Document
false--03-28Q3202000010370381922000002015000000.5820.2180.1610.0544.2580.010.010.010.011029000002590000010480000024900000522000002590000048800000249000000.00750.0050.010.210.210.2100000The 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.0.0006505070000056000000 0001037038 2019-03-31 2019-12-28 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2019-03-31 2019-12-28 0001037038 us-gaap:AllowanceForCreditLossMember 2019-03-31 2019-12-28 0001037038 us-gaap:CommonClassAMember 2020-01-31 0001037038 us-gaap:CommonClassBMember 2020-01-31 0001037038 2019-12-28 0001037038 2019-03-30 0001037038 us-gaap:CommonClassAMember 2019-12-28 0001037038 us-gaap:CommonClassBMember 2019-12-28 0001037038 us-gaap:CommonClassAMember 2019-03-30 0001037038 us-gaap:CommonClassBMember 2019-03-30 0001037038 2018-09-30 2018-12-29 0001037038 2018-04-01 2018-12-29 0001037038 2019-09-29 2019-12-28 0001037038 2018-12-29 0001037038 2018-03-31 0001037038 us-gaap:AdditionalPaidInCapitalMember 2019-12-28 0001037038 us-gaap:CommonStockMember 2019-12-28 0001037038 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-12-29 0001037038 us-gaap:CommonStockMember 2018-12-29 0001037038 us-gaap:AdditionalPaidInCapitalMember 2018-12-29 0001037038 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-12-28 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-28 0001037038 us-gaap:RetainedEarningsMember 2018-03-31 0001037038 us-gaap:RetainedEarningsMember 2019-03-31 2019-12-28 0001037038 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001037038 us-gaap:TreasuryStockMember 2018-12-29 0001037038 us-gaap:TreasuryStockMember 2019-12-28 0001037038 us-gaap:CommonStockMember 2019-03-31 2019-12-28 0001037038 us-gaap:TreasuryStockMember 2019-03-31 2019-12-28 0001037038 us-gaap:TreasuryStockMember 2018-03-31 0001037038 us-gaap:CommonStockMember 2018-04-01 2018-12-29 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-29 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001037038 us-gaap:RetainedEarningsMember 2018-04-01 2018-12-29 0001037038 us-gaap:TreasuryStockMember 2019-03-30 0001037038 us-gaap:CommonStockMember 2019-03-30 0001037038 us-gaap:TreasuryStockMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetainedEarningsMember 2018-12-29 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-12-29 0001037038 us-gaap:CommonStockMember 2018-03-31 0001037038 us-gaap:RetainedEarningsMember 2019-12-28 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-12-28 0001037038 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0001037038 us-gaap:RetainedEarningsMember 2019-03-30 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0001037038 us-gaap:RetainedEarningsMember 2018-09-30 2018-12-29 0001037038 us-gaap:AdditionalPaidInCapitalMember 2019-09-28 0001037038 us-gaap:TreasuryStockMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetainedEarningsMember 2019-09-29 2019-12-28 0001037038 us-gaap:CommonStockMember 2019-09-28 0001037038 us-gaap:AdditionalPaidInCapitalMember 2018-09-29 0001037038 2018-09-29 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-29 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 2018-12-29 0001037038 2019-09-28 0001037038 us-gaap:RetainedEarningsMember 2019-09-28 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-28 0001037038 us-gaap:TreasuryStockMember 2018-09-29 0001037038 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 2018-12-29 0001037038 us-gaap:AdditionalPaidInCapitalMember 2019-09-29 2019-12-28 0001037038 us-gaap:CommonStockMember 2018-09-29 0001037038 us-gaap:TreasuryStockMember 2019-09-28 0001037038 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetainedEarningsMember 2018-09-29 0001037038 us-gaap:TreasuryStockMember 2018-09-30 2018-12-29 0001037038 srt:MinimumMember 2019-12-28 0001037038 us-gaap:SalesRevenueNetMember 2018-04-01 2019-03-30 0001037038 srt:MaximumMember 2019-12-28 0001037038 us-gaap:AccountsReceivableMember 2019-03-31 2019-12-28 0001037038 us-gaap:AllowanceForCreditLossMember 2019-09-29 2019-12-28 0001037038 us-gaap:AllowanceForCreditLossMember 2018-04-01 2018-12-29 0001037038 us-gaap:AllowanceForCreditLossMember 2019-09-28 0001037038 us-gaap:AllowanceForCreditLossMember 2019-12-28 0001037038 us-gaap:AllowanceForCreditLossMember 2018-09-30 2018-12-29 0001037038 us-gaap:AllowanceForCreditLossMember 2019-03-30 0001037038 us-gaap:AllowanceForCreditLossMember 2018-12-29 0001037038 us-gaap:AllowanceForCreditLossMember 2018-09-29 0001037038 us-gaap:AllowanceForCreditLossMember 2018-03-31 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2019-12-28 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2018-03-31 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2019-09-28 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2019-03-30 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2018-09-30 2018-12-29 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2018-12-29 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2019-09-29 2019-12-28 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2018-04-01 2018-12-29 0001037038 us-gaap:SalesReturnsAndAllowancesMember 2018-09-29 0001037038 us-gaap:LicensingAgreementsMember rl:EuropeSegmentMember us-gaap:TransferredOverTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:AsiaSegmentMember us-gaap:TransferredOverTimeMember 2018-09-30 2018-12-29 0001037038 rl:WholesaleMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:AsiaSegmentMember 2018-09-30 2018-12-29 0001037038 rl:OtherNonReportableSegmentRelatedMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredOverTimeMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:NorthAmericaSegmentMember us-gaap:TransferredOverTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:NorthAmericaSegmentMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredOverTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:RetailMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 rl:OtherNonReportableSegmentRelatedMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:RetailMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember us-gaap:TransferredOverTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:NorthAmericaSegmentMember us-gaap:TransferredOverTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:RetailMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 rl:AsiaSegmentMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember us-gaap:TransferredOverTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:RetailMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 rl:EuropeSegmentMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:WholesaleMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:WholesaleMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:WholesaleMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 us-gaap:RetailMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:AsiaSegmentMember us-gaap:TransferredOverTimeMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-09-29 2019-12-28 0001037038 rl:WholesaleMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-09-30 2018-12-29 0001037038 rl:NorthAmericaSegmentMember 2019-09-29 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:EuropeSegmentMember us-gaap:TransferredOverTimeMember 2018-09-30 2018-12-29 0001037038 rl:EuropeSegmentMember 2018-09-30 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:AsiaSegmentMember us-gaap:TransferredOverTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:RetailMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 rl:OtherNonReportableSegmentRelatedMember 2019-03-31 2019-12-28 0001037038 rl:EuropeSegmentMember 2019-03-31 2019-12-28 0001037038 rl:WholesaleMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 rl:WholesaleMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:EuropeSegmentMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:RetailMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:AsiaSegmentMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 rl:NorthAmericaSegmentMember 2019-03-31 2019-12-28 0001037038 us-gaap:RetailMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember us-gaap:TransferredOverTimeMember 2019-03-31 2019-12-28 0001037038 rl:WholesaleMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:NorthAmericaSegmentMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:NorthAmericaSegmentMember us-gaap:TransferredOverTimeMember 2019-03-31 2019-12-28 0001037038 rl:AsiaSegmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 us-gaap:LicensingAgreementsMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredOverTimeMember 2019-03-31 2019-12-28 0001037038 rl:NorthAmericaSegmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 rl:WholesaleMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 rl:OtherNonReportableSegmentRelatedMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember rl:AsiaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember rl:EuropeSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 rl:WholesaleMember rl:NorthAmericaSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-12-29 0001037038 us-gaap:RetailMember rl:OtherNonReportableSegmentRelatedMember us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-12-28 0001037038 rl:EuropeSegmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:LicensingAgreementsMember rl:EuropeSegmentMember us-gaap:TransferredOverTimeMember 2019-03-31 2019-12-28 0001037038 rl:AsiaSegmentMember 2019-03-31 2019-12-28 0001037038 us-gaap:AccountingStandardsUpdate201602Member rl:CertainrealestateleaseMember 2019-03-31 0001037038 us-gaap:AccountingStandardsUpdate201602Member 2019-03-31 0001037038 us-gaap:AccountingStandardsUpdate201602Member rl:UnderperformingretaillocationsMember 2019-03-31 0001037038 rl:AccountingStandardsUpdate201802Member 2019-03-31 0001037038 2019-03-31 2019-06-29 0001037038 rl:RestructuringPlanRelatedMember 2019-03-31 2019-12-28 0001037038 rl:OthernonrestructuringrelatedMember 2019-09-29 2019-12-28 0001037038 rl:OthernonrestructuringrelatedMember 2018-04-01 2018-12-29 0001037038 rl:OthernonrestructuringrelatedMember 2018-09-30 2018-12-29 0001037038 rl:RestructuringPlanRelatedMember 2019-09-29 2019-12-28 0001037038 rl:RestructuringPlanRelatedMember 2018-04-01 2018-12-29 0001037038 rl:RestructuringPlanRelatedMember 2018-09-30 2018-12-29 0001037038 rl:OthernonrestructuringrelatedMember 2019-03-31 2019-12-28 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2019-03-30 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2019-03-30 0001037038 rl:Fiscal2019RestructuringPlanMember 2019-03-30 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2019-03-30 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:OtherRestructuringPlansMember 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:OtherRestructuringPlansMember 2019-03-30 0001037038 us-gaap:FacilityClosingMember rl:OtherRestructuringPlansMember 2019-03-31 2019-12-28 0001037038 rl:OtherRestructuringPlansMember 2019-03-30 0001037038 us-gaap:EmployeeSeveranceMember rl:OtherRestructuringPlansMember 2019-03-31 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:OtherRestructuringPlansMember 2019-03-30 0001037038 us-gaap:OtherRestructuringMember rl:OtherRestructuringPlansMember 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:OtherRestructuringPlansMember 2019-03-31 2019-12-28 0001037038 us-gaap:FacilityClosingMember rl:OtherRestructuringPlansMember 2019-12-28 0001037038 rl:OtherRestructuringPlansMember 2019-03-31 2019-12-28 0001037038 us-gaap:FacilityClosingMember rl:OtherRestructuringPlansMember 2019-03-30 0001037038 rl:OtherRestructuringPlansMember 2019-12-28 0001037038 rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 us-gaap:InventoriesMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 us-gaap:InventoriesMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 rl:AcceleratedstockbasedcompensationexpenseMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 us-gaap:InventoriesMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:InventoriesMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 rl:ImpairmentofAssetsMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 rl:AcceleratedstockbasedcompensationexpenseMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 rl:LossonsaleofpropertyMember rl:Fiscal2019RestructuringPlanMember 2019-03-31 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 rl:LossonsaleofpropertyMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 rl:LossonsaleofpropertyMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 rl:LossonsaleofpropertyMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 rl:LossonsaleofpropertyMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 rl:RestrictedStockAndServiceBasedRestrictedStockUnitsMember 2019-03-31 2019-12-28 0001037038 rl:TSRSharesMember 2019-03-31 2019-12-28 0001037038 us-gaap:PerformanceSharesMember 2019-03-31 2019-12-28 0001037038 rl:AcceleratedstockbasedcompensationexpenseMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 rl:AcceleratedstockbasedcompensationexpenseMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 us-gaap:OtherRestructuringMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 rl:AcceleratedstockbasedcompensationexpenseMember rl:Fiscal2019RestructuringPlanMember 2018-04-01 2018-12-29 0001037038 us-gaap:FacilityClosingMember rl:Fiscal2019RestructuringPlanMember 2019-09-29 2019-12-28 0001037038 us-gaap:InventoriesMember rl:Fiscal2019RestructuringPlanMember 2018-09-30 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 srt:MinimumMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 srt:MaximumMember rl:NoncashchargesMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 srt:MaximumMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 rl:ChargesprimarilyrelatedtorentandoccupancycostsassociatedwithpreviouslyexitedrealestatelocationsMember 2019-09-29 2019-12-28 0001037038 rl:PrimarilyrelatedtoCustomsAuditMember 2018-04-01 2018-12-29 0001037038 srt:MinimumMember rl:NoncashchargesMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 srt:MaximumMember us-gaap:RestructuringChargesMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 srt:MinimumMember us-gaap:RestructuringChargesMember rl:Fiscal2019RestructuringPlanMember 2019-12-28 0001037038 rl:Depreciationexpenseassociatedwith711FifthAvenueMember 2018-09-30 2018-12-29 0001037038 rl:CorporateJetDonationMember 2019-03-31 2019-12-28 0001037038 rl:Depreciationexpenseassociatedwith711FifthAvenueMember 2018-04-01 2018-12-29 0001037038 rl:ChargesprimarilyrelatedtorentandoccupancycostsassociatedwithpreviouslyexitedrealestatelocationsMember 2019-03-31 2019-12-28 0001037038 us-gaap:EmployeeSeveranceMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 rl:OthernoncashchargesMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 us-gaap:InventoriesMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 us-gaap:FacilityClosingMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 us-gaap:InventoriesMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 rl:OthernoncashchargesMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 us-gaap:OtherRestructuringMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 us-gaap:FacilityClosingMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 us-gaap:OtherRestructuringMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 us-gaap:EmployeeSeveranceMember rl:OtherRestructuringPlansMember 2018-09-30 2018-12-29 0001037038 rl:ImpairmentofAssetsMember rl:OtherRestructuringPlansMember 2018-04-01 2018-12-29 0001037038 2018-07-01 2018-09-29 0001037038 rl:A3.750SeniorNotesMemberMember 2019-03-30 0001037038 rl:A2.625SeniorNotesMember 2019-12-28 0001037038 rl:A3.750SeniorNotesMemberMember 2019-12-28 0001037038 rl:A2.625SeniorNotesMember 2019-03-30 0001037038 rl:SouthKoreaCreditFacilityMember 2019-12-28 0001037038 rl:PanAsiaCreditFacilitiesMember 2019-12-28 0001037038 rl:ChineseCreditFacilityMember 2019-03-31 2019-12-28 0001037038 us-gaap:CommercialPaperMember 2019-12-28 0001037038 rl:A2.125SeniorNotesMember 2018-09-26 2018-09-26 0001037038 rl:GlobalCreditFacilityMember 2019-03-31 2019-12-28 0001037038 rl:GlobalCreditFacilityMember 2019-12-28 0001037038 us-gaap:SeniorNotesMember 2019-03-31 2019-12-28 0001037038 rl:A2.125SeniorNotesMember 2018-09-26 0001037038 rl:ChineseCreditFacilityMember 2019-12-28 0001037038 rl:A3.750SeniorNotesMemberMember 2019-03-31 2019-12-28 0001037038 rl:A2.625SeniorNotesMember 2019-03-31 2019-12-28 0001037038 rl:SouthKoreaCreditFacilityMember 2019-03-31 2019-12-28 0001037038 srt:MaximumMember us-gaap:CommercialPaperMember 2019-03-31 2019-12-28 0001037038 rl:GlobalCreditFacilityMember rl:AdjustedLondonInterbankOfferedRateMember 2019-03-31 2019-12-28 0001037038 rl:GlobalCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-03-31 2019-12-28 0001037038 rl:GlobalCreditFacilityMember rl:WeightedAverageOvernightFederalFundsRateMember 2019-03-31 2019-12-28 0001037038 us-gaap:FairValueInputsLevel2Member rl:A2.625SeniorNotesMember 2019-12-28 0001037038 us-gaap:FairValueInputsLevel2Member rl:A3.750SeniorNotesMemberMember 2019-03-30 0001037038 us-gaap:FairValueInputsLevel2Member rl:A3.750SeniorNotesMemberMember 2019-12-28 0001037038 us-gaap:FairValueInputsLevel2Member rl:A2.625SeniorNotesMember 2019-03-30 0001037038 us-gaap:PropertyPlantAndEquipmentMember 2019-09-29 2019-12-28 0001037038 rl:OperatingLeaseRightofUseAssetMember 2019-09-29 2019-12-28 0001037038 us-gaap:PropertyPlantAndEquipmentMember 2018-09-30 2018-12-29 0001037038 us-gaap:PropertyPlantAndEquipmentMember 2019-03-31 2019-12-28 0001037038 rl:OperatingLeaseRightofUseAssetMember 2019-03-31 2019-12-28 0001037038 us-gaap:PropertyPlantAndEquipmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-03-30 0001037038 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0001037038 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-03-30 0001037038 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0001037038 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-03-30 0001037038 us-gaap:AccountingStandardsUpdate201602Member 2019-03-31 2019-12-28 0001037038 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-03-30 0001037038 us-gaap:AccountingStandardsUpdate201602Member rl:OperatingLeaseRightofUseAssetMember 2019-03-31 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-28 0001037038 us-gaap:OtherNoncurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-03-30 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-03-30 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-03-30 0001037038 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-28 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 rl:AccruedExpensesandOtherCurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-28 0001037038 us-gaap:OtherNoncurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-30 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-12-29 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-09-30 2018-12-29 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-09-29 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-29 2019-12-28 0001037038 rl:PortionexcludedfromassessmentofhedgeeffectivenessMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-12-29 0001037038 rl:PortionexcludedfromassessmentofhedgeeffectivenessMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 2018-12-29 0001037038 rl:PortionexcludedfromassessmentofhedgeeffectivenessMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-29 2019-12-28 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 2018-12-29 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-29 2019-12-28 0001037038 rl:EffectiveportionMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 2018-12-29 0001037038 rl:PortionexcludedfromassessmentofhedgeeffectivenessMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-12-29 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 2018-12-29 0001037038 us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-12-29 0001037038 rl:EffectiveportionMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-12-29 0001037038 rl:EffectiveportionMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-29 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 2019-12-28 0001037038 rl:EffectiveportionMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 2019-12-28 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 2019-12-28 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-12-29 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-29 2019-12-28 0001037038 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 2018-12-29 0001037038 rl:InterestRateSwap2.625SeniorNotesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 rl:CrossCurrencySwap2.625SeniorNotesMember 2019-03-31 2019-12-28 0001037038 us-gaap:CommercialPaperMember 2019-03-30 0001037038 srt:MaximumMember us-gaap:ForeignExchangeForwardMember 2019-03-31 2019-12-28 0001037038 rl:CrossCurrencySwap3.750SeniorNotesMember 2019-12-28 0001037038 rl:CrossCurrencySwap2.625SeniorNotesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 rl:CrossCurrencySwap3.750SeniorNotesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 srt:MinimumMember us-gaap:ForeignExchangeForwardMember 2019-03-31 2019-12-28 0001037038 us-gaap:BankTimeDepositsMember 2019-12-28 0001037038 rl:CrossCurrencySwap3.750SeniorNotesMember 2019-03-31 2019-12-28 0001037038 us-gaap:CommercialPaperMember 2019-12-28 0001037038 us-gaap:BankTimeDepositsMember 2019-03-30 0001037038 rl:InterestRateSwap2.625SeniorNotesMember 2019-03-31 2019-12-28 0001037038 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember 2018-09-30 2018-12-29 0001037038 us-gaap:ForeignExchangeForwardMember 2019-03-31 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember 2019-09-29 2019-12-28 0001037038 us-gaap:ForeignExchangeForwardMember 2018-04-01 2018-12-29 0001037038 us-gaap:InterestRateSwapMember 2019-03-31 2019-12-28 0001037038 us-gaap:InterestRateSwapMember 2018-09-30 2018-12-29 0001037038 us-gaap:InterestRateSwapMember 2018-04-01 2018-12-29 0001037038 us-gaap:InterestRateSwapMember 2019-09-29 2019-12-28 0001037038 us-gaap:CostOfGoodsTotalMember 2019-09-29 2019-12-28 0001037038 us-gaap:RestructuringChargesMember 2019-09-29 2019-12-28 0001037038 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-09-29 2019-12-28 0001037038 us-gaap:RestructuringChargesMember 2019-03-31 2019-12-28 0001037038 us-gaap:CostOfGoodsTotalMember 2019-03-31 2019-12-28 0001037038 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-03-31 2019-12-28 0001037038 us-gaap:InterestExpenseMember 2019-09-29 2019-12-28 0001037038 us-gaap:InterestExpenseMember 2019-03-31 2019-12-28 0001037038 rl:WithholdingInSatisfactionOfTaxesOnVestedEquityAwardMember 2019-03-31 2019-12-28 0001037038 rl:WithholdingInSatisfactionOfTaxesOnVestedEquityAwardMember 2018-04-01 2018-12-29 0001037038 rl:GeneralRepurchaseProgramMember 2019-03-31 2019-12-28 0001037038 rl:GeneralRepurchaseProgramMember 2018-04-01 2018-12-29 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-30 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-31 2019-12-28 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-04-01 2018-12-29 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 2019-12-28 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-31 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-29 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-03-31 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-30 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 2019-12-28 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-12-29 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-30 0001037038 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-28 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-28 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-29 0001037038 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-12-28 0001037038 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-29 0001037038 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-09-29 2019-12-28 0001037038 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-09-30 2018-12-29 0001037038 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-12-28 0001037038 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-12-29 0001037038 rl:TSRSharesMember 2018-04-01 2018-12-29 0001037038 us-gaap:PerformanceSharesMember 2019-12-28 0001037038 us-gaap:PerformanceSharesMember 2019-03-30 0001037038 us-gaap:RestrictedStockMember 2019-12-28 0001037038 us-gaap:RestrictedStockUnitsRSUMember 2019-03-31 2019-12-28 0001037038 us-gaap:RestrictedStockMember 2019-03-31 2019-12-28 0001037038 us-gaap:RestrictedStockUnitsRSUMember 2019-03-30 0001037038 us-gaap:RestrictedStockUnitsRSUMember 2019-12-28 0001037038 us-gaap:RestrictedStockMember 2019-03-30 0001037038 rl:TSRSharesMember 2019-12-28 0001037038 rl:TSRSharesMember 2019-03-30 0001037038 us-gaap:PerformanceSharesMember 2018-04-01 2018-12-29 0001037038 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-12-29 0001037038 rl:A2019LongTermStockIncentivePlanMember 2019-03-31 2019-12-28 0001037038 rl:A2010LongTermStockIncentivePlanMember 2019-08-01 0001037038 us-gaap:RestrictedStockMember 2018-04-01 2018-12-29 0001037038 rl:AsiaRelatedMember 2018-09-30 2018-12-29 0001037038 rl:AsiaRelatedMember 2019-09-29 2019-12-28 0001037038 rl:AsiaRelatedMember 2018-04-01 2018-12-29 0001037038 rl:CorporateRelatedMember 2018-04-01 2018-12-29 0001037038 rl:EuropeRelatedMember 2019-03-31 2019-12-28 0001037038 rl:CorporateRelatedMember 2019-09-29 2019-12-28 0001037038 rl:EuropeRelatedMember 2018-04-01 2018-12-29 0001037038 rl:NorthAmericaRelatedMember 2018-09-30 2018-12-29 0001037038 rl:CorporateRelatedMember 2019-03-31 2019-12-28 0001037038 rl:NorthAmericaRelatedMember 2019-09-29 2019-12-28 0001037038 rl:EuropeRelatedMember 2018-09-30 2018-12-29 0001037038 rl:AsiaRelatedMember 2019-03-31 2019-12-28 0001037038 rl:CorporateRelatedMember 2018-09-30 2018-12-29 0001037038 rl:NorthAmericaRelatedMember 2019-03-31 2019-12-28 0001037038 rl:EuropeRelatedMember 2019-09-29 2019-12-28 0001037038 rl:NorthAmericaRelatedMember 2018-04-01 2018-12-29 0001037038 us-gaap:AllOtherSegmentsMember 2018-09-30 2018-12-29 0001037038 us-gaap:AllOtherSegmentsMember 2019-09-29 2019-12-28 0001037038 us-gaap:AllOtherSegmentsMember 2019-03-31 2019-12-28 0001037038 us-gaap:AllOtherSegmentsMember 2018-04-01 2018-12-29 0001037038 rl:UnallocatedrestructuringandotherchargesMember 2019-09-29 2019-12-28 0001037038 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-12-29 0001037038 us-gaap:MaterialReconcilingItemsMember 2018-09-30 2018-12-29 0001037038 rl:UnallocatedrestructuringandotherchargesMember 2019-03-31 2019-12-28 0001037038 rl:UnallocatedrestructuringandotherchargesMember 2018-09-30 2018-12-29 0001037038 rl:UnallocatedrestructuringandotherchargesMember 2018-04-01 2018-12-29 0001037038 us-gaap:MaterialReconcilingItemsMember 2019-09-29 2019-12-28 0001037038 us-gaap:MaterialReconcilingItemsMember 2019-03-31 2019-12-28 0001037038 us-gaap:OperatingSegmentsMember 2018-09-30 2018-12-29 0001037038 us-gaap:OperatingSegmentsMember 2019-09-29 2019-12-28 0001037038 us-gaap:MaterialReconcilingItemsMember 2019-03-31 2019-12-28 0001037038 us-gaap:MaterialReconcilingItemsMember 2018-09-30 2018-12-29 0001037038 us-gaap:MaterialReconcilingItemsMember 2019-09-29 2019-12-28 0001037038 us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-29 0001037038 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-12-29 0001037038 us-gaap:OperatingSegmentsMember 2019-03-31 2019-12-28 0001037038 srt:AmericasMember 2018-09-30 2018-12-29 0001037038 srt:AmericasMember 2019-03-31 2019-12-28 0001037038 srt:EuropeMember 2019-09-29 2019-12-28 0001037038 srt:EuropeMember 2019-03-31 2019-12-28 0001037038 srt:AsiaMember 2019-09-29 2019-12-28 0001037038 srt:AsiaMember 2019-03-31 2019-12-28 0001037038 srt:AsiaMember 2018-04-01 2018-12-29 0001037038 srt:EuropeMember 2018-09-30 2018-12-29 0001037038 srt:AmericasMember 2018-04-01 2018-12-29 0001037038 srt:AmericasMember 2019-09-29 2019-12-28 0001037038 srt:EuropeMember 2018-04-01 2018-12-29 0001037038 srt:AsiaMember 2018-09-30 2018-12-29 0001037038 country:US 2019-03-31 2019-12-28 0001037038 country:US 2019-09-29 2019-12-28 0001037038 country:US 2018-04-01 2018-12-29 0001037038 country:US 2018-09-30 2018-12-29 rl:Segment iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares rl:Customer iso4217:KRW rl:counterparty iso4217:CNY iso4217:EUR rl:Quarter


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 28, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-13057
Ralph Lauren Corporation
(Exact name of registrant as specified in its charter)
Delaware
 
13-2622036
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
650 Madison Avenue,
 
10022
New York,
New York
 
(Zip Code)
(Address of principal executive offices)
 
 
(212318-7000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on which Registered
Class A Common Stock, $.01 par value
RL
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
At January 31, 2020, 48,861,815 shares of the registrant's Class A common stock, $.01 par value, and 24,881,276 shares of the registrant's Class B common stock, $.01 par value, were outstanding.






 
 


RALPH LAUREN CORPORATION
INDEX
 





1
 


RALPH LAUREN CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
December 28,
2019
 
March 30,
2019
 
 
(millions)
ASSETS
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
1,079.9

 
$
584.1

Short-term investments
 
828.5

 
1,403.4

Accounts receivable, net of allowances of $201.5 million and $192.2 million
 
349.4

 
398.1

Inventories
 
904.6

 
817.8

Income tax receivable
 
32.3

 
32.1

Prepaid expenses and other current assets
 
254.2

 
359.3

Total current assets
 
3,448.9

 
3,594.8

Property and equipment, net
 
1,028.2

 
1,039.2

Operating lease right-of-use assets
 
1,573.4

 

Deferred tax assets
 
240.6

 
67.0

Goodwill
 
917.1

 
919.6

Intangible assets, net
 
146.2

 
163.7

Other non-current assets
 
91.5

 
158.5

Total assets
 
$
7,445.9

 
$
5,942.8

LIABILITIES AND EQUITY
Current liabilities:
 
 
 
 
Current portion of long-term debt
 
$
298.1

 
$

Accounts payable
 
267.6

 
202.3

Income tax payable
 
69.1

 
29.4

Current operating lease liabilities
 
287.5

 

Accrued expenses and other current liabilities
 
853.1

 
968.4

Total current liabilities
 
1,775.4

 
1,200.1

Long-term debt
 
396.3

 
689.1

Long-term operating lease liabilities
 
1,637.5

 

Income tax payable
 
132.7

 
146.7

Non-current liability for unrecognized tax benefits
 
70.6

 
78.8

Other non-current liabilities
 
316.9

 
540.9

Commitments and contingencies (Note 14)
 

 

Total liabilities
 
4,329.4

 
2,655.6

Equity:
 
 
 
 
Class A common stock, par value $.01 per share; 104.8 million and 102.9 million shares issued; 48.8 million and 52.2 million shares outstanding
 
1.0

 
1.0

Class B common stock, par value $.01 per share; 24.9 million issued and outstanding; 25.9 million shares issued and outstanding
 
0.3

 
0.3

Additional paid-in-capital
 
2,566.7

 
2,493.8

Retained earnings
 
6,292.8

 
5,979.1

Treasury stock, Class A, at cost; 56.0 million and 50.7 million shares
 
(5,625.7
)
 
(5,083.6
)
Accumulated other comprehensive loss
 
(118.6
)
 
(103.4
)
Total equity
 
3,116.5

 
3,287.2

Total liabilities and equity
 
$
7,445.9

 
$
5,942.8

See accompanying notes.




2
 


RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 28,
2019
 
December 29,
2018
 
December 28,
2019
 
December 29,
2018
 
 
(millions, except per share data)
Net revenues
 
$
1,750.7

 
$
1,725.8

 
$
4,885.7

 
$
4,807.3

Cost of goods sold
 
(661.6
)
 
(666.3
)
 
(1,826.8
)
 
(1,822.8
)
Gross profit
 
1,089.1

 
1,059.5

 
3,058.9

 
2,984.5

Selling, general, and administrative expenses
 
(843.3
)
 
(823.4
)
 
(2,385.3
)
 
(2,358.9
)
Impairment of assets
 
(14.4
)
 
(2.2
)
 
(21.7
)
 
(13.3
)
Restructuring and other charges
 
(7.0
)
 
(40.1
)
 
(51.1
)
 
(78.4
)
Total other operating expenses, net
 
(864.7
)
 
(865.7
)
 
(2,458.1
)
 
(2,450.6
)
Operating income
 
224.4

 
193.8

 
600.8

 
533.9

Interest expense
 
(4.2
)
 
(5.2
)
 
(12.8
)
 
(15.6
)
Interest income
 
7.3

 
9.9

 
28.5

 
29.5

Other income (expense), net
 
2.9

 
1.0

 
(2.9
)
 
(0.6
)
Income before income taxes
 
230.4

 
199.5

 
613.6

 
547.2

Income tax benefit (provision)
 
103.7

 
(79.5
)
 
19.7

 
(147.9
)
Net income
 
$
334.1

 
$
120.0

 
$
633.3

 
$
399.3

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
4.47

 
$
1.50

 
$
8.28

 
$
4.92

Diluted
 
$
4.41

 
$
1.48

 
$
8.13

 
$
4.85

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
74.7

 
80.2

 
76.5

 
81.1

Diluted
 
75.8

 
81.2

 
77.9

 
82.3

Dividends declared per share
 
$
0.6875

 
$
0.625

 
$
2.0625

 
$
1.875

See accompanying notes.





3
 


RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 28,
2019
 
December 29,
2018
 
December 28,
2019
 
December 29,
2018
 
 
(millions)
Net income
 
$
334.1

 
$
120.0

 
$
633.3

 
$
399.3

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation gains (losses)
 
5.5

 
(0.3
)
 
(10.4
)
 
(37.2
)
Net gains (losses) on cash flow hedges
 
(8.6
)
 
6.8

 
(4.7
)
 
34.3

Net gains (losses) on defined benefit plans
 
(0.1
)
 

 
(0.1
)
 
0.1

Other comprehensive income (loss), net of tax
 
(3.2
)
 
6.5

 
(15.2
)
 
(2.8
)
Total comprehensive income
 
$
330.9

 
$
126.5

 
$
618.1

 
$
396.5

See accompanying notes.




4
 


RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Nine Months Ended
 
 
December 28,
2019
 
December 29,
2018
 
 
(millions)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
633.3

 
$
399.3

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization expense
 
201.0

 
212.0

Deferred income tax expense (benefit)
 
(155.7
)
 
13.7

Loss on sale of property
 

 
11.6

Non-cash stock-based compensation expense
 
72.9

 
65.3

Non-cash impairment of assets
 
21.7

 
13.3

Non-cash restructuring-related inventory charges
 
1.0

 
3.1

Other non-cash charges
 
1.6

 
7.6

Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
46.9

 
105.9

Inventories
 
(90.0
)
 
(179.3
)
Prepaid expenses and other current assets
 
(30.4
)
 
(75.7
)
Accounts payable and accrued liabilities
 
56.3

 
24.9

Income tax receivables and payables
 
16.1

 
82.7

Deferred income
 
0.6

 
(10.6
)
Other balance sheet changes
 
(27.3
)
 
9.3

Net cash provided by operating activities
 
748.0

 
683.1

Cash flows from investing activities:
 
 
 
 
Capital expenditures
 
(216.0
)
 
(149.2
)
Purchases of investments
 
(890.1
)
 
(2,627.8
)
Proceeds from sales and maturities of investments
 
1,510.3

 
1,975.2

Acquisitions and ventures
 
0.9

 
(4.5
)
Proceeds from sale of property
 
20.8

 
20.0

Settlement of net investment hedges
 

 
(23.8
)
Net cash provided by (used in) investing activities
 
425.9

 
(810.1
)
Cash flows from financing activities:
 
 
 
 
Repayments of short-term debt
 

 
(9.9
)
Proceeds from the issuance of long-term debt
 

 
398.1

Repayments of long-term debt
 

 
(300.0
)
Payments of finance lease obligations
 
(10.6
)
 
(14.8
)
Payments of dividends
 
(153.2
)
 
(141.6
)
Repurchases of common stock, including shares surrendered for tax withholdings
 
(542.1
)
 
(431.9
)
Proceeds from exercise of stock options
 

 
21.8

Other financing activities
 
(0.9
)
 
(2.8
)
Net cash used in financing activities
 
(706.8
)
 
(481.1
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
 
(4.2
)
 
(23.9
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
 
462.9

 
(632.0
)
Cash, cash equivalents, and restricted cash at beginning of period
 
626.5

 
1,355.5

Cash, cash equivalents, and restricted cash at end of period
 
$
1,089.4

 
$
723.5

See accompanying notes.




5
 


RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
 
 
Three Months Ended December 28, 2019
 
 
Common Stock(a)
 
Additional
Paid-in
Capital
 
 
 
Treasury Stock
at Cost
 
 
 
 
 
 
 
 
Retained
Earnings
 
 
 
 
Total
Equity
 
 
Shares
 
Amount
 
 
 
Shares
 
Amount
 
AOCI(b)
 
 
 
(millions)
Balance at September 28, 2019
 
129.7

 
$
1.3

 
$
2,544.6

 
$
6,009.4

 
55.1

 
$
(5,526.3
)
 
$
(115.4
)
 
$
2,913.6

Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
334.1

 
 
 
 
 
 
 
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
(3.2
)
 
 
Total comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330.9

Dividends declared
 
 
 
 
 
 
 
(50.7
)
 
 
 
 
 
 
 
(50.7
)
Repurchases of common stock
 
 
 
 
 
 
 
 
 
0.9

 
(99.4
)
 
 
 
(99.4
)
Stock-based compensation
 
 
 
 
 
22.1

 
 
 
 
 
 
 
 
 
22.1

Balance at December 28, 2019
 
129.7

 
$
1.3

 
$
2,566.7

 
$
6,292.8

 
56.0

 
$
(5,625.7
)
 
$
(118.6
)
 
$
3,116.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 29, 2018
 
 
Common Stock(a)
 
Additional
Paid-in
Capital
 
 
 
Treasury Stock
at Cost
 
 
 
 
 
 
 
 
Retained
Earnings
 
 
 
 
Total
Equity
 
 
Shares
 
Amount
 
 
 
Shares
 
Amount
 
AOCI(b)
 
 
 
(millions)
Balance at September 29, 2018
 
128.8

 
$
1.3

 
$
2,448.0

 
$
5,925.4

 
48.3

 
$
(4,804.9
)
 
$
(107.8
)
 
$
3,462.0

Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
120.0

 
 
 
 
 
 
 
 
Other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5

 
 
Total comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
126.5

Dividends declared
 
 
 
 
 
 
 
(49.1
)
 
 
 
 
 
 
 
(49.1
)
Repurchases of common stock
 
 
 
 
 
 
 
 
 
1.8

 
(208.0
)
 
 
 
(208.0
)
Stock-based compensation
 
 
 
 
 
22.5

 
 
 
 
 
 
 
 
 
22.5

Balance at December 29, 2018
 
128.8

 
$
1.3

 
$
2,470.5

 
$
5,996.3

 
50.1

 
$
(5,012.9
)
 
$
(101.3
)
 
$
3,353.9

 
(a) 
Includes Class A and Class B common stock.
(b) 
Accumulated other comprehensive income (loss).





6
 


RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY (Continued)
(Unaudited)
 
 
Nine Months Ended December 28, 2019
 
 
Common Stock(a)
 
Additional
Paid-in
Capital
 
 
 
Treasury Stock
at Cost
 
 
 
 
 
 
 
 
Retained
Earnings
 
 
 
 
Total
Equity
 
 
Shares
 
Amount
 
 
 
Shares
 
Amount
 
AOCI(b)
 
 
 
(millions)
Balance at March 30, 2019
 
128.8

 
$
1.3

 
$
2,493.8

 
$
5,979.1

 
50.7

 
$
(5,083.6
)
 
$
(103.4
)
 
$
3,287.2

Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
633.3

 
 
 
 
 
 
 
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
(15.2
)
 
 
Total comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
618.1

Dividends declared
 
 
 
 
 
 
 
(155.1
)
 
 
 
 
 
 
 
(155.1
)
Repurchases of common stock
 
 
 
 
 
 
 
 
 
5.3

 
(542.1
)
 
 
 
(542.1
)
Stock-based compensation
 
 
 
 
 
72.9

 
 
 
 
 
 
 
 
 
72.9

Shares issued pursuant to stock-based compensation plans
 
0.9

 

 

 
 
 
 
 
 
 
 
 

Cumulative adjustments from adoption of new accounting standards (see Note 4)
 
 
 
 
 
 
 
(164.5
)
 
 
 
 
 
 
 
(164.5
)
Balance at December 28, 2019
 
129.7

 
$
1.3

 
$
2,566.7

 
$
6,292.8

 
56.0

 
$
(5,625.7
)
 
$
(118.6
)
 
$
3,116.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended December 29, 2018
 
 
Common Stock(a)
 
Additional
Paid-in
Capital
 
 
 
Treasury Stock
at Cost
 
 
 
 
 
 
 
 
Retained
Earnings
 
 
 
 
Total
Equity
 
 
Shares
 
Amount
 
 
 
Shares
 
Amount
 
AOCI(b)
 
 
 
(millions)
Balance at March 31, 2018
 
127.9

 
$
1.3

 
$
2,383.4

 
$
5,752.2

 
46.6

 
$
(4,581.0
)
 
$
(98.5
)
 
$
3,457.4

Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
399.3

 
 
 
 
 
 
 
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
(2.8
)
 
 
Total comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
396.5

Dividends declared
 
 
 
 
 
 
 
(150.1
)
 
 
 
 
 
 
 
(150.1
)
Repurchases of common stock
 
 
 
 
 
 
 
 
 
3.5

 
(431.9
)
 
 
 
(431.9
)
Stock-based compensation
 
 
 
 
 
65.3

 
 
 
 
 
 
 
 
 
65.3

Shares issued pursuant to stock-based compensation plans
 
0.9

 

 
21.8

 
 
 
 
 
 
 
 
 
21.8

Cumulative adjustments from adoption of new accounting standards
 
 
 
 
 
 
 
(5.1
)
 
 
 
 
 
 
 
(5.1
)
Balance at December 29, 2018
 
128.8

 
$
1.3

 
$
2,470.5

 
$
5,996.3

 
50.1

 
$
(5,012.9
)
 
$
(101.3
)
 
$
3,353.9

 
(a) 
Includes Class A and Class B common stock. During the nine months ended December 28, 2019, 1.0 million shares of Class B common stock were converted into an equal number of shares of Class A common stock pursuant to the terms of the Class B common stock (see Note 15).
(b) 
Accumulated other comprehensive income (loss).
See accompanying notes.




7
 


RALPH LAUREN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share data and where otherwise indicated)
(Unaudited)
1.
Description of Business
Ralph Lauren Corporation ("RLC") is a global leader in the design, marketing, and distribution of premium lifestyle products, including apparel, footwear, accessories, home furnishings, fragrances, and hospitality. RLC's long-standing reputation and distinctive image have been developed across an expanding number of products, brands, sales 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, Chaps, and Club Monaco, 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 and specialty stores 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 furnishings.
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 18 for further discussion of the Company's segment reporting structure.
2.
Basis of Presentation
Interim Financial Statements
These interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") and are unaudited. In the opinion of management, these consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position, income, comprehensive income, and cash flows of the Company for the interim periods presented. In addition, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and the notes thereto have been condensed or omitted from this report as is permitted by the SEC's rules and regulations. However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.
This report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended March 30, 2019 (the "Fiscal 2019 10-K").
Basis of Consolidation
These unaudited interim consolidated financial statements present the consolidated financial position, income, comprehensive income, and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Periods
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2020 will end on March 28, 2020 and will be a 52-week period ("Fiscal 2020"). Fiscal year 2019 ended on March 30, 2019 and was also a




8
 


RALPH LAUREN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

52-week period ("Fiscal 2019"). The third quarter of Fiscal 2020 ended on December 28, 2019 and was a 13-week period. The third quarter of Fiscal 2019 ended on December 29, 2018 and was also a 13-week period.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make 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 pre-vesting forfeiture rates; reserves for restructuring activity; and accounting for business combinations, among others.
Reclassifications
Certain reclassifications have been made to prior period financial information in order to conform to the current period's presentation, including a change to the Company's segment reporting structure as further described in Note 18.
Seasonality of Business
The Company's business is typically affected by seasonal trends, with higher levels of retail sales in its second and third fiscal quarters and higher wholesale sales in its second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting its retail business and the timing of seasonal wholesale shipments. As a result of changes in its business, consumer spending patterns, and the macroeconomic environment, historical quarterly operating trends and working capital requirements may not be indicative of the Company's future performance. In addition, fluctuations in sales, operating income, and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, the Company's operating results and cash flows for the three-month and nine-month periods ended December 28, 2019 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2020.
3.
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 retail stores and concession-based shop-within-shops, 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 issued to customers by the Company are recorded as a liability until they are redeemed, 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.




9
 


RALPH LAUREN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 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 recognized as revenue ratably over the 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 December 28, 2019, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows:
 
 
Contractually-Guaranteed
Minimum Royalties(a)
 
 
(millions)
Remainder of Fiscal 2020
 
$
22.1

Fiscal 2021
 
117.3

Fiscal 2022
 
78.9

Fiscal 2023
 
43.4

Fiscal 2024 and thereafter
 
26.1

Total
 
$
287.8


 
(a) 
Amounts presented do not contemplate anticipated contract renewals or royalties earned in excess of 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 periods presented:
 
 
Three Months Ended
 
 
December 28, 2019
 
December 29, 2018
 
 
North America
 
Europe
 
Asia
 
Other
 
Total
 
North America