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TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
19. Supplemental Balance Sheet Information
The components of certain balance sheet accounts are as follows:
June 27,
2009
June 28,
2008
Property and equipment
Land and building $ 154,873 $ 27,954
Machinery and equipment 27,053 16,116
Furniture and fixtures 311,916 271,957
Leasehold improvements 461,431 373,260
Construction in progress 22,726 65,486
Less: accumulated depreciation (385,017) (290,547)
Total property and equipment, net $592,982 $ 464,226
Accrued liabilities
Payroll and employee benefits $ 70,697 $ 104,122
Accrued rent 29,324 26,272
Capital expenditures 16,584 43,821
Dividends payable 23,845 —
Derivative liability 37,061 5,540
Operating expenses 171,108 136,175
Total accrued liabilities $ 348,619 $ 315,930
Other liabilities
Deferred lease incentives $ 112,296 $ 108,612
Non-current tax liabilities 137,807 131,185
Tax-related deferred credit (Note 12) 80,817 —
Other 52,650 38,289
Total other liabilities $ 383,570 $ 278,086
Accumulated other comprehensive income
Cumulative translation adjustments $ 7,597 $ 12,895
Cumulative effect of adoption of FSP FAS 115-2 and FAS 124-2, net of
taxes of $628 and $0
(1,072) —
Unrealized (losses) gains on cash flow hedging derivatives, net of taxes of
$(245) and $4,762
(335) 6,943
SFAS 158 adjustment and minimum pension liability, net of taxes of
$1,559 and $657
(2,339) (993)
Accumulated other comprehensive income $ 3,851 $ 18,845
20. Shareholder Rights Plan
On May 3, 2001, Coach declared a “poison pill” dividend distribution of rights to buy additional common stock, to the holder of each
outstanding share of Coach’s common stock.
Subject to limited exceptions, these rights may be exercised if a person or group intentionally acquires 10% or more of the Company’s
common stock or announces a tender offer for 10% or more of the common stock on terms not approved by the Coach Board of Directors.
In this event, each right would entitle the holder of each share of Coach’s common stock to buy one additional common share of the
Company at an exercise price far below the then-current market price. Subject to certain exceptions, Coach’s Board of Directors will be
entitled to redeem the rights at $0.0001 per right at any time before the close of business on
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