Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jun. 28, 2014 | Aug. 01, 2014 | Dec. 27, 2013 |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'COH | ' | ' |
Entity Registrant Name | 'COACH INC | ' | ' |
Entity Central Index Key | '0001116132 | ' | ' |
Current Fiscal Year End Date | '--06-28 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 274,631,764 | ' |
Entity Public Float | ' | ' | $15.50 |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $591,923 | $1,062,785 |
Short-term investments | 276,703 | 72,106 |
Trade accounts receivable, less allowances of $1,419 and $1,138, respectively | 198,577 | 175,477 |
Inventories | 526,175 | 524,706 |
Deferred income taxes | 112,630 | 111,118 |
Prepaid expenses | 45,473 | 37,956 |
Other current assets | 103,736 | 86,799 |
Total current assets | 1,855,217 | 2,070,947 |
Property and equipment, net | 713,900 | 694,771 |
Long-term investments | 484,518 | 197,340 |
Goodwill | 361,407 | 345,039 |
Intangible assets | 9,788 | 9,788 |
Deferred income taxes | 111,556 | 84,845 |
Other assets | 126,745 | 129,167 |
Total assets | 3,663,131 | 3,531,897 |
Current Liabilities: | ' | ' |
Accounts payable | 153,870 | 178,857 |
Accrued liabilities | 518,763 | 543,153 |
Current debt | 140,485 | 500 |
Total current liabilities | 813,118 | 722,510 |
Long-term debt | 0 | 485 |
Other liabilities | 429,360 | 399,744 |
Total liabilities | 1,242,478 | 1,122,739 |
See Note 12 on commitments and contingencies | ' | ' |
Stockholders’ Equity: | ' | ' |
Preferred stock: (authorized 25,000 shares; $0.01 par value) none issued | 0 | 0 |
Common stock: (authorized 1,000,000 shares; $0.01 par value) issued and outstanding – 274,361 and 281,902, respectively | 2,744 | 2,819 |
Additional paid-in-capital | 2,646,123 | 2,520,469 |
Accumulated deficit | -219,455 | -101,884 |
Accumulated other comprehensive loss | -8,759 | -12,246 |
Total stockholders’ equity | 2,420,653 | 2,409,158 |
Total liabilities and stockholders’ equity | $3,663,131 | $3,531,897 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowances | $1,419 | $1,138 |
Preferred stock, authorized (shares) | 25,000,000 | 25,000,000 |
Preferred stock, par value (USD per share) | $0.01 | $0.01 |
Preferred stock, issued (shares) | 0 | 0 |
Common stock, authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (USD per share) | $0.01 | $0.01 |
Common stock, issued (shares) | 274,361,000 | 281,902,000 |
Common stock, outstanding (shares) | 274,361,000 | 281,902,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $4,806,226 | $5,075,390 | $4,763,180 |
Cost of sales | 1,509,263 | 1,377,242 | 1,297,102 |
Gross profit | 3,296,963 | 3,698,148 | 3,466,078 |
Selling, general and administrative expenses | 2,176,889 | 2,173,607 | 1,954,089 |
Operating income | 1,120,074 | 1,524,541 | 1,511,989 |
Interest income | 2,181 | 2,369 | 720 |
Other expense | 0 | -6,384 | -7,046 |
Income before provision for income taxes | 1,122,255 | 1,520,526 | 1,505,663 |
Provision for income taxes | 340,919 | 486,106 | 466,753 |
Net income | $781,336 | $1,034,420 | $1,038,910 |
Net income per share | ' | ' | ' |
Basic (USD per share) | $2.81 | $3.66 | $3.60 |
Diluted (USD per share) | $2.79 | $3.61 | $3.53 |
Shares used in computing net income per share | ' | ' | ' |
Basic (shares) | 277,790 | 282,494 | 288,284 |
Diluted (shares) | 280,379 | 286,307 | 294,129 |
Cash dividends declared per common share (USD per share) | $1.35 | $1.24 | $0.98 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net Income | $781,336 | $1,034,420 | $1,038,910 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Unrealized (losses) gains on cash flow hedging derivatives, net | -3,151 | 4,202 | 1,004 |
Unrealized gains (losses) on available-for-sale investments, net | 4,155 | -1,276 | 0 |
Change in pension liability, net | 105 | 1,343 | -1,388 |
Foreign currency translation adjustments | 2,378 | -66,990 | -4,052 |
Other comprehensive income (loss), net of tax | 3,487 | -62,721 | -4,436 |
Comprehensive income | $784,823 | $971,699 | $1,034,474 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in- Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income/(Loss) |
In Thousands, except Per Share data | |||||
Beginning balance at Jul. 02, 2011 | $1,612,569 | $2,886 | $2,000,426 | ($445,654) | $54,911 |
Beginning balance (in shares) at Jul. 02, 2011 | ' | 288,515 | ' | ' | ' |
Net Income | 1,038,910 | ' | ' | 1,038,910 | ' |
Other comprehensive loss | -4,436 | ' | ' | ' | -4,436 |
Shares issued for stock options and employee benefit plans (in shares) | ' | 7,291 | ' | ' | ' |
Shares issued for stock options and employee benefit plans | 151,133 | 72 | 151,061 | ' | ' |
Share-based compensation | 107,511 | ' | 107,511 | ' | ' |
Excess tax benefit from share-based compensation | 68,057 | ' | 68,057 | ' | ' |
Repurchase and retirement of common stock (in shares) | -10,688 | -10,688 | ' | ' | ' |
Repurchase and retirement of common stock | -700,000 | -107 | ' | -699,893 | ' |
Dividends declared | -280,813 | ' | ' | -280,813 | ' |
Cash dividends declared per common share (USD per share) | $0.98 | ' | ' | ' | ' |
Ending balance at Jun. 30, 2012 | 1,992,931 | 2,851 | 2,327,055 | -387,450 | 50,475 |
Ending balance (in shares) at Jun. 30, 2012 | ' | 285,118 | ' | ' | ' |
Net Income | 1,034,420 | ' | ' | 1,034,420 | ' |
Other comprehensive loss | -62,721 | ' | ' | ' | -62,721 |
Shares issued for stock options and employee benefit plans (in shares) | ' | 3,850 | ' | ' | ' |
Shares issued for stock options and employee benefit plans | 46,163 | 39 | 46,124 | ' | ' |
Share-based compensation | 120,460 | ' | 120,460 | ' | ' |
Excess tax benefit from share-based compensation | 26,830 | ' | 26,830 | ' | ' |
Repurchase and retirement of common stock (in shares) | -7,066 | -7,066 | ' | ' | ' |
Repurchase and retirement of common stock | -400,000 | -71 | ' | -399,929 | ' |
Dividends declared | -348,925 | ' | ' | -348,925 | ' |
Cash dividends declared per common share (USD per share) | $1.24 | ' | ' | ' | ' |
Ending balance at Jun. 29, 2013 | 2,409,158 | 2,819 | 2,520,469 | -101,884 | -12,246 |
Ending balance (in shares) at Jun. 29, 2013 | ' | 281,902 | ' | ' | ' |
Net Income | 781,336 | ' | ' | 781,336 | ' |
Other comprehensive loss | 3,487 | ' | ' | ' | 3,487 |
Shares issued for stock options and employee benefit plans (in shares) | ' | 2,698 | ' | ' | ' |
Shares issued for stock options and employee benefit plans | 9,205 | 27 | 9,178 | ' | ' |
Share-based compensation | 104,940 | ' | 104,940 | ' | ' |
Excess tax benefit from share-based compensation | 11,536 | ' | 11,536 | ' | ' |
Repurchase and retirement of common stock (in shares) | -10,239 | -10,239 | ' | ' | ' |
Repurchase and retirement of common stock | -524,926 | -102 | ' | -524,824 | ' |
Dividends declared | -374,083 | ' | ' | -374,083 | ' |
Cash dividends declared per common share (USD per share) | $1.35 | ' | ' | ' | ' |
Ending balance at Jun. 28, 2014 | $2,420,653 | $2,744 | $2,646,123 | ($219,455) | ($8,759) |
Ending balance (in shares) at Jun. 28, 2014 | ' | 274,361 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net Income | $781,336 | $1,034,420 | $1,038,910 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 189,360 | 162,987 | 132,909 |
Provision for bad debt | 1,649 | -529 | 595 |
Share-based compensation | 95,106 | 120,460 | 107,511 |
Excess tax benefit from share-based compensation | -11,536 | -26,830 | -68,057 |
Transformation, restructuring and other related charges; sale of Reed Krakoff business | 108,204 | 25,740 | 0 |
Deferred income taxes | -22,787 | -6,520 | 27,568 |
Other noncash credits, net | 6,481 | 1,157 | 217 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable | -23,713 | -14,231 | -26,565 |
Inventories | -64,074 | -38,630 | -71,680 |
Other liabilities | 5,745 | -12,974 | -17,581 |
Accounts payable | -30,212 | 30,394 | 36,494 |
Accrued liabilities | 14,070 | 98,865 | 84,180 |
Other balance sheet changes, net | -64,219 | 39,665 | -22,812 |
Net cash provided by operating activities | 985,410 | 1,413,974 | 1,221,689 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Acquisition of interest in equity method investment | -87,233 | -93,930 | 0 |
Acquisitions (net of cash acquired) and related advances to distributors | -3,759 | -53,337 | -53,235 |
Purchases of property and equipment | -219,587 | -241,353 | -184,309 |
Loans to related parties | 0 | -11,088 | -24,138 |
Purchases of investments | -543,389 | -170,792 | 0 |
Proceeds from maturities and sales of investments | 146,260 | 0 | 2,256 |
Net cash used in investing activities | -707,708 | -570,500 | -259,426 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Dividend payments | -376,498 | -339,724 | -260,276 |
Repurchase of common stock | -524,926 | -400,000 | -700,000 |
Repayment of debt | -500 | -22,375 | -795 |
Proceeds from share-based awards | 48,678 | 80,436 | 185,071 |
Borrowings under revolving credit facility | 450,000 | 0 | 0 |
Repayment of revolving credit facility | -310,000 | 0 | 0 |
Taxes paid to net settle share-based awards | -40,339 | -34,273 | -33,938 |
Excess tax benefit from share-based compensation | 11,536 | 26,830 | 68,057 |
Acquisition-related payment of contingent consideration | -6,000 | 0 | 0 |
Net cash used in financing activities | -748,049 | -689,106 | -741,881 |
Effect of exchange rate changes on cash and cash equivalents | -515 | -8,798 | -2,949 |
(Decrease) increase in cash and cash equivalents | -470,862 | 145,570 | 217,433 |
Cash and cash equivalents at beginning of year | 1,062,785 | 917,215 | 699,782 |
Cash and cash equivalents at end of year | 591,923 | 1,062,785 | 917,215 |
Supplemental information: | ' | ' | ' |
Cash paid for income taxes | 384,222 | 445,043 | 438,884 |
Cash paid for interest | 1,255 | 1,341 | 1,793 |
Noncash investing activity – property and equipment obligations | $28,720 | $34,311 | $31,363 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Jun. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations | ' |
NATURE OF OPERATIONS | |
Coach, Inc. (the “Company”) is a leading New York design house of modern luxury accessories and lifestyle collections. The Company’s primary product offerings, manufactured by third-party suppliers, include women’s and men’s bags, women’s and men’s small leather goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. Coach’s products are sold through the North America and International reportable segments. The North America segment includes sales to North American consumers through Coach-operated stores (including the Internet), and sales to wholesale customers and distributors. The International segment includes sales to consumers through Coach-operated stores (including the Internet) and concession shop-in-shops in Japan and mainland China, Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany and Italy, as well as sales to wholesale customers and distributors in approximately 35 countries. The Company also records sales generated in ancillary channels including licensing and disposition. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Jun. 28, 2014 | ||
Accounting Policies [Abstract] | ' | |
Significant Accounting Policies | ' | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Fiscal Year | ||
The Company’s fiscal year ends on the Saturday closest to June 30. Unless otherwise stated, references to years in the financial statements relate to fiscal years. The fiscal years ended June 28, 2014 (“fiscal 2014”), June 29, 2013 (“fiscal 2013”) and June 30, 2012 (“fiscal 2012”) were each 52-week periods. The fiscal year ending June 27, 2015 (“fiscal 2015”) will be also be a 52-week period. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates in amounts that may be material to the financial statements. | ||
Significant estimates inherent in the preparation of the consolidated financial statements include customer returns, discounts, end-of-season markdowns, and operational chargebacks; the realizability of inventory; reserves for 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, amongst others. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of the Company and all 100% owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of cash balances and highly liquid investments with a maturity of three months or less at the date of purchase. | ||
Investments | ||
Long-term investments primarily consist of high-credit quality U.S. and non-U.S. issued corporate debt securities, U.S. Treasuries and government agency securities, classified as available-for-sale, and recorded at fair value, with unrealized gains and losses recorded in other comprehensive income. Long-term investments also include the equity method investment related to the Hudson Yards joint venture and the Reed Krakoff cost method investment. Short-term investments consist primarily of time deposits, U.S. Treasuries and government agency securities, and high-credit quality U.S. and non-U.S. issued corporate debt securities with original maturities greater than three months and with maturities within one year of balance sheet date, classified as available-for-sale and held-to-maturity. Held-to-maturity investments are recorded at amortized cost, which approximates fair value. Dividend and interest income are recognized when earned. | ||
Investments in companies in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the investee, however, other factors are considered, such as board representation and the rights to participate in the day-to-day operations of the business. | ||
Additionally, GAAP requires the consolidation of all entities for which a Company has a controlling voting interest and all variable interest entities (“VIEs”) for which a Company is deemed to be the primary beneficiary. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity’s operations or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity’s activities involve or are conducted on behalf of the investor with disproportionately few voting rights. | ||
From time to time, Coach may make an investment that requires judgment in determining whether the entity is a VIE. If it is determined that the entity is a VIE, the Company must assess whether it is the primary beneficiary. | ||
Concentration of Credit Risk | ||
Financial instruments that potentially expose Coach to concentration of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. The Company places its cash investments with high-credit quality financial institutions and currently invests primarily in U.S. government and agency debt securities, municipal government and corporate debt securities, bank deposits, and money market instruments placed with major banks and financial institutions. Accounts receivable is generally diversified due to the number of entities comprising Coach’s customer base and their dispersion across many geographical regions. The Company believes no significant concentration of credit risk exists with respect to these investments and accounts receivable. | ||
Inventories | ||
The Company’s inventories are reported at the lower of cost or market. Inventory costs include material, conversion costs, freight and duties and are determined by the first-in, first-out method. The Company reserves for slow-moving and aged inventory based on historical experience, current product demand and expected future demand. A decrease in product demand due to changing customer tastes, buying patterns or increased competition could impact Coach’s evaluation of its slow-moving and aged inventory and additional reserves might be required. | ||
Property and Equipment, Net | ||
Property and equipment, net is stated at cost less accumulated depreciation including the impact long-lived asset impairment and disposals. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Buildings are depreciated over 40 years. Machinery and equipment are depreciated over lives of five to seven years, furniture and fixtures are depreciated over lives of three to five years, and computer software is depreciated over lives of three to seven years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease terms. Maintenance and repair costs are charged to earnings as incurred while expenditures for major renewals and improvements are capitalized. | ||
Valuation of Long-Lived Assets | ||
Long-lived assets, such as property and equipment, are evaluated for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The evaluation is based on a review of forecasted operating cash flows and the profitability of the related asset group. An impairment loss is recognized if the forecasted cash flows are less than the carrying amount of the asset. Similar to prior fiscal years, when assessing store assets for impairment in fiscal 2014, the Company analyzed the cash flows at an individual store-by-store level, which is the lowest level for identifiable cash flows. The Company recorded impairment losses of $35,544 in fiscal 2014 and $16,624 in fiscal 2013. The Company did not record any impairment losses in fiscal 2012. | ||
In determining future cash flows, Coach takes various factors into account, including changes in merchandising strategy, the emphasis on retail store cost controls, the effects of macroeconomic trends such as consumer spending, the impacts of the experienced level of retail store managers, the level of advertising, promotional cadence and in-store capital investments. Since the determination of future cash flows is an estimate of future performance, there may be future impairments in the event that future cash flows do not meet expectations. | ||
Operating Leases | ||
The Company’s leases for office space, retail locations and distribution facilities are accounted for as operating leases. Certain of the Company's leases contain renewal options, rent escalation clauses, and/or landlord incentives. Renewal terms generally reflect market rates at the time of renewal. Rent expense for noncancelable operating leases with scheduled rent increases and/or landlord incentives is recognized on a straight-line basis over the lease term, including any applicable rent holidays, beginning with the lease commencement date, or the date the Company takes control of the leased space, whichever is sooner. The excess of straight-line rent expense over scheduled payment amounts and landlord incentives is recorded as a deferred rent liability. As of the end of fiscal 2014 and fiscal 2013, deferred rent obligations of $135,154 and $117,502, respectively, were classified primarily within other non-current liabilities in the Company's consolidated balance sheets. Certain rentals are also contingent upon factors such as sales. Contingent rentals are recognized when the achievement of the target (i.e., sale levels), which triggers the related rent payment, is considered probable and estimable. | ||
Asset retirement obligations represent legal obligations associated with the retirement of a tangible long-lived asset. The Company’s asset retirement obligations are primarily associated with leasehold improvements that we are contractually obligated to remove at the end of a lease to comply with the lease agreement. When such an obligation exists, the Company recognizes an asset retirement obligation at the inception of a lease at its estimated fair value. The asset retirement obligation is recorded in current liabilities or non-current liabilities (based on the expected timing of payment of the related costs) and is subsequently adjusted for any changes in estimates. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. As of the end of fiscal 2014 and fiscal 2013, the Company had asset retirement obligations of $18,351 and $16,497, respectively, primarily classified within other non-current liabilities in the Company's consolidated balance sheets. | ||
Goodwill and Other Intangible Assets | ||
Goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized, but are assessed for impairment at least annually. The Company has no finite-lived intangible assets. | ||
The Company uses a quantitative goodwill impairment test, which is a two-step process. The first step is to identify the existence of potential impairment by comparing the fair value of each reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. | ||
If the carrying value of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying value of that goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. In other words, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. | ||
Determination of the fair value of a reporting unit and the fair value of individual assets and liabilities of a reporting unit is judgmental in nature and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. Estimates of fair value are primarily determined using discounted cash flows, market comparisons, and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows, discount rates, growth rates, and determination of appropriate market comparables. | ||
The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. The Company determined that there was no impairment in fiscal 2014, fiscal 2013 or fiscal 2012 as the fair values of our reporting units significantly exceeded their respective carrying values. | ||
Stock Repurchase and Retirement | ||
Coach accounts for stock repurchases and retirements by allocating the repurchase price to common stock and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances, beginning with the earliest issuance. Under Maryland law, Coach’s state of incorporation, treasury shares are not allowed. As a result, all repurchased shares are retired when acquired. During the second quarter of fiscal 2008, the Company’s total cumulative stock repurchases exceeded the total shares issued in connection with the Company’s October 2000 initial public offering, and stock repurchases in excess of this amount are assumed to be made from the Company’s April 2001 Sara Lee exchange offer. Shares issued in connection with this exchange offer were accounted for as a contribution to common stock and retained earnings. Therefore, stock repurchases and retirements associated with the exchange offer are accounted for by allocation of the repurchase price to common stock and retained earnings. During the fourth quarter of fiscal 2010, cumulative stock repurchases allocated to retained earnings resulted in an accumulated deficit balance. Since its initial public offering, the Company has not experienced a net loss in any fiscal year, and the net accumulated deficit balance in stockholders’ equity is attributable to the cumulative stock repurchase activity. The total cumulative amount of common stock repurchase price allocated to retained earnings as of June 28, 2014 and June 29, 2013 was approximately $6,725,000 and $6,200,000, respectively. | ||
Revenue Recognition | ||
Revenue is recognized by the Company when there is persuasive evidence of an arrangement, delivery has occurred (and risks and rewards of ownership have been transferred to the buyer), price has been fixed or is determinable, and collectability is reasonably assured. | ||
Retail store and concession-based shop-in-shop revenues are recognized at the point of sale, which occurs when merchandise is sold in an over-the-counter consumer transaction. These revenues are recognized net of estimated returns at the time of sale to consumers. Internet revenue from sales of products ordered through the Company’s e-commerce sites is recognized upon delivery and receipt of the shipment by its customers and includes shipping and handling charges paid by customers. Internet revenue is also reduced by an estimate for returns. | ||
Wholesale revenue 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, and markdown allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for 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. 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. | ||
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, which is approximately two years after the gift card is issued, 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 associated with gift card breakage is not material to the Company’s net operating results. | ||
The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. | ||
Cost of Sales | ||
Cost of sales consists of inventory costs and other related costs such as changes in reserves for shrinkage and inventory realizability, destruction costs, damages and replacements. | ||
Selling, General and Administrative Expenses ("SG&A") | ||
Selling, general and administrative expenses are comprised of four categories: (1) selling; (2) advertising, marketing and design; (3) distribution and customer service; and (4) administrative. Selling expenses include store employee compensation, occupancy costs and supply costs, wholesale and retail account administration compensation globally and Coach international operating expenses. These expenses are affected by the number of Coach-operated stores open during any fiscal period and store performance, as compensation and rent expenses vary with sales. Advertising, marketing and design expenses include employee compensation, media space and production, advertising agency fees (primarily to support North America), new product design costs, public relations and market research expenses. Distribution and customer service expenses include warehousing, order fulfillment, shipping and handling, customer service and bag repair costs. Administrative expenses include compensation costs for “corporate” functions including: executive, finance, human resources, legal and information systems departments, as well as corporate headquarters occupancy costs, consulting and certain software expenses. Administrative expenses also include global equity compensation expense. | ||
Shipping and Handling | ||
Shipping and handling costs incurred were $61,893, $66,828 and $52,240 in fiscal 2014, fiscal 2013 and fiscal 2012, respectively, and are included in selling, general and administrative expenses. | ||
Advertising | ||
Advertising costs include expenses related to direct marketing activities, such as direct mail pieces, digital and other media and production costs. In fiscal 2014, fiscal 2013 and fiscal 2012, advertising expenses totaled $130,122, $102,701 and $89,159 respectively, and are included in selling, general and administrative expenses. Advertising costs are expensed when the advertising first appears. | ||
Share-Based Compensation | ||
The Company recognizes the cost of equity awards to employees and the non-employee Directors based on the grant-date fair value of those awards. The grant-date fair values of share unit awards are based on the fair value of the Company's common stock on the date of grant. The grant-date fair value of stock option awards is determined using the Black-Scholes option pricing model and involves several assumptions, including the expected term of the option, expected volatility and dividend yield. The expected term of options represents the period of time that the options granted are expected to be outstanding and is based on historical experience. Expected volatility is based on historical volatility of the Company’s stock as well as the implied volatility from publicly traded options on Coach’s stock. Dividend yield is based on the current expected annual dividend per share and the Company’s stock price. Changes in the assumptions used to determine the Black-Scholes value could result in significant changes in the Black-Scholes value. | ||
For stock options and share unit awards, the Company recognizes share-based compensation net of estimated forfeitures and revises the estimates in subsequent periods if actual forfeitures differ from the estimates. The Company estimates the forfeiture rate based on historical experience as well as expected future behavior. | ||
The Company grants performance-based share awards to certain key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. On a quarterly basis, the Company assesses actual performance versus the predetermined performance goals, and adjusts the share-based compensation expense to reflect the relative performance achievement. Actual distributed shares are calculated upon conclusion of the service and performance periods, and include dividend equivalent shares. If the performance-based award incorporates a market condition, the grant-date fair value of such award is determined using a pricing model, such as a Monte Carlo Simulation. | ||
Income Taxes | ||
The Company’s effective tax rate is based on pre-tax income, statutory tax rates, tax laws and regulations, and tax planning strategies available in the various jurisdictions in which Coach operates. The Company classifies interest and penalties on uncertain tax positions in the provision for income taxes. Coach records net deferred tax assets to the extent the Company believes that it is more likely than not that these assets will be realized. In making such determination, the Company considers all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operation. The Company reduces deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that some amount of deferred tax assets is not expected to be realized. Deferred taxes are not provided on the undistributed earnings of subsidiaries as such amounts are considered to be permanently invested. | ||
The Company recognizes the impact of tax positions in the financial statements if those positions will more likely than not be sustained on audit, based on the technical merits of the position. Although the Company believes that the estimates and assumptions used are reasonable and legally supportable, the final determination of tax audits could be different than that which is reflected in historical tax provisions and recorded assets and liabilities. Tax authorities periodically audit the Company’s income tax returns, and in specific cases, the tax authorities may take a contrary position that could result in a significant impact on our results of operations. Significant management judgment is required in determining the effective tax rate, in evaluating our tax positions and in determining the net realizable value of deferred tax assets. | ||
Derivative Instruments | ||
Substantially all of the Company’s transactions involving international parties, excluding international consumer sales, are denominated in U.S. dollars, which limits the Company’s exposure to the effects of foreign currency exchange rate fluctuations. However, the Company is exposed to foreign currency exchange risk related to its foreign operating subsidiaries’ U.S. dollar-denominated inventory purchases and various cross-currency intercompany and related party loans. Coach uses derivative financial instruments to manage these risks. These derivative transactions are in accordance with the Company’s risk management policies. Coach does not enter into derivative transactions for speculative or trading purposes. | ||
The Company records all derivative contracts at fair value on the consolidated balance sheet. The fair values of foreign currency derivatives are based on the forward curves of the specific indices upon which settlement is based and include an adjustment for the Company’s credit risk. Judgment is required of management in developing estimates of fair value. The use of different market assumptions or methodologies could affect the estimated fair value. | ||
For derivative instruments that qualify for hedge accounting, the effective portion of changes in the fair value of these instruments is either (i) offset against the changes in fair value of the hedged assets or liabilities through earnings or (ii) recognized as a component of accumulated other comprehensive income (loss) ("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 that is designated as a hedge, the Company 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 over the term of the instrument. The extent to which a hedging instrument has been and is expected to remain 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 designated as a cash flow hedge is not considered to be effective, any change in its fair value related 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 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 may be exposed to the risk that the counterparties to such contacts 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, among other factors. | ||
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, primarily within cash from operating activities. | ||
Hedging Portfolio | ||
The Company enters into derivative contracts primarily to reduce its risks related to exchange rate fluctuations on U.S. dollar-denominated inventory purchases and various cross-currency intercompany and related party loans. To the extent its derivative 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 AOCI and subsequently recognized in the consolidated statements of income as follows: | ||
• | Zero-cost collars - These derivatives are primarily executed by two of the Company’s businesses outside of the United States (Coach Japan and Coach Canada), and are recognized as part of the cost of the inventory purchases being hedged within cost of sales, when the related inventory is sold to a third party. Current maturity dates range from July 2014 to June 2015. | |
• | Cross currency swaps - These derivatives relate to intercompany loans, and are recognized within foreign currency gains (losses) generally in the period in which the related payments being hedged are revalued or settled. Current maturity dates range from August 2014 to November 2014. | |
Forward foreign currency exchange contracts, designated as fair value hedges and associated with intercompany and other contractual obligations, are recognized within foreign currency gains (losses) generally in the period in which the related payments being hedged are revalued. Current maturity dates range from July 2014 to August 2014. | ||
Foreign Currency | ||
The functional currency of the Company's foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted-average exchange rates for the period. The resulting translation adjustments are included in the consolidated statements of comprehensive income as a component of other comprehensive income (loss) (“OCI”) and in the consolidated statements of equity within AOCI. Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature also are included within this component of equity. | ||
The Company also recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency in earnings. Foreign currency transaction gains and losses also include amounts realized on the settlement of certain intercompany loans with foreign subsidiaries. | ||
Earnings per Share | ||
Basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is calculated similarly but includes potential dilution from the exercise of stock options and vesting of stock awards, or any other potentially dilutive instruments. | ||
Reclassifications | ||
Certain prior year amounts, specifically related to disclosures of short-term investments in Note 10, "Fair Value Measurements" and amounts in connection with the acquisition of the retail business in Europe, have been reclassified to conform to the current year presentation in the consolidated financial statements. | ||
Recent Accounting Pronouncements | ||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 4), but did not have an impact on the Company’s Consolidated Financial Statements. | ||
In May 2014, the FASB issued Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” which provides a single, comprehensive revenue recognition model for all contracts with customers, and contains principles to determine the measurement of revenue and timing of when it is recognized. The requirements of the new standard will be effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, which for the Company is the first quarter of fiscal 2018. The Company is currently evaluating this guidance, but does not expect its adoption to have a material effect on its Consolidated Financial Statements. |
Transformation_Restructuring_a
Transformation, Restructuring and Other Related Actions | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Transformation, Restructuring and Other Related Actions | ' | |||||||||||||||||||
TRANSFORMATION, RESTRUCTURING AND OTHER RELATED ACTIONS | ||||||||||||||||||||
Fiscal 2014 Charges | ||||||||||||||||||||
Transformation-Related Charges | ||||||||||||||||||||
During the fourth quarter of fiscal 2014, Coach announced a multi-year strategic plan to transform the brand and reinvigorate growth. This multi-faceted, multi-year transformation plan (the "Transformation Plan") includes key operational and cost measures needed in order to fund and execute this plan, including: (i) the investment in capital improvements in stores and wholesale locations in fiscal 2015 and fiscal 2016; (ii) the optimization of the North American store fleet including the closure of underperforming locations in fiscal 2015; (iii) the realignment of inventory levels to reflect the Company's elevated product strategy in fiscal 2014; (iv) the investment in incremental advertising costs to further promote this new strategy starting in fiscal 2015; and (v) the significant scale-back of the Company's promotional cadence, particularly within the outlet Internet sales site starting in fiscal 2014. | ||||||||||||||||||||
In fiscal 2014, the Company incurred restructuring and transformation related charges of $131,507 ($88,281 after-tax, or $0.31 per diluted share). The charges recorded in cost of sales and SG&A expenses were $82,192 and $49,315, respectively, and primarily relate to the Company's North America business. | ||||||||||||||||||||
A summary of charges and related liabilities under the Company's Transformation Plan are as follows: | ||||||||||||||||||||
Inventory-Related Charges | Impairment | Store-Related Costs(1) | Other | Total | ||||||||||||||||
Fiscal 2014 charges | $ | 82,192 | $ | 35,544 | $ | 12,191 | $ | 1,580 | $ | 131,507 | ||||||||||
Cash payments | — | — | — | — | — | |||||||||||||||
Non-cash charges | (66,774 | ) | (35,544 | ) | (6,737 | ) | — | (109,055 | ) | |||||||||||
Liability as of June 28, 2014 | $ | 15,418 | $ | — | $ | 5,454 | $ | 1,580 | $ | 22,452 | ||||||||||
(1) Includes store closure costs, related severance and accelerated depreciation charges as a result of store updates. | ||||||||||||||||||||
Inventory-related charges, recorded within cost of sales, primarily relate to reserves for the donation and destruction of certain on-hand inventory and future non-cancelable inventory purchase commitments. Impairment charges, recorded within SG&A expenses, were based on discounted expected cash flows within certain impacted retail stores, and resulted in the reduction of the net carrying value of store-related long-lived assets to their estimated fair value. Store-related costs, recorded within SG&A expenses, primarily relate to accelerated depreciation charges associated with store assets that the Company will no longer benefit from as a result of the Transformation Plan, including certain store employee restructuring costs. The above charges were recorded as corporate unallocated expenses within the Company's Consolidated Statements of Income. | ||||||||||||||||||||
The Company expects to incur additional pre-tax charges of approximately $120,000 to $170,000, primarily in fiscal 2015, in connection with the Transformation Plan. These costs will primarily consist of store-related costs (including accelerated depreciation charges as a result of store updates) and organizational efficiency charges (including employee severance costs). | ||||||||||||||||||||
Sale of Reed Krakoff Business | ||||||||||||||||||||
On August 30, 2013, the Company sold the Reed Krakoff business, involving the sale of the equity interests of Reed Krakoff LLC and certain assets, including the Reed Krakoff brand name and related intellectual property rights, to Reed Krakoff International LLC (“Buyer”). The sale was pursuant to the Asset Purchase and Sale Agreement dated July 29, 2013 (the “Purchase Agreement”) with Buyer and Reed Krakoff, the Company’s former President and Executive Creative Director. Coach received a de minimus amount of cash and convertible preferred membership interests representing 8.0% of Buyer’s issued and outstanding convertible preferred units and initial equity value immediately following such issuance. Coach recorded a cost method investment of $3,261, included in Long-term investments in the consolidated balance sheet at June 28, 2014. | ||||||||||||||||||||
Concurrent with the Closing under the Purchase Agreement, the parties executed certain ancillary agreements which included a transition services agreement between Coach and Buyer for up to nine months. | ||||||||||||||||||||
In connection with the Purchase Agreement, Mr. Krakoff’s resignation from Coach and the closing of the sale, Mr. Krakoff waived his right to receive compensation, salary, bonuses, equity vesting and certain other benefits. The Company recorded a loss of $2,683 during the first quarter of fiscal 2014 related to the sale, which is recorded in SG&A expenses on the Consolidated Statements of Income. | ||||||||||||||||||||
Fiscal 2013 Charges | ||||||||||||||||||||
Restructuring and Transformation-Related Charges | ||||||||||||||||||||
In fiscal 2013, the Company incurred restructuring and transformation related charges, which are not related to the Company's fiscal 2014 Transformation Plan, of $53,202 ($32,568 after-tax, or $0.11 per diluted share). The charges recorded in SG&A expenses and cost of sales were $48,402 and $4,800, respectively. The charges primarily related to our North America segment. | ||||||||||||||||||||
A summary of charges and related liabilities are as follows: | ||||||||||||||||||||
Severance and Related Costs | Impairment | Other | Total | |||||||||||||||||
Fiscal 2013 charges | $ | 29,859 | $ | 16,624 | $ | 6,719 | $ | 53,202 | ||||||||||||
Cash payments | — | — | — | — | ||||||||||||||||
Non-cash charges | (1,980 | ) | $ | (16,624 | ) | $ | (6,636 | ) | $ | (25,240 | ) | |||||||||
Liability as of June 29, 2013 | $ | 27,879 | $ | — | $ | 83 | $ | 27,962 | ||||||||||||
(Income) expense | $ | (1,732 | ) | $ | — | $ | 1,903 | $ | 171 | |||||||||||
Non-cash charges | (345 | ) | — | (1,822 | ) | (2,167 | ) | |||||||||||||
Cash payments and settlements | (25,245 | ) | $ | — | $ | (164 | ) | $ | (25,409 | ) | ||||||||||
Liability as of June 28, 2014 | $ | 557 | $ | — | $ | — | $ | 557 | ||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||
The components of accumulated other comprehensive income, as of the dates indicated, are as follows: | ||||||||||||||||||||
Gains | Unrealized | |||||||||||||||||||
(Losses) | (Losses) Gains | |||||||||||||||||||
on Cash | on Available- | Cumulative | ||||||||||||||||||
Flow | for-Sale | Translation | ||||||||||||||||||
Hedges(1) | Securities | Adjustment | Other(2) | Total | ||||||||||||||||
Balance at June 30, 2012 | $ | (461 | ) | $ | — | $ | 55,360 | $ | (4,424 | ) | $ | 50,475 | ||||||||
Other comprehensive income (loss) before reclassifications | 8,005 | (1,276 | ) | (66,990 | ) | 1,343 | (58,918 | ) | ||||||||||||
Less: gains reclassified from accumulated other comprehensive income | 3,803 | — | — | — | 3,803 | |||||||||||||||
Net current-period other comprehensive income (loss) | 4,202 | (1,276 | ) | (66,990 | ) | 1,343 | (62,721 | ) | ||||||||||||
Balance at June 29, 2013 | $ | 3,741 | $ | (1,276 | ) | $ | (11,630 | ) | $ | (3,081 | ) | $ | (12,246 | ) | ||||||
Other comprehensive income before reclassifications | 3,271 | 3,150 | 2,378 | 105 | 8,904 | |||||||||||||||
Less: gains (losses) reclassified from accumulated other comprehensive income | 6,422 | 67 | — | (1,072 | ) | 5,417 | ||||||||||||||
Net current-period other comprehensive (loss) income | (3,151 | ) | 3,083 | 2,378 | 1,177 | 3,487 | ||||||||||||||
Balance at June 28, 2014 | $ | 590 | $ | 1,807 | $ | (9,252 | ) | $ | (1,904 | ) | $ | (8,759 | ) | |||||||
(1) | The ending balances of accumulated other comprehensive income related to cash flow hedges are net of tax of $(532) and $(2,338) as of June 28, 2014 and June 29, 2013, respectively. The amounts reclassified from accumulated other comprehensive income are net of tax of $(3,432) and $(2,416) as of June 28, 2014 and June 29, 2013, respectively. | |||||||||||||||||||
(2) | The components of Other include the accumulated loss on the Company's investment in an auction rate security and the minimum pension liability adjustment of $0 and $(1,904) as of June 28, 2014 and $(1,072) and $(2,009) as of June 29, 2013, respectively. As of June 28, 2014 and June 29, 2013 the balances of accumulated other comprehensive income are net of tax of $1,531 and $2,118, respectively. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jun. 28, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-Based Compensation | ' | ||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
The Company maintains several share-based compensation plans which are more fully described below. The following table shows the total compensation cost charged against income for these plans and the related tax benefits recognized in the income statement: | |||||||||||||
June 28, 2014(1) | June 29, | June 30, | |||||||||||
2013 | 2012 | ||||||||||||
Compensation expense | $ | 104,940 | $ | 120,460 | $ | 107,511 | |||||||
Related income tax benefit | 33,095 | 39,436 | 37,315 | ||||||||||
(1) Approximately $9,834 of share based compensation expense and $3,997 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Note 3 for information as it relates to the sale of the Reed Krakoff business. | |||||||||||||
Coach Stock-Based Plans | |||||||||||||
Coach maintains the 2010 Stock Incentive Plan to award stock options and shares to certain members of Coach management and the outside members of its Board of Directors (“Board”). Coach maintains the 2000 Stock Incentive Plan and the 2004 Stock Incentive Plan for awards granted prior to the establishment of the 2010 Stock Incentive Plan. These plans were approved by Coach’s stockholders. The exercise price of each stock option equals 100% of the market price of Coach’s stock on the date of grant and generally has a maximum term of 10 years. Stock options and service based share awards that are granted as part of the annual compensation process generally vest ratably over three years. Other stock option and share awards are subject to forfeiture until completion of the vesting period, which ranges from one to five years. The Company issues new shares upon the exercise of stock options or vesting of share units. | |||||||||||||
Stock Options | |||||||||||||
A summary of stock option activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Options Outstanding | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at June 29, 2013 | 12,893 | $ | 43.37 | ||||||||||
Granted | 2,440 | 52.52 | |||||||||||
Exercised | (1,380 | ) | 32.27 | ||||||||||
Forfeited or expired | (2,274 | ) | 55.6 | ||||||||||
Outstanding at June 28, 2014 | 11,679 | 44.21 | 5.67 | $ | 19,920 | ||||||||
Vested or expected to vest at June 28, 2014 | 11,419 | 43.96 | 5.55 | 19,920 | |||||||||
Exercisable at June 28, 2014 | 7,550 | 38.92 | 4.07 | 19,920 | |||||||||
The fair value of each Coach option grant is estimated on the date of grant using the Black-Scholes option pricing model and the following weighted-average assumptions: | |||||||||||||
June 28, | June 29, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected term (years) | 3.1 | 3.1 | 3.1 | ||||||||||
Expected volatility | 32.5 | % | 39.5 | % | 39.4 | % | |||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | 0.6 | % | |||||||
Dividend yield | 2.6 | % | 2.2 | % | 1.5 | % | |||||||
The expected term of options represents the period of time that the options granted are expected to be outstanding and is based on historical experience. Expected volatility is based on historical volatility of the Company’s stock as well as the implied volatility from publicly traded options on Coach’s stock. The risk free interest rate is based on the zero-coupon U.S. Treasury issue as of the date of the grant. Dividend yield is based on the current expected annual dividend per share and the Company’s stock price. | |||||||||||||
The weighted-average grant-date fair value of options granted during fiscal 2014, fiscal 2013 and fiscal 2012 was $9.79, $13.02, and $15.59, respectively. The total intrinsic value of options exercised during fiscal 2014, fiscal 2013 and fiscal 2012 was $28,028, $76,956, and $197,793, respectively. The total cash received from option exercises was $44,541, $74,277, and $178,292 in fiscal 2014, fiscal 2013 and fiscal 2012, respectively, and the cash tax benefit realized for the tax deductions from these option exercises was $10,419, $29,230, and $73,982, respectively. | |||||||||||||
At June 28, 2014, $26,059 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.0 year. | |||||||||||||
Service-based Restricted Stock Unit Awards (“RSUs”) | |||||||||||||
A summary of service-based RSU activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Non-vested | Average | ||||||||||||
Share Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at June 29, 2013 | 3,269 | $ | 54.06 | ||||||||||
Granted | 2,018 | 52.93 | |||||||||||
Vested | (1,503 | ) | 50.89 | ||||||||||
Forfeited | (563 | ) | 54.88 | ||||||||||
Non-vested at June 28, 2014 | 3,221 | 54.68 | |||||||||||
At June 28, 2014, $92,437 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.0 year. | |||||||||||||
The weighted-average grant-date fair value of share awards granted during fiscal 2014, fiscal 2013 and fiscal 2012 was $52.93, $54.49 and $62.84, respectively. The total fair value of shares vested during fiscal 2014, fiscal 2013 and fiscal 2012 was $78,692, $93,319 and $99,488, respectively. | |||||||||||||
Performance-based Restricted Stock Unit Awards (“PRSU”) | |||||||||||||
The Company grants performance-based share awards to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. A summary of performance-based share award activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Non-vested | Average | ||||||||||||
Share Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at June 29, 2013 | 1,093 | $ | 46.84 | ||||||||||
Granted | 315 | 32.53 | |||||||||||
Change due to performance condition achievement | 62 | 36.48 | |||||||||||
Vested | (453 | ) | 40.96 | ||||||||||
Forfeited | (118 | ) | 42.81 | ||||||||||
Non-vested at June 28, 2014 | 899 | 44.6 | |||||||||||
At June 28, 2014, $14,535 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.4 years. | |||||||||||||
The weighted-average grant-date fair value of share awards granted during fiscal 2014, fiscal 2013 and fiscal 2012 was $32.53, $50.55 and $62.07, respectively. The total fair value of awards that vested during fiscal 2014 was $23,754. There were no vestings of performance-based shares during fiscal 2013 or fiscal 2012. | |||||||||||||
During fiscal 2014, the Company granted 241 shares of common stock with a fair value of $6,814 to selected executives as retention PRSU awards with a maximum potential number of shares issued and fair value (excluding dividends) of 321 shares and $9,085, respectively. These shares are included within the PRSU tables above. The shares of common stock under these PRSU awards will be earned and distributed based on performance criteria which compares the Company’s total stockholder return over the performance period to the total stockholder return of the companies included in the Standard & Poor’s 500 Index on the date of grant (excluding the Company). The grant date fair value of the PRSU awards was determined utilizing a Monte Carlo simulation and the following assumptions: expected volatility of 32.61%, risk-free interest rate of 0.63%, and dividend yield of 0.00%. | |||||||||||||
In fiscal 2014, fiscal 2013 and fiscal 2012, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $33,523, $26,097 and $30,740, respectively. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
Under the 2001 Employee Stock Purchase Plan, full-time Coach employees are permitted to purchase a limited number of Coach common shares at 85% of market value. Under this plan, Coach sold 119, 122, and 129 shares to employees in fiscal 2014, fiscal 2013 and fiscal 2012, respectively. Compensation expense is calculated for the fair value of employees’ purchase rights using the Black-Scholes model and the following weighted-average assumptions: | |||||||||||||
Fiscal Year Ended | |||||||||||||
June 28, | June 29, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected term (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Expected volatility | 29.5 | % | 34.1 | % | 45.6 | % | |||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.1 | % | |||||||
Dividend yield | 2.2 | % | 1.7 | % | 1.4 | % | |||||||
The weighted-average fair value of the purchase rights granted during fiscal 2014, fiscal 2013 and fiscal 2012 was $13.30, $15.08, and $17.31, respectively. The Company issues new shares for employee stock purchases. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||
The following table summarizes the Company’s investments, all of which are denominated in U.S. dollars, recorded within the consolidated balance sheets as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | |||||||||||||||||||||||
Short-term | Long-Term | Total | Short-term | Long-term | Total | |||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||||||
Government securities - U.S.(1) | $ | 41,969 | $ | 55,360 | $ | 97,329 | $ | — | $ | — | $ | — | ||||||||||||
Corporate debt securities – U.S.(1) | 25,387 | 144,881 | 170,268 | 2,094 | 63,442 | 65,536 | ||||||||||||||||||
Corporate debt securities – non-U.S.(1) | 34,683 | 98,766 | 133,449 | — | 33,968 | 33,968 | ||||||||||||||||||
Auction rate security(2) | — | — | — | — | 6,000 | 6,000 | ||||||||||||||||||
Asset backed securities(3) | — | 1,085 | 1,085 | — | — | — | ||||||||||||||||||
Available-for-sale investments, total | $ | 102,039 | $ | 300,092 | $ | 402,131 | $ | 2,094 | $ | 103,410 | $ | 105,504 | ||||||||||||
Held to maturity: | ||||||||||||||||||||||||
Government securities - U.S.(4) | $ | 18,173 | $ | — | $ | 18,173 | $ | — | $ | — | $ | — | ||||||||||||
Corporate debt securities – U.S.(4) | 33,511 | — | 33,511 | — | — | — | ||||||||||||||||||
Corporate debt securities – non-U.S.(4) | 24,370 | — | 24,370 | — | — | — | ||||||||||||||||||
Commercial paper(4) | 23,541 | — | 23,541 | — | — | — | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Time deposits(5) | 75,069 | — | 75,069 | 70,012 | — | 70,012 | ||||||||||||||||||
Other(6) | — | 184,426 | 184,426 | — | 93,930 | 93,930 | ||||||||||||||||||
Total Investments | $ | 276,703 | $ | 484,518 | $ | 761,221 | $ | 72,106 | $ | 197,340 | $ | 269,446 | ||||||||||||
(1) | These securities have maturity dates between calendar years 2014 and 2017 and are recorded at fair value. | |||||||||||||||||||||||
(2) | The investment was sold in the third quarter of fiscal 2014. Refer to Note 10, "Fair Value Measurements," for further information. | |||||||||||||||||||||||
(3) | The security matures during calendar year 2016. | |||||||||||||||||||||||
(4) | These securities have maturity dates of less than one year and are recorded at amortized cost which approximates fair value. | |||||||||||||||||||||||
(5) | These time deposits have original maturities greater than 3 months and are recorded at fair value. | |||||||||||||||||||||||
(6) | Primarily relates to the equity method investment related to an equity interest in an entity formed during fiscal 2013 for the purpose of developing a new office tower in Manhattan (the “Hudson Yards joint venture”), with the Company owning less than 43% of the joint venture, and the Reed Krakoff cost method investment. As of June 28, 2014, the Company has recorded $181,163 and $3,261 in the Hudson Yards joint venture and the Reed Krakoff cost method investment, respectively. The Hudson Yards joint venture is determined to be a VIE primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. Refer to Note 12, "Commitments and Contingencies" for further information. | |||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities are presented below: | ||||||||||||||||||||||||
June 28, 2014 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Government securities - U.S. | $ | 97,224 | $ | 113 | $ | (8 | ) | $ | 97,329 | |||||||||||||||
Corporate debt issues - U.S. | 169,259 | 1,024 | (15 | ) | 170,268 | |||||||||||||||||||
Corporate debt issues - non-U.S. | 132,756 | 704 | (11 | ) | 133,449 | |||||||||||||||||||
Asset backed securities | 1,085 | — | — | 1,085 | ||||||||||||||||||||
Total | $ | 400,324 | $ | 1,841 | $ | (34 | ) | $ | 402,131 | |||||||||||||||
June 29, 2013 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Corporate debt issues - U.S. | $ | 66,387 | $ | — | $ | (851 | ) | $ | 65,536 | |||||||||||||||
Corporate debt issues - non-U.S. | 34,393 | 2 | (427 | ) | 33,968 | |||||||||||||||||||
Auction rate security | 6,000 | — | — | 6,000 | ||||||||||||||||||||
Total | $ | 106,780 | $ | 2 | $ | (1,278 | ) | $ | 105,504 | |||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
ACQUISITIONS | ||||
Fiscal 2014 Acquisition | ||||
On July 1, 2013, Coach became the 100% owner of its European joint venture by purchasing Hackett Limited’s 50% interest in the joint venture, enabling Coach to assume direct control and consolidate its European retail business. The joint venture included 18 retail locations in Spain, Portugal, Great Britain, France, Ireland and Germany. The results of the acquired business have been included in the consolidated financial statements since the date of acquisition within the International segment. The purchase price consisted of cash payments of approximately $15,105 and the forgiveness of a loan from Coach to Hackett Limited of approximately $18,019. The Company made cash payments of $7,893 in fiscal 2013 and $7,212 in fiscal 2014, which were partially offset by cash acquired as part of the acquisition of $3,453. The allocation of the purchase price acquisition has been completed resulting in goodwill of $14,812, which is not tax deductible. | ||||
Fiscal 2013 Acquisitions | ||||
On July 1, 2012, Coach acquired 100% of its domestic retail business in Malaysia (consisting of 10 retail stores) from the former distributor, Valiram Group, and on August 5, 2012, acquired 100% of its domestic retail business in South Korea (consisting of 47 retail and department store locations) from the former distributor, Shinsegae International. The results of the acquired businesses have been included in the consolidated financial statements since the dates of acquisition within the International segment. The aggregate cash paid in connection with the acquisitions of the Malaysia and South Korea businesses was $8,593 and $36,851, respectively. The Company made a contingent payment to Shinsegae International, of $6,000 in fiscal 2014 (classified as financing activities within the Consolidated Statements of Cash Flows) and is scheduled to make a contingent payment of $4,000 during the first quarter of fiscal 2015. | ||||
The following table summarizes the fair values of the assets acquired as part of the fiscal 2013 acquisitions: | ||||
Assets Acquired | Fair Value | |||
Current assets | $ | 21,448 | ||
Fixed assets and other non-current assets | 2,351 | |||
Goodwill(1) | 31,645 | |||
Total assets acquired | $ | 55,444 | ||
(1) Approximately $30,000 of the goodwill balance is tax deductible. | ||||
Unaudited pro forma information related to the fiscal 2014 and 2013 acquisitions is not included, as the impact of these transactions is not material to the consolidated results of the Company. |
Leases
Leases | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Leases | ' | |||||||||||
LEASES | ||||||||||||
Coach leases office, distribution and retail facilities. The lease agreements, which expire at various dates through 2028, are subject, in most cases, to renewal options and provide for the payment of taxes, insurance and maintenance. Certain leases contain escalation clauses resulting from the pass-through of increases in operating costs, property taxes and the effect on costs from changes in consumer price indices. Certain rentals are also contingent upon factors such as sales. | ||||||||||||
Rent expense for the Company's operating leases consisted of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
June 28, | June 29, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Minimum rent | $ | 172,768 | $ | 169,737 | $ | 153,577 | ||||||
Contingent rent(1) | 144,439 | 112,568 | 94,579 | |||||||||
Total rent expense | $ | 317,207 | $ | 282,305 | $ | 248,156 | ||||||
(1) | A portion of the increase in contingent rent from fiscal 2013 is due to the inclusion of concession-based expense attributable to certain shop-in-shops in the International segment. | |||||||||||
Future minimum rental payments under noncancelable operating leases are as follows: | ||||||||||||
Fiscal Year | Amount | |||||||||||
2015 | $ | 208,519 | ||||||||||
2016 | 186,808 | |||||||||||
2017 | 166,338 | |||||||||||
2018 | 135,464 | |||||||||||
2019 | 107,937 | |||||||||||
Subsequent to 2019 | 405,891 | |||||||||||
Total minimum future rental payments | $ | 1,210,957 | ||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||||||||||
The following tables provide information related to the Company’s derivatives: | |||||||||||||||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Designated Derivative Hedging Instruments (1) | June 28, 2014 | June 29, 2013 | Balance Sheet Classification | June 28, 2014 | June 29, 2013 | Balance Sheet Classification | June 28, 2014 | June 29, 2013 | |||||||||||||||||||||
C - Inventory purchases | $ | 90,274 | $ | 193,352 | Other Current Assets | $ | 439 | $ | 1,592 | Accrued Liabilities | $ | (565 | ) | $ | (2,555 | ) | |||||||||||||
CCS - Intercompany loans | 4,793 | 111,195 | Other Current Assets | 53 | 1,366 | Accrued Liabilities | — | (85 | ) | ||||||||||||||||||||
FC - Intercompany & Related Party Loans | 8,375 | 36,396 | Other Current Assets | — | 1,024 | Accrued Liabilities | (9 | ) | — | ||||||||||||||||||||
FC - Contractual Obligations(2) | 4,000 | 16,944 | Other Current Assets | — | 523 | Accrued Liabilities | (323 | ) | (255 | ) | |||||||||||||||||||
Total Hedges | $ | 107,442 | $ | 357,887 | $ | 492 | $ | 4,505 | $ | (897 | ) | $ | (2,895 | ) | |||||||||||||||
(1) | C =ero-cost Collars; CCS =ross Currency Swaps; FC =orward foreign currency exchange contracts; | ||||||||||||||||||||||||||||
(2) | Contractual obligations as of fiscal 2014 and 2013 consist of $4,000 and $10,000 respectively, due to Shinsegae International, related to the acquisition of the domestic retail business in South Korea. Fiscal 2013 also had contractual obligations of $6,944 due to Hackett Limited related to the acquired European joint venture. | ||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||||||||||||||
Fiscal Year Ended(1) | Income | Fiscal Year Ended(2) | |||||||||||||||||||||||||||
Statement | |||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | June 28, | June 29, | June 30, | Classification | June 28, | June 29, | June 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
C - Inventory purchases | $ | 3,085 | $ | 8,483 | $ | (2,568 | ) | Cost of Sales | $ | 6,422 | $ | 3,803 | $ | (3,099 | ) | ||||||||||||||
CCS - Intercompany loans | 186 | (478 | ) | 473 | SG&A | — | — | — | |||||||||||||||||||||
Total Hedges | $ | 3,271 | $ | 8,005 | $ | (2,095 | ) | $ | 6,422 | $ | 3,803 | $ | (3,099 | ) | |||||||||||||||
(1) | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(1,626), $(5,325) and $1,858, respectively. | ||||||||||||||||||||||||||||
(2) | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(3,432), $(2,416) and $2,181, respectively. | ||||||||||||||||||||||||||||
During fiscal 2014 and fiscal 2013, there were no material gains or losses recognized in income due to hedge ineffectiveness. | |||||||||||||||||||||||||||||
For forward foreign currency exchange contracts that are designated as fair value hedges, the gain (loss) on the derivative as well as the offsetting gain (loss) on the hedged item attributable to the hedged risk, both of which are recorded within SG&A, resulted in an immaterial net impact to the Company's statement of operations. | |||||||||||||||||||||||||||||
The Company expects that $1,131 of net derivative gains included in accumulated other comprehensive income at June 28, 2014 will be reclassified into earnings within the next 12 months. This amount will vary due to fluctuations in foreign currency exchange rates. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||
The Company categorizes its assets and liabilities based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows: | ||||||||||||||||||||||||
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. | ||||||||||||||||||||||||
Level 3 — Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability. | ||||||||||||||||||||||||
The following table shows the fair value measurements of the Company’s financial assets and liabilities at June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
June 28, | June 29, | June 28, | June 29, | June 28, | June 29, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents(1) | $ | 1,188 | $ | 124,420 | $ | 45,169 | $ | 337,239 | $ | — | $ | — | ||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Time deposits(2) | — | — | 75,069 | 70,012 | — | — | ||||||||||||||||||
Commercial paper(2) | — | — | — | — | — | — | ||||||||||||||||||
Government securities - U.S.(2) | 41,969 | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities - U.S.(2) | — | — | 25,387 | 2,094 | — | — | ||||||||||||||||||
Corporate debt securities - non U.S.(2) | — | — | 34,683 | — | — | — | ||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
Asset backed securities(3) | — | — | 1,085 | — | — | — | ||||||||||||||||||
Government securities - U.S.(3) | 55,360 | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities – U.S.(3) | — | — | 144,881 | 63,442 | — | — | ||||||||||||||||||
Corporate debt securities - non U.S.(3) | — | — | 98,766 | 33,968 | — | — | ||||||||||||||||||
Auction rate security(4) | — | — | — | — | — | 6,000 | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Zero-cost collar options(5) | — | — | 439 | 1,592 | — | — | ||||||||||||||||||
Forward contracts and cross currency swaps(5) | — | — | 53 | 2,913 | — | — | ||||||||||||||||||
Total | $ | 98,517 | $ | 124,420 | $ | 425,532 | $ | 511,260 | $ | — | $ | 6,000 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Zero-cost collar options(5) | $ | — | $ | — | $ | 565 | $ | 2,555 | $ | — | $ | — | ||||||||||||
Forward contracts and cross currency swaps(5) | — | — | 332 | 340 | — | — | ||||||||||||||||||
Total | $ | — | $ | — | $ | 897 | $ | 2,895 | $ | — | $ | — | ||||||||||||
(1) | Cash equivalents consist of money market funds and time deposits with maturities of three months or less at the date of purchase. Due to their short term maturity, management believes that their carrying value approximates fair value. | |||||||||||||||||||||||
(2) | Short-term available-for-sale investments are recorded at fair value, which approximates their carrying value, and are primarily based upon quoted vendor or broker priced securities in active markets. Short-term held to maturity investments are recorded at amortized cost, which approximates fair value (Level 2). | |||||||||||||||||||||||
(3) | Fair value is primarily determined using vendor or broker priced securities in active markets. These securities have maturity dates between calendar years 2015 and 2017. | |||||||||||||||||||||||
(4) | Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. This security was sold during the third quarter of fiscal 2014. | |||||||||||||||||||||||
(5) | The fair value of these hedges is primarily based on the forward curves of the specific indices upon which settlement is based and includes an adjustment for the counterparty’s or Company’s credit risk. | |||||||||||||||||||||||
The following table present a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended June 28, 2014 and June 29, 2013. Level 3 available-for-sale securities consisted of one auction rate security. | ||||||||||||||||||||||||
June 28, | June 29, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Balance, beginning of year | $ | 6,000 | $ | 6,000 | ||||||||||||||||||||
Losses reclassified out of other comprehensive income | 1,072 | — | ||||||||||||||||||||||
Loss on sale (included in "Income before taxes") | (25 | ) | — | |||||||||||||||||||||
Sale of investment | (7,047 | ) | — | |||||||||||||||||||||
Balance, end of year | $ | — | $ | 6,000 | ||||||||||||||||||||
Non-Financial Assets and Liabilities | ||||||||||||||||||||||||
The Company’s non-financial instruments, which primarily consist of goodwill 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), non-financial instruments are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering market participant assumptions. | ||||||||||||||||||||||||
The Company incurred impairment charges of $35,544 in fiscal 2014 and $16,624 in fiscal 2013, to reduce the carrying amount of certain store assets (primarily leasehold improvements at selected retail store locations) to their fair values of $6,876 as of June 28, 2014 and $4,310 as of June 29, 2013. The fair values of these assets were determined based on Level 3 measurements. Inputs to these fair value measurements included estimates of the amount and the timing of the stores' net future discounted cash flows based on historical experience, current trends, and market conditions. |
Debt
Debt | 12 Months Ended |
Jun. 28, 2014 | |
Long-term Debt, Unclassified [Abstract] | ' |
Debt | ' |
DEBT | |
Revolving Credit Facilities | |
On June 18, 2012, the Company established a $400,000 revolving credit facility with certain lenders and JP Morgan Chase Bank, N.A. as the primary lender and administrative agent (the “JP Morgan facility”) with a maturity date of June 2017. On March 26, 2013, the Company amended the JP Morgan facility to expand available aggregate revolving commitments to $700,000 and to extend the maturity date to March 2018. The JP Morgan facility is available to finance the seasonal working capital requirements and general corporate purposes of the Company and its subsidiaries. At Coach’s request and lenders’ consent, revolving commitments of the JP Morgan facility may be increased to $1,000,000. As of June 28, 2014 and June 29, 2013, there was $140,000 and $0, respectively, of outstanding borrowings on the JP Morgan facility. Due to the short-term nature of this borrowing, the fair value approximates carrying value. | |
Borrowings under the JP Morgan Facility bear interest at a rate per annum equal to, at Coach’s option, either (a) a rate based on the rates applicable for deposits in the interbank market for U.S. dollars or the applicable currency in which the loans are made plus an applicable margin or (b) an alternate base rate (which is a rate equal to the greatest of (1) the Prime Rate in effect on such day, (2) the Federal Funds Effective Rate in effect on such day plus ½ of 1% or (3) the Adjusted LIBO Rate for a one month Interest Period on such day plus 1%). Additionally, Coach pays a commitment fee on the average daily unused amount of the JP Morgan Facility. At June 28, 2014, the commitment fee was 9 basis points. | |
Coach Japan maintains credit facilities with several Japanese financial institutions to provide funding for working capital and general corporate purposes, with total maximum borrowing capacity of 5.3 billion yen, or approximately $52,300 at June 28, 2014. Interest is based on the Tokyo Interbank rate plus a margin of 25 to 30 basis points. At June 28, 2014 and during fiscal 2014, there were no outstanding borrowings under these facilities. | |
Coach Shanghai Limited maintains a credit facility to provide funding for working capital and general corporate purposes, with a maximum borrowing capacity of 63.0 million Chinese renminbi, or approximately $10,100 at June 28, 2014. Interest is based on the People's Bank of China rate. At June 28, 2014 and during fiscal 2014, there were no outstanding borrowings under this facility. | |
Both the Coach Japan and Coach Shanghai Limited credit facilities can be terminated at any time by either party, and there is no guarantee that they will be available to the Company in future periods. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
As of June 28, 2014, the Company's equity method investment related to an equity interest in an entity formed during fiscal 2013 for the purpose of developing a new office tower in Manhattan, the Hudson Yards joint venture, with the Company owning less than 43% of the joint venture. This investment is included in the Company’s long-term investments. | |
The formation of the Hudson Yards joint venture serves as a financing vehicle for the project. Construction of the new building has commenced and upon completion of the office tower in fiscal 2016, the Company will retain a condominium interest serving as its new corporate headquarters. During fiscal 2014, the Company invested $87,233 in the joint venture. Since the formation of the Hudson Yards joint venture, the Company has invested $181,163. The Company expects to invest approximately $350,000 over the next two years, with approximately $240,000 estimated in fiscal 2015, depending on construction progress. Outside of the joint venture, Coach is directly investing in a portion of the design and build-out of the new corporate headquarters. In fiscal 2014, $2,082 was included in capital expenditures and we expect approximately another $188,000 over the period of construction. | |
The Hudson Yards joint venture is determined to be a VIE primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. | |
At June 28, 2014 and June 29, 2013, the Company had standby letters of credit totaling $5,558 and $14,885 outstanding. The letters of credit, which expire at various dates through 2015, primarily collateralize the Company’s obligation to third parties for insurance claims and value-added tax refunds. Coach pays certain fees with respect to letters of credit that are issued. | |
The Company had other contractual cash obligations as of June 28, 2014, including $533,504 related to inventory purchase obligations, $15,900 related to capital expenditure purchase obligations, and $9,100 of other purchase obligations. Refer to Note 8, "Leases," for a summary of the Company's future minimum rental payments under noncancelable leases. | |
In the ordinary course of business, Coach is a party to several pending legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, Coach's general counsel and management are of the opinion that the final outcome will not have a material effect on Coach's cash flow, results of operations or financial positio |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Goodwill and Intangible Assets | ' | |||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||
The change in the carrying amount of the Company’s goodwill, all of which is included within the International reportable segment, is as follows: | ||||
Total | ||||
Balance at June 30, 2012 | $ | 376,035 | ||
Acquisition of Singapore and Taiwan retail businesses | 31,645 | |||
Foreign exchange impact | (62,641 | ) | ||
Balance at June 29, 2013 | 345,039 | |||
Acquisition of Europe retail business | 14,812 | |||
Foreign exchange impact | 1,556 | |||
Balance at June 28, 2014 | $ | 361,407 | ||
At June 28, 2014 and June 29, 2013, the Company’s intangible assets, which are not subject to amortization, consisted of $9,788 of trademarks. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||
INCOME TAXES | ||||||||||||||||||||||||
The provisions for income taxes computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual provisions were: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 30, 2012 | ||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||
Income before provision for income taxes: | ||||||||||||||||||||||||
United States | $ | 818,610 | 72.9 | % | $ | 1,116,819 | 73.4 | % | $ | 1,152,576 | 76.5 | % | ||||||||||||
Foreign | 303,645 | 27.1 | 403,707 | 26.6 | 353,087 | 23.5 | ||||||||||||||||||
Total income before provision for income taxes: | $ | 1,122,255 | 100 | % | $ | 1,520,526 | 100 | % | $ | 1,505,663 | 100 | % | ||||||||||||
Tax expense at U.S. statutory rate | $ | 392,789 | 35 | % | $ | 532,184 | 35 | % | $ | 526,979 | 35 | % | ||||||||||||
State taxes, net of federal benefit | 34,581 | 3.1 | 51,036 | 3.4 | 46,233 | 3.1 | ||||||||||||||||||
Effects of foreign operations | (93,125 | ) | (8.3 | ) | (119,218 | ) | (7.9 | ) | (120,642 | ) | (8.1 | ) | ||||||||||||
Tax benefit related to agreements with tax authorities | — | — | (3,546 | ) | (0.2 | ) | (11,553 | ) | (0.7 | ) | ||||||||||||||
Other, net | 6,674 | 0.6 | 25,650 | 1.7 | 25,736 | 1.7 | ||||||||||||||||||
Taxes at effective worldwide rates | $ | 340,919 | 30.4 | % | $ | 486,106 | 32 | % | $ | 466,753 | 31 | % | ||||||||||||
Current and deferred tax provision (benefit) was: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 30, 2012 | ||||||||||||||||||||||
Current | Deferred | Current | Deferred | Current | Deferred | |||||||||||||||||||
Federal | $ | 283,391 | $ | (6,759 | ) | $ | 411,646 | $ | (11,596 | ) | $ | 398,494 | $ | 9,676 | ||||||||||
Foreign | 19,953 | (5,745 | ) | 12,944 | 4,146 | (13,685 | ) | 16,623 | ||||||||||||||||
State | 60,362 | (10,283 | ) | 68,036 | 930 | 54,108 | 1,537 | |||||||||||||||||
Total current and deferred tax provision (benefit) | $ | 363,706 | $ | (22,787 | ) | $ | 492,626 | $ | (6,520 | ) | $ | 438,917 | $ | 27,836 | ||||||||||
The components of deferred tax assets and liabilities were: | ||||||||||||||||||||||||
June 28, | June 29, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Share-based compensation | $ | 66,793 | $ | 66,590 | ||||||||||||||||||||
Reserves not deductible until paid | 97,917 | 49,531 | ||||||||||||||||||||||
Employee benefits | 39,465 | 62,628 | ||||||||||||||||||||||
Net operating loss | 23,197 | 25,413 | ||||||||||||||||||||||
Other | 9,716 | (1,037 | ) | |||||||||||||||||||||
Prepaid expenses | $ | 506 | $ | 2,234 | ||||||||||||||||||||
Property and equipment | 18,505 | (1,996 | ) | |||||||||||||||||||||
Gross deferred tax assets | $ | 256,099 | $ | 203,363 | ||||||||||||||||||||
Goodwill | 91,411 | 73,726 | ||||||||||||||||||||||
Other | 217 | 323 | ||||||||||||||||||||||
Gross deferred tax liabilities | 91,628 | 74,049 | ||||||||||||||||||||||
Net deferred tax assets | $ | 164,471 | $ | 129,314 | ||||||||||||||||||||
Consolidated Balance Sheets Classification | ||||||||||||||||||||||||
Deferred income taxes – current asset | $ | 112,630 | $ | 111,118 | ||||||||||||||||||||
Deferred income taxes – noncurrent asset | 111,556 | 84,845 | ||||||||||||||||||||||
Deferred income taxes – current liability | — | (14,424 | ) | |||||||||||||||||||||
Deferred income taxes – noncurrent liability (included within "Other Liabilities") | (59,715 | ) | (52,225 | ) | ||||||||||||||||||||
Net deferred tax asset | $ | 164,471 | $ | 129,314 | ||||||||||||||||||||
Significant judgment is required in determining the worldwide provision for income taxes, and there are many transactions for which the ultimate tax outcome is uncertain. It is the Company’s policy to establish provisions for taxes that may become payable in future years, including those due to an examination by tax authorities. The Company establishes the provisions based upon management’s assessment of exposure associated with uncertain tax positions. The provisions are analyzed at least quarterly and adjusted as appropriate based on new information or circumstances. | ||||||||||||||||||||||||
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||||||
June 28, | June 29, | June 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of fiscal year | $ | 148,810 | $ | 155,599 | $ | 162,060 | ||||||||||||||||||
Gross increase due to tax positions related to prior periods | 14,673 | 5,335 | 1,271 | |||||||||||||||||||||
Gross decrease due to tax positions related to prior periods | (3,317 | ) | (6,404 | ) | (7,264 | ) | ||||||||||||||||||
Gross increase due to tax positions related to current period | 28,684 | 33,637 | 28,151 | |||||||||||||||||||||
Gross decrease due to tax positions related to current period | — | — | — | |||||||||||||||||||||
Decrease due to lapse of statutes of limitations | (17,309 | ) | (29,075 | ) | (15,187 | ) | ||||||||||||||||||
Decrease due to settlements with taxing authorities | (848 | ) | (10,282 | ) | (13,432 | ) | ||||||||||||||||||
Balance at end of fiscal year | $ | 170,693 | $ | 148,810 | $ | 155,599 | ||||||||||||||||||
Of the $170,693 ending gross unrecognized tax benefit balance as of June 28, 2014, $113,007 relates to items which, if recognized, would impact the effective tax rate. Of the $148,810 ending gross unrecognized tax benefit balance as of June 29, 2013, $89,360 relates to items which, if recognized, would impact the effective tax rate. As of June 28, 2014 and June 29, 2013, gross interest and penalties payable was $17,991 and $17,301, respectively, which are included in other liabilities. The Company recognized gross interest and penalty expense of $767 in fiscal 2014, and gross interest and penalty income of $7,037 and $10,920 in fiscal 2013 and fiscal 2012, respectively. | ||||||||||||||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, as well as various state and foreign jurisdictions. Tax examinations are currently in progress in select foreign and state jurisdictions that are extending the years open under the statutes of limitation. Fiscal years 2011 to present are open to examination in the U.S. federal jurisdiction, fiscal 2007 to present in select state jurisdictions and fiscal 2005 to present in select foreign jurisdictions. The Company anticipates that one or more of these audits may be finalized in the foreseeable future. However, based on the status of these examinations, and the average time typically incurred in finalizing audits with the relevant tax authorities, we cannot reasonably estimate the impact these audits may have in the next 12 months, if any, to previously recorded uncertain tax positions. We accrue for certain known and reasonably anticipated income tax obligations after assessing the likely outcome based on the weight of available evidence. Although we believe that the estimates and assumptions we have used are reasonable and legally supportable, the final determination of tax audits could be different than that which is reflected in historical income tax provisions and recorded assets and liabilities. With respect to all jurisdictions, we believe we have made adequate provision for all income tax uncertainties. | ||||||||||||||||||||||||
For the years ended June 28, 2014 and June 29, 2013, the Company had net operating loss carryforwards in foreign tax jurisdictions of $526,681 and $340,893, the majority of which can be carried forward indefinitely. The deferred tax assets related to the carryforwards have been reflected net of $131,788 and $79,599 valuation allowances at June 28, 2014 and June 29, 2013, respectively. The Company’s valuation allowance increased by $52,189 in fiscal 2014 and $26,096 in fiscal 2013, primarily as the result of actual or anticipated results in the foreign jurisdictions. | ||||||||||||||||||||||||
The total amount of undistributed earnings of foreign subsidiaries as of June 28, 2014 and June 29, 2013, was $2,033,869 and $1,601,637, respectively. It is the Company’s intention to permanently reinvest undistributed earnings of its foreign subsidiaries and thereby indefinitely postpone their remittance. Accordingly, no provision has been made for foreign withholding taxes or United States income taxes which may become payable if undistributed earnings of foreign subsidiaries are paid as dividends. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is subject to many variables and is dependent on circumstances existing if and when remittance occurs. |
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended |
Jun. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Defined Contribution Plan | ' |
DEFINED CONTRIBUTION PLAN | |
Coach maintains the Coach, Inc. Savings and Profit Sharing Plan, which is a defined contribution plan. Employees who meet certain eligibility requirements and are not part of a collective bargaining agreement may participate in this program. The annual expense incurred by Coach for this defined contribution plan was $7,541, $16,274, and $18,641 in fiscal 2014, fiscal 2013 and fiscal 2012, respectively. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||
In fiscal 2014, the Company’s operations reflect five operating segments aggregated into two reportable segments: | |||||||||||||||||||||
• | North America, which includes sales to North American consumers through Company-operated stores, including the Internet, and sales to wholesale customers. | ||||||||||||||||||||
• | International, which includes sales to consumers through Coach-operated stores (including the Internet) and concession shop-in-shops in Japan and mainland China, Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany and Italy, as well as sales to wholesale customers and distributors in approximately 35 countries. | ||||||||||||||||||||
In deciding how to allocate resources and assess performance, Coach's chief operating decision maker regularly evaluates the sales and operating income of these segments. Operating income is the gross margin of the segment less direct expenses of the segment. Unallocated corporate expenses include inventory-related costs (such as production variances), advertising, marketing, design, administration and information systems, as well as distribution and consumer service expenses. Additionally, costs incurred by the Company as described in Note 3, "Transformation, Restructuring and Other Related Actions," are also included as unallocated corporate expenses. | |||||||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Net sales | $ | 3,100,482 | $ | 1,644,163 | $ | 61,581 | $ | — | $ | 4,806,226 | |||||||||||
Gross profit | 1,992,693 | 1,295,253 | 36,893 | (27,876 | ) | 3,296,963 | |||||||||||||||
Operating income (loss) | 1,164,088 | 555,714 | 34,147 | (633,875 | ) | 1,120,074 | |||||||||||||||
Income (loss) before provision for income taxes | 1,164,088 | 555,714 | 34,147 | (631,694 | ) | 1,122,255 | |||||||||||||||
Depreciation and amortization expense | 72,883 | 58,837 | — | 57,640 | 189,360 | ||||||||||||||||
Total assets | 432,566 | 1,128,509 | 5,663 | 2,096,393 | 3,663,131 | ||||||||||||||||
Additions to long-lived assets | 102,225 | 71,514 | — | 45,848 | 219,587 | ||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net sales | $ | 3,478,198 | $ | 1,558,104 | $ | 39,088 | $ | — | $ | 5,075,390 | |||||||||||
Gross profit | 2,345,826 | 1,255,220 | 32,390 | 64,712 | 3,698,148 | ||||||||||||||||
Operating income (loss) | 1,459,974 | 582,202 | 30,065 | (547,700 | ) | 1,524,541 | |||||||||||||||
Income (loss) before provision for income taxes | 1,459,974 | 582,202 | 30,065 | (551,715 | ) | 1,520,526 | |||||||||||||||
Depreciation and amortization expense | 72,279 | 45,693 | — | 45,015 | 162,987 | ||||||||||||||||
Total assets | 459,835 | 894,785 | 34,788 | 2,142,489 | 3,531,897 | ||||||||||||||||
Additions to long-lived assets | 98,645 | 60,932 | — | 81,776 | 241,353 | ||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net sales | $ | 3,316,895 | $ | 1,413,021 | $ | 33,264 | $ | — | $ | 4,763,180 | |||||||||||
Gross profit | 2,263,140 | 1,139,103 | 28,572 | 35,263 | 3,466,078 | ||||||||||||||||
Operating income (loss) | 1,447,964 | 557,715 | 26,526 | (520,216 | ) | 1,511,989 | |||||||||||||||
Income (loss) before provision for income taxes | 1,447,964 | 557,715 | 26,526 | (526,542 | ) | 1,505,663 | |||||||||||||||
Depreciation and amortization expense | 63,800 | 38,361 | — | 30,748 | 132,909 | ||||||||||||||||
Total assets | 441,826 | 985,098 | 32,379 | 1,645,018 | 3,104,321 | ||||||||||||||||
Additions to long-lived assets | 75,093 | 53,418 | — | 69,776 | 198,287 | ||||||||||||||||
(1) | As a result of the acquisition of the European joint venture (as discussed in Note 7), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For fiscal 2013, amounts reclassified are net sales of $17,411, gross profit of $8,368, operating income of $8,013 and income before provision for income taxes of $8,013. For fiscal 2012, amounts reclassified are net sales of $11,232, gross profit of $5,276, operating income of $3,880, and income before provision for income taxes of $3,880. | ||||||||||||||||||||
(2) Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||||||||||||
Coach's product offerings include modern luxury accessories and lifestyle collections, including women's and men's bags, women’s and men’s small leather goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. The following table shows net sales for each product category represented: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
June 28, | % of Total | June 29, | % of Total | June 30, | % of Total | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Women's Handbags | $ | 2,642,402 | 55 | % | $ | 2,923,124 | 58 | % | $ | 2,886,270 | 61 | % | |||||||||
Women's Accessories | 1,046,265 | 22 | 1,195,622 | 23 | 1,169,858 | 24 | |||||||||||||||
Men's | 691,764 | 14 | 599,531 | 12 | 423,524 | 9 | |||||||||||||||
All Other Products | 425,795 | 9 | 357,113 | 7 | 283,528 | 6 | |||||||||||||||
Total Sales | $ | 4,806,226 | 100 | % | $ | 5,075,390 | 100 | % | $ | 4,763,180 | 100 | % | |||||||||
The following is a summary of the all costs not allocated in the determination of segment operating income performance: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
June 28, | June 29, | June 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Inventory-related costs(1) | $ | (27,875 | ) | $ | 64,712 | $ | 35,262 | ||||||||||||||
Advertising, marketing and design | (238,064 | ) | (236,713 | ) | (217,167 | ) | |||||||||||||||
Administration and information systems(2) | (283,918 | ) | (292,985 | ) | (272,556 | ) | |||||||||||||||
Distribution and customer service | (84,018 | ) | (82,714 | ) | (65,755 | ) | |||||||||||||||
Total corporate unallocated | $ | (633,875 | ) | $ | (547,700 | ) | $ | (520,216 | ) | ||||||||||||
(1) Inventory-related costs consist of production variances and transformation-related costs. In fiscal 2014, 2013 and 2012 production variances were $54,317, $69,512 and $35,262, respectively. In fiscal 2014 and fiscal 2013, transformation and other-related costs were ($82,192) and ($4,800), respectively. There were no transformation and/or other-related charges in fiscal 2012. | |||||||||||||||||||||
(2) | Includes ($49,315) in fiscal 2014 and ($48,402) in fiscal 2013 related to transformation and other-related charges and ($39,209) related to charitable contributions in fiscal 2012. | ||||||||||||||||||||
Geographic Area Information | |||||||||||||||||||||
As of June 28, 2014, Coach operated 303 retail stores and 199 outlet stores in the United States, 29 retail stores and eight outlet stores in Canada, 198 concession shop-in-shops within department stores, retail stores and outlet stores in Japan, 250 concession shop-in-shops within department stores, retail stores and outlet stores in Hong Kong, Macau, mainland China, Singapore, Taiwan, Malaysia and South Korea, and 27 concession shop-in-shops within department stores, retail stores and outlet stores in Europe. Coach also operates distribution, product development and quality control locations in the United States, Hong Kong, China, South Korea, Vietnam, Philippines and India. Geographic revenue information is based on the location of our customer. Geographic long-lived asset information is based on the physical location of the assets at the end of each fiscal year and includes property and equipment, net and other assets. | |||||||||||||||||||||
United States | Japan | Other | Total | ||||||||||||||||||
International(1) | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Net sales | $ | 2,968,599 | $ | 654,653 | $ | 1,182,974 | $ | 4,806,226 | |||||||||||||
Long-lived assets | 594,731 | 70,436 | 175,478 | 840,645 | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net sales | $ | 3,334,479 | $ | 760,941 | $ | 979,970 | $ | 5,075,390 | |||||||||||||
Long-lived assets | 638,758 | 73,041 | 112,139 | 823,938 | |||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net sales | $ | 3,243,710 | $ | 844,863 | $ | 674,607 | $ | 4,763,180 | |||||||||||||
Long-lived assets | 631,979 | 74,324 | 108,334 | 814,637 | |||||||||||||||||
(1) | Other International sales reflect shipments to third-party distributors, primarily in East Asia, and sales from Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, mainland China, Singapore, Taiwan, Malaysia, South Korea, Europe and Canada. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted earnings per share: | ||||||||||||
Fiscal Year Ended | ||||||||||||
June 28, | June 29, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 781,336 | $ | 1,034,420 | $ | 1,038,910 | ||||||
Total weighted-average basic shares | 277,790 | 282,494 | 288,284 | |||||||||
Dilutive securities: | ||||||||||||
Share-based award plans | 987 | 1,450 | 1,694 | |||||||||
Stock option programs | 1,602 | 2,363 | 4,151 | |||||||||
Total weighted-average diluted shares | 280,379 | 286,307 | 294,129 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 2.81 | $ | 3.66 | $ | 3.6 | ||||||
Diluted | $ | 2.79 | $ | 3.61 | $ | 3.53 | ||||||
At June 28, 2014, options to purchase 6,378 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $43.39 to $78.46, were greater than the average market price of the common shares. | ||||||||||||
At June 29, 2013, options to purchase 2,145 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $56.95 to $78.46, were greater than the average market price of the common shares. | ||||||||||||
At June 30, 2012, options to purchase 116 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $72.06 to $78.46, were greater than the average market price of the common shares. |
Stock_Repurchase_Program
Stock Repurchase Program | 12 Months Ended |
Jun. 28, 2014 | |
Equity [Abstract] | ' |
Stock Repurchase Program | ' |
STOCK REPURCHASE PROGRAM | |
Purchases of Coach’s common stock are made from time to time, subject to market conditions and at prevailing market prices, through open market purchases. Under Maryland law, Coach’s state of incorporation, treasury shares are not allowed. As a result, all repurchased shares are retired when acquired. The Company may terminate or limit the stock repurchase program at any time. | |
During fiscal 2014, fiscal 2013, and fiscal 2012, the Company repurchased and retired 10,239, 7,066 and 10,688 shares, respectively, or $524,926, $400,000, and $700,000 of common stock, respectively, at an average cost of $51.27, $56.61 and $65.49 per share, respectively. As of June 28, 2014, Coach had $836,701 remaining in the stock repurchase program. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||
Supplemental Balance Sheet Information | ' | |||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
The components of certain balance sheet accounts are as follows: | ||||||||
June 28, | June 29, | |||||||
2014 | 2013 | |||||||
Property and equipment | ||||||||
Land and building | $ | 168,550 | $ | 168,550 | ||||
Machinery and equipment | 34,746 | 33,172 | ||||||
Furniture and fixtures | 544,580 | 564,574 | ||||||
Leasehold improvements | 648,592 | 632,550 | ||||||
Construction in progress | 85,150 | 67,665 | ||||||
Less: accumulated depreciation | (767,718 | ) | (771,740 | ) | ||||
Total property and equipment, net | $ | 713,900 | $ | 694,771 | ||||
Accrued liabilities | ||||||||
Payroll and employee benefits | $ | 137,752 | $ | 193,112 | ||||
Accrued rent | 50,946 | 39,984 | ||||||
Dividends payable | 92,582 | 94,998 | ||||||
Operating expenses | 237,483 | 215,059 | ||||||
Total accrued liabilities | $ | 518,763 | $ | 543,153 | ||||
Other liabilities | ||||||||
Deferred lease obligation | $ | 135,154 | $ | 117,502 | ||||
Gross unrecognized tax benefit | 170,693 | 148,810 | ||||||
Deferred tax liabilities | 59,715 | 52,225 | ||||||
Other | 63,798 | 81,207 | ||||||
Total other liabilities | $ | 429,360 | $ | 399,744 | ||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | |||||||||||||||
Schedule II — Valuation and Qualifying Accounts | ||||||||||||||||
For the Fiscal Years Ended June 28, 2014, June 29, 2013 and June 30, 2012 | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||
Balance at Beginning | Provision Charged to Costs and Expenses | Write-offs/ | Balance at | |||||||||||||
of Year | Allowances Taken | End of Year | ||||||||||||||
Fiscal 2014 | ||||||||||||||||
Allowance for bad debts | $ | 1,138 | $ | 1,649 | $ | (1,368 | ) | $ | 1,419 | |||||||
Allowance for returns | 7,023 | 744 | (4,902 | ) | 2,865 | |||||||||||
Allowance for markdowns | 8,324 | 37,997 | (34,714 | ) | 11,607 | |||||||||||
Valuation allowance | 79,599 | 52,189 | — | 131,788 | ||||||||||||
Total | $ | 96,084 | $ | 92,579 | $ | (40,984 | ) | $ | 147,679 | |||||||
Fiscal 2013 | ||||||||||||||||
Allowance for bad debts | $ | 3,318 | $ | (529 | ) | $ | (1,651 | ) | $ | 1,138 | ||||||
Allowance for returns | 2,810 | 8,644 | (4,431 | ) | 7,023 | |||||||||||
Allowance for markdowns | 3,685 | 22,484 | (17,845 | ) | 8,324 | |||||||||||
Valuation allowance | 53,503 | 29,252 | (3,156 | ) | 79,599 | |||||||||||
Total | $ | 63,316 | $ | 59,851 | $ | (27,083 | ) | 96,084 | ||||||||
Fiscal 2012 | ||||||||||||||||
Allowance for bad debts | $ | 3,431 | $ | (117 | ) | $ | 4 | $ | 3,318 | |||||||
Allowance for returns | 2,196 | 1,752 | (1,138 | ) | 2,810 | |||||||||||
Allowance for markdowns | 3,917 | 10,267 | (10,499 | ) | 3,685 | |||||||||||
Valuation allowance | 21,800 | 31,703 | — | 53,503 | ||||||||||||
Total | $ | 31,344 | $ | 43,605 | $ | (11,633 | ) | $ | 63,316 | |||||||
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
Quarterly Financial Data | ||||||||||||||||
(dollars and shares in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Fiscal 2014(1) | ||||||||||||||||
Net sales | $ | 1,150,760 | $ | 1,419,624 | $ | 1,099,626 | $ | 1,136,216 | ||||||||
Gross profit | 826,573 | 982,679 | 781,339 | 706,372 | ||||||||||||
Net income | 217,883 | 297,438 | 190,740 | 75,275 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.77 | 1.07 | 0.69 | 0.27 | ||||||||||||
Diluted | 0.77 | 1.06 | 0.68 | 0.27 | ||||||||||||
Fiscal 2013(1) | ||||||||||||||||
Net sales | $ | 1,161,350 | $ | 1,503,774 | $ | 1,187,578 | $ | 1,222,688 | ||||||||
Gross profit | 845,168 | 1,085,382 | 880,188 | 887,410 | ||||||||||||
Net income | 221,381 | 352,764 | 238,932 | 221,343 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.78 | 1.25 | 0.85 | 0.79 | ||||||||||||
Diluted | 0.77 | 1.23 | 0.84 | 0.78 | ||||||||||||
Fiscal 2012(1) | ||||||||||||||||
Net sales | $ | 1,050,359 | $ | 1,448,649 | $ | 1,108,981 | $ | 1,155,191 | ||||||||
Gross profit | 764,653 | 1,045,211 | 818,067 | 838,147 | ||||||||||||
Net income | 214,983 | 347,495 | 225,002 | 251,430 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.74 | 1.2 | 0.78 | 0.88 | ||||||||||||
Diluted | 0.73 | 1.18 | 0.77 | 0.86 | ||||||||||||
(1) | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Jun. 28, 2014 | ||
Accounting Policies [Abstract] | ' | |
Fiscal Year | ' | |
Fiscal Year | ||
The Company’s fiscal year ends on the Saturday closest to June 30. Unless otherwise stated, references to years in the financial statements relate to fiscal years. The fiscal years ended June 28, 2014 (“fiscal 2014”), June 29, 2013 (“fiscal 2013”) and June 30, 2012 (“fiscal 2012”) were each 52-week periods. The fiscal year ending June 27, 2015 (“fiscal 2015”) will be also be a 52-week period. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates in amounts that may be material to the financial statements. | ||
Significant estimates inherent in the preparation of the consolidated financial statements include customer returns, discounts, end-of-season markdowns, and operational chargebacks; the realizability of inventory; reserves for 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, amongst others. | ||
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The consolidated financial statements include the accounts of the Company and all 100% owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of cash balances and highly liquid investments with a maturity of three months or less at the date of purchase. | ||
Investments | ' | |
Investments | ||
Long-term investments primarily consist of high-credit quality U.S. and non-U.S. issued corporate debt securities, U.S. Treasuries and government agency securities, classified as available-for-sale, and recorded at fair value, with unrealized gains and losses recorded in other comprehensive income. Long-term investments also include the equity method investment related to the Hudson Yards joint venture and the Reed Krakoff cost method investment. Short-term investments consist primarily of time deposits, U.S. Treasuries and government agency securities, and high-credit quality U.S. and non-U.S. issued corporate debt securities with original maturities greater than three months and with maturities within one year of balance sheet date, classified as available-for-sale and held-to-maturity. Held-to-maturity investments are recorded at amortized cost, which approximates fair value. Dividend and interest income are recognized when earned. | ||
Investments in companies in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the investee, however, other factors are considered, such as board representation and the rights to participate in the day-to-day operations of the business. | ||
Additionally, GAAP requires the consolidation of all entities for which a Company has a controlling voting interest and all variable interest entities (“VIEs”) for which a Company is deemed to be the primary beneficiary. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity’s operations or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity’s activities involve or are conducted on behalf of the investor with disproportionately few voting rights. | ||
From time to time, Coach may make an investment that requires judgment in determining whether the entity is a VIE. If it is determined that the entity is a VIE, the Company must assess whether it is the primary beneficiary. | ||
Concentration of Credit Risk | ' | |
Concentration of Credit Risk | ||
Financial instruments that potentially expose Coach to concentration of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. The Company places its cash investments with high-credit quality financial institutions and currently invests primarily in U.S. government and agency debt securities, municipal government and corporate debt securities, bank deposits, and money market instruments placed with major banks and financial institutions. Accounts receivable is generally diversified due to the number of entities comprising Coach’s customer base and their dispersion across many geographical regions. The Company believes no significant concentration of credit risk exists with respect to these investments and accounts receivable. | ||
Inventories | ' | |
Inventories | ||
The Company’s inventories are reported at the lower of cost or market. Inventory costs include material, conversion costs, freight and duties and are determined by the first-in, first-out method. The Company reserves for slow-moving and aged inventory based on historical experience, current product demand and expected future demand. A decrease in product demand due to changing customer tastes, buying patterns or increased competition could impact Coach’s evaluation of its slow-moving and aged inventory and additional reserves might be required. | ||
Property and Equipment, Net | ' | |
Property and Equipment, Net | ||
Property and equipment, net is stated at cost less accumulated depreciation including the impact long-lived asset impairment and disposals. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Buildings are depreciated over 40 years. Machinery and equipment are depreciated over lives of five to seven years, furniture and fixtures are depreciated over lives of three to five years, and computer software is depreciated over lives of three to seven years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease terms. Maintenance and repair costs are charged to earnings as incurred while expenditures for major renewals and improvements are capitalized. | ||
Valuation of Long-Lived Assets | ' | |
Valuation of Long-Lived Assets | ||
Long-lived assets, such as property and equipment, are evaluated for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The evaluation is based on a review of forecasted operating cash flows and the profitability of the related asset group. An impairment loss is recognized if the forecasted cash flows are less than the carrying amount of the asset. Similar to prior fiscal years, when assessing store assets for impairment in fiscal 2014, the Company analyzed the cash flows at an individual store-by-store level, which is the lowest level for identifiable cash flows. The Company recorded impairment losses of $35,544 in fiscal 2014 and $16,624 in fiscal 2013. The Company did not record any impairment losses in fiscal 2012. | ||
In determining future cash flows, Coach takes various factors into account, including changes in merchandising strategy, the emphasis on retail store cost controls, the effects of macroeconomic trends such as consumer spending, the impacts of the experienced level of retail store managers, the level of advertising, promotional cadence and in-store capital investments. Since the determination of future cash flows is an estimate of future performance, there may be future impairments in the event that future cash flows do not meet expectations. | ||
Operating Leases | ' | |
Operating Leases | ||
The Company’s leases for office space, retail locations and distribution facilities are accounted for as operating leases. Certain of the Company's leases contain renewal options, rent escalation clauses, and/or landlord incentives. Renewal terms generally reflect market rates at the time of renewal. Rent expense for noncancelable operating leases with scheduled rent increases and/or landlord incentives is recognized on a straight-line basis over the lease term, including any applicable rent holidays, beginning with the lease commencement date, or the date the Company takes control of the leased space, whichever is sooner. The excess of straight-line rent expense over scheduled payment amounts and landlord incentives is recorded as a deferred rent liability. As of the end of fiscal 2014 and fiscal 2013, deferred rent obligations of $135,154 and $117,502, respectively, were classified primarily within other non-current liabilities in the Company's consolidated balance sheets. Certain rentals are also contingent upon factors such as sales. Contingent rentals are recognized when the achievement of the target (i.e., sale levels), which triggers the related rent payment, is considered probable and estimable. | ||
Asset retirement obligations represent legal obligations associated with the retirement of a tangible long-lived asset. The Company’s asset retirement obligations are primarily associated with leasehold improvements that we are contractually obligated to remove at the end of a lease to comply with the lease agreement. When such an obligation exists, the Company recognizes an asset retirement obligation at the inception of a lease at its estimated fair value. The asset retirement obligation is recorded in current liabilities or non-current liabilities (based on the expected timing of payment of the related costs) and is subsequently adjusted for any changes in estimates. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. As of the end of fiscal 2014 and fiscal 2013, the Company had asset retirement obligations of $18,351 and $16,497, respectively, primarily classified within other non-current liabilities in the Company's consolidated balance sheets. | ||
Goodwill and Other Intangible Assets | ' | |
Goodwill and Other Intangible Assets | ||
Goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized, but are assessed for impairment at least annually. The Company has no finite-lived intangible assets. | ||
The Company uses a quantitative goodwill impairment test, which is a two-step process. The first step is to identify the existence of potential impairment by comparing the fair value of each reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. | ||
If the carrying value of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying value of that goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. In other words, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. | ||
Determination of the fair value of a reporting unit and the fair value of individual assets and liabilities of a reporting unit is judgmental in nature and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. Estimates of fair value are primarily determined using discounted cash flows, market comparisons, and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows, discount rates, growth rates, and determination of appropriate market comparables. | ||
The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. The Company determined that there was no impairment in fiscal 2014, fiscal 2013 or fiscal 2012 as the fair values of our reporting units significantly exceeded their respective carrying values. | ||
Stock Repurchase and Retirement | ' | |
Stock Repurchase and Retirement | ||
Coach accounts for stock repurchases and retirements by allocating the repurchase price to common stock and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances, beginning with the earliest issuance. Under Maryland law, Coach’s state of incorporation, treasury shares are not allowed. As a result, all repurchased shares are retired when acquired. During the second quarter of fiscal 2008, the Company’s total cumulative stock repurchases exceeded the total shares issued in connection with the Company’s October 2000 initial public offering, and stock repurchases in excess of this amount are assumed to be made from the Company’s April 2001 Sara Lee exchange offer. Shares issued in connection with this exchange offer were accounted for as a contribution to common stock and retained earnings. Therefore, stock repurchases and retirements associated with the exchange offer are accounted for by allocation of the repurchase price to common stock and retained earnings. During the fourth quarter of fiscal 2010, cumulative stock repurchases allocated to retained earnings resulted in an accumulated deficit balance. Since its initial public offering, the Company has not experienced a net loss in any fiscal year, and the net accumulated deficit balance in stockholders’ equity is attributable to the cumulative stock repurchase activity. The total cumulative amount of common stock repurchase price allocated to retained earnings as of June 28, 2014 and June 29, 2013 was approximately $6,725,000 and $6,200,000, respectively. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Revenue is recognized by the Company when there is persuasive evidence of an arrangement, delivery has occurred (and risks and rewards of ownership have been transferred to the buyer), price has been fixed or is determinable, and collectability is reasonably assured. | ||
Retail store and concession-based shop-in-shop revenues are recognized at the point of sale, which occurs when merchandise is sold in an over-the-counter consumer transaction. These revenues are recognized net of estimated returns at the time of sale to consumers. Internet revenue from sales of products ordered through the Company’s e-commerce sites is recognized upon delivery and receipt of the shipment by its customers and includes shipping and handling charges paid by customers. Internet revenue is also reduced by an estimate for returns. | ||
Wholesale revenue 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, and markdown allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for 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. 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. | ||
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, which is approximately two years after the gift card is issued, 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 associated with gift card breakage is not material to the Company’s net operating results. | ||
The Company accounts for sales taxes and other related taxes on a net basis, excluding such taxes from revenue. | ||
Cost of Sales | ' | |
Cost of Sales | ||
Cost of sales consists of inventory costs and other related costs such as changes in reserves for shrinkage and inventory realizability, destruction costs, damages and replacements. | ||
Selling, General and Administrative Expenses (SG&A) | ' | |
Selling, General and Administrative Expenses ("SG&A") | ||
Selling, general and administrative expenses are comprised of four categories: (1) selling; (2) advertising, marketing and design; (3) distribution and customer service; and (4) administrative. Selling expenses include store employee compensation, occupancy costs and supply costs, wholesale and retail account administration compensation globally and Coach international operating expenses. These expenses are affected by the number of Coach-operated stores open during any fiscal period and store performance, as compensation and rent expenses vary with sales. Advertising, marketing and design expenses include employee compensation, media space and production, advertising agency fees (primarily to support North America), new product design costs, public relations and market research expenses. Distribution and customer service expenses include warehousing, order fulfillment, shipping and handling, customer service and bag repair costs. Administrative expenses include compensation costs for “corporate” functions including: executive, finance, human resources, legal and information systems departments, as well as corporate headquarters occupancy costs, consulting and certain software expenses. Administrative expenses also include global equity compensation expense. | ||
Shipping and Handling | ' | |
Shipping and Handling | ||
Shipping and handling costs incurred were $61,893, $66,828 and $52,240 in fiscal 2014, fiscal 2013 and fiscal 2012, respectively, and are included in selling, general and administrative expenses. | ||
Advertising | ' | |
Advertising | ||
Advertising costs include expenses related to direct marketing activities, such as direct mail pieces, digital and other media and production costs. In fiscal 2014, fiscal 2013 and fiscal 2012, advertising expenses totaled $130,122, $102,701 and $89,159 respectively, and are included in selling, general and administrative expenses. Advertising costs are expensed when the advertising first appears. | ||
Share-Based Compensation | ' | |
Share-Based Compensation | ||
The Company recognizes the cost of equity awards to employees and the non-employee Directors based on the grant-date fair value of those awards. The grant-date fair values of share unit awards are based on the fair value of the Company's common stock on the date of grant. The grant-date fair value of stock option awards is determined using the Black-Scholes option pricing model and involves several assumptions, including the expected term of the option, expected volatility and dividend yield. The expected term of options represents the period of time that the options granted are expected to be outstanding and is based on historical experience. Expected volatility is based on historical volatility of the Company’s stock as well as the implied volatility from publicly traded options on Coach’s stock. Dividend yield is based on the current expected annual dividend per share and the Company’s stock price. Changes in the assumptions used to determine the Black-Scholes value could result in significant changes in the Black-Scholes value. | ||
For stock options and share unit awards, the Company recognizes share-based compensation net of estimated forfeitures and revises the estimates in subsequent periods if actual forfeitures differ from the estimates. The Company estimates the forfeiture rate based on historical experience as well as expected future behavior. | ||
The Company grants performance-based share awards to certain key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. On a quarterly basis, the Company assesses actual performance versus the predetermined performance goals, and adjusts the share-based compensation expense to reflect the relative performance achievement. Actual distributed shares are calculated upon conclusion of the service and performance periods, and include dividend equivalent shares. If the performance-based award incorporates a market condition, the grant-date fair value of such award is determined using a pricing model, such as a Monte Carlo Simulation. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company’s effective tax rate is based on pre-tax income, statutory tax rates, tax laws and regulations, and tax planning strategies available in the various jurisdictions in which Coach operates. The Company classifies interest and penalties on uncertain tax positions in the provision for income taxes. Coach records net deferred tax assets to the extent the Company believes that it is more likely than not that these assets will be realized. In making such determination, the Company considers all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent results of operation. The Company reduces deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that some amount of deferred tax assets is not expected to be realized. Deferred taxes are not provided on the undistributed earnings of subsidiaries as such amounts are considered to be permanently invested. | ||
The Company recognizes the impact of tax positions in the financial statements if those positions will more likely than not be sustained on audit, based on the technical merits of the position. Although the Company believes that the estimates and assumptions used are reasonable and legally supportable, the final determination of tax audits could be different than that which is reflected in historical tax provisions and recorded assets and liabilities. Tax authorities periodically audit the Company’s income tax returns, and in specific cases, the tax authorities may take a contrary position that could result in a significant impact on our results of operations. Significant management judgment is required in determining the effective tax rate, in evaluating our tax positions and in determining the net realizable value of deferred tax assets. | ||
Derivative Instruments | ' | |
Derivative Instruments | ||
Substantially all of the Company’s transactions involving international parties, excluding international consumer sales, are denominated in U.S. dollars, which limits the Company’s exposure to the effects of foreign currency exchange rate fluctuations. However, the Company is exposed to foreign currency exchange risk related to its foreign operating subsidiaries’ U.S. dollar-denominated inventory purchases and various cross-currency intercompany and related party loans. Coach uses derivative financial instruments to manage these risks. These derivative transactions are in accordance with the Company’s risk management policies. Coach does not enter into derivative transactions for speculative or trading purposes. | ||
The Company records all derivative contracts at fair value on the consolidated balance sheet. The fair values of foreign currency derivatives are based on the forward curves of the specific indices upon which settlement is based and include an adjustment for the Company’s credit risk. Judgment is required of management in developing estimates of fair value. The use of different market assumptions or methodologies could affect the estimated fair value. | ||
For derivative instruments that qualify for hedge accounting, the effective portion of changes in the fair value of these instruments is either (i) offset against the changes in fair value of the hedged assets or liabilities through earnings or (ii) recognized as a component of accumulated other comprehensive income (loss) ("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 that is designated as a hedge, the Company 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 over the term of the instrument. The extent to which a hedging instrument has been and is expected to remain 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 designated as a cash flow hedge is not considered to be effective, any change in its fair value related 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 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 may be exposed to the risk that the counterparties to such contacts 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, among other factors. | ||
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, primarily within cash from operating activities. | ||
Hedging Portfolio | ||
The Company enters into derivative contracts primarily to reduce its risks related to exchange rate fluctuations on U.S. dollar-denominated inventory purchases and various cross-currency intercompany and related party loans. To the extent its derivative 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 AOCI and subsequently recognized in the consolidated statements of income as follows: | ||
• | Zero-cost collars - These derivatives are primarily executed by two of the Company’s businesses outside of the United States (Coach Japan and Coach Canada), and are recognized as part of the cost of the inventory purchases being hedged within cost of sales, when the related inventory is sold to a third party. Current maturity dates range from July 2014 to June 2015. | |
• | Cross currency swaps - These derivatives relate to intercompany loans, and are recognized within foreign currency gains (losses) generally in the period in which the related payments being hedged are revalued or settled. Current maturity dates range from August 2014 to November 2014. | |
Foreign Currency | ' | |
Foreign Currency | ||
The functional currency of the Company's foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted-average exchange rates for the period. The resulting translation adjustments are included in the consolidated statements of comprehensive income as a component of other comprehensive income (loss) (“OCI”) and in the consolidated statements of equity within AOCI. Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature also are included within this component of equity. | ||
The Company also recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency in earnings. Foreign currency transaction gains and losses also include amounts realized on the settlement of certain intercompany loans with foreign subsidiaries. | ||
Earnings per Share | ' | |
Earnings per Share | ||
Basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is calculated similarly but includes potential dilution from the exercise of stock options and vesting of stock awards, or any other potentially dilutive instruments. | ||
Reclassification | ' | |
Reclassifications | ||
Certain prior year amounts, specifically related to disclosures of short-term investments in Note 10, "Fair Value Measurements" and amounts in connection with the acquisition of the retail business in Europe, have been reclassified to conform to the current year presentation in the consolidated financial statements. | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 4), but did not have an impact on the Company’s Consolidated Financial Statements. | ||
In May 2014, the FASB issued Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” which provides a single, comprehensive revenue recognition model for all contracts with customers, and contains principles to determine the measurement of revenue and timing of when it is recognized. The requirements of the new standard will be effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, which for the Company is the first quarter of fiscal 2018. The Company is currently evaluating this guidance, but does not expect its adoption to have a material effect on its Consolidated Financial Statements. |
Transformation_Restructuring_a1
Transformation, Restructuring and Other Related Actions (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Summary of our Restructuring and Transformation Related Plans | ' | |||||||||||||||||||
A summary of charges and related liabilities are as follows: | ||||||||||||||||||||
Severance and Related Costs | Impairment | Other | Total | |||||||||||||||||
Fiscal 2013 charges | $ | 29,859 | $ | 16,624 | $ | 6,719 | $ | 53,202 | ||||||||||||
Cash payments | — | — | — | — | ||||||||||||||||
Non-cash charges | (1,980 | ) | $ | (16,624 | ) | $ | (6,636 | ) | $ | (25,240 | ) | |||||||||
Liability as of June 29, 2013 | $ | 27,879 | $ | — | $ | 83 | $ | 27,962 | ||||||||||||
(Income) expense | $ | (1,732 | ) | $ | — | $ | 1,903 | $ | 171 | |||||||||||
Non-cash charges | (345 | ) | — | (1,822 | ) | (2,167 | ) | |||||||||||||
Cash payments and settlements | (25,245 | ) | $ | — | $ | (164 | ) | $ | (25,409 | ) | ||||||||||
Liability as of June 28, 2014 | $ | 557 | $ | — | $ | — | $ | 557 | ||||||||||||
A summary of charges and related liabilities under the Company's Transformation Plan are as follows: | ||||||||||||||||||||
Inventory-Related Charges | Impairment | Store-Related Costs(1) | Other | Total | ||||||||||||||||
Fiscal 2014 charges | $ | 82,192 | $ | 35,544 | $ | 12,191 | $ | 1,580 | $ | 131,507 | ||||||||||
Cash payments | — | — | — | — | — | |||||||||||||||
Non-cash charges | (66,774 | ) | (35,544 | ) | (6,737 | ) | — | (109,055 | ) | |||||||||||
Liability as of June 28, 2014 | $ | 15,418 | $ | — | $ | 5,454 | $ | 1,580 | $ | 22,452 | ||||||||||
(1) Includes store closure costs, related severance and accelerated depreciation charges as a result of store updates. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The components of accumulated other comprehensive income, as of the dates indicated, are as follows: | ||||||||||||||||||||
Gains | Unrealized | |||||||||||||||||||
(Losses) | (Losses) Gains | |||||||||||||||||||
on Cash | on Available- | Cumulative | ||||||||||||||||||
Flow | for-Sale | Translation | ||||||||||||||||||
Hedges(1) | Securities | Adjustment | Other(2) | Total | ||||||||||||||||
Balance at June 30, 2012 | $ | (461 | ) | $ | — | $ | 55,360 | $ | (4,424 | ) | $ | 50,475 | ||||||||
Other comprehensive income (loss) before reclassifications | 8,005 | (1,276 | ) | (66,990 | ) | 1,343 | (58,918 | ) | ||||||||||||
Less: gains reclassified from accumulated other comprehensive income | 3,803 | — | — | — | 3,803 | |||||||||||||||
Net current-period other comprehensive income (loss) | 4,202 | (1,276 | ) | (66,990 | ) | 1,343 | (62,721 | ) | ||||||||||||
Balance at June 29, 2013 | $ | 3,741 | $ | (1,276 | ) | $ | (11,630 | ) | $ | (3,081 | ) | $ | (12,246 | ) | ||||||
Other comprehensive income before reclassifications | 3,271 | 3,150 | 2,378 | 105 | 8,904 | |||||||||||||||
Less: gains (losses) reclassified from accumulated other comprehensive income | 6,422 | 67 | — | (1,072 | ) | 5,417 | ||||||||||||||
Net current-period other comprehensive (loss) income | (3,151 | ) | 3,083 | 2,378 | 1,177 | 3,487 | ||||||||||||||
Balance at June 28, 2014 | $ | 590 | $ | 1,807 | $ | (9,252 | ) | $ | (1,904 | ) | $ | (8,759 | ) | |||||||
(1) | The ending balances of accumulated other comprehensive income related to cash flow hedges are net of tax of $(532) and $(2,338) as of June 28, 2014 and June 29, 2013, respectively. The amounts reclassified from accumulated other comprehensive income are net of tax of $(3,432) and $(2,416) as of June 28, 2014 and June 29, 2013, respectively. | |||||||||||||||||||
(2) | The components of Other include the accumulated loss on the Company's investment in an auction rate security and the minimum pension liability adjustment of $0 and $(1,904) as of June 28, 2014 and $(1,072) and $(2,009) as of June 29, 2013, respectively. As of June 28, 2014 and June 29, 2013 the balances of accumulated other comprehensive income are net of tax of $1,531 and $2,118, respectively. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jun. 28, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||
The following table shows the total compensation cost charged against income for these plans and the related tax benefits recognized in the income statement: | |||||||||||||
June 28, 2014(1) | June 29, | June 30, | |||||||||||
2013 | 2012 | ||||||||||||
Compensation expense | $ | 104,940 | $ | 120,460 | $ | 107,511 | |||||||
Related income tax benefit | 33,095 | 39,436 | 37,315 | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||
A summary of stock option activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Options Outstanding | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at June 29, 2013 | 12,893 | $ | 43.37 | ||||||||||
Granted | 2,440 | 52.52 | |||||||||||
Exercised | (1,380 | ) | 32.27 | ||||||||||
Forfeited or expired | (2,274 | ) | 55.6 | ||||||||||
Outstanding at June 28, 2014 | 11,679 | 44.21 | 5.67 | $ | 19,920 | ||||||||
Vested or expected to vest at June 28, 2014 | 11,419 | 43.96 | 5.55 | 19,920 | |||||||||
Exercisable at June 28, 2014 | 7,550 | 38.92 | 4.07 | 19,920 | |||||||||
Schedule of Stock Options Grant Weighted Average Assumptions | ' | ||||||||||||
The fair value of each Coach option grant is estimated on the date of grant using the Black-Scholes option pricing model and the following weighted-average assumptions: | |||||||||||||
June 28, | June 29, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected term (years) | 3.1 | 3.1 | 3.1 | ||||||||||
Expected volatility | 32.5 | % | 39.5 | % | 39.4 | % | |||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | 0.6 | % | |||||||
Dividend yield | 2.6 | % | 2.2 | % | 1.5 | % | |||||||
Schedule of Employee Stock Purchase Plan | ' | ||||||||||||
Compensation expense is calculated for the fair value of employees’ purchase rights using the Black-Scholes model and the following weighted-average assumptions: | |||||||||||||
Fiscal Year Ended | |||||||||||||
June 28, | June 29, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected term (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Expected volatility | 29.5 | % | 34.1 | % | 45.6 | % | |||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.1 | % | |||||||
Dividend yield | 2.2 | % | 1.7 | % | 1.4 | % | |||||||
Service Based Restricted Stock Units | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Nonvested Share Activity | ' | ||||||||||||
A summary of service-based RSU activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Non-vested | Average | ||||||||||||
Share Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at June 29, 2013 | 3,269 | $ | 54.06 | ||||||||||
Granted | 2,018 | 52.93 | |||||||||||
Vested | (1,503 | ) | 50.89 | ||||||||||
Forfeited | (563 | ) | 54.88 | ||||||||||
Non-vested at June 28, 2014 | 3,221 | 54.68 | |||||||||||
Performance Shares | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Nonvested Share Activity | ' | ||||||||||||
A summary of performance-based share award activity during the year ended June 28, 2014 is as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Non-vested | Average | ||||||||||||
Share Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at June 29, 2013 | 1,093 | $ | 46.84 | ||||||||||
Granted | 315 | 32.53 | |||||||||||
Change due to performance condition achievement | 62 | 36.48 | |||||||||||
Vested | (453 | ) | 40.96 | ||||||||||
Forfeited | (118 | ) | 42.81 | ||||||||||
Non-vested at June 28, 2014 | 899 | 44.6 | |||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Summary of Investments | ' | |||||||||||||||||||||||
The following table summarizes the Company’s investments, all of which are denominated in U.S. dollars, recorded within the consolidated balance sheets as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | |||||||||||||||||||||||
Short-term | Long-Term | Total | Short-term | Long-term | Total | |||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||||||
Government securities - U.S.(1) | $ | 41,969 | $ | 55,360 | $ | 97,329 | $ | — | $ | — | $ | — | ||||||||||||
Corporate debt securities – U.S.(1) | 25,387 | 144,881 | 170,268 | 2,094 | 63,442 | 65,536 | ||||||||||||||||||
Corporate debt securities – non-U.S.(1) | 34,683 | 98,766 | 133,449 | — | 33,968 | 33,968 | ||||||||||||||||||
Auction rate security(2) | — | — | — | — | 6,000 | 6,000 | ||||||||||||||||||
Asset backed securities(3) | — | 1,085 | 1,085 | — | — | — | ||||||||||||||||||
Available-for-sale investments, total | $ | 102,039 | $ | 300,092 | $ | 402,131 | $ | 2,094 | $ | 103,410 | $ | 105,504 | ||||||||||||
Held to maturity: | ||||||||||||||||||||||||
Government securities - U.S.(4) | $ | 18,173 | $ | — | $ | 18,173 | $ | — | $ | — | $ | — | ||||||||||||
Corporate debt securities – U.S.(4) | 33,511 | — | 33,511 | — | — | — | ||||||||||||||||||
Corporate debt securities – non-U.S.(4) | 24,370 | — | 24,370 | — | — | — | ||||||||||||||||||
Commercial paper(4) | 23,541 | — | 23,541 | — | — | — | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Time deposits(5) | 75,069 | — | 75,069 | 70,012 | — | 70,012 | ||||||||||||||||||
Other(6) | — | 184,426 | 184,426 | — | 93,930 | 93,930 | ||||||||||||||||||
Total Investments | $ | 276,703 | $ | 484,518 | $ | 761,221 | $ | 72,106 | $ | 197,340 | $ | 269,446 | ||||||||||||
(1) | These securities have maturity dates between calendar years 2014 and 2017 and are recorded at fair value. | |||||||||||||||||||||||
(2) | The investment was sold in the third quarter of fiscal 2014. Refer to Note 10, "Fair Value Measurements," for further information. | |||||||||||||||||||||||
(3) | The security matures during calendar year 2016. | |||||||||||||||||||||||
(4) | These securities have maturity dates of less than one year and are recorded at amortized cost which approximates fair value. | |||||||||||||||||||||||
(5) | These time deposits have original maturities greater than 3 months and are recorded at fair value. | |||||||||||||||||||||||
(6) | Primarily relates to the equity method investment related to an equity interest in an entity formed during fiscal 2013 for the purpose of developing a new office tower in Manhattan (the “Hudson Yards joint venture”), with the Company owning less than 43% of the joint venture, and the Reed Krakoff cost method investment. As of June 28, 2014, the Company has recorded $181,163 and $3,261 in the Hudson Yards joint venture and the Reed Krakoff cost method investment, respectively. The Hudson Yards joint venture is determined to be a VIE primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. Refer to Note 12, "Commitments and Contingencies" for further information. | |||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Available-for-sale Securities | ' | |||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities are presented below: | ||||||||||||||||||||||||
June 28, 2014 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Government securities - U.S. | $ | 97,224 | $ | 113 | $ | (8 | ) | $ | 97,329 | |||||||||||||||
Corporate debt issues - U.S. | 169,259 | 1,024 | (15 | ) | 170,268 | |||||||||||||||||||
Corporate debt issues - non-U.S. | 132,756 | 704 | (11 | ) | 133,449 | |||||||||||||||||||
Asset backed securities | 1,085 | — | — | 1,085 | ||||||||||||||||||||
Total | $ | 400,324 | $ | 1,841 | $ | (34 | ) | $ | 402,131 | |||||||||||||||
June 29, 2013 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Corporate debt issues - U.S. | $ | 66,387 | $ | — | $ | (851 | ) | $ | 65,536 | |||||||||||||||
Corporate debt issues - non-U.S. | 34,393 | 2 | (427 | ) | 33,968 | |||||||||||||||||||
Auction rate security | 6,000 | — | — | 6,000 | ||||||||||||||||||||
Total | $ | 106,780 | $ | 2 | $ | (1,278 | ) | $ | 105,504 | |||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Summary of Fair Values of Assets Acquired | ' | |||
The following table summarizes the fair values of the assets acquired as part of the fiscal 2013 acquisitions: | ||||
Assets Acquired | Fair Value | |||
Current assets | $ | 21,448 | ||
Fixed assets and other non-current assets | 2,351 | |||
Goodwill(1) | 31,645 | |||
Total assets acquired | $ | 55,444 | ||
(1) Approximately $30,000 of the goodwill balance is tax deductible. |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Schedule of Operating Lease Obligations | ' | |||||||||||
Rent expense for the Company's operating leases consisted of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
June 28, | June 29, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Minimum rent | $ | 172,768 | $ | 169,737 | $ | 153,577 | ||||||
Contingent rent(1) | 144,439 | 112,568 | 94,579 | |||||||||
Total rent expense | $ | 317,207 | $ | 282,305 | $ | 248,156 | ||||||
(1) | A portion of the increase in contingent rent from fiscal 2013 is due to the inclusion of concession-based expense attributable to certain shop-in-shops in the International segment. | |||||||||||
Future Minimum Rental Payments | ' | |||||||||||
Future minimum rental payments under noncancelable operating leases are as follows: | ||||||||||||
Fiscal Year | Amount | |||||||||||
2015 | $ | 208,519 | ||||||||||
2016 | 186,808 | |||||||||||
2017 | 166,338 | |||||||||||
2018 | 135,464 | |||||||||||
2019 | 107,937 | |||||||||||
Subsequent to 2019 | 405,891 | |||||||||||
Total minimum future rental payments | $ | 1,210,957 | ||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||||||||||||||||||
The following tables provide information related to the Company’s derivatives: | |||||||||||||||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Designated Derivative Hedging Instruments (1) | June 28, 2014 | June 29, 2013 | Balance Sheet Classification | June 28, 2014 | June 29, 2013 | Balance Sheet Classification | June 28, 2014 | June 29, 2013 | |||||||||||||||||||||
C - Inventory purchases | $ | 90,274 | $ | 193,352 | Other Current Assets | $ | 439 | $ | 1,592 | Accrued Liabilities | $ | (565 | ) | $ | (2,555 | ) | |||||||||||||
CCS - Intercompany loans | 4,793 | 111,195 | Other Current Assets | 53 | 1,366 | Accrued Liabilities | — | (85 | ) | ||||||||||||||||||||
FC - Intercompany & Related Party Loans | 8,375 | 36,396 | Other Current Assets | — | 1,024 | Accrued Liabilities | (9 | ) | — | ||||||||||||||||||||
FC - Contractual Obligations(2) | 4,000 | 16,944 | Other Current Assets | — | 523 | Accrued Liabilities | (323 | ) | (255 | ) | |||||||||||||||||||
Total Hedges | $ | 107,442 | $ | 357,887 | $ | 492 | $ | 4,505 | $ | (897 | ) | $ | (2,895 | ) | |||||||||||||||
(1) | C =ero-cost Collars; CCS =ross Currency Swaps; FC =orward foreign currency exchange contracts; | ||||||||||||||||||||||||||||
(2) | Contractual obligations as of fiscal 2014 and 2013 consist of $4,000 and $10,000 respectively, due to Shinsegae International, related to the acquisition of the domestic retail business in South Korea. Fiscal 2013 also had contractual obligations of $6,944 due to Hackett Limited related to the acquired European joint venture. | ||||||||||||||||||||||||||||
Hedging Activity Affected Accumulated Other Comprehensive Loss or Income Net of Tax | ' | ||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||||||||||||||
Fiscal Year Ended(1) | Income | Fiscal Year Ended(2) | |||||||||||||||||||||||||||
Statement | |||||||||||||||||||||||||||||
Designated Cash Flow Hedges: | June 28, | June 29, | June 30, | Classification | June 28, | June 29, | June 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
C - Inventory purchases | $ | 3,085 | $ | 8,483 | $ | (2,568 | ) | Cost of Sales | $ | 6,422 | $ | 3,803 | $ | (3,099 | ) | ||||||||||||||
CCS - Intercompany loans | 186 | (478 | ) | 473 | SG&A | — | — | — | |||||||||||||||||||||
Total Hedges | $ | 3,271 | $ | 8,005 | $ | (2,095 | ) | $ | 6,422 | $ | 3,803 | $ | (3,099 | ) | |||||||||||||||
(1) | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(1,626), $(5,325) and $1,858, respectively. | ||||||||||||||||||||||||||||
(2) | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(3,432), $(2,416) and $2,181, respectively. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ' | |||||||||||||||||||||||
The following table shows the fair value measurements of the Company’s financial assets and liabilities at June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
June 28, | June 29, | June 28, | June 29, | June 28, | June 29, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents(1) | $ | 1,188 | $ | 124,420 | $ | 45,169 | $ | 337,239 | $ | — | $ | — | ||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Time deposits(2) | — | — | 75,069 | 70,012 | — | — | ||||||||||||||||||
Commercial paper(2) | — | — | — | — | — | — | ||||||||||||||||||
Government securities - U.S.(2) | 41,969 | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities - U.S.(2) | — | — | 25,387 | 2,094 | — | — | ||||||||||||||||||
Corporate debt securities - non U.S.(2) | — | — | 34,683 | — | — | — | ||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
Asset backed securities(3) | — | — | 1,085 | — | — | — | ||||||||||||||||||
Government securities - U.S.(3) | 55,360 | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities – U.S.(3) | — | — | 144,881 | 63,442 | — | — | ||||||||||||||||||
Corporate debt securities - non U.S.(3) | — | — | 98,766 | 33,968 | — | — | ||||||||||||||||||
Auction rate security(4) | — | — | — | — | — | 6,000 | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||
Zero-cost collar options(5) | — | — | 439 | 1,592 | — | — | ||||||||||||||||||
Forward contracts and cross currency swaps(5) | — | — | 53 | 2,913 | — | — | ||||||||||||||||||
Total | $ | 98,517 | $ | 124,420 | $ | 425,532 | $ | 511,260 | $ | — | $ | 6,000 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Zero-cost collar options(5) | $ | — | $ | — | $ | 565 | $ | 2,555 | $ | — | $ | — | ||||||||||||
Forward contracts and cross currency swaps(5) | — | — | 332 | 340 | — | — | ||||||||||||||||||
Total | $ | — | $ | — | $ | 897 | $ | 2,895 | $ | — | $ | — | ||||||||||||
(1) | Cash equivalents consist of money market funds and time deposits with maturities of three months or less at the date of purchase. Due to their short term maturity, management believes that their carrying value approximates fair value. | |||||||||||||||||||||||
(2) | Short-term available-for-sale investments are recorded at fair value, which approximates their carrying value, and are primarily based upon quoted vendor or broker priced securities in active markets. Short-term held to maturity investments are recorded at amortized cost, which approximates fair value (Level 2). | |||||||||||||||||||||||
(3) | Fair value is primarily determined using vendor or broker priced securities in active markets. These securities have maturity dates between calendar years 2015 and 2017. | |||||||||||||||||||||||
(4) | Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. This security was sold during the third quarter of fiscal 2014. | |||||||||||||||||||||||
(5) | The fair value of these hedges is primarily based on the forward curves of the specific indices upon which settlement is based and includes an adjustment for the counterparty’s or Company’s credit risk. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Change in Carrying Value of Goodwill | ' | |||
The change in the carrying amount of the Company’s goodwill, all of which is included within the International reportable segment, is as follows: | ||||
Total | ||||
Balance at June 30, 2012 | $ | 376,035 | ||
Acquisition of Singapore and Taiwan retail businesses | 31,645 | |||
Foreign exchange impact | (62,641 | ) | ||
Balance at June 29, 2013 | 345,039 | |||
Acquisition of Europe retail business | 14,812 | |||
Foreign exchange impact | 1,556 | |||
Balance at June 28, 2014 | $ | 361,407 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||||||||||||||
The provisions for income taxes computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual provisions were: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 30, 2012 | ||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||
Income before provision for income taxes: | ||||||||||||||||||||||||
United States | $ | 818,610 | 72.9 | % | $ | 1,116,819 | 73.4 | % | $ | 1,152,576 | 76.5 | % | ||||||||||||
Foreign | 303,645 | 27.1 | 403,707 | 26.6 | 353,087 | 23.5 | ||||||||||||||||||
Total income before provision for income taxes: | $ | 1,122,255 | 100 | % | $ | 1,520,526 | 100 | % | $ | 1,505,663 | 100 | % | ||||||||||||
Tax expense at U.S. statutory rate | $ | 392,789 | 35 | % | $ | 532,184 | 35 | % | $ | 526,979 | 35 | % | ||||||||||||
State taxes, net of federal benefit | 34,581 | 3.1 | 51,036 | 3.4 | 46,233 | 3.1 | ||||||||||||||||||
Effects of foreign operations | (93,125 | ) | (8.3 | ) | (119,218 | ) | (7.9 | ) | (120,642 | ) | (8.1 | ) | ||||||||||||
Tax benefit related to agreements with tax authorities | — | — | (3,546 | ) | (0.2 | ) | (11,553 | ) | (0.7 | ) | ||||||||||||||
Other, net | 6,674 | 0.6 | 25,650 | 1.7 | 25,736 | 1.7 | ||||||||||||||||||
Taxes at effective worldwide rates | $ | 340,919 | 30.4 | % | $ | 486,106 | 32 | % | $ | 466,753 | 31 | % | ||||||||||||
Current and deferred tax provision (benefit) was: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 30, 2012 | ||||||||||||||||||||||
Current | Deferred | Current | Deferred | Current | Deferred | |||||||||||||||||||
Federal | $ | 283,391 | $ | (6,759 | ) | $ | 411,646 | $ | (11,596 | ) | $ | 398,494 | $ | 9,676 | ||||||||||
Foreign | 19,953 | (5,745 | ) | 12,944 | 4,146 | (13,685 | ) | 16,623 | ||||||||||||||||
State | 60,362 | (10,283 | ) | 68,036 | 930 | 54,108 | 1,537 | |||||||||||||||||
Total current and deferred tax provision (benefit) | $ | 363,706 | $ | (22,787 | ) | $ | 492,626 | $ | (6,520 | ) | $ | 438,917 | $ | 27,836 | ||||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||||||||||||||
The components of deferred tax assets and liabilities were: | ||||||||||||||||||||||||
June 28, | June 29, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Share-based compensation | $ | 66,793 | $ | 66,590 | ||||||||||||||||||||
Reserves not deductible until paid | 97,917 | 49,531 | ||||||||||||||||||||||
Employee benefits | 39,465 | 62,628 | ||||||||||||||||||||||
Net operating loss | 23,197 | 25,413 | ||||||||||||||||||||||
Other | 9,716 | (1,037 | ) | |||||||||||||||||||||
Prepaid expenses | $ | 506 | $ | 2,234 | ||||||||||||||||||||
Property and equipment | 18,505 | (1,996 | ) | |||||||||||||||||||||
Gross deferred tax assets | $ | 256,099 | $ | 203,363 | ||||||||||||||||||||
Goodwill | 91,411 | 73,726 | ||||||||||||||||||||||
Other | 217 | 323 | ||||||||||||||||||||||
Gross deferred tax liabilities | 91,628 | 74,049 | ||||||||||||||||||||||
Net deferred tax assets | $ | 164,471 | $ | 129,314 | ||||||||||||||||||||
Consolidated Balance Sheets Classification | ||||||||||||||||||||||||
Deferred income taxes – current asset | $ | 112,630 | $ | 111,118 | ||||||||||||||||||||
Deferred income taxes – noncurrent asset | 111,556 | 84,845 | ||||||||||||||||||||||
Deferred income taxes – current liability | — | (14,424 | ) | |||||||||||||||||||||
Deferred income taxes – noncurrent liability (included within "Other Liabilities") | (59,715 | ) | (52,225 | ) | ||||||||||||||||||||
Net deferred tax asset | $ | 164,471 | $ | 129,314 | ||||||||||||||||||||
Unrecognized Tax Benefits Reconciliation | ' | |||||||||||||||||||||||
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||||||
June 28, | June 29, | June 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of fiscal year | $ | 148,810 | $ | 155,599 | $ | 162,060 | ||||||||||||||||||
Gross increase due to tax positions related to prior periods | 14,673 | 5,335 | 1,271 | |||||||||||||||||||||
Gross decrease due to tax positions related to prior periods | (3,317 | ) | (6,404 | ) | (7,264 | ) | ||||||||||||||||||
Gross increase due to tax positions related to current period | 28,684 | 33,637 | 28,151 | |||||||||||||||||||||
Gross decrease due to tax positions related to current period | — | — | — | |||||||||||||||||||||
Decrease due to lapse of statutes of limitations | (17,309 | ) | (29,075 | ) | (15,187 | ) | ||||||||||||||||||
Decrease due to settlements with taxing authorities | (848 | ) | (10,282 | ) | (13,432 | ) | ||||||||||||||||||
Balance at end of fiscal year | $ | 170,693 | $ | 148,810 | $ | 155,599 | ||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Summary of Segment Information | ' | ||||||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Net sales | $ | 3,100,482 | $ | 1,644,163 | $ | 61,581 | $ | — | $ | 4,806,226 | |||||||||||
Gross profit | 1,992,693 | 1,295,253 | 36,893 | (27,876 | ) | 3,296,963 | |||||||||||||||
Operating income (loss) | 1,164,088 | 555,714 | 34,147 | (633,875 | ) | 1,120,074 | |||||||||||||||
Income (loss) before provision for income taxes | 1,164,088 | 555,714 | 34,147 | (631,694 | ) | 1,122,255 | |||||||||||||||
Depreciation and amortization expense | 72,883 | 58,837 | — | 57,640 | 189,360 | ||||||||||||||||
Total assets | 432,566 | 1,128,509 | 5,663 | 2,096,393 | 3,663,131 | ||||||||||||||||
Additions to long-lived assets | 102,225 | 71,514 | — | 45,848 | 219,587 | ||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net sales | $ | 3,478,198 | $ | 1,558,104 | $ | 39,088 | $ | — | $ | 5,075,390 | |||||||||||
Gross profit | 2,345,826 | 1,255,220 | 32,390 | 64,712 | 3,698,148 | ||||||||||||||||
Operating income (loss) | 1,459,974 | 582,202 | 30,065 | (547,700 | ) | 1,524,541 | |||||||||||||||
Income (loss) before provision for income taxes | 1,459,974 | 582,202 | 30,065 | (551,715 | ) | 1,520,526 | |||||||||||||||
Depreciation and amortization expense | 72,279 | 45,693 | — | 45,015 | 162,987 | ||||||||||||||||
Total assets | 459,835 | 894,785 | 34,788 | 2,142,489 | 3,531,897 | ||||||||||||||||
Additions to long-lived assets | 98,645 | 60,932 | — | 81,776 | 241,353 | ||||||||||||||||
North | International(1) | Other(1)(2) | Corporate Unallocated | Total | |||||||||||||||||
America | |||||||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net sales | $ | 3,316,895 | $ | 1,413,021 | $ | 33,264 | $ | — | $ | 4,763,180 | |||||||||||
Gross profit | 2,263,140 | 1,139,103 | 28,572 | 35,263 | 3,466,078 | ||||||||||||||||
Operating income (loss) | 1,447,964 | 557,715 | 26,526 | (520,216 | ) | 1,511,989 | |||||||||||||||
Income (loss) before provision for income taxes | 1,447,964 | 557,715 | 26,526 | (526,542 | ) | 1,505,663 | |||||||||||||||
Depreciation and amortization expense | 63,800 | 38,361 | — | 30,748 | 132,909 | ||||||||||||||||
Total assets | 441,826 | 985,098 | 32,379 | 1,645,018 | 3,104,321 | ||||||||||||||||
Additions to long-lived assets | 75,093 | 53,418 | — | 69,776 | 198,287 | ||||||||||||||||
(1) | As a result of the acquisition of the European joint venture (as discussed in Note 7), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For fiscal 2013, amounts reclassified are net sales of $17,411, gross profit of $8,368, operating income of $8,013 and income before provision for income taxes of $8,013. For fiscal 2012, amounts reclassified are net sales of $11,232, gross profit of $5,276, operating income of $3,880, and income before provision for income taxes of $3,880. | ||||||||||||||||||||
(2) Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||||||||||||
Summary of Net Sales by Product Category | ' | ||||||||||||||||||||
The following table shows net sales for each product category represented: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
June 28, | % of Total | June 29, | % of Total | June 30, | % of Total | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Women's Handbags | $ | 2,642,402 | 55 | % | $ | 2,923,124 | 58 | % | $ | 2,886,270 | 61 | % | |||||||||
Women's Accessories | 1,046,265 | 22 | 1,195,622 | 23 | 1,169,858 | 24 | |||||||||||||||
Men's | 691,764 | 14 | 599,531 | 12 | 423,524 | 9 | |||||||||||||||
All Other Products | 425,795 | 9 | 357,113 | 7 | 283,528 | 6 | |||||||||||||||
Total Sales | $ | 4,806,226 | 100 | % | $ | 5,075,390 | 100 | % | $ | 4,763,180 | 100 | % | |||||||||
Summary of Common Costs Not Allocated | ' | ||||||||||||||||||||
The following is a summary of the all costs not allocated in the determination of segment operating income performance: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
June 28, | June 29, | June 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Inventory-related costs(1) | $ | (27,875 | ) | $ | 64,712 | $ | 35,262 | ||||||||||||||
Advertising, marketing and design | (238,064 | ) | (236,713 | ) | (217,167 | ) | |||||||||||||||
Administration and information systems(2) | (283,918 | ) | (292,985 | ) | (272,556 | ) | |||||||||||||||
Distribution and customer service | (84,018 | ) | (82,714 | ) | (65,755 | ) | |||||||||||||||
Total corporate unallocated | $ | (633,875 | ) | $ | (547,700 | ) | $ | (520,216 | ) | ||||||||||||
(1) Inventory-related costs consist of production variances and transformation-related costs. In fiscal 2014, 2013 and 2012 production variances were $54,317, $69,512 and $35,262, respectively. In fiscal 2014 and fiscal 2013, transformation and other-related costs were ($82,192) and ($4,800), respectively. There were no transformation and/or other-related charges in fiscal 2012. | |||||||||||||||||||||
(2) | Includes ($49,315) in fiscal 2014 and ($48,402) in fiscal 2013 related to transformation and other-related charges and ($39,209) related to charitable contributions in fiscal 2012. | ||||||||||||||||||||
Schedule of Segment Geographic Area Information | ' | ||||||||||||||||||||
Geographic long-lived asset information is based on the physical location of the assets at the end of each fiscal year and includes property and equipment, net and other assets. | |||||||||||||||||||||
United States | Japan | Other | Total | ||||||||||||||||||
International(1) | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Net sales | $ | 2,968,599 | $ | 654,653 | $ | 1,182,974 | $ | 4,806,226 | |||||||||||||
Long-lived assets | 594,731 | 70,436 | 175,478 | 840,645 | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net sales | $ | 3,334,479 | $ | 760,941 | $ | 979,970 | $ | 5,075,390 | |||||||||||||
Long-lived assets | 638,758 | 73,041 | 112,139 | 823,938 | |||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net sales | $ | 3,243,710 | $ | 844,863 | $ | 674,607 | $ | 4,763,180 | |||||||||||||
Long-lived assets | 631,979 | 74,324 | 108,334 | 814,637 | |||||||||||||||||
(1) | Other International sales reflect shipments to third-party distributors, primarily in East Asia, and sales from Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, mainland China, Singapore, Taiwan, Malaysia, South Korea, Europe and Canada. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||
The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted earnings per share: | ||||||||||||
Fiscal Year Ended | ||||||||||||
June 28, | June 29, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 781,336 | $ | 1,034,420 | $ | 1,038,910 | ||||||
Total weighted-average basic shares | 277,790 | 282,494 | 288,284 | |||||||||
Dilutive securities: | ||||||||||||
Share-based award plans | 987 | 1,450 | 1,694 | |||||||||
Stock option programs | 1,602 | 2,363 | 4,151 | |||||||||
Total weighted-average diluted shares | 280,379 | 286,307 | 294,129 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 2.81 | $ | 3.66 | $ | 3.6 | ||||||
Diluted | $ | 2.79 | $ | 3.61 | $ | 3.53 | ||||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||
Components of Certain Balance Sheet Accounts | ' | |||||||
The components of certain balance sheet accounts are as follows: | ||||||||
June 28, | June 29, | |||||||
2014 | 2013 | |||||||
Property and equipment | ||||||||
Land and building | $ | 168,550 | $ | 168,550 | ||||
Machinery and equipment | 34,746 | 33,172 | ||||||
Furniture and fixtures | 544,580 | 564,574 | ||||||
Leasehold improvements | 648,592 | 632,550 | ||||||
Construction in progress | 85,150 | 67,665 | ||||||
Less: accumulated depreciation | (767,718 | ) | (771,740 | ) | ||||
Total property and equipment, net | $ | 713,900 | $ | 694,771 | ||||
Accrued liabilities | ||||||||
Payroll and employee benefits | $ | 137,752 | $ | 193,112 | ||||
Accrued rent | 50,946 | 39,984 | ||||||
Dividends payable | 92,582 | 94,998 | ||||||
Operating expenses | 237,483 | 215,059 | ||||||
Total accrued liabilities | $ | 518,763 | $ | 543,153 | ||||
Other liabilities | ||||||||
Deferred lease obligation | $ | 135,154 | $ | 117,502 | ||||
Gross unrecognized tax benefit | 170,693 | 148,810 | ||||||
Deferred tax liabilities | 59,715 | 52,225 | ||||||
Other | 63,798 | 81,207 | ||||||
Total other liabilities | $ | 429,360 | $ | 399,744 | ||||
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule of Valuation and Qualifying Accounts | ' | |||||||||||||||
Balance at Beginning | Provision Charged to Costs and Expenses | Write-offs/ | Balance at | |||||||||||||
of Year | Allowances Taken | End of Year | ||||||||||||||
Fiscal 2014 | ||||||||||||||||
Allowance for bad debts | $ | 1,138 | $ | 1,649 | $ | (1,368 | ) | $ | 1,419 | |||||||
Allowance for returns | 7,023 | 744 | (4,902 | ) | 2,865 | |||||||||||
Allowance for markdowns | 8,324 | 37,997 | (34,714 | ) | 11,607 | |||||||||||
Valuation allowance | 79,599 | 52,189 | — | 131,788 | ||||||||||||
Total | $ | 96,084 | $ | 92,579 | $ | (40,984 | ) | $ | 147,679 | |||||||
Fiscal 2013 | ||||||||||||||||
Allowance for bad debts | $ | 3,318 | $ | (529 | ) | $ | (1,651 | ) | $ | 1,138 | ||||||
Allowance for returns | 2,810 | 8,644 | (4,431 | ) | 7,023 | |||||||||||
Allowance for markdowns | 3,685 | 22,484 | (17,845 | ) | 8,324 | |||||||||||
Valuation allowance | 53,503 | 29,252 | (3,156 | ) | 79,599 | |||||||||||
Total | $ | 63,316 | $ | 59,851 | $ | (27,083 | ) | 96,084 | ||||||||
Fiscal 2012 | ||||||||||||||||
Allowance for bad debts | $ | 3,431 | $ | (117 | ) | $ | 4 | $ | 3,318 | |||||||
Allowance for returns | 2,196 | 1,752 | (1,138 | ) | 2,810 | |||||||||||
Allowance for markdowns | 3,917 | 10,267 | (10,499 | ) | 3,685 | |||||||||||
Valuation allowance | 21,800 | 31,703 | — | 53,503 | ||||||||||||
Total | $ | 31,344 | $ | 43,605 | $ | (11,633 | ) | $ | 63,316 | |||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Fiscal 2014(1) | ||||||||||||||||
Net sales | $ | 1,150,760 | $ | 1,419,624 | $ | 1,099,626 | $ | 1,136,216 | ||||||||
Gross profit | 826,573 | 982,679 | 781,339 | 706,372 | ||||||||||||
Net income | 217,883 | 297,438 | 190,740 | 75,275 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.77 | 1.07 | 0.69 | 0.27 | ||||||||||||
Diluted | 0.77 | 1.06 | 0.68 | 0.27 | ||||||||||||
Fiscal 2013(1) | ||||||||||||||||
Net sales | $ | 1,161,350 | $ | 1,503,774 | $ | 1,187,578 | $ | 1,222,688 | ||||||||
Gross profit | 845,168 | 1,085,382 | 880,188 | 887,410 | ||||||||||||
Net income | 221,381 | 352,764 | 238,932 | 221,343 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.78 | 1.25 | 0.85 | 0.79 | ||||||||||||
Diluted | 0.77 | 1.23 | 0.84 | 0.78 | ||||||||||||
Fiscal 2012(1) | ||||||||||||||||
Net sales | $ | 1,050,359 | $ | 1,448,649 | $ | 1,108,981 | $ | 1,155,191 | ||||||||
Gross profit | 764,653 | 1,045,211 | 818,067 | 838,147 | ||||||||||||
Net income | 214,983 | 347,495 | 225,002 | 251,430 | ||||||||||||
Net income per common share: | ||||||||||||||||
Basic | 0.74 | 1.2 | 0.78 | 0.88 | ||||||||||||
Diluted | 0.73 | 1.18 | 0.77 | 0.86 | ||||||||||||
(1) | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. |
Nature_of_Operations_Nature_of
Nature of Operations Nature of Operations (Details) | 12 Months Ended |
Jun. 28, 2014 | |
country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of countries with sales to wholesale customers and distributors (countries) | 35 |
Significant_Accounting_Policie2
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Impairment losses | $35,544 | $16,624 | $0 |
Deferred rent obligations | 135,154 | 117,502 | ' |
Noncurrent asset retirement obligation | 18,351 | 16,497 | ' |
Goodwill impairment | 0 | 0 | 0 |
Common stock repurchase price allocated to retained earnings | 6,725 | 6,200 | ' |
Breakage revenue, unredeemed gift card recognition period | '2 years | ' | ' |
Shipping and handling costs | 61,893 | 66,828 | 52,240 |
Advertising expenses | $130,122 | $102,701 | $89,159 |
Building | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '40 years | ' | ' |
Machinery and Equipment | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '5 years | ' | ' |
Machinery and Equipment | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Furniture and Fixtures | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Furniture and Fixtures | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '5 years | ' | ' |
Computer Software | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Computer Software | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Transformation_Restructuring_a2
Transformation, Restructuring and Other Related Actions (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 30, 2013 | Jun. 28, 2014 | Sep. 28, 2013 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 29, 2013 | Jun. 29, 2013 |
Reed Krakoff | Reed Krakoff | Reed Krakoff | 2014 Transformation Plan | 2014 Transformation Plan | 2014 Transformation Plan | 2014 Transformation Plan | 2014 Transformation Plan | 2013 Charges | 2013 Charges | 2013 Charges | |
Selling, General and Administrative Expenses | Cost of Sales | Selling, General and Administrative Expenses | Minimum | Maximum | Cost of Sales | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | $131,507 | $82,192 | $49,315 | ' | ' | $53,202 | $4,800 | $48,402 |
Restructuring and transformation related charges, after tax | ' | ' | ' | 88,281 | ' | ' | ' | ' | 32,568 | ' | ' |
Restructuring and transformation related charges per diluted share (USD per share) | ' | ' | ' | $0.31 | ' | ' | ' | ' | $0.11 | ' | ' |
Restructuring and related costs, expected costs to be incurred | ' | ' | ' | ' | ' | ' | 120,000 | 170,000 | ' | ' | ' |
Joint venture agreement, ownership percentage | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost method investment | ' | 3,261 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on disposition of business | ' | ' | $2,683 | ' | ' | ' | ' | ' | ' | ' | ' |
Transformation_Restructuring_a3
Transformation, Restructuring and Other Related Actions (Restructuring and Transformation Related Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | |
2014 Transformation Plan | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | $131,507 | ' | |
Cash payments | 0 | ' | |
Non-cash charges | -109,055 | ' | |
Restructuring liability | 22,452 | ' | |
2013 Charges | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | ' | 53,202 | |
Restructuring liability | 27,962 | ' | |
(Income) expense | 171 | ' | |
Cash payments | -25,409 | 0 | |
Non-cash charges | -2,167 | -25,240 | |
Restructuring liability | 557 | 27,962 | |
Inventory Related Charges | 2014 Transformation Plan | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | 82,192 | ' | |
Cash payments | 0 | ' | |
Non-cash charges | -66,774 | ' | |
Restructuring liability | 15,418 | ' | |
Employee Severance | 2013 Charges | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | ' | 29,859 | |
Restructuring liability | 27,879 | ' | |
(Income) expense | -1,732 | ' | |
Cash payments | -25,245 | 0 | |
Non-cash charges | -345 | -1,980 | |
Restructuring liability | 557 | 27,879 | |
Impairment | 2014 Transformation Plan | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | 35,544 | ' | |
Cash payments | 0 | ' | |
Non-cash charges | -35,544 | ' | |
Restructuring liability | 0 | ' | |
Impairment | 2013 Charges | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | ' | 16,624 | |
Restructuring liability | 0 | ' | |
(Income) expense | 0 | ' | |
Cash payments | 0 | 0 | |
Non-cash charges | 0 | -16,624 | |
Restructuring liability | 0 | 0 | |
Store Related Costs | 2014 Transformation Plan | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | 12,191 | [1] | ' |
Cash payments | 0 | [1] | ' |
Non-cash charges | -6,737 | [1] | ' |
Restructuring liability | 5,454 | [1] | ' |
Other | 2014 Transformation Plan | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | 1,580 | ' | |
Cash payments | 0 | ' | |
Non-cash charges | 0 | ' | |
Restructuring liability | 1,580 | ' | |
Other | 2013 Charges | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring charges | ' | 6,719 | |
Restructuring liability | 83 | ' | |
(Income) expense | 1,903 | ' | |
Cash payments | -164 | 0 | |
Non-cash charges | -1,822 | -6,636 | |
Restructuring liability | $0 | $83 | |
[1] | Includes store closure costs, related severance and accelerated depreciation charges as a result of store updates. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Beginning balance | ($12,246) | $50,475 | ' | ||
Other comprehensive income (loss) before reclassifications | 8,904 | -58,918 | ' | ||
Less: gains reclassified from accumulated other comprehensive income | 5,417 | 3,803 | ' | ||
Other comprehensive income (loss), net of tax | 3,487 | -62,721 | -4,436 | ||
Ending balance | -8,759 | -12,246 | 50,475 | ||
Gains (Losses) on Cash Flow Hedges | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Beginning balance | 3,741 | [1] | -461 | [1] | ' |
Other comprehensive income (loss) before reclassifications | 3,271 | [1] | 8,005 | [1] | ' |
Less: gains reclassified from accumulated other comprehensive income | 6,422 | [1] | 3,803 | [1] | ' |
Other comprehensive income (loss), net of tax | -3,151 | [1] | 4,202 | [1] | ' |
Ending balance | 590 | [1] | 3,741 | [1] | ' |
Unrealized (Losses) Gain on Available-for-Sale Securities | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Beginning balance | -1,276 | 0 | ' | ||
Other comprehensive income (loss) before reclassifications | 3,150 | -1,276 | ' | ||
Less: gains reclassified from accumulated other comprehensive income | 67 | 0 | ' | ||
Other comprehensive income (loss), net of tax | 3,083 | -1,276 | ' | ||
Ending balance | 1,807 | -1,276 | ' | ||
Cumulative Translation Adjustment | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Beginning balance | -11,630 | 55,360 | ' | ||
Other comprehensive income (loss) before reclassifications | 2,378 | -66,990 | ' | ||
Less: gains reclassified from accumulated other comprehensive income | 0 | 0 | ' | ||
Other comprehensive income (loss), net of tax | 2,378 | -66,990 | ' | ||
Ending balance | -9,252 | -11,630 | ' | ||
Other | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Beginning balance | -3,081 | [2] | -4,424 | [2] | ' |
Other comprehensive income (loss) before reclassifications | 105 | [2] | 1,343 | [2] | ' |
Less: gains reclassified from accumulated other comprehensive income | -1,072 | [2] | 0 | [2] | ' |
Other comprehensive income (loss), net of tax | 1,177 | [2] | 1,343 | [2] | ' |
Ending balance | ($1,904) | [2] | ($3,081) | [2] | ' |
[1] | The ending balances of accumulated other comprehensive income related to cash flow hedges are net of tax of $(532) and $(2,338) as of June 28, 2014 and June 29, 2013, respectively. The amounts reclassified from accumulated other comprehensive income are net of tax of $(3,432) and $(2,416) as of June 28, 2014 and June 29, 2013, respectively. | ||||
[2] | The components of Other include the accumulated loss on the Company's investment in an auction rate security and the minimum pension liability adjustment of $0 and $(1,904) as of June 28, 2014 and $(1,072) and $(2,009) as of June 29, 2013, respectively. As of June 28, 2014 and June 29, 2013 the balances of accumulated other comprehensive income are net of tax of $1,531 and $2,118, respectively. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Parenthetical (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Accumulated other comprehensive income related to cash flow hedges, accumulated tax | ($532) | ($2,338) |
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion), tax | -3,432 | -2,416 |
Impairment losses on investments in other comprehensive income | 0 | -1,072 |
Pension liability gain (loss) arising during period, net of tax | -1,904 | -2,009 |
Impairment losses on investments and pension liability gain (loss) in other comprehensive income, tax | $1,531 | $2,118 |
ShareBased_Compensation_Total_
Share-Based Compensation (Total Compensation Cost and Related Tax Benefits (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Sep. 28, 2013 | ||
Reed Krakoff | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Compensation expense | $104,940 | [1] | $120,460 | $107,511 | $9,834 | [1] |
Related income tax benefit | $33,095 | [1] | $39,436 | $37,315 | $3,997 | [1] |
[1] | Approximately $9,834 of share based compensation expense and $3,997 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Note 3 for information as it relates to the sale of the Reed Krakoff business. |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary of Option Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 |
Number of Options Outstanding | ' |
Outstanding at June 29, 2013 (in shares) | 12,893 |
Granted (in shares) | 2,440 |
Exercised (in shares) | -1,380 |
Forfeited or expired (in shares) | -2,274 |
Outstanding at June 28, 2014 (in shares) | 11,679 |
Vested or expected to vest at June 28, 2014 (in shares) | 11,419 |
Exercisable at June 28, 2014 (in shares) | 7,550 |
Weighted-Average Exercise Price | ' |
Weighted-average exercise price, shares outstanding at June 29, 2013 (USD per share) | $43.37 |
Weighted-average exercise price, shares granted (USD per share) | $52.52 |
Weighted-average exercise price, shares exercised (USD per share) | $32.27 |
Weighted-average exercise price, shares forfeited or expired (USD per share) | $55.60 |
Weighted-average exercise price, shares outstanding at June 28, 2014 (USD per share) | $44.21 |
Weighted-average exercise price, shares vested or expected to vest at June 28, 2014 (USD per share) | $43.96 |
Weighted-average Exercisable at June29, 2013 | $38.92 |
Options outstanding at June 28, 2014, weighted average remaining contractual term | '5 years 8 months 2 days |
Vested or expected to vest at June 28, 2014, weighted average remaining contractual term | '5 years 6 months 17 days |
Exercisable at June 28, 2014, weighted average remaining contractual term | '4 years 0 months 27 days |
Options outstanding at June 28, 2014, aggregate intrinsic value | $19,920 |
Vested or expected to vest at June 28, 2014, aggregate intrinsic value | 19,920 |
Exercisable at June 28, 2014, aggregate intrinsic value | $19,920 |
Share_Based_Compensation_Sched
Share Based Compensation (Schedule of Stock Options Grant Weighted Average Assumptions) (Details) (Stock Options) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (years) | '3 years 1 month 6 days | '3 years 1 month 6 days | '3 years 1 month 6 days |
Expected volatility | 32.50% | 39.50% | 39.40% |
Risk-free interest rate | 0.80% | 0.40% | 0.60% |
Dividend yield | 2.60% | 2.20% | 1.50% |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary of Non-vested Service-Based Restricted Stock Unit Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 |
Service Based Restricted Stock Units | ' |
Number of Non-vested Share Units | ' |
Non-vested at June 29, 2013 (shares) | 3,269 |
Granted (shares) | 2,018 |
Vested (shares) | -1,503 |
Forfeited (shares) | -563 |
Non- vested at June 28, 2014 (shares) | 3,221 |
Weighted-Average Grant-Date Fair Value | ' |
Weighted-average grant-date fair value, non-vested at June 29, 2013 (USD per share) | $54.06 |
Weighted-average grant-date fair value, non-vested shares granted (USD per share) | $52.93 |
Weighted-average grant-date fair value, vested (USD per share) | $50.89 |
Weighted-average grant-date fair value, forfeited (USD per share) | $54.88 |
Weighted-average grant-date fair value, non-vested at June 28, 2014 (USD per share) | $54.68 |
Performance Shares | ' |
Number of Non-vested Share Units | ' |
Non-vested at June 29, 2013 (shares) | 1,093 |
Granted (shares) | 315 |
Change due to performance condition achievement (shares) | 62 |
Vested (shares) | -453 |
Forfeited (shares) | -118 |
Non- vested at June 28, 2014 (shares) | 899 |
Weighted-Average Grant-Date Fair Value | ' |
Weighted-average grant-date fair value, non-vested at June 29, 2013 (USD per share) | $46.84 |
Weighted-average grant-date fair value, non-vested shares granted (USD per share) | $32.53 |
Weighted-average grant-date fair value, change due to performance condition achievement (USD per share) | $36.48 |
Weighted-average grant-date fair value, vested (USD per share) | $40.96 |
Weighted-average grant-date fair value, forfeited (USD per share) | $42.81 |
Weighted-average grant-date fair value, non-vested at June 28, 2014 (USD per share) | $44.60 |
ShareBased_Compensation_Fair_V
Share-Based Compensation (Fair Value of Employees Purchase Rights Weighted Average Assumptions) (Details) (Employee Stock Purchase Plan) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Employee Stock Purchase Plan | ' | ' | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected term (years) | '6 months | '6 months | '6 months |
Expected volatility | 29.50% | 34.10% | 45.60% |
Risk-free interest rate | 0.10% | 0.10% | 0.10% |
Dividend yield | 2.20% | 1.70% | 1.40% |
ShareBased_Compensation_Narrat
Share-Based Compensation - (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Stock Options | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Exercise price of stock option as percentage of market price of stock to date of grant | 100.00% | ' | ' |
Expected term (years) | '3 years 1 month 6 days | '3 years 1 month 6 days | '3 years 1 month 6 days |
Stock option vesting period | '3 years | ' | ' |
Weighted-average grant-date fair value of options granted | $9.79 | $13.02 | $15.59 |
Total intrinsic value of options exercised | $28,028,000 | $76,956,000 | $197,793,000 |
Total cash received from option exercises | 44,541,000 | 74,277,000 | 178,292,000 |
Actual tax benefit realized for the tax deductions from these option exercises | 10,419,000 | 29,230,000 | 73,982,000 |
Total unrecognized compensation cost related to non-vested awards | 26,059,000 | ' | ' |
Total unrecognized compensation cost related to non-vested awards, recognized over a weighted-average period | '1 year | ' | ' |
Expected volatility | 32.50% | 39.50% | 39.40% |
Risk-free interest rate | 0.80% | 0.40% | 0.60% |
Dividend yield | 2.60% | 2.20% | 1.50% |
Stock Options | Minimum | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Stock option vesting period | '1 year | ' | ' |
Stock Options | Maximum | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Expected term (years) | '10 years | ' | ' |
Stock option vesting period | '5 years | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Actual tax benefit realized for the tax deductions from these option exercises | 33,523,000 | 26,097,000 | 30,740,000 |
Performance Shares | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Expected term (years) | '1 year 4 months 24 days | ' | ' |
Weighted-average grant-date fair value of options granted | $32.53 | $50.55 | $62.07 |
Total unrecognized compensation cost related to non-vested awards | 14,535,000 | ' | ' |
Total fair value of shares vested | 23,754,000 | 0 | 0 |
Weighted-average grant-date fair value of shares granted | $32.53 | ' | ' |
Total Stockholder Return Performance Restricted Stock Units | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Shares issued (shares) | 241,000 | ' | ' |
Grant date fair value of award | 6,814,000 | ' | ' |
Expected volatility | 32.61% | ' | ' |
Risk-free interest rate | 0.63% | ' | ' |
Dividend yield | 0.00% | ' | ' |
Total Stockholder Return Performance Restricted Stock Units | Maximum | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Shares issued (shares) | 321,000 | ' | ' |
Fair value of shares issued | 9,085,000 | ' | ' |
Service Based Restricted Stock Units | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Weighted-average grant-date fair value of options granted | $52.93 | $54.49 | $62.84 |
Total unrecognized compensation cost related to non-vested awards | 92,437,000 | ' | ' |
Total unrecognized compensation cost related to non-vested awards, recognized over a weighted-average period | '1 year | ' | ' |
Total fair value of shares vested | $78,692,000 | $93,319,000 | $99,488,000 |
Weighted-average grant-date fair value of shares granted | $52.93 | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Expected term (years) | '6 months | '6 months | '6 months |
Expected volatility | 29.50% | 34.10% | 45.60% |
Risk-free interest rate | 0.10% | 0.10% | 0.10% |
Dividend yield | 2.20% | 1.70% | 1.40% |
Employee stock purchase plan, percentage of market value | 85.00% | ' | ' |
New common shares sold to employees under the Employee Stock Purchase Plan (in shares) | 119,000 | 122,000 | 129,000 |
Weighted-average grant-date fair value of shares granted | $13.30 | $15.08 | $17.31 |
Investments_Summary_of_Investm
Investments (Summary of Investments) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | $276,703 | $72,106 | ||
Long-Term | 484,518 | 197,340 | ||
Total | 761,221 | 269,446 | ||
Available-for-sale Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 102,039 | 2,094 | ||
Long-Term | 300,092 | 103,410 | ||
Total | 402,131 | 105,504 | ||
Available-for-sale Securities | Government securities - U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 41,969 | [1] | 0 | [1] |
Long-Term | 55,360 | [1] | 0 | [1] |
Total | 97,329 | [1] | 0 | [1] |
Available-for-sale Securities | Corporate debt securities - U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 25,387 | [1] | 2,094 | [1] |
Long-Term | 144,881 | [1] | 63,442 | [1] |
Total | 170,268 | [1] | 65,536 | [1] |
Available-for-sale Securities | Corporate debt securities - non-U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 34,683 | [1] | 0 | [1] |
Long-Term | 98,766 | [1] | 33,968 | [1] |
Total | 133,449 | [1] | 33,968 | [1] |
Available-for-sale Securities | Auction rate security | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 0 | [2] | 0 | [2] |
Long-Term | 0 | [2] | 6,000 | [2] |
Total | 0 | [2] | 6,000 | [2] |
Available-for-sale Securities | Asset backed securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 0 | [3] | 0 | [3] |
Long-Term | 1,085 | [3] | 0 | [3] |
Total | 1,085 | [3] | 0 | [3] |
Held-to-maturity Securities | Government securities - U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 18,173 | [4] | 0 | [4] |
Long-Term | 0 | [4] | 0 | [4] |
Total | 18,173 | [4] | 0 | [4] |
Held-to-maturity Securities | Corporate debt securities - U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 33,511 | [4] | 0 | [4] |
Long-Term | 0 | [4] | 0 | [4] |
Total | 33,511 | [4] | 0 | [4] |
Held-to-maturity Securities | Corporate debt securities - non-U.S. | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 24,370 | [4] | 0 | [4] |
Long-Term | 0 | [4] | 0 | [4] |
Total | 24,370 | [4] | 0 | [4] |
Held-to-maturity Securities | Commercial Paper | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 23,541 | [4] | 0 | [4] |
Long-Term | 0 | [4] | 0 | [4] |
Total | 23,541 | [4] | 0 | [4] |
Other Investments | Time deposits | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 75,069 | [5] | 70,012 | [5] |
Long-Term | 0 | [5] | 0 | [5] |
Total | 75,069 | [5] | 70,012 | [5] |
Other Investments | Other | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Short-term | 0 | [6] | 0 | [6] |
Long-Term | 184,426 | [6] | 93,930 | [6] |
Total | $184,426 | [6] | $93,930 | [6] |
[1] | These securities have maturity dates between calendar years 2014 and 2017 and are recorded at fair value. | |||
[2] | The investment was sold in the third quarter of fiscal 2014. Refer to Note 10, "Fair Value Measurements," for further information. | |||
[3] | The security matures during calendar year 2016. | |||
[4] | These securities have maturity dates of less than one year and are recorded at amortized cost which approximates fair value. | |||
[5] | time deposits have original maturities greater than 3 months and are recorded at fair value. | |||
[6] | Primarily relates to the equity method investment related to an equity interest in an entity formed during fiscal 2013 for the purpose of developing a new office tower in Manhattan (the “Hudson Yards joint ventureâ€), with the Company owning less than 43% of the joint venture, and the Reed Krakoff cost method investment. As of June 28, 2014, the Company has recorded $181,163 and $3,261 in the Hudson Yards joint venture and the Reed Krakoff cost method investment, respectively. The Hudson Yards joint venture is determined to be a VIE primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. Refer to Note 12, "Commitments and Contingencies" for further information. |
Investments_Summary_of_Investm1
Investments (Summary of Investments Footnote) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 |
Reed Krakoff | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost method investment | 3,261 |
Hudson Yards | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Equity method investments | 181,163 |
Minimum | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Time Deposit,maturity period | '3 months |
Maximum | Hudson Yards | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Equity method investment, ownership percentage | 43.00% |
Investments_AvailableforSale_S
Investments (Available-for-Sale Securities) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $400,324 | $106,780 |
Gross Unrealized Gains | 1,841 | 2 |
Gross Unrealized Losses | -34 | -1,278 |
Estimated Fair Value | 402,131 | 105,504 |
Government securities - U.S. | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 97,224 | ' |
Gross Unrealized Gains | 113 | ' |
Gross Unrealized Losses | -8 | ' |
Estimated Fair Value | 97,329 | ' |
Corporate debt securities - U.S. | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 169,259 | 66,387 |
Gross Unrealized Gains | 1,024 | 0 |
Gross Unrealized Losses | -15 | -851 |
Estimated Fair Value | 170,268 | 65,536 |
Corporate debt securities - non-U.S. | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 132,756 | 34,393 |
Gross Unrealized Gains | 704 | 2 |
Gross Unrealized Losses | -11 | -427 |
Estimated Fair Value | 133,449 | 33,968 |
Asset backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,085 | ' |
Gross Unrealized Gains | 0 | ' |
Gross Unrealized Losses | 0 | ' |
Estimated Fair Value | 1,085 | ' |
Auction rate security | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | ' | 6,000 |
Gross Unrealized Gains | ' | 0 |
Gross Unrealized Losses | ' | 0 |
Estimated Fair Value | ' | $6,000 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 29, 2013 | Jul. 02, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Aug. 05, 2012 | Jul. 31, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jul. 31, 2013 |
MALAYSIA | MALAYSIA | KOREA, REPUBLIC OF | KOREA, REPUBLIC OF | KOREA, REPUBLIC OF | European Joint Venture | European Joint Venture | European Joint Venture | European Joint Venture | ||||
store | store | store | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Percentage of domestic retail businesses acquired | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | 50.00% |
Number of stores operated (in stores) | ' | ' | ' | ' | 10 | ' | ' | 47 | ' | ' | ' | 18 |
Cash paid for acquisition of business | ' | ' | ' | ' | ' | ' | ' | ' | $15,105 | ' | ' | ' |
Forgiveness of a loan in a business combination | ' | ' | ' | ' | ' | ' | ' | ' | 18,019 | ' | ' | ' |
Cash paid for acquisition | ' | ' | ' | 8,593 | ' | ' | 36,851 | ' | ' | 7,212 | 7,893 | ' |
Cash acquired in an acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,453 | ' | ' |
Goodwill as a result of acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,812 | ' | ' |
Contingent consideration paid | 6,000 | 0 | 0 | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' |
Contingent payment estimated, current | ' | ' | ' | ' | ' | $4,000 | ' | ' | ' | ' | ' | ' |
Acquisitions_Summary_of_Prelim
Acquisitions (Summary of Preliminary Estimated Fair Values of Assets and Liabilities Acquired) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ' | ' | ' | |
Goodwill | $361,407 | $345,039 | $376,035 | |
2013 Acquisitions | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | |
Current assets | ' | 21,448 | ' | |
Fixed assets and other non-current assets | ' | 2,351 | ' | |
Goodwill | ' | 31,645 | [1] | ' |
Total assets acquired | ' | $55,444 | ' | |
[1] | Approximately $30,000 of the goodwill balance is tax deductible. |
Acquisitions_Summary_of_Prelim1
Acquisitions (Summary of Preliminary Estimated Fair Values of Assets and Liabilities Acquired Footnote) (Details) (2013 Acquisitions, USD $) | Jun. 29, 2013 |
In Thousands, unless otherwise specified | |
2013 Acquisitions | ' |
Business Acquisition [Line Items] | ' |
Goodwill balance expected to be tax deductible | $30,000 |
Leases_Rent_Expense_for_Operat
Leases (Rent Expense for Operating Leases) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |||
Leases [Abstract] | ' | ' | ' | |||
Minimum rent | $172,768 | $169,737 | $153,577 | |||
Contingent rent | 144,439 | [1] | 112,568 | [1] | 94,579 | [1] |
Total rent expense | $317,207 | $282,305 | $248,156 | |||
[1] | A portion of the increase in contingent rent from fiscal 2013 is due to the inclusion of concession-based expense attributable to certain shop-in-shops in the International segment. |
Leases_Future_Minimum_Rental_P
Leases (Future Minimum Rental Payments Under Noncancelable Operating Leases) (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2015 | $208,519 |
2016 | 186,808 |
2017 | 166,338 |
2018 | 135,464 |
2019 | 107,937 |
Subsequent to 2019 | 405,891 |
Total minimum future rental payments | $1,210,957 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Fair Value of Derivatives Designated as Hedging Instruments) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Shinsegae International | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Contractual Obligation | $4,000 | $10,000 | ||
Hackett Limited | European Joint Venture | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Contractual Obligation | ' | 6,944 | ||
Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative, notional amount | 107,442 | 357,887 | ||
Designated as Hedging Instrument | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 492 | 4,505 | ||
Designated as Hedging Instrument | Accrued Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities | -897 | -2,895 | ||
Designated as Hedging Instrument | Zero-Cost Collars | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative, notional amount | 90,274 | [1] | 193,352 | [1] |
Designated as Hedging Instrument | Zero-Cost Collars | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 439 | 1,592 | ||
Designated as Hedging Instrument | Zero-Cost Collars | Accrued Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities | -565 | -2,555 | ||
Designated as Hedging Instrument | Currency Swap | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative, notional amount | 4,793 | [1] | 111,195 | [1] |
Designated as Hedging Instrument | Currency Swap | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 53 | 1,366 | ||
Designated as Hedging Instrument | Currency Swap | Accrued Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities | 0 | -85 | ||
Designated as Hedging Instrument | Intercompany and Related Party Loans | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative, notional amount | 8,375 | [1] | 36,396 | [1] |
Designated as Hedging Instrument | Intercompany and Related Party Loans | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 0 | 1,024 | ||
Designated as Hedging Instrument | Intercompany and Related Party Loans | Accrued Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities | -9 | 0 | ||
Designated as Hedging Instrument | Contractual Obligations | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative, notional amount | 4,000 | [1],[2] | 16,944 | [1],[2] |
Designated as Hedging Instrument | Contractual Obligations | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 0 | 523 | ||
Designated as Hedging Instrument | Contractual Obligations | Accrued Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities | ($323) | ($255) | ||
[1] | C =ero-cost Collars; CCS =ross Currency Swaps; FC =orward foreign currency exchange contracts; | |||
[2] | Contractual obligations as of fiscal 2014 and 2013 consist of $4,000 and $10,000 respectively, due to Shinsegae International, related to the acquisition of the domestic retail business in South Korea. Fiscal 2013 also had contractual obligations of $6,944 due to Hackett Limited related to the acquired European joint venture. |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Amount of Gain or Loss Reclassified from Accumulated OCI into Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | $3,271 | [1] | $8,005 | [1] | ($2,095) | [1] |
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 6,422 | [2] | 3,803 | [2] | -3,099 | [2] |
Amount of gain or (loss) recognized in OCI on derivatives (effective portion), tax | -1,626 | -5,325 | 1,858 | |||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion), tax | ' | ' | 2,181 | |||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion), tax | 3,432 | 2,416 | ' | |||
Cost of Sales | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 6,422 | [2] | 3,803 | [2] | -3,099 | [2] |
SG&A | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 0 | [2] | 0 | [2] | 0 | [2] |
Zero-Cost Collars | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | 3,085 | [1] | 8,483 | [1] | -2,568 | [1] |
Currency Swap | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | $186 | [1] | ($478) | [1] | $473 | [1] |
[1] | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(1,626), $(5,325) and $1,858, respectively. | |||||
[2] | For fiscal 2014, fiscal 2013 and fiscal 2012, the amounts above are net of tax of $(3,432), $(2,416) and $2,181, respectively. |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Expected amount of net derivative gains included in accumulated other comprehensive income that will be reclassified into earnings within the next 12 months | $1,131 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements of Assets and Liabilities) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | $1,188 | [1] | $124,420 | [1] |
Total assets | 98,517 | 124,420 | ||
Total liability | 0 | 0 | ||
Level 1 | Zero-Cost Collar Options | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 0 | [2] | 0 | [2] |
Derivative liabilities | 0 | [2] | 0 | [2] |
Level 1 | Forward Contracts and Cross Currency Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 0 | [2] | 0 | [2] |
Derivative liabilities | 0 | [2] | 0 | [2] |
Level 1 | Short-term Investments | Time Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 1 | Short-term Investments | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 1 | Short-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 41,969 | [3] | 0 | [3] |
Level 1 | Short-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 1 | Short-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 1 | Long-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 55,360 | [4] | 0 | [4] |
Level 1 | Long-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 1 | Long-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 1 | Long-term Investments | Asset backed securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 1 | Long-term Investments | Auction rate security | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [5] | 0 | [5] |
Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 45,169 | [1] | 337,239 | [1] |
Total assets | 425,532 | 511,260 | ||
Total liability | 897 | 2,895 | ||
Level 2 | Zero-Cost Collar Options | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 439 | [2] | 1,592 | [2] |
Derivative liabilities | 565 | [2] | 2,555 | [2] |
Level 2 | Forward Contracts and Cross Currency Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 53 | [2] | 2,913 | [2] |
Derivative liabilities | 332 | [2] | 340 | [2] |
Level 2 | Short-term Investments | Time Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 75,069 | [3] | 70,012 | [3] |
Level 2 | Short-term Investments | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 2 | Short-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 2 | Short-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 25,387 | [3] | 2,094 | [3] |
Level 2 | Short-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 34,683 | [3] | 0 | [3] |
Level 2 | Long-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 2 | Long-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 144,881 | [4] | 63,442 | [4] |
Level 2 | Long-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 98,766 | [4] | 33,968 | [4] |
Level 2 | Long-term Investments | Asset backed securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 1,085 | [4] | 0 | [4] |
Level 2 | Long-term Investments | Auction rate security | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [5] | 0 | [5] |
Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 0 | [1] | 0 | [1] |
Total assets | 0 | 6,000 | ||
Total liability | 0 | 0 | ||
Level 3 | Zero-Cost Collar Options | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 0 | [2] | 0 | [2] |
Derivative liabilities | 0 | [2] | 0 | [2] |
Level 3 | Forward Contracts and Cross Currency Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative asset | 0 | [2] | 0 | [2] |
Derivative liabilities | 0 | [2] | 0 | [2] |
Level 3 | Short-term Investments | Time Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 3 | Short-term Investments | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 3 | Short-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 3 | Short-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 3 | Short-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [3] | 0 | [3] |
Level 3 | Long-term Investments | Government Securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 3 | Long-term Investments | Corporate debt securities - U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 3 | Long-term Investments | Corporate debt securities - non-U.S. | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 3 | Long-term Investments | Asset backed securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | 0 | [4] | 0 | [4] |
Level 3 | Long-term Investments | Auction rate security | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investments | $0 | [5] | $6,000 | [5] |
[1] | Cash equivalents consist of money market funds and time deposits with maturities of three months or less at the date of purchase. Due to their short term maturity, management believes that their carrying value approximates fair value. | |||
[2] | The fair value of these hedges is primarily based on the forward curves of the specific indices upon which settlement is based and includes an adjustment for the counterparty’s or Company’s credit risk. | |||
[3] | Short-term available-for-sale investments are recorded at fair value, which approximates their carrying value, and are primarily based upon quoted vendor or broker priced securities in active markets. Short-term held to maturity investments are recorded at amortized cost, which approximates fair value (Level 2). | |||
[4] | Fair value is primarily determined using vendor or broker priced securities in active markets. These securities have maturity dates between calendar years 2015 and 2017. | |||
[5] | Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. This security was sold during the third quarter of fiscal 2014. |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Measured on a Recurring Basis Using Signifcant Unobservable Inputs (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, beginning of year | $6,000 | $6,000 |
Losses reclassified out of other comprehensive income | 1,072 | 0 |
Loss on sale (included in Income before taxes) | -25 | 0 |
Sale of investment | -7,047 | 0 |
Balance, end of year | $0 | $6,000 |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (Leasehold Improvements, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Leasehold Improvements | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset impairment charges | $35,544 | $16,624 |
Asset fair value | $6,876 | $4,310 |
Debt_Narrative_Details
Debt (Narrative) (Details) | Jun. 28, 2014 | Mar. 26, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 18, 2012 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 |
USD ($) | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Japan | Japan | Japan | Japan | Japan | Coach Shanghai Limited | Coach Shanghai Limited | Coach Shanghai Limited | ||
USD ($) | USD ($) | USD ($) | Maximum | Federal Funds Rate | London Interbank Offered Rate (LIBOR) | USD ($) | JPY (¥) | USD ($) | Minimum | Maximum | USD ($) | CNY | USD ($) | |||
USD ($) | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | ' | $700,000,000 | ' | ' | $400,000,000 | ' | ' | ' | $52,300,000 | ¥ 5,300,000,000 | ' | ' | ' | $10,100,000 | 63,000,000 | ' |
Credit facility can be expanded to maximum amount | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | ' | ' | $140,000,000 | $0 | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | $0 | ' | $0 |
Variable rate | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee, current (basis points) | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tokyo Interbank margin, current (basis points) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 30.00% | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
investor | |||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Investments made to joint venture during period | $87,233 | $93,930 | $0 |
Joint venture agreement, expected investment amount | 350,000 | ' | ' |
Capital expenditures | 2,082 | ' | ' |
Capital expenditures expected | 188,000 | ' | ' |
Number of investors in joint venture | 2 | ' | ' |
Inventories | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Contractual cash obligations | 533,504 | ' | ' |
Capital Expenditures | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Contractual cash obligations | 15,900 | ' | ' |
Other Commitments | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Contractual cash obligations | 9,100 | ' | ' |
Letter of Credit | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Letters of credit amount outstanding | 5,558 | 14,885 | ' |
Hudson Yards | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Investments made to joint venture during period | 87,233 | ' | ' |
Equity method investments | 181,163 | ' | ' |
Hudson Yards | Maximum | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 43.00% | ' | ' |
Hudson Yards | Maximum | Two Thousand And Fifteen | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Joint venture agreement, expected investment amount | $240,000 | ' | ' |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets (Change in Carrying Value of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | $345,039 | $376,035 |
Foreign exchange impact | 1,556 | -62,641 |
Ending balance | 361,407 | 345,039 |
European Joint Venture | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Acquisition retail businesses | 14,812 | ' |
Singapore And Taiwan | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Acquisition retail businesses | ' | $31,645 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets | $9,788 | $9,788 |
Trademarks | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | $9,788 | $9,788 |
Income_Taxes_Provisions_for_In
Income Taxes (Provisions for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Income before provision for income taxes: | ' | ' | ' |
United States | $818,610 | $1,116,819 | $1,152,576 |
Foreign | 303,645 | 403,707 | 353,087 |
Income before provision for income taxes | 1,122,255 | 1,520,526 | 1,505,663 |
Tax expense at U.S. statutory rate | 392,789 | 532,184 | 526,979 |
State taxes, net of federal benefit | 34,581 | 51,036 | 46,233 |
Effects of foreign operations | -93,125 | -119,218 | -120,642 |
Tax benefit related to agreements with tax authorities | 0 | -3,546 | -11,553 |
Other, net | 6,674 | 25,650 | 25,736 |
Taxes at effective worldwide rates | $340,919 | $486,106 | $466,753 |
Income before provision for income taxes: | ' | ' | ' |
United States | 72.90% | 73.40% | 76.50% |
Foreign | 27.10% | 26.60% | 23.50% |
Total income before provision for income taxes: | 100.00% | 100.00% | 100.00% |
Tax expense at U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 3.10% | 3.40% | 3.10% |
Effects of foreign operations | -8.30% | -7.90% | -8.10% |
Tax benefit related to agreements with tax authorities | 0.00% | -0.20% | -0.70% |
Other, net | 0.60% | 1.70% | 1.70% |
Taxes at effective worldwide rates | 30.40% | 32.00% | 31.00% |
Income_Taxes_Current_and_Defer
Income Taxes (Current and Deferred Tax Provisions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Current | ' | ' | ' |
Federal | $283,391 | $411,646 | $398,494 |
Foreign | 19,953 | 12,944 | -13,685 |
State | 60,362 | 68,036 | 54,108 |
Total current tax provision (benefits) | 363,706 | 492,626 | 438,917 |
Deferred | ' | ' | ' |
Federal | -6,759 | -11,596 | 9,676 |
Foreign | -5,745 | 4,146 | 16,623 |
State | -10,283 | 930 | 1,537 |
Total deferred tax provision (benefits) | ($22,787) | ($6,520) | $27,836 |
Income_Taxes_Components_of_Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ' | ' |
Share-based compensation | $66,793 | $66,590 |
Reserves not deductible until paid | 97,917 | 49,531 |
Employee benefits | 39,465 | 62,628 |
Net operating loss | 23,197 | 25,413 |
Other | 9,716 | -1,037 |
Prepaid expenses | 506 | 2,234 |
Property and equipment | 18,505 | -1,996 |
Gross deferred tax assets | 256,099 | 203,363 |
Deferred Tax Liabilities, Gross [Abstract] | ' | ' |
Goodwill | 91,411 | 73,726 |
Other | 217 | 323 |
Gross deferred tax liabilities | 91,628 | 74,049 |
Net deferred tax asset | 164,471 | 129,314 |
Consolidated Balance Sheets Classification | ' | ' |
Deferred income taxes – current asset | 112,630 | 111,118 |
Deferred income taxes – noncurrent asset | 111,556 | 84,845 |
Deferred income taxes – current liability | 0 | -14,424 |
Deferred income taxes – noncurrent liability (included within Other Liabilities) | -59,715 | -52,225 |
Net deferred tax asset | $164,471 | $129,314 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Beginning and Ending Gross Amount of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of fiscal year | $148,810 | $155,599 | $162,060 |
Gross increase due to tax positions related to prior periods | 14,673 | 5,335 | 1,271 |
Gross decrease due to tax positions related to prior periods | -3,317 | -6,404 | -7,264 |
Gross increase due to tax positions related to current period | 28,684 | 33,637 | 28,151 |
Gross decrease due to tax positions related to current period | 0 | 0 | 0 |
Decrease due to lapse of statutes of limitations | -17,309 | -29,075 | -15,187 |
Decrease due to settlements with taxing authorities | -848 | -10,282 | -13,432 |
Balance at end of fiscal year | $170,693 | $148,810 | $155,599 |
Income_Taxes_Narrative_Details
Income Taxes - (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jul. 02, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Ending gross unrecognized tax benefit | $170,693 | $148,810 | $155,599 | $162,060 |
Gross unrecognized tax benefit balance, amount that relates to items which, if recognized, would impact the effective tax rate | 113,007 | 89,360 | ' | ' |
Gross interest and penalties payable | 17,991 | 17,301 | ' | ' |
Interest and penalty expense (benefit) | 767 | -7,037 | -10,920 | ' |
Net operating loss carryforwards in foreign tax jurisdictions | 526,681 | 340,893 | ' | ' |
Deferred tax asset related to carryforwards, valuation allowance | 131,788 | 79,599 | ' | ' |
Increase (decrease) in valuation allowance | 52,189 | 26,096 | ' | ' |
Undistributed earnings of foreign subsidiaries | $2,033,869 | $1,601,637 | ' | ' |
Defined_Contribution_Plan_Narr
Defined Contribution Plan (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Annual expense incurred by Coach for defined contribution plan | $7,541 | $16,274 | $18,641 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 12 Months Ended |
Jun. 28, 2014 | |
investor | |
country | |
Segment Reporting Information [Line Items] | ' |
Operating segments (in segments) | 5 |
Reportable segments (in segments) | 2 |
Sales to wholesale customers, number of countries in which entity operates (in countries) | 35 |
United States | Retail Stores | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 303 |
United States | Outlet Store | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 199 |
Canada | Retail Stores | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 29 |
Canada | Outlet Store | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 8 |
Japan | Concession Shop-in-Shops | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 198 |
Hong Kong, Macau, Mainland China, Singapore, Taiwan, Malaysia, and South Korea | Concession Shop-in-Shops | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 250 |
Europe | Concession Shop-in-Shops | ' |
Segment Reporting Information [Line Items] | ' |
Number of stores operated (in stores) | 27 |
Segment_Information_Summary_of
Segment Information (Summary of Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Oct. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | $1,136,216 | [1] | $1,099,626 | [1] | $1,419,624 | [1] | $1,150,760 | [1] | $1,222,688 | [1] | $1,187,578 | [1] | $1,503,774 | [1] | $1,161,350 | [1] | $1,155,191 | [1] | $1,108,981 | [1] | $1,448,649 | [1] | $1,050,359 | [1] | $4,806,226 | $5,075,390 | $4,763,180 | |||
Gross profit | 706,372 | [1] | 781,339 | [1] | 982,679 | [1] | 826,573 | [1] | 887,410 | [1] | 880,188 | [1] | 1,085,382 | [1] | 845,168 | [1] | 838,147 | [1] | 818,067 | [1] | 1,045,211 | [1] | 764,653 | [1] | 3,296,963 | 3,698,148 | 3,466,078 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,120,074 | 1,524,541 | 1,511,989 | |||||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,122,255 | 1,520,526 | 1,505,663 | |||||||||||||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 189,360 | 162,987 | 132,909 | |||||||||||||||
Total assets | 3,663,131 | ' | ' | ' | 3,531,897 | ' | ' | ' | 3,104,321 | ' | ' | ' | 3,663,131 | 3,531,897 | 3,104,321 | |||||||||||||||
Additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 219,587 | 241,353 | 198,287 | |||||||||||||||
European Joint Venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,411 | 11,232 | |||||||||||||||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,368 | 5,276 | |||||||||||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,013 | 3,880 | |||||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,013 | 3,880 | |||||||||||||||
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,482 | 3,478,198 | 3,316,895 | |||||||||||||||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,992,693 | 2,345,826 | 2,263,140 | |||||||||||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,164,088 | 1,459,974 | 1,447,964 | |||||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,164,088 | 1,459,974 | 1,447,964 | |||||||||||||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,883 | 72,279 | 63,800 | |||||||||||||||
Total assets | 432,566 | ' | ' | ' | 459,835 | ' | ' | ' | 441,826 | ' | ' | ' | 432,566 | 459,835 | 441,826 | |||||||||||||||
Additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,225 | 98,645 | 75,093 | |||||||||||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,644,163 | [2] | 1,558,104 | [2] | 1,413,021 | [2] | ||||||||||||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,295,253 | [2] | 1,255,220 | [2] | 1,139,103 | [2] | ||||||||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 555,714 | [2] | 582,202 | [2] | 557,715 | [2] | ||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 555,714 | [2] | 582,202 | [2] | 557,715 | [2] | ||||||||||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,837 | [2] | 45,693 | [2] | 38,361 | [2] | ||||||||||||
Total assets | 1,128,509 | [2] | ' | ' | ' | 894,785 | [2] | ' | ' | ' | 985,098 | [2] | ' | ' | ' | 1,128,509 | [2] | 894,785 | [2] | 985,098 | [2] | |||||||||
Additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,514 | [2] | 60,932 | [2] | 53,418 | [2] | ||||||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,581 | [2],[3] | 39,088 | [2],[3] | 33,264 | [2],[3] | ||||||||||||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,893 | [2],[3] | 32,390 | [2],[3] | 28,572 | [2],[3] | ||||||||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,147 | [2],[3] | 30,065 | [2],[3] | 26,526 | [2],[3] | ||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,147 | [2],[3] | 30,065 | [2],[3] | 26,526 | [2],[3] | ||||||||||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | ||||||||||||
Total assets | 5,663 | [2],[3] | ' | ' | ' | 34,788 | [2],[3] | ' | ' | ' | 32,379 | [2],[3] | ' | ' | ' | 5,663 | [2],[3] | 34,788 | [2],[3] | 32,379 | [2],[3] | |||||||||
Additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | ||||||||||||
Corporate Unallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||||||||||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27,876 | 64,712 | 35,263 | |||||||||||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -633,875 | -547,700 | -520,216 | |||||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -631,694 | -551,715 | -526,542 | |||||||||||||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,640 | 45,015 | 30,748 | |||||||||||||||
Total assets | 2,096,393 | ' | ' | ' | 2,142,489 | ' | ' | ' | 1,645,018 | ' | ' | ' | 2,096,393 | 2,142,489 | 1,645,018 | |||||||||||||||
Additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45,848 | $81,776 | $69,776 | |||||||||||||||
[1] | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. | |||||||||||||||||||||||||||||
[2] | As a result of the acquisition of the European joint venture (as discussed in Note 7), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For fiscal 2013, amounts reclassified are net sales of $17,411, gross profit of $8,368, operating income of $8,013 and income before provision for income taxes of $8,013. For fiscal 2012, amounts reclassified are net sales of $11,232, gross profit of $5,276, operating income of $3,880, and income before provision for income taxes of $3,880. | |||||||||||||||||||||||||||||
[3] | Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. |
Segment_Information_Segment_In
Segment Information Segment Information (Summary of Net Sales by Product Category) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Oct. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | $1,136,216 | [1] | $1,099,626 | [1] | $1,419,624 | [1] | $1,150,760 | [1] | $1,222,688 | [1] | $1,187,578 | [1] | $1,503,774 | [1] | $1,161,350 | [1] | $1,155,191 | [1] | $1,108,981 | [1] | $1,448,649 | [1] | $1,050,359 | [1] | $4,806,226 | $5,075,390 | $4,763,180 |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Sales by product as a percent of total sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | ||||||||||||
Women's Handbags | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,642,402 | 2,923,124 | 2,886,270 | ||||||||||||
Women's Handbags | Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Sales by product as a percent of total sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | 58.00% | 61.00% | ||||||||||||
Women's Accessories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,046,265 | 1,195,622 | 1,169,858 | ||||||||||||
Women's Accessories | Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Sales by product as a percent of total sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22.00% | 23.00% | 24.00% | ||||||||||||
Men's | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 691,764 | 599,531 | 423,524 | ||||||||||||
Men's | Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Sales by product as a percent of total sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 12.00% | 9.00% | ||||||||||||
All Other Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $425,795 | $357,113 | $283,528 | ||||||||||||
All Other Products | Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Sales by product as a percent of total sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 7.00% | 6.00% | ||||||||||||
[1] | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. |
Segment_Information_Summary_of1
Segment Information (Summary of Common Costs Not Allocated) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | |||
Operating income | $1,120,074 | $1,524,541 | $1,511,989 | |||
Production variances | 54,317 | 69,512 | 35,262 | |||
Transformation and other-related charges related to inventory | -82,192 | -4,800 | 0 | |||
Transformation and other-related costs related to administration and information systems | -49,315 | -48,402 | 0 | |||
Charitable contribution expense | ' | ' | -39,209 | |||
Corporate Unallocated | ' | ' | ' | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | |||
Costs Related To Inventory | -27,875 | [1] | 64,712 | [1] | 35,262 | [1] |
Advertising, marketing and design | -238,064 | -236,713 | -217,167 | |||
Administration and information systems | -283,918 | [2] | -292,985 | [2] | -272,556 | [2] |
Distribution and customer service | -84,018 | -82,714 | -65,755 | |||
Operating income | ($633,875) | ($547,700) | ($520,216) | |||
[1] | Inventory-related costs consist of production variances and transformation-related costs. In fiscal 2014, 2013 and 2012 production variances were $54,317, $69,512 and $35,262, respectively. In fiscal 2014 and fiscal 2013, transformation and other-related costs were ($82,192) and ($4,800), respectively. There were no transformation and/or other-related charges in fiscal 2012. | |||||
[2] | Includes ($49,315) in fiscal 2014 and ($48,402) in fiscal 2013 related to transformation and other-related charges and ($39,209) related to charitable contributions in fiscal 2012. |
Segment_Information_Geographic
Segment Information (Geographic Area Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Oct. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | $1,136,216 | [1] | $1,099,626 | [1] | $1,419,624 | [1] | $1,150,760 | [1] | $1,222,688 | [1] | $1,187,578 | [1] | $1,503,774 | [1] | $1,161,350 | [1] | $1,155,191 | [1] | $1,108,981 | [1] | $1,448,649 | [1] | $1,050,359 | [1] | $4,806,226 | $5,075,390 | $4,763,180 | |||
Long-lived assets | 840,645 | ' | ' | ' | 823,938 | ' | ' | ' | 814,637 | ' | ' | ' | 840,645 | 823,938 | 814,637 | |||||||||||||||
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,968,599 | 3,334,479 | 3,243,710 | |||||||||||||||
Long-lived assets | 594,731 | ' | ' | ' | 638,758 | ' | ' | ' | 631,979 | ' | ' | ' | 594,731 | 638,758 | 631,979 | |||||||||||||||
Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 654,653 | 760,941 | 844,863 | |||||||||||||||
Long-lived assets | 70,436 | ' | ' | ' | 73,041 | ' | ' | ' | 74,324 | ' | ' | ' | 70,436 | 73,041 | 74,324 | |||||||||||||||
Other International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,182,974 | [2] | 979,970 | [2] | 674,607 | [2] | ||||||||||||
Long-lived assets | $175,478 | [2] | ' | ' | ' | $112,139 | [2] | ' | ' | ' | $108,334 | [2] | ' | ' | ' | $175,478 | [2] | $112,139 | [2] | $108,334 | [2] | |||||||||
[1] | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. | |||||||||||||||||||||||||||||
[2] | Other International sales reflect shipments to third-party distributors, primarily in East Asia, and sales from Coach-operated stores and concession shop-in-shops in Hong Kong, Macau, mainland China, Singapore, Taiwan, Malaysia, South Korea, Europe and Canada. |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of Weighted Average Shares Outstanding and Calculation of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Oct. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | ||||||||||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net Income | $75,275 | [1] | $190,740 | [1] | $297,438 | [1] | $217,883 | [1] | $221,343 | [1] | $238,932 | [1] | $352,764 | [1] | $221,381 | [1] | $251,430 | [1] | $225,002 | [1] | $347,495 | [1] | $214,983 | [1] | $781,336 | $1,034,420 | $1,038,910 |
Total weighted-average basic shares (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 277,790 | 282,494 | 288,284 | ||||||||||||
Dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Employee benefit and share award plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 987 | 1,450 | 1,694 | ||||||||||||
Stock option programs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,602 | 2,363 | 4,151 | ||||||||||||
Total weighted-average diluted shares (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 280,379 | 286,307 | 294,129 | ||||||||||||
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Basic (USD per share) | $0.27 | [1] | $0.69 | [1] | $1.07 | [1] | $0.77 | [1] | $0.79 | [1] | $0.85 | [1] | $1.25 | [1] | $0.78 | [1] | $0.88 | [1] | $0.78 | [1] | $1.20 | [1] | $0.74 | [1] | $2.81 | $3.66 | $3.60 |
Diluted (USD per share) | $0.27 | [1] | $0.68 | [1] | $1.06 | [1] | $0.77 | [1] | $0.78 | [1] | $0.84 | [1] | $1.23 | [1] | $0.77 | [1] | $0.86 | [1] | $0.77 | [1] | $1.18 | [1] | $0.73 | [1] | $2.79 | $3.61 | $3.53 |
[1] | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Options to purchase shares of common stock excluded from the computation of diluted earnings per share | 6,378 | 2,145 | 116 |
Options' exercise prices, lower limit | $43.39 | $56.95 | $72.06 |
Options' exercise prices, upper limit | $78.46 | $78.46 | $78.46 |
Stock_Repurchase_Program_Narra
Stock Repurchase Program (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Equity [Abstract] | ' | ' | ' |
Common stock repurchased and retired (in shares) | 10,239 | 7,066 | 10,688 |
Common stock repurchased and retired, value | $524,926 | $400,000 | $700,000 |
Common stock repurchased and retired, average cost per share (USD per share) | $51.27 | $56.61 | $65.49 |
Stock repurchase program, remaining amount authorized for repurchase | $836,701 | ' | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Components of Certain Balance Sheet Accounts) (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment | ' | ' |
Land and building | $168,550 | $168,550 |
Machinery and equipment | 34,746 | 33,172 |
Furniture and fixtures | 544,580 | 564,574 |
Leasehold improvements | 648,592 | 632,550 |
Construction in progress | 85,150 | 67,665 |
Less: accumulated depreciation | -767,718 | -771,740 |
Total property and equipment, net | 713,900 | 694,771 |
Accrued liabilities | ' | ' |
Payroll and employee benefits | 137,752 | 193,112 |
Accrued rent | 50,946 | 39,984 |
Dividends payable | 92,582 | 94,998 |
Operating expenses | 237,483 | 215,059 |
Total accrued liabilities | 518,763 | 543,153 |
Other liabilities | ' | ' |
Deferred lease obligation | 135,154 | 117,502 |
Gross unrecognized tax benefit | 170,693 | 148,810 |
Deferred tax liabilities | 59,715 | 52,225 |
Other | 63,798 | 81,207 |
Total other liabilities | $429,360 | $399,744 |
Schedule_II_Valuation_and_Qual2
Schedule II - Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | $96,084 | $63,316 | $31,344 |
Provision Charged to Costs and Expenses | 92,579 | 59,851 | 43,605 |
Write-offs/ Allowances Taken | -40,984 | -27,083 | -11,633 |
Balance at End of Year | 147,679 | 96,084 | 63,316 |
Allowance for bad debts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 1,138 | 3,318 | 3,431 |
Provision Charged to Costs and Expenses | 1,649 | -529 | -117 |
Write-offs/ Allowances Taken | -1,368 | -1,651 | 4 |
Balance at End of Year | 1,419 | 1,138 | 3,318 |
Allowance for returns | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 7,023 | 2,810 | 2,196 |
Provision Charged to Costs and Expenses | 744 | 8,644 | 1,752 |
Write-offs/ Allowances Taken | -4,902 | -4,431 | -1,138 |
Balance at End of Year | 2,865 | 7,023 | 2,810 |
Allowance for markdowns | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 8,324 | 3,685 | 3,917 |
Provision Charged to Costs and Expenses | 37,997 | 22,484 | 10,267 |
Write-offs/ Allowances Taken | -34,714 | -17,845 | -10,499 |
Balance at End of Year | 11,607 | 8,324 | 3,685 |
Valuation allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 79,599 | 53,503 | 21,800 |
Provision Charged to Costs and Expenses | 52,189 | 29,252 | 31,703 |
Write-offs/ Allowances Taken | 0 | -3,156 | 0 |
Balance at End of Year | $131,788 | $79,599 | $53,503 |
Quarterly_Financial_Data_Sched
Quarterly Financial Data (Schedule of Quarterly Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Oct. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | $1,136,216 | [1] | $1,099,626 | [1] | $1,419,624 | [1] | $1,150,760 | [1] | $1,222,688 | [1] | $1,187,578 | [1] | $1,503,774 | [1] | $1,161,350 | [1] | $1,155,191 | [1] | $1,108,981 | [1] | $1,448,649 | [1] | $1,050,359 | [1] | $4,806,226 | $5,075,390 | $4,763,180 |
Gross profit | 706,372 | [1] | 781,339 | [1] | 982,679 | [1] | 826,573 | [1] | 887,410 | [1] | 880,188 | [1] | 1,085,382 | [1] | 845,168 | [1] | 838,147 | [1] | 818,067 | [1] | 1,045,211 | [1] | 764,653 | [1] | 3,296,963 | 3,698,148 | 3,466,078 |
Net Income | $75,275 | [1] | $190,740 | [1] | $297,438 | [1] | $217,883 | [1] | $221,343 | [1] | $238,932 | [1] | $352,764 | [1] | $221,381 | [1] | $251,430 | [1] | $225,002 | [1] | $347,495 | [1] | $214,983 | [1] | $781,336 | $1,034,420 | $1,038,910 |
Net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Basic (USD per share) | $0.27 | [1] | $0.69 | [1] | $1.07 | [1] | $0.77 | [1] | $0.79 | [1] | $0.85 | [1] | $1.25 | [1] | $0.78 | [1] | $0.88 | [1] | $0.78 | [1] | $1.20 | [1] | $0.74 | [1] | $2.81 | $3.66 | $3.60 |
Diluted (USD per share) | $0.27 | [1] | $0.68 | [1] | $1.06 | [1] | $0.77 | [1] | $0.78 | [1] | $0.84 | [1] | $1.23 | [1] | $0.77 | [1] | $0.86 | [1] | $0.77 | [1] | $1.18 | [1] | $0.73 | [1] | $2.79 | $3.61 | $3.53 |
[1] | The sum of the quarterly earnings per share may not equal the full-year amount, as the computations of the weighted-average number of common basic and diluted shares outstanding for each quarter and the full year are performed independently. |