RETIREMENT AND BENEFIT PLANS

6 Months Ended

Jul. 30, 2023

Retirement and Benefit Plans [Abstract]

RETIREMENT AND BENEFIT PLANS

RETIREMENT AND BENEFIT PLANS

The Company, as of July 30, 2023, has two noncontributory qualified defined benefit pension plans. These plans cover substantially all employees resident in the United States hired prior to January 1, 2022 who meet certain age and service requirements. The plans provide monthly benefits upon retirement generally based on career average compensation and years of credited service. The plans also provide participants with the option to receive their benefits in the form of lump sum payments. Vesting in plan benefits generally occurs after five years of service. The Company refers to these two plans as its “Pension Plans.”

The Company also has three noncontributory unfunded non-qualified supplemental defined benefit pension plans, including:

–A plan for certain former members of Tommy Hilfiger’s domestic senior management.

–A capital accumulation program for certain former senior executives. Under the individual participants’ agreements, the participants in the program will receive a predetermined amount during the ten years following the attainment of age 65.

–A plan for certain employees resident in the United States hired prior to January 1, 2022 who meet certain age and service requirements that provides benefits for compensation in excess of Internal Revenue Service earnings limits and requires payments to vested employees upon or after employment termination or retirement, according to their distribution election.

The Company refers to these three plans as its “SERP Plans.”

The components of net benefit cost recognized were as follows:

	Pension Plans				Pension Plans
	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(In millions)	7/30/23		7/31/22		7/30/23		7/31/22
Service cost	$	5.8	$	7.7	$	10.8	$	15.7
Interest cost	7.4		6.4		14.6		12.7
Expected return on plan assets	(8.4)		(10.4)		(16.9)		(20.9)
Total	$	4.8	$	3.7	$	8.5	$	7.5

	SERP Plans				SERP Plans
	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(In millions)	7/30/23		7/31/22		7/30/23		7/31/22
Service cost	$	0.4	$	0.7	$	0.8	$	1.3
Interest cost	0.7		0.8		1.4		1.4
Total	$	1.1	$	1.5	$	2.2	$	2.7

The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States under two plans. Retirees contribute to the cost of the applicable plan, both of which are unfunded and frozen. The Company refers to these two plans as its “Postretirement Plans.” Net benefit cost related to the Postretirement Plans was immaterial for the thirteen and twenty-six weeks ended July 30, 2023 and July 31, 2022.

The components of net benefit cost are recorded in the Company’s Consolidated Statements of Operations as follows: (i) the service cost component is recorded in selling, general and administrative (“SG&A”) expenses and (ii) the other components are recorded in non-service related pension and postretirement income.

Currently, the Company does not expect to make material contributions to the Pension Plans in 2023. The Company’s actual contributions may differ from planned contributions due to many factors, including changes in tax and other laws, as well as significant differences between expected and actual pension asset performance or interest rates.