Coach 2008 Annual Report Download - page 53

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TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
3. Change in Accounting Principle – (continued)
The following table details the retrospective application impact on previously reported amounts:
At June 28, 2008 As Previously
Reported
Effect of
Accounting
Principle Change
Adjusted
Inventories $ 345,493 $ (27,003) $ 318,490
Deferred income taxes – current asset 69,557 512 70,069
Deferred income taxes – liability 26,417 (1,046) 25,371
Retained earnings 375,949 (22,827) 353,122
Accumulated other comprehensive income 21,463 (2,618) 18,845
At June 30, 2007
Inventories $ 291,192 $ (23,413) $ 267,779
Deferred income taxes – current asset 68,305 512 68,817
Deferred income taxes – liability 36,448 (1,046) 35,402
Retained earnings 940,757 (22,827) 917,930
Accumulated other comprehensive income (12,792) 972 (11,820)
Year Ended June 28, 2008
Translation adjustments $ 27,963 $ (3,590) $ 24,373
Year Ended June 30, 2007
Translation adjustments $ (9,944) $ 1,605 $ (8,339)
The following table shows the impact of the accounting principle change on reported balances at June 27, 2009:
At June 27, 2009 Without Effect
of Accounting
Principle Change
Effect of
Accounting
Principle Change
As Reported
Inventories $ 356,422 $ (30,274) $ 326,148
Deferred income taxes – current asset 48,964 512 49,476
Deferred income taxes – liability 1,046 (1,046) —
Retained earnings 522,778 (22,827) 499,951
Accumulated other comprehensive loss 9,740 (5,889) 3,851
4. Acquisitions
On September 1, 2008, Coach acquired 100% of its domestic retail businesses in Hong Kong and Macau and on April 1, 2009,
acquired 100% of its domestic retail business in mainland China from the former distributor, the ImagineX group. The results of the
acquired businesses have been included in the consolidated financial statements since September 1, 2008 and April 1, 2009, respectively,
within the Direct-to-Consumer segment. These acquisitions will provide the Company with greater control over the brand in Hong Kong,
Macau and mainland China, enabling Coach to raise brand awareness and aggressively grow market share with the Chinese consumer.
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