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INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2021

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)	2020		2019		2018
Domestic	$	(1,248.7)	$	(441.2)	$	(5.3)
Foreign	55.7		885.2		780.9
Total	$	(1,193.0)	$	444.0	$	775.6

The (loss) before income taxes in 2020 is due to the significant adverse impacts of the COVID-19 pandemic on the Company’s business, including $1,027.7 million of noncash impairment charges. The domestic loss before income taxes in 2020, 2019 and 2018 also include the domestic portion of certain charges incurred in 2020, 2019 and 2018. Please see Note 20, “Segment Data,” for further discussion of these costs.

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

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


(In millions)	2020			2019			2018
Federal:
Current	$	(22.2)		$	(30.4)		$	(30.5)
Deferred	(103.5)			(52.6)		(2)	(53.2)		(3)
State and local:
Current	3.1			4.3			4.6
Deferred	(19.0)			(16.5)			9.6
Foreign:
Current	108.3			127.9			170.2
Deferred	(22.2)		(1)	(3.8)		(2)	(69.7)		(4)
Total	$	(55.5)		$	28.9		$	31.0

(1) Includes a $33.1 million expense related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2021 Dutch Tax Plan,” which became effective on January 1, 2021 and reverses the previously enacted reduction in the corporate income tax rate under the “2019 Dutch Tax Plan” (as defined below).

(2) 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 3, “Acquisitions and Divestitures,” for further discussion.

(3) Includes a $24.7 million benefit related to the U.S. Tax Legislation.

(4) 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 included a gradual reduction of the corporate income tax rate by 2021.

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

The (benefit) provision for income taxes for the years 2020, 2019 and 2018 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying (loss) income as follows:


	2020			2019			2018
Statutory federal income tax rate	21.0	%		21.0	%		21.0	%
State and local income taxes, net of federal income tax benefit	1.7	%		(2.4)	%		0.5	%
Effects of international jurisdictions, including foreign tax credits	(2.2)	%		(15.7)	%		(9.5)	%

Change in estimates for uncertain tax positions	2.1	%		(11.8)	%	(2)	(3.7)	%
Change in valuation allowance	0.9	%		1.8	%		(5.3)	%	(3)

Remeasurement due to U.S. Tax Legislation	—	%		—	%		0.2	%
Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII)	(5.9)	%		10.0	%		1.9	%
Tax on Speedo transaction basis difference	—	%		2.3	%		—	%
Goodwill impairment	(13.3)	%	(1)	—	%		—	%
Excess tax benefits related to stock-based compensation	(0.4)	%		(0.2)	%		(0.6)	%
Other, net	0.8	%		1.5	%		(0.5)	%
Effective income tax rate	4.7	%		6.5	%		4.0	%

(1) Includes the impact of the $879.0 million of pre-tax goodwill impairment charges recorded during 2020, which were mostly non-deductible for tax purposes. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion of the impairments related to goodwill.

(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.

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

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


(In millions)	2020		2019
Gross deferred tax assets
Tax loss and credit carryforwards	$	314.3	$	232.5
Operating lease liabilities	457.1		407.6
Employee compensation and benefits	107.1		110.9
Inventories	36.4		39.7
Accounts receivable	16.3		20.3
Accrued expenses	22.5		26.5
Derivative financial instruments	17.6		—
Other, net	13.0		—
Subtotal	984.3		837.5
Valuation allowances	(62.2)		(69.8)
Total gross deferred tax assets, net of valuation allowances	$	922.1	$	767.7
Gross deferred tax liabilities
Intangibles	$	(867.8)	$	(860.6)
Operating lease right-of-use assets	(399.2)		(357.2)
Property, plant and equipment	(16.3)		(46.2)
Derivative financial instruments	—		(12.8)
Other, net	—		(8.7)
Total gross deferred tax liabilities	$	(1,283.3)	$	(1,285.5)
Net deferred tax liability	$	(361.2)	$	(517.8)

Summary of Income Tax Contingencies [Table Text Block]

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


(In millions)	2020		2019		2018
Balance at beginning of year	$	219.9	$	248.3	$	297.1

Increases related to prior year tax positions	5.4		7.7		13.9
Decreases related to prior year tax positions	(2.9)		(15.8)		(24.9)
Increases related to current year tax positions	10.9		18.2		25.5

Lapses in statute of limitations	(30.7)		(36.0)		(54.7)
Effects of foreign currency translation	8.1		(2.5)		(8.6)
Balance at end of year	$	210.7	$	219.9	$	248.3

The entire amount of uncertain tax positions as of January 31, 2021, if recognized, would reduce the future effective tax rate under current accounting guidance.