Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 28, 2015 | Apr. 24, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | COH | |
Entity Registrant Name | COACH INC | |
Entity Central Index Key | 1116132 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 276,287,335 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $1,782 | $591.90 |
Short-term investments | 239.2 | 276.7 |
Trade accounts receivable, less allowances of $2.1 million and $1.4 million, respectively | 196.9 | 198.6 |
Inventories | 456.9 | 526.2 |
Deferred income taxes | 94 | 112.6 |
Other current assets | 129 | 149.2 |
Total current assets | 2,898 | 1,855.20 |
Property and equipment, net | 668.4 | 713.9 |
Long-term investments | 399.7 | 484.5 |
Goodwill | 315.6 | 361.4 |
Other assets | 231 | 248.1 |
Total assets | 4,512.70 | 3,663.10 |
Current Liabilities: | ||
Accounts payable | 165.3 | 153.9 |
Accrued liabilities | 518.2 | 518.7 |
Current debt | 7.5 | 140.5 |
Total current liabilities | 691 | 813.1 |
Long-term Debt | 889.2 | 0 |
Other liabilities | 392.2 | 429.4 |
Total liabilities | 1,972.40 | 1,242.50 |
See Note 14 on commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock: (authorized 25.0 million shares; $0.01 par value per share) none issued | 0 | 0 |
Common stock: (authorized 1,000.0 million shares; $0.01 par value per share) issued and outstanding 276.1 million and 274.4 million shares, respectively | 2.8 | 2.7 |
Additional paid-in-capital | 2,719.70 | 2,646.10 |
Accumulated deficit | -107.9 | -219.5 |
Accumulated other comprehensive loss | -74.3 | -8.7 |
Total stockholders' equity | 2,540.30 | 2,420.60 |
Total liabilities and stockholders' equity | $4,512.70 | $3,663.10 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $2.10 | $1.40 |
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) | 276,100,000 | 274,400,000 |
Common stock, outstanding (shares) | 276,100,000 | 274,400,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||||
Net sales | $929.30 | $1,099.60 | $3,187.50 | $3,670 |
Cost of sales | 263.8 | 318.3 | 966.6 | 1,079.40 |
Gross profit | 665.5 | 781.3 | 2,220.90 | 2,590.60 |
Selling, general and administrative expenses | 541.5 | 518.6 | 1,641.70 | 1,570.30 |
Operating income | 124 | 262.7 | 579.2 | 1,020.30 |
Interest (expense) income, net | -1.2 | -2 | -0.1 | 1.6 |
Income before provision for income taxes | 122.8 | 260.7 | 579.1 | 1,021.90 |
Provision for income taxes | 34.7 | 70 | 188.4 | 315.8 |
Net income | $88.10 | $190.70 | $390.70 | $706.10 |
Net income per share: | ||||
Basic (USD per share) | $0.32 | $0.69 | $1.42 | $2.53 |
Diluted (USD per share) | $0.32 | $0.68 | $1.41 | $2.51 |
Shares used in computing net income per share | ||||
Basic (shares) | 275.9 | 276.1 | 275.5 | 278.9 |
Diluted (shares) | 277.4 | 278.8 | 276.8 | 281.6 |
Cash dividends declared per common share (USD per share) | $0.34 | $0.34 | $1.01 | $1.01 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $88.10 | $190.70 | $390.70 | $706.10 |
Other comprehensive (loss) income, net of tax: | ||||
Net unrealized gains (losses) on cash flow hedging derivatives | -2.4 | -0.1 | 5.2 | -0.8 |
Net unrealized (losses) on available-for-sale investments | 0.5 | 4.5 | -1.1 | 3.7 |
Foreign currency translation adjustments | -2.1 | 3.6 | -69.7 | -7 |
Other comprehensive (loss) income, net of tax | -4 | 8 | -65.6 | -4.1 |
Comprehensive income | $84.10 | $198.70 | $325.10 | $702 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $390.70 | $706.10 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 137.2 | 138.1 |
Provision for bad debt | 1.5 | 1.2 |
Share-based compensation | 67 | 68.8 |
Excess tax shortfall (benefit) from share-based compensation | 4.7 | -0.5 |
Transformation and other related charges; sale of Reed Krakoff business | 38.9 | -0.9 |
Deferred income taxes | 16.7 | 28.3 |
Other non-cash (benefits) charges, net | -6.4 | 3.8 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | -10 | -23.9 |
Inventories | 31.4 | -55.5 |
Accounts payable | 14.9 | -73.8 |
Accrued liabilities | 22.4 | -79.5 |
Other liabilities | -7.6 | -15.4 |
Other balance sheet changes, net | 49.4 | -27.5 |
Net cash provided by operating activities | 750.8 | 669.3 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of interest in equity method investment | -97.4 | -62.9 |
Acquisitions, net of cash acquired | 0 | -2 |
Purchases of property and equipment | -124.5 | -157.6 |
Purchases of investments | -50.5 | -520.7 |
Proceeds from maturities and sales of investments | 265.8 | 69.3 |
Acquisition of lease rights | -11.6 | 0 |
Net cash used in investing activities | -18.2 | -673.9 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend payments | -278.6 | -283.7 |
Repurchase of common stock | 0 | -524.9 |
Proceeds from issuance of long-term debt, net of discount | 896.7 | 0 |
Debt Issuance costs | -6.6 | 0 |
Repayment of debt | -0.5 | -0.5 |
Proceeds from share-based awards | 21.7 | 45 |
Borrowings under revolving credit facility | 340 | 360 |
Repayment of revolving credit facility | -480 | -150 |
Taxes paid to net settle share-based awards | -14.9 | -39.6 |
Excess tax (shortfall) benefit from share-based compensation | -4.7 | 0.5 |
Acquisition-related payment of contingent consideration | -3.8 | 0 |
Net cash provided by (used in) financing activities | 469.3 | -593.2 |
Effect of changes in foreign exchange rates on cash and cash equivalents | -11.8 | -1.5 |
Increase (decrease) in cash and cash equivalents | 1,190.10 | -599.3 |
Cash and cash equivalents at beginning of period | 591.9 | 1,062.80 |
Cash and cash equivalents at end of period | 1,782 | 463.5 |
Supplemental information: | ||
Cash paid for income taxes, net | 133.3 | 316.1 |
Cash paid for interest | $1.40 | $0.80 |
Nature_of_Operations
Nature of Operations | 9 Months Ended |
Mar. 28, 2015 | |
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, ready-to-wear including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. Coach’s products are sold through its 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, Italy and Belgium, as well as sales to wholesale customers and distributors in approximately 40 countries. The Company also records sales generated in ancillary channels including licensing and disposition. |
Basis_of_Presentation_and_Orga
Basis of Presentation and Organization | 9 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | Basis of Presentation and Organization |
Interim Financial Statements | |
These interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC and are unaudited. In the opinion of management, such condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position, income, comprehensive income and cash flows of the Company for the interim periods presented. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") have been condensed or omitted from this report as is permitted by the SEC's rules and regulations. However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. This report should be read in conjunction with the audited consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended June 28, 2014. | |
The results of operations, cash flows and comprehensive income for the three and nine months ended March 28, 2015 are not necessarily indicative of results to be expected for the entire fiscal year, which will end on June 27, 2015 ("fiscal 2015"). | |
Basis of Consolidation | |
These unaudited interim condensed consolidated financial statements present the consolidated financial position, income, comprehensive income and cash flows of the Company, including all entities in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Fiscal Periods | |
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30. Fiscal 2015 will be a 52-week period. Fiscal 2014 ended on June 28, 2014 and was also a 52-week period ("fiscal 2014"). The third quarter of fiscal 2015 ended on March 28, 2015 and was a 13-week period. The third quarter of fiscal 2014 ended on March 29, 2014 and was also a 13-week period. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | |
Significant estimates inherent in the preparation of the condensed consolidated financial statements include reserves for customer returns and markdowns; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation awards and related estimated forfeiture rates; and reserves for restructuring, among others. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 28, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which modifies the presentation of debt issuance costs in financial statements. Under this new guidance, the Company will be required to present these costs in our condensed consolidated balance sheets as a direct deduction from the related debt liability, rather than the Company's current classification as a deferred asset within Other assets. The requirements of the new standard will become effective for fiscal years, and interim periods within those fiscal years (including retrospective application), beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. Early adoption is also permitted. The Company is currently evaluating this guidance and does not expect the application of this standard to have a material impact on the presentation of debt issuance costs within Coach's condensed consolidated balance sheets. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "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 are currently 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_and_Other_Actio
Transformation and Other Actions | 9 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Transformation and Other Actions | Transformation and Other Actions | |||||||||||||||||||||||
Transformation 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 , including: (i) the investment in capital improvements in stores and wholesale locations during fiscal 2015 and through fiscal 2017; (ii) the optimization and streamlining of our organizational model as well as the closure of underperforming North American stores in fiscal 2015; (iii) the realignment of inventory levels to reflect the Company's elevated product strategy beginning 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 promotional events, particularly within the outlet Internet sales site which started in fiscal 2014. | ||||||||||||||||||||||||
As of March 28, 2015, the Company expects to incur pre-tax charges in the range of $300 million, in total, under the Transformation Plan. In the fourth quarter of fiscal 2014, the Company recorded charges of $131.5 million under this plan. During the quarter ended March 28, 2015 the Company incurred transformation-related charges of $22.5 million, ($12.1 million after-tax, or $0.04 per diluted share). For the nine months ended March 28, 2015, the Company incurred transformation-related charges of $79.7 million, ($53.2 million after-tax, or $0.19 per diluted share). For the three and nine months ended March 28, 2015 the charges recorded in selling, general and administrative ("SG&A") expenses were $22.5 million and $74.7 million, respectively, and primarily relate to the Company's North America business. There were no charges recorded in cost of sales for the quarter ended March 28, 2015. There were $5.0 million recorded in cost of sales for the nine months ended March 28, 2015, primarily related to the Company's North America business. | ||||||||||||||||||||||||
A summary of charges and related liabilities under the Company's Transformation Plan are as follows (in millions): | ||||||||||||||||||||||||
Inventory-Related Charges(1) | Impairment(2) | Store-Related Costs(3) | Organizational Efficiency Costs(4) | Other(5) | Total | |||||||||||||||||||
Balance at June 29, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Fiscal 2014 charges | 82.2 | 35.5 | 12.2 | 1 | 0.6 | 131.5 | ||||||||||||||||||
Cash payments | — | — | — | — | — | — | ||||||||||||||||||
Non-cash adjustments | (66.8 | ) | (35.5 | ) | (6.7 | ) | — | — | (109.0 | ) | ||||||||||||||
Balance at June 28, 2014 | 15.4 | — | 5.5 | 1 | 0.6 | 22.5 | ||||||||||||||||||
Fiscal 2015 charges | 3 | — | 41.9 | 29.4 | 5.4 | 79.7 | ||||||||||||||||||
Cash payments | (15.1 | ) | — | (10.9 | ) | (18.3 | ) | (4.0 | ) | (48.3 | ) | |||||||||||||
Non-cash adjustments | (3.0 | ) | — | (31.3 | ) | (4.5 | ) | (0.1 | ) | (38.9 | ) | |||||||||||||
Balance at March 28, 2015 | $ | 0.3 | $ | — | $ | 5.2 | $ | 7.6 | $ | 1.9 | $ | 15 | ||||||||||||
(1) | 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. | |||||||||||||||||||||||
(2) | 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. | |||||||||||||||||||||||
(3) | Store-related costs, recorded within SG&A expenses, relate to store closure costs which include accelerated depreciation charges associated with store assets that the Company will no longer benefit from as a result of the Transformation Plan, as well as lease termination and store employee severance costs. | |||||||||||||||||||||||
(4) | Organizational efficiency charges, recorded within SG&A expenses, primarily relate to the severance and related costs of corporate employees. | |||||||||||||||||||||||
(5) | Other charges comprise of consulting costs and the write-down of certain assets that will not be placed into service by the Company, which are recorded within SG&A expenses and certain freight and handling costs incurred related to the destruction of inventory which are recorded within cost of sales. | |||||||||||||||||||||||
The above charges were recorded as corporate unallocated expenses within the Company's condensed consolidated statements of income. | ||||||||||||||||||||||||
The Company expects to incur additional pre-tax charges of about $100 million during the remainder of fiscal 2015 and into fiscal 2016 in connection with the Transformation Plan. These costs will primarily consist of store-related costs and organizational efficiency charges. | ||||||||||||||||||||||||
Sale of Reed Krakoff Business | ||||||||||||||||||||||||
In the first quarter of fiscal 2014, 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 "Reed Krakoff Purchase Agreement") with Buyer and Reed Krakoff, the Company’s former President and Executive Creative Director, and resulted in Coach recording a cost method investment of $3.3 million, which was included in Long-term investments in the condensed consolidated balance sheet. During the third quarter of fiscal 2015, the Company wrote-off its cost method investment, with the charge recorded within SG&A expenses. | ||||||||||||||||||||||||
In connection with the Reed Krakoff 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 $2.7 million during the first quarter of fiscal 2014 related to the sale, which is recorded in SG&A expenses on the condensed consolidated statements of income. |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 28, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
Fiscal 2015 Acquisition | |
On January 5, 2015, the Company entered into a purchase agreement (the "Stuart Weitzman Purchase Agreement") with Stuart Weitzman Topco LLC ("Topco") and Stuart Weitzman Intermediate LLC ("Stuart Weitzman"), a wholly owned subsidiary of Topco, which Coach believes will complement its current leadership position in premium handbags and accessories. Subsequent to the end of the third quarter of fiscal 2015 (May 4, 2015), the acquisition was consummated. The operating results of the Stuart Weitzman business will be consolidated in the Company's operating results commencing on May 4, 2015. The Company is in the process of assessing the fair values of the assets acquired and the liabilities assumed. Given the timing of the acquisition, the initial purchase accounting for the business combination including the valuation of net assets acquired at fair value is not yet complete at this time. | |
Under the terms of the Stuart Weitzman Purchase Agreement, Coach has agreed to purchase all of the equity interests of Stuart Weitzman Intermediate LLC, a luxury footwear company and the parent of Stuart Weitzman Holdings, LLC, from Topco for an aggregate payment of approximately $530 million in cash, subject to customary purchase price adjustments, as well as a potential earnout of up to $14.7 million annually in cash over the next three calendar years based on the achievement of certain revenue targets. The Stuart Weitzman Purchase Agreement also contains a catch-up provision that provides that if the revenue targets are missed in any one year but are surpassed in succeeding years then amounts for past years become due upon surpassing targets in succeeding years. The total amount payable under the earn-out will not exceed $44 million. On May 4, 2015, the Company funded the acquisition through cash on-hand, including the utilization of a portion of debt related proceeds, as described in Note 10, "Debt." | |
The Stuart Weitzman Purchase Agreement includes customary representations and warranties and covenants relating to the operations of business prior to the closing of the transaction. The Stuart Weitzman Purchase Agreement is subject to termination under certain circumstances, including that both parties will have the right to terminate the Stuart Weitzman Purchase Agreement if the closing has not occurred by May 25, 2015 or upon a material breach by the other party of the Stuart Weitzman Purchase Agreement that is not cured within twenty days' notice to the other party. | |
During the nine months ended March 28, 2015, the Company has incurred approximately $3.5 million, in acquisition-related costs, recorded within SG&A expenses. There were no costs incurred during the three months ended March 28, 2015. | |
Fiscal 2014 Acquisition | |
On July 1, 2013 (fiscal 2014), the Company 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 condensed consolidated financial statements since the date of acquisition within the International segment. The purchase price consisted of cash payments of approximately $15.1 million and the forgiveness of a loan from Coach to Hackett Limited of approximately $18.0 million. The allocation of the purchase price resulted in goodwill of $14.8 million, which is not tax deductible. Unaudited pro forma information related to this acquisition is not included, as the impact of this transaction is not material to the condensed consolidated results of the Company. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||
Mar. 28, 2015 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill and Intangible Assets | Goodwill and 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 (in millions): | ||||
Total | ||||
Balance at June 28, 2014 | $ | 361.4 | ||
Foreign exchange impact | (45.8 | ) | ||
Balance at March 28, 2015 | $ | 315.6 | ||
At March 28, 2015 and June 28, 2014, the Company’s intangible assets, which are not subject to amortization, consisted of $9.8 million of trademarks which are recorded within Other assets on the condensed consolidated balance sheets. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | ||||||||||||||||||||||
A reconciliation of stockholders' equity is presented below (in millions, except per share data): | |||||||||||||||||||||||
Shares of | Common Stock | Additional | Accumulated | Accumulated | Total | ||||||||||||||||||
Common | Paid-in- | Deficit | Other | Stockholders' | |||||||||||||||||||
Stock | Capital | Comprehensive | Equity | ||||||||||||||||||||
Loss | |||||||||||||||||||||||
Balance at June 29, 2013 | 281.9 | $ | 2.8 | $ | 2,520.50 | $ | (101.9 | ) | $ | (12.2 | ) | $ | 2,409.20 | ||||||||||
Net income | — | — | — | 706.1 | — | 706.1 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (4.1 | ) | (4.1 | ) | |||||||||||||||
Shares issued for stock options and employee benefit plans | 2.5 | 0.1 | 5.4 | — | — | 5.5 | |||||||||||||||||
Share-based compensation | — | — | 78.6 | — | — | 78.6 | |||||||||||||||||
Excess tax benefit from share-based compensation | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||
Repurchase and retirement of common stock | (10.2 | ) | (0.2 | ) | — | (524.7 | ) | — | (524.9 | ) | |||||||||||||
Dividends declared ($1.0125 per share) | — | — | — | (281.6 | ) | — | (281.6 | ) | |||||||||||||||
Balance at March 29, 2014 | 274.2 | $ | 2.7 | $ | 2,605.00 | $ | (202.1 | ) | $ | (16.3 | ) | $ | 2,389.30 | ||||||||||
Balance at June 28, 2014 | 274.4 | $ | 2.7 | $ | 2,646.10 | $ | (219.5 | ) | $ | (8.7 | ) | $ | 2,420.60 | ||||||||||
Net income | — | — | — | 390.7 | — | 390.7 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (65.6 | ) | (65.6 | ) | |||||||||||||||
Shares issued for stock options and employee benefit plans | 1.7 | 0.1 | 6.8 | — | — | 6.9 | |||||||||||||||||
Share-based compensation | — | — | 71.5 | — | — | 71.5 | |||||||||||||||||
Excess tax shortfall from share-based compensation | — | — | (4.7 | ) | — | — | (4.7 | ) | |||||||||||||||
Dividends declared ($1.0125 per share) | — | — | — | (279.1 | ) | — | (279.1 | ) | |||||||||||||||
Balance at March 28, 2015 | 276.1 | $ | 2.8 | $ | 2,719.70 | $ | (107.9 | ) | $ | (74.3 | ) | $ | 2,540.30 | ||||||||||
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 the first nine months of fiscal 2015, the Company did not repurchase any shares. During the third quarter of fiscal 2014, the Company repurchased and retired 3.6 million shares, or $174.9 million at an average cost of $47.99 per share. For the nine months ended March 29, 2014, the Company repurchased and retired 10.2 million shares, or $524.9 million at an average cost of $51.27. | |||||||||||||||||||||||
As of March 28, 2015, Coach had $836.7 million remaining in the stock repurchase program. | |||||||||||||||||||||||
The components of accumulated other comprehensive (loss) income ("AOCI"), as of the dates indicated, are as follows (in millions): | |||||||||||||||||||||||
Unrealized | Unrealized | Cumulative | Other(2) | Total | |||||||||||||||||||
Gains (Losses) | (Losses) | Translation | |||||||||||||||||||||
on Cash | Gains | Adjustment | |||||||||||||||||||||
Flow | on Available- | ||||||||||||||||||||||
Hedges(1) | for-Sale | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||
Balances at June 29, 2013 | $ | 3.7 | $ | (1.3 | ) | $ | (11.6 | ) | $ | (3.0 | ) | $ | (12.2 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 3.9 | 2.8 | (7.0 | ) | — | (0.3 | ) | ||||||||||||||||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 4.7 | 0.1 | — | (1.0 | ) | 3.8 | |||||||||||||||||
Net current-period other comprehensive (loss) income | (0.8 | ) | 2.7 | (7.0 | ) | 1 | (4.1 | ) | |||||||||||||||
Balances at March 29, 2014 | $ | 2.9 | $ | 1.4 | $ | (18.6 | ) | $ | (2.0 | ) | $ | (16.3 | ) | ||||||||||
Balances at June 28, 2014 | $ | 0.6 | $ | 1.8 | $ | (9.2 | ) | $ | (1.9 | ) | $ | (8.7 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 9.6 | (1.1 | ) | (69.7 | ) | — | (61.2 | ) | |||||||||||||||
Less: gains reclassified from accumulated other comprehensive income to earnings | 4.4 | — | — | — | 4.4 | ||||||||||||||||||
Net current-period other comprehensive income (loss) | 5.2 | (1.1 | ) | (69.7 | ) | — | (65.6 | ) | |||||||||||||||
Balances at March 28, 2015 | $ | 5.8 | $ | 0.7 | $ | (78.9 | ) | $ | (1.9 | ) | $ | (74.3 | ) | ||||||||||
(1) | The ending balances of AOCI related to cash flow hedges are net of tax of ($3.2) million and ($1.8) million as of March 28, 2015 and March 29, 2014, respectively. The amounts reclassified from AOCI are net of tax of ($2.3) million and ($2.8) million as of March 28, 2015 and March 29, 2014, respectively. | ||||||||||||||||||||||
-2 | As of March 28, 2015 and March 29, 2014, Other represents the accumulated loss on the Company's minimum pension liability adjustment. The balances at March 28, 2015 and March 29, 2014 are net of tax of $1.5 million and $1.5 million, respectively. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
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 restricted stock units ("RSUs") and any other potentially dilutive instruments, only in the periods in which such effects are dilutive under the treasury stock method. | ||||||||||||||||
The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted net income per share: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | 28-Mar-15 | March 29, | |||||||||||||
2015 | 2014 | 2014 | ||||||||||||||
(millions, except per share data) | ||||||||||||||||
Net income | $ | 88.1 | $ | 190.7 | $ | 390.7 | $ | 706.1 | ||||||||
Total weighted-average basic shares outstanding | 275.9 | 276.1 | 275.5 | 278.9 | ||||||||||||
Effect of dilutive securities | 1.5 | 2.7 | 1.3 | 2.7 | ||||||||||||
Total weighted-average diluted shares | 277.4 | 278.8 | 276.8 | 281.6 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.69 | $ | 1.42 | $ | 2.53 | ||||||||
Diluted | $ | 0.32 | $ | 0.68 | $ | 1.41 | $ | 2.51 | ||||||||
Earnings per share amounts have been calculated based on unrounded numbers. Options to purchase shares of the Company's common stock at an exercise price greater than the average market price of the common stock during the reporting period are anti-dilutive and therefore not included in the computation of diluted net income per common share. In addition, the Company has outstanding RSUs that are issuable only upon the achievement of certain performance goals. Performance-based RSUs ("PRSUs") are included in the computation of diluted shares only to the extent that the underlying performance conditions (and any applicable market condition modifiers) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. As of March 28, 2015 and March 29, 2014, there were approximately 6.9 million and 6.0 million, respectively, of additional shares issuable upon exercise of anti-dilutive options and contingent vesting of PRSUs, which were excluded from the diluted share calculations |
Sharebased_Compensation
Share-based Compensation | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Share-based Compensation | Share-based Compensation | |||||||||||||||
The following table shows the total compensation cost and the related tax benefits recognized for share-based compensation plans in the condensed consolidated statements of income for the periods indicated: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, 2015(1) | March 29, | March 28, 2015(1) | March 29, | |||||||||||||
2014 | 2014(2) | |||||||||||||||
(millions) | ||||||||||||||||
Share-based compensation expense | $ | 24.4 | $ | 25.8 | $ | 71.5 | $ | 78.6 | ||||||||
Income tax benefit related to share-based compensation expense | 7.4 | 8 | 21.7 | 24.4 | ||||||||||||
(1) | During the three and nine months ended March 28, 2015, the Company incurred approximately $1.7 million and $4.5 million of share-based compensation expense, respectively, that are related to organizational efficiency costs under the Company's Transformation Plan primarily as a result of the accelerated vesting of certain awards. See Note 4, "Transformation and Other Actions," for more information. Approximately $0.6 million and $1.7 million of income tax benefit is associated with these actions for the three and nine months ended March 28, 2015, respectively. | |||||||||||||||
(2) | Approximately $9.8 million of share-based compensation expense (and approximately $3.8 million of income tax benefit) is related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. | |||||||||||||||
Stock Options | ||||||||||||||||
A summary of stock option activity under the Coach stock option plans during the nine months ended March 28, 2015 is as follows: | ||||||||||||||||
Number of | Weighted-Average | |||||||||||||||
Options | Exercise Price per Option | |||||||||||||||
Outstanding | ||||||||||||||||
(millions) | ||||||||||||||||
Outstanding at June 28, 2014 | 11.7 | $ | 44.21 | |||||||||||||
Granted | 4 | 36.26 | ||||||||||||||
Exercised | (0.8 | ) | 25.17 | |||||||||||||
Forfeited or expired | (0.9 | ) | 48.73 | |||||||||||||
Outstanding at March 28, 2015 | 14 | 42.71 | ||||||||||||||
Vested and expected to vest at March 28, 2015 | 13.8 | 42.74 | ||||||||||||||
Exercisable at March 28, 2015 | 8.3 | 43.33 | ||||||||||||||
At March 28, 2015, $28.9 million of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.1 years. | ||||||||||||||||
The weighted-average grant-date fair value of individual options granted during the first nine months of fiscal 2015 and fiscal 2014 was $6.41 and $9.94, respectively. The total intrinsic value of options exercised during the first nine months of fiscal 2015 and fiscal 2014 was $9.4 million and $26.1 million, respectively. | ||||||||||||||||
The total cash received from these option exercises was $19.9 million for the first nine months of fiscal 2015 and $42.5 million for the first nine months of fiscal 2014. The actual tax benefit realized from these option exercises was $3.6 million and $9.7 million, respectively. | ||||||||||||||||
Service-based Restricted Stock Unit Awards | ||||||||||||||||
A summary of RSU activity during the nine months ended March 28, 2015 is as follows: | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Non-vested | Average Grant- | |||||||||||||||
RSUs | Date Fair Value | |||||||||||||||
per RSU | ||||||||||||||||
(millions) | ||||||||||||||||
Non-vested at June 28, 2014 | 3.2 | $ | 54.68 | |||||||||||||
Granted | 1.8 | 36.26 | ||||||||||||||
Vested | (1.3 | ) | 56.7 | |||||||||||||
Forfeited | (0.4 | ) | 48.64 | |||||||||||||
Non-vested at March 28, 2015 | 3.3 | 44.78 | ||||||||||||||
At March 28, 2015, $82.3 million of total unrecognized compensation cost related to non-vested RSU awards is expected to be recognized over a weighted-average period of 1.0 year. | ||||||||||||||||
The weighted-average grant-date fair value per share of RSU awards granted during the first nine months of fiscal 2015 and fiscal 2014 was $36.26 and $53.09, respectively. The total fair value of RSUs vested during the first nine months of fiscal 2015 and fiscal 2014 was $45.5 million and $76.9 million, respectively. | ||||||||||||||||
Performance-based Restricted Stock Unit Awards | ||||||||||||||||
A summary of PRSU activity during the nine months ended March 28, 2015 is as follows: | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Non-vested | Average Grant- | |||||||||||||||
PRSUs | Date Fair Value | |||||||||||||||
per PRSU | ||||||||||||||||
(millions) | ||||||||||||||||
Non-vested at June 28, 2014 | 0.9 | $ | 44.6 | |||||||||||||
Granted | 0.4 | 36.28 | ||||||||||||||
Change due to performance condition achievement | (0.1 | ) | 54.67 | |||||||||||||
Vested(1) | — | 58.34 | ||||||||||||||
Forfeited(1) | — | 49.29 | ||||||||||||||
Non-vested at March 28, 2015 | 1.2 | 41.08 | ||||||||||||||
-1 | During the first nine months of fiscal 2015, less than 0.1 million PRSU's vested or forfeited, individually and in the aggregate. | |||||||||||||||
At March 28, 2015, $19.0 million of total unrecognized compensation cost related to non-vested PRSU awards is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||||||||||
Included in the non-vested amount at March 28, 2015 are approximately 0.8 million PRSU awards that are 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 and Poor's 500 Index. There were no awards granted during the first nine months of fiscal 2015 with this performance criteria. | ||||||||||||||||
The weighted-average grant-date fair value per share of PRSU awards granted during the first nine months of fiscal 2015 and fiscal 2014 was $36.28 and $32.29, respectively. The total fair value of shares vested during the first nine months of fiscal 2015 and fiscal 2014 was $0.7 million and $23.1 million, respectively. | ||||||||||||||||
In the first nine months of fiscal 2015 and 2014, the cash tax benefit realized for the tax deductions from all service and performance-based RSUs were $19.9 million and $33.1 million, respectively. |
Debt
Debt | 9 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Debt | Debt | |||||||
The following table summarizes the components of the Company’s outstanding debt: | ||||||||
March 28, | June 28, | |||||||
2015 | 2014 | |||||||
(millions) | ||||||||
Current Debt: | ||||||||
Term Loan | $ | 7.5 | $ | — | ||||
Revolving Facility | — | 140 | ||||||
Other | — | 0.5 | ||||||
Total Current Debt | $ | 7.5 | $ | 140.5 | ||||
Long-Term Debt: | ||||||||
Term Loan | $ | 292.5 | $ | — | ||||
4.250% Senior Notes | 600 | — | ||||||
Total Long-Term Debt | 892.5 | — | ||||||
Less: Unamortized Discount on 4.250% Senior Notes | (3.3 | ) | — | |||||
Total Long-Term Debt, net | $ | 889.2 | $ | — | ||||
For the third quarter of fiscal 2015 and fiscal 2014, the Company recognized interest expense of $2.6 million and $0.7 million, respectively. For the nine months ended on March 28, 2015 and March 29, 2014, the Company recognized interest expense of $4.0 million and $1.5 million, respectively. | ||||||||
Amended and Restated Credit Agreement | ||||||||
In March 2015, the Company amended and restated its existing $700.0 million revolving credit facility (the "Revolving Facility") with certain lenders and JP Morgan Chase Bank, N.A. as the administrative agent, to provide for a five-year senior unsecured $300.0 million term loan (the “Term Loan”) and to extend the maturity date to March 18, 2020 (the "Amended and Restated Credit Agreement"). As of March 28, 2015, there were no borrowings under the Revolving Facility. | ||||||||
The Term Loan will be repaid in quarterly installments beginning in September 2015 as follows: | ||||||||
(in millions) | ||||||||
September 2015 through June 2018 | $ | 3.8 | ||||||
September 2018 through June 2019 | 7.5 | |||||||
September 2019 through December 2019 | 11.3 | |||||||
The remaining expected outstanding balance of $202.5 million will be due on maturity at March 18, 2020. There is no penalty for early repayment of outstanding amounts under the Term Loan. The Amended and Restated Credit Agreement will continue to be used for general corporate purposes of the Company and its subsidiaries. | ||||||||
Borrowings under the Amended and Restated Credit Agreement 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 (i) the Prime Rate in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus ½ of 1% or (iii) 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 Revolving Facility. At March 28, 2015, the interest rate on these borrowings was 1.395% and the commitment fee was 0.125%. | ||||||||
The fair value of the outstanding balance of the Term Loan as of March 28, 2015 approximated carrying value, and was based on available external pricing data and current market rates for similar debt instruments, among other factors, and is classified as Level 2 measurements within the fair value hierarchy. | ||||||||
The Amended and Restated Credit Agreement contains various covenants and customary events of default. As of March 28, 2015, no known events of default have occurred. | ||||||||
4.250% Senior Notes | ||||||||
In March 2015, the Company issued $600.0 million aggregate principal amount of 4.250% senior unsecured notes due April 1, 2025 at 99.445% of par (the “4.250% Senior Notes”). Interest is payable semi-annually on April 1 and October 1 beginning October 1, 2015. Prior to January 1, 2025 (90 days prior to the scheduled maturity date), the Company may redeem the 4.250% Senior Notes in whole or in part, at its option at any time or from time to time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 4.250% Senior Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon that would have been payable in respect of the 4.250% Senior Notes calculated as if the maturity date of the 4.250% Senior Notes was January 1, 2025 (not including any portion of payments of interest accrued to the date of redemption), discounted to the redemption date on a semi-annual basis at the Adjusted Treasury Rate (as defined in the indenture for the 4.250% Senior Notes) plus 35 basis points, plus, in the case of each of (1) and (2), accrued and unpaid interest to the redemption date. On and after January 1, 2025 (90 days prior to the scheduled maturity date), the Company may redeem the 4.250% Senior Notes in whole or in part, at its option at any time or from time to time, at a redemption price equal to 100% of the principal amount of the 4.250% Senior Notes to be redeemed, plus accrued and unpaid interest to the redemption date. | ||||||||
At March 28, 2015, the fair value of the 4.250% Senior Notes was approximately $608 million, based on external pricing data, including available quoted market prices of these instruments, and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as Level 2 measurements within the fair value hierarchy. | ||||||||
Furthermore, the indenture for the 4.250% Senior Notes contains certain covenants limiting the Company’s ability to: (i) create certain liens, (ii) enter into certain sale and leaseback transactions and (iii) merge, or consolidate or transfer, sell or lease all or substantially all of the Company’s assets. As of March 28, 2015, no known events of default have occurred. | ||||||||
Other | ||||||||
Coach Japan, a wholly owned subsidiary of the Company, maintains credit facilities with several Japanese financial institutions to provide funding for working capital and general corporate purposes, allowing a total maximum borrowing capacity of 5.3 billion yen, or approximately $44 million, as of March 28, 2015. Interest is based on the Tokyo Interbank rate plus a margin of 25 to 30 basis points. During fiscal 2014 and through the third quarter of fiscal 2015, there were no borrowings under these facilities. | ||||||||
Coach Shanghai Limited, a wholly owned subsidiary of the Company, maintains a credit facility to provide funding for working capital and general corporate purposes, allowing a total maximum borrowing capacity of 63.0 million Chinese renminbi, or approximately $10 million, as of March 28, 2015. Interest is based on the People's Bank of China rate. During fiscal 2014 and through the third quarter of fiscal 2015, there were no borrowings under this facility. | ||||||||
Both the Coach Japan and Coach Shanghai Limited credit facilities can be terminated at any time by the respective financial institutions, and there is no guarantee that they will be available to the Company in future periods. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
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 assets and liabilities at March 28, 2015 and June 28, 2014 (in millions): | ||||||||||||||||
Level 1 | Level 2 | |||||||||||||||
March 28, | June 28, | March 28, | June 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 509.4 | $ | 1.2 | $ | 326.3 | $ | 45.1 | ||||||||
Short-term investments: | ||||||||||||||||
Time deposits(2) | — | — | — | 75.1 | ||||||||||||
Government securities - U.S.(2) | 51.8 | 42 | — | — | ||||||||||||
Corporate debt securities - U.S.(2) | — | — | 97.1 | 25.4 | ||||||||||||
Corporate debt securities - non U.S.(2) | — | — | 72 | 34.6 | ||||||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities(3) | — | — | 0.2 | 1.1 | ||||||||||||
Government securities - U.S.(3) | 9.3 | 55.3 | — | — | ||||||||||||
Corporate debt securities - U.S.(3) | — | — | 65.8 | 144.9 | ||||||||||||
Corporate debt securities - non U.S.(3) | — | — | 45.9 | 98.8 | ||||||||||||
Derivative Assets: | ||||||||||||||||
Zero-cost collar options(4) | — | — | 5.4 | 0.4 | ||||||||||||
Forward contracts and cross currency swaps(4) | — | — | 0.1 | 0.1 | ||||||||||||
Total | $ | 570.5 | $ | 98.5 | $ | 612.8 | $ | 425.5 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Zero-cost collar options(4) | $ | — | $ | — | $ | 0.4 | $ | 0.6 | ||||||||
Forward contracts and cross currency swaps(4) | — | — | — | 0.3 | ||||||||||||
Total | $ | — | $ | — | $ | 0.4 | $ | 0.9 | ||||||||
(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. | |||||||||||||||
(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) | 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. | |||||||||||||||
Refer to Note 10, "Debt," for the fair value of the Company's outstanding debt instruments. | ||||||||||||||||
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. | ||||||||||||||||
Adverse changes in future market conditions or weaker operating results compared to our expectations could result in losses or a potential impairment charge if the Company is unable to recover the carrying value of certain assets. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||
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 transactional 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 condensed 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 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 as a foreign currency gain (loss). 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 as a foreign currency gain (loss). 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 as a foreign currency gain (loss). | |||||||||||||||||||||||||||||
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 condensed 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 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 condensed 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 April 2015 to March 2016. | ||||||||||||||||||||||||||||
• | Cross currency swaps - These derivatives relate to intercompany loans, and are recognized as a foreign currency gain (loss) generally in the period in which the related payments being hedged are revalued or settled. | ||||||||||||||||||||||||||||
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 are in April 2015. | |||||||||||||||||||||||||||||
The following tables provide information related to the Company’s derivatives as of March 28, 2015 and June 28, 2014: | |||||||||||||||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Designated Derivative Hedging Instruments(1) | March 28, | June 28, | Balance Sheet Classification | March 28, | June 28, | Balance Sheet Classification | March 28, | June 28, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
C - Inventory purchases | $ | 130.1 | $ | 90.2 | Other current assets | $ | 5.4 | $ | 0.4 | Accrued liabilities | $ | (0.4 | ) | $ | (0.6 | ) | |||||||||||||
CCS - Intercompany loans | — | 4.8 | Other current assets | — | 0.1 | — | — | — | |||||||||||||||||||||
FC - Intercompany loans | 21.1 | 8.4 | Other current assets | 0.1 | — | — | — | — | |||||||||||||||||||||
FC - Contractual obligations(2) | — | 4 | — | — | — | Accrued liabilities | — | (0.3 | ) | ||||||||||||||||||||
Total Hedges | $ | 151.2 | $ | 107.4 | $ | 5.5 | $ | 0.5 | $ | (0.4 | ) | $ | (0.9 | ) | |||||||||||||||
(1) | C =ero-cost Collars; CCS =ross Currency Swaps; FC =orward foreign currency exchange contracts | ||||||||||||||||||||||||||||
(2) | Contractual obligations at the end of fiscal 2014 consisted of a $4.0 million payment due to Shinsegae International, related to the acquisition of the domestic retail business in South Korea. | ||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | |||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended(1) | Nine Months Ended(2) | ||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||||||||
Designated Cash Flow Hedges: | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
C - Inventory purchases | $ | 0.2 | $ | (1.3 | ) | $ | 9.6 | $ | 4 | ||||||||||||||||||||
CCS - Intercompany loans | — | 1.9 | — | (0.1 | ) | ||||||||||||||||||||||||
Total | $ | 0.2 | $ | 0.6 | $ | 9.6 | $ | 3.9 | |||||||||||||||||||||
(1) | For the three months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of $0.1 million and $1.0 million, respectively. | ||||||||||||||||||||||||||||
(2) | For the nine months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($5.1) million and ($2.2) million, respectively. | ||||||||||||||||||||||||||||
Amount of Net Gain Reclassified from Accumulated OCI into Income | |||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended(1) | Nine Months Ended(2) | ||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | Income Statement | |||||||||||||||||||||||||
Designated Cash Flow Hedges: | 2015 | 2014 | 2015 | 2014 | Classification | ||||||||||||||||||||||||
C - Inventory Purchases | $ | 2.6 | $ | 0.8 | $ | 4.4 | $ | 4.7 | Cost of sales | ||||||||||||||||||||
(1) | For the three months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($1.3) million and $0.3 million, respectively. | ||||||||||||||||||||||||||||
(2) | For the nine months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($2.3) million and ($2.8) million, respectively. | ||||||||||||||||||||||||||||
During the three and nine months ended March 28, 2015 and March 29, 2014, 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 expenses, resulted in an immaterial net impact to the Company's statement of operations. | |||||||||||||||||||||||||||||
The Company expects $6.0 million of net derivative gains included in AOCI at March 28, 2015 will be reclassified into earnings within the next 12 months. This amount will vary due to fluctuations in foreign currency exchange rates. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
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 condensed consolidated balance sheets as of March 28, 2015 and June 28, 2014: | ||||||||||||||||||||||||
28-Mar-15 | 28-Jun-14 | |||||||||||||||||||||||
Short-term | Long-term | Total | Short-term | Long-term | Total | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||||||
Government securities - U.S.(1) | $ | 51.8 | $ | 9.3 | $ | 61.1 | $ | 42 | $ | 55.3 | $ | 97.3 | ||||||||||||
Corporate debt securities - U.S.(1) | 97.1 | 65.8 | 162.9 | 25.4 | 144.9 | 170.3 | ||||||||||||||||||
Corporate debt securities - non-U.S.(1) | 72 | 45.9 | 117.9 | 34.6 | 98.8 | 133.4 | ||||||||||||||||||
Asset backed securities(2) | — | 0.2 | 0.2 | — | 1.1 | 1.1 | ||||||||||||||||||
Available-for-sale investments, total | $ | 220.9 | $ | 121.2 | $ | 342.1 | $ | 102 | $ | 300.1 | $ | 402.1 | ||||||||||||
Held to maturity: | ||||||||||||||||||||||||
Government securities - U.S.(3) | $ | — | $ | — | $ | — | $ | 18.2 | $ | — | $ | 18.2 | ||||||||||||
Corporate debt securities - U.S.(3) | 6.7 | — | 6.7 | 33.5 | — | 33.5 | ||||||||||||||||||
Corporate debt securities - non-U.S.(3) | 7.9 | — | 7.9 | 24.4 | — | 24.4 | ||||||||||||||||||
Commercial paper(3) | 3.7 | — | 3.7 | 23.5 | — | 23.5 | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Time deposits(4) | — | — | — | 75.1 | — | 75.1 | ||||||||||||||||||
Other(5) | — | 278.5 | 278.5 | — | 184.4 | 184.4 | ||||||||||||||||||
Total Investments | $ | 239.2 | $ | 399.7 | $ | 638.9 | $ | 276.7 | $ | 484.5 | $ | 761.2 | ||||||||||||
(1) | These securities have maturity dates between calendar years 2015 and 2017 and are recorded at fair value. | |||||||||||||||||||||||
(2) | The security matures during calendar year 2016. | |||||||||||||||||||||||
(3) | These securities have maturity dates of less than one year and are recorded at amortized cost which approximates fair value utilizing Level 2 information. | |||||||||||||||||||||||
(4) | These time deposits have original maturities greater than 3 months and are recorded at fair value. | |||||||||||||||||||||||
(5) | 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. As of March 28, 2015 and June 28, 2014, the Company had an equity method investment of $278.5 million and $181.1 million, respectively, in the Hudson Yards joint venture. The Hudson Yards joint venture is determined to be a variable interest entity 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 14, "Commitments and Contingencies," for further information. Furthermore, as of June 28, 2014, the Company had a cost method investment of $3.3 million in the Reed Krakoff business, which was written off during the third quarter of fiscal 2015. Refer to Note 4, "Transformation and Other Actions," for further information regarding the Reed Krakoff investment. | |||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities are presented below as of March 28, 2015 and June 28, 2014: | ||||||||||||||||||||||||
March 28, 2015 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Government securities - U.S. | $ | 61.1 | $ | — | $ | — | $ | 61.1 | ||||||||||||||||
Corporate debt securities - U.S. | 162.4 | 0.5 | — | 162.9 | ||||||||||||||||||||
Corporate debt securities - non-U.S. | 117.7 | 0.3 | (0.1 | ) | 117.9 | |||||||||||||||||||
Asset backed securities | 0.2 | — | — | 0.2 | ||||||||||||||||||||
Total | $ | 341.4 | $ | 0.8 | $ | (0.1 | ) | $ | 342.1 | |||||||||||||||
June 28, 2014 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Government securities - U.S. | $ | 97.2 | $ | 0.1 | $ | — | $ | 97.3 | ||||||||||||||||
Corporate debt securities - U.S. | 169.3 | 1 | — | 170.3 | ||||||||||||||||||||
Corporate debt securities - non-U.S. | 132.7 | 0.7 | — | 133.4 | ||||||||||||||||||||
Asset backed securities | 1.1 | — | — | 1.1 | ||||||||||||||||||||
Total | $ | 400.3 | $ | 1.8 | $ | — | $ | 402.1 | ||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
In April 2013, the Company entered into a joint venture agreement with Related Companies, L.P. to develop a new office tower in Manhattan in the Hudson Yards district. The formation of the Hudson Yards joint venture serves as a financing vehicle for the construction project. Construction of the new building has commenced, and upon expected completion of the office tower, the Company will retain a condominium interest serving as its new corporate headquarters. | |
During the three and nine months ended March 28, 2015, the Company invested $32.6 million and $97.4 million in the joint venture, respectively. Since the formation of the Hudson Yards joint venture, the Company has invested $278.5 million in the joint venture. | |
The Company expects to further invest approximately $250 million into the joint venture, with approximately $50 million estimated to be invested during the remainder of fiscal 2015, depending on construction progress. Substantially all of the investment for the joint venture will be made by the end of fiscal 2016. In addition to its investment in the joint venture, Coach is directly investing in a portion of the design and build-out of the new corporate headquarters. During the first nine months of fiscal 2015, $1.6 million was included in capital expenditures and the Company expects to incur approximately $190 million of capital expenditures over the remaining period of construction. | |
On January 5, 2015, the Company entered into the Stuart Weitzman Purchase Agreement with Stuart Weitzman Topco LLC and Stuart Weitzman Intermediate LLC, a wholly owned subsidiary of Topco. Subsequent to the end of the third quarter of fiscal 2015 (May 4, 2015), the acquisition was consummated. Refer to Note 5, "Acquisitions," for further information. | |
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 financial position, results of operations or cash flows. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | Segment Information | |||||||||||||||||||
The Company operates its business in 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 40 countries. | |||||||||||||||||||
Transformation-related charges incurred by the Company as described in Note 4, "Transformation and Other Actions," are included as corporate unallocated expenses. The following table summarizes segment performance for the three and nine months ended March 28, 2015 and March 29, 2014 (in millions): | ||||||||||||||||||||
North | International | Other(1) | Corporate | Total | ||||||||||||||||
America | Unallocated | |||||||||||||||||||
Three Months Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 493.2 | $ | 428.1 | $ | 8 | $ | — | $ | 929.3 | ||||||||||
Gross profit | 313.9 | 328.4 | 7.3 | 15.9 | 665.5 | |||||||||||||||
Operating income (loss) | 134.3 | 140.1 | 4.3 | (154.7 | ) | 124 | ||||||||||||||
Income (loss) before provision for income taxes | 134.3 | 140.1 | 4.3 | (155.9 | ) | 122.8 | ||||||||||||||
Depreciation and amortization expense(2) | 16.6 | 16.2 | — | 23.8 | 56.6 | |||||||||||||||
Additions to long-lived assets | 20.3 | 19.1 | — | 5.5 | 44.9 | |||||||||||||||
Three Months Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 647.9 | $ | 440.6 | $ | 11.1 | $ | — | $ | 1,099.60 | ||||||||||
Gross profit | 413 | 348 | 7.1 | 13.2 | 781.3 | |||||||||||||||
Operating income (loss) | 222 | 163.6 | 5.7 | (128.6 | ) | 262.7 | ||||||||||||||
Income (loss) before provision for income taxes | 222 | 163.6 | 5.7 | (130.6 | ) | 260.7 | ||||||||||||||
Depreciation and amortization expense | 17 | 14.4 | — | 13.8 | 45.2 | |||||||||||||||
Additions to long-lived assets | 27.2 | 12.7 | — | 11 | 50.9 | |||||||||||||||
Nine Months Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 1,911.50 | $ | 1,229.60 | $ | 46.4 | $ | — | $ | 3,187.50 | ||||||||||
Gross profit | 1,224.00 | 946.2 | 28.4 | 22.3 | 2,220.90 | |||||||||||||||
Operating income (loss) | 652.1 | 386.5 | 20.6 | (480.0 | ) | 579.2 | ||||||||||||||
Income (loss) before provision for income taxes | 652.1 | 386.5 | 20.6 | (480.1 | ) | 579.1 | ||||||||||||||
Depreciation and amortization expense(2) | 46.1 | 47.9 | — | 74.5 | 168.5 | |||||||||||||||
Additions to long-lived assets | 59.2 | 46 | — | 19.3 | 124.5 | |||||||||||||||
Nine Months Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 2,409.20 | $ | 1,230.20 | $ | 30.6 | $ | — | $ | 3,670.00 | ||||||||||
Gross profit | 1,551.00 | 971.5 | 23.4 | 44.7 | 2,590.60 | |||||||||||||||
Operating income (loss) | 926.1 | 434.8 | 19.8 | (360.4 | ) | 1,020.30 | ||||||||||||||
Income (loss) before provision for income taxes | 926.1 | 434.8 | 19.8 | (358.8 | ) | 1,021.90 | ||||||||||||||
Depreciation and amortization expense | 54.3 | 41.2 | — | 42.6 | 138.1 | |||||||||||||||
Additions to long-lived assets | 79.1 | 50.5 | — | 28 | 157.6 | |||||||||||||||
-1 | Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||||||||||
(2) | Depreciation and amortization expense includes $9.5 million and $31.3 million of transformation-related charges, for the three and nine months ended March 28, 2015, respectively. These charges are recorded as corporate unallocated expenses. | |||||||||||||||||||
The following is a summary of all costs not allocated in the determination of segment operating income performance: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
28-Mar-15 | 29-Mar-14 | March 28, | March 29, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(millions) | ||||||||||||||||||||
Inventory-related costs(1) | $ | 15.9 | $ | 13.2 | $ | 22.3 | $ | 44.7 | ||||||||||||
Advertising, marketing and design(2) | (62.2 | ) | (61.0 | ) | (179.6 | ) | (178.9 | ) | ||||||||||||
Administration and information systems(2)(3) | (92.9 | ) | (61.2 | ) | (272.2 | ) | (161.7 | ) | ||||||||||||
Distribution and customer service(2) | (15.5 | ) | (19.6 | ) | (50.5 | ) | (64.5 | ) | ||||||||||||
Total corporate unallocated costs | $ | (154.7 | ) | $ | (128.6 | ) | $ | (480.0 | ) | $ | (360.4 | ) | ||||||||
(1) | Inventory-related costs consist of production variances and transformation-related costs, and are recorded within cost of sales. During the quarter ended March 28, 2015 production variances were $15.9 million. There were no inventory-related transformation costs incurred during quarter. During the nine months ended March 28, 2015 production variances were $27.3 million and transformation-related costs were ($5.0) million. There were no transformation and/or other-related charges during the three and nine months ended March 29, 2014. | |||||||||||||||||||
(2) | Costs recorded within SG&A expenses. | |||||||||||||||||||
(3) | During the three and nine months ended March 28, 2015, transformation-related costs recorded within SG&A expenses were ($22.5) million and ($74.7) million, respectively. Furthermore, during the three and nine months ended March 28, 2015, acquisition-related expenses were $0.0 million and ($3.5) million, respectively. There was no transformation and/or other-related charges during the three and nine months ended March 29, 2014. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Mar. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
As described in Note 5, "Acquisitions," the Company consummated its acquisition of Stuart Weitzman Intermediate LLC on May 4, 2015. |
Basis_of_Presentation_and_Orga1
Basis of Presentation and Organization Basis of Presentation and Organization (Policies) | 9 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation |
These unaudited interim condensed consolidated financial statements present the consolidated financial position, income, comprehensive income and cash flows of the Company, including all entities in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Fiscal Period | Fiscal Periods |
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30. Fiscal 2015 will be a 52-week period. Fiscal 2014 ended on June 28, 2014 and was also a 52-week period ("fiscal 2014"). The third quarter of fiscal 2015 ended on March 28, 2015 and was a 13-week period. The third quarter of fiscal 2014 ended on March 29, 2014 and was also a 13-week period. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | |
Significant estimates inherent in the preparation of the condensed consolidated financial statements include reserves for customer returns and markdowns; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation awards and related estimated forfeiture rates; and reserves for restructuring, among others. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which modifies the presentation of debt issuance costs in financial statements. Under this new guidance, the Company will be required to present these costs in our condensed consolidated balance sheets as a direct deduction from the related debt liability, rather than the Company's current classification as a deferred asset within Other assets. The requirements of the new standard will become effective for fiscal years, and interim periods within those fiscal years (including retrospective application), beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. Early adoption is also permitted. The Company is currently evaluating this guidance and does not expect the application of this standard to have a material impact on the presentation of debt issuance costs within Coach's condensed consolidated balance sheets. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "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 are currently 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_and_Other_Actio1
Transformation and Other Actions (Tables) | 9 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Summary of Charges and Related Liabilities Under the Company's Transformation Plan | A summary of charges and related liabilities under the Company's Transformation Plan are as follows (in millions): | |||||||||||||||||||||||
Inventory-Related Charges(1) | Impairment(2) | Store-Related Costs(3) | Organizational Efficiency Costs(4) | Other(5) | Total | |||||||||||||||||||
Balance at June 29, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Fiscal 2014 charges | 82.2 | 35.5 | 12.2 | 1 | 0.6 | 131.5 | ||||||||||||||||||
Cash payments | — | — | — | — | — | — | ||||||||||||||||||
Non-cash adjustments | (66.8 | ) | (35.5 | ) | (6.7 | ) | — | — | (109.0 | ) | ||||||||||||||
Balance at June 28, 2014 | 15.4 | — | 5.5 | 1 | 0.6 | 22.5 | ||||||||||||||||||
Fiscal 2015 charges | 3 | — | 41.9 | 29.4 | 5.4 | 79.7 | ||||||||||||||||||
Cash payments | (15.1 | ) | — | (10.9 | ) | (18.3 | ) | (4.0 | ) | (48.3 | ) | |||||||||||||
Non-cash adjustments | (3.0 | ) | — | (31.3 | ) | (4.5 | ) | (0.1 | ) | (38.9 | ) | |||||||||||||
Balance at March 28, 2015 | $ | 0.3 | $ | — | $ | 5.2 | $ | 7.6 | $ | 1.9 | $ | 15 | ||||||||||||
(1) | 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. | |||||||||||||||||||||||
(2) | 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. | |||||||||||||||||||||||
(3) | Store-related costs, recorded within SG&A expenses, relate to store closure costs which include accelerated depreciation charges associated with store assets that the Company will no longer benefit from as a result of the Transformation Plan, as well as lease termination and store employee severance costs. | |||||||||||||||||||||||
(4) | Organizational efficiency charges, recorded within SG&A expenses, primarily relate to the severance and related costs of corporate employees. | |||||||||||||||||||||||
(5) | Other charges comprise of consulting costs and the write-down of certain assets that will not be placed into service by the Company, which are recorded within SG&A expenses and certain freight and handling costs incurred related to the destruction of inventory which are recorded within cost of sales. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||
Mar. 28, 2015 | ||||
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 (in millions): | |||
Total | ||||
Balance at June 28, 2014 | $ | 361.4 | ||
Foreign exchange impact | (45.8 | ) | ||
Balance at March 28, 2015 | $ | 315.6 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||
Schedule of Stockholders Equity | A reconciliation of stockholders' equity is presented below (in millions, except per share data): | ||||||||||||||||||||||
Shares of | Common Stock | Additional | Accumulated | Accumulated | Total | ||||||||||||||||||
Common | Paid-in- | Deficit | Other | Stockholders' | |||||||||||||||||||
Stock | Capital | Comprehensive | Equity | ||||||||||||||||||||
Loss | |||||||||||||||||||||||
Balance at June 29, 2013 | 281.9 | $ | 2.8 | $ | 2,520.50 | $ | (101.9 | ) | $ | (12.2 | ) | $ | 2,409.20 | ||||||||||
Net income | — | — | — | 706.1 | — | 706.1 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (4.1 | ) | (4.1 | ) | |||||||||||||||
Shares issued for stock options and employee benefit plans | 2.5 | 0.1 | 5.4 | — | — | 5.5 | |||||||||||||||||
Share-based compensation | — | — | 78.6 | — | — | 78.6 | |||||||||||||||||
Excess tax benefit from share-based compensation | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||
Repurchase and retirement of common stock | (10.2 | ) | (0.2 | ) | — | (524.7 | ) | — | (524.9 | ) | |||||||||||||
Dividends declared ($1.0125 per share) | — | — | — | (281.6 | ) | — | (281.6 | ) | |||||||||||||||
Balance at March 29, 2014 | 274.2 | $ | 2.7 | $ | 2,605.00 | $ | (202.1 | ) | $ | (16.3 | ) | $ | 2,389.30 | ||||||||||
Balance at June 28, 2014 | 274.4 | $ | 2.7 | $ | 2,646.10 | $ | (219.5 | ) | $ | (8.7 | ) | $ | 2,420.60 | ||||||||||
Net income | — | — | — | 390.7 | — | 390.7 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (65.6 | ) | (65.6 | ) | |||||||||||||||
Shares issued for stock options and employee benefit plans | 1.7 | 0.1 | 6.8 | — | — | 6.9 | |||||||||||||||||
Share-based compensation | — | — | 71.5 | — | — | 71.5 | |||||||||||||||||
Excess tax shortfall from share-based compensation | — | — | (4.7 | ) | — | — | (4.7 | ) | |||||||||||||||
Dividends declared ($1.0125 per share) | — | — | — | (279.1 | ) | — | (279.1 | ) | |||||||||||||||
Balance at March 28, 2015 | 276.1 | $ | 2.8 | $ | 2,719.70 | $ | (107.9 | ) | $ | (74.3 | ) | $ | 2,540.30 | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive (loss) income ("AOCI"), as of the dates indicated, are as follows (in millions): | ||||||||||||||||||||||
Unrealized | Unrealized | Cumulative | Other(2) | Total | |||||||||||||||||||
Gains (Losses) | (Losses) | Translation | |||||||||||||||||||||
on Cash | Gains | Adjustment | |||||||||||||||||||||
Flow | on Available- | ||||||||||||||||||||||
Hedges(1) | for-Sale | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||
Balances at June 29, 2013 | $ | 3.7 | $ | (1.3 | ) | $ | (11.6 | ) | $ | (3.0 | ) | $ | (12.2 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 3.9 | 2.8 | (7.0 | ) | — | (0.3 | ) | ||||||||||||||||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 4.7 | 0.1 | — | (1.0 | ) | 3.8 | |||||||||||||||||
Net current-period other comprehensive (loss) income | (0.8 | ) | 2.7 | (7.0 | ) | 1 | (4.1 | ) | |||||||||||||||
Balances at March 29, 2014 | $ | 2.9 | $ | 1.4 | $ | (18.6 | ) | $ | (2.0 | ) | $ | (16.3 | ) | ||||||||||
Balances at June 28, 2014 | $ | 0.6 | $ | 1.8 | $ | (9.2 | ) | $ | (1.9 | ) | $ | (8.7 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 9.6 | (1.1 | ) | (69.7 | ) | — | (61.2 | ) | |||||||||||||||
Less: gains reclassified from accumulated other comprehensive income to earnings | 4.4 | — | — | — | 4.4 | ||||||||||||||||||
Net current-period other comprehensive income (loss) | 5.2 | (1.1 | ) | (69.7 | ) | — | (65.6 | ) | |||||||||||||||
Balances at March 28, 2015 | $ | 5.8 | $ | 0.7 | $ | (78.9 | ) | $ | (1.9 | ) | $ | (74.3 | ) | ||||||||||
(1) | The ending balances of AOCI related to cash flow hedges are net of tax of ($3.2) million and ($1.8) million as of March 28, 2015 and March 29, 2014, respectively. The amounts reclassified from AOCI are net of tax of ($2.3) million and ($2.8) million as of March 28, 2015 and March 29, 2014, respectively. | ||||||||||||||||||||||
-2 | As of March 28, 2015 and March 29, 2014, Other represents the accumulated loss on the Company's minimum pension liability adjustment. The balances at March 28, 2015 and March 29, 2014 are net of tax of $1.5 million and $1.5 million, respectively. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Reconciliation of Weighted-average Shares Outstanding and Calculation of Basic and Diluted Net Income Per Share | The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted net income per share: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | 28-Mar-15 | March 29, | |||||||||||||
2015 | 2014 | 2014 | ||||||||||||||
(millions, except per share data) | ||||||||||||||||
Net income | $ | 88.1 | $ | 190.7 | $ | 390.7 | $ | 706.1 | ||||||||
Total weighted-average basic shares outstanding | 275.9 | 276.1 | 275.5 | 278.9 | ||||||||||||
Effect of dilutive securities | 1.5 | 2.7 | 1.3 | 2.7 | ||||||||||||
Total weighted-average diluted shares | 277.4 | 278.8 | 276.8 | 281.6 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.69 | $ | 1.42 | $ | 2.53 | ||||||||
Diluted | $ | 0.32 | $ | 0.68 | $ | 1.41 | $ | 2.51 | ||||||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table shows the total compensation cost and the related tax benefits recognized for share-based compensation plans in the condensed consolidated statements of income for the periods indicated: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, 2015(1) | March 29, | March 28, 2015(1) | March 29, | |||||||||||||
2014 | 2014(2) | |||||||||||||||
(millions) | ||||||||||||||||
Share-based compensation expense | $ | 24.4 | $ | 25.8 | $ | 71.5 | $ | 78.6 | ||||||||
Income tax benefit related to share-based compensation expense | 7.4 | 8 | 21.7 | 24.4 | ||||||||||||
(1) | During the three and nine months ended March 28, 2015, the Company incurred approximately $1.7 million and $4.5 million of share-based compensation expense, respectively, that are related to organizational efficiency costs under the Company's Transformation Plan primarily as a result of the accelerated vesting of certain awards. See Note 4, "Transformation and Other Actions," for more information. Approximately $0.6 million and $1.7 million of income tax benefit is associated with these actions for the three and nine months ended March 28, 2015, respectively. | |||||||||||||||
(2) | Approximately $9.8 million of share-based compensation expense (and approximately $3.8 million of income tax benefit) is related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity under the Coach stock option plans during the nine months ended March 28, 2015 is as follows: | |||||||||||||||
Number of | Weighted-Average | |||||||||||||||
Options | Exercise Price per Option | |||||||||||||||
Outstanding | ||||||||||||||||
(millions) | ||||||||||||||||
Outstanding at June 28, 2014 | 11.7 | $ | 44.21 | |||||||||||||
Granted | 4 | 36.26 | ||||||||||||||
Exercised | (0.8 | ) | 25.17 | |||||||||||||
Forfeited or expired | (0.9 | ) | 48.73 | |||||||||||||
Outstanding at March 28, 2015 | 14 | 42.71 | ||||||||||||||
Vested and expected to vest at March 28, 2015 | 13.8 | 42.74 | ||||||||||||||
Exercisable at March 28, 2015 | 8.3 | 43.33 | ||||||||||||||
Schedule of Nonvested Share Activity | A summary of RSU activity during the nine months ended March 28, 2015 is as follows: | |||||||||||||||
Number of | Weighted- | |||||||||||||||
Non-vested | Average Grant- | |||||||||||||||
RSUs | Date Fair Value | |||||||||||||||
per RSU | ||||||||||||||||
(millions) | ||||||||||||||||
Non-vested at June 28, 2014 | 3.2 | $ | 54.68 | |||||||||||||
Granted | 1.8 | 36.26 | ||||||||||||||
Vested | (1.3 | ) | 56.7 | |||||||||||||
Forfeited | (0.4 | ) | 48.64 | |||||||||||||
Non-vested at March 28, 2015 | 3.3 | 44.78 | ||||||||||||||
A summary of PRSU activity during the nine months ended March 28, 2015 is as follows: | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Non-vested | Average Grant- | |||||||||||||||
PRSUs | Date Fair Value | |||||||||||||||
per PRSU | ||||||||||||||||
(millions) | ||||||||||||||||
Non-vested at June 28, 2014 | 0.9 | $ | 44.6 | |||||||||||||
Granted | 0.4 | 36.28 | ||||||||||||||
Change due to performance condition achievement | (0.1 | ) | 54.67 | |||||||||||||
Vested(1) | — | 58.34 | ||||||||||||||
Forfeited(1) | — | 49.29 | ||||||||||||||
Non-vested at March 28, 2015 | 1.2 | 41.08 | ||||||||||||||
-1 | During the first nine months of fiscal 2015, less than 0.1 million PRSU's vested or forfeited, individually and in the aggregate. |
Debt_Debt_Tables
Debt Debt (Tables) | 9 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Summary of the Components of Outstanding Debt | The following table summarizes the components of the Company’s outstanding debt: | |||||||
March 28, | June 28, | |||||||
2015 | 2014 | |||||||
(millions) | ||||||||
Current Debt: | ||||||||
Term Loan | $ | 7.5 | $ | — | ||||
Revolving Facility | — | 140 | ||||||
Other | — | 0.5 | ||||||
Total Current Debt | $ | 7.5 | $ | 140.5 | ||||
Long-Term Debt: | ||||||||
Term Loan | $ | 292.5 | $ | — | ||||
4.250% Senior Notes | 600 | — | ||||||
Total Long-Term Debt | 892.5 | — | ||||||
Less: Unamortized Discount on 4.250% Senior Notes | (3.3 | ) | — | |||||
Total Long-Term Debt, net | $ | 889.2 | $ | — | ||||
Schedule of Loan Quarterly Installment Payments | The Term Loan will be repaid in quarterly installments beginning in September 2015 as follows: | |||||||
(in millions) | ||||||||
September 2015 through June 2018 | $ | 3.8 | ||||||
September 2018 through June 2019 | 7.5 | |||||||
September 2019 through December 2019 | 11.3 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | The following table shows the fair value measurements of the Company’s assets and liabilities at March 28, 2015 and June 28, 2014 (in millions): | |||||||||||||||
Level 1 | Level 2 | |||||||||||||||
March 28, | June 28, | March 28, | June 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 509.4 | $ | 1.2 | $ | 326.3 | $ | 45.1 | ||||||||
Short-term investments: | ||||||||||||||||
Time deposits(2) | — | — | — | 75.1 | ||||||||||||
Government securities - U.S.(2) | 51.8 | 42 | — | — | ||||||||||||
Corporate debt securities - U.S.(2) | — | — | 97.1 | 25.4 | ||||||||||||
Corporate debt securities - non U.S.(2) | — | — | 72 | 34.6 | ||||||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities(3) | — | — | 0.2 | 1.1 | ||||||||||||
Government securities - U.S.(3) | 9.3 | 55.3 | — | — | ||||||||||||
Corporate debt securities - U.S.(3) | — | — | 65.8 | 144.9 | ||||||||||||
Corporate debt securities - non U.S.(3) | — | — | 45.9 | 98.8 | ||||||||||||
Derivative Assets: | ||||||||||||||||
Zero-cost collar options(4) | — | — | 5.4 | 0.4 | ||||||||||||
Forward contracts and cross currency swaps(4) | — | — | 0.1 | 0.1 | ||||||||||||
Total | $ | 570.5 | $ | 98.5 | $ | 612.8 | $ | 425.5 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Zero-cost collar options(4) | $ | — | $ | — | $ | 0.4 | $ | 0.6 | ||||||||
Forward contracts and cross currency swaps(4) | — | — | — | 0.3 | ||||||||||||
Total | $ | — | $ | — | $ | 0.4 | $ | 0.9 | ||||||||
(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. | |||||||||||||||
(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) | 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. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables provide information related to the Company’s derivatives as of March 28, 2015 and June 28, 2014: | ||||||||||||||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
Designated Derivative Hedging Instruments(1) | March 28, | June 28, | Balance Sheet Classification | March 28, | June 28, | Balance Sheet Classification | March 28, | June 28, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
C - Inventory purchases | $ | 130.1 | $ | 90.2 | Other current assets | $ | 5.4 | $ | 0.4 | Accrued liabilities | $ | (0.4 | ) | $ | (0.6 | ) | |||||||||||||
CCS - Intercompany loans | — | 4.8 | Other current assets | — | 0.1 | — | — | — | |||||||||||||||||||||
FC - Intercompany loans | 21.1 | 8.4 | Other current assets | 0.1 | — | — | — | — | |||||||||||||||||||||
FC - Contractual obligations(2) | — | 4 | — | — | — | Accrued liabilities | — | (0.3 | ) | ||||||||||||||||||||
Total Hedges | $ | 151.2 | $ | 107.4 | $ | 5.5 | $ | 0.5 | $ | (0.4 | ) | $ | (0.9 | ) | |||||||||||||||
(1) | C =ero-cost Collars; CCS =ross Currency Swaps; FC =orward foreign currency exchange contracts | ||||||||||||||||||||||||||||
(2) | Contractual obligations at the end of fiscal 2014 consisted of a $4.0 million payment due to Shinsegae International, related to the acquisition of the domestic retail business in South Korea. | ||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | |||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended(1) | Nine Months Ended(2) | ||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||||||||
Designated Cash Flow Hedges: | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
C - Inventory purchases | $ | 0.2 | $ | (1.3 | ) | $ | 9.6 | $ | 4 | ||||||||||||||||||||
CCS - Intercompany loans | — | 1.9 | — | (0.1 | ) | ||||||||||||||||||||||||
Total | $ | 0.2 | $ | 0.6 | $ | 9.6 | $ | 3.9 | |||||||||||||||||||||
(1) | For the three months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of $0.1 million and $1.0 million, respectively. | ||||||||||||||||||||||||||||
(2) | For the nine months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($5.1) million and ($2.2) million, respectively. | ||||||||||||||||||||||||||||
Amount of Net Gain Reclassified from Accumulated OCI into Income | |||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended(1) | Nine Months Ended(2) | ||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | Income Statement | |||||||||||||||||||||||||
Designated Cash Flow Hedges: | 2015 | 2014 | 2015 | 2014 | Classification | ||||||||||||||||||||||||
C - Inventory Purchases | $ | 2.6 | $ | 0.8 | $ | 4.4 | $ | 4.7 | Cost of sales | ||||||||||||||||||||
(1) | For the three months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($1.3) million and $0.3 million, respectively. | ||||||||||||||||||||||||||||
(2) | For the nine months ended March 28, 2015 and March 29, 2014, the amounts above are net of tax of ($2.3) million and ($2.8) million, respectively. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
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 condensed consolidated balance sheets as of March 28, 2015 and June 28, 2014: | |||||||||||||||||||||||
28-Mar-15 | 28-Jun-14 | |||||||||||||||||||||||
Short-term | Long-term | Total | Short-term | Long-term | Total | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||||||
Government securities - U.S.(1) | $ | 51.8 | $ | 9.3 | $ | 61.1 | $ | 42 | $ | 55.3 | $ | 97.3 | ||||||||||||
Corporate debt securities - U.S.(1) | 97.1 | 65.8 | 162.9 | 25.4 | 144.9 | 170.3 | ||||||||||||||||||
Corporate debt securities - non-U.S.(1) | 72 | 45.9 | 117.9 | 34.6 | 98.8 | 133.4 | ||||||||||||||||||
Asset backed securities(2) | — | 0.2 | 0.2 | — | 1.1 | 1.1 | ||||||||||||||||||
Available-for-sale investments, total | $ | 220.9 | $ | 121.2 | $ | 342.1 | $ | 102 | $ | 300.1 | $ | 402.1 | ||||||||||||
Held to maturity: | ||||||||||||||||||||||||
Government securities - U.S.(3) | $ | — | $ | — | $ | — | $ | 18.2 | $ | — | $ | 18.2 | ||||||||||||
Corporate debt securities - U.S.(3) | 6.7 | — | 6.7 | 33.5 | — | 33.5 | ||||||||||||||||||
Corporate debt securities - non-U.S.(3) | 7.9 | — | 7.9 | 24.4 | — | 24.4 | ||||||||||||||||||
Commercial paper(3) | 3.7 | — | 3.7 | 23.5 | — | 23.5 | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Time deposits(4) | — | — | — | 75.1 | — | 75.1 | ||||||||||||||||||
Other(5) | — | 278.5 | 278.5 | — | 184.4 | 184.4 | ||||||||||||||||||
Total Investments | $ | 239.2 | $ | 399.7 | $ | 638.9 | $ | 276.7 | $ | 484.5 | $ | 761.2 | ||||||||||||
(1) | These securities have maturity dates between calendar years 2015 and 2017 and are recorded at fair value. | |||||||||||||||||||||||
(2) | The security matures during calendar year 2016. | |||||||||||||||||||||||
(3) | These securities have maturity dates of less than one year and are recorded at amortized cost which approximates fair value utilizing Level 2 information. | |||||||||||||||||||||||
(4) | These time deposits have original maturities greater than 3 months and are recorded at fair value. | |||||||||||||||||||||||
(5) | 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. As of March 28, 2015 and June 28, 2014, the Company had an equity method investment of $278.5 million and $181.1 million, respectively, in the Hudson Yards joint venture. The Hudson Yards joint venture is determined to be a variable interest entity 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 14, "Commitments and Contingencies," for further information. Furthermore, as of June 28, 2014, the Company had a cost method investment of $3.3 million in the Reed Krakoff business, which was written off during the third quarter of fiscal 2015. Refer to Note 4, "Transformation and Other Actions," for further information regarding the Reed Krakoff investment. | |||||||||||||||||||||||
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 as of March 28, 2015 and June 28, 2014: | |||||||||||||||||||||||
March 28, 2015 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Government securities - U.S. | $ | 61.1 | $ | — | $ | — | $ | 61.1 | ||||||||||||||||
Corporate debt securities - U.S. | 162.4 | 0.5 | — | 162.9 | ||||||||||||||||||||
Corporate debt securities - non-U.S. | 117.7 | 0.3 | (0.1 | ) | 117.9 | |||||||||||||||||||
Asset backed securities | 0.2 | — | — | 0.2 | ||||||||||||||||||||
Total | $ | 341.4 | $ | 0.8 | $ | (0.1 | ) | $ | 342.1 | |||||||||||||||
June 28, 2014 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Government securities - U.S. | $ | 97.2 | $ | 0.1 | $ | — | $ | 97.3 | ||||||||||||||||
Corporate debt securities - U.S. | 169.3 | 1 | — | 170.3 | ||||||||||||||||||||
Corporate debt securities - non-U.S. | 132.7 | 0.7 | — | 133.4 | ||||||||||||||||||||
Asset backed securities | 1.1 | — | — | 1.1 | ||||||||||||||||||||
Total | $ | 400.3 | $ | 1.8 | $ | — | $ | 402.1 | ||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Summary of Segment Information | The following table summarizes segment performance for the three and nine months ended March 28, 2015 and March 29, 2014 (in millions): | |||||||||||||||||||
North | International | Other(1) | Corporate | Total | ||||||||||||||||
America | Unallocated | |||||||||||||||||||
Three Months Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 493.2 | $ | 428.1 | $ | 8 | $ | — | $ | 929.3 | ||||||||||
Gross profit | 313.9 | 328.4 | 7.3 | 15.9 | 665.5 | |||||||||||||||
Operating income (loss) | 134.3 | 140.1 | 4.3 | (154.7 | ) | 124 | ||||||||||||||
Income (loss) before provision for income taxes | 134.3 | 140.1 | 4.3 | (155.9 | ) | 122.8 | ||||||||||||||
Depreciation and amortization expense(2) | 16.6 | 16.2 | — | 23.8 | 56.6 | |||||||||||||||
Additions to long-lived assets | 20.3 | 19.1 | — | 5.5 | 44.9 | |||||||||||||||
Three Months Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 647.9 | $ | 440.6 | $ | 11.1 | $ | — | $ | 1,099.60 | ||||||||||
Gross profit | 413 | 348 | 7.1 | 13.2 | 781.3 | |||||||||||||||
Operating income (loss) | 222 | 163.6 | 5.7 | (128.6 | ) | 262.7 | ||||||||||||||
Income (loss) before provision for income taxes | 222 | 163.6 | 5.7 | (130.6 | ) | 260.7 | ||||||||||||||
Depreciation and amortization expense | 17 | 14.4 | — | 13.8 | 45.2 | |||||||||||||||
Additions to long-lived assets | 27.2 | 12.7 | — | 11 | 50.9 | |||||||||||||||
Nine Months Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 1,911.50 | $ | 1,229.60 | $ | 46.4 | $ | — | $ | 3,187.50 | ||||||||||
Gross profit | 1,224.00 | 946.2 | 28.4 | 22.3 | 2,220.90 | |||||||||||||||
Operating income (loss) | 652.1 | 386.5 | 20.6 | (480.0 | ) | 579.2 | ||||||||||||||
Income (loss) before provision for income taxes | 652.1 | 386.5 | 20.6 | (480.1 | ) | 579.1 | ||||||||||||||
Depreciation and amortization expense(2) | 46.1 | 47.9 | — | 74.5 | 168.5 | |||||||||||||||
Additions to long-lived assets | 59.2 | 46 | — | 19.3 | 124.5 | |||||||||||||||
Nine Months Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 2,409.20 | $ | 1,230.20 | $ | 30.6 | $ | — | $ | 3,670.00 | ||||||||||
Gross profit | 1,551.00 | 971.5 | 23.4 | 44.7 | 2,590.60 | |||||||||||||||
Operating income (loss) | 926.1 | 434.8 | 19.8 | (360.4 | ) | 1,020.30 | ||||||||||||||
Income (loss) before provision for income taxes | 926.1 | 434.8 | 19.8 | (358.8 | ) | 1,021.90 | ||||||||||||||
Depreciation and amortization expense | 54.3 | 41.2 | — | 42.6 | 138.1 | |||||||||||||||
Additions to long-lived assets | 79.1 | 50.5 | — | 28 | 157.6 | |||||||||||||||
-1 | Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||||||||||
(2) | Depreciation and amortization expense includes $9.5 million and $31.3 million of transformation-related charges, for the three and nine months ended March 28, 2015, respectively. These charges are recorded as corporate unallocated expenses. | |||||||||||||||||||
Summary of Common Costs Not Allocated | The following is a summary of all costs not allocated in the determination of segment operating income performance: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
28-Mar-15 | 29-Mar-14 | March 28, | March 29, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(millions) | ||||||||||||||||||||
Inventory-related costs(1) | $ | 15.9 | $ | 13.2 | $ | 22.3 | $ | 44.7 | ||||||||||||
Advertising, marketing and design(2) | (62.2 | ) | (61.0 | ) | (179.6 | ) | (178.9 | ) | ||||||||||||
Administration and information systems(2)(3) | (92.9 | ) | (61.2 | ) | (272.2 | ) | (161.7 | ) | ||||||||||||
Distribution and customer service(2) | (15.5 | ) | (19.6 | ) | (50.5 | ) | (64.5 | ) | ||||||||||||
Total corporate unallocated costs | $ | (154.7 | ) | $ | (128.6 | ) | $ | (480.0 | ) | $ | (360.4 | ) | ||||||||
(1) | Inventory-related costs consist of production variances and transformation-related costs, and are recorded within cost of sales. During the quarter ended March 28, 2015 production variances were $15.9 million. There were no inventory-related transformation costs incurred during quarter. During the nine months ended March 28, 2015 production variances were $27.3 million and transformation-related costs were ($5.0) million. There were no transformation and/or other-related charges during the three and nine months ended March 29, 2014. | |||||||||||||||||||
(2) | Costs recorded within SG&A expenses. | |||||||||||||||||||
(3) | During the three and nine months ended March 28, 2015, transformation-related costs recorded within SG&A expenses were ($22.5) million and ($74.7) million, respectively. Furthermore, during the three and nine months ended March 28, 2015, acquisition-related expenses were $0.0 million and ($3.5) million, respectively. There was no transformation and/or other-related charges during the three and nine months ended March 29, 2014. |
Nature_of_Operations_Details
Nature of Operations (Details) | 9 Months Ended |
Mar. 28, 2015 | |
country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries with sales to wholesale customers and distributors (countries) | 40 |
Transformation_and_Other_Actio2
Transformation and Other Actions (Narrative) (Details) (2014 Transformation Plan, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Jun. 28, 2014 | Mar. 28, 2015 | Jun. 28, 2014 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs, expected to be incurred | $300 | $300 | ||
Restructuring charges | 22.5 | 131.5 | 79.7 | 131.5 |
Restructuring and transformation related charges, after tax | 12.1 | 53.2 | ||
Restructuring and transformation related charges per diluted share | $0.04 | $0.19 | ||
Restructuring and transformation expected cost remaining | 100 | 100 | ||
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 22.5 | 74.7 | ||
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $5 |
Transformation_and_Other_Actio3
Transformation and Other Actions Transformation and Other Actions (Details) (2014 Transformation Plan, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Jun. 28, 2014 | Mar. 28, 2015 | Jun. 28, 2014 |
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | $22.50 | $0 | ||
Restructuring charges | 22.5 | 131.5 | 79.7 | 131.5 |
Cash payments | -48.3 | 0 | ||
Non-cash adjustments | -38.9 | -109 | ||
Balance at end of period | 15 | 22.5 | 15 | 22.5 |
Inventory-Related Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 15.4 | 0 | ||
Restructuring charges | 3 | 82.2 | ||
Cash payments | -15.1 | 0 | ||
Non-cash adjustments | -3 | -66.8 | ||
Balance at end of period | 0.3 | 15.4 | 0.3 | 15.4 |
Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 0 | 0 | ||
Restructuring charges | 0 | 35.5 | ||
Cash payments | 0 | 0 | ||
Non-cash adjustments | 0 | -35.5 | ||
Balance at end of period | 0 | 0 | 0 | 0 |
Store-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 5.5 | 0 | ||
Restructuring charges | 41.9 | 12.2 | ||
Cash payments | -10.9 | 0 | ||
Non-cash adjustments | -31.3 | -6.7 | ||
Balance at end of period | 5.2 | 5.5 | 5.2 | 5.5 |
Organizational Efficiency Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 1 | 0 | ||
Restructuring charges | 29.4 | 1 | ||
Cash payments | -18.3 | 0 | ||
Non-cash adjustments | -4.5 | 0 | ||
Balance at end of period | 7.6 | 1 | 7.6 | 1 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 0.6 | 0 | ||
Restructuring charges | 5.4 | 0.6 | ||
Cash payments | -4 | 0 | ||
Non-cash adjustments | -0.1 | 0 | ||
Balance at end of period | $1.90 | $0.60 | $1.90 | $0.60 |
Transformation_and_Other_Actio4
Transformation and Other Actions - Sale of Reed Krakoff Business (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 28, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Loss on disposition of business | $2.70 | |
Reed Krakoff | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost method investments | $3.30 | $3.30 |
Acquisitions_Fiscal_2015_Detai
Acquisitions Fiscal 2015 (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 28, 2015 | 4-May-15 |
Business Acquisition [Line Items] | |||
Acquisition-related expenses | $0 | $3.50 | |
Stuart Weitzman Intermediate LLC | |||
Business Acquisition [Line Items] | |||
Acquisition-related expenses | 0 | 3.5 | |
Scenario, Forecast | Stuart Weitzman Intermediate LLC | |||
Business Acquisition [Line Items] | |||
Cash paid in business acquisition | 530 | ||
Maximum amount of annual earnout | 14.7 | ||
Contingent consideration, term | 3 years | ||
Maximum contingent consideration payable (received) | $44 | ||
Purchase agreement, material breach curing period | 20 days |
Acquisitions_Fiscal_2014_Detai
Acquisitions Fiscal 2014 (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jul. 01, 2013 | Mar. 28, 2015 |
Business Acquisition [Line Items] | ||
Ownership percentage | 43.00% | |
European Joint Venture | ||
Business Acquisition [Line Items] | ||
Ownership percentage | 100.00% | |
Percentage of domestic retail businesses acquired | 50.00% | |
Number of retail locations (stores) | 18 | |
Aggregate purchase prices, net of cash acquired | $15.10 | |
Loan forgiven | 18 | |
Purchase price allocation, goodwill | $14.80 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Change in Carrying Value of Goodwill) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Jun. 28, 2014 |
28-Jun-14 | $361.40 | |
28-Mar-15 | 315.6 | 361.4 |
International | ||
28-Jun-14 | 361.4 | |
Foreign exchange impact | -45.8 | |
28-Mar-15 | $315.60 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Narrative) (Details) (Trademarks, USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Trademarks | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets not subject to amortization | $9.80 | $9.80 |
Stockholders_Equity_Stockholde
Stockholders' Equity (Stockholders' Equity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Beginning balance | $2,420.60 | $2,409.20 | ||
Net income | 88.1 | 190.7 | 390.7 | 706.1 |
Other comprehensive loss | -4 | 8 | -65.6 | -4.1 |
Shares issued for stock options and employee benefit plans | 6.9 | 5.5 | ||
Share-based compensation | 71.5 | 78.6 | ||
Excess tax benefit from share-based compensation | -4.7 | 0.5 | ||
Repurchase and retirement of common stock | -3.6 | -10.2 | ||
Repurchase and retirement of common stock | -174.9 | -524.9 | ||
Dividends declared | -279.1 | -281.6 | ||
Cash dividends declared per common share (USD per share) | $0.34 | $0.34 | $1.01 | $1.01 |
Ending balance | 2,540.30 | 2,389.30 | 2,540.30 | 2,389.30 |
Common Stock | ||||
Beginning balance (shares) | 274.4 | 281.9 | ||
Beginning balance | 2.7 | 2.8 | ||
Shares issued for stock options and employee benefit plans | 1.7 | 2.5 | ||
Shares issued for stock options and employee benefit plans | 0.1 | 0.1 | ||
Repurchase and retirement of common stock | -10.2 | |||
Repurchase and retirement of common stock | -0.2 | |||
Ending balance (shares) | 276.1 | 274.2 | 276.1 | 274.2 |
Ending balance | 2.8 | 2.7 | 2.8 | 2.7 |
Additional Paid-in- Capital | ||||
Beginning balance | 2,646.10 | 2,520.50 | ||
Shares issued for stock options and employee benefit plans | 6.8 | 5.4 | ||
Share-based compensation | 71.5 | 78.6 | ||
Excess tax benefit from share-based compensation | -4.7 | 0.5 | ||
Ending balance | 2,719.70 | 2,605 | 2,719.70 | 2,605 |
Accumulated Deficit | ||||
Beginning balance | -219.5 | -101.9 | ||
Net income | 390.7 | 706.1 | ||
Repurchase and retirement of common stock | -524.7 | |||
Dividends declared | -279.1 | -281.6 | ||
Ending balance | -107.9 | -202.1 | -107.9 | -202.1 |
Accumulated Other Comprehensive Loss | ||||
Beginning balance | -8.7 | -12.2 | ||
Other comprehensive loss | -65.6 | -4.1 | ||
Ending balance | ($74.30) | ($16.30) | ($74.30) | ($16.30) |
Stockholders_Equity_Stock_Repu
Stockholders' Equity Stock Repurchase (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 28, 2015 |
Stockholders' Equity Note [Abstract] | |||
Common stock repurchased and retired, value | $174.90 | $524.90 | |
Repurchase and retirement of common stock | 3.6 | 10.2 | |
Common stock repurchased and retired, average cost per share | $47.99 | $51.27 | |
Stock repurchase program, remaining amount authorized for repurchase | $836.70 |
Stockholders_Equity_Accumulate
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Accumulated other comprehensive (loss) income, beginning balance | ($8.70) | ($12.20) | ||
Other comprehensive income (loss) before reclassifications | -61.2 | -0.3 | ||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 4.4 | 3.8 | ||
Other comprehensive (loss) income, net of tax | -4 | 8 | -65.6 | -4.1 |
Accumulated other comprehensive (loss) income, ending balance | -74.3 | -16.3 | -74.3 | -16.3 |
Unrealized Gains (Losses) on Cash Flow Hedges, tax | 34.7 | 70 | 188.4 | 315.8 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Unrealized Gains (Losses) on Cash Flow Hedges, tax | -2.3 | -2.8 | ||
Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Accumulated other comprehensive (loss) income, beginning balance | 0.6 | 3.7 | ||
Other comprehensive income (loss) before reclassifications | 9.6 | 3.9 | ||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 4.4 | 4.7 | ||
Other comprehensive (loss) income, net of tax | 5.2 | -0.8 | ||
Accumulated other comprehensive (loss) income, ending balance | 5.8 | 2.9 | 5.8 | 2.9 |
Unrealized (Losses) Gains on Available- for-Sale Securities | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Accumulated other comprehensive (loss) income, beginning balance | 1.8 | -1.3 | ||
Other comprehensive income (loss) before reclassifications | -1.1 | 2.8 | ||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 0 | 0.1 | ||
Other comprehensive (loss) income, net of tax | -1.1 | 2.7 | ||
Accumulated other comprehensive (loss) income, ending balance | 0.7 | 1.4 | 0.7 | 1.4 |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Accumulated other comprehensive (loss) income, beginning balance | -9.2 | -11.6 | ||
Other comprehensive income (loss) before reclassifications | -69.7 | -7 | ||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 0 | 0 | ||
Other comprehensive (loss) income, net of tax | -69.7 | -7 | ||
Accumulated other comprehensive (loss) income, ending balance | -78.9 | -18.6 | -78.9 | -18.6 |
Other | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Accumulated other comprehensive (loss) income, beginning balance | -1.9 | -3 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Less: gains (losses) reclassified from accumulated other comprehensive income to earnings | 0 | -1 | ||
Other comprehensive (loss) income, net of tax | 0 | 1 | ||
Accumulated other comprehensive (loss) income, ending balance | -1.9 | -2 | -1.9 | -2 |
Unrealized Gains (Losses) on Cash Flow Hedges, tax | 1.5 | 1.5 | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss Net of Tax [Abstract] | ||||
Other comprehensive (loss) income, net of tax | -65.6 | -4.1 | ||
Unrealized Gains (Losses) on Cash Flow Hedges, tax | ($3.20) | ($1.80) |
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 | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||||
Net income | $88.10 | $190.70 | $390.70 | $706.10 |
Total weighted-average basic shares (shares) | 275.9 | 276.1 | 275.5 | 278.9 |
Effect of dilutive securities (shares) | 1.5 | 2.7 | 1.3 | 2.7 |
Total weighted-average diluted shares (shares) | 277.4 | 278.8 | 276.8 | 281.6 |
Net income per share: | ||||
Basic (USD per share) | $0.32 | $0.69 | $1.42 | $2.53 |
Diluted (USD per share) | $0.32 | $0.68 | $1.41 | $2.51 |
Earnings_Per_Share_AntiDilutiv
Earnings Per Share (Anti-Dilutive Impact on Diluted Earnings per Share) (Details) | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Options to purchase shares of common stock excluded from the computation of diluted earnings per share | 6.9 | 6 |
Sharebased_Compensation_Total_
Share-based Compensation (Total Compensation Cost and Related Tax Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $24.40 | $25.80 | $71.50 | $78.60 |
Income tax benefit related to share-based compensation expense | 7.4 | 8 | 21.7 | 24.4 |
2014 Transformation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1.7 | 4.5 | ||
Income tax benefit related to share-based compensation expense | 0.6 | 1.7 | ||
Sale of Reed Krakoff Business; Restructuring and Transformation | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 9.8 | |||
Income tax benefit related to share-based compensation expense | $3.80 |
Sharebased_Compensation_Summar
Share-based Compensation (Summary of Option Activity) (Details) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 |
Number of Options Outstanding | |
Beginning balance (shares) | 11.7 |
Granted (shares) | 4 |
Exercised (shares) | -0.8 |
Forfeited or expired (shares) | -0.9 |
Ending balance (shares) | 14 |
Vested and expected to vest (shares) | 13.8 |
Exercisable (shares) | 8.3 |
Weighted-Average Exercise Price per Option | |
Beginning balance (USD per share) | $44.21 |
Granted (USD per share) | $36.26 |
Exercised (USD per share) | $25.17 |
Forfeited or expired (USD per share) | $48.73 |
Ending balance (USD per share) | $42.71 |
Vested and expected to vest (USD per share) | $42.74 |
Exercisable (USD per share) | $43.33 |
Sharebased_Compensation_Narrat
Share-based Compensation - (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Jun. 28, 2014 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Awards that are based on performance criteria | 14 | 11.7 | |
Stock Options | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Total unrecognized compensation cost related to non-vested stock options | $28.90 | ||
Options outstanding, weighted average remaining contractual term | 1 year 1 month | ||
Weighted-average grant-date fair value of options granted | $6.41 | $9.94 | |
Total intrinsic value of options exercised | 9.4 | 26.1 | |
Total cash received from option exercises | 19.9 | 42.5 | |
Actual tax benefit realized for the tax deductions from these option exercises | 3.6 | 9.7 | |
Restricted Stock Unit Awards ("RSU") [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Actual tax benefit realized for the tax deductions from these option exercises | 19.9 | 33.1 | |
Performance-based Restricted Stock Unit Awards (PRSU) | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Weighted-average grant-date fair value of options granted | $36.28 | $32.29 | |
Total unrecognized compensation cost related to non-vested awards | 19 | ||
Total fair value of shares vested | 0.7 | 23.1 | |
Expected term (years) | 1 year 2 months | ||
Service-based Restricted Stock Units | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Weighted-average grant-date fair value of options granted | $36.26 | $53.09 | |
Total unrecognized compensation cost related to non-vested awards | 82.3 | ||
Total unrecognized compensation costs related to non-vested awards, weighted average recognition period | 1 year 0 months | ||
Total fair value of shares vested | $45.50 | $76.90 | |
Total Stockholder Return Performance Restricted Stock Units | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Awards that are based on performance criteria | 0.8 |
Sharebased_Compensation_Summar1
Share-based Compensation (Summary of Non-vested Service-Based Restricted Stock Unit Activity) (Details) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 |
Service-based Restricted Stock Units | |
Number of Non-vested Options | |
Beginning balance (shares) | 3.2 |
Granted (shares) | 1.8 |
Vested less than 0.1 million (shares) | -1.3 |
Forfeited less than 0.1 million (shares) | -0.4 |
Ending balance (shares) | 3.3 |
Weighted- Average Grant- Date Fair Value | |
Beginning balance (USD per share) | $54.68 |
Granted (USD per share) | $36.26 |
Vested (USD per share) | $56.70 |
Forfeited (USD per share) | $48.64 |
Ending balance (USD per share) | $44.78 |
Performance-based Restricted Stock Unit Awards (PRSU) | |
Number of Non-vested Options | |
Beginning balance (shares) | 0.9 |
Granted (shares) | 0.4 |
Change due to performance condition achievement | -0.1 |
Vested less than 0.1 million (shares) | -0.1 |
Forfeited less than 0.1 million (shares) | -0.1 |
Ending balance (shares) | 1.2 |
Weighted- Average Grant- Date Fair Value | |
Beginning balance (USD per share) | $44.60 |
Granted (USD per share) | $36.28 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments OtherThan Options Changed Due To Performance Condition In Period Weighted Average Grant Date Fair Value | $54.67 |
Vested (USD per share) | $58.34 |
Forfeited (USD per share) | $49.29 |
Ending balance (USD per share) | $41.08 |
Debt_Summary_of_Debt_Details
Debt Summary of Debt (Details) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Current Debt: | ||
Current debt | $7.50 | $140.50 |
Long-Term Debt: | ||
Long-term debt | 892.5 | 0 |
Less: Unamortized Discount on 4.250% Senior Notes | -3.3 | 0 |
Total Long-Term Debt, net | 889.2 | 0 |
Term Loan | ||
Current Debt: | ||
Current debt | 7.5 | 0 |
Long-Term Debt: | ||
Long-term debt | 292.5 | 0 |
Revolving Facility | ||
Current Debt: | ||
Current debt | 0 | 140 |
Other | ||
Current Debt: | ||
Current debt | 0 | 0.5 |
Senior Notes | 4.250% Senior Notes | ||
Long-Term Debt: | ||
Long-term debt | $600 | $0 |
Debt_Narrative_Details
Debt (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Jun. 28, 2014 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | |
USD ($) | USD ($) | USD ($) | USD ($) | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Jp Morgan Chase Bank Na | Japan | Japan | Japan | Japan | Coach Shanghai Limited | Coach Shanghai Limited | Senior Notes | Senior Notes | Senior Notes | Senior Notes | |
USD ($) | USD ($) | Federal Funds Rate | London Interbank Offered Rate (LIBOR) | USD ($) | JPY (¥) | Minimum | Maximum | USD ($) | CNY | Senior Unsecured Term Loan [Member] | Senior Unsecured Term Loan [Member] | 4.250% Senior Notes | 4.250% Senior Notes | |||||
Tokyo Interbank Rate | Tokyo Interbank Rate | USD ($) | USD ($) | USD ($) | Adjusted Treasury Rate | |||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest expense | $2,600,000 | $700,000 | $4,000,000 | $1,500,000 | ||||||||||||||
Credit facility, maximum borrowing capacity | 700,000,000 | 44,000,000 | 5,300,000,000 | 10,000,000 | 63,000,000 | |||||||||||||
Debt instrument, term | 5 years | |||||||||||||||||
Debt instrument, face amount | 300,000,000 | 300,000,000 | 600,000,000 | |||||||||||||||
Debt instrument, periodic payment, range 1 | 3,800,000 | |||||||||||||||||
Debt instrument, periodic payment, range 2 | 7,500,000 | |||||||||||||||||
Debt instrument, periodic payment, range 3 | 11,300,000 | |||||||||||||||||
Repayment in 2020 | 202,500,000 | 202,500,000 | ||||||||||||||||
Line of credit facility, interest rate at period end | 1.40% | 1.40% | ||||||||||||||||
Line of credit facility, commitment fee percentage | 0.13% | |||||||||||||||||
Interest rate, stated percentage | 4.25% | |||||||||||||||||
Debt instrument, issuance amount, percent of par | 99.45% | |||||||||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||||||||||
Long-term debt, maturities, redemption period before maturity | 90 days | |||||||||||||||||
Variable rate | 0.50% | 1.00% | 0.25% | 0.30% | 0.35% | |||||||||||||
Long-term debt, fair value | 608,000,000 | |||||||||||||||||
Letters of credit amount outstanding | $0 | $0 | $0 | |||||||||||||||
Commitment fee, current (basis points) | 0.13% |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements of Assets and Liabilities) (Details) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $509.40 | $1.20 |
Total assets | 570.5 | 98.5 |
Total liability | 0 | 0 |
Level 1 | Time Deposits | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Government Securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 51.8 | 42 |
Level 1 | Government Securities | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 9.3 | 55.3 |
Level 1 | Corporate debt securities - U.S. | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Corporate debt securities - U.S. | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Corporate debt securities - non-U.S. | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Corporate debt securities - non-U.S. | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Asset backed securities | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Zero-Cost Collar Options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Forward Contracts and Cross Currency Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 326.3 | 45.1 |
Total assets | 612.8 | 425.5 |
Total liability | 0.4 | 0.9 |
Level 2 | Time Deposits | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 75.1 |
Level 2 | Government Securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 2 | Government Securities | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 2 | Corporate debt securities - U.S. | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 97.1 | 25.4 |
Level 2 | Corporate debt securities - U.S. | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 65.8 | 144.9 |
Level 2 | Corporate debt securities - non-U.S. | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 72 | 34.6 |
Level 2 | Corporate debt securities - non-U.S. | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 45.9 | 98.8 |
Level 2 | Asset backed securities | Long-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0.2 | 1.1 |
Level 2 | Zero-Cost Collar Options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5.4 | 0.4 |
Derivative liabilities | 0.4 | 0.6 |
Level 2 | Forward Contracts and Cross Currency Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.1 | 0.1 |
Derivative liabilities | $0 | $0.30 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Fair Value of Derivatives Designated as Hedging Instruments) (Details) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Contractual Obligation | $4 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 151.2 | 107.4 |
Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5.5 | 0.5 |
Designated as Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | -0.4 | -0.9 |
Designated as Hedging Instrument | Zero-Cost Collars | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 130.1 | 90.2 |
Designated as Hedging Instrument | Zero-Cost Collars | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5.4 | 0.4 |
Designated as Hedging Instrument | Zero-Cost Collars | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | -0.4 | -0.6 |
Designated as Hedging Instrument | Currency Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 0 | 4.8 |
Designated as Hedging Instrument | Currency Swap | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0.1 |
Designated as Hedging Instrument | Currency Swap | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument | Intercompany Loans | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 21.1 | 8.4 |
Designated as Hedging Instrument | Intercompany Loans | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.1 | 0 |
Designated as Hedging Instrument | Intercompany Loans | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument | Contractual Obligations | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 0 | 4 |
Designated as Hedging Instrument | Contractual Obligations | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Designated as Hedging Instrument | Contractual Obligations | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $0 | ($0.30) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Amount of Gain or Loss Reclassified from Accumulated OCI into Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | $0.20 | $0.60 | $9.60 | $3.90 |
Derivative instruments gain/loss recognized in other comprehensive income effective portion deferred taxes | 0.1 | 1 | -5.1 | -2.2 |
Derivative instruments gain/loss reclassified from accumulated OCI into income effective portion, tax | -1.3 | 0.3 | -2.3 | -2.8 |
Expected amount of net derivative gains included in accumulated other comprehensive income that will be reclassified into earnings within the next 12 months | 6 | 6 | ||
Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 2.6 | 0.8 | 4.4 | 4.7 |
Zero-Cost Collars | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | 0.2 | -1.3 | 9.6 | 4 |
Forward Contracts and Cross Currency Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | $0 | $1.90 | $0 | ($0.10) |
Investments_Summary_of_Investm
Investments (Summary of Investments) (Details) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | $239.20 | $276.70 |
Long-term | 399.7 | 484.5 |
Total | 638.9 | 761.2 |
Available-for-sale investments: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 220.9 | 102 |
Long-term | 121.2 | 300.1 |
Total | 342.1 | 402.1 |
Available-for-sale investments: | Government securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 51.8 | 42 |
Long-term | 9.3 | 55.3 |
Total | 61.1 | 97.3 |
Available-for-sale investments: | Corporate debt securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 97.1 | 25.4 |
Long-term | 65.8 | 144.9 |
Total | 162.9 | 170.3 |
Available-for-sale investments: | Corporate debt securities - non-U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 72 | 34.6 |
Long-term | 45.9 | 98.8 |
Total | 117.9 | 133.4 |
Available-for-sale investments: | Asset backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 0 | 0 |
Long-term | 0.2 | 1.1 |
Total | 0.2 | 1.1 |
Held to maturity: | Government securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 0 | 18.2 |
Long-term | 0 | 0 |
Total | 0 | 18.2 |
Held to maturity: | Corporate debt securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 6.7 | 33.5 |
Long-term | 0 | 0 |
Total | 6.7 | 33.5 |
Held to maturity: | Corporate debt securities - non-U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 7.9 | 24.4 |
Long-term | 0 | 0 |
Total | 7.9 | 24.4 |
Held to maturity: | Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 3.7 | 23.5 |
Long-term | 0 | 0 |
Total | 3.7 | 23.5 |
Other: | Time Deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 0 | 75.1 |
Long-term | 0 | 0 |
Total | 0 | 75.1 |
Other: | Other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term | 0 | 0 |
Long-term | 278.5 | 184.4 |
Total | $278.50 | $184.40 |
Investments_Summary_of_Investm1
Investments (Summary of Investments Footnote) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Jun. 28, 2014 | Sep. 28, 2013 |
Schedule of Available-for-sale Securities [Line Items] | |||
Equity method investment, ownership percentage | 43.00% | ||
Reed Krakoff | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost method investments | $3.30 | $3.30 | |
Hudson Yards | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Equity method investments | 278.5 | $181.10 | |
Minimum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Time deposit, maturity period | 3 months |
Investments_Availablefor_Sale_
Investments Available-for Sale Securities (Details) (USD $) | Mar. 28, 2015 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $341.40 | $400.30 |
Gross Unrealized Gains | 0.8 | 1.8 |
Gross Unrealized Losses | -0.1 | 0 |
Estimated Fair Value | 342.1 | 402.1 |
Government securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61.1 | 97.2 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 61.1 | 97.3 |
Corporate debt securities - U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 162.4 | 169.3 |
Gross Unrealized Gains | 0.5 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 162.9 | 170.3 |
Corporate debt securities - non-U.S. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 117.7 | 132.7 |
Gross Unrealized Gains | 0.3 | 0.7 |
Gross Unrealized Losses | -0.1 | 0 |
Estimated Fair Value | 117.9 | 133.4 |
Asset backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0.2 | 1.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $0.20 | $1.10 |
Commitments_and_Contingencies_
Commitments and Contingencies - (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 29, 2014 | Jun. 28, 2014 |
Commitments and Contingencies Disclosure [Line Items] | ||||
Amount invested in joint venture during the period | $32.60 | $97.40 | ||
Increase in capital expenditures | 124.5 | 157.6 | ||
Hudson Yards | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Equity method investments | 278.5 | 278.5 | 181.1 | |
Joint venture agreement, expected investment amount | 250 | 250 | ||
Increase in capital expenditures | 1.6 | |||
Expected capital expenditures incurred | 190 | 190 | ||
Hudson Yards | Minimum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Joint venture agreement, additional expected investment in current fiscal year | $50 | $50 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 9 Months Ended |
Mar. 28, 2015 | |
segment | |
store | |
Segment Reporting [Abstract] | |
Operating segments | 5 |
Reportable segments | 2 |
Sales to wholesale customers, number of countries in which entity operates | 40 |
Segment_Information_Summary_of
Segment Information (Summary of Segment Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Segment Reporting Information [Line Items] | ||||
Net sales | $929.30 | $1,099.60 | $3,187.50 | $3,670 |
Gross profit | 665.5 | 781.3 | 2,220.90 | 2,590.60 |
Operating income (loss) | 124 | 262.7 | 579.2 | 1,020.30 |
Income (loss) before provision for income taxes | 122.8 | 260.7 | 579.1 | 1,021.90 |
Depreciation and amortization expense | 56.6 | 45.2 | 168.5 | 138.1 |
Additions to long-lived assets | 44.9 | 50.9 | 124.5 | 157.6 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 493.2 | 647.9 | 1,911.50 | 2,409.20 |
Gross profit | 313.9 | 413 | 1,224 | 1,551 |
Operating income (loss) | 134.3 | 222 | 652.1 | 926.1 |
Income (loss) before provision for income taxes | 134.3 | 222 | 652.1 | 926.1 |
Depreciation and amortization expense | 16.6 | 17 | 46.1 | 54.3 |
Additions to long-lived assets | 20.3 | 27.2 | 59.2 | 79.1 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 428.1 | 440.6 | 1,229.60 | 1,230.20 |
Gross profit | 328.4 | 348 | 946.2 | 971.5 |
Operating income (loss) | 140.1 | 163.6 | 386.5 | 434.8 |
Income (loss) before provision for income taxes | 140.1 | 163.6 | 386.5 | 434.8 |
Depreciation and amortization expense | 16.2 | 14.4 | 47.9 | 41.2 |
Additions to long-lived assets | 19.1 | 12.7 | 46 | 50.5 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 8 | 11.1 | 46.4 | 30.6 |
Gross profit | 7.3 | 7.1 | 28.4 | 23.4 |
Operating income (loss) | 4.3 | 5.7 | 20.6 | 19.8 |
Income (loss) before provision for income taxes | 4.3 | 5.7 | 20.6 | 19.8 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
Additions to long-lived assets | 0 | 0 | 0 | 0 |
Corporate Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Gross profit | 15.9 | 13.2 | 22.3 | 44.7 |
Operating income (loss) | -154.7 | -128.6 | -480 | -360.4 |
Income (loss) before provision for income taxes | -155.9 | -130.6 | -480.1 | -358.8 |
Depreciation and amortization expense | 23.8 | 13.8 | 74.5 | 42.6 |
Additions to long-lived assets | 5.5 | 11 | 19.3 | 28 |
Transformation-related charges | $9.50 | $31.30 |
Segment_Information_Summary_of1
Segment Information (Summary of Common Costs Not Allocated) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | $124 | $262.70 | $579.20 | $1,020.30 |
Production Variances | 15.9 | 27.3 | ||
Transformation and other-related charges related to inventory | 0 | -5 | 0 | |
Transformation and other-related costs related to administration and information systems | -22.5 | 0 | -74.7 | 0 |
Acquisition-related expenses | 0 | -3.5 | ||
Corporate Unallocated | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Inventory-related costs | 15.9 | 13.2 | 22.3 | 44.7 |
Advertising, marketing and design | -62.2 | -61 | -179.6 | -178.9 |
Administration and information systems | -92.9 | -61.2 | -272.2 | -161.7 |
Distribution and customer service | -15.5 | -19.6 | -50.5 | -64.5 |
Operating income | ($154.70) | ($128.60) | ($480) | ($360.40) |