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Restructuring and Other Charges | 9 Months Ended
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Dec. 26, 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 provided below. Fiscal 2021 Strategic Realignment Plan The Company has begun efforts to realign its resources to support future growth and profitability, and to create a sustainable cost structure. The key areas of the Company's evaluation include its: (i) team organizational structures and ways of working; (ii) real estate footprint and related costs across corporate offices, distribution centers, and direct-to-consumer retail and wholesale doors; and (iii) brand portfolio. In connection with the first initiative, on September 17, 2020, the Company's Board of Directors approved a restructuring plan (the "Fiscal 2021 Strategic Realignment Plan") to reduce its global workforce by the end of Fiscal 2021. Additionally, during its preliminary review of its store portfolio during the second quarter of Fiscal 2021, the Company made the decision to close its Polo store on Regent Street in London. On October 29, 2020, the Company announced the planned transition of its Chaps brand to a fully licensed business model, consistent with its long-term brand elevation strategy in connection with its third initiative. Specifically, the Company entered into a multi-year licensing partnership, taking effect on August 1, 2021 after a transition period, with an affiliate of 5 Star Apparel LLC, a division of the OVED Group, to manufacture, market, and distribute Chaps menswear and womenswear. This agreement is expected to create incremental value for the Company by enabling an even greater focus on elevating its core brands in the marketplace, reducing its direct exposure to the North America department store channel, and setting up Chaps to deliver on its potential with an experienced partner that is focused on nurturing the brand. Additionally, on February 3, 2021, the Company’s Board of Directors approved additional realignment actions related to its real estate initiative. Specifically, the Company plans to further rightsize and consolidate its global corporate offices to better align with its current organizational profile and new ways of working. The Company also expects to close certain of its stores to improve overall profitability. Additionally, the Company plans to complete the consolidation of its existing North America distribution centers in order to drive greater efficiencies, improve sustainability, and deliver a better consumer experience. In connection with these collective realignment initiatives, the Company now expects to incur total estimated pre-tax charges of approximately $300 million to $350 million, comprised of cash-related restructuring charges of approximately $185 million to $200 million and non-cash charges of approximately $115 million and $150 million. In addition to these actions, the Company expects to execute additional restructuring-related actions associated with its aforementioned initiatives in order to further support future growth and profitability. A summary of the charges recorded in connection with the Fiscal 2021 Strategic Realignment Plan during the fiscal periods presented (inclusive of immaterial other restructuring-related charges previously recorded during the first quarter of Fiscal 2021) is as follows:
|  | December 26, 2020 |  |
|  | Three Months Ended |  |  |  | Nine Months Ended |  |  |  |
|  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 3.1 |  |  |  |  | $ | 159.4 |  |  |  |  |
Other cash charges |  | 5.8 |  |  |  |  | 9.7 |  |  |  |  |
Total cash-related restructuring charges |  | 8.9 |  |  |  |  | 169.1 |  |  |  |  |
Non-cash charges: |  |  |  |  |  |  |  |  |  |
Impairment of assets (see Note 7) |  | 2.6 |  |  |  |  | 26.9 |  |  |  |  |
Inventory-related charges(a) |  | 7.0 |  |  |  |  | 8.3 |  |  |  |  |
Total non-cash charges |  | 9.6 |  |  |  |  | 35.2 |  |  |  |  |
Total charges |  | $ | 18.5 |  |  |  |  | $ | 204.3 |  |  |  |  |
(a)Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations. A summary of current period activity in the restructuring reserve related to the Fiscal 2021 Strategic Realignment Plan is as follows:
|  | Severance and Benefit Costs |  |  |  | Other Cash Charges |  | Total
|  | (millions)
Balance at March 28, 2020 |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |
Additions charged to expense |  | 159.4 |  |  |  |  | 9.7 |  |  | 169.1 |
Cash payments charged against reserve |  | (18.6) |  |  |  |  | (7.9) |  |  | (26.5) |
Non-cash adjustments |  | 1.5 |  |  |  |  | — |  |  | 1.5 |
Balance at December 26, 2020 |  | $ | 142.3 |  |  |  |  | $ | 1.8 |  |  | $ | 144.1 |
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 included 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:
|  |  |  | December 28, 2019 |  |
|  |  |  | Three Months Ended |  |  |  | Nine Months Ended |  | Cumulative Charges
|  |  |  | (millions)
Cash-related restructuring charges: |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  |  |  | $ | 3.0 |  |  |  |  | $ | 17.9 |  |  | $ | 90.3 |
Lease termination and store closure costs |  |  |  | — |  |  |  |  | 0.5 |  |  | 2.3 |
Other cash charges |  |  |  | 1.0 |  |  |  |  | 2.1 |  |  | 10.8 |
Total cash-related restructuring charges |  |  |  | 4.0 |  |  |  |  | 20.5 |  |  | 103.4 |
Non-cash charges: |  |  |  |  |  |  |  |  |  |
Impairment of assets (see Note 7) |  |  |  | 3.0 |  |  |  |  | 6.5 |  |  | 19.0 |
Inventory-related charges(a) |  |  |  | — |  |  |  |  | 1.0 |  |  | 8.2 |
Accelerated stock-based compensation expense(b) |  |  |  | — |  |  |  |  | 3.6 |  |  | 3.6 |
Loss on sale of property(c) |  |  |  | — |  |  |  |  | — |  |  | 11.6 |
Total non-cash charges |  |  |  | 3.0 |  |  |  |  | 11.1 |  |  | 42.4 |
Total charges |  |  |  | $ | 7.0 |  |  |  |  | $ | 31.6 |  |  | $ | 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, was incurred in connection with the sale of one of the Company's distribution centers in North America. A summary of current period activity in the restructuring reserve related to the Fiscal 2019 Restructuring Plan is as follows:
|  | Severance and Benefit Costs |  |  |  | Other Cash Charges |  | Total
|  | (millions)
Balance at March 28, 2020 |  | $ | 23.5 |  |  |  |  | $ | 0.6 |  |  | $ | 24.1 |
Additions charged to expense |  | — |  |  |  |  | — |  |  | — |
Cash payments charged against reserve |  | (18.2) |  |  |  |  | (0.6) |  |  | (18.8) |
Balance at December 26, 2020 |  | $ | 5.3 |  |  |  |  | $ | — |  |  | $ | 5.3 |
Other Charges The Company recorded other charges of $1.0 million and $8.3 million during the three-month and nine-month periods ended December 26, 2020, respectively, and $3.0 million and $6.2 million during the three-month and nine-month periods ended December 28, 2019, respectively, 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 also recorded other charges of $20.8 million during the nine months ended December 28, 2019 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.

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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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