $ 43.7 million of accruals that will not be paid until 2019. Capital expenditures in 2017 included $ 41.9 million of accruals that were not paid until 2018 . Capital expenditures in 2016 included $ 35.6 million of accruals that were not paid until 2017 . (5) The increase in Tommy Hilfiger North America capital expenditures in 2017 was primarily driven by the relocation of the Tommy Hilfiger office in New York. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Property, plant and equipment, net based on the location where such assets are held, was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Domestic $ 500.5 $ 449.2 $ 412.8 Canada 28.8 30.0 31.0 Europe 362.7 325.5 230.5 Asia 73.4 73.8 66.8 Other foreign 19.1 21.3 18.8 Total $ 984.5 $ 899.8 $ 759.9 (1) Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. Revenue, based on location of origin, was as follows: (In millions) 2018 (1) 2017 (1) 2016 (1) Domestic $ 4,481.3 $ 4,290.1 $ 4,226.6 Canada 528.8 512.2 484.5 Europe 3,362.1 2,907.2 2,372.7 Asia 1,163.7 1,059.3 910.4 Other foreign (2) 120.9 146.0 208.9 Total $ 9,656.8 $ 8,914.8 $ 8,203.1 (1) Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. (2) Other foreign revenue in 2017 included the revenue reduction resulting from the Mexico deconsolidation in the fourth quarter of 2016. Please see Note 5 , “ Investments in Unconsolidated Affiliates ,” for further discussion of the Mexico deconsolidation. |
OTHER COMMENTS (Tables)
OTHER COMMENTS (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Other Comments [Abstract] | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following table presents the activity related to the Company’s asset retirement liabilities, included in other liabilities in the Company’s Consolidated Balance Sheets, for each of the last two years: (In millions) 2018 2017 Balance at beginning of year $ 27.1 $ 21.8 Liabilities incurred 7.4 4.1 Liabilities settled (payments) (1.7 ) (1.0 ) Accretion expense 0.4 0.5 Revisions in estimated cash flows (0.1 ) 0.3 Currency translation adjustment (0.8 ) 1.4 Balance at end of year $ 32.3 $ 27.1 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Significant Accounting Policies | |||
Fiscal year, minimum number of weeks | 52 Weeks | 52 Weeks | |
Fiscal year, maximum number of weeks | 53 Weeks | ||
Cash equivalents, maturity, maximum months | 3 months | ||
Cash and cash equivalents also include Receivables, Credit Card, Third Party Intermediaries collectible in | one week | ||
Percentage of goodwill fair value in excess of carrying amount | 50.00% | ||
Warehousing and distribution expenses | $ 307.7 | $ 272.6 | $ 246.5 |
Advertising expense | 526 | 501.3 | 416.3 |
Prepaid Advertising | $ 7.3 | 3.9 | |
Percent likelihood that tax position will be fully sustained | 50.00% | ||
Foreign currency transaction loss (gain) | $ 17.3 | $ (10.2) | $ 4.7 |
Ethiopia Joint Venture [Member] | |||
Significant Accounting Policies | |||
Non-Controlling Interest, Ownership Percentage by Parent | 75.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 263.9 | $ 252.2 | $ 228.4 |
Buildings and building improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 15 years | ||
Buildings and building improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 40 years | ||
Machinery, software and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 2 years | ||
Machinery, software and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 10 years | ||
Furniture and fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 2 years | ||
Furniture and fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 10 years | ||
Shop-in-shops [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 3 years | ||
Shop-in-shops [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life in years | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Adopted Accounting Guidance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 06, 2018 | Feb. 04, 2018 | Jan. 29, 2017 | |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1.9) | ||
Accounting Standards Update 2014-09 [Member] | Deferred Revenue [Domain] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1.5 | ||
Accounting Standards Update 2014-09 [Member] | Accrued Expenses [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0.4 | ||
Accounting Standards Update 2014-09 [Member] | Liabilities related to Loyalty Awards [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of Liabilities from Accrued Expenses to Deferred Revenue Related to the New Revenue Guidance | 7.2 | ||
Accounting Standards Update 2014-09 [Member] | Liabilities related to Unredeemed Gift Cards [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of Liabilities from Accrued Expenses to Deferred Revenue Related to the New Revenue Guidance | 6.9 | ||
Accounting Standards Update 2016-15 [Member] | Operating Activities [Domain] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | $ (55.6) | $ (53.1) | |
Accounting Standards Update 2016-15 [Member] | Investing Activities [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | 56.4 | 53.7 | |
Accounting Standards Update 2016-15 [Member] | Financing Activities [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | (0.8) | (0.6) | |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (8) | ||
Accounting Standards Update 2016-16 [Member] | Other Assets [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (8) | ||
Accounting Standards Update 2017-07 [Member] | Non-service related pension and posteretirement cost (income) [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | 3 | (41.2) | |
Accounting Standards Update 2017-07 [Member] | Selling, General and Administrative Expenses [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | $ (3) | $ 41.2 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Guidance Issued But Not Adopted (Details) - Accounting Standards Update 2016-02 [Member] $ in Billions | Feb. 03, 2019USD ($) |
Item Effected [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 1.7 |
Operating Lease, Liability | $ 1.8 |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | ||
Deferred Revenue [Line Items] | |||
Payment terms, due from customer | Payment is typically due within 30 to 90 days. | ||
Long-term deferred revenue liabilities (included in Other Liabilities) | $ 2.3 | $ 3.9 | |
Movement in Deferred Revenue [Roll Forward] | |||
Deferred revenue, beginning balance | 39.2 | ||
Impact of adopting the new revenue standard | [1] | 15.6 | |
Net additions to deferred revenue during the period | 61.3 | ||
Reductions in deferred revenue for revenue recognized during the period | [2] | (50.8) | |
Deferred revenue, ending balance | $ 65.3 | ||
[1] | Please see Note 1, “Summary of Significant Accounting Policies,” for further discussion of the adoption of the new revenue standard. | ||
[2] | Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at February 4, 2018, as adjusted for the impact of adopting the new revenue standard, and does not contemplate revenue recognized from amounts deferred after February 4, 2018. |
REVENUE Revenue, Remaining Perf
REVENUE Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Feb. 03, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-02-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-02-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 292.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 235.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 771.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Apr. 20, 2018 | Sep. 01, 2017 | Mar. 30, 2017 | Apr. 13, 2016 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 |
Business Acquisition [Line Items] | |||||||
Gain to write-up equity investment in joint venture to fair value | $ 0 | $ 0 | $ 153.1 | ||||
Geoffrey Beene Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 17 | ||||||
Payments to Acquire Intangible Assets | 15.9 | ||||||
Noncash Or Part Noncash Acquisition, Prepaid Royalties Assumed | 0.7 | ||||||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 0.4 | ||||||
Belgian Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid to acquire business | $ 12 | ||||||
Goodwill | 12.4 | 12.4 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | (0.4) | ||||||
Belgian Acquisition [Member] | Tommy Hilfiger International [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 11.1 | 11.1 | |||||
Belgian Acquisition [Member] | Calvin Klein North America [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 0 | ||||||
Belgian Acquisition [Member] | Calvin Klein International [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1.3 | 1.3 | |||||
Belgian Acquisition [Member] | Heritage Brands Wholesale [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 0 | ||||||
True & Co Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid to acquire business | $ 28.5 | ||||||
Goodwill | 20.9 | 20.9 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 7.6 | ||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 7.3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 0.4 | ||||||
True & Co Acquisition [Member] | Tommy Hilfiger International [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 0 | ||||||
True & Co Acquisition [Member] | Calvin Klein North America [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 5.4 | 5.4 | |||||
True & Co Acquisition [Member] | Calvin Klein International [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 4.8 | 4.8 | |||||
True & Co Acquisition [Member] | Heritage Brands Wholesale [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 10.7 | $ 10.7 | |||||
Tommy Hilfiger China Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid to acquire business | $ 263 | ||||||
Goodwill | 258.6 | ||||||
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 Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||
Fair Value of Acquired Interest Not Already Owned | $ 265.8 | ||||||
Pre-Acquisition Accounts Receivable | $ 2.8 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% | ||||||
Business Combination, Step Acquisition, Total Fair Value | $ 471.4 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 110.6 | ||||||
Tommy Hilfiger China Acquisition [Member] | Reacquired License Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 72 | ||||||
Tommy Hilfiger China Acquisition [Member] | Order 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] | Tommy Hilfiger China Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 45.00% | ||||||
Equity Method Investments, Carrying Value Prior To Step Acquisition Remeasurement | $ 52.5 | ||||||
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] | |||||||
Business Acquisition [Line Items] | |||||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | ||||||
Fair Value, Inputs, Level 3 [Member] | Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 205.6 | ||||||
Measurement Input, Discount for Lack of Marketability [Member] | Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value Input | 10.00% | ||||||
Measurement Input, Discount Rate [Member] | Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger China Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value Input | 14.40% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 2,398.5 | $ 2,129.7 | ||
Less: Accumulated depreciation | (1,414) | (1,229.9) | ||
Property, plant and equipment, net | [1] | 984.5 | 899.8 | $ 759.9 |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 1 | 1 | ||
Buildings and building improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 54.8 | 55.3 | ||
Machinery, software and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 697.6 | 609.5 | ||
Furniture and fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 540 | 494.9 | ||
Shop-in-shops [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 230.9 | 208.6 | ||
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 790.3 | 724.5 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 83.9 | $ 35.9 | ||
[1] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Oct. 29, 2017 | Aug. 02, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Payment received on advance to unconsolidated affiliate | $ 0 | $ 6.3 | $ 6.2 | ||
Net loss on deconsolidation of subsidiaries and joint venture | 0 | 0 | (81.8) | ||
Payments made to unconsolidated affiliates | 0 | 14.2 | 32 | ||
Investments in Unconsolidated Affiliates | $ 207.1 | 208.4 | |||
PVH Australia Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Dividends received from unconsolidated affiliates | $ 6.3 | 3.1 | $ 1.5 | ||
Gazal Corporation Limited [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 22.00% | 10.00% | |||
Dividends received from unconsolidated affiliates | $ 1.3 | 0.6 | |||
Payments made to unconsolidated affiliates | $ 7.5 | $ 9.2 | |||
Calvin Klein India Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 51.00% | |||
Equity Method Investment, Change in Ownership Percentage | (1.00%) | ||||
Proceeds from Equity Method Investment, Sale of Ownership Percentage | $ 0.4 | ||||
Payments made to unconsolidated affiliates | 1.6 | 1.5 | |||
Tommy Hilfiger India Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Payments made to unconsolidated affiliates | 2.7 | ||||
Tommy Hilfiger Brazil Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 41.00% | 40.00% | |||
Notes Receivable, Related Parties | $ 12.5 | ||||
Payment received on advance to unconsolidated affiliate | 6.2 | ||||
Payments made to unconsolidated affiliates | $ 2.5 | 1.5 | |||
Tommy Hilfiger Brazil Joint Venture [Member] | Change In Ownership Percentage of Equity Method Investment [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Change in Ownership Percentage | 1.00% | ||||
Payments made to unconsolidated affiliates | $ 0.3 | ||||
PVH Mexico Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||
Net loss on deconsolidation of subsidiaries and joint venture | 81.8 | ||||
Deconsolidation, Foreign Currency Translation Adjustment Loss, Amount | 56.7 | ||||
Fair Value, Net Asset (Liability) | 64.3 | ||||
Payments made to unconsolidated affiliates | $ 7.3 | ||||
Karl Lagerfeld [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 8.00% | ||||
Measurement Input, Discount Rate [Member] | PVH Mexico Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mexico Net Assets Measurement Input | 15.00% | ||||
Measurement Input, Discount for Lack of Marketability [Member] | PVH Mexico Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mexico Net Assets Measurement Input | 10.00% | ||||
Calvin Klein North America [Member] | PVH Mexico Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net loss on deconsolidation of subsidiaries and joint venture | $ 81.8 |
REDEEMABLE NON-CONTROLLING IN_2
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Jun. 29, 2016 | |
Non-controlling Interest [Line Items] | ||||
Redeemable Non-Controlling Interest | $ 0.2 | $ 2 | ||
Contributions from non-controlling interest | $ 0 | 1.7 | $ 2.2 | |
Ethiopia Joint Venture [Member] | ||||
Non-controlling Interest [Line Items] | ||||
Non-Controlling Interest, Ownership Percentage by Parent | 75.00% | |||
Redeemable Non-Controlling Interest, Equity, Fair Value | $ 0.1 | |||
Redeemable Non-Controlling Interest | $ 0.2 | $ 2 | ||
Net loss attributable to redeemable non-controlling interest | $ 1.8 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Millions | Sep. 01, 2017 | Mar. 30, 2017 | Feb. 03, 2019 | Feb. 04, 2018 |
Goodwill [Line Items] | ||||
Contingent purchase price payments, percentage of total worldwide net sales | 1.15% | |||
Contingent purchase price payment terms | 45 days | |||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | $ 3,846.6 | $ 3,481.8 | ||
Accumulated impairment losses, beginning of period | (11.9) | (11.9) | ||
Goodwill, net, beginning of period | 3,834.7 | 3,469.9 | ||
Contingent purchase price payments to Mr. Calvin Klein | 1.7 | 57.3 | ||
Currency translation | (165.9) | 274.2 | ||
Goodwill, gross, end of period | 3,682.4 | 3,846.6 | ||
Accumulated impairment losses, end of period | (11.9) | (11.9) | ||
Goodwill, net, end of period | 3,670.5 | 3,834.7 | ||
Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 780.2 | 739.4 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 780.2 | 739.4 | ||
Contingent purchase price payments to Mr. Calvin Klein | 1 | 34.2 | ||
Currency translation | (0.9) | 1.2 | ||
Goodwill, gross, end of period | 780.3 | 780.2 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 780.3 | 780.2 | ||
Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 942 | 864.5 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 942 | 864.5 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0.7 | 23.1 | ||
Currency translation | (33.2) | 48.3 | ||
Goodwill, gross, end of period | 909.5 | 942 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 909.5 | 942 | ||
Tommy Hilfiger North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 204.4 | 204.4 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 204.4 | 204.4 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | 0 | ||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 204.4 | 204.4 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 204.4 | 204.4 | ||
Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 1,661.6 | 1,425.8 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 1,661.6 | 1,425.8 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | 0 | ||
Currency translation | (131.8) | 224.7 | ||
Goodwill, gross, end of period | 1,529.8 | 1,661.6 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 1,529.8 | 1,661.6 | ||
Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 246.5 | 235.8 | ||
Accumulated impairment losses, beginning of period | 0 | 0 | ||
Goodwill, net, beginning of period | 246.5 | 235.8 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | 0 | ||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 246.5 | 246.5 | ||
Accumulated impairment losses, end of period | 0 | 0 | ||
Goodwill, net, end of period | 246.5 | 246.5 | ||
Heritage Brands Retail [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning of period | 11.9 | 11.9 | ||
Accumulated impairment losses, beginning of period | (11.9) | (11.9) | ||
Goodwill, net, beginning of period | 0 | 0 | ||
Contingent purchase price payments to Mr. Calvin Klein | 0 | 0 | ||
Currency translation | 0 | 0 | ||
Goodwill, gross, end of period | 11.9 | 11.9 | ||
Accumulated impairment losses, end of period | (11.9) | (11.9) | ||
Goodwill, net, end of period | $ 0 | 0 | ||
True & Co Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 20.9 | 20.9 | ||
True & Co Acquisition [Member] | Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 5.4 | 5.4 | ||
True & Co Acquisition [Member] | Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 4.8 | 4.8 | ||
True & Co Acquisition [Member] | Tommy Hilfiger North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
True & Co Acquisition [Member] | Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
True & Co Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 10.7 | 10.7 | ||
True & Co Acquisition [Member] | Heritage Brands Retail [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
Belgian Acquisition [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 12.4 | 12.4 | ||
Belgian Acquisition [Member] | Calvin Klein North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
Belgian Acquisition [Member] | Calvin Klein International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 1.3 | 1.3 | ||
Belgian Acquisition [Member] | Tommy Hilfiger North America [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
Belgian Acquisition [Member] | Tommy Hilfiger International [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 11.1 | 11.1 | ||
Belgian Acquisition [Member] | Heritage Brands Wholesale [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 0 | |||
Belgian Acquisition [Member] | Heritage Brands Retail [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 831.2 | $ 875.4 |
Finite-Lived Intangible Assets, Accumulated Amortization | (340.5) | (293.8) |
Finite-Lived Intangible Assets, Net | 490.7 | 581.6 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 3,078.5 | 3,145 |
Intangible Assets, Gross (Excluding Goodwill) | 3,909.7 | 4,020.4 |
Intangible Assets, Accumulated Amortization | (340.5) | (293.8) |
Intangible Assets, Net (Excluding Goodwill) | 3,569.2 | 3,726.6 |
Amortization of Intangible Assets | 62.8 | 65 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2019 | 39 | |
2020 | 39 | |
2021 | 38.7 | |
2022 | 36.5 | |
2023 | 23.3 | |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 2,863.7 | 2,928.4 |
Perpetual License Rights [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 203.8 | 204.7 |
Reacquired Perpetual License Rights [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 11 | 11.9 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 307.4 | 324.7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (186.1) | (169.4) |
Finite-Lived Intangible Assets, Net | 121.3 | 155.3 |
Reacquired License Rights [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 523.8 | 550.7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (154.4) | (124.4) |
Finite-Lived Intangible Assets, Net | $ 369.4 | $ 426.3 |
DEBT Short-Term Lines of Credit
DEBT Short-Term Lines of Credit, Overdraft Facilities, Senior Secured Credit Facilities and Short-Term Revolving Credit Facilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
2016 Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, amount outstanding | $ 7.8 | |
Short-term debt, weighted average interest rate | 4.45% | |
Maximum amount of borrowings outstanding during the period | $ 274.4 | |
Line of Credit, Foreign Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 101.9 | |
Line of credit facility, amount outstanding | $ 5.1 | $ 19.5 |
Short-term debt, weighted average interest rate | 0.21% | 1.19% |
Maximum amount of borrowings outstanding during the period | $ 38.6 |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) $ in Millions | Feb. 03, 2019USD ($) |
Debt Instrument [Line Items] | |
Mandatory long-term debt repayment, 2019 | $ 0 |
Mandatory long-term debt repayment, 2020 | 123.5 |
Mandatory long-term debt repayment, 2021 | 1,525.8 |
Mandatory long-term debt repayment, 2022 | 0 |
Mandatory long-term debt repayment, 2023 | $ 100 |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) € in Millions, $ in Millions | Jan. 05, 2018USD ($) | May 19, 2016USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2016EUR (€) | Mar. 31, 2019 | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | Feb. 04, 2018EUR (€) | Jan. 29, 2017USD ($) | Mar. 31, 2018 | Mar. 31, 2021 | Feb. 18, 2020USD ($) | Feb. 19, 2019USD ($) | Feb. 03, 2019EUR (€) | Aug. 06, 2018USD ($) | Feb. 20, 2018USD ($) | Feb. 16, 2018 | May 19, 2016EUR (€) | Feb. 17, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt, carrying amount | $ 2,819.4 | $ 3,061.3 | ||||||||||||||||||
Long-term Debt, Current Maturities | 0 | 0 | ||||||||||||||||||
Long-term Debt, Excluding Current Maturities | $ 2,819.4 | 3,061.3 | ||||||||||||||||||
Percentage of long-term debt at fixed interest rates | 50.00% | 50.00% | ||||||||||||||||||
Debt modification and extinguishment costs | $ 0 | 23.9 | $ 15.8 | |||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 114.6 | 120.2 | 109.8 | |||||||||||||||||
2020 Interest Rate Swap - January 2019 Designation - February 2021 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 0 | $ 50 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 2.4187% | 2.4187% | ||||||||||||||||||
2019 Interest Rate Swap - November 2018 Designation - February 2021 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 0 | $ 139.2 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 2.8645% | 2.8645% | ||||||||||||||||||
2019 Interest Rate Swap - October 2018 Designation - February 2021 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 0 | $ 115.7 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 2.9975% | 2.9975% | ||||||||||||||||||
2018 Interest Rate Swap - June 2018 Designation - February 2021 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 50 | $ 50 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 2.6825% | 2.6825% | ||||||||||||||||||
2018 Interest Rate Swap - June 2017 Designation - February 2020 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 181.5 | $ 306.5 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 1.566% | 1.566% | ||||||||||||||||||
2016 Interest Rate Swap - July 2014 Designation - February 2018 Expiration | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, Notional Amount | $ 0 | $ 682.6 | ||||||||||||||||||
Derivative, Basis Spread on Variable Rate | 1.924% | |||||||||||||||||||
Senior notes due 2022 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Write-off of deferred debt issuance costs | $ 8.1 | |||||||||||||||||||
Repayment of senior senior secured credit facilities | 0 | 715.8 | 0 | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||||||||||||||||
Debt instrument, face amount | $ 700 | |||||||||||||||||||
Payment of Debt Extinguishment Costs | $ 15.8 | |||||||||||||||||||
Senior Debenture Due 2023 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Senior Notes | 99.6 | 99.5 | ||||||||||||||||||
Long-term Debt, Gross | $ 100 | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | ||||||||||||||||||
Senior Notes Due 2024 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Senior Notes | [1] | $ 396.5 | 430.8 | |||||||||||||||||
Payments of Debt Issuance Costs | $ 7.3 | € 6.4 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | ||||||||||||||||||
Debt instrument, face amount | € | € 350 | |||||||||||||||||||
Senior Notes Due 2027 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Senior Notes | [1] | $ 679.5 | 738.9 | |||||||||||||||||
Payments of Debt Issuance Costs | 10.3 | € 8.7 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||||||||||||||||||
Debt instrument, face amount | € | € 600 | |||||||||||||||||||
United States of America, Dollars | United States Federal Funds Rate [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||||||||
United States of America, Dollars | One month adjusted Eurocurrency rate loan [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||||
2016 Facilities Term Loan A [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Secured Debt | $ 2,347.4 | $ 1,643.8 | 1,792.1 | |||||||||||||||||
Increase In Term Loan Borrowings | 582 | |||||||||||||||||||
Term Loan A Repayment Percentage Quarters Following Amendment | 7.50% | 5.00% | 10.00% | |||||||||||||||||
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] | ||||||||||||||||||||
Maximum Amount Of Commitment Increase | 1,350 | |||||||||||||||||||
Payments of Debt Issuance Costs | 10.9 | |||||||||||||||||||
Debt modification and extinguishment costs | 4.6 | |||||||||||||||||||
Deferred Debt Issuance Costs | 6.3 | |||||||||||||||||||
Write-off of deferred debt issuance costs | 11.2 | |||||||||||||||||||
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 and 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% | |||||||||||||||||||
2016 and 2014 facilities [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayment of senior senior secured credit facilities | $ 150 | $ 250 | $ 350 | |||||||||||||||||
2016 Facilities [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of Credit, Current | 7.8 | |||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 20.4 | |||||||||||||||||||
[1] | The carrying amount of the Company’s senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
INCOME TAXES Domestic and Forei
INCOME TAXES Domestic and Foreign Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (5.3) | $ (102) | $ 60.9 |
Foreign | 780.9 | 612.2 | 613.3 |
Income before taxes | $ 775.6 | $ 510.2 | $ 674.2 |
INCOME TAXES Current and Deferr
INCOME TAXES Current and Deferred Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |||
Income Tax Disclosure [Abstract] | |||||
Net Tax Benefit related to the U.S. Tax Legislation | $ 24.7 | $ 52.8 | |||
Net Tax Benefit related to the 2019 Dutch Tax Plan | 41.1 | ||||
Income Taxes Paid, Net [Abstract] | |||||
Income taxes paid | 138.4 | 164.6 | $ 85.3 | ||
Federal: | |||||
Current | (30.5) | 51.7 | (2.7) | ||
Deferred | (53.2) | [1] | (198.3) | [1] | (9.3) |
State and local: | |||||
Current | 4.6 | 3.5 | (2.4) | ||
Deferred | 9.6 | (7.8) | (0.9) | ||
Foreign: | |||||
Current | 170.2 | 143.5 | 129.3 | ||
Deferred | (69.7) | [2] | (18.5) | 11.5 | |
Total | $ 31 | $ (25.9) | $ 125.5 | ||
[1] | Includes a $24.7 million benefit in 2018 and a $52.8 million benefit in 2017 related to the U.S. Tax Legislation. | ||||
[2] | Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021. |
INCOME TAXES Tax Rate Reconcili
INCOME TAXES Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||||
Income Tax Disclosure [Abstract] | ||||||
Statutory federal income tax rate | [1] | 21.00% | 33.70% | 35.00% | ||
State and local income taxes, net of federal income tax benefit | 0.50% | (1.10%) | 0.40% | |||
Effects of international jurisdictions, including foreign tax credits | (9.50%) | [2] | (20.30%) | (12.90%) | ||
Change in estimates for uncertain tax positions | (3.70%) | (7.50%) | (3.70%) | |||
Change in valuation allowance | (5.30%) | [3] | 11.00% | [4] | (0.10%) | |
One-time transition tax due to U.S. Tax Legislation | 0.00% | 34.00% | 0.00% | |||
Remeasurement due to U.S. Tax Legislation | 0.20% | (51.90%) | 0.00% | |||
Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII) | 1.90% | 0.00% | 0.00% | |||
Excess tax benefits related to stock-based compensation | (0.60%) | (2.80%) | 0.00% | |||
Other, net | (0.50%) | (0.20%) | (0.10%) | |||
Effective income tax rate | 4.00% | (5.10%) | 18.60% | |||
Net Tax Benefit related to the 2019 Dutch Tax Plan | $ 41.1 | |||||
Net Tax Benefit related to the U.S. Tax Legislation | 24.7 | $ 52.8 | ||||
Remeasurement of net deferred tax liabilities to lower United States statutory rate due to U.S. Tax Legislation | (1.6) | 265 | ||||
Valuation allowance recognized on foreign tax credits resulting from U.S. Tax Legislation | 38.5 | |||||
Valuation allowance released on foreign tax credits resulting from U.S. Tax Legislation | $ (26.3) | |||||
Transition tax on undistributed foreign earnings resulting from U.S. Tax Legislation | $ 173.7 | |||||
International Tax Jurisdictions | 40 | |||||
[1] | The United States statutory federal income tax rate changed from 35.0% to 21.0%, effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7%. | |||||
[2] | Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the 2019 Dutch Tax Plan. | |||||
[3] | Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. | |||||
[4] | Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. |
INCOME TAXES Deferred Tax Asset
INCOME TAXES Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 |
Gross Deferred Tax Assets [Abstract] | ||
Tax loss and credit carryforwards | $ 230.1 | $ 247 |
Employee compensation and benefits | 83.1 | 72.2 |
Inventories | 26.8 | 22.1 |
Accounts receivable | 17.1 | 17.6 |
Accrued expenses | 30.2 | 25.5 |
Derivative financial instruments | 0 | 18.3 |
Other, net | 13.8 | 8.7 |
Subtotal | 401.1 | 411.4 |
Valuation allowances | (62.6) | (106.3) |
Total gross deferred tax assets, net of valuation allowances | 338.5 | 305.1 |
Gross Deferred Tax Liabilities [Abstract] | ||
Intangibles | (825.3) | (898.9) |
Property, plant and equipment | (33.6) | (43.8) |
Derivative financial instruments | (4.3) | 0 |
Total gross deferred tax liabilities | (863.2) | (942.7) |
Net deferred tax liability | (524.7) | $ (637.6) |
Other Data: | ||
Net operating loss carryforwards | 240.4 | |
Domestic Tax Authority [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 3.2 | |
State and Local Jurisdiction [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 48.2 | |
Foreign Tax Authority [Member] | ||
Other Data: | ||
Net operating loss carryforwards | 11.7 | |
Federal State And Local Jurisdiction [Member] | ||
Other Data: | ||
Tax credit and other carryforwards | $ 177.3 |
INCOME TAXES Unrecognized Tax B
INCOME TAXES Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 297.1 | $ 245.6 | $ 226.8 |
Increases related to prior year tax positions | 13.9 | 15.4 | 2.8 |
Decreases related to prior year tax positions | (24.9) | (10.3) | (9.9) |
Increases related to current year tax positions | 25.5 | 79.7 | 52 |
Lapses in statute of limitations | (54.7) | (46.3) | (24.4) |
Effects of foreign currency translation | (8.6) | (1.7) | |
Effects of foreign currency translation | 13 | ||
Balance at end of year | 248.3 | 297.1 | 245.6 |
Other Uncertain Tax Position Data: | |||
Interest and Penalties - Expense | 12.1 | 0.9 | 1 |
Interest and penalties accrued in balance sheets | 44.1 | $ 29.8 | $ 27.8 |
Minimum [Member] | |||
Other Uncertain Tax Position Data: | |||
Reasonably possible reduction in uncertain tax positions within 12 months, range | 40 | ||
Maximum [Member] | |||
Other Uncertain Tax Position Data: | |||
Reasonably possible reduction in uncertain tax positions within 12 months, range | $ 65 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | Feb. 03, 2019EUR (€) | ||
Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 25.5 | $ 2.5 | ||
Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 1.4 | ||
Accrued Expenses [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 6.7 | 63.4 | ||
Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 2.3 | 4.1 | ||
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Long-term debt, fair value | 1,098.3 | 1,226.7 | ||
Long-term debt, carrying amount | 1,076 | 1,169.7 | ||
Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 1,183.6 | |||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.1 | 0.5 | ||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Accrued Expenses [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 2 | 0.9 | ||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | 0 | ||
Cost of Sales [Member] | Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Net Gain Reclassification from AOCL to Income, Estimate of time to transfer | 12 months | |||
Derivative Instruments, Net gain Reclassification from AOCL to Income, Estimated Net Amount to be Transferred | $ 32.1 | |||
Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Net Gain Reclassification from AOCL to Income, Estimate of time to transfer | 12 months | |||
Derivative Instruments, Net gain Reclassification from AOCL to Income, Estimated Net Amount to be Transferred | $ 0.2 | |||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, (Loss) Gain Recognized in (Expense) Income, Net | (1.5) | (4.6) | ||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign currency option contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, (Loss) Gain Recognized in (Expense) Income, Net | 0 | (4.3) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 190.1 | (218.3) | ||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into Income (expense), Effective Portion, Net | (10.5) | (19.8) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 25.4 | 2 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 1.4 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Accrued Expenses [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 4.7 | 62.5 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 2.3 | 4.1 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | (2.6) | 3.2 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 1.4 | 1.1 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0 | 1.3 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Accrued Expenses [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 1.2 | 0.1 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 1.6 | 0 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 95.6 | (99.5) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Other comprehensive (loss) income before reclassifications, net unrealized and realized gain (loss) on effective cash flow hedges, net of tax | 97.1 | (122) | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 24 | 0.9 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 0.1 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Accrued Expenses [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 3.5 | 62.4 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 0.7 | 4.1 | ||
Cash Flow Hedging [Member] | Cost of Sales [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into Income (expense), Effective Portion, Net | (11.6) | (13.6) | ||
Cash Flow Hedging [Member] | Interest Expense [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into Income (expense), Effective Portion, Net | 1.1 | (6.2) | ||
Senior Notes Due 2027 [Member] | ||||
Derivative [Line Items] | ||||
Debt instrument, face amount | € | € 600 | |||
Long-term debt, carrying amount | [1] | $ 679.5 | 738.9 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||
Senior Notes Due 2024 [Member] | ||||
Derivative [Line Items] | ||||
Debt instrument, face amount | € | € 350 | |||
Long-term debt, carrying amount | [1] | $ 396.5 | $ 430.8 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | ||
[1] | The carrying amount of the Company’s senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | $ 17.9 | $ 7.5 | $ 10.1 | |
Cash and cash equivalents | 452 | 493.9 | 730.1 | $ 556.4 |
Short-term borrowings | 12.8 | 19.5 | ||
Long-term debt, carrying amount | 2,819.4 | 3,061.3 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency forward exchange contracts, assets | 24.8 | 1.5 | ||
Interest rate swap agreements, assets | 1.4 | 2.4 | ||
Total Assets, Fair Value | 26.2 | 3.9 | ||
Foreign currency forward exchange contracts, liabilities | 6.2 | 67.4 | ||
Interest rate swap agreements, liabilities | 2.8 | 0.1 | ||
Total Liabilities | 9 | 67.5 | ||
Long-Lived Assets, Other [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-lived assets, carrying amount | 18.5 | 8.1 | 10.5 | |
Impairment of long-lived assets | 17.9 | 7.5 | 10.1 | |
Total Assets, Fair Value | 0.6 | 0.6 | 0.4 | |
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 452 | 493.9 | ||
Short-term borrowings | 12.8 | 19.5 | ||
Long-term debt, carrying amount | 2,819.4 | 3,061.3 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 452 | 493.9 | ||
Short-term borrowings, fair value | 12.8 | 19.5 | ||
Long-term debt, fair value | 2,853.7 | 3,140.9 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency forward exchange contracts, assets | 24.8 | 1.5 | ||
Interest rate swap agreements, assets | 1.4 | 2.4 | ||
Total Assets, Fair Value | 26.2 | 3.9 | ||
Foreign currency forward exchange contracts, liabilities | 6.2 | 67.4 | ||
Interest rate swap agreements, liabilities | 2.8 | 0.1 | ||
Total Liabilities | 9 | 67.5 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent purchase price payments, beginning balance | 0 | 1.6 | ||
Payments | (0.8) | |||
Adjustments included in earnings | (0.8) | |||
Contingent purchase price payments, ending balance | 0 | 1.6 | ||
Fair Value, Inputs, Level 3 [Member] | Long-Lived Assets, Other [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total Assets, Fair Value | 0.6 | 0.6 | 0.4 | |
Tommy Hilfiger North America [Member] | Long-Lived Assets, Other [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | 0.2 | 0.4 | 1.4 | |
Tommy Hilfiger International [Member] | Long-Lived Assets, Other [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | 1.6 | 1.9 | 4 | |
Calvin Klein North America [Member] | Long-Lived Assets, Other [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | 5.1 | 1.8 | 1 | |
Calvin Klein International [Member] | Long-Lived Assets, Other [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | 8.5 | $ 3.4 | $ 3.7 | |
Heritage Brands Wholesale [Member] | Long-Lived Assets, Other [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Impairment of long-lived assets | $ 2.5 |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019USD ($)plans | Feb. 04, 2018USD ($) | Jan. 29, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions to saving and retirement plans, supplemental savings plan and defined contribution plan | $ | $ 25.4 | $ 22.1 | $ 19.7 |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Noncontributory Defined Benefit Pension Plans | 5 | ||
Non-contributory defined benefit pension plans, vesting period | 5 years | ||
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 Period | 10 years | ||
Plan benefit payment activation age | 65 | ||
Minimum age prior to employment termination | 55 | ||
Minimum Number of Years of Employment | 10 years | ||
Postretirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Noncontributory Defined Benefit Pension Plans | 2 |
RETIREMENT AND BENEFIT PLANS Be
RETIREMENT AND BENEFIT PLANS Benefit Obligations (Details) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) | Jan. 29, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlement loss on retirement plans | $ 0 | $ (9.4) | $ 0 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | $ (15) | (2.5) | 39.1 |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Retiree Participants | 4,000 | ||
Settlement loss on retirement plans | $ 9.4 | ||
Defined Benefit Plan, Lump Sum Settlement Payment (included in benefit payments) | 0 | 65.3 | |
Accumulated benefit obligation | 598.9 | 595.6 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 648 | 627.5 | |
Service cost, net of plan expenses | 31.4 | 26.3 | |
Interest cost | 26 | 25.7 | 29.8 |
Benefit payments | (26) | (29.4) | |
Benefit payments, net of retiree contributions | 0 | 0 | |
Plan curtailments | 0 | (0.3) | |
Actuarial (gain) loss | (28.4) | 63.5 | |
Balance at end of year | 651 | 648 | 627.5 |
SERP Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Lump Sum Settlement Payment (included in benefit payments) | 0 | 0 | |
Accumulated benefit obligation | 81.5 | 79.6 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 96.9 | 87.6 | |
Service cost, net of plan expenses | 5.8 | 4.5 | |
Interest cost | 3.9 | 3.8 | 3.9 |
Benefit payments | (6.1) | (5.1) | |
Benefit payments, net of retiree contributions | 0 | 0 | |
Plan curtailments | 0 | 0 | |
Actuarial (gain) loss | (1.3) | 6.1 | |
Balance at end of year | 99.2 | 96.9 | 87.6 |
Postretirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Lump Sum Settlement Payment (included in benefit payments) | 0 | 0 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 10.5 | 11.4 | |
Service cost, net of plan expenses | 0 | 0 | |
Interest cost | 0.4 | 0.4 | 0.5 |
Benefit payments | 0 | 0 | |
Benefit payments, net of retiree contributions | (1.4) | (1.6) | |
Plan curtailments | 0 | 0 | |
Actuarial (gain) loss | (1.1) | 0.3 | |
Balance at end of year | $ 8.4 | $ 10.5 | $ 11.4 |
RETIREMENT AND BENEFIT PLANS Fa
RETIREMENT AND BENEFIT PLANS Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2019 | Feb. 04, 2018 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | $ 660.6 | [1] | $ 659.5 | |
Actual return, net of plan expenses | (7.8) | 95.5 | ||
Benefit payments | (26) | (29.4) | ||
Plan settlements | 0 | (65.3) | ||
Company contributions | 10 | 0.3 | ||
Fair value of plan assets at end of year | [1] | 636.8 | 660.6 | |
Funded status at end of year | $ (14.2) | 12.6 | ||
United States Equities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 40.00% | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | $ 179.8 | ||
Fair value of plan assets at end of year | [1],[2] | 170.9 | 179.8 | |
United States Equities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 179.8 | ||
Fair value of plan assets at end of year | [1],[2] | 170.9 | 179.8 | |
United States Equities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | 0 | 0 | |
United States Equities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | $ 0 | 0 | |
International Equities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 20.00% | |||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | $ 13 | ||
Fair value of plan assets at end of year | [1],[2] | 12.2 | 13 | |
International Equities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 13 | ||
Fair value of plan assets at end of year | [1],[2] | 12.2 | 13 | |
International Equities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | 0 | 0 | |
International Equities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[2] | 0 | ||
Fair value of plan assets at end of year | [1],[2] | $ 0 | 0 | |
Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocation percentage of assets, equity securities | 40.00% | |||
United States equity fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | $ 58.9 | ||
Fair value of plan assets at end of year | [1],[3] | 58.9 | 58.9 | |
United States equity fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 0 | ||
Fair value of plan assets at end of year | [1],[3] | 0 | 0 | |
United States equity fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 58.9 | ||
Fair value of plan assets at end of year | [1],[3] | 58.9 | 58.9 | |
United States equity fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[3] | 0 | ||
Fair value of plan assets at end of year | [1],[3] | 0 | 0 | |
International Equity Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 140 | ||
Fair value of plan assets at end of year | [1],[4] | 126.5 | 140 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 65.6 | ||
Fair value of plan assets at end of year | [1],[4] | 60.3 | 65.6 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 74.4 | ||
Fair value of plan assets at end of year | [1],[4] | 66.2 | 74.4 | |
International Equity Fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[4] | 0 | ||
Fair value of plan assets at end of year | [1],[4] | 0 | 0 | |
Government Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 58.1 | ||
Fair value of plan assets at end of year | [1],[5] | 70.3 | 58.1 | |
Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 58.1 | ||
Fair value of plan assets at end of year | [1],[5] | 70.3 | 58.1 | |
Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Corporate Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 183.3 | ||
Fair value of plan assets at end of year | [1],[5] | 173.7 | 183.3 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 183.3 | ||
Fair value of plan assets at end of year | [1],[5] | 173.7 | 183.3 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[5] | 0 | ||
Fair value of plan assets at end of year | [1],[5] | 0 | 0 | |
Short-term Investment Funds [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 18.4 | ||
Fair value of plan assets at end of year | [1],[6] | 16.7 | 18.4 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 0 | ||
Fair value of plan assets at end of year | [1],[6] | 0 | 0 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 18.4 | ||
Fair value of plan assets at end of year | [1],[6] | 16.7 | 18.4 | |
Short-term Investment Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[6] | 0 | ||
Fair value of plan assets at end of year | [1],[6] | 0 | 0 | |
Total Return Mutual Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 6.6 | ||
Fair value of plan assets at end of year | [1],[7] | 6.3 | 6.6 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 6.6 | ||
Fair value of plan assets at end of year | [1],[7] | 6.3 | 6.6 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 0 | ||
Fair value of plan assets at end of year | [1],[7] | 0 | 0 | |
Total Return Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[7] | 0 | ||
Fair value of plan assets at end of year | [1],[7] | 0 | 0 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 658.1 | ||
Fair value of plan assets at end of year | [1] | 635.5 | 658.1 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 265 | ||
Fair value of plan assets at end of year | [1] | 249.7 | 265 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 393.1 | ||
Fair value of plan assets at end of year | [1] | 385.8 | 393.1 | |
Plan Assets, Excluding Other Assets and Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1] | 0 | ||
Fair value of plan assets at end of year | [1] | 0 | 0 | |
Defined Benefit Plan, Other Assets and Liabilities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | [1],[8] | 2.5 | ||
Fair value of plan assets at end of year | [1],[8] | $ 1.3 | $ 2.5 | |
[1] | The Company uses third party pricing services to determine the fair values of the financial instruments held by the Pension Plans. The Company obtains an understanding of the pricing services’ valuation methodologies and related inputs and validates a sample of prices provided by the pricing services by reviewing prices from other pricing sources and analyzing pricing data in certain instances. The Company has not adjusted any prices received from the third party pricing services. | |||
[2] | Valued at the closing price or unadjusted quoted price in the active market in which the individual securities are traded. | |||
[3] | Valued at the net asset value of the fund, as determined by a pricing vendor or the fund family. The Company has the ability to redeem this investment at net asset value within the near term and therefore classifies this investment within Level 2. This commingled fund invests in United States large cap equities that track the Russell 1000 Index. | |||
[4] | Valued at the net asset value of the fund, either as determined by the closing price in the active market in which the individual fund is traded and classified within Level 1, or as determined by a pricing vendor or the fund family and classified within Level 2. This category includes funds that invest in equities of companies outside of the United States. | |||
[5] | Valued with bid evaluation pricing where the inputs are based on actual trades in active markets, when available, as well as observable market inputs that include actual and comparable trade data, market benchmarks, broker quotes, trading spreads and/or other applicable data. | |||
[6] | Valued at the net asset value of the funds, as determined by a pricing vendor or the fund family. The Company has the ability to redeem these investments at net asset value within the near term and therefore classifies these investments within Level 2. These funds invest in high-grade, short-term, money market instruments. | |||
[7] | Valued at the net asset value of the fund, as determined by the closing price in the active market in which the individual fund is traded. This mutual fund invests in both equity securities and fixed income securities. | |||
[8] | This category includes other pension assets and liabilities such as pending trades and accrued income. |
RETIREMENT AND BENEFIT PLANS Am
RETIREMENT AND BENEFIT PLANS Amounts Recognized in Balance Sheets (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 |
Pension Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | $ 1.8 | $ 19.1 |
Current liabilities | 0 | 0 |
Non-current liabilities | (16) | (6.5) |
Net amount recognized | (14.2) | 12.6 |
SERP Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (7.4) | (7.4) |
Non-current liabilities | (91.8) | (89.5) |
Net amount recognized | (99.2) | (96.9) |
Postretirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (1.1) | (1.4) |
Non-current liabilities | (7.3) | (9.1) |
Net amount recognized | $ (8.4) | $ (10.5) |
RETIREMENT AND BENEFIT PLANS Ne
RETIREMENT AND BENEFIT PLANS Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | $ 33.7 | $ 27.3 | $ 25.2 |
Interest cost | 26 | 25.7 | 29.8 |
Actuarial (gain) loss | 17.4 | (3.9) | (35.4) |
Expected return on plan assets | (40.3) | (38.6) | (35.9) |
Amortization of prior service cost (credit) | 0.1 | 0.1 | 0 |
Curtailment gain | 0 | (0.3) | 0 |
Settlement loss | 0 | 9.4 | 0 |
Total | 36.9 | 19.7 | (16.3) |
SERP Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | 5.8 | 4.5 | 4.4 |
Interest cost | 3.9 | 3.8 | 3.9 |
Actuarial (gain) loss | (1.3) | 6.1 | (0.7) |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | (0.1) |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total | 8.4 | 14.4 | 7.5 |
Postretirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost, including plan expenses | 0 | 0 | 0 |
Interest cost | 0.4 | 0.4 | 0.5 |
Actuarial (gain) loss | (1.1) | 0.3 | (3) |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | (0.3) |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total | $ (0.7) | $ 0.7 | $ (2.8) |
RETIREMENT AND BENEFIT PLANS Ac
RETIREMENT AND BENEFIT PLANS Accumulated and Projected Benefit Obligations in Excess of Plan Assets (Details) $ in Millions | Feb. 03, 2019USD ($) | Feb. 04, 2018USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of plans with projected benefit obligations in excess of plan assets | 3 | 2 |
Aggregate projected benefit obligation | $ 634.7 | $ 41.6 |
Aggregate fair value of related plan assets | $ 618.8 | $ 35.1 |
Number of plans with accumulated benefit obligations in excess of plan assets | 2 | 2 |
Aggregate accumulated benefit obligation | $ 38.5 | $ 37.4 |
Aggregate fair value of related plan assets | $ 38 | $ 35.1 |
RETIREMENT AND BENEFIT PLANS We
RETIREMENT AND BENEFIT PLANS Weighted Average Rate Assumptions (Details) | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Pension and SERP Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate | 4.35% | 4.08% | 4.59% |
Postretirement Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate | 4.16% | 3.91% | 4.04% |
Pension Plans [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Rate of increase in compensation levels | 4.24% | 4.24% | 4.27% |
Expected long-term rate of return on assets | 6.50% | 6.25% | 6.50% |
RETIREMENT AND BENEFIT PLANS Ex
RETIREMENT AND BENEFIT PLANS Expected Future Benefit Payments (Details) $ in Millions | Feb. 03, 2019USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2019 | $ 25.5 |
2020 | 26.1 |
2021 | 27 |
2022 | 28.1 |
2023 | 29.1 |
2024-2028 | 164.1 |
SERP Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2019 | 7.4 |
2020 | 8.3 |
2021 | 8.8 |
2022 | 11.6 |
2023 | 10.6 |
2024-2028 | 51.1 |
Postretirement Plans [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2019 | 1.1 |
2020 | 1 |
2021 | 1 |
2022 | 0.9 |
2023 | 0.8 |
2024-2028 | $ 3.1 |
STOCK-BASED COMPENSATION Stock
STOCK-BASED COMPENSATION Stock Incentive Plan (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5.1 | ||
Stock-based compensation expense | $ 56.2 | $ 44.9 | $ 38.2 |
Recognized income tax benefits associated with stock-based compensation expense | 8.9 | 8.8 | 11.5 |
Tax deduction associated with stock plan award transactions | 13.2 | 27.2 | 6.6 |
Net excess tax benefit from awards under stock plans | $ 4.9 | $ 15.4 | |
Net excess tax deficiency from awards under stock plans | 7.2 | ||
Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1.1 | ||
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.8) | ||
Other Assets [Member] | Accounting Standards Update 2016-09 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0.3 |
STOCK-BASED COMPENSATION Stoc_2
STOCK-BASED COMPENSATION Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in Number of Shares Available to be Granted by Each Option Award | 1 | ||
Vesting period (in years) | 4 years | ||
Beginning vesting term | one year after date of grant | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Unrecognized pre-tax compensation expense | $ 4,400,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 1 year 1 month 6 days | ||
Service-based stock option activity [Roll Forward] | |||
Service-based stock options, outstanding, beginning of period | 921,000 | ||
Service-based stock options, granted | 86,000 | ||
Service-based stock options, exercised | 200,000 | ||
Service-based stock options, cancelled | 16,000 | ||
Service-based stock options, outstanding, end of period | 791,000 | 921,000 | |
Service-based stock options, exercisable | 463,000 | ||
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 102.18 | ||
Service-based stock options, granted, weighted average price per option | 158.53 | ||
Service-based stock options, exercised, weighted average price per option | 103.04 | ||
Service-based stock options, cancelled, weighted average price per option | 116.31 | ||
Service-based stock options, outstanding, weighted average price per option, end of period | 107.81 | $ 102.18 | |
Service-based stock options, exercisable, weighted average price per option | $ 102.05 | ||
Service-based stock options, outstanding, weighted average remaining contractual life (in years), end of period | 6 years 1 month 6 days | 6 years 7 months 6 days | |
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 4 years 10 months 24 days | ||
Service-based stock options, outstanding, aggregate intrinsic value, beginning of period | $ 45,020,000 | ||
Service-based stock options, outstanding, aggregate intrinsic value, end of period | 6,568,000 | $ 45,020,000 | |
Service-based stock options, exercisable, aggregate intrinsic value | 4,833,000 | ||
Options, additional disclosures: | |||
Service-based stock options, granted, aggregate grant date fair value | 4,400,000 | 4,800,000 | $ 8,400,000 |
Service-based stock options, vested, aggregate grant date fair value | 6,500,000 | 7,200,000 | 6,900,000 |
Service-based stock options, exercised, total intrinsic value of options | $ 10,900,000 | $ 56,900,000 | $ 6,900,000 |
Black-Scholes-Merton Model [Member] | |||
Assumptions used to estimate fair value of service-based stock options [Abstract] | |||
Weighted average risk-free interest rate | 2.78% | 2.10% | 1.45% |
Weighted average expected stock option term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average Company volatility | 26.92% | 29.46% | 34.54% |
Expected annual dividends per share | $ 0.15 | $ 0.15 | $ 0.15 |
Weighted average grant date fair value per stock option | $ 51.66 | $ 33.50 | $ 35.62 |
STOCK-BASED COMPENSATION - RSU
STOCK-BASED COMPENSATION - RSU and PSU Activity (Details) - USD ($) | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in Number of Shares Available to be Granted by Each 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 since 2016 | one year after date of grant | ||
Restricted Stock Units (RSUs) Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
First RSU Vesting Installments, Nonemployee Directors, Number of Yrs Following Grant Date | one year after date of grant | ||
Performance Share Units (PSU) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 197,000 | ||
Other than options, granted number | 44,000 | ||
Other than options, change due to market condition achieved above target number | 32,000 | ||
Other than options, vested number | 78,000 | ||
Other than options, cancelled number | 1,000 | ||
Other than options, non-vested number, end of period | 194,000 | 197,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 93.97 | ||
Weighted average grant date fair value | 159.53 | ||
Other than options, vested, weighted average grant date fair value | 101.23 | ||
Other than options, change due to market condition achieved above target, weighted average grant date fair value | 101.23 | ||
Other than options, cancelled, weighted average grant date fair value | 143.65 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 106.76 | $ 93.97 | |
Other than options, granted, aggregate grant date fair value | $ 7,000,000 | $ 7,000,000 | $ 6,900,000 |
Other than options, vested, aggregate grant date fair value | 4,600,000 | 3,000,000 | |
Unrecognized pre-tax compensation expense | $ 3,800,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 8 months 12 days | ||
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% | ||
Restricted Stock Units (RSUs) [Member] | |||
Non-vested activity [Roll Forward] | |||
Other than options, non-vested number, beginning of period | 917,000 | ||
Other than options, granted number | 339,000 | ||
Other than options, vested number | 328,000 | ||
Other than options, cancelled number | 81,000 | ||
Other than options, non-vested number, end of period | 847,000 | 917,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 103.90 | ||
Weighted average grant date fair value | 157.85 | ||
Other than options, vested, weighted average grant date fair value | 107.10 | ||
Other than options, cancelled, weighted average grant date fair value | 117.28 | ||
Other than options, non-vested, weighted average grant date fair value, end of period | $ 122.97 | $ 103.90 | |
Other than options, granted, aggregate grant date fair value | $ 53,500,000 | $ 46,000,000 | 38,800,000 |
Other than options, vested, aggregate grant date fair value | 35,100,000 | $ 28,700,000 | $ 17,300,000 |
Unrecognized pre-tax compensation expense | $ 61,600,000 | ||
Unrecognized pre-tax compensation expense, period for recognition (in years) | 1 year 8 months 12 days | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Beginning vesting term, awards granted prior to 2016 | two years after date of grant | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | First Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 25.00% | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | Second Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 25.00% | ||
Restricted Stock Units (RSUs) Granted Prior to 2016 [Member] | Third Annual Installment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vesting, granted to employees in installments | 50.00% | ||
Monte Carlo model [Member] | Performance Share Units (PSU) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction of Liquidity Discount | 7.09% | 12.67% | 12.99% |
Weighted average risk-free interest rate | 2.62% | 1.49% | 1.04% |
Weighted average Company volatility | 29.78% | 31.29% | 28.33% |
Expected annual dividends per share | $ 0.15 | $ 0.15 | $ 0.15 |
Non-vested activity [Roll Forward] | |||
Weighted average grant date fair value | $ 159.53 | $ 96.81 | $ 87.16 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Equity [Abstract] | |||
Cash dividends paid, per share | $ 0.15 | $ 0.15 | $ 0.15 |
STOCKHOLDERS' EQUITY Stock Repu
STOCKHOLDERS' EQUITY Stock Repurchase Program (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Mar. 26, 2019 | Mar. 21, 2017 | Jun. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 750 | $ 750 | $ 500 | |||
Stock Repurchase Program, Number of Shares Repurchased | 2,370,193 | 2,300,657 | 3,313,810 | |||
Stock Repurchase Program, Amount Purchased During Period | $ 300.1 | $ 250.4 | $ 315.1 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 258.3 | |||||
Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Repurchased | 2,200,000 | 2,200,000 | 3,200,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||||
Net gain (loss) on net investment hedges, net of tax | $ 73.1 | $ (70.8) | $ 14.1 | |||
Change in accumulated other comprehensive loss | ||||||
Balance at beginning of year | (321.5) | |||||
Other comprehensive (loss) income | (186.4) | 391.4 | (6.6) | |||
Balance at end of year | (507.9) | (321.5) | ||||
Foreign currency translation adjustments | ||||||
Net gain (loss) on net investment hedges, net of tax | 73.1 | (70.8) | ||||
Change in accumulated other comprehensive loss | ||||||
Balance at beginning of year | (249.4) | (737.7) | ||||
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (288.2) | [2] | 490.5 | [3] | |
Less: Amounts reclassified from AOCL, net of tax | 0 | 0 | ||||
Other comprehensive (loss) income | (288.2) | 490.5 | ||||
Impact of the U.S. Tax Legislation | [4] | (2.2) | ||||
Balance at end of year | (537.6) | (249.4) | (737.7) | |||
Net unrealized and realized gain (loss) on effective cash flow hedges | ||||||
Change in accumulated other comprehensive loss | ||||||
Balance at beginning of year | (72.1) | 26.9 | ||||
Other comprehensive (loss) income before reclassifications, net of tax | 92 | (116) | ||||
Less: Amounts reclassified from AOCL, net of tax | (9.8) | (16.9) | ||||
Other comprehensive (loss) income | 101.8 | (99.1) | ||||
Impact of the U.S. Tax Legislation | [4] | 0.1 | ||||
Balance at end of year | 29.7 | (72.1) | 26.9 | |||
Total | ||||||
Net gain (loss) on net investment hedges, net of tax | 73.1 | (70.8) | 14.1 | |||
Change in accumulated other comprehensive loss | ||||||
Balance at beginning of year | (321.5) | (710.8) | ||||
Other comprehensive (loss) income before reclassifications, net of tax | (196.2) | 374.5 | ||||
Less: Amounts reclassified from AOCL, net of tax | (9.8) | (16.9) | ||||
Other comprehensive (loss) income | (186.4) | 391.4 | ||||
Impact of the U.S. Tax Legislation | [4] | (2.1) | ||||
Balance at end of year | $ (507.9) | $ (321.5) | $ (710.8) | |||
[1] | Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $73.1 million and $(70.8) million in 2018 and 2017, respectively. | |||||
[2] | Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. | |||||
[3] | Favorable foreign currency translation adjustments were principally driven by a weakening of the United States dollar against the euro. | |||||
[4] | The stranded tax effects resulting from the U.S. Tax Legislation were reclassified from AOCL to retained earnings as a result of the Company’s early adoption of an update to accounting guidance in the fourth quarter of 2017. The amount of the reclassification was calculated based on the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amounts at the date of the enactment of the U.S. Tax Legislation related to items that remained in AOCL at that time. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Net gain (loss) on net investment hedges, net of tax | $ 73.1 | $ (70.8) | $ 14.1 |
Income tax expense (benefit) | |||
Reclassification from AOCL, Current Period, Tax | (0.7) | (2.9) | |
Foreign Exchange Forward Inventory Purchases [Member] | Cost of Sales [Member] | |||
Reclassification from AOCL, Current Period, before Tax | (11.6) | (13.6) | |
Interest Rate Swap [Member] | Interest Expense [Member] | |||
Reclassification from AOCL, Current Period, before Tax | 1.1 | (6.2) | |
Net unrealized and realized gain (loss) on effective cash flow hedges | |||
Reclassification from AOCL, Current Period, Net of Tax | $ (9.8) | $ (16.9) |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Leases [Abstract] | |||
Minimum | $ 465.3 | $ 455.2 | $ 421.8 |
Percentage and other | 128.6 | 103 | 90.9 |
Less: Sublease rental income | (1.4) | (1.8) | (4.9) |
Total Rent Expense | 592.5 | $ 556.4 | $ 507.8 |
Capital Leases, Future Minimum Payments, Net Present Value [Abstract] | |||
2019 | 5.6 | ||
2020 | 4.4 | ||
2021 | 3.8 | ||
2022 | 1.8 | ||
2023 | 0.6 | ||
Thereafter | 2.5 | ||
Total minimum lease payments | 18.7 | ||
Less: Amount representing interest | (2.2) | ||
Present value of net minimum capital lease payments | 16.5 | ||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2019 | 402.4 | ||
2020 | 371.9 | ||
2021 | 314 | ||
2022 | 255 | ||
2023 | 189.9 | ||
Thereafter | 618.7 | ||
Total minimum lease payments | 2,151.9 | ||
Operating and Capital Leases, Total Future Minimum Payments [Abstract] | |||
2019 | 408 | ||
2020 | 376.3 | ||
2021 | 317.8 | ||
2022 | 256.8 | ||
2023 | 190.5 | ||
Thereafter | 621.2 | ||
Total minimum lease payments | $ 2,170.6 |
LEASES Additional Information (
LEASES Additional Information (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 |
Operating and Capital Leased Assets [Line Items] | ||
Total minimum lease payments | $ 2,170.6 | |
Capital leases, aggregate future minimum rentals to be received | 0.6 | |
Operating leases, aggregate future minimum rentals to be received | 0.2 | |
Assets under capital lease, gross book value | 37 | $ 34.5 |
Accumulated amortization of assets under capital leases | 21.6 | $ 18.8 |
Retail Site [Member] | ||
Operating and Capital Leased Assets [Line Items] | ||
Total minimum lease payments | 1,425.3 | |
NEW YORK AND NEW JERSEY | Administrative Offices and Showrooms [Member] | ||
Operating and Capital Leased Assets [Line Items] | ||
Total minimum lease payments | 374.5 | |
EUROPE | Administrative Offices and Showrooms [Member] | ||
Operating and Capital Leased Assets [Line Items] | ||
Total minimum lease payments | $ 141.1 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) - Calvin Klein Restructuring [Member] $ in Millions | 12 Months Ended | |
Feb. 03, 2019USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | $ 170.7 | |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 0 | |
Exit activity costs incurred | 40.7 | |
Restructuring and Related Costs, Incurred Costs Excluding Long-Lived Asset Impairments and Inventory Markdowns | 31.6 | |
Exit activity costs paid | 3.5 | |
Total liability, end of period | 28.1 | |
Severance, termination benefits and other employee costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 65.7 | |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 0 | |
Exit activity costs incurred | 27.3 | |
Exit activity costs paid | 1.5 | |
Total liability, end of period | 25.8 | |
Long-lived asset impairments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 55 | [1] |
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | 6.9 | |
Lease/contract termination and other costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 45 | |
Restructuring Reserve [Roll Forward] | ||
Total liability, beginning of period | 0 | |
Exit activity costs incurred | 4.3 | |
Exit activity costs paid | 2 | |
Total liability, end of period | 2.3 | |
Inventory markdowns [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 5 | |
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | 2.2 | |
Calvin Klein North America [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 80 | |
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | 18.9 | |
Calvin Klein North America [Member] | Exit activity costs excluding inventory markdowns | ||
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | 18.9 | |
Calvin Klein International [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total costs expected to be incurred | 90 | |
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | 21.8 | |
Calvin Klein International [Member] | Exit activity costs excluding inventory markdowns | ||
Restructuring Reserve [Roll Forward] | ||
Exit activity costs incurred | $ 19.6 | |
[1] | Includes the estimated impact of the closure of the flagship store on Madison Avenue in New York, New York, which will be accounted for as an asset impairment following the Company’s adoption of the new lease accounting guidance in the first quarter of 2019. |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to PVH Corp. | $ 746.4 | $ 537.8 | $ 549 |
Weighted average common shares outstanding for basic net income per common share | 76.5 | 77.6 | 80.2 |
Weighted average impact of dilutive securities | 0.8 | 1 | 0.7 |
Total shares for diluted net income per common share | 77.3 | 78.6 | 80.9 |
Basic net income per common share attributable to PVH Corp. | $ 9.75 | $ 6.93 | $ 6.84 |
Diluted net income per common share attributable to PVH Corp. | $ 9.65 | $ 6.84 | $ 6.79 |
Weighted average potentially dilutive securities | 0.4 | 0.5 | 0.8 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Number Of Potentially Dilutive Shares That Could Be Issued Upon Vesting | 0.3 | 0.1 | 0.3 |
NONCASH INVESTING AND FINANCI_2
NONCASH INVESTING AND FINANCING TRANSACTIONS (Details) - USD ($) $ in Millions | Apr. 20, 2018 | Jan. 05, 2018 | May 19, 2016 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Apr. 13, 2016 |
Nonmonetary Transaction [Line Items] | |||||||
Capital Expenditures Incurred but Not yet Paid | $ 43.7 | $ 41.9 | $ 35.6 | ||||
Capital Lease Obligations Incurred | $ 6 | 3.6 | 6.8 | ||||
Contingent purchase price payment terms | 45 days | ||||||
Treasury Stock, Shares Purchased Not Yet Settled | $ 1.5 | ||||||
Geoffrey Beene Acquisition [Member] | |||||||
Nonmonetary Transaction [Line Items] | |||||||
Noncash Or Part Noncash Acquisition, Prepaid Royalties Assumed | $ 0.7 | ||||||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 0.4 | ||||||
Tommy Hilfiger China Acquisition [Member] | |||||||
Nonmonetary Transaction [Line Items] | |||||||
Pre-Acquisition Accounts Receivable | $ 2.8 | ||||||
PVH Mexico Joint Venture [Member] | |||||||
Nonmonetary Transaction [Line Items] | |||||||
Increase In Investment Balance Related to Deconsolidation of Joint Venture | $ 64.3 | ||||||
Senior notes due 2022 [Member] | |||||||
Nonmonetary Transaction [Line Items] | |||||||
Write-off of deferred debt issuance costs | $ 8.1 | ||||||
2016 Facilities [Member] | |||||||
Nonmonetary Transaction [Line Items] | |||||||
Write-off of deferred debt issuance costs | $ 11.2 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Millions | Apr. 13, 2016 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||||
Number of Reportable Segments | 6 | |||||||
Revenue: | ||||||||
Total revenue | [1],[2] | $ 9,656.8 | $ 8,914.8 | $ 8,203.1 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 891.7 | 632.4 | 789.2 | ||||
Settlement loss on retirement plans | 0 | (9.4) | 0 | |||||
Actuarial loss (gain) on retirement and benefit plans | (15) | (2.5) | 39.1 | |||||
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 82.9 | |||||||
Amortization of Intangible Assets | 62.8 | 65 | ||||||
Net loss on deconsolidation of subsidiaries and joint venture | 0 | 0 | (81.8) | |||||
Gain to write-up equity investment in joint venture to fair value | 0 | 0 | 153.1 | |||||
Debt modification and extinguishment costs | 0 | 23.9 | 15.8 | |||||
Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 1,669.2 | 1,567.8 | 1,563.3 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 233.8 | 97 | [4],[5],[6] | 135.8 | [7] | ||
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 34.7 | |||||||
Tommy Hilfiger Office Relocation Expense | 19.2 | |||||||
Loss on Contract Termination | 11 | |||||||
Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 2,675.3 | 2,325.4 | 1,947.5 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 377.1 | [8] | 221.5 | [5],[6],[8] | 328.3 | [9],[10] | |
Costs Related to Amendment of Mr. Tommy Hilfiger Employment Agreement | 48.2 | |||||||
Gain recorded in connection with exit of TOMMY HILFIGER flagship store | 18.1 | |||||||
Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 1,793.3 | 1,707.8 | 1,689.9 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 166.7 | [11] | 184 | 123.9 | [12] | ||
Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 1,937.9 | 1,753.8 | 1,445.3 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 211.5 | [11] | 226.5 | 209.6 | |||
Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 1,317.4 | 1,297.4 | 1,295.8 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 83.3 | 96.7 | 90.2 | ||||
Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | [2] | 263.7 | 262.6 | 261.3 | ||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3] | 7.4 | 7.6 | 8.8 | ||||
Corporate [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Income (loss) before interest and taxes | [3],[13] | (188.1) | (200.9) | [14],[15],[16] | (107.4) | [17] | ||
Settlement loss on retirement plans | 9.4 | |||||||
Actuarial loss (gain) on retirement and benefit plans | $ 15 | 2.5 | (39.1) | |||||
Debt modification and extinguishment costs | $ 23.9 | $ 15.8 | ||||||
Sales Revenue, Goods, Net [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Percentage of company's revenue by one single customer | 10.00% | 10.00% | 10.00% | |||||
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 | |||||||
PVH Mexico Joint Venture [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Net loss on deconsolidation of subsidiaries and joint venture | $ 81.8 | |||||||
Deconsolidation, Foreign Currency Translation Adjustment Loss, Amount | 56.7 | |||||||
PVH Mexico Joint Venture [Member] | Calvin Klein North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Net loss on deconsolidation of subsidiaries and joint venture | 81.8 | |||||||
Calvin Klein Restructuring [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | $ 40.7 | |||||||
Calvin Klein Restructuring [Member] | Calvin Klein North America [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | 18.9 | |||||||
Calvin Klein Restructuring [Member] | Calvin Klein International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Restructuring and Related Cost, Incurred Cost | 21.8 | |||||||
Consolidation of North America warehouse and distribution network [Member] | Corporate [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Business Exit Costs | 8 | |||||||
Gain on Sale of Properties | 3.1 | |||||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Amortization of Intangible Assets | 23.6 | 26.9 | ||||||
Business Combination, Acquisition Related Costs | 76.9 | |||||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger China Joint Venture [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Gain to write-up equity investment in joint venture to fair value | $ 153.1 | |||||||
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger China Joint Venture [Member] | Tommy Hilfiger International [Member] | ||||||||
Earnings Before Interest and Taxes: | ||||||||
Gain to write-up equity investment in joint venture to fair value | 153.1 | |||||||
Business Combination, Cost Related to Equity Investment | 5.9 | |||||||
Net sales | ||||||||
Revenue: | ||||||||
Total revenue | 9,154.2 | 8,439.4 | 7,791.4 | |||||
Net sales | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,574.3 | 1,482.2 | 1,502.4 | |||||
Net sales | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 2,599.7 | 2,268 | 1,899.4 | |||||
Net sales | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,599.9 | 1,511.3 | 1,513 | |||||
Net sales | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,827.9 | 1,645 | 1,346.2 | |||||
Net sales | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 1,293.2 | 1,274.4 | 1,271.6 | |||||
Net sales | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 259.2 | 258.5 | 258.8 | |||||
Royalty revenue | ||||||||
Revenue: | ||||||||
Total revenue | 375.9 | 366.3 | 320.6 | |||||
Royalty revenue | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 76.2 | 68.9 | 48.9 | |||||
Royalty revenue | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 52.7 | 47.8 | 44.5 | |||||
Royalty revenue | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 143.6 | 146.4 | 131.7 | |||||
Royalty revenue | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 78.9 | 80 | 72.9 | |||||
Royalty revenue | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 20.5 | 19.5 | 20.3 | |||||
Royalty revenue | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 4 | 3.7 | 2.3 | |||||
Advertising and other revenue | ||||||||
Revenue: | ||||||||
Total revenue | 126.7 | 109.1 | 91.1 | |||||
Advertising and other revenue | Tommy Hilfiger North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 18.7 | 16.7 | 12 | |||||
Advertising and other revenue | Tommy Hilfiger International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 22.9 | 9.6 | 3.6 | |||||
Advertising and other revenue | Calvin Klein North America [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 49.8 | 50.1 | 45.2 | |||||
Advertising and other revenue | Calvin Klein International [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 31.1 | 28.8 | 26.2 | |||||
Advertising and other revenue | Heritage Brands Wholesale [Member] | ||||||||
Revenue: | ||||||||
Total revenue | 3.7 | 3.5 | 3.9 | |||||
Advertising and other revenue | Heritage Brands Retail [Member] | ||||||||
Revenue: | ||||||||
Total revenue | $ 0.5 | $ 0.4 | $ 0.2 | |||||
[1] | No single customer accounted for more than 10% of the Company’s revenue in 2018, 2017 or 2016. | |||||||
[2] | Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. | |||||||
[3] | Income (loss) before interest and taxes was impacted by fluctuations 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 Item 7 of this report for further discussion. | |||||||
[4] | Income before interest and taxes for 2017 included costs of $19.2 million associated with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense. | |||||||
[5] | Income before interest and taxes for 2017 included costs of $54.2 million associated with the agreements to restructure the Company’s supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which the Company terminated its non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”). 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] | Income before interest and taxes for 2017 included costs of $82.9 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”). Such costs were included in the Company’s segments as follows: $34.7 million in Tommy Hilfiger North America and $48.2 million in Tommy Hilfiger International. | |||||||
[7] | Income before interest and taxes for 2016 included costs of $11.0 million associated with the early termination of the previous license agreement for the Tommy Hilfiger men’s tailored clothing business in North America (the “TH men’s tailored license termination”) in order to consolidate with Peerless Clothing International, Inc. the Company’s men’s tailored businesses for all of its brands in North America. | |||||||
[8] | Income before interest and taxes for 2018 and 2017 included costs of $23.6 million and $26.9 million, respectively, associated with the TH China acquisition, primarily consisting of noncash amortization of short-lived assets. Please see Note 3, “Acquisitions,” for further discussion. | |||||||
[9] | Income before interest and taxes for 2016 included a gain of $18.1 million associated with a payment made to the Company to exit a TOMMY HILFIGER flagship store in Europe. | |||||||
[10] | Income before interest and taxes for 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 $76.9 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 further discussion. | |||||||
[11] | Income before interest and taxes for 2018 included costs of $40.7 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $18.9 million in Calvin Klein North America and $21.8 million in Calvin Klein International. Please see Note 17, “Exit Activity Costs,” for further discussion. | |||||||
[12] | Income before interest and taxes for 2016 included a noncash loss of $81.8 million related to the Mexico deconsolidation, including $56.7 million related to foreign currency translation adjustment losses previously recorded in AOCL. Please see Note 5, “Investments in Unconsolidated Affiliates,” for further discussion. | |||||||
[13] | Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investments in Gazal and Karl Lagerfeld 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, certain digital investments, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans and gains and losses from changes in the fair value of foreign currency option contracts. Actuarial (losses) gains on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $(15.0) million, $(2.5) million and $39.1 million in 2018, 2017 and 2016, respectively. | |||||||
[14] | Loss before interest and taxes for 2017 included costs of $23.9 million related to the early redemption of the Company’s $700 million 4 1/2% senior notes due 2022. Please see Note 8, “Debt,” for further discussion. | |||||||
[15] | Loss before interest and taxes for 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 12, “Retirement and Benefit Plans,” for further discussion. | |||||||
[16] | Loss before interest and taxes for 2017 included net costs of $8.0 million associated with the consolidation within the Company’s warehouse and distribution network in North America, which included a $3.1 million gain on the sale of a warehouse and distribution center. | |||||||
[17] | Loss before interest and taxes for 2016 included costs of $15.8 million related to the Company’s amendment of its 2014 facilities. Please see Note 8, “Debt,” for further discussion. |
SEGMENT DATA Revenue by Distrib
SEGMENT DATA Revenue by Distribution Channel (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1],[2] | $ 9,656.8 | $ 8,914.8 | $ 8,203.1 |
Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,154.2 | 8,439.4 | 7,791.4 | |
Net sales | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,969.6 | 4,504.3 | 4,195.9 | |
Net sales | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,184.6 | 3,935.1 | 3,595.5 | |
Royalty revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 375.9 | 366.3 | 320.6 | |
Advertising and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 126.7 | $ 109.1 | $ 91.1 | |
[1] | No single customer accounted for more than 10% of the Company’s revenue in 2018, 2017 or 2016. | |||
[2] | Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. |
SEGMENT DATA Assets, Depreciati
SEGMENT DATA Assets, Depreciation and Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | [1] | $ 11,863.7 | $ 11,885.7 | $ 11,067.9 | |
Depreciation and Amortization | 334.8 | 324.9 | 321.8 | ||
Identifiable capital expenditures | [2] | 381.3 | 364.4 | 257.7 | |
Capital expenditures incurred but not yet paid | 43.7 | 41.9 | 35.6 | ||
Property, plant and equipment, net | [3] | 984.5 | 899.8 | 759.9 | |
Total revenue | [4],[5] | 9,656.8 | 8,914.8 | 8,203.1 | |
Tommy Hilfiger North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 1,330.5 | 1,276.5 | 1,229.8 | ||
Depreciation and Amortization | 37.9 | 45.1 | 35.3 | ||
Identifiable capital expenditures | 56.1 | 82 | [6] | 26.9 | |
Total revenue | [5] | 1,669.2 | 1,567.8 | 1,563.3 | |
Tommy Hilfiger International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 3,949.3 | 4,047.3 | 3,481.3 | ||
Depreciation and Amortization | [7] | 133.9 | 124.5 | 139.2 | |
Identifiable capital expenditures | 143.9 | 126.7 | 82 | ||
Total revenue | [5] | 2,675.3 | 2,325.4 | 1,947.5 | |
Calvin Klein North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 1,817.9 | 1,836.9 | 1,752.1 | ||
Depreciation and Amortization | 41.5 | 43.8 | 47.6 | ||
Identifiable capital expenditures | 36 | 36.8 | 39.3 | ||
Total revenue | [5] | 1,793.3 | 1,707.8 | 1,689.9 | |
Calvin Klein International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 3,114.9 | 3,138 | 2,821 | ||
Depreciation and Amortization | 90.6 | 83.1 | 70.5 | ||
Identifiable capital expenditures | 102.7 | 96.6 | 79.5 | ||
Total revenue | [5] | 1,937.9 | 1,753.8 | 1,445.3 | |
Heritage Brands Wholesale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 1,178.1 | 1,123.5 | 1,203.5 | ||
Depreciation and Amortization | 14.9 | 14.3 | 15.6 | ||
Identifiable capital expenditures | 15.8 | 8 | 14.1 | ||
Total revenue | [5] | 1,317.4 | 1,297.4 | 1,295.8 | |
Heritage Brands Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 86.6 | 81.6 | 75.5 | ||
Depreciation and Amortization | 5.6 | 5.3 | 5.4 | ||
Identifiable capital expenditures | 8.5 | 4.2 | 7 | ||
Total revenue | [5] | 263.7 | 262.6 | 261.3 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable Assets | 386.4 | 381.9 | [8] | 504.7 | |
Depreciation and Amortization | 10.4 | 8.8 | 8.2 | ||
Identifiable capital expenditures | 18.3 | 10.1 | 8.9 | ||
Capital expenditures incurred but not yet paid | 43.7 | 41.9 | 35.6 | ||
Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 500.5 | 449.2 | 412.8 | ||
Total revenue | 4,481.3 | 4,290.1 | 4,226.6 | ||
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 28.8 | 30 | 31 | ||
Total revenue | 528.8 | 512.2 | 484.5 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 362.7 | 325.5 | 230.5 | ||
Total revenue | 3,362.1 | 2,907.2 | 2,372.7 | ||
Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 73.4 | 73.8 | 66.8 | ||
Total revenue | 1,163.7 | 1,059.3 | 910.4 | ||
Other foreign [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 19.1 | 21.3 | 18.8 | ||
Total revenue | 120.9 | 146 | [9] | 208.9 | |
Tommy Hilfiger China Acquisition [Member] | Tommy Hilfiger International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Amortization | $ 24.6 | $ 26.8 | $ 47.1 | ||
[1] | Identifiable assets included the impact of changes in foreign currency exchange rates. | ||||
[2] | Capital expenditures in 2018 included $43.7 million of accruals that will not be paid until 2019. Capital expenditures in 2017 included $41.9 million of accruals that were not paid until 2018. Capital expenditures in 2016 included $35.6 million of accruals that were not paid until 2017. | ||||
[3] | Property, plant and equipment, net included the impact of changes in foreign currency exchange rates. | ||||
[4] | No single customer accounted for more than 10% of the Company’s revenue in 2018, 2017 or 2016. | ||||
[5] | Revenue was impacted by fluctuations 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 Item 7 of this report for further discussion. | ||||
[6] | The increase in Tommy Hilfiger North America capital expenditures in 2017 was primarily driven by the relocation of the Tommy Hilfiger office in New York. | ||||
[7] | Depreciation and amortization in 2018, 2017 and 2016 included $24.6 million, $26.8 million and $47.1 million, respectively, related to the amortization of intangible assets recorded in connection with the TH China acquisition. Please see Note 3, “Acquisitions,” for further discussion. | ||||
[8] | The changes in Corporate identifiable assets in 2017 were primarily due to changes in cash and cash equivalents. | ||||
[9] | Other foreign revenue in 2017 included the revenue reduction resulting from the Mexico deconsolidation in the fourth quarter of 2016. Please see Note 5, “Investments in Unconsolidated Affiliates,” for further discussion of the Mexico deconsolidation. |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 29, 2023 | Feb. 03, 2019 | |
Sale Of Bass [Member] | ||
Guarantor Obligations [Line Items] | ||
Expiration Year of Bass Guarantee | 2022 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 9 | |
PVH Australia and CK India [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 11 | |
PVH Japan [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 4.6 |
OTHER COMMENTS Accruals (Detail
OTHER COMMENTS Accruals (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 04, 2018 |
Accrued Bonuses | $ 99.4 | $ 108.9 |
OTHER COMMENTS Asset Retirement
OTHER COMMENTS Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of year | $ 27.1 | $ 21.8 |
Liabilities incurred | 7.4 | 4.1 |
Liabilities settled (payments) | (1.7) | (1) |
Accretion expense | 0.4 | 0.5 |
Revisions in estimated cash flows | (0.1) | 0.3 |
Currency translation adjustment | (0.8) | 1.4 |
Balance at end of year | $ 32.3 | $ 27.1 |
OTHER COMMENTS Additional Infor
OTHER COMMENTS Additional Information (Details) - Wuxi Jinmao Foreign Trade Co. [Member] - USD ($) $ in Millions | 12 Months Ended | 46 Months Ended | 72 Months Ended | ||
Feb. 03, 2019 | Sep. 30, 2026 | Nov. 28, 2022 | Feb. 04, 2018 | Nov. 29, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan Receivable from Supplier | $ 13.8 | $ 14 | $ 13.8 | ||
Loans Receivable, Fixed Interest Rate | 4.50% | ||||
Loans Receivable, Basis Spread on Variable Rate, During Period | 4.00% | ||||
Proceeds from Collection of Loan Receivable from Supplier | $ 0.2 |
OTHER COMMENTS OTHER COMMENTS A
OTHER COMMENTS OTHER COMMENTS Assets Held for Sale (Details) - Jul. 04, 2016 - Buildings and building improvements [Member] € in Millions, $ in Millions | USD ($) | EUR (€) |
Long Lived Assets Held-for-sale [Line Items] | ||
Proceeds from Sale of Property Held-for-sale | $ 16.7 | € 15 |
Gain from sale of assets held for sale | $ 1.5 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 04, 2019USD ($) | Aug. 04, 2019AUD ($) | Feb. 02, 2020USD ($) | |
Subsequent Event [Line Items] | |||
Severance, noncash asset impairments and lease and other contract termination costs | $ 60 | ||
Australia Acquisition [Member] | |||
Subsequent Event [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 78.00% | 78.00% | |
Payments to Acquire Businesses, Gross | $ 90 | $ 124 | |
TH CSAP Acquisition [Member] | |||
Subsequent Event [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 75 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Valuation allowance released on foreign tax credits resulting from U.S. Tax Legislation | $ (26.3) | ||||||
Valuation allowance recognized on foreign tax credits resulting from U.S. Tax Legislation | $ 38.5 | ||||||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 21.1 | 15 | $ 18.1 | ||||
Additions Charged to Costs and Expenses | 14.2 | 7.5 | 6.1 | ||||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [1],[2] | 13.7 | 1.4 | 9.2 | |||
Balance at End of Period | 21.6 | 21.1 | 15 | ||||
Allowance or Accrual for Operational Chargebacks and Customer Markdowns [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 271 | 289.5 | 291.9 | ||||
Additions Charged to Costs and Expenses | 403.8 | 498.2 | 551 | ||||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [1] | 448 | 516.7 | 553.4 | [3] | ||
Balance at End of Period | 226.8 | 271 | 289.5 | ||||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 106.3 | 43.9 | 43.8 | ||||
Additions Charged to Costs and Expenses | 12.9 | 64.3 | [4] | 6 | |||
Additions Charged to Other Accounts | 0 | 1.9 | 0 | ||||
Deductions | [1] | 56.6 | [5] | 3.8 | 5.9 | ||
Balance at End of Period | $ 62.6 | $ 106.3 | $ 43.9 | ||||
[1] | Includes changes due to foreign currency translation. | ||||||
[2] | Principally accounts written off as uncollectible, net of recoveries. | ||||||
[3] | Includes the impact of the Mexico deconsolidation. | ||||||
[4] | Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation. | ||||||
[5] | Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation. |