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Segment Information
 6 Months Ended
Sep. 26, 2020
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 furnishings, and related products made through the Company's retail and wholesale businesses in the U.S. and Canada, excluding Club Monaco. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its factory 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 furnishings, and related products made through the Company's retail and wholesale businesses in Europe, the Middle East, and Latin America, excluding Club Monaco. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its factory stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised 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 furnishings, 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 factory 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. In Asia, the Company's wholesale business 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 (i) sales of Club Monaco branded products made through its retail and wholesale businesses in the U.S., Canada, and Europe, and its licensing alliances in Europe and Asia, and (ii) royalty revenues earned through its global licensing alliances, excluding Club Monaco.
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 of the Fiscal 2020 10-K. 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.
Net revenues and operating income (loss) for each of the Company's segments are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
(millions)
Net revenues:
 
 
 
 
 
 
 
 
North America
 
$
542.9

 
$
881.2

 
$
708.0

 
$
1,600.6

Europe
 
359.5

 
480.2

 
480.2

 
841.0

Asia
 
236.6

 
255.3

 
408.5

 
513.9

Other non-reportable segments
 
54.5

 
89.5

 
84.3

 
179.5

Total net revenues
 
$
1,193.5

 
$
1,706.2

 
$
1,681.0

 
$
3,135.0



 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
(millions)
Operating income (loss)(a):
 
 
 
 
 
 
 
 
North America
 
$
123.3

 
$
192.4

 
$
98.5

 
$
342.5

Europe
 
83.6

 
140.6

 
66.7

 
220.0

Asia
 
41.1

 
40.9

 
51.2

 
89.0

Other non-reportable segments
 
15.2

 
22.8

 
16.1

 
55.7

 
 
263.2

 
396.7

 
232.5

 
707.2

Unallocated corporate expenses
 
(123.0
)
 
(149.1
)
 
(253.3
)
 
(286.7
)
Unallocated restructuring and other charges(b)
 
(160.5
)
 
(14.5
)
 
(167.5
)
 
(44.1
)
Total operating income (loss)
 
$
(20.3
)
 
$
233.1

 
$
(188.3
)
 
$
376.4


 
(a) 
Segment operating income (loss) during the three months ended September 26, 2020 reflects net bad debt expense reversals of $5.3 million, $3.0 million, and $0.6 million related to North America, Europe, and other non-reportable segments, respectively, and $20.8 million, $4.0 million, and $0.6 million related to North America, Europe, and other non-reportable segments, respectively, during the six months ended September 26, 2020, primarily related to adjustments to reserves previously established in connection with COVID-19 business disruptions. Segment operating income (loss) and unallocated corporate expenses during the three-month and six-month periods ended September 26, 2020 and September 28, 2019 also included asset impairment charges (see Note 7), which are detailed below:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
 
(millions)
 
Asset impairment charges:
 
 
 
 
 
 
 
 
 
North America
 
$
(9.7
)
 
$
—

 
$
(9.9
)
 
$
—

 
Europe
 
(21.2
)
 
—

 
(21.2
)
 
—

 
Asia
 
—

 
—

 
(1.3
)
 
—

 
Other non-reportable segments
 
(0.1
)
 
(3.8
)
 
(0.7
)
 
(3.8
)
 
Unallocated corporate expenses
 
—

 
(2.3
)
 
—

 
(3.5
)
 
Total asset impairment charges
 
$
(31.0
)
 
$
(6.1
)
 
$
(33.1
)
 
$
(7.3
)


(b) 
The three-month and six-month periods ended September 26, 2020 and September 28, 2019 included certain unallocated restructuring and other charges (see Note 8), which are detailed below:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
 
(millions)
 
Unallocated restructuring and other charges:
 
 
 
 
 
 
 
 
 
North America-related
 
$
(41.2
)
 
$
—

 
$
(41.3
)
 
$
(0.7
)
 
Europe-related
 
(26.3
)
 
(1.3
)
 
(26.3
)
 
(3.1
)
 
Asia-related
 
(10.1
)
 
(0.3
)
 
(9.9
)
 
(0.8
)
 
Other non-reportable segment-related
 
(0.7
)
 
(0.7
)
 
(1.8
)
 
(0.7
)
 
Corporate operations-related
 
(79.3
)
 
(10.8
)
 
(80.9
)
 
(14.8
)
 
Unallocated restructuring charges
 
(157.6
)
 
(13.1
)
 
(160.2
)
 
(20.1
)
 
Other charges (see Note 8)
 
(2.9
)
 
(1.4
)
 
(7.3
)
 
(24.0
)
 
Total unallocated restructuring and other charges
 
$
(160.5
)
 
$
(14.5
)
 
$
(167.5
)
 
$
(44.1
)

Depreciation and amortization expense for the Company's segments is as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
(millions)
Depreciation and amortization expense:
 
 
 
 
 
 
 
 
North America
 
$
17.6

 
$
18.6

 
$
35.7

 
$
37.5

Europe
 
8.1

 
7.7

 
15.8

 
15.3

Asia
 
14.4

 
14.7

 
28.6

 
29.7

Other non-reportable segments
 
1.0

 
1.5

 
2.1

 
2.8

Unallocated corporate
 
20.4

 
24.1

 
43.0

 
47.5

Total depreciation and amortization expense
 
$
61.5

 
$
66.6

 
$
125.2

 
$
132.8


Net revenues by geographic location of the reporting subsidiary are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
(millions)
Net revenues(a):
 
 
 
 
 
 
 
 
The Americas(b)
 
$
597.8

 
$
972.6

 
$
792.5

 
$
1,783.0

Europe(c)
 
358.8

 
478.0

 
479.7

 
837.5

  Asia(d)
 
236.9

 
255.6

 
408.8

 
514.5

Total net revenues
 
$
1,193.5

 
$
1,706.2

 
$
1,681.0

 
$
3,135.0

 
(a) 
Net revenues 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 the U.S., Canada, and Latin America. Net revenues earned in the U.S. during the three-month and six-month periods ended September 26, 2020 were $567.7 million and $753.8 million, respectively, and $911.1 million and $1.671 billion during the three-month and six-month periods ended September 28, 2019, respectively.
(c) 
Includes the Middle East.
(d) 
Includes Australia and New Zealand.