8b. Compute ROE for all years presented on the income statement. (See # 1 on page 4-58 Ongoing Project for more details on tips to do this).
Compute RNOA and its two components (NOPM and NOAT) for all years presented on the income statement. (See # 2 on page 4-58 Ongoing Project for more details on tips to do this).
RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS March 27, 2021 March 28, 2020 (millions) $ 2,579.0 $ 197.5 451.5 759.0 54.4 166.6 4,208.0 1,014.0 1,239.5 283.9 934.6 121.1 86.4 7,887.5 $ 1,620.4 495.9 277.1 736.2 84.8 160.8 3,375.2 979.5 1,511.6 245.2 915.5 141.0 111.9 7,279.9 $ $ ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowances of $213.8 million and $276.2 million Inventories Income tax receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Deferred tax assets Goodwill Intangible assets, net Other non-current assets Total assets LIABILITIES AND EQUITY Current liabilities: Short-term debt Current portion of long-term debt Accounts payable Income tax payable Current operating lease liabilities Accrued expenses and other current liabilities Total current liabilities Long-term debt Long-term operating lease liabilities Income tax payable Non-current liability for unrecognized tax benefits Other non-current liabilities Commitments and contingencies (Note 15) Total liabilities Equity: Class A common stock, par value $.01 per share; 106.1 million and 104.9 million shares issued; 48.3 million and 47.6 million shares outstanding Class B common stock, par value $.01 per share; 24.9 million issued and outstanding Additional paid-in-capital Retained earnings Treasury stock, Class A, at cost; 57.8 million and 57.3 million shares Accumulated other comprehensive loss Total equity Total liabilities and equity 355.9 50.6 302.9 875.4 1,584.8 1,632.9 1,294.5 118.7 91.4 560.8 475.0 299.6 246.8 65.1 288.4 717.1 2,092.0 396.4 1,568.3 132.7 88.9 308.5 5,283.1 4,586.8 1.0 0.3 2,667.1 5,872.9 (5,816.1) (120.8) 2,604.4 7,887.5 $ 1.0 0.3 2,594.4 5,994.0 (5,778.4) (118.2) 2,693.1 7,279.9 $ Seg accompanying notes RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS March 30, 2019 $ Net revenues Cost of goods sold Gross profit Selling, general, and administrative expenses Impairment of assets Restructuring and other charges Total other operating expenses, net Operating income (loss) Interest expense Interest income Other income (expense), net Income (loss) before income taxes Income tax benefit (provision) Net income (loss) Fiscal Years Ended March 27, March 28, 2021 2020 (millions, except per share data) 4,400.8 $ 6,159.8 $ (1,539.4) (2,506.5) 2,861.4 3,653.3 (2,638.5) (3,237.5) (96.0) (31.6) (170.5) (67.2) (2,905.0) (3,336.3) (43.6) 317.0 (48.5) (17.6) 9.7 34.4 7.6 (7.4) (74.8) 326.4 (46.3) 57.9 (121.1) $ 384.3 6,313.0 (2,427.0) 3,886.0 (3,168.3) (25.8) (130.1) (3,324.2) 561.8 (20.7) 40.8 0.6 582.5 (151.6) 430.9 $ $ 5.07 $ 5.35 (1.65) $ (1.65) $ $ 4.98 $ 5.27 Net income (loss) per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted Dividends declared per share 73.5 80.6 75.8 77.2 73.5 81.7 2.50 $ $ 2.75 $ See accompanying notes. F-3 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) March 30, 2019 Fiscal Years Ended March 27, March 28, 2021 2020 (millions) (121.1) $ 384.3 $ $ 430.9 Net income (loss) Other comprehensive income (loss), net of tax: Foreign currency translation gains (losses) Net gains (losses) on cash flow hedges Net gains (losses) on defined benefit plans Other comprehensive loss, net of tax Total comprehensive income (loss) 7.2 (13.4) 3.6 (2.6) (123.7) $ (11.9) (2.2) (0.7) (14.8) 369.5 (39.2) 36.2 (1.9) (4.9) 426.0 $ $ See accompanying notes. F-4 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS March 27, 2021 Fiscal Years Ended March 28, 2020 (millions) March 30, 2019 $ (121.1) $ 384.3 $ 430.9 247.6 35.6 269,5 (168.8) 281.3 8.5 11.6 72.7 96.0 (27.6) 1.8 100.6 38.7 58.7 (2.3) 88.6 25.8 0.4 6.5 (143.0) 3.7 5.2 296.8 (37.8) (3.2) (45.8) 380.9 57.6 72.3 58.2 (64.3) (42.5) 10.1 (83.6) (40.5) (4.7) 29.7 (16.5) 35.7 783.8 (7.4) 754.6 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expense Deferred income tax expense (benefit) Loss on sale of property Non-cash stock-based compensation expense Non-cash impairment of assets, including equity method investment Bad debt expense (benefit) Other non-cash charges (benefits) Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Accounts payable and accrued liabilities Income tax receivables and payables Deferred income Other balance sheet changes Net cash provided by operating activities Cash flows from investing activities: Capital expenditures Purchases of investments Proceeds from sales and maturities of investments Proceeds from sale of property Settlement of net investment hedges Other investing activities Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from credit facility borrowings Repayments of credit facility borrowings Proceeds from the issuance of long-term debt Repayments of long-term debt Payments of finance lease obligations Payments of dividends Repurchases of common stock, including shares surrendered for tax withholdings Proceeds from exercise of stock options Other financing activities Net cash provided by (used in) financing activities Effect of exchange rate changes on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of period Cash, cash equivalents, and restricted cash at end of period (107.8) (704.6) 1,007.2 (270.3) (1,289.7) 2,240.4 20.8 (197.7) (3,030.8) 2,357.5 20.0 (23.8) (4.5) (879.3) 3.7 (3.5) 195.0 0.9 702.1 475.0 (475.0) 1,241.9 (300.0) (13.9) (49.8) (37.7) (13.6) (203.9) (9.9) 398.1 (300.0) (19.6) (190.7) (502.6) 21.8 (694.8) (2.8) (8.7) 356.8 25.5 958.2 1,629.8 2,588.0 (0.9) (438.2) (15.2) 1,003.3 626.5 1,629.8 (605.7) (27.8) (729.0) 1,355.5 626.5 $ $ See accompanying notes. RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF EQUITY Common Stock Shares Amount Additional Paid-in Capital Treasury Stock Retained at Cost Earnings Shares Amount ) (millions) 46.6 $ (4,581.0) $ (98.5) $ Total Equity 127.9 $ 1.3 $ 2,383.4 $ 5,752.2 3,457.4 430.9 (4.9) (198.9) 426.0 (198.9) (502.6) 88.6 4.1 (502.6) 88.6 0.9 21.8 21.8 (5.1) 5,979.1 (5.1) 3,287.2 128.8 $ 1.3 $ 2,493.8 $ 50.7 $ (5,083.6) $ (103.4) $ 384.3 (14.8) Balance at March 31, 2018 Comprehensive income: Net income Other comprehensive loss Total comprehensive income Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Cumulative adjustment from adoption of new accounting standards Balance at March 30, 2019 Comprehensive income: Net income Other comprehensive loss Total comprehensive income Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Cumulative adjustment from adoption of new accounting standards Balance at March 28, 2020 Comprehensive loss: Net loss Other comprehensive loss Total comprehensive loss Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Balance at March 27, 2021 (204.9) 369.5 (204.9) (694.8) 100.6 6.6 (694.8) 100.6 1.0 (164.5) 5.994.0 (164.5) 2,693.1 129.8 $ 1.3 $ 2,594.4 $ 57.3 $ (5,778.4) $ (118.2) $ (121.1) (2.6) (123.7) 0.5 (37.7) (37.7) 72.7 72.7 1.2 131.0 $ 1.3 $ 2,667.1 $ 5,872.9 57.8 $ (5,816.1) $ (120.8) $ 2,604.4 (a) Includes Class A and Class B common stock. In Fiscal 2020, 1.0 million shares of Class B common stock were converted into an equal number of shares of Class A common stock pursuant to the terms of the Class B common stock (see Note 16). Accumulated other comprehensive income (loss). (b) See accompanying notes. RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS March 27, 2021 March 28, 2020 (millions) $ 2,579.0 $ 197.5 451.5 759.0 54.4 166.6 4,208.0 1,014.0 1,239.5 283.9 934.6 121.1 86.4 7,887.5 $ 1,620.4 495.9 277.1 736.2 84.8 160.8 3,375.2 979.5 1,511.6 245.2 915.5 141.0 111.9 7,279.9 $ $ ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowances of $213.8 million and $276.2 million Inventories Income tax receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Deferred tax assets Goodwill Intangible assets, net Other non-current assets Total assets LIABILITIES AND EQUITY Current liabilities: Short-term debt Current portion of long-term debt Accounts payable Income tax payable Current operating lease liabilities Accrued expenses and other current liabilities Total current liabilities Long-term debt Long-term operating lease liabilities Income tax payable Non-current liability for unrecognized tax benefits Other non-current liabilities Commitments and contingencies (Note 15) Total liabilities Equity: Class A common stock, par value $.01 per share; 106.1 million and 104.9 million shares issued; 48.3 million and 47.6 million shares outstanding Class B common stock, par value $.01 per share; 24.9 million issued and outstanding Additional paid-in-capital Retained earnings Treasury stock, Class A, at cost; 57.8 million and 57.3 million shares Accumulated other comprehensive loss Total equity Total liabilities and equity 355.9 50.6 302.9 875.4 1,584.8 1,632.9 1,294.5 118.7 91.4 560.8 475.0 299.6 246.8 65.1 288.4 717.1 2,092.0 396.4 1,568.3 132.7 88.9 308.5 5,283.1 4,586.8 1.0 0.3 2,667.1 5,872.9 (5,816.1) (120.8) 2,604.4 7,887.5 $ 1.0 0.3 2,594.4 5,994.0 (5,778.4) (118.2) 2,693.1 7,279.9 $ Seg accompanying notes RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS March 30, 2019 $ Net revenues Cost of goods sold Gross profit Selling, general, and administrative expenses Impairment of assets Restructuring and other charges Total other operating expenses, net Operating income (loss) Interest expense Interest income Other income (expense), net Income (loss) before income taxes Income tax benefit (provision) Net income (loss) Fiscal Years Ended March 27, March 28, 2021 2020 (millions, except per share data) 4,400.8 $ 6,159.8 $ (1,539.4) (2,506.5) 2,861.4 3,653.3 (2,638.5) (3,237.5) (96.0) (31.6) (170.5) (67.2) (2,905.0) (3,336.3) (43.6) 317.0 (48.5) (17.6) 9.7 34.4 7.6 (7.4) (74.8) 326.4 (46.3) 57.9 (121.1) $ 384.3 6,313.0 (2,427.0) 3,886.0 (3,168.3) (25.8) (130.1) (3,324.2) 561.8 (20.7) 40.8 0.6 582.5 (151.6) 430.9 $ $ 5.07 $ 5.35 (1.65) $ (1.65) $ $ 4.98 $ 5.27 Net income (loss) per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted Dividends declared per share 73.5 80.6 75.8 77.2 73.5 81.7 2.50 $ $ 2.75 $ See accompanying notes. F-3 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) March 30, 2019 Fiscal Years Ended March 27, March 28, 2021 2020 (millions) (121.1) $ 384.3 $ $ 430.9 Net income (loss) Other comprehensive income (loss), net of tax: Foreign currency translation gains (losses) Net gains (losses) on cash flow hedges Net gains (losses) on defined benefit plans Other comprehensive loss, net of tax Total comprehensive income (loss) 7.2 (13.4) 3.6 (2.6) (123.7) $ (11.9) (2.2) (0.7) (14.8) 369.5 (39.2) 36.2 (1.9) (4.9) 426.0 $ $ See accompanying notes. F-4 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS March 27, 2021 Fiscal Years Ended March 28, 2020 (millions) March 30, 2019 $ (121.1) $ 384.3 $ 430.9 247.6 35.6 269,5 (168.8) 281.3 8.5 11.6 72.7 96.0 (27.6) 1.8 100.6 38.7 58.7 (2.3) 88.6 25.8 0.4 6.5 (143.0) 3.7 5.2 296.8 (37.8) (3.2) (45.8) 380.9 57.6 72.3 58.2 (64.3) (42.5) 10.1 (83.6) (40.5) (4.7) 29.7 (16.5) 35.7 783.8 (7.4) 754.6 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expense Deferred income tax expense (benefit) Loss on sale of property Non-cash stock-based compensation expense Non-cash impairment of assets, including equity method investment Bad debt expense (benefit) Other non-cash charges (benefits) Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Accounts payable and accrued liabilities Income tax receivables and payables Deferred income Other balance sheet changes Net cash provided by operating activities Cash flows from investing activities: Capital expenditures Purchases of investments Proceeds from sales and maturities of investments Proceeds from sale of property Settlement of net investment hedges Other investing activities Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from credit facility borrowings Repayments of credit facility borrowings Proceeds from the issuance of long-term debt Repayments of long-term debt Payments of finance lease obligations Payments of dividends Repurchases of common stock, including shares surrendered for tax withholdings Proceeds from exercise of stock options Other financing activities Net cash provided by (used in) financing activities Effect of exchange rate changes on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of period Cash, cash equivalents, and restricted cash at end of period (107.8) (704.6) 1,007.2 (270.3) (1,289.7) 2,240.4 20.8 (197.7) (3,030.8) 2,357.5 20.0 (23.8) (4.5) (879.3) 3.7 (3.5) 195.0 0.9 702.1 475.0 (475.0) 1,241.9 (300.0) (13.9) (49.8) (37.7) (13.6) (203.9) (9.9) 398.1 (300.0) (19.6) (190.7) (502.6) 21.8 (694.8) (2.8) (8.7) 356.8 25.5 958.2 1,629.8 2,588.0 (0.9) (438.2) (15.2) 1,003.3 626.5 1,629.8 (605.7) (27.8) (729.0) 1,355.5 626.5 $ $ See accompanying notes. RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF EQUITY Common Stock Shares Amount Additional Paid-in Capital Treasury Stock Retained at Cost Earnings Shares Amount ) (millions) 46.6 $ (4,581.0) $ (98.5) $ Total Equity 127.9 $ 1.3 $ 2,383.4 $ 5,752.2 3,457.4 430.9 (4.9) (198.9) 426.0 (198.9) (502.6) 88.6 4.1 (502.6) 88.6 0.9 21.8 21.8 (5.1) 5,979.1 (5.1) 3,287.2 128.8 $ 1.3 $ 2,493.8 $ 50.7 $ (5,083.6) $ (103.4) $ 384.3 (14.8) Balance at March 31, 2018 Comprehensive income: Net income Other comprehensive loss Total comprehensive income Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Cumulative adjustment from adoption of new accounting standards Balance at March 30, 2019 Comprehensive income: Net income Other comprehensive loss Total comprehensive income Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Cumulative adjustment from adoption of new accounting standards Balance at March 28, 2020 Comprehensive loss: Net loss Other comprehensive loss Total comprehensive loss Dividends declared Repurchases of common stock Stock-based compensation Shares issued pursuant to stock-based compensation plans Balance at March 27, 2021 (204.9) 369.5 (204.9) (694.8) 100.6 6.6 (694.8) 100.6 1.0 (164.5) 5.994.0 (164.5) 2,693.1 129.8 $ 1.3 $ 2,594.4 $ 57.3 $ (5,778.4) $ (118.2) $ (121.1) (2.6) (123.7) 0.5 (37.7) (37.7) 72.7 72.7 1.2 131.0 $ 1.3 $ 2,667.1 $ 5,872.9 57.8 $ (5,816.1) $ (120.8) $ 2,604.4 (a) Includes Class A and Class B common stock. In Fiscal 2020, 1.0 million shares of Class B common stock were converted into an equal number of shares of Class A common stock pursuant to the terms of the Class B common stock (see Note 16). Accumulated other comprehensive income (loss). (b) See accompanying notes
