Coach 2010 Annual Report Download - page 33

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TABLE OF CONTENTS
FISCAL 2011, FISCAL 2009 AND FISCAL 2008 ITEMS AFFECTING COMPARABILITY OF OUR FINANCIAL RESULTS
Non-GAAP Measures
The Company’s reported results are presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The
reported SG&A expenses, operating income, and provision for income taxes in fiscal 2011 reflect certain items which affect the
comparability of our results. Similarly, the reported SG&A expenses, operating income, provision for income taxes, income from
continuing operations, net income and earnings per diluted share from continuing operations in both fiscal 2009 and fiscal 2008 reflect
certain items which affect the comparability of our results. These metrics are also reported on a non-GAAP basis for these fiscal years to
exclude the impact of these items.
These non-GAAP performance measures were used by management to conduct and evaluate its business during its regular review of
operating results for the periods affected. Management and the Company’s Board utilized these non-GAAP measures to make decisions
about the uses of Company resources, analyze performance between periods, develop internal projections and measure management
performance. The Company’s primary internal financial reporting excluded these items affecting comparability. In addition, the
compensation committee of the Company’s Board used these non-GAAP measures when setting and assessing achievement of incentive
compensation goals.
We believe these non-GAAP measures are useful to investors in evaluating the Company’s ongoing operating and financial results and
understanding how such results compare with the Company’s historical performance. In addition, we believe excluding the items affecting
comparability assists investors in developing expectations of future performance. These items affecting comparability do not represent the
Company’s direct, ongoing business operations. By providing the non-GAAP measures, as a supplement to GAAP information, we believe
we are enhancing investors’ understanding of our business and our results of operations. The non-GAAP financial measures are limited in
their usefulness and should be considered in addition to, and not in lieu of, U.S. GAAP financial measures. Further, these non-GAAP
measures may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
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