GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Feb. 04, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill, by segment (please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments), were as follows:



(In millions)	Calvin Klein North America			Calvin Klein International		Tommy Hilfiger North America		Tommy Hilfiger International			Heritage Brands Wholesale			Heritage Brands Retail			Total
Balance as of January 31, 2016
Goodwill, gross	$	728.0		$	841.5	$	204.4	$	1,208.4		$	237.0		$	11.9		$	3,231.2
Accumulated impairment losses	—			—		—		—			—			(11.9		)	(11.9		)
Goodwill, net	728.0			841.5		204.4		1,208.4			237.0			—			3,219.3
Contingent purchase price payments to Mr. Calvin Klein	31.3			21.3		—		—			—			—			52.6
TH China acquisition	—			—		—		258.6			—			—			258.6
Mexico deconsolidation	(20.5		)	—		—		—			(1.0		)	—			(21.5		)
Currency translation and other	0.6			1.7		—		(41.2		)	(0.2		)	—			(39.1		)
Balance as of January 29, 2017
Goodwill, gross	739.4			864.5		204.4		1,425.8			235.8			11.9			3,481.8
Accumulated impairment losses	—			—		—		—			—			(11.9		)	(11.9		)
Goodwill, net	739.4			864.5		204.4		1,425.8			235.8			—			3,469.9
Contingent purchase price payments to Mr. Calvin Klein	34.2			23.1		—		—			—			—			57.3
True & Co. acquisition	5.4			4.8		—		—			10.7			—			20.9
Belgian acquisition	—			1.3		—		11.1			—			—			12.4
Currency translation and other	1.2			48.3		—		224.7			—			—			274.2
Balance as of February 4, 2018
Goodwill, gross	780.2			942.0		204.4		1,661.6			246.5			11.9			3,846.6
Accumulated impairment losses	—			—		—		—			—			(11.9		)	(11.9		)
Goodwill, net	$	780.2		$	942.0	$	204.4	$	1,661.6		$	246.5		$	—		$	3,834.7

The goodwill acquired in the True & Co. and Belgian acquisitions was assigned as of the acquisition dates to the Company’s reporting units that are expected to benefit from the synergies of the combinations. For those reporting units that had not been assigned any of the assets acquired or liabilities assumed in the True & Co. acquisition, the amount of goodwill assigned was determined by calculating the estimated fair value of such reporting units before and after the acquisition.

The Company is required to make contingent purchase price payments to Mr. Calvin Klein in connection with the Company’s acquisition of all of the issued and outstanding stock of Calvin Klein, Inc. and certain affiliated companies. Such payments are based on 1.15% of total worldwide net sales, as defined in the acquisition agreement (as amended), of products bearing any of the CALVIN KLEIN brands and are required to be made with respect to sales made through February 12, 2018. A significant portion of the sales on which the payments to Mr. Klein have been made are wholesale sales by the Company and its licensees and other partners to retailers. The payments are not due or paid in cash until 45 days subsequent to the Company’s applicable quarter end. As such, the final payment due to Mr. Klein will be made in the second quarter of 2018.

The Company’s other intangible assets consisted of the following:



	2017							2016
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Intangible assets subject to amortization:
Customer relationships	$	324.7	$	(169.4	)	$	155.3	$	296.7	$	(130.8	)	$	165.9
Order backlog	27.0		(27.0		)	—		24.6		(24.6		)	—
Reacquired license rights	550.7		(124.4		)	426.3		524.7		(78.1		)	446.6
Total intangible assets subject to amortization	902.4		(320.8		)	581.6		846.0		(233.5		)	612.5

Indefinite-lived intangible assets:
Tradenames	2,928.4		—			2,928.4		2,783.4		—			2,783.4
Perpetual license rights	204.7		—			204.7		203.9		—			203.9
Reacquired perpetual license rights	11.9		—			11.9		10.2		—			10.2
Total indefinite-lived intangible assets	3,145.0		—			3,145.0		2,997.5		—			2,997.5
Total other intangible assets	$	4,047.4	$	(320.8	)	$	3,726.6	$	3,843.5	$	(233.5	)	$	3,610.0

The gross carrying amount and accumulated amortization of certain intangible assets include the impact of changes in foreign currency exchange rates.

Amortization expense related to the Company’s intangible assets subject to amortization was $65.0 million and $86.2 million for 2017 and 2016, respectively.

Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the next five years related to the Company’s intangible assets subject to amortization as of February 4, 2018 is expected to be as follows:



(In millions)
Fiscal Year	Amount
2018	$	65.7
2019	41.1
2020	41.0
2021	40.8
2022	38.5

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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