Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 28, 2013 | Oct. 25, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'COH | ' |
Entity Registrant Name | 'COACH INC | ' |
Entity Central Index Key | '0001116132 | ' |
Current Fiscal Year End Date | '--06-28 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 280,462,835 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $714,617 | $1,062,785 |
Short-term investments | 140,128 | 72,106 |
Trade accounts receivable, less allowances of $1,003 and $1,138, respectively | 177,975 | 175,477 |
Inventories | 637,214 | 524,706 |
Deferred income taxes | 109,147 | 111,118 |
Prepaid expenses | 46,227 | 37,956 |
Other current assets | 46,757 | 86,799 |
Total current assets | 1,872,065 | 2,070,947 |
Property and equipment, net | 720,891 | 694,771 |
Long-term investments | 316,642 | 197,340 |
Goodwill | 372,876 | 345,039 |
Other assets | 204,916 | 223,800 |
Total assets | 3,487,390 | 3,531,897 |
Current Liabilities: | ' | ' |
Accounts payable | 164,844 | 178,857 |
Accrued liabilities | 542,084 | 543,153 |
Current portion of long-term debt | 500 | 500 |
Total current liabilities | 707,428 | 722,510 |
Long-term debt | 485 | 485 |
Other liabilities | 400,906 | 399,744 |
Total liabilities | 1,108,819 | 1,122,739 |
See note on commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock: (authorized 25,000 shares; $0.01 par value) none issued | ' | ' |
Common stock: (authorized 1,000,000 shares; $0.01 par value) issued and outstanding - 280,423 and 281,902 shares, respectively | 2,804 | 2,819 |
Additional paid-in-capital | 2,536,290 | 2,520,469 |
Accumulated deficit | -153,758 | -101,884 |
Accumulated other comprehensive income | -6,765 | -12,246 |
Total stockholders' equity | 2,378,571 | 2,409,158 |
Total liabilities and stockholders' equity | $3,487,390 | $3,531,897 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowances | $1,003 | $1,138 |
Preferred stock, authorized | 25,000,000 | 25,000,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, issued | 0 | 0 |
Common stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, issued | 280,423,000 | 281,902,000 |
Common stock, outstanding | 280,423,000 | 281,902,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Income Statement [Abstract] | ' | ' |
Net sales | $1,150,760 | $1,161,350 |
Cost of sales | 324,187 | 316,182 |
Gross profit | 826,573 | 845,168 |
Selling, general and administrative expenses | 504,939 | 513,451 |
Operating income | 321,634 | 331,717 |
Interest income, net | 1,622 | 36 |
Other income (expense) | 6 | -2,072 |
Income before provision for income taxes | 323,262 | 329,681 |
Provision for income taxes | 105,379 | 108,300 |
Net income | $217,883 | $221,381 |
Net income per share | ' | ' |
Basic | $0.77 | $0.78 |
Diluted | $0.77 | $0.77 |
Shares used in computing net income per share | ' | ' |
Basic | 281,433 | 284,569 |
Diluted | 284,513 | 288,497 |
Cash dividends declared per common share | $0.34 | $0.30 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net income | $217,883 | $221,381 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized losses on cash flow hedging derivatives, net of tax of $1,053 and $2,114 | -5,084 | -3,959 |
Unrealized gains on available-for-sale investments | 64 | ' |
Foreign currency translation adjustments | 10,501 | 12,168 |
Other comprehensive income, net of tax | 5,481 | 8,209 |
Comprehensive income | $223,364 | $229,590 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Unrealized gains on cash flow hedging derivatives, tax | $1,053 | $2,114 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $217,883 | $221,381 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 44,964 | 36,104 |
Provision for bad debt | 190 | -1,534 |
Share-based compensation | 17,506 | 28,533 |
Excess tax benefit from share-based compensation | -942 | -5,491 |
Deferred income taxes | 16,380 | 7,858 |
Non-cash sale of Reed Krakoff business; restructuring and transformation | -851 | ' |
Other, net | -1,986 | 3,921 |
Changes in operating assets and liabilities: | ' | ' |
Increase in trade accounts receivable | -601 | -4,277 |
Increase in inventories | -104,836 | -71,523 |
Increase in other assets | -23,065 | -23,290 |
Decrease in accounts payable | -19,943 | -22,964 |
Increase in accrued liabilities | 19,221 | 21,902 |
Increase in other liabilities | 180 | 11,554 |
Net cash provided by operating activities | 164,100 | 202,174 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of interest in equity method investment | -18,208 | ' |
Acquisitions net of cash acquired | -1,984 | -45,444 |
Purchases of property and equipment | -45,900 | -56,290 |
Repayments by third parties | 500 | ' |
Purchases of investments | -165,789 | ' |
Net cash used in investing activities | -231,381 | -101,734 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Dividend payments | -94,998 | -85,766 |
Repurchase of common stock | -174,955 | -175,000 |
Repayment of long-term debt | ' | -96 |
Proceeds from share-based awards | 24,527 | 23,303 |
Taxes paid to net settle share-based awards | -36,970 | -25,617 |
Excess tax benefit from share-based compensation | 942 | 5,491 |
Net cash used in financing activities | -281,454 | -257,685 |
Effect of exchange rate changes on cash and cash equivalents | 567 | 785 |
Decrease in cash and cash equivalents | -348,168 | -156,460 |
Cash and cash equivalents at beginning of period | 1,062,785 | 917,215 |
Cash and cash equivalents at end of period | $714,617 | $760,755 |
Basis_of_Presentation_and_Orga
Basis of Presentation and Organization | 3 Months Ended |
Sep. 28, 2013 | |
Basis of Presentation and Organization [Abstract] | ' |
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 29, 2013 (“fiscal 2013”). | |
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 position, results of operations, comprehensive income and cash flows of the Company for the interim periods presented. The results of operations for the quarter ended September 28, 2013 are not necessarily indicative of results to be expected for the entire fiscal year, which will end on June 28, 2014 (“fiscal 2014”). | |
Sale_of_Reed_Krakoff_Business_
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges | 3 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges [Abstract] | ' | ||||||
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges | ' | ||||||
2. Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges | |||||||
On August 30, 2013, the Company sold the Reed Krakoff business, involving the sale of the equity interests of Reed Krakoff LLC and certain assets, including the Reed Krakoff brand name and related intellectual property rights, to Reed Krakoff International LLC (“Buyer”). The sale was pursuant to the Asset Purchase and Sale Agreement dated July 29, 2013 (the “Purchase Agreement”) with Buyer and Reed Krakoff (“Krakoff”). Coach received a deminimus amount of cash and convertible preferred membership interests (the “Convertible Preferred Units”) representing 8.0% of Buyer’s issued and outstanding Convertible Preferred Units and initial equity value immediately following such issuance. Coach recorded a cost method investment of $3,261, included in Long-term investments in the condensed consolidated balance sheet at September 28, 2013. | |||||||
Concurrent with the Closing under the Purchase Agreement, the parties executed certain ancillary agreements including a transition services agreement between Coach and Buyer for up to nine months. | |||||||
In connection with the Purchase Agreement, Mr. Krakoff’s resignation from Coach and the closing of the sale, Mr. Krakoff waived his right to receive compensation, salary, bonuses, equity vesting and certain other benefits. The Company recorded a loss of $2,683 during the first quarter of fiscal 2014 related to the sale, which is recorded in selling, general and administrative expenses on the condensed consolidated statement of income. | |||||||
In fourth quarter of fiscal 2013, the Company recorded restructuring and transformation related charges of $53,202, primarily related to our North America segment. Coach substantially completed its reduction in workforce related to this restructuring during the first quarter of fiscal 2014. | |||||||
A summary of outstanding liabilities and related charges are as follows: | |||||||
Severance and | Impairment & Other | Total | |||||
Related Costs | |||||||
Liability as of June 29, 2013 | $ 27,879 | $ 83 | $ 27,962 | ||||
(Income) expense | -1,732 | 1,903 | 171 | ||||
Non-cash charges | -345 | -1,822 | -2,167 | ||||
Cash payments and settlements | -17,944 | -83 | -18,027 | ||||
Liability as of September 28, 2013 | $ 7,858 | $ 81 | $ 7,939 | ||||
The liabilities outstanding at September 28, 2013 are anticipated to be substantially paid in fiscal 2014. | |||||||
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 28, 2013 | |
Acquisitions [Abstract] | ' |
Acquisitions | ' |
3. Acquisitions | |
Coach became the 100% owner of its European joint venture by purchasing Hackett Limited’s 50% interest in the joint venture on July 1, 2013, 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 purchase price consisted of cash payments of approximately $15,105 and the forgiveness of a loan from Coach to Hackett Limited of approximately $18,019. The cash payments were made in installments with $7,893 paid in fiscal 2014 offset by cash acquired as part of the acquisition of $3,453. The remaining cash payment of $1,775 is due during the second quarter of fiscal 2014. Unaudited pro forma information related to this acquisition is not included, as the impact of this transaction is not material to the consolidated results of the Company. The allocation of the purchase price of the acquisition is expected to be finalized later this year. The preliminary purchase price allocation resulted in goodwill of $21,745. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||
Sep. 28, 2013 | ||||
Goodwill and Intangible Assets [Abstract] | ' | |||
Goodwill and Intangible Assets | ' | |||
4. 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, for the three months ended September 28, 2013 is as follows: | ||||
Total | ||||
Balance at June 29, 2013 | $ 345,039 | |||
Acquisition of European joint venture | 21,745 | |||
Foreign exchange impact | 6,092 | |||
Balance at September 28, 2013 | $ 372,876 | |||
At September 28, 2013 and June 29, 2013, the Company’s intangible assets, which are not subject to amortization, consisted of $9,788 of trademarks and are included in Other Assets. | ||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
5. Stockholders’ Equity | |||||||||||||
Activity for the quarters ended September 28, 2013 and September 29, 2012 in the accounts of Stockholders’ Equity is summarized below: | |||||||||||||
Accumulated | |||||||||||||
Shares of | Common | Additional | Other | Total | |||||||||
Common | Stockholders' | Paid-in- | Accumulated | Comprehensive | Stockholders' | ||||||||
Stock | Equity | Capital | Deficit | Income (Loss) | Equity | ||||||||
Balances at June 30, 2012 | 285,118 | $ 2,851 | $ 2,327,055 | $ (387,450) | $ 50,475 | $ 1,992,931 | |||||||
Net income | - | - | - | 221,381 | - | 221,381 | |||||||
Other comprehensive income | - | - | - | - | 8,209 | 8,209 | |||||||
Shares issued for stock options and employee benefit plans | 1,617 | 16 | -2,330 | - | - | -2,314 | |||||||
Share-based compensation | - | - | 28,533 | - | - | 28,533 | |||||||
Excess tax benefit from share-based compensation | - | - | 5,491 | - | - | 5,491 | |||||||
Repurchase of common stock | -3,093 | -31 | - | -174,969 | - | -175,000 | |||||||
Dividends declared | - | - | - | -85,138 | - | -85,138 | |||||||
Balances at September 29, 2012 | 283,642 | $ 2,836 | $ 2,358,749 | $ (426,176) | $ 58,684 | $ 1,994,093 | |||||||
Balances at June 29, 2013 | 281,902 | $ 2,819 | $ 2,520,469 | $ (101,884) | $ (12,246) | $ 2,409,158 | |||||||
Net income | - | - | - | 217,883 | - | 217,883 | |||||||
Other comprehensive income | - | - | - | - | 5,481 | 5,481 | |||||||
Shares issued for stock options and employee benefit plans | 1,812 | 18 | -12,461 | - | - | -12,443 | |||||||
Share-based compensation | - | - | 27,340 | - | - | 27,340 | |||||||
Excess tax benefit from share-based compensation | - | - | 942 | - | - | 942 | |||||||
Repurchase of common stock | -3,291 | -33 | - | -174,922 | - | -174,955 | |||||||
Dividends declared | - | - | - | -94,835 | - | -94,835 | |||||||
Balances at September 28, 2013 | 280,423 | $ 2,804 | $ 2,536,290 | $ (153,758) | $ (6,765) | $ 2,378,571 | |||||||
The amounts reclassified out of accumulated other comprehensive loss by component, net of tax, are as follows: | |||||||||||||
Gains | Unrealized | ||||||||||||
(Losses) | Gains (Losses) | ||||||||||||
on Cash | on Available- | Cumulative | |||||||||||
Flow | for-Sale | Translation | |||||||||||
Hedges (a) | Securities | Adjustment | Other (b) | Total | |||||||||
Balances at June 30, 2012 | $ (461) | $ - | $ 55,360 | $ (4,424) | $ 50,475 | ||||||||
Other comprehensive (loss) income before reclassifications | -3,681 | - | 12,168 | - | 8,487 | ||||||||
Less: Gains reclassifed from accumulated other comprehensive loss | 278 | - | - | - | 278 | ||||||||
Net current-period other comprehensive (loss) income | -3,959 | - | 12,168 | - | 8,209 | ||||||||
Balances at September 29, 2012 | $ (4,420) | $ - | $ 67,528 | $ (4,424) | $ 58,684 | ||||||||
Balances at June 29, 2013 | $ 3,741 | $ (1,276) | $ (11,630) | $ (3,081) | $ (12,246) | ||||||||
Other comprehensive (loss) income before reclassifications | -1,839 | 64 | 10,501 | - | 8,726 | ||||||||
Less: Gains reclassifed from accumulated other comprehensive loss | 3,245 | - | - | - | 3,245 | ||||||||
Net current-period other comprehensive (loss) income | -5,084 | 64 | 10,501 | - | 5,481 | ||||||||
Balances at September 28, 2013 | $ (1,343) | $ (1,212) | $ (1,129) | $ (3,081) | $ (6,765) | ||||||||
(a) For the first quarter of fiscal 2013 and fiscal 2014, the ending balances of accumulated other comprehensive loss are net of tax of $2,690 and $572, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(115) and $(2,049), respectively. | |||||||||||||
(b) The components of Other includes the cumulative effect of the adoption of ASC 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $(1,072) and $(3,352) as of September 29, 2012 and $(1,072) and $(2,009) as of September 28, 2013, respectively. For the first quarter of fiscal 2013 and fiscal 2014, the balances of accumulated other comprehensive loss are net of tax of $2,656 and $2,118, respectively. | |||||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Earnings Per Share | ' | ||||||
6. 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 | |||||||
September 28, | September 29, | ||||||
2013 | 2012 | ||||||
Net income | $ 217,883 | $ 221,381 | |||||
Total weighted-average basic shares | 281,433 | 284,569 | |||||
Dilutive securities: | |||||||
Employee benefit and share award plans | 1,217 | 1,319 | |||||
Stock option programs | 1,863 | 2,609 | |||||
Total weighted-average diluted shares | 284,513 | 288,497 | |||||
Net income per share: | |||||||
Basic | $ 0.77 | $ 0.78 | |||||
Diluted | $ 0.77 | $ 0.77 | |||||
At September 28, 2013, options to purchase 3,738 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $55.13 to $78.46, were greater than the average market price of the common shares. | |||||||
At September 29, 2012, options to purchase 2,149 shares of common stock were outstanding but not included in the computation of diluted earnings per share, as these options’ exercise prices, ranging from $57.47 to $78.46, were greater than the average market price of the common shares. | |||||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Share-Based Compensation [Abstract] | ' | |||||||
Share-Based Compensation | ' | |||||||
7. 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 | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Compensation expense: | ||||||||
Ongoing | $ 17,506 | $ 28,533 | ||||||
Sale of Reed Krakoff business; restructuring and transformation | 9,834 | - | ||||||
$ 27,340 | $ 28,533 | |||||||
Related income tax benefit: | ||||||||
Ongoing | $ 4,721 | $ 9,856 | ||||||
Sale of Reed Krakoff business; restructuring and transformation | 3,793 | - | ||||||
$ 8,514 | $ 9,856 | |||||||
Stock Options | ||||||||
A summary of stock option activity under the Coach stock option plans during the period ended September 28, 2013 is as follows: | ||||||||
Number of Options Outstanding | Weighted-Average Exercise Price | |||||||
Outstanding at June 29, 2013 | 12,893 | $ 43.37 | ||||||
Granted | 2,081 | 53.27 | ||||||
Exercised | -763 | 32.14 | ||||||
Forfeited or expired | -1,504 | 54.05 | ||||||
Outstanding at September 28, 2013 | 12,707 | 44.40 | ||||||
Vested and expected to vest at September 28, 2013 | 12,518 | 44.24 | ||||||
Exercisable at September 28, 2013 | 8,516 | 39.38 | ||||||
At September 28, 2013, $40,843 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||
The weighted-average grant-date fair value of individual options granted during the first quarter of fiscal 2014 and fiscal 2013 was $10.02 and $13.18, respectively. The total intrinsic value of options exercised during the first quarter of fiscal 2014 and fiscal 2013 was $16,483 and $21,520, respectively. | ||||||||
The total cash received from these option exercises was $24,527 and $23,303, respectively, and the actual tax benefit realized from these option exercises was $6,305 and $8,232, respectively. | ||||||||
Service-based Restricted Stock Unit Awards (“RSUs”) | ||||||||
A summary of service-based RSU activity during the quarter ended September 28, 2013 is as follows: | ||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value | |||||||
Non-vested at June 29, 2013 | 3,269 | $ 54.06 | ||||||
Granted | 1,662 | 53.32 | ||||||
Vested | -1,248 | 49.58 | ||||||
Forfeited | -299 | 55.01 | ||||||
Non-vested at September 28, 2013 | 3,384 | 55.27 | ||||||
At September 28, 2013, $140,867 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.3 years. | ||||||||
The weighted-average grant-date fair value of share awards granted during the first quarter of fiscal 2014 and fiscal 2013 was $53.32 and $55.63, respectively. The total fair value of shares vested during the first quarter of fiscal 2014 and fiscal 2013 was $66,300 and $72,618, respectively. | ||||||||
Performance-based Restricted Stock Unit Awards (“PRSUs”) | ||||||||
The Company grants performance-based share awards to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. A summary of performance-based share award activity, which includes dividend equivalent shares, during the quarter ended September 28, 2013 is as follows: | ||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value | |||||||
Non-vested at June 29, 2013 | 1,093 | $ 46.84 | ||||||
Change due to performance condition achievement | 57 | 35.61 | ||||||
Granted | 354 | 36.70 | ||||||
Vested | -488 | 42.07 | ||||||
Forfeited | -88 | 49.34 | ||||||
Non-vested at September 28, 2013 | 928 | 44.56 | ||||||
At September 28, 2013, $20,413 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.7 years. | ||||||||
The weighted-average grant-date fair value of share awards granted during the first quarter of fiscal 2014 and fiscal 2013 was $36.70 and $56.83, respectively. The total fair value of shares vested during the first quarter of fiscal 2014 and fiscal 2013 was $25,915 and $0, respectively. | ||||||||
Within the 354 total PRSU awards granted during the first quarter of fiscal 2014, the Company granted 239 shares of common stock with a fair value of $6,759 to selected executives as retention PRSU awards with a maximum share count and fair value (excluding dividends) of 318 shares and $8,989, respectively. The shares of common stock under these PRSU awards will be earned and distributed based on performance criteria which compare the Company’s total stockholder return over the performance period to the total stockholder return of the companies included in the Standard & Poor’s 500 Index on the date of grant (excluding the Company). The grant date fair value of the PRSU awards was determined utilizing a Monte Carlo simulation and the following assumptions: expected volatility of 32.61%, risk-free interest rate of 0.63%, and dividend yield of 0.00%. | ||||||||
In first quarter of fiscal 2014 and 2013, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $30,672 and $20,146, respectively. | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
8. Fair Value Measurements | |||||||||||||
In accordance with Accounting Standards Codification 820-10, “Fair Value Measurements and Disclosures,” 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 September 28, 2013 and June 29, 2013: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
September 28, | June 29, | September 28, | June 29, | September 28, | June 29, | ||||||||
2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||
Assets: | |||||||||||||
Cash equivalents (a) | $ 104,104 | $ 124,420 | $ 97,432 | $ 337,239 | $ - | $ - | |||||||
Short-term investments (b) | - | - | 140,128 | 72,106 | - | - | |||||||
Long-term investments: | |||||||||||||
Corporate debt securities - U.S. (c) | - | - | 119,989 | 65,536 | - | - | |||||||
Corporate debt securities - non U.S. (c) | - | - | 75,253 | 33,968 | - | - | |||||||
Auction rate security (d) | - | - | - | - | 6,000 | 6,000 | |||||||
Derivative assets - zero-cost collar options (e) | - | - | 642 | 1,592 | - | - | |||||||
Derivative assets - forward contracts and cross currency swaps (e) | - | - | 411 | 2,390 | - | - | |||||||
Derivative assets - contractual obligations (e) | - | - | 40 | 523 | - | - | |||||||
Total | $ 104,104 | $ 124,420 | $ 433,895 | $ 513,354 | $ 6,000 | $ 6,000 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities - zero-cost collar options (e) | $ - | $ - | $ 2,904 | $ 2,555 | $ - | $ - | |||||||
Derivative liabilities - forward contracts and cross currency swaps (e) | - | - | 46 | 85 | - | - | |||||||
Derivative assets - contractual obligations (e) | - | - | 22 | 255 | - | - | |||||||
Total | $ - | $ - | $ 2,972 | $ 2,895 | $ - | $ - | |||||||
(a) Cash equivalents consists of time deposits, commercial paper and money market funds 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. | |||||||||||||
(b) Short-term investments consist of time deposits and high-credit quality U.S. issued corporate debt securities, with maturities less than one year at the date of purchase in which management believes their carrying value approximates fair value based on their short maturity. | |||||||||||||
(c) Fair value, which approximates amortized cost, is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2016. | |||||||||||||
(d) Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. The fair value of this security has been $6,000 since the end of the second quarter of fiscal 2009. | |||||||||||||
(e) 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. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
9. Commitments and Contingencies | |
The Company expects to invest approximately $420,000 in the Hudson Yards joint venture between the beginning of the second quarter of fiscal 2014 through the next three years, with approximately $120,000 estimated for the remainder of fiscal 2014, depending on construction progress. During the first three months of fiscal 2014, the Company invested $18,208 in the joint venture. | |
At September 28, 2013 and June 29, 2013, the Company had standby letters of credit totaling $6,829 and $14,885, respectively, outstanding. The standby letters of credit, which expire at various dates through 2014, primarily collateralize the Company’s obligation to third parties for insurance claims and value-added tax refunds. | |
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_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||
10. 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 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. | |||||||||||||||||
Two of the Company’s businesses outside of the United States, Coach Japan and Coach Canada, enter into zero-cost collar options to manage the exchange rate risk related to their inventory purchases. As of September 28, 2013 and June 29, 2013, zero-cost collar options with aggregate notional amounts of $242,230 and $193,352 were outstanding, respectively. Current maturity dates range from October 2013 to June 2014. | |||||||||||||||||
As of September 28, 2013, and June 29, 2013, the Company had entered into various short-time and long-term intercompany and related party loans denominated in various foreign currencies, with a total principal amount of $295,735 and $253,037 at September 28, 2013, and June 29, 2013, respectively. Current maturity dates range from October 2013 to August 2023. To manage the exchange rate risk related to the short-term loans, the Company entered into forward exchange and cross-currency swap contracts with notional amounts of $110,495 and $147,591, respectively, as of September 28, 2013 and June 29, 2013. The terms of these contracts include the exchange of foreign currency fixed interest for U.S. dollar fixed interest and an exchange of the foreign currency and U.S. dollar based notional values at the maturity dates. | |||||||||||||||||
As of September 28, 2013 and June 29, 2013, the Company had entered into forward contracts to manage the exchange rate risk of contractual obligations with notional values of $5,775 and $16,944, respectively. Contractual obligations as of September 28, 2013 and June 29, 2013 consist of $1,775 and $6,944, respectively, due to Hackett Limited related to the European joint venture acquisition and $4,000 and $10,000 due to Shinsegae International related to the acquisition of the domestic retail business in Korea. | |||||||||||||||||
The Company’s derivative instruments are primarily 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: | |||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Derivatives Designated as Hedging Instruments | 28-Sep-13 | 29-Jun-13 | Balance Sheet Classification | 28-Sep-13 | 29-Jun-13 | Balance Sheet Classification | 28-Sep-13 | 29-Jun-13 | |||||||||
Zero-cost Collars | $ 242,230 | $ 193,352 | Other Current Assets | $ 642 | $ 1,592 | Accrued Liabilities | $ (2,904) | $ (2,555) | |||||||||
Cross Currency Swaps | 107,151 | 111,195 | Other Current Assets | 411 | 1,366 | Accrued Liabilities | -9 | -85 | |||||||||
Forward Contracts: | |||||||||||||||||
Intercompany & Related Party Loans | 3,344 | 36,396 | Other Current Assets | - | 1,024 | Accrued Liabilities | -37 | - | |||||||||
Contractual Obligations | 5,775 | 16,944 | Other Current Assets | 40 | 523 | Accrued Liabilities | -22 | -255 | |||||||||
$ 358,500 | $ 357,887 | $ 1,093 | $ 4,505 | $ (2,972) | $ (2,895) | ||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||
Quarter Ended (a) | Quarter Ended (b) | ||||||||||||||||
28-Sep-13 | September 29, | Income Statement Location | 28-Sep-13 | September 29, | |||||||||||||
2012 | 2012 | ||||||||||||||||
Zero-cost Collars | $ (1,461) | $ (4,408) | Cost of Sales | $ 3,245 | $ 278 | ||||||||||||
Forward Contracts and Cross Currency Swaps | -378 | 727 | SG&A | - | - | ||||||||||||
$ (1,839) | $ (3,681) | $ 3,245 | $ 278 | ||||||||||||||
(a) For the first quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $862 and $1,999, respectively. | |||||||||||||||||
(b) For the first quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $(2,049) and $(115), respectively. | |||||||||||||||||
During the quarters ended September 28, 2013 and September 29, 2012, there were no material gains or losses recognized in income due to hedge ineffectiveness. | |||||||||||||||||
The Company expects that $1,299 of net derivative losses included in accumulated other comprehensive loss at September 28, 2013 will be reclassified into earnings within the next 12 months. This amount will vary due to fluctuations in foreign currency exchange rates. | |||||||||||||||||
Segment_Information
Segment Information | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Segment Information [Abstract] | ' | ||||||||||
Segment Information | ' | ||||||||||
11. Segment Information | |||||||||||
The Company’s operates its business in five operating segments aggregated into two reportable segments: | |||||||||||
· North America, which includes sales to consumers through North American Company-operated stores, including the Internet, and sales to North American wholesale customers and distributors. | |||||||||||
· International, which includes sales to consumers through Company-operated stores in Japan and mainland China, including the Internet, Hong Kong and Macau, Taiwan, Singapore, Korea, Malaysia and Europe, and sales to wholesale customers and distributors in over 30 countries. | |||||||||||
North | Corporate | ||||||||||
America | International (1) | Other (1)(2) | Unallocated | Total | |||||||
Quarter Ended September 28, 2013 | |||||||||||
Net sales | $ 778,254 | $ 364,974 | $ 7,532 | $ - | $ 1,150,760 | ||||||
Operating income | 299,625 | 130,069 | 5,600 | -113,660 | 321,634 | ||||||
Income before provision for income taxes | 299,625 | 130,069 | 5,600 | -112,032 | 323,262 | ||||||
Depreciation and amortization expense | 17,977 | 13,143 | - | 13,844 | 44,964 | ||||||
Additions to long-lived assets | 26,298 | 14,012 | - | 5,590 | 45,900 | ||||||
Quarter Ended September 29, 2012 | |||||||||||
Net sales | $ 784,192 | $ 367,402 | $ 9,756 | $ - | $ 1,161,350 | ||||||
Operating income | 325,534 | 136,283 | 5,955 | -136,055 | 331,717 | ||||||
Income before provision for income taxes | 325,534 | 136,283 | 5,955 | -138,091 | 329,681 | ||||||
Depreciation and amortization expense | 16,916 | 10,468 | - | 8,720 | 36,104 | ||||||
Additions to long-lived assets | 43,819 | 25,060 | - | 9,613 | 78,492 | ||||||
(1) As a result of the acquisition of the European joint venture (as discussed in Note 3), prior year net sales, operating income and income before provision for income taxes of $5,646, $2,565 and $2,565, respectively, have been reclassed from Other to International to conform to the 2014 presentation of the European results. | |||||||||||
(2) Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||
The following is a summary of the common costs not allocated in the determination of segment performance: | |||||||||||
Quarter Ended | |||||||||||
September 28, | September 29, | ||||||||||
2013 | 2012 | ||||||||||
Production variances | $ 17,149 | $ 13,390 | |||||||||
Advertising, marketing and design | -53,361 | -62,351 | |||||||||
Administration and information systems | -56,801 | -68,315 | |||||||||
Distribution and customer service | -20,647 | -18,779 | |||||||||
Total corporate unallocated | $ (113,660) | $ (136,055) | |||||||||
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Sep. 28, 2013 | |
Shock Repurchase Program [Abstract] | ' |
Stock Repurchase Program | ' |
12. Stock Repurchase Program | |
Purchases of Coach’s common stock are made 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. | |
Coach accounts for stock repurchases and retirements by allocating the repurchase price to common stock, additional paid-in-capital and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances, beginning with the earliest issuance. During the fourth quarter of fiscal 2010, cumulative stock repurchases allocated to retained earnings resulted in an accumulated deficit balance. Since its initial public offering, the Company has not experienced a net loss in any fiscal year, and the net accumulated deficit balance in stockholders’ equity is attributable to the cumulative stock repurchase activity and dividends declared. | |
For the first quarter of fiscal 2014 and fiscal 2013, the Company repurchased and retired 3,291 and 3,093 shares, respectively, or $174,955 and $175,000 of common stock, respectively, at an average cost of $53.17 and $56.59 per share, respectively. As of September 28, 2013, Coach had $1.19 billion remaining in the stock repurchase program. | |
Sale_of_Reed_Krakoff_Business_1
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges (Tables) | 3 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges [Abstract] | ' | ||||||
Summary of our Restructuring and Transfomation Related Plan | ' | ||||||
A summary of outstanding liabilities and related charges are as follows: | |||||||
Severance and | Impairment & Other | Total | |||||
Related Costs | |||||||
Liability as of June 29, 2013 | $ 27,879 | $ 83 | $ 27,962 | ||||
(Income) expense | -1,732 | 1,903 | 171 | ||||
Non-cash charges | -345 | -1,822 | -2,167 | ||||
Cash payments and settlements | -17,944 | -83 | -18,027 | ||||
Liability as of September 28, 2013 | $ 7,858 | $ 81 | $ 7,939 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||
Sep. 28, 2013 | ||||
Goodwill and Intangible Assets [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, for the three months ended September 28, 2013 is as follows: | ||||
Total | ||||
Balance at June 29, 2013 | $ 345,039 | |||
Acquisition of European joint venture | 21,745 | |||
Foreign exchange impact | 6,092 | |||
Balance at September 28, 2013 | $ 372,876 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Schedule of Stockholders Equity | ' | ||||||||||||
Activity for the quarters ended September 28, 2013 and September 29, 2012 in the accounts of Stockholders’ Equity is summarized below: | |||||||||||||
Accumulated | |||||||||||||
Shares of | Common | Additional | Other | Total | |||||||||
Common | Stockholders' | Paid-in- | Accumulated | Comprehensive | Stockholders' | ||||||||
Stock | Equity | Capital | Deficit | Income (Loss) | Equity | ||||||||
Balances at June 30, 2012 | 285,118 | $ 2,851 | $ 2,327,055 | $ (387,450) | $ 50,475 | $ 1,992,931 | |||||||
Net income | - | - | - | 221,381 | - | 221,381 | |||||||
Other comprehensive income | - | - | - | - | 8,209 | 8,209 | |||||||
Shares issued for stock options and employee benefit plans | 1,617 | 16 | -2,330 | - | - | -2,314 | |||||||
Share-based compensation | - | - | 28,533 | - | - | 28,533 | |||||||
Excess tax benefit from share-based compensation | - | - | 5,491 | - | - | 5,491 | |||||||
Repurchase of common stock | -3,093 | -31 | - | -174,969 | - | -175,000 | |||||||
Dividends declared | - | - | - | -85,138 | - | -85,138 | |||||||
Balances at September 29, 2012 | 283,642 | $ 2,836 | $ 2,358,749 | $ (426,176) | $ 58,684 | $ 1,994,093 | |||||||
Balances at June 29, 2013 | 281,902 | $ 2,819 | $ 2,520,469 | $ (101,884) | $ (12,246) | $ 2,409,158 | |||||||
Net income | - | - | - | 217,883 | - | 217,883 | |||||||
Other comprehensive income | - | - | - | - | 5,481 | 5,481 | |||||||
Shares issued for stock options and employee benefit plans | 1,812 | 18 | -12,461 | - | - | -12,443 | |||||||
Share-based compensation | - | - | 27,340 | - | - | 27,340 | |||||||
Excess tax benefit from share-based compensation | - | - | 942 | - | - | 942 | |||||||
Repurchase of common stock | -3,291 | -33 | - | -174,922 | - | -174,955 | |||||||
Dividends declared | - | - | - | -94,835 | - | -94,835 | |||||||
Balances at September 28, 2013 | 280,423 | $ 2,804 | $ 2,536,290 | $ (153,758) | $ (6,765) | $ 2,378,571 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The amounts reclassified out of accumulated other comprehensive loss by component, net of tax, are as follows: | |||||||||||||
Gains | Unrealized | ||||||||||||
(Losses) | Gains (Losses) | ||||||||||||
on Cash | on Available- | Cumulative | |||||||||||
Flow | for-Sale | Translation | |||||||||||
Hedges (a) | Securities | Adjustment | Other (b) | Total | |||||||||
Balances at June 30, 2012 | $ (461) | $ - | $ 55,360 | $ (4,424) | $ 50,475 | ||||||||
Other comprehensive (loss) income before reclassifications | -3,681 | - | 12,168 | - | 8,487 | ||||||||
Less: Gains reclassifed from accumulated other comprehensive loss | 278 | - | - | - | 278 | ||||||||
Net current-period other comprehensive (loss) income | -3,959 | - | 12,168 | - | 8,209 | ||||||||
Balances at September 29, 2012 | $ (4,420) | $ - | $ 67,528 | $ (4,424) | $ 58,684 | ||||||||
Balances at June 29, 2013 | $ 3,741 | $ (1,276) | $ (11,630) | $ (3,081) | $ (12,246) | ||||||||
Other comprehensive (loss) income before reclassifications | -1,839 | 64 | 10,501 | - | 8,726 | ||||||||
Less: Gains reclassifed from accumulated other comprehensive loss | 3,245 | - | - | - | 3,245 | ||||||||
Net current-period other comprehensive (loss) income | -5,084 | 64 | 10,501 | - | 5,481 | ||||||||
Balances at September 28, 2013 | $ (1,343) | $ (1,212) | $ (1,129) | $ (3,081) | $ (6,765) | ||||||||
(a) For the first quarter of fiscal 2013 and fiscal 2014, the ending balances of accumulated other comprehensive loss are net of tax of $2,690 and $572, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(115) and $(2,049), respectively. | |||||||||||||
(b) The components of Other includes the cumulative effect of the adoption of ASC 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $(1,072) and $(3,352) as of September 29, 2012 and $(1,072) and $(2,009) as of September 28, 2013, respectively. For the first quarter of fiscal 2013 and fiscal 2014, the balances of accumulated other comprehensive loss are net of tax of $2,656 and $2,118, respectively. | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Sep. 28, 2013 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | ||||||
The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted net income per share: | |||||||
Quarter Ended | |||||||
September 28, | September 29, | ||||||
2013 | 2012 | ||||||
Net income | $ 217,883 | $ 221,381 | |||||
Total weighted-average basic shares | 281,433 | 284,569 | |||||
Dilutive securities: | |||||||
Employee benefit and share award plans | 1,217 | 1,319 | |||||
Stock option programs | 1,863 | 2,609 | |||||
Total weighted-average diluted shares | 284,513 | 288,497 | |||||
Net income per share: | |||||||
Basic | $ 0.77 | $ 0.78 | |||||
Diluted | $ 0.77 | $ 0.77 | |||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | |||||||
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 | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Compensation expense: | ||||||||
Ongoing | $ 17,506 | $ 28,533 | ||||||
Sale of Reed Krakoff business; restructuring and transformation | 9,834 | - | ||||||
$ 27,340 | $ 28,533 | |||||||
Related income tax benefit: | ||||||||
Ongoing | $ 4,721 | $ 9,856 | ||||||
Sale of Reed Krakoff business; restructuring and transformation | 3,793 | - | ||||||
$ 8,514 | $ 9,856 | |||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||
A summary of stock option activity under the Coach stock option plans during the period ended September 28, 2013 is as follows: | ||||||||
Number of Options Outstanding | Weighted-Average Exercise Price | |||||||
Outstanding at June 29, 2013 | 12,893 | $ 43.37 | ||||||
Granted | 2,081 | 53.27 | ||||||
Exercised | -763 | 32.14 | ||||||
Forfeited or expired | -1,504 | 54.05 | ||||||
Outstanding at September 28, 2013 | 12,707 | 44.40 | ||||||
Vested and expected to vest at September 28, 2013 | 12,518 | 44.24 | ||||||
Exercisable at September 28, 2013 | 8,516 | 39.38 | ||||||
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' | |||||||
Schedule of Nonvested Share Activity | ' | |||||||
A summary of performance-based share award activity, which includes dividend equivalent shares, during the quarter ended September 28, 2013 is as follows: | ||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value | |||||||
Non-vested at June 29, 2013 | 1,093 | $ 46.84 | ||||||
Change due to performance condition achievement | 57 | 35.61 | ||||||
Granted | 354 | 36.70 | ||||||
Vested | -488 | 42.07 | ||||||
Forfeited | -88 | 49.34 | ||||||
Non-vested at September 28, 2013 | 928 | 44.56 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements of Assets and Liabilities | ' | ||||||||||||
The following table shows the fair value measurements of the Company’s assets and liabilities at September 28, 2013 and June 29, 2013: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
September 28, | June 29, | September 28, | June 29, | September 28, | June 29, | ||||||||
2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||
Assets: | |||||||||||||
Cash equivalents (a) | $ 104,104 | $ 124,420 | $ 97,432 | $ 337,239 | $ - | $ - | |||||||
Short-term investments (b) | - | - | 140,128 | 72,106 | - | - | |||||||
Long-term investments: | |||||||||||||
Corporate debt securities - U.S. (c) | - | - | 119,989 | 65,536 | - | - | |||||||
Corporate debt securities - non U.S. (c) | - | - | 75,253 | 33,968 | - | - | |||||||
Auction rate security (d) | - | - | - | - | 6,000 | 6,000 | |||||||
Derivative assets - zero-cost collar options (e) | - | - | 642 | 1,592 | - | - | |||||||
Derivative assets - forward contracts and cross currency swaps (e) | - | - | 411 | 2,390 | - | - | |||||||
Derivative assets - contractual obligations (e) | - | - | 40 | 523 | - | - | |||||||
Total | $ 104,104 | $ 124,420 | $ 433,895 | $ 513,354 | $ 6,000 | $ 6,000 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities - zero-cost collar options (e) | $ - | $ - | $ 2,904 | $ 2,555 | $ - | $ - | |||||||
Derivative liabilities - forward contracts and cross currency swaps (e) | - | - | 46 | 85 | - | - | |||||||
Derivative assets - contractual obligations (e) | - | - | 22 | 255 | - | - | |||||||
Total | $ - | $ - | $ 2,972 | $ 2,895 | $ - | $ - | |||||||
(a) Cash equivalents consists of time deposits, commercial paper and money market funds 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. | |||||||||||||
(b) Short-term investments consist of time deposits and high-credit quality U.S. issued corporate debt securities, with maturities less than one year at the date of purchase in which management believes their carrying value approximates fair value based on their short maturity. | |||||||||||||
(c) Fair value, which approximates amortized cost, is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2016. | |||||||||||||
(d) Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. The fair value of this security has been $6,000 since the end of the second quarter of fiscal 2009. | |||||||||||||
(e) 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. | |||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||||||
The following tables provide information related to the Company’s derivatives: | |||||||||||||||||
Notional Value | Derivative Assets | Derivative Liabilities | |||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Derivatives Designated as Hedging Instruments | 28-Sep-13 | 29-Jun-13 | Balance Sheet Classification | 28-Sep-13 | 29-Jun-13 | Balance Sheet Classification | 28-Sep-13 | 29-Jun-13 | |||||||||
Zero-cost Collars | $ 242,230 | $ 193,352 | Other Current Assets | $ 642 | $ 1,592 | Accrued Liabilities | $ (2,904) | $ (2,555) | |||||||||
Cross Currency Swaps | 107,151 | 111,195 | Other Current Assets | 411 | 1,366 | Accrued Liabilities | -9 | -85 | |||||||||
Forward Contracts: | |||||||||||||||||
Intercompany & Related Party Loans | 3,344 | 36,396 | Other Current Assets | - | 1,024 | Accrued Liabilities | -37 | - | |||||||||
Contractual Obligations | 5,775 | 16,944 | Other Current Assets | 40 | 523 | Accrued Liabilities | -22 | -255 | |||||||||
$ 358,500 | $ 357,887 | $ 1,093 | $ 4,505 | $ (2,972) | $ (2,895) | ||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||
Quarter Ended (a) | Quarter Ended (b) | ||||||||||||||||
28-Sep-13 | September 29, | Income Statement Location | 28-Sep-13 | September 29, | |||||||||||||
2012 | 2012 | ||||||||||||||||
Zero-cost Collars | $ (1,461) | $ (4,408) | Cost of Sales | $ 3,245 | $ 278 | ||||||||||||
Forward Contracts and Cross Currency Swaps | -378 | 727 | SG&A | - | - | ||||||||||||
$ (1,839) | $ (3,681) | $ 3,245 | $ 278 | ||||||||||||||
(a) For the first quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $862 and $1,999, respectively. | |||||||||||||||||
(b) For the first quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $(2,049) and $(115), respectively. | |||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Segment Information [Abstract] | ' | ||||||||||
Summary of Segment Information | ' | ||||||||||
North | Corporate | ||||||||||
America | International (1) | Other (1)(2) | Unallocated | Total | |||||||
Quarter Ended September 28, 2013 | |||||||||||
Net sales | $ 778,254 | $ 364,974 | $ 7,532 | $ - | $ 1,150,760 | ||||||
Operating income | 299,625 | 130,069 | 5,600 | -113,660 | 321,634 | ||||||
Income before provision for income taxes | 299,625 | 130,069 | 5,600 | -112,032 | 323,262 | ||||||
Depreciation and amortization expense | 17,977 | 13,143 | - | 13,844 | 44,964 | ||||||
Additions to long-lived assets | 26,298 | 14,012 | - | 5,590 | 45,900 | ||||||
Quarter Ended September 29, 2012 | |||||||||||
Net sales | $ 784,192 | $ 367,402 | $ 9,756 | $ - | $ 1,161,350 | ||||||
Operating income | 325,534 | 136,283 | 5,955 | -136,055 | 331,717 | ||||||
Income before provision for income taxes | 325,534 | 136,283 | 5,955 | -138,091 | 329,681 | ||||||
Depreciation and amortization expense | 16,916 | 10,468 | - | 8,720 | 36,104 | ||||||
Additions to long-lived assets | 43,819 | 25,060 | - | 9,613 | 78,492 | ||||||
(1) As a result of the acquisition of the European joint venture (as discussed in Note 3), prior year net sales, operating income and income before provision for income taxes of $5,646, $2,565 and $2,565, respectively, have been reclassed from Other to International to conform to the 2014 presentation of the European results. | |||||||||||
(2) Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. | |||||||||||
Summary of Common Costs Not Allocated | ' | ||||||||||
The following is a summary of the common costs not allocated in the determination of segment performance: | |||||||||||
Quarter Ended | |||||||||||
September 28, | September 29, | ||||||||||
2013 | 2012 | ||||||||||
Production variances | $ 17,149 | $ 13,390 | |||||||||
Advertising, marketing and design | -53,361 | -62,351 | |||||||||
Administration and information systems | -56,801 | -68,315 | |||||||||
Distribution and customer service | -20,647 | -18,779 | |||||||||
Total corporate unallocated | $ (113,660) | $ (136,055) | |||||||||
Sale_of_Reed_Krakoff_Business_2
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $171 | $53,202 |
Joint venture agreement, ownership percentage | 8.00% | ' |
Cost method investment | 3,261 | ' |
Selling, General and Administrative Expenses [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $2,683 | ' |
Sale_of_Reed_Krakoff_Business_3
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges (Restructuring and Transformation Related Plans) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of September 28, 2013 | $27,962 | ' |
(Income) expense | 171 | 53,202 |
Non-cash charges | -2,167 | ' |
Cash payments and settlements | -18,027 | ' |
Liability as of June 29, 2013 | 7,939 | 27,962 |
Severance and Related Costs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of September 28, 2013 | 27,879 | ' |
(Income) expense | -1,732 | ' |
Non-cash charges | -345 | ' |
Cash payments and settlements | -17,944 | ' |
Liability as of June 29, 2013 | 7,858 | ' |
Impairment & Other [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of September 28, 2013 | 83 | ' |
(Income) expense | 1,903 | ' |
Non-cash charges | -1,822 | ' |
Cash payments and settlements | -83 | ' |
Liability as of June 29, 2013 | $81 | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (European Joint Venture [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Jul. 01, 2013 |
store | ||
European Joint Venture [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Ownership percentage | ' | 100.00% |
Percentage of domestic retail businesses acquired | ' | 50.00% |
Aggregate purchase prices, net of cash acquired | $15,105 | ' |
Number of stores operated | ' | 18 |
Additional payments relating to the acquisition | 1,775 | ' |
Contingent payment estimated, current | 7,893 | ' |
Loan forgiven | 18,019 | ' |
Purchase price allocation, goodwill | 21,745 | ' |
Cash acquired as part of acquisition | $3,453 | ' |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets (Narrative) (Details) (Trademarks [Member], USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Trademarks [Member] | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets not subject to amortization | $9,788 | $9,788 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Change in Carrying Value of Goodwill) (Details) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | International [Member] | ||
Beginning balance | $372,876 | $345,039 | $345,039 |
Acquisition of European joint venture | ' | ' | 21,745 |
Foreign exchange impact | ' | ' | 6,092 |
Ending balance | $372,876 | $345,039 | $372,876 |
Stockholders_Equity_Stockholde
Stockholders' Equity (Stockholders' Equity) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Beginning Balance | $2,409,158 | $1,992,931 |
Net income | 217,883 | 221,381 |
Other comprehensive income | 5,481 | 8,209 |
Shares issued for stock options and employee benefit plans | -12,443 | -2,314 |
Share-based compensation | 27,340 | 28,533 |
Excess tax benefit from share-based compensation | 942 | 5,491 |
Repurchase and retirement of common stock (shares) | -3,291 | -3,093 |
Repurchase and retirement of common stock | -174,955 | -175,000 |
Dividends declared | -94,835 | -85,138 |
Ending Balance | 2,378,571 | 1,994,093 |
Common Stock [Member] | ' | ' |
Beginning Balance | 2,819 | 2,851 |
Beginning Balance Shares | 281,902 | 285,118 |
Shares issued for stock options and employee benefit plans, Shares | 1,812 | 1,617 |
Shares issued for stock options and employee benefit plans | 18 | 16 |
Repurchase and retirement of common stock (shares) | -3,291 | -3,093 |
Repurchase and retirement of common stock | -33 | -31 |
Ending Balance | 2,804 | 2,836 |
Ending Balance Shares | 280,423 | 283,642 |
Additional Paid-in Capital [Member] | ' | ' |
Beginning Balance | 2,520,469 | 2,327,055 |
Shares issued for stock options and employee benefit plans | -12,461 | -2,330 |
Share-based compensation | 27,340 | 28,533 |
Excess tax benefit from share-based compensation | 942 | 5,491 |
Ending Balance | 2,536,290 | 2,358,749 |
Retained Earnings/(Accumulated Deficit) [Member] | ' | ' |
Beginning Balance | -101,884 | -387,450 |
Net income | 217,883 | 221,381 |
Repurchase and retirement of common stock | -174,922 | -174,969 |
Dividends declared | -94,835 | -85,138 |
Ending Balance | -153,758 | -426,176 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' |
Beginning Balance | -12,246 | 50,475 |
Other comprehensive income | 5,481 | 8,209 |
Ending Balance | ($6,765) | $58,684 |
Stockholders_Equity_Accumulate
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive (loss) income, beginning balance | ($12,246) | $50,475 | ||
Other comprehensive (loss) income, before reclassifications | 8,726 | 8,487 | ||
Less: Gains reclassified from accumulated other comprehensive loss | 3,245 | 278 | ||
Net current-period other comprehensive (loss) income | 5,481 | 8,209 | ||
Accumulated other comprehensive (loss) income, ending balance | -6,765 | 58,684 | ||
Provision for income taxes | 105,379 | 108,300 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Provision for income taxes | -2,049 | -115 | ||
Gains (Losses) on Cash Flow Hedges [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive (loss) income, beginning balance | 3,741 | [1] | -461 | [1] |
Other comprehensive (loss) income, before reclassifications | -1,839 | [1] | -3,681 | [1] |
Less: Gains reclassified from accumulated other comprehensive loss | 3,245 | [1] | 278 | [1] |
Net current-period other comprehensive (loss) income | -5,084 | [1] | -3,959 | [1] |
Accumulated other comprehensive (loss) income, ending balance | -1,343 | [1] | -4,420 | [1] |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive (loss) income, beginning balance | -1,276 | ' | ||
Other comprehensive (loss) income, before reclassifications | 64 | ' | ||
Net current-period other comprehensive (loss) income | 64 | ' | ||
Accumulated other comprehensive (loss) income, ending balance | -1,212 | ' | ||
Cumulative Translation Adjustment [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive (loss) income, beginning balance | -11,630 | 55,360 | ||
Other comprehensive (loss) income, before reclassifications | 10,501 | 12,168 | ||
Net current-period other comprehensive (loss) income | 10,501 | 12,168 | ||
Accumulated other comprehensive (loss) income, ending balance | -1,129 | 67,528 | ||
Other [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Accumulated other comprehensive (loss) income, beginning balance | -3,081 | [2] | -4,424 | [2] |
Accumulated other comprehensive (loss) income, ending balance | -3,081 | [2] | -4,424 | [2] |
Provision for income taxes | 2,118 | 2,656 | ||
Cumulative effect of adoption of ASC 320-10-35-17 | -1,072 | -1,072 | ||
ASC 715 adjustment and minimum pension liability | -2,009 | -3,352 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ||
Provision for income taxes | $572 | $2,690 | ||
[1] | For the first quarter of fiscal 2013 and fiscal 2014, the ending balances of accumulated other comprehensive loss are net of tax of $2,690 and $572, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(115) and $(2,049), respectively. | |||
[2] | The components of Other includes the cumulative effect of the adoption of ASC 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $(1,072) and $(3,352) as of September 29, 2012 and $(1,072) and $(2,009) as of September 28, 2013, respectively. For the first quarter of fiscal 2013 and fiscal 2014, the balances of accumulated other comprehensive loss are net of tax of $2,656 and $2,118, respectively. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Options to purchase shares of common stock excluded from the computation of diluted earnings per share | 3,738 | 2,149 |
Options' exercise prices, lower limit | $55.13 | $57.47 |
Options' exercise prices, upper limit | $78.46 | $78.46 |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $217,883 | $221,381 |
Total weighted-average basic shares | 281,433 | 284,569 |
Dilutive securities: | ' | ' |
Employee benefit and share award plans | 1,217 | 1,319 |
Stock option programs | 1,863 | 2,609 |
Total weighted-average diluted shares | 284,513 | 288,497 |
Net income per share: | ' | ' |
Basic | $0.77 | $0.78 |
Diluted | $0.77 | $0.77 |
ShareBased_Compensation_Narrat
Share-Based Compensation - (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Options outstanding, aggregate intrinsic value | $40,843 | ' |
Options outstanding, weighted average remaining contractual term | '1 year 2 months 12 days | ' |
Stock Options [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Weighted-average grant-date fair value of options granted | $10.02 | $13.18 |
Total intrinsic value of options exercised | 16,483 | 21,520 |
Total cash received from option exercises | 24,527 | 23,303 |
Actual tax benefit realized for the tax deductions from these option exercises | 6,305 | 8,232 |
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Expected term (years) | '1 year 8 months 12 days | ' |
Total unrecognized compensation cost related to non-vested awards | 20,413 | ' |
Weighted-average grant-date fair value of options granted | $36.70 | $56.83 |
Total fair value of shares vested | 25,915 | 0 |
Grant date fair value of award | 6,759 | ' |
Fair value assumptions used in calculating fair value of executive officer award, expected volatility rate | 32.61% | ' |
Fair value assumptions used in calculating fair value of executive officer award, risk-free interest rate | 0.63% | ' |
Fair value assumptions used in calculating fair value of executive officer award, dividend yield | 0.00% | ' |
Shares issued to select executives | 239 | ' |
Service-based Restricted Stock Unit Awards ("RSU") [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Total unrecognized compensation cost related to non-vested awards | 140,867 | ' |
Total unrecognized compensation cost related to non-vested awards, recognized over a weighted-average period | '1 year 3 months 18 days | ' |
Weighted-average grant-date fair value of options granted | $53.32 | $55.63 |
Actual tax benefit realized for the tax deductions from these option exercises | 30,672 | 20,146 |
Total fair value of shares vested | 66,300 | 72,618 |
Maximum [Member] | Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Shares issued to select executives | 318 | ' |
Common stock to selected executives awards | $8,989 | ' |
ShareBased_Compensation_Total_
Share-Based Compensation (Total Compensation Cost and Related Tax Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Compensation expense | $27,340 | $28,533 |
Income tax benefit related to share-based compensation expense | 8,514 | 9,856 |
Ongoing [Member] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Compensation expense | 17,506 | 28,533 |
Income tax benefit related to share-based compensation expense | 4,721 | 9,856 |
Sale of Reed Krakoff Business; Restructuring and Transformation [Member] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Compensation expense | 9,834 | ' |
Income tax benefit related to share-based compensation expense | $3,793 | ' |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary of Option Activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 |
Number of Options Outstanding | ' |
Beginning Balance | 12,893 |
Granted | 2,081 |
Exercised | -763 |
Forfeited or expired | -1,504 |
Ending Balance | 12,707 |
Vested and expected to vest at September 28, 2013 | 12,518 |
Exercisable at September 28, 2013 | 8,516 |
Weighted-Average Exercise Price | ' |
Beginning Balance | $43.37 |
Granted | $53.27 |
Exercised | $32.14 |
Forfeited or expired | $54.05 |
Ending Balance | $44.40 |
Vested and expected to vest at September 28, 2013 | $44.24 |
Exercisable at September 28, 2013 | $39.38 |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary of Non-vested Service-Based Restricted Stock Unit Activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 |
Service-based Restricted Stock Unit Awards ("RSU") [Member] | ' |
Number of Non-vested Share Units | ' |
Beginning Balance | 3,269 |
Granted | 1,662 |
Vested | -1,248 |
Forfeited | -299 |
Ending Balance | 3,384 |
Weighted-Average Grant-Date Fair Value | ' |
Beginning Balance | $54.06 |
Granted | $53.32 |
Vested | $49.58 |
Forfeited | $55.01 |
Ending Balance | $55.27 |
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' |
Number of Non-vested Share Units | ' |
Beginning Balance | 1,093 |
Change due to performance condition achievement | 57 |
Granted | 354 |
Vested | -488 |
Forfeited | -88 |
Ending Balance | 928 |
Weighted-Average Grant-Date Fair Value | ' |
Beginning Balance | $46.84 |
Change due to performance condition achievement | $35.61 |
Granted | $36.70 |
Vested | $42.07 |
Forfeited | $49.34 |
Ending Balance | $44.56 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements of Assets and Liabilities) (Details) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Short-term investments | $140,128 | $72,106 | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 104,104 | [1] | 124,420 | [1] |
Total assets | 104,104 | 124,420 | ||
Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 97,432 | [1] | 337,239 | [1] |
Short-term investments | 140,128 | [2] | 72,106 | [2] |
Total assets | 433,895 | 513,354 | ||
Total liability | 2,972 | 2,895 | ||
Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets | 6,000 | 6,000 | ||
Corporate Debt Securities [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term investment | 119,989 | [3] | 65,536 | [3] |
Foreign Corporate Debt Securities [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term investment | 75,253 | [3] | 33,968 | [3] |
Auction Rate Security [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term investment | 6,000 | ' | ||
Auction Rate Security [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term investment | 6,000 | [4] | 6,000 | [4] |
Zero-Cost Collar Options [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 642 | [5] | 1,592 | [5] |
Derivative liabilities | 2,904 | [5] | 2,555 | [5] |
Forward Contracts and Cross Currency Swaps [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 411 | [5] | 2,390 | [5] |
Derivative liabilities | 46 | [5] | 85 | [5] |
Contractual Obligations [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 40 | [5] | 523 | [5] |
Derivative liabilities | $22 | [5] | $255 | [5] |
[1] | Cash equivalents consists of time deposits, commercial paper and money market funds 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 investments consist of time deposits and high-credit quality U.S. issued corporate debt securities, with maturities less than one year at the date of purchase in which management believes their carrying value approximates fair value based on their short maturity. | |||
[3] | Fair value, which approximates amortized cost, is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2016. | |||
[4] | Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. The fair value of this security has been $6,000 since the end of the second quarter of fiscal 2009. | |||
[5] | 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 counterpartybs or Companybs credit risk. |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Measurements of Assets and Liabilities Footnotes) (Details) (Auction Rate Security [Member], USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Auction Rate Security [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Fair value of auction rate security classified as a long-term investment | $6,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - (Narrative) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 |
Hudson Yards [Member] | Letter of Credit [Member] | Letter of Credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Joint venture agreement, expected investment amount | ' | $420,000 | ' | ' |
Joint venture agreement, additional expected investment in current fiscal year | ' | 120,000 | ' | ' |
Letters of credit amount outstanding | ' | ' | 6,829 | 14,885 |
Amount invested in joint venture during the period | $18,208 | ' | ' | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 |
Hackett Limited [Member] | Hackett Limited [Member] | Shinsegae International [Member] | Shinsegae International [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Forward Contracts and Cross Currency Swaps [Member] | Forward Contracts and Cross Currency Swaps [Member] | Zero-Cost Collar Options [Member] | Zero-Cost Collar Options [Member] | Zero-Cost Collar Options [Member] | Zero-Cost Collar Options [Member] | Forward Contracts [Member] | Forward Contracts [Member] | |||
Intercompany and Related Party Loans [Member] | Intercompany and Related Party Loans [Member] | Intercompany and Related Party Loans [Member] | Intercompany and Related Party Loans [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||
Minimum [Member] | Maximum [Member] | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | '2013-10 | '2023-08 | ' | ' | ' | ' | '2013-10 | '2014-06 | ' | ' |
Derivative instruments, notional value of hedged item | ' | ' | ' | ' | ' | ' | $295,735 | $253,037 | ' | ' | ' | ' | ' | ' | ' | ' | $5,775 | $16,944 |
Derivative instruments, notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,495 | 147,591 | 242,230 | 193,352 | ' | ' | ' | ' |
Contractual obligation | ' | ' | 1,775 | 6,944 | 4,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amount of net derivative losses included in accumulated other comprehensive income that will be reclassified into earnings within the next 12 months | 1,299 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) recognized due to hedge ineffectiveness | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Fair Value of Derivatives Designated as Hedging Instruments) (Details) (Designated as Hedging Instrument [Member], USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | $358,500 | $357,887 |
Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 1,093 | 4,505 |
Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | -2,972 | -2,895 |
Zero-Cost Collars [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 242,230 | 193,352 |
Zero-Cost Collars [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 642 | 1,592 |
Zero-Cost Collars [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | -2,904 | -2,555 |
Currency Swap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 107,151 | 111,195 |
Currency Swap [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 411 | 1,366 |
Currency Swap [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | -9 | -85 |
Intercompany and Related Party Loans [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 3,344 | 36,396 |
Intercompany and Related Party Loans [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | ' | 1,024 |
Intercompany and Related Party Loans [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | -37 | ' |
Contractual Obligations [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 5,775 | 16,944 |
Contractual Obligations [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 40 | 523 |
Contractual Obligations [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | ($22) | ($255) |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Amount of Gain or Loss Reclassified from Accumulated OCI into Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | ($1,839) | ($3,681) |
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 3,245 | 278 |
Amount of gain or (loss) recognized in OCI on derivatives (effective portion), tax | 862 | 1,999 |
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion), tax | -2,049 | -115 |
Zero-Cost Collars [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | -1,461 | -4,408 |
Zero-Cost Collars [Member] | Cost of Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 3,245 | 278 |
Forward Contracts and Cross Currency Swaps [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | ($378) | $727 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 3 Months Ended |
Sep. 28, 2013 | |
segment | |
store | |
Segment Information [Abstract] | ' |
Sales to wholesale customers, number of countries in which entity operates | 30 |
Operating segments | 5 |
Reportable segments | 2 |
Segment_Information_Summary_of
Segment Information (Summary of Segment Information) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 |
North America [Member] | North America [Member] | International [Member] | International [Member] | Other [Member] | Other [Member] | Corporate Unallocated [Member] | Corporate Unallocated [Member] | European Joint Venture [Member] | ||||
International [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $1,150,760 | $1,161,350 | ' | $778,254 | $784,192 | $364,974 | $367,402 | $7,532 | $9,756 | ' | ' | $3,000 |
Operating income (loss) | 321,634 | 331,717 | ' | 299,625 | 325,534 | 130,069 | 136,283 | 5,600 | 5,955 | -113,660 | -136,055 | 5,646,000 |
Income (loss) before provision for income taxes | 323,262 | 329,681 | ' | 299,625 | 325,534 | 130,069 | 136,283 | 5,600 | 5,955 | -112,032 | -138,091 | 2,565,000 |
Depreciation and amortization expense | 44,964 | 36,104 | ' | 17,977 | 16,916 | 13,143 | 10,468 | ' | ' | 13,844 | 8,720 | ' |
Total assets | 3,487,390 | ' | 3,531,897 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additions to long-lived assets | $45,900 | $78,492 | ' | $26,298 | $43,819 | $14,012 | $25,060 | ' | ' | $5,590 | $9,613 | ' |
Segment_Information_Summary_of1
Segment Information (Summary of Common Costs Not Allocated) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Operating income | $321,634 | $331,717 |
Unallocated Amount to Segment [Member] | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Production variances | 17,149 | 13,390 |
Advertising, marketing and design | -53,361 | -62,351 |
Administration and information systems | -56,801 | -68,315 |
Distribution and customer service | -20,647 | -18,779 |
Operating income | ($113,660) | ($136,055) |
Stock_Repurchase_Program_Narra
Stock Repurchase Program (Narrative) (Details) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Shock Repurchase Program [Abstract] | ' | ' |
Common stock repurchased and retired, shares | 3,291 | 3,093 |
Common stock repurchased and retired, value | $174,955,000 | $175,000,000 |
Common stock repurchased and retired, average cost per share | $53.17 | $56.59 |
Stock repurchase program, remaining amount authorized for repurchase | $1,190,000,000 | ' |