XML 70 R40.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes (Tables) | 12 Months Ended
--- | ---
Mar. 29, 2014
Income Tax Disclosure [Abstract] |
Domestic and foreign pretax income | Domestic and foreign pretax income are as follows:
|  | Fiscal Years Ended
|  | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
|  | (millions)
Domestic |  | $ | 710 |  |  | $ | 672 |  |  | $ | 618 |
Foreign |  | 386 |  |  | 417 |  |  | 397 |
Total income before provision for income taxes |  | $ | 1,096 |  |  | $ | 1,089 |  |  | $ | 1,015 |
Provisions (benefits) for current and deferred income taxes | Provisions (benefits) for current and deferred income taxes are as follows:
|  | Fiscal Years Ended
|  | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
|  | (millions)
Current: |  |  |  |  |  |
Federal(a) |  | $ | 211 |  |  | $ | 189 |  |  | $ | 203 |
State and local(a) |  | 51 |  |  | 42 |  |  | 51 |
Foreign |  | 57 |  |  | 94 |  |  | 95 |
|  | 319 |  |  | 325 |  |  | 349 |
Deferred: |  |  |  |  |  |
Federal |  | (4 | ) |  | 9 |  |  | 4 |
State and local |  | 1 |  |  | 5 |  |  | (2 | )
Foreign |  | 4 |  |  | — |  |  | (17 | )
|  | 1 |  |  | 14 |  |  | (15 | )
Total provision for income taxes |  | $ | 320 |  |  | $ | 339 |  |  | $ | 334 |
(a) | Excludes federal, state, and local tax benefits of approximately $34 million, $41 million, and $40 million in Fiscal 2014, Fiscal 2013, and Fiscal 2012, respectively, resulting from stock-based compensation arrangements. Such amounts were recorded within equity.
Tax rate reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are as set forth below:
|  | Fiscal Years Ended
|  | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
|  | (millions)
Provision for income taxes at the U.S. federal statutory rate |  | $ | 384 |  |  | $ | 381 |  |  | $ | 355 |
Increase (decrease) due to: |  |  |  |  |  |
State and local income taxes, net of federal benefit |  | 29 |  |  | 28 |  |  | 28 |
Foreign income taxed at different rates, net of U.S. foreign tax credits |  | (89 | ) |  | (75 | ) |  | (56 | )
Unrecognized tax benefits and settlements of tax examinations |  | (5 | ) |  | 6 |  |  | 12 |
Other |  | 1 |  |  | (1 | ) |  | (5 | )
Total provision for income taxes |  | $ | 320 |  |  | $ | 339 |  |  | $ | 334 |
Effective tax rate(a) |  | 29.2 | % |  | 31.1 | % |  | 32.9 | %
(a) | Effective tax rate is calculated by dividing the provision for income taxes by income before provision for income taxes.
Deferred taxes | Significant components of the Company's net deferred tax assets (liabilities) are as follows:
|  | March 29, 2014 |  | March 30, 2013
|  | (millions)
Current deferred tax assets: |  |  |  |
Receivable allowances and reserves |  | $ | 70 |  |  | $ | 69 |
Deferred compensation |  | 31 |  |  | 21 |
Inventory basis difference |  | 30 |  |  | 19 |
Other |  | 20 |  |  | 11 |
Valuation allowance |  | (1 | ) |  | (1 | )
Net current deferred tax assets(a) |  | 150 |  |  | 119 |
Non-current deferred tax assets (liabilities): |  |  |  |
Goodwill and other intangible assets |  | (219 | ) |  | (211 | )
Property and equipment |  | (90 | ) |  | 27 |
Cumulative translation adjustment and hedges |  | (8 | ) |  | (4 | )
Lease obligations |  | 92 |  |  | — |
Deferred compensation |  | 79 |  |  | 68 |
Unrecognized tax benefits |  | 46 |  |  | 35 |
Deferred rent |  | 19 |  |  | 20 |
Deferred income |  | 18 |  |  | 33 |
Net operating loss carryforwards |  | 17 |  |  | 16 |
Transfer pricing |  | 16 |  |  | 20 |
Other |  | (1 | ) |  | — |
Valuation allowance |  | (11 | ) |  | (12 | )
Net non-current deferred tax liabilities(b) |  | (42 | ) |  | (8 | )
Net deferred tax assets |  | $ | 108 |  |  | $ | 111 |
(a) | The net current deferred tax balance as of March 30, 2013 included current deferred tax liabilities of $1 million recorded within accrued expenses and other current liabilities in the consolidated balance sheets.
(b) | The net non-current deferred tax balances as of March 29, 2014 and March 30, 2013 were comprised of non-current deferred tax assets of $39 million and $22 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $81 million and $30 million, respectively, recorded within other non-current liabilities in the consolidated balance sheets.
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 2014, Fiscal 2013, and Fiscal 2012 are presented below:
|  | Fiscal Years Ended
|  | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
|  | (millions)
Unrecognized tax benefits beginning balance |  | $ | 100 |  |  | $ | 129 |  |  | $ | 125 |
Additions related to current period tax positions |  | 6 |  |  | 4 |  |  | 4 |
Additions related to prior period tax positions |  | 12 |  |  | 12 |  |  | 8 |
Reductions related to prior period tax positions |  | (13 | ) | (a) | (32 | ) | (b) | (4 | )
Reductions related to expiration of statutes of limitations |  | (2 | ) |  | (1 | ) |  | (2 | )
Reductions related to settlements with taxing authorities |  | (23 | ) | (a) | (10 | ) | (b) | — |
Additions (reductions) related to foreign currency translation |  | 3 |  |  | (2 | ) |  | (2 | )
Unrecognized tax benefits ending balance |  | $ | 83 |  |  | $ | 100 |  |  | $ | 129 |
(a) | Includes a $29 million decline in unrecognized tax benefits as a result of the Company's tax settlement agreement reached in Fiscal 2014 for the taxable years ended April 3, 2004 and April 2, 2005.
(b) | Includes a $34 million decline in unrecognized tax benefits as a result of the Company's tax settlement agreement reached in Fiscal 2013 in connection with a tax examination for the taxable years ended March 29, 2008 through April 3, 2010.
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 2014, Fiscal 2013, and Fiscal 2012 are presented below:
|  | Fiscal Years Ended
|  | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
|  | (millions)
Accrued interest and penalties beginning balance |  | $ | 50 |  |  | $ | 39 |  |  | $ | 31 |
Net additions charged to expense |  | 6 |  |  | 22 |  | (a) | 8 |
Reductions related to prior period tax positions |  | (4 | ) |  | (10 | ) |  | — |
Reductions related to settlements with taxing authorities |  | (5 | ) |  | (1 | ) |  | — |
Additions related to foreign currency translation |  | 2 |  |  | — |  |  | — |
Accrued interest and penalties ending balance |  | $ | 49 |  |  | $ | 50 |  |  | $ | 39 |
(a) | Includes a reserve of $17 million for an interest assessment on a prior year withholding tax. No underlying tax exposure exists. The interest assessed was not material to the Company's consolidated financial statements in any period.

X
- Definition Reconciliation of accrued interest and penalties related to unrecognized tax benefits. + References No definition available. + Details
Name: | rl_ReconciliationOfAccruedInterestAndPenaltiesRelatedToUnrecognizedTaxBenefitsTableTextBlock
Namespace Prefix: | rl_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=32707879&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration