Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Sep. 28, 2013 | Nov. 01, 2013 | Nov. 01, 2013 | |
Common stock, Class A | Common stock, Class B | ||
Entity Registrant Name | 'RALPH LAUREN CORP | ' | ' |
Entity Central Index Key | '0001037038 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 28-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Current Fiscal Year End Date | '--03-29 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 60,459,130 | 29,881,276 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $839 | $974 |
Short-term investments | 572 | 325 |
Accounts receivable, net of allowances of $285 million and $245 million | 577 | 458 |
Inventories | 1,215 | 896 |
Income tax receivable | 34 | 29 |
Deferred Tax Assets, Net of Valuation Allowance | 119 | 120 |
Prepaid expenses and other current assets | 202 | 161 |
Total current assets | 3,558 | 2,963 |
Non-current investments | 7 | 81 |
Property and equipment, net | 1,280 | 932 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 22 | 22 |
Goodwill | 967 | 968 |
Intangible assets, net | 318 | 328 |
Other non-current assets | 114 | 124 |
Total assets | 6,266 | 5,418 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 283 | 267 |
Accounts payable | 219 | 147 |
Income tax payable | 22 | 43 |
Accrued expenses and other current liabilities | 694 | 664 |
Total current liabilities | 1,218 | 1,121 |
Long-term Debt | 300 | 0 |
Non-current liability for unrecognized tax benefits | 155 | 150 |
Other non-current liabilities | 602 | 362 |
Commitments and contingencies (Note 14) | ' | ' |
Total liabilities | 2,275 | 1,633 |
Equity: | ' | ' |
Additional paid-in-capital | 1,884 | 1,752 |
Retained earnings | 4,961 | 4,647 |
Treasury stock, Class A, at cost; 34.0 million and 32.6 million shares | -2,969 | -2,709 |
Accumulated other comprehensive income | 114 | 94 |
Total equity | 3,991 | 3,785 |
Total liabilities and equity | 6,266 | 5,418 |
Common stock, Class A | ' | ' |
Equity: | ' | ' |
Common stock | 1 | 1 |
Common stock, Class B | ' | ' |
Equity: | ' | ' |
Common stock | $0 | $0 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Accounts Receivable Reserves Allowances Current | $285 | $245 |
Common stock, Class A | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 94.5 | 93.6 |
Common stock, shares outstanding | 60.5 | 61 |
Treasury stock, shares | 34 | 32.6 |
Common stock, Class B | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 29.9 | 29.9 |
Common stock, shares outstanding | 29.9 | 29.9 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $1,872 | $1,816 | $3,486 | $3,367 |
Licensing revenue | 43 | 46 | 82 | 88 |
Net revenues | 1,915 | 1,862 | 3,568 | 3,455 |
Cost of Goods Sold | -831 | -767 | -1,480 | -1,368 |
Gross profit | 1,084 | 1,095 | 2,088 | 2,087 |
Other costs and expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses(a) | -779 | -741 | -1,514 | -1,434 |
Amortization of intangible assets | -10 | -6 | -19 | -13 |
Gain on acquisition of Chaps | 0 | 0 | 16 | 0 |
Total other operating expenses, net | -789 | -747 | -1,517 | -1,447 |
Operating income | 295 | 348 | 571 | 640 |
Foreign currency gains (losses) | 1 | 0 | -5 | -3 |
Interest expense | -7 | -6 | -12 | -11 |
Interest and other income, net | 2 | 2 | 4 | 3 |
Equity in gains (losses) of equity-method investees | -3 | -2 | -5 | -3 |
Income before provision for income taxes | 288 | 342 | 553 | 626 |
Provision for income taxes | -83 | -128 | -167 | -219 |
Net income | 205 | 214 | 386 | 407 |
Net income per common share: | ' | ' | ' | ' |
Basic | $2.28 | $2.34 | $4.27 | $4.44 |
Diluted | $2.23 | $2.29 | $4.17 | $4.32 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 90.4 | 91.3 | 90.6 | 91.7 |
Diluted | 92.2 | 93.4 | 92.6 | 94.2 |
Dividends declared per share | $0.40 | $0.40 | $0.80 | $0.80 |
(a) Includes total depreciation expense of: | ($56) | ($51) | ($107) | ($100) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $205 | $214 | $386 | $407 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 50 | 42 | 48 | 1 |
Net gains (losses) on derivative financial instruments | -18 | -9 | -23 | -3 |
Net gains (losses) on available-for-sale investments | 0 | 3 | -5 | 3 |
Other Comprehensive Income (Loss), Net of Tax | 32 | 36 | 20 | 1 |
Comprehensive income | $237 | $250 | $406 | $408 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $386 | $407 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 126 | 113 |
Deferred income tax expense (benefit) | -16 | 5 |
Equity in losses (gains) of equity-method investees | 5 | 3 |
Non-cash stock-based compensation expense | 43 | 43 |
Gain on acquisition of Chaps | -16 | 0 |
Excess tax benefits from stock-based compensation arrangements | -20 | -26 |
Other non-cash charges (benefits), net | 0 | -1 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -93 | -56 |
Inventories | -271 | -216 |
Accounts payable and accrued liabilities | 61 | 37 |
Income tax receivables and payables | -12 | -10 |
Deferred income | -11 | -16 |
Other balance sheet changes, net | 38 | 24 |
Net cash provided by (used in) operating activities | 220 | 307 |
Cash flows from investing activities: | ' | ' |
Acquisitions and ventures, net of cash acquired and purchase price settlements | -36 | -10 |
Purchases of investments | -644 | -609 |
Proceeds from sales and maturities of investments | 492 | 647 |
Capital expenditures | -214 | -117 |
Change in restricted cash deposits | -6 | 7 |
Net cash provided by (used in) investing activities | -408 | -82 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of long-term debt | 300 | 0 |
Payments of capital lease obligations | -5 | -4 |
Payments of dividends | -73 | -55 |
Repurchases of common stock, including shares surrendered for tax withholdings | -210 | -347 |
Prepayments of Common Stock Repurchases | ' | 26 |
Proceeds from exercise of stock options | 19 | 26 |
Excess tax benefits from stock-based compensation arrangements | 20 | ' |
Net cash provided by (used in) financing activities | 51 | -354 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 1 |
Net increase (decrease) in cash and cash equivalents | -135 | -128 |
Cash and cash equivalents at beginning of period | 974 | 672 |
Cash and cash equivalents at end of period | $839 | $544 |
Description_of_Business
Description of Business | 6 Months Ended |
Sep. 28, 2013 | |
Description of Business [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Ralph Lauren Corporation (“RLC”) is a global leader in the design, marketing, and distribution of premium lifestyle products, including men’s, women’s, and children’s apparel, accessories, fragrances, and home furnishings. RLC’s long-standing reputation and distinctive image have been consistently developed across an expanding number of products, brands, and international markets. RLC’s brand names include Ralph Lauren Women’s Collection, Purple Label, Black Label, Blue Label, Polo Ralph Lauren, RRL, Ralph Lauren Childrenswear, Lauren by Ralph Lauren, RLX Ralph Lauren, Denim & Supply Ralph Lauren, Ralph Lauren, Chaps, and Club Monaco, among others. RLC and its subsidiaries are collectively referred to herein as the “Company,” “we,” “us,” “our,” and “ourselves,” unless the context indicates otherwise. | |
The Company classifies its businesses into three segments: Wholesale, Retail, and Licensing. The Company’s wholesale sales are made principally to major department stores and specialty stores located mainly throughout North America, Europe, Asia, and Latin America. The Company also sells directly to consumers through its integrated retail channel, which includes retail stores located throughout North America, Europe, Asia, Australia, and New Zealand; concession-based shop-within-shops located in Asia, Australia, New Zealand, and Europe; and its retail e-commerce operations in North America, Europe, and Asia. The Company also licenses the right to unrelated third parties to operate retail stores and to use its various trademarks in connection with the manufacture and sale of designated products, such as apparel, eyewear, and fragrances, in specified geographic areas for specified periods. |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Sep. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Interim Financial Statements | |
These interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and are unaudited. In the opinion of management, such consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position, income, comprehensive income, and cash flows of the Company for the interim periods presented. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) have been condensed or omitted from this report as is permitted by the SEC’s rules and regulations. However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. | |
This report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended March 30, 2013 (the “Fiscal 2013 10-K”). | |
Basis of Consolidation | |
The unaudited interim consolidated financial statements present the financial position, income, comprehensive income, and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Fiscal Year | |
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2014 will end on March 29, 2014 and will be a 52-week period (“Fiscal 2014”). Fiscal year 2013 ended on March 30, 2013 and was also a 52-week period (“Fiscal 2013”). The second quarter of Fiscal 2014 ended on September 28, 2013 and was a 13-week period. The second quarter of Fiscal 2013 ended on September 29, 2012 and was also a 13-week period. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | |
Significant estimates inherent in the preparation of the consolidated financial statements include reserves for bad debt, customer returns, discounts, end-of-season markdowns, and operational chargebacks; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation and related expected forfeiture rates; reserves for restructuring; and accounting for business combinations, among others. | |
Reclassifications | |
Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. | |
Seasonality of Business | |
The Company’s business is typically affected by seasonal trends, with higher levels of wholesale sales in its second and fourth quarters and higher retail sales in its second and third quarters. These trends result primarily from the timing of seasonal wholesale shipments and key vacation travel, back-to-school, and holiday shopping periods in the Retail segment. In addition, fluctuations in sales, operating income, and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, the Company’s operating results and cash flows for the six months ended September 28, 2013 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue is recognized across all segments of the business when there is persuasive evidence of an arrangement, delivery has occurred, price has been fixed or is determinable, and collectability is reasonably assured. | |||||||||||||||||
Revenue within the Company’s Wholesale segment is recognized at the time title passes and risk of loss is transferred to customers. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdown allowances, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company’s historical estimates of these costs have not differed materially from actual results. | |||||||||||||||||
Retail store and concession-based shop-within-shop revenue is recognized net of estimated returns at the time of sale to customers. E-commerce revenue from sales of products ordered through the Company’s retail Internet sites is recognized upon delivery and receipt of the shipment by its customers. Such revenue is also reduced by an estimate of returns. | |||||||||||||||||
Gift cards issued by the Company are recorded as a liability until they are redeemed, at which point revenue is recognized. The Company recognizes income for unredeemed gift cards when the likelihood of a gift card being redeemed by a customer is remote and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. | |||||||||||||||||
Revenue from licensing arrangements is recognized when earned in accordance with the terms of the underlying agreements, generally based upon the higher of (i) contractually guaranteed minimum royalty levels or (ii) actual sales and royalty data, or estimates thereof, received from the Company’s licensees. | |||||||||||||||||
The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. | |||||||||||||||||
Shipping and Handling Costs | |||||||||||||||||
The costs associated with shipping goods to customers are reflected as a component of selling, general, and administrative (“SG&A”) expenses in the unaudited interim consolidated statements of income. Shipping costs were $9 million during each of the three-month periods ended September 28, 2013 and September 29, 2012, and $17 million during each of the six-month periods ended September 28, 2013 and September 29, 2012. The costs of preparing merchandise for sale, such as picking, packing, warehousing, and order charges (“handling costs”) are also included in SG&A expenses. Handling costs were $52 million and $91 million during the three-month and six-month periods ended September 28, 2013, respectively, and $38 million and $74 million during the three-month and six-month periods ended September 29, 2012, respectively. Shipping and handling costs billed to customers are included in revenue. | |||||||||||||||||
Net Income per Common Share | |||||||||||||||||
Basic net income per common share is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company’s Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the effects of outstanding stock options, restricted stock, restricted stock units ("RSUs"), and any other potentially dilutive financial instruments, only in the periods in which such effects are dilutive under the treasury stock method. | |||||||||||||||||
The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to shares used to calculate diluted net income per common share as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Basic shares | 90.4 | 91.3 | 90.6 | 91.7 | |||||||||||||
Dilutive effect of stock options, restricted stock and RSUs | 1.8 | 2.1 | 2 | 2.5 | |||||||||||||
Diluted shares | 92.2 | 93.4 | 92.6 | 94.2 | |||||||||||||
All earnings per share amounts have been calculated based on unrounded numbers. Options to purchase shares of the Company's common stock at an exercise price greater than the average market price of the common stock during the reporting period are anti-dilutive and therefore not included in the computation of diluted net income per common share. In addition, the Company has outstanding RSUs that are issuable only upon the achievement of certain service and/or performance goals. Performance-based restricted stock units are included in the computation of diluted shares only to the extent that the underlying performance conditions (and any applicable market condition modifiers) (i) are satisfied as of the end of the reporting period or (ii) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. As of September 28, 2013 and September 29, 2012, there were approximately 1.2 million and 1.3 million, respectively, additional shares issuable upon exercise of anti-dilutive options and contingent vesting of performance-based RSUs which were excluded from the diluted share calculations. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
In the normal course of business, the Company extends credit to wholesale customers that satisfy defined credit criteria. Accounts receivable, net is recorded at carrying value, which approximates fair value, and is presented in the Company's consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see Revenue Recognition for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. | |||||||||||||||||
A rollforward of the activity in the Company’s reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented below: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Beginning reserve balance | $ | 245 | $ | 228 | $ | 230 | $ | 247 | |||||||||
Amount charged against revenue to increase reserve | 219 | 191 | 379 | 329 | |||||||||||||
Amount credited against customer accounts to decrease reserve | (196 | ) | (172 | ) | (343 | ) | (323 | ) | |||||||||
Foreign currency translation | 2 | 4 | 4 | (2 | ) | ||||||||||||
Ending reserve balance | $ | 270 | $ | 251 | $ | 270 | $ | 251 | |||||||||
An allowance for doubtful accounts is determined through analysis of periodic aging of accounts receivable, assessments of collectability based on an evaluation of historical and anticipated trends, the financial condition of the Company’s customers, and an evaluation of the impact of economic conditions, among other factors. The Company’s allowance for doubtful accounts was $15 million as of both September 28, 2013 and March 30, 2013. The changes in the allowance for doubtful accounts were not material during the three-month and six-month periods ended September 28, 2013 and September 29, 2012. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
The Company sells its wholesale merchandise primarily to major department and specialty stores located mainly throughout North America, Europe, Asia, and Latin America, and extends credit based on an evaluation of each customer’s financial capacity and condition, usually without requiring collateral. In the Company’s wholesale business, concentration of credit risk is relatively limited due to the large number of customers and their dispersion across many geographic areas. However, the Company has three key wholesale customers that generate significant sales volume. During Fiscal 2013, the Company's sales to its largest wholesale customer, Macy's, Inc. ("Macy's"), accounted for approximately 12% of its total net revenues. Further, the Company's sales to its three key wholesale customers, including Macy's, represented approximately 20% of total net revenues during Fiscal 2013. As of September 28, 2013, these three key wholesale customers represented approximately 35% of gross accounts receivable. | |||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
The Company records all derivative financial instruments on its consolidated balance sheets at fair value. For derivative instruments that qualify for hedge accounting, the effective portion of changes in their fair value is either (i) offset against the changes in fair value of the hedged assets, liabilities, or firm commitments through earnings or (ii) recognized in equity as a component of accumulated other comprehensive income ("AOCI") until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows, respectively. | |||||||||||||||||
Each derivative instrument entered into by the Company that qualifies for hedge accounting is expected to be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument that is designated as a hedge, the Company formally documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the term of the instrument. To assess the effectiveness of derivative instruments that are designated as hedges, the Company uses regression analysis, a statistical method, to compare the change in the fair value of the derivative instrument to the change in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to continue to be highly effective in achieving offsetting changes in fair value or cash flows is assessed and documented by the Company on at least a quarterly basis. | |||||||||||||||||
To the extent that a derivative instrument designated as a cash flow hedge is not considered to be effective, any change in its fair value relating to such ineffectiveness is immediately recognized in earnings within foreign currency gains (losses). If it is determined that a derivative instrument has not been highly effective, and will continue not to be highly effective in hedging the designated exposure, hedge accounting is discontinued and further gains (losses) are recognized in earnings within foreign currency gains (losses). Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument previously recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the original hedging strategy, unless the forecasted transaction is no longer probable of occurring, in which case the accumulated amount is immediately recognized in earnings within foreign currency gains (losses). | |||||||||||||||||
As a result of the use of derivative instruments, the Company is exposed to the risk that the counterparties to such contracts will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The Company’s established policies and procedures for mitigating credit risk from derivative transactions include ongoing review and assessment of the creditworthiness of counterparties. The Company also enters into master netting arrangements with counterparties, when possible, to mitigate credit risk associated with its derivative instruments. In the event of default or termination (as such terms are defined within the respective master netting arrangement), these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including, among others, the failure to make timely payments. | |||||||||||||||||
The fair values of the Company’s derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, the Company classifies proceeds received or amounts paid upon the settlement of a derivative instrument in the same manner as the related item being hedged. | |||||||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||||||
The Company primarily enters into forward foreign currency exchange contracts as hedges to reduce its risks related to exchange rate fluctuations on inventory purchases, intercompany royalty payments made by certain of its international operations, intercompany contributions made to fund certain marketing efforts of its international operations, and other foreign currency-denominated operational cash flows. To the extent forward foreign currency exchange contracts designated as cash flow hedges are highly effective in offsetting changes in the value of the hedged items, the related gains (losses) are initially deferred in equity as a component of AOCI and subsequently recognized in the consolidated statements of income as follows: | |||||||||||||||||
• | Forecasted Inventory Purchases — Recognized as part of the cost of the inventory purchases being hedged within cost of goods sold when the related inventory is sold. | ||||||||||||||||
• | Intercompany Royalty Payments and Marketing Contributions — Recognized within foreign currency gains (losses) generally in the period in which the related payments or contributions being hedged are received or paid. | ||||||||||||||||
Hedge of a Net Investment in a Foreign Operation | |||||||||||||||||
Changes in the fair value of a derivative instrument or a non-derivative financial instrument (such as debt) that is designated as a hedge of a net investment in a foreign operation are reported in the same manner as a translation adjustment, to the extent it is effective as a hedge. In assessing the effectiveness of a non-derivative financial instrument that is designated as a hedge of a net investment, the Company uses the spot rate method of accounting to remeasure the impact of foreign currency exchange rate changes on both its foreign subsidiaries and the financial instrument. If the notional amount of the financial instrument designated as a hedge of a net investment is greater than the portion of the net investment being hedged, hedge ineffectiveness is recognized immediately in earnings within foreign currency gains (losses). To the extent the financial instrument remains effective, changes in its value are recorded in equity as foreign currency translation gains (losses), a component of AOCI, until the sale or liquidation of the hedged net investment. | |||||||||||||||||
Undesignated Hedges | |||||||||||||||||
All of the Company’s undesignated hedges are entered into to hedge specific economic risks, such as foreign currency exchange rate risk. Changes in the fair value of undesignated derivative instruments are immediately recognized in earnings within foreign currency gains (losses). | |||||||||||||||||
See Note 13 for further discussion of the Company’s derivative financial instruments. | |||||||||||||||||
Refer to Note 3 in the Fiscal 2013 10-K for a summary of all of the Company’s significant accounting policies. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 6 Months Ended |
Sep. 28, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
Disclosure of Offsetting Assets and Liabilities | |
In December 2011, the FASB issued new, expanded disclosure requirements for financial instruments surrounding an entity’s rights of offset and related counterparty arrangements as ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). ASU 2011-11 requires disclosure of both “gross” and “net” information for recognized financial instruments (including derivatives) that are (i) eligible for offset and presented “net” in the balance sheet or (ii) subject to enforceable master netting agreements, irrespective of whether an entity actually offsets and “net presents” such instruments in the balance sheet. ASU 2011-11 also requires disclosure of any collateral received or posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” which limited the scope of ASU 2011-11 to derivatives accounted for in accordance with ASC topic 815, “Derivatives and Hedging,” and securities borrowing and lending transactions. The Company adopted the provisions of ASU 2011-11 as of the beginning of the first quarter of Fiscal 2014, which resulted in expanded financial instrument disclosures (see Note 13) but did not have an impact on the Company's unaudited interim consolidated financial statements. | |
Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). ASU 2013-02 requires disclosure of significant amounts reclassified out of AOCI by component. If the amounts are required to be reclassified from AOCI to net income in their entirety in the same reporting period, the effect of such reclassifications on the relevant line items of net income must be presented either on the face of the financial statements or in the notes. For amounts that are not required to be reclassified to net income in their entirety in the same reporting period, cross-references to other disclosures that provide additional details about such reclassifications are required. ASU 2013-02 did not change the requirements for determining or reporting net income or OCI. The Company adopted the provisions of ASU 2013-02 as of the beginning of the first quarter of Fiscal 2014, which resulted in expanded OCI-related disclosures (see Note 16), but did not have an impact on the Company's unaudited interim consolidated financial statements. | |
Proposed Amendments to Current Accounting Standards | |
The FASB is currently working on amendments to existing accounting standards governing a number of areas including, but not limited to, accounting for leases. In May 2013, the FASB issued a new exposure draft, “Leases” (the “Exposure Draft”), which would replace the existing guidance in ASC topic 840, “Leases.” Under the Exposure Draft, among other changes in practice, a lessee's rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. Other significant provisions of the Exposure Draft include (i) defining the “lease term” to include the noncancellable period together with periods for which there is a significant economic incentive for the lessee to extend or not terminate the lease; (ii) requiring that the initial lease liability to be recorded on the balance sheet contemplates only those variable lease payments that depend on an index or that are in substance “fixed”; and (iii) a dual approach for determining whether lease expense is recognized on a straight-line or accelerated basis, depending on whether the lessee is expected to consume more than an insignificant portion of the leased asset's economic benefits. The comment period for the Exposure Draft ended on September 13, 2013. The FASB is considering the feedback received and plans to redeliberate all significant issues to determine the next steps. If and when effective, this proposed standard will likely have a significant impact on the Company's consolidated financial statements. However, as the standard-setting process is still ongoing, the Company is unable at this time to determine the impact this proposed change in accounting would have on its consolidated financial statements. |
Acquisitions_Acquisition
Acquisitions Acquisition | 6 Months Ended | ||||
Sep. 28, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
Acquisitions | |||||
Australia and New Zealand Licensed Operations Acquisition | |||||
On July 1, 2013, in connection with the transition of the Ralph Lauren-branded apparel and accessories business in Australia and New Zealand from a licensed to a wholly-owned operation, the Company acquired certain net assets from Oroton Group/PRL Australia ("Oroton") in exchange for an aggregate payment of approximately $15 million (the "Australia and New Zealand Licensed Operations Acquisition"). Oroton was the Company's licensee for Ralph Lauren-branded apparel and accessories in Australia and New Zealand. The Company funded the Australia and New Zealand Licensed Operations Acquisition with available cash on-hand. | |||||
The Company accounted for the Australia and New Zealand Licensed Operations Acquisition as a business combination during the second quarter of Fiscal 2014, with the operating results consolidated into the Company's operating results beginning on July 1, 2013. The acquisition cost of $15 million was allocated to the assets acquired and liabilities assumed based on the preliminary purchase price assessment of their respective fair values, as follows (in millions): | |||||
Inventory | $ | 9 | |||
Fixed assets | 4 | ||||
Customer relationship intangible asset | 3 | ||||
Other assets | 2 | ||||
Other liabilities | (3 | ) | |||
Fair value of net assets acquired | $ | 15 | |||
The customer relationship intangible asset was valued using the excess earnings method, which discounts the estimated after-tax cash flows associated with the existing base of customers as of the acquisition date, factoring in expected attrition of the existing customer base. The customer relationship intangible asset is being amortized over an estimated useful life of nine years. | |||||
Chaps Menswear License Acquisition | |||||
On April 10, 2013, in connection with the transition of the North American Chaps-branded men's sportswear business ("Chaps Menswear Business") from a licensed to a wholly-owned operation, the Company entered into an agreement with The Warnaco Group, Inc. (“Warnaco”), a subsidiary of PVH Corp. (“PVH”), to acquire certain net assets in exchange for an aggregate payment of approximately $18 million (the "Chaps Menswear License Acquisition"). Warnaco was the Company's licensee for the Chaps Menswear Business. The Company funded the Chaps Menswear License Acquisition during the first quarter of Fiscal 2014 with available cash on-hand. | |||||
The Company accounted for the Chaps Menswear License Acquisition as a business combination during the first quarter of Fiscal 2014. The acquisition cost was allocated to the assets acquired and liabilities assumed based on the purchase price assessment of their respective fair values, as follows (in millions): | |||||
Assets acquired: | |||||
Inventory | $ | 30 | |||
Accounts receivable | 19 | ||||
Licensed trademark intangible asset | 9 | ||||
Total assets acquired | 58 | ||||
Liabilities assumed: | |||||
Accounts payable | (22 | ) | |||
Other net liabilities | (2 | ) | |||
Total net liabilities assumed | (24 | ) | |||
Fair value of net assets acquired | 34 | ||||
Consideration paid | 18 | ||||
Gain on acquisition(a) | $ | 16 | |||
(a) The gain on acquisition represents the difference between the acquisition date fair value of net assets acquired and the contractually-defined purchase price under the Company's license agreement with Warnaco, which granted the Company the right to early-terminate the license upon PVH's acquisition of Warnaco in February 2013. | |||||
The licensed trademark intangible asset was valued using the excess earnings method, discounting the estimated after-tax cash flows associated with the Chaps men's sportswear licensed trademark as of the acquisition date, factoring in market participant-based operating and cash flow assumptions. The reacquired licensed trademark intangible asset is being amortized over a nine-month period through December 31, 2013, representing the remaining term of the prior license agreement that was terminated in connection with this acquisition. | |||||
Transaction costs of $3 million were expensed as incurred and classified within SG&A expenses in the unaudited interim consolidated statement of income for the six months ended September 28, 2013. The operating results of the Chaps Menswear Business have been consolidated into the Company's operating results beginning on April 10, 2013. |
Inventories
Inventories | 6 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories consist of the following: | |||||||||||||
September 28, | March 30, | September 29, | |||||||||||
2013 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Raw materials | $ | 2 | $ | 5 | $ | 5 | |||||||
Work-in-process | 1 | 1 | 1 | ||||||||||
Finished goods | 1,212 | 890 | 1,054 | ||||||||||
Total inventories | $ | 1,215 | $ | 896 | $ | 1,060 | |||||||
Property_and_Equipment
Property and Equipment | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment, net consists of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Land and improvements | $ | 13 | $ | 10 | |||||
Buildings and improvements | 176 | 130 | |||||||
Furniture and fixtures | 639 | 601 | |||||||
Machinery and equipment | 208 | 189 | |||||||
Capitalized software | 331 | 252 | |||||||
Leasehold improvements | 1,006 | 934 | |||||||
Construction in progress | 331 | 137 | |||||||
2,704 | 2,253 | ||||||||
Less: accumulated depreciation | (1,424 | ) | (1,321 | ) | |||||
Property and equipment, net | $ | 1,280 | $ | 932 | |||||
Other_Assets_and_Liabilities
Other Assets and Liabilities | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Other Assets and Liabilities | ' | ||||||||
Other Assets and Liabilities | |||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Other taxes receivable | $ | 40 | $ | 31 | |||||
Prepaid rent expense | 30 | 28 | |||||||
Deferred rent receivable | 23 | 17 | |||||||
Derivative financial instruments | 20 | 15 | |||||||
Prepaid samples | 17 | 14 | |||||||
Other prepaid expenses and current assets | 72 | 56 | |||||||
Total prepaid expenses and other current assets | $ | 202 | $ | 161 | |||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Accrued operating expenses | $ | 177 | $ | 172 | |||||
Accrued inventory | 160 | 93 | |||||||
Accrued payroll and benefits | 134 | 199 | |||||||
Other taxes payable | 60 | 51 | |||||||
Accrued capital expenditures | 56 | 53 | |||||||
Deferred income | 40 | 40 | |||||||
Dividends payable | 36 | 36 | |||||||
Other accrued expenses and current liabilities | 31 | 20 | |||||||
Total accrued expenses and other current liabilities | $ | 694 | $ | 664 | |||||
Other non-current liabilities consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Capital lease obligations | $ | 263 | $ | 38 | |||||
Deferred rent obligations | 208 | 189 | |||||||
Deferred income | 48 | 58 | |||||||
Deferred tax liabilities | 28 | 30 | |||||||
Other non-current liabilities | 55 | 47 | |||||||
Total other non-current liabilities | $ | 602 | $ | 362 | |||||
Restructuring
Restructuring | 6 Months Ended |
Sep. 28, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Restructuring | ' |
Restructuring | |
The Company has recorded restructuring liabilities relating to various business growth and cost-savings initiatives. A description of the nature of significant restructuring activity and related costs is summarized below. | |
Rugby Closure Plan | |
In October 2012, the Company approved a plan to wind-down its Rugby brand retail operations (the “Rugby Closure Plan”). This decision was primarily based on the results of an analysis of the brand concept, as well as an opportunity for the Company to reallocate its resources related to these operations to support other high-growth business opportunities and initiatives. In connection with the Rugby Closure Plan, all of the Company's 14 global freestanding Rugby stores (certain of which have been converted to other Ralph Lauren brand concepts) and its related domestic e-commerce site located at Rugby.com have been closed as of September 28, 2013. The Rugby Closure Plan also resulted in a reduction in workforce of approximately 160 employees. | |
In connection with the Rugby Closure Plan, the Company recorded $7 million in restructuring charges during Fiscal 2013, $4 million of which remained payable as of March 30, 2013. There were no additional restructuring charges recognized by the Company in connection with the Rugby Closure Plan during the six months ended September 28, 2013. During the six months ended September 28, 2013, the Company paid $2 million under this plan, which reduced the remaining restructuring liability at September 28, 2013 to $2 million, which is expected to be settled during the second half of Fiscal 2014. |
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||
Income Taxes | ' | |||||||||||||||||
Income Taxes | ||||||||||||||||||
Tax Rate Reconciliation | ||||||||||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are set forth below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Provision for income taxes at the U.S. federal statutory rate | $ | 101 | $ | 120 | $ | 194 | $ | 219 | ||||||||||
Increase (decrease) due to: | ||||||||||||||||||
State and local income taxes, net of federal benefit | 8 | 8 | 14 | 15 | ||||||||||||||
Foreign income taxed at different rates, net of U.S. foreign tax | (28 | ) | (19 | ) | (44 | ) | (35 | ) | ||||||||||
Unrecognized tax benefits and settlements of tax examinations | 2 | 18 | 3 | 18 | ||||||||||||||
Other | — | 1 | — | 2 | ||||||||||||||
Total provision for income taxes | $ | 83 | $ | 128 | $ | 167 | $ | 219 | ||||||||||
The Company's effective tax rate was lower than the statutory rate during the three-month and six-month periods ended September 28, 2013, principally as a result of the proportion of earnings generated in lower taxed foreign jurisdictions versus the U.S., as well as an income tax benefit resulting from the restructuring of certain of the Company's foreign operations in Fiscal 2014. | ||||||||||||||||||
Uncertain Income Tax Benefits | ||||||||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for the three-month and six-month periods ended September 28, 2013 and September 29, 2012 is presented below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Unrecognized tax benefits beginning balance | $ | 101 | $ | 126 | $ | 100 | $ | 129 | ||||||||||
Additions related to current period tax positions | 1 | 1 | 2 | 2 | ||||||||||||||
Additions related to prior period tax positions | — | 2 | 1 | 2 | ||||||||||||||
Reductions related to prior period tax positions | — | (1 | ) | (2 | ) | (2 | ) | |||||||||||
Reductions related to settlements with taxing authorities | (1 | ) | — | (1 | ) | — | ||||||||||||
Changes related to foreign currency translation | 1 | 2 | 2 | (1 | ) | |||||||||||||
Unrecognized tax benefits ending balance | $ | 102 | $ | 130 | $ | 102 | $ | 130 | ||||||||||
The Company classifies interest and penalties related to unrecognized tax benefits as part of its provision for income taxes. A reconciliation of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for the three-month and six-month periods ended September 28, 2013 and September 29, 2012 is presented below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Accrued interest and penalties beginning balance | $ | 50 | $ | 38 | $ | 50 | $ | 39 | ||||||||||
Net additions charged to expense | 2 | 19 | (a) | 3 | 20 | (a) | ||||||||||||
Reductions related to prior period tax positions | — | — | (1 | ) | (2 | ) | ||||||||||||
Changes related to foreign currency translation | 1 | — | 1 | — | ||||||||||||||
Accrued interest and penalties ending balance | $ | 53 | $ | 57 | $ | 53 | $ | 57 | ||||||||||
(a) Includes a reserve of $17 million for an interest assessment on a prior year withholding tax. No underlying tax exposure exists. The interest assessed was not material to the Company's consolidated financial statements in any period. | ||||||||||||||||||
The total amount of unrecognized tax benefits, including interest and penalties, was $155 million and $150 million as of September 28, 2013 and March 30, 2013, respectively, and is included within non-current liability for unrecognized tax benefits in the consolidated balance sheets. The total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate was $121 million and $115 million as of September 28, 2013 and March 30, 2013, respectively. | ||||||||||||||||||
Future Changes in Unrecognized Tax Benefits | ||||||||||||||||||
The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. The Company is currently in discussions with certain tax jurisdictions with regard to specific ongoing tax audits. The successful resolution of such audits could cause the Company's balance of gross unrecognized tax benefits, excluding interest and penalties, to change significantly during the next twelve months. However, the resolution and potential outcome of these ongoing tax audits is highly uncertain, and as such, an estimate of the range of the reasonably possible change cannot be made at this time. | ||||||||||||||||||
The Company files tax returns in the U.S. federal and various state, local, and foreign jurisdictions. With a few exceptions, the Company is no longer subject to examinations by the relevant tax authorities for years prior to Fiscal 2004. |
Debt
Debt | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
Debt consists of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
2.125% Senior Notes due September 26, 2018 | $ | 300 | $ | — | |||||
4.5% Euro-denominated notes due October 4, 2013(a) | 283 | 267 | |||||||
Total debt | 583 | 267 | |||||||
Less: current maturities of debt(a) | 283 | 267 | |||||||
Total long-term debt | $ | 300 | $ | — | |||||
(a) Principal amount was repaid upon maturity subsequent to the end of the second quarter of Fiscal 2014. | |||||||||
Senior Notes | |||||||||
In September 2013, the Company completed a public offering and issued $300 million aggregate principal amount of unsecured senior notes due September 26, 2018 (the "Senior Notes") at a price equal to 99.896% of their principal amount. The Senior Notes bear interest at a fixed rate of 2.125%, payable semi-annually. The proceeds from this offering will be used for general corporate purposes, including the repayment of the Company's €209 million principal amount outstanding of the 4.5% Euro-denominated notes (the "Euro Debt"), which matured on October 4, 2013. | |||||||||
The Company has the option to redeem the Senior Notes, in whole or in part, at any time at a price equal to accrued but unpaid interest on, but not including, the redemption date, plus the greater of (i) 100% of the principal amount of Senior Notes to be redeemed or (ii) the sum of the present value of Remaining Scheduled Payments, as defined in the indenture governing the Senior Notes (the "Indenture"). The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. | |||||||||
Revolving Credit Facilities | |||||||||
Global Credit Facility | |||||||||
The Company has a credit facility that provides for a $500 million senior unsecured revolving line of credit through March 2016, and is also used to support the issuance of letters of credit (the “Global Credit Facility”). Borrowings under the Global Credit Facility may be denominated in U.S. Dollars and other currencies, including Euros, Hong Kong Dollars, and Japanese Yen. The Company has the ability to expand its borrowing availability to $750 million, subject to the agreement of one or more new or existing lenders under the facility to increase their commitments. There are no mandatory reductions in borrowing ability throughout the term of the Global Credit Facility. As of September 28, 2013, there were no borrowings outstanding under the Global Credit Facility and the Company was contingently liable for $9 million of outstanding letters of credit. | |||||||||
The Global Credit Facility contains a number of covenants that, among other things, restrict the Company’s ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the “leverage ratio”) of no greater than 3.75 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding plus eight times consolidated rent expense for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, and (iv) consolidated rent expense. As of September 28, 2013, no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company’s Global Credit Facility. | |||||||||
Pan-Asia Credit Facilities | |||||||||
Certain of the Company's subsidiaries in Asia have uncommitted credit facilities with regional branches of JPMorgan Chase (the “Banks”) in China, Malaysia, South Korea, and Taiwan (the “Pan-Asia Credit Facilities”). These credit facilities are subject to annual renewal and may be used to fund general working capital and corporate needs of the Company's operations in the respective regions. Borrowings under the Pan-Asia Credit Facilities are guaranteed by the Company and are granted at the sole discretion of the Banks, subject to availability of the Banks' funds and satisfaction of certain regulatory requirements. The Pan-Asia Credit Facilities do not contain any financial covenants. The Company's Pan-Asia Credit Facilities by country are as follows: | |||||||||
• | Chinese Credit Facility — provides Ralph Lauren Trading (Shanghai) Co., Ltd. with a revolving line of credit of up to 100 million Chinese Renminbi (approximately $16 million) through April 9, 2014, and may also be used to support bank guarantees. | ||||||||
• | Malaysia Credit Facility — provides Ralph Lauren (Malaysia) Sdn Bhd with a revolving line of credit of up to 16 million Malaysian Ringgit (approximately $5 million) through September 17, 2014. | ||||||||
• | South Korea Credit Facility — provides Ralph Lauren (Korea) Ltd. with a revolving line of credit of up to 11 billion South Korean Won (approximately $10 million) through October 31, 2014. | ||||||||
• | Taiwan Credit Facility — provides Ralph Lauren (Hong Kong) Retail Company Ltd., Taiwan Branch with a revolving line of credit of up to 59 million New Taiwan Dollars (approximately $2 million) through October 15, 2014. | ||||||||
As of September 28, 2013, there were no borrowings outstanding under any of the Pan-Asia Credit Facilities. | |||||||||
Refer to Note 14 of the Fiscal 2013 10-K for additional disclosure of the terms and conditions of the Company’s debt and credit facilities. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
U.S. GAAP establishes a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: | |||||||||||||||||
• | Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||
• | Level 2 — inputs to the valuation methodology based on quoted prices for similar assets and liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable. | ||||||||||||||||
• | Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement. | ||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities that are measured and recorded at fair value on a recurring basis: | |||||||||||||||||
September 28, | March 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
(millions) | |||||||||||||||||
Financial assets recorded at fair value(a): | |||||||||||||||||
Government bonds — U.S. | $ | 32 | $ | 29 | |||||||||||||
Government bonds — non-U.S. | — | 92 | |||||||||||||||
Corporate bonds — non-U.S. | — | 82 | |||||||||||||||
Variable rate municipal securities — U.S. | — | 17 | |||||||||||||||
Auction rate securities | 2 | 2 | |||||||||||||||
Derivative financial instruments | 24 | 15 | |||||||||||||||
Total | $ | 58 | $ | 237 | |||||||||||||
Financial liabilities recorded at fair value(b): | |||||||||||||||||
Derivative financial instruments | $ | 7 | $ | 5 | |||||||||||||
Total | $ | 7 | $ | 5 | |||||||||||||
(a) | Based on Level 1 measurements, except for auction rate securities and derivative financial instruments, which are based on Level 2 measurements. | ||||||||||||||||
(b) | Based on Level 2 measurements. | ||||||||||||||||
To the extent the Company invests in government bonds, corporate bonds, or variable rate municipal securities, such investments are classified as available-for-sale securities and are recorded at fair value in its consolidated balance sheets based upon quoted prices in active markets. | |||||||||||||||||
The Company’s auction rate securities are classified as available-for-sale securities and are recorded at fair value in its consolidated balance sheets. Third-party pricing institutions may value auction rate securities at par, which may not necessarily reflect prices that would be obtained if sold in the current market. When quoted market prices are unobservable, fair value is estimated based on a number of known factors and external pricing data, including known maturity dates, the coupon rate based upon the most recent reset market clearing rate, the price/yield representing the average rate of recent successfully traded securities, and the total principal balance of each security. | |||||||||||||||||
The Company’s derivative financial instruments are recorded at fair value in its consolidated balance sheets and are valued using a pricing model, which is primarily based on market observable external inputs, including forward and spot exchange rates for foreign currencies, and considers the impact of the Company’s own credit risk, if any. Changes in counterparty credit risk are also considered in the valuation of derivative financial instruments. | |||||||||||||||||
The Company’s cash and cash equivalents, restricted cash, and time deposits are recorded at carrying value, which approximates fair value based on Level 1 measurements. | |||||||||||||||||
The Company’s debt obligations are recorded at their carrying values in its consolidated balance sheets, which may differ from their fair values. The carrying value of the Euro Debt is adjusted for any foreign currency fluctuations, any unamortized discount, and the unamortized fair value adjustment associated with the early termination of an interest rate swap that was designated as a fair value hedge. The carrying value of the Senior Notes is adjusted for any unamortized discount. The fair values of the Company's debt obligations are estimated based on external pricing data, including available quoted market prices of these debt instruments, and of comparable debt instruments with similar interest rates, credit ratings, and trading frequency, among other factors. The following table summarizes the carrying values and the estimated fair values of the Company’s debt obligations: | |||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value(a) | Value | Value(a) | ||||||||||||||
(millions) | |||||||||||||||||
2.125% Senior Notes | $ | 300 | $ | 302 | N/A | N/A | |||||||||||
Euro Debt | $ | 283 | $ | 282 | $ | 267 | $ | 272 | |||||||||
(a) | Based on Level 2 measurements. | ||||||||||||||||
Unrealized gains or losses on the Company’s debt instruments do not result in the realization or expenditure of cash, unless the debt is retired prior to maturity. | |||||||||||||||||
Non-financial Assets and Liabilities | |||||||||||||||||
The Company’s non-financial assets, which primarily consist of goodwill, other intangible assets, and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial assets are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering external market participant assumptions. | |||||||||||||||||
No goodwill impairment charges were recorded during either of the six-month periods ended September 28, 2013 or September 29, 2012. The Company performed its annual goodwill impairment assessment using a qualitative approach as of the beginning of the second quarter of Fiscal 2014. In performing the assessment, the Company identified and considered the significance of relevant key factors, events, and circumstances that affected the fair values and/or carrying amounts of its reporting units. These factors included external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as the Company's actual and planned financial performance. Additionally, the results of the Company's most recent quantitative goodwill impairment test were also considered, which indicated that the fair values of its reporting units significantly exceeded their respective carrying values. Based on the results its qualitative goodwill impairment assessment, the Company concluded that it is not more likely than not that the fair values of its reporting units are less than their respective carrying values, and there are no reporting units at risk of impairment. |
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||||||
The Company is exposed to changes in foreign currency exchange rates relating to certain anticipated cash flows from its international operations and potential changes in the value of reported net assets of certain of its foreign operations. Consequently, the Company periodically uses derivative financial instruments to manage such risks. The Company does not enter into derivative transactions for speculative or trading purposes. | |||||||||||||||||||||||||||||||||
The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in the consolidated balance sheets as of September 28, 2013 and March 30, 2013: | |||||||||||||||||||||||||||||||||
Notional Amounts | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||
Derivative Instrument(a) | September 28, 2013 | March 30, 2013 | September 28, | March 30, | September 28, | March 30, | |||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||||||||||
Line(b) | Line(b) | Line(b) | Line(b) | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | 339 | $ | 366 | PP | $ | 2 | PP | $ | 14 | (c) | $ | (4 | ) | AE | $ | (2 | ) | |||||||||||||||
FC — Other(d) | 147 | 25 | PP | 1 | — | — | AE | (2 | ) | AE | (1 | ) | |||||||||||||||||||||
NI — Euro Debt | — | 140 | — | (e) | — | (e) | — | (e) | — | (e) | |||||||||||||||||||||||
Total Designated Hedges | $ | 486 | $ | 531 | $ | 3 | $ | 14 | $ | (6 | ) | $ | (3 | ) | |||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||
FC — Other(f) | $ | 446 | $ | 270 | (g) | $ | 21 | PP | $ | 1 | AE | $ | (1 | ) | AE | $ | (2 | ) | |||||||||||||||
Total Hedges | $ | 932 | $ | 801 | $ | 24 | $ | 15 | $ | (7 | ) | $ | (5 | ) | |||||||||||||||||||
(a) | FC =orward foreign currency exchange contracts; NI =et Investment Hedge; Euro Debt =uro-denominated 4.5% notes due October 4, 2013. | ||||||||||||||||||||||||||||||||
(b) | PP =repaid expenses and other current assets; AE =ccrued expenses and other current liabilities; ONCL =ther non-current liabilities; ONCA =ther non-current assets. | ||||||||||||||||||||||||||||||||
(c) | $3 million included within AE and $1 million included within ONCL. | ||||||||||||||||||||||||||||||||
(d) | Primarily related to designated hedges of foreign currency-denominated intercompany royalty payments and marketing contributions, and other net operational exposures. | ||||||||||||||||||||||||||||||||
(e) | As of March 30, 2013, a portion of the Euro Debt's principal amount was designated as a net investment hedge, and the entire principal amount has been de-designated as of September 28, 2013. See Note 12 for a summary of the carrying values and the estimated fair values of the Euro Debt as of September 28, 2013 and March 30, 2013. | ||||||||||||||||||||||||||||||||
(f) | Primarily related to undesignated hedges of foreign currency-denominated intercompany loans, third-party debt obligations, and other net operational exposures. | ||||||||||||||||||||||||||||||||
(g) | $17 million included within PP and $4 million included within ONCA. | ||||||||||||||||||||||||||||||||
The Company records and presents the fair values of all of its derivative assets and liabilities in the consolidated balance sheets on a gross basis, even though they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its forward foreign currency exchange contracts on a net basis in accordance with the terms of each of its master netting arrangements, as spread across eight separate counterparties, the amounts presented in the consolidated balance sheets as of September 28, 2013 and March 30, 2013 would be adjusted from the current gross presentation as detailed in the following table: | |||||||||||||||||||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||||||||||||||||||
Derivative Instrument | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to | Net | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to | Net | |||||||||||||||||||||||||||
Master Netting Agreements | Amount | Master Netting Agreements | Amount | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
FC — Derivative assets | $ | 24 | $ | (2 | ) | $ | 22 | $ | 15 | $ | (3 | ) | $ | 12 | |||||||||||||||||||
FC — Derivative liabilities | $ | (7 | ) | $ | 2 | $ | (5 | ) | $ | (5 | ) | $ | 3 | $ | (2 | ) | |||||||||||||||||
The Company's master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. Refer to Note 3 for further discussion of the Company’s master netting arrangements. | |||||||||||||||||||||||||||||||||
The following tables summarize the gross impact of the effective portion of gains and losses from the Company's derivative instruments on its unaudited interim consolidated financial statements for the three-month and six-month periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Gains (Losses) Recognized in OCI | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | (7 | ) | $ | (1 | ) | $ | (8 | ) | $ | 8 | ||||||||||||||||||||||
FC — Other | (1 | ) | (1 | ) | (1 | ) | (4 | ) | |||||||||||||||||||||||||
$ | (8 | ) | $ | (2 | ) | $ | (9 | ) | $ | 4 | |||||||||||||||||||||||
Designated Hedge of Net Investment:(a) | |||||||||||||||||||||||||||||||||
Euro Debt | $ | 1 | $ | (4 | ) | $ | — | $ | 10 | ||||||||||||||||||||||||
Total Designated Hedges | $ | (7 | ) | $ | (6 | ) | $ | (9 | ) | $ | 14 | ||||||||||||||||||||||
Gains (Losses) Reclassified from AOCI to Earnings | Location of Gains (Losses) Reclassified from | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | AOCI to Earnings | |||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | 1 | $ | 8 | $ | 6 | $ | 11 | Cost of goods sold | ||||||||||||||||||||||||
FC — Other | (1 | ) | — | (1 | ) | 2 | Foreign currency gains (losses) | ||||||||||||||||||||||||||
$ | — | $ | 8 | $ | 5 | $ | 13 | ||||||||||||||||||||||||||
(a) | Amounts would be recognized as a gain (loss) on the sale or liquidation of the hedged net investment. | ||||||||||||||||||||||||||||||||
During the six months ended September 28, 2013, the Company also recorded a foreign currency gain of $2 million associated with the discontinuance of certain cash flow hedges, as the related forecasted transactions were no longer probable of occurring. | |||||||||||||||||||||||||||||||||
Over the next twelve months, it is expected that approximately $2 million of net gains deferred in AOCI related to derivative financial instruments as of September 28, 2013 will be recognized in earnings. No material gains or losses relating to ineffective hedges were recognized during any of the fiscal periods presented. | |||||||||||||||||||||||||||||||||
The following table summarizes the impact of gains and losses from the Company's undesignated hedge contracts on its unaudited interim consolidated statements of income for the three-month and six-month periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Gains (Losses) Recognized in Earnings | Location of Gains (Losses) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Recognized in Earnings | |||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||
FC — Other | $ | 10 | $ | (3 | ) | $ | 18 | $ | (5 | ) | Foreign currency gains (losses) | ||||||||||||||||||||||
Total Undesignated Hedges | $ | 10 | $ | (3 | ) | $ | 18 | $ | (5 | ) | |||||||||||||||||||||||
The following is a summary of the Company’s risk management strategies and the effect of those strategies on its unaudited interim consolidated financial statements. | |||||||||||||||||||||||||||||||||
Foreign Currency Risk Management | |||||||||||||||||||||||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||||||||||||||||||||||
The Company primarily enters into forward foreign currency exchange contracts as hedges to reduce its risk from exchange rate fluctuations on inventory purchases made in an entity's non-functional currency, intercompany royalty payments made by certain of its international operations, intercompany contributions to fund certain marketing efforts of its international operations, interest payments made in connection with outstanding debt, and other foreign currency-denominated operational cash flows. As part of its overall strategy to manage the level of exposure to the risk of foreign currency exchange rate fluctuations, primarily to changes in the value of the Euro, the Japanese Yen, the Hong Kong Dollar, the South Korean Won, the British Pound Sterling, the Australian Dollar, and the Vietnamese Dong, the Company hedges a portion of its foreign currency exposures anticipated over a two-year period. In doing so, the Company uses foreign currency exchange forward contracts that generally have maturities of three months to two years to provide continuing coverage throughout the hedging period. | |||||||||||||||||||||||||||||||||
Hedge of Net Investment in Certain European Subsidiaries | |||||||||||||||||||||||||||||||||
Historically, the Company designated the entire €209 million principal amount outstanding of its Euro Debt as a hedge of its net investment in certain of its European subsidiaries. Accordingly, changes in the Euro Debt's carrying value resulting from fluctuations in the Euro exchange rate have historically been reported in equity as a component of AOCI, as the debt has been a highly effective hedge. As of September 28, 2013, in connection with the execution of undesignated hedge contracts during Fiscal 2013 and Fiscal 2014 to fully hedge the repayment of the Euro Debt, the entire principal amount of this hedge has been de-designated. Upon de-designation, changes in the Euro Debt's carrying value resulting from fluctuations in the Euro exchange rate were recorded in earnings within foreign currency gains (losses), and were largely offset by changes in the fair values of the related undesignated forward foreign currency exchange contracts. | |||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
The following table summarizes the Company’s short-term and non-current investments recorded in its consolidated balance sheets as of September 28, 2013 and March 30, 2013: | |||||||||||||||||||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||||||||||||||||||
Type of Investment | Short-term | Non-current | Total | Short-term | Non-current | Total | |||||||||||||||||||||||||||
< 1 year | 1 - 3 years | < 1 year | 1 - 3 years | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||||||||||
Government bonds — U.S. | $ | 27 | $ | 5 | $ | 32 | $ | 21 | $ | 8 | $ | 29 | |||||||||||||||||||||
Government bonds — non-U.S. | — | — | — | 67 | 25 | 92 | |||||||||||||||||||||||||||
Corporate bonds — non-U.S. | — | — | — | 36 | 46 | 82 | |||||||||||||||||||||||||||
Variable rate municipal securities — U.S. | — | — | — | 17 | — | 17 | |||||||||||||||||||||||||||
Auction rate securities(a) | — | 2 | 2 | — | 2 | 2 | |||||||||||||||||||||||||||
Total available-for-sale investments | $ | 27 | $ | 7 | $ | 34 | $ | 141 | $ | 81 | $ | 222 | |||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||
Time deposits | $ | 545 | $ | — | $ | 545 | $ | 184 | $ | — | $ | 184 | |||||||||||||||||||||
Total Investments | $ | 572 | $ | 7 | $ | 579 | $ | 325 | $ | 81 | $ | 406 | |||||||||||||||||||||
(a) | Auction rate securities have characteristics similar to short-term investments. However, the Company has classified these securities as non-current investments in its consolidated balance sheets as current market conditions call into question its ability to redeem these investments for cash within the next twelve months. | ||||||||||||||||||||||||||||||||
No significant realized or unrealized gains or losses on available-for-sale investments or other-than-temporary impairment charges were recorded in any of the fiscal periods presented. Refer to Note 16 for further detail. | |||||||||||||||||||||||||||||||||
See Note 3 to the Fiscal 2013 10-K for further discussion of the Company’s accounting policies relating to its investments. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Lease Obligations | |
During the first quarter of Fiscal 2014, the Company entered into a build-to-suit lease agreement for a new flagship store on Fifth Avenue in New York City, which will feature a full assortment of Polo-branded apparel and accessories. The total commitment related to this lease is $235 million, with minimum lease payments of $25 million due each year from Fiscal 2015 through Fiscal 2019, and aggregate minimum lease payments of $110 million for Fiscal 2020 through Fiscal 2023. On July 1, 2013, the Company took possession of this property and recorded a $230 million asset as construction in progress within property and equipment and a corresponding capital lease obligation within its unaudited interim consolidated balance sheet. | |
Debt Obligations | |
In September 2013, the Company completed a $300 million public offering of 2.125% Senior Notes due September 26, 2018 (see Note 11). The Company's aggregate interest obligation related to this debt is $32 million, with interest payable semi-annually. | |
Wathne Imports Litigation | |
On August 19, 2005, Wathne Imports, Ltd. (“Wathne”), the Company's then domestic licensee for luggage and handbags, filed a complaint in the U.S. District Court in the Southern District of New York against the Company and Mr. Ralph Lauren, its Chairman and Chief Executive Officer, asserting, among other things, federal trademark law violations, breach of contract, breach of obligations of good faith and fair dealing, fraud, and negligent misrepresentation. The complaint originally sought, among other relief, injunctive relief, compensatory damages in excess of $250 million, and punitive damages of not less than $750 million. On September 13, 2005, Wathne withdrew this complaint from the U.S. District Court and filed a complaint in the Supreme Court of the State of New York, New York County, making substantially the same allegations and claims (excluding the federal trademark claims), and seeking similar relief. On February 1, 2006, the Court granted the Company's motion to dismiss all of the causes of action, including the cause of action against Mr. Lauren, except for breach of contract related claims, and denied Wathne's motion for a preliminary injunction. Following some discovery, the Company moved for summary judgment on the remaining claims and Wathne cross-moved for partial summary judgment. In an April 11, 2008 Decision and Order, the Court granted the Company's summary judgment motion to dismiss most of the claims against the Company, and denied Wathne's cross-motion for summary judgment. Wathne appealed the dismissal of its claims to the Appellate Division of the Supreme Court. Following a hearing on May 19, 2009, the Appellate Division issued a Decision and Order on June 9, 2009 which, in large part, affirmed the lower Court's ruling. | |
The Company subsequently made a motion to exclude Wathne's proposed expert's damages report and, on January 23, 2012, the Court granted its motion. Wathne then appealed the ruling to the Appellate Division and, on October 18, 2012, the Appellate Division reversed the order of the lower Court. At this time, the trial date has not yet been scheduled and the Company intends to continue to contest the remaining claims and dispute any alleged damages in this lawsuit vigorously. Management does not expect that the ultimate resolution of this matter will have a material adverse effect on the Company's consolidated financial statements. | |
Other Matters | |
The Company is otherwise involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to its business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, and employee relations. The Company believes that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on its financial statements. However, the Company’s assessment of the current litigation or other legal claims could change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact which are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims. | |
In the normal course of business, the Company enters into agreements that provide general indemnifications. The Company has not made any significant indemnification payments under such agreements in the past, and believes that the likelihood of incurring such obligations in the future is remote. |
Equity
Equity | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Equity | ' | ||||||||
Equity | |||||||||
Summary of Changes in Equity | |||||||||
Six Months Ended | |||||||||
September 28, | September 29, | ||||||||
2013 | 2012 | ||||||||
(millions) | |||||||||
Balance at beginning of period | $ | 3,785 | $ | 3,653 | |||||
Comprehensive income | 406 | 408 | |||||||
Dividends declared | (72 | ) | (73 | ) | |||||
Repurchases of common stock | (210 | ) | (347 | ) | |||||
Stock-based compensation | 43 | 43 | |||||||
Shares issued and tax benefits recognized pursuant to stock-based | 39 | 52 | |||||||
compensation plans | |||||||||
Balance at end of period | $ | 3,991 | $ | 3,736 | |||||
Common Stock Repurchase Program | |||||||||
During the six months ended September 28, 2013, 1.1 million shares of Class A common stock were repurchased by the Company at a total cost of $200 million under its common stock repurchase program. The total cost of repurchased shares included two separate $50 million prepayments made in March 2013 and June 2013 pursuant to share repurchase programs with third-party financial institutions, which resulted in the delivery of 0.6 million shares during the six months ended September 28, 2013, based on the volume-weighted average market price of the Company's Class A common stock over the programs' respective 93-day repurchase terms, less a per share discount. The remaining availability under the Company’s common stock repurchase program was approximately $427 million as of September 28, 2013. | |||||||||
In addition, during the six months ended September 28, 2013, 0.4 million shares of Class A common stock at a cost of $60 million were surrendered to, or withheld by, the Company in satisfaction of withholding taxes in connection with the vesting of awards under the Company’s 1997 Long-Term Stock Incentive Plan, as amended (the “1997 Incentive Plan”), and its 2010 Long-Term Stock Incentive Plan, as amended (the “2010 Incentive Plan”). | |||||||||
During the six months ended September 29, 2012, 2.0 million shares of Class A common stock were repurchased by the Company at a cost of $300 million under its common stock repurchase program. In addition, 0.4 million shares of Class A common stock at a cost of $47 million were surrendered to, or withheld by, the Company in satisfaction of withholding taxes in connection with the vesting of awards under the 1997 Incentive Plan and the 2010 Incentive Plan. | |||||||||
Repurchased and surrendered shares are accounted for as treasury stock at cost and held in treasury for future use. | |||||||||
Dividends | |||||||||
Since 2003, the Company has maintained a regular quarterly cash dividend program on its common stock. On May 21, 2012, the Company's Board of Directors approved an increase to the Company's quarterly cash dividend on its common stock from $0.20 per share to $0.40 per share. The second quarter Fiscal 2014 dividend of $0.40 per share was declared on September 11, 2013, was payable to stockholders of record at the close of business on September 27, 2013, and was paid on October 11, 2013. Dividends paid amounted to $73 million and $55 million during the six months ended September 28, 2013 and September 29, 2012, respectively. | |||||||||
On November 5, 2013, the Company's Board of Directors approved an additional increase to the Company's quarterly cash dividend on its common stock from $0.40 to $0.45 per share. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||
The following tables present the components of other comprehensive income (loss), net of tax, accumulated in equity: | |||||||||||||||||||||
Three months ended September 28, 2013 | |||||||||||||||||||||
Foreign Currency Translation Gains (Losses) | Net Unrealized Gains (Losses) on Derivative Financial Instruments | Net Unrealized Gains (Losses) on Defined Benefit Plans | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
(millions) | |||||||||||||||||||||
Balance at June 29, 2013 | $ | 71 | $ | 18 | $ | (7 | ) | $ | 82 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Other comprehensive income (loss) before | 50 | (18 | ) | — | 32 | ||||||||||||||||
reclassifications(a) | |||||||||||||||||||||
Amounts reclassified from AOCI to earnings | — | — | — | — | |||||||||||||||||
Other comprehensive income (loss), net of tax | 50 | (18 | ) | — | 32 | ||||||||||||||||
Balance at September 28, 2013 | $ | 121 | $ | — | $ | (7 | ) | $ | 114 | ||||||||||||
Six months ended September 28, 2013 | |||||||||||||||||||||
Foreign Currency Translation Gains (Losses) | Net Unrealized Gains (Losses) on Derivative Financial Instruments | Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) on Defined Benefit Plans | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
(millions) | |||||||||||||||||||||
Balance at March 30, 2013 | $ | 73 | $ | 23 | $ | 5 | $ | (7 | ) | $ | 94 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications(a) | 48 | (19 | ) | (4 | ) | — | 25 | ||||||||||||||
Amounts reclassified from AOCI to earnings | — | (4 | ) | (1 | ) | — | (5 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 48 | (23 | ) | (5 | ) | — | 20 | ||||||||||||||
Balance at September 28, 2013 | $ | 121 | $ | — | $ | — | $ | (7 | ) | $ | 114 | ||||||||||
(a) | Amounts are net of taxes, which are immaterial for all periods presented. | ||||||||||||||||||||
The following tables present reclassifications from AOCI to earnings, by component: | |||||||||||||||||||||
Three Months Ended | Six Months | Location of Gains (Losses) | |||||||||||||||||||
28-Sep-13 | Ended | Reclassified from AOCI to Earnings | |||||||||||||||||||
28-Sep-13 | |||||||||||||||||||||
(millions) | |||||||||||||||||||||
Gains (losses) on derivative financial instruments(a): | |||||||||||||||||||||
FC — Inventory purchases | $ | 1 | $ | 6 | Cost of goods sold | ||||||||||||||||
FC — Other | (1 | ) | (1 | ) | Foreign currency gains (losses) | ||||||||||||||||
Tax effect | — | (1 | ) | Provision for income taxes | |||||||||||||||||
Net of tax | $ | — | $ | 4 | |||||||||||||||||
Gains on available-for-sale securities: | |||||||||||||||||||||
Sales of available-for-sale securities | $ | — | $ | 1 | Interest and other income, net | ||||||||||||||||
Tax effect | — | — | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | — | $ | 1 | |||||||||||||||||
(a) | FC =orward foreign currency exchange contracts. |
Stockbased_Compensation
Stock-based Compensation | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Stock-based compensation [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
Stock-based Compensation | |||||||||||||||||
On August 5, 2010, the Company's stockholders approved the 2010 Incentive Plan, which replaced the Company's 1997 Incentive Plan. Any new grants are being issued under the 2010 Incentive Plan. However, awards that were outstanding as of August 5, 2010 remain subject to the terms of the 1997 Incentive Plan. On September 24, 2013, the Company registered with the Securities and Exchange Commission an additional 1.7 million shares of its Class A common stock for issuance pursuant to its 2010 Incentive Plan. | |||||||||||||||||
Refer to Note 20 in the Fiscal 2013 10-K for a detailed description of the Company's stock-based compensation awards, including information related to the vesting terms, service and performance conditions, and payout percentages. | |||||||||||||||||
Impact on Results | |||||||||||||||||
A summary of the total compensation expense recorded within SG&A expenses and the associated income tax benefits recognized related to stock-based compensation arrangements is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Compensation expense | $ | 21 | $ | 21 | $ | 43 | $ | 43 | |||||||||
Income tax benefit | $ | (8 | ) | $ | (7 | ) | $ | (16 | ) | $ | (14 | ) | |||||
The Company issues its annual grants of stock-based compensation awards in the first half of the fiscal year. Due to the timing of the annual grants, stock-based compensation expense recognized during the three-month and six-month periods ended September 28, 2013 is not indicative of the level of compensation expense expected to be incurred for the full Fiscal 2014. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options are granted to employees and non-employee directors with exercise prices equal to the fair market value of the Company’s Class A common stock on the date of grant. Generally, options become exercisable ratably (graded-vesting schedule) over a three-year vesting period. Stock options generally expire seven years from the date of grant. The Company recognizes compensation expense for share-based awards that have graded vesting and no performance conditions on an accelerated basis. | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options granted, which requires the input of both subjective and objective assumptions. The Company develops its assumptions by analyzing the historical exercise behavior of employees and nonemployee directors. The Company’s weighted average assumptions used to estimate the fair value of stock options granted during the six months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 28, | September 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term (years) | 4.2 | 4.6 | |||||||||||||||
Expected volatility | 33.3 | % | 44.5 | % | |||||||||||||
Expected dividend yield | 0.97 | % | 1.05 | % | |||||||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | |||||||||||||
Weighted-average option grant date fair value | $46.98 | $48.09 | |||||||||||||||
A summary of stock option activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Options | |||||||||||||||||
(thousands) | |||||||||||||||||
Options outstanding at March 30, 2013 | 2,954 | ||||||||||||||||
Granted | 723 | ||||||||||||||||
Exercised | (207 | ) | |||||||||||||||
Cancelled/Forfeited | (39 | ) | |||||||||||||||
Options outstanding at September 28, 2013 | 3,431 | ||||||||||||||||
Service-based RSUs and Restricted Stock Awards | |||||||||||||||||
A summary of restricted stock and service-based RSU activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Shares | |||||||||||||||||
Restricted Stock | Service-based RSUs | ||||||||||||||||
(thousands) | |||||||||||||||||
Nonvested at March 30, 2013 | 5 | 98 | |||||||||||||||
Granted | 3 | — | |||||||||||||||
Vested | (3 | ) | (83 | ) | |||||||||||||
Nonvested at September 28, 2013 | 5 | 15 | |||||||||||||||
The fair values of restricted stock awards granted to non-employee directors are determined based on the fair value of the Company's Class A common stock on the date of grant. The weighted-average grant date fair value per share of restricted stock awards granted, which entitle holders to receive cash dividends in connection with the payments of dividends on the Company's Class A common stock, was $164.76 and $173.33 during the six-month periods ended September 28, 2013 and September 29, 2012, respectively. | |||||||||||||||||
Performance-based RSUs | |||||||||||||||||
The fair value of the Company's performance-based RSUs that are not subject to a market condition in the form of a total shareholder return ("TSR") modifier is based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for those securities that are not entitled to dividend equivalents. The fair value of the Company's performance-based RSUs with a TSR modifier is determined on the date of grant using a Monte Carlo simulation valuation model. This pricing model uses multiple simulations to evaluate the probability of the Company achieving various stock price levels to determine its expected TSR performance ranking. Expense is only recorded for awards that are expected to vest, net of estimated forfeitures. The assumptions used to estimate the fair value of performance-based RSUs with a TSR modifier granted during the six months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 28, | September 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term (years) | 3 | 3 | |||||||||||||||
Expected volatility | 33.1 | % | 34 | % | |||||||||||||
Expected dividend yield | 0.96 | % | 1.13 | % | |||||||||||||
Risk-free interest rate | 0.4 | % | 0.3 | % | |||||||||||||
Weighted-average grant date fair value per share | $171.07 | $136.16 | |||||||||||||||
The weighted-average grant date fair value per share of performance-based RSUs that do not contain a TSR modifier granted during the six-month periods ended September 28, 2013 and September 29, 2012 was $172.91 and $137.40. | |||||||||||||||||
A summary of performance-based RSU activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Shares | |||||||||||||||||
Performance-based RSUs — without | Performance-based RSUs — with | ||||||||||||||||
TSR Modifier | TSR Modifier | ||||||||||||||||
(thousands) | |||||||||||||||||
Nonvested at March 30, 2013 | 1,015 | 73 | |||||||||||||||
Granted | 283 | 65 | |||||||||||||||
Change due to performance or market conditions achievement | 141 | — | |||||||||||||||
Vested | (627 | ) | — | ||||||||||||||
Forfeited | (15 | ) | — | ||||||||||||||
Nonvested at September 28, 2013 | 797 | 138 | |||||||||||||||
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
The Company has three reportable segments based on its business activities and organization: Wholesale, Retail, and Licensing. These segments offer a variety of products through different channels of distribution. The Wholesale segment consists of women’s, men’s, and children’s apparel, accessories, home furnishings, and related products which are sold to major department stores, specialty stores, golf and pro shops, and the Company’s owned, licensed, and franchised retail stores in the U.S. and overseas. The Retail segment consists of the Company’s integrated worldwide retail operations, which sell products through its retail stores, its concession-based shop-within-shops, and its e-commerce sites. The stores, concession-based shop-within-shops, and websites sell products purchased from the Company’s licensees, suppliers, and Wholesale segment. The Licensing segment generates revenues from royalties earned on the sale of the Company’s apparel, home, and other products internationally and domestically through licensing alliances. The licensing agreements grant the licensees rights to use the Company’s various trademarks in connection with the manufacture and sale of designated products in specified geographic areas for specified periods. | |||||||||||||||||
The accounting policies of the Company’s segments are consistent with those described in Notes 2 and 3 to the Company’s consolidated financial statements included in the Fiscal 2013 10-K. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues, including such sales between segments, are eliminated in consolidation and are not reviewed when evaluating segment performance. Each segment’s performance is evaluated based upon operating income before restructuring charges and certain other one-time items, such as legal charges, if any. Corporate overhead expenses (exclusive of certain expenses for senior management, overall brand-related expenses, and certain other corporate-related expenses) are allocated to the segments based upon specific usage or other allocation methods, as appropriate. | |||||||||||||||||
Net revenues and operating income for each of the Company’s segments are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Net revenues: | |||||||||||||||||
Wholesale | $ | 928 | $ | 915 | $ | 1,663 | $ | 1,609 | |||||||||
Retail | 944 | 901 | 1,823 | 1,758 | |||||||||||||
Licensing | 43 | 46 | 82 | 88 | |||||||||||||
Total net revenues | $ | 1,915 | $ | 1,862 | $ | 3,568 | $ | 3,455 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Operating income: | |||||||||||||||||
Wholesale | $ | 202 | $ | 232 | $ | 356 | $ | 386 | |||||||||
Retail | 135 | 157 | 295 | 336 | |||||||||||||
Licensing | 35 | 35 | 64 | 64 | |||||||||||||
372 | 424 | 715 | 786 | ||||||||||||||
Unallocated corporate expenses | (77 | ) | (76 | ) | (160 | ) | (146 | ) | |||||||||
Gain on acquisition of Chaps(a) | — | — | 16 | — | |||||||||||||
Total operating income | $ | 295 | $ | 348 | $ | 571 | $ | 640 | |||||||||
(a) | See Note 5 for further discussion of the gain on acquisition of Chaps. | ||||||||||||||||
Depreciation and amortization expense for the Company’s segments is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Depreciation and amortization: | |||||||||||||||||
Wholesale | $ | 18 | $ | 17 | $ | 35 | $ | 34 | |||||||||
Retail | 31 | 29 | 59 | 56 | |||||||||||||
Unallocated corporate expenses | 17 | 11 | 32 | 23 | |||||||||||||
Total depreciation and amortization | $ | 66 | $ | 57 | $ | 126 | $ | 113 | |||||||||
Net revenues by geographic location of the reporting subsidiary are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Net revenues(a): | |||||||||||||||||
The Americas(b) | $ | 1,296 | $ | 1,221 | $ | 2,450 | $ | 2,296 | |||||||||
Europe | 415 | 411 | 725 | 711 | |||||||||||||
Asia(c) | 204 | 230 | 393 | 448 | |||||||||||||
Total net revenues | $ | 1,915 | $ | 1,862 | $ | 3,568 | $ | 3,455 | |||||||||
(a) | Net revenues for certain of the Company’s licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license. | ||||||||||||||||
(b) | Includes net revenues earned in the U.S., Canada, and Latin America. Net revenues earned in the U.S. were $1.231 billion and $2.336 billion during the three-month and six-month periods ended September 28, 2013, respectively, and $1.169 billion and $2.206 billion during the three-month and six-month periods ended September 29, 2012, respectively. | ||||||||||||||||
(c) | Includes net revenues earned in South Korea, Japan, China, Hong Kong, Macau, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam, Australia, and New Zealand. | ||||||||||||||||
The Company's total assets as of September 28, 2013 included $230 million recorded within property and equipment, relating to a lease for a new flagship store on Fifth Avenue in New York City, recorded within the Company's Retail segment. The Company's assets are also subject to seasonal fluctuations in the normal course of business. |
Additional_Financial_Informati
Additional Financial Information | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||||||||||
Additional Financial Information | ' | ||||||||||||||||
Additional Financial Information | |||||||||||||||||
Cash Interest and Taxes | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Cash paid for interest | $ | 1 | $ | 1 | $ | 2 | $ | 3 | |||||||||
Cash paid for income taxes | $ | 132 | $ | 129 | $ | 168 | $ | 207 | |||||||||
Non-cash Transactions | |||||||||||||||||
Significant non-cash investing activities included the capitalization of fixed assets and recognition of related obligations in the net amount of $56 million and $57 million for the six months ended September 28, 2013 and September 29, 2012, respectively. In addition, the Company recorded an asset and a corresponding capital lease obligation of $230 million within its unaudited interim consolidated balance sheet as of September 28, 2013, in connection with a new lease for a flagship store in New York City (See Note 14). | |||||||||||||||||
Significant non-cash activities also included the gain recorded in connection with the Chaps Menswear License Acquisition in April 2013 (See Note 5). | |||||||||||||||||
There were no other significant non-cash investing or financing activities for the periods presented. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |
Sep. 28, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Consolidation | ' | |
Basis of Consolidation | ||
The unaudited interim consolidated financial statements present the financial position, income, comprehensive income, and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Fiscal Year | ' | |
Fiscal Year | ||
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2014 will end on March 29, 2014 and will be a 52-week period (“Fiscal 2014”). Fiscal year 2013 ended on March 30, 2013 and was also a 52-week period (“Fiscal 2013”). The second quarter of Fiscal 2014 ended on September 28, 2013 and was a 13-week period. The second quarter of Fiscal 2013 ended on September 29, 2012 and was also a 13-week period. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | ||
Significant estimates inherent in the preparation of the consolidated financial statements include reserves for bad debt, customer returns, discounts, end-of-season markdowns, and operational chargebacks; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation and related expected forfeiture rates; reserves for restructuring; and accounting for business combinations, among others. | ||
Reclassifications | ' | |
Reclassifications | ||
Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. | ||
Shipping and Handling Costs | ' | |
Shipping and Handling Costs | ||
The costs associated with shipping goods to customers are reflected as a component of selling, general, and administrative (“SG&A”) expenses in the unaudited interim consolidated statements of income. Shipping costs were $9 million during each of the three-month periods ended September 28, 2013 and September 29, 2012, and $17 million during each of the six-month periods ended September 28, 2013 and September 29, 2012. The costs of preparing merchandise for sale, such as picking, packing, warehousing, and order charges (“handling costs”) are also included in SG&A expenses. Handling costs were $52 million and $91 million during the three-month and six-month periods ended September 28, 2013, respectively, and $38 million and $74 million during the three-month and six-month periods ended September 29, 2012, respectively. Shipping and handling costs billed to customers are included in revenue. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Revenue is recognized across all segments of the business when there is persuasive evidence of an arrangement, delivery has occurred, price has been fixed or is determinable, and collectability is reasonably assured. | ||
Revenue within the Company’s Wholesale segment is recognized at the time title passes and risk of loss is transferred to customers. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdown allowances, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company’s historical estimates of these costs have not differed materially from actual results. | ||
Retail store and concession-based shop-within-shop revenue is recognized net of estimated returns at the time of sale to customers. E-commerce revenue from sales of products ordered through the Company’s retail Internet sites is recognized upon delivery and receipt of the shipment by its customers. Such revenue is also reduced by an estimate of returns. | ||
Gift cards issued by the Company are recorded as a liability until they are redeemed, at which point revenue is recognized. The Company recognizes income for unredeemed gift cards when the likelihood of a gift card being redeemed by a customer is remote and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. | ||
Revenue from licensing arrangements is recognized when earned in accordance with the terms of the underlying agreements, generally based upon the higher of (i) contractually guaranteed minimum royalty levels or (ii) actual sales and royalty data, or estimates thereof, received from the Company’s licensees. | ||
The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. | ||
Net Income Per Common Share | ' | |
Net Income per Common Share | ||
Basic net income per common share is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company’s Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the effects of outstanding stock options, restricted stock, restricted stock units ("RSUs"), and any other potentially dilutive financial instruments, only in the periods in which such effects are dilutive under the treasury stock method. | ||
All earnings per share amounts have been calculated based on unrounded numbers. Options to purchase shares of the Company's common stock at an exercise price greater than the average market price of the common stock during the reporting period are anti-dilutive and therefore not included in the computation of diluted net income per common share. In addition, the Company has outstanding RSUs that are issuable only upon the achievement of certain service and/or performance goals. Performance-based restricted stock units are included in the computation of diluted shares only to the extent that the underlying performance conditions (and any applicable market condition modifiers) (i) are satisfied as of the end of the reporting period or (ii) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. | ||
Accounts Receivable | ' | |
Accounts Receivable | ||
In the normal course of business, the Company extends credit to wholesale customers that satisfy defined credit criteria. Accounts receivable, net is recorded at carrying value, which approximates fair value, and is presented in the Company's consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see Revenue Recognition for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. | ||
An allowance for doubtful accounts is determined through analysis of periodic aging of accounts receivable, assessments of collectability based on an evaluation of historical and anticipated trends, the financial condition of the Company’s customers, and an evaluation of the impact of economic conditions, among other factors. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
The Company records all derivative financial instruments on its consolidated balance sheets at fair value. For derivative instruments that qualify for hedge accounting, the effective portion of changes in their fair value is either (i) offset against the changes in fair value of the hedged assets, liabilities, or firm commitments through earnings or (ii) recognized in equity as a component of accumulated other comprehensive income ("AOCI") until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows, respectively. | ||
Each derivative instrument entered into by the Company that qualifies for hedge accounting is expected to be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument that is designated as a hedge, the Company formally documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the term of the instrument. To assess the effectiveness of derivative instruments that are designated as hedges, the Company uses regression analysis, a statistical method, to compare the change in the fair value of the derivative instrument to the change in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to continue to be highly effective in achieving offsetting changes in fair value or cash flows is assessed and documented by the Company on at least a quarterly basis. | ||
To the extent that a derivative instrument designated as a cash flow hedge is not considered to be effective, any change in its fair value relating to such ineffectiveness is immediately recognized in earnings within foreign currency gains (losses). If it is determined that a derivative instrument has not been highly effective, and will continue not to be highly effective in hedging the designated exposure, hedge accounting is discontinued and further gains (losses) are recognized in earnings within foreign currency gains (losses). Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument previously recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the original hedging strategy, unless the forecasted transaction is no longer probable of occurring, in which case the accumulated amount is immediately recognized in earnings within foreign currency gains (losses). | ||
As a result of the use of derivative instruments, the Company is exposed to the risk that the counterparties to such contracts will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The Company’s established policies and procedures for mitigating credit risk from derivative transactions include ongoing review and assessment of the creditworthiness of counterparties. The Company also enters into master netting arrangements with counterparties, when possible, to mitigate credit risk associated with its derivative instruments. In the event of default or termination (as such terms are defined within the respective master netting arrangement), these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including, among others, the failure to make timely payments. | ||
The fair values of the Company’s derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, the Company classifies proceeds received or amounts paid upon the settlement of a derivative instrument in the same manner as the related item being hedged. | ||
Forward Foreign Currency Exchange Contracts | ||
The Company primarily enters into forward foreign currency exchange contracts as hedges to reduce its risks related to exchange rate fluctuations on inventory purchases, intercompany royalty payments made by certain of its international operations, intercompany contributions made to fund certain marketing efforts of its international operations, and other foreign currency-denominated operational cash flows. To the extent forward foreign currency exchange contracts designated as cash flow hedges are highly effective in offsetting changes in the value of the hedged items, the related gains (losses) are initially deferred in equity as a component of AOCI and subsequently recognized in the consolidated statements of income as follows: | ||
• | Forecasted Inventory Purchases — Recognized as part of the cost of the inventory purchases being hedged within cost of goods sold when the related inventory is sold. | |
• | Intercompany Royalty Payments and Marketing Contributions — Recognized within foreign currency gains (losses) generally in the period in which the related payments or contributions being hedged are received or paid. | |
Hedge of a Net Investment in a Foreign Operation | ||
Changes in the fair value of a derivative instrument or a non-derivative financial instrument (such as debt) that is designated as a hedge of a net investment in a foreign operation are reported in the same manner as a translation adjustment, to the extent it is effective as a hedge. In assessing the effectiveness of a non-derivative financial instrument that is designated as a hedge of a net investment, the Company uses the spot rate method of accounting to remeasure the impact of foreign currency exchange rate changes on both its foreign subsidiaries and the financial instrument. If the notional amount of the financial instrument designated as a hedge of a net investment is greater than the portion of the net investment being hedged, hedge ineffectiveness is recognized immediately in earnings within foreign currency gains (losses). To the extent the financial instrument remains effective, changes in its value are recorded in equity as foreign currency translation gains (losses), a component of AOCI, until the sale or liquidation of the hedged net investment. | ||
Undesignated Hedges | ||
All of the Company’s undesignated hedges are entered into to hedge specific economic risks, such as foreign currency exchange rate risk. Changes in the fair value of undesignated derivative instruments are immediately recognized in earnings within foreign currency gains (losses). | ||
See Note 13 for further discussion of the Company’s derivative financial instruments. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies (Tables) [Abstract] | ' | ||||||||||||||||
Summary of Basic and Diluted shares | ' | ||||||||||||||||
The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to shares used to calculate diluted net income per common share as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Basic shares | 90.4 | 91.3 | 90.6 | 91.7 | |||||||||||||
Dilutive effect of stock options, restricted stock and RSUs | 1.8 | 2.1 | 2 | 2.5 | |||||||||||||
Diluted shares | 92.2 | 93.4 | 92.6 | 94.2 | |||||||||||||
Sales Returns and Allowances [Member] | ' | ||||||||||||||||
Summary of Significant Accounting Policies (Tables) [Abstract] | ' | ||||||||||||||||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | ' | ||||||||||||||||
A rollforward of the activity in the Company’s reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented below: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Beginning reserve balance | $ | 245 | $ | 228 | $ | 230 | $ | 247 | |||||||||
Amount charged against revenue to increase reserve | 219 | 191 | 379 | 329 | |||||||||||||
Amount credited against customer accounts to decrease reserve | (196 | ) | (172 | ) | (343 | ) | (323 | ) | |||||||||
Foreign currency translation | 2 | 4 | 4 | (2 | ) | ||||||||||||
Ending reserve balance | $ | 270 | $ | 251 | $ | 270 | $ | 251 | |||||||||
Acquisition_Tables
Acquisition (Tables) | 6 Months Ended | ||||
Sep. 28, 2013 | |||||
Australia and New Zealand Licensed Operations Acquisition [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||
The acquisition cost of $15 million was allocated to the assets acquired and liabilities assumed based on the preliminary purchase price assessment of their respective fair values, as follows (in millions): | |||||
Inventory | $ | 9 | |||
Fixed assets | 4 | ||||
Customer relationship intangible asset | 3 | ||||
Other assets | 2 | ||||
Other liabilities | (3 | ) | |||
Fair value of net assets acquired | $ | 15 | |||
Chaps Menswear License Acquisition [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||
The acquisition cost was allocated to the assets acquired and liabilities assumed based on the purchase price assessment of their respective fair values, as follows (in millions): | |||||
Assets acquired: | |||||
Inventory | $ | 30 | |||
Accounts receivable | 19 | ||||
Licensed trademark intangible asset | 9 | ||||
Total assets acquired | 58 | ||||
Liabilities assumed: | |||||
Accounts payable | (22 | ) | |||
Other net liabilities | (2 | ) | |||
Total net liabilities assumed | (24 | ) | |||
Fair value of net assets acquired | 34 | ||||
Consideration paid | 18 | ||||
Gain on acquisition(a) | $ | 16 | |||
(a) The gain on acquisition represents the difference between the acquisition date fair value of net assets acquired and the contractually-defined purchase price under the Company's license agreement with Warnaco, which granted the Company the right to early-terminate the license upon PVH's acquisition of Warnaco in February 2013. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Inventory | ' | ||||||||||||
Inventories consist of the following: | |||||||||||||
September 28, | March 30, | September 29, | |||||||||||
2013 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Raw materials | $ | 2 | $ | 5 | $ | 5 | |||||||
Work-in-process | 1 | 1 | 1 | ||||||||||
Finished goods | 1,212 | 890 | 1,054 | ||||||||||
Total inventories | $ | 1,215 | $ | 896 | $ | 1,060 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and equipment, net | ' | ||||||||
Property and equipment, net consists of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Land and improvements | $ | 13 | $ | 10 | |||||
Buildings and improvements | 176 | 130 | |||||||
Furniture and fixtures | 639 | 601 | |||||||
Machinery and equipment | 208 | 189 | |||||||
Capitalized software | 331 | 252 | |||||||
Leasehold improvements | 1,006 | 934 | |||||||
Construction in progress | 331 | 137 | |||||||
2,704 | 2,253 | ||||||||
Less: accumulated depreciation | (1,424 | ) | (1,321 | ) | |||||
Property and equipment, net | $ | 1,280 | $ | 932 | |||||
Other_Assets_and_Liabilities_T
Other Assets and Liabilities (Tables) | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Prepaid expenses and other current assets | ' | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Other taxes receivable | $ | 40 | $ | 31 | |||||
Prepaid rent expense | 30 | 28 | |||||||
Deferred rent receivable | 23 | 17 | |||||||
Derivative financial instruments | 20 | 15 | |||||||
Prepaid samples | 17 | 14 | |||||||
Other prepaid expenses and current assets | 72 | 56 | |||||||
Total prepaid expenses and other current assets | $ | 202 | $ | 161 | |||||
Accrued expenses and other current liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Accrued operating expenses | $ | 177 | $ | 172 | |||||
Accrued inventory | 160 | 93 | |||||||
Accrued payroll and benefits | 134 | 199 | |||||||
Other taxes payable | 60 | 51 | |||||||
Accrued capital expenditures | 56 | 53 | |||||||
Deferred income | 40 | 40 | |||||||
Dividends payable | 36 | 36 | |||||||
Other accrued expenses and current liabilities | 31 | 20 | |||||||
Total accrued expenses and other current liabilities | $ | 694 | $ | 664 | |||||
Other non-current liabilities | ' | ||||||||
Other non-current liabilities consist of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
Capital lease obligations | $ | 263 | $ | 38 | |||||
Deferred rent obligations | 208 | 189 | |||||||
Deferred income | 48 | 58 | |||||||
Deferred tax liabilities | 28 | 30 | |||||||
Other non-current liabilities | 55 | 47 | |||||||
Total other non-current liabilities | $ | 602 | $ | 362 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are set forth below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Provision for income taxes at the U.S. federal statutory rate | $ | 101 | $ | 120 | $ | 194 | $ | 219 | ||||||||||
Increase (decrease) due to: | ||||||||||||||||||
State and local income taxes, net of federal benefit | 8 | 8 | 14 | 15 | ||||||||||||||
Foreign income taxed at different rates, net of U.S. foreign tax | (28 | ) | (19 | ) | (44 | ) | (35 | ) | ||||||||||
Unrecognized tax benefits and settlements of tax examinations | 2 | 18 | 3 | 18 | ||||||||||||||
Other | — | 1 | — | 2 | ||||||||||||||
Total provision for income taxes | $ | 83 | $ | 128 | $ | 167 | $ | 219 | ||||||||||
Reconciliation of unrecognized tax benefits, excluding interest and penalties | ' | |||||||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for the three-month and six-month periods ended September 28, 2013 and September 29, 2012 is presented below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Unrecognized tax benefits beginning balance | $ | 101 | $ | 126 | $ | 100 | $ | 129 | ||||||||||
Additions related to current period tax positions | 1 | 1 | 2 | 2 | ||||||||||||||
Additions related to prior period tax positions | — | 2 | 1 | 2 | ||||||||||||||
Reductions related to prior period tax positions | — | (1 | ) | (2 | ) | (2 | ) | |||||||||||
Reductions related to settlements with taxing authorities | (1 | ) | — | (1 | ) | — | ||||||||||||
Changes related to foreign currency translation | 1 | 2 | 2 | (1 | ) | |||||||||||||
Unrecognized tax benefits ending balance | $ | 102 | $ | 130 | $ | 102 | $ | 130 | ||||||||||
Reconciliation of accrued interest and penalties related to unrecognized tax benefits | ' | |||||||||||||||||
A reconciliation of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for the three-month and six-month periods ended September 28, 2013 and September 29, 2012 is presented below: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
Accrued interest and penalties beginning balance | $ | 50 | $ | 38 | $ | 50 | $ | 39 | ||||||||||
Net additions charged to expense | 2 | 19 | (a) | 3 | 20 | (a) | ||||||||||||
Reductions related to prior period tax positions | — | — | (1 | ) | (2 | ) | ||||||||||||
Changes related to foreign currency translation | 1 | — | 1 | — | ||||||||||||||
Accrued interest and penalties ending balance | $ | 53 | $ | 57 | $ | 53 | $ | 57 | ||||||||||
(a) Includes a reserve of $17 million for an interest assessment on a prior year withholding tax. No underlying tax exposure exists. The interest assessed was not material to the Company's consolidated financial statements in any period. |
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||||
Debt consists of the following: | |||||||||
September 28, | March 30, | ||||||||
2013 | 2013 | ||||||||
(millions) | |||||||||
2.125% Senior Notes due September 26, 2018 | $ | 300 | $ | — | |||||
4.5% Euro-denominated notes due October 4, 2013(a) | 283 | 267 | |||||||
Total debt | 583 | 267 | |||||||
Less: current maturities of debt(a) | 283 | 267 | |||||||
Total long-term debt | $ | 300 | $ | — | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value of financial assets and liabilities measured and recorded at fair value on recurring basis | ' | ||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities that are measured and recorded at fair value on a recurring basis: | |||||||||||||||||
September 28, | March 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
(millions) | |||||||||||||||||
Financial assets recorded at fair value(a): | |||||||||||||||||
Government bonds — U.S. | $ | 32 | $ | 29 | |||||||||||||
Government bonds — non-U.S. | — | 92 | |||||||||||||||
Corporate bonds — non-U.S. | — | 82 | |||||||||||||||
Variable rate municipal securities — U.S. | — | 17 | |||||||||||||||
Auction rate securities | 2 | 2 | |||||||||||||||
Derivative financial instruments | 24 | 15 | |||||||||||||||
Total | $ | 58 | $ | 237 | |||||||||||||
Financial liabilities recorded at fair value(b): | |||||||||||||||||
Derivative financial instruments | $ | 7 | $ | 5 | |||||||||||||
Total | $ | 7 | $ | 5 | |||||||||||||
(a) | Based on Level 1 measurements, except for auction rate securities and derivative financial instruments, which are based on Level 2 measurements. | ||||||||||||||||
(b) | Based on Level 2 measurements. | ||||||||||||||||
Carrying value and the estimated fair value of the Company's debt obligations | ' | ||||||||||||||||
The following table summarizes the carrying values and the estimated fair values of the Company’s debt obligations: | |||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value(a) | Value | Value(a) | ||||||||||||||
(millions) | |||||||||||||||||
2.125% Senior Notes | $ | 300 | $ | 302 | N/A | N/A | |||||||||||
Euro Debt | $ | 283 | $ | 282 | $ | 267 | $ | 272 | |||||||||
(a) | Based on Level 2 measurements. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Company's outstanding derivative instruments on a gross basis as recorded on its consolidated balance sheets | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in the consolidated balance sheets as of September 28, 2013 and March 30, 2013: | |||||||||||||||||||||||||||||||||
Notional Amounts | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||
Derivative Instrument(a) | September 28, 2013 | March 30, 2013 | September 28, | March 30, | September 28, | March 30, | |||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||||||||||
Line(b) | Line(b) | Line(b) | Line(b) | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | 339 | $ | 366 | PP | $ | 2 | PP | $ | 14 | (c) | $ | (4 | ) | AE | $ | (2 | ) | |||||||||||||||
FC — Other(d) | 147 | 25 | PP | 1 | — | — | AE | (2 | ) | AE | (1 | ) | |||||||||||||||||||||
NI — Euro Debt | — | 140 | — | (e) | — | (e) | — | (e) | — | (e) | |||||||||||||||||||||||
Total Designated Hedges | $ | 486 | $ | 531 | $ | 3 | $ | 14 | $ | (6 | ) | $ | (3 | ) | |||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||
FC — Other(f) | $ | 446 | $ | 270 | (g) | $ | 21 | PP | $ | 1 | AE | $ | (1 | ) | AE | $ | (2 | ) | |||||||||||||||
Total Hedges | $ | 932 | $ | 801 | $ | 24 | $ | 15 | $ | (7 | ) | $ | (5 | ) | |||||||||||||||||||
(a) | FC =orward foreign currency exchange contracts; NI =et Investment Hedge; Euro Debt =uro-denominated 4.5% notes due October 4, 2013. | ||||||||||||||||||||||||||||||||
(b) | PP =repaid expenses and other current assets; AE =ccrued expenses and other current liabilities; ONCL =ther non-current liabilities; ONCA =ther non-current assets. | ||||||||||||||||||||||||||||||||
(c) | $3 million included within AE and $1 million included within ONCL. | ||||||||||||||||||||||||||||||||
(d) | Primarily related to designated hedges of foreign currency-denominated intercompany royalty payments and marketing contributions, and other net operational exposures. | ||||||||||||||||||||||||||||||||
(e) | As of March 30, 2013, a portion of the Euro Debt's principal amount was designated as a net investment hedge, and the entire principal amount has been de-designated as of September 28, 2013. See Note 12 for a summary of the carrying values and the estimated fair values of the Euro Debt as of September 28, 2013 and March 30, 2013. | ||||||||||||||||||||||||||||||||
(f) | Primarily related to undesignated hedges of foreign currency-denominated intercompany loans, third-party debt obligations, and other net operational exposures. | ||||||||||||||||||||||||||||||||
(g) | $17 million included within PP and $4 million included within ONCA. | ||||||||||||||||||||||||||||||||
Offsetting Assets [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
The Company records and presents the fair values of all of its derivative assets and liabilities in the consolidated balance sheets on a gross basis, even though they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its forward foreign currency exchange contracts on a net basis in accordance with the terms of each of its master netting arrangements, as spread across eight separate counterparties, the amounts presented in the consolidated balance sheets as of September 28, 2013 and March 30, 2013 would be adjusted from the current gross presentation as detailed in the following table: | |||||||||||||||||||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||||||||||||||||||
Derivative Instrument | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to | Net | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to | Net | |||||||||||||||||||||||||||
Master Netting Agreements | Amount | Master Netting Agreements | Amount | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
FC — Derivative assets | $ | 24 | $ | (2 | ) | $ | 22 | $ | 15 | $ | (3 | ) | $ | 12 | |||||||||||||||||||
FC — Derivative liabilities | $ | (7 | ) | $ | 2 | $ | (5 | ) | $ | (5 | ) | $ | 3 | $ | (2 | ) | |||||||||||||||||
Gains (losses) recognized in AOCI and gains (losses) reclassified from AOCI to Earnings [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the gross impact of the effective portion of gains and losses from the Company's derivative instruments on its unaudited interim consolidated financial statements for the three-month and six-month periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Gains (Losses) Recognized in OCI | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | (7 | ) | $ | (1 | ) | $ | (8 | ) | $ | 8 | ||||||||||||||||||||||
FC — Other | (1 | ) | (1 | ) | (1 | ) | (4 | ) | |||||||||||||||||||||||||
$ | (8 | ) | $ | (2 | ) | $ | (9 | ) | $ | 4 | |||||||||||||||||||||||
Designated Hedge of Net Investment:(a) | |||||||||||||||||||||||||||||||||
Euro Debt | $ | 1 | $ | (4 | ) | $ | — | $ | 10 | ||||||||||||||||||||||||
Total Designated Hedges | $ | (7 | ) | $ | (6 | ) | $ | (9 | ) | $ | 14 | ||||||||||||||||||||||
Gains (Losses) Reclassified from AOCI to Earnings | Location of Gains (Losses) Reclassified from | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | AOCI to Earnings | |||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | |||||||||||||||||||||||||||||||||
FC — Inventory purchases | $ | 1 | $ | 8 | $ | 6 | $ | 11 | Cost of goods sold | ||||||||||||||||||||||||
FC — Other | (1 | ) | — | (1 | ) | 2 | Foreign currency gains (losses) | ||||||||||||||||||||||||||
$ | — | $ | 8 | $ | 5 | $ | 13 | ||||||||||||||||||||||||||
(a) | Amounts would be recognized as a gain (loss) on the sale or liquidation of the hedged net investment. | ||||||||||||||||||||||||||||||||
Gains (losses) on derivatives not designated as hedges recognized in earnings | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the impact of gains and losses from the Company's undesignated hedge contracts on its unaudited interim consolidated statements of income for the three-month and six-month periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Gains (Losses) Recognized in Earnings | Location of Gains (Losses) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Recognized in Earnings | |||||||||||||||||||||||||||||||
Derivative Instrument | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||
FC — Other | $ | 10 | $ | (3 | ) | $ | 18 | $ | (5 | ) | Foreign currency gains (losses) | ||||||||||||||||||||||
Total Undesignated Hedges | $ | 10 | $ | (3 | ) | $ | 18 | $ | (5 | ) | |||||||||||||||||||||||
Company's short-term and non-current investments recorded in the consolidated balance sheets | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the Company’s short-term and non-current investments recorded in its consolidated balance sheets as of September 28, 2013 and March 30, 2013: | |||||||||||||||||||||||||||||||||
28-Sep-13 | 30-Mar-13 | ||||||||||||||||||||||||||||||||
Type of Investment | Short-term | Non-current | Total | Short-term | Non-current | Total | |||||||||||||||||||||||||||
< 1 year | 1 - 3 years | < 1 year | 1 - 3 years | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||||||||||
Government bonds — U.S. | $ | 27 | $ | 5 | $ | 32 | $ | 21 | $ | 8 | $ | 29 | |||||||||||||||||||||
Government bonds — non-U.S. | — | — | — | 67 | 25 | 92 | |||||||||||||||||||||||||||
Corporate bonds — non-U.S. | — | — | — | 36 | 46 | 82 | |||||||||||||||||||||||||||
Variable rate municipal securities — U.S. | — | — | — | 17 | — | 17 | |||||||||||||||||||||||||||
Auction rate securities(a) | — | 2 | 2 | — | 2 | 2 | |||||||||||||||||||||||||||
Total available-for-sale investments | $ | 27 | $ | 7 | $ | 34 | $ | 141 | $ | 81 | $ | 222 | |||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||
Time deposits | $ | 545 | $ | — | $ | 545 | $ | 184 | $ | — | $ | 184 | |||||||||||||||||||||
Total Investments | $ | 572 | $ | 7 | $ | 579 | $ | 325 | $ | 81 | $ | 406 | |||||||||||||||||||||
(a) | Auction rate securities have characteristics similar to short-term investments. However, the Company has classified these securities as non-current investments in its consolidated balance sheets as current market conditions call into question its ability to redeem these investments for cash within the next twelve months. |
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Summary of Changes in Equity | ' | ||||||||
Summary of Changes in Equity | |||||||||
Six Months Ended | |||||||||
September 28, | September 29, | ||||||||
2013 | 2012 | ||||||||
(millions) | |||||||||
Balance at beginning of period | $ | 3,785 | $ | 3,653 | |||||
Comprehensive income | 406 | 408 | |||||||
Dividends declared | (72 | ) | (73 | ) | |||||
Repurchases of common stock | (210 | ) | (347 | ) | |||||
Stock-based compensation | 43 | 43 | |||||||
Shares issued and tax benefits recognized pursuant to stock-based | 39 | 52 | |||||||
compensation plans | |||||||||
Balance at end of period | $ | 3,991 | $ | 3,736 | |||||
Accumulated_Other_Comrehensive
Accumulated Other Comrehensive Income (Tables) | 6 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||
The following tables present the components of other comprehensive income (loss), net of tax, accumulated in equity: | |||||||||||||||||||||
Three months ended September 28, 2013 | |||||||||||||||||||||
Foreign Currency Translation Gains (Losses) | Net Unrealized Gains (Losses) on Derivative Financial Instruments | Net Unrealized Gains (Losses) on Defined Benefit Plans | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
(millions) | |||||||||||||||||||||
Balance at June 29, 2013 | $ | 71 | $ | 18 | $ | (7 | ) | $ | 82 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Other comprehensive income (loss) before | 50 | (18 | ) | — | 32 | ||||||||||||||||
reclassifications(a) | |||||||||||||||||||||
Amounts reclassified from AOCI to earnings | — | — | — | — | |||||||||||||||||
Other comprehensive income (loss), net of tax | 50 | (18 | ) | — | 32 | ||||||||||||||||
Balance at September 28, 2013 | $ | 121 | $ | — | $ | (7 | ) | $ | 114 | ||||||||||||
Six months ended September 28, 2013 | |||||||||||||||||||||
Foreign Currency Translation Gains (Losses) | Net Unrealized Gains (Losses) on Derivative Financial Instruments | Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) on Defined Benefit Plans | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
(millions) | |||||||||||||||||||||
Balance at March 30, 2013 | $ | 73 | $ | 23 | $ | 5 | $ | (7 | ) | $ | 94 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications(a) | 48 | (19 | ) | (4 | ) | — | 25 | ||||||||||||||
Amounts reclassified from AOCI to earnings | — | (4 | ) | (1 | ) | — | (5 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 48 | (23 | ) | (5 | ) | — | 20 | ||||||||||||||
Balance at September 28, 2013 | $ | 121 | $ | — | $ | — | $ | (7 | ) | $ | 114 | ||||||||||
(a) | Amounts are net of taxes, which are immaterial for all periods presented. | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||||||
The following tables present reclassifications from AOCI to earnings, by component: | |||||||||||||||||||||
Three Months Ended | Six Months | Location of Gains (Losses) | |||||||||||||||||||
28-Sep-13 | Ended | Reclassified from AOCI to Earnings | |||||||||||||||||||
28-Sep-13 | |||||||||||||||||||||
(millions) | |||||||||||||||||||||
Gains (losses) on derivative financial instruments(a): | |||||||||||||||||||||
FC — Inventory purchases | $ | 1 | $ | 6 | Cost of goods sold | ||||||||||||||||
FC — Other | (1 | ) | (1 | ) | Foreign currency gains (losses) | ||||||||||||||||
Tax effect | — | (1 | ) | Provision for income taxes | |||||||||||||||||
Net of tax | $ | — | $ | 4 | |||||||||||||||||
Gains on available-for-sale securities: | |||||||||||||||||||||
Sales of available-for-sale securities | $ | — | $ | 1 | Interest and other income, net | ||||||||||||||||
Tax effect | — | — | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | — | $ | 1 | |||||||||||||||||
(a) | FC =orward foreign currency exchange contracts. |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of the total compensation expense recorded within SG&A expenses and the associated income tax benefits recognized related to stock-based compensation arrangements | ' | ||||||||||||||||
A summary of the total compensation expense recorded within SG&A expenses and the associated income tax benefits recognized related to stock-based compensation arrangements is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Compensation expense | $ | 21 | $ | 21 | $ | 43 | $ | 43 | |||||||||
Income tax benefit | $ | (8 | ) | $ | (7 | ) | $ | (16 | ) | $ | (14 | ) | |||||
Weighted average assumptions used to estimate the fair value of stock options granted | ' | ||||||||||||||||
The Company’s weighted average assumptions used to estimate the fair value of stock options granted during the six months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 28, | September 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term (years) | 4.2 | 4.6 | |||||||||||||||
Expected volatility | 33.3 | % | 44.5 | % | |||||||||||||
Expected dividend yield | 0.97 | % | 1.05 | % | |||||||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | |||||||||||||
Weighted-average option grant date fair value | $46.98 | $48.09 | |||||||||||||||
Summary of the stock option activity under all plans | ' | ||||||||||||||||
A summary of stock option activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Options | |||||||||||||||||
(thousands) | |||||||||||||||||
Options outstanding at March 30, 2013 | 2,954 | ||||||||||||||||
Granted | 723 | ||||||||||||||||
Exercised | (207 | ) | |||||||||||||||
Cancelled/Forfeited | (39 | ) | |||||||||||||||
Options outstanding at September 28, 2013 | 3,431 | ||||||||||||||||
Summary of restricted stock and restricted stock unit activity | ' | ||||||||||||||||
A summary of restricted stock and service-based RSU activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Shares | |||||||||||||||||
Restricted Stock | Service-based RSUs | ||||||||||||||||
(thousands) | |||||||||||||||||
Nonvested at March 30, 2013 | 5 | 98 | |||||||||||||||
Granted | 3 | — | |||||||||||||||
Vested | (3 | ) | (83 | ) | |||||||||||||
Nonvested at September 28, 2013 | 5 | 15 | |||||||||||||||
Schedule of Share Based Payment Award Performance Stock Units With Market Condition Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
The assumptions used to estimate the fair value of performance-based RSUs with a TSR modifier granted during the six months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 28, | September 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term (years) | 3 | 3 | |||||||||||||||
Expected volatility | 33.1 | % | 34 | % | |||||||||||||
Expected dividend yield | 0.96 | % | 1.13 | % | |||||||||||||
Risk-free interest rate | 0.4 | % | 0.3 | % | |||||||||||||
Weighted-average grant date fair value per share | $171.07 | $136.16 | |||||||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | ' | ||||||||||||||||
A summary of performance-based RSU activity during the six months ended September 28, 2013 is as follows: | |||||||||||||||||
Number of Shares | |||||||||||||||||
Performance-based RSUs — without | Performance-based RSUs — with | ||||||||||||||||
TSR Modifier | TSR Modifier | ||||||||||||||||
(thousands) | |||||||||||||||||
Nonvested at March 30, 2013 | 1,015 | 73 | |||||||||||||||
Granted | 283 | 65 | |||||||||||||||
Change due to performance or market conditions achievement | 141 | — | |||||||||||||||
Vested | (627 | ) | — | ||||||||||||||
Forfeited | (15 | ) | — | ||||||||||||||
Nonvested at September 28, 2013 | 797 | 138 | |||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Net revenues by segment | ' | ||||||||||||||||
Net revenues and operating income for each of the Company’s segments are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Net revenues: | |||||||||||||||||
Wholesale | $ | 928 | $ | 915 | $ | 1,663 | $ | 1,609 | |||||||||
Retail | 944 | 901 | 1,823 | 1,758 | |||||||||||||
Licensing | 43 | 46 | 82 | 88 | |||||||||||||
Total net revenues | $ | 1,915 | $ | 1,862 | $ | 3,568 | $ | 3,455 | |||||||||
Net operating income by segment | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Operating income: | |||||||||||||||||
Wholesale | $ | 202 | $ | 232 | $ | 356 | $ | 386 | |||||||||
Retail | 135 | 157 | 295 | 336 | |||||||||||||
Licensing | 35 | 35 | 64 | 64 | |||||||||||||
372 | 424 | 715 | 786 | ||||||||||||||
Unallocated corporate expenses | (77 | ) | (76 | ) | (160 | ) | (146 | ) | |||||||||
Gain on acquisition of Chaps(a) | — | — | 16 | — | |||||||||||||
Total operating income | $ | 295 | $ | 348 | $ | 571 | $ | 640 | |||||||||
(a) | See Note 5 for further discussion of the gain on acquisition of Chaps. | ||||||||||||||||
Depreciation and amortization by segment | ' | ||||||||||||||||
Depreciation and amortization expense for the Company’s segments is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Depreciation and amortization: | |||||||||||||||||
Wholesale | $ | 18 | $ | 17 | $ | 35 | $ | 34 | |||||||||
Retail | 31 | 29 | 59 | 56 | |||||||||||||
Unallocated corporate expenses | 17 | 11 | 32 | 23 | |||||||||||||
Total depreciation and amortization | $ | 66 | $ | 57 | $ | 126 | $ | 113 | |||||||||
Net revenues by geographic location | ' | ||||||||||||||||
Net revenues by geographic location of the reporting subsidiary are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Net revenues(a): | |||||||||||||||||
The Americas(b) | $ | 1,296 | $ | 1,221 | $ | 2,450 | $ | 2,296 | |||||||||
Europe | 415 | 411 | 725 | 711 | |||||||||||||
Asia(c) | 204 | 230 | 393 | 448 | |||||||||||||
Total net revenues | $ | 1,915 | $ | 1,862 | $ | 3,568 | $ | 3,455 | |||||||||
(a) | Net revenues for certain of the Company’s licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license. | ||||||||||||||||
(b) | Includes net revenues earned in the U.S., Canada, and Latin America. Net revenues earned in the U.S. were $1.231 billion and $2.336 billion during the three-month and six-month periods ended September 28, 2013, respectively, and $1.169 billion and $2.206 billion during the three-month and six-month periods ended September 29, 2012, respectively. | ||||||||||||||||
(c) | Includes net revenues earned in South Korea, Japan, China, Hong Kong, Macau, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam, Australia, and New Zealand. |
Additional_Financial_Informati1
Additional Financial Information (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||||||||||
Cash Interest and Taxes | ' | ||||||||||||||||
Cash Interest and Taxes | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Cash paid for interest | $ | 1 | $ | 1 | $ | 2 | $ | 3 | |||||||||
Cash paid for income taxes | $ | 132 | $ | 129 | $ | 168 | $ | 207 | |||||||||
Description_of_Business_Detail
Description of Business (Details) | 6 Months Ended |
Sep. 28, 2013 | |
Segment | |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract] | ' |
Number of reportable segments | 3 |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | |
Basis of Presentation (Textual) [Abstract] | ' | ' | ' | ' |
Fiscal year period range | '13 | '13 | '52 | '52 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Summary of basic and diluted shares | ' | ' | ' | ' |
Basic | 90.4 | 91.3 | 90.6 | 91.7 |
Dilutive effect of stock options, restricted stock and restricted stock units | 1.8 | 2.1 | 2 | 2.5 |
Diluted shares | 92.2 | 93.4 | 92.6 | 94.2 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' |
Additional shares issuable upon the exercise of options and performance-based restricted stock units that were excluded from computation of earnings per share | ' | ' | 1.2 | 1.3 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (Sales Returns and Allowances [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Sales Returns and Allowances [Member] | ' | ' | ' | ' |
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | ' | ' | ' | ' |
Beginning reserve balance | $245 | $228 | $230 | $247 |
Amount charged against revenue to increase reserve | 219 | 191 | 379 | 329 |
Amount credited against customer accounts to decrease reserve | -196 | -172 | -343 | -323 |
Foreign currency translation | 2 | 4 | 4 | -2 |
Ending reserve balance | $270 | $251 | $270 | $251 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Mar. 30, 2013 |
Sales Revenue, Goods, Net [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Allowance for Doubtful Accounts [Member] | Allowance for Doubtful Accounts [Member] | |||||
Sales Revenue, Goods, Net [Member] | |||||||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping costs | $9 | $9 | $17 | $17 | ' | ' | ' | ' | ' |
Handling costs | 52 | 38 | 91 | 74 | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution of Key Wholesale Customers | ' | ' | ' | ' | 20.00% | 35.00% | 12.00% | ' | ' |
Valuation Allowance [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation Allowances and Reserves, Balance | ' | ' | ' | ' | ' | ' | ' | $15 | $15 |
Acquisition_Details
Acquisition (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Jul. 01, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Apr. 10, 2013 |
Australia and New Zealand Licensed Operations Acquisition [Member] | Australia and New Zealand Licensed Operations Acquisition [Member] | Chaps Menswear License Acquisition [Member] | Chaps Menswear License Acquisition [Member] | Chaps Menswear License Acquisition [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | ' | ' | ' | ' | ' | $9 | ' | ' | $30 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | ' | ' | 4 | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | ' | ' | 3 | ' | ' | 9 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | ' | ' | ' | ' | ' | ' | ' | ' | 19 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | ' | ' | ' | ' | ' | ' | ' | ' | 58 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | ' | ' | ' | ' | ' | ' | ' | ' | -22 |
Business combinations, recognized identifiable assets acquired and liabilities assumed, other liabilities, net | ' | ' | ' | ' | ' | ' | ' | ' | -2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | ' | ' | ' | ' | ' | -3 | ' | ' | -24 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | ' | ' | ' | ' | ' | 15 | ' | ' | 34 |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | 15 | ' | 18 | ' | ' |
Gain on acquisition of Chaps | $0 | $0 | $16 | $0 | ' | ' | ' | $16 | ' |
Acquisition_Details_Textuals
Acquisition (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 |
Australia and New Zealand Licensed Operations Acquisition [Member] | Chaps Menswear License Acquisition [Member] | Chaps Menswear License Acquisition [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | $15 | $18 | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '9 years | '9 months | ' | ' | ' |
Business Acquisition, Transaction Costs | ' | ' | ' | ' | $3 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | |||
Inventories | ' | ' | ' |
Raw materials | $2 | $5 | $5 |
Work-in-process | 1 | 1 | 1 |
Finished goods | 1,212 | 890 | 1,054 |
Total inventories | $1,215 | $896 | $1,060 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Land and improvements | $13 | $10 |
Buildings and improvements | 176 | 130 |
Furniture and fixtures | 639 | 601 |
Machinery and equipment | 208 | 189 |
Capitalized software | 331 | 252 |
Leasehold improvements | 1,006 | 934 |
Construction in progress | 331 | 137 |
Property plant and equipment, gross | 2,704 | 2,253 |
Less: accumulated depreciation | -1,424 | -1,321 |
Property and equipment, net | $1,280 | $932 |
Other_Assets_and_Liabilities_D
Other Assets and Liabilities (Details 1) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Other taxes receivable | $40 | $31 |
Prepaid rent expense | 30 | 28 |
Deferred rent receivable | 23 | 17 |
Derivative financial instruments | 20 | 15 |
Prepaid samples | 17 | 14 |
Other prepaid expenses and current assets | 72 | 56 |
Prepaid expenses and other current assets | 202 | 161 |
Other Liabilities, Current [Abstract] | ' | ' |
Accrued operating expenses | 177 | 172 |
Accrued inventory | 160 | 93 |
Accrued payroll and benefits | 134 | 199 |
Other taxes payable | 60 | 51 |
Accrued capital expenditures | 56 | 53 |
Deferred income | 40 | 40 |
Dividends payable | 36 | 36 |
Other accrued expenses and current liabilities | 31 | 20 |
Other Liabilities, Current | 694 | 664 |
Other Liabilities, Noncurrent [Abstract] | ' | ' |
Capital lease obligations | 263 | 38 |
Deferred rent obligations | 208 | 189 |
Deferred income | 48 | 58 |
Deferred tax liabilities | 28 | 30 |
Other non-current liabilities | 55 | 47 |
Other non-current liabilities | $602 | $362 |
Restructuring_Details_Textual
Restructuring (Details Textual) (Rugby Restructuring [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 | Mar. 30, 2013 |
Store | employee | |
Rugby Restructuring [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Number of Rugby stores closed | 14 | ' |
Number of employees eliminated | ' | 160 |
Restructuring Charges | $0 | $7 |
Payments for Restructuring | -2 | ' |
Restructuring Reserve | $2 | $4 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes at the U.S. federal statutory rate | $101 | $120 | $194 | $219 |
State and local income taxes, net of federal benefit | 8 | 8 | 14 | 15 |
Foreign income taxed at different rates, net of U.S. foreign tax | -28 | -19 | -44 | -35 |
Unrecognized tax benefits and settlements of tax examinations | 2 | 18 | 3 | 18 |
Other | 0 | 1 | 0 | 2 |
Total provision for income taxes | $83 | $128 | $167 | $219 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Reconciliation of unrecognized tax benefits, excluding interest and penalties | ' | ' | ' | ' |
Unrecognized tax benefits beginning balance | $101 | $126 | $100 | $129 |
Additions related to current period tax positions | 1 | 1 | 2 | 2 |
Additions related to prior period tax positions | 0 | 2 | 1 | 2 |
Reductions related to settlements with taxing authorities | 0 | -1 | -2 | -2 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | -1 | 0 | -1 | 0 |
Changes related to foreign currency translation | 1 | 2 | 2 | -1 |
Unrecognized tax benefits ending balance | 102 | 130 | 102 | 130 |
Reconciliation of accrued interest and penalties related to unrecognized tax benefits | ' | ' | ' | ' |
Accrued interest and penalties beginning balance | 50 | 38 | 50 | 39 |
Net additions charged to expense | 2 | 19 | 3 | 20 |
Reductions related to prior period tax positions | 0 | 0 | -1 | -2 |
Changes related to foreign currency translation | 1 | 0 | 1 | 0 |
Accrued interest and penalties ending balance | $53 | $57 | $53 | $57 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 |
Rate | |||
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ' | ' |
UnrecognizedTaxBenefitsReserveForInterestAssessmentonWithholdingTax | ' | $17 | ' |
Non-current liability for unrecognized tax benefits | 155 | ' | 150 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | $121 | ' | $115 |
Debt_Details
Debt (Details) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
2.125% Senior Notes due September 26, 2018 | $300 | $0 |
Euro Debt | 283 | 267 |
Long-term Debt | 583 | 267 |
Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 300 | 0 |
Euro Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $283 | $267 |
Debt_Details_Textual
Debt (Details Textual) | 6 Months Ended | 3 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2013 |
USD ($) | EUR (€) | USD ($) | Senior Notes [Member] | Senior Notes [Member] | Euro Debt [Member] | Euro Debt [Member] | Euro Debt [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | ||||
Rate | Rate | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | $583 | ' | $267 | $300 | $0 | $283 | ' | $267 |
Debt instrument, amount outstanding | ' | € 209 | ' | ' | ' | ' | € 209 | ' |
Debt Instrument, Maturity Date | 4-Oct-13 | 4-Oct-13 | ' | 26-Sep-18 | ' | 4-Oct-13 | 4-Oct-13 | ' |
Long-term debt, net of discount | ' | ' | ' | 99.90% | ' | ' | ' | ' |
Interest rate on debt | 4.50% | 4.50% | ' | 2.13% | ' | 4.50% | 4.50% | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Debt instrument restrictive covenants | ' | ' | ' | 'The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. | ' | ' | ' | ' |
Debt_Details_Textual_1
Debt (Details Textual 1) | 6 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
Global Credit Facility [Member] | Chinese Credit Facility [Member] | Chinese Credit Facility [Member] | Malaysia Credit Facility [Member] | Malaysia Credit Facility [Member] | South Korea Credit Facility [Member] | South Korea Credit Facility [Member] | Taiwan Credit Facility [Member] | Taiwan Credit Facility [Member] | Global Credit Facility [Member] | |
USD ($) | USD ($) | CNY | USD ($) | MYR | USD ($) | KRW | USD ($) | TWD | Quarter | |
Credit Facilities (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under unsecured revolving line of credit | $500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, expiration date | 1-Mar-16 | 9-Apr-14 | 9-Apr-14 | 17-Sep-14 | 17-Sep-14 | 31-Oct-14 | 31-Oct-14 | 15-Oct-14 | 15-Oct-14 | ' |
Maximum borrowing capacity | 750 | 16 | 100 | 5 | 16 | 10 | 11,000 | 2 | 59 | ' |
Borrowings outstanding under revolving credit facilities | 0 | 0 | ' | 0 | ' | 0 | ' | 0 | ' | ' |
Line of credit facility, contingent liability for outstanding LOCs | $9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility covenant terms | 'The Global Credit Facility contains a number of covenants that, among other things, restrict the Companybs ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the bleverage ratiob) of no greater than 3.75 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding plus eight times consolidated rent expense for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined generally as consolidated net income plus (i)B income tax expense, (ii)B net interest expense, (iii)B depreciation and amortization expense, and (iv)B consolidated rent expense. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum ratio of adjusted debt to consolidated EBITDAR as of date of measurement for four consecutive quarters | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75 |
Period used to calculate the leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 |
Multiplier used for consolidated rent expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 |
Credit Facility covenant compliance | 'no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Companybs Global Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Financial assets recorded at fair value: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $24 | $15 | ||
Financial liabilities recorded at fair value: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 7 | 5 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Total financial assets recorded at fair value | 58 | [1] | 237 | [1] |
Financial liabilities recorded at fair value: | ' | ' | ||
Total financial liabilities recorded at fair value | 7 | [2] | 5 | [2] |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 24 | [1] | 15 | [1] |
Financial liabilities recorded at fair value: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 7 | [2] | 5 | [2] |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Investments recorded at fair value | 32 | [1] | 29 | [1] |
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Investments recorded at fair value | 0 | [1] | 92 | [1] |
Corporate Bond Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Investments recorded at fair value | 0 | [1] | 82 | [1] |
Variable Rate Demand Obligation [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Investments recorded at fair value | 0 | [1] | 17 | [1] |
Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Financial assets recorded at fair value: | ' | ' | ||
Investments recorded at fair value | $2 | [1] | $2 | [1] |
[1] | Based on LevelB 1 measurements, except for auction rate securities and derivative financial instruments, which are based on Level 2 measurements. | |||
[2] | Based on LevelB 2 measurements. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 6 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Mar. 30, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
2.125% Senior Notes due September 26, 2018 | $300 | $0 | ||
Euro Debt | 283 | 267 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||
Goodwill Impairment | 0 | ' | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
2.125% Senior Notes, Fair Value | 302 | [1] | ' | |
Euro Debt, Fair Value | $282 | [1] | $272 | [1] |
[1] | Based on LevelB 2 measurements. |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 6 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Mar. 30, 2013 | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | $932 | $801 | ||
Derivative Assets | ' | ' | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 3 | 14 | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 21 | [1],[2],[3],[4] | ' | |
Derivative Asset, Fair Value, Gross Asset | 24 | 15 | ||
Derivative Liabilities | ' | ' | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | -6 | -3 | ||
Derivative Instruments and Hedges, Liabilities | -7 | -5 | ||
Interest rate on debt | 4.50% | ' | ||
Debt Instrument, Maturity Date | 4-Oct-13 | ' | ||
Other Current Assets [Member] | ' | ' | ||
Derivative Assets | ' | ' | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 17 | [1],[2] | 1 | [1],[2],[3] |
Other Current Liabilities [Member] | ' | ' | ||
Derivative Liabilities | ' | ' | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | -1 | [1],[2],[3] | -2 | [1],[2],[3] |
Other Noncurrent Assets [Member] | ' | ' | ||
Derivative Assets | ' | ' | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 4 | [1],[2] | ' | |
Designated [Member] | ' | ' | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | 486 | 531 | ||
Undesignated [Member] | ' | ' | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | 446 | [1],[2] | 270 | [1],[2] |
FC- Inventory purchases [Member] | ' | ' | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | 339 | [1] | 366 | [1] |
Derivative Liabilities | ' | ' | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | -4 | [1],[3],[5] | ' | |
FC- Inventory purchases [Member] | Other Current Assets [Member] | ' | ' | ||
Derivative Assets | ' | ' | ||
Fair value of assets for designated Fx forward exchange contracts | 2 | [1],[3] | 14 | [1],[3] |
FC- Inventory purchases [Member] | Other Current Liabilities [Member] | ' | ' | ||
Derivative Liabilities | ' | ' | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | -3 | [1],[3] | -2 | [1],[3] |
FC- Inventory purchases [Member] | Other Noncurrent Liabilities [Member] | ' | ' | ||
Derivative Liabilities | ' | ' | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | -1 | [1],[3] | ' | |
FC-Other [Member] | ' | ' | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | 147 | [1],[6] | 25 | [1],[6] |
Derivative Assets | ' | ' | ||
Fair value of assets for designated Fx forward exchange contracts | ' | 0 | [1],[6] | |
FC-Other [Member] | Other Current Assets [Member] | ' | ' | ||
Derivative Assets | ' | ' | ||
Fair value of assets for designated Fx forward exchange contracts | 1 | [1],[3],[6] | ' | |
FC-Other [Member] | Other Current Liabilities [Member] | ' | ' | ||
Derivative Liabilities | ' | ' | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | -2 | [1],[3],[6] | -1 | [1],[3],[6] |
Net Investment Hedging [Member] | ' | ' | ||
Notional Amounts of Derivative Financial Instruments | ' | ' | ||
Notional amount of hedges | $0 | [1] | $140 | [1] |
[1] | FC =orward foreign currency exchange contracts; NI =et Investment Hedge; Euro Debt =uro-denominated 4.5% notes due October 4, 2013. | |||
[2] | Primarily related to undesignated hedges of foreign currency-denominated intercompany loans, third-party debt obligations, and other net operational exposures. | |||
[3] | PP =repaid expenses and other current assets; AE =ccrued expenses and other current liabilities; ONCL =ther non-current liabilities; ONCA =ther non-current assets. | |||
[4] | $17 million included within PP and $4 million included within ONCA. | |||
[5] | $3 million included within AE and $1 million included within ONCL. | |||
[6] | Primarily related to designated hedges of foreign currency-denominated intercompany royalty payments and marketing contributions, and other net operational exposures. |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $24 | $15 |
Gross amount of derivatives assets subject to master netting arrangements not offset | -2 | -3 |
Derivative Asset | 22 | 12 |
Derivative Liability, Fair Value, Gross Liability | -7 | -5 |
Gross amount of derivative liabilities subject to master netting arrangements no offset | 2 | 3 |
Derivative Liability, Current | ($5) | ($2) |
Financial_Instruments_Details_1
Financial Instruments (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Total gain (loss) recognized in OCI on derivative instruments | ' | ' | ' | ' | ||||
Gain Loss Recognized In Other Comprehensive Income | ($7) | ($6) | ($9) | $14 | ||||
Designated Cash Flow Hedge [Member] | ' | ' | ' | ' | ||||
Total gain (loss) recognized in OCI on derivative instruments | ' | ' | ' | ' | ||||
Gain Loss Recognized In Other Comprehensive Income | -8 | -2 | -9 | 4 | ||||
Reclassification of hedge gain (loss) from accumulated OCI into income | ' | ' | ' | ' | ||||
Gains (losses) for total designated hedges reclassified from AOCI to earnings | 0 | 8 | 5 | 13 | ||||
Net Investment Hedging [Member] | ' | ' | ' | ' | ||||
Total gain (loss) recognized in OCI on derivative instruments | ' | ' | ' | ' | ||||
Gain Loss Recognized In Other Comprehensive Income | 1 | [1] | -4 | [1] | 0 | [1] | 10 | [1] |
FC- Inventory purchases [Member] | Designated Cash Flow Hedge [Member] | ' | ' | ' | ' | ||||
Total gain (loss) recognized in OCI on derivative instruments | ' | ' | ' | ' | ||||
Gain Loss Recognized In Other Comprehensive Income | -7 | -1 | -8 | 8 | ||||
Reclassification of hedge gain (loss) from accumulated OCI into income | ' | ' | ' | ' | ||||
Gains (losses) for total designated hedges reclassified from AOCI to earnings | 1 | 8 | 6 | 11 | ||||
FC-Other [Member] | Designated Cash Flow Hedge [Member] | ' | ' | ' | ' | ||||
Total gain (loss) recognized in OCI on derivative instruments | ' | ' | ' | ' | ||||
Gain Loss Recognized In Other Comprehensive Income | -1 | -1 | -1 | -4 | ||||
Reclassification of hedge gain (loss) from accumulated OCI into income | ' | ' | ' | ' | ||||
Gains (losses) for total designated hedges reclassified from AOCI to earnings | ($1) | $0 | ($1) | $2 | ||||
[1] | Amounts would be recognized as a gain (loss) on the sale or liquidation of the hedged net investment. |
Financial_Instruments_Details_2
Financial Instruments (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | ' | ' | ' | ' |
Gains (losses) on foreign currency derivative instruments not designated as hedging instruments | $10 | ($3) | $18 | ($5) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $10 | ($3) | $18 | ($5) |
Financial_Instruments_Details_3
Financial Instruments (Details 4) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Available-for-Sale: | ' | ' |
Available-for-sale Securities, Current | $27 | $141 |
Available-for-sale Securities, Noncurrent | 7 | 81 |
Available-for-sale Other Securities, Total | 34 | 222 |
Other: | ' | ' |
Time deposits, Short term | 545 | 184 |
Time deposits, Noncurrent | 0 | 0 |
Time deposits, Total | 545 | 184 |
Total: | ' | ' |
Total Investments, Short-term | 572 | 325 |
Total Investments, Noncurrent | 7 | 81 |
Total Investments | 579 | 406 |
Government bonds - U.S. [Member] | ' | ' |
Available-for-Sale: | ' | ' |
Available-for-sale Debt Securities, Short term | 27 | 21 |
Available-for-sale Securities, Debt Securities, Noncurrent | 5 | 8 |
Available-for-sale Debt Securities, Total | 32 | 29 |
Government bonds - non-U.S. [Member] | ' | ' |
Available-for-Sale: | ' | ' |
Available-for-sale Debt Securities, Short term | 0 | 67 |
Available-for-sale Securities, Debt Securities, Noncurrent | 0 | 25 |
Available-for-sale Debt Securities, Total | 0 | 92 |
Corporate Bonds - non-U.S. [Member] | ' | ' |
Available-for-Sale: | ' | ' |
Available-for-sale Debt Securities, Short term | 0 | 36 |
Available-for-sale Securities, Debt Securities, Noncurrent | 0 | 46 |
Available-for-sale Debt Securities, Total | 0 | 82 |
Variable rate municipal securities - U.S. [Member] | ' | ' |
Available-for-Sale: | ' | ' |
Available-for-sale Debt Securities, Short term | 0 | 17 |
Available-for-sale Securities, Debt Securities, Noncurrent | 0 | 0 |
Available-for-sale Debt Securities, Total | 0 | 17 |
Auction Rate Securities [Member] | ' | ' |
Available-for-Sale: | ' | ' |
Available-for-sale Debt Securities, Short term | 0 | 0 |
Available-for-sale Securities, Debt Securities, Noncurrent | 2 | 2 |
Available-for-sale Debt Securities, Total | $2 | $2 |
Financial_Instruments_Details_4
Financial Instruments (Details Textual) | 6 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 |
USD ($) | EUR (€) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $2 | ' |
Net gains (losses) deferred in AOCI for derivative financial instruments expected to be recognized in the earnings over the next 12 months | 2 | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | ' |
Maximum length of time hedged in cash flow hedge | '2 years | ' |
Foreign currency exchange forward contracts maturities, minimum | '3 months | ' |
Foreign currency exchange forward contract maturities, maximum | '2 years | ' |
Debt instrument, amount outstanding | ' | € 209 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | Compensatory Damages [Member] | Punitive Damages [Member] | Senior Notes [Member] | Senior Notes [Member] | New flagship store on Fifth Avenue NYC [Member] | ||
Rate | |||||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Capital Leases, Future Minimum Payments Due | ' | ' | ' | ' | ' | ' | $235 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | ' | ' | ' | ' | ' | ' | 25 |
Capital Leases, Future Minimum Payments Due in Two Years | ' | ' | ' | ' | ' | ' | 25 |
Capital Leases, Future Minimum Payments Due in Three Years | ' | ' | ' | ' | ' | ' | 25 |
Capital Leases, Future Minimum Payments Due in Four Years | ' | ' | ' | ' | ' | ' | 25 |
Capital Leases, Future Minimum Payments Due in Five Years | ' | ' | ' | ' | ' | ' | 25 |
Capital Leases, Future Minimum Payments Due Thereafter | ' | ' | ' | ' | ' | ' | 110 |
Construction in Progress, Gross | 331 | 137 | ' | ' | ' | ' | 230 |
Capital lease obligations | ' | ' | ' | ' | ' | ' | 230 |
Long-term Debt | 583 | 267 | ' | ' | 300 | 0 | ' |
Interest rate on debt | 4.50% | ' | ' | ' | 2.13% | ' | ' |
Aggregate interest on long-term debt | ' | ' | ' | ' | $32 | ' | ' |
Damages sought | ' | ' | 'in excess of $250B million | 'not less than $750B million | ' | ' | ' |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Increase Decrease In Stockholders Equity [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $3,785 | $3,653 |
Comprehensive income | 237 | 250 | 406 | 408 |
Dividends declared | ' | ' | -72 | -73 |
Repurchases of common stock | ' | ' | -210 | -347 |
Stock-based compensation | ' | ' | 43 | 43 |
Shares issued and tax benefits recognized pursuant to stock-based compensation plans | ' | ' | 39 | 52 |
Ending Balance | $3,991 | $3,736 | $3,991 | $3,736 |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 |
General repurchase program [Member] | General repurchase program [Member] | Prepaid Repurchase Program [Member] | Prepaid Repurchase Program [Member] | Prepaid Repurchase Program [Member] | Withholding in satisfaction of taxes on vested equity award [Member] | Withholding in satisfaction of taxes on vested equity award [Member] | ||||||||
Treasury Stock Repurchases (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchases of common stock, shares | ' | ' | ' | ' | ' | ' | ' | 1.1 | 2 | ' | ' | 0.6 | 0.4 | 0.4 |
Repurchases of common stock | ' | ' | ' | ' | ' | $210 | $347 | $200 | $300 | ' | ' | ' | $60 | $47 |
Payments for Repurchase of Common Stock | ' | ' | ' | ' | ' | 210 | 347 | ' | ' | 50 | 50 | ' | ' | ' |
Stock Repurchase Program, Period in Force | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '93 days | ' | ' |
Treasury stock repurchase program available amount | ' | ' | ' | ' | ' | 427 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per share | $0.45 | $0.40 | $0.40 | $0.40 | $0.20 | $0.80 | $0.80 | ' | ' | ' | ' | ' | ' | ' |
Dividends paid (in USD per share) | ' | ' | ' | ' | ' | $73 | $55 | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | $71 | ' | $73 | ' | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 50 | [1] | ' | 48 | [1] | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ' | 0 | ' | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 50 | 42 | 48 | 1 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance | 121 | ' | 121 | ' | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Designated Hedges, Beginning Balance | 18 | ' | 23 | ' | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -18 | [1] | ' | -19 | [1] | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | ' | -4 | ' | ||
Net gains (losses) on derivative financial instruments | -18 | -9 | -23 | -3 | ||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Designated Hedges, Ending Balance | 0 | ' | 0 | ' | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Beginning Balance | ' | ' | 5 | ' | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ' | ' | -4 | ' | ||
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecurites | ' | ' | -1 | ' | ||
Net gains (losses) on available-for-sale investments | 0 | 3 | -5 | 3 | ||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Ending Balance | 0 | ' | 0 | ' | ||
Defined Benefit Plan Accumulated Other Comprehensive Income Loss After Tax [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax, Beginning Balance | -7 | ' | -7 | ' | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | [1] | ' | 0 | [1] | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, before Reclassification Adjustments, Tax | 0 | ' | 0 | ' | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | ' | 0 | ' | ||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax, Ending Balance | -7 | ' | -7 | ' | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | 82 | ' | 94 | ' | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 32 | [1] | ' | 25 | [1] | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ' | -5 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | 32 | 36 | 20 | 1 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | $114 | ' | $114 | ' | ||
[1] | Amounts are net of taxes, which are immaterial for all periods presented. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ||
Cost of Goods Sold | ($831) | ($767) | ($1,480) | ($1,368) | ||
Foreign Currency Transaction Gain (Loss), before Tax | 1 | 0 | -5 | -3 | ||
Other Nonoperating Income | 2 | 2 | 4 | 3 | ||
Provision for income taxes | -83 | -128 | -167 | -219 | ||
Net income | 205 | 214 | 386 | 407 | ||
Available-for-sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ||
Other Nonoperating Income | 0 | ' | 1 | ' | ||
Provision for income taxes | 0 | ' | 0 | ' | ||
Net income | 0 | ' | 1 | ' | ||
Forward Exchange Contract Inventory Purchases [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ||
Cost of Goods Sold | 1 | [1] | ' | 6 | [1] | ' |
Forward Exchange Contract Other [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ||
Foreign Currency Transaction Gain (Loss), before Tax | -1 | [1] | ' | -1 | [1] | ' |
Foreign Exchange Forward [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ||
Provision for income taxes | 0 | ' | -1 | ' | ||
Net income | $0 | ' | $4 | ' | ||
[1] | FC =orward foreign currency exchange contracts. |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Summary of the total compensation expense recorded within SG&A expenses and the associated income tax benefits recognized related to stock-based compensation arrangements | ' | ' | ' | ' |
Compensation expense | $21 | $21 | $43 | $43 |
Income tax benefit | ($8) | ($7) | ($16) | ($14) |
Recovered_Sheet1
Stock-Based Compensation (Details 1) (Employee Stock Option [Member], USD $) | 6 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Employee Stock Option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '4 years 2 months 12 days | '4 years 7 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 33.30% | 44.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.97% | 1.05% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.10% | 0.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $46.98 | $48.09 |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details 2) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Summary of the stock option activity | ' |
Options beginning outstanding | 2,954 |
Granted | 723 |
Exercised | -207 |
Cancelled/Forfeited | -39 |
Options ending outstanding | 3,431 |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 3) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Restricted Stock [Member] | ' |
Summary of restricted stock and service-based RSU activity | ' |
Nonvested beginning balance | 5 |
Granted | 3 |
Vested | -3 |
Nonvested ending balance | 5 |
Service-Based Restricted Stock Units [Member] | ' |
Summary of restricted stock and service-based RSU activity | ' |
Nonvested beginning balance | 98 |
Granted | 0 |
Vested | -83 |
Nonvested ending balance | 15 |
Stockbased_Compensation_Detail3
Stock-based Compensation (Details 4) (Performance-based RSUs - with TSR Modifier [Member], USD $) | 6 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Performance-based RSUs - with TSR Modifier [Member] | ' | ' |
Weighted average assumptions used to determine the fair values of performance-based RSUs with a TSR modifier | ' | ' |
Expected term | '3 years | '3 years |
Expected volatility | 33.10% | 34.00% |
Expected dividend yield | 0.96% | 1.13% |
Risk-free interest rate | 0.40% | 0.30% |
Weighted-average grant date fair value | $171.07 | $136.16 |
Stockbased_Compensation_Detail4
Stock-based Compensation (Details 5) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Performance Shares [Member] | ' |
Summary of the performance-based RSU activity | ' |
Nonvested beginning balance | 1,015 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 283 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Change Due To Performance Or Market Conditions Achievement | 141 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -627 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -15 |
Nonvested ending balance | 797 |
Performance Based Restricted Stock Units With TSR Modifier [Member] | ' |
Summary of the performance-based RSU activity | ' |
Nonvested beginning balance | 73 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 65 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Change Due To Performance Or Market Conditions Achievement | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 |
Nonvested ending balance | 138 |
Stockbased_Compensation_Detail5
Stock-based Compensation (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Shares [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1.7 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | '3 years | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | '7 years | ' | ' | ' | ' |
Weighted average grant date fair value of equity awards other than options | ' | ' | $164.76 | $173.33 | $172.91 | $137.40 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net revenues by segment | ' | ' | ' | ' |
Sales revenue | $1,872 | $1,816 | $3,486 | $3,367 |
Licensing revenue | 43 | 46 | 82 | 88 |
Total net revenues | 1,915 | 1,862 | 3,568 | 3,455 |
Wholesale [Member] | ' | ' | ' | ' |
Net revenues by segment | ' | ' | ' | ' |
Sales revenue | 928 | 915 | 1,663 | 1,609 |
Retail [Member] | ' | ' | ' | ' |
Net revenues by segment | ' | ' | ' | ' |
Sales revenue | 944 | 901 | 1,823 | 1,758 |
Licensing [Member] | ' | ' | ' | ' |
Net revenues by segment | ' | ' | ' | ' |
Licensing revenue | $43 | $46 | $82 | $88 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating income | $295 | $348 | $571 | $640 | ||||
Operating expenses | -789 | -747 | -1,517 | -1,447 | ||||
Gain on acquisition of Chaps | 0 | 0 | 16 | 0 | ||||
Wholesale [Member] | ' | ' | ' | ' | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating income | 202 | 232 | 356 | 386 | ||||
Retail [Member] | ' | ' | ' | ' | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating income | 135 | 157 | 295 | 336 | ||||
Licensing [Member] | ' | ' | ' | ' | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating income | 35 | 35 | 64 | 64 | ||||
Operating Segments [Member] | ' | ' | ' | ' | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating income | 372 | 424 | 715 | 786 | ||||
Unallocated amount to segment [Member] | ' | ' | ' | ' | ||||
Operating income by segment | ' | ' | ' | ' | ||||
Operating expenses | -77 | -76 | -160 | -146 | ||||
Gain on acquisition of Chaps | $0 | [1] | $0 | [1] | $16 | [1] | $0 | [1] |
[1] | Note 5 for further discussion of the gain on acquisition of Chaps. |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | $66 | $57 | $126 | $113 |
Wholesale Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | 18 | 17 | 35 | 34 |
Retail Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | 31 | 29 | 59 | 56 |
Unallocated corporate expenses [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | $17 | $11 | $32 | $23 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $1,915 | $1,862 | $3,568 | $3,455 | ||||
Americas [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 1,296 | [1],[2] | 1,221 | [1],[2] | 2,450 | [1],[2] | 2,296 | [1],[2] |
Europe [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 415 | [2] | 411 | [2] | 725 | [2] | 711 | [2] |
Asia [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 204 | [2],[3] | 230 | [2],[3] | 393 | [2],[3] | 448 | [2],[3] |
United States | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $1,231 | $1,169 | $2,336 | $2,206 | ||||
[1] | Includes net revenues earned in the U.S., Canada, and Latin America. Net revenues earned in the U.S. were $1.231 billion and $2.336 billion during the three-month and six-month periods ended SeptemberB 28, 2013, respectively, and $1.169 billion and $2.206 billion during the three-month and six-month periods ended SeptemberB 29, 2012, respectively. | |||||||
[2] | Net revenues for certain of the Companybs licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license | |||||||
[3] | Includes net revenues earned in South Korea, Japan, China, Hong Kong, Macau, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam, Australia, and New Zealand. |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Mar. 30, 2013 |
Segment | ||
Segment Reporting Information [Line Items] | ' | ' |
Construction in Progress, Gross | $331 | $137 |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract] | ' | ' |
Number of reportable segments | 3 | ' |
New flagship store on Fifth Avenue NYC [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Construction in Progress, Gross | $230 | ' |
Additional_Financial_Informati2
Additional Financial Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' | ' | ' |
Construction in Progress, Gross | $331 | ' | $331 | ' | $137 |
Capital Expenditures Incurred but Not yet Paid | ' | ' | 56 | 57 | ' |
Cash Interest and Taxes | ' | ' | ' | ' | ' |
Cash paid for interest | 1 | 1 | 2 | 3 | ' |
Cash paid for income taxes | 132 | 129 | 168 | 207 | ' |
New flagship store on Fifth Avenue NYC [Member] | ' | ' | ' | ' | ' |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' | ' | ' |
Construction in Progress, Gross | 230 | ' | 230 | ' | ' |
Capital lease obligations | $230 | ' | $230 | ' | ' |