Coach 2005 Annual Report Download - page 5

1. Description of Plan
The following description of the Coach, Inc. Savings and Profit Sharing
Plan (the "Plan") provides only general information. Participants should refer
to the Plan document for a more complete description of the Plan's provisions.
General:
The Plan, as amended, was adopted by Coach, Inc. (the "Company") effective
July 1, 2001 and is a defined contribution plan. All U.S. employees of the
Company who meet certain eligibility requirements and are not part of a
collective bargaining agreement may participate in the Plan.
The Plan is administered by the Human Resources and Governance Committee
("Plan Committee") appointed by the Board of Directors of the Company. The
assets of the Plan are maintained and transactions therein are executed by
Fidelity Management Trust Company, the trustee of the Plan ("Trustee"). The Plan
is subject to the reporting and disclosure requirements, participation and
vesting standards, and fiduciary responsibility provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended.
Eligibility:
Employees become eligible and may elect to participate in the 401(k)
feature of the Plan one year following their initial date of employment or
attainment of age 21, whichever is later.
Employees become eligible to participate in the profit sharing feature of
the Plan one year following their initial date of employment or attainment of
age 21, whichever is later. Once an employee is eligible, in order to receive a
profit sharing contribution for any Plan year, the employee must be employed by
Coach on the last day of the Plan year. In addition, employees are required to
work a minimum of 750 hours during the Plan year if the participant is a part
time employee or 1,000 hours during the Plan year if the participant is an
intern, temporary or seasonal employee.
Contributions:
The 401(k) feature of the Plan is funded by both employee and employer
matching contributions. Participants may contribute between 1% and 50% of their
pre-tax annual compensation, not to exceed the amount permitted pursuant to the
Internal Revenue Code ("IRC"). Employer matching contributions to the accounts
of Non-Highly Compensated Employees ("NHCE's"), as defined by the IRS, are equal
to 100% of the first 3% of each participant's eligible compensation contributed
to the Plan and 50% of the next 2% of eligible compensation contributed to the
Plan. Employer matching contributions to the accounts of Highly Compensated
Employees ("HCE's"), as defined by the IRS, are equal to 50% of up to 6% of each
participant's eligible compensation contributed to the Plan. Employer matching
contributions are made to the account of each eligible employee each pay period.
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Coach, Inc. Savings and Profit Sharing Plan
Notes to Financial Statements - Continued
The profit sharing feature of the Plan is non-contributory on the part of
employees and is funded by Company contributions from its current or accumulated
earnings and profit amounts. The discretionary annual contribution is authorized
by the Company's Board of Directors in accordance with, and subject to, the
terms and limitations of the Plan. Profit sharing contributions for the Plan
year ended June 30, 2006 were 3% of participant's eligible compensation for all
eligible participants. Eligible employees who had attained the ages of 35-39 and
were credited with 10 or more years of vested service as of July 1, 2001 receive
two times the above profit sharing contribution. Eligible employees who had
attained the age of 40 or more and were credited with 10 or more years of vested