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Restructuring and Other Charges | 12 Months Ended
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Mar. 28, 2020
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 included 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 are complete and no additional charges are expected to be incurred in connection with this plan. A summary of the 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:
|  | Fiscal Year Ended |  | Cumulative Charges
|  | March 28, 2020 |  | March 30, 2019 |
|  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |
Severance and benefit costs |  | $ | 30.1 |  |  | $ | 60.2 |  |  | $ | 90.3 |
Lease termination and store closure costs |  | 0.5 |  |  | 1.8 |  |  | 2.3 |
Other cash charges |  | 3.4 |  |  | 7.4 |  |  | 10.8 |
Total cash-related restructuring charges |  | 34.0 |  |  | 69.4 |  |  | 103.4 |
Non-cash charges: |  |  |  |  |  |
Impairment of assets (see Note 8) |  | 8.7 |  |  | 10.3 |  |  | 19.0 |
Inventory-related charges(a) |  | 2.2 |  |  | 6.0 |  |  | 8.2 |
Accelerated stock-based compensation expense(b) |  | 3.6 |  |  | — |  |  | 3.6 |
Loss on sale of property(c) |  | — |  |  | 11.6 |  |  | 11.6 |
Total non-cash charges |  | 14.5 |  |  | 27.9 |  |  | 42.4 |
Total charges |  | $ | 48.5 |  |  | $ | 97.3 |  |  | $ | 145.8 |
(a) | Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.
(b) | 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.
(c) | Loss on sale of property, which was recorded within restructuring and other charges in the consolidated statements of operations during 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 the 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 31, 2018 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions charged to expense |  | 60.2 |  |  | 1.8 |  |  | 7.4 |  |  | 69.4 |
Cash payments charged against reserve |  | (19.0 | ) |  | (2.1 | ) |  | (7.3 | ) |  | (28.4 | )
Non-cash adjustments |  | (0.2 | ) |  | 0.8 |  |  | — |  |  | 0.6 |
Balance at March 30, 2019 |  | 41.0 |  |  | 0.5 |  |  | 0.1 |  |  | 41.6 |
Additions charged to expense |  | 30.1 |  |  | 0.5 |  |  | 3.4 |  |  | 34.0 |
Cash payments charged against reserve |  | (47.6 | ) |  | (0.6 | ) |  | (2.9 | ) |  | (51.1 | )
Non-cash adjustments(a) |  | — |  |  | (0.4 | ) |  | — |  |  | (0.4 | )
Balance at March 28, 2020 |  | $ | 23.5 |  |  | $ | — |  |  | $ | 0.6 |  |  | $ | 24.1 |
(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).
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"). In connection with the Way Forward Plan, the Company refocused on its core brands and its product, marketing, and shopping experience to increase desirability and relevance. It also evolved its operating model by significantly improving quality of sales, reducing supply chain lead times, improving its sourcing, and executing a disciplined multi-channel distribution and expansion strategy. The Company reduced its cost structure and implemented a return on investment-driven financial model to free up resources to invest in the brand and drive high-quality sales. The Company also strengthened its leadership team and created a more nimble organization by moving from an average of nine to six layers of management. The Way Forward Plan also included 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, which were substantially completed during the Company's fiscal year ended April 1, 2017 ("Fiscal 2017"), resulted in a reduction in workforce and the closure of certain stores and shop-within-shops. On March 30, 2017, the Company's Board of Directors approved the following additional restructuring-related activities associated with the Way Forward Plan: (i) the restructuring of its in-house global digital commerce platform which was in development and shifting to a more cost-effective, flexible 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. These additional restructuring-related activities were largely completed during Fiscal 2018 and resulted in a further reduction in workforce and the closure of certain corporate office and store locations. Actions associated with the Way Forward Plan are complete and no additional charges are expected to be incurred in connection with this plan. A summary of the charges recorded in connection with the Way Forward Plan during the fiscal periods presented, as well as the cumulative charges recorded since its inception, is as follows:
|  | Fiscal Years Ended |  | Cumulative Charges
|  | March 30, 2019 |  | March 31, 2018 |
|  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |
Severance and benefits costs |  | $ | 7.0 |  |  | $ | 39.0 |  |  | $ | 228.7 |
Lease termination and store closure costs |  | 1.4 |  |  | 33.2 |  |  | 121.9 |
Other cash charges |  | 0.8 |  |  | 6.3 |  |  | 26.2 |
Total cash-related restructuring charges |  | 9.2 |  |  | 78.5 |  |  | 376.8 |
Non-cash charges: |  |  |  |  |  |
Impairment of assets (see Note 8) |  | 0.4 |  |  | 16.0 |  |  | 251.0 |
Inventory-related charges(a) |  | 1.2 |  |  | 7.6 |  |  | 206.7 |
Accelerated stock-based compensation expense(b) |  | — |  |  | 0.7 |  |  | 0.7 |
Other non-cash charges |  | 3.4 |  |  | — |  |  | 3.4 |
Total non-cash charges |  | 5.0 |  |  | 24.3 |  |  | 461.8 |
Total charges |  | $ | 14.2 |  |  | $ | 102.8 |  |  | $ | 838.6 |
(a) | Cumulative inventory-related charges include $155.2 million associated with the destruction of inventory out of current liquidation channels. Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.
(b) | 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.
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 1, 2017 |  | $ | 94.3 |  |  | $ | 34.3 |  |  | $ | 6.6 |  |  | $ | 135.2 |
Additions charged to expense |  | 39.0 |  |  | 33.2 |  |  | 6.3 |  |  | 78.5 |
Cash payments charged against reserve |  | (97.9 | ) |  | (22.8 | ) |  | (11.1 | ) |  | (131.8 | )
Non-cash adjustments |  | 2.2 |  |  | 8.8 |  |  | — |  |  | 11.0 |
Balance at March 31, 2018 |  | 37.6 |  |  | 53.5 |  |  | 1.8 |  |  | 92.9 |
Additions charged to expense |  | 7.0 |  |  | 1.4 |  |  | 0.8 |  |  | 9.2 |
Cash payments charged against reserve |  | (37.7 | ) |  | (33.6 | ) |  | (2.2 | ) |  | (73.5 | )
Non-cash adjustments |  | (0.4 | ) |  | 0.6 |  |  | — |  |  | 0.2 |
Balance at March 30, 2019 |  | 6.5 |  |  | 21.9 |  |  | 0.4 |  |  | 28.8 |
Additions charged to expense |  | — |  |  | — |  |  | — |  |  | — |
Cash payments charged against reserve |  | (4.9 | ) |  | (2.1 | ) |  | (0.1 | ) |  | (7.1 | )
Non-cash adjustments(a) |  | — |  |  | (18.3 | ) |  | — |  |  | (18.3 | )
Balance at March 28, 2020 |  | $ | 1.6 |  |  | $ | 1.5 |  |  | $ | 0.3 |  |  | $ | 3.4 |
(a) | Includes $17.7 million of certain lease-related liabilities previously recognized in connection with the Company's closure and cessation of use of real estate locations that 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 made cash payments of $0.2 million, $3.2 million, and $7.6 million during Fiscal 2020, Fiscal 2019, and Fiscal 2018, respectively, which were applied against the reserve associated with its restructuring plan initiated prior to Fiscal 2017. Additionally, during Fiscal 2020, $1.2 million of 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). As of March 28, 2020, there was no remaining restructuring reserve associated with this plan, and no charges were recorded for this plan in any of the fiscal years presented. Other Charges During Fiscal 2020, the Company recorded other charges of $20.8 million related to the donation of net cash proceeds received from the sale of its corporate jet. This donation was made to the Ralph Lauren Corporate Foundation (formerly known as the Polo Ralph Lauren Foundation), a non-profit, charitable foundation that supports various philanthropic programs. Additionally, during Fiscal 2020, the Company recorded other charges of $8.8 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. During Fiscal 2019, the Company recorded other charges of $14.1 million related to depreciation expense associated with the Company's 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 Fiscal 2019, the Company recorded other charges of $4.2 million primarily related to a customs audit, as well as $18.2 million primarily related to the launch of its new sabbatical leave program, which entitles eligible employees to periodic paid leave based on the attainment of certain employment tenure milestones. Other than this initial charge to establish its estimated liability for services rendered to-date, the Company does not expect there will be a significant, ongoing impact to the consolidated financial statements in future periods related to its sabbatical leave program. During Fiscal 2018, the Company recorded other charges of $14.1 million related to depreciation expense associated with the Company's former Polo store at 711 Fifth Avenue in New York City, $10.2 million related to a customs audit, and $6.7 million (inclusive of accelerated stock-based compensation expense of $2.1 million) primarily related to the departure of Mr. Stefan Larsson as the Company's President and Chief Executive Officer and as a member of its Board of Directors, effective as of May 1, 2017. Refer to the Form 8-K filed on February 2, 2017 for additional discussion regarding the departure of Mr. Larsson. These other charges recorded in Fiscal 2018 were partially offset by the favorable impact of $2.2 million related to the reversal of reserves associated with the settlement of certain non-income tax issues.

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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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