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Restructuring and Other Charges | 3 Months Ended
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Jun. 29, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges A description of significant restructuring and other activities and their related costs is provided below. Fiscal 2019 Restructuring Plan On June 4, 2018, the Company's Board of Directors approved a restructuring plan associated with the Company's strategic objective of operating with discipline to drive sustainable growth (the "Fiscal 2019 Restructuring Plan"). The Fiscal 2019 Restructuring Plan includes the following restructuring-related activities: (i) rightsizing and consolidation of the Company's global distribution network and corporate offices; (ii) targeted severance-related actions; and (iii) closure of certain of its stores and shop-within-shops. Actions associated with the Fiscal 2019 Restructuring Plan were largely completed during Fiscal 2019, with certain activities shifting into Fiscal 2020. In connection with the Fiscal 2019 Restructuring Plan, the Company expects to incur total estimated charges of approximately $125 million to $150 million, comprised of cash-related charges of approximately $90 million to $110 million and non-cash charges of approximately $35 million to $40 million. A summary of charges recorded in connection with the Fiscal 2019 Restructuring Plan during the fiscal periods presented, as well as the cumulative charges recorded since its inception, is as follows:
|  | Three Months Ended |  |
|  | June 29, 2019 |  | June 30, 2018 |  | Cumulative Charges
|  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |
Severance and benefit costs |  | $ | 5.9 |  |  | $ | 8.2 |  |  | $ | 66.1 |
Lease termination and store closure costs |  | 0.3 |  |  | — |  |  | 2.1 |
Other cash charges |  | 0.8 |  |  | — |  |  | 8.2 |
Total cash-related restructuring charges |  | 7.0 |  |  | 8.2 |  |  | 76.4 |
Non-cash charges: |  |  |  |  |  |
Impairment of assets (see Note 7) |  | 1.2 |  |  | 1.3 |  |  | 11.5 |
Inventory-related charges(a) |  | 0.6 |  |  | — |  |  | 6.6 |
Loss on sale of property(b) |  | — |  |  | — |  |  | 11.6 |
Total non-cash charges |  | 1.8 |  |  | 1.3 |  |  | 29.7 |
Total charges |  | $ | 8.8 |  |  | $ | 9.5 |  |  | $ | 106.1 |
(a) | Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.
(b) | Loss on sale of property, which was recorded within restructuring and other charges in the consolidated statements of operations during the third quarter of Fiscal 2019, was incurred in connection with the sale of one of the Company's distribution centers in North America. Total cash proceeds from the sale were $20.0 million.
A summary of current period activity in the restructuring reserve related to the Fiscal 2019 Restructuring Plan is as follows:
|  | Severance and Benefit Costs |  | Lease Termination and Store Closure Costs |  | Other Cash Charges |  | Total
|  | (millions)
Balance at March 30, 2019 |  | $ | 41.0 |  |  | $ | 0.5 |  |  | $ | 0.1 |  |  | $ | 41.6 |
Additions charged to expense |  | 5.9 |  |  | 0.3 |  |  | 0.8 |  |  | 7.0 |
Cash payments charged against reserve |  | (16.2 | ) |  | (0.3 | ) |  | (0.2 | ) |  | (16.7 | )
Non-cash adjustments(a) |  | — |  |  | (0.4 | ) |  | — |  |  | (0.4 | )
Balance at June 29, 2019 |  | $ | 30.7 |  |  | $ | 0.1 |  |  | $ | 0.7 |  |  | $ | 31.5 |
(a) | Certain lease-related liabilities previously recognized in connection with the Company's closure and cessation of use of real estate locations were reclassified and reflected as reductions of the respective operating lease ROU assets initially recognized upon adoption of ASU 2016-02 (see Note 4).
Other Restructuring Plans The Company recorded restructuring-related charges of $6.5 million during the three months ended June 30, 2018 related to certain other restructuring plans initiated prior to Fiscal 2019, primarily consisting of severance and benefit costs. Actions associated with these other plans were completed in previous fiscal years. A summary of current period activity in the restructuring reserve related to these other plans is as follows:
|  | Severance and Benefit Costs |  | Lease Termination and Store Closure Costs |  | Other Cash Charges |  | Total
|  | (millions)
Balance at March 30, 2019 |  | $ | 6.5 |  |  | $ | 23.3 |  |  | $ | 0.4 |  |  | $ | 30.2 |
Additions charged to expense |  | — |  |  | — |  |  | — |  |  | — |
Cash payments charged against reserve |  | (3.2 | ) |  | (0.3 | ) |  | — |  |  | (3.5 | )
Non-cash adjustments(a) |  | — |  |  | (18.9 | ) |  | — |  |  | (18.9 | )
Balance at June 29, 2019 |  | $ | 3.3 |  |  | $ | 4.1 |  |  | $ | 0.4 |  |  | $ | 7.8 |
(a) | Certain lease-related liabilities previously recognized in connection with the Company's closure and cessation of use of real estate locations were reclassified and reflected as reductions of the respective operating lease ROU assets initially recognized upon adoption of ASU 2016-02 (see Note 4).
Refer to Note 9 of the Fiscal 2019 10-K for additional discussion regarding these other restructuring plans. Other Charges The Company recorded other charges of $20.8 million during the three months ended June 29, 2019 related to the donation of net cash proceeds received from the sale of its corporate jet. This donation was made to the Polo Ralph Lauren Foundation, a non-profit, charitable foundation that supports various philanthropic programs. Additionally, during the three months ended June 29, 2019, the Company recorded other charges of $1.8 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired. The Company recorded other charges of $3.5 million during the three months ended June 30, 2018 related to depreciation expense associated with its former Polo store at 711 Fifth Avenue in New York City, recorded after the store closed during the first quarter of Fiscal 2018. Additionally, during the three months ended June 30, 2018, the Company recorded other charges of $4.2 million primarily related to a customs audit. Refer to Note 14 of the Fiscal 2019 10-K for additional discussion regarding the Company's customs audit.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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