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Segment Information
 6 Months Ended
Oct. 01, 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 for each of the Company's reportable segments are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
 
 
(millions)
Net revenues:
 
 
 
 
 
 
 
 
Wholesale
 
$
831

 
$
927

 
$
1,438

 
$
1,569

Retail
 
942

 
996

 
1,849

 
1,931

Licensing
 
48

 
47

 
86

 
88

Total net revenues
 
$
1,821

 
$
1,970

 
$
3,373

 
$
3,588



 
 
Three Months Ended
 
Six Months Ended
 
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
 
 
(millions)
Operating income:
 
 
 
 
 
 
 
 
Wholesale(a)
 
$
203

 
$
247

 
$
336

 
$
384

Retail(b)
 
19

 
123

 
82

 
233

Licensing
 
44

 
42

 
78

 
78

 
 
266

 
412

 
496

 
695

Unallocated corporate expenses
 
(148
)
 
(151
)
 
(323
)
 
(304
)
Unallocated restructuring and other charges(c)
 
(42
)
 
(31
)
 
(128
)
 
(65
)
Total operating income
 
$
76

 
$
230

 
$
45

 
$
326


 
(a) 
During the three-month and six-month periods ended October 1, 2016, the Company recorded non-cash inventory-related charges of $8 million and $18 million, respectively, and asset impairment charges of $7 million and $8 million, respectively. During the three-month and six-month periods ended September 26, 2015, the Company recorded non-cash asset impairment charges of $2 million and $5 million, respectively. These charges were recorded in connection with the Company's restructuring plans. See Notes 7 and 8 for additional information.
(b) 
During the three-month and six-month periods ended October 1, 2016, the Company recorded non-cash inventory-related charges of $73 million and $117 million, respectively, and asset impairment charges of $20 million and $38 million, respectively. During the six months ended September 26, 2015, the Company recorded non-cash inventory-related charges of $3 million, and during the three-month and six-month periods ended September 26, 2015, recorded asset impairment charges of $5 million and $10 million, respectively. These charges were recorded in connection with the Company's restructuring plans. See Notes 7 and 8 for additional information.
(c) 
The three-month and six-month periods ended October 1, 2016 and September 26, 2015 included certain unallocated restructuring and other charges (see Note 8), which are detailed below:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
 
 
 
(millions)
 
Unallocated restructuring and other charges:
 
 
 
 
 
 
 
 
 
Wholesale-related
 
$
(8
)
 
$
(2
)
 
$
(23
)
 
$
(10
)
 
Retail-related
 
(11
)
 
(8
)
 
(26
)
 
(19
)
 
Licensing-related
 
—

 
—

 
(2
)
 
(1
)
 
Corporate operations-related
 
(23
)
 
(9
)
 
(77
)
 
(23
)
 
Unallocated restructuring charges
 
(42
)
 
(19
)
 
(128
)
 
(53
)
 
Other charges (see Note 8)
 
—

 
(12
)
 
—

 
(12
)
 
Total unallocated restructuring and other charges
 
$
(42
)
 
$
(31
)
 
$
(128
)
 
$
(65
)

Depreciation and amortization expense for the Company's segments is as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
 
 
(millions)
Depreciation and amortization:
 
 
 
 
 
 
 
 
Wholesale
 
$
12

 
$
15

 
$
29

 
$
30

Retail
 
37

 
39

 
74

 
78

Licensing
 
1

 
—

 
1

 
—

Unallocated corporate
 
26

 
23

 
50

 
43

Total depreciation and amortization
 
$
76

 
$
77

 
$
154

 
$
151


Net revenues by geographic location of the reporting subsidiary are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
 
 
(millions)
Net revenues(a):
 
 
 
 
 
 
 
 
The Americas(b)
 
$
1,155

 
$
1,319

 
$
2,116

 
$
2,398

Europe(c)
 
449

 
431

 
829

 
764

  Asia(d)
 
217

 
220

 
428

 
426

Total net revenues
 
$
1,821

 
$
1,970

 
$
3,373

 
$
3,588

 
(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 October 1, 2016 were $1.092 billion and $2.002 billion, respectively, and $1.247 billion and $2.276 billion during the three-month and six-month periods ended September 26, 2015, respectively.
(c) 
Includes the Middle East.
(d) 
Includes Australia and New Zealand.