Coach 2014 Annual Report Download - page 32
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TABLE OF CONTENTS
June 29, 2013
GAAP Basis
(As Reported)
Restructuring and
Transformation-Related Charges
Non-GAAP Basis
(Excluding Items)
Gross profit $ 3,698.1
$ (4.8)
$ 3,702.9
Selling, general and administrative expenses $ 2,173.6
$ 48.4
$ 2,125.2
Operating income $ 1,524.5
$ (53.2)
$ 1,577.7
Income before provision for income taxes $ 1,520.5
$ (53.2)
$ 1,573.7
Provision for income taxes $ 486.1
$ (20.6)
$ 506.7
Net income $ 1,034.4
$ (32.6)
$ 1,067.0
Diluted net income per share $ 3.61
$ (0.11)
$ 3.73
Fiscal 2014 Items
Transformation and Other Related Actions
In fiscal 2014, the Company incurred restructuring and transformation related charges of $131.5 million under its multi-year Transformation Plan as
announced in the fourth quarter of fiscal 2014. The charges recorded in cost of sales and SG&A expenses were $82.2 million and $49.3 million, respectively.
These charges, which are primarily associated with our North America business, relate to inventory and fleet related costs, including impairment, accelerated
depreciation and severance related to store closures. Refer to the "Executive Overview" herein and Note 3, "Transformation, Restructuring and Other Related
Actions," for further information regarding the Transformation Plan.
Additional actions will continue into fiscal 2015.
Fiscal 2013 Items
Restructuring and Transformation-Related Charges
In fiscal 2013, the Company incurred restructuring and transformation related charges of $53.2 million. The charges recorded in selling, general and
administrative expenses and cost of sales were $48.4 million and $4.8 million, respectively. The charges include the strategic reassessment of the Reed
Krakoff business, streamlining our organizational model and reassessing the fleet of our retail stores and inventories.
The change in net sales in fiscal 2014 has been presented both including and excluding currency fluctuation effects (primarily attributable to Coach
Japan).
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