The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows associated with certain international inventory purchases. The Company uses foreign currency forward exchange contracts to hedge against a portion of this exposure.

The Company also has exposure to interest rate volatility related to its term loans under the 2019 facilities, and the 2021 facility. The Company has entered into interest rate swap agreements to hedge against a portion of the exposure related to its term loans under the 2019 facilities. The Company had no borrowings outstanding under the 2021 facility during the thirty-nine weeks ended October 31, 2021. Please see Note 9, “Debt,” for further discussion of the 2019 facilities, the 2021 facility and these agreements.

The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward exchange contracts associated with certain international inventory purchases and the interest rate swap agreements are designated as effective hedging instruments (collectively, “cash flow hedges”). As such, the changes in the fair value of the cash flow hedges are recorded in equity as a component of accumulated other comprehensive loss (“AOCL”). No amounts were excluded from effectiveness testing.

During the thirteen weeks ended October 31, 2021, the Company dedesignated certain cash flow hedges in connection with the $129.6 million voluntary long-term debt repayment made during the third quarter of 2021 and the expected voluntary long-term debt repayments for the fourth quarter of 2021, as the underlying interest payments on the Company’s USD TLA facility were no longer probable to occur, which resulted in the release of a $1.3 million loss from AOCL into the Company’s Consolidated Statement of Operations. During the thirty-nine weeks ended November 1, 2020, the Company dedesignated certain cash flow hedges due to the impacts of the COVID-19 pandemic on its business, which resulted in the release of an immaterial gain from AOCL into the Company’s Consolidated Statement of Operations. The Company continues to believe as of October 31, 2021 that transactions relating to its designated cash flow hedges are probable to occur.

The Company has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company designated the carrying amounts of its (i) €600.0 million principal amount of 3 1/8% senior notes due 2027 and (ii) €525.0 million principal amount of 3 5/8% senior notes due 2024 (collectively, “foreign currency borrowings”), that were issued by PVH Corp., a U.S.-based entity, as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. Please see Note 9, “Debt,” for further discussion of the Company’s foreign currency borrowings.

The Company records the foreign currency borrowings at carrying value in its Consolidated Balance Sheets. The carrying value of the foreign currency borrowings is remeasured at the end of each reporting period to reflect changes in the foreign currency exchange spot rate. Since the foreign currency borrowings are designated as net investment hedges, such remeasurement is recorded in equity as a component of AOCL. The fair value and the carrying value of the foreign currency borrowings designated as net investment hedges were $1,447.5 million and $1,299.4 million, respectively, as of October 31, 2021, $1,514.2 million and $1,351.9 million, respectively, as of January 31, 2021 and $1,363.2 million and $1,302.5 million, respectively, as of November 1, 2020. The Company evaluates the effectiveness of its net investment hedges at inception and at the beginning of each quarter thereafter. No amounts were excluded from effectiveness testing.

The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”), which primarily include foreign currency forward exchange contracts related to third party and intercompany transactions, and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying balances.

The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. The cash flows from the Company’s hedges are presented in the same category in the Company’s Consolidated Statements of Cash Flows as the items being hedged.


	Assets												Liabilities
	10/31/21				1/31/21				11/1/20				10/31/21				1/31/21				11/1/20
(In millions)	Other Current Assets		Other Assets		Other Current Assets		Other Assets		Other Current Assets		Other Assets		Accrued Expenses		Other Liabilities		Accrued Expenses		Other Liabilities		Accrued Expenses		Other Liabilities
Contracts designated as cash flow hedges:
Foreign currency forward exchange contracts (inventory purchases)	$	25.1	$	1.3	$	1.2	$	0.1	$	6.4	$	1.0	$	1.4	$	0.1	$	29.0	$	0.4	$	11.3	$	0.1
Interest rate swap agreements	—		—		—		—		—		—		0.3		—		3.2		1.5		5.6		2.0
Total contracts designated as cash flow hedges	25.1		1.3		1.2		0.1		6.4		1.0		1.7		0.1		32.2		1.9		16.9		2.1
Undesignated contracts:
Foreign currency forward exchange contracts	3.4		—		2.5		—		3.5		—		2.1		—		1.6		—		2.3		—
Interest rate swap agreements	—		—		—		—		—		—		0.5		0.1		—		—		—		—
Total undesignated contracts	3.4		—		2.5		—		3.5		—		2.6		0.1		1.6		—		2.3		—
Total	$	28.5	$	1.3	$	3.7	$	0.1	$	9.9	$	1.0	$	4.3	$	0.2	$	33.8	$	1.9	$	19.2	$	2.1


	Gain (Loss) Recognized in Other Comprehensive (Loss) Income

(In millions)

Thirteen Weeks Ended	10/31/21		11/1/20
Foreign currency forward exchange contracts (inventory purchases)	$	17.2	$	13.1
Interest rate swap agreements	0.1		0.3
Foreign currency borrowings (net investment hedges)	27.4		16.7
Total	$	44.7	$	30.1

Thirty-Nine Weeks Ended	10/31/21		11/1/20
Foreign currency forward exchange contracts (inventory purchases)	$	82.0	$	(23.0)
Interest rate swap agreements	0.2		(9.7)
Foreign currency borrowings (net investment hedges)	54.7		(76.2)
Total	$	136.9	$	(108.9)


	Amount of (Loss) Gain Reclassified from AOCL into (Expense) Income, Consolidated Statements of Operations Location, and Total Amount of Consolidated Statements of Operations Line Item
(In millions)	Amount Reclassified				Location	Total Statements of Operations Amount

Thirteen Weeks Ended	10/31/21		11/1/20			10/31/21		11/1/20
Foreign currency forward exchange contracts (inventory purchases)	$	(6.6)	$	5.3	Cost of goods sold	$	987.4	$	1,016.8
Interest rate swap agreements	(1.3)		—		SG&A (1)	1,097.3		987.2
Interest rate swap agreements	(0.7)		(3.3)		Interest expense	25.9		34.4
Total	$	(8.6)	$	2.0

Thirty-Nine Weeks Ended	10/31/21		11/1/20			10/31/21		11/1/20
Foreign currency forward exchange contracts (inventory purchases)	$	1.2	$	8.4	Cost of goods sold	$	2,817.2	$	2,392.3
Interest rate swap agreements	(1.3)		—		SG&A (1)	3,198.7		2,809.5
Interest rate swap agreements	(2.6)		(7.9)		Interest expense	83.7		89.6
Total	$	(2.7)	$	0.5

(1) The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021 as discussed in the section entitled “Cash Flow Hedges” above.

A net gain in AOCL on foreign currency forward exchange contracts at October 31, 2021 of $21.4 million is estimated to be reclassified in the next 12 months in the Company’s Consolidated Statement of Operations to cost of goods sold as the underlying inventory hedged by such forward exchange contracts is sold. In addition, a net loss in AOCL for interest rate swap agreements at October 31, 2021 of $0.6 million is estimated to be reclassified to interest expense within the next 12 months. Amounts recognized in AOCL for foreign currency borrowings would be recognized in earnings only upon the sale or substantially complete liquidation of the hedged net investment.


(In millions)	(Loss) Gain Recognized in (Expense) Income
Thirteen Weeks Ended	10/31/21		11/1/20

Foreign currency forward exchange contracts	$	(4.7)	$	2.0


Thirty-Nine Weeks Ended	10/31/21		11/1/20
Foreign currency forward exchange contracts	$	(6.9)	$	(2.1)

The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021 as discussed in the section entitled “Cash Flow Hedges” above. Following the dedesignation, the effect of these interest rate swap agreements recognized in SG&A expenses in the Company’s Consolidated Statements of Operations was immaterial for the thirteen weeks ended October 31, 2021.