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Segment Information | 6 Months Ended
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Sep. 26, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company has three reportable segments based on its business activities and organization:
• | North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, footwear, accessories, home furnishings, and related products made through the Company's retail and wholesale businesses in the U.S. and Canada, excluding Club Monaco. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its factory stores, and its digital commerce site, www.RalphLauren.com. The Company's wholesale business in North America is comprised primarily of sales to department stores, and to a lesser extent, specialty stores.
• | Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, footwear, accessories, home furnishings, and related products made through the Company's retail and wholesale businesses in Europe, the Middle East, and Latin America, excluding Club Monaco. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its factory stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised of a varying mix of sales to both department stores and specialty stores, depending on the country, as well as to various third-party digital partners.
• | Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, footwear, accessories, home furnishings, and related products made through the Company's retail and wholesale businesses in Asia, Australia, and New Zealand. The Company's retail business in Asia is primarily comprised of its Ralph Lauren stores, its factory stores, its concession-based shop-within-shops, and its various digital commerce sites. In addition, the Company sells its products online through various third-party digital partner commerce sites. In Asia, the Company's wholesale business is comprised primarily of sales to department stores, with related products distributed through shop-within-shops.
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 and wholesale businesses in the U.S., Canada, and Europe, and its licensing alliances in Europe and Asia, and (ii) royalty revenues earned through its global licensing alliances, excluding Club Monaco. The Company's segment reporting structure is consistent with how it establishes its overall business strategy, allocates resources, and assesses performance of its business. The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3 of the Fiscal 2020 10-K. 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-related charges, impairment of assets, and certain other one-time items, 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. Net revenues and operating income (loss) for each of the Company's segments are as follows:
|  | Three Months Ended |  | Six Months Ended
|  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  | (millions)
Net revenues: |  |  |  |  |  |  |  |
North America |  | $ | 542.9 |  |  | $ | 881.2 |  |  | $ | 708.0 |  |  | $ | 1,600.6 |
Europe |  | 359.5 |  |  | 480.2 |  |  | 480.2 |  |  | 841.0 |
Asia |  | 236.6 |  |  | 255.3 |  |  | 408.5 |  |  | 513.9 |
Other non-reportable segments |  | 54.5 |  |  | 89.5 |  |  | 84.3 |  |  | 179.5 |
Total net revenues |  | $ | 1,193.5 |  |  | $ | 1,706.2 |  |  | $ | 1,681.0 |  |  | $ | 3,135.0 |
|  | Three Months Ended |  | Six Months Ended
|  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  | (millions)
Operating income (loss)(a): |  |  |  |  |  |  |  |
North America |  | $ | 123.3 |  |  | $ | 192.4 |  |  | $ | 98.5 |  |  | $ | 342.5 |
Europe |  | 83.6 |  |  | 140.6 |  |  | 66.7 |  |  | 220.0 |
Asia |  | 41.1 |  |  | 40.9 |  |  | 51.2 |  |  | 89.0 |
Other non-reportable segments |  | 15.2 |  |  | 22.8 |  |  | 16.1 |  |  | 55.7 |
|  | 263.2 |  |  | 396.7 |  |  | 232.5 |  |  | 707.2 |
Unallocated corporate expenses |  | (123.0 | ) |  | (149.1 | ) |  | (253.3 | ) |  | (286.7 | )
Unallocated restructuring and other charges(b) |  | (160.5 | ) |  | (14.5 | ) |  | (167.5 | ) |  | (44.1 | )
Total operating income (loss) |  | $ | (20.3 | ) |  | $ | 233.1 |  |  | $ | (188.3 | ) |  | $ | 376.4 |
(a) | Segment operating income (loss) during the three months ended September 26, 2020 reflects net bad debt expense reversals of $5.3 million, $3.0 million, and $0.6 million related to North America, Europe, and other non-reportable segments, respectively, and $20.8 million, $4.0 million, and $0.6 million related to North America, Europe, and other non-reportable segments, respectively, during the six months ended September 26, 2020, primarily related to adjustments to reserves previously established in connection with COVID-19 business disruptions. Segment operating income (loss) and unallocated corporate expenses during the three-month and six-month periods ended September 26, 2020 and September 28, 2019 also included asset impairment charges (see Note 7), which are detailed below:
|  |  | Three Months Ended |  | Six Months Ended
|  |  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  |  | (millions)
| Asset impairment charges: |  |  |  |  |  |  |  |
| North America |  | $ | (9.7 | ) |  | $ | — |  |  | $ | (9.9 | ) |  | $ | — |
| Europe |  | (21.2 | ) |  | — |  |  | (21.2 | ) |  | — |
| Asia |  | — |  |  | — |  |  | (1.3 | ) |  | — |
| Other non-reportable segments |  | (0.1 | ) |  | (3.8 | ) |  | (0.7 | ) |  | (3.8 | )
| Unallocated corporate expenses |  | — |  |  | (2.3 | ) |  | — |  |  | (3.5 | )
| Total asset impairment charges |  | $ | (31.0 | ) |  | $ | (6.1 | ) |  | $ | (33.1 | ) |  | $ | (7.3 | )
(b) | The three-month and six-month periods ended September 26, 2020 and September 28, 2019 included certain unallocated restructuring and other charges (see Note 8), which are detailed below:
|  |  | Three Months Ended |  | Six Months Ended
|  |  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  |  | (millions)
| Unallocated restructuring and other charges: |  |  |  |  |  |  |  |
| North America-related |  | $ | (41.2 | ) |  | $ | — |  |  | $ | (41.3 | ) |  | $ | (0.7 | )
| Europe-related |  | (26.3 | ) |  | (1.3 | ) |  | (26.3 | ) |  | (3.1 | )
| Asia-related |  | (10.1 | ) |  | (0.3 | ) |  | (9.9 | ) |  | (0.8 | )
| Other non-reportable segment-related |  | (0.7 | ) |  | (0.7 | ) |  | (1.8 | ) |  | (0.7 | )
| Corporate operations-related |  | (79.3 | ) |  | (10.8 | ) |  | (80.9 | ) |  | (14.8 | )
| Unallocated restructuring charges |  | (157.6 | ) |  | (13.1 | ) |  | (160.2 | ) |  | (20.1 | )
| Other charges (see Note 8) |  | (2.9 | ) |  | (1.4 | ) |  | (7.3 | ) |  | (24.0 | )
| Total unallocated restructuring and other charges |  | $ | (160.5 | ) |  | $ | (14.5 | ) |  | $ | (167.5 | ) |  | $ | (44.1 | )
Depreciation and amortization expense for the Company's segments is as follows:
|  | Three Months Ended |  | Six Months Ended
|  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  | (millions)
Depreciation and amortization expense: |  |  |  |  |  |  |  |
North America |  | $ | 17.6 |  |  | $ | 18.6 |  |  | $ | 35.7 |  |  | $ | 37.5 |
Europe |  | 8.1 |  |  | 7.7 |  |  | 15.8 |  |  | 15.3 |
Asia |  | 14.4 |  |  | 14.7 |  |  | 28.6 |  |  | 29.7 |
Other non-reportable segments |  | 1.0 |  |  | 1.5 |  |  | 2.1 |  |  | 2.8 |
Unallocated corporate |  | 20.4 |  |  | 24.1 |  |  | 43.0 |  |  | 47.5 |
Total depreciation and amortization expense |  | $ | 61.5 |  |  | $ | 66.6 |  |  | $ | 125.2 |  |  | $ | 132.8 |
Net revenues by geographic location of the reporting subsidiary are as follows:
|  | Three Months Ended |  | Six Months Ended
|  | September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
|  | (millions)
Net revenues(a): |  |  |  |  |  |  |  |
The Americas(b) |  | $ | 597.8 |  |  | $ | 972.6 |  |  | $ | 792.5 |  |  | $ | 1,783.0 |
Europe(c) |  | 358.8 |  |  | 478.0 |  |  | 479.7 |  |  | 837.5 |
Asia(d) |  | 236.9 |  |  | 255.6 |  |  | 408.8 |  |  | 514.5 |
Total net revenues |  | $ | 1,193.5 |  |  | $ | 1,706.2 |  |  | $ | 1,681.0 |  |  | $ | 3,135.0 |
(a) | Net revenues 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. during the three-month and six-month periods ended September 26, 2020 were $567.7 million and $753.8 million, respectively, and $911.1 million and $1.671 billion during the three-month and six-month periods ended September 28, 2019, respectively.
(c) | Includes the Middle East.
(d) Includes Australia and New Zealand.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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