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Segment Information
 3 Months Ended
Jul. 02, 2016
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 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 and suppliers. 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 of the Fiscal 2016 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, largely remain at corporate as unallocated expenses. 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 reportable segments are as follows:
 
 
Three Months Ended
 
 
July 2,
2016
 
June 27,
2015
 
 
(millions)
Net revenues:
 
 
 
 
Wholesale
 
$
607

 
$
642

Retail
 
907

 
935

Licensing
 
38

 
41

Total net revenues
 
$
1,552

 
$
1,618



 
 
Three Months Ended
 
 
July 2,
2016
 
June 27,
2015
 
 
(millions)
Operating income (loss):
 
 
 
 
Wholesale(a)
 
$
133

 
$
137

Retail(b)
 
63

 
110

Licensing
 
34

 
36

 
 
230

 
283

Unallocated corporate expenses
 
(175
)
 
(153
)
Unallocated restructuring charges(c)
 
(86
)
 
(34
)
Total operating income (loss)
 
$
(31
)
 
$
96


 
(a) 
During the three-month period ended July 2, 2016, the Company recorded non-cash inventory-related charges and asset impairment charges of $10 million and $1 million, respectively, in connection with the Way Forward Plan. During the three-month period ended June 27, 2015, the Company recorded non-cash asset impairment charges of $3 million in connection with the Global Reorganization Plan. See Notes 7 and 8 for additional information.
(b) 
During the three-month period ended July 2, 2016, the Company recorded non-cash inventory-related charges and asset impairment charges of $44 million and $18 million, respectively, in connection with the Way Forward Plan. During the three-month period ended June 27, 2015, the Company recorded non-cash inventory-related charges and asset impairment charges of $3 million and $5 million, respectively, in connection with the Global Reorganization Plan. See Notes 7 and 8 for additional information.
(c) 
The three-month periods ended July 2, 2016 and June 27, 2015 included certain unallocated restructuring charges (see Note 8), which are detailed below:
 
 
 
Three Months Ended
 
 
 
July 2,
2016
 
June 27,
2015
 
 
 
(millions)
 
Unallocated restructuring charges:
 
 
 
 
 
Wholesale-related
 
$
(15
)
 
$
(8
)
 
Retail-related
 
(15
)
 
(11
)
 
Licensing-related
 
(2
)
 
(1
)
 
Corporate operations-related
 
(54
)
 
(14
)
 
Total unallocated restructuring charges
 
$
(86
)
 
$
(34
)

Depreciation and amortization expense for the Company's segments is as follows:
 
 
Three Months Ended
 
 
July 2,
2016
 
June 27,
2015
 
 
(millions)
Depreciation and amortization:
 
 
 
 
Wholesale
 
$
17

 
$
15

Retail
 
37

 
39

Unallocated corporate
 
24

 
20

Total depreciation and amortization
 
$
78

 
$
74


Net revenues by geographic location of the reporting subsidiary are as follows:
 
 
Three Months Ended
 
 
July 2,
2016
 
June 27,
2015
 
 
(millions)
Net revenues(a):
 
 
 
 
The Americas(b)
 
$
961

 
$
1,079

Europe(c)
 
380

 
333

  Asia(d)
 
211

 
206

Total net revenues
 
$
1,552

 
$
1,618

 
(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 periods ended July 2, 2016 and June 27, 2015 were $910 million and $1.029 billion, respectively.
(c) 
Includes the Middle East.
(d) 
Includes Australia and New Zealand.