Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 29, 2014 | Apr. 25, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'COH | ' |
Entity Registrant Name | 'COACH INC | ' |
Entity Central Index Key | '0001116132 | ' |
Current Fiscal Year End Date | '--06-28 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 274,172,356 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $463,463 | $1,062,785 |
Short-term investments | 311,441 | 72,106 |
Trade accounts receivable, less allowances of $1,344 and $1,138, respectively | 197,744 | 175,477 |
Inventories | 583,743 | 524,706 |
Deferred income taxes | 74,085 | 111,118 |
Other current assets | 159,613 | 124,755 |
Total current assets | 1,790,089 | 2,070,947 |
Property and equipment, net | 742,021 | 694,771 |
Long-term investments | 479,295 | 197,340 |
Goodwill | 363,417 | 345,039 |
Other assets | 205,800 | 223,800 |
Total assets | 3,580,622 | 3,531,897 |
Current Liabilities: | ' | ' |
Accounts payable | 109,798 | 178,857 |
Accrued liabilities | 467,663 | 543,153 |
Current debt | 210,485 | 500 |
Total current liabilities | 787,946 | 722,510 |
Long-term debt | ' | 485 |
Other liabilities | 403,397 | 399,744 |
Total liabilities | 1,191,343 | 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 274,152 and 281,902 shares, respectively | 2,742 | 2,819 |
Additional paid-in-capital | 2,604,988 | 2,520,469 |
Accumulated deficit | -202,148 | -101,884 |
Accumulated other comprehensive loss | -16,303 | -12,246 |
Total stockholders' equity | 2,389,279 | 2,409,158 |
Total liabilities and stockholders' equity | $3,580,622 | $3,531,897 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowances | $1,344 | $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 | 274,152,000 | 281,902,000 |
Common stock, outstanding | 274,152,000 | 281,902,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $1,099,626 | $1,187,578 | $3,670,010 | $3,852,702 |
Cost of sales | 318,287 | 307,390 | 1,079,419 | 1,041,964 |
Gross profit | 781,339 | 880,188 | 2,590,591 | 2,810,738 |
Selling, general and administrative expenses | 518,630 | 531,695 | 1,570,305 | 1,603,951 |
Operating income | 262,709 | 348,493 | 1,020,286 | 1,206,787 |
Interest (expense) income, net | -1,929 | 1,021 | 1,652 | 1,323 |
Other expense | ' | 1,764 | ' | 5,341 |
Income before provision for income taxes | 260,780 | 347,750 | 1,021,938 | 1,202,769 |
Provision for income taxes | 70,040 | 108,818 | 315,877 | 389,692 |
Net income | $190,740 | $238,932 | $706,061 | $813,077 |
Net income per share | ' | ' | ' | ' |
Basic | $0.69 | $0.85 | $2.53 | $2.88 |
Diluted | $0.68 | $0.84 | $2.51 | $2.84 |
Shares used in computing net income per share | ' | ' | ' | ' |
Basic | 276,107 | 280,818 | 278,853 | 282,805 |
Diluted | 278,750 | 284,624 | 281,576 | 286,559 |
Cash dividends declared per common share | $0.34 | $0.30 | $1.01 | $0.90 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $190,740 | $238,932 | $706,061 | $813,077 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' | ' |
Unrealized (losses) gains on cash flow hedging derivatives, net of tax of $1,349 and $(469) for quarter ended and $578 and $(5,439) for nine months ended March 29, 2014 and March 30, 2013, respectively | -108 | 1,005 | -752 | 8,861 |
Unrealized and realized gains (losses) on available-for-sale investments | 4,464 | -149 | 3,755 | -406 |
Foreign currency translation adjustments | 3,568 | -27,964 | -7,060 | -48,804 |
Other comprehensive income (loss), net of tax | 7,924 | -27,108 | -4,057 | -40,349 |
Comprehensive income | $198,664 | $211,824 | $702,004 | $772,728 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized (losses) gains on cash flow hedging derivatives, tax | $1,349 | ($469) | $578 | ($5,439) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $706,061 | $813,077 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 138,108 | 115,666 |
Provision for bad debt | 1,224 | -598 |
Share-based compensation | 68,732 | 89,209 |
Excess tax benefit from share-based compensation | -480 | -11,779 |
Deferred income taxes | 28,347 | -7,405 |
Non-cash sale of Reed Krakoff business; restructuring and transformation | -851 | ' |
Other non-cash charges, net | 3,856 | 18,435 |
Changes in operating assets and liabilities: | ' | ' |
(Increase) in trade accounts receivable | -23,949 | -10,542 |
(Increase) in inventories | -55,482 | -9,367 |
(Increase) decrease in other assets | -27,488 | 8,236 |
(Decrease) in accounts payable | -73,841 | -14,627 |
(Decrease) increase in accrued liabilities | -79,523 | 39,922 |
(Decrease) increase in other liabilities | -15,377 | 9,180 |
Net cash provided by operating activities | 669,337 | 1,039,407 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Equity-method investment | -62,856 | ' |
Distributor acquisitions, net of cash acquired | -1,984 | -53,337 |
Purchases of property and equipment | -157,624 | -159,931 |
Loans to related parties | ' | -11,088 |
Purchases of investments | -520,706 | -150,194 |
Proceeds from maturities and sales of investments | 69,285 | ' |
Net cash used in investing activities | -673,885 | -374,550 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Dividend payments | -283,724 | -339,724 |
Repurchase of common stock | -524,926 | -400,000 |
Repayment of long-term debt | -500 | -753 |
Borrowings under revolving credit facility | 360,000 | ' |
Repayment of revolving credit facility | -150,000 | ' |
Proceeds from share-based awards | 44,971 | 59,532 |
Taxes paid to net settle share-based awards | -39,473 | -28,286 |
Excess tax benefit from share-based compensation | 480 | 11,779 |
Net cash used in financing activities | -593,172 | -697,452 |
Effect of changes in foreign exchange rates on cash and cash equivalents | -1,602 | -8,261 |
Decrease in cash and cash equivalents | -599,322 | -40,856 |
Cash and cash equivalents at beginning of period | 1,062,785 | 917,215 |
Cash and cash equivalents at end of period | $463,463 | $876,359 |
Basis_of_Presentation_and_Orga
Basis of Presentation and Organization | 9 Months Ended |
Mar. 29, 2014 | |
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, cash flows and comprehensive income for the quarter and nine months (which represents 13 and 39 week periods, respectively) ended March 29, 2014 are not necessarily indicative of results to be expected for the entire fiscal year, which will end on June 28, 2014 (“fiscal 2014”). | |
In connection with the acquisition of the retail business in Europe, the Company evaluated the composition of its reportable segments and concluded that sales in this region should be included in the International segment. Accordingly, prior year sales related to Europe have been reclassified to the International segment to conform to the current year presentation. | |
Sale_of_Reed_Krakoff_Business_
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges | 9 Months Ended | ||||||
Mar. 29, 2014 | |||||||
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, the Company’s former President and Executive Creative Director. Coach received a de minimus amount of cash and convertible preferred membership interests representing 8.0% of Buyer’s issued and outstanding convertible preferred units and initial equity value immediately following such issuance. Coach recorded a cost method investment of $3,261, included in Long-term investments in the condensed consolidated balance sheet at March 29, 2014. | |||||||
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 the 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 charges and status of related liabilities 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 | -24,468 | -164 | -24,632 | ||||
Liability as of March 29, 2014 | $ 1,334 | $ - | $ 1,334 | ||||
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 29, 2014 | |
Acquisitions [Abstract] | ' |
Acquisitions | ' |
3. Acquisition | |
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 2013, $5,437 paid in the first quarter of fiscal 2014 offset by cash acquired as part of the acquisition of $3,453. The remaining $1,775 was paid at the beginning of the third 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 acquisition has been substantially completed resulting in goodwill of $22,534. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||
Mar. 29, 2014 | |||
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 nine months ended March 29, 2014 is as follows: | |||
Total | |||
Balance at June 29, 2013 | $ 345,039 | ||
Acquisition of European joint venture | 22,534 | ||
Foreign exchange impact | -4,156 | ||
Balance at March 29, 2014 | $ 363,417 | ||
At March 29, 2014 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 | 9 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
5. Stockholders’ Equity | ||||||||||||
Activity for the nine months ended March 29, 2014 and March 30, 2013 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 | - | - | - | 813,077 | - | 813,077 | ||||||
Other comprehensive loss | - | - | - | - | -40,349 | -40,349 | ||||||
Shares issued for stock options and employee | ||||||||||||
benefit plans | 2,884 | 29 | 31,217 | - | - | 31,246 | ||||||
Share-based compensation | - | - | 89,209 | - | - | 89,209 | ||||||
Excess tax benefit from share-based compensation | - | - | 11,779 | - | - | 11,779 | ||||||
Repurchase of common stock | -7,066 | -71 | - | -399,929 | - | -400,000 | ||||||
Dividends declared | - | - | - | -253,928 | - | -253,928 | ||||||
Balances at March 30, 2013 | 280,936 | $ 2,809 | $ 2,459,260 | $ (228,230) | $ 10,126 | $ 2,243,965 | ||||||
Balances at June 29, 2013 | 281,902 | $ 2,819 | $ 2,520,469 | $ (101,884) | $ (12,246) | $ 2,409,158 | ||||||
Net income | - | - | - | 706,061 | - | 706,061 | ||||||
Other comprehensive loss | - | - | - | - | -4,057 | -4,057 | ||||||
Shares issued for stock options and employee | ||||||||||||
benefit plans | 2,489 | 25 | 5,473 | - | - | 5,498 | ||||||
Share-based compensation | - | - | 78,566 | - | - | 78,566 | ||||||
Excess tax benefit from share-based | ||||||||||||
compensation | - | - | 480 | - | - | 480 | ||||||
Repurchase of common stock | -10,239 | -102 | - | -524,824 | - | -524,926 | ||||||
Dividends declared | - | - | - | -281,501 | - | -281,501 | ||||||
Balances at March 29, 2014 | 274,152 | $ 2,742 | $ 2,604,988 | $ (202,148) | $ (16,303) | $ 2,389,279 | ||||||
The components of accumulated other comprehensive income (loss), as of the dates indicated, are as follows: | ||||||||||||
Gains | Unrealized | |||||||||||
(Losses) | (Losses) Gains | |||||||||||
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 income (loss) before reclassifications | 8,976 | -406 | -48,804 | - | -40,234 | |||||||
Less: gains reclassified from accumulated other comprehensive income (loss) | 115 | - | - | - | 115 | |||||||
Net current-period other comprehensive income (loss) | 8,861 | -406 | -48,804 | - | -40,349 | |||||||
Balances at March 30, 2013 | $ 8,400 | $ (406) | $ 6,556 | $ (4,424) | $ 10,126 | |||||||
Balances at June 29, 2013 | $ 3,741 | $ (1,276) | $ (11,630) | $ (3,081) | $ (12,246) | |||||||
Other comprehensive income (loss) before reclassifications | 3,941 | 2,749 | -7,060 | - | -370 | |||||||
Less: gains reclassified from accumulated other comprehensive | ||||||||||||
income (loss) | 4,693 | 66 | - | -1,072 | 3,687 | |||||||
Net current-period other comprehensive (loss) income | -752 | 2,683 | -7,060 | 1,072 | -4,057 | |||||||
Balances at March 29, 2014 | $ 2,989 | $ 1,407 | $ (18,690) | $ (2,009) | $ (16,303) | |||||||
(a) The ending balances of accumulated other comprehensive loss related to cash flow hedges are net of tax of $(1,759) and $(4,863) as of March 29, 2014 and March 30, 2013, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(2,817) and $(84) as of March 29, 2014 and March 30, 2013, respectively. | ||||||||||||
(b) The components of Other includes the cumulative effect of the adoption of Accounting Standards Codification (“ASC”) 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $0 and $(2,009) as of March 29, 2014 and $(1,072) and $(3,352) as of March 30, 2013, respectively. As of March 29, 2014 and March 30, 2013 the balances of accumulated other comprehensive loss are net of tax of $1,490 and $2,656, respectively. | ||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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 | Nine Months Ended | |||||||
March 29, | March 30, | March 29, | March 30, | |||||
2014 | 2013 | 2014 | 2013 | |||||
Net income | $ 190,740 | $ 238,932 | $ 706,061 | $ 813,077 | ||||
Total weighted-average basic shares | 276,107 | 280,818 | 278,853 | 282,805 | ||||
Dilutive securities: | ||||||||
Employee benefit and share award plans | 948 | 1,408 | 996 | 1,317 | ||||
Stock option programs | 1,695 | 2,398 | 1,727 | 2,437 | ||||
Total weighted-average diluted shares | 278,750 | 284,624 | 281,576 | 286,559 | ||||
Net income per share: | ||||||||
Basic | $ | $ 0.85 | $ | $ 2.88 | ||||
0.69 | 2.53 | |||||||
Diluted | $ | $ 0.84 | $ | $ 2.84 | ||||
0.68 | 2.51 | |||||||
Outstanding options to purchase shares of common stock not included in the computation of diluted earnings per share, as these options’ exercise prices were greater than the average market price of the common shares and therefore would have had an anti-dilutive impact on diluted earnings per share, were as follows: | ||||||||
Number of Options | Range of Exercise Price | |||||||
29-Mar-14 | 5,414 | $50.07 - $78.46 | ||||||
30-Mar-13 | 5,087 | $51.56 - $78.46 | ||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Share-Based Compensation [Abstract] | ' | ||||||||
Share-Based Compensation | ' | ||||||||
7. Share-Based Compensation | |||||||||
The following table shows the total compensation cost and the related tax benefits recognized for share-based compensation plans in the income statement for the periods indicated: | |||||||||
Quarter Ended | Nine Months Ended | ||||||||
March 29, | March 30, | March 29, | March 30, | ||||||
2014 | 2013 | 2014 (a) | 2013 | ||||||
Share-based compensation expense | $ 25,805 | $ 30,183 | $ 78,566 | $ 89,209 | |||||
Income tax benefit related to share-based compensation expense | 7,938 | 10,172 | 24,374 | 30,340 | |||||
(a) Approximately $9,834 of share based compensation expense and $3,793 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Footnote 2 for information as it relates to the sale of the Reed Krakoff business. | |||||||||
Stock Options | |||||||||
A summary of stock option activity under the Coach stock option plans during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Options Outstanding | Weighted-Average Exercise Price | ||||||||
Outstanding at June 29, 2013 | 12,893 | $ 43.37 | |||||||
Granted | 2,322 | 52.95 | |||||||
Exercised | -1,285 | 33.07 | |||||||
Forfeited or expired | -2,165 | 55.50 | |||||||
Outstanding at March 29, 2014 | 11,765 | 44.15 | |||||||
Vested and expected to vest at March 29, 2014 | 11,272 | 43.85 | |||||||
Exercisable at March 29, 2014 | 7,641 | 38.70 | |||||||
At March 29, 2014, $30,623 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 2014 and fiscal 2013 was $9.94 and $13.07, respectively. The total intrinsic value of options exercised during the first nine months of fiscal 2014 and fiscal 2013 was $26,138 and $50,502, respectively. | |||||||||
The total cash received from these option exercises was $42,479 and $56,586, respectively, and the actual tax benefit realized from these option exercises was $9,665 and $19,377, respectively. | |||||||||
Service-based Restricted Stock Unit Awards (“RSUs”) | |||||||||
A summary of service-based RSU activity during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value Per Share | ||||||||
Non-vested at June 29, 2013 | 3,269 | $ 54.06 | |||||||
Granted | 1,962 | 53.09 | |||||||
Vested | -1,459 | 51.01 | |||||||
Forfeited | -485 | 55.03 | |||||||
Non-vested at March 29, 2014 | 3,287 | 54.70 | |||||||
At March 29, 2014, $109,669 of total unrecognized compensation cost related to non-vested RSU awards is expected to be recognized over a weighted-average period of 1.1 years. | |||||||||
The weighted-average grant-date fair value per share of RSU awards granted during the first nine months of fiscal 2014 and fiscal 2013 was $53.09 and $54.94, respectively. The total fair value of RSUs vested during the first nine months of fiscal 2014 and fiscal 2013 was $76,895 and $79,641, respectively. | |||||||||
Performance-based Restricted Stock Unit Awards (“PRSU”) | |||||||||
The Company grants performance-based share awards to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. A summary of performance-based share award activity, during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value Per Share | ||||||||
Non-vested at June 29, 2013 | 1,093 | $ 46.84 | |||||||
Granted | 308 | 32.29 | |||||||
Change due to performance condition achievement | 62 | 36.48 | |||||||
Vested | -435 | 40.27 | |||||||
Forfeited | -110 | 43.82 | |||||||
Non-vested at March 29, 2014 | 918 | 44.72 | |||||||
At March 29, 2014, $16,546 of total unrecognized compensation cost related to non-vested PRSU awards is expected to be recognized over a weighted-average period of 1.5 years. | |||||||||
The weighted-average grant-date fair value per share of PRSU awards granted during the first nine months of fiscal 2014 and fiscal 2013 was $32.29 and $50.55, respectively. The total fair value of shares vested during the first nine months of fiscal 2014 and fiscal 2013 was $23,149 and $0, respectively. | |||||||||
During the first nine months of fiscal 2014, the Company granted 241 shares of common stock with a fair value of $6,814 to selected executives as retention PRSU awards with a maximum potential number of shares issued and fair value (excluding dividends) of 321 shares and $9,085, respectively. These shares are included within the PRSU tables above. The shares of common stock under these PRSU awards will be earned and distributed based on performance criteria which compares the Company’s total stockholder return over the performance period to the total stockholder return of the companies included in the Standard & Poor’s 500 Index on the date of grant (excluding the Company). The grant date fair value of the PRSU awards was determined utilizing a Monte Carlo simulation and the following assumptions: expected volatility of 32.61%, risk-free interest rate of 0.63%, and dividend yield of 0.00%. | |||||||||
In the first nine months of fiscal 2014 and 2013, the cash tax benefit realized for the tax deductions from all service and performance-based RSUs were $33,091 and $23,247, respectively. | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
8. Fair Value Measurements | |||||||||||||
In accordance with Accounting Standards Codification ASC 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 March 29, 2014 and June 29, 2013: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
March 29, | June 29, | March 29, | June 29, | March 29, | June 29, | ||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||
Assets: | |||||||||||||
Cash equivalents (a) | $ 7,170 | $ 124,420 | $ 23,473 | $ 337,239 | $ - | $ - | |||||||
Short-term investments: | |||||||||||||
Time deposits (b) | - | - | 140,125 | 70,012 | - | - | |||||||
Government securities - U.S. (b) | 32,977 | - | - | - | - | - | |||||||
Corporate debt securities - U.S. (b) | - | - | 17,292 | 2,094 | - | - | |||||||
Corporate debt securities - non U.S. (b) | - | - | 27,140 | - | - | - | |||||||
Long-term investments: | |||||||||||||
Government securities - U.S. (c) | 63,791 | - | - | - | - | - | |||||||
Corporate debt securities - U.S. (c) | - | - | 154,457 | 63,442 | - | - | |||||||
Corporate debt securities - non U.S. (c) | - | - | 100,999 | 33,968 | - | - | |||||||
Auction rate security (d) | - | - | - | - | - | 6,000 | |||||||
Derivative Assets: | |||||||||||||
Zero-cost collar options (e) | - | - | 3,108 | 1,592 | - | - | |||||||
Forward contracts and cross currency swaps (e) | - | - | 130 | 2,390 | - | - | |||||||
Contractual obligations (e) | - | - | - | 523 | - | - | |||||||
Total | $ 103,938 | $ 124,420 | $ 466,724 | $ 511,260 | $ - | $ 6,000 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Zero-cost collar options (e) | $ - | $ - | $ - | $ 2,555 | $ - | $ - | |||||||
Forward contracts and cross currency swaps (e) | - | - | 22 | 85 | - | - | |||||||
Contractual obligations (e) | - | - | 81 | 255 | - | - | |||||||
Total | $ - | $ - | $ 103 | $ 2,895 | $ - | $ - | |||||||
(a) Cash equivalents consist of money market funds, time deposits, and commercial paper 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, U.S. Treasuries and government agency securities, and high-credit quality U.S. and non U.S. issued corporate debt securities, with maturities of less than one year in which management believes their carrying value approximates fair value based on their short maturity. | |||||||||||||
(c) Fair value is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2017. | |||||||||||||
(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. | |||||||||||||
(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. | |||||||||||||
The following table present a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended March 29, 2014 and March 30, 2013. Level 3 available-for-sale securities consist of an auction rate security. | |||||||||||||
Nine Months Ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of period | $ 6,000 | $ 6,000 | |||||||||||
Total gains/(losses) (realized/unrealized): | |||||||||||||
Included in income before taxes | -25 | - | |||||||||||
Losses included in other comprehensive income | 1,072 | - | |||||||||||
Sale of investment | -7,047 | - | |||||||||||
Balance, end of period | $ - | $ 6,000 | |||||||||||
Non-Financial Assets and Liabilities | |||||||||||||
The Company’s non-financial instruments, which primarily consist of goodwill and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill), non-financial instruments are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering market participant assumptions. | |||||||||||||
Adverse changes in future market conditions or weaker operating results compared to our expectations could result in losses or a potential impairment charge if the Company is unable to recover the carrying value of certain assets. | |||||||||||||
Debt
Debt | 9 Months Ended |
Mar. 29, 2014 | |
Debt [Abstract] | ' |
Debt | ' |
9. Debt | |
The Company has a $700 million credit facility with certain lenders and JP Morgan Chase Bank, N.A. as the primary lender and administrative agent (the “JP Morgan facility”) with a maturity date of March 26, 2018. The JP Morgan facility is available to finance the seasonal working capital requirements and general corporate purposes of the Company and its subsidiaries. At Coach’s request and lenders’ consent, revolving commitments of the JP Morgan facility may be increased to $1 billion. As of March 29, 2014 and June 29, 2013, there was $210,000 and $0 outstanding on the JP Morgan facility. Due to the short-term nature of this borrowing, the fair value approximates carrying value. | |
Borrowings under the JP Morgan Facility bear interest at a rate per annum equal to, at Coach’s option, either (a) a rate based on the rates applicable for deposits in the interbank market for U.S. dollars or the applicable currency in which the loans are made plus an applicable margin or (b) an alternate base rate (which is a rate equal to the greatest of (1) the Prime Rate in effect on such day, (2) the Federal Funds Effective Rate in effect on such day plus ½ of 1% or (3) the Adjusted LIBO Rate for a one month Interest Period on such day plus 1%). Additionally, Coach pays a commitment fee on the average daily unused amount of the JP Morgan Facility. At March 29, 2014, the commitment fee was 7.5 basis points. | |
As of March 29, 2014, Coach Japan, a wholly owned subsidiary of the Company, had credit facilities with several Japanese financial institutions to provide funding for working capital and general corporate purposes, allowing a maximum borrowing of 5.3 billion yen, or approximately $51 million, as of March 29, 2014. Interest is based on the Tokyo Interbank rate plus a margin of 25 to 30 basis points. During fiscal 2013 and through the third quarter of fiscal 2014, there were no borrowings under these facilities. | |
As of March 29, 2014, Coach Shanghai Limited, a wholly owned subsidiary of the Company, had a credit facility to provide funding for working capital and general corporate purposes, allowing a maximum borrowing of 63 million Chinese renminbi, or approximately $10 million, as of March 29, 2014. Interest is based on the People's Bank of China rate. During fiscal 2013 and through the third quarter of fiscal 2014, there were no borrowings under this facility. | |
Both the Coach Japan and Coach Shanghai Limited credit facilities can be terminated at any time by the respective financial institutions, and there is no guarantee that they will be available to the Company in future periods. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
In April 2013, the Company entered into a joint venture agreement with Related Companies, L.P. to develop a new office tower in Manhattan in the Hudson Yards district (“Hudson Yards joint venture”). The formation of the Hudson Yards joint venture serves as a financing vehicle for the construction project. Upon expected completion of the office tower in calendar 2015, the Company will retain a condominium interest in the office tower, which will serve as its new corporate headquarters. | |
The Company expects to invest approximately $370,000 in the Hudson Yards joint venture between the beginning of the fourth quarter of fiscal 2014 through fiscal 2016, with approximately $30,000 estimated for the remainder of fiscal 2014, depending on construction progress. During the quarter and nine months ended March 29, 2014, the Company invested $21,518 and $62,856, respectively, in the joint venture. Outside of investments in the joint venture, the Company expects to incur approximately $190,000 of capital expenditures over the remaining period of construction. | |
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. | |
Investments
Investments | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Investments [Abstract] | ' | ||||||||||||
Investments | ' | ||||||||||||
11. Investments | |||||||||||||
The following table summarizes the Company’s investments recorded within the consolidated balance sheet as of March 29, 2014 and June 29, 2013: | |||||||||||||
29-Mar-14 | 29-Jun-13 | ||||||||||||
Current | Non-current | Total | Current | Non-current | Total | ||||||||
Available-for-sale investments: | |||||||||||||
Government securities - U.S. (a) | $ 32,977 | $ 63,791 | $ 96,768 | $ - | $ - | $ - | |||||||
Corporate debt securities - U.S. (a) | 17,292 | 154,457 | 171,749 | 2,094 | 63,442 | 65,536 | |||||||
Corporate debt securities - non-U.S. (a) | 27,140 | 100,999 | 128,139 | - | 33,968 | 33,968 | |||||||
Auction rate security (b) | - | - | - | - | 6,000 | 6,000 | |||||||
Available-for-sale investments, total | $ 77,409 | $ 319,247 | $ 396,656 | $ 2,094 | $ 103,410 | $ 105,504 | |||||||
Held to maturity: | |||||||||||||
Government securities - U.S. (c) | $ 18,184 | $ - | $ 18,184 | $ - | $ - | $ - | |||||||
Corporate debt securities - U.S. (c) | 26,275 | - | 26,275 | - | - | - | |||||||
Corporate debt securities - non-U.S. (c) | 16,022 | - | 16,022 | - | - | - | |||||||
Commercial paper (c) | 33,426 | - | 33,426 | - | - | - | |||||||
Other: | |||||||||||||
Time deposits (d) | 140,125 | - | 140,125 | 70,012 | - | 70,012 | |||||||
Other (e) | - | 160,048 | 160,048 | - | 93,930 | 93,930 | |||||||
Total Investments | $ 311,441 | $ 479,295 | $ 790,736 | $ 72,106 | $ 197,340 | $ 269,446 | |||||||
(a) Portfolio of high-credit quality U.S. Treasuries and government agency debt securities and U.S. and non-U.S. issued corporate debt securities classified as available-for-sale and recorded at fair value which approximates amortized cost. These securities have maturity dates between calendar years 2014 and 2017. | |||||||||||||
(b) The investment was sold in the third quarter of fiscal 2014. Refer to Footnote 8 for further information. | |||||||||||||
(c) Portfolio of high-credit quality U.S. government agency debt securities, U.S. and non-U.S. issued corporate debt securities, and commercial paper classified as held to maturity and recorded at amortized cost which approximates fair value. These securities have maturity dates in the calendar year 2014 and 2015. | |||||||||||||
(d) Portfolio of time deposits with original maturities greater than 3 months. | |||||||||||||
(e) Equity method investment related to Hudson Yards joint venture and Reed Krakoff cost method investment. The Hudson Yards joint venture is determined to be a variable interest entity primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. | |||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
12. Derivative Instruments and Hedging Activities | |||||||||||||
Substantially all of the Company’s transactions involving international parties, excluding international customer 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 March 29, 2014 and June 29, 2013, zero-cost collar options with aggregate notional amounts of $93,997 and $193,352 were outstanding, respectively. Current maturity dates range from April 2014 to June 2015. | |||||||||||||
As of March 29, 2014, and June 29, 2013, the Company had entered into various short-term intercompany and related party loans denominated in various foreign currencies. Current maturity dates range from May 2014 to March 2018. To manage the exchange rate risk related to these loans, the Company entered into forward exchange and cross-currency swap contracts with notional amounts of $15,687 and $147,591, respectively as of March 29, 2014, and June 29, 2013 to hedge the total principal amount of the short-term intercompany and related party loans. 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 March 29, 2014 and June 29, 2013, the Company had entered into forward contracts to manage the exchange rate risk of contractual obligations with notional values of $4,000 and $16,944, respectively. Contractual obligations as of March 29, 2014 and June 29, 2013 consist of $4,000 and $10,000, respectively, due to Shinsegae International related to the acquisition of the domestic retail business in Korea. The Company also had contractual obligations at June 29, 2013 of $6,944 due to Hackett Limited related to the acquired European joint venture. | |||||||||||||
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: | |||||||||||||
Notional Value | Other Current Assets | Accrued Liabilities | |||||||||||
Fair Value | Fair Value | ||||||||||||
Derivatives Designated as Cash Flow Hedges | 29-Mar-14 | 29-Jun-13 | 29-Mar-14 | 29-Jun-13 | 29-Mar-14 | 29-Jun-13 | |||||||
Zero-cost collars | $ 93,997 | $ 193,352 | $ 3,108 | $ 1,592 | $ - | $ 2,555 | |||||||
Cross currency swaps | 13,110 | 111,195 | 130 | 1,366 | 1 | 85 | |||||||
Forward Contracts: | |||||||||||||
Intercompany & related party loans | 2,577 | 36,396 | - | 1,024 | 21 | - | |||||||
Contractual obligations | 4,000 | 16,944 | - | 523 | 81 | 255 | |||||||
Total | $ 113,684 | $ 357,887 | $ 3,238 | $ 4,505 | $ 103 | $ 2,895 | |||||||
Amount of Net Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||
Derivatives Designated as Cash Flow Hedges | 2014 | 2013 | 2014 | 2013 | |||||||||
Zero-cost collars | $ (1,287) | $ 2,572 | $ 3,993 | $ 8,156 | |||||||||
Forward contracts and cross currency swaps | 1,910 | -754 | -52 | 820 | |||||||||
Total | $ 623 | $ 1,818 | $ 3,941 | $ 8,976 | |||||||||
For the third quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $994 and $(1,029), respectively. For the first nine months of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $(2,239) and $(5,523), respectively. | |||||||||||||
Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
Location of Net Gain (Loss) Reclassified from | March 29, | March 30, | March 29, | March 30, | |||||||||
Accumulated OCI into Income (Effective Portion) | 2014 | 2013 | 2014 | 2013 | |||||||||
Cost of Sales | $ 731 | $ 813 | $ 4,693 | $ 115 | |||||||||
For the third quarter of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $(355) and $(560), respectively. For the first nine months of fiscal 2014 and fiscal 2013, the amounts above are net of tax of $(2,817) and $(84), respectively. | |||||||||||||
During the nine months ended March 29, 2014 and March 30, 2013, there were no material gains or losses recognized in income due to hedge ineffectiveness. | |||||||||||||
The Company expects $4,736 of net derivative gains included in accumulated other comprehensive income at March 29, 2014 will be reclassified into earnings within the next 12 months. This amount will vary due to fluctuations in the Japanese yen and Canadian dollar exchange rates. | |||||||||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||
Mar. 29, 2014 | |||||||||||
Segment Information [Abstract] | ' | ||||||||||
Segment Information | ' | ||||||||||
13. Segment Information | |||||||||||
The Company operates its business in five operating segments aggregated into two reportable segments, North America and International. | |||||||||||
· | The North America reportable segment includes sales to customers through North American Company-operated stores, including the Internet, and sales to North American wholesale customers and distributors. | ||||||||||
· | The International reportable segment includes sales to customers 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 (a) | Other (a)(b) | Unallocated | Total | |||||||
Quarter Ended March 29, 2014 | |||||||||||
Net sales | $ 647,923 | $ 440,635 | $ 11,068 | $ - | $ 1,099,626 | ||||||
Gross profit | 412,958 | 347,992 | 7,107 | 13,282 | 781,339 | ||||||
Operating income | 222,002 | 163,649 | 5,724 | -128,666 | 262,709 | ||||||
Income before provision for income taxes | 222,002 | 163,649 | 5,724 | -130,595 | 260,780 | ||||||
Depreciation and amortization expense | 16,978 | 14,368 | - | 13,823 | 45,169 | ||||||
Additions to long-lived assets | 27,186 | 12,677 | - | 10,999 | 50,862 | ||||||
Quarter Ended March 30, 2013 | |||||||||||
Net sales | $ 792,466 | $ 385,192 | $ 9,920 | $ - | $ 1,187,578 | ||||||
Gross profit | 538,996 | 311,544 | 7,999 | 21,649 | 880,188 | ||||||
Operating income | 325,602 | 151,603 | 6,719 | -135,431 | 348,493 | ||||||
Income before provision for income taxes | 325,602 | 151,603 | 6,719 | -136,174 | 347,750 | ||||||
Depreciation and amortization expense | 18,166 | 10,531 | - | 10,088 | 38,785 | ||||||
Additions to long-lived assets | 6,322 | 5,240 | - | 16,224 | 27,786 | ||||||
Nine Months Ended March 29, 2014 | |||||||||||
Net sales | $ 2,409,228 | $ 1,230,228 | $ 30,554 | $ - | $ 3,670,010 | ||||||
Gross profit | 1,550,963 | 971,505 | 23,401 | 44,722 | 2,590,591 | ||||||
Operating income | 926,129 | 434,812 | 19,785 | -360,440 | 1,020,286 | ||||||
Income before provision for income taxes | 926,129 | 434,812 | 19,785 | -358,788 | 1,021,938 | ||||||
Depreciation and amortization expense | 54,276 | 41,231 | - | 42,601 | 138,108 | ||||||
Additions to long-lived assets | 79,129 | 50,492 | - | 28,003 | 157,624 | ||||||
Nine Months Ended March 30, 2013 | |||||||||||
Net sales | $ 2,652,793 | $ 1,170,248 | $ 29,661 | $ - | $ 3,852,702 | ||||||
Gross profit | 1,795,103 | 936,058 | 24,935 | 54,642 | 2,810,738 | ||||||
Operating income | 1,130,958 | 438,770 | 19,417 | -382,358 | 1,206,787 | ||||||
Income before provision for income taxes | 1,130,958 | 438,770 | 19,417 | -386,376 | 1,202,769 | ||||||
Depreciation and amortization expense | 52,774 | 34,505 | - | 28,387 | 115,666 | ||||||
Additions to long-lived assets | 69,452 | 54,466 | - | 39,254 | 163,172 | ||||||
(a) As a result of the acquisition of the European joint venture (as discussed in Note 3), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For the quarter ended March 30, 2013, these amounts are net sales of $3,658, gross profit of $1,887, operating income of $1,858, and income before provision for income taxes of $1,858. For the nine months ended March 30, 2013, amounts reclassified are net sales of $15,845, gross profit of $7,657, operating income of $7,738, and income before provision for income taxes of $7,738. | |||||||||||
(b) 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 | Nine Months Ended | ||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Production variances | $ 13,281 | $ 21,648 | $ 44,722 | $ 54,640 | |||||||
Advertising, marketing and design | -61,047 | -58,108 | -178,900 | -178,659 | |||||||
Administration and information systems | -61,242 | -79,064 | -161,727 | -196,248 | |||||||
Distribution and customer service | -19,658 | -19,907 | -64,535 | -62,091 | |||||||
Total corporate unallocated | $ (128,666) | $ (135,431) | $ (360,440) | $ (382,358) | |||||||
Stock_Repurchase_Program
Stock Repurchase Program | 9 Months Ended |
Mar. 29, 2014 | |
Shock Repurchase Program [Abstract] | ' |
Stock Repurchase Program | ' |
14. 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 third quarter of fiscal 2014, the Company repurchased and retired 3,646 shares, or $174,989 at an average cost of $47.99. The Company did not repurchase any shares during the third quarter of fiscal 2013. | |
For the first nine months of fiscal 2014, the Company repurchased and retired 10,239 shares, or $524,926 of common stock, at an average cost of $51.27 per share. For the first nine months of fiscal 2013, the Company repurchased and retired 7,066 shares, or $400,000 of common stock, at an average cost of $56.61 per share. | |
As of March 29, 2014, Coach had $836,701 remaining in the stock repurchase program. | |
Sale_of_Reed_Krakoff_Business_1
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges (Tables) | 9 Months Ended | ||||||
Mar. 29, 2014 | |||||||
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges [Abstract] | ' | ||||||
Summary of our Restructuring and Transformation Related Plan | ' | ||||||
A summary of charges and status of related liabilities 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 | -24,468 | -164 | -24,632 | ||||
Liability as of March 29, 2014 | $ 1,334 | $ - | $ 1,334 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||
Mar. 29, 2014 | |||
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 nine months ended March 29, 2014 is as follows: | |||
Total | |||
Balance at June 29, 2013 | $ 345,039 | ||
Acquisition of European joint venture | 22,534 | ||
Foreign exchange impact | -4,156 | ||
Balance at March 29, 2014 | $ 363,417 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||
Mar. 29, 2014 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Schedule of Stockholders Equity | ' | |||||||||||
Activity for the nine months ended March 29, 2014 and March 30, 2013 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 | - | - | - | 813,077 | - | 813,077 | ||||||
Other comprehensive loss | - | - | - | - | -40,349 | -40,349 | ||||||
Shares issued for stock options and employee | ||||||||||||
benefit plans | 2,884 | 29 | 31,217 | - | - | 31,246 | ||||||
Share-based compensation | - | - | 89,209 | - | - | 89,209 | ||||||
Excess tax benefit from share-based compensation | - | - | 11,779 | - | - | 11,779 | ||||||
Repurchase of common stock | -7,066 | -71 | - | -399,929 | - | -400,000 | ||||||
Dividends declared | - | - | - | -253,928 | - | -253,928 | ||||||
Balances at March 30, 2013 | 280,936 | $ 2,809 | $ 2,459,260 | $ (228,230) | $ 10,126 | $ 2,243,965 | ||||||
Balances at June 29, 2013 | 281,902 | $ 2,819 | $ 2,520,469 | $ (101,884) | $ (12,246) | $ 2,409,158 | ||||||
Net income | - | - | - | 706,061 | - | 706,061 | ||||||
Other comprehensive loss | - | - | - | - | -4,057 | -4,057 | ||||||
Shares issued for stock options and employee | ||||||||||||
benefit plans | 2,489 | 25 | 5,473 | - | - | 5,498 | ||||||
Share-based compensation | - | - | 78,566 | - | - | 78,566 | ||||||
Excess tax benefit from share-based | ||||||||||||
compensation | - | - | 480 | - | - | 480 | ||||||
Repurchase of common stock | -10,239 | -102 | - | -524,824 | - | -524,926 | ||||||
Dividends declared | - | - | - | -281,501 | - | -281,501 | ||||||
Balances at March 29, 2014 | 274,152 | $ 2,742 | $ 2,604,988 | $ (202,148) | $ (16,303) | $ 2,389,279 | ||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The components of accumulated other comprehensive income (loss), as of the dates indicated, are as follows: | ||||||||||||
Gains | Unrealized | |||||||||||
(Losses) | (Losses) Gains | |||||||||||
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 income (loss) before reclassifications | 8,976 | -406 | -48,804 | - | -40,234 | |||||||
Less: gains reclassified from accumulated other comprehensive income (loss) | 115 | - | - | - | 115 | |||||||
Net current-period other comprehensive income (loss) | 8,861 | -406 | -48,804 | - | -40,349 | |||||||
Balances at March 30, 2013 | $ 8,400 | $ (406) | $ 6,556 | $ (4,424) | $ 10,126 | |||||||
Balances at June 29, 2013 | $ 3,741 | $ (1,276) | $ (11,630) | $ (3,081) | $ (12,246) | |||||||
Other comprehensive income (loss) before reclassifications | 3,941 | 2,749 | -7,060 | - | -370 | |||||||
Less: gains reclassified from accumulated other comprehensive | ||||||||||||
income (loss) | 4,693 | 66 | - | -1,072 | 3,687 | |||||||
Net current-period other comprehensive (loss) income | -752 | 2,683 | -7,060 | 1,072 | -4,057 | |||||||
Balances at March 29, 2014 | $ 2,989 | $ 1,407 | $ (18,690) | $ (2,009) | $ (16,303) | |||||||
(a) The ending balances of accumulated other comprehensive loss related to cash flow hedges are net of tax of $(1,759) and $(4,863) as of March 29, 2014 and March 30, 2013, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(2,817) and $(84) as of March 29, 2014 and March 30, 2013, respectively. | ||||||||||||
(b) The components of Other includes the cumulative effect of the adoption of Accounting Standards Codification (“ASC”) 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $0 and $(2,009) as of March 29, 2014 and $(1,072) and $(3,352) as of March 30, 2013, respectively. As of March 29, 2014 and March 30, 2013 the balances of accumulated other comprehensive loss are net of tax of $1,490 and $2,656, respectively. | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||
The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted net income per share: | ||||||||
Quarter Ended | Nine Months Ended | |||||||
March 29, | March 30, | March 29, | March 30, | |||||
2014 | 2013 | 2014 | 2013 | |||||
Net income | $ 190,740 | $ 238,932 | $ 706,061 | $ 813,077 | ||||
Total weighted-average basic shares | 276,107 | 280,818 | 278,853 | 282,805 | ||||
Dilutive securities: | ||||||||
Employee benefit and share award plans | 948 | 1,408 | 996 | 1,317 | ||||
Stock option programs | 1,695 | 2,398 | 1,727 | 2,437 | ||||
Total weighted-average diluted shares | 278,750 | 284,624 | 281,576 | 286,559 | ||||
Net income per share: | ||||||||
Basic | $ | $ 0.85 | $ | $ 2.88 | ||||
0.69 | 2.53 | |||||||
Diluted | $ | $ 0.84 | $ | $ 2.84 | ||||
0.68 | 2.51 | |||||||
Schedule of the Anti-Dilutive Impact on Diluted Earnings per Share | ' | |||||||
Outstanding options to purchase shares of common stock not included in the computation of diluted earnings per share, as these options’ exercise prices were greater than the average market price of the common shares and therefore would have had an anti-dilutive impact on diluted earnings per share, were as follows: | ||||||||
Number of Options | Range of Exercise Price | |||||||
29-Mar-14 | 5,414 | $50.07 - $78.46 | ||||||
30-Mar-13 | 5,087 | $51.56 - $78.46 | ||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||
The following table shows the total compensation cost and the related tax benefits recognized for share-based compensation plans in the income statement for the periods indicated: | |||||||||
Quarter Ended | Nine Months Ended | ||||||||
March 29, | March 30, | March 29, | March 30, | ||||||
2014 | 2013 | 2014 (a) | 2013 | ||||||
Share-based compensation expense | $ 25,805 | $ 30,183 | $ 78,566 | $ 89,209 | |||||
Income tax benefit related to share-based compensation expense | 7,938 | 10,172 | 24,374 | 30,340 | |||||
(a) Approximately $9,834 of share based compensation expense and $3,793 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Footnote 2 for information as it relates to the sale of the Reed Krakoff business. | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||
A summary of stock option activity under the Coach stock option plans during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Options Outstanding | Weighted-Average Exercise Price | ||||||||
Outstanding at June 29, 2013 | 12,893 | $ 43.37 | |||||||
Granted | 2,322 | 52.95 | |||||||
Exercised | -1,285 | 33.07 | |||||||
Forfeited or expired | -2,165 | 55.50 | |||||||
Outstanding at March 29, 2014 | 11,765 | 44.15 | |||||||
Vested and expected to vest at March 29, 2014 | 11,272 | 43.85 | |||||||
Exercisable at March 29, 2014 | 7,641 | 38.70 | |||||||
Service-based Restricted Stock Units [Member] | ' | ||||||||
Schedule of Nonvested Share Activity | ' | ||||||||
A summary of service-based RSU activity during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value Per Share | ||||||||
Non-vested at June 29, 2013 | 3,269 | $ 54.06 | |||||||
Granted | 1,962 | 53.09 | |||||||
Vested | -1,459 | 51.01 | |||||||
Forfeited | -485 | 55.03 | |||||||
Non-vested at March 29, 2014 | 3,287 | 54.70 | |||||||
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' | ||||||||
Schedule of Nonvested Share Activity | ' | ||||||||
A summary of performance-based share award activity, during the nine months ended March 29, 2014 is as follows: | |||||||||
Number of Non-vested Share Units | Weighted-Average Grant-Date Fair Value Per Share | ||||||||
Non-vested at June 29, 2013 | 1,093 | $ 46.84 | |||||||
Granted | 308 | 32.29 | |||||||
Change due to performance condition achievement | 62 | 36.48 | |||||||
Vested | -435 | 40.27 | |||||||
Forfeited | -110 | 43.82 | |||||||
Non-vested at March 29, 2014 | 918 | 44.72 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
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 March 29, 2014 and June 29, 2013: | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
March 29, | June 29, | March 29, | June 29, | March 29, | June 29, | ||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||
Assets: | |||||||||||||
Cash equivalents (a) | $ 7,170 | $ 124,420 | $ 23,473 | $ 337,239 | $ - | $ - | |||||||
Short-term investments: | |||||||||||||
Time deposits (b) | - | - | 140,125 | 70,012 | - | - | |||||||
Government securities - U.S. (b) | 32,977 | - | - | - | - | - | |||||||
Corporate debt securities - U.S. (b) | - | - | 17,292 | 2,094 | - | - | |||||||
Corporate debt securities - non U.S. (b) | - | - | 27,140 | - | - | - | |||||||
Long-term investments: | |||||||||||||
Government securities - U.S. (c) | 63,791 | - | - | - | - | - | |||||||
Corporate debt securities - U.S. (c) | - | - | 154,457 | 63,442 | - | - | |||||||
Corporate debt securities - non U.S. (c) | - | - | 100,999 | 33,968 | - | - | |||||||
Auction rate security (d) | - | - | - | - | - | 6,000 | |||||||
Derivative Assets: | |||||||||||||
Zero-cost collar options (e) | - | - | 3,108 | 1,592 | - | - | |||||||
Forward contracts and cross currency swaps (e) | - | - | 130 | 2,390 | - | - | |||||||
Contractual obligations (e) | - | - | - | 523 | - | - | |||||||
Total | $ 103,938 | $ 124,420 | $ 466,724 | $ 511,260 | $ - | $ 6,000 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities: | |||||||||||||
Zero-cost collar options (e) | $ - | $ - | $ - | $ 2,555 | $ - | $ - | |||||||
Forward contracts and cross currency swaps (e) | - | - | 22 | 85 | - | - | |||||||
Contractual obligations (e) | - | - | 81 | 255 | - | - | |||||||
Total | $ - | $ - | $ 103 | $ 2,895 | $ - | $ - | |||||||
(a) Cash equivalents consist of money market funds, time deposits, and commercial paper 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, U.S. Treasuries and government agency securities, and high-credit quality U.S. and non U.S. issued corporate debt securities, with maturities of less than one year in which management believes their carrying value approximates fair value based on their short maturity. | |||||||||||||
(c) Fair value is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2017. | |||||||||||||
(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. | |||||||||||||
(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. | |||||||||||||
Fair Value Measured on a Recurring Basis Using Significant Unobservable Inputs | ' | ||||||||||||
The following table present a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended March 29, 2014 and March 30, 2013. Level 3 available-for-sale securities consist of an auction rate security. | |||||||||||||
Nine Months Ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of period | $ 6,000 | $ 6,000 | |||||||||||
Total gains/(losses) (realized/unrealized): | |||||||||||||
Included in income before taxes | -25 | - | |||||||||||
Losses included in other comprehensive income | 1,072 | - | |||||||||||
Sale of investment | -7,047 | - | |||||||||||
Balance, end of period | $ - | $ 6,000 | |||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Investments [Abstract] | ' | ||||||||||||
Summary of Investments | ' | ||||||||||||
The following table summarizes the Company’s investments recorded within the consolidated balance sheet as of March 29, 2014 and June 29, 2013: | |||||||||||||
29-Mar-14 | 29-Jun-13 | ||||||||||||
Current | Non-current | Total | Current | Non-current | Total | ||||||||
Available-for-sale investments: | |||||||||||||
Government securities - U.S. (a) | $ 32,977 | $ 63,791 | $ 96,768 | $ - | $ - | $ - | |||||||
Corporate debt securities - U.S. (a) | 17,292 | 154,457 | 171,749 | 2,094 | 63,442 | 65,536 | |||||||
Corporate debt securities - non-U.S. (a) | 27,140 | 100,999 | 128,139 | - | 33,968 | 33,968 | |||||||
Auction rate security (b) | - | - | - | - | 6,000 | 6,000 | |||||||
Available-for-sale investments, total | $ 77,409 | $ 319,247 | $ 396,656 | $ 2,094 | $ 103,410 | $ 105,504 | |||||||
Held to maturity: | |||||||||||||
Government securities - U.S. (c) | $ 18,184 | $ - | $ 18,184 | $ - | $ - | $ - | |||||||
Corporate debt securities - U.S. (c) | 26,275 | - | 26,275 | - | - | - | |||||||
Corporate debt securities - non-U.S. (c) | 16,022 | - | 16,022 | - | - | - | |||||||
Commercial paper (c) | 33,426 | - | 33,426 | - | - | - | |||||||
Other: | |||||||||||||
Time deposits (d) | 140,125 | - | 140,125 | 70,012 | - | 70,012 | |||||||
Other (e) | - | 160,048 | 160,048 | - | 93,930 | 93,930 | |||||||
Total Investments | $ 311,441 | $ 479,295 | $ 790,736 | $ 72,106 | $ 197,340 | $ 269,446 | |||||||
(a) Portfolio of high-credit quality U.S. Treasuries and government agency debt securities and U.S. and non-U.S. issued corporate debt securities classified as available-for-sale and recorded at fair value which approximates amortized cost. These securities have maturity dates between calendar years 2014 and 2017. | |||||||||||||
(b) The investment was sold in the third quarter of fiscal 2014. Refer to Footnote 8 for further information. | |||||||||||||
(c) Portfolio of high-credit quality U.S. government agency debt securities, U.S. and non-U.S. issued corporate debt securities, and commercial paper classified as held to maturity and recorded at amortized cost which approximates fair value. These securities have maturity dates in the calendar year 2014 and 2015. | |||||||||||||
(d) Portfolio of time deposits with original maturities greater than 3 months. | |||||||||||||
(e) Equity method investment related to Hudson Yards joint venture and Reed Krakoff cost method investment. The Hudson Yards joint venture is determined to be a variable interest entity primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. The Company’s maximum loss exposure is limited to the committed capital. | |||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||
The following tables provide information related to the Company’s derivatives: | |||||||||||||
Notional Value | Other Current Assets | Accrued Liabilities | |||||||||||
Fair Value | Fair Value | ||||||||||||
Derivatives Designated as Cash Flow Hedges | 29-Mar-14 | 29-Jun-13 | 29-Mar-14 | 29-Jun-13 | 29-Mar-14 | 29-Jun-13 | |||||||
Zero-cost collars | $ 93,997 | $ 193,352 | $ 3,108 | $ 1,592 | $ - | $ 2,555 | |||||||
Cross currency swaps | 13,110 | 111,195 | 130 | 1,366 | 1 | 85 | |||||||
Forward Contracts: | |||||||||||||
Intercompany & related party loans | 2,577 | 36,396 | - | 1,024 | 21 | - | |||||||
Contractual obligations | 4,000 | 16,944 | - | 523 | 81 | 255 | |||||||
Total | $ 113,684 | $ 357,887 | $ 3,238 | $ 4,505 | $ 103 | $ 2,895 | |||||||
Amount of Net Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||
Derivatives Designated as Cash Flow Hedges | 2014 | 2013 | 2014 | 2013 | |||||||||
Zero-cost collars | $ (1,287) | $ 2,572 | $ 3,993 | $ 8,156 | |||||||||
Forward contracts and cross currency swaps | 1,910 | -754 | -52 | 820 | |||||||||
Total | $ 623 | $ 1,818 | $ 3,941 | $ 8,976 | |||||||||
Hedging Activity Affected Accumulated Other Comprehensive Loss or Income Net of Tax | ' | ||||||||||||
Amount of Net Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
Location of Net Gain (Loss) Reclassified from | March 29, | March 30, | March 29, | March 30, | |||||||||
Accumulated OCI into Income (Effective Portion) | 2014 | 2013 | 2014 | 2013 | |||||||||
Cost of Sales | $ 731 | $ 813 | $ 4,693 | $ 115 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||
Mar. 29, 2014 | |||||||||||
Segment Information [Abstract] | ' | ||||||||||
Summary of Segment Information | ' | ||||||||||
North | Corporate | ||||||||||
America | International (a) | Other (a)(b) | Unallocated | Total | |||||||
Quarter Ended March 29, 2014 | |||||||||||
Net sales | $ 647,923 | $ 440,635 | $ 11,068 | $ - | $ 1,099,626 | ||||||
Gross profit | 412,958 | 347,992 | 7,107 | 13,282 | 781,339 | ||||||
Operating income | 222,002 | 163,649 | 5,724 | -128,666 | 262,709 | ||||||
Income before provision for income taxes | 222,002 | 163,649 | 5,724 | -130,595 | 260,780 | ||||||
Depreciation and amortization expense | 16,978 | 14,368 | - | 13,823 | 45,169 | ||||||
Additions to long-lived assets | 27,186 | 12,677 | - | 10,999 | 50,862 | ||||||
Quarter Ended March 30, 2013 | |||||||||||
Net sales | $ 792,466 | $ 385,192 | $ 9,920 | $ - | $ 1,187,578 | ||||||
Gross profit | 538,996 | 311,544 | 7,999 | 21,649 | 880,188 | ||||||
Operating income | 325,602 | 151,603 | 6,719 | -135,431 | 348,493 | ||||||
Income before provision for income taxes | 325,602 | 151,603 | 6,719 | -136,174 | 347,750 | ||||||
Depreciation and amortization expense | 18,166 | 10,531 | - | 10,088 | 38,785 | ||||||
Additions to long-lived assets | 6,322 | 5,240 | - | 16,224 | 27,786 | ||||||
Nine Months Ended March 29, 2014 | |||||||||||
Net sales | $ 2,409,228 | $ 1,230,228 | $ 30,554 | $ - | $ 3,670,010 | ||||||
Gross profit | 1,550,963 | 971,505 | 23,401 | 44,722 | 2,590,591 | ||||||
Operating income | 926,129 | 434,812 | 19,785 | -360,440 | 1,020,286 | ||||||
Income before provision for income taxes | 926,129 | 434,812 | 19,785 | -358,788 | 1,021,938 | ||||||
Depreciation and amortization expense | 54,276 | 41,231 | - | 42,601 | 138,108 | ||||||
Additions to long-lived assets | 79,129 | 50,492 | - | 28,003 | 157,624 | ||||||
Nine Months Ended March 30, 2013 | |||||||||||
Net sales | $ 2,652,793 | $ 1,170,248 | $ 29,661 | $ - | $ 3,852,702 | ||||||
Gross profit | 1,795,103 | 936,058 | 24,935 | 54,642 | 2,810,738 | ||||||
Operating income | 1,130,958 | 438,770 | 19,417 | -382,358 | 1,206,787 | ||||||
Income before provision for income taxes | 1,130,958 | 438,770 | 19,417 | -386,376 | 1,202,769 | ||||||
Depreciation and amortization expense | 52,774 | 34,505 | - | 28,387 | 115,666 | ||||||
Additions to long-lived assets | 69,452 | 54,466 | - | 39,254 | 163,172 | ||||||
(a) As a result of the acquisition of the European joint venture (as discussed in Note 3), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For the quarter ended March 30, 2013, these amounts are net sales of $3,658, gross profit of $1,887, operating income of $1,858, and income before provision for income taxes of $1,858. For the nine months ended March 30, 2013, amounts reclassified are net sales of $15,845, gross profit of $7,657, operating income of $7,738, and income before provision for income taxes of $7,738. | |||||||||||
(b) 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 | Nine Months Ended | ||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Production variances | $ 13,281 | $ 21,648 | $ 44,722 | $ 54,640 | |||||||
Advertising, marketing and design | -61,047 | -58,108 | -178,900 | -178,659 | |||||||
Administration and information systems | -61,242 | -79,064 | -161,727 | -196,248 | |||||||
Distribution and customer service | -19,658 | -19,907 | -64,535 | -62,091 | |||||||
Total corporate unallocated | $ (128,666) | $ (135,431) | $ (360,440) | $ (382,358) | |||||||
Basis_of_Presentation_and_Orga1
Basis of Presentation and Organization (Details) | 9 Months Ended |
Mar. 29, 2014 | |
Basis of Presentation and Organization [Abstract] | ' |
Operating cycle | 'The results of operations, cash flows and comprehensive income for the quarter and nine months (which represents 13 and 39 week periods, respectively) ended March 29, 2014 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_2
Sale of Reed Krakoff Business; Restructuring and Transformational Related Charges (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Sep. 28, 2013 |
Reed Krakoff [Member] | Reed Krakoff [Member] | |||
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $53,202 | $171 | ' | ' |
Joint venture agreement, ownership percentage | ' | ' | 8.00% | ' |
Cost method investment | ' | ' | 3,261 | ' |
Gain (loss) on sale of business | ' | ' | ' | ($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 | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 29, 2013 | Mar. 29, 2014 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of June 29, 2013 | ' | $27,962 |
(Income) expense | 53,202 | 171 |
Non-cash charges | ' | -2,167 |
Cash payments and settlements | ' | -24,632 |
Liability as of March 29, 2014 | 27,962 | 1,334 |
Severance and Related Costs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of June 29, 2013 | ' | 27,879 |
(Income) expense | ' | -1,732 |
Non-cash charges | ' | -345 |
Cash payments and settlements | ' | -24,468 |
Liability as of March 29, 2014 | ' | 1,334 |
Impairment & Other [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability as of June 29, 2013 | ' | 83 |
(Income) expense | ' | 1,903 |
Non-cash charges | ' | -1,822 |
Cash payments and settlements | ' | ($164) |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (European Joint Venture [Member], USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Sep. 28, 2013 | Mar. 29, 2014 | Jun. 29, 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 |
Cash paid for acquisition | 1,775 | 5,437 | ' | 7,893 | ' |
Loan forgiven | ' | ' | 18,019 | ' | ' |
Purchase price allocation, goodwill | ' | ' | 22,534 | ' | ' |
Cash acquired as part of acquisition | ' | $3,453 | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Narrative) (Details) (Trademarks [Member], USD $) | Mar. 29, 2014 | 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_Intangible_Assets3
Goodwill and Intangible Assets (Change in Carrying Value of Goodwill) (Details) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | International [Member] | ||
Beginning balance | $363,417 | $345,039 | $345,039 |
Acquisition of European joint venture | ' | ' | 22,534 |
Foreign exchange impact | ' | ' | -4,156 |
Ending balance | $363,417 | $345,039 | $363,417 |
Stockholders_Equity_Stockholde
Stockholders' Equity (Stockholders' Equity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Beginning balance | ' | ' | $2,409,158 | $1,992,931 |
Net income | 190,740 | 238,932 | 706,061 | 813,077 |
Other comprehensive loss | ' | ' | -4,057 | -40,349 |
Shares issued for stock options and employee benefit plans | ' | ' | 5,498 | 31,246 |
Share-based compensation | ' | ' | 78,566 | 89,209 |
Excess tax benefit from share-based compensation | ' | ' | 480 | 11,779 |
Repurchase and retirement of common stock (shares) | -3,646 | ' | -10,239 | -7,066 |
Repurchase and retirement of common stock | -174,989 | ' | -524,926 | -400,000 |
Dividends declared | ' | ' | -281,501 | -253,928 |
Ending balance | 2,389,279 | 2,243,965 | 2,389,279 | 2,243,965 |
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 | ' | ' | 2,489 | 2,884 |
Shares issued for stock options and employee benefit plans | ' | ' | 25 | 29 |
Repurchase and retirement of common stock (shares) | ' | ' | -10,239 | -7,066 |
Repurchase and retirement of common stock | ' | ' | -102 | -71 |
Ending balance | 2,742 | 2,809 | 2,742 | 2,809 |
Ending balance, shares | 274,152 | 280,936 | 274,152 | 280,936 |
Additional Paid-in Capital [Member] | ' | ' | ' | ' |
Beginning balance | ' | ' | 2,520,469 | 2,327,055 |
Shares issued for stock options and employee benefit plans | ' | ' | 5,473 | 31,217 |
Share-based compensation | ' | ' | 78,566 | 89,209 |
Excess tax benefit from share-based compensation | ' | ' | 480 | 11,779 |
Ending balance | 2,604,988 | 2,459,260 | 2,604,988 | 2,459,260 |
Retained Earnings/(Accumulated Deficit) [Member] | ' | ' | ' | ' |
Beginning balance | ' | ' | -101,884 | -387,450 |
Net income | ' | ' | 706,061 | 813,077 |
Repurchase and retirement of common stock | ' | ' | -524,824 | -399,929 |
Dividends declared | ' | ' | -281,501 | -253,928 |
Ending balance | -202,148 | -228,230 | -202,148 | -228,230 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Beginning balance | ' | ' | -12,246 | 50,475 |
Other comprehensive loss | ' | ' | -4,057 | -40,349 |
Ending balance | ($16,303) | $10,126 | ($16,303) | $10,126 |
Stockholders_Equity_Accumulate
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | ($12,246) | $50,475 | ||||
Other comprehensive income (loss), before reclassifications | ' | ' | -370 | -40,234 | ||||
Less: gains (losses) reclassified from accumulated other comprehensive income | ' | ' | 3,687 | 115 | ||||
Net current-period other comprehensive income (loss) | 7,924 | -27,108 | -4,057 | -40,349 | ||||
Accumulated other comprehensive (loss) income, ending balance | -16,303 | 10,126 | -16,303 | 10,126 | ||||
Provision for income taxes | 70,040 | 108,818 | 315,877 | 389,692 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Provision for income taxes | ' | ' | -2,817 | -84 | ||||
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 income (loss), before reclassifications | ' | ' | 3,941 | [1] | 8,976 | [1] | ||
Less: gains (losses) reclassified from accumulated other comprehensive income | ' | ' | 4,693 | [1] | 115 | [1] | ||
Net current-period other comprehensive income (loss) | ' | ' | -752 | [1] | 8,861 | [1] | ||
Accumulated other comprehensive (loss) income, ending balance | 2,989 | [1] | 8,400 | [1] | 2,989 | [1] | 8,400 | [1] |
Unrealized 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 income (loss), before reclassifications | ' | ' | 2,749 | -406 | ||||
Less: gains (losses) reclassified from accumulated other comprehensive income | ' | ' | 66 | ' | ||||
Net current-period other comprehensive income (loss) | ' | ' | 2,683 | -406 | ||||
Accumulated other comprehensive (loss) income, ending balance | 1,407 | -406 | 1,407 | -406 | ||||
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 income (loss), before reclassifications | ' | ' | -7,060 | -48,804 | ||||
Net current-period other comprehensive income (loss) | ' | ' | -7,060 | -48,804 | ||||
Accumulated other comprehensive (loss) income, ending balance | -18,690 | 6,556 | -18,690 | 6,556 | ||||
Other [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Accumulated other comprehensive (loss) income, beginning balance | ' | ' | -3,081 | [2] | -4,424 | [2] | ||
Less: gains (losses) reclassified from accumulated other comprehensive income | ' | ' | -1,072 | [2] | ' | |||
Net current-period other comprehensive income (loss) | ' | ' | 1,072 | [2] | ' | |||
Accumulated other comprehensive (loss) income, ending balance | -2,009 | [2] | -4,424 | [2] | -2,009 | [2] | -4,424 | [2] |
Provision for income taxes | ' | ' | 1,490 | 2,656 | ||||
Cumulative effect of adoption of ASC 320-10-35-17 | 0 | -1,072 | 0 | -1,072 | ||||
ASC 715 adjustment and minimum pension liability | -2,009 | -3,352 | -2,009 | -3,352 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Provision for income taxes | ' | ' | ($1,759) | ($4,863) | ||||
[1] | The ending balances of accumulated other comprehensive loss related to cash flow hedges are net of tax of $(1,759) and $(4,863) as of March 29, 2014 and March 30, 2013, respectively. The amounts reclassified from accumulated other comprehensive loss are net of tax of $(2,817) and $(84) as of March 29, 2014 and March 30, 2013, respectively. | |||||||
[2] | The components of Other includes the cumulative effect of the adoption of Accounting Standards Codification (bASCb) 320-10-35-17 and the ASC 715 adjustment and minimum pension liability of $0 and $(2,009) as of March 29, 2014 and $(1,072) and $(3,352) as of March 30, 2013, respectively. As of March 29, 2014 and March 30, 2013 the balances of accumulated other comprehensive loss are net of tax of $1,490 and $2,656, respectively. |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of Weighted Average Shares Outstanding and Calculation of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Net income | $190,740 | $238,932 | $706,061 | $813,077 |
Total weighted-average basic shares | 276,107 | 280,818 | 278,853 | 282,805 |
Dilutive securities: | ' | ' | ' | ' |
Total weighted-average diluted shares | 278,750 | 284,624 | 281,576 | 286,559 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.69 | $0.85 | $2.53 | $2.88 |
Diluted | $0.68 | $0.84 | $2.51 | $2.84 |
Employee Benefit and Share Award Plans [Member] | ' | ' | ' | ' |
Dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 948 | 1,408 | 996 | 1,317 |
Stock Options [Member] | ' | ' | ' | ' |
Dilutive securities: | ' | ' | ' | ' |
Dilutive securities | 1,695 | 2,398 | 1,727 | 2,437 |
Earnings_Per_Share_AntiDilutiv
Earnings Per Share (Anti-Dilutive Impact on Diluted Earnings per Share) (Details) (USD $) | 9 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Options to purchase shares of common stock excluded from the computation of diluted earnings per share | 5,414 | 5,087 |
Options' exercise prices, lower limit | $50.07 | $51.56 |
Options' exercise prices, upper limit | $78.46 | $78.46 |
ShareBased_Compensation_Narrat
Share-Based Compensation - (Narrative) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Total unrecognized compensation cost related to non-vested stock options | $30,623 | ' |
Options outstanding, weighted average remaining contractual term | '1 year | ' |
Stock Options [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Weighted-average grant-date fair value of options granted | $9.94 | $13.07 |
Total intrinsic value of options exercised | 26,138 | 50,502 |
Total cash received from option exercises | 42,479 | 56,586 |
Actual tax benefit realized for the tax deductions from these option exercises | 9,665 | 19,377 |
Restricted Stock Unit Awards ("RSU") [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Actual tax benefit realized for the tax deductions from these option exercises | 33,091 | 23,247 |
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Expected term (years) | '1 year 6 months | ' |
Total unrecognized compensation cost related to non-vested awards | 16,546 | ' |
Weighted-average grant-date fair value of options granted | $32.29 | $50.55 |
Total fair value of shares vested | 23,149 | 0 |
Total Stockholder Return Performance Restriced Stock Units [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Grant date fair value of award | 6,814 | ' |
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 | 241 | ' |
Service-based Restricted Stock Units [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Total unrecognized compensation cost related to non-vested awards | 109,669 | ' |
Total unrecognized compensation cost related to non-vested awards, recognized over a weighted-average period | '1 year 1 month 6 days | ' |
Weighted-average grant-date fair value of options granted | $53.09 | $54.94 |
Total fair value of shares vested | 76,895 | 79,641 |
Maximum [Member] | Total Stockholder Return Performance Restriced Stock Units [Member] | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' |
Shares issued to select executives | 321 | ' |
Common stock to selected executives awards | $9,085 | ' |
ShareBased_Compensation_Total_
Share-Based Compensation (Total Compensation Cost and Related Tax Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Sep. 28, 2013 | |
Sale of Reed Krakoff Business; Restructuring and Transformation [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | |
Share-based compensation expense | $25,805 | $30,183 | $78,566 | [1] | $89,209 | $9,834 |
Income tax benefit related to share-based compensation expense | $7,938 | $10,172 | $24,374 | [1] | $30,340 | $3,793 |
[1] | Approximately $9,834 of share based compensation expense and $3,793 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Footnote 2 for information as it relates to the sale of the Reed Krakoff business. |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary of Option Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 |
Number of Options Outstanding | ' |
Beginning balance | 12,893 |
Granted | 2,322 |
Exercised | -1,285 |
Forfeited or expired | -2,165 |
Ending balance | 11,765 |
Vested and expected to vest at March 29, 2014 | 11,272 |
Exercisable at March 29, 2014 | 7,641 |
Weighted-Average Exercise Price | ' |
Beginning balance | $43.37 |
Granted | $52.95 |
Exercised | $33.07 |
Forfeited or expired | $55.50 |
Ending balance | $44.15 |
Vested and expected to vest at March 29, 2014 | $43.85 |
Exercisable at March 29, 2014 | $38.70 |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary of Non-vested Service-Based Restricted Stock Unit Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 |
Service-based Restricted Stock Units [Member] | ' |
Number of Non-vested Share Units | ' |
Beginning balance | 3,269 |
Granted | 1,962 |
Vested | -1,459 |
Forfeited | -485 |
Ending balance | 3,287 |
Weighted-Average Grant-Date Fair Value Per Share | ' |
Beginning balance | $54.06 |
Granted | $53.09 |
Vested | $51.01 |
Forfeited | $55.03 |
Ending balance | $54.70 |
Performance-based Restricted Stock Unit Awards ("PRSU") [Member] | ' |
Number of Non-vested Share Units | ' |
Beginning balance | 1,093 |
Change due to performance condition achievement | 62 |
Granted | 308 |
Vested | -435 |
Forfeited | -110 |
Ending balance | 918 |
Weighted-Average Grant-Date Fair Value Per Share | ' |
Beginning balance | $46.84 |
Granted | $32.29 |
Change due to performance condition achievement | $36.48 |
Vested | $40.27 |
Forfeited | $43.82 |
Ending balance | $44.72 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements of Assets and Liabilities) (Details) (USD $) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 29, 2013 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | ||||||||||||||||||||||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Time Deposits [Member] | Time Deposits [Member] | Government Securities [Member] | Government Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Auction Rate Security [Member] | Zero-Cost Collar Options [Member] | Zero-Cost Collar Options [Member] | Forward Contracts and Cross Currency Swaps [Member] | Forward Contracts and Cross Currency Swaps [Member] | Contractual Obligations [Member] | Contractual Obligations [Member] | ||||||||||||||||||||||||
Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | |||||||||||||||||||||||||||||
Short-term Investments [Member] | Short-term Investments [Member] | Short-term Investments [Member] | Long-term Investments [Member] | Short-term Investments [Member] | Short-term Investments [Member] | Long-term Investments [Member] | Long-term Investments [Member] | Short-term Investments [Member] | Long-term Investments [Member] | Long-term Investments [Member] | Long-term Investments [Member] | |||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||
Cash equivalents | ' | $7,170 | [1] | $124,420 | [1] | $23,473 | [1] | $337,239 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Investments | ' | ' | ' | ' | ' | ' | 140,125 | [2] | 70,012 | [2] | 32,977 | [2],[3] | 63,791 | [3] | 17,292 | [2] | 2,094 | [2] | 154,457 | [3] | 63,442 | [3] | 27,140 | [2] | 100,999 | [3] | 33,968 | [3] | 6,000 | [4] | ' | ' | ' | ' | ' | ' | ||||||||||
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,108 | [5] | 1,592 | [5] | 130 | [5] | 2,390 | [5] | ' | 523 | [5] | |||||||||||||||||
Total assets | ' | 103,938 | 124,420 | 466,724 | 511,260 | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,555 | [5] | 22 | [5] | 85 | [5] | 81 | [5] | 255 | [5] | |||||||||||||||||
Total liability | ' | ' | ' | $103 | $2,895 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||
Investment maturity start date | 1-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||
Investment maturity end date | 31-Dec-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||
[1] | Cash equivalents consist of money market funds, time deposits, and commercial paper 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, U.S. Treasuries and government agency securities, and high-credit quality U.S. and non U.S. issued corporate debt securities, with maturities of less than one year in which management believes their carrying value approximates fair value based on their short maturity. | |||||||||||||||||||||||||||||||||||||||||||||
[3] | Fair value is determined using vendor or broker priced securities. These securities have maturity dates between calendar years 2014 and 2017. | |||||||||||||||||||||||||||||||||||||||||||||
[4] | Fair value is determined using a valuation model that takes into consideration the financial conditions of the issuer and the bond insurer, current market conditions and the value of the collateral bonds. The Company has determined that the significant majority of the inputs used to value this security fall within Level 3 of the fair value hierarchy as the inputs are based on unobservable estimates. | |||||||||||||||||||||||||||||||||||||||||||||
[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 Measured on a Recurring Basis Using Significant Unobservable Inputs) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Jun. 30, 2012 |
Fair Value Measurements [Abstract] | ' | ' | ' |
Balance, beginning of period | $6,000 | $6,000 | $6,000 |
Included in income before taxes | -25 | ' | ' |
Losses included in other comprehensive income | 1,072 | ' | ' |
Sale of investment | -7,047 | ' | ' |
Balance, end of period | ' | $6,000 | $6,000 |
Debt_Narrative_Details
Debt (Narrative) (Details) | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | |
Jp Morgan Chase Bank Na [Member] | Jp Morgan Chase Bank Na [Member] | Jp Morgan Chase Bank Na [Member] | Jp Morgan Chase Bank Na [Member] | Jp Morgan Chase Bank Na [Member] | Japan [Member] | Japan [Member] | Japan [Member] | Japan [Member] | Coach Shanghai Limited [Member] | Coach Shanghai Limited [Member] | |
USD ($) | USD ($) | Federal Funds Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | USD ($) | JPY (¥) | Minimum [Member] | Maximum [Member] | USD ($) | CNY | |
USD ($) | Tokyo Interbank Rate [Member] | Tokyo Interbank Rate [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $700,000,000 | ' | ' | ' | ' | $51,000,000 | ¥ 5,300,000,000 | ' | ' | $10,000,000 | 63,000,000 |
Credit facility can be expanded to maximum amount | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' |
Letters of credit amount outstanding | $210,000,000 | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | ' |
Variable rate description | 'an alternate base rate (which is a rate equal to the greatest of (1) the Prime Rate in effect on such day, (2) the Federal Funds Effective Rate in effect on such day plus B= of 1% or (3) the Adjusted LIBO Rate for a one month Interest Period on such day plus 1% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee, current (basis points) | 0.08% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate | ' | ' | 0.50% | 1.00% | ' | ' | ' | 0.25% | 0.30% | ' | ' |
Credit facility, maturity date | 26-Mar-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Amount invested in joint venture during the period | $21,518 | $62,856 |
Hudson Yards [Member] | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Joint venture agreement, expected investment amount | 370,000 | 370,000 |
Expected capital expenditures incurred | 190,000 | 190,000 |
Minimum [Member] | Hudson Yards [Member] | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Joint venture agreement, additional expected investment in current fiscal year | $30,000 | $30,000 |
Investments_Summary_of_Investm
Investments (Summary of Investments) (Details) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | $311,441 | $72,106 | ||
Non-current | 479,295 | 197,340 | ||
Total | 790,736 | 269,446 | ||
Available-for-sale Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 77,409 | 2,094 | ||
Non-current | 319,247 | 103,410 | ||
Total | 396,656 | 105,504 | ||
Available-for-sale Securities [Member] | Government Securities - U.S. [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 32,977 | [1] | ' | |
Non-current | 63,791 | [1] | ' | |
Total | 96,768 | [1] | ' | |
Available-for-sale Securities [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 17,292 | [1] | 2,094 | [1] |
Non-current | 154,457 | [1] | 63,442 | [1] |
Total | 171,749 | [1] | 65,536 | [1] |
Available-for-sale Securities [Member] | Foreign Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 27,140 | [1] | ' | |
Non-current | 100,999 | [1] | 33,968 | [1] |
Total | 128,139 | [1] | 33,968 | [1] |
Available-for-sale Securities [Member] | Auction Rate Security [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Non-current | ' | 6,000 | [2] | |
Total | ' | 6,000 | [2] | |
Held-to-maturity Securities [Member] | Government Securities - U.S. [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 18,184 | [3] | ' | |
Total | 18,184 | [3] | ' | |
Held-to-maturity Securities [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 26,275 | [3] | ' | |
Total | 26,275 | [3] | ' | |
Held-to-maturity Securities [Member] | Foreign Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 16,022 | [3] | ' | |
Total | 16,022 | [3] | ' | |
Held-to-maturity Securities [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 33,426 | [3] | ' | |
Total | 33,426 | [3] | ' | |
Other Investments [Member] | Time Deposits [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Current | 140,125 | [4] | 70,012 | [4] |
Total | 140,125 | [4] | 70,012 | [4] |
Other Investments [Member] | Other Invested Assets [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Non-current | 160,048 | [5] | 93,930 | [5] |
Total | $160,048 | [5] | $93,930 | [5] |
[1] | Portfolio of high-credit quality U.S. Treasuries and government agency debt securities and U.S. and non-U.S. issued corporate debt securities classified as available-for-sale and recorded at fair value which approximates amortized cost. These securities have maturity dates between calendar years 2014 and 2017. | |||
[2] | The investment was sold in the third quarter of fiscal 2014. Refer to Footnote 8 for further information. | |||
[3] | Portfolio of high-credit quality U.S. government agency debt securities, U.S. and non-U.S. issued corporate debt securities, and commercial paper classified as held to maturity and recorded at amortized cost which approximates fair value. These securities have maturity dates in the calendar year 2014 and 2015. | |||
[4] | Portfolio of time deposits with original maturities greater than 3 months. | |||
[5] | Equity method investment related to Hudson Yards joint venture and Reed Krakoff cost method investment. The Hudson Yards joint venture is determined to be a variable interest entity primarily due to the fact that it has insufficient equity to finance its activities without additional subordinated financial support from its two joint venture partners. Coach is not considered the primary beneficiary of the entity primarily because the Company does not have the power to direct the activities that most significantly impact the entitybs economic performance. The Companybs maximum loss exposure is limited to the committed capital. |
Investments_Summary_of_Investm1
Investments (Summary of Investments Footnote) (Details) | 9 Months Ended |
Mar. 29, 2014 | |
Minimum [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Time deposit, maturity period | '3 months |
Available-for-sale Securities [Member] | Minimum [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments maturity year | '2014 |
Available-for-sale Securities [Member] | Maximum [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments maturity year | '2017 |
Held-to-maturity Securities [Member] | Minimum [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments maturity year | '2014 |
Held-to-maturity Securities [Member] | Maximum [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments maturity year | '2015 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 29, 2013 | Jun. 29, 2013 |
Shinsegae International [Member] | Shinsegae International [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] | European Joint Venture [Member] | |||||
Intercompany and Related Party Loans [Member] | Intercompany and Related Party Loans [Member] | Minimum [Member] | Maximum [Member] | Hackett Limited [Member] | |||||||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, maturity date | ' | ' | ' | ' | ' | ' | '2014-05 | '2018-03 | ' | ' | ' | ' | '2014-04 | '2015-06 | ' | ' | ' |
Derivative instruments, notional value of hedged item | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000 | $16,944 | ' |
Derivative instruments, notional amount | ' | ' | ' | ' | ' | ' | ' | ' | 15,687 | 147,591 | 93,997 | 193,352 | ' | ' | ' | ' | ' |
Contractual obligation | ' | ' | ' | ' | 4,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,944 |
Expected amount of net derivative losses included in accumulated other comprehensive income that will be reclassified into earnings within the next 12 months | 4,736 | ' | 4,736 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gain or (loss) recognized in OCI on derivatives (effective portion), tax | 994 | -1,029 | -2,239 | -5,523 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion), tax | -355 | -560 | -2,817 | -84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | $113,684 | $357,887 |
Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 3,238 | 4,505 |
Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 103 | 2,895 |
Zero-Cost Collars [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 93,997 | 193,352 |
Zero-Cost Collars [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 3,108 | 1,592 |
Zero-Cost Collars [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | ' | 2,555 |
Currency Swap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 13,110 | 111,195 |
Currency Swap [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 130 | 1,366 |
Currency Swap [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 1 | 85 |
Intercompany and Related Party Loans [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 2,577 | 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 | 21 | ' |
Contractual Obligations [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, notional amount | 4,000 | 16,944 |
Contractual Obligations [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | ' | 523 |
Contractual Obligations [Member] | Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | $81 | $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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | $623 | $1,818 | $3,941 | $8,976 |
Cost of Sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of net gain (loss) reclassified from accumulated OCI into income (effective portion) | 731 | 813 | 4,693 | 115 |
Zero-Cost Collars [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of net gain (loss) recognized in OCI on derivatives (effective portion) | -1,287 | 2,572 | 3,993 | 8,156 |
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) | $1,910 | ($754) | ($52) | $820 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 9 Months Ended |
Mar. 29, 2014 | |
segment | |
store | |
Segment Information [Abstract] | ' |
Operating segments | 5 |
Reportable segments | 2 |
Sales to wholesale customers, number of countries in which entity operates | 30 |
Segment_Information_Summary_of
Segment Information (Summary of Segment Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | $1,099,626 | $1,187,578 | $3,670,010 | $3,852,702 | ||||
Gross profit | 781,339 | 880,188 | 2,590,591 | 2,810,738 | ||||
Operating income | 262,709 | 348,493 | 1,020,286 | 1,206,787 | ||||
Income before provision for income taxes | 260,780 | 347,750 | 1,021,938 | 1,202,769 | ||||
Depreciation and amortization expense | 45,169 | 38,785 | 138,108 | 115,666 | ||||
Additions to long-lived assets | 50,862 | 27,786 | 157,624 | 163,172 | ||||
North America [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 647,923 | 792,466 | 2,409,228 | 2,652,793 | ||||
Gross profit | 412,958 | 538,996 | 1,550,963 | 1,795,103 | ||||
Operating income | 222,002 | 325,602 | 926,129 | 1,130,958 | ||||
Income before provision for income taxes | 222,002 | 325,602 | 926,129 | 1,130,958 | ||||
Depreciation and amortization expense | 16,978 | 18,166 | 54,276 | 52,774 | ||||
Additions to long-lived assets | 27,186 | 6,322 | 79,129 | 69,452 | ||||
International [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 440,635 | [1] | 385,192 | [1] | 1,230,228 | [1] | 1,170,248 | [1] |
Gross profit | 347,992 | [1] | 311,544 | [1] | 971,505 | [1] | 936,058 | [1] |
Operating income | 163,649 | [1] | 151,603 | [1] | 434,812 | [1] | 438,770 | [1] |
Income before provision for income taxes | 163,649 | [1] | 151,603 | [1] | 434,812 | [1] | 438,770 | [1] |
Depreciation and amortization expense | 14,368 | [1] | 10,531 | [1] | 41,231 | [1] | 34,505 | [1] |
Additions to long-lived assets | 12,677 | [1] | 5,240 | [1] | 50,492 | [1] | 54,466 | [1] |
Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 11,068 | [1],[2] | 9,920 | [1],[2] | 30,554 | [1],[2] | 29,661 | [1],[2] |
Gross profit | 7,107 | [1],[2] | 7,999 | [1],[2] | 23,401 | [1],[2] | 24,935 | [1],[2] |
Operating income | 5,724 | [1],[2] | 6,719 | [1],[2] | 19,785 | [1],[2] | 19,417 | [1],[2] |
Income before provision for income taxes | 5,724 | [1],[2] | 6,719 | [1],[2] | 19,785 | [1],[2] | 19,417 | [1],[2] |
Corporate Unallocated [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Gross profit | 13,282 | 21,649 | 44,722 | 54,642 | ||||
Operating income | -128,666 | -135,431 | -360,440 | -382,358 | ||||
Income before provision for income taxes | -130,595 | -136,174 | -358,788 | -386,376 | ||||
Depreciation and amortization expense | 13,823 | 10,088 | 42,601 | 28,387 | ||||
Additions to long-lived assets | 10,999 | 16,224 | 28,003 | 39,254 | ||||
European Joint Venture [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | ' | 3,658 | ' | 15,845 | ||||
Gross profit | ' | 1,887 | ' | 7,657 | ||||
Operating income | ' | 1,858 | ' | 7,738 | ||||
Income before provision for income taxes | ' | $1,858 | ' | $7,738 | ||||
[1] | As a result of the acquisition of the European joint venture (as discussed in Note 3), certain amounts have been reclassed from Other to International to conform to the 2014 presentation of the European results. For the quarter ended March 30, 2013, these amounts are net sales of $3,658, gross profit of $1,887, operating income of $1,858, and income before provision for income taxes of $1,858. For the nine months ended March 30, 2013, amounts reclassified are net sales of $15,845, gross profit of $7,657, operating income of $7,738, and income before provision for income taxes of $7,738. | |||||||
[2] | Other, which is not a reportable segment, consists of sales generated in ancillary channels including licensing and disposition. |
Segment_Information_Summary_of1
Segment Information (Summary of Common Costs Not Allocated) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Operating income | $262,709 | $348,493 | $1,020,286 | $1,206,787 |
Corporate Unallocated [Member] | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Production variances | 13,281 | 21,648 | 44,722 | 54,640 |
Advertising, marketing and design | -61,047 | -58,108 | -178,900 | -178,659 |
Administration and information systems | -61,242 | -79,064 | -161,727 | -196,248 |
Distribution and customer service | -19,658 | -19,907 | -64,535 | -62,091 |
Operating income | ($128,666) | ($135,431) | ($360,440) | ($382,358) |
Stock_Repurchase_Program_Narra
Stock Repurchase Program (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 30, 2013 |
Shock Repurchase Program [Abstract] | ' | ' | ' |
Common stock repurchased and retired, shares | 3,646 | 10,239 | 7,066 |
Common stock repurchased and retired, value | $174,989 | $524,926 | $400,000 |
Common stock repurchased and retired, average cost per share | $47.99 | $51.27 | $56.61 |
Stock repurchase program, remaining amount authorized for repurchase | ' | $836,701 | ' |