Document and Entity Information
Document and Entity Information | 3 Months Ended |
Apr. 30, 2019shares | |
Document Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Apr. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | TIF |
Entity Registrant Name | TIFFANY & CO |
Entity Central Index Key | 0000098246 |
Current Fiscal Year End Date | --01-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 121,407,389 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 709.5 | $ 792.6 | $ 999.2 |
Short-term investments | 53.2 | 62.7 | 212.7 |
Accounts receivable, net | 210.5 | 245.4 | 227.7 |
Inventories, net | 2,453.8 | 2,428 | 2,317.6 |
Prepaid expenses and other current assets | 215.8 | 230.8 | 223 |
Total current assets | 3,642.8 | 3,759.5 | 3,980.2 |
Operating lease right-of-use assets | 1,066.1 | ||
Property, plant and equipment, net | 1,019.2 | 1,026.7 | 965.6 |
Deferred income taxes | 214.5 | 215.8 | 187.3 |
Other assets, net | 333.1 | 331 | 317.5 |
Total Assets | 6,275.7 | 5,333 | 5,450.6 |
Current liabilities: | |||
Short-term borrowings | 142.1 | 113.4 | 96.7 |
Accounts payable and accrued liabilities | 392.6 | 513.4 | 380.6 |
Current portion of operating lease liabilities | 226.3 | ||
Income taxes payable | 40.6 | 21.4 | 124.3 |
Merchandise credits and deferred revenue | 72.1 | 69.9 | 82.7 |
Total current liabilities | 873.7 | 718.1 | 684.3 |
Long-term debt | 881.2 | 883.4 | 882.9 |
Pension/postretirement benefit obligations | 284.9 | 312.4 | 290.7 |
Deferred gains on sale-leasebacks | 0 | 31.1 | 38 |
Long-term portion of operating lease liabilities | 952.1 | ||
Other long-term liabilities | 111.8 | 257.1 | 286.1 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred Stock, $0.01 par value; authorized 2.0 shares, none issued and outstanding | 0 | 0 | 0 |
Common Stock, $0.01 par value; authorized 240.0 shares, issued and outstanding 121.4, 121.5, 124.2 | 1.2 | 1.2 | 1.2 |
Additional paid-in capital | 1,273.1 | 1,275.4 | 1,259.6 |
Retained earnings | 2,128.3 | 2,045.6 | 2,159 |
Accumulated other comprehensive loss, net of tax | (244) | (204.8) | (166.1) |
Total Tiffany & Co. stockholders' equity | 3,158.6 | 3,117.4 | 3,253.7 |
Non-controlling interests | 13.4 | 13.5 | 14.9 |
Total stockholders' equity | 3,172 | 3,130.9 | 3,268.6 |
Total Liabilities and Stockholders' Equity | $ 6,275.7 | $ 5,333 | $ 5,450.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock par value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock issued (shares) | 0 | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 | 0 |
Common stock par value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 240,000,000 | 240,000,000 | 240,000,000 |
Common stock issued (shares) | 121,400,000 | 121,500,000 | 124,200,000 |
Common stock outstanding (shares) | 121,400,000 | 121,500,000 | 124,200,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,003.1 | $ 1,033.2 |
Cost of sales | 383.9 | 382.3 |
Gross profit | 619.2 | 650.9 |
Selling, general and administrative expenses | 458.3 | 446.6 |
Earnings from operations | 160.9 | 204.3 |
Interest expense and financing costs | 10.4 | 9.9 |
Other (income) expense, net | (1) | 3.9 |
Earnings from operations before income taxes | 151.5 | 190.5 |
Provision for income taxes | 26.3 | 48.2 |
Net earnings | $ 125.2 | $ 142.3 |
Net earnings per share: | ||
Basic (usd per share) | $ 1.03 | $ 1.14 |
Diluted (usd per share) | $ 1.03 | $ 1.14 |
Weighted-average number of common shares: | ||
Basic (shares) | 121.4 | 124.4 |
Diluted (shares) | 121.9 | 125 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 125.2 | $ 142.3 |
Other comprehensive (loss) earnings, net of tax | ||
Foreign currency translation adjustments, net of tax | (24.2) | (25) |
Unrealized gain (loss) on hedging instruments | 8.8 | (7.3) |
Unrealized gain on benefit plans | 2.2 | 2.4 |
Total other comprehensive loss, net of tax | (13.2) | (29.9) |
Comprehensive earnings | $ 112 | $ 112.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock | Additional Paid-In Capital | Non- Controlling Interests |
Beginning balance at Jan. 31, 2018 | $ 3,248.2 | $ 2,114.2 | $ (138) | $ 1.2 | $ 1,256 | $ 14.8 |
Beginning balance (shares) at Jan. 31, 2018 | 124.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options and vesting of restricted stock units | 4.5 | 4.5 | ||||
Exercise of stock options and vesting of restricted stock units (shares) | 0.2 | |||||
Shares withheld related to net share settlement of share-based compensation | (6.5) | (6.5) | ||||
Shares withheld related to net share settlement of share-based compensation (shares) | (0.1) | |||||
Share-based compensation expense | 9 | 9 | ||||
Purchase and retirement of Common Stock | $ (40.5) | (37.1) | (3.4) | |||
Purchase and retirement of Common Stock (shares) | (0.4) | (0.4) | ||||
Cash dividends on Common Stock | $ (62.2) | (62.2) | ||||
Accrued dividends on share-based awards | (0.3) | (0.3) | ||||
Other comprehensive loss, net of tax | (29.9) | (29.9) | ||||
Net earnings | 142.3 | 142.3 | ||||
Non-controlling interests | 0.1 | 0.1 | ||||
Ending balance at Apr. 30, 2018 | $ 3,268.6 | 2,159 | (166.1) | $ 1.2 | 1,259.6 | 14.9 |
Ending balance (shares) at Apr. 30, 2018 | 124.2 | 124.2 | ||||
Beginning balance at Jan. 31, 2019 | $ 3,130.9 | 2,045.6 | (204.8) | $ 1.2 | 1,275.4 | 13.5 |
Beginning balance (shares) at Jan. 31, 2019 | 121.5 | 121.5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options and vesting of restricted stock units | $ 2 | 2 | ||||
Exercise of stock options and vesting of restricted stock units (shares) | 0.3 | |||||
Shares withheld related to net share settlement of share-based compensation | (8.1) | (8.1) | ||||
Shares withheld related to net share settlement of share-based compensation (shares) | (0.1) | |||||
Share-based compensation expense | 5.9 | 5.9 | ||||
Purchase and retirement of Common Stock | $ (25.4) | (23.1) | (2.3) | |||
Purchase and retirement of Common Stock (shares) | (0.3) | (0.3) | ||||
Cash dividends on Common Stock | $ (66.7) | (66.7) | ||||
Accrued dividends on share-based awards | (0.3) | (0.5) | 0.2 | |||
Other comprehensive loss, net of tax | (13.2) | (13.2) | ||||
Net earnings | 125.2 | 125.2 | ||||
Non-controlling interests | (0.1) | (0.1) | ||||
Ending balance at Apr. 30, 2019 | $ 3,172 | $ 2,128.3 | $ (244) | $ 1.2 | $ 1,273.1 | $ 13.4 |
Ending balance (shares) at Apr. 30, 2019 | 121.4 | 121.4 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (usd per share) | $ 0.55 | $ 0.50 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 125.2 | $ 142.3 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 60.9 | 53.8 |
Amortization of gain on sale-leasebacks | 0 | (2.2) |
Provision for inventories | 5.3 | 11.2 |
Deferred income taxes | (6.6) | 1.5 |
Provision for pension/postretirement benefits | 7.7 | 8.4 |
Share-based compensation expense | 5.9 | 9 |
Changes in assets and liabilities: | ||
Accounts receivable | 32.5 | (11.8) |
Inventories | (53) | (93.7) |
Prepaid expenses and other current assets | (21.5) | (1.8) |
Accounts payable and accrued liabilities | (113.7) | (54.1) |
Income taxes payable | 13.3 | 25.3 |
Merchandise credits and deferred revenue | 2.5 | 11.5 |
Other, net | (27.4) | 0.4 |
Net cash provided by operating activities | 31.1 | 99.8 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities and short-term investments | (10.1) | (15.9) |
Proceeds from sales of marketable securities and short-term investments | 17.5 | 107.7 |
Capital expenditures | (59.5) | (36.9) |
Net cash (used in) provided by investing activities | (52.1) | 54.9 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from (repayments of) credit facility borrowings, net | 16.8 | (6.8) |
Proceeds from other credit facility borrowings | 26.6 | 0 |
Repayment of other credit facility borrowings | (14.5) | (14.5) |
Repurchase of Common Stock | (25.4) | (40.5) |
Proceeds from exercised stock options | 2 | 4.3 |
Payments related to tax withholding for share-based payment arrangements | (7.9) | (6.3) |
Cash dividends on Common Stock | (66.7) | (62.2) |
Net cash used in financing activities | (69.1) | (126) |
Effect of exchange rate changes on cash and cash equivalents | 7 | (0.2) |
Net (decrease) increase in cash and cash equivalents | (83.1) | 28.5 |
Cash and cash equivalents at beginning of year | 792.6 | 970.7 |
Cash and cash equivalents at end of three months | $ 709.5 | $ 999.2 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Apr. 30, 2019 | |
Condensed Consolidated Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying condensed consolidated financial statements include the accounts of Tiffany & Co. (also referred to as the "Registrant") and its subsidiaries (the "Company") in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities ("VIEs"), if the Company has the power to significantly direct the activities of a VIE, as well as the obligation to absorb significant losses of or the right to receive significant benefits from the VIE. Intercompany accounts, transactions and profits have been eliminated in consolidation. The interim financial statements are unaudited and, in the opinion of management, include all adjustments (which represent normal recurring adjustments) necessary to fairly state the Company's financial position as of April 30, 2019 and 2018 and the results of its operations and cash flows for the interim periods presented. The condensed consolidated balance sheet data for January 31, 2019 are derived from the audited financial statements, which are included in the Company's Annual Report on Form 10-K and should be read in connection with these financial statements. As permitted by the rules of the Securities and Exchange Commission, these financial statements do not include all disclosures required by generally accepted accounting principles. The Company's business is seasonal in nature, with the fourth quarter typically representing approximately one-third of annual net sales and a higher percentage of annual net earnings. Therefore, the results of its operations for the three months ended April 30, 2019 and 2018 are not necessarily indicative of the results of the entire fiscal year. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13 – Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. The new standard applies to financial assets measured at amortized cost basis, including receivables that result from revenue transactions and held-to-maturity debt securities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted for fiscal years beginning after December 15, 2018. Management continues to evaluate the impact of this ASU on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 – Intangibles – Goodwill and Other – Internal-Use Software : Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs in such cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. Management continues to evaluate the impact of this ASU on the consolidated financial statements. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02 – Leases (ASC 842), which was amended in January 2018 and requires an entity that leases assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Leases are classified as either financing or operating with the applicable classification determining the pattern of expense recognition in the statement of earnings. The Company adopted this ASU on February 1, 2019 by applying its provisions prospectively and recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of February 1, 2019. The Company also elected the package of practical expedients permitted under the transition guidance, which provides that an entity need not reassess: (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any existing leases. The Company also elected to not reassess lease terms using hindsight and to combine lease and non-lease components for new leases subsequent to February 1, 2019. The adoption of ASU 2016-02 resulted in the following impacts to the Company's Condensed Consolidated Balance Sheet as of February 1, 2019: • The establishment of a lease liability of approximately $1.2 billion and a corresponding right-of-use asset; • The reclassification of existing balances in respect of unamortized lease incentives and lease straight-line liabilities from Other long-term liabilities to Operating lease right-of-use assets; and • The reclassification of $31.1 million of deferred gains on sale-leasebacks, and related deferred tax assets of $9.5 million , to opening retained earnings. In August 2017, the FASB issued ASU 2017-12 – Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of previous guidance related to the assessment of hedge effectiveness. This ASU was effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, with early adoption permitted. The amendments in this ASU must be applied on a modified retrospective basis, while presentation and disclosure requirements set forth under this ASU are required prospectively in all interim periods and fiscal years ending after the date of adoption. Management adopted this ASU on February 1, 2019. The adoption of this ASU did not have any impact on the condensed consolidated financial statements. The disclosures required by this ASU are included in "Note 8. Hedging Instruments." In February 2018, the FASB issued ASU 2018-02 – Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for the reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the tax effects on deferred tax items included within AOCI (referred to in the ASU as "stranded tax effects") resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% that was effected by the 2017 U.S. Tax Cuts and Jobs Act. ASU 2018-02 was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Management adopted this ASU on February 1, 2019. The adoption of ASU 2018-02 resulted in a reclassification of $26.2 million from AOCI to retained earnings, and had no impact on the Company's results of operations, financial position or cash flows. |
Receivables and Revenue Recogni
Receivables and Revenue Recognition | 3 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Receivables and Revenue Recognition | RECEIVABLES AND REVENUE RECOGNITION Receivables. The Company's Accounts receivable, net primarily consists of amounts due from Credit Receivables (defined below), department store operators that host TIFFANY & CO. boutiques in their stores, third-party credit card issuers and wholesale customers. The Company maintains an allowance for doubtful accounts for estimated losses associated with outstanding accounts receivable. The allowance is determined based on a combination of factors including, but not limited to, the length of time that the receivables are past due, management's knowledge of the customer, economic and market conditions and historical write-off experiences. For the receivables associated with Tiffany & Co. credit cards ("Credit Card Receivables"), management uses various indicators to determine whether to extend credit to customers and the amount of credit. Such indicators include reviewing prior experience with the customer, including sales and collection history, and using applicants' credit reports and scores provided by credit rating agencies. Certain customers may be granted payment terms which permit purchases above a minimum amount to be paid for in equal monthly installments over a period not to exceed 12 months (together with Credit Card Receivables, "Credit Receivables"). Credit Receivables require minimum balance payments. An account is classified as overdue if a minimum balance payment has not been received within the allotted time frame (generally 30 days), after which internal collection efforts commence. In order for the account to return to current status, full payment on all past due amounts must be received by the Company. For all Credit Receivables, once all internal collection efforts have been exhausted and management has reviewed the account, the account balance is written off and may be sent for external collection or legal action. At April 30, 2019 and 2018 , the carrying amount of the Credit Receivables (recorded in Accounts receivable, net) was $83.7 million and $72.8 million , respectively, of which 97% was considered current in both periods. Finance charges earned on Credit Receivables were not significant. At April 30, 2019 , accounts receivable allowances totaled $31.5 million , compared to $31.5 million at January 31, 2019 and $29.9 million at April 30, 2018 . Revenue Recognition . The following table disaggregates the Company's net sales by major source: Three Months Ended April 30, (in millions) 2019 2018 Net sales*: Jewelry collections $ 532.3 $ 527.1 Engagement jewelry 280.4 296.7 Designer jewelry 110.9 128.4 All other 79.5 81.0 $ 1,003.1 $ 1,033.2 *Certain reclassifications within the jewelry categories have been made to the prior year amounts to conform to the current year category presentation. The Company's performance obligations consist primarily of transferring control of merchandise to customers. Sales are recognized upon transfer of control, which occurs when merchandise is taken in an "over-the-counter" transaction or upon receipt by a customer in a shipped transaction, such as through the Internet and catalog channels. Sales are reported net of returns, sales tax and other similar taxes. The Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority and collected by the entity from a customer. Shipping and handling fees billed to customers are recognized in net sales when control of the underlying merchandise is transferred to the customer. The related shipping and handling charges incurred by the Company represent fulfillment activities and are included in Cost of sales. The Company maintains a reserve for potential product returns and records (as a reduction to sales and cost of sales) its provision for estimated product returns, which is determined based on historical experience. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when management expects, at contract inception, that the period between the transfer of a product to a customer and when the customer pays for that product is one year or less. Additionally, outside of the U.S., the Company operates certain TIFFANY & CO. stores within various department stores. Sales transacted at these store locations are recognized upon transfer of control, which occurs when merchandise is taken in an "over-the-counter" transaction. The Company and these department store operators have distinct responsibilities and risks in the operation of such TIFFANY & CO. stores. The Company (i) owns and manages the merchandise; (ii) establishes retail prices; (iii) has merchandising, marketing and display responsibilities; and (iv) in almost all locations provides retail staff and bears the risk of inventory loss. The department store operators (i) provide and maintain store facilities; (ii) in almost all locations assume retail credit and certain other risks; and (iii) act for the Company in the sale of merchandise. In return for their services and use of their facilities, the department store operators retain a portion of net retail sales made in TIFFANY & CO. stores, which is recorded as rent expense within Selling, general and administrative expenses. Merchandise Credits and Deferred Revenue . Merchandise credits and deferred revenue primarily represent outstanding gift cards sold to customers and outstanding credits issued to customers for returned merchandise. All such outstanding items may be tendered for future merchandise purchases. A gift card liability is established when the gift card is sold. A merchandise credit liability is established when a merchandise credit is issued to a customer for a returned item and the original sale is reversed. These liabilities are relieved when revenue is recognized for transactions in which a merchandise credit or gift card is used as a form of payment. If merchandise credits or gift cards are not redeemed over an extended period of time (for example, approximately three to five years in the U.S.), the value associated with the merchandise credits or gift cards may be subject to remittance to the applicable jurisdiction in accordance with unclaimed property laws. The Company determines the amount of breakage income to be recognized on gift cards and merchandise credits using historical experience to estimate amounts that will ultimately not be redeemed. The Company recognizes such breakage income in proportion to redemption rates of the overall population of gift cards and merchandise credits. In the three months ended April 30, 2019 , the Company recognized net sales of approximately $14.0 million related to the Merchandise credits and deferred revenue balance that existed at January 31, 2019 in respect of merchandise credits or gift cards redeemed subsequent to that date. |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Finished goods $ 1,492.2 $ 1,484.3 $ 1,309.9 Raw materials 843.8 781.8 871.7 Work-in-process 117.8 161.9 136.0 Inventories, net $ 2,453.8 $ 2,428.0 $ 2,317.6 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective income tax rate for the three months ended April 30, 2019 was 17.3% versus 25.3% in the prior year. The effective income tax rate for the three months ended April 30, 2019 included the recognition of an income tax benefit of $7.5 million , or 500 basis points, related to an increase in the estimated 2018 Foreign Derived Intangible Income ("FDII") benefit as a result of new U.S. Treasury guidance issued during the three months ended April 30, 2019. During the three months ended April 30, 2019 , the change in the gross amount of unrecognized tax benefits and accrued interest and penalties was not significant. The Company conducts business globally and, as a result, is subject to taxation in the U.S. and various state and foreign jurisdictions. As a matter of course, tax authorities regularly audit the Company. The Company's tax filings are currently being examined by a number of tax authorities, both in the U.S. and in foreign jurisdictions. Ongoing audits where subsidiaries have a material presence include New York City (tax years 2011 - 2014 ) and New York State (tax years 2012 - 2014 ). Tax years from 2010 -present are open to examination in the U.S. Federal jurisdiction and 2006 -present are open in various state, local and foreign jurisdictions. As part of these audits, the Company engages in discussions with taxing authorities regarding tax positions. Management anticipates that it is reasonably possible that the total gross amount of unrecognized tax benefits will decrease by approximately $6.0 million in the next 12 months; however management does not currently anticipate a corresponding impact on net earnings. Future developments may result in a change in this assessment. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share ("EPS") is computed as net earnings divided by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of the assumed exercise of stock options and unvested restricted stock units. The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted EPS computations: Three Months Ended April 30, (in millions) 2019 2018 Net earnings for basic and diluted EPS $ 125.2 $ 142.3 Weighted-average shares for basic EPS 121.4 124.4 Incremental shares based upon the assumed exercise of stock options and unvested restricted stock units 0.5 0.6 Weighted-average shares for diluted EPS 121.9 125.0 For the three months ended April 30, 2019 and 2018 , there were 1.7 million and 0.9 million, respectively, stock options and restricted stock units that were excluded from the computations of earnings per diluted share due to their antidilutive effect. |
Debt
Debt | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Short-term borrowings: Credit Facilities $ 30.1 $ 13.5 $ 26.1 Other credit facilities 112.0 99.9 70.6 $ 142.1 $ 113.4 $ 96.7 Long-term debt: Unsecured Senior Notes: 2012 4.40% Series B Senior Notes, due July 2042 a $ 250.0 $ 250.0 $ 250.0 2014 3.80% Senior Notes, due October 2024 b, c 250.0 250.0 250.0 2014 4.90% Senior Notes, due October 2044 b, c 300.0 300.0 300.0 2016 0.78% Senior Notes, due August 2026 b, d 89.5 91.8 91.7 889.5 891.8 891.7 Less: unamortized discounts and debt issuance costs (8.3 ) (8.4 ) (8.8 ) $ 881.2 $ 883.4 $ 882.9 a The agreements governing these Senior Notes require repayments of $50.0 million in aggregate every five years beginning in July 2022. b These agreements require lump sum repayments upon maturity. c These Senior Notes were issued at a discount, which will be amortized until the debt maturity. d These Senior Notes were issued at par, ¥10.0 billion . At April 30, 2019 , the Company was in compliance with all debt covenants. |
Hedging Instruments
Hedging Instruments | 3 Months Ended |
Apr. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Instruments | HEDGING INSTRUMENTS Background Information The Company uses derivative financial instruments, including interest rate swaps, cross-currency swaps, forward contracts and net-zero-cost collar arrangements (combination of call and put option contracts) to mitigate a portion of its exposures to changes in interest rates, foreign currency exchange rates and precious metal prices. Derivative Instruments Designated as Hedging Instruments. If a derivative instrument meets certain hedge accounting criteria, it is recorded on the Condensed Consolidated Balance Sheet at its fair value, as either an asset or a liability, with an offset to current or other comprehensive earnings, depending on whether the hedge is designated as one of the following on the date it is entered into: • Fair Value Hedge – A hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment. For fair value hedge transactions, the changes in the fair value of the derivative and changes in the fair value of the item being hedged are recorded in current earnings. • Cash Flow Hedge – A hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the changes in fair value of derivatives is reported as other comprehensive income ("OCI") and is recognized in current earnings in the period or periods during which the hedged transaction affects current earnings. The Company formally documents the nature of and relationships between the hedging instruments and hedged items for a derivative to qualify as a hedge at inception and throughout the hedged period. The Company also documents its risk management objectives, strategies for undertaking the various hedge transactions and method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be identified, and it must be probable that each forecasted transaction will occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss on the derivative financial instrument would be recognized in current earnings. Derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedge instrument and the item being hedged, both at inception and throughout the hedged period. Derivative Instruments Not Designated as Hedging Instruments. Derivative instruments which do not meet the criteria to be designated as a hedge are recorded on the Condensed Consolidated Balance Sheet at their fair values, as either assets or liabilities, with an offset to current earnings. The gains or losses on undesignated foreign exchange forward contracts substantially offset foreign exchange losses or gains on the underlying liabilities or transactions being hedged. The Company does not use derivative financial instruments for trading or speculative purposes. Types of Derivative Instruments Interest Rate Swaps – In 2012, the Company entered into forward-starting interest rate swaps to hedge the impact of interest rate volatility on future interest payments associated with the anticipated incurrence of $250.0 million of debt which was incurred in July 2012. The Company accounted for the forward-starting interest rate swaps as cash flow hedges. The Company settled the interest rate swaps in 2012 and recorded a loss within accumulated other comprehensive loss. As of April 30, 2019 , $17.0 million remains recorded as a loss in accumulated other comprehensive loss, which is being amortized over the term of the 2042 Notes to which the interest rate swaps related. In 2014, the Company entered into forward-starting interest rate swaps to hedge the impact of interest rate volatility on future interest payments associated with the anticipated incurrence of long-term debt which was incurred in September 2014. The Company accounted for the forward-starting interest rate swaps as cash flow hedges. The Company settled the interest rate swaps in 2014 and recorded a loss within accumulated other comprehensive loss. As of April 30, 2019 , $3.5 million remains recorded as a loss in accumulated other comprehensive loss, which is being amortized over the terms of the respective 2024 Notes or 2044 Notes to which the interest rate swaps related. Cross-currency Swaps – In 2016 and 2017, the Company entered into cross-currency swaps to hedge the foreign currency exchange risk associated with Japanese yen-denominated intercompany loans. These cross-currency swaps are designated and accounted for as cash flow hedges. As of April 30, 2019 , the notional amounts of cross-currency swaps accounted for as cash flow hedges and the respective maturity dates were as follows: Cross-Currency Swap Notional Amount Effective Date Maturity Date (in billions) (in millions) July 2016 October 1, 2024 ¥ 10.6 $ 100.0 March 2017 April 1, 2027 11.0 96.1 May 2017 April 1, 2027 5.6 50.0 Foreign Exchange Forward Contracts – The Company uses foreign exchange forward contracts to offset a portion of the foreign currency exchange risks associated with foreign currency-denominated liabilities, intercompany transactions and forecasted purchases of merchandise between entities with differing functional currencies. The Company assesses hedge effectiveness based on the total changes in the foreign exchange forward contracts' cash flows. These foreign exchange forward contracts are designated and accounted for as either cash flow hedges or economic hedges that are not designated as hedging instruments. As of April 30, 2019 , the notional amounts of foreign exchange forward contracts were as follows: (in millions) Notional Amount USD Equivalent Derivatives designated as hedging instruments: Japanese yen ¥ 18,653.1 172.6 British pound £ 11.5 15.1 Derivatives not designated as hedging instruments: U.S. dollar $ 57.7 57.7 Euro € 6.6 7.4 Australian dollar AU$ 30.4 21.7 British pound £ 19.4 25.5 Czech koruna CZK 133.5 5.9 Japanese yen ¥ 888.2 8.0 Korean won ₩ 45,292.2 40.4 Hong Kong dollar HKD 63.7 8.1 New Zealand dollar NZ$ 10.7 7.2 Singapore dollar S$ 19.8 14.6 Swiss franc CHF 5.5 5.5 Danish kroner DKK 52.0 7.9 The maximum term of the Company's outstanding foreign exchange forward contracts as of April 30, 2019 is 12 months. Precious Metal Collars and Forward Contracts – The Company periodically hedges a portion of its forecasted purchases of precious metals for use in its internal manufacturing operations in order to manage the effect of volatility in precious metal prices. The Company may use either a combination of call and put option contracts in net-zero-cost collar arrangements ("precious metal collars") or forward contracts. For precious metal collars, if the price of the precious metal at the time of the expiration of the precious metal collar is within the call and put price, the precious metal collar expires at no cost to the Company. The Company accounts for its precious metal collars and forward contracts as cash flow hedges. The Company assesses hedge effectiveness based on the total changes in the precious metal collars and forward contracts' cash flows. As of April 30, 2019 , the maximum term over which the Company is hedging its exposure to the variability of future cash flows for all forecasted precious metals transactions is 18 months. As of April 30, 2019 , there were precious metal derivative instruments outstanding for approximately 30,000 ounces of platinum, 497,000 ounces of silver and 70,000 ounces of gold. Information on the location and amounts of derivative gains and losses in the condensed consolidated financial statements is as follows: Three Months Ended April 30, 2019 (in millions) Cost of sales Interest expense and financing costs Other (income) expense, net Other comprehensive loss, net of tax Reported amounts of financial statement line items in which effects of cash flow hedges are recorded $ 383.9 $ 10.4 $ (1.0 ) $ (13.2 ) Derivatives in Cash Flow Hedging Foreign exchange forward contracts Pre-tax gain recognized in OCI — — — 5.7 Pre-tax loss reclassified from accumulated OCI into earnings (1.1 ) — — 1.1 Precious metal collars Pre-tax loss reclassified from accumulated OCI into earnings (0.1 ) — — 0.1 Precious metal forward contracts Pre-tax loss recognized in OCI — — — (1.4 ) Pre-tax gain reclassified from accumulated OCI into earnings 1.1 — — (1.1 ) Cross-currency swaps Pre-tax gain recognized in OCI — — — 13.4 Pre-tax loss reclassified from accumulated OCI into earnings — — (7.8 ) 7.8 Forward-starting interest rate swaps Pre-tax gain reclassified from accumulated OCI into earnings — 0.3 — (0.3 ) Three months ended April 30, 2018 (in millions) Cost of sales Interest expense and financing costs Other (income) expense, net Other comprehensive loss, net of tax Reported amounts of financial statement line items in which effects of cash flow hedges are recorded $ 382.3 $ 9.9 $ 3.9 $ (29.9 ) Derivatives in Cash Flow Hedging Foreign exchange forward contracts Pre-tax gain recognized in OCI — — — 1.8 Pre-tax loss reclassified from accumulated OCI into earnings (1.6 ) — — 1.6 Precious metal collars Pre-tax loss reclassified from accumulated OCI into earnings (0.1 ) — — 0.1 Precious metal forward contracts Pre-tax loss recognized in OCI — — — (5.6 ) Pre-tax loss reclassified from accumulated OCI into earnings (0.4 ) — — 0.4 Cross-currency swaps Pre-tax loss recognized in OCI — — — (3.4 ) Pre-tax loss reclassified from accumulated OCI into earnings — — (0.6 ) 0.6 Forward-starting interest rate swaps Pre-tax gain reclassified from accumulated OCI into earnings — 0.4 — (0.4 ) The pre-tax gains (losses) on derivatives not designated as hedging instruments were not significant in the three months ended April 30, 2019 and 2018 . The Company expects the net amount of pre-tax derivative gains and losses included in accumulated other comprehensive loss at April 30, 2019 to be reclassified into earnings within the next 12 months will not be significant. The actual amount reclassified will vary due to fluctuations in foreign currency exchange rates and precious metal prices. For information regarding the location and amount of the derivative instruments in the Condensed Consolidated Balance Sheet, see "Note 9. Fair Value of Financial Instruments." Concentration of Credit Risk A number of major international financial institutions are counterparties to the Company's derivative financial instruments. The Company enters into derivative financial instrument agreements only with counterparties meeting certain credit standards (an investment grade credit rating at the time of the agreement) and limits the amount of agreements or contracts it enters into with any one party. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. U.S. GAAP prescribes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities, which are considered to be most reliable. Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 – Unobservable inputs reflecting the reporting entity's own assumptions, which require the most judgment. The Company's derivative instruments are considered Level 2 instruments for the purpose of determining fair value. The Company's foreign exchange forward contracts, as well as its put option contracts and cross-currency swaps, are primarily valued using the appropriate foreign exchange spot rates. The Company's precious metal forward contracts and collars are primarily valued using the relevant precious metal spot rate. For further information on the Company's hedging instruments and program, see "Note 8. Hedging Instruments." Financial assets and liabilities carried at fair value at April 30, 2019 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 53.2 $ — $ — $ 53.2 Marketable securities b 37.4 — — 37.4 Derivatives designated as hedging instruments: Precious metal forward contracts c — 3.3 — 3.3 Foreign exchange forward contracts c — 3.4 — 3.4 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 2.1 — 2.1 Total financial assets $ 90.6 $ 8.8 $ — $ 99.4 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 0.8 $ — $ 0.8 Foreign exchange forward contracts d — 0.1 — 0.1 Cross-currency swaps d — 8.1 — 8.1 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 0.5 — 0.5 Total financial liabilities $ — $ 9.5 $ — $ 9.5 Financial assets and liabilities carried at fair value at January 31, 2019 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 62.7 $ — $ — $ 62.7 Marketable securities b 36.3 — — 36.3 Derivatives designated as hedging instruments: Precious metal forward contracts c — 5.2 — 5.2 Foreign exchange forward contracts c — 1.8 — 1.8 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 0.9 — 0.9 Total financial assets $ 99.0 $ 7.9 $ — $ 106.9 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 2.7 $ — $ 2.7 Foreign exchange forward contracts d — 2.1 — 2.1 Cross-currency swaps d — 19.9 — 19.9 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 2.7 — 2.7 Total financial liabilities $ — $ 27.4 $ — $ 27.4 Financial assets and liabilities carried at fair value at April 30, 2018 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 212.7 $ — $ — $ 212.7 Marketable securities b 37.1 — — 37.1 Derivatives designated as hedging instruments: Precious metal forward contracts c — 1.8 — 1.8 Foreign exchange forward contracts c — 0.9 — 0.9 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 1.4 — 1.4 Total financial assets $ 249.8 $ 4.1 $ — $ 253.9 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 5.0 $ — $ 5.0 Foreign exchange forward contracts d — 2.4 — 2.4 Cross-currency swaps d — 23.6 — 23.6 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 0.8 — 0.8 Total financial liabilities $ — $ 31.8 $ — $ 31.8 a Included within Short-term investments. b Included within Other assets, net. c Included within Prepaid expenses and other current assets or Other assets, net based on the maturity of the contract. d Included within Accounts payable and accrued liabilities or Other long-term liabilities based on the maturity of the contract. The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying values due to the short-term maturities of these assets and liabilities and as such are measured using Level 1 inputs. The fair value of debt with variable interest rates approximates carrying value and is measured using Level 2 inputs. The fair value of debt with fixed interest rates was determined using the quoted market prices of debt instruments with similar terms and maturities, which are considered Level 2 inputs. The total carrying value of short-term borrowings and long-term debt was approximately $1.0 billion at both April 30, 2019 and 2018 and the corresponding fair value was approximately $1.0 billion at April 30, 2019 and 2018 . |
Leases
Leases | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain office, distribution, retail and manufacturing facilities, land and equipment. Retail store leases may require the payment of minimum rentals and contingent rent based on a percentage of sales exceeding a stipulated amount. The lease agreements, which expire at various dates through 2062, are subject, in many cases, to renewal options and provide for the payment of taxes, insurance and maintenance. Certain leases contain escalation clauses resulting from the pass through of increases in operating costs, property taxes and the effect on costs from changes in consumer price indices. The Company determines its lease payments based on predetermined rent escalations (including escalations based on consumer price indices), rent-free periods and other incentives. The Company recognizes rent expense on a straight-line basis over the related terms of such leases, beginning from when the Company takes possession of the leased facility. Variable rents, including contingent rent based on a percentage of sales and adjustments to consumer price indices, are recorded in the period such amounts and adjustments are determined. Lease terms include renewal options when exercise of such options is reasonably certain and within the control of the Company. There is generally no readily determinable discount rate implicit in the Company's leases. Accordingly, the Company uses its incremental borrowing rate for a term that corresponds to the applicable lease term in order to measure its lease liabilities and has elected to use such rates based on lease terms remaining as of February 1, 2019. The amounts of the Company's right-of-use asset and current and non-current lease liabilities are presented separately on the Condensed Consolidated Balance Sheet as of April 30, 2019 . Substantially all of the Company's leases are operating leases as of April 30, 2019 . The Company records lease expense within Cost of sales for leases of manufacturing facilities and within Selling, general and administrative expenses for all other leases. Amounts recognized in the Condensed Consolidated Statement of Earnings were as follows: (in millions) Three Months Ended April 30, 2019 Fixed operating lease expense $ 77.3 Variable operating lease expense 34.6 Sublease income (1.2 ) Net lease expense $ 110.7 The weighted average remaining lease term was seven years and the weighted average discount rate was 4.2% for all of the Company's operating leases as of April 30, 2019 . The following table provides supplemental cash flow information related to the Company's operating leases: Three Months Ended April 30, 2019 Cash flows from operating activities attributable to operating leases $ 70.9 Right-of-use assets obtained in exchange for operating lease liabilities 52.9 The following table reconciles the undiscounted cash flows expected to be paid in each of the next five fiscal years and thereafter to the operating lease liability recorded on the Condensed Consolidated Balance Sheet for operating leases existing as of April 30, 2019 : Years ending January 31, Minimum Lease Payments as of April 30, 2019 (in millions) 2020 * $ 202.9 2021 244.2 2022 214.4 2023 175.5 2024 142.6 Thereafter 403.3 Total minimum lease payments 1,382.9 Less: amount of total minimum lease payments representing interest (204.5 ) Present value of future total minimum lease payments 1,178.4 Less: current portion of lease liabilities (226.3 ) Long-term lease liabilities $ 952.1 * This amount represents minimum lease payments for the nine month period from May 1, 2019 to January 31, 2020. As previously disclosed in "Note J. Commitments and Contingencies" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended January 31, 2019, under previous lease accounting, future minimum lease payments for operating leases having an initial or remaining non-cancelable lease term in excess of one year were as follows: Years ending January 31, Minimum Lease Payments as of January 31, 2019 ( in millions ) 2020 $ 292.8 2021 239.2 2022 212.8 2023 177.4 2024 146.8 Thereafter 438.0 Total minimum lease payments $ 1,507.0 As of April 30, 2019 , there were 11 executed agreements in respect of store relocations, new stores, office space and other facilities without commencement dates, which had total commitments of $109.2 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation Litigation Matters. The Company is from time to time involved in routine litigation incidental to the conduct of its business, including proceedings to protect its trademark rights, litigation with parties claiming infringement of patents and other intellectual property rights by the Company, litigation instituted by persons alleged to have been injured upon premises under the Company's control and litigation with present and former employees and customers. Although litigation with present and former employees is routine and incidental to the conduct of the Company's business, as well as for any business employing significant numbers of employees, such litigation can result in large monetary awards when a civil jury is allowed to determine compensatory and/or punitive damages for actions such as those claiming discrimination on the basis of age, gender, race, religion, disability or other legally-protected characteristic or for termination of employment that is wrongful or in violation of implied contracts. However, the Company believes that all such litigation currently pending to which it is a party or to which its properties are subject will be resolved without any material adverse effect on the Company's financial position, earnings or cash flows. Gain Contingency. On February 14, 2013, Tiffany and Company and Tiffany (NJ) LLC (collectively, the "Tiffany plaintiffs") initiated a lawsuit against Costco Wholesale Corp. ("Costco") for trademark infringement, false designation of origin and unfair competition, trademark dilution and trademark counterfeiting (the "Costco Litigation"). The Tiffany plaintiffs sought injunctive relief, monetary recovery and statutory damages on account of Costco's use of "Tiffany" on signs in the jewelry cases at Costco stores used to describe certain diamond engagement rings that were not manufactured by Tiffany. Costco filed a counterclaim arguing that the TIFFANY trademark was a generic term for multi-pronged ring settings and seeking to have the trademark invalidated, modified or partially canceled in that respect. On September 8, 2015, the U.S. District Court for the Southern District of New York (the "Court") granted the Tiffany plaintiffs' motion for summary judgment of liability in its entirety, dismissing Costco's genericism counterclaim and finding that Costco was liable for trademark infringement, trademark counterfeiting and unfair competition under New York law in its use of "Tiffany" on the above-referenced signs. On September 29, 2016, a civil jury rendered its verdict, finding that Costco's profits on the sale of the infringing rings should be awarded at $5.5 million , and further finding that an award of punitive damages was warranted. On October 5, 2016, the jury awarded $8.25 million in punitive damages. The aggregate award of $13.75 million was not final, as it was subject to post-verdict motion practice and ultimately to adjustment by the Court. On August 14, 2017, the Court issued its ruling, finding that the Tiffany plaintiffs are entitled to recover (i) $11.1 million in respect of Costco's profits on the sale of the infringing rings (which amount is three times the amount of such profits, as determined by the Court), (ii) prejudgment interest on such amount (calculated at the applicable statutory rate) from February 15, 2013 through August 14, 2017, (iii) an additional $8.25 million in punitive damages, and (iv) Tiffany's reasonable attorneys' fees, and, on August 24, 2017, the Court entered judgment in the amount of $21.0 million in favor of the Tiffany plaintiffs (reflecting items (i) through (iii) above). On February 7, 2019, the Court awarded the Tiffany plaintiffs $5.9 million in respect of the aforementioned attorneys' fees and costs, bringing the total judgment to $26.9 million . The Court has denied a motion made by Costco for a new trial; however, Costco has also filed an appeal from the judgment, which is pending before the Second Circuit Court of Appeals. As the Tiffany plaintiffs may not enforce the Court's judgment during the appeals process, the Company has not recorded any amount in its consolidated financial statements related to this gain contingency as of April 30, 2019. The Company expects that this matter will not ultimately be resolved until, at the earliest, a future date during the Company's fiscal year ending January 31, 2020. Environmental Matter In 2005, the U.S. Environmental Protection Agency ("EPA") designated a 17-mile stretch of the Passaic River (the "River") part of the Diamond Alkali "Superfund" site. This designation resulted from the detection of hazardous substances emanating from the site, which was previously home to the Diamond Shamrock Corporation, a manufacturer of pesticides and herbicides. Under the Superfund law, the EPA will negotiate with potentially responsible parties to agree on remediation approaches and may also enter into settlement agreements pursuant to an allocation process. The Company, which operated a silverware manufacturing facility near a tributary of the River from approximately 1897 to 1985, is one of more than 300 parties (the "Potentially Responsible Parties") designated in litigation as potentially responsible parties with respect to the River. The EPA issued general notice letters to 125 of these parties. The Company, along with approximately 70 other Potentially Responsible Parties (collectively, the "Cooperating Parties Group" or "CPG") voluntarily entered into an Administrative Settlement Agreement and Order on Consent ("AOC") with the EPA in May 2007 to perform a Remedial Investigation/Feasibility Study (the "RI/FS") of the lower 17 miles of the River. In June 2012, most of the CPG voluntarily entered into a second AOC related to focused remediation actions at Mile 10.9 of the River. The actions under the Mile 10.9 AOC are complete (except for continued monitoring), the Remedial Investigation ("RI") portion of the RI/FS was submitted to the EPA on February 19, 2015, and the Feasibility Study ("FS") portion of the RI/FS was submitted to the EPA on April 30, 2015. The Company nonetheless remained in the CPG until October 24, 2017. The Company has accrued for its financial obligations under both AOCs, which have not been material to its financial position or results of operations in previous financial periods or on a cumulative basis. The FS presented and evaluated three options for remediating the lower 17 miles of the River, including the approach recommended by the EPA in its Focused Feasibility Study discussed below, as well as a fourth option of taking no action, and recommended an approach for a targeted remediation of the entire 17-mile stretch of the River. The estimated cost of the approach recommended by the CPG in the FS is approximately $483.0 million . The RI and FS are being reviewed by the EPA and other governmental agencies and stakeholders. Ultimately, the Company expects that the EPA will identify and negotiate with any or all of the potentially responsible parties regarding any remediation action that may be necessary, and issue a Record of Decision with a proposed approach to remediating the entire lower 17-mile stretch of the River. Separately, on April 11, 2014, the EPA issued a proposed plan for remediating the lower eight miles of the River, which is supported by a Focused Feasibility Study (the "FFS"). The FFS evaluated three remediation options, as well as a fourth option of taking no action. Following a public review and comment period and the EPA's review of comments received, the EPA issued a Record of Decision on March 4, 2016 that set forth a remediation plan for the lower eight miles of the River (the "RoD Remediation"). The RoD Remediation is estimated by the EPA to cost $1.38 billion . The Record of Decision did not identify any party or parties as being responsible for the design of the remediation or for the remediation itself. The EPA did note that it estimates the design of the necessary remediation activities will take three to four years, with the remediation to follow, which is estimated to take an additional six years to complete. On March 31, 2016, the EPA issued a letter to approximately 100 companies (including the Company) (collectively, the "notified companies") notifying them of potential liability for the RoD Remediation and of the EPA's planned approach to addressing the cost of the RoD Remediation, which included the possibility of a de-minimis cash-out settlement (the "settlement option") for certain parties. In April of 2016, the Company notified the EPA of its interest in pursuing the settlement option, and accordingly recorded an immaterial liability representing its best estimate of its minimum liability for the RoD Remediation, which reflects the possibility of a de-minimis settlement. On March 30, 2017, the EPA issued offers related to the settlement option to 20 parties; while the Company was not one of the parties receiving such an offer, the EPA has indicated that the settlement option may be made available to additional parties beyond those notified on March 30, 2017. Although the EPA must determine which additional parties are eligible for the settlement option, the Company does not expect any settlement amount that it might agree with the EPA to be material to its financial position, results of operations or cash flows. In the absence of a viable settlement option with the EPA, the Company is unable to determine its participation in the overall RoD Remediation, if any, relative to the other potentially responsible parties, or the allocation of the estimated cost thereof among the potentially responsible parties, until such time as the EPA reaches an agreement with any potentially responsible party or parties to fund the RoD Remediation (or pursues legal or administrative action to require any potentially responsible party or parties to perform, or pay for, the RoD Remediation). With respect to the RI/FS (which is distinct from the RoD Remediation), until a Record of Decision is issued with respect to the RI/FS, neither the ultimate remedial approach for the remaining upper nine miles of the relevant 17-mile stretch of the River and its cost, nor the Company's participation, if any, relative to the other potentially responsible parties in this approach and cost, can be determined. In October 2016, the EPA announced that it entered into a legal agreement with Occidental Chemical Corporation ("OCC"), pursuant to which OCC agreed to spend $165.0 million to perform the engineering and design work required in advance of the clean-up contemplated by the RoD Remediation (the "RoD Design Phase"). OCC has waived any rights to collect contribution from the Company (the "Waiver") for certain costs, including those associated with such engineering and design work, incurred by OCC through July 14, 2016. However, on June 29, 2018, OCC filed a lawsuit in the United States District Court for the District of New Jersey against Tiffany and Company and 119 other companies (the "defendant companies") seeking to have the defendant companies reimburse OCC for certain response costs incurred by OCC in connection with its and its predecessors' remediation work relating to the River, other than those costs subject to the Waiver. OCC is also seeking a declaratory judgment to hold the defendant companies liable for their alleged shares of future response costs, including costs related to the RoD Remediation. The suit does not quantify damages sought, and the Company is unable to determine at this time whether, or to what extent, the OCC lawsuit will impact the cost allocation described in the immediately preceding paragraph or will otherwise result in any liabilities for the Company. Given the uncertainties described above, the Company's liability, if any, beyond that already recorded for (1) its obligations under the 2007 AOC and the Mile 10.9 AOC, and (2) its estimate related to a de-minimis cash-out settlement for the RoD Remediation, cannot be determined at this time. However, the Company does not expect that its ultimate liability related to the relevant 17-mile stretch of the River will be material to its financial position, in light of the number of companies that have previously been identified as Potentially Responsible Parties (i.e., the more than 300 parties that were initially designated in litigation as potentially responsible parties), which includes, but goes well beyond those approximately 70 CPG member companies that participated in the 2007 AOC and the Mile 10.9 AOC, and the Company's relative participation in the costs related to the 2007 AOC and Mile 10.9 AOC. It is nonetheless possible that any resulting liability when the uncertainties discussed above are resolved could be material to the Company's results of operations or cash flows in the period in which such uncertainties are resolved. Other During 2018, the Company received an offer of AUD $48.0 million as compensation for the previous acquisition of the premises containing one of its leased retail stores and an administrative office in Sydney, Australia under compulsory acquisition laws in Australia. The Company did not accept the offer of compensation and has filed an appeal of the compensation amount with the Land and Environment Court in Australia. In accordance with local law, the Company received an advance payment of 90% ( $31.1 million , based on foreign currency exchange rates on the date of receipt) of the offered compensation during the fourth quarter of 2018. The appeal process is inherently uncertain and the Land and Environment Court will make an independent assessment of the amount of compensation in this matter, which may require the Company to repay all or a portion of the advance payment. Therefore, the Company cannot currently determine an amount, or any minimum amount, it ultimately expects to realize in connection with this matter. Accordingly, the Company did not recognize any gain in the accompanying consolidated statement of earnings for the year ended January 31, 2019. Instead, the Company recognized the advance payment within Cash and cash equivalents and as a liability within Accounts payable and accrued liabilities as of January 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Accumulated Other Comprehensive Loss (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Accumulated other comprehensive loss, net of tax: Foreign currency translation adjustments $ (132.2 ) $ (108.2 ) $ (73.0 ) Deferred hedging loss (20.5 ) (24.5 ) (30.2 ) Net unrealized loss on benefit plans (91.3 ) (72.1 ) (62.9 ) $ (244.0 ) $ (204.8 ) $ (166.1 ) Additions to and reclassifications out of accumulated other comprehensive earnings (loss) were as follows: Three Months Ended April 30, ( in millions ) 2019 2018 Foreign currency translation adjustments $ (21.8 ) $ (25.4 ) Income tax (expense) benefit (2.4 ) 0.4 Foreign currency translation adjustments, net of tax (24.2 ) (25.0 ) Unrealized gain (loss) on hedging instruments 17.7 (7.2 ) Reclassification adjustment for gain included in net earnings a (7.6 ) (2.3 ) Income tax (expense) benefit (1.3 ) 2.2 Unrealized gain (loss) on hedging instruments, net of tax 8.8 (7.3 ) Amortization of net loss included in net earnings b 2.8 3.3 Amortization of prior service credit included in net earnings b (0.2 ) (0.2 ) Income tax expense (0.4 ) (0.7 ) Net unrealized gain on benefit plans, net of tax 2.2 2.4 Total other comprehensive loss, net of tax $ (13.2 ) $ (29.9 ) a These gains are reclassified into Cost of sales, Interest expense and financing costs and Other (income) expense, net (see "Note 8. Hedging Instruments" for additional details). b These losses (gains) are included in the computation of net periodic benefit cost (see "Note 13. Employee Benefit Plans" for additional details) and are reclassified into Other (income) expense, net. Share Repurchase Program. In May 2018, the Registrant's Board of Directors approved a new share repurchase program (the "2018 Program"). The 2018 Program, which became effective June 1, 2018 and expires on January 31, 2022, authorizes the Company to repurchase up to $1.0 billion of its Common Stock through open market transactions, including through Rule 10b5-1 plans and one or more accelerated share repurchase or other structured repurchase transactions, and/or privately negotiated transactions. Purchases under this program are discretionary and will be made from time to time based on market conditions and the Company's liquidity needs. The Company may fund repurchases under the 2018 Program from existing cash at such time or from proceeds of any existing borrowing facilities at such time and/or the issuance of new debt. The 2018 Program replaced the Company's previous share repurchase program approved in January 2016 (the "2016 Program"), under which the Company was authorized to repurchase up to $500.0 million of its Common Stock. At the time of termination, $154.9 million remained available for repurchase under the 2016 Program. As of April 30, 2019 , $609.6 million remained available under the 2018 Program. The Company's share repurchase activity was as follows: Three Months Ended April 30, (in millions, except per share amounts) 2019 2018 Cost of repurchases $ 25.4 $ 40.5 Shares repurchased and retired 0.3 0.4 Average cost per share $ 93.77 $ 99.48 Cash Dividends . The Company's Board of Directors declared quarterly dividends of $0.55 and $0.50 per share of Common Stock in the three months ended April 30, 2019 and 2018 , respectively. Cumulative effect adjustment from adoption of new accounting standards . The amounts presented within this line item on the Condensed Consolidated Statement of Stockholders' Equity represent the effects of the Company's adoption, on a modified retrospective basis, of ASU 2016-02 – Leases and ASU 2018-02 – Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (each as discussed in "Note 2. New Accounting Standards") for the three months ended April 30, 2019, and ASU 2014-09 – Revenue from Contracts with Customers and ASU 2016-01 – Recognition and Measurement of Financial Assets and Financial Liabilities for the three months ended April 30, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Apr. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company maintains several pension and retirement plans and provides certain health-care and life insurance benefits. Net periodic pension and other postretirement benefit expense included the following components: Three Months Ended April 30, Pension Benefits Other (in millions) 2019 2018 2019 2018 Net Periodic Benefit Cost: Service cost $ 4.2 $ 4.5 $ 0.7 $ 0.7 Interest cost 8.1 7.6 0.8 0.8 Expected return on plan assets (8.7 ) (8.3 ) — — Amortization of prior service credit — — (0.2 ) (0.2 ) Amortization of net loss 2.6 3.3 0.2 — Net expense $ 6.2 $ 7.1 $ 1.5 $ 1.3 The components of net periodic benefit cost other than the service cost component are included in Other (income) expense, net on the Condensed Consolidated Statement of Earnings. The Company maintains a noncontributory defined benefit pension plan qualified in accordance with the Internal Revenue Service Code ("Qualified Plan") covering substantially all U.S. employees hired before January 1, 2006. The Company funds the Qualified Plan's trust in accordance with regulatory limits to provide for current service and for the unfunded benefit obligation over a reasonable period and for current service benefit accruals. To the extent that these requirements are fully covered by assets in the Qualified Plan, the Company may elect not to make any contribution in a particular year. No cash contribution was required in the fiscal year ending January 31, 2019 and none is required in the fiscal year ending January 31, 2020 ("fiscal 2019") to meet the minimum funding requirements of the Employee Retirement Income Security Act. However, the Company periodically evaluates whether to make discretionary cash contributions to the Qualified Plan and made a voluntary cash contribution of $30.0 million in the three months ended April 30, 2019 . The Company does not currently expect to make any additional discretionary contributions in fiscal 2019. This expectation is subject to change based on management's assessment of a variety of factors, including, but not limited to, asset performance, interest rates and changes in actuarial assumptions. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company's reportable segments are as follows: • Americas includes sales in Company-operated TIFFANY & CO. stores in the United States, Canada and Latin America, as well as sales of TIFFANY & CO. products in certain markets through Internet, catalog, business-to-business and wholesale operations; • Asia-Pacific includes sales in Company-operated TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations; • Japan includes sales in Company-operated TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products through Internet, business-to-business and wholesale operations; • Europe includes sales in Company-operated TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations; and • Other consists of all non-reportable segments. Other includes the Emerging Markets region, which includes sales in Company-operated TIFFANY & CO. stores and wholesale operations in the Middle East. In addition, Other includes wholesale sales of diamonds as well as earnings received from third-party licensing agreements. Certain information relating to the Company's segments is set forth below: Three Months Ended April 30, (in millions) 2019 2018 Net sales: Americas $ 406.3 $ 425.3 Asia-Pacific 324.1 328.6 Japan 144.7 150.6 Europe 102.5 107.0 Total reportable segments 977.6 1,011.5 Other 25.5 21.7 $ 1,003.1 $ 1,033.2 Earnings from operations*: Americas $ 56.8 $ 74.9 Asia-Pacific 86.0 100.1 Japan 53.4 58.3 Europe 12.2 14.2 Total reportable segments 208.4 247.5 Other 1.2 2.3 $ 209.6 $ 249.8 * Represents earnings from operations before (i) unallocated corporate expenses, (ii) Interest expense and financing costs and (iii) Other (income) expense, net. The following table sets forth a reconciliation of the segments' earnings from operations to the Company's consolidated Earnings from operations before income taxes: Three Months Ended April 30, (in millions) 2019 2018 Earnings from operations for segments $ 209.6 $ 249.8 Unallocated corporate expenses (48.7 ) (45.5 ) Interest expense and financing costs (10.4 ) (9.9 ) Other income (expense), net 1.0 (3.9 ) Earnings from operations before income taxes $ 151.5 $ 190.5 Unallocated corporate expenses include certain costs related to administrative support functions which the Company does not allocate to its segments. Such unallocated costs include those for centralized information technology, finance, legal and human resources departments. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On June 4, 2019 , the Company's Board of Directors approved a 5% increase in the quarterly dividend rate on its Common Stock, increasing such quarterly dividend from $0.55 per share of Common Stock to a new rate of $0.58 per share of Common Stock. This increased quarterly dividend will be paid on July 10, 2019 to shareholders of record on June 20, 2019 . |
Hedging Instruments (Policies)
Hedging Instruments (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Company uses derivative financial instruments, including interest rate swaps, cross-currency swaps, forward contracts and net-zero-cost collar arrangements (combination of call and put option contracts) to mitigate a portion of its exposures to changes in interest rates, foreign currency exchange rates and precious metal prices. Derivative Instruments Designated as Hedging Instruments. If a derivative instrument meets certain hedge accounting criteria, it is recorded on the Condensed Consolidated Balance Sheet at its fair value, as either an asset or a liability, with an offset to current or other comprehensive earnings, depending on whether the hedge is designated as one of the following on the date it is entered into: • Fair Value Hedge – A hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment. For fair value hedge transactions, the changes in the fair value of the derivative and changes in the fair value of the item being hedged are recorded in current earnings. • Cash Flow Hedge – A hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the changes in fair value of derivatives is reported as other comprehensive income ("OCI") and is recognized in current earnings in the period or periods during which the hedged transaction affects current earnings. The Company formally documents the nature of and relationships between the hedging instruments and hedged items for a derivative to qualify as a hedge at inception and throughout the hedged period. The Company also documents its risk management objectives, strategies for undertaking the various hedge transactions and method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be identified, and it must be probable that each forecasted transaction will occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss on the derivative financial instrument would be recognized in current earnings. Derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedge instrument and the item being hedged, both at inception and throughout the hedged period. Derivative Instruments Not Designated as Hedging Instruments. Derivative instruments which do not meet the criteria to be designated as a hedge are recorded on the Condensed Consolidated Balance Sheet at their fair values, as either assets or liabilities, with an offset to current earnings. The gains or losses on undesignated foreign exchange forward contracts substantially offset foreign exchange losses or gains on the underlying liabilities or transactions being hedged. The Company does not use derivative financial instruments for trading or speculative purposes. |
Concentration of Credit Risk | Concentration of Credit Risk A number of major international financial institutions are counterparties to the Company's derivative financial instruments. The Company enters into derivative financial instrument agreements only with counterparties meeting certain credit standards (an investment grade credit rating at the time of the agreement) and limits the amount of agreements or contracts it enters into with any one party. The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Level 1 – Quoted prices in active markets for identical assets or liabilities, which are considered to be most reliable. Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 – Unobservable inputs reflecting the reporting entity's own assumptions, which require the most judgment. |
Fair Value of Financial Instruments | The Company's foreign exchange forward contracts, as well as its put option contracts and cross-currency swaps, are primarily valued using the appropriate foreign exchange spot rates. The Company's precious metal forward contracts and collars are primarily valued using the relevant precious metal spot rate. |
Receivables and Revenue Recog_2
Receivables and Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company's net sales by major source: Three Months Ended April 30, (in millions) 2019 2018 Net sales*: Jewelry collections $ 532.3 $ 527.1 Engagement jewelry 280.4 296.7 Designer jewelry 110.9 128.4 All other 79.5 81.0 $ 1,003.1 $ 1,033.2 *Certain reclassifications within the jewelry categories have been made to the prior year amounts to conform to the current year category presentation. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Finished goods $ 1,492.2 $ 1,484.3 $ 1,309.9 Raw materials 843.8 781.8 871.7 Work-in-process 117.8 161.9 136.0 Inventories, net $ 2,453.8 $ 2,428.0 $ 2,317.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted EPS computations: Three Months Ended April 30, (in millions) 2019 2018 Net earnings for basic and diluted EPS $ 125.2 $ 142.3 Weighted-average shares for basic EPS 121.4 124.4 Incremental shares based upon the assumed exercise of stock options and unvested restricted stock units 0.5 0.6 Weighted-average shares for diluted EPS 121.9 125.0 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Debt | (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Short-term borrowings: Credit Facilities $ 30.1 $ 13.5 $ 26.1 Other credit facilities 112.0 99.9 70.6 $ 142.1 $ 113.4 $ 96.7 |
Long-term Debt | Long-term debt: Unsecured Senior Notes: 2012 4.40% Series B Senior Notes, due July 2042 a $ 250.0 $ 250.0 $ 250.0 2014 3.80% Senior Notes, due October 2024 b, c 250.0 250.0 250.0 2014 4.90% Senior Notes, due October 2044 b, c 300.0 300.0 300.0 2016 0.78% Senior Notes, due August 2026 b, d 89.5 91.8 91.7 889.5 891.8 891.7 Less: unamortized discounts and debt issuance costs (8.3 ) (8.4 ) (8.8 ) $ 881.2 $ 883.4 $ 882.9 a The agreements governing these Senior Notes require repayments of $50.0 million in aggregate every five years beginning in July 2022. b These agreements require lump sum repayments upon maturity. c These Senior Notes were issued at a discount, which will be amortized until the debt maturity. d These Senior Notes were issued at par, ¥10.0 billion . |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of April 30, 2019 , the notional amounts of cross-currency swaps accounted for as cash flow hedges and the respective maturity dates were as follows: Cross-Currency Swap Notional Amount Effective Date Maturity Date (in billions) (in millions) July 2016 October 1, 2024 ¥ 10.6 $ 100.0 March 2017 April 1, 2027 11.0 96.1 May 2017 April 1, 2027 5.6 50.0 As of April 30, 2019 , the notional amounts of foreign exchange forward contracts were as follows: (in millions) Notional Amount USD Equivalent Derivatives designated as hedging instruments: Japanese yen ¥ 18,653.1 172.6 British pound £ 11.5 15.1 Derivatives not designated as hedging instruments: U.S. dollar $ 57.7 57.7 Euro € 6.6 7.4 Australian dollar AU$ 30.4 21.7 British pound £ 19.4 25.5 Czech koruna CZK 133.5 5.9 Japanese yen ¥ 888.2 8.0 Korean won ₩ 45,292.2 40.4 Hong Kong dollar HKD 63.7 8.1 New Zealand dollar NZ$ 10.7 7.2 Singapore dollar S$ 19.8 14.6 Swiss franc CHF 5.5 5.5 Danish kroner DKK 52.0 7.9 |
Information on Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Financial Statements | Information on the location and amounts of derivative gains and losses in the condensed consolidated financial statements is as follows: Three Months Ended April 30, 2019 (in millions) Cost of sales Interest expense and financing costs Other (income) expense, net Other comprehensive loss, net of tax Reported amounts of financial statement line items in which effects of cash flow hedges are recorded $ 383.9 $ 10.4 $ (1.0 ) $ (13.2 ) Derivatives in Cash Flow Hedging Foreign exchange forward contracts Pre-tax gain recognized in OCI — — — 5.7 Pre-tax loss reclassified from accumulated OCI into earnings (1.1 ) — — 1.1 Precious metal collars Pre-tax loss reclassified from accumulated OCI into earnings (0.1 ) — — 0.1 Precious metal forward contracts Pre-tax loss recognized in OCI — — — (1.4 ) Pre-tax gain reclassified from accumulated OCI into earnings 1.1 — — (1.1 ) Cross-currency swaps Pre-tax gain recognized in OCI — — — 13.4 Pre-tax loss reclassified from accumulated OCI into earnings — — (7.8 ) 7.8 Forward-starting interest rate swaps Pre-tax gain reclassified from accumulated OCI into earnings — 0.3 — (0.3 ) Three months ended April 30, 2018 (in millions) Cost of sales Interest expense and financing costs Other (income) expense, net Other comprehensive loss, net of tax Reported amounts of financial statement line items in which effects of cash flow hedges are recorded $ 382.3 $ 9.9 $ 3.9 $ (29.9 ) Derivatives in Cash Flow Hedging Foreign exchange forward contracts Pre-tax gain recognized in OCI — — — 1.8 Pre-tax loss reclassified from accumulated OCI into earnings (1.6 ) — — 1.6 Precious metal collars Pre-tax loss reclassified from accumulated OCI into earnings (0.1 ) — — 0.1 Precious metal forward contracts Pre-tax loss recognized in OCI — — — (5.6 ) Pre-tax loss reclassified from accumulated OCI into earnings (0.4 ) — — 0.4 Cross-currency swaps Pre-tax loss recognized in OCI — — — (3.4 ) Pre-tax loss reclassified from accumulated OCI into earnings — — (0.6 ) 0.6 Forward-starting interest rate swaps Pre-tax gain reclassified from accumulated OCI into earnings — 0.4 — (0.4 ) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value at April 30, 2019 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 53.2 $ — $ — $ 53.2 Marketable securities b 37.4 — — 37.4 Derivatives designated as hedging instruments: Precious metal forward contracts c — 3.3 — 3.3 Foreign exchange forward contracts c — 3.4 — 3.4 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 2.1 — 2.1 Total financial assets $ 90.6 $ 8.8 $ — $ 99.4 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 0.8 $ — $ 0.8 Foreign exchange forward contracts d — 0.1 — 0.1 Cross-currency swaps d — 8.1 — 8.1 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 0.5 — 0.5 Total financial liabilities $ — $ 9.5 $ — $ 9.5 Financial assets and liabilities carried at fair value at January 31, 2019 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 62.7 $ — $ — $ 62.7 Marketable securities b 36.3 — — 36.3 Derivatives designated as hedging instruments: Precious metal forward contracts c — 5.2 — 5.2 Foreign exchange forward contracts c — 1.8 — 1.8 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 0.9 — 0.9 Total financial assets $ 99.0 $ 7.9 $ — $ 106.9 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 2.7 $ — $ 2.7 Foreign exchange forward contracts d — 2.1 — 2.1 Cross-currency swaps d — 19.9 — 19.9 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 2.7 — 2.7 Total financial liabilities $ — $ 27.4 $ — $ 27.4 Financial assets and liabilities carried at fair value at April 30, 2018 are classified in the table below in one of the three categories described above: Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial assets Time deposits a $ 212.7 $ — $ — $ 212.7 Marketable securities b 37.1 — — 37.1 Derivatives designated as hedging instruments: Precious metal forward contracts c — 1.8 — 1.8 Foreign exchange forward contracts c — 0.9 — 0.9 Derivatives not designated as hedging instruments: Foreign exchange forward contracts c — 1.4 — 1.4 Total financial assets $ 249.8 $ 4.1 $ — $ 253.9 Estimated Fair Value Total Fair Value (in millions) Level 1 Level 2 Level 3 Financial liabilities Derivatives designated as hedging instruments: Precious metal forward contracts d $ — $ 5.0 $ — $ 5.0 Foreign exchange forward contracts d — 2.4 — 2.4 Cross-currency swaps d — 23.6 — 23.6 Derivatives not designated as hedging instruments: Foreign exchange forward contracts d — 0.8 — 0.8 Total financial liabilities $ — $ 31.8 $ — $ 31.8 a Included within Short-term investments. b Included within Other assets, net. c Included within Prepaid expenses and other current assets or Other assets, net based on the maturity of the contract. d Included within Accounts payable and accrued liabilities or Other long-term liabilities based on the maturity of the contract. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Lease Cost Information | The following table provides supplemental cash flow information related to the Company's operating leases: Three Months Ended April 30, 2019 Cash flows from operating activities attributable to operating leases $ 70.9 Right-of-use assets obtained in exchange for operating lease liabilities 52.9 Amounts recognized in the Condensed Consolidated Statement of Earnings were as follows: (in millions) Three Months Ended April 30, 2019 Fixed operating lease expense $ 77.3 Variable operating lease expense 34.6 Sublease income (1.2 ) Net lease expense $ 110.7 |
Operating Lease Maturity Schedule | The following table reconciles the undiscounted cash flows expected to be paid in each of the next five fiscal years and thereafter to the operating lease liability recorded on the Condensed Consolidated Balance Sheet for operating leases existing as of April 30, 2019 : Years ending January 31, Minimum Lease Payments as of April 30, 2019 (in millions) 2020 * $ 202.9 2021 244.2 2022 214.4 2023 175.5 2024 142.6 Thereafter 403.3 Total minimum lease payments 1,382.9 Less: amount of total minimum lease payments representing interest (204.5 ) Present value of future total minimum lease payments 1,178.4 Less: current portion of lease liabilities (226.3 ) Long-term lease liabilities $ 952.1 * This amount represents minimum lease payments for the nine month period from May 1, 2019 to January 31, 2020. |
Maturity Schedule as of Prior Year End | As previously disclosed in "Note J. Commitments and Contingencies" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended January 31, 2019, under previous lease accounting, future minimum lease payments for operating leases having an initial or remaining non-cancelable lease term in excess of one year were as follows: Years ending January 31, Minimum Lease Payments as of January 31, 2019 ( in millions ) 2020 $ 292.8 2021 239.2 2022 212.8 2023 177.4 2024 146.8 Thereafter 438.0 Total minimum lease payments $ 1,507.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss (in millions) April 30, 2019 January 31, 2019 April 30, 2018 Accumulated other comprehensive loss, net of tax: Foreign currency translation adjustments $ (132.2 ) $ (108.2 ) $ (73.0 ) Deferred hedging loss (20.5 ) (24.5 ) (30.2 ) Net unrealized loss on benefit plans (91.3 ) (72.1 ) (62.9 ) $ (244.0 ) $ (204.8 ) $ (166.1 ) |
Additions to and Reclassifications out of Accumulated Other Comprehensive Earnings | Additions to and reclassifications out of accumulated other comprehensive earnings (loss) were as follows: Three Months Ended April 30, ( in millions ) 2019 2018 Foreign currency translation adjustments $ (21.8 ) $ (25.4 ) Income tax (expense) benefit (2.4 ) 0.4 Foreign currency translation adjustments, net of tax (24.2 ) (25.0 ) Unrealized gain (loss) on hedging instruments 17.7 (7.2 ) Reclassification adjustment for gain included in net earnings a (7.6 ) (2.3 ) Income tax (expense) benefit (1.3 ) 2.2 Unrealized gain (loss) on hedging instruments, net of tax 8.8 (7.3 ) Amortization of net loss included in net earnings b 2.8 3.3 Amortization of prior service credit included in net earnings b (0.2 ) (0.2 ) Income tax expense (0.4 ) (0.7 ) Net unrealized gain on benefit plans, net of tax 2.2 2.4 Total other comprehensive loss, net of tax $ (13.2 ) $ (29.9 ) a These gains are reclassified into Cost of sales, Interest expense and financing costs and Other (income) expense, net (see "Note 8. Hedging Instruments" for additional details). b These losses (gains) are included in the computation of net periodic benefit cost (see "Note 13. Employee Benefit Plans" for additional details) and are reclassified into Other (income) expense, net. |
Schedule Of Share Repurchases Table | The Company's share repurchase activity was as follows: Three Months Ended April 30, (in millions, except per share amounts) 2019 2018 Cost of repurchases $ 25.4 $ 40.5 Shares repurchased and retired 0.3 0.4 Average cost per share $ 93.77 $ 99.48 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Retirement Benefits [Abstract] | |
Periodic Pension and Other Postretirement Benefit Expense | Net periodic pension and other postretirement benefit expense included the following components: Three Months Ended April 30, Pension Benefits Other (in millions) 2019 2018 2019 2018 Net Periodic Benefit Cost: Service cost $ 4.2 $ 4.5 $ 0.7 $ 0.7 Interest cost 8.1 7.6 0.8 0.8 Expected return on plan assets (8.7 ) (8.3 ) — — Amortization of prior service credit — — (0.2 ) (0.2 ) Amortization of net loss 2.6 3.3 0.2 — Net expense $ 6.2 $ 7.1 $ 1.5 $ 1.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Company's Segments Information | Certain information relating to the Company's segments is set forth below: Three Months Ended April 30, (in millions) 2019 2018 Net sales: Americas $ 406.3 $ 425.3 Asia-Pacific 324.1 328.6 Japan 144.7 150.6 Europe 102.5 107.0 Total reportable segments 977.6 1,011.5 Other 25.5 21.7 $ 1,003.1 $ 1,033.2 Earnings from operations*: Americas $ 56.8 $ 74.9 Asia-Pacific 86.0 100.1 Japan 53.4 58.3 Europe 12.2 14.2 Total reportable segments 208.4 247.5 Other 1.2 2.3 $ 209.6 $ 249.8 * Represents earnings from operations before (i) unallocated corporate expenses, (ii) Interest expense and financing costs and (iii) Other (income) expense, net. |
Reconciliation of Segments' Earnings from Operations to Company's Consolidated Earnings from Operations Before Income Taxes | The following table sets forth a reconciliation of the segments' earnings from operations to the Company's consolidated Earnings from operations before income taxes: Three Months Ended April 30, (in millions) 2019 2018 Earnings from operations for segments $ 209.6 $ 249.8 Unallocated corporate expenses (48.7 ) (45.5 ) Interest expense and financing costs (10.4 ) (9.9 ) Other income (expense), net 1.0 (3.9 ) Earnings from operations before income taxes $ 151.5 $ 190.5 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Feb. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liability | $ 1,178.4 | ||||
Deferred gains on sale-leasebacks | $ 0 | $ 31.1 | $ 38 | ||
Cumulative effect adjustment from adoption of new accounting standards | $ 21.8 | $ 3.9 | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liability | 1,200 | ||||
Deferred gains on sale-leasebacks | 31.1 | ||||
Deferred tax assets (reclassified due to ASU) | (9.5) | ||||
Accumulated Other Comprehensive Loss | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment from adoption of new accounting standards | (26) | 1.8 | |||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment from adoption of new accounting standards | (26.2) | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment from adoption of new accounting standards | 47.8 | $ 2.1 | |||
Retained Earnings | Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment from adoption of new accounting standards | $ 26.2 |
Receivables and Revenue Recog_3
Receivables and Revenue Recognition - Receivables (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Consumer credit card financing receivables | $ 83.7 | $ 72.8 | |
Consumer credit card financing receivables, current (percentage) | 97.00% | 97.00% | |
Allowance for doubtful accounts receivable | $ 31.5 | $ 31.5 | $ 29.9 |
Receivables and Revenue Recog_4
Receivables and Revenue Recognition - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,003.1 | $ 1,033.2 |
Revenue related to merchandise credits and deferred revenue | 14 | |
Jewelry collections | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 532.3 | 527.1 |
Engagement jewelry | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 280.4 | 296.7 |
Designer jewelry | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 110.9 | 128.4 |
All other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 79.5 | $ 81 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 1,492.2 | $ 1,484.3 | $ 1,309.9 |
Raw materials | 843.8 | 781.8 | 871.7 |
Work-in-process | 117.8 | 161.9 | 136 |
Inventories, net | $ 2,453.8 | $ 2,428 | $ 2,317.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Oct. 31, 2017 | |
Discrete tax items [Line Items] | |||
Effective tax rate (percent) | 17.30% | 25.30% | |
Income tax expense (benefit) | $ 26.3 | $ 48.2 | |
Possible decrease in unrecognized tax benefits | 6 | ||
Change In Estimated 2018 Foreign Derived Intangible Income | |||
Discrete tax items [Line Items] | |||
Income tax expense (benefit) | $ (7.5) | ||
Effective income tax rate reconciliation, deduction (percent) | (5.00%) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net earnings for basic and diluted EPS | $ 125.2 | $ 142.3 |
Weighted-average shares for basic EPS (shares) | 121.4 | 124.4 |
Incremental shares based upon the assumed exercise of stock options and unvested restricted stock units (shares) | 0.5 | 0.6 |
Weighted-average shares for diluted EPS (shares) | 121.9 | 125 |
Antidilutive securities excluded from computation of earnings per share (shares) | 1.7 | 0.9 |
Debt - Schedule of Short-term B
Debt - Schedule of Short-term Borrowings (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 142.1 | $ 113.4 | $ 96.7 |
Credit Facilities | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 30.1 | 13.5 | 26.1 |
Other credit facilities | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 112 | $ 99.9 | $ 70.6 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) $ in Millions, ¥ in Billions | 3 Months Ended | |||||
Apr. 30, 2019USD ($) | Apr. 30, 2019JPY (¥) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Apr. 30, 2018USD ($) | ||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 889.5 | $ 891.8 | $ 891.7 | |||
Less: unamortized discounts and debt issuance costs | (8.3) | (8.4) | (8.8) | |||
Long-term debt | $ 881.2 | 883.4 | 882.9 | |||
Debt covenant compliance | in compliance | |||||
2012 4.40% Series B Notes, due July 2042 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated rate (percent) | 4.40% | 4.40% | ||||
Long-term debt | [1] | $ 250 | 250 | 250 | ||
Debt instrument periodic principal payment | $ 50 | |||||
2014 3.80% Senior Notes, due October 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated rate (percent) | 3.80% | 3.80% | ||||
Long-term debt | [2],[3] | $ 250 | 250 | 250 | ||
2014 4.90% Senior Notes, due October 2044 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated rate (percent) | 4.90% | 4.90% | ||||
Long-term debt | [2],[3] | $ 300 | 300 | 300 | ||
2016 0.78% Senior Notes, due August 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated rate (percent) | 0.78% | 0.78% | ||||
Long-term debt | [3],[4] | $ 89.5 | $ 91.8 | $ 91.7 | ||
Debt instrument face amount | ¥ | ¥ 10 | |||||
[1] | The agreements governing these Senior Notes require repayments of $50.0 million in aggregate every five years beginning in July 2022. | |||||
[2] | These Senior Notes were issued at a discount, which will be amortized until the debt maturity. | |||||
[3] | These agreements require lump sum repayments upon maturity. | |||||
[4] | These Senior Notes were issued at par, ¥10.0 billion. |
Hedging Instruments - Additiona
Hedging Instruments - Additional Information (Details) oz in Thousands, $ in Millions | 3 Months Ended | |
Apr. 30, 2019USD ($)oz | Jul. 31, 2012USD ($) | |
2012 4.40% Series B Notes, due July 2012 | ||
Derivative [Line Items] | ||
Debt instrument face amount | $ | $ 250 | |
Interest Rate Swap | 2012 Debt Issuance | ||
Derivative [Line Items] | ||
Unrealized loss on interest rate swaps | $ | $ 17 | |
Interest Rate Swap | 2014 Debt Issuance | ||
Derivative [Line Items] | ||
Unrealized loss on interest rate swaps | $ | $ 3.5 | |
Foreign Exchange Forward | Maximum | ||
Derivative [Line Items] | ||
Term of contract (months) | 12 months | |
Precious Metal Forward Contracts | Maximum | ||
Derivative [Line Items] | ||
Term of contract (months) | 18 months | |
Platinum | ||
Derivative [Line Items] | ||
Precious metal derivatives, ounces outstanding (ounces) | oz | 30 | |
Silver | ||
Derivative [Line Items] | ||
Precious metal derivatives, ounces outstanding (ounces) | oz | 497 | |
Gold | ||
Derivative [Line Items] | ||
Precious metal derivatives, ounces outstanding (ounces) | oz | 70 |
Hedging Instruments - Schedule
Hedging Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - Apr. 30, 2019 € in Millions, ₩ in Millions, ¥ in Millions, £ in Millions, kr in Millions, SFr in Millions, Kč in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | JPY (¥) | GBP (£) | AUD ($) | SGD ($) | EUR (€) | HKD ($) | DKK (kr) | NZD ($) | CZK (Kč) | KRW (₩) | USD ($) | CHF (SFr) |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Japan, Yen | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | ¥ 888.2 | $ 8 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | United Kingdom, Pounds | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | £ 19.4 | 25.5 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | United States of America, Dollars | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | 57.7 | |||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Euro Member Countries, Euro | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | € 6.6 | 7.4 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Australia, Dollars | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 30.4 | 21.7 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Czech Republic, Koruny | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | Kč 133.5 | 5.9 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Korea (South), Won | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | ₩ 45,292.2 | 40.4 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Hong Kong, Dollars | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 63.7 | 8.1 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | New Zealand, Dollars | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 10.7 | 7.2 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Singapore, Dollars | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 19.8 | 14.6 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Switzerland, Francs | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | 5.5 | SFr 5.5 | ||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Denmark, Kroner | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | kr 52 | 7.9 | ||||||||||
Foreign Exchange Forward | Cash Flow Hedging | Japan, Yen | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | 18,653.1 | 172.6 | ||||||||||
Foreign Exchange Forward | Cash Flow Hedging | United Kingdom, Pounds | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | £ 11.5 | 15.1 | ||||||||||
July 2016 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | 10,600 | 100 | ||||||||||
March 2017 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | 11,000 | 96.1 | ||||||||||
May 2017 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | ¥ 5,600 | $ 50 |
Hedging Instruments - Informati
Hedging Instruments - Information on Location and Amounts of Derivative Gains and Losses in Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of sales | $ 383.9 | $ 382.3 |
Interest expense and financing costs | 10.4 | 9.9 |
Other (income) expense, net | (1) | 3.9 |
Other comprehensive loss, net of tax | (13.2) | (29.9) |
Unrealized gain (loss) on hedging instruments | 17.7 | (7.2) |
Cash Flow Hedging | Foreign Exchange Forward | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | (1.1) | (1.6) |
Cash Flow Hedging | Foreign Exchange Forward | Interest expense and financing costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Foreign Exchange Forward | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Foreign Exchange Forward | Other comprehensive loss, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 5.7 | 1.8 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 1.1 | 1.6 |
Cash Flow Hedging | Precious Metal Collars | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | (0.1) | (0.1) |
Cash Flow Hedging | Precious Metal Collars | Interest expense and financing costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Precious Metal Collars | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Precious Metal Collars | Other comprehensive loss, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0.1 | 0.1 |
Cash Flow Hedging | Precious Metal Forward Contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 1.1 | (0.4) |
Cash Flow Hedging | Precious Metal Forward Contracts | Interest expense and financing costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Precious Metal Forward Contracts | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Precious Metal Forward Contracts | Other comprehensive loss, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | (1.4) | (5.6) |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | (1.1) | 0.4 |
Cash Flow Hedging | Currency Swap | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Currency Swap | Interest expense and financing costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Currency Swap | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 0 | 0 |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | (7.8) | (0.6) |
Cash Flow Hedging | Currency Swap | Other comprehensive loss, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on hedging instruments | 13.4 | (3.4) |
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 7.8 | 0.6 |
Cash Flow Hedging | Interest Rate Swap | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Interest Rate Swap | Interest expense and financing costs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0.3 | 0.4 |
Cash Flow Hedging | Interest Rate Swap | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | 0 | 0 |
Cash Flow Hedging | Interest Rate Swap | Other comprehensive loss, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from accumulated OCI into earnings | $ (0.3) | $ (0.4) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets, fair value | $ 99.4 | $ 106.9 | $ 253.9 | |
Total financial liabilities, fair value | 9.5 | 27.4 | 31.8 | |
Short-term Investments | Bank Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [1] | 53.2 | 62.7 | 212.7 |
Other assets, net | Marketable securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [2] | 37.4 | 36.3 | 37.1 |
Prepaid expenses and other current assets | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 3.3 | 5.2 | 1.8 |
Prepaid expenses and other current assets | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 3.4 | 1.8 | 0.9 |
Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 2.1 | 0.9 | 1.4 |
Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.8 | 2.7 | 5 |
Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.1 | 2.1 | 2.4 |
Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Currency Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 8.1 | 19.9 | 23.6 |
Accounts Payable and Accrued Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.5 | 2.7 | 0.8 |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets, fair value | 90.6 | 99 | 249.8 | |
Total financial liabilities, fair value | 0 | 0 | 0 | |
Level 1 | Short-term Investments | Bank Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [1] | 53.2 | 62.7 | 212.7 |
Level 1 | Other assets, net | Marketable securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [2] | 37.4 | 36.3 | 37.1 |
Level 1 | Prepaid expenses and other current assets | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 1 | Prepaid expenses and other current assets | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 1 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 1 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 1 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 1 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Currency Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 1 | Accounts Payable and Accrued Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets, fair value | 8.8 | 7.9 | 4.1 | |
Total financial liabilities, fair value | 9.5 | 27.4 | 31.8 | |
Level 2 | Short-term Investments | Bank Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [1] | 0 | 0 | 0 |
Level 2 | Other assets, net | Marketable securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [2] | 0 | 0 | 0 |
Level 2 | Prepaid expenses and other current assets | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 3.3 | 5.2 | 1.8 |
Level 2 | Prepaid expenses and other current assets | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 3.4 | 1.8 | 0.9 |
Level 2 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 2.1 | 0.9 | 1.4 |
Level 2 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.8 | 2.7 | 5 |
Level 2 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.1 | 2.1 | 2.4 |
Level 2 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Currency Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 8.1 | 19.9 | 23.6 |
Level 2 | Accounts Payable and Accrued Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0.5 | 2.7 | 0.8 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets, fair value | 0 | 0 | 0 | |
Total financial liabilities, fair value | 0 | 0 | 0 | |
Level 3 | Short-term Investments | Bank Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [1] | 0 | 0 | 0 |
Level 3 | Other assets, net | Marketable securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | [2] | 0 | 0 | 0 |
Level 3 | Prepaid expenses and other current assets | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 3 | Prepaid expenses and other current assets | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 3 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 0 | 0 | 0 |
Level 3 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Precious Metal Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 3 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 3 | Accounts Payable and Accrued Liabilities | Cash Flow Hedging | Currency Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | 0 | 0 | 0 |
Level 3 | Accounts Payable and Accrued Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | [4] | $ 0 | $ 0 | $ 0 |
[1] | Included within Short-term investments. | |||
[2] | Included within Other assets, net. | |||
[3] | Included within Prepaid expenses and other current assets or Other assets, net based on the maturity of the contract. | |||
[4] | Included within Accounts payable and accrued liabilities or Other long-term liabilities based on the maturity of the contract. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Billions | Apr. 30, 2019 | Apr. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
The total carrying value of short-term borrowings and long-term debt | $ 1 | $ 1 |
Total fair value of short-term borrowings and long-term debt | $ 1 | $ 1 |
Leases - Lease Cost in Statemen
Leases - Lease Cost in Statements of Earnings (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Leases [Abstract] | |
Fixed operating lease expense | $ 77.3 |
Variable operating lease expense | 34.6 |
Sublease income | (1.2) |
Net lease expense | $ 110.7 |
Leases (Details)
Leases (Details) $ in Millions | Apr. 30, 2019USD ($)agreement |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 7 years |
Weighted average discount rate (percent) | 4.20% |
Number of agreements not yet commenced | agreement | 11 |
Value of leases not yet commenced | $ | $ 109.2 |
Leases - Lease Impact on Balanc
Leases - Lease Impact on Balance Sheet (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash flows from operating activities attributable to operating leases | $ 70.9 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 52.9 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Millions | Apr. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 202.9 |
2021 | 244.2 |
2022 | 214.4 |
2023 | 175.5 |
2024 | 142.6 |
Thereafter | 403.3 |
Total minimum lease payments | 1,382.9 |
Less: amount of total minimum lease payments representing interest | (204.5) |
Present value of future total minimum lease payments | 1,178.4 |
Less: current portion of lease liabilities | (226.3) |
Long-term lease liabilities | $ 952.1 |
Leases - Lease Maturity as of P
Leases - Lease Maturity as of Prior Year End (Details) $ in Millions | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 292.8 |
2021 | 239.2 |
2022 | 212.8 |
2023 | 177.4 |
2024 | 146.8 |
Thereafter | 438 |
Total minimum lease payments | $ 1,507 |
Commitments and Contingencies -
Commitments and Contingencies - Gain Contingency (Details) - Positive Outcome of Litigation - USD ($) $ in Thousands | Feb. 07, 2019 | Aug. 24, 2017 | Aug. 14, 2017 | Oct. 05, 2016 | Sep. 29, 2016 |
Gain Contingencies [Line Items] | |||||
Gain contingency, unrecorded | $ 26,900 | $ 21,000 | $ 13,750 | ||
Trademark Infringement Award, Profits | |||||
Gain Contingencies [Line Items] | |||||
Gain contingency, unrecorded | $ 11,100 | $ 5,500 | |||
Trademark Infringement Award, Punitive Damages | |||||
Gain Contingencies [Line Items] | |||||
Gain contingency, unrecorded | $ 8,250 | $ 8,250 | |||
Trademark Infringement Award, Attorneys' Fees And Costs | |||||
Gain Contingencies [Line Items] | |||||
Gain contingency, unrecorded | $ 5,900 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Matter (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Oct. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated remediation costs, CPG preferred approach, low estimate | $ 483 | |
Identified remediation plan, EPA estimated cost | $ 1,380 | |
RoD design phase, settlement amount from third party | $ 165 |
Commitments and Contingencies_3
Commitments and Contingencies - Other (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Jan. 31, 2019USD ($) | Jan. 31, 2019AUD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Compulsory acquisition offer | $ 48 | |
Proceeds from advances, percentage of total compensation (percent) | 90.00% | |
Proceeds from advances | $ 31.1 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ 3,172 | $ 3,130.9 | $ 3,268.6 | $ 3,248.2 |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (132.2) | (108.2) | (73) | |
Deferred hedging loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (20.5) | (24.5) | (30.2) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (91.3) | (72.1) | (62.9) | |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ (244) | $ (204.8) | $ (166.1) | $ (138) |
Stockholders' Equity - Addition
Stockholders' Equity - Additions to and Reclassifications out of Accumulated Other Comprehensive (Loss) Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Equity [Abstract] | |||
Foreign currency translation adjustments | $ (21.8) | $ (25.4) | |
Income tax (expense) benefit | 2.4 | (0.4) | |
Foreign currency translation adjustments, net of tax | (24.2) | (25) | |
Unrealized gain (loss) on hedging instruments | 17.7 | (7.2) | |
Reclassification adjustment for gain included in net earnings | [1] | 7.6 | 2.3 |
Income tax (expense) benefit | 1.3 | (2.2) | |
Unrealized gain (loss) on hedging instruments, net of tax | 8.8 | (7.3) | |
Amortization of net loss included in net earnings | [2] | 2.8 | 3.3 |
Amortization of prior service credit included in net earnings | [2] | (0.2) | (0.2) |
Income tax expense | (0.4) | (0.7) | |
Net unrealized gain on benefit plans, net of tax | (2.2) | (2.4) | |
Total other comprehensive loss, net of tax | $ (13.2) | $ (29.9) | |
[1] | These gains are reclassified into Cost of sales, Interest expense and financing costs and Other (income) expense, net (see "Note 8. Hedging Instruments" for additional details). | ||
[2] | These losses (gains) are included in the computation of net periodic benefit cost (see "Note 13. Employee Benefit Plans" for additional details) and are reclassified into Other (income) expense, net. |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ in Millions | Apr. 30, 2019 | May 31, 2018 | Jan. 31, 2016 |
2018 Share Repurchase Program | |||
Share Repurchase [Line Items] | |||
Authorized stock repurchase amount | $ 1,000 | ||
Remaining authorized stock repurchase amount | $ 609.6 | ||
2016 Program | |||
Share Repurchase [Line Items] | |||
Authorized stock repurchase amount | $ 500 | ||
Remaining authorized stock repurchase amount | $ 154.9 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Equity [Abstract] | ||
Cost of repurchases | $ 25.4 | $ 40.5 |
Shares repurchased and retired (shares) | 0.3 | 0.4 |
Average cost per share (usd per share) | $ 93.77 | $ 99.48 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Equity [Abstract] | ||
Common stock, dividends (usd per share) | $ 0.55 | $ 0.50 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 4.2 | $ 4.5 |
Interest cost | 8.1 | 7.6 |
Expected return on plan assets | (8.7) | (8.3) |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net loss | 2.6 | 3.3 |
Net periodic benefit cost | 6.2 | 7.1 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.7 | 0.7 |
Interest cost | 0.8 | 0.8 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (0.2) | (0.2) |
Amortization of net loss | 0.2 | 0 |
Net periodic benefit cost | 1.5 | $ 1.3 |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Voluntary cash contribution | $ 30 |
Segment Information - Company's
Segment Information - Company's Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Net sales: | ||
Net sales | $ 1,003.1 | $ 1,033.2 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 209.6 | 249.8 |
Americas | ||
Net sales: | ||
Net sales | 406.3 | 425.3 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 56.8 | 74.9 |
Asia-Pacific | ||
Net sales: | ||
Net sales | 324.1 | 328.6 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 86 | 100.1 |
Japan | ||
Net sales: | ||
Net sales | 144.7 | 150.6 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 53.4 | 58.3 |
Europe | ||
Net sales: | ||
Net sales | 102.5 | 107 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 12.2 | 14.2 |
Total reportable segments | ||
Net sales: | ||
Net sales | 977.6 | 1,011.5 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | 208.4 | 247.5 |
Other | ||
Net sales: | ||
Net sales | 25.5 | 21.7 |
Earnings (losses) from operations: | ||
Earnings from operations for segments | $ 1.2 | $ 2.3 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segments' Earnings from Operations to Company's Consolidated Earnings from Operations Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting [Abstract] | ||
Earnings from operations for segments | $ 209.6 | $ 249.8 |
Unallocated corporate expenses | (48.7) | (45.5) |
Interest expense and financing costs | (10.4) | (9.9) |
Other income (expense), net | 1 | (3.9) |
Earnings from operations before income taxes | $ 151.5 | $ 190.5 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | 3 Months Ended | ||
Apr. 30, 2019 | Jun. 04, 2019 | Jun. 03, 2019 | |
Subsequent Event [Line Items] | |||
Dividend payable, date declared | Jun. 4, 2019 | ||
Dividend payable, date to be paid | Jul. 10, 2019 | ||
Dividend payable, date of record | Jun. 20, 2019 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividend payable increase (percent) | 5.00% | ||
Dividend payable (usd per share) | $ 0.58 | $ 0.55 |