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Segment Information
 12 Months Ended
Apr. 01, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
Prior to the fourth quarter of Fiscal 2017, the Company organized its business into the following three reportable segments: wholesale, retail, and licensing. In connection with the Way Forward Plan, the Company has implemented significant organizational changes that have impacted the manner in which it manages its business. Accordingly, during the fourth quarter of Fiscal 2017, the Company realigned its business into the following three reportable segments:
•
North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, accessories, home furnishings, and related products made through the Company's wholesale and retail businesses in the U.S. and Canada.
•
Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, accessories, home furnishings, and related products made through the Company's wholesale and retail businesses in Europe and the Middle East.
•
Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, accessories, home furnishings, and related products made through the Company's wholesale and retail businesses in Asia, Australia, and New Zealand.
No operating segments were aggregated to form the Company's reportable segments. In addition to these reportable segments, the Company also has other non-reportable segments, which primarily consist of (i) sales of Club Monaco branded products made through its retail businesses in the U.S., Canada, and Europe, (ii) sales of Ralph Lauren branded products made through its wholesale business in Latin America, and (iii) royalty revenues earned through its global licensing alliances.
This new segment structure is consistent with how the Company establishes its overall business strategy, allocates resources, and assesses performance of its business. All prior period segment information has been recast to reflect the realignment of the Company's segment reporting structure on a comparable basis.
The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Each segment's performance is evaluated based upon net revenues and 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. 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. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and therefore such information has not been presented.
Net revenues for each of the Company's segments are as follows:
 
 
Fiscal Years Ended
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
(millions)
Net revenues:
 
 
 
 
 
 
North America
 
$
3,795.0

 
$
4,493.9

 
$
4,645.7

Europe
 
1,543.4

 
1,561.8

 
1,620.0

Asia
 
882.9

 
893.5

 
915.5

Other non-reportable segments
 
431.5

 
456.0

 
439.1

Total net revenues(a)
 
$
6,652.8

 
$
7,405.2

 
$
7,620.3


 
(a) 
The Company's sales to its largest wholesale customer, Macy's, accounted for approximately 10%, 11%, and 12%, of its total net revenues in Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. Substantially all of the Company's sales to Macy's related to its North America segment.
Operating income (loss) for each of the Company's segments is as follows:
 
 
Fiscal Years Ended
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
(millions)
Operating income (loss):
 
 
 
 
 
 
North America(a)
 
$
674.7

 
$
951.6

 
$
1,183.3

Europe(b)
 
302.6

 
280.1

 
306.7

Asia(c)
 
(85.8
)
 
(0.1
)
 
8.5

Other non-reportable segments(d)
 
68.7

 
103.9

 
124.6

 
 
960.2

 
1,335.5

 
1,623.1

Unallocated corporate expenses(e)
 
(736.4
)
 
(611.0
)
 
(577.6
)
Unallocated restructuring and other charges(f)
 
(318.6
)
 
(142.6
)
 
(10.1
)
Total operating income (loss)
 
$
(94.8
)
 
$
581.9

 
$
1,035.4



(a) 
During Fiscal 2017 and Fiscal 2016, the Company recorded restructuring-related inventory charges of $33.9 million and $7.2 million, respectively. Additionally, the Company recorded asset impairment charges of $62.5 million, $20.5 million, and $1.3 million during Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. See Notes 9 and 10 for additional information.
(b) 
During Fiscal 2017 and Fiscal 2016, the Company recorded restructuring-related inventory charges of $20.1 million and $2.4 million, respectively. Additionally, the Company recorded asset impairment charges of $3.1 million, $8.2 million, and $0.5 million during Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. See Notes 9 and 10 for additional information.
(c) 
During Fiscal 2017 and Fiscal 2016, the Company recorded restructuring-related inventory charges of $137.6 million and $10.8 million, respectively. Additionally, the Company recorded asset impairment charges of $42.0 million, $18.2 million, and $4.8 million during Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. See Notes 9 and 10 for additional information.
(d) 
During Fiscal 2017, the Company recorded restructuring-related inventory charges of $6.3 million. Additionally, the Company recorded asset impairment charges of $29.2 million, $1.9 million, and $0.3 million during Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. See Notes 9 and 10 for additional information.
(e) 
During Fiscal 2017, the Company recorded asset impairment charges of $117.0 million. See Notes 9 and 10 for additional information.
(f) 
The fiscal years presented included certain unallocated restructuring and other charges (see Note 10), which are detailed below:
 
 
 
Fiscal Years Ended
 
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
 
(millions)
 
Unallocated restructuring and other charges:
 
 
 
 
 
 
 
North America-related
 
$
(34.7
)
 
$
(26.1
)
 
$
(5.7
)
 
Europe-related
 
(27.7
)
 
(5.6
)
 
(0.9
)
 
Asia-related
 
(68.3
)
 
(3.2
)
 
(1.1
)
 
Other non-reportable segment-related
 
(7.7
)
 
(5.6
)
 
(0.5
)
 
Corporate operations-related
 
(155.6
)
 
(54.4
)
 
(1.9
)
 
Unallocated restructuring charges
 
(294.0
)
 
(94.9
)
 
(10.1
)
 
Other charges (see Note 10)
 
(24.6
)
 
(47.7
)
 
—

 
Total unallocated restructuring and other charges
 
$
(318.6
)
 
$
(142.6
)
 
$
(10.1
)

The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments:
 
 
Fiscal Years Ended
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
(millions)
Depreciation and amortization:
 
 
 
 
 
 
North America
 
$
110.0

 
$
112.4

 
$
99.7

Europe
 
31.8

 
35.2

 
45.1

Asia
 
47.8

 
58.2

 
66.4

Other non-reportable segments
 
14.5

 
13.7

 
9.0

Unallocated corporate
 
103.4

 
89.9

 
74.2

Total depreciation and amortization
 
$
307.5

 
$
309.4

 
$
294.4


 
 
Fiscal Years Ended
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
(millions)
Capital expenditures:
 
 
 
 
 
 
North America
 
$
62.8

 
$
84.9

 
$
140.1

Europe
 
43.6

 
48.2

 
55.5

Asia
 
30.2

 
49.1

 
61.3

Other non-reportable segments
 
20.1

 
38.0

 
31.9

Unallocated corporate
 
127.3

 
197.5

 
102.4

Total capital expenditures
 
$
284.0

 
$
417.7

 
$
391.2


Net revenues and long-lived assets by geographic location of the reporting subsidiary are as follows:
 
 
Fiscal Years Ended
 
 
April 1,
2017
 
April 2,
2016
 
March 28,
2015
 
 
(millions)
Net revenues(a):
 
 
 
 
 
 
The Americas(b)
 
$
4,214.7

 
$
4,938.2

 
$
5,077.3

Europe(c) 
 
1,554.1

 
1,572.7

 
1,626.9

Asia(d) 
 
884.0

 
894.3

 
916.1

Total net revenues
 
$
6,652.8

 
$
7,405.2

 
$
7,620.3


 
 
April 1,
2017
 
April 2,
2016
 
 
(millions)
Long-lived assets(a):
 
 
 
 
The Americas(b)
 
$
1,061.7

 
$
1,206.3

Europe(c) 
 
141.8

 
212.3

Asia(d) 
 
112.5

 
164.6

Total long-lived assets
 
$
1,316.0

 
$
1,583.2

 
(a) 
Net revenues and long-lived assets 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 $3.990 billion, $4.688 billion, and $4.827 billion in Fiscal 2017, Fiscal 2016, and Fiscal 2015, respectively. Long-lived assets located in the U.S. were $1.033 billion and $1.160 billion as of April 1, 2017 and April 2, 2016, respectively.
(c) 
Includes the Middle East.
(d) 
Includes Australia and New Zealand.