INCOME TAXES (Tables)

12 Months Ended

Feb. 02, 2020

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The domestic and foreign components of (loss) income before income taxes were as follows:



(In millions)	2019			2018			2017
Domestic	$	(441.2	)	$	(5.3	)	$	(102.0	)
Foreign	885.2			780.9			612.2
Total	$	444.0		$	775.6		$	510.2

The domestic loss before benefit for income taxes in 2019, 2018 and 2017 is primarily attributable to the domestic portion of certain charges incurred in 2019, 2018 and 2017. Please see Note 21, “Segment Data,” for further discussion of these costs.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes attributable to income consisted of the following:



(In millions)	2019				2018				2017
Federal:
Current	$	(30.4	)		$	(30.5	)		$	51.7
Deferred	(52.6		)	⁽¹⁾	(53.2		)	⁽²⁾	(198.3		)	⁽²⁾
State and local:
Current	4.3				4.6				3.5
Deferred	(16.5		)		9.6				(7.8		)
Foreign:
Current	127.9				170.2				143.5
Deferred	(3.8		)	⁽¹⁾	(69.7		)	⁽³⁾	(18.5		)
Total	$	28.9			$	31.0			$	(25.9	)


⁽¹⁾	Includes a $27.8 million benefit related to the write-off of deferred tax liabilities in connection with the pre-tax noncash impairment of the Speedo perpetual license right, primarily in the United States. Please see Note 4, “Assets Held For Sale,” for further discussion.

⁽²⁾Includes a $24.7 million benefit in 2018 and a $52.8 million benefit in 2017 related to the U.S. Tax Legislation.

⁽³⁾

Includes a $41.1 million benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2019 Dutch Tax Plan,” which became effective on January 1, 2019 and includes a gradual reduction of the corporate income tax rate by 2021.

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision (benefit) for income taxes for the years 2019, 2018 and 2017 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income as follows:



	2019			2018			2017
Statutory federal income tax rate ⁽¹⁾	21.0	%		21.0	%		33.7	%
State and local income taxes, net of federal income tax benefit	(2.4	)%		0.5	%		(1.1	)%
Effects of international jurisdictions, including foreign tax credits	(15.7	)%		(9.5	)%		(20.3	)%
Change in estimates for uncertain tax positions	(11.8	)%	⁽²⁾	(3.7	)%		(7.5	)%
Change in valuation allowance	1.8	%		(5.3	)%	⁽³⁾	11.0	%	⁽⁴⁾
One-time transition tax due to U.S. Tax Legislation	—	%		—	%		34.0	%
Remeasurement due to U.S. Tax Legislation	—	%		0.2	%		(51.9	)%
Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII)	10.0	%		1.9	%		—	%
Tax on Speedo transaction basis difference	2.3	%		—	%		—	%
Excess tax benefits related to stock-based compensation	(0.2	)%		(0.6	)%		(2.8	)%	⁽⁵⁾
Other, net	1.5	%		(0.5	)%		(0.2	)%
Effective income tax rate	6.5	%		4.0	%		(5.1	)%


⁽¹⁾	The United States statutory federal income tax rate changed from 35.0% to 21.0%, effective January 1, 2018, as a result of the U.S. Tax Legislation. The United States statutory federal income tax rate for 2017 is a blended rate of 33.7%.

⁽²⁾ Includes the settlement of a multi-year audit from an international jurisdiction.


⁽³⁾	Includes the release of a $26.3 million valuation allowance on the Company’s foreign tax credits to adjust the provisional amount recorded in 2017 as a result of the U.S. Tax Legislation.


⁽⁴⁾	Includes the recognition of a $38.5 million provisional valuation allowance on the Company’s foreign tax credits as a result of the U.S. Tax Legislation.

⁽⁵⁾

Includes an excess tax benefit from the exercise of stock options by the Company’s Chairman and Chief Executive Officer.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred income tax assets and liabilities were as follows:



(In millions)	2019			2018
Gross deferred tax assets
Tax loss and credit carryforwards	$	232.5		$	230.1
Operating lease liabilities	407.6			—
Employee compensation and benefits	110.9			83.1
Inventories	39.7			26.8
Accounts receivable	20.3			17.1
Accrued expenses	26.5			30.2
Other, net	—			13.8
Subtotal	837.5			401.1
Valuation allowances	(69.8		)	(62.6		)
Total gross deferred tax assets, net of valuation allowances	$	767.7		$	338.5
Gross deferred tax liabilities
Intangibles	$	(860.6	)	$	(825.3	)
Operating lease right-of-use assets	(357.2		)	—
Property, plant and equipment	(46.2		)	(33.6		)
Derivative financial instruments	(12.8		)	(4.3		)
Other, net	(8.7		)	—
Total gross deferred tax liabilities	$	(1,285.5	)	$	(863.2	)
Net deferred tax liability	$	(517.8	)	$	(524.7	)

Summary of Income Tax Contingencies [Table Text Block]

Uncertain tax positions activity for each of the last three years was as follows:



(In millions)	2019			2018			2017
Balance at beginning of year	$	248.3		$	297.1		$	245.6
Increases related to prior year tax positions	7.7			13.9			15.4
Decreases related to prior year tax positions	(15.8		)	(24.9		)	(10.3		)
Increases related to current year tax positions	18.2			25.5			79.7
Lapses in statute of limitations	(36.0		)	(54.7		)	(46.3		)
Effects of foreign currency translation	(2.5		)	(8.6		)	13.0
Balance at end of year	$	219.9		$	248.3		$	297.1

The entire amount of uncertain tax positions as of February 2, 2020, if recognized, would reduce the future effective tax rate under current accounting guidance.