XML 50 R35.htm IDEA: XBRL DOCUMENT v3.19.1

Income Taxes (Tables)

12 Months Ended

Mar. 30, 2019

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income (loss)

Domestic and foreign pretax income (loss) are as follows:

		Fiscal Years Ended
		March 30, 2019				March 31, 2018				April 1, 2017
		(millions)
Domestic		$	66.6			$	16.4			$	(155.3	)
Foreign		515.9				472.8				50.4
Total income (loss) before income taxes		$	582.5			$	489.2			$	(104.9	)

Benefits (provisions) for current and deferred income taxes

Benefits (provisions) for current and deferred income taxes are as follows:

		Fiscal Years Ended
		March 30, 2019				March 31, 2018				April 1, 2017
		(millions)
Current:
Federal(a)		$	(37.3	)		$	(154.6	)		$	29.1
State and local(a)		(11.9		)		(5.0		)		2.3
Foreign		(93.9		)		(82.7		)		(64.7		)
		(143.1		)		(242.3		)		(33.3		)
Deferred:
Federal		(5.0		)		(64.1		)		25.1
State and local		(6.9		)		(12.6		)		2.9
Foreign		3.4				(7.4		)		10.9
		(8.5		)		(84.1		)		38.9
Total income tax benefit (provision)		$	(151.6	)		$	(326.4	)		$	5.6

^(a)  Excludes federal, state, and local tax provisions of $17.3 million in Fiscal 2017 resulting from stock-based compensation arrangements, which was recorded within equity. In Fiscal 2018, the Company adopted ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which requires such excess tax benefits and shortfalls be reflected prospectively in the income tax benefit (provision) in the statement of operations.

Tax rate reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as set forth below:

		Fiscal Years Ended
		March 30, 2019				March 31, 2018				April 1, 2017
		(millions)
Benefit (provision) for income taxes at the U.S. federal statutory rate(a)		$	(122.3	)		$	(154.3	)		$	36.7
Change due to:
State and local income taxes, net of federal benefit		(12.4		)		(1.6		)		2.7
Foreign income taxed at different rates, net of U.S. foreign tax credits		27.6				74.7				(25.4		)
Unrecognized tax benefits and settlements of tax examinations		(3.4		)		(14.4		)		0.5
Changes in valuation allowance on deferred tax assets		(1.4		)		2.5				(7.3		)
TCJA enactment-related charges		(27.6		)		(221.4		)		—
Compensation-related adjustments		(11.6		)		(15.4		)		—
Other		(0.5		)		3.5				(1.6		)
Total income tax benefit (provision)		$	(151.6	)		$	(326.4	)		$	5.6
Effective tax rate(b)		26.0		%		66.7		%		5.3		%

^(a)  The U.S. federal statutory income tax rate was 21.0% during Fiscal 2019. The previous statutory rate of 35.0%, which was in effect during the Company's Fiscal 2017, was reduced to 21.0% by the TCJA effective January 1, 2018, resulting in a blended statutory rate of 31.5% for the Company's Fiscal 2018.

^(b)  Effective tax rate is calculated by dividing the income tax benefit (provision) by income (loss) before income taxes.

Deferred taxes

Significant components of the Company's deferred tax assets and liabilities are as follows:

		March 30, 2019				March 31, 2018
		(millions)
Goodwill and other intangible assets		$	(149.8	)		$	(149.2	)
Property and equipment		(24.6		)		(36.2		)
Cumulative translation adjustment and hedges		(7.8		)		15.0
Undistributed foreign earnings		(4.7		)		(7.1		)
Deferred compensation		53.4				45.7
Net operating loss carryforwards		48.9				54.8
Lease obligations		44.6				49.6
Receivable allowances and reserves		25.6				38.5
Inventory basis difference		19.0				16.0
Accrued expenses		11.8				12.1
Transfer pricing		9.0				9.0
Unrecognized tax benefits		8.1				10.8
Deferred rent		7.3				6.9
Deferred income		1.2				5.2
Other		13.2				14.4
Valuation allowance		(38.4		)		(35.4		)
Net deferred tax assets(a)		$	16.8			$	50.1

^(a)  Net deferred tax balances as of March 30, 2019 and March 31, 2018 were comprised of non-current deferred tax assets of $67.0 million and $86.6 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $50.2 million and $36.5 million, respectively, recorded within other non-current liabilities in the consolidated balance sheets.

Reconciliation of unrecognized tax benefits, excluding interest and penalties

Reconciliations of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for Fiscal 2019, Fiscal 2018, and Fiscal 2017 are presented below:

		Fiscal Years Ended
		March 30, 2019				March 31, 2018				April 1, 2017
		(millions)
Unrecognized tax benefits beginning balance		$	64.2			$	49.9			$	49.7
Additions related to current period tax positions		4.9				6.8				5.3
Additions related to prior period tax positions		11.7				9.5				15.3
Reductions related to prior period tax positions		(5.5		)		(1.3		)		(3.4		)
Reductions related to expiration of statutes of limitations		(4.1		)		(3.3		)		(4.1		)
Reductions related to settlements with taxing authorities		(3.1		)		(0.7		)		(12.0		)
Additions (reductions) related to foreign currency translation		(2.9		)		3.3				(0.9		)
Unrecognized tax benefits ending balance		$	65.2			$	64.2			$	49.9

Reconciliation of accrued interest and penalties related to unrecognized tax benefits

Reconciliations of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for Fiscal 2019, Fiscal 2018, and Fiscal 2017 are presented below:

		Fiscal Years Ended
		March 30, 2019				March 31, 2018				April 1, 2017
		(millions)
Accrued interest and penalties beginning balance		$	15.0			$	12.8			$	30.9
Net additions charged to expense		3.0				3.8				2.3
Reductions related to prior period tax positions		(3.4		)		(1.6		)		(18.3		)	(a)
Reductions related to settlements with taxing authorities		(0.8		)		(0.3		)		(0.8		)
Additions (reductions) related to foreign currency translation		(0.2		)		0.3				(1.3		)
Accrued interest and penalties ending balance		$	13.6			$	15.0			$	12.8

^(a)   Includes a $15.9 million reversal of an income tax reserve resulting from a change in tax law that impacted an interest assessment on a prior year withholding tax.

X

- Definition

Reconciliation of accrued interest and penalties related to unrecognized tax benefits.

+ References

No definition available.

+ Details

Name:	rl_ReconciliationOfAccruedInterestAndPenaltiesRelatedToUnrecognizedTaxBenefitsTableTextBlock
Namespace Prefix:	rl_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=109238393&loc=d3e36027-109320

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration