Rendering
Component: (Network and Table) |
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Network | 2318301 - Disclosure - Income Taxes (Tables) (http://www.coach.com/role/IncomeTaxesTables) |
Table | (Implied) |
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis] | 0001116132 (http://www.sec.gov/CIK) |
Income Tax Disclosure [Abstract] | Period [Axis] |
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2015-06-28 - 2016-07-02 |
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Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | The provisions for income taxes, computed by applying the U.S. statutory rate to income before taxes, as reconciled to the actual provisions were (in millions): | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | July 2, 2016 | | June 27, 2015 | | June 28, 2014 | | Amount | | Percentage | | Amount | | Percentage | | Amount | | Percentage | Income before provision for income taxes: | |
| | |
| | |
| | |
| | |
| | |
| United States | $ | 357.5 |
| | 57.1 | % | | $ | 361.2 |
| | 59.1 | % | | $ | 818.6 |
| | 72.9 | % | Foreign | 269.1 |
| | 42.9 |
| | 250.4 |
| | 40.9 |
| | 303.7 |
| | 27.1 |
| Total income before provision for income taxes | $ | 626.6 |
| | 100.0 | % | | $ | 611.6 |
| | 100.0 | % | | $ | 1,122.3 |
| | 100.0 | % | | | | | | | | | | | | | Tax expense at U.S. statutory rate | $ | 219.3 |
| | 35.0 | % | | $ | 214.0 |
| | 35.0 | % | | $ | 392.8 |
| | 35.0 | % | State taxes, net of federal benefit | 11.2 |
| | 1.8 |
| | 26.4 |
| | 4.3 |
| | 34.6 |
| | 3.1 |
| Effects of foreign operations(1) | (53.7 | ) | | (8.6 | ) | | (79.7 | ) | | (13.0 | ) | | (93.1 | ) | | (8.3 | ) | Effects of foreign tax credits and acquisition reorganization | (19.6 | ) |
| (3.1 | ) | | 9.3 |
|
| 1.5 |
|
| (1.5 | ) |
| (0.1 | ) | Other, net | 8.9 |
| | 1.4 |
| | 39.2 |
| | 6.4 |
| | 8.2 |
| | 0.7 |
| Taxes at effective worldwide rates | $ | 166.1 |
| | 26.5 | % | | $ | 209.2 |
| | 34.2 | % | | $ | 341.0 |
| | 30.4 | % |
| | (1) | The "Effects of foreign operations" impact, as noted above, is primarily attributable to the Company's foreign tax rate differential of its Greater China and Japan tax jurisdictions. |
Current and deferred tax provision (benefit) was: | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | July 2, 2016 | | June 27, 2015 | | June 28, 2014 | | Current | | Deferred | | Current | | Deferred | | Current | | Deferred | | (millions) | Federal | $ | 145.8 |
| | $ | (52.0 | ) | | $ | 142.9 |
| | $ | 10.5 |
| | $ | 283.4 |
| | $ | (6.8 | ) | Foreign | 46.8 |
| | 2.2 |
| | 9.8 |
| | 13.8 |
| | 20.0 |
| | (5.7 | ) | State | 25.8 |
| | (2.5 | ) | | 35.0 |
| | (2.8 | ) | | 60.4 |
| | (10.3 | ) | Total current and deferred tax provision (benefit) | $ | 218.4 |
| | $ | (52.3 | ) | | $ | 187.7 |
| | $ | 21.5 |
| | $ | 363.8 |
| | $ | (22.8 | ) |
|
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were: | | | | | | | | | | July 2, 2016 | | June 27, 2015 | | (millions) | Share-based compensation | $ | 68.5 |
| | $ | 66.7 |
| Reserves not deductible until paid | 69.6 |
| | 68.1 |
| Deferred rent | 27.9 |
| | 16.4 |
| Employee benefits | 48.3 |
| | 48.4 |
| Basis difference in foreign investments | 21.5 |
| | — |
| Net operating loss(1) | 176.7 |
| | 178.9 |
| Other | 4.2 |
| | 0.8 |
| Prepaid expenses | 0.8 |
| | 1.9 |
| Property and equipment | 34.3 |
| | 16.4 |
| Gross deferred tax assets | 451.8 |
| | 397.6 |
| Valuation allowance(1) | 173.4 |
| | 169.8 |
| Deferred tax assets after valuation allowance | $ | 278.4 |
| | $ | 227.8 |
| | | | | Goodwill | 88.2 |
| | 73.6 |
| Other | (1.3 | ) | | — |
| Gross deferred tax liabilities | 86.9 |
| | 73.6 |
| Net deferred tax assets | $ | 191.5 |
| | $ | 154.2 |
| | | | | Consolidated Balance Sheets Classification(2) | |
| | |
| Deferred income taxes – current asset | $ | — |
| | $ | 98.4 |
| Deferred income taxes – noncurrent asset | 248.8 |
| | 115.8 |
| Deferred income taxes – current liability | — |
| | — |
| Deferred income taxes – noncurrent liability (included within "Other Liabilities") | (57.3 | ) | | (60.0 | ) | Net deferred tax asset | $ | 191.5 |
| | $ | 154.2 |
|
| | (1) | The deferred tax asset for net operating losses and the related valuation allowance has been presented on a gross basis as of July 2, 2016, with a corresponding reclass of the July 27, 2015 balances, previously presented on a net basis. |
| | (2) | The amounts presented in this table are reflective of the prospective adoption of ASU 2015-17, which requires entities to classify deferred tax assets and deferred tax liabilities as non-current. Prior periods have not been adjusted to reflect the adoption of this ASU. Refer to Note 2, "Significant Accounting Policies" for more information. |
|
Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: | | | | | | | | | | | | | | July 2, 2016 | | June 27, 2015 | | June 28, 2014 | | (millions) | Balance at beginning of fiscal year | $ | 168.1 |
| | $ | 170.7 |
| | $ | 148.8 |
| Gross increase due to tax positions related to prior periods | 25.5 |
| | 5.4 |
| | 14.7 |
| Gross decrease due to tax positions related to prior periods | (4.4 | ) | | (1.1 | ) | | (3.3 | ) | Gross increase due to tax positions related to current period | 8.7 |
| | 16.5 |
| | 28.6 |
| Decrease due to lapse of statutes of limitations | (59.0 | ) | | (21.1 | ) | | (17.3 | ) | Decrease due to settlements with taxing authorities | (0.3 | ) | | (2.3 | ) | | (0.8 | ) | Balance at end of fiscal year | $ | 138.6 |
| | $ | 168.1 |
| | $ | 170.7 |
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