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INCOME TAXES (Tables)

12 Months Ended

Jan. 30, 2022

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

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


(In millions)	2021		2020		2019
Domestic	$	(120.3)	$	(1,248.7)	$	(441.2)
Foreign	1,093.0		55.7		885.2
Total	$	972.7	$	(1,193.0)	$	444.0

The (loss) before income taxes in 2020 was 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.

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

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


(In millions)	2021			2020			2019
Federal:
Current	$	(87.7)		$	(22.2)		$	(30.4)
Deferred	(51.4)		(1)	(103.5)			(52.6)		(4)
State and local:
Current	19.6			3.1			4.3
Deferred	(21.7)			(19.0)			(16.5)
Foreign:
Current	153.7			108.3			127.9
Deferred	8.2		(2)	(22.2)		(3)	(3.8)		(4)
Total	$	20.7		$	(55.5)		$	28.9

(1) Includes a $106.3 million benefit related to a tax accounting method change made in conjunction with the Company’s 2020 U.S. federal income tax return that provides additional tax benefits to the foreign components of the federal income tax provision.

(2) Includes a $32.3 million benefit related to the remeasurement of certain net deferred tax assets in connection with the expiration of the special tax rates at the end of 2021.

(3) 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.

(4) 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 then-owned Speedo perpetual license right, primarily in the United States. Please see Note 3, “Acquisitions and Divestitures,” for further discussion.

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

The provision (benefit) for income taxes for the years 2021, 2020 and 2019 was different from the amount computed by applying the statutory United States federal income tax rate to the underlying income (loss) as follows:


	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal income tax benefit	(0.1)	%	1.7	%	(2.4)	%
Effects of international jurisdictions, including foreign tax credits	(8.0)	%	(2.2)	%	(15.7)	%

Change in estimates for uncertain tax positions	(9.7)	%	2.1	%	(11.8)	%
Change in valuation allowance	0.7	%	0.9	%	1.8	%
Tax accounting method change	(10.9)	%	—	%	—	%

Tax on foreign earnings (U.S. Tax Legislation - GILTI and FDII)	7.6	%	(5.9)	%	10.0	%
Tax on Speedo transaction basis difference	—	%	—	%	2.3	%
Goodwill impairment	—	%	(13.3)	%	—	%
Excess tax benefits related to stock-based compensation	—	%	(0.4)	%	(0.2)	%
Other, net	1.5	%	0.8	%	1.5	%
Effective income tax rate	2.1	%	4.7	%	6.5	%

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

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


(In millions)	2021			2020
Gross deferred tax assets
Tax loss and credit carryforwards	$	131.7		$	314.3
Operating lease liabilities	401.5			457.1
Employee compensation and benefits	111.8			107.1
Inventories	42.6			36.4
Accounts receivable	24.2			16.3
Accrued expenses	18.2			22.5
Derivative financial instruments	—			17.6
Property, plant and equipment	208.4		(1)	—
Other, net	—			13.0
Subtotal	938.4			984.3
Valuation allowances	(69.3)			(62.2)
Total gross deferred tax assets, net of valuation allowances	$	869.1		$	922.1
Gross deferred tax liabilities
Intangibles	$	(828.8)		$	(867.8)
Operating lease right-of-use assets	(352.8)			(399.2)
Property, plant and equipment	—			(16.3)
Derivative financial instruments	(11.1)			—
Other, net	(4.2)			—
Total gross deferred tax liabilities	$	(1,196.9)		$	(1,283.3)
Net deferred tax liability	$	(327.8)		$	(361.2)

(1) Includes a deferred tax asset related to a tax accounting method change made in conjunction with the Company’s 2020 U.S. federal income tax return.

Summary of Income Tax Contingencies [Table Text Block]

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


(In millions)	2021		2020		2019
Balance at beginning of year	$	210.7	$	219.9	$	248.3

Increases related to prior year tax positions	2.6		5.4		7.7
Decreases related to prior year tax positions	(0.2)		(2.9)		(15.8)
Increases related to current year tax positions	15.5		10.9		18.2

Lapses in statute of limitations	(93.3)		(30.7)		(36.0)
Effects of foreign currency translation	(7.5)		8.1		(2.5)
Balance at end of year	$	127.8	$	210.7	$	219.9

The entire amount of uncertain tax positions as of January 30, 2022, if recognized, would reduce the future effective tax rate under current accounting guidance.