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SEGMENT DATA (Tables)
3 Months Ended
May 05, 2019
Segment Reporting Information [Line Items]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
The Company’s revenue by segment was as follows:
 
Thirteen Weeks Ended
 
(In millions)
5/5/19
(1) 
5/6/18
(1) 
Revenue – Tommy Hilfiger North America
 
 
 
 
Net sales    
$
347.8

 
$
338.9

 
Royalty revenue    
18.7

 
18.4

 
Advertising and other revenue    
5.3

 
3.9

 
Total    
371.8

 
361.2

 
 
 
 
 
 
Revenue – Tommy Hilfiger International
 
 
 
 
Net sales    
662.7

 
637.2

 
Royalty revenue    
13.2

 
12.0

 
Advertising and other revenue    
4.4

 
5.4

 
Total    
680.3

 
654.6

 
 
 
 
 
 
Revenue – Calvin Klein North America
 
 
 
 
Net sales
378.4

 
367.3

 
Royalty revenue
33.4

 
34.0

 
Advertising and other revenue
12.2

 
13.2

 
Total
424.0

 
414.5

 
 
 
 
 
 
Revenue – Calvin Klein International
 
 
 
 
Net sales
441.1

 
448.8

 
Royalty revenue
17.9

 
18.5

 
Advertising and other revenue
6.6

 
8.2

 
Total
465.6

 
475.5

 
 
 
 
 
 
Revenue – Heritage Brands Wholesale
 
 
 
 
Net sales
350.3

 
340.8

 
Royalty revenue
5.1

 
5.4

 
Advertising and other revenue
1.0

 
0.9

 
Total
356.4

 
347.1

 
 
 
 
 
 
Revenue – Heritage Brands Retail
 
 
 
 
Net sales
57.0

 
60.5

 
Royalty revenue
1.1

 
1.1

 
Advertising and other revenue
0.1

 
0.1

 
Total
58.2

 
61.7

 
 
 
 
 
 
Total Revenue
 
 
 
 
Net sales    
2,237.3

 
2,193.5

 
Royalty revenue    
89.4

 
89.4

 
Advertising and other revenue    
29.6

 
31.7

 
Total    
$
2,356.3

 
$
2,314.6

 

(1) 
Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.


The Company’s revenue by distribution channel was as follows:
 
Thirteen Weeks Ended
(In millions)
5/5/19
 
5/6/18
Wholesale net sales
$
1,360.7

 
$
1,284.1

Retail net sales
876.6

 
909.4

Net sales
2,237.3

 
2,193.5

 
 
 
 
Royalty revenue
89.4

 
89.4

Advertising and other revenue
29.6

 
31.7

Total
$
2,356.3

 
$
2,314.6


The Company’s income before interest and taxes by segment was as follows:
 
Thirteen Weeks Ended
 
(In millions)
5/5/19
(1) 
 
5/6/18
(1) 
(Loss) income before interest and taxes – Tommy Hilfiger North America
$
(14.7
)
(3) 
 
$
40.8

 
 
 
 
 
 
 
Income before interest and taxes – Tommy Hilfiger International
106.8

 
 
91.2

(6) 
 
 
 
 
 
 
Income before interest and taxes – Calvin Klein North America
1.4

(4) 
 
43.5

 
 
 
 
 
 
 
Income before interest and taxes – Calvin Klein International
46.9

(4) 
 
65.1

 
 
 
 
 
 
 
Income before interest and taxes – Heritage Brands Wholesale
39.0

 
 
39.8

 
 
 
 
 
 
 
Income before interest and taxes – Heritage Brands Retail
1.0

 
 
1.8

 
 
 
 
 
 
 
Loss before interest and taxes – Corporate (2)    
(45.3
)
(5) 
 
(37.9
)
 
 
 
 
 
 
 
Income before interest and taxes
$
135.1

 
 
$
244.3

 

(1) 
Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.

(2) 
Includes corporate expenses not allocated to any reportable segments, the Company’s proportionate share of the net income or loss of its investments in Gazal Corporation Limited (“Gazal”) and Karl Lagerfeld Holding B.V., and the results of PVH Ethiopia. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans (which are generally recorded in the fourth quarter) and gains and losses from changes in the fair value of foreign currency option contracts.

(3)
Loss before interest and taxes for the thirteen weeks ended May 5, 2019 included costs of $54.9 million incurred in connection with the TH U.S. store closures, primarily consisting of noncash lease asset impairments. Please see Note 12, “Fair Value Measurements,” for further discussion.

(4)
Income before interest and taxes for the thirteen weeks ended May 5, 2019 included costs of $70.3 million incurred in connection with the Calvin Klein restructuring. Such costs were included in the Company’s segments as follows: $50.9 million in Calvin Klein North America and $19.4 million in Calvin Klein International. Please see Note 17, “Exit Activity Costs,” for further discussion.

(5) 
Loss before interest and taxes for the thirteen weeks ended May 5, 2019 included costs of $6.2 million related to the refinancing of the Company’s senior credit facilities. Please see Note 9, “Debt,” for further discussion.

(6) 
Income before interest and taxes for the thirteen weeks ended May 6, 2018 included costs of $6.9 million associated with the acquisition of the 55% ownership interests in TH Asia, Ltd., the Company’s former joint venture for TOMMY HILFIGER in China, that the Company did not already own, consisting of noncash amortization of short-lived assets.

Intersegment transactions primarily consist of transfers of inventory principally from the Heritage Brands Wholesale segment to the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment. These transfers are recorded at cost plus a standard markup percentage. Such markup percentage on ending inventory is eliminated principally in the Heritage Brands Retail segment, the Tommy Hilfiger North America segment and the Calvin Klein North America segment.