SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Aug. 02, 2020

Notes to Financial Statements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

Noncash Investing and Financing Transactions

The Company completed the Australia acquisition in the second quarter of 2019. Omitted from the Company’s Consolidated Statement of Cash Flows for the twenty-six weeks ended August 4, 2019 was the following noncash acquisition consideration: (i) the issuance to key executives of Gazal and PVH Australia of approximately 6% of the outstanding shares in the subsidiary of the Company that acquired 100% of the ownership interests in the Australia business, for which the Company recognized a $26.2 million liability on the date of the acquisition and (ii) the elimination of a $2.2 million pre-acquisition receivable owed to the Company by PVH Australia. In connection with the acquisition, the Company also remeasured its previously held equity investments in Gazal and PVH Australia to fair value, resulting in noncash increases of $23.6 million and $89.5 million, respectively, to these equity investment balances. The Company settled in June 2020 a portion of the liability for the 6% interest issued to key executives of Gazal and PVH Australia under the conditions specified in the terms of the acquisition agreement. Please see Note 4, “Acquisitions and Divestitures,” for further discussion of the payment. The Company recorded an expense of $0.9 million during the twenty-six weeks ended August 2, 2020 resulting from the remeasurement of the remaining liability to its redemption value as of August 2, 2020. The liability was $18.8 million as of August 2, 2020 based on exchange rates in effect on that date.

Omitted from proceeds from 4 5/8% senior notes, net of related fees in the Company’s Consolidated Statement of Cash Flows for the twenty-six weeks ended August 2, 2020 were $1.0 million of debt issuance costs incurred in connection with the issuance of $500.0 million principal amount of 4 5/8% senior notes due 2025 that were accrued as of August 2, 2020.

The Company recorded a loss of $1.7 million during the twenty-six weeks ended August 4, 2019 to write-off previously capitalized debt issuance costs in connection with the refinancing of its senior credit facilities.

Omitted from acquisition of treasury shares in the Company’s Consolidated Statement of Cash Flows for the twenty-six weeks ended August 4, 2019 was $2.0 million of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of the end of the respective period.

Lease Transactions

Supplemental cash flow information related to leases was as follows:


	Twenty-Six Weeks Ended
(In millions)	8/2/20		8/4/19
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	180.8	$	234.5
Operating cash flows from finance leases	0.2		0.3
Financing cash flows from finance leases	2.7		2.9
Non-cash transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	168.9		244.1
Right-of-use assets obtained in exchange for new finance lease liabilities	1.7		1.4

The Company continues to take proactive actions in response to the COVID-19 pandemic and has sought concessions from landlords for certain of its stores affected by temporary closures as a result of COVID-19 in the form of rent deferrals or rent abatements. Consistent with updated guidance issued by the Financial Accounting Standards Board (“FASB”) in April 2020, the Company has elected to treat COVID-19 related rent concessions as though enforceable rights and obligations for those concessions existed in the original contract. As such, rent abatements negotiated with landlords are recorded as a reduction to variable lease expense included in SG&A expenses in the Company’s Consolidated Statements of Operations. The Company recorded $19.3 million and $31.7 million of rent abatements during the thirteen and twenty-six weeks ended August 2, 2020, respectively. Rent deferrals have no impact to lease expense and amounts deferred and payable in future periods are included in the current portion of operating lease liabilities in the Company’s Consolidated Balance Sheet.