SUPPLEMENTAL CASH FLOW INFORMATION

3 Months Ended

May 01, 2022

Notes to Financial Statements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

Noncash Investing and Financing Transactions

Omitted from the Company’s Consolidated Statements of Cash Flows for the thirteen weeks ended May 1, 2022 and May 2, 2021 were capital expenditures related to property, plant and equipment of $32.2 million and $25.1 million, respectively, that were accrued and not yet paid as of the end of the respective periods.

Omitted from acquisition of treasury shares in the Company’s Consolidated Statement of Cash Flows for the thirteen weeks ended May 1, 2022 were $3.2 million of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of the end of the period.

The Company completed the Australia acquisition in the second quarter of 2019. Total acquisition consideration included 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. In subsequent periods, the liability was adjusted each reporting period to its redemption value based on conditions that existed as of each subsequent balance sheet date. 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. The Company had a remaining liability of $24.5 million as of May 2, 2021 (based on exchange rates in effect on that date), which was subsequently settled in June 2021. Please see Note 4, “Acquisitions,” for further discussion of this liability.

Omitted from net proceeds from short-term borrowings in the Company’s Consolidated Statement of Cash Flows for the thirteen weeks ended May 2, 2021 were $0.3 million of debt issuance costs incurred in connection with the Company’s 2021 facility that were accrued and not yet paid as of the end of the period.

Lease Transactions

Supplemental cash flow information related to leases was as follows:


	Thirteen Weeks Ended
(In millions)	5/1/22		5/2/21
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	127.5	$	120.6
Operating cash flows from finance leases	—		0.1
Financing cash flows from finance leases	1.0		1.4
Noncash transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	91.7		49.6
Right-of-use assets obtained in exchange for new finance lease liabilities	3.6		1.8

The Company has sought concessions from landlords for certain of its stores affected by temporary closures as a result of the COVID-19 pandemic 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 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 $0.8 million and $8.6 million of rent abatements during the thirteen weeks ended May 1, 2022 and May 2, 2021, 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 Sheets.