
14.	Equity

Summary of Changes in Equity


	Three Months Ended
	July 2,			July 3,
	2011			2010
	(millions)

Balance at beginning of period	$	3,304.7		$	3,116.6
Comprehensive income:
Net income attributable to PRLC		184.1			120.8
Foreign currency translation adjustments		40.7			(61.2	)
Net realized and unrealized gains (losses) on derivatives		(16.4	)		23.7
Net unrealized gains (losses) on defined benefit plans		(0.1	)		—

Total comprehensive income		208.3			83.3

Cash dividends declared		(18.5	)		(9.6	)
Repurchases of common stock		(324.5	)		(247.0	)
Shares issued and equity grants made pursuant to stock-based compensation plans		31.7			22.5

Balance at end of period	$	3,201.7		$	2,965.8

Common Stock Repurchase Program

On May 24, 2011, 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 $500 million of Class A common stock. Repurchases of shares of Class A common stock are subject to overall business and market conditions.

During the three months ended July 2, 2011, 2.5 million shares of Class A common stock were repurchased by the Company at a cost of $301.7 million under its repurchase program. The remaining availability under the Company’s common stock repurchase program was $670 million as of July 2, 2011. In addition, 0.1 million shares of Class A common stock at a cost of $22.8 million were surrendered to, or withheld by, the Company in satisfaction of withholding taxes in connection with the vesting of awards under the Company’s 1997 Long-Term Stock Incentive Plan, as amended (the “1997 Incentive Plan”) and 2010 Long-Term Stock Incentive Plan (the “2010 Incentive Plan”).

During the three months ended July 3, 2010, 2.7 million shares of Class A common stock were repurchased by the Company at a cost of $231.0 million under its repurchase program, including a repurchase of 1.0 million shares of Class A common stock from its principal stockholder, Mr. Lauren, at a cost of $81.0 million in connection with the Company’s secondary public offerings of 10 million shares of Class A common stock on behalf of Mr. Ralph Lauren on June 1, 2010. In addition, 0.2 million shares of Class A common stock at a cost of $16 million were surrendered to, or withheld by, the Company in satisfaction of withholding taxes in connection with the vesting of awards under the 1997 Incentive Plan.

Repurchased and surrendered shares are accounted for as treasury stock at cost and will be held in treasury for future use.

Dividends

Since 2003, the Company has maintained a regular quarterly cash dividend program on its common stock. On February 8, 2011, the Company’s Board of Directors approved an increase to the Company’s quarterly cash dividend on its common stock from $0.10 per share to $0.20 per share. The first quarter Fiscal 2012 dividend of $0.20 per share was declared on June 20, 2011, was payable to shareholders of record at the close of business on July 1, 2011, and was paid on July 15, 2011. Dividends paid amounted to $18.9 million during the three months ended July 2, 2011 and $9.8 million during the three months ended July 3, 2010.