Rendering

Component: (Network and Table)
Network
2318301 - Disclosure - Income Taxes (Tables)
(http://www.coach.com/role/IncomeTaxesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2015-06-28 - 2016-07-02
Income Tax Disclosure [Abstract]
 
Schedule of Components of Income Tax Provision (Benefit)
The provisions for income taxes, computed by applying the U.S. statutory rate to income before taxes, as reconciled to the actual provisions were (in millions):
 
Fiscal Year Ended
  
July 2, 2016
 
June 27, 2015
 
June 28, 2014
  
Amount
 
Percentage
 
Amount
 
Percentage
 
Amount
 
Percentage
Income before provision for income taxes:
  

 
  

 
  

 
  

 
  

 
  

United States
$
357.5

 
57.1
 %
 
$
361.2

 
59.1
 %
 
$
818.6

 
72.9
 %
Foreign
269.1

 
42.9

 
250.4

 
40.9

 
303.7

 
27.1

Total income before provision for income taxes
$
626.6

 
100.0
 %
 
$
611.6

 
100.0
 %
 
$
1,122.3

 
100.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
Tax expense at U.S. statutory rate
$
219.3

 
35.0
 %
 
$
214.0

 
35.0
 %
 
$
392.8

 
35.0
 %
State taxes, net of federal benefit
11.2

 
1.8

 
26.4

 
4.3

 
34.6

 
3.1

Effects of foreign operations(1)
(53.7
)
 
(8.6
)
 
(79.7
)
 
(13.0
)
 
(93.1
)
 
(8.3
)
Effects of foreign tax credits and acquisition reorganization
(19.6
)

(3.1
)
 
9.3


1.5


(1.5
)

(0.1
)
Other, net
8.9

 
1.4

 
39.2

 
6.4

 
8.2

 
0.7

Taxes at effective worldwide rates
$
166.1

 
26.5
 %
 
$
209.2

 
34.2
 %
 
$
341.0

 
30.4
 %
 
(1) 
The "Effects of foreign operations" impact, as noted above, is primarily attributable to the Company's foreign tax rate differential of its Greater China and Japan tax jurisdictions.
Current and deferred tax provision (benefit) was:
 
Fiscal Year Ended
  
July 2, 2016
 
June 27, 2015
 
June 28, 2014
  
Current
 
Deferred
 
Current
 
Deferred
 
Current
 
Deferred
 
(millions)
Federal
$
145.8

 
$
(52.0
)
 
$
142.9

 
$
10.5

 
$
283.4

 
$
(6.8
)
Foreign
46.8

 
2.2

 
9.8

 
13.8

 
20.0

 
(5.7
)
State
25.8

 
(2.5
)
 
35.0

 
(2.8
)
 
60.4

 
(10.3
)
Total current and deferred tax provision (benefit)
$
218.4

 
$
(52.3
)
 
$
187.7

 
$
21.5

 
$
363.8

 
$
(22.8
)
 
 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were:
 
July 2,
2016
 
June 27,
2015
 
(millions)
Share-based compensation
$
68.5

 
$
66.7

Reserves not deductible until paid
69.6

 
68.1

Deferred rent
27.9

 
16.4

Employee benefits
48.3

 
48.4

Basis difference in foreign investments
21.5

 

Net operating loss(1)
176.7

 
178.9

Other
4.2

 
0.8

Prepaid expenses
0.8

 
1.9

Property and equipment
34.3

 
16.4

Gross deferred tax assets
451.8

 
397.6

Valuation allowance(1)
173.4

 
169.8

Deferred tax assets after valuation allowance
$
278.4

 
$
227.8

 
 
 
 
Goodwill
88.2

 
73.6

Other
(1.3
)
 

Gross deferred tax liabilities
86.9

 
73.6

Net deferred tax assets
$
191.5

 
$
154.2

 
 
 
 
Consolidated Balance Sheets Classification(2)
  

 
  

Deferred income taxes – current asset
$

 
$
98.4

Deferred income taxes – noncurrent asset
248.8

 
115.8

Deferred income taxes – current liability

 

Deferred income taxes – noncurrent liability (included within "Other Liabilities")
(57.3
)
 
(60.0
)
Net deferred tax asset
$
191.5

 
$
154.2


 
(1) 
The deferred tax asset for net operating losses and the related valuation allowance has been presented on a gross basis as of July 2, 2016, with a corresponding reclass of the July 27, 2015 balances, previously presented on a net basis.
(2) 
The amounts presented in this table are reflective of the prospective adoption of ASU 2015-17, which requires entities to classify deferred tax assets and deferred tax liabilities as non-current. Prior periods have not been adjusted to reflect the adoption of this ASU. Refer to Note 2, "Significant Accounting Policies" for more information.
 
 
Unrecognized Tax Benefits Reconciliation
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
 
July 2,
2016
 
June 27,
2015
 
June 28,
2014
 
(millions)
Balance at beginning of fiscal year
$
168.1

 
$
170.7

 
$
148.8

Gross increase due to tax positions related to prior periods
25.5

 
5.4

 
14.7

Gross decrease due to tax positions related to prior periods
(4.4
)
 
(1.1
)
 
(3.3
)
Gross increase due to tax positions related to current period
8.7

 
16.5

 
28.6

Decrease due to lapse of statutes of limitations
(59.0
)
 
(21.1
)
 
(17.3
)
Decrease due to settlements with taxing authorities
(0.3
)
 
(2.3
)
 
(0.8
)
Balance at end of fiscal year
$
138.6

 
$
168.1

 
$
170.7