v3.22.2.2
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jul. 31, 2022
Fair Value Measurements [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis:
7/31/221/30/228/1/21
(In millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Foreign currency forward exchange contracts    N/A$93.7 N/A$93.7 N/A$56.3 N/A$56.3 N/A$18.3 N/A$18.3 
Rabbi trust assets0.6 4.5 N/A5.1 — 0.3 N/A0.3 N/AN/AN/AN/A
Total Assets$0.6 $98.2 N/A$98.8 $— $56.6 N/A$56.6 N/A$18.3 N/A$18.3 
Liabilities:
Foreign currency forward exchange contracts    N/A$2.7 N/A$2.7 N/A$1.7 N/A$1.7 N/A$4.7 N/A$4.7 
Interest rate swap agreementsN/A— N/A— N/A— N/A— N/A2.7 N/A2.7 
Total LiabilitiesN/A$2.7 N/A$2.7 N/A$1.7 N/A$1.7 N/A$7.4 N/A$7.4 
Fair Value Measurements, Nonrecurring [Table Text Block]
The following table shows the fair values of the Company’s non-financial assets that were required to be remeasured at fair value on a non-recurring basis during the twenty-six weeks ended July 31, 2022 and August 1, 2021, and the total impairments recorded as a result of the remeasurement process:
(In millions)Fair Value Measurement UsingFair Value As Of Impairment DateTotal Impairments
7/31/22Level 1Level 2Level 3
Operating lease right-of-use assetsN/AN/A$— $— $26.4 
Property, plant and equipment, netN/AN/A— — 17.2 
8/1/21
Operating lease right-of-use assetsN/AN/A— — 17.8 
Property, plant and equipment, netN/AN/A— — 17.3 

Operating lease right-of-use assets with a carrying amount of $26.4 million and property, plant and equipment with a carrying amount of $17.2 million were written down to a fair value of zero during the twenty-six weeks ended July 31, 2022 in connection with the Company’s decision in the second quarter of 2022 to exit from its Russia business. Please see Note 16, “Exit Activity Costs,” for further discussion of the Russia business exit costs. Fair value of the Company’s operating lease right-of-use assets and property, plant and equipment were determined to be zero in line with the Company’s estimated future cash flows for the Russia business asset group.

The $43.6 million of impairment charges during the twenty-six weeks ended July 31, 2022 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $33.7 million in the Tommy Hilfiger International segment and $9.9 million in the Calvin Klein International segment.

Operating lease right-of-use assets with a carrying amount of $17.8 million and property, plant and equipment with a carrying amount of $17.3 million were written down to a fair value of zero during the twenty-six weeks ended August 1, 2021 primarily as a result of actions taken by the Company to reduce its real estate footprint, including reductions in office space. Please see Note 16, “Exit Activity Costs,” for further discussion of these restructuring activities. Fair value of the Company’s operating lease right-of-use assets was determined based on the discounted cash flows of estimated sublease income using market participant assumptions, which considered the short length of the remaining lease term for certain of these assets, and current real estate trends and market conditions. Fair value of the Company’s property, plant and equipment was determined based on the estimated discounted future cash flows associated with the assets using market participant assumptions.
The $35.1 million of impairment charges during the twenty-six weeks ended August 1, 2021 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $1.4 million in the Heritage Brands Wholesale segment and $33.7 million in corporate expenses not allocated to any reportable segments.
Fair Value, by Balance Sheet Grouping [Table Text Block]
The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows:
7/31/221/30/228/1/21
(In millions)Carrying AmountFair ValueCarrying AmountFair ValueCarrying AmountFair Value
     
Cash and cash equivalents$699.3 $699.3 $1,242.5 $1,242.5 $1,152.6 $1,152.6 
Short-term borrowings12.2 12.2 10.8 10.8 19.2 19.2 
Long-term debt (including portion classified as current)2,193.7 2,210.9 2,352.4 2,522.4 2,812.2 3,066.2 

The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement. The carrying amounts of long-term debt reflect the unamortized portions of debt issuance costs and the original issue discounts.