Business Context and Reporting Period
This Form 8-K Current Report was filed by Coach, Inc. on May 2, 2002. The filing discloses a change in the company's certifying accountant for the fiscal year ending June 29, 2002.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on the transition of the external audit firm.
Material Changes Versus Prior Period
- Accountant Change: The Board of Directors engaged Deloitte & Touche LLP as the principal independent accountant for the fiscal year ending June 29, 2002.
- Departure of Prior Auditor: The Board decided not to reengage Arthur Andersen LLP, which had audited the company for fiscal years 1999, 2000, and 2001.
- Historical Context: Prior to 1986, Coach operated as a division of Sara Lee Corporation, where Arthur Andersen also served as the principal accountant.
Guidance, Outlook, and Risks
Management Commentary and Disagreements: The company reported no disagreements with Arthur Andersen regarding accounting principles, financial statement disclosure, or auditing scope during fiscal years 2000 and 2001 or the subsequent interim period. Arthur Andersen's reports for those years were unqualified and did not contain adverse opinions or disclaimers.
Consultations: The company confirmed it had not consulted Deloitte & Touche regarding accounting principles or audit opinions prior to this engagement.
Risks and Contingencies: No specific financial risks or contingencies were detailed in this filing beyond the standard disclosure of the auditor change.
Important Facts for Investor Verification
- Confirm the effective date of the new audit engagement with Deloitte & Touche LLP.
- Verify the reasons for the departure of Arthur Andersen LLP, noting the filing states no disagreements occurred.
- Review the attached Exhibit 16.1 (Arthur Andersen's letter) to confirm their agreement with the disclosures made in this report.
- Monitor upcoming financial statements for the fiscal year ending June 29, 2002, to assess the impact of the auditor transition on financial reporting.