SUBSEQUENT EVENTS

12 Months Ended

Jan. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE P — SUBSEQUENT EVENTS

DKI acquisition final tax adjustment

As discussed in Note D, the Company adjusted its goodwill in connection with the 338(h)(10) tax election made in connection with the acquisition of DKI. The payment was accrued for as of January 31, 2018 and the Company paid $4.6 million to LVMH on February 5, 2018.

Bond issued in connection with the Canadian Customs Duty Examination

As discussed in Note G, CBSA issued a final audit report to G-III Canada challenging the valuation used by G-III Canada for certain goods imported into Canada. On March 14, 2018, G-III Canada provided a bond to the CBSA to secure payment of the additional duties payable as a result of the reassessment required by the final audit report. The Company issued a bond in the amount of CAD$26.9 million ($20.9 million) representing customs duty and interest through December 31, 2017 that is claimed to be owed to the CBSA. In March 2018, the Company amended the duties filed for the month of January 2018 under the new valuation method. The additional duty claimed to be owed was amounted to CAD$1.4 million ($1.1 million) which is under review by the CBSA.

G-III Canada, based on the advice of counsel, believes it has positions that support its ability to receive a refund of amounts claimed to be owed to the CBSA on appeal and intends to vigorously contest the findings of the CBSA.