Tapestry (TPR) 10-Q 5 May 10 2010 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	9 Months Ended Mar. 27, 2010	Apr. 23, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-27
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q3
Entity Registrant Name	COACH INC
Entity Central Index Key	0001116132
Current Fiscal Year End Date	--07-03
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		305,105,043

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	Mar. 27, 2010	Jun. 27, 2009
ASSETS
Cash and cash equivalents	$702,778	$800,362
Short-term investments	204,878
Trade accounts receivable, less allowances of $5,976 and $6,347, respectively	118,147	108,707
Inventories	306,673	326,148
Deferred income taxes	76,870	49,476
Other current assets	100,738	111,716
Total current assets	1,510,084	1,396,409
Long-term investments	6,000	6,000
Property and equipment, net	544,365	592,982
Goodwill	291,029	283,387
Other assets	290,509	285,558
Total assets	2,641,987	2,564,336
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	111,194	103,029
Accrued liabilities	439,304	348,619
Revolving credit facilities		7,496
Current portion of long-term debt	742	508
Total current liabilities	551,240	459,652
Long-term debt	24,245	25,072
Other liabilities	403,109	383,570
Total liabilities	978,594	868,294
See note on commitments and contingencies
Stockholders' Equity:
Preferred stock: (authorized 25,000,000 shares; $0.01 par value) none issued
Common stock: (authorized 1,000,000,000 shares; $0.01 par value) issued and outstanding - 304,170,723 and 318,006,466 shares, respectively	3,042	3,180
Additional paid-in-capital	1,374,181	1,189,060
Retained earnings	269,083	499,951
Accumulated other comprehensive income	17,087	3,851
Total stockholders' equity	1,663,393	1,696,042
Total liabilities and stockholders' equity	$2,641,987	$2,564,336

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Share data	Mar. 27, 2010	Jun. 27, 2009
Allowance for Doubtful Accounts Receivable, Current	$5,976	$6,347
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Par Value	0.01	0.01
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common Stock, Par Value	0.01	0.01
Common Stock, Shares, Issued	304,170,723	318,006,466
Common Stock, Shares, Outstanding	304,170,723	318,006,466

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 27, 2010	3 Months Ended Mar. 28, 2009	9 Months Ended Mar. 27, 2010	9 Months Ended Mar. 28, 2009
Net sales	$830,669	$739,939	$2,657,111	$2,452,724
Cost of sales	215,094	214,876	720,419	677,432
Gross profit	615,575	525,063	1,936,692	1,775,292
Selling, general and administrative expenses	366,453	339,686	1,083,486	1,008,066
Operating income	249,122	185,377	853,206	767,226
Interest income (expense), net	104	(121)	(380)	3,057
Income before provision for income taxes	249,226	185,256	852,826	770,283
Provision for income taxes	91,590	70,397	313,413	292,707
Net income	$157,636	$114,859	$539,413	$477,576
Net income per share
Basic	0.51	0.36	1.71	1.47
Diluted	0.5	0.36	1.69	1.46
Shares used in computing net income per share
Basic	309,249	320,163	314,734	325,481
Diluted	313,960	321,355	318,555	327,102

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands	9 Months Ended Mar. 27, 2010	9 Months Ended Mar. 28, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$539,413	$477,576
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	94,011	91,823
Provision for bad debt	1,030	1,987
Share-based compensation	58,942	49,656
Excess tax benefit from share-based compensation	(19,274)	(1,157)
Deferred income taxes	(30,060)	658
Other, net	(3,199)	7,195
Changes in operating assets and liabilities:
Increase in trade accounts receivable	(8,965)	(17,809)
Decrease (increase) in inventories	21,723	(33,615)
(Increase) decrease in other assets	(3,158)	12,529
Increase (decrease) in accounts payable	8,641	(70,580)
Increase in accrued liabilities	117,955	23,759
Increase (decrease) in other liabilities	32,293	(3,066)
Net cash provided by operating activities	809,352	538,956
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of distributor	(1,200)	(14,507)
Purchases of property and equipment	(51,620)	(111,460)
Purchase of corporate headquarters building		(103,300)
Purchases of investments	(204,878)
Net cash used in investing activities	(257,698)	(229,267)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend payment	(71,455)
Repurchase of common stock	(700,000)	(453,786)
Repayment of long-term debt	(594)	(285)
(Repayments) borrowings of revolving credit facilities	(7,496)	1,896
Proceeds from share-based awards, net	106,965	1,703
Excess tax benefit from share-based compensation	19,274	1,157
Net cash used in financing activities	(653,306)	(449,315)
Effect of changes in foreign exchange rates on cash and cash equivalents	4,068	(8,012)
Decrease in cash and cash equivalents	(97,584)	(147,638)
Cash and cash equivalents at beginning of period	800,362	698,905
Cash and cash equivalents at end of period	$702,778	$551,267

Basis of Presentation and Organ

Basis of Presentation and Organization
	9 Months Ended Mar. 27, 2010
Basis of Presentation and Organization	1. Basis of Presentation and Organization The accompanying unaudited condensed consolidated financial statements include the accounts of Coach, Inc. ("Coach" or the "Company") and all 100% owned subsidiaries. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from this report as is permitted by SEC rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not 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 27, 2009 ("fiscal 2009"). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial condition, results of operations and changes in cash flows of the Company for the interim periods presented. The results of operations for the quarter ended March 27, 2010 are not necessarily indicative of results to be expected for the entire fiscal year, which will end on July 3, 2010 ("fiscal 2010"). The Company evaluated subsequent events through the date these financial statements were issued, and they are disclosed in the Subsequent Event note.

Stockholders' Equity

Stockholders' Equity
	9 Months Ended Mar. 27, 2010
Stockholders' Equity	2. Stockholders' Equity Activity for the nine months ended March 27, 2010 and March 28, 2009 in the accounts of Stockholders' Equity is summarized below: Accumulated Common Additional Other Total Stockholders' Paid-in- Retained Comprehensive Stockholders' Equity Capital Earnings Income/(Loss) Equity Balances at June 28, 2008 $ 3,367 $ 1,115,041 $ 353,122 $ 18,845 $ 1,490,375 Net income - - 477,576 - 477,576 Unrealized losses on cash flow hedging derivatives, net of tax - - - (9,109 ) (9,109 ) Translation adjustments - - - (15,497 ) (15,497 ) Comprehensive income 452,970 Shares issued for stock options and employee benefit plans 10 1,693 - - 1,703 Share-based compensation - 49,656 - - 49,656 Excess tax benefit from share-based compensation - 1,157 - - 1,157 Repurchase of common stock (202 ) - (453,584 ) - (453,786 ) Adjustment to adopt SFAS 158 measurement date provision, net of tax - - (183 ) 22 (161 ) Balances at March 28, 2009 $ 3,175 $ 1,167,547 $ 376,931 $ (5,739 ) $ 1,541,914 Balances at June 27, 2009 $ 3,180 $ 1,189,060 $ 499,951 $ 3,851 $ 1,696,042 Net income - - 539,413 - 539,413 Unrealized gains on cash flow hedging derivatives, net of tax - - - 990 990 Translation adjustments - - - 12,246 12,246 Comprehensive income 552,649 Shares issued for stock options and employee benefit plans 60 106,905 - - 106,965 Share-based compensation - 58,942 - - 58,942 Excess tax benefit from share-based compensation - 19,274 - - 19,274 Repurchase of common stock (198 ) - (699,802 ) - (700,000 ) Dividend declared - - (70,479 ) - (70,479 ) Balances at March 27, 2010 $ 3,042 $ 1,374,181 $ 269,083 $ 17,087 $ 1,663,393 The components of accumulated other comprehensive income, as of the dates indicated, are as follows: March 27, June 27, 2010 2009 Cumulative translation adjustments $ 19,843 $ 7,597 Cumulative effect of previously adopted accounting pronouncements, net of taxes (3,411 ) (3,411 ) Unrealized gains/(losses) on cash flow hedging derivatives, net of taxes of $446 and $(245) 655 (335 ) Accumulated other comprehensive income $ 17,087 $ 3,851

Earnings Per Share

Earnings Per Share
	9 Months Ended Mar. 27, 2010
Earnings Per Share	3. 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 employee benefit and share awards. The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted net income per share: Quarter Ended Nine Months Ended March 27, March 28, March 27, March 28, 2010 2009 2010 2009 Net income $ 157,636 $ 114,859 $ 539,413 $ 477,576 Total weighted-average basic shares 309,249 320,163 314,734 325,481 Dilutive securities: Employee benefit and share award plans 1,453 60 1,148 187 Stock option programs 3,258 1,132 2,673 1,434 Total weighted-average diluted shares 313,960 321,355 318,555 327,102 Net income per share: Basic $ 0.51 $ 0.36 $ 1.71 $ 1.47 Diluted $ 0.50 $ 0.36 $ 1.69 $ 1.46 At March 27, 2010, options to purchase 4,306 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options' exercise prices, ranging from $36.86 to $51.56, were greater than the average market price of the common shares. At March 28, 2009, options to purchase 27,554 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options' exercise prices, ranging from $17.22 to $51.56, were greater than the average market price of the common shares.

Share-Based Compensation

Share-Based Compensation
	9 Months Ended Mar. 27, 2010
Share-Based Compensation	4. Share-Based Compensation The following table shows the total compensation cost charged against income for share-based compensation plans and the related tax benefits recognized in the income statement for the periods indicated: Quarter Ended Nine Months Ended March 27, March 28, March 27, March 28, 2010 2009 2010 2009 Share-based compensation expense $ 20,054 $ 17,684 $ 58,942 $ 49,656 Income tax benefit related to share-based compensation expense 7,032 6,282 20,654 17,641 Stock Options A summary of option activity under the Coach stock option plans as of March 27, 2010 and changes during the period then ended is as follows: Number of Options Outstanding Weighted-Average Exercise Price Outstanding at June 27, 2009 31,287 $ 29.12 Granted 3,769 29.79 Exercised (5,483 ) 20.39 Forfeited or expired (919 ) 33.56 Outstanding at March 27, 2010 28,654 30.74 Vested and expected to vest at March 27, 2010 28,598 30.75 Exercisable at March 27, 2010 18,843 30.83 At March 27, 2010, $57,083 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.0 years. The weighted-average grant-date fair value of individual options granted during the first nine months of fiscal 2010 and fiscal 2009 was $9.66 and $8.37, respectively. The total intrinsic value of options exercised during the first nine months of fiscal 2010 and fiscal 2009 was $80,765 and $6,882, respectively. The total cash received from these option exercises was $111,805 and $5,828, respectively, and the actual tax benefit realized from these option exercises was $31,031 and $2,708, respectively. Share Unit Awards The grant-date fair value of each Coach share unit award is equal to the fair value of Coach stock at the grant date. The following table summarizes information about non-vested share units as of and for the period ended March 27, 2010: Number of Non-vested Share Units Weighted-Average Grant-Date Fair Value Non-vested at June 27, 2009 2,583 $ 29.36 Granted 2,064 29.92 Vested (678 ) 31.55 Forfeited (174 ) 31.66 Non-vested at March 27, 2010 3,795 29.16 At March 27, 2010, $66,721 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.2 years. The weighted-average grant-date fair value of share awards granted during the first nine months of fiscal 2010 and fiscal 2009 was $29.92 and $24.67, respectively. The total fair value of shares vested during the first nine months of fiscal 2010 and fiscal 2009 was $20,574 and $15,437, respectively.

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Mar. 27, 2010
Fair Value Measurements	5. Fair Value Measurements The Company adopted the provisions of the Accounting Standards Codification ("ASC") 820-10, "Fair Value Measurements and Disclosures," related to financial assets and liabilities in the first quarter of fiscal 2009. During the first quarter of fiscal 2010, the Company adopted the provisions of the standard related to non-financial assets and liabilities measured at fair value on a non-recurring basis with no material impact on our consolidated financial statements. In accordance with ASC 820-10, the Company categorized 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. Coach currently does not have any Level 1 financial 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 27, 2010 and March 28, 2009: Level 2 Level 3 March 27, March 28, March 27, March 28, 2010 2009 2010 2009 Assets: Long-term investment - auction rate security (a) $ - $ - $ 6,000 $ 6,000 Derivative assets - zero-cost collar options (b) 896 5 - - Total $ 896 $ 5 $ 6,000 $ 6,000 Liabilities: Derivative liabilities - zero-cost collar options (b) $ 492 $ 2,353 $ - $ - Derivative liabilities - cross-currency swap (c) - - 45,017 28,252 Total $ 492 $ 2,353 $ 45,017 $ 28,252 (a) The fair value of the security is determined using a model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. (b) The Company enters into zero-cost collar options to manage its exposure to foreign currency exchange rate fluctuations resulting from Coach Japan's and Coach Canada's U.S. dollar-denominated inventory purchases. The fair value of these cash flow 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. (c) The Company is a party to a cross-currency swap transaction in order to manage its exposure to foreign currency exchange rate fluctuations resulting from Coach Japan's U.S. dollar-denominated fixed rate intercompany loan. The fair value of this cash flow hedge is primarily based

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Mar. 27, 2010
Commitments and Contingencies	6. Commitments and Contingencies At March 27, 2010, the Company had letters of credit outstanding totaling $137,017. The letters of credit, which expire at various dates through 2013, primarily collateralize the Company's obligation to third parties for the purchase of inventory. 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.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	9 Months Ended Mar. 27, 2010
Derivative Instruments and Hedging Activities	7. Derivative Instruments and Hedging Activities Substantially all purchases and sales involving international parties are denominated in U.S. dollars, which limits the Company's exposure to foreign currency exchange rate fluctuations. However, the Company is exposed to market risk from foreign currency exchange risk related to Coach Japan's and Coach Canada's U.S. dollar-denominated inventory purchases and Coach Japan's $231,000 U.S. dollar-denominated fixed rate intercompany loan. 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. Coach Japan and Coach Canada enter into certain foreign currency derivative contracts, primarily zero-cost collar options, to manage the exchange rate risk related to its inventory purchases. As of March 27, 2010 and June 27, 2009, $61,641 and $32,041 of foreign currency forward contracts were outstanding, respectively. These contracts have durations no greater than 12 months. To manage the exchange rate risk related to its intercompany loan, Coach Japan entered into a cross currency swap transaction on July 1, 2005. The terms of the cross currency swap transaction include an exchange of a U.S. dollar fixed interest rate for a yen fixed interest rate and an exchange of yen and U.S. dollar-based principals when the loan matures in 2010. The Company's derivative instruments are designated as cash flow hedges. The effective portion of gains or losses on the derivative instruments are reported as a component of other comprehensive income and reclassified into earnings in the same periods during which the hedged transaction affects earnings. The ineffective portion of gains or losses on the derivative instruments are recognized in current earnings and are included within net cash provided by operating activities. The following tables provide information related to the Company's derivatives: Derivatives Designated as Balance Sheet Fair Value Hedging Instruments Classification At March 27, 2010 At June 27, 2010 Foreign exchange contracts Other Current Assets $ 896 $ - Total derivative assets $ 896 $ - Foreign exchange contracts Accrued Liabilities $ 45,509 $ 37,061 Total derivative liabilities $ 45,509 $ 37,061 Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Quarter Ended Nine Months Ended Derivatives in Cash Flow March 27, March 28, March 27, March 28, Hedging Relationships 2010 2009 2010 2009 Foreign exchange contracts $ (970 ) $ 2,868 $ (2,050 ) $ (9,664 ) Total $ (970 ) $ 2,868 $ (2,050 ) $ (9,664 ) For the third quarter of fiscal 2010 and fiscal 2009, the amounts above are net of tax of $(704) and $1,963, respectively. For the first nine months of fiscal 2010 and fiscal 2009, the amou

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	9 Months Ended Mar. 27, 2010
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets The change in the carrying value of goodwill for the nine month period ended March 27, 2010, by operating segment, is as follows: Direct-to- Consumer Indirect Total Goodwill balance at June 27, 2009 $ 281,871 $ 1,516 $ 283,387 Foreign exchange impact 7,642 - 7,642 Goodwill balance at March 27, 2010 $ 289,513 $ 1,516 $ 291,029 At March 27, 2010 and June 27, 2009, intangible assets not subject to amortization consisted of $9,788 of trademarks.

Segment Information

Segment Information
	9 Months Ended Mar. 27, 2010
Segment Information	9. Segment Information The Company operates its business in two reportable segments: Direct-to-Consumer and Indirect. The Company's reportable segments represent channels of distribution that offer similar merchandise and service and utilize similar marketing strategies. Sales of Coach products through Company-operated stores in North America, Japan, Hong Kong, Macau and mainland China, the Internet and the Coach catalog constitute the Direct-to-Consumer segment. The Indirect segment includes sales to wholesale customers in over 20 countries, including the United States, and royalties earned on licensed product. In deciding how to allocate resources and assess performance, the Company's executive officers regularly evaluate the net sales and operating income of these segments. Operating income is the gross margin of the segment less direct expenses of the segment. Unallocated corporate expenses include production variances, general marketing, administration and information systems expenses, as well as distribution and consumer service expenses. Direct-to- Corporate Consumer Indirect Unallocated Total Quarter Ended March 27, 2010 Net sales $ 726,151 $ 104,518 $ - $ 830,669 Operating income (loss) 281,903 57,825 (90,606 ) 249,122 Income (loss) before provision for income taxes 281,903 57,825 (90,502 ) 249,226 Depreciation and amortization expense 22,087 2,616 7,875 32,578 Additions to long-lived assets 5,547 3,898 6,172 15,617 Quarter Ended March 28, 2009 Net sales $ 634,033 $ 105,906 $ - $ 739,939 Operating income (loss) 211,153 56,381 (82,157 ) 185,377 Income (loss) before provision for income taxes 211,153 56,381 (82,278 ) 185,256 Depreciation and amortization expense 19,694 2,483 8,554 30,731 Additions to long-lived assets 18,487 783 3,784 23,054 Nine Months Ended March 27, 2010 Net sales $ 2,313,981 $ 343,130 $ - $ 2,657,111 Operating income (loss) 923,556 195,247 (265,597 ) 853,206 Income (loss) before provision for income taxes 923,556 195,247 (265,977 ) 852,826 Depreciation and amortization expense 62,511 7,213 24,287 94,011 Additions to long-lived assets 23,513 5,053 16,411 44,977 Nine Months Ended March 28, 2009 Net sales $ 2,043,790 $ 408,934 $ - $ 2,452,724 Operating income (loss) 762,206 239,022 (234,002 ) 767,226 Income (loss) before provision for income taxes 762,206 239,022 (230,945 ) 770,283 Depreciation and amortization expense 62,095 7,490 22,238 91,823 Additions to long-lived assets 53,711 5,061 151,464 210,236 The following is a summary of the common costs not alloca

Stock Repurchase Program

Stock Repurchase Program
	9 Months Ended Mar. 27, 2010
Stock Repurchase Program	10. 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 the open market. Repurchased shares of common stock become authorized but unissued shares and may be issued in the future for general corporate and other purposes. The Company may terminate or limit the stock repurchase program at any time. For the third quarter of fiscal 2010 and fiscal 2009, the Company repurchased and retired 11,261 and 3,577 shares of common stock at an average cost of $35.52 and $13.98 per share, respectively. For the first nine months of fiscal 2010 and fiscal 2009, the Company repurchased and retired 19,826 and 20,160 shares of common stock at an average cost of $35.31 and $22.51 per share, respectively. As of March 27, 2010, Coach had $9,625 remaining in the stock repurchase program.

Recent Accounting Developments

Recent Accounting Developments
	9 Months Ended Mar. 27, 2010
Recent Accounting Developments	11. Recent Accounting Developments ASC 805-10, "Business Combinations," requires an acquiring entity to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. ASC 805-10 changed the accounting treatment for certain specific acquisition-related items, including expensing acquisition-related costs as incurred, valuing non-controlling interests (minority interests) at fair value at the acquisition date, and expensing restructuring costs associated with an acquired business. ASC 805-10 also includes expanded disclosure requirements. ASC 805-10 is applied prospectively to business combinations for which the acquisition date is on or after June 28, 2009. The Company has not had a business combination since adoption of this standard. ASC 715-20, "Compensation Retirement Benefits," provides guidance on employer's disclosures about plan assets of a defined benefit pension or other postretirement plan. ASC 715-20 is effective for fiscal years ending after December 15, 2009. The Company does not expect the application of this ASC to have a material impact on the Company's consolidated financial statements. ASC 105, "Generally Accepted Accounting Principles," states that the Financial Accounting Standards Board ("FASB") Accounting Standards Codification is the source of authoritative U.S. Generally Accepted Accounting Principles ("GAAP") recognized by the FASB. The GAAP hierarchy was modified to include only two levels of GAAP: authoritative and nonauthoritative. This standard was effective for Coach's financial statements beginning with the interim period ending September 26, 2009. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. ASC 820-10, "Fair Value Measurements and Disclosures," defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. The Company adopted the provisions of the standard related to financial assets and liabilities in the first quarter of fiscal 2009. During the first quarter of fiscal 2010, the Company adopted the provisions of the standard related to non-financial assets and liabilities measured at fair value on a non-recurring basis with no material impact on our consolidated financial statements. For further information about the fair value measurements of our financial assets and liabilities see note on Fair Value Measurements. ASC 820-10 was amended in January 2010 to require additional disclosures related to recurring and nonrecurring fair value measurements. The guidance requires disclosure of transfers of assets and liabilities between Levels 1 and 2 of the fair value hierarchy, including the reasons and the timing of the transfers and information on purchases, sales, issuances, and settlements on a gross basis in the reconciliation of the assets and liabilities measured under Level 3 of the fair value hierarchy. The guidance was effective for the Company beginning on December 27, 2009 and its adoption did not have a material impact on our consolidated fin

Subsequent Event

Subsequent Event
	9 Months Ended Mar. 27, 2010
Subsequent Event	12. Subsequent Event In April 2010, Coach's Board of Directors ("Board") voted to increase the Company's cash dividend to an expected annual rate of $0.60 per share starting with the dividend to be paid in July 2010. Concurrently, the Board authorized a new $1,000,000 share repurchase program.