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Segment Information | 12 Months Ended
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Feb. 02, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company’s reportable business segments and respective accounting policies of the segments are the same as those described in Note 1. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. Corporate overhead, net gains (losses) from lease terminations, asset impairment charges, restructuring charges, interest income, interest expense and other income (expense) are evaluated on a consolidated basis and not allocated to the Company’s business segments. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. During fiscal 2018, net revenue and related costs and expenses for certain globally serviced customers were reclassified into the segment primarily responsible for the relationship. During fiscal 2018, segment results were also adjusted to exclude corporate performance-based compensation costs, net gains (losses) on lease terminations and asset impairment charges due to the fact that these items are no longer included in the segment results provided to the Company’s chief operating decision maker in order to allocate resources and assess performance. Accordingly, the segment results for fiscal 2017 were adjusted to conform to such presentation. The Company believes this segment reporting reflects how its business segments are managed and how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. Segment information is summarized as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Feb 2, 20191 |  | Feb 3, 20181 |  | Jan 28, 20171
Net revenue: |  |  |  |  |
Americas Retail | $ | 824,674 |  |  | $ | 833,077 |  |  | $ | 935,479 |
Americas Wholesale | 170,812 |  |  | 150,366 |  |  | 146,260 |
Europe | 1,142,768 |  |  | 998,657 |  |  | 788,194 |
Asia | 388,246 |  |  | 308,899 |  |  | 248,601 |
Licensing2,3 | 83,194 |  |  | 72,755 |  |  | 71,919 |
Total net revenue2,3 | $ | 2,609,694 |  |  | $ | 2,363,754 |  |  | $ | 2,190,453 |
Earnings (loss) from operations: |  |  |  |  |
Americas Retail2,4 | $ | 27,532 |  |  | $ | (11,096 | ) |  | $ | (13,752 | )
Americas Wholesale2,4 | 29,935 |  |  | 25,845 |  |  | 25,007 |
Europe4,5 | 58,298 |  |  | 94,545 |  |  | 65,068 |
Asia4 | 12,365 |  |  | 14,809 |  |  | (1,392 | )
Licensing2,3,4 | 72,986 |  |  | 63,538 |  |  | 61,472 |
Total segment earnings from operations | 201,116 |  |  | 187,641 |  |  | 136,403 |
Corporate overhead2,4 | (96,805 | ) |  | (100,434 | ) |  | (71,867 | )
European Commission fine6 | (45,637 | ) |  | — |  |  | — |
Asset impairment charges7 | (6,939 | ) |  | (8,479 | ) |  | (34,385 | )
Net gains (losses) on lease terminations8 | 477 |  |  | (11,373 | ) |  | 695 |
Restructuring charges9 | — |  |  | — |  |  | (6,083 | )
Total earnings from operations5 | $ | 52,212 |  |  | $ | 67,355 |  |  | $ | 24,763 |
Capital expenditures: |  |  |  |  |
Americas Retail | $ | 19,614 |  |  | $ | 16,899 |  |  | $ | 25,881 |
Americas Wholesale | 376 |  |  | 1,303 |  |  | 3,320 |
Europe | 56,792 |  |  | 46,419 |  |  | 42,080 |
Asia | 23,458 |  |  | 12,111 |  |  | 13,869 |
Licensing | — |  |  | — |  |  | 20 |
Corporate overhead | 7,877 |  |  | 7,923 |  |  | 5,411 |
Total capital expenditures | $ | 108,117 |  |  | $ | 84,655 |  |  | $ | 90,581 |
______________________________________________________________________
1 | The Company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. The results for fiscal 2018 included the impact of an additional week which occurred during the fourth quarter ended February 3, 2018.
2 | During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $10.7 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.9 million, $1.7 million, $1.1 million and $3.0 million, respectively, during fiscal 2019 compared to the prior year. The net favorable impact on earnings from operations was approximately $1.0 million during fiscal 2019 compared to the prior year. Refer to Note 2 to the Condensed Consolidated Financial Statements for more information regarding the impact from the adoption of this new standard.
3 | During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform.
4 | During fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation.
5 | During fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, earnings from operations and segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation.
6 | During fiscal 2019, the Company recognized a charge of €39.8 million ($45.6 million) for a fine imposed by the European Commission related to alleged violations of European Union competition rules by the Company. The Company paid the full amount of the fine during the first quarter of fiscal 2020.
7 | During each of the years presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 5 for more information regarding these asset impairment charges.
8 | During fiscal 2019, the Company recorded net gain on lease terminations related primarily to the early termination of certain lease agreements in North America. During fiscal 2018, the Company incurred net losses on lease terminations related primarily to the modification of certain lease agreements held with a common landlord in North America. During fiscal 2017, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in Europe. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations.
9 | Restructuring charges incurred during fiscal 2017 related to plans to better align the Company’s global cost and organizational structure with its current strategic initiatives. Refer to Note 9 for more information regarding these restructuring charges.
The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Feb 2, 2019 |  | Feb 3, 2018 |  | Jan 28, 2017
Net product sales: |  |  |  |  |
U.S. | $ | 722,794 |  |  | $ | 709,155 |  |  | $ | 801,623 |
Italy | 304,435 |  |  | 289,981 |  |  | 251,709 |
Canada | 187,367 |  |  | 200,364 |  |  | 217,029 |
South Korea | 162,943 |  |  | 163,382 |  |  | 156,094 |
Other foreign countries | 1,148,961 |  |  | 928,117 |  |  | 692,079 |
Total product sales | 2,526,500 |  |  | 2,290,999 |  |  | 2,118,534 |
Net royalties1 | 83,194 |  |  | 72,755 |  |  | 71,919 |
Net revenue | $ | 2,609,694 |  |  | $ | 2,363,754 |  |  | $ | 2,190,453 |
______________________________________________________________________
1 | During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform to the current period presentation.
Long-lived assets by geographic location are as follows:
| Feb 2, 2019 |  | Feb 3, 2018
Long-lived assets: |  |  |
U.S. | $ | 111,022 |  |  | $ | 109,943 |
Italy | 30,038 |  |  | 34,884 |
Canada | 13,225 |  |  | 18,845 |
South Korea | 9,437 |  |  | 9,584 |
Other foreign countries | 222,727 |  |  | 187,214 |
Total long-lived assets | $ | 386,449 |  |  | $ | 360,470 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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