RALPH LAUREN CORPORATION
CONSOLIDATED BALANCE SHEETS
March 28,
2020
March 30,
2019
(millions)
ASSETS
Cu
ent assets:
Cash and cash equivalents
$
1,620.4
$
584.1
Short-term investments
495.9
1,403.4
Accounts receivable, net of allowances of $276.2 million and $192.2 million
277.1
398.1
Inventories
736.2
817.8
Income tax receivable
84.8
32.1
Prepaid expenses and other cu
ent assets
160.8
359.3
Total cu
ent assets
3,375.2
3,594.8
Property and equipment, net
979.5
1,039.2
Operating lease right-of-use assets
1,511.6
—
Defe
ed tax assets
245.2
67.0
Goodwill
915.5
919.6
Intangible assets, net
141.0
163.7
Other non-cu
ent assets
111.9
158.5
Total assets
$
7,279.9
$
5,942.8
LIABILITIES AND EQUITY
Cu
ent liabilities:
Short-term debt
$
475.0
$
—
Cu
ent portion of long-term debt
299.6
—
Accounts payable
246.8
202.3
Income tax payable
65.1
29.4
Cu
ent operating lease liabilities
288.4
—
Defe
ed income
14.6
14.8
Accrued expenses and other cu
ent liabilities
702.5
953.6
Total cu
ent liabilities
2,092.0
1,200.1
Long-term debt
396.4
689.1
Long-term operating lease liabilities
1,568.3
—
Income tax payable
132.7
146.7
Non-cu
ent liability for unrecognized tax benefits
88.9
78.8
Other non-cu
ent liabilities
308.5
540.9
Commitments and contingencies (Note 15)
Total liabilities
4,586.8
2,655.6
Equity:
Class A common stock, par value $.01 per share; 104.9 million and 102.9 million shares issued
1.0
1.0
Additional paid-in-capital
2,594.7
2,494.1
Retained earnings
5,994.0
5,979.1
Treasury stock, Class A, at cost; 57.3 million and 50.7 million shares
(5,778.4
)
(5,083.6
)
Accumulated other comprehensive loss
(118.2
)
(103.4
)
Total equity
2,693.1
3,287.2
Total liabilities and equity
$
7,279.9
$
5,942.8
RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Years Ended
March 28,
2020
March 30,
2019
March 31,
2018
(millions, except per share data)
Net revenues
$
6,159.8
$
6,313.0
$
6,182.3
Cost of goods sold
(2,506.5
)
(2,427.0
)
(2,430.6
)
Gross profit
3,653.3
3,886.0
3,751.7
Selling, general, and administrative expenses
(3,237.5
)
(3,168.3
)
(3,095.5
)
Impairment of assets
(31.6
)
(25.8
)
(50.0
)
Restructuring and other charges
(67.2
)
(130.1
)
(108.0
)
Total other operating expenses, net
(3,336.3
)
(3,324.2
)
(3,253.5
)
Operating income
317.0
561.8
498.2
Interest expense
(17.6
)
(20.7
)
(18.2
)
Interest income
34.4
40.8
12.3
Other income (expense), net
(7.4
)
0.6
(3.1
)
Income before income taxes
326.4
582.5
489.2
Income tax benefit (provision)
57.9
(151.6
)
(326.4
)
Net income
$
384.3
$
430.9
$
162.8
Net income per common share:
Basic
$
5.07
$
5.35
$
1.99
Diluted
$
4.98
$
5.27
$
1.97
Weighted-average common shares outstanding:
Basic
75.8
80.6
81.7
Diluted
77.2
81.7
82.5
Dividends declared per share
$
2.75
$
2.50
$
2.00
RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Fiscal Years Ended
March 28,
2020
March 30,
2019
March 31,
2018
(millions)
Net income
$
384.3
$
430.9
$
162.8
Other comprehensive income (loss), net of tax:
Foreign cu
ency translation gains (losses)
(11.9
)
(39.2
)
126.9
Net gains (losses) on cash flow hedges
(2.2
)
36.2
(30.6
)
Net gains (losses) on defined benefit plans
(0.7
)
(1.9
)
3.6
Other comprehensive income (loss), net of tax
(14.8
)
(4.9
)
99.9
Total comprehensive income
$
369.5
$
426.0
$
262.7
RALPH LAUREN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Years Ended
March 28,
2020
March 30,
2019
March 31,
2018
(millions)
Cash flows from operating activities:
Net income
$
384.3
$
430.9
$
162.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
269.5
281.3
295.2
Defe
ed income tax expense (benefit)
(168.8
)
8.5
84.1
Loss on sale of property
—
11.6
—
Non-cash stock-based compensation expense
100.6
88.6
74.5
Non-cash impairment of assets, including equity method investment
38.7
25.8
50.0
Other non-cash charges
56.4
6.9
11.9
Changes in operating assets and liabilities:
Accounts receivable
57.6
10.1
34.5
Inventories
72.3
(83.6
)
65.4
Prepaid expenses and other cu
ent assets
58.2
(40.5
)
(15.1
)
Accounts payable and accrued liabilities
(64.3
)
(4.7
)
64.6
Income tax receivables and payables
(42.5
)
13.9
166.5
Other balance sheet changes
(7.4
)
35.7
(19.3
)
Net cash provided by operating activities
754.6
783.8
975.1
Cash flows from investing activities:
Capital expenditures
(270.3
)
(197.7
)
(161.6
)
Purchases of investments
(1,289.7
)
(3,030.8
)
(1,605.6
)
Proceeds from sales and maturities of investments
2,240.4
2,357.5
1,582.7
Acquisitions and ventures
0.9
(4.5
)
(4.6
)
Proceeds from sale of property
20.8
20.0
—
Settlement of net investment hedges
—
(23.8
)
—
Net cash provided by (used in) investing activities
702.1
(879.3
)
(189.1
)
Cash flows from financing activities:
Proceeds from credit facilities
475.0
—
10.1
Repayments of bo
owings on credit facilities
—
(9.9
)
—
Proceeds from the issuance of long-term debt
—
398.1
—
Repayments of long-term debt
—
(300.0
)
—
Payments of finance lease obligations
(13.6
)
(19.6
)
(28.2
)
Payments of dividends
(203.9
)
(190.7
)
(162.4
)
Repurchases of common stock, including shares su
endered for tax withholdings
(694.8
)
(502.6
)
(17.1
)
Proceeds from exercise of stock options
—
21.8
0.1
Other financing activities
(0.9
)
(2.8
)
—
Net cash used in financing activities
(438.2
)
(605.7
)
(197.5
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(15.2
)
(27.8
)
55.2
Net increase (decrease) in cash, cash equivalents, and restricted cash
1,003.3
(729.0
)
643.7
Cash, cash equivalents, and restricted cash at beginning of period
626.5
1,355.5
711.8
Cash, cash equivalents, and restricted cash at end of period
$
1,629.8
$
626.5
$
1,355.5
RALPH LAUREN CORPORATION
(PARTIAL) CONSOLIDATED STATEMENTS OF EQUITY
Additional
Treasury Stock
Common Stock
Paid-in
Retained
at Cost
Total
Shares
Amount
Capital
Earnings
Shares
Amount
AOCI
Equity
(amounts in millions)
Balance at March 30, 2019
128.8
$
1.3
$
2,493.8
$
5,979.1
50.7
$
(5,083.6
)
$
(103.4
)
$
3,287.2
Comprehensive income:
Net income
384.3
Other comprehensive loss