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Restructuring and Other Charges | 12 Months Ended
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Apr. 01, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges A description of significant restructuring and other activities and related costs is included below. Way Forward Plan On June 2, 2016, the Company's Board of Directors approved a restructuring plan with the objective of delivering sustainable, profitable sales growth and long-term value creation for shareholders (the "Way Forward Plan"). The Company plans to refocus on its core brands and evolve its product, marketing, and shopping experience to increase desirability and relevance. It also intends to evolve its operating model to enable sustainable, profitable sales growth by significantly improving quality of sales, reducing supply chain lead times, improving its sourcing, and executing a disciplined multi-channel distribution and expansion strategy. As part of the Way Forward Plan, the Company plans to rightsize its cost structure and implement a return on investment-driven financial model to free up resources to invest in the brand and drive high-quality sales. The Way Forward Plan includes strengthening the Company's leadership team and creating a more nimble organization by moving from an average of nine to six layers of management. The Way Forward Plan also includes the discontinuance of the Company's Denim & Supply brand and the integration of its denim product offerings into its Polo Ralph Lauren brand. Collectively, these actions resulted in a reduction in workforce and the closure of certain stores and shop-within-shops during Fiscal 2017. On March 30, 2017, the Company's Board of Directors approved the following additional restructuring-related activities associated with its Way Forward Plan: (i) the restructuring of its in-house global e-commerce platform which was in development and shift to a more cost-effective, flexible e-commerce platform through a new agreement with Salesforce's Commerce Cloud, formerly known as Demandware; (ii) the closure of its Polo store at 711 Fifth Avenue in New York City; and (iii) the further streamlining of the organization and the execution of other key corporate actions in line with the Company's Way Forward Plan. Together, these actions are an important part of the Company's efforts to achieve its stated objective to return to sustainable, profitable growth and invest in the future. These additional restructuring-related activities will result in a further reduction in workforce and the closure of certain corporate office and store locations, and are expected to be substantially completed by the end of Fiscal 2018. In connection with the Way Forward Plan, the Company currently expects to incur total estimated charges of approximately $770 million, comprised of cash-related restructuring charges of approximately $450 million and non-cash charges of approximately $320 million. Cumulative cash and non-cash charges incurred during Fiscal 2017 were $289.1 million and $277.3 million, respectively. In addition to these charges, the Company also incurred an additional non-cash charge of $155.2 million during Fiscal 2017 associated with the destruction of inventory out of current liquidation channels in line with its Way Forward Plan. A summary of the charges recorded in connection with the Way Forward Plan during the Fiscal 2017 is as follows:
|  | Fiscal Year Ended
|  | April 1, 2017
|  | (millions)
Cash-related restructuring charges: |  |
Severance and benefits costs |  | $ | 182.7 |
Lease termination and store closure costs |  | 87.3 |
Other cash charges |  | 19.1 |
Total cash-related restructuring charges |  | 289.1 |
Non-cash charges: |  |
Impairment of assets (see Note 9) |  | 234.6 |
Inventory-related charges(a) |  | 197.9 |
Total non-cash charges |  | 432.5 |
Total charges |  | $ | 721.6 |
(a) | Includes charges of $155.2 million associated with the destruction of inventory out of current liquidation channels during Fiscal 2017. Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.
A summary of the activity in the restructuring reserve related to the Way Forward Plan is as follows:
|  | Severance and Benefits Costs |  | Lease Termination and Store Closure Costs |  | Other Cash Charges |  | Total
|  | (millions)
Balance at April 2, 2016 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions charged to expense |  | 182.7 |  |  | 87.3 |  |  | 19.1 |  |  | 289.1 |
Cash payments charged against reserve |  | (87.4 | ) |  | (52.2 | ) |  | (11.5 | ) |  | (151.1 | )
Non-cash adjustments |  | (1.0 | ) |  | (0.8 | ) |  | (1.0 | ) |  | (2.8 | )
Balance at April 1, 2017 |  | $ | 94.3 |  |  | $ | 34.3 |  |  | $ | 6.6 |  |  | $ | 135.2 |
Global Reorganization Plan On May 12, 2015, the Company's Board of Directors approved a reorganization and restructuring plan comprised of the following major actions: (i) the reorganization of the Company's operating structure in order to streamline the Company's business processes to better align its cost structure with its long-term growth strategy; (ii) a strategic store and shop-within-shop performance review conducted by region and brand; (iii) a targeted corporate functional area review; and (iv) the consolidation of certain of the Company's luxury lines (collectively, the "Global Reorganization Plan"). Actions associated with the Global Reorganization Plan resulted in a reduction in workforce and the closure of certain stores and shop-within-shops. A summary of the charges recorded in connection with the Global Reorganization Plan during Fiscal 2017 and Fiscal 2016, as well as the cumulative charges recorded since its inception, is as follows:
|  | Fiscal Years Ended |  | Cumulative Charges
|  | April 1, 2017 |  | April 2, 2016 |
|  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |
Severance and benefits costs |  | $ | 4.7 |  |  | $ | 64.4 |  |  | $ | 69.1 |
Lease termination and store closure costs |  | 0.2 |  |  | 7.8 |  |  | 8.0 |
Other cash charges |  | — |  |  | 13.8 |  |  | 13.8 |
Total cash-related restructuring charges |  | 4.9 |  |  | 86.0 |  |  | 90.9 |
Non-cash charges: |  |  |  |  |  |
Impairment of assets (see Note 9) |  | — |  |  | 27.2 |  |  | 27.2 |
Accelerated stock-based compensation expense(a) |  | — |  |  | 8.9 |  |  | 8.9 |
Inventory-related charges(b) |  | — |  |  | 20.4 |  |  | 20.4 |
Total non-cash charges |  | — |  |  | 56.5 |  |  | 56.5 |
Total charges |  | $ | 4.9 |  |  | $ | 142.5 |  |  | $ | 147.4 |
(a) | Accelerated stock-based compensation expense, which is recorded within restructuring and other charges in the consolidated statements of operations, was recorded in connection with vesting provisions associated with certain separation agreements.
(b) | Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.
Actions associated with the Global Reorganization Plan are now complete and no additional charges are expected to be incurred in relation to this plan. A summary of current period activity in the restructuring reserve related to the Global Reorganization Plan is as follows:
|  | Severance and Benefits Costs |  | Lease Termination and Store Closure Costs |  | Other Cash Charges |  | Total
|  | (millions)
Balance at March 28, 2015 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions charged to expense |  | 64.4 |  |  | 7.8 |  |  | 13.8 |  |  | 86.0 |
Cash payments charged against reserve |  | (33.2 | ) |  | (2.5 | ) |  | (10.7 | ) |  | (46.4 | )
Non-cash adjustments |  | — |  |  | 0.7 |  |  | — |  |  | 0.7 |
Balance at April 2, 2016 |  | 31.2 |  |  | 6.0 |  |  | 3.1 |  |  | 40.3 |
Additions charged to expense |  | 4.7 |  |  | 0.2 |  |  | — |  |  | 4.9 |
Cash payments charged against reserve |  | (27.3 | ) |  | (2.8 | ) |  | (2.9 | ) |  | (33.0 | )
Balance at April 1, 2017 |  | $ | 8.6 |  |  | $ | 3.4 |  |  | $ | 0.2 |  |  | $ | 12.2 |
Other Restructuring Plans During Fiscal 2015, the Company recorded restructuring charges of $10.1 million, primarily related to severance and benefits costs associated with certain of its retail and wholesale businesses and corporate operations. As of March 28, 2015, the related aggregate remaining restructuring liability was $5.0 million. As of both April 1, 2017 and April 2, 2016, the related aggregate remaining restructuring liability was not material. Other Charges Consistent with the Company's announcement on February 2, 2017, Mr. Stefan Larsson departed as the Company's President and Chief Executive Officer and as a member of its Board of Directors, effective as of May 1, 2017. In connection with Mr. Larsson's departure, the Company and Mr. Larsson entered into an employment separation agreement and release (the "Larsson Agreement"), pursuant to which Mr. Larsson will receive severance-related payments of $10.0 million, to be paid over two years. He will also receive his bonus under the Company's Executive Officer Annual Incentive Plan ("EOAIP") for the Company's Fiscal 2017, as well as a pro-rated EOAIP bonus for Fiscal 2018 through May 1, 2017, each based on the Company's actual performance during the related fiscal year. The Fiscal 2017 and Fiscal 2018 EOAIP bonuses will be paid on the dates that bonuses under the EOAIP are paid to the Company's eligible employees. Mr. Larsson also vested in all time-based equity awards as of the date of termination and will vest in all performance-based equity awards based on the Company's actual performance on the dates those awards were scheduled to vest without regard to his continued employment. He was required to provide the Company with transition services and must comply with confidentiality, non-competition, non-disparagement, and non-solicitation restrictive covenants. Mr. Larsson has also agreed to a release of claims against the Company. In connection with Mr. Larsson's departure, the Company recorded other charges of $11.4 million during Fiscal 2017, inclusive of accelerated stock-based compensation expense of $4.3 million, and expects to incur additional charges of approximately $6 million during Fiscal 2018. The Company also recorded other charges of $13.2 million during Fiscal 2017 related to the anticipated settlement of certain non-income tax issues. During Fiscal 2016, the Company recorded other charges of $34.1 million related to its pending customs audit (see Note 15) and $13.6 million primarily related to the settlement of certain litigation claims.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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