Coach 2014 Annual Report Download - page 11

TABLE OF CONTENTS
projects. Coach also owns and maintains worldwide registrations for trademarks in all relevant classes of products in each of the countries in which Coach
products are sold. Major trademarks include COACH, COACH NEW YORK, COACH and Horse & Carriage Design, COACH and Story Patch Design, COACH
and Lozenge Design, COACH and Tag Design, Signature C Design, and Op Art C Design, and COACH LEATHERWARE EST. 1941 (the "Heritage Logo").
Coach is not dependent on any one particular trademark or design patent although Coach believes that the Coach name is important for its business. In
addition, several of Coach's products are covered by design patents and a utility patent application. Coach aggressively polices its trademarks and trade
dress, and pursues infringers both domestically and internationally. It also pursues counterfeiters domestically and internationally through leads generated
internally, as well as through its network of investigators, the Coach hotline and business partners around the world.
Coach expects that its material trademarks will remain in existence for as long as Coach continues to use and renew them.
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Because Coach products are frequently given as gifts, Coach experiences seasonal variations in its net sales, operating cash flows and working capital
requirements, primarily related to seasonal holiday shopping. During the first fiscal quarter, Coach builds inventory for the holiday selling season. In the
second fiscal quarter, its working capital requirements are reduced substantially as Coach generates higher net sales and operating income, especially during
the holiday months of November and December. Fluctuations in net sales, operating income and operating cash flows in any fiscal quarter may be affected by
other events affecting retail sales, including adverse weather conditions.
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Most of Coach's imported products are subject to duties, indirect taxes, quotas and non-tariff trade barriers that may limit the quantity of products that
Coach may import into the U.S. and other countries or may impact the cost of such products. Coach is not materially restricted by quotas or other government
restrictions in the operation of its business, however customs duties do represent a material part of total product cost. To maximize opportunities, Coach
operates complex supply chains through foreign trade zones, bonded logistic parks and other strategic initiatives such as free trade agreements. Additionally,
the Company operates a direct import business in many countries worldwide. As a result, Coach is subject to stringent government regulations and
restrictions with respect to its cross-border activity either by the various customs and border protection agencies or by other government agencies which
control the quality and safety of the Company’s products. Coach maintains an internal global trade and customs organization to help manage its
import/export activity.
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The premium handbag and accessories industry is highly competitive. The Company competes primarily with European and American luxury and
accessible luxury brands as well as private label retailers, including some of Coach’s wholesale customers. Over the last several years the category has grown,
encouraging the entry of new competitors as well as increasing the competition from existing competitors. This increased competition drives consumer
interest in this brand loyal category.
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As of June 28, 2014, Coach employed approximately 17,200 people globally, including both full and part time employees, but excluding seasonal and
temporary employees. Of these employees, approximately 7,300 and 7,000 were full time and part time employees, respectively, in the global retail field.
Approximately 60 of Coach’s employees are covered by a collective bargaining agreement. Coach believes that its relations with its employees are good, and
has never encountered a strike or work stoppage.
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See the Note 16, "Segment Information" presented in the Notes to the Consolidated Financial Statements for geographic information.
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Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to these reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, are available free of charge on our investor website, located at
www.coach.com/investors under the caption “SEC Filings”, as soon as reasonably practicable after they are filed with or furnished to the Securities and
Exchange Commission. These reports are also available on the Securities and Exchange Commission’s website at www.sec.gov. No information contained on
any of our websites is intended to be included as part of, or incorporated by reference into, this Annual Report on Form 10-K.
The Company has included the Chief Executive Officer (“CEO”) and Chief Financial Officer certifications regarding its public disclosure required by
Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibit 31.1 to this report on Form 10-K. Additionally, the Company filed with the New York Stock
Exchange (“NYSE”) the CEO’s certification regarding the Company’s
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