Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | May 19, 2023 | Sep. 30, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 01, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-13057 | ||
Entity Registrant Name | RALPH LAUREN CORPORATION | ||
Entity Central Index Key | 0001037038 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-2622036 | ||
Entity Address, Address Line One | 650 Madison Avenue, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 318-7000 | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value | ||
Trading Symbol | RL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,462 | ||
Current Fiscal Year End Date | --04-01 | ||
Common stock, Class A | |||
Entity Common Stock, Shares Outstanding | 40,523,457 | ||
Common stock, Class B | |||
Entity Common Stock, Shares Outstanding | 24,881,276 |
Audit Information
Audit Information | 12 Months Ended |
Apr. 01, 2023 | |
Auditor [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,529.3 | $ 1,863.8 |
Short-term investments | 36.4 | 734.6 |
Accounts receivable, net of allowances of $175.3 million and $214.7 million | 447.7 | 405.4 |
Inventories | 1,071.3 | 977.3 |
Income tax receivable | 50.7 | 63.7 |
Prepaid expenses and other current assets | 188.7 | 172.5 |
Total current assets | 3,324.1 | 4,217.3 |
Property and equipment, net | 955.5 | 969.5 |
Operating lease right-of-use assets | 1,134 | 1,111.3 |
Deferred tax assets | 255.1 | 303.8 |
Goodwill | 898.9 | 908.7 |
Intangible assets, net | 88.9 | 102.9 |
Other non-current assets | 133 | 111.2 |
Total assets | 6,789.5 | 7,724.7 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 499.8 |
Accounts payable | 371.6 | 448.7 |
Income tax payable | 59.7 | 53.8 |
Current operating lease liabilities | 266.7 | 262 |
Accrued expenses and other current liabilities | 795.5 | 991.4 |
Total current liabilities | 1,493.5 | 2,255.7 |
Long-term debt | 1,138.5 | 1,136.5 |
Long-term finance lease liabilities | 315.3 | 341.6 |
Long-term operating lease liabilities | 1,141.1 | 1,132.2 |
Non-current Income tax payable | 75.9 | 98.9 |
Non-current liability for unrecognized tax benefits | 93.8 | 91.9 |
Other non-current liabilities | 100.9 | 131.9 |
Commitments and contingencies (Note 15) | ||
Total liabilities | 4,359 | 5,188.7 |
Equity: | ||
Additional paid-in-capital | 2,824.3 | 2,748.8 |
Retained earnings | 6,598.2 | 6,274.9 |
Treasury stock, Class A, at cost; 67.0 million and 61.9 million shares | (6,797.3) | (6,308.7) |
Accumulated other comprehensive loss | (196) | (180.3) |
Total equity | 2,430.5 | 2,536 |
Total liabilities and equity | 6,789.5 | 7,724.7 |
Class A common stock, par value $.01 per share; 107.7 million and 106.9 million shares issued; 40.7 million and 45.0 million shares outstanding | ||
Equity: | ||
Common stock | 1 | 1 |
Class B common stock, par value $.01 per share; 24.9 million shares issued and outstanding | ||
Equity: | ||
Common stock | $ 0.3 | $ 0.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Allowances on accounts receivable | $ 175.3 | $ 214.7 |
Common stock, Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 107.7 | 106.9 |
Common stock, shares outstanding | 40.7 | 45 |
Treasury stock, shares | 67 | 61.9 |
Common stock, Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 24.9 | 24.9 |
Common stock, shares outstanding | 24.9 | 24.9 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Income Statement [Abstract] | |||
Net revenues | $ 6,443.6 | $ 6,218.5 | $ 4,400.8 |
Cost of goods sold | (2,277.8) | (2,071) | (1,539.4) |
Gross profit | 4,165.8 | 4,147.5 | 2,861.4 |
Other costs and expenses: | |||
Selling, general and administrative expenses | (3,408.9) | (3,305.6) | (2,638.5) |
Impairment of assets | (9.7) | (21.3) | (96) |
Restructuring and other charges, net | (43) | (22.2) | (170.5) |
Total other operating expenses, net | (3,461.6) | (3,349.1) | (2,905) |
Operating income (loss) | 704.2 | 798.4 | (43.6) |
Interest expense | (40.4) | (54) | (48.5) |
Interest income | 32.2 | 5.5 | 9.7 |
Other income (expense), net | (4.1) | 4.7 | 7.6 |
Income (loss) before income taxes | 691.9 | 754.6 | (74.8) |
Income tax provision | (169.2) | (154.5) | (46.3) |
Net income (loss) | $ 522.7 | $ 600.1 | $ (121.1) |
Net income (loss) per common share: | |||
Basic | $ 7.72 | $ 8.22 | $ (1.65) |
Diluted | $ 7.58 | $ 8.07 | $ (1.65) |
Weighted-average common shares outstanding: | |||
Basic | 67.7 | 73 | 73.5 |
Diluted | 69 | 74.3 | 73.5 |
Dividends declared per share | $ 3 | $ 2.75 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 522.7 | $ 600.1 | $ (121.1) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | (14.1) | (66.5) | 7.2 |
Net gains (losses) on Cash Flow Hedges | (4.9) | 4.4 | (13.4) |
Net gains on defined benefit plans | 3.3 | 2.6 | 3.6 |
Other comprehensive loss, net of tax | (15.7) | (59.5) | (2.6) |
Total comprehensive income (loss) | $ 507 | $ 540.6 | $ (123.7) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 522.7 | $ 600.1 | $ (121.1) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 220.5 | 229.7 | 247.6 |
Deferred income tax expense (benefit) | 3.9 | (46.1) | 35.6 |
Stock-based compensation expense | 75.5 | 81.7 | 72.7 |
Impairment of assets | 9.7 | 21.3 | 96 |
Bad debt expense (reversal) | 2.3 | (2.2) | (27.6) |
Other non-cash charges | 1 | 1 | 1.8 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (52.6) | 32.4 | (143) |
Inventories | (106.2) | (269.3) | 3.7 |
Prepaid expenses and other current assets | (19.9) | (28.3) | 5.2 |
Accounts payable and accrued liabilities | (225) | 194.6 | 293.6 |
Income tax receivables and payables | 5.7 | (62.3) | (37.8) |
Operating lease ROU asset and liabilities, net | (17.5) | (61.6) | (30.2) |
Other balance sheet changes | (9.1) | 24.9 | (15.6) |
Net cash provided by operating activities | 411 | 715.9 | 380.9 |
Cash flows from investing activities: | |||
Capital expenditures | (217.5) | (166.9) | (107.8) |
Purchases of investments | (598.6) | (1,510.6) | (704.6) |
Proceeds from sales and maturities of investments | 1,293.4 | 964.6 | 1,007.2 |
Settlement of net investment hedges | 0 | 0 | 3.7 |
Other investing activities | (5.8) | (5) | (3.5) |
Net cash provided by (used in) investing activities | 471.5 | (717.9) | 195 |
Cash flows from financing activities: | |||
Repayments of credit facility borrowings | 0 | 0 | (475) |
Proceeds from the issuance of long-term debt | 0 | 0 | 1,241.9 |
Repayments of long-term debt | (500) | 0 | (300) |
Payments of finance lease obligations | (21.9) | (23.1) | (13.9) |
Payments of dividends | (198.3) | (150) | (49.8) |
Repurchases of common stock, including shares surrendered for tax withholdings | (488.6) | (492.6) | (37.7) |
Other financing activities | 0 | 0 | (8.7) |
Net cash provided by (used in) financing activities | (1,208.8) | (665.7) | 356.8 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (8.8) | (48.3) | 25.5 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (335.1) | (716) | 958.2 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,872 | 2,588 | 1,629.8 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,536.9 | $ 1,872 | $ 2,588 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI [Member] | ||
Beginning balance at Mar. 28, 2020 | $ 2,693.1 | $ 1.3 | [1] | $ 2,594.4 | $ 5,994 | $ (5,778.4) | $ (118.2) | [2] |
Beginning balance, shares at Mar. 28, 2020 | 129.8 | [1] | 57.3 | |||||
Comprehensive Income (Loss) | ||||||||
Net income (loss) | (121.1) | (121.1) | ||||||
Other comprehensive loss | (2.6) | (2.6) | ||||||
Total comprehensive income (loss) | (123.7) | |||||||
Dividends declared | 0 | 0 | ||||||
Repurchases of common stock | (37.7) | $ (37.7) | ||||||
Repurchases of common stock, shares | 0.5 | |||||||
Stock-based compensation | 72.7 | 72.7 | ||||||
Shares issued pursuant to stock-based compensation plans | 0 | $ 0 | 0 | |||||
Shares issued pursuant to stock-based compensation plans, shares | 1.2 | |||||||
Ending balance at Mar. 27, 2021 | 2,604.4 | $ 1.3 | [1] | 2,667.1 | 5,872.9 | $ (5,816.1) | (120.8) | [2] |
Ending balance, shares at Mar. 27, 2021 | 131 | [1] | 57.8 | |||||
Comprehensive Income (Loss) | ||||||||
Net income (loss) | 600.1 | 600.1 | ||||||
Other comprehensive loss | (59.5) | (59.5) | ||||||
Total comprehensive income (loss) | 540.6 | |||||||
Dividends declared | (198.1) | (198.1) | ||||||
Repurchases of common stock | (492.6) | $ (492.6) | ||||||
Repurchases of common stock, shares | 4.1 | |||||||
Stock-based compensation | 81.7 | 81.7 | ||||||
Shares issued pursuant to stock-based compensation plans | 0 | $ 0 | 0 | |||||
Shares issued pursuant to stock-based compensation plans, shares | 0.8 | |||||||
Ending balance at Apr. 02, 2022 | 2,536 | $ 1.3 | [1] | 2,748.8 | 6,274.9 | $ (6,308.7) | (180.3) | [2] |
Ending balance, shares at Apr. 02, 2022 | 131.8 | [1] | 61.9 | |||||
Comprehensive Income (Loss) | ||||||||
Net income (loss) | 522.7 | 522.7 | ||||||
Other comprehensive loss | (15.7) | (15.7) | ||||||
Total comprehensive income (loss) | 507 | |||||||
Dividends declared | (199.4) | (199.4) | ||||||
Repurchases of common stock | (488.6) | $ (488.6) | ||||||
Repurchases of common stock, shares | 5.1 | |||||||
Stock-based compensation | 75.5 | 75.5 | ||||||
Shares issued pursuant to stock-based compensation plans | 0 | $ 0 | 0 | |||||
Shares issued pursuant to stock-based compensation plans, shares | 0.8 | |||||||
Ending balance at Apr. 01, 2023 | $ 2,430.5 | $ 1.3 | [1] | $ 2,824.3 | $ 6,598.2 | $ (6,797.3) | $ (196) | [2] |
Ending balance, shares at Apr. 01, 2023 | 132.6 | [1] | 67 | |||||
[1]Includes Class A and Class B common stock.[2]Accumulated other comprehensive income (loss). |
Description of Business
Description of Business | 12 Months Ended |
Apr. 01, 2023 | |
Description of Business [Abstract] | |
Description of Business | Description of Business Ralph Lauren Corporation ("RLC") is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality. RLC's long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. RLC's brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. RLC and its subsidiaries are collectively referred to herein as the "Company," "we," "us," "our," and "ourselves," unless the context indicates otherwise. The Company diversifies its business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (retail, wholesale, and licensing). This allows the Company to maintain a dynamic balance as its operating results do not depend solely on the performance of any single geographic area or channel of distribution. The Company sells directly to consumers through its integrated retail channel, which includes its retail stores, concession-based shop-within-shops, and digital commerce operations around the world. The Company's wholesale sales are made principally to major department stores, specialty stores, and third-party digital partners around the world, as well as to certain third-party-owned stores to which the Company has licensed the right to operate in defined geographic territories using its trademarks. In addition, the Company licenses to third parties for specified periods the right to access its various trademarks in connection with the licensees' manufacture and sale of designated products, such as certain apparel, eyewear, fragrances, and home. The Company organizes its business into the following three reportable segments: North America, Europe, and Asia. In addition to these reportable segments, the Company also has other non-reportable segments. See Note 20 for further discussion of the Company's segment reporting structure. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Consolidation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and present the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Additionally, as discussed in Note 9, the Company completed the sale of its Club Monaco business at the end of its first quarter of Fiscal 2022 (as defined below) on June 26, 2021. As a result, assets and liabilities related to the Club Monaco business were deconsolidated from the consolidated statement of financial position effective June 26, 2021, with Club Monaco's operating results included in the consolidated statements of income (loss), comprehensive income (loss), and cash flows through the end of the first quarter of Fiscal 2022. Financial statements issued prior to this transaction were not affected. Fiscal Year The Company utilizes a 52-53 week fiscal year ending on the Saturday immediately before or after March 31. As such, fiscal year 2023 ended on April 1, 2023 and was a 52-week period ("Fiscal 2023"); fiscal year 2022 ended on April 2, 2022 and was a 53-week period ("Fiscal 2022"); fiscal year 2021 ended on March 27, 2021 and was a 52-week period ("Fiscal 2021"); and fiscal year 2024 will end on March 30, 2024 and will be a 52-week period ("Fiscal 2024"). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include reserves for bad debt, customer returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; fair value measurements; accounting for income taxes and related uncertain tax positions; valuation of stock-based compensation awards and related forfeiture rates; and reserves for restructuring activity, among others. Reclassifications Certain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation. COVID-19 Pandemic Beginning in the fourth quarter of the Company's fiscal year ended March 28, 2020 ("Fiscal 2020"), a novel strain of coronavirus commonly referred to as COVID-19 emerged and spread rapidly across the globe, including throughout all major geographies in which the Company operates, resulting in widespread adverse economic conditions and business disruptions. Since then, governments worldwide have periodically imposed preventative and protective actions, such as temporary travel bans, forced business closures, and stay-at-home orders, all in an effort to reduce the spread of the virus. Such actions have negatively impacted retail traffic, tourism, and consumer spending on discretionary items to varying degrees over the course of the pandemic. As a result of the COVID-19 pandemic, the Company has experienced varying degrees of business disruptions and periods of closure of its stores, distribution centers, and corporate facilities, as have the Company's wholesale customers, licensing partners, suppliers, and vendors. During the first quarter of Fiscal 2021 at the peak of the pandemic, the majority of the Company's stores in key markets were closed for an average of 8 to 10 weeks due to government-mandated lockdowns and other restrictions, resulting in significant adverse impacts to its operating results. Resurgences and outbreaks in certain parts of the world resulted in further business disruptions periodically throughout Fiscal 2021, most notably in Europe where a significant number of the Company's stores were closed for approximately 2 to 3 months during the second half of Fiscal 2021, including during the holiday period, due to government-mandated lockdowns and other restrictions. Such disruptions continued throughout Fiscal 2022 and Fiscal 2023 in certain regions, although to a lesser extent than Fiscal 2021. Further, throughout the course of the pandemic, the majority of the Company's stores that were able to remain open have periodically been subject to limited operating hours and/or customer capacity levels in accordance with local health guidelines, with traffic remaining challenged. However, the Company's digital commerce operations have grown significantly from pre-pandemic levels, due in part to its investments and enhanced capabilities, as well as changes in consumer shopping preferences. The COVID-19 pandemic also adversely impacted the Company's distribution, logistic, and sourcing partners, including temporary factory closures, labor shortages, vessel, container and other transportation shortages, and port congestion. Such disruptions resulted in periods of reduced availability of inventory, delayed timing of inventory receipts, and increased costs for both the purchase and transportation of such inventory, most notably during Fiscal 2022 and the first half of Fiscal 2023. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition The Company recognizes revenue across all channels of the business when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services. The amount of revenue recognized considers terms of sale that create variability in the amount of consideration that the Company ultimately expects to be entitled to in exchange for the products or services, and is subject to an overall constraint that a significant revenue reversal will not occur in future periods. Sales and other related taxes collected from customers and remitted to government authorities are excluded from revenue. Revenue from the Company's retail business is recognized when the customer takes physical possession of the products, which occurs either at the point of sale for merchandise purchased at the Company's own retail stores and shop-within-shop locations, or upon receipt of shipment for merchandise ordered through direct-to-consumer digital commerce sites. Such revenues are recorded net of estimated returns based on historical trends. Payment is due at the point of sale. Gift cards purchased by customers are recorded as a liability until they are redeemed for products sold by the Company's retail business, at which point revenue is recognized. The Company also estimates and recognizes revenue for gift card balances not expected to ever be redeemed (referred to as "breakage") to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property. Such estimates are based upon historical redemption trends, with breakage income recognized in proportion to the pattern of actual customer redemptions. Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results. Revenue from the Company's licensing arrangements is recognized over time during the period that licensees are provided access to the Company's trademarks (i.e., symbolic intellectual property) and benefit from such access through their own sales of licensed products. These arrangements require licensees to pay a sales-based royalty, which for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount. Payments are generally due quarterly and, depending on time of receipt, may be recorded as a liability until recognized as revenue. The Company recognizes revenue for sales-based royalty arrangements (including those for which the royalty exceeds any contractually-guaranteed minimum royalty amount) as licensed products are sold by the licensee. If a sales-based royalty is not ultimately expected to exceed a contractually-guaranteed minimum royalty amount, the minimum is generally recognized as revenue ratably over the respective contractual period. This sales-based output measure of progress and pattern of recognition best represents the value transferred to the licensee over the term of the arrangement, as well as the amount of consideration that the Company is entitled to receive in exchange for providing access to its trademarks. As of April 1, 2023, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows: Contractually-Guaranteed Minimum Royalties (a) (millions) Fiscal 2024 $ 98.5 Fiscal 2025 62.7 Fiscal 2026 44.1 Fiscal 2027 40.8 Fiscal 2028 11.3 Fiscal 2029 and thereafter — Total $ 257.4 (a) Amounts presented do not contemplate potential contract renewals or royalties earned in excess of the contractually-guaranteed minimums. Disaggregated Net Revenues The following tables disaggregate the Company's net revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors for the fiscal years presented: Fiscal Year Ended April 1, 2023 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,872.6 $ 858.4 $ 1,322.1 $ — $ 4,053.1 Wholesale 1,147.9 980.8 104.6 — 2,233.3 Licensing — — — 157.2 157.2 Total $ 3,020.5 $ 1,839.2 $ 1,426.7 $ 157.2 $ 6,443.6 Fiscal Year Ended April 2, 2022 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,878.6 $ 828.3 $ 1,207.4 $ 27.2 $ 3,941.5 Wholesale 1,089.6 952.4 79.4 5.9 2,127.3 Licensing — — — 149.7 149.7 Total $ 2,968.2 $ 1,780.7 $ 1,286.8 $ 182.8 $ 6,218.5 Fiscal Year Ended March 27, 2021 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,214.1 $ 517.1 $ 968.4 $ 80.2 $ 2,779.8 Wholesale 778.3 648.8 59.1 12.4 1,498.6 Licensing — — — 122.4 122.4 Total $ 1,992.4 $ 1,165.9 $ 1,027.5 $ 215.0 $ 4,400.8 (a) Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time. Deferred Income Deferred income represents cash payments received in advance of the Company's transfer of control of products or services to its customers and generally consists of unredeemed gift cards (net of breakage) and advance royalty payments from licensees. The Company's deferred income balances were $14.1 million and $16.6 million as of April 1, 2023 and April 2, 2022, respectively, and were primarily recorded within accrued expenses and other current liabilities within the consolidated balance sheets. The majority of the deferred income balance as of April 1, 2023 is expected to be recognized as revenue within the next twelve months. Cost of Goods Sold and Selling Expenses Cost of goods sold includes the amounts incurred to acquire and produce inventory for sale to the Company's customers, including product costs, freight-in, and import costs, as well as changes in reserves for shrinkage and inventory realizability. Gains and losses associated with forward foreign currency exchange contracts that are designated and qualifying as cash flow hedges of inventory transactions are also recognized within cost of goods sold when the hedged inventory is sold. The costs of selling merchandise, including those associated with preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are included in selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Shipping and Handling Costs Costs associated with shipping goods to customers are accounted for as fulfillment activities and reflected as SG&A expenses in the consolidated statements of operations. Shipping and handling costs (described above) billed to customers are included in revenue. A summary of shipping and handling costs recognized during the fiscal years presented is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Shipping costs $ 79.9 $ 73.0 $ 54.8 Handling costs 169.7 151.8 138.3 Advertising and Marketing Costs Advertising costs, including the costs to produce advertising, are expensed when the advertisement is first exhibited. Advertising costs paid to wholesale customers under cooperative advertising programs are not included in advertising costs, but rather are reflected as a reduction of revenue since generally the benefits are not sufficiently separable from the purchases of the Company's products by customers. Costs associated with the marketing and promotion of the Company's products are included within SG&A expenses. Advertising and marketing expenses were $438.1 million, $456.3 million, and $265.0 million in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. Deferred advertising, marketing, and promotional costs, which principally relate to advertisements that have not yet been exhibited or payments made for services that have not yet been received, were $10.4 million and $7.9 million at the end of Fiscal 2023 and Fiscal 2022, respectively, and were recorded within prepaid expenses and other current assets in the consolidated balance sheets. Foreign Currency Translation and Transactions The financial position and operating results of the Company's foreign operations are accounted for in their respective functional currencies, which are generally consistent with the local currency. For purposes of consolidation, local currency assets and liabilities are translated to U.S. Dollars at the spot rates of exchange prevailing on the balance sheet date, and local currency revenues and expenses are translated to U.S. Dollars at average rates of exchange in effect during the period. The resulting translation gains or losses are included in the consolidated statements of comprehensive income (loss) as a component of other comprehensive income (loss) ("OCI") and in the consolidated statements of equity within accumulated other comprehensive income (loss) ("AOCI"). Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature are also included within this component of equity. The Company also recognizes gains and losses on both third-party and intercompany balances that are denominated in a currency other than the respective entity's functional currency. Such foreign currency transactional gains and losses are recognized within other income (expense), net in the consolidated statements of operations, inclusive of the effects of any related hedging activities, and reflected a net loss of $4.5 million in Fiscal 2023 and net gains of $2.8 million and $8.7 million in Fiscal 2022 and Fiscal 2021, respectively. Comprehensive Income (Loss) Comprehensive income (loss), which is reported in the consolidated statements of comprehensive income (loss) and consolidated statements of equity, consists of net income (loss) and certain other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss) and referred to as OCI. Components of OCI consist of foreign currency translation gains (losses); net realized and unrealized gains (losses) on cash flow hedges, such as forward foreign currency exchange contracts; net realized and unrealized gains (losses) on available-for-sale investments; and net realized and unrealized gains (losses) related to the Company's defined benefit plans. Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income (loss) per common share adjusts basic net income (loss) per common share for the dilutive effects of outstanding restricted stock units ("RSUs"), stock options, and any other potentially dilutive instruments, only for the periods in which such effects are dilutive. The weighted-average number of common shares outstanding used to calculate basic net income (loss) per common share is reconciled to shares used to calculate diluted net income (loss) per common share as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Basic shares 67.7 73.0 73.5 Dilutive effect of RSUs and stock options 1.3 1.3 — (a) Diluted shares 69.0 74.3 73.5 (a) Incremental shares of 1.2 million attributable to outstanding RSUs were excluded from the computation of diluted shares for Fiscal 2021 as such shares would not be dilutive given the net loss incurred during that fiscal year. All earnings per share amounts have been calculated using unrounded numbers. The Company has outstanding performance-based RSUs, which are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) have been satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. In addition, options to purchase shares of the Company's Class A common stock at an exercise price greater than the average market price of such common stock during the reporting period are anti-dilutive and therefore not included in the computation of diluted net income (loss) per common share. As of the end of Fiscal 2023, Fiscal 2022, and Fiscal 2021, there were 0.3 million, 0.1 million, and 0.4 million, respectively, of additional shares issuable contingent upon vesting of performance-based RSUs and/or upon exercise of anti-dilutive stock options that were excluded from the diluted shares calculations. Stock-Based Compensation The Company recognizes expense for all stock-based compensation awards granted to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for forfeitures which are estimated based on an analysis of historical experience and expected future trends. The grant date fair values of service-based RSUs and performance-based RSUs are determined based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue while outstanding and unvested. The grant date fair value of the Company's market-based RSU awards, for which vesting is dependent upon total shareholder return ("TSR") of its Class A common stock over a three-year performance period relative to that of a pre-established peer group, is estimated using a Monte Carlo simulation model. The Company uses the Black-Scholes valuation model to estimate the grant date fair value of any stock option awards. Compensation expense for all performance-based RSUs is recognized over the requisite service period when attainment of the performance goal is deemed probable, net of estimated forfeitures. Compensation expense for market-based RSUs, net of estimated forfeitures, is recognized over the requisite service period regardless of whether, and the extent to which, the market condition is ultimately satisfied. The Company recognizes compensation expense on an accelerated basis for all awards with graded vesting terms, including certain RSUs, restricted stock, and stock options, if any. For RSU awards with cliff vesting terms, compensation expense is recognized on a straight-line basis. For certain RSU awards granted to retirement-eligible employees, or employees who will become retirement-eligible prior to the end of the awards' respective stated vesting periods, the related compensation expense is recognized on an accelerated basis over a term commensurate with the period that the employee is required to provide service in order to vest in the award. See Note 18 for further discussion of the Company's stock-based compensation plans. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of 90 days or less, including investments in time deposits and debt securities. Investments in debt securities are diversified across high-credit quality issuers in accordance with the Company's risk-management policies. Restricted Cash The Company is periodically required to place cash in escrow with various banks as collateral, primarily to secure guarantees of corresponding amounts made by the banks to international tax authorities on behalf of the Company, such as to secure refunds of value-added tax payments in certain international tax jurisdictions or in the case of certain international tax audits, as well as to secure guarantees related to certain real estate leases. Such cash is classified as restricted cash and reported as a component of either prepaid expenses and other current assets or other non-current assets in the consolidated balance sheets. Investments The Company's investment objectives include capital preservation, maintaining adequate liquidity, diversification to minimize liquidity and credit risk, and achievement of maximum returns within the guidelines set forth in the Company's investment policy. Short-term investments consist of investments which the Company expects to convert into cash within one year, including any time deposits and debt securities with original maturities greater than 90 days. See Note 13 for further information relating to the composition of the Company's short-term investments. The Company classifies such investments as available-for-sale. Accordingly, they are recorded at fair value with any related unrealized gains or losses generally recognized as a component of AOCI in the consolidated balance sheets, and related realized gains or losses (or unrealized credit-related impairment losses, if any) recorded within other income (expense), net, in the consolidated statements of operations. Cash inflows and outflows related to the sale and purchase of investments are classified as investing activities in the consolidated statements of cash flows. Equity-method and Other Investments Ownership interests that provide the Company with significant influence, but less than a controlling interest, over an investee are generally accounted for using the equity method of accounting. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the investee's common stock. Ownership interests that do not provide significant influence and for which the underlying equity security's fair value is not readily determinable are generally recorded at cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or similar investments of the same investee, with such adjustments recognized within other income (expense), net, in the consolidated statements of operations. Under the equity method of accounting, the following amounts are generally recorded in the Company's consolidated financial statements: the Company's original investment, as subsequently adjusted for its share of the investee's earnings (losses) and reduced by any dividends received and other-than-temporary impairments recorded, is included in the consolidated balance sheets; the Company's share of the investee's periodic earnings (losses) is included in the consolidated statements of operations; and dividends and other cash distributions received from the investee and additional cash investments made in or other cash paid to the investee are included in the consolidated statements of cash flows. The Company's share of equity-method investee earnings and losses is recognized within other income (expense), net, in the consolidated statements of operations and was not material in any of the fiscal years presented. These investments are recorded within other non-current assets in the consolidated balance sheets. Impairment Assessment The Company evaluates the need to recognize impairment charges for its investments that are in unrealized loss positions, if any, and its other equity investments on a quarterly basis (see Note 12). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the financial condition, creditworthiness, and near-term prospects of the issuer or investee; (ii) future economic conditions and market forecasts; (iii) the length of time to maturity, if applicable, and an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (iv) whether events or changes in circumstances indicate that the investment's carrying amount might not be recoverable. Accounts Receivable In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the " Revenue Recognition " section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. A rollforward of the activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Beginning reserve balance $ 180.7 $ 173.7 $ 204.7 Amount charged against revenue to increase reserve 407.9 407.7 280.1 Amount credited against customer accounts to decrease reserve (436.5) (392.9) (317.4) Foreign currency translation (4.0) (7.8) 6.3 Ending reserve balance $ 148.1 $ 180.7 $ 173.7 An allowance for doubtful accounts is determined through analysis of accounts receivable aging, assessments of collectability based on evaluation of historical trends, the financial condition of the Company's customers and their ability to withstand prolonged periods of adverse economic conditions, and evaluation of the impact of current and forecasted economic and market conditions over the related asset's contractual life, such as those resulting from COVID-19 business disruptions (most notably during Fiscal 2021), among other factors. A rollforward of the activity in the Company's allowance for doubtful accounts is presented as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Beginning reserve balance $ 34.0 $ 40.1 $ 71.5 Amount recorded to expense to increase (decrease) reserve (a) 2.3 (2.2) (27.6) Amount written-off against customer accounts to decrease reserve (8.5) (2.8) (6.1) Foreign currency translation (0.6) (1.1) 2.3 Ending reserve balance $ 27.2 $ 34.0 $ 40.1 (a) Amounts recorded to bad debt expense are included within SG&A expenses in the consolidated statements of operations. Concentration of Credit Risk The Company sells its wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners around the world, and extends credit based on an evaluation of each customer's financial capacity and condition, usually without requiring collateral. In the Company's wholesale business, concentration of credit risk is relatively limited due to the large number of customers and their dispersion across many geographic areas. However, the Company has three key wholesale customers that generate significant sales volume. During Fiscal 2023, the Company's sales to its three largest wholesale customers accounted for approximately 16% of total net revenues. Substantially all of the Company's sales to its three largest wholesale customers related to its North America segment. As of April 1, 2023, these three key wholesale customers accounted for approximately 34% of total gross accounts receivable. Inventories The Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and third-party digital partners. Substantially all of the Company's inventories consist of finished goods, which are stated at the lower of cost or estimated realizable value, with cost determined on a weighted-average cost basis. The estimated realizable value of inventory is determined based on an analysis of historical sales trends of the Company's individual product lines, the impact of market trends and economic conditions (such as those resulting from pandemic diseases and other catastrophic events), and a forecast of future demand, giving consideration to the value of current in-house orders for future sales of inventory, as well as plans to sell inventory through the Company's outlet stores, among other liquidation channels. Actual results may differ from estimates due to the quantity, quality, and mix of products in inventory, consumer and retailer preferences, and actual economic and market conditions. In addition, reserves for inventory shrinkage, representing the risk of physical loss of inventory, are estimated based on historical experience and are adjusted based upon physical inventory counts. The Company's historical estimates of the realizable value of its inventory and its reserves for inventory shrinkage have not differed materially from actual results. However, unforeseen adverse future economic and market conditions could result in the Company's actual results differing materially from its estimates. Implementation Costs Incurred in Cloud Computing Arrangements For cloud computing arrangements that are a service contract, the Company capitalizes certain implementation costs incurred (depending on their nature) during the application development stage of the related project, and expenses costs during the preliminary project and post-implementation stages as they are incurred. Capitalized implementation costs are expensed on a straight-line basis over the reasonably certain term of the hosting arrangement, beginning when the module is ready for its intended use. The Company's cloud computing arrangements relate to various areas, including certain retail store and digital commerce operations, and corporate and administrative functions. Capitalized amounts related to such arrangements are recorded within prepaid expenses and other current assets and within other non-current assets in the consolidated balance sheets (see Note 7). Capitalized implementation costs expensed were $6.3 million, $9.2 million, and $8.4 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, and were recorded in SG&A expenses in the consolidated statements of operations. Property and Equipment, Net Property and equipment, net is stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis, based upon the estimated useful lives of depreciable assets, which range from 3 to 7 years for furniture and fixtures, machinery and equipment, and capitalized software; and from 10 to 40 years for buildings and improvements. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the respective assets or the term of the related lease. Property and equipment, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable (see Note 12). In evaluating long-lived assets for recoverability, including finite-lived intangibles as described below, the Company uses its best estimate of future cash flows expected to result from its use of the asset and its eventual disposition, where applicable. If such estimated future undiscounted net cash flows attributable to the asset are less than its carrying value, an impairment loss is recognized to the extent that such asset's carrying value exceeds its fair value, as estimated considering external market participant assumptions and discounted cash flows. Assets to be disposed of and for which there is a committed plan of disposal (commonly referred to as assets held-for-sale) are reported at the lower of carrying value or fair value, less costs to sell. Leases The Company's lease arrangements primarily relate to real estate, including its retail stores, concession-based shop-within-shops, corporate offices, and warehouse facilities and, to a lesser extent, certain equipment and other assets. The Company's leases generally have initial terms ranging from 3 to 10 years and may include renewal or early-termination options, rent escalation clauses, and/or lease incentives in the form of construction allowances and rent abatements. The Company is typically required to make fixed minimum rent payments, variable rent payments based on performance (e.g., percentage-of-sales-based payments), or a combination thereof, relating to its right to use an underlying leased asset. The Company is also often required to pay for certain other costs that do not relate specifically to its right to use an underlying leased asset, but that are associated with the asset, including real estate taxes, insurance, common area maintenance fees, and/or certain other costs (referred to collectively herein as "non-lease components"), which may be fixed or variable in amount, depending on the terms of the respective lease agreement. The Company's leases do not contain significantly restrictive covenants or residual value guarantees. The Company determines whether an arrangement contains a lease at the arrangement's inception. If a lease is determined to exist, its related term is assessed at the lease commencement date, once the underlying asset is made available by the lessor for the Company's use. The Company's assessment of the lease term reflects the non-cancellable period of the lease, inclusive of any rent-free periods, plus any periods covered by early-termination options for which the Company is not considered reasonably certain of exercising, as well as periods covered by renewal options for which it is considered reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation thereof in the consolidated statements of operations over the lease term. For leases with a lease term exceeding 12 months, a liability is recorded on the consolidated balance sheet at the lease commencement date reflecting the present value of its related fixed payment obligations over such term. A corresponding right-of-use ("ROU") asset equal to the initial lease liability is also recorded, increased by any prepaid rent and/or initial direct costs incurred in connection with execution of the lease, and reduced by any incentives provided by the lessor. The Company also includes fixed payment obligations related to non-lease components in the measurement of its ROU assets and lease liabilities, given its election to account for lease and non-lease components together as a single lease component. Variable lease payments are not included in the measurement of ROU assets and lease liabilities. ROU assets associated with finance leases are presented separately from those associated with operating leases, and are included within property and equipment, net on the consolidated balance sheet. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, given that rates implicit in its leasing arrangements are not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis an amount equal to the lease payments and incorporates the term and economic environment of the lease. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the remainin |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Apr. 01, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Disclosure of Supplier Finance Program Obligations In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, "Disclosure of Supplier Finance Program Obligations" ("ASU 2022-04"). ASU 2022-04 requires entities to disclose the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period and an annual rollforward of such obligations. This standard does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. ASU 2022-04 is effective for the Company beginning in its Fiscal 2024 and is to be applied retrospectively to all periods in which a balance sheet is presented. The annual rollforward disclosure is not required to be made until its fiscal year ending March 29, 2025 ("Fiscal 2025") and is to be applied prospectively. Early adoption is permitted. Other than the new disclosure requirements, ASU 2022-04 will not have an impact on the Company's consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" along with certain other ASUs that were subsequently issued to clarify and modify certain of its provisions (collectively "ASU 2020-04"). ASU 2020-04 provides temporary optional expedients and exceptions for the application of U.S. GAAP, if certain criteria are met, to contract modifications, hedging relationships, and other arrangements that are expected to be impacted by the global transition away from certain reference rates, such as the London Interbank Offered Rate ("LIBOR") and other interbank offered rates, towards new reference rates, such as the Secured Overnight Financing Rate ("SOFR"). The |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following: April 1, April 2, (millions) Land and improvements $ 15.3 $ 15.3 Buildings and improvements 471.9 480.4 Furniture and fixtures 608.8 589.6 Machinery and equipment 375.9 375.7 Capitalized software 541.1 532.1 Leasehold improvements 1,216.1 1,170.1 Construction in progress 60.9 55.4 3,290.0 3,218.6 Less: accumulated depreciation (2,334.5) (2,249.1) Property and equipment, net $ 955.5 $ 969.5 Property and equipment, net includes finance lease ROU assets, which are reflected in the table above based on their nature. Depreciation expense was $206.5 million, $211.8 million, and $227.4 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, and was recorded primarily within SG&A expenses in the consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table details the changes in goodwill for each of the Company's segments during Fiscal 2023 and Fiscal 2022: North America Europe Asia Other Non-reportable Segments Total (millions) Balance at March 27, 2021 $ 421.8 $ 304.0 $ 76.8 $ 132.0 $ 934.6 Foreign currency translation — (18.0) (7.9) — (25.9) Balance at April 2, 2022 421.8 286.0 68.9 132.0 908.7 Foreign currency translation — (4.2) (5.6) — (9.8) Balance at April 1, 2023 $ 421.8 $ 281.8 $ 63.3 $ 132.0 $ 898.9 Based on the results of the Company's goodwill impairment testing in Fiscal 2023, Fiscal 2022, and Fiscal 2021, no goodwill impairment charges were recorded. See Note 12 for further discussion of the Company's goodwill impairment testing. Other Intangible Assets Other intangible assets consist of the following: April 1, 2023 April 2, 2022 Gross Carrying Amount Accum. Amort. Net Gross Carrying Amount Accum. Amort. Net (millions) Intangible assets subject to amortization: Re-acquired licensed trademarks $ 226.3 $ (174.7) $ 51.6 $ 228.6 $ (168.8) $ 59.8 Customer relationships 239.8 (211.9) 27.9 245.8 (212.3) 33.5 Other 10.1 (8.0) 2.1 10.1 (7.8) 2.3 Total intangible assets subject to amortization 476.2 (394.6) 81.6 484.5 (388.9) 95.6 Intangible assets not subject to amortization: Trademarks and brands 7.3 N/A 7.3 7.3 N/A 7.3 Total intangible assets $ 483.5 $ (394.6) $ 88.9 $ 491.8 $ (388.9) $ 102.9 Amortization Expense Amortization expense was $14.0 million, $17.9 million, and $20.2 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, and is recorded within SG&A expenses in the consolidated statements of operations. Based on the balance of the Company's finite-lived intangible assets subject to amortization as of April 1, 2023, the expected amortization expense for each of the next five fiscal years and thereafter is as follows: Amortization (millions) Fiscal 2024 $ 13.2 Fiscal 2025 12.9 Fiscal 2026 10.7 Fiscal 2027 10.0 Fiscal 2028 10.0 Fiscal 2029 and thereafter 24.8 Total $ 81.6 The expected future amortization expense above reflects weighted-average estimated remaining useful lives of 7.1 years for re-acquired licensed trademarks, 6.9 years for customer relationships, and 7.1 years for the Company's finite-lived intangible assets in total. |
Other Assets and Liabilities
Other Assets and Liabilities | 12 Months Ended |
Apr. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Assets and Liabilities | Other Assets and Liabilities Prepaid expenses and other current assets consist of the following: April 1, April 2, (millions) Other taxes receivable $ 46.7 $ 26.2 Non-trade receivables 30.7 41.4 Prepaid software maintenance 18.5 16.4 Inventory return asset 10.5 8.3 Prepaid advertising and marketing 10.4 7.9 Prepaid logistic services 6.5 6.6 Cloud computing arrangement implementation costs 6.2 4.0 Prepaid occupancy expense 5.8 6.0 Prepaid insurance 4.1 3.0 Tenant allowances receivable 3.9 6.1 Derivative financial instruments 1.7 8.7 Other prepaid expenses and current assets 43.7 37.9 Total prepaid expenses and other current assets $ 188.7 $ 172.5 Other non-current assets consist of the following: April 1, April 2, (millions) Derivative financial instruments $ 42.8 $ 23.7 Security deposits 33.0 30.6 Equity method and other investments 10.6 12.0 Cloud computing arrangement implementation costs 10.1 9.7 Deferred rent assets 6.8 5.2 Restricted cash 6.1 6.6 Other non-current assets 23.6 23.4 Total other non-current assets $ 133.0 $ 111.2 Accrued expenses and other current liabilities consist of the following: April 1, April 2, (millions) Accrued inventory $ 212.3 $ 250.2 Accrued payroll and benefits 198.1 278.0 Accrued operating expenses 194.4 223.4 Dividends payable 49.2 48.1 Accrued capital expenditures 37.2 49.6 Other taxes payable 32.8 60.9 Restructuring reserve 20.8 30.8 Finance lease obligations 20.3 19.8 Deferred income 14.0 16.5 Other accrued expenses and current liabilities 16.4 14.1 Total accrued expenses and other current liabilities $ 795.5 $ 991.4 Other non-current liabilities consist of the following: April 1, April 2, (millions) Deferred lease incentives and obligations $ 43.2 $ 52.7 Accrued benefits and deferred compensation 12.4 12.0 Deferred tax liabilities 7.2 12.5 Derivative financial instruments — 18.1 Other non-current liabilities 38.1 36.6 Total other non-current liabilities $ 100.9 $ 131.9 |
Impairment of Assets
Impairment of Assets | 12 Months Ended |
Apr. 01, 2023 | |
Asset Impairment Charges [Abstract] | |
Impairments of Assets | Impairment of Assets During Fiscal 2023, the Company recorded impairment charges of $9.7 million to write-down certain long-lived assets, of which $9.5 million related to a certain previously exited real estate location for which the related lease agreement has not yet expired and $0.2 million related to its restructuring plans (see Note 9). During Fiscal 2022, the Company recorded impairment charges of $21.3 million to write-down certain long-lived assets in connection with its restructuring plans (see Note 9). During Fiscal 2021, the Company recorded impairment charges of $96.0 million to write-down certain long-lived assets, of which $69.4 million related to its restructuring plans (see Note 9), $17.5 million related to underperforming stores identified through its ongoing store portfolio evaluation and adverse impacts associated with COVID-19 business disruptions, and $9.1 million related to certain previously exited real estate locations for which the related lease agreements had not yet expired. See Note 12 for further discussion of these impairment charges recorded during the fiscal years presented. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges, Net A description of significant restructuring and other activities and their related costs is provided below. Fiscal 2021 Strategic Realignment Plan The Company has undertaken efforts to realign its resources to support future growth and profitability, and to create a sustainable, enhanced cost structure. The key areas of the Company's initiatives underlying these efforts involved evaluation of its: (i) team organizational structures and ways of working; (ii) real estate footprint and related costs across its corporate offices, distribution centers, and direct-to-consumer retail and wholesale doors; and (iii) brand portfolio. In connection with the first initiative, on September 17, 2020, the Company's Board of Directors approved a restructuring plan (the "Fiscal 2021 Strategic Realignment Plan") to reduce its global workforce. Additionally, during a preliminary review of its store portfolio during the second quarter of Fiscal 2021, the Company decided to close its Polo store on Regent Street in London. Shortly thereafter, on October 29, 2020, the Company announced the planned transition of its Chaps brand to a fully licensed business model, consistent with its long-term brand elevation strategy and in connection with its third initiative. Specifically, the Company entered into a multi-year licensing partnership, which took effect on August 1, 2021 following a transition period, with an affiliate of 5 Star Apparel LLC, a division of the OVED Group, to manufacture, market, and distribute Chaps menswear and womenswear. This agreement created incremental value for the Company by enabling an even greater focus on elevating its core brands in the marketplace, reducing its direct exposure to the North America department store channel, and setting up Chaps to deliver on its potential with an experienced partner that is focused on nurturing the brand. Later, on February 3, 2021, the Company's Board of Directors approved additional actions related to its real estate initiative. Specifically, the Company further rightsized and consolidated its global corporate offices to better align with its organizational profile and new ways of working. The Company also closed certain of its stores to improve overall profitability. Additionally, the Company further consolidated its North America distribution centers in order to drive greater efficiencies, improve sustainability, and deliver a better consumer experience. Finally, on June 26, 2021, in connection with its brand portfolio initiative, the Company sold its former Club Monaco business to Regent, L.P. ("Regent"), a global private equity firm, with no resulting gain or loss on sale realized during the first quarter of Fiscal 2022. Regent acquired Club Monaco's assets and liabilities in exchange for potential future cash consideration payable to the Company, including earn-out payments based on Club Monaco meeting certain defined revenue thresholds over a five-year period. Accordingly, the Company has realized amounts related to the receipt of such contingent consideration (as discussed further below) and additional amounts may be realized in the future. Additionally, in connection with this divestiture, the Company provided Regent with certain operational support for a transitional period of approximately one year, varying by functional area. Actions associated with the Fiscal 2021 Strategic Realignment Plan are now complete and no additional charges are expected to be incurred in connection with this plan. A summary of the charges recorded in connection with the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented, as well as the cumulative charges recorded since its inception (inclusive of immaterial other restructuring-related charges previously recorded during the first quarter of Fiscal 2021), is as follows: Fiscal Year Ended Cumulative Charges April 1, April 2, March 27, (millions) Cash-related restructuring charges: Severance and benefit costs (reversals) $ 8.6 $ (5.7) $ 144.2 $ 147.1 Other cash charges 3.9 7.7 14.9 26.5 Total cash-related restructuring charges 12.5 2.0 159.1 173.6 Non-cash charges: Impairment of assets (see Note 8) 0.2 21.3 69.4 90.9 Inventory-related charges (a) 0.3 — 8.3 8.6 Accelerated stock-based compensation expense (b) — 2.0 — 2.0 Other non-cash charges 6.7 — — 6.7 Total non-cash charges 7.2 23.3 77.7 108.2 Total charges $ 19.7 $ 25.3 $ 236.8 $ 281.8 (a) Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations. (b) Accelerated stock-based compensation expense, which was recorded within restructuring and other charges, net in the consolidated statements of operations, related to vesting provisions associated with certain separation agreements. In addition to the charges summarized in the table above, the Company recognized $4.0 million of income during Fiscal 2022 primarily related to a certain revenue share clause in its agreement with Regent that entitled it to receive a portion of the sales generated by the Club Monaco business during a four-month business transition period. The Company donated this income to The Ralph Lauren Corporate Foundation, a non-profit, charitable foundation, which resulted in a related offsetting $4.0 million donation expense during Fiscal 2022. Subsequently, during Fiscal 2023, the Company recognized an additional $3.5 million of income related to consideration received from Regent as a result of the Club Monaco business exceeding certain previously defined revenue thresholds over a specified time period. The Company also donated this income to The Ralph Lauren Corporate Foundation, which resulted in a related offsetting $3.5 million donation expense during Fiscal 2023. The income and related offsetting donation expense in both Fiscal 2022 and Fiscal 2023 were all recorded within restructuring and other charges, net in the consolidated statements of operations. A summary of the activity in the restructuring reserve related to the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented is as follows: Severance and Benefit Costs Other Cash Charges Total (millions) Balance at March 28, 2020 $ — $ — $ — Additions charged to expense 144.2 14.9 159.1 Cash payments applied against reserve (48.0) (11.7) (59.7) Balance at March 27, 2021 96.2 3.2 99.4 Additions (reductions) charged to expense (5.7) 7.7 2.0 Cash payments applied against reserve (60.5) (10.8) (71.3) Non-cash adjustments 0.6 — 0.6 Balance at April 2, 2022 30.6 0.1 30.7 Additions charged to expense 8.6 3.9 12.5 Cash payments applied against reserve (18.2) (4.0) (22.2) Non-cash adjustments (0.3) — (0.3) Balance at April 1, 2023 $ 20.7 $ — $ 20.7 Other Restructuring Plans Actions associated with the Company's restructuring plan initiated during its fiscal year ended March 30, 2019 were previously completed and no related charges were recorded in any of the fiscal years presented. The Company made cash payments of $0.2 million, $2.5 million, and $21.4 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, which were applied against the restructuring reserve associated with this restructuring plan. As of April 1, 2023, there was no remaining restructuring reserve associated with this plan. Other Charges The Company recorded other charges of $23.8 million, $11.8 million, and $11.4 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired. Additionally, during Fiscal 2022, the Company also recorded other charges of $6.4 million in connection with non-income-related capital taxes resulting from Swiss tax reform (see |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Inflation Reduction Act of 2022 On August 16, 2022, President Biden signed the Inflation Reduction Act ("IRA") into law. The IRA enacted a 15% corporate minimum tax rate (subject to certain thresholds being met) that will be applicable to the Company beginning in its Fiscal 2024, a 1% excise tax on share repurchases made after December 31, 2022, and created and extended certain tax-related energy incentives. The Company does not currently expect that the tax-related provisions of the IRA will have a material impact on its consolidated financial statements. See Note 16 for additional information relating to the Company's stock repurchase program. Swiss Tax Reform In May 2019, a public referendum was held in Switzerland that approved the Federal Act on Tax Reform and AHV Financing (the "Swiss Tax Act"), which became effective January 1, 2020. The Swiss Tax Act eliminated certain preferential tax items at both the federal and cantonal levels for multinational companies, and provided the cantons with parameters for establishing local tax rates and regulations. The Swiss Tax Act also provided transitional provisions, one of which allowed eligible companies to increase the tax basis of certain assets based on the value generated by their business in previous years, and to amortize such adjustment as a tax deduction over a transitional period. The Swiss Tax Act was enacted into law during Fiscal 2020, resulting in a one-time income tax benefit and corresponding deferred tax asset of $122.9 million. During Fiscal 2021, the Company reduced its one-time tax benefit by $13.8 million due to new legislation enacted in connection with the European Union's anti-tax avoidance directive, which increased the Company's effective tax rate by 1,840 basis points. Additionally, during Fiscal 2022, the Company recorded a charge of $6.4 million within restructuring and other charges, net in the consolidated statements of operations in connection with non-income-related capital taxes resulting from Swiss tax reform. Taxes on Income Domestic and foreign pretax income (loss) are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Domestic $ 74.3 $ 180.7 $ (285.0) Foreign 617.6 573.9 210.2 Total income (loss) before income taxes $ 691.9 $ 754.6 $ (74.8) Provisions for current and deferred income taxes are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Current: Federal $ (35.7) $ (24.2) $ 38.5 State and local 1.4 (21.6) 1.5 Foreign (131.0) (154.8) (50.7) (165.3) (200.6) (10.7) Deferred: Federal 14.3 53.8 (19.2) State and local (8.0) 8.2 3.5 Foreign (10.2) (15.9) (19.9) (3.9) 46.1 (35.6) Total income tax provision $ (169.2) $ (154.5) $ (46.3) Tax Rate Reconciliation The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Benefit (provision) for income taxes at the U.S. federal statutory rate $ (145.3) $ (158.5) $ 15.7 Change due to: State and local income taxes, net of federal benefit (6.3) (14.5) 6.1 Foreign income taxed at different rates, net of U.S. foreign tax credits (2.7) (2.6) (4.8) Deferred tax adjustments — 8.0 — Non-creditable foreign taxes (8.8) — — Foreign-derived intangible income benefit — 20.3 — Changes in valuation allowance on deferred tax assets (0.2) 3.6 (34.9) Unrecognized tax benefits and settlements of tax examinations (1.2) (11.5) (4.6) Swiss Tax Act expense — — (13.8) Compensation-related adjustments (7.7) (9.4) (12.9) Charitable contributions 2.8 3.7 7.4 Transfer pricing adjustments — — (4.1) Other 0.2 6.4 (0.4) Total income tax provision $ (169.2) $ (154.5) $ (46.3) Effective tax rate (a) 24.5 % 20.5 % (61.9 %) (a) Effective tax rate is calculated by dividing the income tax provision by income (loss) before income taxes. The Company's Fiscal 2023 effective tax rate was higher than the U.S. federal statutory income tax rate of 21% primarily due to the unfavorable impact of certain foreign deferred adjustments, compensation-related adjustments, and state taxes. The Company's Fiscal 2022 effective tax rate was slightly lower than the U.S. federal statutory income tax rate of 21% primarily due to favorable tax impacts of the foreign-derived intangible income deduction and deferred tax adjustments, partially offset by the unfavorable impacts of additional income tax reserves associated with certain income tax audits and tax impacts of compensation related adjustments. The Company's Fiscal 2021 effective tax rate was unfavorable to the U.S. federal statutory income tax rate of 21% primarily due to incremental tax expense resulting from new legislation enacted in connection with the European Union's anti-tax avoidance directive, as previously discussed, valuation allowances recorded against certain deferred tax assets as a result of significant business disruptions attributable to COVID-19, and tax impacts on stock-based compensation and other permanent adjustments, partially offset by an income tax benefit related to charitable contributions. Deferred Taxes Significant components of the Company's deferred tax assets and liabilities are as follows: April 1, April 2, (millions) Lease liabilities $ 334.9 $ 349.5 Deferred income 69.8 96.0 Deferred compensation 47.4 34.5 Property and equipment 39.2 15.7 Unrecognized tax benefits 34.2 31.7 Receivable allowances and reserves 31.4 31.2 Inventory basis difference 30.4 27.5 Capitalized software 14.5 — Net operating loss carryforwards 11.7 58.9 GILTI-related carryforwards 5.8 10.6 Accrued expenses 5.5 7.3 Transfer pricing — 4.1 Lease ROU assets (259.3) (273.1) Goodwill and other intangible assets (60.2) (53.9) Cumulative translation adjustment and hedges (23.1) (11.3) Undistributed foreign income (19.5) (4.0) Other (3.2) 11.7 Valuation allowance (11.6) (45.1) Net deferred tax assets (a) $ 247.9 $ 291.3 (a) Net deferred tax balances as of April 1, 2023 and April 2, 2022 were comprised of non-current deferred tax assets of $255.1 million and $303.8 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $7.2 million and $12.5 million, respectively, recorded within other non-current liabilities in the consolidated balance sheets. The Company has available state and foreign net operating loss carryforwards of $1.4 million and $2.5 million (all net of tax), respectively, for tax purposes to offset future taxable income. There are no federal net operating loss carryforwards available to the Company. The net operating loss carryforwards expire beginning in Fiscal 2025. The Company also has available state and foreign net operating loss carryforwards of $5.5 million and $2.3 million (both net of tax), respectively, for which no net deferred tax asset has been recognized. A full valuation allowance has been recorded against these carryforwards since the Company does not believe that it will more likely than not be able to utilize these carryforwards to offset future taxable income. Subsequent recognition of these deferred tax assets would result in an income tax benefit in the year of such recognition. The valuation allowance relating to state net operating loss carryforwards increased by $0.8 million (net of tax) as a result of changes in tax provision for jurisdictions where the Company does not believe that it will more likely than not be able to utilize these carryforwards in the future. The valuation allowance relating to foreign net operating loss carryforwards decreased by $25.3 million, mainly due to the write-off of related net operating losses in jurisdictions where the Company will no longer be able to utilize the carryforwards in the future. In January 2018, new U.S. tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "TCJA") became effective. The TCJA significantly revised U.S. tax law by, among other provisions, creating a territorial tax system that included a one-time mandatory transition tax on previously deferred foreign earnings. As a result of the taxation of undistributed foreign earnings in connection with the TCJA, the Company reevaluated its permanent reinvestment assertion and determined that undistributed foreign earnings that were subject to the TCJA's one-time mandatory transition tax were no longer considered to be permanently reinvested, effective December 31, 2017. The mandatory transition tax does not apply to undistributed foreign earnings generated after December 31, 2017. Accordingly, provision has not been made for U.S. or additional foreign taxes on approximately $2.178 billion of undistributed earnings of foreign subsidiaries generated after December 31, 2017, as such earnings are expected to be permanently reinvested. These earnings could become subject to tax if they were remitted as dividends, if foreign earnings were lent to RLC, a subsidiary or a U.S. affiliate of RLC, or if the stock of the subsidiaries were sold. Determination of the amount of unrecognized deferred tax liability with respect to such earnings is not practicable. Uncertain Income Tax Benefits Fiscal 2023, Fiscal 2022, and Fiscal 2021 Activity Reconciliations of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for Fiscal 2023, Fiscal 2022, and Fiscal 2021 are presented below: Fiscal Years Ended April 1, April 2, March 27, (millions) Unrecognized tax benefits beginning balance $ 75.4 $ 71.4 $ 72.7 Additions related to current period tax positions 13.3 21.6 3.2 Additions related to prior period tax positions 0.6 8.1 8.8 Reductions related to prior period tax positions (4.3) (7.6) (4.2) Reductions related to expiration of statutes of limitations (2.9) (1.1) (2.1) Reductions related to settlements with taxing authorities (4.5) (14.8) (9.6) Additions (reductions) related to foreign currency translation (0.5) (2.2) 2.6 Unrecognized tax benefits ending balance $ 77.1 $ 75.4 $ 71.4 The Company classifies interest and penalties related to unrecognized tax benefits as part of its provision for income taxes. Reconciliations of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for Fiscal 2023, Fiscal 2022, and Fiscal 2021 are presented below: Fiscal Years Ended April 1, April 2, March 27, (millions) Accrued interest and penalties beginning balance $ 16.5 $ 20.0 $ 16.2 Net additions charged to expense 2.6 2.6 5.5 Reductions related to prior period tax positions (1.9) (0.9) (1.7) Reductions related to settlements with taxing authorities (0.4) (5.0) (0.3) Additions (reductions) related to foreign currency translation (0.1) (0.2) 0.3 Accrued interest and penalties ending balance $ 16.7 $ 16.5 $ 20.0 The total amount of unrecognized tax benefits, including interest and penalties, was $93.8 million and $91.9 million as of April 1, 2023 and April 2, 2022, respectively, and was included within the non-current liability for unrecognized tax benefits in the consolidated balance sheets. The total amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate was $59.6 million and $60.1 million as of April 1, 2023 and April 2, 2022, respectively. Future Changes in Unrecognized Tax Benefits The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, the Company does not anticipate that the balance of gross unrecognized tax benefits, excluding interest and penalties, will change significantly during the next twelve months. However, changes in the occurrence, expected outcomes, and timing of such events could cause the Company's current estimate to change materially in the future. The Company files a consolidated U.S. federal income tax return, as well as tax returns in various state, local, and foreign jurisdictions. The Company is generally no longer subject to examinations by the relevant tax authorities for years prior to its fiscal year ended March 30, 2013. |
Debt
Debt | 12 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Debt consists of the following: April 1, April 2, (millions) $400 million 3.750% Senior Notes (a) $ 398.4 $ 397.7 $500 million 1.700% Senior Notes (b) — 499.8 $750 million 2.950% Senior Notes (c) 740.1 738.8 Total debt 1,138.5 1,636.3 Less: current portion of long-term debt — 499.8 Total long-term debt $ 1,138.5 $ 1,136.5 (a) The carrying value of the 3.750% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $1.6 million and $2.3 million as of April 1, 2023 and April 2, 2022, respectively. (b) The carrying value of the 1.700% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $0.2 million as of April 2, 2022. (c) The carrying value of the 2.950% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $9.9 million and $11.2 million as of April 1, 2023 and April 2, 2022, respectively. Senior Notes In August 2018, the Company completed a registered public debt offering and issued $400 million aggregate principal amount of unsecured senior notes due September 15, 2025, which bear interest at a fixed rate of 3.750%, payable semi-annually (the "3.750% Senior Notes"). The 3.750% Senior Notes were issued at a price equal to 99.521% of their principal amount. The proceeds from this offering were used for general corporate purposes, including repayment of the Company's previously outstanding $300 million principal amount of 2.125% unsecured senior notes that matured September 26, 2018. In June 2020, the Company completed another registered public debt offering and issued an additional $500 million aggregate principal amount of unsecured senior notes that were due and repaid on June 15, 2022 with cash on hand, which bore interest at a fixed rate of 1.700%, payable semi-annually (the "1.700% Senior Notes"), and $750 million aggregate principal amount of unsecured senior notes due June 15, 2030, which bear interest at a fixed rate of 2.950%, payable semi-annually (the "2.950% Senior Notes"). The 1.700% Senior Notes and 2.950% Senior Notes were issued at prices equal to 99.880% and 98.995% of their principal amounts, respectively. The proceeds from these offerings were used for general corporate purposes, which included the repayment of $475 million previously outstanding under the Company's Global Credit Facility (as defined below) on June 3, 2020 and repayment of its previously outstanding $300 million principal amount of 2.625% unsecured senior notes that matured August 18, 2020. The Company has the option to redeem the 3.750% Senior Notes and 2.950% Senior Notes (collectively, the "Senior Notes"), in whole or in part, at any time at a price equal to accrued and unpaid interest on the redemption date plus the greater of (i) 100% of the principal amount of the series of Senior Notes to be redeemed or (ii) the sum of the present value of Remaining Scheduled Payments, as defined in the supplemental indentures governing such Senior Notes (together with the indenture governing the Senior Notes, the "Indenture"). The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. Commercial Paper The Company has a commercial paper borrowing program that allows it to issue up to $500 million of unsecured commercial paper notes through private placement using third-party broker-dealers (the "Commercial Paper Program"). Borrowings under the Commercial Paper Program are supported by the Global Credit Facility (as defined below). Accordingly, the Company does not expect combined borrowings outstanding under the Commercial Paper Program and Global Credit Facility to exceed $500 million. Commercial Paper Program borrowings may be used to support the Company's general working capital and corporate needs. Maturities of commercial paper notes vary, but cannot exceed 397 days from the date of issuance. Commercial paper notes issued under the Commercial Paper Program rank equally in seniority with the Company's other forms of unsecured indebtedness. As of both April 1, 2023 and April 2, 2022, there were no borrowings outstanding under the Commercial Paper Program. Revolving Credit Facilities Global Credit Facility In August 2019, the Company replaced its then existing credit facility and entered into a new credit facility that provides for a $500 million senior unsecured revolving line of credit through August 12, 2024 (the "Global Credit Facility") under terms and conditions substantially similar to those of the previous facility. The Global Credit Facility is also used to support the issuance of letters of credit and maintenance of the Commercial Paper Program. Borrowings under the Global Credit Facility may be denominated in U.S. Dollars and certain other currencies, including Euros, Hong Kong Dollars, and Japanese Yen, and are guaranteed by all of the Company's domestic significant subsidiaries. In accordance with the terms of the agreement governing the Global Credit Facility, the Company has the ability to expand its borrowing availability under the Global Credit Facility to $1 billion, subject to the agreement of one or more new or existing lenders under the facility to increase their commitments. There are no mandatory reductions in borrowing ability throughout the term of the Global Credit Facility. Under the Global Credit Facility as originally implemented, U.S. Dollar-denominated borrowings bore interest, at the Company's option, either at (a) a base rate, by reference to the greatest of: (i) the annual prime commercial lending rate of JPMorgan Chase Bank, N.A. in effect from time to time, (ii) the weighted-average overnight Federal funds rate plus 50 basis points, or (iii) one-month LIBOR plus 100 basis points; or (b) LIBOR, adjusted for the Federal Reserve Board's Eurocurrency liabilities maximum reserve percentage, plus a spread of 75 basis points, subject to adjustment based on the Company's credit ratings ("Adjusted LIBOR"). Foreign currency-denominated borrowings bore interest at Adjusted LIBOR. In addition to paying interest on any outstanding borrowings under the Global Credit Facility, the Company is required to pay a commitment fee to the lenders under the Global Credit Facility relating to the unutilized commitments. The current commitment fee rate of 9 basis points is subject to adjustment based on the Company's credit ratings. Certain of these provisions were amended in January 2022 and March 2022, as discussed further below. The Global Credit Facility contains a number of covenants that, among other things, restrict the Company's ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make certain investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the "leverage ratio") of no greater than 4.25 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding, including finance lease obligations, plus all operating lease obligations. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, (iv) operating lease cost, (v) restructuring and other non-recurring expenses, and (vi) acquisition-related costs. Certain of these requirements were temporarily amended in May 2020, as discussed below. In response to the COVID-19 pandemic, the Company entered into an amendment of its Global Credit Facility in May 2020 (the "Amendment"), which among its various provisions (as described in Note 11 of the Fiscal 2021 10-K), temporarily waived its leverage ratio requirement and imposed certain restrictions, including but not limited to, the amount of dividends and distributions on, or purchases, redemptions, repurchases, retirements or acquisitions of, the Company's stock. Subsequently, in November 2021, all terms and conditions reverted back to the original credit facility agreement upon the Company satisfying certain requirements stipulated in the Amendment. In 2020 and 2021, it was publicly announced that LIBOR rates would cease to be published for U.S. Dollars on June 30, 2023 and for Euros, Japanese Yen, and certain other currencies on December 31, 2021. The U.S. federal bank regulatory agencies jointly recommended that banks cease entering into new contracts using LIBOR as a reference rate as soon as practicable but by no later than December 31, 2021, and that new contracts entered into prior to December 31, 2021 should either use a reference rate other than LIBOR or include effective fallback language with a clearly-defined alternative reference rate effective upon the discontinuation of LIBOR. The Alternative Reference Rates Committee, which is a group of private-market participants convened by the Federal Reserve Board and the Federal Reserve Bank of New York to help ensure a successful transition from LIBOR, recommended the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York ("SOFR") as the alternative to LIBOR. As a result of the cessation of LIBOR, in January 2022 the Company entered into a second amendment of its Global Credit Facility (the "Second Amendment"). Under the Second Amendment, alternate rates of interest were provided for specific Eurocurrency borrowings. Eurocurrency borrowings denominated in Euros now bear interest based on the Adjusted Euro Interbank Offered Rate, those denominated in Japanese Yen now bear interest based on the Adjusted Tokyo Interbank Offered Rate and those denominated in Hong Kong Dollars now bear interest based on the Adjusted Hong Kong Dollar Interbank Offered Rate, as each such term is defined in the Global Credit Facility as amended by the Second Amendment. In March 2022, the Company entered into a third amendment of its Global Credit Facility (the "Third Amendment"). Under the Third Amendment, an alternative rate of interest to the LIBOR rate was established for U.S. Dollar-denominated borrowings. U.S. Dollar-denominated borrowings now bear interest based on, at the Company's option, either (a) a base rate, determined by reference to the greatest of: (i) the prime commercial lending rate as quoted in the Wall Street Journal in effect from time to time; (ii) the greater of the rate comprised of both overnight federal funds and overnight eurodollar transactions or the rate calculated based on federal funds transactions by depositary institutions, in either case determined by the Federal Reserve Bank of New York, plus 50 basis points; or (iii) the Adjusted Term SOFR Rate, as such term is defined in the Global Credit Facility as amended by the Third Amendment, for one-month plus 100 basis points, (b) the Term SOFR Rate, as such term is defined in the Global Credit Facility as amended by the Third Amendment, plus 10 basis points or (c) a rate equal to the Daily Simple SOFR Rate, as such term is defined in the Global Credit Facility, as amended by the Third Amendment, plus 10 basis points. The Third Amendment also added provisions to the Global Credit Facility to address possible future situations in which a reference rate for determining a relevant interest rate under the Global Credit Facility is no longer available or representative. Upon the occurrence of an Event of Default under the Global Credit Facility, the lenders may cease making loans, terminate the Global Credit Facility, and declare all amounts outstanding to be immediately due and payable. The Global Credit Facility specifies a number of events of default (many of which are subject to applicable grace periods), including, among others, the failure to make timely principal, interest, and fee payments or to satisfy the covenants, including the financial covenant described above. Additionally, the Global Credit Facility provides that an Event of Default will occur if Mr. Ralph Lauren, the Company's Executive Chairman and Chief Creative Officer, and entities controlled by the Lauren family fail to maintain a specified minimum percentage of the voting power of the Company's common stock. As of April 1, 2023, no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company's Global Credit Facility. In March 2020, the Company borrowed $475.0 million under the Global Credit Facility as a preemptive action to preserve cash and strengthen its liquidity position in response to the COVID-19 pandemic, which was subsequently repaid in June 2020. As of both April 1, 2023 and April 2, 2022, there were no borrowings outstanding under the Global Credit Facility. However, the Company was contingently liable for $11.9 million and $9.5 million of outstanding letters of credit as of April 1, 2023 and April 2, 2022, respectively. Pan-Asia Borrowing Facilities Certain of the Company's subsidiaries in Asia have uncommitted credit facilities with regional branches of JPMorgan Chase in China and South Korea (the "Pan-Asia Credit Facilities"). Additionally, the Company's Japan and China subsidiaries have uncommitted overdraft facilities with Sumitomo Mitsui Banking Corporation and HSBC Bank Company Limited, respectively, (the "Pan-Asia Overdraft Facilities"). The Pan-Asia Credit Facilities and the Pan-Asia Overdraft Facilities (collectively, the "Pan-Asia Borrowing Facilities") are subject to annual renewal and may be used to fund general working capital needs of the Company's operations in the respective countries. Borrowings under the Pan-Asia Borrowing Facilities are guaranteed by the parent company and are granted at the sole discretion of the respective banks, subject to availability of the banks' funds and satisfaction of certain regulatory requirements. The Pan-Asia Borrowing Facilities do not contain any financial covenants. A summary of the Company's Pan-Asia Borrowing Facilities by country is as follows: • China Credit Facility — provides Ralph Lauren Trading (Shanghai) Co., Ltd. with a revolving line of credit of up to 100 million Chinese Renminbi (approximately $14 million) through April 3, 2024, which is also able to be used to support bank guarantees. • South Korea Credit Facility — provides Ralph Lauren (Korea) Ltd. with a revolving line of credit of up to 30 billion South Korean Won (approximately $23 million) through October 27, 2023. • Japan Overdraft Facility — provides Ralph Lauren Corporation Japan with an overdraft amount of up to 5 billion Japanese Yen (approximately $38 million) through April 30, 2024. • China Overdraft Facility — provides Ralph Lauren Trading (Shanghai) Co., Ltd. with an overdraft amount of up to 100 million Chinese Renminbi (approximately $14 million) through June 17, 2023. As of both April 1, 2023 and April 2, 2022, there were no borrowings outstanding under the Pan-Asia Borrowing Facilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements U.S. GAAP prescribes a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: • Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable. • Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement. The following table summarizes the Company's financial assets and liabilities that are measured and recorded at fair value on a recurring basis, excluding accrued interest components: April 1, April 2, (millions) Derivative assets (a) $ 44.5 $ 32.4 Derivative liabilities (a) 5.7 18.3 (a) Based on Level 2 measurements. The Company's derivative financial instruments are recorded at fair value in its consolidated balance sheets and are valued using pricing models that are primarily based on market observable external inputs, including spot and forward currency exchange rates, benchmark interest rates, and discount rates consistent with the instrument's tenor, and consider the impact of the Company's own credit risk, if any. Changes in counterparty credit risk are also considered in the valuation of derivative financial instruments. To the extent the Company invests in commercial paper, such investments are classified as available-for-sale and recorded at fair value in its consolidated balance sheets using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's investments. To the extent the Company invests in bonds, such investments are also classified as available-for-sale and recorded at fair value in its consolidated balance sheets based on quoted prices in active markets. The Company's cash and cash equivalents, restricted cash, and time deposits are recorded at carrying value, which generally approximates fair value based on Level 1 measurements. The Company's debt instruments are recorded at their amortized cost in its consolidated balance sheets, which may differ from their respective fair values. The fair values of the Company's senior notes are estimated based on external pricing data, including available quoted market prices, and with reference to comparable debt instruments with similar interest rates, credit ratings, and trading frequency, among other factors. The fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, are estimated using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's outstanding borrowings. Due to their short-term nature, the fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, generally approximate their amortized cost carrying values. The following table summarizes the carrying values and the estimated fair values of the Company's debt instruments: April 1, 2023 April 2, 2022 Carrying Value (a) Fair Value (b) Carrying Value (a) Fair Value (b) (millions) $400 million 3.750% Senior Notes $ 398.4 $ 393.6 $ 397.7 $ 407.9 $500 million 1.700% Senior Notes — N/A 499.8 500.5 $750 million 2.950% Senior Notes 740.1 677.1 738.8 721.0 (a) See Note 11 for discussion of the carrying values of the Company's senior notes. (b) Based on Level 2 measurements. Unrealized gains or losses resulting from changes in the fair value of the Company's debt instruments do not result in the realization or expenditure of cash unless the debt is retired prior to its maturity. Non-financial Assets and Liabilities The Company's non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at their amortized or depreciated cost in its consolidated balance sheet. However, on a periodic basis or whenever events or changes in circumstances indicate that they may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), the respective carrying value of non-financial assets are assessed for impairment and, if ultimately considered impaired, are adjusted and written down to their fair value, as estimated based on consideration of external market participant assumptions and discounted cash flows. During Fiscal 2023, Fiscal 2022, and Fiscal 2021, the Company recorded impairment charges to reduce the carrying values of certain long-lived assets to their estimated fair values. The fair values of these assets were determined based on Level 3 measurements, the related inputs of which included estimates of the amount and timing of the assets' net future discounted cash flows (including any potential sublease income for lease-related ROU assets), based on historical experience and consideration of current trends, market conditions, and comparable sales, as applicable. The following table summarizes impairment charges recorded by the Company during the fiscal years presented to reduce the carrying values of certain long-lived assets to their estimated fair values as of the assessment date: Fiscal Years Ended April 1, 2023 April 2, 2022 March 27, 2021 Long-Lived Asset Category Total Impairments Fair Value Total Impairments Fair Value Total Impairments Fair Value (millions) Property and equipment, net $ 0.2 $ — $ 1.0 $ — $ 44.1 $ 23.5 Operating lease right-of-use assets 9.5 14.8 20.3 27.8 51.9 84.3 See Note 8 for additional discussion regarding impairment charges recorded by the Company within the consolidated statements of operations during the fiscal years presented. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Financial Instruments The Company is exposed to changes in foreign currency exchange rates, primarily relating to certain anticipated cash flows and the value of the reported net assets of its international operations, as well as changes in the fair value of its fixed-rate debt obligations attributed to changes in benchmark interest rates. Accordingly, based on its assessment thereof, the Company may use derivative financial instruments to manage and mitigate such risks. The Company does not use derivatives for speculative or trading purposes. The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of April 1, 2023 and April 2, 2022: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument (a) April 1, 2023 April 2, 2022 April 1, April 2, April 1, April 2, Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair (millions) Designated Hedges: FC — Cash flow hedges $ 345.1 $ 236.5 PP $ 1.4 PP $ 6.6 AE $ 5.0 $ — Net investment hedges (c) 700.0 700.0 ONCA 42.8 ONCA 23.7 — ONCL 18.1 Total Designated Hedges 1,045.1 936.5 44.2 30.3 5.0 18.1 Undesignated Hedges: FC — Undesignated hedges (d) 164.8 225.0 PP 0.3 PP 2.1 AE 0.7 AE 0.2 Total Hedges $ 1,209.9 $ 1,161.5 $ 44.5 $ 32.4 $ 5.7 $ 18.3 (a) FC = Forward foreign currency exchange contracts. (b) PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCA = Other non-current assets; ONCL = Other non-current liabilities. (c) Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations. (d) Relates to third-party and intercompany foreign currency-denominated exposures and balances. The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across nine separate counterparties, the amounts presented in the consolidated balance sheets as of April 1, 2023 and April 2, 2022 would be adjusted from the current gross presentation as detailed in the following table: April 1, 2023 April 2, 2022 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements Net Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements Net (millions) Derivative assets $ 44.5 $ (4.5) $ 40.0 $ 32.4 $ (0.2) $ 32.2 Derivative liabilities 5.7 (4.5) 1.2 18.3 (0.2) 18.1 The Company's master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. See Note 3 for further discussion of the Company's master netting arrangements. The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the fiscal years presented: Gains (Losses) Fiscal Years Ended April 1, April 2, March 27, (millions) Designated Hedges: FC — Cash flow hedges $ 18.1 $ 9.0 $ (3.5) Net investment hedges — effective portion 10.6 46.8 (35.5) Net investment hedges — portion excluded from assessment of hedge effectiveness 26.6 3.6 (50.8) Total Designated Hedges $ 55.3 $ 59.4 $ (89.8) Location and Amount of Gains (Losses) Fiscal Years Ended April 1, 2023 April 2, 2022 March 27, 2021 Cost of Other income (expense), net Cost of Other income (expense), net Cost of Other income (expense), net (millions) Total amounts presented in the consolidated statements of operations in which the effects of related cash flow hedges are recorded $ (2,277.8) $ (4.1) $ (2,071.0) $ 4.7 $ (1,539.4) $ 7.6 Effects of cash flow hedging: FC — Cash flow hedges 23.8 — 3.8 — 12.6 (0.3) Gains (Losses) from Net Investment Hedges Recognized in Earnings Location of Fiscal Years Ended April 1, April 2, March 27, (millions) Net Investment Hedges: Net investment hedges — portion excluded from assessment of hedge effectiveness (a) $ 13.0 $ 11.9 $ 11.3 Interest expense Total Net Investment Hedges $ 13.0 $ 11.9 $ 11.3 (a) Amounts recognized in OCI relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment. As of April 1, 2023, it is estimated that $4.2 million of pretax n et gains on both outstanding and matured derivative instruments designated and qualifying as cash flow hedges deferred in AOCI will be recognized in earnings over the next twelve months. Amounts ultimately recognized in earnings will depend on exchange rates in effect when outstanding derivative instruments are settled. The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the fiscal years presented: Gains (Losses) Location of Fiscal Years Ended April 1, April 2, March 27, (millions) Undesignated Hedges: FC — Undesignated hedges $ 13.0 $ 6.9 $ (0.8) Other income (expense), net Total Undesignated Hedges $ 13.0 $ 6.9 $ (0.8) Risk Management Strategies Forward Foreign Currency Exchange Contracts The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency, the settlement of foreign currency-denominated balances, and the translation of certain foreign operations' net assets into U.S. Dollars. As part of its overall strategy for managing the level of exposure to such exchange rate risk, relating primarily to the Euro, the Japanese Yen, the South Korean Won, the Australian Dollar, the Canadian Dollar, the British Pound Sterling, the Swiss Franc, and the Chinese Renminbi, the Company generally hedges a portion of its related exposures anticipated over the next twelve months using forward foreign currency exchange contracts with maturities of two months to one year to provide continuing coverage over the period of the respective exposure. Cross-Currency Swap Contracts The Company periodically designates pay-fixed rate, receive fixed-rate cross-currency swap contracts as hedges of its net investment in certain of its European subsidiaries. These contracts swap U.S. Dollar-denominated fixed interest rate payments based on the contract's notional amount and the fixed rate of interest payable on certain of the Company's senior notes for Euro-denominated fixed interest rate payments, thereby economically converting a portion of its fixed-rate U.S. Dollar-denominated senior note obligations to fixed-rate Euro-denominated obligations. See Note 3 for further discussion of the Company's accounting policies relating to its derivative financial instruments. Investments The Company's short-term investments as of April 1, 2023 and April 2, 2022, were $36.4 million and $734.6 million, respectively, and consisted of time deposits. No significant realized or unrealized gains or losses on available-for-sale investments or impairment charges were recorded during any of the fiscal years presented. Refer to Note 3 for further discussion of the Company's accounting policies relating to its investments. |
Leases
Leases | 12 Months Ended |
Apr. 01, 2023 | |
Lessee Disclosure [Abstract] | |
Leases, Operating | Leases The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheet: April 1, April 2, Location Recorded on Balance Sheet (millions) Assets: Operating leases $ 1,134.0 $ 1,111.3 Operating lease right-of-use assets Finance leases 271.7 299.4 Property and equipment, net Total lease assets $ 1,405.7 $ 1,410.7 Liabilities: Operating leases : Current portion $ 266.7 $ 262.0 Current operating lease liabilities Non-current portion 1,141.1 1,132.2 Long-term operating lease liabilities Total operating lease liabilities 1,407.8 1,394.2 Finance leases : Current portion 20.3 19.8 Accrued expenses and other current liabilities Non-current portion 315.3 341.6 Long-term finance lease liabilities Total finance lease liabilities 335.6 361.4 Total lease liabilities $ 1,743.4 $ 1,755.6 The following table summarizes the composition of total lease cost during the fiscal years presented: Fiscal Years Ended April 1, April 2, March 27, Location Recorded in Earnings (millions) Operating lease cost $ 294.3 $ 300.2 $ 323.5 (a) Finance lease costs : Depreciation of leased assets 24.5 26.1 20.5 (b) Accretion of lease liabilities 11.2 12.2 9.7 Interest expense Variable lease cost 318.3 291.2 224.7 (c) Short-term lease cost 2.8 3.6 4.9 SG&A expenses Sublease income (8.2) (6.7) (1.8) Restructuring and other charges, net Total lease cost $ 642.9 $ 626.6 $ 581.5 (a) During Fiscal 2023, $3.1 million was included within cost of goods sold, $269.4 million was included within SG&A expenses, and $21.8 million was included within restructuring and other charges, net. During Fiscal 2022, $3.3 million was included within cost of goods sold, $276.2 million was included within SG&A expenses, and $20.7 million was included within restructuring and other charges, net. During Fiscal 2021, $3.4 million was included within cost of goods sold, $307.0 million was included within SG&A expenses, and $13.1 million was included within restructuring and other charges, net. (b) During Fiscal 2023, $22.8 million was included within SG&A expenses and $1.7 million was included within restructuring and other charges, net. During Fiscal 2022 and Fiscal 2021, depreciation of leased assets were included within SG&A expenses. (c) During Fiscal 2023, $3.5 million was included within cost of goods sold, $307.8 million was included within SG&A expenses, and $7.0 million was included within restructuring and other charges, net. During Fiscal 2022, $4.6 million was included within cost of goods sold and $288.6 million was included within SG&A expenses, and a benefit of $2.0 million was included within restructuring and other charges, net. During Fiscal 2021, $4.5 million was included within cost of goods sold and $220.2 million was included within SG&A expenses. The following table summarizes certain cash flow information related to the Company's leases: Fiscal Year Ended April 1, April 2, March 27, (millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 342.7 $ 384.6 $ 360.6 Operating cash flows from finance leases 11.2 12.3 6.7 Financing cash flows from finance leases 21.9 23.1 13.9 See Note 21 for supplemental non-cash information related to ROU assets recorded in connection with the recognition of new lease liabilities. The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of April 1, 2023: April 1, 2023 Operating Finance (millions) Fiscal 2024 $ 299.1 $ 33.0 Fiscal 2025 296.5 34.1 Fiscal 2026 219.4 34.4 Fiscal 2027 186.0 33.9 Fiscal 2028 150.2 31.7 Fiscal 2029 and thereafter 386.9 242.6 Total lease payments 1,538.1 409.7 Less: interest (130.3) (74.1) Total lease liabilities $ 1,407.8 $ 335.6 Additionally, the Company has $20.8 million of future payment obligations relating to executed lease agreements for which the related lease terms had not yet commenced as of the end of Fiscal 2023, and, therefore, are not recorded on the consolidated balance sheet as of April 1, 2023. The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet: April 1, 2023 April 2, 2022 Operating Finance Operating Finance Weighted-average remaining lease term (years) 6.5 12.7 6.8 13.5 Weighted-average discount rate 2.5 % 3.1 % 1.9 % 3.2 % See Note 3 for discussion of the Company's accounting policies related to leases. |
Leases, Finance | Leases The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheet: April 1, April 2, Location Recorded on Balance Sheet (millions) Assets: Operating leases $ 1,134.0 $ 1,111.3 Operating lease right-of-use assets Finance leases 271.7 299.4 Property and equipment, net Total lease assets $ 1,405.7 $ 1,410.7 Liabilities: Operating leases : Current portion $ 266.7 $ 262.0 Current operating lease liabilities Non-current portion 1,141.1 1,132.2 Long-term operating lease liabilities Total operating lease liabilities 1,407.8 1,394.2 Finance leases : Current portion 20.3 19.8 Accrued expenses and other current liabilities Non-current portion 315.3 341.6 Long-term finance lease liabilities Total finance lease liabilities 335.6 361.4 Total lease liabilities $ 1,743.4 $ 1,755.6 The following table summarizes the composition of total lease cost during the fiscal years presented: Fiscal Years Ended April 1, April 2, March 27, Location Recorded in Earnings (millions) Operating lease cost $ 294.3 $ 300.2 $ 323.5 (a) Finance lease costs : Depreciation of leased assets 24.5 26.1 20.5 (b) Accretion of lease liabilities 11.2 12.2 9.7 Interest expense Variable lease cost 318.3 291.2 224.7 (c) Short-term lease cost 2.8 3.6 4.9 SG&A expenses Sublease income (8.2) (6.7) (1.8) Restructuring and other charges, net Total lease cost $ 642.9 $ 626.6 $ 581.5 (a) During Fiscal 2023, $3.1 million was included within cost of goods sold, $269.4 million was included within SG&A expenses, and $21.8 million was included within restructuring and other charges, net. During Fiscal 2022, $3.3 million was included within cost of goods sold, $276.2 million was included within SG&A expenses, and $20.7 million was included within restructuring and other charges, net. During Fiscal 2021, $3.4 million was included within cost of goods sold, $307.0 million was included within SG&A expenses, and $13.1 million was included within restructuring and other charges, net. (b) During Fiscal 2023, $22.8 million was included within SG&A expenses and $1.7 million was included within restructuring and other charges, net. During Fiscal 2022 and Fiscal 2021, depreciation of leased assets were included within SG&A expenses. (c) During Fiscal 2023, $3.5 million was included within cost of goods sold, $307.8 million was included within SG&A expenses, and $7.0 million was included within restructuring and other charges, net. During Fiscal 2022, $4.6 million was included within cost of goods sold and $288.6 million was included within SG&A expenses, and a benefit of $2.0 million was included within restructuring and other charges, net. During Fiscal 2021, $4.5 million was included within cost of goods sold and $220.2 million was included within SG&A expenses. The following table summarizes certain cash flow information related to the Company's leases: Fiscal Year Ended April 1, April 2, March 27, (millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 342.7 $ 384.6 $ 360.6 Operating cash flows from finance leases 11.2 12.3 6.7 Financing cash flows from finance leases 21.9 23.1 13.9 See Note 21 for supplemental non-cash information related to ROU assets recorded in connection with the recognition of new lease liabilities. The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of April 1, 2023: April 1, 2023 Operating Finance (millions) Fiscal 2024 $ 299.1 $ 33.0 Fiscal 2025 296.5 34.1 Fiscal 2026 219.4 34.4 Fiscal 2027 186.0 33.9 Fiscal 2028 150.2 31.7 Fiscal 2029 and thereafter 386.9 242.6 Total lease payments 1,538.1 409.7 Less: interest (130.3) (74.1) Total lease liabilities $ 1,407.8 $ 335.6 Additionally, the Company has $20.8 million of future payment obligations relating to executed lease agreements for which the related lease terms had not yet commenced as of the end of Fiscal 2023, and, therefore, are not recorded on the consolidated balance sheet as of April 1, 2023. The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet: April 1, 2023 April 2, 2022 Operating Finance Operating Finance Weighted-average remaining lease term (years) 6.5 12.7 6.8 13.5 Weighted-average discount rate 2.5 % 3.1 % 1.9 % 3.2 % See Note 3 for discussion of the Company's accounting policies related to leases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies TCJA Mandatory Transition Tax In connection with the TCJA's provision that subjects previously deferred foreign earnings to a one-time mandatory transition tax, the Company had a remaining related income tax payable obligation of $99.3 million as of April 1, 2023, which is expected to be paid as follows: Mandatory Transition Tax Payments (a) (millions) Fiscal 2024 $ 23.4 Fiscal 2025 33.7 Fiscal 2026 42.2 Total mandatory transition tax payments $ 99.3 (a) Included within current and non-current income tax payable in the consolidated balance sheets based upon the estimated timing of payments. Employee Agreements The Company has employment agreements with certain executives in the normal course of business which provide for compensation and certain other benefits. These agreements also provide for severance payments under certain circumstances. Other Commitments Other off-balance sheet firm commitments amounted to $1.257 billion as of April 1, 2023, including inventory purchase commitments of $878.6 million, lease commitments related to lease agreements for which the related lease terms have not yet commenced of $20.8 million, outstanding letters of credit of $11.9 million, interest payments related to the Company's debt of $203.5 million, and other commitments of $142.1 million, comprised of the Company's legally-binding obligations under sponsorship, licensing, and other marketing and advertising agreements, information technology-related service agreements, and pension-related obligations. Other Matters The Company is involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to its business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, importation and exportation of its products, taxation, unclaimed property, leases, and employee relations. The Company believes at present that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on its consolidated financial statements. However, the Company's assessment of any current litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact which are not in accord with management's evaluation of the possible liability or outcome of such litigation or claims. |
Equity
Equity | 12 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Equity | Equity Capital Stock The Company's capital stock consists of two classes of common stock. There are 500 million shares of Class A common stock and 100 million shares of Class B common stock authorized to be issued. Shares of Class A and Class B common stock have substantially identical rights, except with respect to voting rights. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. Holders of both classes of stock vote together as a single class on all matters presented to the stockholders for their approval, except with respect to the election and removal of directors or as otherwise required by applicable law. All outstanding shares of Class B common stock are owned by Mr. Ralph Lauren, the Company's Executive Chairman and Chief Creative Officer, and entities controlled by the Lauren family, and are convertible at any time into shares of Class A common stock on a one-for-one basis. Common Stock Repurchase Program Repurchases of shares of the Company's Class A common stock are subject to overall business and market conditions, as well as other potential factors such as the temporary restrictions previously in place under the Company's Global Credit Facility. Accordingly, in response to business disruptions related to the COVID-19 pandemic, effective beginning in the first quarter of Fiscal 2021, the Company temporarily suspended its common stock repurchase program as a preemptive action to preserve cash and strengthen its liquidity position. During the third quarter of Fiscal 2022, the Company resumed activities under its Class A common stock repurchase program as restrictions under its Global Credit Facility were lifted (see Note 11) and overall business and market conditions have improved since the COVID-19 pandemic first emerged. A summary of the Company's repurchases of Class A common stock under its common stock repurchase program is as follows: Fiscal Years Ended April 1, April 2, March 27, (in millions) Cost of shares repurchased $ 454.3 $ 450.5 $ — Number of shares repurchased 4.8 3.7 — On February 2, 2022, the Company's Board of Directors approved an expansion of the Company's existing common stock repurchase program that allows it to repurchase up to an additional $1.500 billion of its Class A common stock. As of April 1, 2023, the remaining availability under the Company's Class A common stock repurchase program was approximately $1.175 billion. As discussed in Note 10, as a result of the IRA's enactment into law, the Company is now subject to a 1% excise tax on share repurchases, effective for share repurchases made after December 31, 2022. This excise tax may be reduced for the value of certain share issuances. The excise tax incurred in connection with the Company's stock repurchases during the fourth quarter of Fiscal 2023 was not material. In addition, during Fiscal 2023, Fiscal 2022, and Fiscal 2021, 0.3 million, 0.4 million, and 0.5 million shares of the Company's Class A common stock, at a cost of $34.3 million, $42.1 million, and $37.7 million, respectively, were surrendered to or withheld by the Company in satisfaction of withholding taxes in connection with the vesting of awards under its long-term stock incentive plans. Repurchased and surrendered shares are accounted for as treasury stock at cost and held in treasury for future use. Dividends Except as discussed below, the Company has maintained a regular quarterly cash dividend program on its common stock since 2003. In response to business disruptions related to the COVID-19 pandemic, effective beginning in the first quarter of Fiscal 2021, the Company temporarily suspended its quarterly cash dividend program as a preemptive action to preserve cash and strengthen its liquidity position. On May 19, 2021, the Company's Board of Directors approved the reinstatement of its quarterly cash dividend program at the pre-pandemic amount of $0.6875 per share. On May 18, 2022, the Company's Board of Directors approved an increase to the Company's quarterly cash dividend on its common stock from $0.6875 to $0.75 per share. Dividends paid amounted to $198.3 million, $150.0 million, and $49.8 million for Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. The Company intends to continue to pay regular dividends on outstanding shares of its common stock. However, any decision to declare and pay dividends in the future will ultimately be made at the discretion of the Company's Board of Directors and will depend on the Company's results of operations, cash requirements, financial condition, and other factors that the Board of Directors may deem relevant, including economic and market conditions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Apr. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents OCI activity, net of tax, accumulated in equity: Foreign Currency Translation Gains (Losses) (a) Net Unrealized Gains (Losses) on Cash Flow Hedges (b) Net Unrealized Gains (Losses) on Defined Benefit Plans (c) Total Accumulated Other Comprehensive Income (Loss) (d) (millions) Balance at March 30, 2020 $ (130.4) $ 18.0 $ (5.8) $ (118.2) Other comprehensive income (loss), net of tax: OCI before reclassifications 7.2 (3.0) 3.3 7.5 Amounts reclassified from AOCI to earnings — (10.4) 0.3 (10.1) Other comprehensive income (loss), net of tax 7.2 (13.4) 3.6 (2.6) Balance at March 27, 2021 (123.2) 4.6 (2.2) (120.8) Other comprehensive income (loss), net of tax: OCI before reclassifications (66.5) 7.7 2.2 (56.6) Amounts reclassified from AOCI to earnings — (3.3) 0.4 (2.9) Other comprehensive income (loss), net of tax (66.5) 4.4 2.6 (59.5) Balance at April 2, 2022 (189.7) 9.0 0.4 (180.3) Other comprehensive income (loss), net of tax: OCI before reclassifications (14.1) 15.6 3.7 5.2 Amounts reclassified from AOCI to earnings — (20.5) (0.4) (20.9) Other comprehensive income (loss), net of tax (14.1) (4.9) 3.3 (15.7) Balance at April 1, 2023 $ (203.8) $ 4.1 $ 3.7 $ (196.0) (a) OCI before reclassifications to earnings related to foreign currency translation gains (losses) includes income tax provisions of $12.6 million and $17.7 million for Fiscal 2023 and Fiscal 2022, respectively, and includes an income tax benefit of $22.1 million for Fiscal 2021. OCI before reclassifications to earnings includes gains of $28.2 million (net of a $9.0 million income tax provision) and $38.1 million (net of a $12.3 million income tax provision) for Fiscal 2023 and Fiscal 2022, respectively, and includes a loss of $65.6 million (net of a $20.7 million income tax benefit) for Fiscal 2021, related to changes in the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations (see Note 13). (b) OCI before reclassifications to earnings related to net unrealized gains (losses) on cash flow hedges are presented net of income tax provisions of $2.5 million and $1.3 million for Fiscal 2023 and Fiscal 2022, respectively, and are presented net of an income tax benefit of $0.5 million for Fiscal 2021. The tax effects on amounts reclassified from AOCI to earnings are presented in a table below. (c) Activity is presented net of taxes, which were immaterial for all periods presented. (d) The Company generally releases income tax effects from AOCI when the corresponding pretax AOCI items are reclassified to earnings. The following table presents reclassifications from AOCI to earnings for cash flow hedges, by component: Fiscal Years Ended April 1, April 2, March 27, Location of Gains (Losses) Reclassified from AOCI to Earnings (millions) Gains (losses) on cash flow hedges (a) : FC — Cash flow hedges $ 23.8 $ 3.8 $ 12.6 Cost of goods sold FC — Cash flow hedges — — (0.3) Other income (expense), net Tax effect (3.3) (0.5) (1.9) Income tax provision Net of tax $ 20.5 $ 3.3 $ 10.4 (a) FC = Forward foreign currency exchange contracts. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Long-term Stock Incentive Plans On August 1, 2019, the Company's shareholders approved the 2019 Long-Term Stock Incentive Plan (the "2019 Incentive Plan"), which replaced the Company's Amended and Restated 2010 Long-Term Stock Incentive Plan (the "2010 Incentive Plan"). The 2019 Incentive Plan provided for 1.2 million of new shares authorized for issuance to the participants, in addition to the approximately 3.0 million shares that remained available for issuance under the 2010 Incentive Plan as of August 1, 2019. In addition, any outstanding awards under the 2010 Incentive Plan or the Company's 1997 Long-Term Stock Incentive Plan (the "1997 Incentive Plan") that expire, are forfeited, or are surrendered to the Company in satisfaction of taxes, will become available for issuance under the 2019 Incentive Plan. The 2019 Incentive Plan became effective August 1, 2019 and no further grants will be made under the 2010 Incentive Plan. Outstanding awards issued prior to August 1, 2019 will continue to remain subject to the terms of the 2010 Incentive Plan or 1997 Incentive Plan, as applicable. As of April 1, 2023, 2.8 million shares remained available for future issuance under the Company's incentive plans. Stock-based compensation awards that may be made under the 2019 Incentive Plan include, but are not limited to, (i) RSUs, (ii) restricted stock, and (iii) stock options. During the fiscal years presented, annual grants consisted entirely of RSUs. For RSUs granted to retirement-eligible employees, or employees who become retirement-eligible prior to the end of the awards' respective stated vesting periods, vesting continues post-retirement for all or a portion of the remaining unvested RSUs. Impact on Results A summary of total stock-based compensation expense and the related income tax benefits recognized is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Compensation expense (a) $ 75.5 $ 81.7 $ 72.7 Income tax benefit (12.6) (13.0) (12.4) (a) Fiscal 2022 includes $2.0 million of accelerated stock-based compensation expense recorded within restructuring and other charges, net in the consolidated statements of operations (see Note 9). All other stock-based compensation expense was recorded within SG&A expenses. The Company issues its annual grants of stock-based compensation awards in the first half of each fiscal year. Due to the timing of the annual grants and other factors, including the timing and magnitude of forfeiture and performance goal achievement adjustments, as well as changes to the size and composition of the eligible employee population, stock-based compensation expense recognized during any given fiscal period is not indicative of the level of compensation expense expected to be incurred in future periods. Service-based RSUs Service-based RSUs granted to certain of the Company's senior executives and other employees, as well as non-employee directors, generally vest over a three-year period, subject to the employee's continuing employment (except for awards granted to retirement-eligible employees, or employees who become retirement-eligible prior to the end of the awards' respective stated vesting periods, as previously discussed). The fair values of service-based RSUs are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue while outstanding and unvested. A summary of service-based RSU activity during Fiscal 2023 is as follows: Service- Number of Weighted-Average Grant Date Fair Value (thousands) Nonvested at April 2, 2022 1,566 $ 87.07 Granted 668 92.07 Vested (579) 88.40 Forfeited (70) 95.58 Nonvested at April 1, 2023 1,585 $ 88.32 Service- Total unrecognized compensation expense at April 1, 2023 (millions) $ 41.2 Weighted-average period expected to be recognized over (years) 1.2 Additional information pertaining to service-based RSU activity is as follows: Fiscal Years Ended April 1, April 2, March 27, Service-based RSUs: Weighted-average grant date fair value of awards granted $ 92.07 $ 117.33 $ 64.55 Total fair value of awards vested (millions) $ 56.7 $ 79.5 $ 33.4 Performance-based RSUs The Company grants performance-based RSUs to its senior executives and other key employees. The fair values of performance-based RSUs are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue while outstanding and unvested. Performance-based RSUs generally vest (i) upon the completion of a three-year period of time (cliff vesting), subject to the employee's continuing employment (except for awards granted to retirement-eligible employees, or employees who become retirement-eligible prior to the end of the awards' respective stated vesting periods, as previously discussed) and the Company's achievement of certain performance goals established at the beginning of the three-year performance period or (ii) ratably, over a three-year period of time (graded vesting), subject to the employee's continuing employment during the applicable vesting period (except for awards granted to retirement-eligible employees, or employees who become retirement- eligible prior to the end of the awards' respective stated vesting periods, as previously discussed) and the achievement by the Company of certain performance goals in the initial year of the three-year vesting period. For performance-based RSUs subject to cliff vesting, the number of shares that may be earned ranges between 0% (if the specified threshold performance level is not attained) and 200% (if performance meets or exceeds the maximum achievement level) of the awards originally granted. If actual performance exceeds the pre-established threshold, the number of shares earned is calculated based on the relative performance between specified levels of achievement. No performance-based awards were granted during Fiscal 2021 as the Company elected to temporarily issue service-based RSUs in lieu of performance-based RSUs as a result of business disruptions and uncertainty created by the COVID-19 pandemic. Additionally, performance metrics of certain cliff-vesting performance-based RSUs granted during prior years were changed during Fiscal 2021 and their related payout ranges lowered, with no resulting incremental compensation cost. Market-based RSUs The Company grants cliff vesting RSU awards to its senior executives and other key employees, which, in addition to being subject to continuing employment requirements (except for awards granted to retirement-eligible employees, or employees who become retirement-eligible prior to the end of the awards' respective stated vesting periods, as previously discussed), are also subject to a market condition based on a TSR performance metric. The number of shares that vest upon the completion of a three-year period of time is determined by comparing the Company's TSR relative to that of a pre-established peer group over the related three-year performance period. Depending on the Company's level of achievement against its TSR performance goals, the number of shares that ultimately vest may range from 0% to 200% of the awards originally granted. The Company estimates the fair value of its TSR awards on the date of grant using a Monte Carlo simulation, which models multiple stock price paths of the Company's Class A common stock and that of its peer group to evaluate and determine its ultimate expected relative TSR performance ranking. Compensation expense, net of estimated forfeitures, is recorded regardless of whether, and the extent to which, the market condition is ultimately satisfied. No such awards were granted during Fiscal 2021 as the Company elected to temporarily issue service-based RSUs in lieu of performance-based RSUs as a result of business disruptions and uncertainty created by the COVID-19 pandemic. The assumptions used to estimate the fair value of TSR awards granted were as follows: Fiscal Years Ended April 1, April 2, March 27, Expected volatility 49.9 % 46.8 % N/A Expected dividend yield 3.0 % 2.2 % N/A Risk-free interest rate 3.1 % 0.4 % N/A Weighted-average grant date fair value $ 124.62 $ 146.46 N/A A summary of performance-based RSU activity including TSR awards during Fiscal 2023 is as follows: Performance-based Number of Weighted-Average Grant Date Fair Value (thousands) Nonvested at April 2, 2022 542 $ 104.29 Granted 261 106.58 Change due to performance and/or market condition achievement (58) 88.03 Vested (269) 86.94 Forfeited (7) 120.14 Nonvested at April 1, 2023 469 $ 117.35 Performance-based Total unrecognized compensation expense at April 1, 2023 (millions) $ 25.8 Weighted-average period expected to be recognized over (years) 1.6 Additional information pertaining to performance-based RSU activity including TSR awards is as follows: Fiscal Years Ended April 1, April 2, March 27, Performance-based RSUs: Weighted-average grant date fair value of awards granted $ 106.58 $ 129.56 N/A Total fair value of awards vested (millions) $ 26.8 $ 27.6 $ 55.0 Stock Options Stock options were previously granted to employees and non-employee directors with exercise prices equal to the fair market value of the Company's Class A common stock on the date of grant. Generally, options become exercisable ratably (graded-vesting schedule) over a three-year vesting period, subject to the employee's continuing employment. Stock options generally expire seven years from the date of grant. There were no stock options outstanding as of April 1, 2023 or April 2, 2022, nor were any stock options granted or exercised during any of the fiscal years presented. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Apr. 01, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans The Company sponsors defined contribution benefit plans covering substantially all eligible employees in the U.S. and Puerto Rico who are not covered by a collective bargaining agreement. The plans include a savings plan feature under Section 401(k) of the Internal Revenue Code. The Company makes matching contributions to the plans equal to 50% of the first 6% of salary contributed by an eligible employee. Additionally, the Company makes a supplemental matching contribution for plan years in which the Company achieves an "above target" performance level based on certain goals established at the beginning of each fiscal year, increasing the matching contribution to between 67% and 100% depending on the performance level achieved, of the first 6% of salary contributed by eligible employees, not to exceed the maximum contribution permitted by the plan. Under the terms of the plans, a participant becomes 100% vested in the Company's matching contributions after five years of credited service. Contributions made by the Company under these plans were $8.3 million, $12.9 million, and $9.8 million in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. International Defined Benefit Plans The Company sponsors certain single-employer defined benefit plans and cash balance plans at international locations which are not considered to be material individually or in the aggregate to the Company's financial statements. Pension benefits under these plans are based on formulas that reflect the employees' years of service and compensation levels during their employment period. The aggregate funded status of the single-employer defined benefit plans reflected net assets of $8.2 million and $2.5 million as of April 1, 2023 and April 2, 2022, respectively, and were primarily recorded within other non-current assets in the consolidated balance sheets. These single-employer defined benefit plans had aggregate fair values of plan assets of $52.7 million and aggregate projected benefit obligations of $44.5 million as of April 1, 2023, compared to aggregate fair values of plan assets of $48.6 million and aggregate projected benefit obligations of $46.1 million as of April 2, 2022. The asset portfolio of the single-employer defined benefit plans primarily consists of fixed income securities, which have been measured at fair value largely using Level 2 inputs, as described in Note 12. Net pension expense for these plans was $3.9 million, $4.6 million, and $5.1 million in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. The service cost component of $4.2 million, $4.8 million, and $5.9 million in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, was recorded within SG&A expenses in the consolidated statements of operations. All other components of net pension expense during the fiscal years presented were recorded within other income (expense), net, in the consolidated statement of operations. Union Pension Plan The Company participates in a multi-employer pension plan and is required to make contributions to the Workers United union (which was previously known as UNITE HERE) (the "Union") for dues based on wages paid to union employees. A portion of these dues is allocated by the Union to a retirement fund which provides defined benefits to substantially all unionized workers. The Company does not participate in the management of the plan and has not been furnished with information with respect to the type of benefits provided, vested and non-vested benefits, or assets. Under the Employee Retirement Income Security Act of 1974, as amended, an employer, upon withdrawal from or termination of a multi-employer plan, is required to continue funding its proportionate share of the plan's unfunded vested benefits. Such liability was assumed in conjunction with the acquisition of certain assets from a non-affiliated licensee. The Company has no current intention of withdrawing from the plan. |
Segment Information
Segment Information | 12 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments based on its business activities and organization: • North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses primarily in the U.S. and Canada. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, and its digital commerce site, www.RalphLauren.com. The Company's wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores. • Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Europe and emerging markets. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised primarily of a varying mix of sales to both department stores and specialty stores, depending on the country, as well as to various third-party digital partners. • Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Asia, Australia, and New Zealand. The Company's retail business in Asia is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. In addition, the Company sells its products online through various third-party digital partner commerce sites. The Company's wholesale business in Asia is comprised primarily of sales to department stores, with related products distributed through shop-within-shops. No operating segments were aggregated to form the Company's reportable segments. In addition to these reportable segments, the Company also has other non-reportable segments, which primarily consist of Ralph Lauren and Chaps branded royalty revenues earned through its global licensing alliances. In addition, prior to its disposition at the end of the Company's first quarter of Fiscal 2022, other non-reportable segments also included sales of Club Monaco branded products made through the Company's retail and wholesale businesses in the U.S., Canada, and Europe, and its licensing alliances in Asia. Refer to Note 9 for additional discussion regarding the disposition of the Company's former Club Monaco business, as well as the transition of its Chaps business to a fully licensed business model. The Company's segment reporting structure is consistent with how it establishes its overall business strategy, allocates resources, and assesses performance of its business. The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Each segment's performance is evaluated based upon net revenues and operating income before restructuring-related charges, impairment of assets, and certain other one-time items, if any. Certain corporate overhead expenses related to global functions, most notably the Company's executive office, information technology, finance and accounting, human resources, and legal departments, largely remain at corporate. Additionally, other costs that cannot be allocated to the segments based on specific usage are also maintained at corporate, including corporate advertising and marketing expenses, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and therefore such information has not been presented. Net revenues for each of the Company's segments are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Net revenues: North America $ 3,020.5 $ 2,968.2 $ 1,992.4 Europe 1,839.2 1,780.7 1,165.9 Asia 1,426.7 1,286.8 1,027.5 Other non-reportable segments 157.2 182.8 215.0 Total net revenues $ 6,443.6 $ 6,218.5 $ 4,400.8 Operating income (loss) for each of the Company's segments is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Operating income (loss) (a) : North America $ 543.2 $ 676.7 $ 334.0 Europe 406.5 444.0 189.3 Asia 289.6 228.8 148.2 Other non-reportable segments 146.4 138.4 32.4 1,385.7 1,487.9 703.9 Unallocated corporate expenses (638.5) (667.3) (577.0) Unallocated restructuring and other charges, net (b) (43.0) (22.2) (170.5) Total operating income (loss) $ 704.2 $ 798.4 $ (43.6) (a) Segment operating income during Fiscal 2021 reflects bad debt expense reversals of $22.0 million, $4.8 million, $0.3 million, and $0.5 million related to North America, Europe, Asia, and other non-reportable segments, respectively, primarily related to adjustments to reserves previously established in connection with COVID-19 business disruptions. Segment operating income and unallocated corporate expenses during the fiscal years presented also included asset impairment charges (see Note 8), which are detailed below: Fiscal Years Ended April 1, April 2, March 27, (millions) Asset impairment charges: North America $ (9.5) $ (2.4) $ (12.2) Europe — — (24.3) Asia — (1.1) (1.4) Other non-reportable segments — (0.3) (18.2) Unallocated corporate expenses (0.2) (17.5) (39.9) Total asset impairment charges $ (9.7) $ (21.3) $ (96.0) (b) The fiscal years presented included certain unallocated restructuring and other charges, net (see Note 9), which are detailed below: Fiscal Years Ended April 1, April 2, March 27, (millions) Unallocated restructuring and other charges, net: North America-related $ (0.4) $ 0.1 $ (22.4) Europe-related (2.7) 2.1 (30.0) Asia-related (1.3) 2.8 (7.4) Other non-reportable segment-related — (0.1) (3.3) Corporate operations-related (14.8) (8.9) (96.0) Unallocated restructuring charges (19.2) (4.0) (159.1) Other charges (see Note 9) (23.8) (18.2) (11.4) Total unallocated restructuring and other charges, net $ (43.0) $ (22.2) $ (170.5) The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments: Fiscal Years Ended April 1, April 2, March 27, (millions) Depreciation and amortization expense: North America $ 74.3 $ 72.8 $ 73.4 Europe 32.0 32.3 31.6 Asia 48.3 51.9 56.3 Other non-reportable segments — 0.4 4.3 Unallocated corporate 65.9 72.3 82.0 Total depreciation and amortization expense $ 220.5 $ 229.7 $ 247.6 Fiscal Years Ended April 1, April 2, March 27, (millions) Capital expenditures: North America $ 73.5 $ 36.6 $ 23.8 Europe 34.3 39.0 16.9 Asia 68.4 49.1 41.2 Other non-reportable segments — 1.8 2.4 Unallocated corporate 41.3 40.4 23.5 Total capital expenditures $ 217.5 $ 166.9 $ 107.8 Net revenues and long-lived assets by geographic location of the reporting subsidiary are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Net revenues (a) : The Americas (b) $ 3,201.1 $ 3,164.5 $ 2,208.4 Europe (c) 1,815.9 1,766.1 1,164.3 Asia (d) 1,426.6 1,287.9 1,028.1 Total net revenues $ 6,443.6 $ 6,218.5 $ 4,400.8 April 1, April 2, (millions) Long-lived assets (a) : The Americas (b) $ 1,121.5 $ 1,068.9 Europe (c) 612.7 698.2 Asia (d) 355.3 313.7 Total long-lived assets $ 2,089.5 $ 2,080.8 (a) For certain of the Company's licensed operations, net revenues and long-lived assets, which is comprised of property and equipment and lease ROU assets, are included within the geographic location of the reporting subsidiary which holds the respective license. (b) Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. were $3.055 billion , $3.039 billion, and $2.103 billion in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. Long-lived assets located in the U.S. were $1.106 billion and $1.057 billion as of April 1, 2023 and April 2, 2022, respectively. (c) Includes the Middle East. (d) Includes Australia and New Zealand. |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
Apr. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Financial Information | Additional Financial Information Reconciliation of Cash, Cash Equivalents, and Restricted Cash A reconciliation of cash, cash equivalents, and restricted cash as of April 1, 2023 and April 2, 2022 from the consolidated balance sheets to the consolidated statements of cash flows is as follows: April 1, April 2, (millions) Cash and cash equivalents $ 1,529.3 $ 1,863.8 Restricted cash included within prepaid expenses and other current assets 1.5 1.6 Restricted cash included within other non-current assets 6.1 6.6 Total cash, cash equivalents, and restricted cash $ 1,536.9 $ 1,872.0 Restricted cash relates to cash held in escrow with certain banks as collateral, primarily to secure guarantees in connection with certain international tax matters and real estate leases. Cash Paid for Interest and Taxes Cash paid for interest and income taxes is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Cash paid for interest $ 39.9 $ 46.6 $ 33.5 Cash paid for income taxes, net of refunds 160.2 216.3 47.8 Non-cash Transactions Operating lease ROU assets recorded in connection with the recognition of new lease liabilities were $342.2 million, $287.4 million, and $66.7 million during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. Finance lease ROU assets recorded in connection with the recognition of new lease liabilities were $0.4 million and $133.2 million during Fiscal 2023 and Fiscal 2021, respectively, and no finance lease ROU assets were recorded in connection with the recognition of new lease liabilities during Fiscal 2022. Additionally, $55.7 million of operating lease ROU assets were reclassified and reflected as finance lease ROU assets as a result of certain lease amendments executed during Fiscal 2021. Non-cash investing activities also included capital expenditures incurred but not yet paid of $37.2 million, $49.6 million, and $21.3 million as of the end of Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. There were no other significant non-cash investing or financing activities for any of the fiscal years presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and present the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Additionally, as discussed in Note 9, the Company completed the sale of its Club Monaco business at the end of its first quarter of Fiscal 2022 (as defined below) on June 26, 2021. As a result, assets and liabilities related to the Club Monaco business were deconsolidated from the consolidated statement of financial position effective June 26, 2021, with Club Monaco's operating results included in the consolidated statements of income (loss), comprehensive income (loss), and cash flows through the end of the first quarter of Fiscal 2022. Financial statements issued prior to this transaction were not affected. |
Fiscal Year | Fiscal Year The Company utilizes a 52-53 week fiscal year ending on the Saturday immediately before or after March 31. As such, fiscal year 2023 ended on April 1, 2023 and was a 52-week period ("Fiscal 2023"); fiscal year 2022 ended on April 2, 2022 and was a 53-week period ("Fiscal 2022"); fiscal year 2021 ended on March 27, 2021 and was a 52-week period ("Fiscal 2021"); and fiscal year 2024 will end on March 30, 2024 and will be a 52-week period ("Fiscal 2024"). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue across all channels of the business when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services. The amount of revenue recognized considers terms of sale that create variability in the amount of consideration that the Company ultimately expects to be entitled to in exchange for the products or services, and is subject to an overall constraint that a significant revenue reversal will not occur in future periods. Sales and other related taxes collected from customers and remitted to government authorities are excluded from revenue. Revenue from the Company's retail business is recognized when the customer takes physical possession of the products, which occurs either at the point of sale for merchandise purchased at the Company's own retail stores and shop-within-shop locations, or upon receipt of shipment for merchandise ordered through direct-to-consumer digital commerce sites. Such revenues are recorded net of estimated returns based on historical trends. Payment is due at the point of sale. Gift cards purchased by customers are recorded as a liability until they are redeemed for products sold by the Company's retail business, at which point revenue is recognized. The Company also estimates and recognizes revenue for gift card balances not expected to ever be redeemed (referred to as "breakage") to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property. Such estimates are based upon historical redemption trends, with breakage income recognized in proportion to the pattern of actual customer redemptions. Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results. |
Cost of Goods Sold and Selling Expenses | Cost of Goods Sold and Selling Expenses Cost of goods sold includes the amounts incurred to acquire and produce inventory for sale to the Company's customers, including product costs, freight-in, and import costs, as well as changes in reserves for shrinkage and inventory realizability. Gains and losses associated with forward foreign currency exchange contracts that are designated and qualifying as cash flow hedges of inventory transactions are also recognized within cost of goods sold when the hedged inventory is sold. The costs of selling merchandise, including those associated with preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are included in selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. |
Shipping and Handling Costs | Shipping and Handling CostsCosts associated with shipping goods to customers are accounted for as fulfillment activities and reflected as SG&A expenses in the consolidated statements of operations. Shipping and handling costs (described above) billed to customers are included in revenue. |
Advertising and Marketing Costs | Advertising and Marketing Costs Advertising costs, including the costs to produce advertising, are expensed when the advertisement is first exhibited. Advertising costs paid to wholesale customers under cooperative advertising programs are not included in advertising costs, but rather are reflected as a reduction of revenue since generally the benefits are not sufficiently separable from the purchases of the Company's products by customers. Costs associated with the marketing and promotion of the Company's products are included within SG&A expenses. |
Foreign Currency Translations and Transactions | Foreign Currency Translation and Transactions The financial position and operating results of the Company's foreign operations are accounted for in their respective functional currencies, which are generally consistent with the local currency. For purposes of consolidation, local currency assets and liabilities are translated to U.S. Dollars at the spot rates of exchange prevailing on the balance sheet date, and local currency revenues and expenses are translated to U.S. Dollars at average rates of exchange in effect during the period. The resulting translation gains or losses are included in the consolidated statements of comprehensive income (loss) as a component of other comprehensive income (loss) ("OCI") and in the consolidated statements of equity within accumulated other comprehensive income (loss) ("AOCI"). Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature are also included within this component of equity. The Company also recognizes gains and losses on both third-party and intercompany balances that are denominated in a currency other than the respective entity's functional currency. Such foreign currency transactional gains and losses are recognized within other income (expense), net in the consolidated statements of operations, inclusive of the effects of any related hedging activities, and reflected a net loss of $4.5 million in Fiscal 2023 and net gains of $2.8 million and $8.7 million in Fiscal 2022 and Fiscal 2021, respectively. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss), which is reported in the consolidated statements of comprehensive income (loss) and consolidated statements of equity, consists of net income (loss) and certain other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss) and referred to as OCI. Components of OCI consist of foreign currency translation gains (losses); net realized and unrealized gains (losses) on cash flow hedges, such as forward foreign currency exchange contracts; net realized and unrealized gains (losses) on available-for-sale investments; and net realized and unrealized gains (losses) related to the Company's defined benefit plans. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income (loss) per common share adjusts basic net income (loss) per common share for the dilutive effects of outstanding restricted stock units ("RSUs"), stock options, and any other potentially dilutive instruments, only for the periods in which such effects are dilutive. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes expense for all stock-based compensation awards granted to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for forfeitures which are estimated based on an analysis of historical experience and expected future trends. The grant date fair values of service-based RSUs and performance-based RSUs are determined based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue while outstanding and unvested. The grant date fair value of the Company's market-based RSU awards, for which vesting is dependent upon total shareholder return ("TSR") of its Class A common stock over a three-year performance period relative to that of a pre-established peer group, is estimated using a Monte Carlo simulation model. The Company uses the Black-Scholes valuation model to estimate the grant date fair value of any stock option awards. Compensation expense for all performance-based RSUs is recognized over the requisite service period when attainment of the performance goal is deemed probable, net of estimated forfeitures. Compensation expense for market-based RSUs, net of estimated forfeitures, is recognized over the requisite service period regardless of whether, and the extent to which, the market condition is ultimately satisfied. The Company recognizes compensation expense on an accelerated basis for all awards with graded vesting terms, including certain RSUs, restricted stock, and stock options, if any. For RSU awards with cliff vesting terms, compensation expense is recognized on a straight-line basis. For certain RSU awards granted to retirement-eligible employees, or employees who will become retirement-eligible prior to the end of the awards' respective stated vesting periods, the related compensation expense is recognized on an accelerated basis over a term commensurate with the period that the employee is required to provide service in order to vest in the award. See Note 18 for further discussion of the Company's stock-based compensation plans. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of 90 days or less, including investments in time deposits and debt securities. Investments in debt securities are diversified across high-credit quality issuers in accordance with the Company's risk-management policies. |
Restricted Cash | Restricted Cash The Company is periodically required to place cash in escrow with various banks as collateral, primarily to secure guarantees of corresponding amounts made by the banks to international tax authorities on behalf of the Company, such as to secure refunds of value-added tax payments in certain international tax jurisdictions or in the case of certain international tax audits, as well as to secure guarantees related to certain real estate leases. Such cash is classified as restricted cash and reported as a component of either prepaid expenses and other current assets or other non-current assets in the consolidated balance sheets. |
Investments | Investments The Company's investment objectives include capital preservation, maintaining adequate liquidity, diversification to minimize liquidity and credit risk, and achievement of maximum returns within the guidelines set forth in the Company's investment policy. Short-term investments consist of investments which the Company expects to convert into cash within one year, including any time deposits and debt securities with original maturities greater than 90 days. See Note 13 for further information relating to the composition of the Company's short-term investments. The Company classifies such investments as available-for-sale. Accordingly, they are recorded at fair value with any related unrealized gains or losses generally recognized as a component of AOCI in the consolidated balance sheets, and related realized gains or losses (or unrealized credit-related impairment losses, if any) recorded within other income (expense), net, in the consolidated statements of operations. Cash inflows and outflows related to the sale and purchase of investments are classified as investing activities in the consolidated statements of cash flows. Equity-method and Other Investments Ownership interests that provide the Company with significant influence, but less than a controlling interest, over an investee are generally accounted for using the equity method of accounting. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the investee's common stock. Ownership interests that do not provide significant influence and for which the underlying equity security's fair value is not readily determinable are generally recorded at cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or similar investments of the same investee, with such adjustments recognized within other income (expense), net, in the consolidated statements of operations. Impairment Assessment The Company evaluates the need to recognize impairment charges for its investments that are in unrealized loss positions, if any, and its other equity investments on a quarterly basis (see Note 12). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the financial condition, creditworthiness, and near-term prospects of the issuer or investee; (ii) future economic conditions and market forecasts; (iii) the length of time to maturity, if applicable, and an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (iv) whether events or changes in circumstances indicate that the investment's carrying amount might not be recoverable. |
Accounts Receivable | Accounts Receivable In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the " Revenue Recognition " section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. |
Inventories | Inventories The Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and third-party digital partners. Substantially all of the Company's inventories consist of finished goods, which are stated at the lower of cost or estimated realizable value, with cost determined on a weighted-average cost basis. |
Cloud Computing | Implementation Costs Incurred in Cloud Computing ArrangementsFor cloud computing arrangements that are a service contract, the Company capitalizes certain implementation costs incurred (depending on their nature) during the application development stage of the related project, and expenses costs during the preliminary project and post-implementation stages as they are incurred. Capitalized implementation costs are expensed on a straight-line basis over the reasonably certain term of the hosting arrangement, beginning when the module is ready for its intended use. The Company's cloud computing arrangements relate to various areas, including certain retail store and digital commerce operations, and corporate and administrative functions. Capitalized amounts related to such arrangements are recorded within prepaid expenses and other current assets and within other non-current assets in the consolidated balance sheets (see Note 7). |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net is stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis, based upon the estimated useful lives of depreciable assets, which range from 3 to 7 years for furniture and fixtures, machinery and equipment, and capitalized software; and from 10 to 40 years for buildings and improvements. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the respective assets or the term of the related lease. Property and equipment, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable (see Note 12). In evaluating long-lived assets for recoverability, including finite-lived intangibles as described below, the Company uses its best estimate of future cash flows expected to result from its use of the asset and its eventual disposition, where applicable. If such estimated future undiscounted net cash flows attributable to the asset are less than its carrying value, an impairment loss is recognized to the extent that such asset's carrying value exceeds its fair value, as estimated considering external market participant assumptions and discounted cash flows. Assets to be disposed of and for which there is a committed plan of disposal (commonly referred to as assets held-for-sale) are reported at the lower of carrying value or fair value, less costs to sell. |
Leases | Leases The Company's lease arrangements primarily relate to real estate, including its retail stores, concession-based shop-within-shops, corporate offices, and warehouse facilities and, to a lesser extent, certain equipment and other assets. The Company's leases generally have initial terms ranging from 3 to 10 years and may include renewal or early-termination options, rent escalation clauses, and/or lease incentives in the form of construction allowances and rent abatements. The Company is typically required to make fixed minimum rent payments, variable rent payments based on performance (e.g., percentage-of-sales-based payments), or a combination thereof, relating to its right to use an underlying leased asset. The Company is also often required to pay for certain other costs that do not relate specifically to its right to use an underlying leased asset, but that are associated with the asset, including real estate taxes, insurance, common area maintenance fees, and/or certain other costs (referred to collectively herein as "non-lease components"), which may be fixed or variable in amount, depending on the terms of the respective lease agreement. The Company's leases do not contain significantly restrictive covenants or residual value guarantees. The Company determines whether an arrangement contains a lease at the arrangement's inception. If a lease is determined to exist, its related term is assessed at the lease commencement date, once the underlying asset is made available by the lessor for the Company's use. The Company's assessment of the lease term reflects the non-cancellable period of the lease, inclusive of any rent-free periods, plus any periods covered by early-termination options for which the Company is not considered reasonably certain of exercising, as well as periods covered by renewal options for which it is considered reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation thereof in the consolidated statements of operations over the lease term. For leases with a lease term exceeding 12 months, a liability is recorded on the consolidated balance sheet at the lease commencement date reflecting the present value of its related fixed payment obligations over such term. A corresponding right-of-use ("ROU") asset equal to the initial lease liability is also recorded, increased by any prepaid rent and/or initial direct costs incurred in connection with execution of the lease, and reduced by any incentives provided by the lessor. The Company also includes fixed payment obligations related to non-lease components in the measurement of its ROU assets and lease liabilities, given its election to account for lease and non-lease components together as a single lease component. Variable lease payments are not included in the measurement of ROU assets and lease liabilities. ROU assets associated with finance leases are presented separately from those associated with operating leases, and are included within property and equipment, net on the consolidated balance sheet. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, given that rates implicit in its leasing arrangements are not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis an amount equal to the lease payments and incorporates the term and economic environment of the lease. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the remaining lease liability, which is ultimately reduced by the related fixed payments as they are made. For leases with a lease term of 12 months or less (referred to as a "short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term and are not recognized on the consolidated balance sheet. For all leases, variable lease cost, if any, is recognized as incurred. ROU assets, along with any related long-lived assets, are periodically evaluated for impairment whenever events or circumstances indicate that their carrying values may not be fully recoverable (see Note 12). To the extent that such assets are ultimately determined to be impaired, they are written down accordingly on a relative carrying amount basis, with the ROU asset written down to an amount no lower than its estimated fair value. Subsequent to the recognition of any such impairment, total remaining lease cost is recognized on a front-loaded basis over the remaining lease term. See Note 14 for further discussion of the Company's leases. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets At acquisition, the Company estimates and records the fair value of purchased intangible assets, which typically consist of reacquired license agreements, customer relationships, non-compete agreements, and/or order backlog. The fair values of these intangible assets are estimated based on management's assessment, considering independent third-party appraisals when necessary. The excess of the purchase consideration over the fair value of net assets acquired, both tangible and intangible, is recorded as goodwill. Goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized. Rather, goodwill and such indefinite-lived intangible assets are assessed for impairment at least annually. The Company generally performs its annual goodwill and indefinite-lived intangible assets impairment analyses using a qualitative approach to determine whether it is more likely than not that the fair values of such assets are less than their respective carrying values. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of the asset exceeds its carrying value, a quantitative test is performed. Under the quantitative test, if the carrying value of the asset exceeds its fair value, an impairment loss is recognized in the amount of the excess. The Company also periodically performs a quantitative test to assess its goodwill for impairment in lieu of using the qualitative approach in order to reassess the fair values of its reporting units. Finite-lived intangible assets are amortized over their respective estimated useful lives and, along with other long-lived assets as noted above, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. See discussion of the Company's accounting policy for long-lived asset impairment as previously described under the caption " Property and Equipment, Net. " |
Income Taxes | Income Taxes Income taxes are provided using the asset and liability method. Under this method, income taxes (i.e., deferred tax assets and liabilities, current taxes payable/refunds receivable, and tax expense) are recorded based on amounts refundable or payable in the current year and include the results of any difference between U.S. GAAP and tax reporting. Deferred income taxes reflect the tax effect of certain net operating losses, capital losses, general business credit carryforwards, and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statement and income tax purposes, as determined under enacted tax laws and rates. The Company accounts for the financial effect of changes in tax laws or rates in the period of enactment. In addition, valuation allowances are established when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. Tax valuation allowances are analyzed periodically and adjusted as events occur or circumstances change that warrant adjustments. In determining the income tax benefit (provision) for financial reporting purposes, the Company establishes a reserve for uncertain tax positions. If the Company considers that a tax position is more likely than not of being sustained upon audit, based solely on the technical merits of the position, it recognizes the tax benefit. The Company measures the tax benefit by determining the largest amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. These assessments can be complex and the Company often obtains assistance from external advisors. To the extent that the Company's estimates change or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax benefit (provision) in the period in which such determinations are made. If the initial assessment fails to result in the recognition of a tax benefit, the Company regularly monitors its position and subsequently recognizes the tax benefit if (i) there are changes in tax law or analogous case law that sufficiently raise the likelihood of prevailing on the technical merits of the position to more likely than not; (ii) the statute of limitations expires; or (iii) there is a completion of an audit resulting in a settlement of that tax year with the appropriate agency. Uncertain tax positions are classified as current only when the Company expects to pay cash within the next twelve months. Interest and penalties are recorded within the income tax benefit (provision) in the consolidated statements of operations and are classified on the consolidated balance sheets together with the related liability for unrecognized tax benefits. The Company accounts for the minimum tax on global intangible low-taxed income ("GILTI") in the period in which it is incurred. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivative financial instruments on its consolidated balance sheets at fair value. Changes in the fair value of derivative instruments that are designated and qualify for hedge accounting are either (i) offset through earnings against the changes in fair value of the related hedged assets, liabilities, or firm commitments or (ii) recognized in equity as a component of AOCI until the hedged item is recognized in earnings, depending on whether the instrument is hedging against changes in fair value or cash flows and net investments, respectively. Each derivative instrument that qualifies for hedge accounting is expected to be highly effective in offsetting the risk associated with the related exposure. For each instrument that is designated as a hedge, the Company documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed over the instrument's term. To assess hedge effectiveness at the inception of a hedging relationship, the Company generally uses regression analysis, a statistical method, to evaluate how changes in the fair value of the derivative instrument are expected to offset changes in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to remain highly effective in achieving offsetting changes in fair value or cash flows is assessed by the Company on at least a quarterly basis. Given its use of derivative instruments, the Company is exposed to the risk that counterparties to such contracts will fail to meet their contractual obligations. To mitigate such counterparty credit risk, the Company's policy is to only enter into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other factors, adhering to established limits for credit exposure. The Company's established policies and procedures for mitigating credit risk include ongoing review and assessment of its counterparties' creditworthiness. The Company also enters into master netting arrangements with counterparties, when possible, to further mitigate credit risk. In the event of default or termination, these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including the failure to make timely payments. The fair values of the Company's derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities for its forward foreign exchange contracts and within cash flows from investing activities for its cross-currency swap contracts, both as discussed below. Cash Flow Hedges The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency. To the extent designated as cash flow hedges, related gains or losses on such instruments are initially deferred in equity as a component of AOCI and are subsequently recognized within cost of goods sold in the consolidated statements of operations when the related inventory is sold. If a derivative instrument is dedesignated or if hedge accounting is discontinued because the instrument is not expected to be highly effective in hedging the designated exposure, any further gains (losses) are recognized in earnings each period within other income (expense), net. Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the hedging strategy, unless the related forecasted transaction is probable of not occurring, in which case the accumulated amount is immediately recognized within other income (expense), net. Hedges of Net Investments in Foreign Operations The Company periodically uses cross-currency swap contracts to reduce risk associated with exchange rate fluctuations on certain of its net investments in foreign subsidiaries. Changes in the fair values of such derivative instruments that are designated as hedges of net investments in foreign operations are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments. In assessing the effectiveness of such hedges, the Company uses a method based on changes in spot rates to measure the impact of foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related hedging instrument. Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment and are amortized into earnings as interest expense using a systematic and rational method over the instrument's term. Changes in fair value associated with the effective portion (i.e., those due to changes in the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment. Undesignated Hedges The Company uses undesignated hedges primarily to hedge foreign currency exchange rate risk related to third-party and intercompany balances and exposures. Changes in the fair values of such instruments are recognized in earnings each period within other income (expense), net. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Summary of Significant Accounting Policies (Tables) [Abstract] | |
Contractually-Guaranteed Minimum Royalties | As of April 1, 2023, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows: Contractually-Guaranteed Minimum Royalties (a) (millions) Fiscal 2024 $ 98.5 Fiscal 2025 62.7 Fiscal 2026 44.1 Fiscal 2027 40.8 Fiscal 2028 11.3 Fiscal 2029 and thereafter — Total $ 257.4 (a) Amounts presented do not contemplate potential contract renewals or royalties earned in excess of the contractually-guaranteed minimums. |
Disaggregation of Revenue | Disaggregated Net Revenues The following tables disaggregate the Company's net revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors for the fiscal years presented: Fiscal Year Ended April 1, 2023 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,872.6 $ 858.4 $ 1,322.1 $ — $ 4,053.1 Wholesale 1,147.9 980.8 104.6 — 2,233.3 Licensing — — — 157.2 157.2 Total $ 3,020.5 $ 1,839.2 $ 1,426.7 $ 157.2 $ 6,443.6 Fiscal Year Ended April 2, 2022 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,878.6 $ 828.3 $ 1,207.4 $ 27.2 $ 3,941.5 Wholesale 1,089.6 952.4 79.4 5.9 2,127.3 Licensing — — — 149.7 149.7 Total $ 2,968.2 $ 1,780.7 $ 1,286.8 $ 182.8 $ 6,218.5 Fiscal Year Ended March 27, 2021 North America Europe Asia Other Total (millions) Sales Channel (a) : Retail $ 1,214.1 $ 517.1 $ 968.4 $ 80.2 $ 2,779.8 Wholesale 778.3 648.8 59.1 12.4 1,498.6 Licensing — — — 122.4 122.4 Total $ 1,992.4 $ 1,165.9 $ 1,027.5 $ 215.0 $ 4,400.8 (a) Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time. |
Shipping and Handling Charges | A summary of shipping and handling costs recognized during the fiscal years presented is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Shipping costs $ 79.9 $ 73.0 $ 54.8 Handling costs 169.7 151.8 138.3 |
Summary of Basic and Diluted shares | The weighted-average number of common shares outstanding used to calculate basic net income (loss) per common share is reconciled to shares used to calculate diluted net income (loss) per common share as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Basic shares 67.7 73.0 73.5 Dilutive effect of RSUs and stock options 1.3 1.3 — (a) Diluted shares 69.0 74.3 73.5 (a) Incremental shares of 1.2 million attributable to outstanding RSUs were excluded from the computation of diluted shares for Fiscal 2021 as such shares would not be dilutive given the net loss incurred during that fiscal year. |
Sales Returns and Allowances [Member] | |
Summary of Significant Accounting Policies (Tables) [Abstract] | |
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | A rollforward of the activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Beginning reserve balance $ 180.7 $ 173.7 $ 204.7 Amount charged against revenue to increase reserve 407.9 407.7 280.1 Amount credited against customer accounts to decrease reserve (436.5) (392.9) (317.4) Foreign currency translation (4.0) (7.8) 6.3 Ending reserve balance $ 148.1 $ 180.7 $ 173.7 |
Allowance for Doubtful Accounts [Member] | |
Summary of Significant Accounting Policies (Tables) [Abstract] | |
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | A rollforward of the activity in the Company's allowance for doubtful accounts is presented as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Beginning reserve balance $ 34.0 $ 40.1 $ 71.5 Amount recorded to expense to increase (decrease) reserve (a) 2.3 (2.2) (27.6) Amount written-off against customer accounts to decrease reserve (8.5) (2.8) (6.1) Foreign currency translation (0.6) (1.1) 2.3 Ending reserve balance $ 27.2 $ 34.0 $ 40.1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consists of the following: April 1, April 2, (millions) Land and improvements $ 15.3 $ 15.3 Buildings and improvements 471.9 480.4 Furniture and fixtures 608.8 589.6 Machinery and equipment 375.9 375.7 Capitalized software 541.1 532.1 Leasehold improvements 1,216.1 1,170.1 Construction in progress 60.9 55.4 3,290.0 3,218.6 Less: accumulated depreciation (2,334.5) (2,249.1) Property and equipment, net $ 955.5 $ 969.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table details the changes in goodwill for each of the Company's segments during Fiscal 2023 and Fiscal 2022: North America Europe Asia Other Non-reportable Segments Total (millions) Balance at March 27, 2021 $ 421.8 $ 304.0 $ 76.8 $ 132.0 $ 934.6 Foreign currency translation — (18.0) (7.9) — (25.9) Balance at April 2, 2022 421.8 286.0 68.9 132.0 908.7 Foreign currency translation — (4.2) (5.6) — (9.8) Balance at April 1, 2023 $ 421.8 $ 281.8 $ 63.3 $ 132.0 $ 898.9 |
Other Intangible Assets | Other intangible assets consist of the following: April 1, 2023 April 2, 2022 Gross Carrying Amount Accum. Amort. Net Gross Carrying Amount Accum. Amort. Net (millions) Intangible assets subject to amortization: Re-acquired licensed trademarks $ 226.3 $ (174.7) $ 51.6 $ 228.6 $ (168.8) $ 59.8 Customer relationships 239.8 (211.9) 27.9 245.8 (212.3) 33.5 Other 10.1 (8.0) 2.1 10.1 (7.8) 2.3 Total intangible assets subject to amortization 476.2 (394.6) 81.6 484.5 (388.9) 95.6 Intangible assets not subject to amortization: Trademarks and brands 7.3 N/A 7.3 7.3 N/A 7.3 Total intangible assets $ 483.5 $ (394.6) $ 88.9 $ 491.8 $ (388.9) $ 102.9 |
Amortization | Based on the balance of the Company's finite-lived intangible assets subject to amortization as of April 1, 2023, the expected amortization expense for each of the next five fiscal years and thereafter is as follows: Amortization (millions) Fiscal 2024 $ 13.2 Fiscal 2025 12.9 Fiscal 2026 10.7 Fiscal 2027 10.0 Fiscal 2028 10.0 Fiscal 2029 and thereafter 24.8 Total $ 81.6 |
Other Assets and Liabilities (T
Other Assets and Liabilities (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following: April 1, April 2, (millions) Other taxes receivable $ 46.7 $ 26.2 Non-trade receivables 30.7 41.4 Prepaid software maintenance 18.5 16.4 Inventory return asset 10.5 8.3 Prepaid advertising and marketing 10.4 7.9 Prepaid logistic services 6.5 6.6 Cloud computing arrangement implementation costs 6.2 4.0 Prepaid occupancy expense 5.8 6.0 Prepaid insurance 4.1 3.0 Tenant allowances receivable 3.9 6.1 Derivative financial instruments 1.7 8.7 Other prepaid expenses and current assets 43.7 37.9 Total prepaid expenses and other current assets $ 188.7 $ 172.5 |
Schedule of other non-current assets | Other non-current assets consist of the following: April 1, April 2, (millions) Derivative financial instruments $ 42.8 $ 23.7 Security deposits 33.0 30.6 Equity method and other investments 10.6 12.0 Cloud computing arrangement implementation costs 10.1 9.7 Deferred rent assets 6.8 5.2 Restricted cash 6.1 6.6 Other non-current assets 23.6 23.4 Total other non-current assets $ 133.0 $ 111.2 |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following: April 1, April 2, (millions) Accrued inventory $ 212.3 $ 250.2 Accrued payroll and benefits 198.1 278.0 Accrued operating expenses 194.4 223.4 Dividends payable 49.2 48.1 Accrued capital expenditures 37.2 49.6 Other taxes payable 32.8 60.9 Restructuring reserve 20.8 30.8 Finance lease obligations 20.3 19.8 Deferred income 14.0 16.5 Other accrued expenses and current liabilities 16.4 14.1 Total accrued expenses and other current liabilities $ 795.5 $ 991.4 |
Schedule of other non-current liabilities | Other non-current liabilities consist of the following: April 1, April 2, (millions) Deferred lease incentives and obligations $ 43.2 $ 52.7 Accrued benefits and deferred compensation 12.4 12.0 Deferred tax liabilities 7.2 12.5 Derivative financial instruments — 18.1 Other non-current liabilities 38.1 36.6 Total other non-current liabilities $ 100.9 $ 131.9 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) - Fiscal 2021 Strategic Realignment Plan | 12 Months Ended |
Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | A summary of the charges recorded in connection with the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented, as well as the cumulative charges recorded since its inception (inclusive of immaterial other restructuring-related charges previously recorded during the first quarter of Fiscal 2021), is as follows: Fiscal Year Ended Cumulative Charges April 1, April 2, March 27, (millions) Cash-related restructuring charges: Severance and benefit costs (reversals) $ 8.6 $ (5.7) $ 144.2 $ 147.1 Other cash charges 3.9 7.7 14.9 26.5 Total cash-related restructuring charges 12.5 2.0 159.1 173.6 Non-cash charges: Impairment of assets (see Note 8) 0.2 21.3 69.4 90.9 Inventory-related charges (a) 0.3 — 8.3 8.6 Accelerated stock-based compensation expense (b) — 2.0 — 2.0 Other non-cash charges 6.7 — — 6.7 Total non-cash charges 7.2 23.3 77.7 108.2 Total charges $ 19.7 $ 25.3 $ 236.8 $ 281.8 (a) Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations. (b) Accelerated stock-based compensation expense, which was recorded within restructuring and other charges, net in the consolidated statements of operations, related to vesting provisions associated with certain separation agreements. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | A summary of the activity in the restructuring reserve related to the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented is as follows: Severance and Benefit Costs Other Cash Charges Total (millions) Balance at March 28, 2020 $ — $ — $ — Additions charged to expense 144.2 14.9 159.1 Cash payments applied against reserve (48.0) (11.7) (59.7) Balance at March 27, 2021 96.2 3.2 99.4 Additions (reductions) charged to expense (5.7) 7.7 2.0 Cash payments applied against reserve (60.5) (10.8) (71.3) Non-cash adjustments 0.6 — 0.6 Balance at April 2, 2022 30.6 0.1 30.7 Additions charged to expense 8.6 3.9 12.5 Cash payments applied against reserve (18.2) (4.0) (22.2) Non-cash adjustments (0.3) — (0.3) Balance at April 1, 2023 $ 20.7 $ — $ 20.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Domestic and foreign pretax income (loss) | Domestic and foreign pretax income (loss) are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Domestic $ 74.3 $ 180.7 $ (285.0) Foreign 617.6 573.9 210.2 Total income (loss) before income taxes $ 691.9 $ 754.6 $ (74.8) |
Benefits (provisions) for current and deferred income taxes | Provisions for current and deferred income taxes are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Current: Federal $ (35.7) $ (24.2) $ 38.5 State and local 1.4 (21.6) 1.5 Foreign (131.0) (154.8) (50.7) (165.3) (200.6) (10.7) Deferred: Federal 14.3 53.8 (19.2) State and local (8.0) 8.2 3.5 Foreign (10.2) (15.9) (19.9) (3.9) 46.1 (35.6) Total income tax provision $ (169.2) $ (154.5) $ (46.3) |
Tax rate reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Benefit (provision) for income taxes at the U.S. federal statutory rate $ (145.3) $ (158.5) $ 15.7 Change due to: State and local income taxes, net of federal benefit (6.3) (14.5) 6.1 Foreign income taxed at different rates, net of U.S. foreign tax credits (2.7) (2.6) (4.8) Deferred tax adjustments — 8.0 — Non-creditable foreign taxes (8.8) — — Foreign-derived intangible income benefit — 20.3 — Changes in valuation allowance on deferred tax assets (0.2) 3.6 (34.9) Unrecognized tax benefits and settlements of tax examinations (1.2) (11.5) (4.6) Swiss Tax Act expense — — (13.8) Compensation-related adjustments (7.7) (9.4) (12.9) Charitable contributions 2.8 3.7 7.4 Transfer pricing adjustments — — (4.1) Other 0.2 6.4 (0.4) Total income tax provision $ (169.2) $ (154.5) $ (46.3) Effective tax rate (a) 24.5 % 20.5 % (61.9 %) (a) Effective tax rate is calculated by dividing the income tax provision by income (loss) before income taxes. |
Deferred taxes | Significant components of the Company's deferred tax assets and liabilities are as follows: April 1, April 2, (millions) Lease liabilities $ 334.9 $ 349.5 Deferred income 69.8 96.0 Deferred compensation 47.4 34.5 Property and equipment 39.2 15.7 Unrecognized tax benefits 34.2 31.7 Receivable allowances and reserves 31.4 31.2 Inventory basis difference 30.4 27.5 Capitalized software 14.5 — Net operating loss carryforwards 11.7 58.9 GILTI-related carryforwards 5.8 10.6 Accrued expenses 5.5 7.3 Transfer pricing — 4.1 Lease ROU assets (259.3) (273.1) Goodwill and other intangible assets (60.2) (53.9) Cumulative translation adjustment and hedges (23.1) (11.3) Undistributed foreign income (19.5) (4.0) Other (3.2) 11.7 Valuation allowance (11.6) (45.1) Net deferred tax assets (a) $ 247.9 $ 291.3 |
Reconciliation of unrecognized tax benefits, excluding interest and penalties | Reconciliations of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for Fiscal 2023, Fiscal 2022, and Fiscal 2021 are presented below: Fiscal Years Ended April 1, April 2, March 27, (millions) Unrecognized tax benefits beginning balance $ 75.4 $ 71.4 $ 72.7 Additions related to current period tax positions 13.3 21.6 3.2 Additions related to prior period tax positions 0.6 8.1 8.8 Reductions related to prior period tax positions (4.3) (7.6) (4.2) Reductions related to expiration of statutes of limitations (2.9) (1.1) (2.1) Reductions related to settlements with taxing authorities (4.5) (14.8) (9.6) Additions (reductions) related to foreign currency translation (0.5) (2.2) 2.6 Unrecognized tax benefits ending balance $ 77.1 $ 75.4 $ 71.4 |
Reconciliation of accrued interest and penalties related to unrecognized tax benefits | Reconciliations of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for Fiscal 2023, Fiscal 2022, and Fiscal 2021 are presented below: Fiscal Years Ended April 1, April 2, March 27, (millions) Accrued interest and penalties beginning balance $ 16.5 $ 20.0 $ 16.2 Net additions charged to expense 2.6 2.6 5.5 Reductions related to prior period tax positions (1.9) (0.9) (1.7) Reductions related to settlements with taxing authorities (0.4) (5.0) (0.3) Additions (reductions) related to foreign currency translation (0.1) (0.2) 0.3 Accrued interest and penalties ending balance $ 16.7 $ 16.5 $ 20.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consists of the following: April 1, April 2, (millions) $400 million 3.750% Senior Notes (a) $ 398.4 $ 397.7 $500 million 1.700% Senior Notes (b) — 499.8 $750 million 2.950% Senior Notes (c) 740.1 738.8 Total debt 1,138.5 1,636.3 Less: current portion of long-term debt — 499.8 Total long-term debt $ 1,138.5 $ 1,136.5 (a) The carrying value of the 3.750% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $1.6 million and $2.3 million as of April 1, 2023 and April 2, 2022, respectively. (b) The carrying value of the 1.700% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $0.2 million as of April 2, 2022. (c) The carrying value of the 2.950% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $9.9 million and $11.2 million as of April 1, 2023 and April 2, 2022, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial assets and liabilities measured and recorded at fair value on recurring basis | The following table summarizes the Company's financial assets and liabilities that are measured and recorded at fair value on a recurring basis, excluding accrued interest components: April 1, April 2, (millions) Derivative assets (a) $ 44.5 $ 32.4 Derivative liabilities (a) 5.7 18.3 (a) Based on Level 2 measurements. |
Carrying value and the estimated fair value of the Company's debt obligations | The following table summarizes the carrying values and the estimated fair values of the Company's debt instruments: April 1, 2023 April 2, 2022 Carrying Value (a) Fair Value (b) Carrying Value (a) Fair Value (b) (millions) $400 million 3.750% Senior Notes $ 398.4 $ 393.6 $ 397.7 $ 407.9 $500 million 1.700% Senior Notes — N/A 499.8 500.5 $750 million 2.950% Senior Notes 740.1 677.1 738.8 721.0 (a) See Note 11 for discussion of the carrying values of the Company's senior notes. (b) Based on Level 2 measurements. |
Fair value measurements, nonrecurring | The following table summarizes impairment charges recorded by the Company during the fiscal years presented to reduce the carrying values of certain long-lived assets to their estimated fair values as of the assessment date: Fiscal Years Ended April 1, 2023 April 2, 2022 March 27, 2021 Long-Lived Asset Category Total Impairments Fair Value Total Impairments Fair Value Total Impairments Fair Value (millions) Property and equipment, net $ 0.2 $ — $ 1.0 $ — $ 44.1 $ 23.5 Operating lease right-of-use assets 9.5 14.8 20.3 27.8 51.9 84.3 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Company's outstanding derivative instruments on a gross basis as recorded on its consolidated balance sheets | The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of April 1, 2023 and April 2, 2022: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument (a) April 1, 2023 April 2, 2022 April 1, April 2, April 1, April 2, Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair Balance Sheet Line (b) Fair (millions) Designated Hedges: FC — Cash flow hedges $ 345.1 $ 236.5 PP $ 1.4 PP $ 6.6 AE $ 5.0 $ — Net investment hedges (c) 700.0 700.0 ONCA 42.8 ONCA 23.7 — ONCL 18.1 Total Designated Hedges 1,045.1 936.5 44.2 30.3 5.0 18.1 Undesignated Hedges: FC — Undesignated hedges (d) 164.8 225.0 PP 0.3 PP 2.1 AE 0.7 AE 0.2 Total Hedges $ 1,209.9 $ 1,161.5 $ 44.5 $ 32.4 $ 5.7 $ 18.3 (a) FC = Forward foreign currency exchange contracts. (b) PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCA = Other non-current assets; ONCL = Other non-current liabilities. (c) Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations. (d) Relates to third-party and intercompany foreign currency-denominated exposures and balances. |
Offsetting Assets | The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across nine separate counterparties, the amounts presented in the consolidated balance sheets as of April 1, 2023 and April 2, 2022 would be adjusted from the current gross presentation as detailed in the following table: April 1, 2023 April 2, 2022 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements Net Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements Net (millions) Derivative assets $ 44.5 $ (4.5) $ 40.0 $ 32.4 $ (0.2) $ 32.2 Derivative liabilities 5.7 (4.5) 1.2 18.3 (0.2) 18.1 |
Gains (losses) recognized in AOCI or earnings from derivatives designated as hedging instruments | The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the fiscal years presented: Gains (Losses) Fiscal Years Ended April 1, April 2, March 27, (millions) Designated Hedges: FC — Cash flow hedges $ 18.1 $ 9.0 $ (3.5) Net investment hedges — effective portion 10.6 46.8 (35.5) Net investment hedges — portion excluded from assessment of hedge effectiveness 26.6 3.6 (50.8) Total Designated Hedges $ 55.3 $ 59.4 $ (89.8) Location and Amount of Gains (Losses) Fiscal Years Ended April 1, 2023 April 2, 2022 March 27, 2021 Cost of Other income (expense), net Cost of Other income (expense), net Cost of Other income (expense), net (millions) Total amounts presented in the consolidated statements of operations in which the effects of related cash flow hedges are recorded $ (2,277.8) $ (4.1) $ (2,071.0) $ 4.7 $ (1,539.4) $ 7.6 Effects of cash flow hedging: FC — Cash flow hedges 23.8 — 3.8 — 12.6 (0.3) Gains (Losses) from Net Investment Hedges Recognized in Earnings Location of Fiscal Years Ended April 1, April 2, March 27, (millions) Net Investment Hedges: Net investment hedges — portion excluded from assessment of hedge effectiveness (a) $ 13.0 $ 11.9 $ 11.3 Interest expense Total Net Investment Hedges $ 13.0 $ 11.9 $ 11.3 (a) Amounts recognized in OCI relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment. |
Gains (losses) recognized in earnings from derivatives not designated as hedging instruments | The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the fiscal years presented: Gains (Losses) Location of Fiscal Years Ended April 1, April 2, March 27, (millions) Undesignated Hedges: FC — Undesignated hedges $ 13.0 $ 6.9 $ (0.8) Other income (expense), net Total Undesignated Hedges $ 13.0 $ 6.9 $ (0.8) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Lessee Disclosure [Abstract] | |
ROU Assets and Lease Liabilities | The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheet: April 1, April 2, Location Recorded on Balance Sheet (millions) Assets: Operating leases $ 1,134.0 $ 1,111.3 Operating lease right-of-use assets Finance leases 271.7 299.4 Property and equipment, net Total lease assets $ 1,405.7 $ 1,410.7 Liabilities: Operating leases : Current portion $ 266.7 $ 262.0 Current operating lease liabilities Non-current portion 1,141.1 1,132.2 Long-term operating lease liabilities Total operating lease liabilities 1,407.8 1,394.2 Finance leases : Current portion 20.3 19.8 Accrued expenses and other current liabilities Non-current portion 315.3 341.6 Long-term finance lease liabilities Total finance lease liabilities 335.6 361.4 Total lease liabilities $ 1,743.4 $ 1,755.6 |
Lease Cost | The following table summarizes the composition of total lease cost during the fiscal years presented: Fiscal Years Ended April 1, April 2, March 27, Location Recorded in Earnings (millions) Operating lease cost $ 294.3 $ 300.2 $ 323.5 (a) Finance lease costs : Depreciation of leased assets 24.5 26.1 20.5 (b) Accretion of lease liabilities 11.2 12.2 9.7 Interest expense Variable lease cost 318.3 291.2 224.7 (c) Short-term lease cost 2.8 3.6 4.9 SG&A expenses Sublease income (8.2) (6.7) (1.8) Restructuring and other charges, net Total lease cost $ 642.9 $ 626.6 $ 581.5 (a) During Fiscal 2023, $3.1 million was included within cost of goods sold, $269.4 million was included within SG&A expenses, and $21.8 million was included within restructuring and other charges, net. During Fiscal 2022, $3.3 million was included within cost of goods sold, $276.2 million was included within SG&A expenses, and $20.7 million was included within restructuring and other charges, net. During Fiscal 2021, $3.4 million was included within cost of goods sold, $307.0 million was included within SG&A expenses, and $13.1 million was included within restructuring and other charges, net. (b) During Fiscal 2023, $22.8 million was included within SG&A expenses and $1.7 million was included within restructuring and other charges, net. During Fiscal 2022 and Fiscal 2021, depreciation of leased assets were included within SG&A expenses. (c) During Fiscal 2023, $3.5 million was included within cost of goods sold, $307.8 million was included within SG&A expenses, and $7.0 million was included within restructuring and other charges, net. During Fiscal 2022, $4.6 million was included within cost of goods sold and $288.6 million was included within SG&A expenses, and a benefit of $2.0 million was included within restructuring and other charges, net. During Fiscal 2021, $4.5 million was included within cost of goods sold and $220.2 million was included within SG&A expenses. |
Cash paid for amounts included in the measurement of lease liabilities | The following table summarizes certain cash flow information related to the Company's leases: Fiscal Year Ended April 1, April 2, March 27, (millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 342.7 $ 384.6 $ 360.6 Operating cash flows from finance leases 11.2 12.3 6.7 Financing cash flows from finance leases 21.9 23.1 13.9 |
Lease Liability Maturity | The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of April 1, 2023: April 1, 2023 Operating Finance (millions) Fiscal 2024 $ 299.1 $ 33.0 Fiscal 2025 296.5 34.1 Fiscal 2026 219.4 34.4 Fiscal 2027 186.0 33.9 Fiscal 2028 150.2 31.7 Fiscal 2029 and thereafter 386.9 242.6 Total lease payments 1,538.1 409.7 Less: interest (130.3) (74.1) Total lease liabilities $ 1,407.8 $ 335.6 |
Supplemental lease information | The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet: April 1, 2023 April 2, 2022 Operating Finance Operating Finance Weighted-average remaining lease term (years) 6.5 12.7 6.8 13.5 Weighted-average discount rate 2.5 % 3.1 % 1.9 % 3.2 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
US Tax Reform [Member] | |
Other Commitments [Line Items] | |
Mandatory transition tax payments | In connection with the TCJA's provision that subjects previously deferred foreign earnings to a one-time mandatory transition tax, the Company had a remaining related income tax payable obligation of $99.3 million as of April 1, 2023, which is expected to be paid as follows: Mandatory Transition Tax Payments (a) (millions) Fiscal 2024 $ 23.4 Fiscal 2025 33.7 Fiscal 2026 42.2 Total mandatory transition tax payments $ 99.3 (a) Included within current and non-current income tax payable in the consolidated balance sheets based upon the estimated timing of payments. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Summary of Repurchased Common Stock | A summary of the Company's repurchases of Class A common stock under its common stock repurchase program is as follows: Fiscal Years Ended April 1, April 2, March 27, (in millions) Cost of shares repurchased $ 454.3 $ 450.5 $ — Number of shares repurchased 4.8 3.7 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents OCI activity, net of tax, accumulated in equity: Foreign Currency Translation Gains (Losses) (a) Net Unrealized Gains (Losses) on Cash Flow Hedges (b) Net Unrealized Gains (Losses) on Defined Benefit Plans (c) Total Accumulated Other Comprehensive Income (Loss) (d) (millions) Balance at March 30, 2020 $ (130.4) $ 18.0 $ (5.8) $ (118.2) Other comprehensive income (loss), net of tax: OCI before reclassifications 7.2 (3.0) 3.3 7.5 Amounts reclassified from AOCI to earnings — (10.4) 0.3 (10.1) Other comprehensive income (loss), net of tax 7.2 (13.4) 3.6 (2.6) Balance at March 27, 2021 (123.2) 4.6 (2.2) (120.8) Other comprehensive income (loss), net of tax: OCI before reclassifications (66.5) 7.7 2.2 (56.6) Amounts reclassified from AOCI to earnings — (3.3) 0.4 (2.9) Other comprehensive income (loss), net of tax (66.5) 4.4 2.6 (59.5) Balance at April 2, 2022 (189.7) 9.0 0.4 (180.3) Other comprehensive income (loss), net of tax: OCI before reclassifications (14.1) 15.6 3.7 5.2 Amounts reclassified from AOCI to earnings — (20.5) (0.4) (20.9) Other comprehensive income (loss), net of tax (14.1) (4.9) 3.3 (15.7) Balance at April 1, 2023 $ (203.8) $ 4.1 $ 3.7 $ (196.0) (a) OCI before reclassifications to earnings related to foreign currency translation gains (losses) includes income tax provisions of $12.6 million and $17.7 million for Fiscal 2023 and Fiscal 2022, respectively, and includes an income tax benefit of $22.1 million for Fiscal 2021. OCI before reclassifications to earnings includes gains of $28.2 million (net of a $9.0 million income tax provision) and $38.1 million (net of a $12.3 million income tax provision) for Fiscal 2023 and Fiscal 2022, respectively, and includes a loss of $65.6 million (net of a $20.7 million income tax benefit) for Fiscal 2021, related to changes in the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations (see Note 13). (b) OCI before reclassifications to earnings related to net unrealized gains (losses) on cash flow hedges are presented net of income tax provisions of $2.5 million and $1.3 million for Fiscal 2023 and Fiscal 2022, respectively, and are presented net of an income tax benefit of $0.5 million for Fiscal 2021. The tax effects on amounts reclassified from AOCI to earnings are presented in a table below. (c) Activity is presented net of taxes, which were immaterial for all periods presented. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents reclassifications from AOCI to earnings for cash flow hedges, by component: Fiscal Years Ended April 1, April 2, March 27, Location of Gains (Losses) Reclassified from AOCI to Earnings (millions) Gains (losses) on cash flow hedges (a) : FC — Cash flow hedges $ 23.8 $ 3.8 $ 12.6 Cost of goods sold FC — Cash flow hedges — — (0.3) Other income (expense), net Tax effect (3.3) (0.5) (1.9) Income tax provision Net of tax $ 20.5 $ 3.3 $ 10.4 (a) FC = Forward foreign currency exchange contracts. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the total compensation expense and the associated income tax benefits recognized related to stock-based compensation arrangements | A summary of total stock-based compensation expense and the related income tax benefits recognized is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Compensation expense (a) $ 75.5 $ 81.7 $ 72.7 Income tax benefit (12.6) (13.0) (12.4) (a) Fiscal 2022 includes $2.0 million of accelerated stock-based compensation expense recorded within restructuring and other charges, net in the consolidated statements of operations (see Note 9). All other stock-based compensation expense was recorded within SG&A expenses. |
Restricted stock and service-based restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock and restricted stock unit activity | A summary of service-based RSU activity during Fiscal 2023 is as follows: Service- Number of Weighted-Average Grant Date Fair Value (thousands) Nonvested at April 2, 2022 1,566 $ 87.07 Granted 668 92.07 Vested (579) 88.40 Forfeited (70) 95.58 Nonvested at April 1, 2023 1,585 $ 88.32 |
Additional information pertaining to the restricted stock and restricted stock unit activity | Service- Total unrecognized compensation expense at April 1, 2023 (millions) $ 41.2 Weighted-average period expected to be recognized over (years) 1.2 Additional information pertaining to service-based RSU activity is as follows: Fiscal Years Ended April 1, April 2, March 27, Service-based RSUs: Weighted-average grant date fair value of awards granted $ 92.07 $ 117.33 $ 64.55 Total fair value of awards vested (millions) $ 56.7 $ 79.5 $ 33.4 |
Market-based restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Payment Award with Market Condition Valuation Assumptions [Table Text Block] | The assumptions used to estimate the fair value of TSR awards granted were as follows: Fiscal Years Ended April 1, April 2, March 27, Expected volatility 49.9 % 46.8 % N/A Expected dividend yield 3.0 % 2.2 % N/A Risk-free interest rate 3.1 % 0.4 % N/A Weighted-average grant date fair value $ 124.62 $ 146.46 N/A |
Performance-based restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock and restricted stock unit activity | A summary of performance-based RSU activity including TSR awards during Fiscal 2023 is as follows: Performance-based Number of Weighted-Average Grant Date Fair Value (thousands) Nonvested at April 2, 2022 542 $ 104.29 Granted 261 106.58 Change due to performance and/or market condition achievement (58) 88.03 Vested (269) 86.94 Forfeited (7) 120.14 Nonvested at April 1, 2023 469 $ 117.35 |
Additional information pertaining to the restricted stock and restricted stock unit activity | Performance-based Total unrecognized compensation expense at April 1, 2023 (millions) $ 25.8 Weighted-average period expected to be recognized over (years) 1.6 Additional information pertaining to performance-based RSU activity including TSR awards is as follows: Fiscal Years Ended April 1, April 2, March 27, Performance-based RSUs: Weighted-average grant date fair value of awards granted $ 106.58 $ 129.56 N/A Total fair value of awards vested (millions) $ 26.8 $ 27.6 $ 55.0 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Net revenues by segment | Net revenues for each of the Company's segments are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Net revenues: North America $ 3,020.5 $ 2,968.2 $ 1,992.4 Europe 1,839.2 1,780.7 1,165.9 Asia 1,426.7 1,286.8 1,027.5 Other non-reportable segments 157.2 182.8 215.0 Total net revenues $ 6,443.6 $ 6,218.5 $ 4,400.8 |
Net operating income (loss) by segment | Operating income (loss) for each of the Company's segments is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Operating income (loss) (a) : North America $ 543.2 $ 676.7 $ 334.0 Europe 406.5 444.0 189.3 Asia 289.6 228.8 148.2 Other non-reportable segments 146.4 138.4 32.4 1,385.7 1,487.9 703.9 Unallocated corporate expenses (638.5) (667.3) (577.0) Unallocated restructuring and other charges, net (b) (43.0) (22.2) (170.5) Total operating income (loss) $ 704.2 $ 798.4 $ (43.6) (a) Segment operating income during Fiscal 2021 reflects bad debt expense reversals of $22.0 million, $4.8 million, $0.3 million, and $0.5 million related to North America, Europe, Asia, and other non-reportable segments, respectively, primarily related to adjustments to reserves previously established in connection with COVID-19 business disruptions. Segment operating income and unallocated corporate expenses during the fiscal years presented also included asset impairment charges (see Note 8), which are detailed below: Fiscal Years Ended April 1, April 2, March 27, (millions) Asset impairment charges: North America $ (9.5) $ (2.4) $ (12.2) Europe — — (24.3) Asia — (1.1) (1.4) Other non-reportable segments — (0.3) (18.2) Unallocated corporate expenses (0.2) (17.5) (39.9) Total asset impairment charges $ (9.7) $ (21.3) $ (96.0) (b) The fiscal years presented included certain unallocated restructuring and other charges, net (see Note 9), which are detailed below: Fiscal Years Ended April 1, April 2, March 27, (millions) Unallocated restructuring and other charges, net: North America-related $ (0.4) $ 0.1 $ (22.4) Europe-related (2.7) 2.1 (30.0) Asia-related (1.3) 2.8 (7.4) Other non-reportable segment-related — (0.1) (3.3) Corporate operations-related (14.8) (8.9) (96.0) Unallocated restructuring charges (19.2) (4.0) (159.1) Other charges (see Note 9) (23.8) (18.2) (11.4) Total unallocated restructuring and other charges, net $ (43.0) $ (22.2) $ (170.5) |
Asset impairment charges by segment | Fiscal Years Ended April 1, April 2, March 27, (millions) Asset impairment charges: North America $ (9.5) $ (2.4) $ (12.2) Europe — — (24.3) Asia — (1.1) (1.4) Other non-reportable segments — (0.3) (18.2) Unallocated corporate expenses (0.2) (17.5) (39.9) Total asset impairment charges $ (9.7) $ (21.3) $ (96.0) |
Schedule of unallocated restructuring and other charges | The fiscal years presented included certain unallocated restructuring and other charges, net (see Note 9), which are detailed below: Fiscal Years Ended April 1, April 2, March 27, (millions) Unallocated restructuring and other charges, net: North America-related $ (0.4) $ 0.1 $ (22.4) Europe-related (2.7) 2.1 (30.0) Asia-related (1.3) 2.8 (7.4) Other non-reportable segment-related — (0.1) (3.3) Corporate operations-related (14.8) (8.9) (96.0) Unallocated restructuring charges (19.2) (4.0) (159.1) Other charges (see Note 9) (23.8) (18.2) (11.4) Total unallocated restructuring and other charges, net $ (43.0) $ (22.2) $ (170.5) |
Depreciation and amortization by segment | The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments: Fiscal Years Ended April 1, April 2, March 27, (millions) Depreciation and amortization expense: North America $ 74.3 $ 72.8 $ 73.4 Europe 32.0 32.3 31.6 Asia 48.3 51.9 56.3 Other non-reportable segments — 0.4 4.3 Unallocated corporate 65.9 72.3 82.0 Total depreciation and amortization expense $ 220.5 $ 229.7 $ 247.6 |
Schedule of capital expenditures, by segment | Fiscal Years Ended April 1, April 2, March 27, (millions) Capital expenditures: North America $ 73.5 $ 36.6 $ 23.8 Europe 34.3 39.0 16.9 Asia 68.4 49.1 41.2 Other non-reportable segments — 1.8 2.4 Unallocated corporate 41.3 40.4 23.5 Total capital expenditures $ 217.5 $ 166.9 $ 107.8 |
Net revenues and long-lived assets by geographic location | Net revenues and long-lived assets by geographic location of the reporting subsidiary are as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Net revenues (a) : The Americas (b) $ 3,201.1 $ 3,164.5 $ 2,208.4 Europe (c) 1,815.9 1,766.1 1,164.3 Asia (d) 1,426.6 1,287.9 1,028.1 Total net revenues $ 6,443.6 $ 6,218.5 $ 4,400.8 April 1, April 2, (millions) Long-lived assets (a) : The Americas (b) $ 1,121.5 $ 1,068.9 Europe (c) 612.7 698.2 Asia (d) 355.3 313.7 Total long-lived assets $ 2,089.5 $ 2,080.8 (a) For certain of the Company's licensed operations, net revenues and long-lived assets, which is comprised of property and equipment and lease ROU assets, are included within the geographic location of the reporting subsidiary which holds the respective license. (b) Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. were $3.055 billion , $3.039 billion, and $2.103 billion in Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively. Long-lived assets located in the U.S. were $1.106 billion and $1.057 billion as of April 1, 2023 and April 2, 2022, respectively. (c) Includes the Middle East. (d) Includes Australia and New Zealand. |
Additional Financial Informat_2
Additional Financial Information (Tables) | 12 Months Ended |
Apr. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | A reconciliation of cash, cash equivalents, and restricted cash as of April 1, 2023 and April 2, 2022 from the consolidated balance sheets to the consolidated statements of cash flows is as follows: April 1, April 2, (millions) Cash and cash equivalents $ 1,529.3 $ 1,863.8 Restricted cash included within prepaid expenses and other current assets 1.5 1.6 Restricted cash included within other non-current assets 6.1 6.6 Total cash, cash equivalents, and restricted cash $ 1,536.9 $ 1,872.0 |
Cash Interest and Taxes | Cash paid for interest and income taxes is as follows: Fiscal Years Ended April 1, April 2, March 27, (millions) Cash paid for interest $ 39.9 $ 46.6 $ 33.5 Cash paid for income taxes, net of refunds 160.2 216.3 47.8 |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Apr. 01, 2023 Segment | |
Description of Business [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Accounting Policies [Abstract] | |
Contractually-Guaranteed Minimum Royalties - Fiscal 2024 | $ 98.5 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2025 | 62.7 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2026 | 44.1 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2027 | 40.8 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2028 | 11.3 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2029 and Thereafter | 0 |
Contractually-Guaranteed Minimum Royalties - Total | $ 257.4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 6,443.6 | $ 6,218.5 | $ 4,400.8 |
North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 3,020.5 | 2,968.2 | 1,992.4 |
Europe Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,839.2 | 1,780.7 | 1,165.9 |
Asia Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,426.7 | 1,286.8 | 1,027.5 |
Other Non-Reportable Segment-Related [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 157.2 | 182.8 | 215 |
Transferred at Point in Time [Member] | Retail [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 4,053.1 | 3,941.5 | 2,779.8 |
Transferred at Point in Time [Member] | Retail [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,872.6 | 1,878.6 | 1,214.1 |
Transferred at Point in Time [Member] | Retail [Member] | Europe Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 858.4 | 828.3 | 517.1 |
Transferred at Point in Time [Member] | Retail [Member] | Asia Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,322.1 | 1,207.4 | 968.4 |
Transferred at Point in Time [Member] | Retail [Member] | Other Non-Reportable Segment-Related [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 27.2 | 80.2 |
Transferred at Point in Time [Member] | Wholesale [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,233.3 | 2,127.3 | 1,498.6 |
Transferred at Point in Time [Member] | Wholesale [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,147.9 | 1,089.6 | 778.3 |
Transferred at Point in Time [Member] | Wholesale [Member] | Europe Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 980.8 | 952.4 | 648.8 |
Transferred at Point in Time [Member] | Wholesale [Member] | Asia Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 104.6 | 79.4 | 59.1 |
Transferred at Point in Time [Member] | Wholesale [Member] | Other Non-Reportable Segment-Related [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 5.9 | 12.4 |
Transferred over Time [Member] | Licensing [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 157.2 | 149.7 | 122.4 |
Transferred over Time [Member] | Licensing [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Transferred over Time [Member] | Licensing [Member] | Europe Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Transferred over Time [Member] | Licensing [Member] | Asia Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Transferred over Time [Member] | Licensing [Member] | Other Non-Reportable Segment-Related [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 157.2 | $ 149.7 | $ 122.4 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Accounting Policies [Abstract] | |||
Shipping Costs | $ 79.9 | $ 73 | $ 54.8 |
Handling Costs | $ 169.7 | $ 151.8 | $ 138.3 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) - shares shares in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Summary of basic and diluted shares | |||
Basic shares | 67.7 | 73 | 73.5 |
Dilutive effect of RSUs and stock options | 1.3 | 1.3 | 0 |
Diluted shares | 69 | 74.3 | 73.5 |
Incremental shares excluded due to net loss | 1.2 | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.1 | 0.4 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Sales Returns and Allowances [Member] | |||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | |||
Beginning reserve balance | $ 180.7 | $ 173.7 | $ 204.7 |
Amount charged against revenue to increase reserve | 407.9 | 407.7 | 280.1 |
Amount credited against customer accounts to decrease reserve | (436.5) | (392.9) | (317.4) |
Foreign currency translation | (4) | (7.8) | 6.3 |
Ending reserve balance | 148.1 | 180.7 | 173.7 |
Allowance for Doubtful Accounts [Member] | |||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | |||
Beginning reserve balance | 34 | 40.1 | 71.5 |
Amount recorded to expense to increase (decrease) reserve | 2.3 | (2.2) | (27.6) |
Amount credited against customer accounts to decrease reserve | (8.5) | (2.8) | (6.1) |
Foreign currency translation | (0.6) | (1.1) | 2.3 |
Ending reserve balance | $ 27.2 | $ 34 | $ 40.1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 USD ($) Customer | Apr. 02, 2022 USD ($) | Mar. 27, 2021 USD ($) | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Deferred income | $ 14.1 | $ 16.6 | |
Advertising and marketing expenses | 438.1 | 456.3 | $ 265 |
Prepaid advertising and marketing | 10.4 | 7.9 | |
Foreign currency gains (losses) | $ (4.5) | 2.8 | 8.7 |
Wholesale customer payment terms | 30 to 120 days | ||
Number of Key Wholesale Customers | Customer | 3 | ||
Cloud computing expensed implementation costs | $ 6.3 | $ 9.2 | $ 8.4 |
Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Initial lease term | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 3 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 3 years | ||
Minimum [Member] | Computer Software & Equipment [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 3 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 10 years | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Initial lease term | 10 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 7 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 7 years | ||
Maximum [Member] | Computer Software & Equipment [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 7 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Property and equipment, useful lives | 40 years | ||
Total Net Revenue [Member] | Customer Concentration Risk | Three largest wholesale customers [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Contribution of Key Wholesale Customers | 16% | ||
Accounts Receivable [Member] | Customer Concentration Risk | Three largest wholesale customers [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Contribution of Key Wholesale Customers | 34% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Property and equipment, net | |||
Land and improvements | $ 15.3 | $ 15.3 | |
Buildings and improvements | 471.9 | 480.4 | |
Furniture and fixtures | 608.8 | 589.6 | |
Machinery and equipment | 375.9 | 375.7 | |
Capitalized software | 541.1 | 532.1 | |
Leasehold improvements | 1,216.1 | 1,170.1 | |
Construction in progress | 60.9 | 55.4 | |
Property plant and equipment, gross | 3,290 | 3,218.6 | |
Less: accumulated depreciation | (2,334.5) | (2,249.1) | |
Property and equipment, net | 955.5 | 969.5 | |
Operating costs and expenses | |||
Depreciation expense | $ 206.5 | $ 211.8 | $ 227.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 908.7 | $ 934.6 |
Foreign currency translation | (9.8) | (25.9) |
Goodwill, ending balance | 898.9 | 908.7 |
North America Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 421.8 | 421.8 |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | 421.8 | 421.8 |
Europe Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 286 | 304 |
Foreign currency translation | (4.2) | (18) |
Goodwill, ending balance | 281.8 | 286 |
Asia Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 68.9 | 76.8 |
Foreign currency translation | (5.6) | (7.9) |
Goodwill, ending balance | 63.3 | 68.9 |
Other non-reportable segments [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 132 | 132 |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | $ 132 | $ 132 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross | $ 476.2 | $ 484.5 |
Accumulated Amortization | (394.6) | (388.9) |
Intangible assets subject to amortization, Net | 81.6 | 95.6 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 483.5 | 491.8 |
Intangible assets, net | 88.9 | 102.9 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets not subject to amortization, excluding goodwill | 7.3 | 7.3 |
Re-acquired Licensed Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross | 226.3 | 228.6 |
Accumulated Amortization | (174.7) | (168.8) |
Intangible assets subject to amortization, Net | 51.6 | 59.8 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross | 239.8 | 245.8 |
Accumulated Amortization | (211.9) | (212.3) |
Intangible assets subject to amortization, Net | 27.9 | 33.5 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross | 10.1 | 10.1 |
Accumulated Amortization | (8) | (7.8) |
Intangible assets subject to amortization, Net | $ 2.1 | $ 2.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 14 | $ 17.9 | $ 20.2 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Fiscal 2024 | 13.2 | ||
Fiscal 2025 | 12.9 | ||
Fiscal 2026 | 10.7 | ||
Fiscal 2027 | 10 | ||
Fiscal 2028 | 10 | ||
Fiscal 2029 and thereafter | 24.8 | ||
Intangible assets subject to amortization, Net | $ 81.6 | $ 95.6 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, weighted-average useful life | 7 years 1 month 6 days | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Re-acquired Licensed Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, weighted-average useful life | 7 years 1 month 6 days | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, weighted-average useful life | 6 years 10 months 24 days |
Other Assets and Liabilities (D
Other Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Prepaid Expense and Other Current Assets | ||
Other taxes receivable | $ 46.7 | $ 26.2 |
Non-trade receivables | 30.7 | 41.4 |
Prepaid software maintenance | 18.5 | 16.4 |
Inventory return asset | 10.5 | 8.3 |
Prepaid advertising and marketing | 10.4 | 7.9 |
Prepaid logistic services | 6.5 | 6.6 |
Cloud computing arrangement implementation costs, current | 6.2 | 4 |
Prepaid occupancy expense | 5.8 | 6 |
Prepaid Insurance | 4.1 | 3 |
Tenant allowances receivable, current | 3.9 | 6.1 |
Derivative financial instruments, current | 1.7 | 8.7 |
Other prepaid expenses and current assets | 43.7 | 37.9 |
Total prepaid expenses and other current assets | 188.7 | 172.5 |
Other Non-current Assets | ||
Derivative financial instruments, noncurrent | 42.8 | 23.7 |
Security deposits | 33 | 30.6 |
Equity method and other investments | 10.6 | 12 |
Cloud computing arrangement implementation costs, noncurrent | 10.1 | 9.7 |
Deferred Rent Receivables, Net, Noncurrent | 6.8 | 5.2 |
Restricted cash, noncurrent | 6.1 | 6.6 |
Other non-current assets | 23.6 | 23.4 |
Total other non-current assets | 133 | 111.2 |
Accrued Expenses and Other Current Liabilities | ||
Accrued inventory | 212.3 | 250.2 |
Accrued payroll and benefits | 198.1 | 278 |
Accrued operating expenses | 194.4 | 223.4 |
Dividends payable | 49.2 | 48.1 |
Accrued capital expenditures | 37.2 | 49.6 |
Other taxes payable | 32.8 | 60.9 |
Restructuring reserve, current | 20.8 | 30.8 |
Finance lease obligations, current | 20.3 | 19.8 |
Deferred income | 14 | 16.5 |
Other accrued expenses and current liabilities | 16.4 | 14.1 |
Total accrued expenses and other current liabilities | 795.5 | 991.4 |
Other Non-Current Liabilities | ||
Deferred lease incentives and obligations | 43.2 | 52.7 |
Accrued benefits and deferred compensation, noncurrent | 12.4 | 12 |
Deferred tax liabilities | 7.2 | 12.5 |
Derivative financial instruments, non-current | 0 | 18.1 |
Other non-current liabilities | 38.1 | 36.6 |
Total other non-current liabilities | $ 100.9 | $ 131.9 |
Impairment of Assets (Details T
Impairment of Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Impairment of assets | $ (9.7) | $ (21.3) | $ (96) |
Restructuring Plan-Related [Member] | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Impairment of assets | (0.2) | (69.4) | |
Other non-restructuring related [Member] | Underperforming stores | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Impairment of assets | (17.5) | ||
Other non-restructuring related [Member] | Previously exited real estate locations for which the related lease agreement have not yet expired | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Impairment of assets | $ (9.5) | $ (9.1) |
Restructuring and Other Charg_3
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Other Charges | $ 23.8 | $ 18.2 | $ 11.4 |
Fiscal 2021 Strategic Realignment Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash-related restructuring charges | 12.5 | 2 | 159.1 |
Cash-related Restructuring Charges, Cost Incurred to Date | 173.6 | ||
Non-cash charges | 7.2 | 23.3 | 77.7 |
Non-cash Charges, Cost Incurred to Date | 108.2 | ||
Restructuring and non-cash charges | 19.7 | 25.3 | 236.8 |
Restructuring and Related Cost, Cost Incurred to Date | 281.8 | ||
Fiscal 2021 Strategic Realignment Plan | Severance and benefit costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash-related restructuring charges | 8.6 | (5.7) | 144.2 |
Cash-related Restructuring Charges, Cost Incurred to Date | 147.1 | ||
Fiscal 2021 Strategic Realignment Plan | Other cash charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash-related restructuring charges | 3.9 | 7.7 | 14.9 |
Cash-related Restructuring Charges, Cost Incurred to Date | 26.5 | ||
Non-cash charges | 6.7 | 0 | 0 |
Non-cash Charges, Cost Incurred to Date | 6.7 | ||
Restructuring Income | 3.5 | 4 | |
Fiscal 2021 Strategic Realignment Plan | Impairment of Assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | 0.2 | 21.3 | 69.4 |
Non-cash Charges, Cost Incurred to Date | 90.9 | ||
Fiscal 2021 Strategic Realignment Plan | Inventory-related charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | 0.3 | 0 | 8.3 |
Non-cash Charges, Cost Incurred to Date | 8.6 | ||
Fiscal 2021 Strategic Realignment Plan | Accelerated stock-based compensation expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | 0 | 2 | $ 0 |
Non-cash Charges, Cost Incurred to Date | 2 | ||
Fiscal 2021 Strategic Realignment Plan | Charitable Donation | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Charges | $ 3.5 | $ 4 |
Restructuring and Other Charg_4
Restructuring and Other Charges (Details 1) - Fiscal 2021 Strategic Realignment Plan - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring reserve | $ 30.7 | $ 99.4 | $ 0 |
Additions (reductions) charged to expense | 12.5 | 2 | 159.1 |
Cash payments charged against reserve | (22.2) | (71.3) | (59.7) |
Non-cash adjustments | 0.3 | (0.6) | |
Ending restructuring reserve | 20.7 | 30.7 | 99.4 |
Severance and benefit costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring reserve | 30.6 | 96.2 | 0 |
Additions (reductions) charged to expense | 8.6 | (5.7) | 144.2 |
Cash payments charged against reserve | (18.2) | (60.5) | (48) |
Non-cash adjustments | (0.3) | 0.6 | |
Ending restructuring reserve | 20.7 | 30.6 | 96.2 |
Other cash charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring reserve | 0.1 | 3.2 | 0 |
Additions (reductions) charged to expense | 3.9 | 7.7 | 14.9 |
Cash payments charged against reserve | (4) | (10.8) | (11.7) |
Non-cash adjustments | 0 | 0 | |
Ending restructuring reserve | $ 0 | $ 0.1 | $ 3.2 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | Mar. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Disposition of Stock in Subsidiary | $ 0 | |||
Club Monaco earn-out payment period | 5 years | |||
Other Charges | $ 23.8 | $ 18.2 | $ 11.4 | |
Provisional Swiss Tax Reform - Non-income-related Capital Taxes | 6.4 | |||
Charges primarily related to rent and occupancy costs associated with previously exited real estate locations [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | 23.8 | 11.8 | 11.4 | |
Fiscal 2021 Strategic Realignment Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and non-cash charges | 19.7 | 25.3 | 236.8 | |
Cash-related restructuring charges | 12.5 | 2 | 159.1 | |
Non-cash charges | 7.2 | 23.3 | 77.7 | |
Payments for Restructuring | 22.2 | 71.3 | 59.7 | |
Restructuring reserve | 20.7 | 30.7 | 99.4 | $ 0 |
Fiscal 2021 Strategic Realignment Plan | Charitable Donation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | 3.5 | 4 | ||
Other Restructuring Plans [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | $ 0.2 | $ 2.5 | $ 21.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 74.3 | $ 180.7 | $ (285) |
Foreign | 617.6 | 573.9 | 210.2 |
Income (loss) before income taxes | $ 691.9 | $ 754.6 | $ (74.8) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Current: | |||
Federal | $ (35.7) | $ (24.2) | $ 38.5 |
State and local | 1.4 | (21.6) | 1.5 |
Foreign | (131) | (154.8) | (50.7) |
Total Current Provision for Income Taxes | (165.3) | (200.6) | (10.7) |
Deferred: | |||
Federal | 14.3 | 53.8 | (19.2) |
State and local | (8) | 8.2 | 3.5 |
Foreign | (10.2) | (15.9) | (19.9) |
Total deferred benefit (provision) for income taxes | (3.9) | 46.1 | (35.6) |
Income tax benefit (provision) | $ (169.2) | $ (154.5) | $ (46.3) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Benefit (provision) for income taxes at the U.S. federal statutory rate | $ (145.3) | $ (158.5) | $ 15.7 |
Change due to: | |||
State and local income taxes, net of federal benefit | (6.3) | (14.5) | 6.1 |
Foreign income taxed at different rates, net of U.S. foreign tax credits | (2.7) | (2.6) | (4.8) |
Deferred tax adjustments | 0 | 8 | 0 |
Non-creditable foreign taxes | (8.8) | 0 | 0 |
Foreign-derived intangible income benefit | 0 | 20.3 | 0 |
Change in valuation allowance on deferred tax assets | (0.2) | 3.6 | (34.9) |
Unrecognized tax benefits and settlements of tax examinations | (1.2) | (11.5) | (4.6) |
Swiss Tax Act benefit (expense) | 0 | 0 | (13.8) |
Compensation-related adjustments | (7.7) | (9.4) | (12.9) |
Charitable contributions | 2.8 | 3.7 | 7.4 |
Transfer pricing adjustments | 0 | 0 | (4.1) |
Other | 0.2 | 6.4 | (0.4) |
Income tax benefit (provision) | $ (169.2) | $ (154.5) | $ (46.3) |
Effective tax rate | 24.50% | 20.50% | (61.90%) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Deferred tax assets (liabilities): | ||
Lease liabilities | $ 334.9 | $ 349.5 |
Deferred income | 69.8 | 96 |
Deferred compensation | 47.4 | 34.5 |
Property and equipment - DTA | 39.2 | 15.7 |
Unrecognized tax benefits | 34.2 | 31.7 |
Receivable allowances and reserves | 31.4 | 31.2 |
Inventory basis difference | 30.4 | 27.5 |
Capitalized software | 14.5 | 0 |
Net operating loss carryforwards | 11.7 | 58.9 |
GILTI-related carryforwards | 5.8 | 10.6 |
Accrued expenses | 5.5 | 7.3 |
Transfer pricing | 0 | 4.1 |
Lease ROU assets | (259.3) | (273.1) |
Goodwill and other intangible assets | (60.2) | (53.9) |
Cumulative translation adjustment and hedges | (23.1) | (11.3) |
Undistributed foreign income | (19.5) | (4) |
Other liabilities | (3.2) | |
Other assets | 11.7 | |
Valuation allowance | (11.6) | (45.1) |
Net deferred tax assets | 247.9 | 291.3 |
Deferred tax assets, gross | 255.1 | 303.8 |
Deferred tax liabilities, gross | $ 7.2 | $ 12.5 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Reconciliation of unrecognized tax benefits, excluding interest and penalties | |||
Unrecognized tax benefits beginning balance | $ 75.4 | $ 71.4 | $ 72.7 |
Additions related to current period tax positions | 13.3 | 21.6 | 3.2 |
Additions related to prior period tax positions | 0.6 | 8.1 | 8.8 |
Reductions related to prior period tax positions | (4.3) | (7.6) | (4.2) |
Reductions related to expiration of statutes of limitations | (2.9) | (1.1) | (2.1) |
Reductions related to settlements with taxing authorities | (4.5) | (14.8) | (9.6) |
Additions related to foreign currency translation | 2.6 | ||
Reductions related to foreign currency translation | (0.5) | (2.2) | |
Unrecognized tax benefits ending balance | 77.1 | 75.4 | 71.4 |
Reconciliation of accrued interest and penalties related to unrecognized tax benefits | |||
Accrued interest and penalties beginning balance | 16.5 | 20 | 16.2 |
Net additions charged to expense | 2.6 | 2.6 | 5.5 |
Reductions related to prior period tax positions | (1.9) | (0.9) | (1.7) |
Reductions related to settlements with taxing authorities | (0.4) | (5) | (0.3) |
Additions (reductions) related to foreign currency translation | (0.1) | (0.2) | 0.3 |
Accrued interest and penalties ending balance | $ 16.7 | $ 16.5 | $ 20 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Inflation Reduction Act, Percent Of Minimum Tax On Book Income | 15% | |||
Inflation Reduction Act, Percent Of Excise Tax On Net Stock Repurchases | 1% | |||
Provisional One-Time Swiss Tax Reform Benefit - Revaluation of Deferred Tax Assets | $ 13.8 | $ 122.9 | ||
Effective Income Tax Rate Reconciliation - Swiss Tax Reform Benefit, Percent | 18.40% | |||
Provisional Swiss Tax Reform - Non-income-related Capital Taxes | $ 6.4 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | |
Undistributed earnings of foreign subsidiaries expected to be permanently reinvested | $ 2,178 | |||
Non-current liability for unrecognized tax benefits | 93.8 | $ 91.9 | ||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 59.6 | $ 60.1 | ||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 1.4 | |||
Operating Loss Carryforwards, Valuation Allowance | 5.5 | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 0.8 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2.5 | |||
Operating Loss Carryforwards, Valuation Allowance | 2.3 | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 25.3 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,138.5 | $ 1,636.3 |
Short-term debt and current portion of long-term debt | 0 | 499.8 |
Long-term debt | 1,138.5 | 1,136.5 |
3.750% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 398.4 | 397.7 |
Unamortized Debt Issuance Costs | (1.6) | (2.3) |
1.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 499.8 |
Unamortized Debt Issuance Costs | (0.2) | |
2.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 740.1 | 738.8 |
Unamortized Debt Issuance Costs | $ (9.9) | $ (11.2) |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Aug. 18, 2020 | Sep. 26, 2018 | |
3.750% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400 | ||
Debt instrument, maturity date | Sep. 15, 2025 | ||
Long-term debt, net of discount | 99.521% | ||
Interest rate on debt | 3.75% | ||
2.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300 | ||
Debt instrument, maturity date | Sep. 26, 2018 | ||
Interest rate on debt | 2.125% | ||
2.625% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300 | ||
Debt instrument, maturity date | Aug. 18, 2020 | ||
Interest rate on debt | 2.625% | ||
1.700% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500 | ||
Debt instrument, maturity date | Jun. 15, 2022 | ||
Long-term debt, net of discount | 99.88% | ||
Interest rate on debt | 1.70% | ||
2.950% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 750 | ||
Debt instrument, maturity date | Jun. 15, 2030 | ||
Long-term debt, net of discount | 98.995% | ||
Interest rate on debt | 2.95% | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, Percentage | 100% | ||
Debt instrument restrictive covenants | The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. |
Debt (Details Textual 1)
Debt (Details Textual 1) ¥ in Millions, ¥ in Millions, $ in Millions, ₩ in Billions | 12 Months Ended | |||||
Apr. 01, 2023 USD ($) Quarter | Mar. 27, 2021 USD ($) | Apr. 01, 2023 CNY (¥) | Apr. 01, 2023 KRW (₩) | Apr. 01, 2023 JPY (¥) | Apr. 02, 2022 USD ($) | |
Credit Facilities (Textual) [Abstract] | ||||||
Maximum expected combined borrowings outstanding - Commercial Paper Program and Global Credit Facility | $ 500 | |||||
Commercial Paper | 0 | $ 0 | ||||
Line of credit facility, contingent liability for outstanding LOCs | 11.9 | |||||
Commercial Paper [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 500 | |||||
Commercial Paper [Member] | Maximum [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Short-term Debt, Term | 397 days | |||||
Global Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 1,000 | |||||
Borrowing capacity under unsecured revolving line of credit | 500 | |||||
Borrowings outstanding under revolving credit facilities | $ 0 | 0 | ||||
Line of credit facility, expiration date | Aug. 12, 2024 | |||||
Line of credit facility, contingent liability for outstanding LOCs | $ 11.9 | 9.5 | ||||
Commitment fee, percentage | 0.09% | |||||
Maximum ratio of adjusted debt to consolidated EBITDAR as of date of measurement for four consecutive quarters | 4.25 | |||||
Leverage Ratio Number of Consecutive Fiscal Quarters Used | Quarter | 4 | |||||
Credit facility covenant terms | The Global Credit Facility contains a number of covenants that, among other things, restrict the Company's ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make certain investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the "leverage ratio") of no greater than 4.25 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding, including finance lease obligations, plus all operating lease obligations. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, (iv) operating lease cost, (v) restructuring and other non-recurring expenses, and (vi) acquisition-related costs. | |||||
Credit Facility covenant compliance | no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company's Global Credit Facility | |||||
Proceeds from credit facility borrowings | $ 475 | |||||
China Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 14 | ¥ 100 | ||||
Line of credit facility, expiration date | Apr. 03, 2024 | |||||
South Korea Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 23 | ₩ 30 | ||||
Line of credit facility, expiration date | Oct. 27, 2023 | |||||
Japan Overdraft Facility | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 38 | ¥ 5,000 | ||||
Line of credit facility, expiration date | Apr. 30, 2024 | |||||
China Overdraft Facility | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Maximum borrowing capacity | $ 14 | ¥ 100 | ||||
Line of credit facility, expiration date | Jun. 17, 2023 | |||||
Pan-Asia Borrowing Facilities | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Borrowings outstanding under revolving credit facilities | $ 0 | $ 0 | ||||
Weighted Average Overnight Federal Funds Rate [Member] | Global Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 0.50% | |||||
Adjusted LIBOR [Member] | Global Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 0.75% | |||||
Federal Reserve Bank of New York | Global Credit Facility Third Amendment | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 0.50% | |||||
Adjusted Term Secured Overnight Financing Rate | Global Credit Facility Third Amendment | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 1% | |||||
Daily Simple Secured Overnight Financing Rate | Global Credit Facility Third Amendment | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 0.10% | |||||
LIBOR [Domain] | Global Credit Facility [Member] | ||||||
Credit Facilities (Textual) [Abstract] | ||||||
Percentage of variable rate | 1% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Financial assets recorded at fair value: | ||
Derivative assets, fair value | $ 44.5 | $ 32.4 |
Financial liabilities recorded at fair value | ||
Derivative liabilities, fair value | 5.7 | 18.3 |
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements, Recurring [Member] | ||
Financial assets recorded at fair value: | ||
Derivative assets, fair value | 44.5 | 32.4 |
Financial liabilities recorded at fair value | ||
Derivative liabilities, fair value | $ 5.7 | $ 18.3 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
3.750% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | $ 398.4 | $ 397.7 |
1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value, Current | 0 | 499.8 |
2.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | 740.1 | 738.8 |
Fair Value, Inputs, Level 2 [Member] | 3.750% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | 393.6 | 407.9 |
Fair Value, Inputs, Level 2 [Member] | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | 500.5 | |
Fair Value, Inputs, Level 2 [Member] | 2.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | $ 677.1 | $ 721 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $ 9.7 | $ 21.3 | $ 96 |
Property, Plant and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value as of Impairment Date | 0 | 0 | 23.5 |
Asset Impairment Charges | 0.2 | 1 | 44.1 |
Operating Lease, Right-of-Use Asset [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value as of Impairment Date | 14.8 | 27.8 | 84.3 |
Asset Impairment Charges | $ 9.5 | $ 20.3 | $ 51.9 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Fair Value Disclosures [Abstract] | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | $ 1,209.9 | $ 1,161.5 |
Derivative Assets | ||
Derivative assets, fair value | 44.5 | 32.4 |
Derivative Liabilities | ||
Derivative liabilities, fair value | 5.7 | 18.3 |
Designated [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 1,045.1 | 936.5 |
Derivative Assets | ||
Derivative assets, fair value | 44.2 | 30.3 |
Derivative Liabilities | ||
Derivative liabilities, fair value | 5 | 18.1 |
Undesignated [Member] | Foreign Exchange Forward [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 164.8 | 225 |
Undesignated [Member] | Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Assets | ||
Derivative assets, fair value | 0.3 | 2.1 |
Undesignated [Member] | Foreign Exchange Forward [Member] | Accrued expenses and other [Member] | ||
Derivative Liabilities | ||
Derivative liabilities, fair value | 0.7 | 0.2 |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 345.1 | 236.5 |
Derivative Liabilities | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Assets | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1.4 | 6.6 |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | Accrued expenses and other [Member] | ||
Derivative Liabilities | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 5 | |
Net Investment Hedging [Member] | Designated [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 700 | 700 |
Net Investment Hedging [Member] | Designated [Member] | Other Noncurrent Assets [Member] | ||
Derivative Assets | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 42.8 | 23.7 |
Net Investment Hedging [Member] | Designated [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative Liabilities | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | $ 0 | $ 18.1 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets, gross amount in the balance sheet | $ 44.5 | $ 32.4 |
Gross amount of derivatives assets subject to master netting arrangements not offset | (4.5) | (0.2) |
Derivative Asset, net basis | 40 | 32.2 |
Derivative Liability, gross amount in the balance sheet | 5.7 | 18.3 |
Gross amount of derivative liabilities subject to master netting arrangements not offset | (4.5) | (0.2) |
Derivative Liability, net basis | $ 1.2 | $ 18.1 |
Financial Instruments (Detail_2
Financial Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Reclassification of hedge gain (loss) from accumulated OCI into income | |||
Cost of goods sold | $ (2,277.8) | $ (2,071) | $ (1,539.4) |
Other income (expense), net | (4.1) | 4.7 | 7.6 |
Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income, Designated Hedges, Before Reclassifications and Tax | 55.3 | 59.4 | (89.8) |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 13 | 11.9 | 11.3 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 18.1 | 9 | (3.5) |
Designated as Hedging Instrument [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Reclassification of hedge gain (loss) from accumulated OCI into income | |||
Cost of goods sold - cash flow hedge impact | 23.8 | 3.8 | 12.6 |
Other income (expense), net | 0 | 0 | (0.3) |
Effective portion | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 10.6 | 46.8 | (35.5) |
Portion excluded from assessment of hedge effectiveness | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 26.6 | 3.6 | (50.8) |
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | $ 13 | $ 11.9 | $ 11.3 |
Financial Instruments (Detail_3
Financial Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 13 | $ 6.9 | $ (0.8) |
Foreign Exchange Forward [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 13 | $ 6.9 | $ (0.8) |
Financial Instruments (Detail_4
Financial Instruments (Details Textual) $ in Millions | 12 Months Ended |
Apr. 01, 2023 USD ($) counterparty | |
Derivative [Line Items] | |
Number of counterparties to master netting arrangements | counterparty | 9 |
Net gains (losses) deferred in AOCI for derivative financial instruments expected to be recognized in the earnings over the next 12 months | $ | $ 4.2 |
Maximum length of time hedged in cash flow hedge | 12 months |
Minimum [Member] | Foreign Exchange Forward [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 2 months |
Maximum [Member] | Foreign Exchange Forward [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 1 year |
Financial Instruments (Detail_5
Financial Instruments (Details Textual 1) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments | $ 36.4 | $ 734.6 |
Bank Time Deposits [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments | $ 36.4 | $ 734.6 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 1,134 | $ 1,111.3 |
Finance lease right-of-use assets | 271.7 | 299.4 |
Total lease assets | 1,405.7 | 1,410.7 |
Current operating lease liabilities | 266.7 | 262 |
Long-term operating lease liabilities | 1,141.1 | 1,132.2 |
Total operating lease liabilities | 1,407.8 | 1,394.2 |
Current portion of finance lease liabilities | 20.3 | 19.8 |
Long-term finance lease liabilities | 315.3 | 341.6 |
Total finance lease liabilities | 335.6 | 361.4 |
Total lease liabilities | $ 1,743.4 | $ 1,755.6 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 294.3 | $ 300.2 | $ 323.5 |
Variable lease cost | 318.3 | 291.2 | 224.7 |
Total lease cost | 642.9 | 626.6 | 581.5 |
Finance Lease Cost [Abstract] | |||
Depreciation of finance lease assets | 24.5 | ||
Cost of goods sold | |||
Lease, Cost [Abstract] | |||
Operating lease cost | 3.1 | 3.3 | 3.4 |
Variable lease cost | 3.5 | 4.6 | 4.5 |
SG&A expenses | |||
Lease, Cost [Abstract] | |||
Operating lease cost | 269.4 | 276.2 | 307 |
Variable lease cost | 307.8 | 288.6 | 220.2 |
Short-term lease cost | 2.8 | 3.6 | 4.9 |
Finance Lease Cost [Abstract] | |||
Depreciation of finance lease assets | 22.8 | 26.1 | 20.5 |
Restructuring and other charges | |||
Lease, Cost [Abstract] | |||
Operating lease cost | 21.8 | 20.7 | 13.1 |
Variable lease cost | 7 | ||
Variable lease income | (2) | ||
Sublease income | (8.2) | (6.7) | (1.8) |
Finance Lease Cost [Abstract] | |||
Depreciation of finance lease assets | 1.7 | ||
Interest expense | |||
Finance Lease Cost [Abstract] | |||
Accretion of finance lease liabilities | $ 11.2 | $ 12.2 | $ 9.7 |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Lessee Disclosure [Abstract] | |||
Operating cash flows from operating leases | $ 342.7 | $ 384.6 | $ 360.6 |
Operating cash flows from finance leases | 11.2 | 12.3 | 6.7 |
Financing cash flows from finance leases | $ 21.9 | $ 23.1 | $ 13.9 |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Millions | Apr. 01, 2023 | Apr. 02, 2022 |
Operating Lease Liabilities, Payments, Due [Abstract] | ||
Fiscal 2024 | $ 299.1 | |
Fiscal 2025 | 296.5 | |
Fiscal 2026 | 219.4 | |
Fiscal 2027 | 186 | |
Fiscal 2028 | 150.2 | |
Fiscal 2029 and thereafter | 386.9 | |
Total lease payments | 1,538.1 | |
Less: interest | (130.3) | |
Total lease liabilities | 1,407.8 | $ 1,394.2 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Fiscal 2024 | 33 | |
Fiscal 2025 | 34.1 | |
Fiscal 2026 | 34.4 | |
Fiscal 2027 | 33.9 | |
Fiscal 2028 | 31.7 | |
Fiscal 2029 and thereafter | 242.6 | |
Total lease payments | 409.7 | |
Less: interest | (74.1) | |
Total lease liabilities | 335.6 | $ 361.4 |
Future payment obligation for leases not commenced | $ 20.8 |
Leases (Details 4)
Leases (Details 4) | Apr. 01, 2023 | Apr. 02, 2022 |
Lessee Disclosure [Abstract] | ||
Operating leases - weighted-average remaining lease term (years) | 6 years 6 months | 6 years 9 months 18 days |
Operating leases - weighted-average discount rate | 2.50% | 1.90% |
Finance leases - weighted-average remaining lease term (years) | 12 years 8 months 12 days | 13 years 6 months |
Finance leases - weighted-average discount rate | 3.10% | 3.20% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Other Commitments [Abstract] | |
Contractual Obligation | $ 1,257 |
Line of credit facility, contingent liability for outstanding LOCs | 11.9 |
Future payment obligation for leases not commenced | 20.8 |
Inventory-related commitments [Member] | |
Other Commitments [Abstract] | |
Contractual Obligation | 878.6 |
Interest payment | |
Other Commitments [Abstract] | |
Contractual Obligation | 203.5 |
Other Commitments [Member] | |
Other Commitments [Abstract] | |
Contractual Obligation | 142.1 |
US Tax Reform [Member] | |
Loss Contingencies [Line Items] | |
Mandatory Transition Tax Payments Due in Fiscal 2024 | 23.4 |
Mandatory Transition Tax Payments Due in Fiscal 2025 | 33.7 |
Mandatory Transition Tax Payments Due in Fiscal 2026 | 42.2 |
Mandatory Transition Tax Payments Due under the Tax Reform, Net of Foreign Tax Credit Carryover | $ 99.3 |
Equity (Details)
Equity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased | $ 488.6 | $ 492.6 | $ 37.7 |
Stock Repurchase Program, Authorized Amount | 1,500 | ||
Stock Repurchase Program, Remaining Available Amount | 1,175 | ||
General repurchase program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased | $ 454.3 | $ 450.5 | $ 0 |
Number of shares repurchased | 4.8 | 3.7 | 0 |
Withholding in satisfaction of taxes on vested equity award [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased | $ 34.3 | $ 42.1 | $ 37.7 |
Number of shares repurchased | 0.3 | 0.4 | 0.5 |
Equity (Details Textual)
Equity (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jul. 02, 2022 $ / shares | Jun. 26, 2021 $ / shares | Apr. 01, 2023 USD ($) class_of_stock $ / shares shares | Apr. 02, 2022 USD ($) $ / shares | Mar. 27, 2021 USD ($) $ / shares | |
Class of Stock [Line Items] | |||||
Number of classes of stock | class_of_stock | 2 | ||||
Conversion of Stock, Conversion Ratio | one-for-one | ||||
Inflation Reduction Act, Percent Of Excise Tax On Net Stock Repurchases | 1% | ||||
Quarterly dividend per share | $ / shares | $ 0.75 | $ 0.6875 | $ 3 | $ 2.75 | $ 0 |
Payments of Ordinary Dividends, Common Stock | $ | $ (198.3) | $ (150) | $ (49.8) | ||
Common stock, Class A | |||||
Class of Stock [Line Items] | |||||
Common stock authorized to be issued | 500,000,000 | ||||
Number of votes per share | 1 | ||||
Common stock, Class B | |||||
Class of Stock [Line Items] | |||||
Common stock authorized to be issued | 100,000,000 | ||||
Number of votes per share | 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ (180.3) | ||
OCI before reclassifications | 5.2 | $ (56.6) | $ 7.5 |
Amounts reclassified from AOCI to earnings | (20.9) | (2.9) | (10.1) |
Other comprehensive income (loss), net of tax | (15.7) | (59.5) | (2.6) |
Ending balance | (196) | (180.3) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 12.6 | 17.7 | (22.1) |
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | 28.2 | 38.1 | (65.6) |
Gain (Loss) on Derivative Used in Net Investment Hedge, Tax | 9 | 12.3 | (20.7) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 2.5 | 1.3 | (0.5) |
Foreign Currency Translation Gains (Losses) [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (189.7) | (123.2) | (130.4) |
OCI before reclassifications | (14.1) | (66.5) | 7.2 |
Amounts reclassified from AOCI to earnings | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (14.1) | (66.5) | 7.2 |
Ending balance | (203.8) | (189.7) | (123.2) |
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 9 | 4.6 | 18 |
OCI before reclassifications | 15.6 | 7.7 | (3) |
Amounts reclassified from AOCI to earnings | (20.5) | (3.3) | (10.4) |
Other comprehensive income (loss), net of tax | (4.9) | 4.4 | (13.4) |
Ending balance | 4.1 | 9 | 4.6 |
Net Unrealized Gains (Losses) on Defined Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0.4 | (2.2) | (5.8) |
OCI before reclassifications | 3.7 | 2.2 | 3.3 |
Amounts reclassified from AOCI to earnings | (0.4) | 0.4 | 0.3 |
Other comprehensive income (loss), net of tax | 3.3 | 2.6 | 3.6 |
Ending balance | 3.7 | 0.4 | (2.2) |
AOCI [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (180.3) | (120.8) | (118.2) |
Other comprehensive income (loss), net of tax | (15.7) | (59.5) | (2.6) |
Ending balance | $ (196) | $ (180.3) | $ (120.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other income (expense), net | $ (4.1) | $ 4.7 | $ 7.6 |
Income tax benefit (provision) | (169.2) | (154.5) | (46.3) |
Net income (loss) | 522.7 | 600.1 | (121.1) |
Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax benefit (provision) | (3.3) | (0.5) | (1.9) |
Net income (loss) | 20.5 | 3.3 | 10.4 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of goods sold - cash flow hedge impact | 23.8 | 3.8 | 12.6 |
Other income (expense), net | $ 0 | $ 0 | $ (0.3) |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Summary of the total compensation expense and the associated income tax benefits recognized related to stock-based compensation arrangements | |||
Compensation expense | $ 75.5 | $ 81.7 | $ 72.7 |
Income tax benefit | (12.6) | (13) | (12.4) |
Fiscal 2021 Strategic Realignment Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash charges | 7.2 | 23.3 | 77.7 |
Accelerated stock-based compensation expense [Member] | Fiscal 2021 Strategic Realignment Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash charges | $ 0 | $ 2 | $ 0 |
Stock-based Compensation (Det_2
Stock-based Compensation (Details 1) - Service-based Restricted Stock Units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Number of Shares | |||
Nonvested, beginning balance | 1,566 | ||
Granted | 668 | ||
Vested | (579) | ||
Forfeited | (70) | ||
Nonvested, ending balance | 1,585 | 1,566 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, weighted average grant date fair value, Beginning Balance | $ 87.07 | ||
Granted, weighted-average grant date fair value | 92.07 | $ 117.33 | $ 64.55 |
Vested, weighted average grant date fair value | 88.40 | ||
Forfeited, weighted average grant date fair value | 95.58 | ||
Nonvested, weighted average grant date fair value, Ending Balance | $ 88.32 | $ 87.07 | |
Unrecognized compensation expenses related to nonvested restricted stock and nonvested restricted stock units granted | $ 41.2 | ||
Unrecognized compensation expenses related to nonvested restricted stock and restricted stock units granted, weighted average recognition period | 1 year 2 months 12 days |
Stock-based Compensation (Det_3
Stock-based Compensation (Details 2) - Service-based Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, weighted-average grant date fair value | $ 92.07 | $ 117.33 | $ 64.55 |
Total fair value of awards vested | $ 56.7 | $ 79.5 | $ 33.4 |
Stock-based Compensation (Det_4
Stock-based Compensation (Details 3) - Market-based restricted stock units [Member] - $ / shares | 12 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 49.90% | 46.80% |
Expected dividend yield | 3% | 2.20% |
Risk-free interest rate | 3.10% | 0.40% |
Granted, weighted-average grant date fair value | $ 124.62 | $ 146.46 |
Stock-based Compensation (Det_5
Stock-based Compensation (Details 4) - Performance-based restricted stock units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Number of Shares | ||
Nonvested, beginning balance | 542 | |
Granted | 261 | |
Change due to performance condition achievement | (58) | |
Vested | (269) | |
Forfeited | (7) | |
Nonvested, ending balance | 469 | 542 |
Weighted Average Grant Date Fair Value | ||
Nonvested, weighted average grant date fair value, Beginning Balance | $ 104.29 | |
Granted, weighted-average grant date fair value | 106.58 | $ 129.56 |
Change due to performance condition achievement, weighted average grant date fair value | 88.03 | |
Vested, weighted average grant date fair value | 86.94 | |
Forfeited, weighted average grant date fair value | 120.14 | |
Nonvested, weighted average grant date fair value, Ending Balance | $ 117.35 | $ 104.29 |
Unrecognized compensation expenses related to nonvested restricted stock and nonvested restricted stock units granted | $ 25.8 | |
Unrecognized compensation expenses related to nonvested restricted stock and restricted stock units granted, weighted average recognition period | 1 year 7 months 6 days |
Stock-based Compensation (Det_6
Stock-based Compensation (Details 5) - Performance-based restricted stock units [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, weighted-average grant date fair value | $ 106.58 | $ 129.56 | |
Total fair value of awards vested | $ 26.8 | $ 27.6 | $ 55 |
Stock-based Compensation (Det_7
Stock-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | Mar. 28, 2020 | Aug. 01, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future issuance | 2,800 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||
Service-based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized compensation expenses related to nonvested stock options granted | $ 41.2 | ||||
Unrecognized compensation expenses related to nonvested stock options granted, weighted average recognition period | 1 year 2 months 12 days | ||||
Performance-based restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Period | 3 years | ||||
Unrecognized compensation expenses related to nonvested stock options granted | $ 25.8 | ||||
Unrecognized compensation expenses related to nonvested stock options granted, weighted average recognition period | 1 year 7 months 6 days | ||||
Performance-based restricted stock units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | ||||
Performance-based restricted stock units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | ||||
Market-based restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Market-based restricted stock units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | ||||
Market-based restricted stock units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Stock options expiration period | 7 years | ||||
2019 Long-Term Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,200 | ||||
2010 Long-Term Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Maximum amount of employee contributions eligible for the Company's discretionary match | 6% | ||
Required service period for participants to become fully vested | 5 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 8.3 | $ 12.9 | $ 9.8 |
Defined benefit plans, net assets (liabilities) | 8.2 | 2.5 | |
Aggregate projected benefit obligations | 44.5 | 46.1 | |
Aggregate fair value of plan assets | 52.7 | 48.6 | |
Total defined benefit plan expense | 3.9 | 4.6 | 5.1 |
Defined benefit plan expense - service cost | $ 4.2 | $ 4.8 | $ 5.9 |
Above target performance - minimum match | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 67% | ||
Above target performance - maximum match | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Net revenues by segment | |||
Total net revenues | $ 6,443.6 | $ 6,218.5 | $ 4,400.8 |
North America Segment [Member] | |||
Net revenues by segment | |||
Total net revenues | 3,020.5 | 2,968.2 | 1,992.4 |
Europe Segment [Member] | |||
Net revenues by segment | |||
Total net revenues | 1,839.2 | 1,780.7 | 1,165.9 |
Asia Segment [Member] | |||
Net revenues by segment | |||
Total net revenues | 1,426.7 | 1,286.8 | 1,027.5 |
Other non-reportable segments [Member] | |||
Net revenues by segment | |||
Total net revenues | $ 157.2 | $ 182.8 | $ 215 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Operating income (loss) by segment | |||
Operating income (loss) | $ 704.2 | $ 798.4 | $ (43.6) |
Restructuring and other charges, net | (43) | (22.2) | (170.5) |
Bad debt expense | (2.3) | 2.2 | 27.6 |
Unallocated charges [Member] | |||
Operating income (loss) by segment | |||
Unallocated corporate expenses | (638.5) | (667.3) | (577) |
Restructuring and other charges, net | (43) | (22.2) | (170.5) |
North America Segment [Member] | |||
Operating income (loss) by segment | |||
Operating income (loss) | 543.2 | 676.7 | 334 |
Bad debt expense | 22 | ||
Europe Segment [Member] | |||
Operating income (loss) by segment | |||
Operating income (loss) | 406.5 | 444 | 189.3 |
Bad debt expense | 4.8 | ||
Asia Segment [Member] | |||
Operating income (loss) by segment | |||
Operating income (loss) | 289.6 | 228.8 | 148.2 |
Bad debt expense | 0.3 | ||
Other non-reportable segments [Member] | |||
Operating income (loss) by segment | |||
Operating income (loss) | 146.4 | 138.4 | 32.4 |
Bad debt expense | 0.5 | ||
Total Operating Segments | |||
Operating income (loss) by segment | |||
Operating income (loss) | $ 1,385.7 | $ 1,487.9 | $ 703.9 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | $ (9.7) | $ (21.3) | $ (96) |
Unallocated corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | (0.2) | (17.5) | (39.9) |
North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | (9.5) | (2.4) | (12.2) |
Europe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | 0 | 0 | (24.3) |
Asia Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | 0 | (1.1) | (1.4) |
Other non-reportable segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | $ 0 | $ (0.3) | $ (18.2) |
Segment Information (Details 3)
Segment Information (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | $ (19.2) | $ (4) | $ (159.1) |
Other Charges | (23.8) | (18.2) | (11.4) |
Restructuring and other charges, net | (43) | (22.2) | (170.5) |
North America-Related [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | (0.4) | 0.1 | (22.4) |
Europe-Related [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | (2.7) | 2.1 | (30) |
Asia-Related [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | (1.3) | 2.8 | (7.4) |
Other Non-Reportable Segment-Related [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | 0 | (0.1) | (3.3) |
Corporate-Related [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Unallocated restructuring charges | $ (14.8) | $ (8.9) | $ (96) |
Segment Information (Details 4)
Segment Information (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 220.5 | $ 229.7 | $ 247.6 |
North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 74.3 | 72.8 | 73.4 |
Europe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 32 | 32.3 | 31.6 |
Asia Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 48.3 | 51.9 | 56.3 |
Other non-reportable segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 0 | 0.4 | 4.3 |
Unallocated Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 65.9 | $ 72.3 | $ 82 |
Segment Information (Details 5)
Segment Information (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 217.5 | $ 166.9 | $ 107.8 |
North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 73.5 | 36.6 | 23.8 |
Europe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 34.3 | 39 | 16.9 |
Asia Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 68.4 | 49.1 | 41.2 |
Other non-reportable segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 0 | 1.8 | 2.4 |
Unallocated Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 41.3 | $ 40.4 | $ 23.5 |
Segment Information (Details 6)
Segment Information (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 2,089.5 | $ 2,080.8 | |
Total net revenues | 6,443.6 | 6,218.5 | $ 4,400.8 |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,121.5 | 1,068.9 | |
Total net revenues | 3,201.1 | 3,164.5 | 2,208.4 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 612.7 | 698.2 | |
Total net revenues | 1,815.9 | 1,766.1 | 1,164.3 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 355.3 | 313.7 | |
Total net revenues | 1,426.6 | 1,287.9 | 1,028.1 |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,106 | 1,057 | |
Total net revenues | $ 3,055 | $ 3,039 | $ 2,103 |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended |
Apr. 01, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Additional Financial Informat_3
Additional Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Mar. 27, 2021 | Mar. 28, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and Cash Equivalents | $ 1,529.3 | $ 1,863.8 | ||
Restricted cash, current | 1.5 | 1.6 | ||
Restricted cash, noncurrent | 6.1 | 6.6 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,536.9 | 1,872 | $ 2,588 | $ 1,629.8 |
Cash Paid for Interest and Taxes | ||||
Cash paid for interest | 39.9 | 46.6 | 33.5 | |
Cash paid for income taxes | 160.2 | 216.3 | 47.8 | |
Additional Financial Information (Textual) [Abstract] | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 342.2 | 287.4 | 66.7 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 0.4 | 0 | 133.2 | |
Right-of-Use Asset Reclassified from Operating to Finance Lease | 55.7 | |||
Capital expenditures incurred but not yet paid | $ 37.2 | $ 49.6 | $ 21.3 |