FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jul. 31, 2016

Fair Value Measurements, Nonrecurring [Table Text Block]

The following table shows the fair value of the Company’s non-financial assets and liabilities that were required to be remeasured at fair value on a nonrecurring basis during the twenty-six weeks ended August 2, 2015, and the total impairments recorded as a result of the remeasurement process:

(In millions)

Fair Value Measurement Using

Fair Value
As Of
Impairment Date

Total

Impairments

Assets:

Level 1

Level 2

Level 3

Property, plant and equipment

N/A

—

1.6

Long-lived assets with a carrying amount of $1.6 million were written down to a fair value of zero during the twenty-six weeks ended August 2, 2015 in connection with the financial performance in one of the Company’s Calvin Klein retail stores in North America. Fair value was determined based on the estimated future operating results reflecting poor year-to-date performance and sales trends. The impairment charge was included in selling, general and administrative expenses in the Calvin Klein North America segment.

In connection with the Company’s acquisition in April 2016 of the 55% of the ownership interests in TH China that it did not already own, the 45% interest in TH China owned by the Company was remeasured to a fair value of $205.6 million, resulting in the recognition of a pre-tax noncash gain of $153.1 million in the twenty-six weeks ended July 31, 2016. The Company classifies this as a Level 3 measurement. Please see Note 3, “Acquisitions,” for a further discussion.

The Company guaranteed lease payments for substantially all G. H. Bass & Co. (“Bass”) retail stores included in the sale of substantially all of the assets of the Company’s Bass business in the fourth quarter of 2013 pursuant to the terms of noncancelable leases expiring on various dates through 2022. These guarantees include minimum rent payments and relate to leases that commenced prior to the sale of the Bass assets. In certain instances, the Company’s guarantee remains in effect when an option is exercised to extend the term of the lease. The estimated fair value of these guarantee obligations as of July 31, 2016, January 31, 2016 and August 2, 2015 was $1.6 million, $1.9 million and $2.6 million, respectively, which was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. The Company classifies these as Level 3 measurements. The fair value of such guarantee obligations was determined using the discounted cash flow method, based on the guaranteed lease payments, the estimated probability of lease extensions and estimates of the risk of default by the buyer of the Bass assets, and was discounted using rates of return that account for the relative risks of the estimated future cash flows.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis:



(In millions)	7/31/16							1/31/16							8/2/15
	Level 1	Level 2		Level 3		Total		Level 1	Level 2		Level 3		Total		Level 1	Level 2		Level 3		Total
Assets:
Foreign currency forward exchange contracts	N/A	$	8.6	N/A		$	8.6	N/A	$	44.2	N/A		$	44.2	N/A	$	64.8	N/A		$	64.8
Interest rate contracts	N/A	—		N/A		—		N/A	—		N/A		—		N/A	0.3		N/A		0.3
Foreign currency option contracts	N/A	1.0		N/A		1.0		N/A	N/A		N/A		N/A		N/A	N/A		N/A		N/A
Total Assets	N/A	$	9.6	N/A		$	9.6	N/A	$	44.2	N/A		$	44.2	N/A	$	65.1	N/A		$	65.1

Liabilities:
Foreign currency forward exchange contracts	N/A	$	13.2	N/A		$	13.2	N/A	$	1.8	N/A		$	1.8	N/A	$	3.6	N/A		$	3.6
Interest rate contracts	N/A	17.0		N/A		17.0		N/A	20.6		N/A		20.6		N/A	14.4		N/A		14.4
Contingent purchase price payments related to reacquisition of the perpetual rights to the Tommy Hilfiger trademarks in India	N/A	N/A		$	2.2	2.2		N/A	N/A		$	2.2	2.2		N/A	N/A		$	4.1	4.1
Total Liabilities	N/A	$	30.2	$	2.2	$	32.4	N/A	$	22.4	$	2.2	$	24.6	N/A	$	18.0	$	4.1	$	22.1

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table presents the change in the Level 3 contingent purchase price payment liability during the twenty-six weeks ended July 31, 2016 and August 2, 2015:



(In millions)	Twenty-Six Weeks Ended
	7/31/16		8/2/15
Beginning Balance	$	2.2	$	4.0
Payments	—		—
Adjustments included in earnings	0.0		0.1
Ending Balance	$	2.2	$	4.1

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block]

Additional information with respect to assumptions used to value the contingent purchase price payment liability as of July 31, 2016 is as follows:



Unobservable Inputs	Amount
Approximate compounded annual net sales growth rate	35.0	%
Approximate discount rate	15.0	%

A five percentage point increase or decrease in the discount rate or the compounded annual net sales growth rate would result in an immaterial change to the liability.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt as of July 31, 2016, January 31, 2016 and August 2, 2015 were as follows:



(In millions)	7/31/16				1/31/16				8/2/15
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value

Cash and cash equivalents	$	741.7	$	741.7	$	556.4	$	556.4	$	466.7	$	466.7
Short-term borrowings	19.4		19.4		25.9		25.9		8.1		8.1
Long-term debt (including portion classified as current)	3,358.2		3,434.6		3,168.3		3,190.5		3,348.5		3,408.6

The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement.