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DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended
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Oct. 29, 2023
Derivative Financial Instruments [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges 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 contracts to hedge against a portion of this exposure. The Company records the foreign currency forward contracts at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward contracts associated with certain international inventory purchases are designated as effective hedging instruments (“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. Net Investment Hedges 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 uses both non-derivative instruments (the par value of certain of its foreign-denominated debt) and derivative instruments (cross-currency swap contracts), which it designates as net investment hedges. The Company designated the par value 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 8, “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 $1,148.9 million and $1,183.7 million, respectively, as of October 29, 2023, $1,192.0 million and $1,215.4 million, respectively, as of January 29, 2023 and $1,013.9 million and $1,112.6 million, respectively, as of October 30, 2022. The Company evaluates the effectiveness of its non-derivative instrument net investment hedges at inception and each quarter thereafter. No amounts were excluded from effectiveness testing. In the third quarter of 2023, the Company entered into multiple fixed-to-fixed cross-currency swap contracts, which, in aggregate, economically convert the Company’s $500.0 million principal amount of 4 5/8% senior notes due 2025 from a United States dollar-denominated obligation to a euro-denominated obligation of €457.2 million. As part of these swap contracts, the Company will receive fixed-rate United States dollar-denominated interest at a weighted average rate of 1.405% and pay fixed-rate euro-denominated interest at a rate of 0%. The cross-currency swap contracts expire on July 10, 2025. The Company designated these cross-currency swap contracts as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. The Company records the cross-currency swap contracts at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. Changes in the fair value of the cross-currency swap contracts are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its derivative instrument net investment hedges at inception and each quarter thereafter. The interest components of the cross-currency swaps are excluded from the assessment of hedge effectiveness and are initially recorded in equity as a component of AOCL. Such amounts are recognized ratably over the term of the cross-currency swap contracts as a credit to interest expense in the Company’s Consolidated Statements of Operations. Undesignated Contracts 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 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. The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets:
| Assets |  | Liabilities
| 10/29/23 |  | 1/29/23 |  | 10/30/22 |  | 10/29/23 |  | 1/29/23 |  | 10/30/22
(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 and net investment hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts (inventory purchases) | $ | 26.5 |  | $ | 2.6 |  |  | $ | 15.7 |  | $ | 0.1 |  |  | $ | 95.3 |  | $ | 1.8 |  |  | $ | 0.1 |  | $ | — |  |  | $ | 20.7 |  | $ | 2.2 |  |  | $ | 2.9 |  | $ | — |
Cross-currency swap contracts (net investment hedges) | 4.8 |  | 9.0 |  | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | — |  | — |
Undesignated contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts | 4.7 |  | — |  |  | — |  | — |  |  | 0.5 |  | — |  |  | 0.5 |  | — |  |  | 12.5 |  | — |  |  | 3.1 |  | — |
Total | $ | 36.0 |  | $ | 11.6 |  |  | $ | 15.7 |  | $ | 0.1 |  |  | $ | 95.8 |  | $ | 1.8 |  |  | $ | 0.6 |  | $ | — |  |  | $ | 33.2 |  | $ | 2.2 |  |  | $ | 6.0 |  | $ | — |
The notional amount outstanding of foreign currency forward contracts was $1,277.8 million at October 29, 2023. Such contracts expire principally between November 2023 and April 2025. The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments:
|  | Gain Recognized in Other Comprehensive Loss |  |  |  |
(In millions) |  |  |
Thirteen Weeks Ended |  | 10/29/23 |  | 10/30/22 |  |  |  |
Foreign currency forward contracts (inventory purchases) |  | $ | 39.8 |  |  | $ | 24.4 |  |  |  |  |
Foreign currency borrowings (net investment hedges) |  | 50.5 |  |  | 27.6 |  |  |  |  |
Cross-currency swap contracts (net investment hedges) |  | 15.2 |  |  | — |  |  |  |  |
Total |  | $ | 105.5 |  |  | $ | 52.0 |  |  |  |  |
Thirty-Nine Weeks Ended |  | 10/29/23 |  | 10/30/22 |  |  |  |
Foreign currency forward contracts (inventory purchases) |  | $ | 47.8 |  |  | $ | 70.2 |  |  |  |  |
Foreign currency borrowings (net investment hedges) |  | 33.6 |  |  | 132.6 |  |  |  |  |
Cross-currency swap contracts (net investment hedges) |  | 15.2 |  |  | — |  |  |  |  |
Total |  | $ | 96.6 |  |  | $ | 202.8 |  |  |  |  |
|  | Amount of Gain Reclassified from AOCL into 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 |  | 10/29/23 |  | 10/30/22 |  |  |  | 10/29/23 |  | 10/30/22
Foreign currency forward contracts (inventory purchases) |  | $ | 6.3 |  |  | $ | 9.9 |  |  | Cost of goods sold |  | $ | 1,023.5 |  |  | $ | 1,006.6 |
Cross-currency swap contracts (net investment hedges) |  | 1.4 |  |  | — |  |  | Interest expense |  | 24.3 |  |  | 21.1 |
Thirty-Nine Weeks Ended |  | 10/29/23 |  | 10/30/22 |  |  |  | 10/29/23 |  | 10/30/22
Foreign currency forward contracts (inventory purchases) |  | $ | 16.5 |  |  | $ | 13.6 |  |  | Cost of goods sold |  | $ | 2,865.8 |  |  | $ | 2,803.1 |
Cross-currency swap contracts (net investment hedges) |  | 1.4 |  |  | — |  |  | Interest expense |  | 75.5 |  |  | 65.9 |
A net gain in AOCL on foreign currency forward contracts at October 29, 2023 of $20.2 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. Amounts recognized in AOCL for foreign currency borrowings and the effective portion of the Company’s net investment hedges would be recognized in earnings only upon the sale or substantially complete liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Statements of Operations:
(In millions) |  |  |  | Gain Recognized in SG&A Expenses
Thirteen Weeks Ended |  |  |  | 10/29/23 |  | 10/30/22
Foreign currency forward contracts (1) |  |  |  | $ | 13.1 |  |  | $ | 8.7 |
Thirty-Nine Weeks Ended |  |  |  | 10/29/23 |  | 10/30/22
Foreign currency forward contracts (1) |  |  |  | $ | 10.3 |  |  | $ | 35.3 |
(1) 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 had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of October 29, 2023.

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- Definition Derivative Financial Instruments [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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