PVH(PVH) - 2025 Q4 - Annual Report

Financial Position - The company had an outstanding aggregate principal amount of $2.099 billion in indebtedness as of February 2, 2025, with$500 million of senior unsecured notes due in 2025 [160]. - As of February 2, 2025, the company recorded $2.260 billion in goodwill and$3.021 billion in other intangible assets, representing 48% of total assets [172]. - The company’s ability to maintain compliance with financial covenants may be adversely affected by future economic conditions, impacting its financial stability [160]. - The company’s pension plans are subject to significant obligations, with potential volatility in pension costs due to market conditions [168][169]. Impairment and Risks - In the third quarter of 2022, the company recorded $417 million of noncash impairment charges due to a significant increase in discount rates [172]. - Adverse changes in tax laws or audits could result in additional tax liabilities, impacting cash flows and financial condition [162][165]. - The company is currently implementing a multi-year SAP S/4 upgrade, which poses risks of disruptions or deficiencies in operations [180]. Currency and Market Risks - The company utilizes foreign currency forward contracts to mitigate cash flow or market risks associated with inventory transactions, but cannot eliminate these risks entirely [158]. - The company’s international operations expose it to foreign currency exchange rate fluctuations, impacting financial results during times of a strengthening or weakening U.S. dollar [157]. Cybersecurity and Data Privacy - The company faces risks related to cybersecurity and data privacy, including potential breaches that could disrupt operations and damage reputation [176][179]. - The company is subject to increasing global data privacy and security laws, which may impact operations and increase costs [181]. - Compliance with data privacy laws may lead to less efficient operations and delays in financial reporting [183]. - The company has implemented a global data privacy program, including guidelines and training for associates [183]. - The complexity of data privacy regulations, such as GDPR and CCPA, is increasing, affecting business operations [182]. Legal and Regulatory Risks - There is a risk of significant fines, judgments, or settlements due to potential regulatory actions [183]. - Any legal claims could result in reputational damage, regardless of the outcome of the defense [183].