INCOME TAXES (Tables)

12 Months Ended

Jun. 27, 2026

Schedule of Components of Income Tax Provision (Benefit)

The United States and foreign income before provision for income taxes are as follows:


	Fiscal Years Ended
	June 27, 2026		June 28, 2025		June 29, 2024
	(millions)
United States (1)	$	877.5	$	(655.8)	$	139.0
Foreign	983.1		871.9		872.9
Total income before provision for income taxes	$	1,860.6	$	216.1	$	1,011.9

(1)The United States jurisdiction includes foreign pre-tax earnings allocated to the Company through its interest in a foreign partnership.

Current and deferred tax provision (benefit) are as follows:


	Fiscal Year Ended
	June 27, 2026				June 28, 2025				June 29, 2024
	Current		Deferred		Current		Deferred		Current		Deferred
	(millions)
Federal	$	121.6	$	44.2	$	60.6	$	(144.1)	$	71.0	$	14.2
Foreign	129.8		(2.1)		88.8		16.3		103.5		(14.6)
State	30.7		8.7		23.3		(12.0)		18.9		2.9
Total current and deferred tax provision (benefit)	$	282.1	$	50.8	$	172.7	$	(139.8)	$	193.4	$	2.5

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles the provision for income taxes computed by applying the U.S. statutory rate to income before taxes to the actual provision for fiscal 2026. Refer to Note 3, "Significant Accounting Policies," for information regarding the Company's prospective adoption of ASU 2023-09.


	Fiscal Year Ended
	June 27, 2026
	Amount		Percentage
	(millions)

Tax expense at U.S. statutory rate	390.7		21.0	%

State and local income taxes (1)	33.4		1.8

Effect of cross-border tax laws (2)
GILTI (3)	84.2		4.5
U.S. tax on branch income or loss	36.7		2.0
Other	(2.2)		(0.1)
Tax credits
Foreign tax credits	(111.3)		(6.0)
Other	(2.0)		(0.1)
Non-taxable or non-deductible items
Share-based compensation	(22.0)		(1.2)
Other	1.5		0.1
Foreign tax effects
Singapore
Effect of rates different than U.S. statutory rate	(124.6)		(6.7)
Qualified Domestic Minimum Top-up Tax ("QDMTT")	42.4		2.3
Other	7.3		0.4
Other foreign jurisdictions	(1.9)		(0.1)
Changes in unrecognized tax benefits	12.1		0.6
Other adjustments	(11.4)		(0.6)
Taxes at effective worldwide rates	$	332.9	17.9	%

(1)For the year ended June 27, 2026, state and local taxes primarily relate to California, New York City, New York, Florida, and Illinois.

(2)Excludes the impact of foreign tax credits.

(3)This item represents Global Intangible Low-Taxed Income ("GILTI").

In accordance with the disclosure requirements in effect prior to the adoption of ASU 2023-09, the provisions for income taxes computed by applying the U.S. statutory rate to income before taxes were reconciled to the actual provisions as follows:


	Fiscal Years Ended
	June 28, 2025				June 29, 2024
	Amount		Percentage		Amount		Percentage
	(millions)





Tax expense at U.S. statutory rate	$	45.3	21.0	%	$	212.5	21.0	%
State taxes, net of federal benefit	5.5		2.5		18.1		1.8
Effects of foreign operations(1)	19.8		9.2		20.5		2.0
Effects of tax credits, acquisition costs and reorganization costs	(95.5)		(44.2)		(64.6)		(6.4)
Effects of impairment(2)	51.3		23.7		—		—
Share-based compensation	(7.8)		(3.6)		2.3		0.2

Other, net	14.3		6.6		7.1		0.8
Taxes at effective worldwide rates	$	32.9	15.2	%	$	195.9	19.4	%

(1)This includes the tax related to GILTI. The Company has elected to account for the tax associated with GILTI as a period cost and, accordingly, has not recorded deferred taxes associated with GILTI.

(2)This item represents the effective tax-rate impact of the Kate Spade goodwill impairment activity recorded in the U.S. in fiscal 2025.

Schedule of Cash Paid for Income Taxes

In connection with the Company’s prospective adoption of ASU 2023-09, cash paid for income taxes, net of refunds, was disaggregated as follows:


	Fiscal Year Ended
	June 27, 2026
	(millions)
U.S. Federal	$	84.6
U.S. State and local	30.3
Foreign
Singapore	38.4
China	12.4
Japan	12.3
Other	22.7
Cash paid for income taxes, net of refunds	$	200.7

Schedule of Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were:


	June 27, 2026		June 28, 2025
	(millions)
Share-based compensation	$	17.3	$	17.4
Reserves not deductible until paid	59.4		44.4

Employee benefits	33.6		41.9
Net operating loss	27.0		29.2
Prepaid expenses	0.5		—

Inventory	15.4		16.4
Lease liability	326.6		332.1
Other	—		66.9
Gross deferred tax assets	479.8		548.3
Valuation allowance	12.0		17.6
Deferred tax assets after valuation allowance	$	467.8	$	530.7

Goodwill	48.9		55.5
Other intangibles	178.0		163.4
Property and equipment	19.2		15.2
Foreign investments	50.8		38.7
Right-of-use assets	300.7		302.7
Prepaid expenses	—		1.2
Other	7.3		—
Gross deferred tax liabilities	604.9		576.7
Net deferred tax (liabilities) assets	$	(137.1)	$	(46.0)

Consolidated Balance Sheets Classification

Deferred income taxes – non-current asset	35.7		33.8

Deferred income taxes – non-current liability	(172.8)		(79.8)
Net deferred tax (liabilities) assets	$	(137.1)	$	(46.0)

Schedule of Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:


	June 27, 2026		June 28, 2025		June 29, 2024
	(millions)
Balance at beginning of fiscal year	$	110.7	$	115.8	$	91.8
Gross increase due to tax positions related to prior periods	4.4		15.9		20.5
Gross decrease due to tax positions related to prior periods	(2.6)		(15.5)		(0.9)
Gross increase due to tax positions related to current period	5.1		4.5		6.5
Decrease due to lapse of statutes of limitation	(0.4)		(2.4)		(2.1)
Decrease due to settlements with taxing authorities	(1.5)		(7.6)		—

Balance at end of fiscal year	$	115.7	$	110.7	$	115.8