Segment Information

12 Months Ended

Apr. 02, 2011

Segment Information [Abstract]

Segment Information

22.   Segment Information

The Company has three reportable segments based on its business activities and organization: Wholesale, Retail and Licensing. Such segments offer a variety of products through different channels of distribution. The Wholesale segment consists of women’s, men’s and children’s apparel, accessories, home furnishings, and related products which are sold to major department stores, specialty stores, golf and pro shops and the Company’s owned and licensed retail stores in the U.S. and overseas. The Retail segment consists of the Company’s worldwide retail operations, which sell products through its full-price and factory stores, its concessions-based shop-within-shops, as well as RalphLauren.com, Rugby.com and RalphLauren.co.uk, its e-commerce websites. The stores, concessions-based shop-within-shops and websites sell products purchased from the Company’s licensees, suppliers and Wholesale segment. The Licensing segment generates revenues from royalties earned on the sale of the Company’s apparel, home and other products internationally and domestically through licensing alliances. The licensing agreements grant the licensees rights to use the Company’s various trademarks in connection with the manufacture and sale of designated products in specified geographical areas for specified periods.

The accounting policies of the Company’s segments are consistent with those described in Notes 2 and 3. Sales and transfers between segments generally are 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 operating income before restructuring charges and certain other one-time items, such as legal charges, if any. Corporate overhead expenses (exclusive of certain expenses for senior management, overall branding-related expenses and certain other corporate-related expenses) are allocated to the segments based upon specific usage or other allocation methods.

Net revenues and operating income for each of the Company’s segments are as follows:

	Fiscal Years Ended
	April 2,		April 3,		March 28,
	2011		2010		2009
	(millions)
Net revenues:
Wholesale	$	2,777.6	$	2,532.4	$	2,749.5
Retail		2,704.2		2,263.1		2,074.2
Licensing		178.5		183.4		195.2
Total net revenues	$	5,660.3	$	4,978.9	$	5,018.9

	Fiscal Years Ended
	April 2,			April 3,			March 28,
	2011			2010			2009
	(millions)
Operating income:
Wholesale(a)	$	612.3		$	585.3		$	619.9
Retail(a)		387.8			254.1			101.6
Licensing		108.3			107.4			103.6
		1,108.4			946.8			825.1
Less:
Unallocated corporate expenses(a)		(262.1	)		(229.9	)		(206.5	)
Unallocated legal and restructuring charges, net(b)		(1.2	)		(10.0	)		(23.1	)
Total operating income	$	845.1		$	706.9		$	595.5

(a)

Fiscal years presented included certain asset impairment charges. Fiscal 2011 and Fiscal 2010 included asset impairment charges of $2.5 million and $6.6 million, respectively, related to the write-down of certain long-lived assets, primarily within our Retail segment. Fiscal 2009 included asset impairment charges of $55.4 million, of which $52.0 million related to the write-down of certain Retail store assets, and $2.8 million in the Wholesale segment and $0.6 million in the Corporate office related to the write-down of certain capitalized software costs (see Note 11).

(b)

Fiscal years presented included certain unallocated restructuring charges (see Note 12) and legal-related activity (see Note 17), which are detailed below:

	Fiscal Years Ended
	April 2,			April 3,			March 28,
	2011			2010			2009
	(millions)
Restructuring reversals (charges), net:
Wholesale-related	$	(3.2	)	$	(5.4	)	$	(7.3	)
Retail-related		1.8			(2.0	)		(12.7	)
Corporate operations-related		(1.2	)		0.5			(3.6	)
Restructuring charges, net		(2.6	)		(6.9	)		(23.6	)
Legal reversals (charges), net:
California Labor Litigation settlement		1.9			(3.1	)		—
Other litigation reversals (charges)		(0.5	)		—			0.5
Legal reversals (charges), net		1.4			(3.1	)		0.5
Unallocated legal and restructuring charges, net	$	(1.2	)	$	(10.0	)	$	(23.1	)

Depreciation and amortization expense and capital expenditures for each segment are as follows:

	Fiscal Years Ended
	April 2,		April 3,		March 28,
	2011		2010		2009
	(millions)
Depreciation and amortization:
Wholesale	$	47.4	$	51.0	$	51.1
Retail		102.6		83.7		85.1
Licensing		1.3		1.7		2.4
Unallocated corporate expenses		42.8		44.8		45.8
Total depreciation and amortization	$	194.1	$	181.2	$	184.4

	Fiscal Years Ended
	April 2,		April 3,		March 28,
	2011		2010		2009
	(millions)
Capital expenditures:
Wholesale	$	34.7	$	29.2	$	31.8
Retail		157.6		125.3		114.5
Licensing		1.7		—		1.1
Corporate		61.0		46.8		37.6
Total capital expenditures	$	255.0	$	201.3	$	185.0

Total assets for each segment are as follows:

	April 2,		April 3,
	2011		2010
	(millions)
Total assets:
Wholesale	$	2,732.6	$	2,650.0
Retail		1,581.4		1,255.6
Licensing		238.1		155.7
Corporate		429.0		587.6
Total assets	$	4,981.1	$	4,648.9

Net revenues and long-lived assets by geographic location of the reporting subsidiary are as follows:

	Fiscal Years Ended
	April 2,		April 3,		March 28,
	2011		2010		2009
			(millions)
Net revenues:
United States and Canada(a)	$	3,807.8	$	3,445.4	$	3,575.0
Europe(a)		1,178.6		1,052.6		1,028.4
Asia(b)		658.0		464.1		401.2
Other regions		15.9		16.8		14.3
Total net revenues	$	5,660.3	$	4,978.9	$	5,018.9

	April 2,		April 3,
	2011		2010
	(millions)
Long-lived assets:
United States and Canada(a)	$	482.3	$	441.4
Europe(a)		179.1		166.4
Asia(b)		127.3		89.2
Other regions		0.1		0.2
Total long-lived assets	$	788.8	$	697.2

(a)	Net revenues and long-lived assets for certain of the Company’s licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license.
(b)	Includes South Korea, Japan, China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan and Thailand.