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Segment Information
 9 Months Ended
Dec. 27, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company has three reportable segments based on its business activities and organization: Wholesale, Retail, and Licensing. These segments offer a variety of products through different channels of distribution. The Wholesale segment consists of 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, licensed, and franchised retail stores in the U.S. and overseas. The Retail segment consists of the Company's integrated worldwide retail operations, which sell products through its retail stores, concession-based shop-within-shops, and e-commerce sites, which are 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 to the Company's consolidated financial statements included in the Fiscal 2014 10-K. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues, including such sales between segments, 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. 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, 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.
During the fourth quarter of Fiscal 2014, the Company changed the manner in which it allocates certain costs to its reportable segments. All prior period segment information has been recast and is presented below on a comparable basis. See Note 22 to the Company's Fiscal 2014 10-K for further discussion.
Net revenues and operating income for each of the Company's reportable segments are as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 27,
2014
 
December 28,
2013
 
December 27,
2014
 
December 28,
2013
 
 
(millions)
Net revenues:
 
 
 
 
 
 
 
 
Wholesale
 
$
837

 
$
840

 
$
2,488

 
$
2,503

Retail
 
1,149

 
1,130

 
3,115

 
2,953

Licensing
 
47

 
45

 
132

 
127

Total net revenues
 
$
2,033

 
$
2,015

 
$
5,735

 
$
5,583



 
 
Three Months Ended
 
Nine Months Ended
 
 
December 27,
2014
 
December 28,
2013
 
December 27,
2014
 
December 28,
2013
 
 
(millions)
Operating income:
 
 
 
 
 
 
 
 
Wholesale
 
$
207

 
$
217

 
$
634

 
$
667

Retail
 
194

 
221

 
499

 
521

Licensing
 
42

 
40

 
120

 
115

 
 
443

 
478

 
1,253

 
1,303

Unallocated corporate expenses
 
(127
)
 
(130
)
 
(401
)
 
(398
)
Gain on acquisition of Chaps(a)
 
—

 
—

 
—

 
16

Unallocated restructuring and other charges(b)
 
(1
)
 
(14
)
 
(7
)
 
(16
)
Total operating income
 
$
315

 
$
334

 
$
845

 
$
905


 
(a) 
See Note 5 for further discussion of the gain on acquisition of Chaps.
(b) 
The fiscal periods presented include certain unallocated restructuring and other charges (see Note 9), which are detailed below:
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
December 27,
2014
 
December 28,
2013
 
December 27,
2014
 
December 28,
2013
 
 
 
(millions)
 
Restructuring charges, net:
 
 
 
 
 
 
 
 
 
Wholesale-related
 
$
—

 
$
—

 
$
(3
)
 
$
—

 
Retail-related
 
(1
)
 
—

 
(4
)
 
—

 
Corporate operations-related
 
—

 
(4
)
 
—

 
(6
)
 
Unallocated restructuring charges, net
 
$
(1
)
 
$
(4
)
 
$
(7
)
 
$
(6
)
 
Other charges (see Note 9)
 
—

 
(10
)
 
—

 
(10
)
 
Unallocated restructuring and other charges
 
$
(1
)
 
$
(14
)
 
$
(7
)
 
$
(16
)

Depreciation and amortization expense for the Company's reportable segments is as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 27,
2014
 
December 28,
2013
 
December 27,
2014
 
December 28,
2013
 
 
(millions)
Depreciation and amortization:
 
 
 
 
 
 
 
 
Wholesale
 
$
17

 
$
16

 
$
51

 
$
49

Retail
 
42

 
33

 
113

 
93

Unallocated corporate expenses
 
19

 
18

 
55

 
51

Total depreciation and amortization
 
$
78

 
$
67

 
$
219

 
$
193


Net revenues by geographic location of the reporting subsidiary are as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 27,
2014
 
December 28,
2013
 
December 27,
2014
 
December 28,
2013
 
 
(millions)
Net revenues(a):
 
 
 
 
 
 
 
 
The Americas(b)
 
$
1,390

 
$
1,386

 
$
3,838

 
$
3,836

Europe
 
409

 
395

 
1,221

 
1,120

  Asia(c)
 
234

 
234

 
676

 
627

Total net revenues
 
$
2,033

 
$
2,015

 
$
5,735

 
$
5,583

 
(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. were $1.317 billion and $3.647 billion during the three-month and nine-month periods ended December 27, 2014, respectively, and $1.320 billion and $3.656 billion during the three-month and nine-month periods ended December 28, 2013, respectively.
(c) 
Also includes Australia and New Zealand.